ONGC Videsh may pick up stake in Russian oil company
Friday, 07 July 2006, 19:30 IST
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NEW DELHI: State-owned ONGC Videsh is studying strategic investment to acquire up to five percent stake in Russia's state-owned oil company Rosneft through its initial public offering (IPO), a top official said here Friday. "We are in discussions to invest $3 billion through ONGC Videsh in Rosneft. It would be for about 4.5-5 percent stake in the company," Petroleum Secretary M.S. Srinivasan said. Currently holding 20 percent share in Sakhalin-1 block, which has commenced oil and gas production, the overseas arm of Oil and Natural Gas Corporation (ONGC) is keen to buy a slice of Russia's third biggest oil company as part of plans to acquire stake in more exploration blocks. Others in the fray for stakes in the Russian company, which has several oilfields as part of its assets, include British major BP Plc and state-owned exploration major China National Petroleum Company (CNPC). According to sources, Rosneft plans to raise $11.6 billion from the IPO through selling between 13-19 percent of its stock on July 14. The IPO values Rosneft at between $60 billion and $80 billion. A five percent stake would mean a $3-4 billion investment.
Source: IANS
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