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ONGC still hopeful of Petrokazakh deal

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Press Trust Of India New Delhi
Oil and Natural Gas Corp (ONGC) is still hoping to clinch the deal for takeover of Petrokazakhstan, with senior officials dashing off to Russia to get Lukoil to stop the company's sale to China's China National Petroleum Corp (CNPC).
 
Lukoil, Russia's largest oil producer, is a partner of Petrokazakhstan and has the right to block CNPC's deal, which, ONGC contends, was struck through an "unfair" bidding process.
 
The Indian government has, however, stayed out of the Petrokazakhstan affair till now and refused to use diplomatic channels for ONGC.
 
"We are not in it... It is a commercial deal between ONGC and Petrokazakhstan and ONGC is looking at ways to re-enter (the race)," a top Petroleum and Natural Gas Ministry official said.
 
Analysts, however, expressed surprise at the Indian government not intervening in the tender norm violation even though it war aware that Beijing put all its weight behind CNPC to get Pedrokazakhstan.
 
Top official of ONGC Videsh Ltd, the overseas arm of ONGC, rushed to Moscow on Tuesday to court Lukoil.
 
Ongc's contention is that Petrokazakhstan's acceptance of CNPC 's $4.18-billion takeover offer was unfair as the Canadian firm's financial advisor Goldman Sach had, only on August 19, informed that its bid was the best.
 
Ongc had bid for Petrokazakhstan jointly with world's largest steel maker Mittal Group.
 
Goldman Sach, however, sought clarifications on two conditions put by the Indian consortia, the official said, adding ongc-Mittal combine were to submit a letter on August 22 withdrawing the conditions but their bid of $3.9-4 billion was shown to the Chinese company on Sunday (August 21), following which it improved its previous offer to outbid ongc.

 
 

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First Published: Aug 25 2005 | 12:00 AM IST

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