NEW DELHI, March 7 Indian Oil Corp said
on Friday it would buy a 10 percent stake in Malaysian oil firm
Petronas's Canadian shale assets in northeastern
The deal also gives India's biggest refiner a 10 percent
interest in the Malaysian company's proposed Pacific NorthWest
liquefied natural gas facility on Canada's West Coast.
IOC did not disclose financial details of the deal, but the
Indian cabinet approved the purchase of the stake for C$1
billion in February, a government source told Reuters at the
Petronas bought Canada's Progress Energy Resources Corp in
2012 in a C$5.2 billion ($4.74 billion) deal that included the
shale gas properties.
Indian companies, like their Asian peers, have been scouting
for oil and gas assets abroad to meet rising domestic demand.
India's gas demand will rise to 466 million cubic metres per
day (mcmd) in 2016/17 ending March 31 from 286 mcmd in
2012/2013, according to government estimates, while its supply
will be only half that amount.
IOC said it would lift 1.2 million tonnes of the
super-cooled gas a year from the facility for a minimum period
of 20 years to partly meet the requirement of its planned 5
million tonne a year Ennore LNG terminal in Southern India.
The LNG plant is likely to be ready in 2016/17, with exports
starting in late 2018, IOC said.
($1 = 1.0965 Canadian dollars)
(Reporting by Aditi Shah; Editing by Anupama Dwivedi)