ONGC offers projects stake to Kuwait Petroleum

Oil and Natural Gas Corp. (ONGC) is seeking a strategic partnership with Kuwait Petroleum Corp (KPC) in two upcoming petrochemicals projects, its chairman Sudhir Vasudeva said.

The two companies Tuesday signed an initial agreement that could lead KPC to hold stakes in the ONGC Mangalore Petrochemicals Ltd. (OMPL) and ONGC Petro-Additions Ltd. (OPAL) projects.

"We are seeking strategic partnership in the two companie. Twenty-six percent stake is being offered in (each of) the two projects," Vasudeva told reporters on the sidelines of the Petrotech 2014 international oil and gas conference here.

The two companies signed an initial agreement here Tuesday for broad cooperation by which Kuwait Petroleum could buy stakes in the OMPL and OPAL projects.

Nizar al-Adsani, KPC chief executive, said his company was looking at several opportunities in India.

ONGC is developing the OMPL petrochemicals complex in south India, in which its subsidiary Mangalore Refinery and Petrochemicals will also hold a stake.

ONGC is also developing the OPAL petrochemicals project in a joint venture with state-run gas transmitter GAIL India and Gujarat State Petroleum Corp (GSPC), at Dahej, Gujarat, in an effort to diversify beyond oil exploration and production.