NEW DELHI, June 18 (UPI) -- State-run Indian Oil Corp. Ltd. says it is planning to dilute its stake in an east coast onshore exploration block.
The company won the block under the government's new exploration and licensing policy. IOC said it was also planning to reduce its share in favor of Canada's Geoglobal Resources Inc., which is IOC's partner in the Krishna-Godavari basin.
"We have received a proposal from our partner in the block, Geoglobal Resources Inc., for raising their stake by 15 percent," a company spokesman said.
He said the move was based on a deal between the two companies made before IOC bid in the sixth round of NELP. The Canadian firm holds 10 percent in the block, which is operated by IOC, which currently holds 90 percent.
The deal is subject to government consent.
"We are examining Geoglobal's proposal," said a senior IOC official, adding if Geoglobal meets the government's norms for raising stakes, then the Petroleum and Natural Gas Ministry would be approached.
