IFFCO enters oil sector,buys 10 pc in Petrogas

Fertiliser cooperative IFFCO on Wednesday marked its entry into the oil and gas exploration sector by acquiring 10 per cent stake in Canadian firm Americas Petrogas Inc for an undisclosed sum. The worlds largest fertiliser cooperative has also picked up 20 per cent stake in GrowMax,a subsidiary of Americas Petrogas with a large potash project in Peru,IFFCOs managing director U S Awasthi said here.

Americas Petrogas owns 11 virgin blocks,measuring 1.5 million acres,in Neuquen basin of central Argentina and has started trial production in four wells. The production is likely to reach 5,000 barrels per day BPD by December.

We have been considering to enter into the oil and gas sector for the last five years and found Americas Petrogas to be the best partner among three others, Awasthi said,adding,however,that IFFCO does not have any plan to participate in the next round of the New Exploration and Licencing Policy. India is not the market for our oil and gas exploration, he said. IFFCO and Americas Petrogas would consider putting up an urea plant in Argentina using the gas from the field with an investment of 1 billion. However,that will depend on the quantity of the gas available.