OVL in talks with Russian firms...

Buoyed by the ‘warm and cordial’ meeting of Petroleum Minister Murli Deora with Russian President Dmirti Medvedev at Dushanbe on Thursday, Oil and Natural Gas Corporation Videsh Limited (OVL) has opened ‘channels of negotiations’ with the Russian authorities as well as companies for possible joining of hands for a successful takeover of the U.K.-based Imperial Energy for $2.58 billion.

Highly placed sources associated with the developments informed that the Russian President was ``very positive” to Mr. Deora and even asked his Energy Department officials to work along with his Indian counterparts to ensure that this relationship is taken further. The Cabinet Committee on Economic Affairs (CCEA) had last week authorised OVL to open dialogue with the Russian firms through Moscow or directly in order to get a hold on the deal that would need ``strong backing” of Moscow. Already diplomatic and government to government channels have got down working to seek a favourable verdict from Russia to such a big acquisition.Sources said OVL Managing Director R. S. Butola is spearheading the ‘negotiations’ and was in touch with the Russian companies like Rosneft, Gasprom and Russneft for a possible tie-up to ensure a smooth journey in future for operating the vast oil and gas assets held by Imperial Energy in Russia. What clinched the deal for OVL was the support extended by the Manmohan Singh Government to not only make a fresh bid for acquisition but also giving full authority to rake in a Russian partner.

The company plans to fund the all-cash acquisition from internal resources and debt and may not even be adverse to the idea of giving a part of Imperial Energy to the Russian state-controlled energy firms. “Things have got going with the approval of the Russian President and we are hopeful that approval from Moscow would come within few months time,” a senior official present during the meeting on Thursday stated here.

Source: The Hindu