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Ahmedabad, Aug. 31 State-owned Oil India Ltd (OIL), which is hitting the capital market on September 7, plans to invest nearly Rs 4,500 crore in the next two years on exploration-related activities.

It would also focus on acquisitions of old companies and intensify offering oilfield services to third parties. It currently has a liquidity of Rs 6,500 crore, which can give it a leverage by four times.

To fund its plans, Asia’s oldest and India’s second largest hydrocarbon exploration company after ONGC, is raising Rs 2,200 crore by roping in oil marketing companies as shareholders and mopping up another Rs 2,800 crore via the IPO route, said Mr Narendra Bhalla, Executive Director, here today.

The company plans to recruit more people to increase its strength from the current 7,800.

OIL has overseas presence in eight countries, with acreage of 41,273 square km covering 19 blocks and is working in nearly 30 hydrocarbon fields, at various stages, in India.

Besides scouting for producing and discovered exploration and production (E&P) blocks, OIL is also pursuing companies having a good portfolio or exploration acreages and producing assets.

The company plans to get into city gas distribution (CGD) for which it would bid in the next round along with BPCL and IOC.

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(This article was published in the Business Line print edition dated September 1, 2009)
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