Indian government to trim ONGC, IOC stakes

The Indian government plans to cut its stakes of two major oil companies but to retain controlling interests.

Aug. 6, 2010

By OGJ editors
HOUSTON, Aug. 6 – The Indian government plans to cut its stakes of two major oil companies but to retain controlling interests.

According to The Times of India, Oil Sec. S. Sundareshan said the Finance Ministry has approved divestment of a 5% interest in Oil & Natural Gas Corp., India’s largest oil and gas company, and a 10% stake in Indian Oil Corp., operator of eight refineries.

IOC plans a separate sale of shares to raise funds.

After the transactions, which are subject to further approvals, the government shares would be 69.14% in ONGC and 64.57% of IOC, the newspaper said.