ONGC, LN Mittal group to form JV for oil biz

Oil and Natural Gas Corporation, India's largest oil producer, will sign an agreement with global steel tycoon L N Mittal on Saturday for jointly hunting for overseas oil properties and energy business.

The two groups are to ink a memorandum of understanding that may lead to formation of project specific joint venture companies for acquisition of oil companies/fields and energy-related business like energy trading and shipping abroad.

"We are signing a broad MoU on Saturday," said a top ONGC official, who did not want to be named. Petroleum Minister Mani Shankar Aiyar welcomed the deal saying the two had lot of synergy.

ONGC wants to capatalise on L N Mittal Group's presence in oil and gas-rich countries especially in the Caspian region and use its influence in securing lucrative deals.

L N Mittal's flagship Mittal Steel has manufacturing units in 14 countries and sales and marketing offices in 11 nations.

"Mittal Group has strong presence in Kazakhstan where ONGC is seeking Kurmangazy oilfield besides interest in Makhambet and Satpayev exploration blocks. We may use Mittal group influence to get these deals through," the official said.