The government is likely to empower ONGC Videsh, the foreign arm of state-run Oil and Natural Gas Corporation, to make investments of up to Rs 300 crore (Rs 3 billion) in oil and gas properties abroad without going to the Cabinet for approval.
"A note for the consideration of cabinet committee on economic affairs has been circulated enhancing the powers of OVL to approve projects involving investments up to $75 million or Rs 300 crore, which ever is less," a top official in the ministry of petroleum and natural gas said.
The OVL Board is currently empowered to take investment decisions of up to Rs 200 crore or $50 million.
"This (enhancement of OVL powers) shall enable the Board to take up fast decisions to acquire medium sized projects and ventures to increase their oil and gas production from overseas participation to augment the energy security of the country," he said.
During recent times, OVL had lost out on key assets to the Chinese companies as its investment decision could not be ratified by the CCEA in time.
Last year OVL was to buy 11 percent stake in exploration blocks 3D, 3E and 7E in Sudan.
"The acquisition could not materialise as, while awaiting the decision of the CCEA on buying 5 percent holding of Al Thani Corp of Qatar and 6 percent of Gulf Petroleum of United Arab Emirates, the latter sold its stake to a Chinese company at a price higher than that discussed with OVL and the other seller did not extend the exclusivity with OVL."
