ONGC eyes 33% in Shell's Egypt plant

CABINET DECIDES

The Oil and Natural Gas Corporation's (ONGC) overseas exploration unit, ONGC Videsh Limited (OVL), had received Cabinet approval to buy a 33 per cent stake in a deep-water gas field in Egypt from Royal Dutch Shell Plc, an oil ministry official said.

The details of the deal have not been disclosed yet. However, since the ONGC had to seek the Centre's approval for overseas investment, the minimum investment would be more than Rs 300 crore or $75 million, whichever is lesser.

The ONGC has set a target to produce 6.34 million metric tonnes of oil and 1.65 billion cubic metres of gas in 2007-08.