India's OVL May Face Problem in Acquiring US Shale Assets

Indian state owned firm ONGC Videsh Ltd (OVL) may face problems in acquiring US shale gas assets in the backdrop of the explorer being present in sanctions-hit countries, reports Indian newspaper Mint.

“We are not very clear whether we can go to the US with our presence in the sanction-hit countries. We have had discussions with the US side. They said they are watching,” S.P. Garg, officiating managing director (MD) at OVL and the firm’s director, finance, told reporters on Saturday.

This comes in the backdrop of sanctions imposed by the US and the European Union (EU) on Russia, a country in which India’s biggest oil and gas explorer owns stakes in significant hydrocarbon assets, reports Mint.

“One way is to take a small exposure in an asset there and test the waters. Shale is a focus area of play for us and shale is present in the US,” Mint quotes Garg as saying.

Indian oil and gas companies such as GAIL (India), Oil India and Indian Oil Corp (IOC) have acquired stakes in US shale gas, while OVL is yet to register its presence.

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