ONGC Videsh Limiteds acquisition of Imperial Energy Plc.

Submitted by Bhavana Chavan Mandar Warang Neeraj Ashtivkar Nimesh Jain Pratik Motiwala Pratiksha Supriya Submitted to Prof. Mahalakshmi

Kohinoor Business School

Summary The boards of OVL and Imperial Energy have reached agreement on the terms of a recommended pre-conditional cash offer, to be made by Bidco, for the entire issued and to be issued ordinary share capital of Imperial Energy (the Share Offer). The boards of OVL and Imperial Energy have also reached agreement on the terms of a recommended pre-conditional cash offer for the Imperial Energy Convertible Bonds (the Convertible Bond Offer, together with the Share Offer, the Offers) under which Bidco will offer to acquire the Imperial Energy Convertible Bonds. The Offers together value the entire issued and to be issued ordinary share capital of Imperial Energy at approximately 1.4 billion. Bidco is a wholly-owned subsidiary of OVL incorporated in Cyprus formed for the purpose of making the Offers. OVL is a wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the largest oil and gas exploration and production company in Asia. ONGC is listed on the National Stock Exchange and the Bombay Stock Exchange in India. The primary business of OVL is the exploration and production of oil and gas outside India. Imperial Energy is an independent upstream oil exploration and production company focused on the Commonwealth of Independent States and, in particular, the Russian Federation. Imperial Energy is listed on the Official List of the London Stock Exchange. Under the terms of the Share Offer, Imperial Energy Shareholders will be entitled to receive 1,250 pence in cash for each Imperial Energy Share held, representing a premium of approximately: 61.9 per cent. to 772 pence being the closing mid-market price per Imperial Energy Share on 11 July 2008 (being the last Business Day prior to the announcement that Imperial Energy had received an approach and the commencement of the Offer Period); and 36.3 per cent. to approximately 917 pence being the average closing midmarket price per Imperial Energy Share from 6 May 2008 (the day the Imperial Energy Shares commenced trading ex-rights following the rights issue announced by Imperial Energy on 16 April 2008 (the Rights Issue)) to 11 July 2008.

 Under the terms of the Convertible Bond Offer, Imperial Energy Convertible Bondholders will be entitled to receive 60,367.53 in cash for each US$100,000 principal amount of the Imperial Energy Convertible Bonds. This reflects the adjusted exchange price of the Imperial Energy Convertible Bonds which applies in the event of a change of control of Imperial Energy. The posting of the Offer Document is pre-conditional on certain regulatory clearances being obtained. The Imperial Energy Directors, who have been so advised by Merrill Lynch and RBS Hoare Govett, consider the terms of the Offers to be fair and reasonable. In providing their advice, Merrill Lynch and RBS Hoare Govett have taken into account the commercial assessments of the Imperial Energy Directors. Merrill Lynch is acting as the independent financial adviser to Imperial Energy for the purposes of providing independent advice to the Imperial Energy Directors on the Share Offer under Rule 3 of the City Code. Accordingly, the Imperial Energy Directors intend unanimously to recommend that Imperial Energy Shareholders accept the Share Offer as the Imperial Energy Directors (including Peter Levine who holds beneficially 6,268,000 Imperial Energy Shares representing approximately 6.1 per cent. of the existing ordinary share capital of Imperial Energy) have irrevocably undertaken to do in respect of their entire beneficial holdings in Imperial Energy, amounting to, in aggregate, 6,414,734 Imperial Energy Shares, representing approximately 6.3 per cent. of the existing issued ordinary share capital of Imperial Energy. Furthermore, the Imperial Energy Directors intend unanimously to recommend that Imperial Energy Convertible Bondholders accept the Convertible Bond Offer. Commenting on the Offers, Peter Levine, Executive Chairman of Imperial Energy, said: Imperial Energys Directors are pleased to have been able to reach agreement with OVL and intend unanimously to recommend shareholders accept the proposed offer, which reflects a fair value and marks a premium of 62 per cent. Since the day before Imperial Energy first announced it had received an approach. Imperial Energy has grown significantly from a pure exploration company and as Imperial Energy moves into the next phase of its development, with production increasing further over the coming years, it makes strategic sense to be part of a larger group. The Share Offer fairly reflects Imperial Energys achievements and represents an excellent opportunity to realise a compelling value in cash.

