IFFCO enters oil sector; buys 10% in Canada firm | business | Hindustan Times
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IFFCO enters oil sector; buys 10% in Canada firm

business Updated: Feb 10, 2010 23:02 IST

Fertiliser cooperative IFFCO on Wednesday marked its entry into the oil and gas exploration sector by acquiring a 10 per cent stake in Canadian firm Americas Petrogas Inc for an undisclosed sum.

The world’s largest fertiliser cooperative has also picked up 20 per cent stake in GrowMax, a subsidiary of Americas Petrogas with a large potash project in Peru, IFFCO’s Managing Director US Awasthi said here.

Americas Petrogas owns 11 virgin blocks, measuring 1.5 million acres, in Neuquen basin of central Argentina and hasstarted trial production in four wells. The production is likely to reach 5,000 barrels per day (BPD) by December.

“We have been considering to enter into the oil and gas sector for the last five years and found Americas Petrogas to be the best partner among three others,” Awasthi said, adding, however, that IFFCO does not have any plan to participate in the next round of the New Exploration and Licencing Policy. “India is not the market for our oil and gas exploration.”

IFFCO and Americas Petrogas would consider putting up a urea plant in Argentina using the gas from the field with an investment of $1 billion.