The grand plan to merge state oil companies will be executed in a time-bound manner but the outcome may not be one giant company that absorbs all firms. Each new entity will straddle the entire value chain — from exploration & production to refining and marketing, oil minister Dharmendra Pradhan said. In an interview with ET, he said the government would leave it to the companies to pick their match instead of micro-managing the commercial aspects of the deal. Edited ..
What is the idea behind proposing a merger of state oil companies?
Their bargaining and risk-taking capacity will increase. The industry is changing very fast. Merger and acquisition is the buzzword. Look at all oil majors, they are diversifying, synergising and integrating themselves.
RSo you expect Indian companies to get into the league of BP and Shell?
Will the merger result in one giant company?
It will not be one company. It will not be wise to put all eggs in one basket. There will be multiple companies. But all these will be integrated (with E&P, refinery and marketing in each company). The government will not micro manage (the merger). Its role is to create policy, to facilitate that Read More…
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