Oil & Natural Gas Corporation  and Mittal Investments Sarl, an investment arm of the Laxmi Nivas (LN) Mittal Group, have entered into an agreement to form to overseas joint ventures -- ONGC Mittal Energy Ltd and ONGC Mittal Energy Services Ltd.

The joint ventures will aim at trading of oil and gas in overseas market with an ultimate aim of providing energy security to India.

ONGC Mittal Energy Ltd. (OMEL)

Partners: ONGC Videsh Ltd (a 100 per cent subsidiary of ONGC) and Mittal Investments Sarl
Equity stake: OVL (49.98 per cent), Mittal Investments Sarl (48.02 per cent), ICICI (2 per cent)
Objective: Targeting oil and gas opportunities in Central Asian and African countries

ONGC Mittal Energy Services Ltd. (OMESL)

Partners: ONGC and Mittal Investments Sarl
Equity stake: ONGC (49.98 per cent), Mittal Investments Sarl (48.02 per cent), ICICI (2 per cent)
Objective: Trading and shipping of oil and gas (including LNG) sourced through OMEL

Initially, both ONGC and Mittals will put an equity participation of $50 million each in the joint ventures, it is learnt.

The deal aims at securing energy security for the country through global resources. The joint ventures would foray into Canada-based PetroKazakhstan and Nigeria, to begin with. The joint venture companies are likely to be set up in a European Union country, most probably Cyprus.