Mobil International Petroleum Corporation, a group company of the $213 billion ExxonMobil Corporation, is setting up a subsidiary in India to provide consultancy and advisory services to gas, power, petroleum and related sectors.
The company will not undertake any trading or marketing of petroleum products.
The deregulation of the petroleum sector and the privatisation of oil corporations seem to be providing new business opportunities for global oil majors.
The consultancy activities will include providing advice on the Indian market, market research and analysis, quality control and pre-selection activities, marketing and pricing analysis.
The services will be provided primarily to ExxonMobil group companies and their associated companies, and other entities and persons, both in India and outside.
Additionally, consultancy services may be provided to other companies or persons both within and outside the country.
ExxonMobil has proposed to invest $200,000 in the subsidiary over the next five years, while the remaining investment will be brought in depending on the business needs of the subsidiary.
Mobil Pacific Services Inc will subscribe to the 0.004 per cent equity of the company, which will be with Exxon Ventures Holding Inc.
According to sources, the consultancy business is not capital intensive. The proposed subsidiary expects to generate revenues almost immediately after its formation.
In fact, in the first year itself, revenues are expected to be to the tune of $1.65 million, and growing to $1.9 million in 2004, $2 million in 2005 and $2.2 million in 2006.
ExxonMobil Corporation is the world's largest non-governmental, fully-integrated producer of oil and natural gas, operating in 200 countries through subsidiaries and joint ventures.
It owns brands such as Exxon, Mobil and Esso. Its 2002 turnover was at $213 billion. In India, ExxonMobil Company India manufactures and markets speciality chemicals and polymers.
ExxonMobil Lubricants is engaged in importing and marketing of lubricants and other lubricating speciality products in India.
ExxonMobil Gas Inc (liaison office) is engaged in sole liaisoning activities.