Reliance Exploration and Production DMCC, a wholly owned subsidiary of Reliance Industries Ltd. (RIL), has signed the completion documents for divestment of its 25% Working Interest in the Production Sharing Contract (PSC) for Yemen Block-9 with Medco Yemen Malik Ltd., a wholly owned subsidiary of PT Medco Energi Internasional Tbk of Indonesia. The effective economic date of the transaction is 1st January, 2012 and the transaction has been approved by the Ministry of Oil and Minerals of Yemen.
The government plans to divest 10% of its stake in the state owned oil explorer and producer 'Oil India' by January 15. The offer for sale aims to raise Rs. 25bn and it’s the first time that the government has given a time frame for the offer of sale. Recently retired disinvestment secretary, Harleem Khan said last week that the government aims to bring the OIL issue by December 20.
A senior official finance ministry added that the aim is to bring NMDC (National Mineral Development Corporation) issue by 15th December and Oil India thereafter within a gap of 15-20 days, said the reports.
Oil ministry earlier said at least two offers for sale should be tested to gauge the market and had earlier expressed its apprehensions against untimely offers of sale for oil companies, say reports. Read more…
The government has not reach the decision on the kind of CAG audit that have done in case of Reliance Industries’ KG-D6 block, according to reports.
Reports said that auditor has been at loggerheads with RIL over doing a field examination instead of auditing the production sharing contract (PSC).
“Profit Petroleum is non-tax revenue credited to the Consolidated Fund of India and such audit would involve examination of all records including those of the operator which are relevant to our audit,” according to CAG statement.
The petroleum ministry is expected to have a meeting with CAG and RIL to resolve this matter after the last such meeting got cancelled, says report.
IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, in a recent report on Oil & Gas said that, Singapore Complex margins have halved since October, led by refining capacity additions in Asia of 0.4mbpd.
According to IIFL Institutional Equities, Fuel oil spreads are at their lowest levels in four years. Even as gasoline and gasoil spreads are down 10-14% QoQ, we reckon RIL would fare better, given its superior refining slate and increase in light heavy spreads QoQ. Sustainable recovery in Chinese demand could offset the impact of new refining capacity of 0.9mbpd likely to be commissioned over 1HCY13.
We continue to see downside risk to refining margins in FY14. We note that refining and petchem will contribute more than 85% of RIL’s operating Ebita in FY13-14. Maintain REDUCE, the brokerage added.
The report was published by IIFL’s Institutional Equities Research desk.
Reliance Industries and UK's BP Plc have proposed to a do a single confirmation test on three natural gas discoveries in KG-D6 block, according to reports.
Reports said that Since February 2010, DGH has not recognised the D-29, 30 and 31 as discoveries.
DGH wants three separate DSTs to be done on the three discoveries before approving their Declaration of commerciality (DoC), report said.
The Minister of Petroleum & Natural Gas Dr. M. Veerappa Moily informed the Rajya Sabha in a written reply today that the retail selling prices (RSPs) of Petrol, Diesel, PDS Kerosene and Domestic LPG above products are higher in Nepal and Sri Lanka as compared to their retail selling prices in India except for price of Petrol in Sri Lanka. Following is a comparison of prices of sensitive petroleum products in India via-a-vis Nepal and Sri Lanka is given below: Read more…
The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the 2nd Fortnight of November 2012. Accordingly, the under-recovery on High Speed Diesel (HSD) applicable forIst fortnight of December effective 01.12.2012 has increased to Rs 10.03/Litre. This was Rs 9.06 per litre effective 16.11.2012 for 2nd fortnight of November 2012. In case of Domestic LPG the under-recovery for December 2012 has risen sharply to Rs 520.50/cylinder against Rs 478.50/ Cylinder for November 2012. The Under-recovery on PDS Kerosene too has remained at high level of Rs 30.93 per litre for December 2012, though slightly lower than Rs 31.30 per litre for November 2012. Read more…
The Board of Ex-Im Bank has voted to extend the single largest financing transaction of US$2.1bn to Reliance Industries.
The Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas has reviewed international prices of crude oil and petroleum products during the 2nd Fortnight of November 2012. Accordingly, the under-recovery on High Speed Diesel (HSD) applicable for Ist fortnight of December effective 01.12.2012 has increased to Rs 10.03/Litre. This was Rs 9.06 per litre effective 16.11.2012 for 2nd fortnight of November 2012.
In case of Domestic LPG the under-recovery for December 2012 has risen sharply to Rs 520.50/cylinder against Rs 478.50/ Cylinder for November 2012. The Under-recovery on PDS Kerosene too has remained at high level of Rs 30.93 per litre for December 2012, though slightly lower than Rs 31.30 per litre for November 2012.
Oil & Natural Gas Corporation Ltd has announced that a meeting of the Board of Directors of the Company will be held on December 21, 2012, to consider payment of Interim Dividend for the Financial Year 2012-13.
Chevron's stock price is down because of the company's failure to properly contain the fallout from its US$19bn Ecuador liability, a blog post on The Chevron Pit reports today.
The Chevron Pit reports that an analyst, writing on the widely-read Seeking Alpha web site, stated that he believes that the Ecuador judgment will be enforced against Chevron. He also questioned whether Chevron CEO John Watson properly vetted the company's purchase of Texaco for the environmental liability.
Chevron operated in Ecuador's Amazon rainforest under the Texaco brand from 1964 to 1992. During that time, the company admitted that it discharged 16bn gallons of toxic waste into streams and rivers, decimating indigenous groups and causing an outbreak of cancer.
“It certainly raises questions as to why Chevron's due diligence of Texaco was not more thorough... and why management has consistently downplayed the impact of the case,” wrote an analyst with the Columbian-based independent investment analytics firm, Caiman Valores. Read more…