OVL, which has properties in 13 countries, is a 100% subsidiary of ONGC.
Petroleum minister Mani Shankar Aiyar, while making a presentation titled Energy Security & India's Oil Diplomacy for the cabinet, suggested the restructuring of OVL into a special purpose vehicle.
"OVL can be restructed on the lines of Petronet India, and be jointly owned by ONGC, IOC, Gail and Hindustan Petroleum Corporation. The restructed OVL would jointly acquire an asset with a principal state enterprise," he said.
After the acquisition, a dedicated joint venture would be formed for the project, he added.
"It would give the new entity better bargaining power, larger reach in the total value chain, and better funds and risk mitigation," Aiyar added.
