Oil India Ltd. is likely to invest in Hindustan Petroleum Corp.'s refinery expansion and new projects, Oil India Chairman N.M. Borah said Thursday.
"Our core competence lies in the upstream sector but we would like to have some diversification in the exploration and production value chain," Mr. Borah told reporters on the sidelines of an event. "We think HPCL could be a valuable partner."
State-run explorer Oil India and refiner HPCL in August signed an initial pact to pursue business opportunities in exploration and production, city gas distribution, pipeline projects, new refineries, and research and development.
Oil India in 2009 signed an initial pact with state-run Bharat Petroleum Corp. to form a joint venture for city gas projects. It has another joint venture with Indian Oil Corp. to scout for oil and gas assets abroad.
Explorers look to diversify into other fields like refining and city gas projects through joint ventures to partly hedge against exploration ventures, which involve high risk and high investments.
Mr. Borah said Oil India plans to immediately spend 40 billion rupees ($843.8 million) to 50 billion rupees on its diversification efforts.
Oil India is also conducting due diligence in various parts of the world for oil and gas assets, he said, adding that some of the negotiations are in advanced stages.
The explorer, which currently holds about 120 billion rupees cash reserves, has identified oil and gas assets in Africa, Australia and Latin America, he said.
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An employee of a petrol station run by Hindustan Petroleum Corp. in New Delhi.
State-run explorer Oil India and refiner HPCL in August signed an initial pact to pursue business opportunities in exploration and production, city gas distribution, pipeline projects, new refineries, and research and development.
Oil India in 2009 signed an initial pact with state-run Bharat Petroleum Corp. to form a joint venture for city gas projects. It has another joint venture with Indian Oil Corp. to scout for oil and gas assets abroad.
Explorers look to diversify into other fields like refining and city gas projects through joint ventures to partly hedge against exploration ventures, which involve high risk and high investments.
Mr. Borah said Oil India plans to immediately spend 40 billion rupees ($843.8 million) to 50 billion rupees on its diversification efforts.
Oil India is also conducting due diligence in various parts of the world for oil and gas assets, he said, adding that some of the negotiations are in advanced stages.
The explorer, which currently holds about 120 billion rupees cash reserves, has identified oil and gas assets in Africa, Australia and Latin America, he said.
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