Essar, ONGC, Reliance Industry (RIL) eye retail assets of BP in Asia and Africa

After a consortium of state-run oil firms led by ONGC Videsh, Mukesh Ambani's RIL and Essar group are swooping on the beleagured company's fuel retail networks in a number of African countries. Both the Indian private sector majors, which operate three of the most complex and modern refineries in the country, are believed to have put as much as $500 million on the table for BP's retail networks in Botswana, Tanzania, Namibia, Malawi and probably in Zambia. The companies declined to comment, saying these were "market speculations".

Last week, the OVL-led consortium conveyed to the Vietnam government its willingness to pick up BP's stake in a gas field and accompanying projects in the Southeast Asian nation. The UK major plans to exit this project as part of its plan to sell assets worldwide for raising some $30 billion in the next 18 months to meet liabilities arising from the oil spill.

An African takeover would be what the doctor would prescribe to both Essar and RIL at this juncture. Both have some presence in the continent and supply fuels in bulk from their plants in Gujarat. A readymade retail network would not only reduce the cost of carrying cash but also provide a captive market for their refinery output.