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ONGC Considers $US500-Mln Stake for Gabon Block
Gabon News 7/13/2006
The Oil and Natural Gas Corp. (ONGC), India's largest oil producer, is considering bidding more than $US500 million for a stake in a block in Gabon and is eyeing oil and gas properties in Columbia, Ecuador, and Vietnam.

"ONGC Videsh Ltd, the overseas arm of ONGC, had identified two blocks in Gabon for bidding, off which one is being considered," Indian Petroleum Secretary M.S. Srinivasan told reporters in New Delhi.

OVL has appointed JP Morgan as the investment banker for the Gabon bid.

It is also looking at properties in Columbia and Ecuador and at a $150-175 million investment in a Vietnam property, he said.

OVL has a 45-percent stake in a producing gas field and two exploration blocks in Vietnam.

Srinivasan said OVL had two more weeks to decide on investing $US3 billion to take up to 5 percent equity in Russian state oil firm OAO Rosneft, which is making an initial public offering (IPO).

"We had the monitoring committee meeting (to review OVL investments) this afternoon. The proposal for taking stake in Rosneft is still open," he said.

The petroleum secretary said the oil ministry will recommend to the Cabinet increasing OVL's investment limit to Rs10 billion from present Rs3 billion for the India's flagship overseas acquirer to make quick decisions.

"Time is money in overseas acquisition business. We will be suggesting raising the investment limit of OVL to the Cabinet shortly," he said.

"Currently, OVL can make investment decisions of up to Rs 3 billion on its own and beyond this limit it has to go the Cabinet Committee on Economic Affairs.