Imperial Energy, the UK based oil and gas company in Leeds, has attracted attention of global oil companies ever since its announcement of making the biggest exploration strike. The company, a member of FTSE 250, in its statement informed that it has received an offer for its business. Immediately after the announcement, company’s shares registered a jump of 23 per cent and were priced at 947p in the early trading.
It is reported that India’s state-controlled Oil and Natural Gas Corporation of India (ONGC) is holding negotiations over the takeover bid with the board of Imperial Energy, having its head office in London.
India is particularly interested in having a stake in Imperial Energy because of its recoverable reserves which are estimated to be at 900,000 barrels, and its growing oil and gas portfolio in West Siberia. Imperial’s current oil stream is 10,000 barrels per day.
The potential value of the company and its reserve base enhanced further when it made the biggest exploration strike last month. The rapid industrialisation in China and India has caused surge in domestic demand and forced the respective governments to ask their state-owned oil and gas companies to tap newer energy sources across the globe.
The Times of India has reported that ONGC was holding talks with Imperial for an equity stake; but the company has not confirmed the news so far. Gazprombank, the Russian gas exporter Gazprom’s banking-arm, had approached Imperial Energy last year to buy 25 per cent of its stock at a discount price but the talks did not succeed.