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Oil PSU's defer refineries shut down plans: reports
The three major OMC's namely, Indian Oil Corporation (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) have reportedly deferred from shutting down some of their refineries to meet local oil demand.
Bharat Petroleum (BPCL) has deferred shutdown of a hydrogen unit at its Mumbai refinery and a diesel unit at the Kochi plant to meet local fuel demand. While, IOC plans to shut a hydrocracker and some other units at its biggest Panipat refinery in May for routine maintenance. IOC’s BN Bankapur was quoted as saying that "If situation continues like this, when Indian fuel demand is rising at a fast pace and so are international fuel prices, being the largest state-run oil marketing firm we may have a re-look at our shutdown plans".
He further added that “I am a state-run firm, I have to run for the country.” HPCL, may defer the planned 15-day shutdown of a 60,000 barrels per day crude unit at Mumbai refinery to September. K Murali, Head of refineries was quoted as saying that "We have to do some corrections in tower. We are looking at deferring the shutdown because industry demand has come." He furtehr added that the company has no plans to change a 45-day maintenance shutdown of a 60,000 bpd crude unit, a visbreaker unit and a fluid catalytic cracker (FCC) at Vizag refinery. The shutdown will begin in November.
Cairn India hopeful of getting Govt nod for Vedanta deal
Cairn India Ltd. is awaiting government approval for the sale of a majority stake to Vedanta Resources Plc for up to US$9.6bn (£5.9bn).
"Cairn continues to believe the necessary approvals to complete the Vedanta transaction will be received and is working with the Government of India in a positive and constructive manner," CEO Bill Gammell said in a statement.
In August last year, the Indian subsidiary of Cairn Energy Plc had agreed to sell up to 51% to Anil Agarwal controlled Vedanta but the deal has been stuck ever since for want of Indian government's approval.
Earlier this month, Cairn said that it hoped to complete the divestment by April 15.
The company's Mangala field in Rajasthan was the largest oil discovery in India for more than 20 years and now produces 125,000 barrels of oil per day.
Cairn India has successfully drilled and completed 11 horizontal wells at the site field and all have been put on production.
"A total of 129 Mangala development wells have been drilled to date, of which 84 have been completed and 55 are currently producing," Cairn Energy said in its annual report released today. Read More…
In focus News
Costlier crude: time for offshore services companies to perform?
With rising oil prices, oil companies, too, tend to increase their exploration and development activities. This in turn means good news for firms offering offshore services such as Aban Offshore Ltd and Great Offshore Ltd. Trouble is, both these stocks have underperformed in the last three months, when Brent crude has risen to about US$116 per barrel currently from $94. In a note to clients on Tuesday, analysts from Prabhudas Lilladher Pvt. Ltd say that the impending issues such as equity dilution expected in both the firms, along with other stock-specific issues such as leverage in the case of Aban and an ageing fleet for Great Offshore, could be the reasons for the underperformance. The note also highlights that global offshore firms have had a pretty strong run in the last six months and if activity in the broader offshore markets continues to do well, there is no reason why Indian companies will not sooner or later fall in line with the trend.
Aban would either have to consider an equity dilution or refinance its debt for its upcoming debt repayments, say analysts. Both are equally unappealing options. That's because if refinancing happens at higher interest costs, it would put pressure on profitability, whereas equity dilution will lower earnings per share. Read More…
Domestic News
RIL loses top spot to Tata as best Indian brand
Tata Group has entered the top 50 club of global brands and was listed at 65thspot last year, according to the latest Brand Finance Global 500 report. The report stated that the group’s brand value is pegged at US$15.08 bn. While Reliance lost its position to 133 from 108 with a brand value of US$6.99 bn and other brands like ICICI Bank, BPCL went down on the list, says report. There are also reports that Google emerged as No 1 with a brand value of US$44.29 bn as compared to other brands like Wal-Mart, Microsoft and Apple behind.
GAIL targets for over 118 MMSCMD Gas transmission in FY 2011-12
Gujarat Gas signs agreement with BG India Energy Solutions
….Gujarat Gas slips as stock goes ex-dividend, ex-special dividend
Global News
US researchers claim breakthrough in Hydrogen Fuel Cell tech
US researchers say they have made a breakthrough in the development of low cost hydrogen fuel cells that one day could power electric cars. Researchers at Case Western Reserve University in Cleveland say catalysts made of carbon nano tubes dipped in a polymer solution can outperform traditional platinum catalysts in fuel cells at a fraction of the cost.
The scientists say the new technology can remove one of the biggest roadblocks to widespread cell use: the cost of the catalysts. Platinum which represents at least a quarter of the cost of fuel cells currently sells for about US$30 000 per pound while the activated carbon nano tubes cost about US$45 per pound a Case release said Tuesday.
This is a breakthrough Liming Dai a professor of chemical engineering and the research team leader said. Soaking carbon nano tubes in a water solution of the polymer for a couple of hours coats the nano tube surface and pulls an electron partially from the carbon creating a net positive charge researchers said.
When placed on the cathode of an alkaline fuel cell the charged material acts as a catalyst for the oxygen reduction reaction that produces electricity by electrochemically combining hydrogen and oxygen. In testing the researchers carbon catalyst fuel cell produced as much power as an identical cell using a platinum catalyst. Read More…
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