Bharat Petroleum looks for more oil, gas assets already in production
By Promit Mukherjee
MUMBAI, Sept 22 (Reuters) - Indian energy group Bharat Petroleum Corp Ltd is looking at buying more stakes in oil and gas assets that are already producing to speed up investment returns, the managing director of the company's exploration business told Reuters.
The state-run refiner had previously focused mainly on exploration assets overseas, where it has invested just over $1.5 billion.
But the company now also looks at fields that are already producing. In March, it bought a stake in Russian oilfields that are in production via its upstream subsidiary Bharat Petro Resources Ltd.
"That is why we looked at Russia," BPRL's managing director D. Rajkumar told Reuters in the sidelines of a news conference on Wednesday.
"That will ensure we have a balanced portfolio of assets from exploration, development to producing. So with all this, we will be in a self-sustaining place soon."
Pressure on oil companies to get a quick return on their investment has increased because of lower oil prices which have also hit the industry's capital spending plans.
Bharat Petroleum was the first Indian state refiner to venture into the upstream oil business when it bought minority stakes in Brazilian blocks in 2007.
In 2008, Bharat Petroleum invested in a gas block in Mozambique but the production has now been delayed to 2020-21 after liquefied natural gas (LNG) prices slumped. Continuación...