ONGC-Mittal joint ventures to be merged

Oil and Natural Gas Corporation (ONGC) has decided to merge its energy trading joint venture with steel tycoon Lakshmi Mittal with their exploration tie-up.

In 2005, ONGC had formed two joint ventures with Mittal — ONGC Mittal Energy Ltd (Omel) for acquisition of oil properties and ONGC Mittal Energy Services Ltd (OMESL) for trading and shipping of oil and gas, including liquefied natural gas.

“The co-promoters have since mutually decided to collapse OMESL into Omel, with a view that any trading and shipping activity in the future can be undertaken through Omel itself,” ONGC said in a statement, while rejecting news reports that the trading arm has been folded up.

It said OMESL was to trade and ship oil and gas, primarily those produced from properties owned by Omel. “While Omel is currently having a producing oil asset in Syria and exploratory blocks in Nigeria, OMESL has been a dormant firm, as the co-promoters mutually consented not to pursue purely trading and shipping activities,” the company said.