The state owned oil producer, Oil and Natural Gas Commission (ONGC) would go for acquisition of UK-listed Imperial Energy.

The Chairman and managing director of ONGC, R S Sharma said that there in no change in its earlier plans of USD 2.59 billion to bid for imperial. The company maintains a good balance sheet, and it has enough financial resources to fund the acquisition.
 
It is to be noted that crude oil rates are declining in the international market and some quarters expected scrap of bid by state owned oil giant.

Crude oil rates were around USD 115-120 a barrel in August when ONGC applied for the bid and now oil prices are below USD 70 a barrel.

The recent statement of company’s managing director cleared the clouds from the matter. He said that the liquidity is no problem for the company and there is no effect of global financial crisis on the planes of the company.

He termed the current financial crisis as an opportunity for the company and it is looking for 6-10 opportunities of overseas acquisitions. ONGC has arranged USD 1 billion bridge loan for the acquisition besides maintains sufficient funds.