Financial Daily from THE HINDU group of publications
Thursday, Dec 16, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Mergers & Acquisitions
Industry & Economy - Petroleum


IOC to buy 50% stake in Iranian gas block

Our Bureau

Mumbai , Dec. 15

INDIAN Oil Corporation Ltd has said that it has committed a $1-billion investment to buy 50 per cent equity stake in a 9-million tonne Iranian liquefied natural gas (LNG) block.

IOC, which will ally with Oil India Ltd for investing in the project, will be able to directly sell 4.5 million tonnes (mt) of the LNG produced from the block and will also have the first right of refusal for the remaining 4.5 mt.

The company has signed an initial agreement with Petro Pars, an arm of National Iranian Oil Company, to explore the block. They will immediately begin work on an exploration master plan that will be completed by February, Mr M.S. Ramachandran, Chairman and Managing Director, IOC, said here on Wednesday.

"It is an ambitious task and we expect in-principle clearance to develop the block through National Iranian Oil Company. IOC will be able to directly sell 4.5 mt of the LNG produced from the block and will also have the first right of refusal for the remaining 4.5 mt," Mr Ramachandran told reporters on the sidelines of the fourth international conference on industrial tribology, which is the study of friction, lubrication and wear.

He said the Indian investment in the $5.7-billion project would be about $1 billion. The investment, with a debt-equity ratio of 2:1, would be funded out of IOC's Rs 23,000-crore reserves or by selling IOC's holdings in ONGC and GAIL India.

IBP merger: Mr Ramachandran said the company's board of directors would meet on December 22 to decide the swap ratio for the proposed merger of its subsidiary IBP Ltd with IOC.

IBP's board will discuss it on December 17, he said.

Gross refining margins down

Mr M.S. Ramachandran, CMD, IOC, said the company's gross refining margins have come down by $3-$4 a barrel.

IOC expects to end the financial year with an average gross refining margin of $5 a barrel compared with the previous year's $4.8. Margins touched a high of $8.5-$10 a barrel in the last quarter.

"The average annual refining margins would depend on international crude price movements and the severity of the winter," Mr Ramachandran said.

More Stories on : Mergers & Acquisitions | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Merz Pharma to launch drug for Alzheimer's dementia


BHEL to pay 35 pc interim
Lodha caveat: Hearing on Tapuria plea begins
Ranbaxy gets FDA nod for anti-depressant
Haldia Petrochemicals IPO likely in Feb
Ministry to notify panel accounting norms by March 31
Britannia management gets a facelift
GlaxoSmithKline contests patent plea rejection before HC
IOC to buy 50% stake in Iranian gas block
Sun Pharma looking at acquisition in US
Sundram Fasteners to set up tool room, machining facility
CCEA clears Rs 1,000-cr package for ITI
Bestavision fails to get shelter under BIFR
Spat may hit Reliance's strategic direction: S&P



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line