Mumbai: State-owned Oil and Natural Gas Corporation (ONGC) today said it supports its overseas investment arm's move to seek increase in spending allowance and sees more acquisition opportunities abroad.
ONGC Videsh Ltd (OVL) is currently 100 per cent owned by the exploration giant.
"We support ONGC Videsh move to seek increase in spending allowance, which should be more than USD 1 billion. We see there are lot of opportunities for acquisitions," ONGC Chairman and Managing Director D K Sarraf said this evening.
He was talking to reporters on sidelines of the 107th Annual General Meeting of Indian Merchants Chamber here.
ONGC Videsh had sought greater financial autonomy to decide on investments of up to USD 1 billion (about Rs 6,400 crore) without government nod to speed up acquisition of overseas oil and gas fields.
As a corporate philosophy, we like ONGC Videsh to raise funds through debts, Sarraf said.
OVL has 35 projects in 16 countries - from Brazil to New Zealand - and is looking at certain acquisitions in oil and gas rich regions.
Meanwhile, ONGC said it will spend around Rs 500 crore towards corporate social responsibility (CSR) activities.
"We are spending around Rs 500 crore towards CSR activities. We have already started initiative of government's Swatch Bharat Abhiyan," Sarraf said.
