ONGC Forks Out Money for Rosneft and YUKOS

    February 2, 2005

Oil and Natural Gas Corp. of India is in negotiation to lend $4 billion to Rosneft and buy part of YUKOS for $2 billion.

“ONGC has the backing of the petroleum ministry but we need the approval of the Cabinet Committee on Economic Affairs before going ahead,” said a top oil ministry official.

According to a Reuters article,

“Another official said ONGC was likely to acquire 16-17 percent equity in Yuganskneftegaz, a unit of YUKOS that was bought for $9.4 billion by an unknown Russian group, Baikal Finance, which was in turn bought by state-run oil producer Rosneft.

ONGC Chairman Subir Raha said he was negotiating “variants” of the deal in which Chinese state firm CNPC lent Rosneft $6 billion guaranteed by future crude oil deliveries.”

“We are working on different variants. I will not say anything beyond this,” he said.

Experts expect India’s demand for oil to increase about 5% a year for the next 20 years.

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