The Hindu Business Line : IOC in talks with 3 nations for retailing

The company, which aims to become a `transnational' energy major, has carried out a `detailed' market survey in 26 countries to scout for business opportunities, a senior official said.

"Indian Oil has plans to enter downstream marketing in identified countries in SAARC, South-East Asia and Africa. We have already forwarded a draft memorandum of understanding proposed to be with Nepal Oil Corporation for a joint venture in retail, LPG and pipelines businesses," Mr N.K. Nayyar, Director (Business Development), told Business Line.

Mr Nayyar said that the company is targeting markets in those countries that are developing, have Indian ethnic populations or are undergoing deregulation.

It has already begun consolidating its presence in the Sri Lankan retail market, where it owns 150 retail outlets and about a third of Sri Lanka's fuel storage and pipeline network.

IOC's subsidiary, Lanka IOC Pvt Ltd, which took over the chain of 150 retail outlets from Sri Lanka's national oil company, Ceylon Petroleum Corporation Ltd, has already announced plans to list on the Lankan bourses through an initial public offering of 24 per cent equity to raise $25 million.

In Mauritius too, the company has plans to initially set up 25 retail outlets in addition to setting up product terminals and an LPG plant.

This would form more than 10 per cent of the small Mauritian market, which has a total of 110 retail outlets.

In 2000, IOC had signed a memorandum of understanding with the Government of Mauritius to set up oil tankages and to market petroleum products under the Indian Oil brand name alongside other multinational companies.

Mr Nayyar said: "Vertical integration along the hydrocarbon value chain, coupled with growth in businesses such as petrochemicals, pipelines, etc., is the established growth model for all global oil and gas companies."

Accordingly, IOC is growing from a pure sectoral company with dominance in downstream to a vertically integrated international energy company.

"It will do so by strengthening its existing overseas ventures and simultaneously scout for new breaks in marketing and exports of petroleum products in foreign markets."

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