ONGC Videsh Ltd (OVL), the foreign arm of ONGC is planning to acquire 15% stake in OAO Yamal LNG – subsidiary of Russian based OAO Novatek for developing a natural gas field.

According to Mint, the transaction will also include tie-up for a natural gas liquefaction project and joint marketing of liquefied natural gas (LNG).

OAO Yamal LNG has the licence for exploration and development of the South Tambeyskoye field. Last October France based TOTAL S.A acquired 20% stake in Yamal LNG. OAO Novatek, which owns 80% of the unit, is offering a 29% stake for participating in the project.

Founded in 1994, OAO Novatek is a gas producer and the natural gas producer in Russia. It is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons.

The company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for over 83% of Russia's natural gas production and 16% of the world’s gas production.

ONGC already has a 20% stake in Russia's Sakhalin-1 oil and gas project in the Pacific, which it acquired in 2001 and in 2008 it acquired Imperial Energy in western Siberia for $2.1 billion.

Recently, OVL along with GAIL India was planning to place a joint bid to acquire UK-based energy firm Cove Energy Plc for R6000Cr. Cove and its subsidiaries are engaged in exploration, development, and production of oil and gas reserves in Mozambique, Tanzania, and Kenya.

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