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| Clarification regarding ONGC JV with Mittal Investment Sarl |
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November 12, 2009 |
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There are certain print media reports with misleading / distorting captions like’ Mittal may wind up JV with ONGC’.
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We would like to clarify the status as under :
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ONGC and Mittal Investment Sarl had set up two JV Companies in 2005 with details as under :
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ONGC Mittal Energy Ltd. (OMEL) as a JV between ONGC Videsh Ltd. (49.98%), Mittal Investment Sarl (48.02%) and SBI Caps (2%)
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ONGC Mittal Energy Services Ltd. (OMESL) as a JV between ONGC (49.98%), Mittal Investment Sarl (48.02%) and SBI Caps (2%)
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The objective of OMEL was to jointly invest for Oil & Gas opportunities in select countries and the objective of OMESL was to trade in Oil & Gas, primarily in respect of production from OMEL, and shipping of such products.
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While OMEL is currently having a producing oil asset in Syria and exploratory blocks in Nigeria, OMESL has been a dormant company as the co-promoters mutually consented not to pursue purely trading and shipping activities.
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As a preferred operational model, the co-promoters have since mutually decided to absorb OMESL into OMEL, with a view that any trading and shipping activity in future can be undertaken through OMEL itself.
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The proposal to this effect has been cleared by ONGC Board in its meeting held on 29th October, 2009. The regulatory requirements for merger of OMESL with OMEL would be completed in due course.
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It is thus clarified that ONGC is not winding up its JV with Mittal Investment Sarl. The decision to merge the two separate JVs into one entity are only for convenience of regulatory compliances and management in a more effective manner.
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Corporate Communications
New Delhi
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