ONGC says no to stake offer in Iran, Angola blocks

NEW DELHI: Public sector exploration major Oil and Natural Gas Corp (ONGC) has turned down an offer of equity stake in oil blocks in Iran and Angola made by Norsk Hydro of Norway, saying the blocks were not very prospective.

Norsk Hydro had offered ONGC a stake in its Anaran block in Iran and another block in Angola in exchange for equity in the state-run firm's gas-rich eastern offshore Krishna-Godavari basin.

"Norsk brought to us two blocks for participation but we didn't find the blocks too exciting. We have decided against taking stake in any of the two blocks," a top ONGC official said.

The Norwegian company has taken 10 per cent stake in ONGC's KG-DWN-98/2 block that lies adjacent to Reliance Industries' prolific KG-D6 block in deepwaters of Bay of Bengal.

Norsk has the option of doubling the stake in the ONGC block. Petrobras of Brazil has taken 15 per cent stake in the block that also has Cairn India as the third foreign partner with 10 per cent.

ONGC has the remaining 65 per cent interest in the block. Petrobras too has an option of doubling its stake in the block at a later date. The official said Norsk Hydro has so far not made offer to any fresh block.