Mittal to take part in govt oil block auction

India is hoping to draw up to 3.5 billion from the auction of 57 oil and gas exploration blocks from domestic private and overseas groups. Overseas roadshows for the auction are scheduled to start on January 25 and bids will close on April 11.

Mittal declined to reveal details of how many blocks his group would bid for, but said the move to participate in the auction was part of his family8217;s slow diversification away from the steel business.

8220;We are slowly slowly trying to grow this sector for us as a family. Not as ArcelorMittal,8221; Mittal, who ranks among the world8217;s top five billionaires and was estimated by Forbes magazine to be worth 51 billion, said in an interview.

8220;It is part of the family8217;s diversification from steel. As a family we want to diversify into other sectors. Combine that with our knowledge and experience in steel, perhaps oil could be another sector for us,8221; he added.

Mittal, who created ArcelorMittal when his Mittal Steel acquired Europe8217;s top steelmaker Arcelor last year, has built his steel empire by buying often state-run, ailing steelmaking facilities around the world and turning them around.

The group has expertise in the commodities and resource sector, and has over the years gained experience in dealing with governments around the world, which industry experts say can be leveraged in the energy sector.

The London-based businessman said the family was looking at opportunities ranging from exploration and production to refining.

Asked if petroleum retailing was an area he would consider, Mittal said, 8220;Today, we do not have retail in mind.8221;

A lot of Mittal8217;s plans are currently centred in India, where his Singapore-based family investment arm Mittal Energy Investments has picked up a 49 per cent stake in a refinery planned in the northern state of Punjab.

Indian state-run refiner Hindustan Petroleum Corp Ltd HPCL is Mittal8217;s partner in the venture.

Mittal is eyeing a stake in another refinery being planned by HPCL in Andhra Pradesh, sources close to the deal revealed.

Another of his investment companies, Mittal Investments Sarl, has teamed up with India8217;s top oil firm Oil and Natural Gas Corp ONGC to form ONGC Mittal Energy Ltd to buy energy assets outside India.

The Mittal family has slowly but steadily been increasing its presence in the energy sector across the globe, with interests in oil and gas in Turkmenistan, Kazakhstan, Syria, Russia and Nigeria.

He has also pledged 1.1 billion for oil, power and liquefied natural gas projects in Bangladesh.

Mittal8217;s growing presence in the energy business has prompted speculation that his group had considered a bid for Britain8217;s Burren Energy, which last month agreed to a 1.74-billion-pound bid by Italy8217;s Eni.

Asked about Burren, which has assets in the Democratic Republic of Congo and Turkmenistan, Mittal noted its deal with Eni was 8220;a done deal8221; and refused to say whether he could launch a counterbid.

8220;I do not comment on such things,8221; he said.