Quippo Oil & Gas Infrastructure Limited (QOGIL), promoted by Srei Infrastructure, is planning to start oil and gas exploration at Cambay Basin in Gujarat this financial year.
QOGIL was awarded an oil block, (NELP VII Round) for exploration and production in Cambay basin about two years back.
QOGIL, directly and through subsidiaries and joint ventures , operates four oil rigs and one barge (barge held through a JV). These assets are provided on long-term lease contracts to customers, along with operating personnel and know-how.
“We are awaiting the final nod from Gujarat state government, after which we will start work at Cambay,” said Sunil Kanoria, vice chairman of Srei Infrastructure Finance, on the sidelines of a press meet here today. QOGIL holds about 40 per cent stake in the block, while the rest is held by domestic and foreign partners. The total investments in oil exploration would be close to $15 million, said Kanoria.
Fund raising
Srei Infrastructure Finance is planning to raise $500 million-1 billion from foreign investors for a dedicated fund, which would invest in Indian infrastructure projects. The company plans to conduct roadshows by June-July to attract overseas investors.
This apart, the company is planning to raise funds through external commercial borrowings as well.
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“For Srei project and equipment financing jointly, we would like to disburse about Rs 25,000 crore this year . Out of this 10-15 per cent should come from the ECB route,” said Hemant Kanoria, chairman and managing director, Srei Infrastructure Finance.
On raising funds through infrastructure bonds, Kanoria said, that there was not much appetite for such bonds in the current market, and the company would draw a strategy to raise funds through it after September this year. Srei is also looking at augmenting its footprints in Russia, and plans to invest about Rs 40 crore in the country, for starting leasing construction equipment business.
Q4 results
Srei Infrastructure posted a net profit of 14.20 crore for the fourth quarter of the last financial year, against Rs 46 crore in the same period last year, a fall of almost 69 per cent.
The profits were dragged down by high provisioning, as the company made a provision of Rs 22 crore for standard assets, in accordance with the new RBI guidelines. It also made a provision of Rs 19 crore for bad and doubtful debts in the last quarter. The company's disbursals increased by 87 per cent to Rs 4586 crore in the last quarter.