The Hindu : Business : Plans to transfer Kazakhstan oil assets to JV

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Thursday, Jul 26, 2007
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Plans to transfer Kazakhstan oil assets to JV

Special Correspondent

Actions more than words will matter, feel ONGC officials

NEW DELHI: Non-Resident Indian (NRI) businessman, Lakshmi Narain Mittal, on Wednesday said he plans to transfer the Kazakhstan oil assets that he acquired from Russia’s Lukoil to his joint venture firm with ONGC Videsh Limited (OVL).

In his first major oil deal, Mr. Mittal had in April acquired Russian oil firm Lukoil’s 50 per cent stake in Caspian Investments Resources (CIR) for $980 million. The acquisition was to be done by ONGC Mittal Energy Limited (OMEL), the equal joint venture of OVL and Mittal Investment, but Mr. Mittal went ahead on his own citing opposition to OMEL from Lukoil.

“We are currently holding discussions and I think Caspian Investments Resources will be transferred to OMEL,” Mr. Mittal told newsmen on Wednesday. There is a commitment (that) this joint venture has the first right, he added.

However, ONGC officials are not very enthusiastic about the whole situation and feel that actions more than words will matter. “He had promised us that the stake will be transferred to OMEL once the transaction is complete. He has not done so till now.

“We formed a joint venture with him because of his clout with the governments in Africa and Central Asia particularly Kazakhstan,” a senior official said.

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