UPSC Prelims 2006 Q113: Current Affairs – Business & Economy
Recently with which country’s government did ONGC - Mittal Energy Limited (OMEL) sign a
joint - venture deal of $6 billion dealing with infrastructure, refinery and power?
- (a) Colombia
- (b) Venezuela
- (c) Nigeria
- (d) Saudi Arabia
Answer: (c) Nigeria
Explanation
ONGC-Mittal Energy Limited (OMEL) deal
| Country | Link with the OMEL deal |
|---|---|
| Colombia | No |
| Venezuela | No |
| Nigeria | OMEL signed a $6 billion joint-venture deal covering infrastructure, refinery and power |
| Saudi Arabia | No |
ONGC-Mittal Energy Limited signed a $6 billion agreement with the Nigerian government for infrastructure, a refinery and power projects in return for oil blocks.
Answer: (c) Nigeria.
Why each option is right or wrong
- (a) Incorrect. Colombia was not the party to the $6 billion OMEL deal.
- (b) Incorrect. Venezuela was not the party to this OMEL deal.
- (c) CORRECT. OMEL signed the $6 billion deal with Nigeria.
- (d) Incorrect. Saudi Arabia was not the party to this OMEL deal.
Key point
ONGC-Mittal Energy Limited signed a $6 billion joint-venture deal with the Government of Nigeria.
Remember
OMEL signed a $6 billion joint-venture deal with Nigeria.
Common mistakes
- Choosing Venezuela or Saudi Arabia, the better-known oil producers.
- Not recalling the infrastructure-for-oil structure of the deal.
- Confusing OMEL with ONGC Videsh projects in Sudan.
Exam tip
OMEL (ONGC + Mittal) = Nigeria, $6 billion, oil blocks for infrastructure.
Sources
- ONGC Videsh Limited — Annual Report 2005–06 (Nigeria: ONGC Mittal Energy Limited agreement)
- Ministry of Petroleum and Natural Gas, Government of India — Annual Report 2005–06