India’s Oil Corp Ready to Pay $2Bln for 15% Stake in Yuganskneft

Published: 9 January 2005 y., Sunday
A subsidiary company of India’s Oil & Natural Gas Corporation (ONGC Videsh) would like to buy a 15 percent stake in Yuganskneftegaz, the former crown jewel of Yukos Oil Company. The Indian company is ready to pay up to $2 billion for the stake, the Indian Business Standard newspaper reported on Friday, January 7. ONGC Videsh is a 100 percent subsidiary of Indian Oil & Natural Gas Corporation (ONGC), which strives to increase its presence on the international markets. ONGC Videsh is already working on a joint oil project with state-owned Rosneft Oil Company which is the new owner of Yuganskneftegaz. In addition to projects in Russia the Indian company works in Sudan and plans to extract diamonds in Equador. The representatives of ONGC Videsh already submitted their proposal to buy a stake in Yuganskneftegaz to the government of India. As Business Standard reported, the Indian Oil and Natural Gas Ministry discussed this question on Tuesday, January 4, but came to the conclusion that the company is not ready yet for such a deal. “We are worried that a lot of legal problems may arise,” said a representative of the Indian authorities. Meanwhile the management on ONGC Videsh wants to accelerate the deal because it is wary of possible competition from Chinese oil companies.
Šaltinis: MosNews
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