IOC earmarks $1bn for overseas acquisitions

State-run Indian Oil Corporationon Tuesday said that it has earmarked $1 billion for the acquisition of good-quality producing or developing E&P assets abroad.

"We are looking for good-quality assets abroad. We have reserved $1 billion for acquisition of producing or developing E&P assets overseas," IOC chairman B M Bansal told reporters on the sidelines of its annual general meeting. IOC will look at shale options in the US as well, Bansal said.

The company which has a 35 per cent stake in Venezuelan E&P assets worth $700 million, will have another state-run company, Oil India Ltd, as its JV partner for any overseas acquisitions for five years, he said.

"The Oil Ministry has sent a delegation to the US to assess opportunities there and we are in constant touch with the Ministry," he said in response to a query.

In India, IOC has expressed its interest in shale, but no player here has technical expertise in shale exploration.

"The Director General of Hydrocarbons is trying to assess shale assets in India and we will bid for the blocks when the time comes," Bansal said.