OVL plans more overseas acquisitions

ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corp, is eyeing oil and gas properties in West Africa, CIS countries and Latin America with plan to invest one billion dollars a year in acquiring equity oil.

"For the last three years we have invested on an average one billion dollars every year in acquisition of oil and gas fields abroad. We can sustain (this investment) for quite some time," ONGC chairman and managing director Subir Raha said at a press conference in New Delhi.

India, which imports 70 per cent of its crude oil requirement, has been encouraging oil companies to acquire oil equity abroad to attain oil security for the country.

On OVL radar are oil-rich West African nations, CIS (Confederation of Independent States) countries, particularly Kazakhastan, South East Asian countries, and Russia. In Latin America, the company is contemplating taking stake in Venezula and Brazil.

Since 2000, OVL has built a handsome portfolio of oil properties abroad that includes 20 per cent stake in Sakhlain and 25 per cent in producing Greater Nile Oil Project in Sudan. Besides GNOP, OVL has also acquired stake in 5A and 5B exploration blocks in Sudan and 50 per cent stake in a gigantic oil field in Angola.

"Last fiscal we invested about Rs 1300 crore (Rs 13 billion) in acquiring oil properties and developing some of them. This year our investment may be Rs 7500 crore (Rs 75 billion)," OVL managing director R S Butola said.