Mittal Steel Sari, ONGC ink JVs

Oil & Natural Gas Corporation and Mittal Steel Sari "" the investment holding arm of Mittal Steel "" today signed agreements for the setting up two joint ventures.

As per the agreements, ONGC will hold 49.98 per cent stake in ONGC Mittal Energy Services Ltd while Mittal Investment Sari will hold 48.02 per cent. The latter will look at opportunities in the services sphere globally, including trading and shipping activities.

Similarly, ONGC Videsh Ltd will hold 49.98 per cent stake in ONGC Mittal Energy Ltd, while Mittal Investment Sari's stake would be 48.02 per cent. The joint venture would undertake oil and gas exploration and production, with the Mittals using their relationships to seek projects.

ONGC Videsh Ltd is a wholly-owned subsidiary of ONGC. SBI Caps has been roped in as an investor in both the joint ventures with its holding at 2 per cent each. The joint venture agreements were signed within 10 weeks of signing of the memorandum of understanding on July 23.

ONGC Mittal Energy has already tried for an overseas acquisition with its failed bid for PetroKazakh.

The ONGC-Mittal combine is in talks with a Nigerian delegation, which is in the capital to hold discussions on railways, LNG and railway projects in the African continent.

An ONGC release said SK Sharma has joined as the chief executive officer of ONGC Mittal Energy Services Ltd, while a chief executive for ONGC Mittal Energy is expected to joint shortly.

ONGC Chairman and Managing Director Subir Raha said in the statement that the joint ventures will effectively supplement the efforts of the company in securing a global footprint.