ONGC tying up with Mittal for oil fields<\/p>\n
Agence France-Presse, New Delhi<\/p>\n
Leading Indian oil producer ONGC is planning to team up with LN
\nMittal group, the world's biggest steel producer, to acquire
\noilfields, build refineries and lay pipelines abroad, officials
\nsaid on Saturday.<\/p>\n
The move comes as energy-hungry India, Asia's fourth-largest
\neconomy, aggressively seeks stakes in foreign oil and gas
\nprojects and is moving to strengthen ties with large energy
\nproducers.<\/p>\n
ONGC, or Oil and Natural Gas Corp., was due to sign two
\nagreements with Indian-born tycoon L.N. Mittal's group later on
\nSaturday, officials said.<\/p>\n
One venture with the parent ONGC company will invest in
\nprojects for refining, trading and transporting oil and gas,
\nofficials said.<\/p>\n
The other venture with ONGC's foreign arm, ONGC Videsh, will
\ninvest in acquisition of oil and gas companies and energy fields
\nabroad.<\/p>\n
"We need their strength of global business, resources,
\nexpertise and knowledge for doing business globally," ONGC
\nchairman Subir Raha told reporters.<\/p>\n
"Combined with our strengths of expertise in oil and gas, we
\nsee a lot of synergy," he said.<\/p>\n
India imports 70 percent of its crude oil needs and produces
\nscarcely half the gas it requires. The country's fuel import
\nrequirements are seen growing rapidly as its economy surges.<\/p>\n
ONGC will hold 51 percent stakes in both joint ventures while
\nthe Mittal group will hold the remaining 49 percent.<\/p>\n
No other financial details were available.<\/p>\n
ONGC wants to capitalise on the Mittal group's presence in oil
\nand gas-rich countries in Central Asia and Africa where India is
\npursuing exploration and other activities, officials said.<\/p>\n
"We have businesses in different countries where oil is
\nimportant," Mittal told India's Aaj Tak television network.<\/p>\n
"We're doing business with oil exporting countries and the
\ngovernments there have been saying, 'Please invest in oil when
\nyou do so much in steel'," he said.<\/p>",
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