News: 'Indian cos to play big role in acquiring global oil assets'

(BL 15/05/2006) Kolkata - PFC Energy, a leading strategic advisory firm in global energy, expects the NELP-VI to be a major draw for the global exploration and production companies.

The consultancy firm is also hopeful of India-based upstream oil and gas companies, led by ONGC and Reliance Industries Ltd, to increasingly play a prominent role in the acquisition of global E&P assets.

Talking to Business Line, the PFC Energy Lead Analyst and specialist on the Indian energy sector, Gauri Jauhar, stated that the oil price boom has resulted in global oil and gas companies enjoying their highest cash reverses in the last 15 years. "These companies are in a position to pay top dollars for E&P assets," she said.

According to her, irrespective of some problems, India is considered to be on the way of opening up its oil and gas sector. Recent developments like passing of the Petroleum and Natural Gas Regulatory Board Bill, 2005 and the move towards creation of required policy framework for sustainable long-term growth of this sector, have attributed positive ratings to the investment outlook of the country. The consultancy firm with client list including major energy companies, financial institutions and governments also rates the countries worldwide on a scale of 27 parameters.

Bright prospects

While not disclosing the ratings for India, Jauhar made it clear that PFC Energy identified substantial business prospects in the country.

On the prospects of Indian companies emerging as major acquirers of global E&P assets, Jauhar commented that the state-owned upstream participants, such as ONGC, OIL, GAIL and others, must balance their international initiatives with their domestic investment obligations as well as the mandates of their Government shareholders.