New Delhi, Mar 21: There will be no OVL-II. Neither will ONGC Videsh Ltd, the overseas arm of oil and gas exploration company ONGC, be split to give equity to refiner Indian Oil Corporation and gas firm Gail India Ltd. However, IOC, Gail and Oil India Ltd can go with OVL as partners in future acquisitions of oil and gas fields abroad, highly placed government sources said. "OVL will remain India's flagship firm for acquisition of equity oil abroad and IOC and Gail can partner it on project to project basis. OVL will keep 40 per cent of equity oil abroad. Gail and IOC will take 25 per cent stake each while OIL will get 10 per cent," they said. IOC and Gail had sought either sharing in the equity and participation in the OVL board or being allowed to set up their own overseas subsidiaries to fulfill their ambition of owning oil and gas assets abroad.
"We do not want to see two Indian firms competing with each other for the same asset. Like China, we want to go for overseas project with one firm behind which the government can put its diplomatic weight," they said.
With domestic crude oil production of 32 million tonnes meeting only 30 per cent of its requirement, India is acquiring oil and gas fields abroad to attain energy security.
Sources said for oil and gas exploration and production projects, OVL would be the lead partner with 40 per cent stake while for downstream projects like refinery upgradation and revamp, IOC would lead the Indian consortia. Gail would be the leader of the consortium bidding for gas/LNG projects.
Bureau Report