ONGC-Mittal Steel deal to bring in synergy: Raha

The collaboration between Oil and Natural Gas Corporation (ONGC) and Mittal Steel Company will bring in a lot of synergy and leverage the respective strengths for acquiring oversease oil and gas assets, ONGC chairman Subir Raha said today.

"We need their strength of global business, resources, expertise and knowledge for doing business globally. Combined with our strengths of expertise in oil and gas, we see a lot of synergy," Raha told reporters after a meeting between L N Mittal and petroleum minister Mani Shankar Aiyar before the signing of MoU between ONGC and Mittal Steel.

Raha said that two sets of MoUs would be signed - one would be between ONGC Videsh (OVL) and Mittal group for acquiring oil and gas fields and companies abroad and the second between ONGC and Mittal group for related business oportunities like refining, pipelines, petrochemicals, trading and shipping.

While ONGC will hold 51% stake in both the joint ventures, Mittal Investment Sarl, based in Luxembourg, will hold the remaining 49%.