South Asia

Aug 30, 2005

Kazakhstan refuses to help ONGC in oil firm sale

NEW DELHI - The Kazakhstan government has refused to intervene in the sale of PetroKazakhstan to China's CNPC, saying the deal was between two private companies and it took place outside its jurisdiction. A Kazakh official said from Almaty that his government would not exercise its pre-emption right in favour of ONGC. "We cannot discriminate between the Indians and the Chinese," he said.

India's Oil and Natural Gas Corp, which lost the takeover deal to China National Petroleum Corp, has been exploring ways to keep

its bid for the Central Asian oil firm alive, albeit through informal channels. ONGC officials were also trying to get Russia's Lukoil, PetroKazakhstan's partner, to stall the deal which was reached in London.

ONGC had bid for the oil firm jointly with steel giant Mittal Group and offered US$3.9-4 billion for the takeover. CNPC, which was trailing India at the close of bid, was subsequently allowed to improve its offer. The Chinese company raised the price to US$4.18 billion.

However, financial and legal consultants have opined that the Canadian law, which applies on PetroKazakhstan, permits ONGC to make a rebid 15 days prior to the shareholders meeting, which is slated to be held in October.

(Asia Pulse/PTI)

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