Mumbai, Feb. 23: ONGC Videsh is in talks to buy Anglo-Dutch giant Shell’s 50 per cent stake in Angola, estimated to cost around $2.5 billion (Rs 11,250 crore).

The 100 per cent subsidiary of Oil and Natural Gas Corporation (ONGC) is investing around Rs 4,500 crore in its foreign ventures. This is in addition to its parent’s capex of Rs 10,000 crore.

The government has put the company on the fast track due to its important role in the country’s oil security.

ONGC Videsh has assets in eight countries, including Russia, Sudan and Vietnam.

The Angola venture is estimated at $2.5 billion. The greater Plutonio project (also known as Block 18) is one of the five golden blocks in Angola.

The block hopes to start production by 2007 with a capacity of 2.5 lakh barrels per day.

Shell has already opened data rooms in Houston and Rijswijk in the Netherlands for companies interested in picking up its stake in Angola. British Petroleum holds the remaining 50 per cent in the venture.

ONGC Videsh’s Sudan venture has paid off with the company already having sourced several consignments from it. Almost 40 per cent of its costs have been recovered, a senior company official said.

Company officials said political risks associated with Sudan and Angola have always been factored while calculating the return.

By 2020, ONGC will source more than 20 million tonnes from its overseas properties.