Published on : Aug 11, 2014
Mercator Petroleum Limited (MPL) is planning on undertaking several measures to strengthen its oil and gas subsidiary. The company listing it on a foreign stock exchange after it has merged an existing offshore arm with it.
Mercator Limited is aiming to gradually shift its focus from shipping-to-coal to oil and gas sector. MPL which is controlled by Mercator’s oil and gas activities around the world amounts for fifty-one percent hold by Mercator Limited. The other half is held by a Singapore-based subsidiary called Mercator Energy Pte Limited.
MEPL is considered a step-down subsidiary overseas of the parent company. It is involved in carrying on business sector of oil and gas and other allied services. According to H. K. Mittal, the executive chairman, as shipping markets especially bulk carrier markets are still suffering from poor freight rates, their focus is shifting towards the oil and gas sector.
They are expanding in the offshore sector which includes investments made already in the offshore sector; the company has planned to invest around USD 1 billion in oil and gas over the next few years.
In addition, a senior official from the company stated that they are in the process of moving their entire oil and gas operations out of the country to Singapore. The head of the petroleum sector will also shift to the Singapore plant.
Currently, Mercator is considering drilling in two blocks in Cambay Basin in Gujarat. The company has signed production sharing deals with governments for exploration of petroleum in two blocks which are under the new exploration policy.