ONGC to pump in USD 800 mn to enhance Imperial's output
State-run Oil and Natural Gas Corporation on Saturday said it would invest USD 800 mn in the LSE-listed Imperial Energy, which was recently acquired by its overseas arm ONGC Videsh Ltd for 1.42 bn pounds.
By PTI |
KOLKATA : State-run Oil and Natural Gas Corporation on Saturday said it would invest USD 800 mn in the LSE-listed Imperial Energy, which was recently acquired by its overseas arm ONGC Videsh Ltd for 1.42 bn pounds (nearly Rs 11,200 crore).
"We will invest USD 800 mn in Imperial Energy to strengthen production and enhance its output," ONGC Chairman and Managing Director R S Sharma told reporters here.
He, however, declined to put a time-frame for the planned investment.
Imperial produced about 10,000 barrels of oil per day in December, 2007, and is targeting to raise this to 80,000 barrels per day (four mn tons a year) by the end of 2011.
Asked by when OVL would be able to freeze the Imperial acquisition deal, Sharma said, "the next 45 days would be crucial. If everything runs smoothly, we expect to crystallise the deal."
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Commenting on the funding options for the deal, he said the company would be resorting to bridge finance of up to USD one billion out of the total outgo of USD 2.8 bn. "The rest would be funded through internal accruals," he said.
Imperial, a relatively small British oil and gas company based in Leeds, the UK, has oil producing blocks in Tomsk region of western Siberia in Russia and Kastanai in north- central Kazakhstan.
Having lost assets in Ecuador, Kazakhstan and Angola to Chinese aggression, OVL won the approval of Imperial's board of directors for its 1,250 pence a share offer.
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