Acquisition of Oil Assets Worldwide
9 Pages Posted: 11 Jan 2012
Date Written: January 11, 2012
Acquiring assets on a worldwide scale is strategically important for any country’s fruitful implementation of plans for manifold growth and development. It is essential for energy security and sufficiency. With the widespread scarcity of oil sources in the non-OPEC countries acquisition of oil assets has become the need of the hour.
Internationally, it leads to various strategic partnerships and acquisitions which add strength to our efforts at getting equity in vast hydrocarbons treasure in a cost effective manner. Developing countries like ours is heavily dependent on imports so acquisitions reduce the burden of importing in huge quantities by enabling indigenous production. With the oil prices fluctuating unpredictably and the available sources being exhausted slowly, it is these strategic alliances that help in bringing out some sort of stability and security to the world energy market.
Acquisition in oil and gas sector is the process through which one company takes over the controlling interest of another company or country. Acquisition includes obtaining supplies or services by contract or purchase order with appropriated or non-appropriated funds, for the use of Federal agencies through purchase or lease.
Growing demand-supply mismatch provides ample opportunities for investment, exploration and production of crude oil, gas and CBM. The government is actively promoting the creation of strategic oil and gas reserves through partnerships with the private sector. The widespread awareness about the available unexplored oil and natural gas resources in locations which were earlier less ventured into has led to a healthy war among the energy deficit nations for acquisition of these assets.
The research will cover all issues which will drive and or hinder the acquisition of oil assets worldwide.
Keywords: oil assets, ONGC, CBM, mergers & acquisition, crude oil prices
JEL Classification: D70, E20, E44, F00, F20, F40, G30
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