The Hindu Business Line : Mittal may transfer Kazakh stake to OMEL

New Delhi, July 25 ONGC Videsh Ltd (OVL), the overseas arm of ONGC, may get its first oil and gas asset in Kazakhstan. International steel baron Mr Lakshmi N. Mittal on Wednesday said that plans were in progress to transfer the Kazakhstan oil assets that he acquired from Russia’s Lukoil to his joint venture firm with OVL. In April, Mittal group had acquired Russian oil firm Lukoil’s 50 per cent stake in Caspian Investments Resources for $980 million.

The acquisition, which was initially proposed to be done by the joint venture company, ONGC Mittal Energy Ltd (OMEL), was acquired by Mittal alone from Lukoil. As per reports, the Mittal group had acquired the assets on its own as there was some opposition by the Kazakhstan Government on OMEL acquiring the stake. “We are in discussion and I think it will be transferred to OMEL,” Mr Mittal told newspersons here. He added, “There is a commitment that this joint venture (OMEL) has the first right.”

hydrocarbon opportunities

Mittal Investment and Lukoil now hold 50 per cent stake each in Caspian Investment Resources Ltd. Lukoil had used Caspian Investments Resources Ltd to buy Kazakh oil producer Nelson Resources Ltd for $2 billion in 2005. Kazakhstan is one of the 10 countries the Mittal group had identified for exclusive pursuit of hydrocarbon opportunities in joint venture with ONGC.

Mittal group and ONGC had, in July 2005, agreed to participate on an exclusive basis through the joint venture company OMEL in Angola, Azerbaijan, Congo Brazzaville, Democratic Republic of Congo, Indonesia, Kazakhstan, Romania, Trinidad and Tobago, Turkmenistan and Uzbekistan for acquiring oil and gas assets.

Mr Mittal was speaking after handing over the first instalment of the Rs 3,506-crore investment he is making in picking up a 49 per cent stake in Hindustan Petroleum Corporation Ltd’s (HPCL) Rs 18,919-crore Bhatinda refinery in Punjab. He presented a cheque of Rs 500 crore to the HPCL Chairman and Managing Director, Mr Arun Balakrishnan, in the presence of the Petroleum Minister, Mr Murli Deora.

The amount is equivalent to the amount HPCL has, till date, spent on the project.

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