Venezuelan oil firm may buy stake in ONGC-MPL

Venezuelan government-owned oil major, Petroleos De Venezuela, is likely to buy stake in ONGC Mangalore Petrochemicals, which is promoted by ONGC and MRPL for setting up an aromatic unit in Mangalore SEZ.

"Discussions are already on. The Venezuelan company, which is the fifth-largest oil producer in the world, is looking for a controlling stake in the project," a source said.

But the exact size of the deal is yet unknown.

ONGC Chairman R S Sharma confirmed that the Venezuelan company did evince some interest in the project.

"Petroleos De Venezuela showed interest in the project. And we held some talks initially. I can't comment further," he said on the sidelines of the launch of a CSR initiative of ONGC Officers Mahila Samiti (OOMS) here today.

OMPL project is expected to be commissioned by this year-end. According to plans, OMPL will produce 920 TMT (thousand metric tonnes) of paraxylene and 140 TMT of benzene per annum.

ONGC has a 46 per cent stake in OMPL while its subsidiary, Mangalore Refinery and Petrochemicals (MRPL), has a three per cent stake in it which together amounts to 49 per cent. The balance 51 per cent is proposed to be offered to the public or strategic partners.