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Mittal committed to energy security in India

Written by: Staff
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New Delhi, July 7: Committing himself to help achieve energy security for India, steel baron Laxmi Mittal today said he will work with MoU partner ONGC in 21 countries.

''We have an understanding to work together in 21 countries with ONGC,'' Mr Mittal said at a press conference here. ONGC's overaseas arm, OVL has secured equity stakes in 24 oil and gas projects in 14 countries.

Mittal steel company, the world's largest and most global steel company with shipments of 49.2 million tonnes and revenues of over 28.1 billion in 2005 entered into two MoUs with ONGC. After the MoUs, two joint overseas joint venture companies--ONGC Mittal Energy Ltd (OMEL) and ONGC Mittal Energy Services Ltd (OMESL) were formed.

The first venture between ONGC Videsh Ltd and Mittal Investments Sarl focus on international Exploration and Production ventures while the second between ONGC and Mittal Investments Sarl is for cooperation in trading and shipping of oil and gas.

The 98 per cent equity in both JVs is held in the proprtion of 51 per cent (OVL) and 49 per cent (Mittal) and the rest two per cent is with SBI Caps.

''In the first year itself we have made good progress,'' Mr Mittal said on the outcome of the JVs.

The ONGC-Mittal combine will invest more than 6 billion dollars in setting up a refinery, power plant and railway lines in Nigeria.

ONGC-Mittal Energy (OMEL) is finalising the investment proposals for setting up a 15 million tonnes per annum export-oriented refinery, a 2,000 MW power plant and railway lines in the African country.

The refinery would have an initial capacity of 5 million tonnes and would be expanded to 15 MT, they said. The investments are part of a mega deal between state-run Oil and Natural Gas Corporation and Nigerian government, wherein OMEL would create the infrastructure and the African country would give them oil blocks.

''Nigeria is the first major step,'' Mr Mittal said stating that he would continue to look at opportunities abroad.

Mittal steel is the largest group in the African continent with sizeable investments in Morocco, Liberia and Senegal.

Asked if he would foray into setting up refineries, Mr Mittal said ''at this time the focus would be on Exploration and Production (E and P).''

UNI

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