Quippo Oil & Gas Infrastructure Ltd (QOGIL), promoted by Srei Infrastructure, aims to start its oil and gas exploration at Cambay Basin in Gujarat during the current fiscal.

QOGIL was awarded an oil block (NELP VII Round) for exploration and production in Cambay Basin about two years ago. The company currently operates four oil rigs and one barge either directly or through its subsidiaries and joint ventures, according to Mr Sunil Kanoria, Vice-Chairman, Srei Infrastructure Finance Ltd.

“We are awaiting the final nod from the Gujarat Government, after which we hope to start work at the Cambay Basin,” Mr Kanoria said while talking to newspersons on the sidelines of a press conference to announce the company's performance during the year here on Thursday. The oil exploration project would entail a total investment of about $15 million.

QOGIL holds about 40 per cent stake in the project, while the rest is held by domestic and foreign partners.

Infrastructure Fund

Srei Infrastructure Finance plans to raise $500 million-1 billion from foreign investors for a dedicated fund, which would invest in Indian infrastructure projects. “We have already put in place a dedicated team for this fund and we will conduct road shows by June-July this year in order to attract overseas investors,” said Mr Hemant Kanoria, Chairman and Managing Director, Srei.

The road shows would be conducted primarily in the US, Europe and West Asia, he said.

This apart, the company also plans to raise funds through external commercial borrowings. “We aim to disburse close to Rs 25,000 crore under project and equipment financing during the current year. We will look at raising about 10-15 per cent of this amount by way of ECBs,” he said.

Srei also plans to augment its footprint in Russia by investing about Rs 40 crore to start a leasing construction equipment business.

Q4 Results

Dragged down by higher provisioning Srei Infrastructure posted 69 per cent drop in net profit at Rs14 crore for the quarter ended March 31, 2011, against Rs 46 crore during the corresponding period last year.

The company made a provision of Rs 22 crore for standard assets, in accordance with the new RBI guidelines. It has also made a provision of Rs 19 crore for bad and doubtful debts during the last quarter. The company's disbursals increased by 87 per cent to Rs 4,586 crore during the quarter under review.

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