Oil and Natural Gas Corporation (ONGC) and Mittal group today signed an agreement to form two joint venture companies for exploration of oil and gas assets and related businesses abroad.ONGC Videsh, the overseas arm of ONGC, and Mittal Investment Sarl signed an MoU that provides for establishing a joint venture called ONGC-Mittal Energy in which 98% equity will be held in proportion of 51% by OVL and 49% by Mittal Investment. The remaining 2% will be held by financial institutions.ONGC and Mittal Investment signed the second MoU for co-operation in trading and shipping of oil and gas (including liquified natural gas) sourced through ONGC-Mittal Energy. The second MoU provides for setting up a joint venture named ONGC-Mittal Energy Services with a similar shareholding pattern as the first joint venture firm.The two groups will co-operate in exploration, development, production, evacuation and related processing of hydrocarbons whether in the form of oil, condensates or gas (including lng) in various countries.L N Mittal, chairman of Mittal Steel, said: "Our business is in oil-dominating nations, and the nations have been requesting us to look at the oil business. Jointly, we can play a very important role in securing energy security for the country."Subir Raha, chairman of ONGC, said the focus countries would be where Mittal group already has presence, and the attempt would be to leverage their strengths in those countries.
