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India's energy security and right to take decision at stake: ONGC

IRNA - Islamic Republic News Agency

New Delhi, Jan 30, IRNA
India-US-ONGC
Oil and Natural Gas Corporation (ONGC) of India rubbished US criticism of it teaming up with a Chinese firm to acquire a Syrian oilfield, saying the 573 million dollars spent on taking a stake in al-Furat fields was not a foreign direct investment (FDI) to the UN-sanctioned country but was a payout to a Canadian firm for the equity.

"I have seen media reports of US taking strong exception to investment (in Syria). We are (only) paying PetroCanada for the acquisition and not making any FDI. The Canadian firm had already invested in Syria and we are taking over their stake," PTI report said here Monday quoting Oil & Natural Gas Corporation (ONGC) of India Chairman and Managing Director Subir Raha.

Reports last week had said that the US had set an aide memoire, saying that it strongly opposed such investments in Syrian resources as the latter's regime may exploit news of any FDI as evidence that it was not isolated and therefore not comply with UNSC resolution, seeking its complete cooperation in investigation into the assassination of former Lebanese prime minister Rafiq Hariri.

"We shall comply with UN sanctions completely and totally," he said emphasizing ONGC had not defined any international sanctions anywhere in the world.

A Petroleum Ministry official questioned US saying 'what were they doing when PetroCanada made that investment. They have been telling us not to do business with Iran and Syria, tomorrow they may say the same for Sudan or Myanmar or some other country. At stake is not just our energy security but also our right to take decision ourselves', he said.

Last month ONGC and China National Petroleum Corporation(CNPC) won the bid to acquire about 37 percent stage in Syrian oilfields of Canadian oil company Petro-Canada for 484 million euro.

This was the first time that Indian and Chinese companies had made a joint bid for acquiring oil properties overseas. The two government run firms, often competing against each other in the race for acquiring overseas assets, are sharing equity in 50:50 ratio.

ONGC's overseas arm Oil Videsh Limited (OVL) had competed with the Chinese firms for oil properties in Central Asia, West Africa and Latin America. They were pitched head-on for buying Canadian firm PetroKazakhstan, which has most of its operations in Kazakhstan, and EnCana's Ecuador assets.

Shell is the operator of the assets operated by Al-Furat Petroleum Company, a company owned by the Syrian Petroleum Company, Syria Shell Petroleum Development B.V. (shell) and Petro-Canada.

ONGC-CNPC bought Petro-Canada's 37.5 percent interest in the Deir Ez Zor block, 33.3 percent interest in Ash Sham block, 36.0 percent interest in Gas Utilization Agreement.

This essentially would give the two firms access to about 58,000 barrels of oil equivalent per day from Syria.

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