Oil PSUS’ con­sor­tium may buy stakes in UAE field, says Ut­pal Bora

Resource Digest - - CONTENT -

In­dian oil PSUS are mulling to ac­quire up to 20 per cent stake in an oil field be­long­ing to Abu Dhabi Na­tional Oil Com­pany (ADNOC) in UAE, Ut­pal Bora, CMD of Oil In­dia Lim­ited said on Thurs­day.

"One of­fer has come from ADNOC of UAE. They are of­fer­ing some stake in a field. It is a pro­duc­ing oil field.

We are now do­ing some due dili­gence now whether it is worth in­vest­ing or not," said Bora.

"They are of­fer­ing around 20 per cent stake. We will be one of the com­pa­nies (mulling to ac­quire the stake). 20 per cent (stake) will be among the three or four oil com­pa­nies (PSUS). We are part of the con­sor­tium (BPCL, OVL, OIL and oth­ers)," said Bora.

On OIL'S out­look, Bora said the PSU is plan­ning to spend Rs 4,000 crore to­wards capex dur­ing the cur­rent fis­cal.

"Our capex plan is Rs 4,000 crore for 2017-18. The capex is for de­vel­op­men­tal drilling and ex­ploratory drilling pro­gramme and for cre­at­ing in­fra­struc­ture," he said.

Ac­cord­ing to him, most of the oil and gas blocks that the com­pany is op­er­at­ing are old ones.

On the pro­duc­tion front, he said this year OIL is ex­pected to pro­duce about 3.35 mil­lion tonnes of oil. Last year it achieved 3.28 mil­lion tonnes. "Go­ing by the cur­rent rate we will pro­duce more. It will be 3.35 mil­lion tonnes this year. Last year it was 3.28 mil­lion tonnes.

We have three pro­duc­ing as­sets -- two in Rus­sia and one in USA. We have ex­plo­ration as­sets in four coun­tries," he added.

On sur­ren­der­ing some of the non-vi­able blocks, he said they have al­ready sur­ren­dered five blocks which were put up in the mar­ginal oil fields auc­tion held last year.

"What they (the gov­ern­ment) are say­ing is that if there are some fields which are marginalised in na­ture and the com­pany does not have plans, then the gov­ern­ment said they will auc­tion it. "There was an auc­tion last time for marginalised fields.

Five out of six, marginalised fields have been given by OIL. We gave them be­cause they are not eco­nom­i­cally vi­able for us," he added.

OIL IN­DIA LTD CMD UT­PAL BORA

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