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

Question

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?

The Arbiter of common sense · Accepted Answer

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.

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

1 Answer