12 Aug 2009 12:51

ONGC may bid for Repsol subsidiary in Argentina with Rosneft, Lukoil or Gazprom

MOSCOW. Aug 12 (Interfax) - Indian ONGC is in talks with Rosneft , Lukoil and Gazprom on a possible joint acquisition of YPF, the Argentinian division of Repsol YPF, the Economic Times reported.

Repsol owns 84% of YPF. It is not clear what stake ONGC is seeking. Repsol's entire YPF stake is valued at about $17 billion. ONGC has $5 billion in cash.

The newspaper's sources say ONGC Videsh, the subsidiary conducting the talks, plans to select just one partner for the YPF buy. ONGC officials have declined to comment on any purchase plans.

Repsol YPF was formed in 1999 through the merger of Spanish Repsol and YPF. The group operates in 30 countries, including Spain, Argentina, Peru, and Brazil. It produces about 1 million barrels of oil equivalent a day and operates 6,500 filling stations.

Repsol YPF posted a net profit of 889 million euro in the first half of 2009. Net debt amounted to 10.405 billion euro at the end of June.