Damascus, Nov 15: India's ONGC Videsh is to sign an agreement for exploration and production of oil from an on-land block in Syria positioning India as a new player in the hydrocarbon sector. ONGC OVL, the overseas investment arm of oil and natural gas corporation will invest USD 15 million ollars in the first exploration phase after signing the production sharing contract (PSC) with the Syrian government.
The PSC is in the final stages of negotiations between OVL, the overseas investment wing of the ONGC and the Syrian Petroleum Company, officials said.
"The agreement may be signed during the Prime Minister's visit if the minor details can be sorted out in time or it will be done very soon" they said.
Syria, which has emerged as a significant oil producer with 600,000 barrels per day, holds out big opportunities for India in collaboration in the hydrocarbon sector.
With its current oil production levels a number of international oil companies like Shell are already working in the area.
Syria had announced an exploration bidding round for 11 blocks in June last year. OVL along with an American oil company IPR International Limited bid for block number 24 and the Syrian Ministry of Petroleum and Mineral Resources invited the two companies to negotiate and agree the terms of contract for production sharing.
Bureau Report