Prize Petroleum, the exploration company jointly promoted by Hindustan Petroleum Corporation, ICICI Venture Capital and HDFC Bank, is scouting for private equity participation in its offshore exploration ventures.
"Of the Rs 720 crore (Rs 7.2 billion) authorised capital, the company is raising Rs 500 crore (Rs 5 billion) through an initial public offering to be announced in early 2006. Around Rs 200 crore (Rs 2 billion) will be raised partly through HPCL and partly from private funds, through preferential issues," said M N Prasad, chief executive officer, Prize Petroleum.
He also indicated that the company was interested in acquiring a stake in special purpose vehicles of companies with the asset to circumvent the first right of refusal.
The company is also among 26 bidders for oil blocks identified in Perth, Australia. In addition, Prize is also looking to negotiate on oil fields in Romania, East Africa and the North Sea. Prasad, however, did not divulge any information on the value or location of these assets.
Malaysia and Phillipines are also on the radar. "All these ventures are direct opportunities, and are purely commercial," said Prasad.
At present Prize Petroleum functions as an arm of HPCL, whereby, in case it cannot make bids on its own strength, HPCL makes the bid where Prize takes a stake.
In certain cases, while HPCL offers the financial bank guarantee to obtain loans for the project, Prize takes on the role of managing the assets.
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