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OIL for acquiring assets, firms in Australia, Africa, Russia

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 12:09 AM IST

State-run Oil India Ltd (OIL), which got listed on the bourses today, is looking at acquisition of crude oil producing assets or companies in Australia, South-East Asia, Africa, Russia and South America.

The company, which has oil blocks in seven other countries, currently has cash reserves of $1.5 billion, OIL Chairman and Managing Director, N M Borah said.

"We are actively looking at acquiring producing assets or going for corporate takeover of a company which has producing assets of our kind of appetite. We are looking at assets which have 10,000-20,000 barrels of oil per day production capacity," Borah told reporters here.

"Some of the geographies that we are looking at are South-East Asia, Australia, Africa, Russia and South America," Borah said.

Besides, he expects to commence drilling of exploratory wells at its Libya block by November.

OIL produces 3.5 million tonnes of oil per year and has a capex plan of Rs 4,500 crore over the next two years.

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"We will be spending 60 per cent of our capex on exploration and appraisal activities," Borah said.

The company is also investing in purchasing capital equipment and carrying out IOR/EOR techniques (Improved Oil Recovery and Enhanced Oil Recovery) techniques to raise crude oil and natural gas output from its existing field.

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First Published: Sep 29 2009 | 3:26 PM IST

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