Dilip Shanghvi, the promoter of Sun Pharmaceutical Industries, is set to expand his oil & natural gas business.
Shanghvi is expected to be one of the bidders in the auction of 67 small oil and fields, a television report quoting government sources, said today. Sun Pharma spokesperson declined comment on the news.
Shanghvi's privately-held Sun Petrochemicals has been engaged in manufacture of acetylene carbon black, a petrochemical product, since 1999. It has a plant in Raigad district of Maharashtra.
Last January, Sun Petrochemicals set up a separate division Sun Oil and Natural Gas with a small team of geoscientists and engineers with aim to bid for small and medium sized oil and gas blocks. According to company's FY 2015 annual report, 145 oil and gas block opportunities around the world were scrutinised.
Last March, the company signed a deal for the transfer of Interlink Petroleum's interest in Modhera and Baola oil and gas fields in Gujarat. Both the blocks were awarded under the New Exploration Licencing Policy.
Similarly, Sun Petrochemicals is scouting for opportunities abroad. The company has signed two strategic Memorandum of Understanding agreements with Triumph Oil and gas Operating Company LLC, USA and with Loyz Oil Pte Ltd, Singapore, for joint bidding and acquisition of oil and gas blocks on farm-in/ joint venture basis and for technical collaboration.
It also entered into a joint venture with an Algerian company to participate in pre-qualification for feasibility study of zero gas flaring project in Algeria.