Monday, August 21 2006 12:04 Hrs (IST) - World Time -

New Delhi: Steel tycoon Lakshmi N Mittal may have muscled acquisition of European giant Arcelor but his ambition to make it big in oil and gas sector is coming unstuck as his partner ONGC appears not keen on a venture the two giants had agreed last year.

Mittal last week wrote to the Government about delays in shaping up of ONGC-Mittal Energy Services Ltd (OMESL), a JV company that was to trade and ship oil and gas (including LNG), industry sources aid.

After the exit of high-profile Subir Raha, the brainchild of the coming together of India's largest oil and gas producer and world's largest steel maker, ONGC has reversed several decisions of the July, 2005 MoU.

Sources said ONGC has refused deputation of its employees to the ONGC-Mittal Energy Ltd (OMEL) the company formed to acquire oil and gas properties abroad and OMESL.

It has also reversed the decision to open an office in Delhi, soucres said adding the Indian firm this month cancelled interviews for recruitment of professionals to OMEL.

The Mittal letter pointed to delays on the part of ONGC to register oil companies with OMESL,a pre-requisite to begin trading in crude oil and petro products.

Frustrated at the delays, Mittal is beleived to have begun talking to global giants like Chevron, Exxon Mobil for an oil trading venture.

Soures said ONGC was willing to continue with OMEL but with a skeletal staff. On OMESL, the PSU' new management has privately said the oil-trading business does not form its core competence and would therefore prefer to exit from it.