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| Oil India to diversify into oilfield services |
| Kalpana Pathak / Mumbai Aug 31, 2009, 00:22 IST |
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Government-owned Oil India Ltd, which will hit the capital market with its Initial Public Offer (IPO) on September 7, is planning to offer oilfield services to third parties. OIL would be the first domestic oil and gas explorer to diversify into providing oilfield services.
“We have an entire spectrum of specialist activities in the company. We have our own rigs, specialised personnel and equipment, etc. So, we have decided to take advantage of the same by providing these services to other exploration companies,” said a senior executive.
Oilfield service companies are the ones which provide a gamut of services, including provision of rigs, service vessels, well-testing and pipeline services, to the exploration and production industry.
OIL has already provided such services to exploration and production companies like Premier Oil and Canoro Resources. It was approached by state-run Oil and Natural Gas Corporation, too. “More and more companies are participating in the New Exploration and Licensing Policy (Nelp) and we look at it as a positive opportunity,” added the executive.
The company says there is tremendous demand for such services and it is also looking at enhancing its resource base and manpower. “We have expanded pretty well in the past few years and need the services for ourselves, too. So, we are looking at strengthening our position and manpower,” added another executive.
Oil India is also diversifying into city gas distribution and would be bidding for the next round, scheduled soon. It has already tied up with Bharat Petroleum Corporation (BPCL) for this venture.
The company has a capital expenditure plan of around Rs 4,500 crore for exploration, development, production and transportation of crude oil over the next two years. The IPO would be open from September 7 to 10 and the price band has been fixed between Rs 950 and Rs 1,050 per equity share.
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