India’s second biggest oil exploration company is to set up an arm overseas in a bid to acquire oil and gas properties abroad.
Reports claim Oil India Limited’s board of members have approved the “incorporation of a wholly owned subsidiary” outside the country.
T.K. Ananth Kumar, Company Director for Finance told reporters: “The benefit of this will be that this company can give focused attention to overseas acquisitions. Also, the parent company will be diluted from liability of overseas assets.
“We want to grow inorganically and the new subsidiary will help accelerate efforts for opportunities abroad.”
The firm has so far been partnering with Indian Oil Corporation, India’s largest refinery, in its overseas ventures.
According to statistics from the Government’s Ministry of Petroleum & Natural Gas, India has total reserves of 760 million metric tonnes of crude oil and 1,330 billion cubic metres of natural gas. Crude oil production between 2011-2012 was 1.08% higher at 38.09 million metric tonnes compared to 2010-2011. The nation exported 60.84 million metric tonnes of petroleum products against imports of 12 million metric tonnes.
Last month, ELN reported India could be making plans for shale gas exploration, according to reports.