We're in talks for a stake in Advent Energy: GAIL CMD

Government-owned gas marketing company GAIL (India) said it was in talks to buy a stake in Australia’s Advent Energy, though Advent’s co-owners denied any such discussion.

“We are in discussion... The discussion is about taking equity in Advent,” GAIL Chairman and Managing Director

B C Tripathi told reporters here. He, however, declined to share details, saying “it is too premature to comment on it at this point of time”.

GAIL may team up with public sector companies Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) to buy a 25 per cent stake in the company, which may be worth $1 billion.

Officials in ONGC and OIL have denied any such move, while Tripathi said: “This is just an idea now.”

The co-owners of Advent Energy, an unlisted oil and gas exploration company, said a media report on the issue was incorrect. “Commentary in the media in India on formal discussions between Advent Energy and a consortium of Indian state-run energy firms, regarding talks to acquire a 25 per cent stake in Advent for $1 billion, is incorrect,” MEC Resources, BPH Corporate and Grandbridge Ltd said in separate statements.

Advent Energy has large gas reserves, including a block in the Sydney basin that has an estimated 13.2 trillion cubic feet of natural gas.

India's growing dependence on energy imports has prompted government-owned companies to step up efforts to make overseas acquisitions. However, Indian companies are facing stiff competition abroad from Chinese companies for acquisitions .