Friday, July 7, 2006
News Update as at 18.00 hrs (IST)
General
ONGC-Mittal combine to invest $6 b in Nigeria http://www.thehindubusinessline.com/businessline/blnus/14071701.htm
NEW DELHI: ONGC-Mittal combine will invest more than six billion dollars in setting up a refinery, power plant and railway lines in Nigeria.
ONGC Mittal Energy Ltd (OMEL) is finalising the investment proposals for setting up a 15 million tonnes per annum export-oriented refinery, a 2,000 MW power plant and railway lines in the African country, sources said. The refinery would have an initial capacity of 5 million tonnes and would be expanded to 15 million tonne.
The investments are part of a mega deal between state-run Oil and Natural Gas Corporation and Nigerian government, wherein OMEL would create the infrastructure and the African country would give them oil blocks.
ONGC Mittal Energy Ltd - the joint venture company of Mittal Steel and ONGC, has recently won two lucrative oil fields in Nigeria. OMEL had won Blocks OPL 209 and OPL 212 in the Nigeria 2006 Mini Bid Round. The recoverable reserves potential estimated from a few clearly delineated prospects in the blocks are expected to be over one billion barrels of oil and oil equivalent gas.
OMEL is registered in Cyprus. ONGC Videsh Ltd, the overseas arm of ONGC, holds 49.98 per cent equity and Mittal Investment Sarl holds 48.02 per cent. The balance 2 per cent is with SBI Caps. - PTI
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