The Hindu Business Line : ONGC won't sell its stake in IOC, says Raha

THE Chairman and Managing Director of ONGC, Mr Subir Raha, has said that the company will not sell its stake in Indian Oil Corporation. "I'm not selling. I will hold it as an investment," he told presspersons on the sidelines of the Economic Editors Conference.

The two companies had bought shares of each other in 1999 under instructions from the Government, which wanted to ensure it got enough money from the sale of state-owned businesses. ONGC holds a 9.6 per cent stake in Indian Oil.

As regards crude from Nigeria, Mr Raha said that India would start buying 120,000 barrels per day (bpd) of Nigerian crude oil in two months. Indian Oil Corporation already has a term contract for 40,000 bpd. The ONGC-Mittal joint venture will be able to take another 80,000 bpd. The ONGC-Mittal joint venture firm signed an agreement in November to invest in Nigerian infrastructure, in exploration activities there and also to buy Nigerian crude. Mr Raha said the firm's agreement with Nigeria would be followed up with a binding contract in two months.

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