IOC, OIL to form venture for international projects

Nov. 15, 2004
Two of India' largest public energy companies, Indian Oil Corp. and Oil India Ltd., have agreed to form a joint venture to bid for international exploration and production projects.

By an OGJ correspondent

MUMBAI, Nov. 15 -- Two of India' largest public energy companies, Indian Oil Corp. and Oil India Ltd., have agreed to form a joint venture to bid for international exploration and production projects.

The agreement follows the suspension move for the companies to merge, following pressure from the Left Front, which is supporting the ruling Congress-led United Progressive Alliance government.

Sources from the Petroleum and Natural Gas Ministry (PNG) said the entities would hold equal equity in the proposed JV, which will have to be approved by their boards.

The PNG sources said the companies have estimated an initial investment of $2.21 billion in international E&P deals during the next 6-7 years.

Initially, the venture seek investments in Southeast Asia and Africa.