OVL to raise Rs 5,190 crore loans to meet Capex

NEW DELHI: ONGC Videsh, the overseas arm of state explorer Oil and Natural Gas Corp (ONGC), plans to raise Rs 5,190 crore in loans this fiscal to fund its planned capital expenditure of Rs 14,792 crore.

The fund raising will be besides the long-term debt the company plans to take to repay bridge, or short-term financing, it had resorted to fund acquisition of 16 per cent stake in a giant gas field in Mozambique for $ 4.125 billion. “Our planned capex for 2014-15 is Rs 14,792.09 crore. Of this, Rs 9,602.45 crore will be met from internal resource generation (revenue from sale of oil and gas) and the remaining Rs 5,189.64 crore will have to be raised in loans,” a senior company official said.

OVL, which had an capex of Rs 10,891.41 crore in 2012-13, saw planned expenditure jump to Rs 36,117.46 crore last fiscal as it made the Mozambique acquisitions. Of this, Rs 11,958.11 crore came from internal resources and the rest Rs 24,159.35 crore was borrowed.

Last year, OVL teamed up with Oil India Ltd (OIL) to buy Videocon's 10 per cent stake in Mozambique's Rovuma Area 1 for $ 2.475 billion.