ONGC says HPCL acquisition to be completed by March

State-run ONGC aims to complete the acquisition of oil marketing company Hindustan Petroleum Corporation by March, the chairman and managing director of the oil explorer said Saturday.

On July 19, the Cabinet approved the sale of 51.11% in HPCL held by the government to ONGC. This is a part of the government’s Rs 72,500 crore disinvestment target and its plan to consolidate the energy companies in the country.

“There is an impression that this decision has been thrust upon us. But that’s not the case, after the finance minister announced the plan in the budget they consulted us on what we want. We are confident that we will be completing the acquisition by 2017-18,”said Shashi Shankar, head of ONGC.

He declined to comment on the price that ONGC will pay to shareholders, citing that it is being evaluated by the advisors to the deal.

Post-acquisition, ONGC will emerges as India’s first fully integrated state-run oil and gas company with significant upstream and downstream operations.