Oil and Natural Gas Corp. to invest in Russian oil fields

Government owned Oil and Natural Gas Corp. has said in a statement that they are keen on investing in Russian oil fields. The company has also started interacting with the Russian government to initiate the procedure of getting a contract.

In other news, OVL, the overseas arm of ONGC has picked up a 5 percent stake in the firm’s initial public offering. This IPO is open to foreign and institutional investors.

ONGC plans to allow the Russian government to participate in this IPO provided it gets a stake in the Sakhalin-3, Vankor or Timano-Pechora oil fields.

ONGC has said in a statement on this topic: “We are interested in the IPO only if we are taken onboard as a strategic investor in some of the oil and gas blocks. We are not interested in picking up a stake as a portfolio investor. The IPO values Rosneft at between $60 billion and $80 billion. A five percent stake would mean $3 billion to $4 billion investment.”