* Aims to close Azerbaijan deal by end-Feb -company source
* To issue a mix of of 5-year and 10-year bond -source
* Hopes to get govt's approval for Kashagan deal-ONGC Chair
By Nidhi Verma
NEW DELHI, Jan 31 India's ONGC Videsh Ltd (OVL),
a unit of explorer Oil and Natural Gas Corp, will
launch its first overseas bond issue in February to raise about
$900 million to fund an acquisition in Azerbaijan.
India's cabinet on Thursday approved the company's plan to
buy Hess Corp's 2.72 percent stake in the Azeri, Chirag
and Guneshli (ACG) group of oilfields, as well as its 2.36
percent stake in an associated pipeline to ONGC for about $1
OVL, the overseas investment arm of ONGC, has hired RBS,
Citigroup and Deutsche Bank for the fundraising, managing
director D. K. Saraf told Reuters.
Separately a company source said OVL aims to close the
Azerbaijan deal by the end of February.
"OVL will raise the funds with the backing of ONGC. It will
be a mix of 5-year and 10-year bonds," the source said.
India, the world's fourth-biggest oil importer, is scouting
for overseas oil and gas assets to feed its expanding refining
ONGC in November agreed to buy an 8.4 percent stake in
Kazakhstan's Kashagan field, the biggest oilfield discovery in
over four decades, from ConocoPhillips.
ConocoPhillips' partners in Kashagan field - Italy's Eni
, ExxonMobil, Inpex Corp of Japan,
Royal Dutch Shell and France's Total - have
not exercised their pre-emptive rights, said the source.
Now, Kazakhstan has six months to decide on the deal.
Kazakhastan's state-owned KazMunaiGaz (KMG), which owns
16.81 percent stake in Kashagan consortium, has 'displayed
interest' in buying ConocoPhillips' stake in the project, its
chief executive said in October.
Kazakhstan, home to 3 percent of the world's recoverable oil
reserves, has moved to exert greater management control and
secure bigger revenues from foreign-owned oil and gas
KMG has bought a 24.5 percent stake held by ConocoPhillips
in the offshore oil block Nursultan in the Caspian, a company
statement said on Wednesday.
But, ONGC Chairman Sudhir Vasudeva is hopeful that
Kazakhstan will approve its stake buy proposal. OVL also holds a
25 percent share in the Satpayev block in Kazakhstan.