Polls cast shadow on ONGC Videsh clone

The possibility of early elections have cast their shadow on the move to set up a company similar to ONGC Videsh Ltd (OVL) with participation from all public sector refining and marketing companies.

A final decision on the issue will now be taken only by the new government at the Centre after the elections.

Though the petroleum ministry had recently convened a meeting to discuss the issue, it was adjourned after preliminary discussions on the need for the downstream industries to take up oil equity abroad.

While those attending the meeting refrained from mentioning anything about the forthcoming elections, "their body language clearly suggested that there was no need to take a decision on OVL-II before the elections," a source said.

Besides elections, the inherent difficulties in effectively running a joint venture of five companies is also making the ministry becoming chary of the idea and may look for other alternatives to help domestic oil marketing companies enter the oil exploration and production sector abroad.

The idea to have a company similar to OVL was floated in November when the state-owned oil marketing and refining companies expressed their desire to have a piece of the action in OVL which is firing on all cylinders and has come to be known as the new Cinderella of the oil sector.

From a sleepy firm just 3 years ago with just two properties in 2 nations, OVL has blossomed into a true multinational with 10 properties in 8 countries.