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No Russian assurance on ONGC’s acquisition plan

NEW DELHI: The much awaited meeting between Russian Prime Minister Vladimir Putin and Petroleum and Natural Gas Minister Murli Deora on Wednesday failed to reach an agreement on Russian backing for the takeover of U.K.-based Imperial Energy by ONGC Videsh Limited (OVL) for $2.59 billion.

Highly placed sources said Mr. Putin did not give a firm assurance on giving the go ahead to the acquisition and instead told Mr. Deora that his Energy Minister Sergy Shemato would be visiting New Delhi at the end of this month to hold further talks. Sources described the meeting between Mr. Putin and Mr. Deora as warm and cordial.

The deal has been hanging fire for almost three months now. The Federal Anti-monopoly Agency (FAS) of Russia has sought a review of the deal.

However, both the sides held talks on further enhancing cooperation in the oil and gas sector. Mr. Deora also raised the issue of ONGC Videsh Limited (OVL) participation in the Sakhalin oil field projects. OVL has 20 per cent stake in Sakhalin-I fields fetching the nation 2.4 million tonnes of crude annually.

While Sakhalin-I and II projects have already been decided, Russia is planning to invite bids for Sakhalin-III and IV projects in the vast energy-rich region.

The two sides also discussed the Trebs and Titov exploration blocks in Timan Pechora region.

India is keen on OVL forming a 49:51 joint venture with either Rosneft or Russian gas giant Gazprom to pursue other oil and gas exploration opportunities there.

The issue of OVL’s interest in oil fields in East Siberia also figured in the talks.

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