Business Daily from THE HINDU group of publications
Saturday, Jul 08, 2006
Business Daily from THE HINDU group of publications Saturday, Jul 08, 2006 |
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Corporate
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Overseas Investments
Our Bureau
New Delhi , July 7 Oil and Natural Gas Corporation (ONGC) is considering picking up stake in Russia's OAO Rosneft. The Petroleum Secretary, Mr M.S. Srinivasan, told newspersons here on Friday that the company is examining the prospect of investing $3 billion to take up to 5 per cent equity in the Russian state oil firm OAO Rosneft, which is making an initial public offering (IPO). Without disclosing details, the Secretary said, "We are in discussions." According to sources, the investment is up to $3 billion through ONGC Videsh Ltd (OVL), the overseas arm of ONGC in Rosneft. It would be equivalent to about 4.52 per cent stake in the Russian company. OVL is in talks for participation in the $11.6-billion IPO. The IPO values Rosneft at between $60 and $80 billion. OVL is also keen on acquiring stake in Sakhalin-3, Vankor or Timano-Pechora oil fields. The mandate of OVL has been to hunt for oil and gas assets abroad to meet energy security of the country. The overseas arm of ONGC has been eyeing a stake in the Russian oil and gas major for some time now and its Managing Director Mr R.S. Butola had said the company would decide on whether to pick stake in Rosneft by July 15. Rosneft's IPO is currently open for Russian investors. The offer will open for overseas investors on July 11. Buying stake in Rosneft would entail a heavy investment and the company would require its board approval as well as Cabinet approval on this, he had said.
More Stories on : Overseas Investments | Petroleum | Oil & Natural Gas Corporation Ltd
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