ONGC Videsh looking for assets across Africa and Latin America, signs MoU with Argentina-based YPF

10 Feb 2023 , 09:18 AM

The state-owned Oil and Natural Gas Corporation’s (ONGC) overseas investment arm, ONGC Videsh Ltd, is looking for exploration and production assets in Latin America and Africa. On the eve of the India Energy Week in Bengaluru, OVL and YPF SA of Argentia inked a memorandum of understanding (MoU), according to a press release from the firm.

The MOU aims to strengthen relations between research and training centres while also promoting investment and cooperation between the two firms in the energy sector, including but not limited to cooperation in the areas of upstream oil and gas opportunity discovery and development.

The Argentine government owns 51% of YPF, the largest integrated energy corporation in Argentina, and 49% of its shares are traded on the New York and Buenos Aires stock exchanges. 

Being the largest shale operator outside of the United States of America, it engages in oil and gas exploration and production as well as the transportation, processing, and marketing of natural gas and petroleum products.

India’s premier international oil company is OVL. It now has interests in 32 oil and gas projects in 15 nations, from Vietnam to Venezuela.

Rajarshi Gupta, its managing director, stated the company is looking into exploration and production investment potential in nations like Ghana and Suriname during a conference side event.

He referred to ‘bigger hot regions with larger discoveries’ as better places to invest, emphasizing the enormous hydrocarbon potential in Latin America and Africa.

The largest investment made by OVL was in Russia, where it funded four major projects. After restarting production under the management, Sakhalin-1, its primary producing asset, is currently generating about 150,000 barrels per day, he said, adding that the output should reach 200,000 bpd by June.

Sakhalin-1 was run by US supermajor ExxonMobil before it announced its withdrawal due to Russia’s invasion of Ukraine.

Sakhalin-1 is 20% owned by OVL.

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