The state-run Navaratna oil explorer Oil India is chalking out an expansion and diversification strategy, and considering entering the city gas distribution space. "We plan to pursue a cautious strategy for our exploration initiative. We are looking for sure-bets, because exploration is a risky activity. Even when it comes to domestic exploration we intend to bid for the next Nelp auctions very selectively," Oil India Director for Exploration & Development Baikunta Nath Talukdar said here. The company is considering entering the gas transportation market, since it already has expertise in laying pipelines and transporting gas through pipelines. "We would like to market our gas directly to consumers. We may tie-up with a gas marketing company for this," Talukdar said. "City gas distribution and piped gas distribution are potential areas which we have identified for diversification.That apart, we also intend to tap shale gas, since natural gas price is rising," Talukdar said. Even in its overseas exploration ventures, the company plants to stick to fields that have already been discovered.Earlier, the company set aside 40 percent of surplus funds for exploration, now that figure has risen to 52 percent. Oil India also intends to improve recoveries from the existing oilfields. It is already engaged in increasing productivity of its mature oilfields by inducting new technologies. The company has begun horizontal drilling at its oilfields to enhance recoveries. The diversification will also follow a conservative strategy of sticking to those areas in which it has some expertise, Talukdar said.
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