GAZPROM MAY BID ON YUGANSK, ONGC INTERESTED

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MOSCOW, December 2 (RIA Novosti) - Russian gas giant Gazprom's board may make a decision on Gazprom subsidiary Gazpromneft's participation o in the auction of Yuganskneftegaz, a Yukos subsidiary, Gazprom press secretary Sergei Kupriyanov said Thursday.

"The members of the Gazprom Board of Directors have received materials concerning Gazpromneft's participation in the auction of a package of Yuganskneftegaz shares," Mr. Kupriyanov said.

Answering a question about what the decision was and how the board members had voted, Mr. Kupriyanov said, "the positions of all representatives of the state including Economic Development and Trade Minister German Gref coincided."

The board's decision will be finalized soon.

A subsidiary of India's ONGC oil company may become Gazpromneft's partner in the fight for Yukos assets, the Indian newspaper, Economic Times, reported Thursday citing an unnamed source in the oil and gas sector.

In particular, ONGC Videsh could participate in the December19 auction of Yuganskneftegaz, which accounts for over 60% of Yukos' production and revenues.

"Oil industry sources say an Indian oil company could fit in well as a partner in the existing geo-political equation," the newspaper reported.

"India is a major buyer of armaments from Russia and has historically been closer to it than China. 'Even a 20% stake in the venture could give ONGC access to twice its existing oil production,' said a senior industry official."

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