Photo by: Bloomberg
KOLKATA (miningweekly.com) - ONGC Videsh Limited (OVL), the overseas arm of Indian oil exploration and production major ONGC Limited, is scouting for oil sands assets in Canada, showing its intent by setting up an office in Calgary.
According to a senior ONGC official, the Indian company was looking for joint venture partners to collaborate in buying oil sands assets in Canada.
OVL was considering a $5-billion investment proposal to acquire a part stake in oil sands assets of Houston-headquartered ConocoPhilips, saying that Canada offered a stable economic and legislative environment suitable for Indian investments, the official said.
OVL’s foray into Canada was part of the plan to expand Indo-Canadian collaborations in the hydrocarbon sector, which would see Indian companies increase investments in that country in return for access to high-end technology.
Talks have been held between the premier of Alberta and the Indian Oil and Natural Gas Minister, with the latter announcing last week that Indian oil and gas companies would be offered the latest shale gas fracking technologies in exchange for greater Indian investment in the Alberta region, the official said.
Following this, Indian companies such as the government-owned and -managed Indian Oil Corporation Limited (IOC) and the private Hiranandani Group were in the process of lining up investments in Canada.
IOC would be sourcing conventional crude oil from Canada and shipping it through the east coast, owing to the shorter distance to India, and was further considering investments in pipeline projects connecting Canada’s east and west coasts.
According to reports in the local media, H-Energy of the Hiranandani Group would be investing $4-billion to set up a liquefied natural gas (LNG) and crude oil terminal in Nova Scotia for which it had completed the acquisition of 600 acres of land.
The crude oil terminal was scheduled for completion in 2018 and the LNG terminal in 2020.