The company may have some edge as Shanghvi holds a 19 percent stake in Suzlon Energy, a leading wind turbine maker
Dilip Shanghvi's Sun Petrochemicals may enter power generation business as the company is looking to diversify its portfolio, Mint reported.
"While exploration and productionÂ areÂ doing fine for us, development or generation of power is another segment we think we can have a significant presence in," a Sun Petrochemicals executive told the paper.
The company's diversification plan may be smooth owing toÂ Sun Petrochemicals', as well as Shanghvi's, network in the field ofÂ exploration and production.
Sun Petrochemicals, founded in 1999,Â is into oil and gas exploration and production activities in India through its affiliate Sun Oil and Natural Gas. The company is also inÂ a partnership with Indian Petrochemicals Corporation, now part of Reliance Industries (RIL), to manufacture acetylene carbon blackÂ used in batteries, semiconductive rubber, and other conductive applications.
The company may also have some edge as Shanghvi holds a 19 percent stake in Suzlon Energy, a leading wind turbine maker. The billionaire businessmanÂ entered the oil and gas segment in March 2015 afterÂ acquiring two oil and gas fields in Gujarat, Baola, and Modhera, from Interlink Petroleum.
In addition,Â Sun Oil and Natural GasÂ hasÂ bought stakes in five hydrocarbon blocks over the past four years.Â In July, the company acquired 70 percent and 30 percent stake from RIL and BP India, respectively, in Gujaratâ€™s Cambay Basin block for an undisclosed amount.
In December 2016,Â it bought a 33.3 percent stake in Hazira oil and gas field from Canadaâ€™s Niko Resources and was in talks to buy the rest from Gujarat State Petroleum Corporation.
"Sun Oil and Natural Gas wants to be the operator in whichever block it is.Â That is the reason the firm has been acquiring a 100 percentÂ stake in all the blocks. It is aware of the multiple approvals a company has to take in case of partnerships and it wants to avoid that situation which leads to delay in work in most cases,"Â another Sun Petrochemicals executive told the paper.
Sun Oil and Natural Gas has also invited prospective buyers to purchase crude oil from the Cambay basin block, that it acquired three months ago.
"Field is under transfer to Sun Petro and production is likely to commence from April. Crude oil production to start with maybe around 1,000 barrels of oil per day (bpd) and peak production maybe 3,000bpd. Sun Petro is operator of field with 100 percent participating interest," Sun Oil and Natural Gas said on its website.