BG Group intends to double its investments in India to $1 billion over the next few years and is expected to invest another $278 million in the Panna-Mukta-Tapti fields, where it holds 30 per cent stake.
BG Group chief executive Frank Chapman said that the consortium comprising BG, Reliance and Oil and Natural Gas Corp intend to invest around $750 million in the fields in Gujarat. A part of the fund would be allocated for the expansion of Tapti fields.
Chapman said the group wanted to expand its geographical presence in India and wanted to enter the power generation business. "The new bill opens up investment opportunities," he said.
BG India would be looking at some cities in Gujarat for setting up city gas networks and was also evaluating the prospects of entering Chennai, Bangalore and Hyderabad for similar projects.
The BG Group has identified India and Brazil as the key markets and Chapman said that some of the best assets in the group's portfolios were in India.
Chapman said that the controversy on pricing of gas from Tapti would be amicably resolved between Gail (India) Ltd and the consortium partners. He advocated a level-playing field between private players, foreign companies, which enter India and the public sector companies. "Public sector companies should not get preferential treatment," he said.
BG, which had bid for two blocks in the fourth round of New Exploration Licensing Policy would participate actively in NELP 5 when the government is expected to call for bids in December.
"We put in bids for two blocks in what was a fair and competitive process. We will wait for the data packs before deciding on how many blocks we want to bid for," said Chapman who is in India to meet government functionaries of the new regime.
The BG Group CEO met Petroleum Minister Mani Shankar Aiyar on Tuesday and also offered assistance in building sound regulatory practices in India.
"We have long been advocates of sound and transparent regulatory set up. The consultations on the regulatory bill have started and we are told that it is expected to be implemented by the first half of the next year after receiving parliamentary approval," Chapman said.
