ONGC inspects possibility of buying stake in Russian co
ONGC on Monday said it is 'examining' the possibility of buying a stake in OAO Rosneft, Russia's state oil firm, which is making an initial public offering (IPO).
By PTI |
NEW DELHI: State-owned Oil and Natural Gas Corp (ONGC) on Monday said it is 'examining' the possibility of buying a stake in OAO Rosneft, Russia's state oil firm, which is making an initial public offering (IPO).
"We have not taken a decision on this," ONGC Chairman and Managing Director R S Sharma told a news conference here. "If we make an investment it will be a strategic investment. We are not looking for portfolio investment in Rosneft."
R S Butola, Managing Director, of ONGC Videsh Ltd, the overseas arm of ONGC, said the company had not decided to participate or not to participate in the IPO.
Rosneft plans to raise as much as $11.6 billion in the initial public offering that would be the world's fourth biggest. The IPO will value the Moscow-based company at between $60 billion and $80 billion, Rosneft said on Monday in a statement.
The government will get as much as $8.5 billion and Rosneft will raise as much as $3.1 billion. The price range for the shares and global depositary receipts, which both go on sale on Monday, is $5.85 to $7.85 a piece, Rosneft said.
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"The fact that an opportunity is available in the market means anybody can evaluate it. We have not taken a final decision on this," Butola said.OVL is funding Rosneft's share of cost in Sakhalin-1 oil and gas fields in Far East Russia. Both OVL and Rosneft hold 20 per cent stake each in the field and the Indian firm would recover its loan to Rosneft by getting the Russian firms share of oil from the fields.
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