ONGC yet to decide on Haldia bid

Days after the West Bengal government invited expressions of interest (EoIs) for selling its stake in Haldia Petrochemicals Ltd (HPL), Oil and Natural Gas Corp (ONGC) today said it was “examining” whether to bid for the beleaguered petrochemical company. “It is to be decided in the boardroom. We are examining now,” ONGC Chairman and Managing Director Sudhir Vasudeva said to a query.

As The Chatterjee Group (TCG), one of HPL’s key promoters, has brought out an advertisement cautioning probable bidders for the government’s stake citing the dispute over 155 million shares, Vasudeva said, “We are aware of the matter. Everything will be taken into consideration by the board.”

If the ONGC decides to bid for HPL, it would do it either through ONGC or its subsidiary MRPL, he added.

Through West Bengal Industrial Development Corporation, the state government invited EoIs for about 40 per cent stake in HPL. TCG, however, would have the first right of refusal. Also, the disputed 155 million shares, which are key to the state government’s management control of HPL, are part of the 675 million shares that have been put on the block.

Meanwhile, there was an interim order from the Calcutta High Court yesterday, restraining the state government from altering the shareholding pattern of HPL to the extent of disputed 155 million shares. The matter will again be heard on June 10.

ONGC-Shell partnership
Commenting on the ONGC’s proposed tie-up with Anglo–Dutch multinational Royal Dutch Shell, Sudhir Vasudeva said, “If they are interested, we will take them together. Whether it is upstream, downstream or deepwater operations, we want to use them.”

The proposed partnership is especially expected to be a big boost for ONGC’s downstream oil refining business in future.

However, he refused to share much details as the matter is at “preliminary level of discussion.”