I would like to thank all of our investors for their support in allowing us to progress from AIM with a market capitalisation of approximately 2 million in 2004 to a FTSE 250 company with a value, based on the offer, of over 1.4 billion just four years on and becoming one of the most successful E&P companies on the London Stock Exchange. Commenting on the Offers, R.S. Butola, Managing Director of OVL, said: We are delighted that the Imperial Energy Directors have taken the unanimous decision to recommend our offer. The acquisition represents an important addition to OVLs operations and we believe OVLs financial strength and technical expertise will further enhance the attractive growth potential of the business in the Tomsk region. Additionally, we view this as an important opportunity to expand on the continuing co-operation between Russia and India in the energy sector. We have been impressed with current managements track record to date and look forward to working closely with Imperial Energys employees to develop the business in the future. 96.8% acceptances received from Imperial Energy shareholders OVL declares both share and convertible bond offers now wholly unconditional Acquisition will provide OVL with the opportunity to establish presence in Western Siberia, one of the world's largest oil and gas producing regions, by acquiring an asset with significant long-term production and reserves potential OVL looks forward to both developing the Imperial Energy licences and growing its asset base by participating in upcoming auctions for licence blocks close to Imperial Energy's existing blocks. OVL announces that its offer to acquire Imperial Energy PLC was declared wholly unconditional yesterday with all conditions now being satisfied or waived. As at 1:00pm (London time) on 30 December 2008, Jarpeno Ltd ("Jarpeno"), a wholly owned subsidiary of OVL, had received valid acceptances from Imperial Energy shareholders in respect of 99,241,110 Imperial Energy shares, representing approximately 96.8 per cent. of Imperial Energy's existing issued share capital. This acquisition highlights the strategy of OVL and ONGC, supported by its largest shareholder, the Government of India, of acquiring oil and gas assets which provide stable cash flows from proved and probable reserves and offer long-term growth from well-balanced exploration portfolios. Western Siberia is one of the world's most prolific hydrocarbons basins and,

with major logistics and infrastructure in place, OVL intends to use Imperial Energy as the platform around which to build a wider Western Siberian focused business. This addition to OVL's global portfolio, which spans across North Africa, Latin America and Southeast Asia, provides OVL with the opportunity to expand its presence in Russia beyond its participation in the Sakhalin project and will further enhance its position as one of the industry's leading exploration and production companies. ONGC Videsh Limited (OVL), a wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), has completed the acquisition of Imperial Energy Corporation PLC, a UK-based oil and gas exploration and production company, for $2,100 million. ONGC is an India-based oil and gas company. Update on December 30, 2008: OVL has received the valid acceptances in respect of 99.24 million Imperial Energy shares, representing approximately 96.8% of existing issued share capital. All the conditions of the share offer have been satisfied and declared wholly unconditional. The share offer will remain open for acceptance until further notice. The settlement of the consideration to which any Imperial Energy shareholder is entitled under the share offer will be made either on or before January 13, 2009. Update on December 10, 2008: The Cabinet Committee on Economic Affairs has approved the acquisition of Imperial Energy Corporation, a UK-based oil and gas exploration and production company, by OVL. OVL has made the recommended cash offer of GBP12.5 per share in cash for the entire issued and to be issued ordinary share capital of Imperial Energy. Update on November 7, 2008: The Federal Anti-Monopoly Service of the Russian Federation has approved the proposed acquisition of Imperial Energy by OVL. Announcement (August 26, 2008): The boards of OVL and Imperial Energy Corporation have reached an agreement on the terms of a recommended preconditional cash offer for the entire issued and to be issued ordinary share capital, and convertible bonds of Imperial Energy. Under the terms of the share offer, Imperial Energy shareholders will be entitled to receive GBP12.5 in cash for each Imperial Energy share held, representing a premium of approximately 61.9% to GBP7.72 being the closing mid-market price per Imperial Energy share on July 11, 2008, being the last business day prior to the announcement, and 36.3% to approximately GBP9.17 being the average closing mid-market price per Imperial Energy share from May 6, 2008 to July 11, 2008. Under the terms of the convertible bond offer, Imperial Energy convertible bondholders will be entitled to receive GBP 60,367.53 in cash for each $100,000 principal amount of the Imperial Energy convertible bonds. The offers together value the entire issued and to be issued ordinary share capital of Imperial Energy at approximately GBP 1,400 million. Update on August 22, 2008: According to Reuters, the Business Standard reported that a government panel has approved

