ONGC Videsh (OVL) — the foreign investment arm of ONGC — is in talks to take over a mid-sized listed Canadian oil company having hydrocarbon blocks including oil sand assets. OVL is negotiating to pick up 100% equity stake in the firm for an undisclosed sum.
The acquisition would put OVL in a strategic position in the North American energy space. Code-named as “Project Crystal”, the target company is listed in TSX Venture Exchange in Canada and Stockholm Stock Exchange, Sweden. OVL, which is yet to begin due diligence, is tight-lipped about the company or the valuation.
The acquisition, if it goes through, will give OVL a foothold in oil sands, which gained currency following the spike in global oil prices. Canada is known to have high deposits of oil sands which are now being explored as a viable source of hydrocarbons. With oil prices ruling at over $125 a barrel, several non-conventional hydrocarbon sources like gas hydrates in India are being researched.
Read more in The Economic Times article.
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