The Hindu Business Line : ONGC Videsh to negotiate with Rosneft on acquiring Yukos assets

THE Petroleum Minister, Mr Mani Shankar Aiyar, today said that ONGC Videsh Ltd (OVL) would negotiate with Russian firm Rosneft the terms and conditions for buying out assets of Russia's embattled oil giant Yukos.

The Empowered Group of Secretaries met last week to discuss the issue and asked OVL to de-link the equity and debt component relating to the buyout of some of Yukos' assets.

OVL has been asked to negotiate with Russia's State-owned Rosneft keeping in mind the mandate given by the panel. The Minister said, "We want Yukos' stake...the question is on what conditions."

Speaking at the sidelines of a conference on oil conservation here, he said: "It is a golden opportunity for Indian oil companies to participate in Russia's oil industry. India is extremely cautious on the issue in the light of legal complications."

Earlier this week, the ONGC Chairman, Mr Subir Raha, said the company has received Government's approval to negotiate for a stake in Yugansk where it is reportedly seeking to acquire a 15 per cent stake for $ 2 billion. ONGC has an agreement with Rosneft and it may farm into one of the oil fields of Yugansk.

Rosneft said in late December that it had taken control of Yugansk by buying little-known shell company Baikal Finance Group, which bought a 76.6 per cent stake in Yugansk for $ 9.3 billion at a Federal Property Agency auction on December 19.

However, Russian oil giant Yukos has threatened to sue ONGC if it acquires a stake in its main unit Yugansk.

"Any bid from ONGC would ensure that the Indian company faces the same legal action as other beneficiaries of the Yugansk sale," the Yukos spokesman, Mr Mike Lake, had said.

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