GAIL's Singapore unit to become overseas investment arm

Our Corporate Bureau
05 February 2007

New Delhi: GAIL Global, GAIL's Singapore unit is set to become GAIL India's overseas investment arm, similar to ONGC Videsh (OVL), which is the holding company for ONGC's assets abroad.

As GAIL is considering routing all its foreign investments through its Singapore-based wholly-owned subsidiary, it is also likely that all existing overseas assets would be transferred to GAIL Global.

GAIL has equity stakes in three gas retailing companies in Egypt. In Myanmar, it holds 10 per cent stake in both A1 and A3 exploration & production (E&P) blocks. The company also has an equity stake in China Gas and it is a partner in an E&P block in Oman.

Set up in September 2004, GAIL Global has not been on the forefront like ONGC's foreign arm, OVL. The basic purpose of its creation was to save taxes, sources in the company said. The new CMD is determined to transform it into a separate profit centre.

Choubey, the chairman of GAIL Global Singapore since 2005, said his priority would be to improve the bottomline of the company.

He said it was unlikely to increase throughput in the current fiscal (2006-07).