New Delhi, Feb. 5: ONGC-Videsh and OIL-Indian Oil Corporation (IOC) combine have offered to partner Libyan companies in developing oilfields in the Sirte basin.

Petroleum minister Murli Deora, armed with a letter of goodwill from Prime Minister Manmohan Singh, “met Libyan strongman Colonel Muammar Gaddafi in a tent on the sands of Sirte to present the Indian proposal”, a senior petroleum ministry official said.

Deora pointed out that Indian oil companies could play a significant role in developing Libya’s hydrocarbon sector as the country plans to double crude oil production from the current level of 1.6 million barrels per day.

The Mumbai High reconstruction plan was presented at the meeting as a model for developing the Sirte oilfields.

The largest oilfields in Libya are located in the Sirte basin and the country requires technological know-how and experienced manpower to develop them.

As part of the business cooperation in the hydrocarbon segment, IOC has also agreed to prepare a detailed feasibility report on revamping the 11-million-tonne Ras Lanuf refinery in Libya.

On his arrival back home today from Libya and Yemen, Deora said the trip “was successful and will pave the way for business cooperation between the two countries in the hydrocarbon sector”. Indian companies are already present in six exploration blocks in Libya and are planning further expansion.

The petroleum minister also visited Yemen as part of the country’s oil diplomacy. OVL and OIL-IOC have informed the authorities in Yemen that they would participate in the fourth round of bidding for oil exploration blocks, expected to be announced in the second half of 2007.

India also offered to develop city gas distribution projects in Yemen, similar to those run by GAIL in Delhi and Mumbai. An Yemenese team will be visiting India to study the projects.

The need for exploring investment possibilities in India and Libya by both the countries as well as making joint forays in third countries were also discussed at the meeting. OVL has shown interest in three oil exploration blocks in Libya and is looking for more opportunities in that country.

It was agreed that Libya would send their technical experts to visit IOC’s centre of excellence in petroleum management. Libya faces a growing need of trained manpower in oil activities, from locating oil to marketing.

India offers an attractive opportunity for Libyan energy personnel to learn the latest skills and gain exposure in the hydrocarbon sector. India also underlined its strength in software and information technology (IT), offering opportunities for Libya to develop its IT sector.

Deora also raised the issue of Indian businessmen and their representatives facing difficulties in procuring Libyan visas. With the growing economic cooperation between India and Libya, particularly in the oil sector, the visits of Indian businessmen and professionals are poised for a quantum jump.