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ONGC & Mittal sign 2 JV Agreements

New Delhi, Oct 11, 2005

Two definite agreements were signed between India 's Most Valuable Company, Oil and Natural Gas Corporation Ltd. (ONGC) and Mittal Investment Sarl. – the investment holding arm of Mittal Steel, world's largest Steel Company, to form ONGC Mittal Energy Ltd. (OMEL) and ONGC Mittal Energy Services (OMESL). 

Mr. Subir Raha, Chairman & Managing Director, ONGC, Chairman, ONGC Videsh Ltd. (OVL) and Mangalore Refinery & Petrochemicals Ltd. (MRPL) and Mr. Lakshmi N. Mittal, Chairman & CEO, Mittal Group, signed the agreements, signifying the formal launch of both the Joint Ventures within ten weeks of signing of the Memorandum of Understanding (MoU) in New Delhi on 23rd July 2005.

Equity for each of the JVs is USD 50 Million. OVL (in case of OMEL) and ONGC (in case of OMESL) will hold 49.98% (51 % of 98%), and Mittal Investment Sarl will hold 48.02% (49% of 98%). And the balance will be held by SBI Caps. 

Shri S. K. Sharma joined as CEO of OMESL. The CEO of OMEL is expected to join shortly.

Speaking on the occasion, Shri L. N. Mittal expressed his confidence in rapid progress of both the initiatives. Shri Subir Raha added that these JVs will effectively supplement the efforts of the ONGC Group of companies in securing global footprint. 

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