Consortium of Indian oil companies to acquire 10% stake in UAE's ADNOC

A consortium comprising several oil companies in India is reportedly eyeing a stake in a hydrocarbon asset of the Abu Dhabi National Oil Company (ADNOC). The consortium is led by ONGC Videsh Ltd (OVL)and includes companies like Indian Oil Corporation Ltd (IOCL), Bharat PetroResources Ltd (BPRL) and Oil India Ltd (OIL), according to a report in Mint. 

The Indian and UAE governments are facilitating the talks, the report added. It will be India's second investment in a producing asset in the Gulf region. 

India's gas imports from UAE were $1.8 billion between April and August. This is over 20 per cent of all the oil imports by India. Organization of Petroleum Exporting Countries (OPEC) makes up 85 per cent of India's total crude oil imports. UAE is a part of the OECD. 

"We already have two blocks in the UAE, of which one is a producing block, and the other is an exploration block. We are looking to get into another producing block, and the stake is expected to be acquired by a consortium led by ONGC Videsh," an official aware of the matter told Mint.

In 2018, Indian public oil companies, including OVL, IOCL and BROL, signed a deal with UAE to acquire a 10 per cent stake in the Lower Zakum oil field.  

India is the third-largest consumer of energy in the world. The ADNOC is also reportedly looking to expand its presence in India through investment besides increasing its oil stock. 

The company had earlier announced a partnership with Reliance Industries to make a facility in Ruwals, Abu Dhabi. ADNOC has also awarded exploration rights in the Abu Dhabi Onshore Block 1 to the Indian consortium, according to Mint.