|ONGC and Mittal Investments ink MoU for Energy Business|
25 July, 2005
ONGC, India’s Most Valuable Company and Mittal Investments Sarl, one of the investment arms of Mr. Lakshmi N Mittal family, entered into two Memorandum of Understanding (MoU), on 23rd July 2005, to form two overseas joint venture companies viz ONGC Mittal Energy Ltd. (OMEL) and ONGC Mittal Energy Services ltd (OMESL).
The MoU was signed by 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, in the presence of Mr. Mani Shankar Aiyar, Hon’ble Minister of Petroleum & Natural Gas and Panchayati Raj.
The two groups shall work together to promote energy security of India by cooperating in exploration, development, production, evacuation and related/consequential processing of hydrocarbons whether in the form of oil, condensates or gas (including liquefied natural gas) in various countries. The MoU between OVL and Mittal provides for establishing a Joint Venture Company in which 98% equity would be held in the proportion of 51% (OVL) and 49% (Mittal); remaining 2% shall be held by financial institution(s).
ONGC and Mittal Investments Sarl signed an MoU for cooperation in trading and shipping of oil and gas (including LNG) sourced through the MoU between OVL and Mittal Investments Sarl and related/consequential business opportunities. The MoU provides for establishing another Joint Venture Company named as ONGC Mittal Energy Services Limited (OMESL) with similar shareholding pattern as OMEL. Both ONGC and Mittal Steel entered the portals of “Fortune 500”, ONGC being ranked at 454th and Mittal Steel at 253rd.
ONGC is the largest Indian Company in terms of market capitalization, net worth and net profits (current market capitalization of over USD 30 billion and FY 05 profits USD 3 billion). ONGC’s 100% subsidiary OVL is the largest Indian multinational with operations in 13 countries, investing over USD 4 billion.
About Mittal Investments Sarl
Mittal Investments is the Controlling shareholder of Mittal Steel Company N.V. and is wholly owned by Mr. Lakshmi N Mittal family.
About Mittal Steel Company N.V.
Mittal Steel Company is the world’s largest and most global steel company. The company has operations in fourteen countries, on four continents. For 2004, Mittal Steel had revenues of US$22.2 billion, profits of $ 4.7 billion and has a current market capitalization of US$ 20 billion. The company trades on the New York Stock Exchange and the Euronext Amsterdam under the ticker symbol “MT”.