By the end of 2013, public sector oil and gas exploration company Oil India (OIL) plans to form an overseas subsidiary for operating its foreign assets.
It is learnt that OIL wants to set up an overseas subsidiary on the lines of ONGC Videsh (OVL), which is the foreign unit of state-run energy explorer ONGC.
The board of OIL is learnt to have cleared the proposal to set up an overseas subsidiary and the company secretary is reportedly taking steps to execute all the formalities for setting up the company.
Following the setting up of the proposed subsidiary, the employees working on the firm’s overseas projects will be shifted to the new venture.
OIL feels the need to have a dedicated team to acquire equity stakes in overseas projects and win blocks as the company is now looking to focus more on overseas operations.
OIL wants to have at 5-6 overseas assets at any point in time. Currently, most of the company’s overseas assets are at the exploration stage, making little contribution to the company’s overall oil and gas production and P&L.
Production from the Venezuelan Carabobo Project, where Oil India holds a 3.5 percent stake, commenced on December 27, 2012.
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