• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 3 mins Recession Jitters Are Rising. Is There Reason To Worry?
  • 1 hour US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 9 mins Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 8 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 4 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 8 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 1 hour Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 13 hours US to Drown the World in Oil
  • 2 hours Iran Is Winning Big In The Middle East
  • 18 mins Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 2 mins Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 5 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs

Indian Oil Companies Should Borrow More Internationally: Minister

Pradhan Al Falih

Indian oil companies should increase their international borrowing to keep the industry growing, the country’s oil minister Dharmendra Pradhan said today as quoted by Reuters.

“India’s growing energy sector is attractive for foreign investment,” Pradhan said at an industry event organized by BNEF in New Delhi.

“Many companies have successfully raised funding through overseas bond market and this funding route is likely to grow many fold going forward,” he added.

A jump in bad loans and the consequent bank credibility crisis in India has opened up the way to private equity and sovereign wealth funds to provide funding to India’s energy companies, but most of the flows have been into private businesses, notably renewable energy companies.

State-owned oil and gas players have been slow, it seems, to take the opportunity to replenish their finances with foreign money. This happens at a time when India, expected to become the biggest driver of global oil demand in the medium term, has turned into an attractive investment destination for state and private investment vehicles.

Energy demand in India is expected to double over the next ten years, driven by economic growth and a growing population. To date, most of the country’s energy is produced by coal, but crude oil is replacing that much faster than renewables.

Last year, India, together with China, accounted for half of the global growth in oil demand, which averaged 1.4 million bpd. Domestic production, however, is nowhere near enough to meet this rising demand, and India continues to import as much as 80 percent of the oil it consumes.

The international bond market would be a rational choice for Indian state energy players as the government seeks to boost domestic production to reduce this overwhelming reliance on imported oil, especially in the absence of reliable lending prospects at home.

By Irina Slav 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
Download on the App Store Get it on Google Play