Date:28/09/2005 URL: http://www.thehindubusinessline.com/2005/09/28/stories/2005092802410200.htm

Back IOC optimistic of equity oil stake in Nigeria

Pratim Ranjan Bose

Kolkata , Sept. 27

INDIANOIL is hopeful of acquiring equity oil stake in Nigeria. The company had earlier asked for equity oil stake in the State of Edo on condition of further investment in a greenfield oil refinery in the oil-rich State.

The Edo Government had invited IndianOil to set up a grassroots refinery. Nigeria is the sixth largest oil exporter in the world.

According to sources, IndianOil received a communication from Nigeria three weeks ago stating that the proposal for awarding equity oil was awaiting Presidential clearance. "Since then we have been waiting for a formal communication," a senior IndianOil official said.

IOC has already proposed to take up the project on a joint venture basis with Edo State. The State Government had agreed to offer fiscal benefits to the project.