Click to play videoNew Delhi: Exactly a year ago steel czar L N Mittal tried to strike oil. That’s when Oil and Natural Gas Corporation (ONGC) and Mittal Investment Sarl, the controlling investment arm of Mittal steel, came together to form two companies—ONGC Mittal Energy Limited (OMEL) and ONGC Mittal Energy Services (OMESL).
While the first is into acquisition of energy assets, the latter dabbles in services such as shipping and transportation.
The year didn't start off too well for OMEL. It was beaten by China in its bid for Kazakh oil giant Petrokazkh. But where Petrokazakh disappointed, Nigeria made up.
OMEL has signed an agreement with the Nigerian government which will give it access to 32.5 million tonne of crude oil per year, which is more than ONGC and ONGC Videsh's current production of 31.5 million tonne.
OMEL In Nigeria |
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To have access to 32.5 million tonne of crude oilThe company has a six-billion dollar investment commitment in Nigeria and has already been allocated two blocks.
It also proposes to build an export-oriented refinery in Nigeria, which is fairly impressive for a company that is less than a year old.
OMESL however, has had a less stellar record. Except for getting a chief executive officer, the former executive director at Bharat Petroleum, S K Sharma, OMESL hasn't taken off.
But now with Arcelor firmly in his pocket, the Mittal-Midas touch may work magic for his fledging oil business.
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