Associated Press India Oil Company Sets Up Joint Ventures 07.23.2005, 11:10 AM
India's state-run Oil and Natural Gas Corporation and Britain-based Mittal group on Saturday signed two joint venture agreements to pursue energy-related business outside India.
One company would focus on buying stakes in oil and gas projects overseas and the other would be involved in trading and shipping of oil and gas, said Subir Raha, the ONGC chairman.
The companies would explore business opportunities in Indonesia, Kazakhstan, Azerbaijan, Trinidad and Tobago, Angola and Central Asian Republics, Indian-born steel tycoon Lakshmi Mittal, who heads the world's largest steel maker, told reporters.
The Mittal Steel Co. is now venturing into oil and gas business.
The two companies would be registered in Cyprus within six weeks and together invest US$100 million (euro83.33 million), Dow Jones Newswires reported.
The ONGC will hold 49.98 percent equity and the Mittal Steel Co. 48.02 percent stake each in the two companies. The remaining 2 percent stake in each joint venture will be held by financial institutions.
Raha said the deal was to secure India's energy security through global resources.
India imports nearly 70 percent of its energy requirements.
India's crude oil output has stagnated for more than three years, averaging around 33.3 million tons a year. According to government estimates, India's oil products demand is expected to touch 274 million tons in the next 20 years, while the requirement for gas will be around 400 million standard cubic meters per day.