ONGC not keen on higher stake for Statoil

Oil & Natural Gas Corporation (ONGC) now seems reluctant to allow Norway's Statoil Hydro to increase its stake in KG-DWN-98/2 offshore block beyond 20 per cent, as was originally agreed. ONGC has established the presence of approximately 2 tcf of gas in an ultra deepwater discovery in the block, which is owned by a four member consortium. ONGC, which own 65 per cent had roped in Statoil (10 per cent) of Norway and Petrobras of Brazil as strategic partners and Cairn India (10 per cent) as participatory stakeholder. Statoil and Petrobras were permitted to double their stakes to 20 and 30 per cent respectively, subject to approval of the consortium members. It was also decided that ONGC would be the operator during the exploration and production phases.

John Energy earmarks Rs. 400 crore for acquiring rigs

Ahmedabad-based John Energy will invest Rs.400 crore in acquiring seven rigs for deployment in oil and gas fields of Central Asia and North Africa, in 2008. Four rigs of 2,000 horse power (HP) and three rigs of 600 HP will be obtained for deployment in Kazakhstan (Central Asia) and North African countries - Egypt, Libya, Tunisia, Morocco and Algeria. Four of the seven rigs will be drilling rigs and three will be work-on rigs.

GAIL plans petrochemical plant in Colombia

GAIL (India) plans to set up a mega petrochemical plant and a gas pipeline network in Colombia. The proposal is at an initial planning stage and details regarding production capacity, investment and time frame are yet to be worked out. The company is likely to introduce Reliance Industries to the project, with whom it signed an agreement as JV partner to set up a production facility, overseas.

IOC's Turkey project delayed

Deadlock continues with regard to IOC's proposed investment in a 15 million tpa refinery in Turkey. The IOC-Calik JV led consortium is yet to receive final clearance for setting up the $4.9 billion refinery at the port city of Ceyhan and reach an understanding for equity structure and project funding options. According to the initial proposal forwarded by the IOC-Calik venture, all four proposed stakeholders IOC, Calik, ENI and KMG were offered equal stake in the project, with the IOC-Calik company controlling the management.

Ispat floats Erebus for mining in Brazil

Ispat Industries has initiated measures to mine iron ore in Brazil, through a separate company - Erebus. Ispat Industries and its group company - Global Steel Holdings - have picked up 40 per cent and 30 per cent stakes, respectively, in Erebus, and a local Brazilian firm will hold 30 per cent. Prospecting was undertaken near the proposed site and preliminary exploration is soon expected to begin, followed by detailed exploration, feasibility study and mine development.

SRF completes Thai acquisition

SRF has acquired 100 per cent holding in Thai Baroda Industries (TBIL) in Rayong, Thailand. An agreement to this effect was signed on 27 May 2008. All financial dues as per the restructuring plan approved by the court have been paid in Thailand. The acquisition has increased SRF's total tyre cord capacity to 65,000 tpa, making it the second largest nylon 6 tyre cord fabric manufacturer in the world. Thai Baroda Industries has an annual production capacity of around 12,000 tpa dipped nylon tyre cord fabric and annual sales of around $50 million.

OVL submits bids for Angolan oil block

ONGC Videsh (OVL), a wholly-owned subsidiary of ONGC, has submitted a bid to buy 20 per stake in the Angolan Block 32, which is owned by a consortium of firms led by French firm Total Exploration and Production Angola. Block 32 is reported to have 1.5 billion barrels of oil reserves, the production of which is slated to start in 2012.

Adani Group keen on more Indonesian coal blocks

Adani Group is in advanced negotiations to acquire additional captive thermal coal blocks in Indonesia, to support its plans of setting up 10,000 MW coalbased thermal power capacity, by 2011-12. The Adanis' recently brought into production a lowsulphur and low-ash coal block of 140 million tpa of geological reserves in Indonesia. It has submitted applications to the Indian Coal Ministry, for captive linkage to be offered to Adani Power's upcoming 4,620 MW facility at Mundra in West Gujarat. 

Liberia disqualifies Tata from re-bidding

The government of Liberia has decided to disqualify Tata Steel from re-bidding for the $1.5 billion Western Cluster iron ore deposit in Liberia, on grounds of violating norms in the earlier bids. Based on its experience in greenfield mining, Tata Steel envisaged production to begin within eight years, on a project involving exploration and development of infrastructure similar to the Western Cluster. Subsequently, it also informed the Liberia government that the production timeframe could be increased by two years if the government wanted, which the government was not in favour of. Tata Steel's bid was rated favourable by international consultants Deloitte & Touche in its report to the Government of Liberia, on technical, financial and social commitment parameters.

Videocon-BPCL acquires Brazilian oil Co

Videocon Industries in JV with a subsidiary of Bharat Petroleum Corporation (BPCL) has acquired a Brazilian oil exploration firm, for $283 million. The JV is a 50:50 arrangement between Bharat Petroresources - the BPCL subsidiary and Videocon Industries. It acquired the entire stake of Encana Brasil Petroleo Limitada from Canadian gas producers - EnCana Corp and Alberta. Of the total payment made, the acquisition was worth $165 million, and the JV reimbursed the Canadian firms for its expenses worth $118 million.

RCF to invest Rs.6,000 cr in Mozambique

Rashtriya Chemicals & Fertilizers (RCF) is considering a Rs.6,000 crore ($1.3 billion) investment in Mozambique, to set up phosphoric acid and granulation unit, in JV with Industrial Development Corporation of South Africa and Foskor. The proposed JV will undertake supply of 6.50 lakh tpa rock to Mozambique, through rail, where phosphoric acid production and granulation will take place. Gujarat Narmada Valley Fertilisers Co and National Fertilisers and NMDC are likely to join as copromoters. The Mozambique authorities have indicated permission for RCF to participate in developing its mining and infrastructure capacities.

RIL, Perupetro join hands for oil exploration in Peru

Reliance Industries (RIL) has signed an agreement with Peru's Perupetro for exploration of oil & gas in Peru. The two firms are likely to bid in a Peruvian government auction for 22 oil blocks. On 30 April 2008, RIL had signed an agreement to take 90 per cent in block 141 in Puno region of Peru, from Irish company Pan Andean Resources. Pan Andean will continue to hold 10 per cent in the block. RIL will bear all exploration costs through commercial discovery. Following a commercial find of an agreed size, Pan Andean will reimburse Reliance its share of exploration cost.