(The) key challenge will be integration issues, especially on the human resources side,” said K Ravichandran, group head, corporate sector ratings, at ICRA Ltd.and faster decision making,” said D K Sarraf, chairman of ONGC said.N), Royal Dutch Shell Plc (RDSa.Multiple majors?”India has capacity to create not only one, we may create two, three more companies,” Oil Minister Dharmendra Pradhan told television channel CNBC-TV18.57 billion.The combined market cap of Indias key oil and gas companies — Oil and Natural Gas Corp, Oil India Ltd (OILI.New Delhi is struggling to raise local oil production and imports about 80 percent of its oil.”We propose to create an integrated public sector oil major which will be able to match the performance of international and domestic private sector oil and gas companies,” Jaitley said in his budget speech.India has about a dozen state-run oil and gas companies – including China Essential Oil Bottle Manufacturers Indian Oil Corp (IOC.MM) with a market cap of around $70 billion or the UKs BP Plc (BP.He said the government had announced the policy but it would be up to companies to determine the details of any mergers.”
A merged entity can give the benefit of a sheer size of resources which is so far not available to any of the oil and gas companies individually,” said M K Surana, chairman of HPCL. (XOM.While this is less than the top oil companies such as Exxon Mobil Corp.NS), IOC, HPCL, and Bharat Petroleum Corporation Ltd (BPCL.L) which has a market cap of $115.”I think the motivation is right but the government has to be very careful in going ahead with the merger as that can take a lot of time in integrating cultures of various companies and the market conditions could also change,” said Anish De, partner and head of oil and gas at KPMG in India. Prime Minister Narendra Modi in 2015 set a goal of cutting that to 67 percent by 2020.New Delhi/Mumbai: India plans to create a giant oil company by combining state-owned firms, finance minister Arun Jaitley said on Wednesday, as the worlds third largest oil consumer looks to better compete with global majors in acquiring foreign assets.L) or Chevron (CVX.NS) — is around $106 billion. “It will not be wise to put all eggs in one basket”….Combining them “will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for shareholders,” Jaitley said.NS).It was not clear if Jaitley was talking about combining all state-run oil companies or just some of them.Bigger negotiation powerOil industry executives welcomed the plan.N), it still gives India a formidable standing among companies such as Russias Rosneft (ROSN.India is replacing China as the driver of global oil demand growth and the International Energy Agency expects it to account for a quarter of global energy use by 2040. But alone they do not have the financial power to rival global oil majors in bids for overseas oil assets
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