IndianOil in talks for stake buys in Africa
New Delhi   08-Nov-2007
IndianOil the country's largest crude oil refiner and marketer of petroleum products, is in talks with various African countries for buying stake in discovered oil and gas blocks. The Fortune 500 Company is also keen on buying into existing refineries and helping in their up gradation and maintenance. "We are in talks with Nigeria and some other African countries for exploration and production blocks," said IOC business development director, BM Bansal. The company has also decided to increase its crude oil imports from Nigeria from 2 million tones per annum to 3 million tones. He added that the company was not keen on exploration blocks, but rather wanted to buy stake in discovered fields, a strategy that is an accepted one around the world. Global oil companies such as Brazil's Petrobras, Italian ENI and Norway-based Norsk Hydro have previously followed the same route to pick up stake in oil blocks operated by Oil and Natural Gas Corporation (ONGC) in India. When asked if IndianOil was not willing to take the risk of investing in an exploration block, Bansal explained that the company was looking for oil and gas sources which will help feed its refineries in India. Another government-owned oil refiner and marketer, Bharat Petroleum Corporation (BPCL) is also following a similar strategy. "We already have enough exploration blocks. Nowhere interested in buying into discovered blocks," the company's Chairman and Managing Director Ashok Sinha said. IndianOil is keen on buying stake in refineries in Africa It will; however, pick up stake only if the refinery is bundled with an oil or gas block. "That way, the refinery can be fed with oil from our fields," Bansal said. Separately, IndianOil has offered to invest in a gas-based petrochemicals plant and for set-ting up a liquefied natural gas facility in Mozambique. This followed discussions with a delegate from the company at the India-Africa Hydrocarbon Summit.IndianOil has also agreed to help increase the liquefied petroleum gas (LPG) storage capacity in Mauritius, Bansal said.