ONGC in race for stake in Repsol -YPF's Argentinean arm

Oil and Natural Gas Corporation of India is reported to be vying for a stake in the Argentine unit of Spanish oil major Repsol-YPF. (See: CNPC, CNOOC to bid for Repsol -YPF's Argentinean arm).

Spanish newspaper La Gaceta has reported that ONGC and Russian firms are interested in acquiring a stake in the Argentine unit of the Spanish oil major, in which Chinese firms are keen to have a stake.

Last week Chinese media reported that China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) were looking to acquire a stake in Argentine YPF, in a deal that could be as high as $17 billion. (See: CNPC, CNOOC to bid for Repsol -YPF's Argentinean arm)

Interestingly, despite being Chinese state-owned, CNOOC and CNPC are reported to be battling for approval from China's National Development and Reform Commission, which often decides on the state firms that are to be allowed to bid for foreign assets

CNOOC is said to be more keen for a cooperation deal in the Argentine company rather than an outright acquisition.

However, yesterday, the South China Morning Post, citing unnamed sources reported that CNPC has made an offer between $13.2 billion and $14.5 for a 75 per cent stake in Argentine YPF.

According to the paper, officials from CNPC and Repsol have started negotiations on the initial offer made by CNPC and the board of Respol has responded positively to the Chinese offer.