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ONGC, a Navratna PSU under the Ministry of Petroleum and Natural Gas and Mittal Investments Sarl, one of the investment arms of Mr. Lakshmi N Mittal family, entered into two Memorandum of Understanding (MoU), here today, to form two overseas joint venture companies viz. ONGC Mittal Energy Ltd. (OMEL) and ONGC Mittal Energy Services Ltd (OMESL). The MoU was signed by Mr. Subir Raha, CMD, ONGC and Mr. Lakshmi N. Mittal, Chairman & CEO, Mittal Group, in the presence of Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas and Panchayati Raj.
Describing the development as reflection of the confidence by the corporate in their abilities, Shri Mani Shankar Aiyar said that in Mr. Mittal we have an Indian who can think global and an ONGC leadership which can think out-of-box. Through this alliance, we have a platform to help India to be the vanguard of economic development. Referring to the humongous needs for oil and gas, Shri Aiyar said that along side our best efforts for optimizing domestic resources, there would always be no limit for maximizing our efforts to obtain oil and gas opportunities abroad. 20 years from now even with our best efforts, he said, the domestic gas production is estimated to reach about 200 million standard cubic meters per day (MMSCMD) whereas our demand would be close to 400 MMSCMD. Shri Aiyar opined that utilizing oil and gas resources abroad for our needs and conserving domestic resources for future would be a better option.
Underlining the importance of joining hands by ONGC and M/s Mittal, a public-private partnership, Shri Aiyar hoped that this will result in the availability of more oil and gas for achieving energy security of the country. The two groups will work together to promote energy security of India by cooperating in exploration, development, production, evacuation and related/consequential processing of hydrocarbons whether in the form of oil, condensates or gas (including liquefied natural gas) in various countries.
The MoU between OVL and Mittal provides for establishing a Joint Venture Company in which 98% equity would be held in the proportion of 51% (OVL) and 49% (Mittal); remaining 2% will be held by financial institution (s).
ONGC and Mittal Investments Sarl signed a MoU for cooperation in trading and shipping of oil and gas (including LNG) sourced through the MoU between OVL and Mittal Investments Sarl and related/consequential business opportunities. The MoU provides for establishing another Joint Venture Company named as ONGC Mittal Energy Services Limited (OMESL) with similar shareholding pattern as OMEL.
Both ONGC and Mittal Steel entered the portals of “Fortune 500”, ONGC being ranked at 454th and Mittal Steel at 253rd.
About ONGC
ONGS is the largest Indian Company in terms of market capitalization. net worth and net profits (current market capitalization of over USD 30 billion and FY 05 profits USD 3 billion). ONGC’s 100% subsidiary OVL is the largest Indian multinational with operations in 13 countries, investing over USD 4 billion.
About Mittal Investments Sarl
Mittal Investments is the controlling shareholder of Mittal Steel Company N.V. and is wholly owned by Mr. Lakshmi N Mittal family.
About Mittal Steel Company N.V.
Mittal Steel Company is the world’s largest and most global steel company. The company has operations in fourteen countries, on four continents. For 2004, Mittal Steel had revenues of US$ 22.2 billion, profits of $ 4.7 billion and has a current market capitalization of US$ 20 billion. The company trades on the New York Stock Exchange and the Euronext Amsterdam under the ticker symbol “MT”.
RCJ/NSR
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