the ONGC's bid to acquire Imperial Energy. ONGC has submitted an initial bid of GBP12.90 per share, or about $2,960 million. Update on August 4, 2008: According to Dow Jones Newswires, China Petrochemical Corporation (Sinopec Group), an integrated energy and chemical company, may bid for Imperial Energy. Imperial Energy has confirmed that the company has received another approach in relation to a possible cash offer. Update on July 22, 2008: According to Reuters, Eurasian Natural Resources Corporation PLC (ENRC), a company engaged in mining, processing, power and logistics operations, is planning to acquire Imperial Energy at GBP12.90 per share. Update on July 15, 2008: Imperial Energy has confirmed that the company is in discussions in relation to a possible cash takeover offer at a price of GBP12.90 per share. The discussions may or may not result in a takeover bid by the potential offeror. Rumor (July 14, 2008): According to Times of India, ONGC may acquire an equity interest in Imperial Energy for approximately GBP1,320 million. The potential offer represents a premium of 42% on July 14, 2008. Deutsche Bank AG is acting as financial advisor and corporate broker and College Hill is acting as PR advisor to OVL. Merrill Lynch & Co., Inc. and RBS Hoare Govett are acting as lead financial advisors and joint corporate brokers and Pelham Public Relations is acting as PR advisor to Imperial Energy. Linklaters LLP is acting as legal advisor to OVL. Ashurst LLP is acting as advisor to Imperial Energy. Deal Value (US$ Million) 2100Deal TypeAcquisitionSub-Category100% AcquisitionDeal StatusCompleted: 2009-01-13 Deal Participants Target (Company) Imperial Energy Corporation PLCAcquirer (Company) ONGC Videsh Limited Deal Rationale This deal would strengthen ONGC's overseas presence. The acquisition would provide the company an opportunity to enter the promising Tomsk region for oil exploration. At the same time, it will also give an opportunity to expand its relations with Russia in the field of oil exploration. Bid Premium ($ per share)61.9

Balance Sheet of ONGC Videsh Ltd. (rs. in million) 2010-11 2009-10 186832 137414 49418 22049 464 26905 10000 145530 269.05 153828 113787 40041 18889 256 20896 10000 116449 208.96

Particulars Total Income Expenditure Profit before tax Provision for tax (including deferred tax) Share of profit minority interest Profit after tax Paid up Equity share capital Net worth Earning per share of Rs.100 each

6.4.1 Imperial Energy Your company acquired Imperial Energy Corporation Plc., an independent upstream oil Exploration and Production Company having its main activities in the Tomsk region of Western Siberia, Russia on 13th January, 2009 at a total cost of USD 2.1 billion. Imperials interests comprise of seven blocks in the Tomsk region i.e. Block 69, 70, 74, 77, 80, 85 and 86 with a total licensed area of approximately 16,800 square kilometres. The Production licenses were granted to the Company during 2005 to 2008 and are valid till 2028 to 2031. As on 1st April 2011, OVLs share of 2P reserves in the project was 110.894 MMT (O+OEG). The post-acquisition developmental plans of Imperial Energy, which included the drilling of 76 wells and construction of facilities, has resulted in the ramping up of its oil production to above 18,500 bopd in June 2011 from around 6,000 bopd at the time of acquisition. On the exploratory front, a total of 21 exploratory/ appraisal wells have been drilled since 2009 till May 2011, while seven more wells are planned to be drilled during 2011. Further 165 sq.km of 3D seismic data and 1650 lkm of 2D seismic data was acquired, processed and interpreted. In 2011, 65 sq.km 3D seismic and 766 lkm 2D seismic data has been acquired and is currently under processing. The exploratory campaign also focused on extensive G&G studies by internationally reputed external agencies to develop & study the exploration/exploitation models and recommend new techniques for exploitation. The exploration efforts have resulted in the discovery of three new fields, extension of two currently producing oilfields, up gradation of reserves from 3P to 2P in one of the oilfields and addition of several new pay zones to existing fields. OVLs share in the oil production was 0.770 MMT during 2010-11 as against 0.543MMT during 2009-10. The Company has invested approx. USD 2,449 million till 31st March 2011 in the project. (Extract from OVLs Annual Report 2010-11)

