ONGC may rope in Rosneft as local partner in Imperial Energy...

ONGC may rope in Rosneft Oil Company of Russia as its local partner in Imperial Energy Corporation Plc in case of a successful acquisition of the UK-based company having substantial oil equity in Russia’s Siberia region, according to sources.

The Indian major has recently submitted a £1.4 billion (approximately Rs 11,400 crore) bid for acquiring Imperial.

ONGC has existing cooperation agreements with the two Russian oil and gas majors Rosneft and Gazprom. Of the two Rosneft, partners ONGC Videsh (OVL) – the overseas arm of ONGC — in the Sakhalin-1 oil and gas project in Russia’s Sakhalin Island in Siberia.

“We may have to include a third partner and inclusion of the existing partners is not ruled out,” a senior ONGC official told Business Line when asked whether ONGC would include a third partner if it acquires Imperial.

He, however, stressed that any such inclusion was not mandatory as per the local laws.

Incidentally sources say lack of Russian support might have resulted in the recent pull out of China Petroleum & Chemical Corporation, commonly known as Sinopec, from the race. Sinopec announcement came barely hours after the submission of bid by ONGC.

Interestingly, ONGC also denies having the support of Russian authorities. When asked ONGC Chairman, Mr R.S. Sharma, denied having received any such support from the Russian Government.

Source: Business Line