NEW DELHI: State-run energy giant ONGC may spend as much as $8.8 billion over the next five years to buy oil and gas assets globally to supply India's burgeoning energy needs, a report said Friday.
The planned investment is part of the explorer's plans to increase production from overseas assets six-fold by 2030, ONGC Chairman Sudhir Vasudeva told Dow Jones Newswires in an interview.
The domestic output of Oil & Natural Gas Corp (ONGC) has been depressed by aging oil and gas fields and local production has been slipping for the last five years.
ONGC is also considering a listing of ONGC Videsh, the company's wholly-owned overseas investment unit, to raise funds for expansion and overseas acquisitions.
ONGC Videsh has so far invested about 668 billion rupees to acquire and develop oil and gas assets in over a dozen countries.
In the last few months, ONGC has signed preliminary deals with US energy giant ConocoPhillips, China National Petroleum Corp (CNPC) and Ecopetrol as part of an expansion drive.
India has lagged China in acquiring fuel assets worldwide and ONGC is now eager to collaborate with China in the energy field, Vasudeva added.
"We can't really compete with China. The best thing would be to collaborate with China," Vasudeva told Dow Jones.
ONGC and CNPC are forming teams that will jointly scout for assets to meet the growing energy requirements of the emerging market economies of India and China.
ONGC may acquire overseas assets for $8.8 bn
