The Hindu Business Line : Gazprom pulls out of IBP race

RUSSIAN oil major Gazprom is set to pull out of the race for acquiring controlling stake in the state-owned petro-marketing company, IBP Ltd. This leaves Reliance, Essar, Shell and the public sector petro-marketing companies as key bidders for IBP.

Gazprom is unlikely to bid for IBP since the Government has recently rejected its plea seeking extension of time for submission of bids, according to officials. The deadline for submission of financial bids is January 31 and the Government is likely to announce the winner in a week's time.

The Disinvestment Minister, Mr Arun Shourie, had recently written to the Russian Energy Minister that it would not be possible to accede to Gazprom's request for time extension.

The Russian major had sought more time on the grounds that the contracts with its joint venture partner were not in place. Gazprom was planning to team up with the Sun Group to bid for IBP.

Around two months ago, Caltex, Exxon Mobil and BP-Amoco had written to the Ministry of Disinvestment that they were not interested in bidding for IBP, according to Ministry officials. Caltex's letter had said that the then proposed bidding norms were stiff. The Government was then toying with the idea of seeking a Rs 500-crore bank guarantee as a precondition for bidding. Finally, it decided to dispense with the norm.

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