ONGC plans to invest $800 mn in Imperial Energy

August 31st, 2008 - 3:18 pm ICT by IANS  

Kolkata, Aug 31 (IANS) The Oil and Natural Gas Corp (ONGC) plans to invest around $800 million in Imperial Energy Plc if and when ONGC Videsh takes over the foreign company.”We will have to shell out about $2.8 billion for acquiring Imperial Energy. It is, however, a small sum compared to our resource base. Following acquisition - if it materializes - ONGC will invest another $800 million since it is a new virgin asset and its reserves base is large,” ONGC chairman and managing director R.S. Sharma said here Saturday.

Over and above this acquisition, ONGC Videsh will make an investment of Rs.480 billion in the 11th Five Year plan period, he said.

On the domestic front, ONGC is close to getting five blocks, including three in West Bengal, under the new exploration licensing policy (NELP)-7 round of bidding.

By the end of September, the product sharing contracts are scheduled to be signed. After that exploration will commence in January.

ONGC also plans to invest about Rs.500 crore in alternate energy options like wind energy and solar power. It is now looking at setting up a large wind power plant at Karnataka, beyond 50 mw as was originally planned.

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