Despite the ongoing diplomatic strain between India and Canada, Indian Oil Corporation Ltd (IOC) is not expected to face operational impacts on its Canadian subsidiary, IndOil Montney Ltd. Sources familiar with the matter have indicated that dividend inflows from IndOil Montney’s stakes in Canadian shale gas assets will continue unaffected.
IOC, through its wholly-owned subsidiary IndOil Montney Ltd, holds a 10% stake in shale gas assets in British Columbia, acquired from Malaysia’s Petronas in 2014 for $1.1 billion. According to one of the sources, “There would not be any impact on the operations. Dividends are coming from the stakes held by IndOil Montney, and that will continue without hindrance.”
This reassurance follows heightened diplomatic tension between India and Canada, with both countries expelling diplomats and India recalling its high commissioner. These moves were in response to Canadian authorities’ allegations connecting Indian government “agents” to the killing of Hardeep Singh Nijjar, an alleged Khalistani separatist leader and Canadian citizen, in June 2023.
As of 9:26 am the shares were trading 2.83% lower at ₹140.88 on NSE
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