History of ONGC The Oil and Natural Gas Commission (ONGC), India's largest petroleum exploration and production entity, is organized as a state statutory body rather than a public company, but is run on a profit-making basis with these revenues flowing to the Indian Exchequer. In 1989-1990 ONGC claimed to have posted the biggest profit in "India's corporate world." ONGC and the state-owned company, Oil India Ltd., are responsible for most of the exploration and production of crude oil and gas in the country. A separate state-owned company, the huge Indian Oil Corporation, is predominant in refining, trading, and marketing. The ONGC and other state-owned oil companies trace their origins back to a 1948 resolution by India's newly independent government. The Industrial Policy Resolution of 1948 specified that all new units in the Indian oil industry would be government-owned, unless specifically authorized. In December 1955 an Oil and Natural Gas Directorate was set up within the Ministry of Natural Resources and Scientific Research to specialize in exploration. Early in 1956 its status was changed to a commission. In October 1959 the ONGC was made a statutory body by an act of parliament. The decision to create ONGC as a state-controlled body and, eventually, to bring most of the rest of the oil industry under government control, was based not just on ideology, but on the need to prevent a drain on foreign exchange and control by a group of foreign-owned oil companies that were predominant in the country. Before independence and immediately afterward foreign companies exercised a powerful control over the production and supply of petroleum substances vital to the country's industrial development. Prior to independence, it was widely believed that India lacked large-scale commercial deposits of oil and gas. Many of India's needs were supplied by other parts of the British Empire, Persia, the Dutch East Indies, and Russia. Kerosene was the most important petroleum product in a country with few cars. Burma, then an administrative part of India, was known to have significant deposits, which sometimes derived from shallow, hand-dug wells. In 1947 both Burma and Pakistan--the latter with one discovered field--went their own ways. India was left with only one major producing field--Digboi, Assam--which had been discovered in 1890. Despite extensive surveys throughout Assam, no other fields of any significance had been discovered. Digboi and its local refinery had been of profound strategic significance after the fall of Burma in 1942. It had furnished oil to Allied air bases from which supplies were flown to China. It

would take several years for India's new leaders to learn the strategic and economic importance of domestic oil supplies. During World War II, petroleum supplies were regulated by a committee in London, and prices were set in India by a committee chaired by Burmah-Shell. Wartime rationing continued until 1950, and a shortage of oil products continued to be exacerbated by the limited domestic production and refining facilities. Relations with Burmah-Shell and other foreign companies continued to sour after independence in 1947. They advised India against building its own refinery on the grounds that it could only be run at a financial loss. India's vulnerability to the pressures of the international oil market became clear after 1950, when the Iranian political leader Mussadegh nationalized a huge refinery at Abadan that Burmah-Shell had previously used to supply much of India's needs. Iran was in the sterling area, and when this source was cut off India was forced to use its scarce dollar reserves to buy oil elsewhere. The foreign companies were then persuaded to build two refineries, but the government remained skeptical about the costs of oil exploration. After the war, the Assam Oil Company, a subsidiary of British-owned Burmah Oil, had resumed exploration with little success. Assam finally achieved a major find at Nakhortiya in 1953, but a row ensued between Burmah and the government. The government refused Burmah any right to refine or market this oil and would only allow the company joint ownership in production. As a result Burmah refused to undertake further exploration. Soon afterward, the government claimed Burmah-Shell and other foreign companies were charging excessive prices for imported oil. A controversy ensued over the companies' refusal to refine imported Soviet oil. These controversies helped lead to the creation of ONGC. Burmah retained control of Digboi but development in the other Assam fields was taken over by a new company, Oil India Ltd., of which the government owned one-third and Assam Oil held two-thirds. By 1981, the Indian government had acquired 100% of Oil India. Burmah and Oil India were originally confined to the Assam fields, where ONGC was excluded. After 1956 no new concessions were granted to foreign companies for onshore exploration. ONGC became the principal exploration company in India. A Soviet consultant and several Soviet geophysicists were engaged. At first, exploration and drilling with equipment provided by the Soviet and Romanian governments yielded disappointing results. The Indian financial press criticized ONGC and the government for wasting the taxpayers' money. But this attitude began to change after an important find at Cambay, Gujurat, in 1958. A chain of new finds followed.

