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New Delhi: State-run Oil India Ltd (OIL) is discussion with London-headquartered Tullow Oil to acquire stake in its Kenya block.

Addressing the media on Thursday, “Some discussion is going on," said Oil India chairman Ranjit Rath, without elaborating further on the matter.

Tullow Oil has been looking for a strategic investor for its onshore oil project in Kenya. ONGC Videsh Ltd (OVL) previously held discussions in July last year with Tullow Oil. After the July meeting Tullow said the parties had agreed to hold further discussions on the matter.

Tullow is the present operator of the venture with 50% stake. Africa Oil Corp and TotalEnergies SE have 25% stake each. The three are likely to sell part of their stake.

Talking on the dividends stuck in Russia, due from its stakes in Russian projects, the CMD said that the company along with other Indian state-run companies having stakes in oil and gas assets there are working on possible solutions.

“Since we have a subsidiary office in Singapore and all these overseas assets are invested through our JVs or subsidiary structure, we are working out solutions along with our other partners," he said.

He further sad that the dividends are parked in Indian banks in Russia and the company is earning interests on them. “They are all parked in Indian banks in Russia. We are earning interest on that, we are getting dividends. It could just be a matter of time to get it resolved."

“We are engaging with legal consultants to evaluate various alternatives. On a daily basis we are monitoring the changes that are happening. And we are also talking to our collaborators of possible alternatives," he said.

Indian state oil firms have invested $5.46 billion in buying stakes in four different assets in Russia. These include a 49.9% stake in the Vankorneft oil and gas field and another 29.9% in the TAAS-Yuryakh Neftegazodobycha fields. The PSUs get dividends on profits made by the operating consortium from selling oil and gas produced from these fields.

On the tax outgo on account of the windfall tax imposed by the government on the sale of domestic crude oil, Rath said that on an annual basis, the impact has been around 1,900 crore.

For the last financial year (FY23), the company reported its highest-ever net at 26,810.40 crore, registering a growth of 75.20% on a year-on-year (YoY) basis. 

“The company also recorded the highest-ever turnover of 223,272.57 crore, a rise of 60.17% YoY," said a company statement.

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Updated: 25 May 2023, 10:28 PM IST
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