ONGC to raise $1 billion to refinance Imperial Energy deal

Oil and Natural Gas Corporation Ltd. (ONGC) will raise $1 billion to refinance the debt that ONGC Videsh (OVL), the overseas arm of state-run oil explorer had taken to fund the acquisition of UK's Imperial Energy.

ONGC plans to raise $200 million through foreign currency loans and $800 million through bonds and commercial paper, ONGC's finance director D K Sarraf told Dow Jones Newswires today.

The oil and gas explorer plans to do the fundraising in a month.

ONGC had successfully made a $1.9 billion bid for London-listed Imperial Energy in December 2008, after fending off rivals like China's Sinopec and KNOC of Korea. (See: ONGC completes acquisition of Imperial Energy)

With 10,000 barrels per day of current production, Imperial has a growing portfolio of oil and gas interests in Russia's West Siberia region and has recoverable reserves of around 900,000 barrels.

It also has oil assets in the Tomsk region of western Siberia in Russia and north-central Kazakhstan.