India to shop for foreign oil, gas assets overseas within limited avenues within: Deloitte

Mumbai:  India's 11th position on the global M&A list and 1.52-per cent share of the total value of deals will not deter Indian companies to become major acquirers of foreign oil and gas assets.

In a new report, global consulting firm Deloitte says limited avenues for domestic M&A in the hydrocarbons sector and the need to deevelop a global footprint for achieving energy security will pick up pace as national oil companies (NOCs) in India have been actively participating in acquisition of overseas assets, ijcluding those being offered by international oil companies (IOCs) as part of their portfolio rationalisation.  

''NOCs have historically been impervious to global trends and have acquired assets in every market situation," says Kalpana Jain of Deloitte Touche Tohmatsu India Private Limited.

Jain adds, "Their philosophy of long term holdings for energy security is indicative of a different investment strategy and is likely to drive their future plans for acquisition.''

With increasing ascendance of Indian oil companies, their requirement for larger pool of capital and technical resources combined with decreasing availability of new attractive basins for IOCs, the possibility of NOCs and IOCs jointly pursuing businesses is an increasing possibility.

ONGC has already announced its intention to work with IOCs.