ONGC Videsh in talks to acquire stake in Tullow’s $3.5 bn project

New Delhi: ONGC Videsh Limited (OVL) the overseas arm of state-owned Oil and Natural Gas Corporation (ONGC), and Indian Oil Corporation (IOC) are in talks to acquire a stake in Tullow Oil's Lokichar oil field in Kenya.

Kenya's Cabinet Secretary in the Ministry of Energy Monica Juma in a tweet confirmed the talks.

"Received and held a meeting with HE Dr Virandar Paul, Indian High Commissioner to Kenya alongside representatives from Indian Oil Corporation Limited, Mr. Hridesh Baindail- Executive Director Indian Oil Corporation Ltd, Mr. Sanjeev Tokhi – Executive Director – OVL," she tweeted.

Tullow also confirmed the talks.

"Tullow confirms that the Ministry of Petroleum and Mines hosted a meeting with Tullow and OVL in Nairobi as part of Tullow's ongoing process to secure a strategic investor for Project Oil Kenya. The meeting was positive and the parties agreed to hold further discussions," it said in a tweet.

Besides Tokhi of OVL and Baindail of IOC, Tullow CEO Rahul Dhir was also present in the meeting, the pictures tweeted by the two showed.

Tullow holds a 50 percent stake in the south Lokichar field and is looking to give up operatorship in favour of a strategic partner. TotalEnergie of France and Africa Oil Corporation holds 25 percent each.

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