IOC
board clears merger and exploration initiatives
New Delhi: Indian Oil Corporation Ltd (IOC), the
State-owned petroleum refining and marketing major, board
has approved plans to merge with itself its subsidiary,
IBP Ltd, and also set up a new exploration company with
a war chest of $2 billion.
IOC
holds a 53.58 per cent equity stake in IBP following disinvestments
and open offer of the oil retailing company in 2002. The
move would enable the two companies to avoid direct competition
with each other. IOC with 9,500 retail outlets and IBP
with 2,700, would post their merger have over 12,000 outlets.
The
IOC board has also agreed in-principle for the setting
up of an oil exploration subsidiary, which would spearhead
the company's foray into the upstream sector. The exploration
subsidiary would have funds of $2 billion and would look
to acquire a medium-sized foreign firm in the upstream
business. Reportedly IOC has identified firms such as
Niko Resources of Canada, Cairn Energy, Tullow Oil and
Premier Oil (all of the UK) as possible targets.
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ONGC
to get into power generation
New Delhi: ONGC, India's exploration and production
major may enter the field of power generation by setting
up power plants close to its gas fields. It would however,
not be interested in transmission and distribution of
power.
As of now, ONGC already has developed captive power capacity
of over 1,000 MW of which only about 100 MW is fed into
the grid. The company says that it will sell generated
power to trading companies like PTC and even directly
to consumers through contracts.
ONGC has awarded six of its small oil fields in Assam
and Gujarat for development and production to private
firms. ONGC will, however, retain full ownership of the
fields and the produce and will pay the firms a fee for
putting them into production.
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GSK
sells Worli property
Mumbai: GlaxoSmithKline's (GSK) Worli factory has
been sold after a 18-month bidding process to a partnership
consisting of ICICI Venture Fund and Oberoi Constructions.
The buyers have paid Rs 107.6 crore for the five-acre
property on the arterial Annie Beasant Road.
With
an FSI (floor space index) of 2.0, the property allows
a developable option of 450,000 sq ft. Glaxo has realised
a price of Rs 5,400 per sq ft for the 20,000 square yard
property. The company has separated and retained 9,375
sq yards of the factory plot for its own operations.
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BSNL
initiates asset valuation exercise
Kolkata: Bharat Sanchar Nigam Ltd (BSNL) has kicked
off a valuation exercise of its countrywide telecom assets.
According to reports the asset valuation exercise is aimed
at regularising BSNL's accounts in line with audit requirements
and right-sizing its balance sheet by making it more transparent
to reflect the true shareholder value.
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