Aiyar to discuss ONGC-Yukos deal with Russia

Petroleum Minister Mani Shankar Aiyar will take up Oil and Natural Gas Corp's proposal to acquire 15-20 per cent stake in embattled Russian firm Yukos' core asset, Yuganskneftegaz, when he meets his Russian counterpart in Moscow on February 21.

"We are still interested (in taking equity) and we haven't given up hopes yet. ONGC and (Russian state-owned firm) Rosneft continue to be in negotiations. I will take the issue further when I meet my Russian counterpart in Moscow on February 21," Aiyar said on the sidelines of Multi Commodity Exchange launching crude oil futures.

ONGC, through its foreign arm ONGC Videsh Ltd, is negotiating a $2 billion payout for a 16-17 per cent stake in Yuganskneftegaz and has offered another $4 billion, as loan to Rosneft to fund its controversial acquisition of the Yukos' main producing asset.

OVL is pitched against China's largest oil producer China National Petroleum Corp, who has also offered to fund the Rosneft purchase of Yuganskneftegaz.

"Door is still open and there is no full stop," Aiyar later told reporters at his office.

"Unlike Chinese who are interested in securing oil supplies through the loan, we are interested in picking equity. Rosneft acquired Baikal Finance Group, which had bought 76.79 per cent of Yuganskneftegaz, the crown jewel of Yukos, at an auction for 260.8bn rubles ($9.3 billion) and there is still some role for OVL," a senior official said.