ONGC, Mittal Steel sign deals for JVs

Oil & Natural Gas Corporation (ONGC) has signed two agreements with Mittal Investment Sarl - the investment holding arm of Mittal Steel - to form ONGC Mittal Energy (OMEL) and ONGC Mittal Energy Services (OMESL).

Subir Raha, CMD of ONGC and Lakshmi N Mittal, chairman & CEO of Mittal Group, signed the agreements.

According to a release issued by ONGC to the BSE today, "the agreement signifies the formal launch of both the joint ventures within ten weeks of signing of the memorandum of understanding (MoU) in New Delhi on July 23, 2005."

Equity for each of the JV is $50 million. "OVL (in case of OMEL) and ONGC (in case of OMESL) will hold 49.98% (51 % of 98%), and Mittal Investment Sarl will hold 48.02% (49% of 98%). SBI Caps will hold the balance equity in both the ventures,"the release added.

While S K Sharma has joined as CEO of OMESL, the CEO of OMEL is expected to join shortly, the release added.