Date:07/12/2007 URL: http://www.thehindu.com/2007/12/07/stories/2007120754261900.htm

Business

OVL tie-up with Hindujas cleared

Special Correspondent

NEW DELHI: The board of ONGC Videsh Limited (OVL) has given its green signal for signing of a memorandum of understanding with the Hinduja group for collaboration in the oil and gas sectors and acquiring hydrocarbon assets abroad.

The Hindujas had recently indicated that they were in favour of a joint venture company on the lines of the one formed by OVL with steel baron Lakshmi. N. Mittal. The cooperation will be on a project to project basis and would be executed through formation of a new joint venture company or a special purpose vehicle. Official sources informed that the Hindujas had been pressing OVL for an alliance to secure an oil and gas field in Iran. Tehran had conveyed to the Hindujas that they were welcome in the Azadegan oilfield and the Phase-12 of the giant South Pars gas field in Persian Gulf if it comes with OVL. Hindujas are learnt to have identified two properties in Iran and claim to have even signed a MoU with Naftiran Intertrade Co.