A consortium of India's state-run oil and gas hunters led by ONGC Videsh Ltd (OVL) has set anchor in Israeli territory for the first time amid New Delhi's growing closeness with Tel Aviv. The development was confirmed by ONGC Videsh MD NK Verma, who said the consortium will go though certain processes before deciding on drilling for oil or gas in the block. This was the first auction of exploration licences, consisting of 24 blocks, in four years since Israel blocked foreign companies from exploring its eastern Mediterranean waters.
The country's Energy Ministry gave its preliminary green signal on December 11 to the bid for one block submitted by the Indian consortium of OVL, IndianOil, Oil India Ltd and Bharat Petroleum subsidiary Bharat Petro Resources Ltd. The other bidder was Energean of Greece who secured approval for five blocks. Permission for the Indian consortium comes as Israel Prime Minister Benjamin Netanyahu's scheduled three-day visit to India comes close on January 14. It comes as a positive indication and willingness of both governments to expand the horizon of bilateral ties from security and defence to energy security.
Israel's Energy Minister Yuval Steinitz called Indian Oil Minister Dharmendra Pradhan in June to invite Indian participation in that country's exploration business, dominated by Delek Group and Isramco Negev. The two leaders connected again in December as the Indian bid was being cleared. India's relations with Iran have cooled off recently over Tehran's failure to award Farzad-B to the OVL-led consortium in spite of commitments made by top leaders on both sides to see the deal through quickly. Feeling slighted, India, which had stood by Iran during western sanctions, has retaliated by reducing by a third Iranian crude imports. Tehran responded by scrapping benefits it gave to Indian refiners on crude purchase and approaching Russian companies for Farzad-B.
