OVL to make formal bid for Imperial Energy

New Delhi: ONGC Videsh (OVL), the overseas investment arm of exploration major ONGC, is expected to make a formal bid for Imperial Energy Corp soon.

The company has been examining various issues and a “binding bid” will be made soon.

London Stock Exchange (LSE) listed oil exploration and production company Imperial Energy has been attracting a lot of attention lately with major companies from Asia – India and China – pitching for stake.

Sources remained non-committal on the bid amount or speculations that OVL may rope in a strategic partner.

“It is a long process,” said a source, adding that apart from shareholders’ approval, a counter bid can also be submitted.

Recently, an empowered committee of secretaries (ECS) had approved a proposal by OVL for enhancing the bid amount. Indications are that OVL had got the ECS nod for a $3-billion bid.

According to earlier reports, the company had already submitted initial bids of $2.96 billion for Imperial Energy.

However, another market speculation was that OVL has submitted a bid of $2.5 billion.

The LSE-listed company is focused on the Commonwealth of Independent States.

The assets are located in Russia and Kazakhstan.
The company has proven and possible oil and gas reserves of 920 million barrels of oil equivalent.

ONGC, which currently owns 20 per cent of Russia’s Sakhalin I project, is keen on buying more assets in the former Soviet Union.

Besides the Indian exploration major, China’s Sinopec Group and Korea National Oil Corp were also said to have expressed interest in Imperial.