India offers stake in Imperial Energy.

In an attempt to reduce potential losses from its $2.1 billion acquisition of Imperial Energy Corp. Plc 's Siberian deposits, ONGC Videsh Ltd. ( OVL ) has offered Liberty Resources Llc a stake of up to 30% in Imperial. That's subject to Denver-based Liberty striking success in the Bazhenov shale formation in the region.

'A technology partnership agreement has been signed with Liberty Resources,' said an OVL executive on condition of anonymity. 'The agreement with Liberty has been structured in such a way that it will be a mix of fee and in the event of them finding success in shale, we will give them partnership. This will also make them put in their equity portion.'

An oil shale is a fine-grained sedimentary rock containing kerogen, an organic material that produces oil and gas upon distillation. Properly processed kerogen can be converted into a fuel similar to petroleum.

According to the plan, a total of four wells will be drilled requiring an investment of $10 million.

LIVEMINT