Confirming the development HPCLs chairman and managing director, MB Lal, told FE, "We are in discussions with E&P companies in Europe and the Far East to acquire them, though nothing has been firmed up yet." He, however, did not mention the names of companies HPCL is in talks with.
When asked about funding the overseas acquisition, HPCLs director finance C Ramalu said, "Funding will not be an issue for us. We will use funds from the $1 billion we have allocated for the E&P sector. We may also raise funds as and when required."
Analysts commented the move will help HPCL to scout for oil equities overseas through the acquired company, while HPCL can continue to focus on its core downstream activities like refining and marketing. UK is the largest producer of crude in the European region, followed by Denmark, and other countries such as Italy, Germany and the Netherlands.
| The war chest: HPCL sets aside $1 billion for the E&P segment |
The spin-offs:The move will help HPCL's hunt for oil equities overseas
IOC, GAIL also for global acquisition in E&P sector