India?s Mercator scouts for oil, gas assets overseas: Report

Indian second-largest private shipping company Mercator Lines (MLL) is planning to foray into oil and gas by buying stakes in South-East Asia and Arabian Gulf blocks. The Economic Times reported Thursday.

Mercator?s oil and gas businesses will be managed by its wholly-owned subsidiary Mercator Oil & Gas (MOG), formerly known as Ivory Oil and Gas. The company may divert up to 20% of its proposed capex for acquiring oil and gas assets this year.

Sources said the company is evaluating the scope of some of the marginal fields in Indonesia, Malaysia and Thailand. When contacted, MLL officials refused to divulge any details about oil and gas foray.

?MOG is planning to invest in the domestic oil and gas sector as well, though its plans are yet to be concretised,? said sources.

For acquiring ships, Mercator Lines (Singapore), another subsidiary based in the island nation, is likely to offload around 40% stake to raise $140 million. The company is planning to float an initial public offering in Singapore within six months.

MLL is planning to buy another second-hand jack-up rig for $200-250 million. Earlier, it had placed an order for a new jack-up rig. In the offshore segment, the group has placed orders for supply boats, platform supply vessels (PSVs) and anchor tugs. (*)