Tata Steel forms JV with Oman for limestone exploration
On 16 January 2008, Tata Steel and Oman's Al Bahja Group signed a JV agreement to explore and develop the Uyun limestone deposits in Salalah. Tata Steel will hold 70 per cent stake in Al Rimal Mining LLC, through its subsidiary TS Global Minerals Holdings. Al Rimal Mining LLC will undertake development and operations of the Uyun mine. The initial phase of the project will involve exploration and detailed feasibility studies.
Essar buys BP Shell, Chevron stake in Kenya
Essar Energy Overseas, which is a subsidiary of Essar Oil, has signed an agreement to acquire 50 per cent stake in a 4 mln tpa crude refinery in Mombasa, which is being operated by Kenya Petroleum Refineries. The said stake is presently owned together by Shell Petroleum Co., Chevron Global Energy Inc and BP Africa and the government of Kenya. Subject to certain conditions, the acquisition is expected to be completed in early 2008.
Essar plans to upgrade the refinery to produce additional products at a projected investment of $400-450 million. Currently, the products from the refinery are sold in the Kenyan market and exported to Tanzania, Uganda, Burundi and Rwanda.
Nalco signs pact for aluminum smelter, power unit in Indonesia
On 11 January 2008, Nalco signed a MoU with the Indonesian government. The agreement is for a 5 lakh tpa aluminum smelter and a 1,250 MW captive power plant to be set up in South Sumatra, at an investment of $3.4 billion (approx. Rs.13,399 crore).
Nalco is now preparing a feasibility study for establishment of the two plants over around 1,000 ha of land in the Musi Banyuasin region. The aluminum smelter will procure alumina as intermediate material from Nalco's plant in India, while the power plant will procure coal from PT Tambang Batu Bara Bukit Asam's mine in South Sumatra.
Indian Hotels to operate Taj Exotica in UAE
On 11 January 2008, Indian Hotels Co (IHCL) and Saraya Islands signed an agreement for a mixeduse resort in the Emirate of Ras Al Khaimah, UAE. IHCL is owned by Taj Hotels Resorts & Palaces. It will operate a Taj Exotica Resort & Spa in the Saraya Islands, which will become one of six world class five-star hotels on the Islands. The hotel will have 180 guest rooms, including suites, 30 bungalows, two restaurants, conference facilities, spa and health club, amongst other facilities. The first phase of the project is expected to be complete in 2011.
CVIL invites EoIs from global bankers
Coal Ventures International (CVIL) has invited EoIs from global investment bankers to fund its plans of scouting for metallurgical and thermal coal assets abroad. CVIL is a SPV promoted by SAIL, NTPC, Rashtriya Ispat Nigam, Coal India and National Mineral Development Corporation.
CVIL is interested in assets in Australia, Canada, the US, Indonesia, Mozambique, Zimbabwe and South Africa. It will select investment/merchant bankers based on:
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Global foot prints and/or selected countries specific credentials.
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Adept at mergers and acquisitions, particularly of coal assets.
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Recent/successful record of advising clients. It will look at three routes for acquisitions:
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Strategic investment in shares of listed coal companies producing or intending to produce metallurgical, PCI and steam coal anywhere in the world, preferably in Australia, USA, Canada etc.
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Private equity deals with unlisted companies, partners, owners having coal assets which are in production or not, anywhere in the world including South Africa, Mozambique, Zimbabwe, Indonesia etc.
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Acquiring/applying for prospecting / mining licenses to develop coal mines anywhere in the world.
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GMR forms two new subsidiaries
GMR Infrastructure (GIL) has incorporated a 100 per cent subsidiary - GMR Infrastructure (Mauritius) Ltd. in Mauritius, through which it will route all of its overseas investments. The subsidiary will also be the holding company for all of its overseas projects.
GIL with its 100 per cent subsidiary GMR Energy has set up another subsidiary -GMR Kamalanga Energy to develop its 1,000 MW coal-based power project in Orissa. The project is estimated to cost Rs.4,000 crore, and its debt/equity ratio is 3:1. The financial closure for the project is expected by June 2008.
Hinduja & ONGC invest $20 billion
The Hinduja Group in association with ONGC will invest $20 billion in exploring oil in two fields in Iran. This will enable a 15 mln tpa refinery to be set up in Kakinada and an LNG terminal at Mangalore.
Investment in the refinery is marked at $5 billion, while the LNG terminal will cost $1 billion and $3- 4 billion will be invested in power and petrochemical plants. The development of Phase 12 of the giant South Pars field and the Azadegan field -the proposed wells, is estimated to cost around $8 billion, while setting up a facility to liquefy the gas for export as LNG will cost another $2 billion.
India agrees to re-build Myanmar port
India has agreed to re-build the Sitwe port in Myanmar, on built, transfer and use (BTU) basis. A final agreement is likely to be signed by April 2008. The project will entail an investment of $120 million (approx. Rs.480 crore), which the Centre is expected to fund. RITES, a subsidiary of the Indian Railways, will implement the project work. The project involving rebuilding the port, making the Kaladhan River navigable up to Mizoram and developing the highway connectivity from the border in Mizoram.
The Myanmar port is scheduled for completion within three years and is expected to provide an alternative route to connect with South-East Asia, without transiting to Bangladesh.
Oilex, Videocon drills in Oman
A consortium of Oilex of Australia, Videocon Industries, Gail, Bharat Petroleum Corporation and Hindustan Petroleum Corporation has begun drilling the exploration block in Oman. The Sarha-1 exploration well was spudded on 31 December 2007. It will be drilled in Block 56 using the Abraj Rig 2004 to a total depth of 1,650 m. Oilex, Videocon and Gail ( India) will each hold 25 per cent interest in Block 56 while HPCL and BPCL have 12.5 per cent each.
Adani Welspun’s Thailand venture
Adani Welspun Exploration has won a second oil and gas block (onland Block L22/50) in Thailand. The company is a JV between the Adani Group and the Welspun Group,
On 21 January 2008, Thailand's Energy Ministry awarded concession rights for 13 onshore and offshore oil & gas blocks. These blocks are part of the 56 onshore blocks and nine offshore blocks in the Gulf of Thailand, spanning 2,35,606 sq.km. The 56 blocks are being offered in the 20th petroleum concession bidding round of Thailand.
Manila Water wins HDA bid
Manila Water, a subsidiary of Philippine conglomerate Ayala Corporation has been prequalified for Haldia Development Authority's water supply project at Haldia in West Bengal. The other international bidders in the fray were French utilities group Veolia, Salcon Bhd and Malaysia's Ranhill.
Manila Water has partnered with Jindal Water Infrastructure (JWIL) for the project which involves constructing a 113.5 MLD capacity water treatment plant, and a 10-year operation and maintenance (O&M) contract of the existing water supply scheme. The contract for the project also includes issuance of bills, revenue collection and provision of customer service.
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