Date:03/03/2007 URL: http://www.thehindubusinessline.com/2007/03/03/stories/2007030305920300.htm

Back Essar eyes 20% stake of Phoenix in Libya oil field

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New Delhi, March 2 Essar Group is in talks with Phoenix Libya, a subsidiary of Phoenix AG, to buy stake of up to 20 per cent in two proven oil and gas blocks in Libya. "We are talking to Phoenix Libya for a minimum of 20 per cent stake with rights to increase it to 50 per cent," said Mr S.R. Agarwal, Executive Director, Exploration, Essar.

The deal for stake in blocks NC 100 and NC 101 is expected to be completed by December 2007. Mr Agrawal said the Essar group would execute the deals through its subsidiary Essar Global. The group has a stake in three blocks in Madagascar and two in Myanmar and is targeting up to 12 countries as it looks to expand its overseas exploration and production portfolio. The countries are located in West Asia, Central Asia, South East Asia and Africa.

The company also plans to bid for oil and gas blocks in Iran, Papua New Guinea and Libya to expand its overseas portfolio, he said. Essar plans to produce 1,50,000 barrels of oil a day from its domestic and overseas fields in the next three years. Iran, he said, has put 17 blocks for bidding and Essar would submit a bid for at least some blocks by the due date in June.

On the drilling business Essar Group is aiming to become a major player in the international drilling business. Its subsidiary Essar Oilfields Services Ltd already owns one semi-submersible and eight land rigs. It now wants to buy another 10 to 15 land drilling rigs.