New Delhi: ONGC and Hinduja Group likely to infuse $10 billion for developing oil and gas fields in Iran. The development of South Pars gas field Phase-12 and Azadegan oil field will cost $5 billion each. ONGC''s abroad investment arm, ONGC Videsh Ltd, and Ashok Leyland Project Services Ltd a unit of Hinduja Group, plan to ink an MoU with Naftiran Intertrade Co and Petropars Ltd. ONGC was hoping a return of at least 20 per cent on the investment in the fields. Earlier, there were some concerns like the service contractor having to bear any cost escalations happening after the budget for the field development was fixed. On the domestic front, merchant banker SBI Caps is likely to submit a feasibility report on ONGC''s Rs 25,600-crore export-oriented refinery-cum- petrochemical project at Kakinada. The company has asked incentives, including land free of cost from the State Government to make the project viable.
In fact, Hindujas have evinced interest in buying a majority stake in the refinery project. ONGC''s subsidiary Mangalore Refinery is to hold 26 per cent stake in Kakinada Refinery Petrochemicals Ltd, the company set up to implement the refinery project. IL&FS is to hold 51 per cent stake and the balance is expected to with an Andhra Pradesh Government-named agency.
In fact, Hindujas have evinced interest in buying a majority stake in the refinery project. ONGC''s subsidiary Mangalore Refinery is to hold 26 per cent stake in Kakinada Refinery Petrochemicals Ltd, the company set up to implement the refinery project. IL&FS is to hold 51 per cent stake and the balance is expected to with an Andhra Pradesh Government-named agency.
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