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Currently, ONGC Videsh Ltd (OVL) is the only Indian firm given the green light by the government to invest in oil and gas properties abroad. OIL may be asked, however, to team up with either Indian Oil Corp (IOC) or Bharat Petroleum Corp Ltd (BPCL) before it is allowed to invest abroad.
The company said it wants to invest at least a billion dollars every year in equity oil abroad so as to cut the 71% import dependence to meet crude oil requirement.
Downstream refiners like IOC and BPCL are interested in acquiring stakes in oil fields abroad to cut their import dependence but they don’t have expertise in exploration so it may be ideal for them to team up with OIL.
