• 4 hours Thanksgiving Gas Prices At 3-Year High
  • 8 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 10 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 13 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 14 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 15 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 17 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 7 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 8 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

India Plans Next Merger On Road To Creating Oil Giant

New Delhi

India’s top refiner Indian Oil Corporation (IOC) may buy out the government’s 66-percent stake in exploration company Oil India, in a second deal involving oil firms that is part of India’s plan to create a giant integrated oil company, ET Now news reported on Monday, citing sources.

It was not immediately clear if the transaction would be an all-cash deal, an all-stock deal, or a mix of the two, ET Now said. However, a possible IOC-Oil India deal would probably be an easier transaction to execute than the plan to merge the third-largest local refiner Hindustan Petroleum Corp (HPCL) and the country’s biggest explorer, state-held Oil and Natural Gas Corporation (ONGC).  

Last month, India’s government was said to plan to sell by the end of this year its 51.1 percent stake in HPCL to ONGC, in a deal valued at around US$4.5 billion.

The stake sale is part of India’s plan to create a state-held oil giant.

In early February this year, India’s Minister for Finance and Corporate Affairs, Shri Arun Jaitley, said in the presentation of the 2017/18 budget in Parliament that the country was planning to create an integrated public-sector oil major to match the performance of huge international private sector oil and gas companies. 

Regarding the plan about IOC buying the Indian government’s stake in Oil India, ET Now sources say that one view within the cabinet is that it should be completed by the end of the current Indian financial year, while another view is that it should be completed after the ONGC- HPCL deal.

Related: The Only Way OPEC Can Kill U.S. Shale

Meanwhile, the government is getting ready to authorize the ONGC- HPCL deal, according to ET Now.

India’s plan to merge some state-held oil enterprises could reduce inefficiencies in the sector, Fitch Ratings said in February, shortly after the initial project was announced. An oil major would also be in a better position to compete for resources globally and withstand oil price volatility. On the downside, Fitch sees the plan as likely reducing competition on the domestic market, and facing challenges in the actual executions of the mergers.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News