Public sector oil major Indian Oil is setting up a wholly owned subsidiary "IndianOil Technologies Ltd" to market its technologies and intellectual property rights abroad, especially in the third world countries.

The energy major has drawn up a comprehensive plan, like its more evolved foreign counterparts such as Shell, Chevron, etc to leverage its knowledge-driven value chain.

The new company has been registered, the sources said.

DK Tuli, currently deputy general manager at IOC's research and development centre at Faridabad near Delhi, has been appointed as chief executive office designate, they added.

He will formally takeover later this week. IOC has also identified a new team for promoting and finding buyers for its own technologies abroad. They will compete with the likes of Chevron and Shell, but will have distinct cost advantages.

IOC officials confirmed that a new company has been set up but declined to provide details. "The R&D infrastructure will be offered as technology solutions to developing countries," they said.

Company sources said that though IOC will make a minimum seed investment in the company, it will pump in more money depending on the success of the concept. "We cannot make an assumption about the size of the business as yet.

We also cannot give indications about prospective clients and their business plans. But we are in talks with several companies in the third world countries who are looking for cheap but quality technology for processes and transportation," they said.

IOC's R&D centre in Faridabad has developed a basket of technologies for in-house use. It has also developed its own process technologies for grease and lubricants, and for enhancing production efficiencies and output in the entire value chain of production of gas and hydrocarbon oils.

The corporation had a tie-up with Mobil for grease and lube technologies until 1972, after which the United States oil major pulled out. Thereafter, IOC developed its own lubricant technologies and developed its own product and brands for sale in the domestic market.

"We have it all with us now -- from basic refining process technologies to pipeline transport systems, etc. We also developed the Inmax technology which was successfully implemented in the pilot plant of the Guwahati refinery.

We also have a patented technology which enhances production of liquefied petroleum gas by 40 per cent from the heavy ends. The process gives high mid-level distillates from low value bottom of the barrel," the sources said.

IOC is likely to announce a whole list of new technologies it has developed and successfully implemented shortly. These technologies will form its basket for the third world countries, they added.