Oil India to invest Rs 4,500 cr in next 2 years, IPO in Feb

Kolkata, Dec 28 | Updated: Dec 29 2007, 05:21am hrs
Public sector oil and gas company, Oil India Ltd (OIL) on Friday said it has a plan outlay of about Rs 4,500 crore over the next two years in development and expansion activities.

"We are looking at plan outlay of about Rs 4,500 crore in the next two years. Majority of this investment will be in the domestic operations," OIL chairman and managing director M R Pasrija said on Friday, on the sidelines of Institute of Chartered Accountants of India (ICAI) regional conference. Pasrija said the company would hit the capital market in February 2008, to fund the expansion and augmenting production

OIL has interest in oil, natural gas and LPG production in Assam, Rajasthan and Arunachal Pradesh. While overseas, OIL has joint ventures for oil and gas blocks in Libya, Nigeria, Yemen, Iran, Goban and Sudan.

Pasrija said OIL has the highest number of blocks in Libya, after four new blocks were offered to this consortium in December.

"We will shortly sign a product sharing agreement with Algerian company, SonaTrack which will be the operator in the four blocks with 50% interest, while, Indian Oil Corporation and OIL will hold 25% each," he said.

On its entry into capital market, OIL said it would offer up to 26.45 million shares constituting 11% of the total capital at a price to be decided through a 100% book building process. Of these, 24.05 million shares will be available to the public.

The company aims to increase the crude production to 3.50 million tonne in 2007-08 against 3.10 million tonne in 2006-07.