MercoPress. South Atlantic News Agency

Major Indian oil company interested in shale gas assets in Argentina

India OIL chairman N M Borah has a war chest of one billion USD

State run India OIL Ltd has drawn up a war chest of over 1 billion US dollars, for acquiring a producing oilfield abroad and the company is trawling major oil-producing geographies, among which shale gas assets in Argentina, chairman N M Borah said last week.

OIL is India’s second-largest explorer after ONGC and is looking for a medium-sized discovered or producing oil property. The acquisition is to supplement its present operations.

“We are scouting South America, Southeast Asia, Africa, Australia, CIS countries and Russia. We are looking into some properties but at this point in time I cannot say that we are acquiring 'this' company,” Borah said. The company reported a 30% jump in its fourth quarter profit in spite of its fuel subsidy burden doubling.

India is the world's fourth-largest oil importer, buying about 80% of its crude needs. It has been scouting for oil and gas assets abroad to meet demand in an economy growing around 8.5%, and to feed its expanding refining capacity.

N M Borah said his company had joined hands with IOC to acquire exploration acreage in Gabon, Iran, Libya, Nigeria, Yemen, Timor Leste, Egypt, Venezuela and Sudan.

OIL has abandoned its acreage in Libya after failing to find commercially viable oil. However, he said Block Shakti in onshore Gabon, West Africa, looked promising. In Venezuela, the company in partnership with ONGC Videsh, Petronas of Malaysia and Repsol-YPF of Spain plans to start heavy oil production from 2013 onwards.

The Indian company produced 3.627 million tons of crude oil and 2.352 billion cubic meters of gas in 2010-11 from its domestic fields.

OIL is on the lookout for a medium sized discovered or producing oil property/company overseas to supplement its present operations which are confined mostly in the North East of India. “Acquisition of overseas exploration blocks and oil and gas properties is a strategic focus area of OIL” added NM Borah.