ONGC to raise $20 billion for overseas acquisitions: report

Mumbai: State-run explorer Oil and Natural Gas Corporation (ONGC) is planning to build a $20 billion war chest for major oil and gas property acquisitions overseas, The Financial Express reported, quoting its chairman.

ONGC is expected to finalise agreements in Turkmenistan, Iran, Latin America and West Africa, the paper quoted RS Sharma as saying.

"ONGC has the appetite and the ability to fund its acquisition plans," Sharma told the paper.

"I would like to fund such acquisitions by way of borrowed funds. However, if I have my own funds, I would first like to use them instead of borrowing," the paper cited him as saying.

ONGC had cash surpluses of around $4 billion and could raise $10 billion more in a short time, so it could put together $20 billion within six months, he said.

ONGC-Mittal Energy joint venture this week won an exploration block in Trinidad and Tobago with estimated gas reserves of 2 trillion cubic feet.