Oil India is looking for more foreign assets and is in talks to restart drilling in Libya, a source familiar with the matter said.

The source spoke on condition of anonymity because the person was not authorized to speak to media.

Oil India exited Libya in 2011 due to political instability.

Shares of the state-run explorer jumped as much as 12.4% to a record high of 516.40 rupees on Tuesday.

The source said the company was in talks over two blocks in Libya, without giving a timeline for a possible deal.

Meanwhile, the political situation in Mozambique is stabilising and there are hopes to set up and start producing liquefied natural gas (LNG) in the next two or three years, the source said.

Companies including Oil India and Oil and Natural Gas Corp are hoping that gas output from the Mozambique project will start from 2026-27.

The project, operated by TotalEnergies, was initially set to deliver its first cargo in 2024 but has been under force majeure due to security reasons.

The source said Oil India was continuously looking for new assets, including foreign prospects.

Higher oil prices have made some areas viable that were not previously, although demand for drilling services is driving up costs, the source said.

The company will soon start drilling at India's KG Basin and Andaman Islands as seismic activities have been completed, the source added.

(Reporting by Sethuraman NR; Editing by Nidhi Verma and Mark Potter)