Oil and Natural Gas Corporation is examining investing $3 billion to take up to 5 per cent equity in Russian state oil firm OAO Rosneft, which is making an initial public ofering, Petroleum Secretary M S Srinivasan said on Friday.
"We are examining investing up to $3 billion in Rosneft IPO," Srinivasan said. ONGC Videsh, the overseas arm of state-owned ONGC, is in talks for participation in the $11.6 billion IPO.
"Discussions are on and no decision has been taken as yet," he added without giving details. The IPO values Rosneft at between $60-80 billion. A five per cent stake would mean $3-4 billion investment.
"OVL had taken a feel of the debt market when Russia was seeking loan from India and China for takeover of Yuganskneftegaz. They can raise up to $6 billion without any problem," an industry source said.
OVL is keen that it be given a stake in big-ticket Sakhalin-3, Vankor or Timano-Pechora oil fields in lieu of investing in Rosneft IPO.
Russia had previously asked OVL to underwrite the IPO but India had the same condition as a portfolio investment would not give the energy-hungry nation oil and gas.
The mandate of OVL has been to scout for oil and gas abroad as to meet energy security of the country.