India plans to finalize a deal to acquire 90 percent participating interest in oil exploratory block in Gabon (West Africa) with an initial investment of $12.5 million.

Oil India (OIL) which accounts for over ten percent of domestic oil and gas production, will be the operator of the block in Gabon with 45 percent stake. The remaining ten percent stake will be with the Gabon government

OIL has also earmarked Rs.18 billion for the 2006-07 fiscal as against Rs.12 billion in the 2005-06. The funds will be utilised as follows:

• On stepping up exploration activities particularly in the northeast region.
• Setting up a product pipeline from Numaligarh Refinery to Siliguri with an investment of Rs.4.6 billion
• Increasing stake in the Numaligarh Refinery from 12.35 percent currently to 26 percent in the first stage.

OIL plans are to eventually acquire 51 percent stake in the Numaligarh Refinery in Assam.