State-run Oil India (OIL), which began its search for quality oil and gas assets abroad in 2005 and has so far cumulatively invested over $2 billion in foreign ventures, followed the path of big brother ONGC and set up a separate arm for overseas operations a year ago. Though the event went rather unreported, currently, Oil India is working on the process to transfer the overseas assets to the wholly-owned subsidiary Oil India International (OIIL), senior officials from the company said.
OIIL's registered office is in New Delhi and recently, PK Sharma has been appointed as the managing director and Shankar Bhattacharya as director (finance). Both belong to the parent company. In addition, Oil India's director (HR and business development) Nripendra Kumar Bharali and director (finance) Rupshikha Saikia Borah are also on the OIIL Board. Gradually, the new firm would have its own board of directors, the sources said, adding the firm will be completely set up in the next two years. It is likley to be structured on the lines of ONGC Videsh, the overseas arm of ONGC.
Oil India has a presence in more than 10 countries, including Libya, Gabon, Nigeria, Yemen, Venezuela, the US, Mozambique, Bangladesh, Myanmar, Russia and Sudan. However, its overseas operations has marginal contribution to revenues as most of the projects are still in exploration stage. Few projects in countries such as Libya and Gabon have succumbed to socio-economical disturbances in those nations.
“OIL will continue to pursue acquisition of prospective overseas exploration and production (E&P) opportunities to ensure energy security for the country, to grow by enhancing its own E&P portfolio and decrease risks in the existing E&P portfolio,” the firm said in its latest annual report.
The source said that the company is looking at a easier process for transferring the assets from the parent company to its overseas arms, preventing any occurrence of capital gains. Industry watchers feel that overseas subsidiary would have the parent company to shield it from any turmoil in the international business. Moreover, there would be more focus and faster decision making as the arm will have its own Board.
“This move, from a broad perspective, should help the company to accelerate its effort towards higher inorganic growth by selective global footprints in tune with our national energy policy,” said N M Borah, who is currently the technical member (petroleum & natural gas) at the Appellate Tribunal for Electricity.
OIIL's registered office is in New Delhi and recently, PK Sharma has been appointed as the managing director and Shankar Bhattacharya as director (finance). Both belong to the parent company. In addition, Oil India's director (HR and business development) Nripendra Kumar Bharali and director (finance) Rupshikha Saikia Borah are also on the OIIL Board. Gradually, the new firm would have its own board of directors, the sources said, adding the firm will be completely set up in the next two years. It is likley to be structured on the lines of ONGC Videsh, the overseas arm of ONGC.
Oil India has a presence in more than 10 countries, including Libya, Gabon, Nigeria, Yemen, Venezuela, the US, Mozambique, Bangladesh, Myanmar, Russia and Sudan. However, its overseas operations has marginal contribution to revenues as most of the projects are still in exploration stage. Few projects in countries such as Libya and Gabon have succumbed to socio-economical disturbances in those nations.
“OIL will continue to pursue acquisition of prospective overseas exploration and production (E&P) opportunities to ensure energy security for the country, to grow by enhancing its own E&P portfolio and decrease risks in the existing E&P portfolio,” the firm said in its latest annual report.
The source said that the company is looking at a easier process for transferring the assets from the parent company to its overseas arms, preventing any occurrence of capital gains. Industry watchers feel that overseas subsidiary would have the parent company to shield it from any turmoil in the international business. Moreover, there would be more focus and faster decision making as the arm will have its own Board.
“This move, from a broad perspective, should help the company to accelerate its effort towards higher inorganic growth by selective global footprints in tune with our national energy policy,” said N M Borah, who is currently the technical member (petroleum & natural gas) at the Appellate Tribunal for Electricity.
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