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

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

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:

SAARC Summit

REUTERS SHOWCASE

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

Reuters Poll

Reuters Poll

GDP growth to slow to 5.1 pct, but no rate cut yet  Full Article 

Oil Prices Fall

Oil Prices Fall

Oil at four-year low as OPEC production cut looks unlikely  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

Vodafone Tax Dispute

Vodafone Tax Dispute

India advised against challenging Vodafone tax ruling - source  Full Article 

India-focused Funds

India-focused Funds

India-focused hedge funds up over 40 pct YTD - HFR  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

RBI Rate Hopes

RBI Rate Hopes

Markets pricing in rate cut, despite wary RBI  Full Article 

Land Disputes

Land Disputes

Disputes over land for industry on the rise in India, angering locals - charities  Full Article 

Reuters India Mobile

Reuters India Mobile

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