Reserve Bank of India (RBI) allowed Essar Oil to mop up a maximum of $2.2 billion through external commercial borrowings in order to repay partially its debt of $2.8 billion.
The company is said to be in discussion with banks to raise the amount as it got the required approval. The company. however, has not finalized the amount to be raised through this route.
LK Gupta, Managing Director and Chief Executive Officer of the firm said talks were going on with banks and the firm would come out with the details once it is finalised.
Meanwhile, the firm said that it will continue to focus on domestic market as the sales contribution from local market is contributed about 60 per cent to its revenues in Oct-Dec 2012. It has more than 1,400 retail outlets across the country with another 200 are on various stages of operation.
It is learnt that the company raised the output of coal-bed methane gas from its flagship block in Ranigunj to 55,000 standard cubic metres per day (scmd) from 30,000 scmd a year ago.
The company has completed drilling 120 wells, while environment clearance for 618 wells is in progress. A pipeline is already in place to supply gas from the site. Matix Fertilisers and Chemicals would be the major client of the firm in the region, Gupta added.
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