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? asked in Politics & GovernmentLaw & Ethics · 9 years ago

How can a loss making Unit in Oil Sector submit a $.5 bn bid for Conoco Oilfeild assets in Canada?

Today's Times news on page 17 caries a heading" ONGC Led group submits $.5 bn for Conoco assets"

While our Netas are trying to curb the supply of Gas cylinders to domestic users on the ground of loss due to subsidy, even after inflated cost of expenditures and paying exorbitant ad-hoc dividends to the Government, if the Petroleum Organisation is is a position to bid of such a magnitude for Overseas Oil Sectors, what does it imply? Can any body throw light on this?

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    The company is losing money on domestic gas supply, not overall. In any event, if they can convince lenders to loan them money based on the projected return on the Canadian assets, their current loss or profit is not necessarily an issue.

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