OIL, IOC to float SPV to acquire petroleum assets abroad

New Delhi, Apr 2 (UNI) Putting all speculations of approaching any prospective seller as consortium partners at rest, state-run petroleum companies Oil India Ltd (OIL) and Indian Oil Corporation (IOC) have decided to form a 50:50 special purpose vehicle (SPV) to pursue oil and gas assets abroad.

The OIL board has already approved the proposal and the IOC board is expected to take up the matter shortly, sources said.

The two companies would then work out other details such as where would the company be registered, name, and the capital base of the company.

Under the present norms, the OIL-IOC combine as a consortium is allowed to invest up to Rs 300 crore after seeking approvals of the competent authorities. Besides, the consortium has to set up a project-specific SPV before acquiring an asset.

The proposal would help the two companies set up a dedicated team to focus on acquiring assets and competing in the global market.

UNI