Now some steel in oil diplomacy

Two sets of MoUs were finalised by ONGC in consultation with the petroleum ministry on Friday. One will be signed by ONGC while the other by OVL. The state-owned firm will have 51 per cent stake in the joint venture company being formed to sharpen India’s attempt to attain energy security by getting equity oil abroad. Steel tycoon L.N. Mittal’s flagship Mittal Steel will hold 49 per cent stake.

OVL, ONGC’s foreign arm, will team up with Mittal group for acquisition of oil and gas companies/fields abroad. The second MoU will be between ONGC and Mittal group for pursuit of related oil businesses like refining, petrochemicals and pipelines.

Aiyar said, ‘‘we have looked into the draft MoU prepared by ONGC.’’ Asked if the government has cleared the MoUs, he said ‘‘Yes. I don’t anticipate any problem.’’

Mittal Steel has manufacturing units in 14 countries and sales and marketing offices in 11 nations. According to an official in the ministry, ‘‘Mittal group has strong presence in Kazakhstan where ONGC is seeking Kurmangazy oilfield, besides interest in Makhambet and Satpayev exploration blocks. We may use Mittal group influence to get these deal through.’’ The MoUs will be signed on Saturday by ONGC CMD Subir Raha and global steel tycoon L.N. Mittal. ‘‘This (MoU) is aimed at securing energy security for the country,’’ Aiyar said.

The MoUs may lead to formation of project-specific joint venture companies for acquisition of oil firms/fields and energy-related business like energy trading and shipping abroad.

Negotiations on to make pipeline safe

NEW DELHI: Aiyar on Friday said negotiations with Pakistan were on to make the $7.4-billion Iran-Pakistan-India gas pipeline safe from all risks. ‘‘The crux of this exercise for a safe and secure world class project is to take required measures to mitigate the risks involved,’’ Aiyar told reporters. Prime Minister Manmohan Singh had on Thursday said in Washington that the project was fraught with risks and expressed doubts if any international consortium of bankers would underwrite the project. Aiyar said the technical, financial, commercial and legal agreements of the pipeline will have safety and security dimension worked into the project structure. ‘‘Negotiations are on schedule that we had laid. We are working towards that,’’ he said. ENS