India’s Oil and Natural Gas Corp (ONGC) is bidding for a stake in a Nigerian offshore field with an estimated value of $1 billion as it aims to boost its overseas energy reserves, three sources familiar with the situation said.

The stake in the yet to be developed Akpo oil and gas field was put up for sale earlier this year by Nigerian firm South Atlantic Petroleum Ltd, which is controlled by former Nigerian defence minister Theophilus Danjuma, the sources said.
The Akpo deepwater field, operated by French oil company Total SA, needs billions of dollars in capital expenditure for development.
“It seems that this will be a good bid from ONGC and if it gets the property, it will be in line with its ambitious plans to add volumes to India’s quest for energy security,” said a senior analyst with an Indian brokerage firm.
Sources at ONGC and the Indian government said ONGC Videsh Ltd, the main overseas arm of ONGC, was behind the bid. People familiar with the situation have said the asset is worth about $1 billion.
It was not immediately clear who the other bidders were, although there was talk that a couple of Chinese state oil companies have looked at the asset.
The Akpo field was discovered in 2000, and is located 200 kilometres offshore in water depths ranging from 1,100 to 1,700 metres.
Total said in May that Akpo would come onstream in late 2008.
Earlier this month, Nigeria signed a deal with ONGC Mittal Energy Limited, a partnership between ONGC and Mittal Steel, the world’s largest steel maker, to give oil exploration rights in return for up to $6 billion in infrastructure investment.