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.

ONGC mulls takeover of US listed oil firm

Oil and Natural Gas Corporation (ONGC) is mulling a takeover of the US-listed oil firm, Transmeridian, that has 211-million-barrel reserves in Kazakhstan.

Transmeridian is listed on the AMEX Stock Exchange and independent valuers put its value at over $1.5 billion.

Transmeridian has been on the radar of ONGC Videsh Ltd (the overseas investment arm of ONGC) for sometime now. The company has done preliminary due diligence and it is expected to take a decision anytime now, industry sources said.

The sources said as per the US law OVL had two options to takeover Transmeridian — make offer directly to company shareholders for purchase of shares or make a merger proposal under which 100 per cent of the company is acquired with board and shareholder approving the OVL’s offer.

(Source: Business Standard)

ONGC likely to offload 34% in Dahej project

The oil and gas major ONGC is likely to offload 34 per cent equity in its special purpose vehicle ONGC Petro-additions (OPaL) formed for the upcoming Rs 13,500-crore petrochemical project at Dahej.

The company has started talks with Japanese majors Mitsui and Mitsubishi, that have expressed an interest in the project.

According to sources, ONGC is keen to have both the Japanese firms as partners in the project.

ONGC currently holds 95 per cent stake in OPaL, with Gujarat State Petroleum Corporation (GSPC) holding the remaining 5 per cent stake.

(Source: Business Standard)

OVL set to pick 33% in Egyptian bloc

ONGC’S foreign arm ONGC Videsh (OVL) is all set to acquire around 33% stake in Shell’s high-prospective block in the Northeast Mediterranean deepwater (Egypt).

The Union Cabinet may approve OVL’s proposed investment of $380 million to pick up the stake in the block which has estimated gas reserves of around 14 trillion cubic feet (tcf). The size is stated to be approximately the same as Reliance’s approved gas find in the KG Basin. The block is expected to start production by 2012.

The block is currently held by Shell (84%) and Petronas of Malaysia (16%.

(Source: ET)

ONGC inks swap deal with Brazil’s Petrobras

Oil and Natural Gas Corp has offered Brazilian oil firm Petroleo Brasileiro SA (Petrobras) a stake in its east coast blocks in exchange for getting a 15 per cent stake in a Brazilian exploration acerage.

ONGC and Petrobras today signed the swapping agreement that "marks an increased presence of ONGC Videsh Ltd (the overseas arm of ONGC) in Brazil and the entry of Petrobras in India," an ONGC press release said here.

(Source: ET)