Oil India (OIL) has received its board’s approval to acquire 5% stake in Indian Oil Corporation (IOC) from the government at a discount to the market price. Meanwhile, the board of Oil and Natural Gas Corporation (ONGC), which will also buy an equal number of shares in IOC, is yet to meet on the issue.
The government had offered a 10 per cent shareholding in IOC to ONGC and OIL at a discount of about 10% to the current trading price.
Oil India, a Navratna Company, is Asia's oldest and biggest pioneer oil exploration and Production Company. Oil India has over 1 lakh sq km of PEL/ML areas for its exploration and production activities, most of it in the Indian North East, which accounts for its entire crude oil production and majority of gas production. Rajasthan is the other producing area of the company, contributing 10 per cent of its total gas production.
