ONGC gains ahead of acquiring stake in Turkmenistan oil blocks
Oil exploration major ONGC rose 1.4% to Rs 887.10 following reports it is close buying a stake of up to 33% in two Caspian sea blocks offshore of Turkmenistan.
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 stake holder. ONGC would 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 both domestically as also 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, ONGC’s chairman and managing director R.S. Sharma said ONGC’s drilling and exploratory efforts in the East coast have been highly prospective and it hoped to make an announcement on oil and gas find 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 Ltd (GSPCL) for the sale of 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 887 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 12.7.
On 23 December 2006, ONGC had declared liberal interim dividend of Rs 18 per share. The stock has already become ex-dividend.
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 stake holder. ONGC would 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 both domestically as also 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, ONGC’s chairman and managing director R.S. Sharma said ONGC’s drilling and exploratory efforts in the East coast have been highly prospective and it hoped to make an announcement on oil and gas find 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 Ltd (GSPCL) for the sale of 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 887 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 12.7.
On 23 December 2006, ONGC had declared liberal interim dividend of Rs 18 per share. The stock has already become ex-dividend.
posted by SY at 3:49 PM
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