MoneyWorks4Me

ONGC to sell dollar bonds to fund stake purchase in Azerbaijan oilfields

21 Nov 2012 Evaluate

Oil & Natural Gas Corporation (ONGC), Country’s biggest energy explorer, is planning to sell dollar bonds to fund the $1 billion acquisition of a stake in oilfields in Azerbaijan. This comes in the wake of Hess Corp agreeing to sell its 2.72% stake in the large Azeri, Chirag and Guneshli(ACG) group of oilfields as well as its 2.36% stake in an associated pipeline to ONGC for an amount summing up to $1 billion.

Further, company’s overseas investment arm, ONGC Videsh, will purchase these assets in a deal, which is expected to close in the first quarter of 2013, subject to Indian and other regulatory approval.

Peers
Company Name CMP
ONGC 235.75
Oil India 488.65
Jindal Drilling&Inds 616.70
Deep Industries 750.65
Aban Offshore 14.49
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