Soviet and Romanian experts became enthusiastic about India's potential reserves. They estimated that 42% of the country's land area was composed of oil-yielding sedimentary rock with even more lucrative possibilities offshore. Soviet-supplied exploration and production technology, however, was widely regarded as inferior, and the government looked for other sources of assistance, especially after a 1963 offshore exploration revealed promising structures beneath the Gulf of Cambay. In 1959, the government had revised legislation to make it easier for foreign companies to undertake exploration work in some areas without the participation of ONGC. However, the government's preference for agreements in which explorers accepted a majority government stake in the crude-producing company was known. The government launched a campaign to persuade foreign companies to undertake exploration. The French Institute of Petroleum provided some assistance, and some contracts were given to French and Italian firms. Press reports indicated that Shell, Caltex, Gulf, and Esso were interested, but in the end there were no major deals. There were more lucrative fields elsewhere, with fewer government conditions made. With limited technology and Soviet help, ONGC's progress in developing new wells and in production was slow during the 1960s. The government's inability to attract foreign investment came under frequent criticism. More promising offshore geological structures were found during systematic surveys by the Soviet ship Akademic Arkhangeleisky during the period 1964-1967. Finally, in 1974, ONGC discovered the major Bombay High offshore field with a strike from the advanced Japanese-built Sagar Samrat drilling platform. The strain on foreign exchange caused by the 1973 Arab oil boycott brought a redoubling of exploration efforts. Further offshore oil and gas was discovered at Godavari and gas off Portonovo and the Andaman islands in 1980. The importance of ONGC's new gas discoveries was underscored by the government's decision in 1984 to set up the separate Gas Authority of India Ltd. (GAIL) to process, market, and distribute all forms of natural gas. After the government acquired the remaining foreign interests of Burmah in the Assam Oil Company in 1981, Oil India Ltd. was given an expanded role as the second public sector undertaking engaged in oil exploration and production. Previously, Oil India had been restricted to eastern areas of the country. ONGC seeks to help the country achieve self-reliance in oil-related equipment, materials, and services. ONGC has tried to speed up this indigenization by working with a consortium of Indian firms that includes Hindustan Shipyard

Ltd., Burn Standard Company Ltd., Confederation of Engineering Industry, and Larsen & Toubro. The company reports that this progress has resulted in the domestic industry supply of over 50% of the oil industry's equipment and materials requirements. In its early days, ONGC experienced difficulties in obtaining up-to-date petroleum technology. It has assigned a high priority to research and technology, which the company states are now on a level with that used in explorations anywhere in the world. ONGC's research efforts date back to the founding of its Kashava Malaviya Institute of Petroleum Exploration in Dehra dun in 1963. The Malaviya Institute is responsible for applied research in petroleum geology, geophysics, and well logging techniques. ONGC has six other research bodies. ONGC's policy is to run these institutes as profit centers. Exploration efforts have been expanded to many new areas including KrishnaGodavari, Cauvery, Tripura, Cachar, Dhansiri Valley, and Ravasan. The number of active rigs grew from 41 in 1981 to 144 in 1990. Future plans include the Ganges Valley, Himalayan foothills, Bengal, Kerala, and Konikan. Offshore, the firm's deep water unit has been formed to function as the central agency for planning, programming, and implementing exploration in deep water along India's coasts. As the government's agency, ONGC has presided over an increasingly liberalized policy of encouraging foreign oil companies to explore offshore and they have responded with increasing interest. In 1987, the Indian government invited foreign oil companies to bid for 27 offshore exploration blocks in the third round of initiatives to encourage foreign investment in India's offshore industry. This effort was made more successful than the previous rounds in which many companies refused to participate because they alleged that the government had reserved the most favorable sites for ONGC and Oil India. Twelve bids for nine blocks covering a total of 121,000 square kilometers were received from seven companies. Chevron, Texaco, Broken Hill Proprietary of Australia, and International Petroleum of Canada eventually signed deals allowing them to put 40% equity in a joint venture or to pull out if seismic data were not promising. In 1990, the government announced plans for a fourth round. Private Indian companies would be allowed to acquire concessions for the first time, but there are no current plans to privatize ONGC itself. In 1989 ONGC signed a joint exploration agreement in the Gulf of Thailand, signed drilling contracts with National Iraqi Oil Company, and raised money in the Tokyo and Swiss bond markets. In 1981-1982, the ONGC redefined its goals and objectives and prepared a corporate plan spanning 20 years from 1985 to 2005; more recently, this plan

