Oil India, IOC eye $4 bn asset buy

Oil India and IOC have a MoU to jointly buy assets abroad, but have so far been in the shadow of ONGC.

Indian state-run oil companies Oil India and Indian Oil Corp (IOC) are planning the joint acquisition of an energy asset worth $3 billion to $4 billion, Oil India's managing director said on Monday.

HT Image

"We have several proposals on the table," Ranjit Kumar Duttar told Reuters on the sidelines of an energy conference in London. "We are having some discussions. We are now trying to acquire some medium-sized properties here and there, (worth) $3 to $4 billion."

He said while several proposals are being evaluated, the companies together would only buy one asset of that value. He would not give details on the proposed acquisition targets, but said they are considering "both companies and properties."

Oil India and IOC have a memorandum of understanding to jointly buy assets abroad, but have so far been in the shadow of state-run Oil and Natural Gas Corp (ONGC), the main Indian government vehicle for foreign oil acquisitions.

In December, the Indian government took steps to facilitate any moves the companies make together to buy assets abroad, which should speed up the process, Dutta said.

In March last year, India Oil and IOC signed a contract to explore for oil in Libya after a successful bid by the Indian firms for Block No 86 in the Sirte basin of the oil exporting country.

India, which imports 70 per cent of its crude, is actively seeing oil assets abroad to ensure energy security as its energy demand grows rapidly.

The Indian government is encouraging IOC and OIL to bid for foreign projects ONGC already has investments in several foreign projects.

India Oil produced about 65,000 barrels per day of India's 625,000 bpd in December. IOC is India's largest refiner.