Rajasthan chief minister Vasundhara Raje has said her government will renegotiate the oil refinery-cum-petrochemical complex project with HPCL, started by the former government in Barmer, as the state share in it was just 26% despite offering free infrastructure facilities. Raje in her Budget speech for 2014-15 said the previous government committed to give interest free annual loan of R3,736 crore per annum for 15 years. ?We have reviewed this project. As per an appraisal report of this, the project will earn a profit of more than R68,000 crore,? she said, adding, ?The (former) government committed an interest free loan R56,000 crore in 15 years but the equity of state was kept only at 26%.?
Coal India misses output target in June; production at 34.5 mt
Coal India achieved an output of 34.54 million tonnes in June, missing its target of 36.54 mt. This comes at a time when the PSU is drawing flak for missing production targets. CIL?s output in the April-June period was at 108.33 mt, while the target for the quarter was 113. 01 mt. The company?s offtake in June was 38.29 mt, missing its target of 42.01 mt.
OIL completes acquisition of 50% stake in oil block in Russia
Oil India Ltd has completed the acquisition of the 50% stake in an oil block in Russia for $85 million. OIL bought the stake from Ireland-registered, Russia- focused firm PetroNeft Resources plc in License 61 in Tomsk Oblast in Russia. The deal includes a three-stage payout, including $35 million in cash up-front, $45 million in exploration and development spending and a performance bonus of up to $5 million. ?The total commitment from OIL will be $85 million, including $45 million for development capex. The effective date of the acquisition is January 1, 2014,? OIL said.
OVL raises $2.21 bnto finance Mozambique deal
ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corporation, has raised a record $2.21 billion by selling bonds to foreign investors. Proceeds of the bond sale will be used to repay short-term bridge loan that OVL had taken to finance its stake acquisition of 16% in a gas field off Mozambique. The company said it raised $750 million by selling bonds of five-year tenure and another $750 million by selling 10-year bonds. It raised an additional 525 million euro (about $712 million) in seven-year bonds.
Rajasthan to set up joint venture with GAIL for CNG supply
The Rajasthan government would set up a joint venture with GAIL India Ltd for city gas (CNG) distribution in selected cities in the state. The Rajasthan State Petroleum Corporation would be strengthened through the joint venture, chief minister Vasundhara Raje told the state Assembly. In the first phase, a mother station for gas distribution would be set up in Neemrana, and a daughter station in Jaipur, she said.
Oil marketing companies fall far short of ethanol blending target
Oil marketing companies could achieve only 1.37% blending of ethanol with petrol against the target of 5%, the government told the Lok Sabha. Petroleum minister Dharmendra Pradhan said certain issues related to marketing networks and buying of ethanol were behind the failure to meet the target.
