China Oil Spill

July 21, 2010 by staff 

China Oil SpillChina Oil Spill, India could consider the purchase of BP Plc’s stake in a gas field in Vietnam and the British company is struggling with record oil spill in the Gulf of Mexico sells assets as part of its plan to raise funds to meet obligations.

“We read that BP’s interest in the area can offer and we will be very happy to consider it,” Indian Oil Minister Murli Deora said today by phone from Vietnam, where he is on an official visit. Deora said he plans with the Vietnamese Prime Minister Nguyen Tan Dung to discuss tomorrow.

State-owned Oil India’s & Natural Gas Corp., BP’s partner in the Nam Con Son gas project in Vietnam, may be interested in boosting its stake in the company, said Victor Shum, senior principal at energy consultant Purvin & Gertz Inc. in Singapore. R.S. Sharma, chairman of ONGC and R.S. Butola, ONGC Videsh Ltd managing director of the Explorer’s overseas unit, part of the delegation’s Deora, India’s oil ministry said.

BP agreed yesterday to sell oil and gas fields in the U.S., Canada and Egypt to Apache Corp. for $ 7 billion and said it plans to sell assets in Pakistan and Vietnam. The company aims to attract over 10 billion to the feed of a $ 20 billion fund for victims demanded leakage of U.S. President Barack Obama.

BP spokesman David Nicholas said the company had only just the government’s intention to sell the assets to be informed and will not comment on the estimates of the value or potential buyers.

Energy Quest

ONGC, India’s largest energy exploration company, is spearheading the South Asian nation’s quest for energy resources abroad to compete with China in fields of Africa to Venezuela. There are no discussions to acquire BP’s share in Vietnam, an ONGC official said, declining to be identified because he was not authorized to speak to the media.

“Vietnam as a geography will be easy for ONGC investment and know the geology of the area,” said Jigar Shah, head of research at Kim Eng Securities India Pvt. Ltd. in Mumbai. “ONGC is trying very hard to expand overseas and this is a good opportunity.”

The Vietnam project is estimated at 1.3 billion and the London-based company said on its website. BP’s assets in Vietnam and Pakistan and could be worth 1.7 billion, Jason Kenney,anlyst at ING Wholesale Banking in Edinburgh, said by phone today.

ONGC has a 45 percent interest in Block 06/01 in the southern Vietnamese coast, by BP, the operator has a share of 35 percent, according to the South Asian nation’s corporate website.

Interested Formosa

Indian Explorer sold the shares in the Lan Tay fields in Vietnam to BP after winning the exploration license for the area in 1988, according to the website of ONGC Videsh.

The field began producing gas in January 2003. ONGC’s share of the project is 1.848 billion cubic meters of gas in the year ending March 2009, according to the website. ONGC owns a 100 percent stake in two offshore blocks in Vietnam, that no oil or gas.

Formosa Plastics Group, Taiwan’s largest diversified industrial company, would be interested in buying BP’s assets if approached by the oil company, Chih-Lee Tsuen, a member of the executive board of the group, said by phone today.

BP exploration companies in the deep waters of 250 kilometers (155 miles) south of Karachi and has expanded operations in Pakistan since the purchase of Occidental Petroleum Corp. ‘s interests in oil and gas in 2007, the British company said on its website.

BP contributes about 6 percent of gas production and 15 percent of Pakistan’s oil output, said Asim Wahab Khan, researchanlyst at Foundation Securities Ltd. in Karachi. BP operations in Pakistan could be worth as much as $ 500 million, he said.

Potential buyers of these BP businesses can be located in the Middle East “as the exploration giants may prefer to buy assets in Vietnam compared to Pakistan,” he said.

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