Hindustan Petroleum sets aside $109 million for exploration

Oct. 27, 2003
Indian state-owned refiner Hindustan Petroleum Corp. has set aside 5 billion rupees ($109 million) for oil exploration and production, which marks the latest Indian company saying that it wants to diversify.

Shirish Nadkarni
OGJ Correspondent
MUMBAI , Oct. 26 -- Indian state-owned refiner Hindustan Petroleum Corp. has set aside 5 billion rupees ($109 million) for oil exploration and production, which marks the latest Indian company saying that it wants to diversify.

Previously, three Indian government-owned companies—Oil & Natural Gas Corp. (ONGC), Indian Oil Corp. (IOC), and Gas Authority of India Ltd. (GAIL)—agreed to form a partnership for overseas operations. They work as a consortium in international ventures for oil and gas exploration and production, transportation, and marketing projects (OGJ Online, Oct. 15, 2001).

HPCL Chairman and Managing Director M.B. Lal told reporters in Mumbai late last month that the exploration and production allocation was "an initial investment amount for our upstream foray."

"Depending on the wells and acreage acquired by us, we will increase the allocation for exploration. We are keen on becoming a big player in the E&P business," he said.

The company already is talking with other domestic exploration firms about jointly participation in exploration blocks.

Regarding the downstream and retail marketing, HPCL has submitted an expression of interest for acquiring 100 Sri Lankan outlets up for sale by Ceylon Petroleum, which owns a total of 260 outlets.

The Indian refiner has been short-listed by the Sri Lankan government, and asked to submit technical and price bids.