November 22, 2008

Mr Deora hopes to conclude ONGC and Imperial deal in 5 weeks

Mr Murli Deora petroleum minister of India said that India hopes to conclude the acquisition of UK listed Imperial Energy in 4 to 5 weeks.

Mr Deora said that "The deal is subject to Russian Government approval and we are hopeful they will help us.”

When asked how long will it take for Kremlin to approve the deal, he said that "I don't know that. But I am hopeful it will be done in four to five weeks."

Mr Deora said that he has already spoken to Russian President Dmitry Medvedev about Imperial acquisition. If Kremlin approves, Imperial would be biggest overseas acquisition for OVL.

ONGC Videsh Ltd the overseas subsidiary of state-run Oil and Natural Gas Corporation, had last month won approval of Imperial board for its 1,250 pence a share bid for Imperial Energy. OVL is now awaiting approval of Kremlin to takeover the company, which has assets in Tomsk region of the western Siberia in Russia.

The board of Imperial had last month recommended OVL's 1,250 pence a share bid, but it has to win approval of Russian authorities to materialize.