Oil India plans IPO to raise Rs1,500 crore

Oil India plans IPO to raise Rs1,500 crore
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First Published: Fri, Mar 02 2007. 03 46 AM IST
Updated: Fri, Mar 02 2007. 03 46 AM IST
State-run firm Oil India Ltd (OIL) hopes to raise Rs1,500 crore from an initial public offering (IPO) by October, its finance director said.
“We expect to get approval from the government by March-April and six months from that we hope to come out with an initial public offer,” T.K. Ananth Kumar told reporters.
The funds raised through a 10% sale will be used for exploration and production activities, he said.
OIL has a planned capital expenditure of Rs15,000 crore for the next five years, and is looking at overseas acquisitions along with Indian Oil Corp. (IOC).
“We are looking at various opportunities along with our partner IOC in Africa, Asia, West Asia and South America. We would like to buy a company or a unit of a company ... We are looking for a producing block,” he said.
OIL holds a 45% stake, including operatorship, in an onshore block in Gabon. It also holds a 25% stake in Suntera Nigeria OPL 205 Ltd.
The firm has a 15% interest in two blocks in Yemen, where IOC also holds a similar stake.
Kumar also said OIL was in talks with Hindustan Petroleum Corp. Ltd to buy a stake in HPCL’s south Indian refinery expansion.
OIL and IOC are looking to acquire producing oil assets in Africa, Middle-East, Asia and South America, Ananthkumar said.
“We would like to buy a company or one of its units,” he said, adding the opportunities in Nigeria, Yemen, Libya and Gabon are being explored but refused to give details.
The OIL official said the company plans to invest Rs 15,000 crore in the next five years in its core competence of oil and gas exploration and production and another Rs 2,000 crore in its downstream forays into refining.
“We are scheduled to hold discussions with HPCL this month on possible participation of OIL in their Bhatinda or Vizag refinery,” he said.
HPCL has already got India born billionaire Lakshmi N Mittal to take 49 per cent stake in the over Rs 16,000 crore Bhatinda refinery project and is looking at accommodating OIL, which too had evinced interest in picking stake in Bhatinda, in expansion of its Vizag refinery.
“We are keen on a minimum 26% stake,” Kumar added.
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First Published: Fri, Mar 02 2007. 03 46 AM IST
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