Singapore: Singapore’s Temasek Holdings has expressed interest to invest in India’s oil and gas sector, petroleum minister Murli Deora said here on Friday.
“We had a breakfast meeting with Temasek chairman Ho Ching during which Singapore’s investment in the Indian energy sector was discussed,” Deora told the news agency here.
He said he gave the Indian energy plan update to Ho Ching, who is also the wife of Singapore Prime Minister Lee Hsien Loong, during a meeting.
It was followed by a meeting with foreign minister George Yeo and senior minister Goh Chok Tong today.
Temasek is a state-owned global investor in strategic industries.
Meanwhile, Deora and his oil and gas team also held a series of meetings with Singapore-based bankers over the last two days, after hosting a road show, meant to promote Indian petroleum basins under the New Exploration Licensing Policy IX yesterday.
“We have appraised the bankers and financial institutions on potential of investing in the Indian oil and gas sector,” he said, adding that global bankers widely welcomed the higher powered Indian delegation’s approach to raise funds from international markets.
Addressing a press conference in Singapore, the Minister said the Indian government is also ready for the Follow on Public Offer (FPO) of the ONGC an IOC. The government would diversify 5% of its 74% stake in ONGC and 10% of its stake in 75% stake in IOC.
Proceeds of $3 billion-$4 billion from the 5% ONGC FPO would go back to the government’s treasure.
However, IOC also is planning an additional 10% share placement along with the 10% government FPO, to raise funds, said IOC chairman B.M. Bansal, who was part of Deora delegation to Singapore.
In total 20% IOC FPO is expected to raise $5 billion to $6 billion, 50% of which would be going to the government coffer, added oil & gas secretary S. Sunderashen.
Elaborating on IOC plans, Bansal said new investments would include a petrochemical complex at Haldia, Panipat or Gujarat as well as an LNG importing terminal at Ennor near Chennai. “While we have a number of ongoing projects, new projects are also being planned for developing the country’s energy sector,” he said.
The IOC board has approved the LNG terminal, preliminary studies on which would be commencing soon, he said, adding that the 5 million tonne per annum terminal would be ready by 2015.