Indian Oil Corporation may buy minority stake in Canada Shale Gas & LNG Project for $1 billion.

State-run Indian Oil Corporation (IOC), country's biggest refiner and fuel retailer, plans to acquire a minority stake in a Canadian shale gas and liquefied natural gas project for about $1 billion. The Cabinet is expected to approve it this month, senior government and industry officials said. The company is in advanced talks of negotiations for the assets that include a 10% stake in Progress Energy Resources Corporation, officials with direct knowledge of the matter said.

'The preliminary due diligence exercise is almost over. The proposal has been discussed with top government officials before seeking approval of the Cabinet Committee on Economic Affairs (CCEA) by the end of February,' a senior government official said requesting anonymity. Chairman RS Butola said the company was looking for 'several opportunities overseas including Canada,' but declined to comment on specific deal until an agreement was signed.

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