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News:

With global oil prices halving, India should aggressively scout for acquisition of oil and gas assets abroad, create strategic reserves and step up domestic exploration, Oil Minister said today.

Source:  ET

SNP Insights:

With slump in global prices, E&P activities have seen a slow down in approach at global arena. Cash rich upstream majors like ONGC can leverage the opportunity by securing the equipment & machinery along with man power at considerable cheaper prices & hence reduce the cost while strengthening future cash flow. Yet considering the longest span of price slump this time, private upstream players might take wait & watch approach as heavy inventory loss has depleted their revenue & in turn dwindled profit margin.  Hence it will be interesting to see, strategic move of key upstream players in due course of time.

Source: SNP Infra Research