Indian Oil Corp heads for Dubai

New Delhi, Feb 1 | Updated: Feb 2 2006, 05:32am hrs
Indian Oil Corporation (IOC) has decided to set up a wholly-owned subsidiary in Dubai for expanding its overseas operations.

Given the tax benefits available in Dubai, IOC may also route its big-ticket investments for acquiring refining and exploration and production (E&P) assets abroad through this subsidiary.

IOC chairman and managing director Sarthak Behuria confirmed the move but refused to share finer details at this stage. A senior company official, however, told FE, IOC certainly has bigger investment plans for its Dubai subsidiary in the years to come.

It may be a slow going initially, but investments through this subsidiary will be on a much larger scale compared to our existing subsidiaries in Sri Lanka and Mauritius, which are catering mostly to the local markets there.

EXPANDING HORIZON

IOC may consider investing in Saudi Arabia through this arm
IOC has also plans to take over a refinery in Western Africa

The official said IOC may consider investing in oil-rich Saudi Arabia through this new subsidiary. Besides IOC, ONGC has already made an offer to Saudi Aramco for entering into a long term strategic deal.

Private sector major, Reliance Industries Limited (RIL) is also understood to have chalked out plans to invest close to $8 billion in Saudi Arabias refining and marketing sector. When asked by FE in Davos, RIL CMD Mukesh Ambani did not deny the move.