BPCL plans Rs 6,000-cr E&P play
Bharat Petroleum Corporation plans to invest Rs 6,000 crore in the exploration and production (E&P) business to transform itself into a fully-integrated oil company.
By PTI |
MUMBAI: Bharat Petroleum Corporation plans to invest Rs 6,000 crore in the exploration and production (E&P) business to transform itself into a fully-integrated oil company.
The oil major already has assets in high-potential East Timor, Australia and Oman in the Gulf regions, besides three assets in the Krishna-Godavari (KG) basin and will use these as the platform, on which to build up its E&P play.
Underscoring its intentions to become a major E&P player, BPCL has set up a separate company, Bharat Petroresources, with an authorised capital of Rs 1,000 crore. “This separate company will bring in sharp focus to this business and from the financial point of view and also limit our financial exposure to Rs 1,000 crore, so as to avoid overexposure,” a top company official said.
“We have already committed Rs 600 crore and will make further commitments of Rs 4,000-5,000-crore in the next four-five years,” BPCL’s chairman Ashok Sinha said.
While there would be no timeframe fixed for BPCL to become a fully-integrated oil company, “We have already initiated steps in this direction with exploration work in progress in all blocks awarded under Nelp-IV,” he said.
ADVERTISEMENT
The company, which is in the gas exploration business with ONGC in KG basin, is targeting a sale of five-million tonnes of natural gas in the next five-year period, once the gas-finds get commercialised. In east timor, BPCL’s partners are Oilex of Australia, HPCL and Videocon.Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
