ONGC eyes stake in Russia''s Rosneft

Mumbai: Oil major ONGC may pick up a five-per cent stake in Roseneft, the Russian oil company, by subscribing to its IPO, which opens for subscription early next month.

ONGC proposes the investment through its overseas arm ONGC Videsh (OVL). The IPO would open for foreign investors and institutional investors in the first week of July.

Others in the fray for stakes in the Russian oilfields include British major BP Plc and Chinese giant China National Petroleum Company (CNPC).

Rosneft, Russia''s No 3 oil firm, plans to raise $11.6 billion from an IPO of between 13 and 19 per cent of its stock in London and Moscow on July 14.

The IPO values Rosneft at between $60 billion and $80 billion. A five per cent stake would mean a $3-4 billion investment.

ONGC is interested in a stake in the Sakhalin-3, Vankor or Timano-Pechora oil blocks and, reports said, it is pursuing an active stake in the Russian oil fields.