Oil India aims to double crude output by 2012

NEW DELHI (Reuters) - State-run second explorer Oil India Ltd (OIL) aims to nearly double its crude and gas output by 2012 and further expand its presence in the downstream sector by picking up a stake in a coastal refinery, its head said.

"We are looking for participation in a coastal refinery where we could have a stake but this is subject to due diligence. Synergy wise it will fit in very well as we have a block in east coast, known to be very prospective," M. R. Pasrija told the Reuters Global Energy Summit on Wednesday.

OIL plans to double gas output to 12 million cubic meters a day by 2012 and is looking at marketing compressed natural gas in a tie-up with downstream players in India.

Though Pasrija did not specify in which refinery OIL was eyeing a stake, a senior official of state-run refiner Hindustan Petroleum Corp. Ltd earlier told Reuters HPCL was considering offering a stake to Oil India in its refinery in southern India.

Oil India, which specializes in onshore exploration, has a target to produce 6 million tonne of crude oil by 2012, with 1-1.5 million tonnes from overseas assets. Its current production is 3.2 million tonnes.

EXPANSION

Since it was allowed in December 2005 to buy assets abroad, OIL has acquired stakes in 6 blocks and is keen to buy stakes in oil and gas assets in Central Asia and southern Africa, besides strengthening its presence in areas where it already has assets.

During his recent visit to Libya, Pasrija showed interest in taking up reserve enhancement projects for depleting fields and for a stake in exploration.

"We have also taken up a case where we can get exploration blocks in Libya, which has good prospectivity, on negotiation basis like they have given to Shell. Their response was positive," he said.  Continued...