New gas find propels ONGC
ONGC advanced 3.73% to Rs 928, after it informed about a gas find off India's eastern coast.A strong 3.99 lakh shares changed hands in the counter on BSE. The stock had surged to a high of Rs 936, in intra-day trade.The stock declined in the past three trading sessions, from Rs 924.85 on 12 January to Rs 894.55 by 17 January 2007.
ONGC said that it had been offered stakes in its deepwater fields in the eastern Krishna Godavari basin to Brazil's Petrobras, Italy's ENI, Norway's Norsk Hydro and Malaysia's Petronas.
Last month, ONGC said gas reserves at finds in the Krishna Godavari basin could exceed market expectations of 21-22 trillion cubic feet, and final numbers will depend on further drilling.
ONGC found a 28-30 metre net gas pay zone at a depth of about 5,400 metres in one of the basin's blocks, along with a big field in Mahanadi basin.
ONGC's overseas investment arm, ONGC Videsh will soon sign a deal to this effect with the operator, Denmark's Maersk Oil, and German oil and gas firm Wintershall, which is also a major stakeholder. ONGC will pay Rs 150 crore to Rs 200 crore for a stake in two properties -- blocks 11 and 12.
ONGC is stepping up its exploration efforts in India as well as overseas.
Last month, there were reports that ONGC had struck huge gas in the Bay of Bengal. Initial estimates suggest that the find could be in the range of 21 trillion cubic feet. Recently, Chairman and Managing Director R S Sharma said ONGC’s drilling and exploratory efforts on the eastern coast held high prospects and hoped to announce oil and gas finds shortly.
Meanwhile, Royal Dutch Shell and Total SA of France have envisaged interest in ONGC Videsh (OVL)’s Nigerian blocks OPL 212 and 209. The OPL 209 block, acquired by ONGC Mittal Energy is close to Shell's Bongo fields and has reserves of 800 million barrels. If the deal goes through, Total will be partnering the Indian upstream major for the first time, while Shell already partners OVL in Brazil's Campos basin.
Recently, ONGC entered into an agreement with Gujarat State Petroleum Corporation (GSPCL) for selling natural gas from its Olpad field in Ankleshwar. The agreement is valid for three years. It can be renewed for another two years.
Analysts say, ONGC is one of the less expensive frontliners. The current price of Rs 928 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 13.37.
The Government of India holds 74.14% of the company's paid-up equity share capital of Rs 2138.87 crore, while public holding is mere 1%.
ONGC said that it had been offered stakes in its deepwater fields in the eastern Krishna Godavari basin to Brazil's Petrobras, Italy's ENI, Norway's Norsk Hydro and Malaysia's Petronas.
Last month, ONGC said gas reserves at finds in the Krishna Godavari basin could exceed market expectations of 21-22 trillion cubic feet, and final numbers will depend on further drilling.
ONGC found a 28-30 metre net gas pay zone at a depth of about 5,400 metres in one of the basin's blocks, along with a big field in Mahanadi basin.
ONGC's overseas investment arm, ONGC Videsh will soon sign a deal to this effect with the operator, Denmark's Maersk Oil, and German oil and gas firm Wintershall, which is also a major stakeholder. ONGC will pay Rs 150 crore to Rs 200 crore for a stake in two properties -- blocks 11 and 12.
ONGC is stepping up its exploration efforts in India as well as overseas.
Last month, there were reports that ONGC had struck huge gas in the Bay of Bengal. Initial estimates suggest that the find could be in the range of 21 trillion cubic feet. Recently, Chairman and Managing Director R S Sharma said ONGC’s drilling and exploratory efforts on the eastern coast held high prospects and hoped to announce oil and gas finds shortly.
Meanwhile, Royal Dutch Shell and Total SA of France have envisaged interest in ONGC Videsh (OVL)’s Nigerian blocks OPL 212 and 209. The OPL 209 block, acquired by ONGC Mittal Energy is close to Shell's Bongo fields and has reserves of 800 million barrels. If the deal goes through, Total will be partnering the Indian upstream major for the first time, while Shell already partners OVL in Brazil's Campos basin.
Recently, ONGC entered into an agreement with Gujarat State Petroleum Corporation (GSPCL) for selling natural gas from its Olpad field in Ankleshwar. The agreement is valid for three years. It can be renewed for another two years.
Analysts say, ONGC is one of the less expensive frontliners. The current price of Rs 928 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 13.37.
The Government of India holds 74.14% of the company's paid-up equity share capital of Rs 2138.87 crore, while public holding is mere 1%.
posted by SY at 6:35 PM
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