"The (OVL) Board has been authorised to take decisions on projects involving investment up to $75 million or Rs 300 crore, whichever is less," Petroleum Minister Mani Shankar Aiyar said.
Prior to this, OVL Board was empowered to take investment decisions of up to Rs 200 crore (Rs 2 billion) or $50 million.
The enhancement of OVL's powers shall enable the Board to take fast decisions to acquire medium-sized projects and ventures to increase oil and gas production from overseas participation to augment the energy security of the country.
Officials said during recent times, OVL had lost out on key assets to Chinese companies as its investment decision could not be ratified by the CCEA in time.
Last year, OVL was to buy 11 per cent stake in some exploration blocks in Sudan. "The acquisition could not materialise as, while awaiting the decision of the CCEA on buying 5 per cent holding of Al Thani Corp of Qatar and 6 per
cent of Gulf Petroleum of United Arab Emirates, the latter sold its stake to a Chinese company at a price higher than that discussed with OVL and the other seller did not extend the exclusivity with OVL," a Petroleum ministry official said.
OVL wanted to buy Al Thani Corp's 5 per cent stake in Sudan's Blocks 3D, 3E and 7E, which has China National Petroleum Corp and Petronas of Malaysia as other partners, for $57 million. It offered $68.4 million to Gulf Petroleum for its 6 per cent stake, officials said.
As OVL proposal awaited CCEA approval, Gulf Petroleum sold its stake to Sinopec of China for $74 million.
Increasing the existing delegated powers of the OVL Board to $75 million or Rs 300 crore, whichever is less, as against the existing limit of Rs 200 crore or 50 million dollars, will help OVL take quick decisions without being caught in bureaucratic hurdles.
"In view of the need for acquiring more oil and gas assets for equity oil and the rise in prices of assets in keeping with oil prices, it has now been felt that there is a strong case for increased delegation of powers to the Board of OVL," they said.
This would also be in line with the changes in dollar vs rupee position since 1999 and make for a faster response time by OVL Board for small and medium sized project.
OVL has stakes in oil and gas properties in Vietnam, Sudan, Russia, Myanmar, Libya, Iran, Iraq, Syria, Australia, Egypt, Qatar and Ivory Coast and is pursuing opportunities in Angola and Ecuador among other countries.