Financial Daily from THE HINDU group of publications
Tuesday, May 02, 2006
Financial Daily from THE HINDU group of publications Tuesday, May 02, 2006 |
|
|
|
|
|
|
|
Corporate - Outlook IOC-OIL combine earmarks $3 b for acquiring oil equity Pratim Ranjan Bose
Behuria says IOC has secured "limited success" in E&P front. Company should focus on acquisition of productive assets. An investment of $2-3 billion within the available means of IOC-OIL consortium.
THE IOC CHAIRMAN, Mr Sarthak Behuria
Kolkata , May 1 Suffering from lack of equity oil support, Indian Oil has focussed on acquisition of productive oil assets primarily in the African continent. IOC also foresees an investment of $2-3 billion in acquiring oil equity along with OIL in the next few years. Company sources said the IOC-OIL combine was on the lookout for productive assets in Nigeria and a few other countries in Africa. When asked, the IOC Chairman, Mr Sarthak Behuria, admitted that despite being the first mover among the oil marketing companies, IOC had so far secured "limited success" in E&P front. According to him, the company should focus on acquisition of productive assets to attain its objective of having 5 million tonne equity crude by 2010-11. "I think that an investment of $2-3 billion within the available means of IOC-OIL consortium. However, this is not a firm commitment as such decisions are to be taken in consensus with the consortium partner(s)," he said, underlining that the oil spike has made prospective acquisitions costlier. Meanwhile sources said that IOC-OIL combine is set to complete the acquisition of 90 per cent stake in an exploratory oil block in Gabon in West Africa latest by June. Both the partners will hold 45 per cent each and has already entered into an MoU with the Government of Gabon in this regard. The block was offered to the duo by the state authorities of Gabon through a farming-in offer. The consortium will invest $12.5 million to buy the stake and will spend another $50 million on its development. OIL will be the operator of the block. The consortium had previously secured interest in two onshore blocks in the Srite basin in Libya.
Acquisitions
On prospective acquisitions in India, IOC sources said that the company's negotiation with Canadian oil major Niko Resource for acquisition of the latter's Indian assets, has failed yield any breakthrough. IOC will also participate in NELP-VI. "We have just entered in the data room and will decide on the participation strategy and the particular blocks in consultation with our partners" IOC unsuccessfully participated in four blocks in Andaman, Cambay and Rajasthan NELP-V along with its prime partner OIL, Exspan Exploration of Indonesia and Zakros. In the CB-ONN-2003/2 block it had bid for 75 per cent stake. The company has secured interests in 11 blocks through NELP-I, NELP-II and NELP-III. This apart, 27 per cent interest is secured in an onshore block in Assam-Arakan basin through `farm-in' offer. Also 35 per cent interest is secured in a block in Cachar in Assam from Premium Oil.
More Stories on : Petroleum | Outlook | Overseas Investments
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|