Oil India will compete with ONGC Videsh in the race to buy the $2.5 billion Russian oilfield major Udmurtneft. While OIL has teamed up with Russian North-Western Oil Group, ONGC Videsh is looking to rope in Russian major Itera.
Samaresh Kumar Patra, director (exploration and development), OIL said: "We are working on the project and expect to finalise the bid details shortly.
The financial strength of our partner North-Western Oil Group has to be studied. Besides, we need to evaluate the assets of Udmurtneft."
A source close to the development said, OIL-North-Western Oil combine would go for aggressive bidding for the TNK-British Petroleum-owned Udmurtneft. If required, the combine would not mind paying at least $20 million more than any other bidder, sources added.
Itera, the largest independent producer and trader of natural gas in the CIS and the Baltic states, has announced that it would hold 51 per cent stake in the special purpose vehicle to be created for the bidding. The remaining 49 per cent stake will be with ONGC Videsh, the foreign arm of the country's largest company Oil and Natural Gas.
Udmurtneft, which started operations in 1969, has produced 5.8 million tonne oil in 2004 and has reserves equivalent to one billion barrels.
The company has developed 23 fields in Udmurtia, a Russian republic, accounting for 60 per cent of the oil production in the region. TNK-BP holds 96.9 per cent of Udmurtneft, which promotes 19 subsidiaries as well as a handful of independent companies.
Industry sources said China National Petroleum Corporation has withdrawn from the race. United Oil Group, a part of the Bazovy Element group, placed an early bid for the buyout. The two other bidders who will be in the fray are the Itera-OVL combine and the North-Western Oil Group-OIL.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
More from rediff