ONGC, Gulf Oil set up venture for Mideast foray

ONGC and Gulf Oil, a Hinduja group company, have set up a joint venture firm for exploration in overseas markets.

India's state-run ONGC and Gulf Oil Corporation, a Hinduja group company, have set up a joint venture firm for exploration, development and production of oil and gas in overseas markets, including the Gulf region.

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The alliance, which is yet to be formally announced, seeks to work on an exclusive basis in jointly identifying, developing and implementing project/business opportunities in Iran, Kuwait, Oman, Qatar and the UAE, a media report said.

Sources close to SP Hinduja, Chairman of the multi-billion group, who is currently in Abu Dhabi to explore business opportunities, did not give details about the tie-up.

The new venture would jointly identify specific projects and work in developing the identified areas jointly "wherein their individual or combined expertise can result in mutually beneficial business opportunities on terms to be agreed upon in Brunei, Libya, Russia, Ukraine, United Kingdom Saudi Arabia," the Khaleej Times reported.

ONGC and Gulf Oil will hold 98 per cent of equity interest in the joint venture in the ratio of 51 per cent for ONGC and 49 per cent for Gulf, the source said without specifying the total investment size.