The Hindu Business Line : IOC to invest in E&P sector abroad thro' jt venture

Kolkata April 7 IndianOil will route all overseas investments in excess of Rs 1,000 crore in exploration and production sector through the proposed joint venture with Oil India Ltd.

This means that all major investments of the company in E&P sector will be done through the joint venture. The 50:50 joint venture is expected to be formed this month following board approval from IOC. OIL board has approved the proposal.

On whether IOC will depend on the joint venture to carry forward its plan to invest in E&P sector abroad, a senior IOC official said, "all investments requiring government approval would be done through the joint venture."

The board of directors of IOC is now allowed to take investment decisions up to approximately Rs 1,000 crore in foreign countries.

"Both IOC and joint venture will work in tandem in exploring investment opportunities abroad," the official said, adding that the detailed modalities would be decided on case to case basis.

Downstream sector

Interestingly, while the joint venture will focus on E&P sector only, IOC is open to strengthen its alliance with OIL in downstream sector as well. "We are now scouting investment opportunities in the downstream sector abroad and is open to take OIL as a partner," the official said.

He, however, maintained that OIL was yet to discuss any such investment opportunity with IOC.

More Stories on : Overseas Investments | Petroleum | Alliances & Joint Ventures

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