GMR Energy acquires Indonesian coal company

GMR Energy, a wholly owned subsidiary of GMR Infrastructure, has reportedly acquired Indonesian coal company PT Barasentosa Lestari for $80 million (around Rs.400 crore). As of now, GMR Infrastructure has paid an upfront amount of $40 million and the balance will be paid in multiple tranches by 2011.

The Indonesian coal mine spread over 25 acre has reserves of 100 million tonne with a potential of 5 million tonne of coal production annually. Presently, the Indonesian company has two coal blocks in South Sumatra. This will ensure uninterrupted supply of coal to GMR's proposed 1,500 MW power plant, to be developed in the western part of India, either Gujarat or Maharashtra. Currently, the company is scouting for ideal locations in these two states. GMR Energy is also examining possibility of acquiring more mines in Indonesia and South Africa.

Madhucon Projects' Indonesian mine to be operational by April

Madhucon Projects is expected to start coal production at its Indonesian mine by April. Last year, Madhucon had floated a subsidiary - PT Madhucon Indonesia - to acquire and operate a coal mine on 30-year lease in the East Kaliyamandin region in the country. The coal produced will be imported at the new Krishnapatnam Port in Andhra Pradesh, and will be used as fuel for the upcoming 540 MW Simhapuri power plant near Krishnapatnam in Nellore district. Simhapuri Energy, a 52:48 JV between Hyderabad based Malaxmi Group and Madhucon Projects, is implementing the 4x135 MW Simhapuri power project. Phase-I of the project comprising two units of 135 MW each is scheduled to commission in 2010.

ONGC Videsh to suspend Sakhalin oilfield project

ONGC Videsh's Sakhalin oilfield project in Russia is facing road blocks as the Russian government has refused to approve its budget and work plans in Odoptu and Arkutun-Dagi. This has led to suspension of work on future phases. The $17 billion (approx Rs.83,300 crore) Sakhalin-1 project comprises three offshore fields - Chayvo, Odoptu and Arkutun-Dagi. The Chayvo field has seen a 23 per cent fall in production since it started pumping oil which is expected to fall by another 11 per cent in 2009. Therefore, the consortium partners are looking at other available oilfields to maintain output. The project is jointly owned by a consortium comprising Exxon Mobil (30 per cent), ONGC Videsh (20 per cent ) , and Rosneft (20 per cent). A Japanese consortium holds the remaining 30 per cent stake.