The Indian subsidiary plans to make large investments in petroleum, chemicals, natural gas, liquefied natural gas and power projects on its own or in joint venture with Indian partners as investment opportunities come by, sources said.

Texaco is making the investment in the country through its Mauritius-based subsidiary Texaco South Asia Energy Development Company. The company initially proposes to invest $14 million in the wholly-owned subsidiary. The subsidiary would act as a holding company for undertaking the "establishment, development, operation, maintenance, construction, financing, ownership and commissioning" of these projects and build local expertise and competence by involving other Indian companies.

Besides investing in projects, Texaco also intends to provide consultancy,engineering, marketing, industrial and technical and management services in respect of these projects.

According to the proposal submitted by law firm Titus & Co on behalf of Texaco to the Foreign Investment Promotion Board, Texaco South Asia has already been shortlisted for participation in the 500mw refinery residue-based power project proposed to be set up at Visakhapatnam in Andhra Pradesh. The company also plans to licence its gasification technology to Indian Oil Corporation Ltd as well as other Indian refineries for their refinery-based products. Sources said Texaco South Asia has also been in talks with Indian Oil and Marubeni, which are setting up a 301mw vacuum residue-based power project at Panipat, for licensing of gasification technology.

Texaco plans to invest in upstream and midstream energy projects involving exploration and production, marketing, manufacturing and distribution of oil and natural gas including liquefied natural gas terminals, pipelines, refinery-based power projects,etc.

The company's proposal states that it "views India as a major strategic market in Asia and believes that the establishment of its wholly-owned subsidiary is an essential step towards providing support for the energy sector in India".

Texaco operates in about 150 countries and has experience of almost 100 years in onshore and offshore exploration and oil production across five continents. It also markets automotive fuels to some 23,000 Texaco-branded retail facilities worldwide. The company sells lubricants, coolants and marine and aviation fuels.

It formed Texaco Global Gas and Power in 1997 to commercialise selected natural gas properties, develop gas-to-gas liquids conversion processes and leverage the group's strengths in power generation and proprietory gasification technology which reduce emissions and lower operating costs.