Russian Energy Minister Sergey Shmatk, speaking at the inaugural function of the two-day 'India-CIS roundtable on hydrocarbons' said regarding the Imperial bid, "Our approach towards this important deal is very liberal. If the Indian company acquires Imperial Energy, we are not going to put forward any demand regarding reciprocal stake in Indian oil PSUs."

OVL was expecting that it might have to give 25-40 per cent stake to a Russian company in lieu of the regulatory approvals from the Russian Government for acquiring Imperial Energy which will cost about 1.4 billion pounds ($2.1 billion).

Petroleum Minister Murli Deora's confirmed ONGC Videsh Ltd's interest in the Imperial bid commenting that ONGC Videsh was indeed in discussions with Russian state-owned firms Rosneft and Gozprom to jointly participate in the Sakhalin-3 project. ONGC

Videsh is keen on at least a 20% stake in the Far East field. It already has as much equity in the neghbouring Sakhalin-1 project.

Meanwhile, the fall in the international oil prices notwithstanding, ONGC Videsh Ltd has said it would not revise its 12.50 pounds a share buyout of Imperial Energy. "OVL has valued Imperial's 2P (proven and probable) oil and gas reserves at $2.5-3 per barrel and the acquisition even at current oil prices is enormously beneficial." Petroleum Secretary R S Pandey said "OVL had the option of revising bid price but it is not considering doing so,'' he said.

Crude oil prices were trading at $115-120 a barrel when OVL made the bid for Imperial in August. They are now around $50 per barrel and Imperial shares are at 10.71 pounds.