IOC plans to hive-off E&P business; stock up

MUMBAI: With petrol prices up nearly 9 per cent and diesel rates poised to rise, state-run Indian oil Corporation is preparing plans to revitalise its upstream business and hive it off into a subsidiary, as India's biggest refiner and fuel retailer turns to its growth strategy after struggling with low fuel state-set fuel prices for months.

"We can have another subsidiary for E&P, like ONGC has OVL or we can have an E&P division within IOC for better focus on upstream business," said RS Butola, chairman, IOC to ET.

IOC has stakes in a dozen of domestic oil and gas exploration blocks besides having equity participation in nine overseas blocks in Libya, Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela. But these ventures have so far not delivered the kind of results IOC was aiming for.

The stock was at Rs 344.65, up 0.31 per cent on the NSE. It touched a high of Rs 359.70 and low of Rs 342.70 in trade so far.