Angola asks India to ‘forget’ oil block

State-run ONGC Videsh Ltd signed a pact with Shell in April to buy the latter’s 50 per cent in the 10-million-tonne per annum offshore Block 18 for $623 million. But the deal got stuck since Angolan national oil compmay Sonangol refused to give up its right of first refusal.

Petroleum Minister Mani Shankar Aiyar met Costa on the sidelines of OPEC meet in Vienna to get Sonangol to wave its pre-emption right. Aiyar told reporters that Costa had assured that Angola would consider giving OVL a portion of Shell’s 50 per cent after it is taken over by Sonangol.

But Costa has now made it clear that even this option was not possible as Sonangol has ‘‘prior engagements’’ for Shell shares. Costa said he considered the issue on return from Vienna and found that Sonangol was firm in retaining Shell’s share for itself.

Sonangol chairman Manuel D. Vicente has also conveyed that his company would exercise the pre-emption rights.

India was willing to extend development assistance of $20 million spread over two years, help train their manpower and develop the oil and gas infrastructure. RITES had also offered to help the ongoing Angolan Railway Rehabilitation Project.

However, sources say, China offered a bigger package of $2 billion spread over 15 years in developing the country. Along with incentives, Beijing has promised to pump in development aid to Angola.