IndianOil keen on buying ADB stake in Petronet
New Delhi   13-Mar-2008
<img src=/NewImages/Thumbnail/chairmensarthakbheruia1.jpg align=left>State-owned oil refining and marketing firm, IndianOil, has expressed interest in buying out Asian Development Bank's (ADB) 5.2% stake in Petronet LNG Ltd, company chairman Sarthak Behuria said. However, if the state-run promoters of Petronet are not allowed to raise stake in the company for fear of it becoming a public sector unit, Behuria suggested selling ADB's shareholding to the public. Behuria's suggestion may find takers in other promoters-GAIL (India) Ltd (GAIL), Oil and Natural Gas Corp. Ltd (ONGC) and Bharat Petroleum Corp. Ltd (BPCL), which want to block "backdoor" entry of steel czar Lakshmi Mittal into the nation's largest liquefied natural gas (LNG) importing firm. "We have written to Petronet CEO Prosad Dasgupta about our interest in ADB stake and that if that was not possible it should be divested in favour of Indian public," Behuria said. Petroleum secretary M.S. Srinivasan, who is also the chairman of Petronet, is against the four promoters buying ADB's stake and may instead back Dasgupta's move to get Mittal or Chevron Corp. of US on board. Dasgupta had in response to GAIL chairman U.D. Choubey's written request for buying out ADB's stake stated that the multilateral agency's stake should be given to a third party such as Mittal or Chevron, who in exchange are willing to offer LNG to Petronet. IndianOil, GAIL, ONGC and BPCL together hold 50% stake in Petronet. State-owned oil refining and marketing firm, Indian Oil Corp. (IOC), has expressed interest in buying out Asian Development Bank's (ADB) 5.2% stake in Petronet LNG Ltd, company chairman Sarthak Behuria said. However, if the state-run promoters of Petronet are not allowed to raise stake in the company for fear of it becoming a public sector unit, Behuria suggested selling ADB's shareholding to the public. Behuria's suggestion may find takers in other promoters-GAIL (India) Ltd (GAIL), Oil and Natural Gas Corp. Ltd (ONGC) and Bharat Petroleum Corp. Ltd (BPCL), which want to block "backdoor" entry of steel czar Lakshmi Mittal into the nation's largest liquefied natural gas (LNG) importing firm. "We have written to Petronet CEO Prosad Dasgupta about our interest in ADB stake and that if that was not possible it should be divested in favour of Indian public," Behuria said. Petroleum secretary M.S. Srinivasan, who is also the chairman of Petronet, is against the four promoters buying ADB's stake and may instead back Dasgupta's move to get Mittal or Chevron Corp. of US on board. Dasgupta had in response to GAIL chairman U.D. Choubey's written request for buying out ADB's stake stated that the multilateral agency's stake should be given to a third party such as Mittal or Chevron, who in exchange are willing to offer LNG to Petronet. IOC, GAIL, ONGC and BPCL together hold 50% stake in Petronet.