Oil and Natural Gas Corp to invest big in acquisitions
India’s biggest Oil Company, the ONGC (Oil and Natural Gas Corporation) has plans to invest as much as $25 billion (Â£14.5 billion) in order to satisfy the government’s demand for it to alleviate the countryâ€™s dependence on foreign fuel supplies. India continues to import a big chunk of its oil requirement from abroad.
Subir Raha, ONGCâ€™s executive chairperson said while speaking to a media group that t the aggressive investment plans were aimed at increasing the groupâ€™s production from 1.1 million barrels per day (bpd) of oil and gas equivalent to more than 1.5 million bpd by 2011.
The company aims to have in place oil and gas reserves of 87.6 billion barrels, double the current figure in the next 15 years. It also plans to source at least 400,000 bpd from assets outside India. Mr Raha said in a statement: â€œThe transactions which are in process, if we get all of them, they come to between $15 billion and $18 billion.â€
ONGC is betting on the fact that they are currently the dominating players in the oil market in India and this would help them woo the worldâ€™s biggest oil companies, such as BP, in return for access to their oil and gas assets in other parts of the world.