Defying possibilities of an economic slowdown, cash-rich oil PSUs including ONGC, OIL, GAIL and IOC have set aside close to $6 billion (Rs 30,000 crore) during 2012-13 as overseas investment that would include acquisition of assets abroad.
“We (ONGC) are looking at multiple lucrative oil and gas assets as part of our acquisition plans in UK, US, Africa and North America,” said a senior ONGC official. “ONGC has cash reserves of around Rs 25,000 crore. With a mix of debt and equity, we can acquire multi-billion dollar assets.”
Both GAIL and OIL have already announced their plans for big size acquisitions of shale gas assets in the US. Besides, OIL is also looking at acquiring other assets jointly with GAIL and other oil PSUs.
“We have kept aside Rs 1,000 crore for overseas investment during 2012-13 in addition of our plans to spend Rs 8,500 in various ongoing projects in India,” said a senior GAIL official.
IOC has projected investments close to Rs 10,000 crore in domestic projects, but given financial pressures, it is not looking at huge overseas investments.