BUSINESS

Good oil properties may be available in 6 months:

Source:PTI
March 04, 2009 20:00 IST

Reliance Industries on Wednesday said good oil and gas properties are likely to be available for acquisition globally in six months, providing Indian firms -- with deep pockets -- excellent opportunity to consolidate their portfolio.

The global financial crisis has seen many upstream firms being put on block as they faced cash crunch, RIL's president for international business Atul Chandra told a conference organised by Infraline here on Wednesday.

"But good opportunities will start flowing six months from now when these good companies face cash crunch," he said.

"The window of opportunity (for acquisitions) is one year and not 3-4 months as is being told by investment bankers."

Companies with deep pockets like state-owned Oil and Natural Gas Corp and Reliance should look for acquisitions then. Currently, relatively not so good acreage is being put up for sale.

Tar sands of Canada and heavy oil acreage of Venezuela, which at current crude oil prices of under $40 a barrel are economically unviable, presented good investment opportunities as in the medium to long term oil prices will go up again, and "we must acquire these assets," he said.

He said $60 a barrel was the right price for valuing potential oil exploration acquisitions.

Source: PTI
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