Top Stories
Govt approves stock split, bonus for ONGC
Shares of ONGC rose after the Cabinet Committee on Economic Affair (CCEA) approved a stock split and bonus for ONGC ahead of the proposed follow-on public offering (FPO). The CCEA approved a proposal to split each share of ONGC into two. There were reports that the Union Cabinet had approved a 1:1 bonus issue for ONGC, but there has not been any official confirmation of the same from the Government or the Company. The Government will raise about Rs 110bn by divesting a 5% stake in ONGC by March. Post offer, the Government's shareholding in ONGC would come down to 69.14% from current 74.14%. ONGC said that its Board will meet on December 16 to consider payment of interim dividend for FY11. ONGC also said that Dec 21 has been fixed as the Record Date for the purpose of payment of Interim Dividend.
RIL's gas output from D1-D3 fields falls 15%: report
Reliance Industries', Dhirubhai-1 and 3 fields, known as D1 and D3, in the Krishna Godavari basin, have seen a 15% drop in production to about 45-46 million cubic meters per day due to reservoir complexities. The D1 and D3 have seen output fall from 53-54 mmscmd achieved in mid-2010 to 45-46 mmscmd, adds report. According to reports, "the reservoir is a complex reservoir and has not behaved as previously modeled".
Besides D1 and D3, D-26 or MA oilfield in the same block is producing about 8 mmscmd as associated gas. Together, the output from KG-D6 currently stands at around 54 mmscmd. Also, Reliance has been forced to restrict production from the MA field to under 20,000 barrels per day due to high water and gas output. The field was yielding more water than oil and even 8 mmscmd of gas in comparison to 20,000 bpd of oil was considered quite high, said a financial daily.
GSPC to raise Rs 30bn from IPO
Gujarat State Petroleum Corporation (GSPC) is said to raise Rs 30bn from its Initial Public Offering (IPO) which is likely to be sometime later next year. GSPC has tied up Rs 30bn term loan through a consortium of 15 banks. A consortium of 15 banks, led by Bank of Baroda, has arranged for the loan. The funds shall be used to finance Deen Dayal West block in KG Basin, adds report. According to reprots, GSPC has tied up Rs 30bn term loan through a consortium of 15 banks to finance its Deen Dayal West field in Krishna Godavari Basin on coast of Andhra Pradesh.
In focus News
Revenue loss...Diesel at Rs 4; kerosene at Rs 16.88, LPG at Rs 272.19
To ease the burden on the consumer, the retail selling prices of diesel, PDS kerosene and domestic LPG are not being maintained in line with the international oil prices, the Minister of State for Petroleum & Natural Gas Jitin Prasada informed the Lok Sabha in a written reply on Thursday.
As per the internal oil prices effective 1st December, 2010 the OMCs are incurring under-recovery on the sale of diesel of Rs. 4.11 per litre, Rs. 16.88 per litre on PDS kerosene and Rs. 272.19 per cylinder on domestic LPG.
The Government through an equitable burden sharing mechanism has been reducing he impact of under-recoveries on OMCs since 2003-04.
The Minister further stated that the Government has made the price of petrol, both at the refinery gate and at the retail level, market-determined with effect from June 26, 2010.
Subsequent to the decontrol of petrol pricing, the public sector oil companies are free to take appropriate decision on the pricing of petrol on the basis of international oil prices, market conditions and commercial considerations. Read More…
Domestic News
IOC to raise US$4.4bn via FPO in Jan: Bansal
Indian Oil Corp reportedly aims to raise US$4.4bn in January through a FPO. The shares of Indian Oil Corporation Ltd (IOC) surged 14% after the B.M. Bansal, Chairman, IOC's said that the company plans to raise US$4.4bn through a FPO in January 2011. The government is selling a 10% stake, while the IOC will offer an equal number of new shares to raise Rs. 20bn. B.M. Bansal, Chairman, IOC was quoted as saying that "Our expectations for per share price should be around Rs. 450." The FPO is likely to be launched in the third or fourth week of January, said Bansal. The expected sale price represents a premium of 30 percent over the company's Tuesday close. IOC has hired six banks including Bank of America Merrill Lynch, Citigroup and ICICI Securities to handle the share sale, IFR reported last month.
ONGC stock up 5% after Govt approves stock split
PSU oil firms hike ATF prices by 1.4%
States requested to prune taxes on petro products
BPCL announces major natural gas discovery in offshore Mozambique
Videocon Industries announces gas discovery in Mozambique
Cairn India stock jumps on optimism over Vedanta deal
Global News
BP to sell Pan American stake to Bridas for $7 billion
British Petroleum (BP) said it had agreed to sell its stake in Argentina-based oil and gas group Pan American Energy (PAE) to Bridas Corp, half-owned by China's CNOOC, for $7 billion, as it raises cash to pay for the Gulf oil spill. The planned sale of the 60% interest, which sources previously said was under discussion and which was for a price in line with analysts' estimates, brings to $21 billion the amount that BP has raised, or agreed sales on, in recent months. BP has said it expects the costs of the Gulf of Mexico oil spill - the United States' worst ever - to hit $40 billion and said it would sell assets worth $25-$30 billion by the end of next year to pay for it.
Bridas already owns a 40% stake in Pan American Energy, which BP said was Argentina's second-largest producer of oil and gas. Bridas was owned entirely by the family of Argentine tycoon Carlos Bulgheroni until CNOOC agreed to buy a 50% stake for $3.1 billion in March. The 60% stake BP is selling represents reserves of 917 million barrels of oil equivalent (boe) and production of 143,000 boe per day. The transaction excludes the shares of Pan American's Bolivian unit, BP said. US oil major Exxon Mobil Corp is seeking to sell its Argentine unit Esso, which controls hundreds of service stations and a refinery, local daily El Cronista reported last month.
SunCoke and Sunoco separation to take place during 1HFY11
Sunoco to sell Toledo Refinery to PBF
Gazprom and Shell agree to deepen cooperation
Repsol inks pact with Malaysian UMW group