IOC, BPCL propose to Acquire GAIL

New Delhi Dec 26: The Government sector Oil Companies may further consolidate themselves as Indian Oil and Bharat Petroleum Corp Ltd (BPCL) have shown Intrest to acquire GAIL India so that they become fully integrated energy companies.However, the GAIL is keen to merge with oil and gas producer ONGC as it would be more appropriate.

Sources said that both the companies have sent the proposals separately to the petroleum ministry and expressed their interest. IOC is the largest oil refiner and fuel marketing company in the country. Currently, Government owns 66.1% stake in OIL, which is worth about Rs 18,000 crore. The Government owns 55% stake in GAIL is currently worth about Rs 46,700 crore.

However, the government officials said that all consolidations and Mergers would be considered only after the merger of ONGC-HPCL is completed.The Government had approved the Sale of 51.1 % stake in HPCL worth over Rs 33,000 crore to ONGC.

Earlier the FM in the 2017 budget speech has said that " Government would propose to create integrated public sector oil majors that will be able to match the performance of international and domestic private sector oil and gas companies".