Public sector oil & gas company, Oil India (OIL), embarked plan outlay of about Rs 45 billion over the next two years in development and expansion activities.
Majority of this investment is expected to be in the domestic operations. The company will capture the capital market in February 2008 to fund the expansion.
The company has interest in oil, natural gas and LPG production in Assam, Rajasthan and Arunachal Pradesh. While in overseas, OIL has joint venture interest for oil and gas blocks in Libya, Nigeria, Yemen, Iran, Goban and Sudan.
OIL has highest number of blocks in Libya after four new blocks were offered to this consortium in December. The company will sign product sharing agreement with Algerian company, SonaTrack soon. SonaTrack will be the operator in the four blocks with 50% interest. While Indian Oil Corporation (IOC) and OIL will hold 25% each.
On its entry into capital market, OIL said that it will offer up to 26.45 million shares constituting 11% of the total capital at a price to be decided through a 100% book building process. Of these, 24.05 million shares will be available to the public. The company aims to increase the crude production to 3.50 million tons in 2007-08 against 3.10 million tons in 2006-07.
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