Indian Oil Corporation plans to enter Indonesia, South Africa and Nigeria through floating marketing subsidiaries.
N G Kannan, marketing director, IOC, told Business Standard: "Upcoming countries such as Indonesia, south Africa and Nigeria are at the top of our priority list. It will take some more months to complete the procedure." He added that IOC would begin operations only in developing countries.
Industry sources said IOC would shell out nearly $500 million for launching marketing operations in these countries.
IOC has subsidiaries in Sri Lanka and Mauritius. Lanka Indian Oil Company is now under the subsidy burden of $73 million and the Lankan government is looking for an option to pay it back. LIOC has 30 per cent marketshare. Indian Oil (Mauritius) Ltd, whose market share has been on the rise, is in an expansion mode.
"The company is likely to buy equity in some refineries in Indonesia, Nigeria and South Africa. Along with that, IOC may join with the local players in exploration and production sector there to source crude," industry analysts said.
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