Business | Oil & Gas
ONGC Mittal to buy stake in Oman CPC
ONGC Mittal Energy Ltd (OMEL), jointly owned by ONGC and steel magnate Lakshmi Mittal, is close to acquiring Oman Oil's seven per cent stake in the Caspian Pipe-line Consortium (CPC) for about $200 million, sour-ces said.
- Reuters
- Published: 00:00 February 23, 2007
Mumbai: ONGC Mittal Energy Ltd (OMEL), jointly owned by ONGC and steel magnate Lakshmi Mittal, is close to acquiring Oman Oil's seven per cent stake in the Caspian Pipe-line Consortium (CPC) for about $200 million, sour-ces said.
"Yes, we are picking up the stake," a source close to the deal said yesterday. "Oman Oil itself offered its stake to us and it should be around $200 million."
ONGC Mittal Energy Chief Executive Naresh Nayyar declined comment.
The source said the deal had to be agreed by other partners in the consortium, known as the CPC.
The grouping is lead by Chevron Corp and has ExxonMobil, BP, Royal Dutch Shell, Lukoil and Rosneft as partners.
Another source involved in the deal said ONGC Mittal Energy last week submitted its interest in buying the stake.
"It is almost certain the asset will be given to ONGC Mittal, but we have yet to receive an official confirmation on this, which is expected in next few days," the second source said.
Consortium
The CPC was commissioned in 2001 and pumps 700,000 barrels of oil per day from Kazakhstan's oil fields to Novorossiisk, Russia's largest Black Sea port, for re-export to world markets.
ONGC and Mittal formed ONGC Mittal Energy Ltd to scout for oil and gas assets across 21 countries, including Kazakhstan, Turkmenistan, Azerbaijan and Indonesia.
Last year, the company won exploration rights for two Nigerian blocks and is eyeing an offshore block in Trinidad & Tobago. It is also expected to buy a 25 per cent stake in Kazakhstan's Satpayev block.
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