| RIL, ONGC may be bidders in $8-billion Addax sale | |
| Press Trust Of India / New Delhi June 22, 2009, 0:57 IST | |
 India’s two largest companies — state-run Oil and Natural Gas Corp (ONGC) and billionaire Mukesh Ambani-led Reliance Industries (RIL) — are being rumoured as the "mystery" bidders for UK-based Addax Petroleum, which could be sold for £5 billion (around $8.26 billion), a media report said here.
While China's state-run Sinopec and Korean National Oil Company are already believed to be in talks with Addax, "the company has been approached by a third mystery bidder, possibly a national oil company from India", the Telegraph reported.
"...Some traders noted gossip that an Indian group may be involved in the auction. State-backed ONGC, which last year bought Imperial Energy for £1.4 billion, and Reliance were touted as potential Indian suitors," the report added.
London-based Addax Petroleum has fields in Iraqi Kurdistan and Nigeria and is said to be on the block for up to £5 billion.
A formal offer for the company could be announced early next week, the Telegraph said, adding that "there was also chatter that Jean Claude Gandur, the billionaire chief executive of Addax, and his bankers, led by Tim Chapman of RBC, are keen to get a deal done quickly".
Addax, which has one of only two operational fields in Kurdistan, has seen interest from would-be buyers increase with the completion of an oil-export pipeline from the region.
Chinese state oil group Sinopec is believed to have tabled a £4.8 billion offer for Addax Petroleum, a move aimed at securing China's access to global oil reserves.
In recent years, China has struck a string of deals in Africa and Asia, but has not been so successful elsewhere.
America blocked an $18.5-billion takeover of Unocal, an oil and gas group, four years ago, while last week, a combination of shareholder unrest and Australian nationalist sentiment scuppered plans for a Chinese group to take a large stake in the miner Rio Tinto.
Meanwhile, the National Development and Reform Commission, China's economic planning agency, reportedly issued an order requiring Chinese firms to report intended overseas acquisitions to Beijing before they sign any legally-binding contracts, a move which could hinder Sinopec's plans to buy Addax.
Earlier in December last year, ONGC had taken control of Imperial Energy for £1.3 billion ($1.9 billion) after an overwhelming 96.8 per cent of London-listed firm's total shareholders accepted its takeover offer.
Imperial was the biggest ever overseas acquisition by ONGC Videsh Ltd, the overseas arm of the state explorer.
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