ONGC has finalized investments in two joint venture companies with Mitsui O.S.K. Lines Ltd (MOL). The ventures, Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited, will operate with a 50:50 shareholding. Each Joint Venture will own one Very Large Ethane Carrier (VLEC) to transport ethane from the United States to India.
Joint Venture Formation
Oil and Natural Gas Corporation (ONGC) has partnered with Mitsui O.S.K. Lines Ltd (MOL) to form two joint venture companies: Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited. ONGC holds a 50% stake in both ventures.
Equity Share Allocation
ONGC has been allotted 2,00,000 equity shares for each company, with a face value of ₹100 per share. This allocation was completed through private placement. As a result, ONGC now operates as a 50% Joint Venture Partner with Mitsui O.S.K. Lines Ltd. in both the entities.
Purpose of the Joint Ventures
Each joint venture will own one Very Large Ethane Carrier (VLEC). These carriers will transport ethane from the United States of America. The transported ethane will supply the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary of ONGC. The VLECs shall operate under the Indian flag.
Source: BSE
