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

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

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