[lbo-talk] Indian corp ONGC trashes US criticism on Syrian venture

uvj at vsnl.com uvj at vsnl.com
Tue Jan 31 03:21:48 PST 2006


Business Standard http://www.business-standard.com/

Tuesday, January 31, 2006

ONGC trashes US criticism on Syrian venture

Press Trust Of India / New Delhi January 31, 2006

Oil and Natural Gas Corporation (ONGC) has rubbished US criticism of the company's teaming up with a Chinese firm to acquire a Syrian oilfield, saying the $573 million spent on acquiring a stake in the Al-Furat fields was not FDI in the UN-sanctioned country but a payout to a Canadian firm for the equity.

"I have seen media reports of the US taking strong exception to investment (in Syria). We are (only) paying Petrocanada for the acquisition and not making any FDI. The Canadian firm had already invested in Syria and we are taking over their stake," said ONGC Chairman and Managing Director Subir Raha.

Meanwhile, ONGC Videsh Ltd, the overseas arm of ONGC, will acquire US energy firm Exxonmobil's 30 per cent stake in an oilfield in Brazil for about $1.4-billion.

"OVL has reached an agreement with Exxonmobil," a petroleum ministry official said.



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