Indian Oil Gets Board Approval to Buy Stake in Canadian Shale Asset

Indian Oil Corp (IOC), India’s state owned energy giant, has received approval of its board to acquire 10% stake in Malaysian state oil company Petronas’ Canadian shale gas asset, Free Press Journal said citing a report by news agency Cogencis.

“The board approval came a few days ago, now the matter has to be approved by an Empowered Committee of Secretaries after which it will need Cabinet approval,” a government official told the news agency. Date for meeting of the Committee has not been set yet.

As per the news report the deal, once it comes through, could be around $800-900 million.

In July last year, Press Trust of India had reported that state owned IOC was eyeing Petronas' 10% stake in Canadian shale gas assets.

In 2012, Petronas bought Canada’s Progress Energy Resources Corp in a C$5.2 billion deal.

This would be IOC’s first overseas upstream acquisition without a partner.

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