Mittal to transfer 50% of Kazakh oil field stake to OVL

Steel czar Lakshmi N Mittal has offered to sell half of his stake in a Kazakhstan oil field to state-run ONGC Videsh in line with its previous commitment, a statement from his holding company said today. "Mittal has offered to transfer half of its stake (in Caspian Investments Resources) to OVL in line with its previous commitment to OVL," Mittal Investment Managing Director Sarl Sudhir Maheshwari said in an e-mail statement. Mittal Investment Sarl, the holding company of Mittal family's interest in world's largest steel firm ArcelorMittal, had in April 2007 acquired 25 per cent stake in Caspian Investments Resources from Russian oil firm Lukoil for $980 million. Maheshwari said "Mittal Family is comfortable with its stake in the Kazakh Caspian project" and the transfer had nothing to do with financial constraints or funding requirement for the Satpayev field which it along with OVL had been allocated in January this year. He, however, said the stake transfer to OVL in Caspian was "subject to the pre-emption rights of the partner (Kazakhstan national oil firm KazMunaiGaz) or the Government of Kazakhstan." Kazakhstan law stipulates KazMunaiGaz taking half of ownership of an oil property at every equity stake transfer.

Decision on Mittal's HPCL stake buy tomorrow

The Cabinet Committee on Economic Affairs (CCEA), on Thursday, will consider petroleum ministry proposal to allow steel baron Lakshmi N Mittal to pick up 49 per cent stake in state-run HPCL's Bhatinda refinery, Petroleum Minister Murli Deora said on Wednesday.

The petroleum ministry has granted project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery.

The proposal was required as per the current policy, which restricts foreign direct investment in public-sector petroleum refineries to up to 26 per cent. The current policy also restricts PSU holding to 26 per cent in such projects and makes it mandatory for the balance 48 per cent to be offered to public.

Mittal Investments will acquire 49 per cent stake in the refinery for Rs 3,365 crore through its 100 per cent arm, Mittal Energy Investments Pte Ltd, incorporated in Singapore.

(Source: Economic Times)