(Bloomberg)
India’s plan to push its top oil producer to fund a takeover of a state refining company may threaten some near-term investments including a plan to revive a long-delayed development project aimed at cutting the nation’s energy imports, according to company officials with knowledge of its finances.
Oil & Natural Gas Corp.’s capital expenditure plans, including a $4.5 billion investment in its oil and gas blocks during the year starting in April 1, would be imperiled by the government’s proposal, said the officials, who asked not to be named because the information isn’t public.
The administration of Prime Minister Narendra Modi is seeking to push ONGC to purchase the government’s stake in either Hindustan Petroleum Corp., worth $4 billion, or Bharat Petroleum Corp., at $7.7 billion, people with knowledge of the plan said. India is planning to create a state-owned oil giant that could compare with international companies and withstand volatility in oil prices. ONGC hasn’t been approached by the government yet, the company officials said.
