ONGC plans bond to fund Azerbaijan oilfield stake buy - report

HONG KONG Wed Nov 21, 2012 8:06am IST

A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of Ahmedabad March 2, 2012. REUTERS/Amit Dave/Files

A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of Ahmedabad March 2, 2012.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

HONG KONG (Reuters) - Oil & Natural Gas Corp (ONGC) (ONGC.NS), India's biggest energy explorer, is planning to sell dollar bonds to fund the $1 billion acquisition of a stake in oilfields in Azerbaijan, Bloomberg reported on Wednesday.

Hess Corp (HES.N) said in September it had agreed to sell its 2.72 percent stake in the large Azeri, Chirag and Guneshli(ACG) group of oilfields as well as its 2.36 percent stake in an associated pipeline to ONGC for $1 billion.

ONGC's foreign investment arm, ONGC Videsh Ltd, will buy the assets in a deal it expects to close in the first quarter of 2013. It is subject to Indian and other regulatory approval.

ONGC Videsh may raise almost the entire acquisition cost selling the notes next quarter, the report said, citing an unnamed source.

ONGC Videsh is seeking cheaper funds abroad as rupee borrowing costs are about twice as much, the report said.

The BP-operated ACG fields in the Caspian Sea account for the lion's share of Azeri oil production and are the main source of crude for a pipeline which runs via Georgia to the Mediterranean port of Ceyhan in Turkey.

(Reporting by Stephen Aldred; Editing by Joseph Radford)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Political Pulse

Political Pulse

100 days of Modi: Good for business, not so good for marginalised groups.  Full Article 

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Best Economy

Best Economy

Swiss economy most competitive once again; EU, U.S., Japan improve.  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage