New Delhi: India’s oil and gas majors are selling assets to a US company to boost their foreign exchange reserves and boost the growth of their businesses, according the Financial Times.
The companies are eyeing an investment of Rs 50,000 crore (US$2.5 billion) in a joint venture to develop oil sands in Canada.
India is expected to add more than US$200 billion ($324 billion) to its oil production and export revenue this year, the report said.
Oil sands are considered the best oil-rich reserves in the world, but they have been in a slowdown for years.
In 2015, the Indian government said it was planning to boost the oil-producing sector’s production to 3 million barrels per day by 2020.
“India will be the world’s top crude oil producer by 2020, and by 2020 we will be among the top five countries producing oil,” Energy Minister Piyush Goyal said in a press conference at the start of the Prime Minister’s Summit on Energy, Trade and Resources in New Delhi on Friday.
“We are now planning to raise investment in our oil and natural gas sector,” Goyal added.
The Indian government has been keen to boost its oil-production capacity.
Earlier this year the government set up a joint research and development institute with the US oil company Chevron to develop the world-leading exploration and production technologies in the oil sands.
The institute, which will be called India Exploration and Production Centre, is also expected to bring in $3.6 billion in funding from the US government.
The investment is expected in a project to develop a new oil pipeline to the Canadian border.
The joint venture will focus on developing the oil in the Canadian sector.
The oil-field services company Noble Energy, a joint development company of the US company Chevron and the Indian state-owned oil firm Vedanta, is in the talks to buy up the assets of Noble Energy and the company, the FT report said, quoting a senior official in the Indian Oil Corporation.