NEW DELHI Nov 23 India's state-run Oil and
Natural Gas Corp plans to raise up to $900 million in
the first quarter of 2013 through a dollar bond issue to fund
its acquisition in Azerbaijan, a top official said.
Hess Corp said in September it had agreed to sell
its 2.72 percent stake in the large Azeri, Chirag and
Guneshli(ACG) group of oilfields as well as its 2.36 percent
stake in an associated pipeline to ONGC for $1 billion.
"Currently borrowing in dollars is available at cheaper
rate. Our purchase of assets is in dollar and in our balance
sheet asset and liabilities are shown in dollars," D.K. Saraf,
managing director of ONGC Videsh, the overseas arm of India's
biggest energy explorer, told reporters.
ONGC Videsh Ltd will buy Hess Corp's assets in a
deal it expects to close in the first quarter of 2013, the U.S.
firm said in September. It is subject to Indian and other
regulatory approval, it had said.
A source with direct knowledge of the matter said ONGC
Videsh can borrow up to $750 million under the automatic
approval route and must seek Indian central bank permission to
The bond issue will be the first by ONGC Videsh.
"If we get permission we will raise $900 milion. Otherwise
it will be $750 million," said the source, adding that the
borrowings will be made in January.