has been updated to 2015. The emphasis is on accelerated exploration and production strategies. From 1990 production levels of about 30 million tons of crude oil it envisages by 2015 production of 75 million tons. Over the 1980s and early 1990s, ONGC has shown steady growth in crude oil and gas production, rig counts, profits, and contributions to India's exchequer. India hopes to achieve self-sufficiency in fuel by the year 2005. As the company most active in the western offshore, India's most important oil and gas area, ONGC is essential to this task. History of Imperial Energy Imperial Energy is an upstream oil exploration and production company focused on Russian Federation. The Company was founded by a group of Russian and foreign investors as an independent middle size oil producer in 2004. Through a series of acquisitions, by the end of 2004, the company had controlling stakes in four license-holding companies, three of which had exploration acreages in the Tomsk area of Western Siberia and one near Kostanai in Kazakhstan. Imperial Energy held a vast program of exploration works which has led to 7 new fields discoveries in Tomsk region. Thanks to its strategy, Imperial rapidly moved from being a junior oil and gas exploration company to an exploration and production organization. Imperial Energy is a company of international level. In 2004 Imperial Energy listed its shares on Londons AIM exchange, then moved to the main LSE market in May 2007 and became a constituent of the FTSE 250 Index. The company was acquired by ONGC Videsh Limited (OVL), the overseas arm of Oil and Natural Gas Corporation (ONGC), the flagship National Oil Company of India on 13th January, 2009 and the company was delisted from LSE on 9th March 2009. In 2006, IEC established its own drilling company, RUS IMPERIAL GROUP (RIG), which now operates three heavy duty drilling rigs, three workover rigs and a coiled tubing unit. Shortly IEC also owned 50% of Imperial FracService (IFS) that provides hydraulic fracture services to improve production in its fields and service to the third parties. During the period 2007-08, IEC built 367 km of pipeline infrastructure connecting its fields to the Transneft pipeline system. Prior to its pipeline completion, IEC was selling all of its oil at the wellhead to local off-takers for

use in the Russian domestic market. The completion of pipelines enabled Imperial Energy to transport its oil to both domestic and export markets. Consequences The $2.1-billion acquisition of Imperial Energy by ONGC Videsh (OVL) more than two years ago is fast turning out to be a liability for the company. At a time when crude oil prices are soaring, OVL is neither able to make enough money to justify the acquisition nor is it able to find takers for the company. OVL had bid for Imperial, which has assets in Russia, in July 2008 when crude oil was averaging $122 a barrel and the deal was closed in December that year. The company estimated that it could make the promised money (10 per cent internal rate of return) from the asset if crude oil moved beyond $83 a barrel. Investments were made to push up the production from as low as 8,000 barrels per day at the time of the deal, to 32,000 bpd by 2011-12. The peak production is estimated to be 80,000 bpd. Two years down the line, crude oil prices have not only moved up but compared to 2008 they have stayed over $100 a barrel for a longer duration. However, except for a marginal improvement in production from 16,000 bpd in mid-2010 to 19,000 bpd, which is simply not enough to reach anywhere near the originally projected returns, Imperial's troubles continue. Difficult asset It's a very difficult asset, says a company official, adding that there is little hope of scaling up the output to 32,000 bpd in the foreseeable future. Leave aside the technical problems, even the weather window is not on our side, the official said. Recently, the Comptroller and Auditor-General (CAG) passed adverse remarks on the deal underlining the differences between the promises and reality of this acquisition. According to CAG, the reserves of Imperial were inflated and reduced by OVL post-acquisition. Russian tax According to ONGC sources, apart from the technical issues, the steep Russian tax structure, which practically retains most of the revenues generated for crude prices above $30, should also be blamed for the low returns. New Delhi reportedly initiated discussions with the Russians nearly a year ago to solve the tax puzzle but without much headway, so far.

Exit from the asset also appears to be difficult as there are not many takers for the same. Who will buy it? said an ONGC official when asked why the company should not call it quits from Imperial. We are trying to reduce the losses by roping in a Russian upstream company as partner, he suggests. The search has been on for nearly a year now. And, no one in the company is ready to put a deadline for such a deal.

Bibliography ONGCs Annual Report 2009-10, 2010-11 OVLs Annual Report 2010-11 http://www.thehindubusinessline.com/companies/article1764006.ece http://www.oilvoice.com/n/Imperial_Energy_Shareholders_Accept_ONGC_Vid esh_Offer/e9453714.aspx http://www.ongcvidesh.com/Reports/13_27Sep10.pdf http://www.livemint.com/2008/12/31223006/ONGC-acquires-ImperialEnergy.html