A consortium of state-owned firms - Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Oil India Ltd (OIL) - is among the three groups shortlisted by US energy giant ConocoPhillips for a possible sale of
stake in its six Canadian oil sands assets.
The Houston-based company has hired Scotia Waterous for selling as much as 50 per cent of its oil-sand reserves, including in Alberta that produces about 25,000 barrels of oil a day.
Development of these reserves could increase production to more than 500,000 bpd.
The other properties are Thornbury, Clyden, Saleski, Crow Lake and McMillan Lake assets. The land totals 715,000 acres.
ONGC Videsh Ltd (OVL) - overseas arm of ONGC - along with IOC and OIL had
placed a $5 billion bid for buying stake in six Alberta oil sands assets of ConocoPhillips.
"We are one of the three shortlisted," said a source. "There are some producing assets and some exploration assets on offer."
OVL had last month
bought US energy firm Hess Corp's stake in Azeri, Chirag and Guneshli (AGC) group of oil fields in Azerbaijan for $1 billion.
OVL Managing Director D K Sarraf said the company keeps looking at opportunities globally and would not comment on any specific transaction.
He however indicated that North America was one of the areas that OVL may be looking at. "Wherever there is an opportunity, we certainly look at them."
ConocoPhillips has been looking to sell assets in a number of countries, including Nigeria, as part of a global restructuring. Of its six properties on offer in Canada, only Surmont, run in a joint venture with France's Total SA, is producing oil.
Located south of the oil sands hub of Fort McMurray, Alberta, the steam-driven development pumps about 25,000 barrels a day.
The partners are working to boost that to 136,000 bpd, starting in 2015.
ConocoPhillips had in 2010 sold its interest in the Syncrude Canada oil sands mining venture to Sinopec for $4.7 billion.
With inputs from PTI
