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OVL eyes new oil assets, less costly

business Updated: Apr 01, 2010 21:31 IST
Anupama Airy
Anupama Airy
Hindustan Times
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While China is aggressively pumping funds to procure oil and gas assets overseas, state-owned ONGC Videsh Ltd (OVL) said its strategy continues to be the acquisition of “comparatively newer oil and gas assets that are less costly,” as against matured fields, available at a higher cost.

“OVL’s strategy is to scout for younger fields, with proven oil and gas reserves that are in need of investments for being developed into producing assets,” R S Butola, managing director, OVL, told HT on the sidelines of the 12th International Energy Forum. “We are not averse to big acquisitions if it offers value but as a strategy we would prefer newer assets.”

OVL’s focus countries for acquiring such oil and gas assets are Russia, Africa, CIS countries and Latin America, Butola said. OVL, which has so far invested close to $12 billion in acquiring oil and gas assets abroad, has nine producing assets in seven countries along with assets under development in six countries. “Funding is not a constraint for OVL but any big acquisition has to be a strategic fit for us.” Butola said.