Asian Oilfield sells majority stake to raise funds

Firm generates over Rs 3.38 crore.

Asian Oilfield Services (AOSL), a leading player in conducting two dimension seismic survey for oil and gas companies in India, has sold majority of its equity to a Delhi-based company to raise funds for its future activities.

Talking to Business Standard, Krishna Kant, chairman, AOSL, said over Rs 3.38 crore raised through sale of majority stake to Consolidated Securities Ltd would be used mainly in developing existing business and diversifying into acquiring oil fields and entering in drilling business.

As funds are now available through the equity route, the present management of the company has decided to put its plans into action.

To begin with, the company would acquire an onshore drilling rig and marginal fields for further backward integration. According to Kant, there would be substantial gap between the requirement of drilling rigs and the ones available worldwide.

"While NELP-VI is still in the process, a large number of test and development wells are yet to be drilled from the NELP-V," he said.

Many among those who secured marginal fields in NELP V are still in the process of test drill.

The company's extraordinary general meeting was held last Friday in Baroda and the proposal to allot majority stake to Consolidated Securities was approved by the shareholders.

"In addition to NELP V and NELP VI, we have estimated that around 500 rigs would be required to drill coal-bed methane blocks allotted to various companies in previous rounds of NELP," said Krishna Kant.

The company has ties with Israel-based company for 2D seismic survey and data processing activity.

It plans to acquire a 2D-seismic survey machine to consolidate its position in the segment.

It also plans to enter 3D seismic survey and data collection in future.