Reliance buys east African oil retailer GAPCO

Reliance Industries said on Tuesday it had bought a majority stake and management control of east African oil retailer Gulf Africa Petroleum Corp (GAPCO) for an undisclosed sum.

The company said in a statement that GAPCO was a strategic acquisition which would give it access to the rapidly growing economies of east Africa, where demand for petroleum products is rising. "These markets are easily accessible from India and in that sense provide a strategic fit for exports from India," it said.

GAPCO owned and operated large storage terminalling facilities and a retail distribution network in countries including Tanzania, Uganda and Kenya, Reliance said. It said GAPCO had more than 250 outlets catering to retail and industrial segments.

Reliance, India's largest private company, operates a 660,000 bpd refinery in India. Reliance Petroleum Ltd, a subsidiary in which Chevron Corp holds 5 per cent, is building a 580,000 bpd unit nearby.

Media reported on Tuesday that Reliance Industries, which has a market capitalisation of $67 billion, was eyeing a 50 per cent stake in Kenya's sole refinery. Shares in Reliance Industries ended 0.8 per cent higher at Rs 1,971.50 in a Mumbai market that rose 0.3 per cent.

(source: Economic Times)

ONGC mulls takeover of US listed oil firm

Oil and Natural Gas Corporation (ONGC) is mulling a takeover of the US-listed oil firm, Transmeridian, that has 211-million-barrel reserves in Kazakhstan.

Transmeridian is listed on the AMEX Stock Exchange and independent valuers put its value at over $1.5 billion.

Transmeridian has been on the radar of ONGC Videsh Ltd (the overseas investment arm of ONGC) for sometime now. The company has done preliminary due diligence and it is expected to take a decision anytime now, industry sources said.

The sources said as per the US law OVL had two options to takeover Transmeridian — make offer directly to company shareholders for purchase of shares or make a merger proposal under which 100 per cent of the company is acquired with board and shareholder approving the OVL’s offer.

(Source: Business Standard)

GAIL, China Gas to form gas joint venture

GAIL (India) Ltd. and China Gas Holdings Ltd. will form a joint venture to pursue gas sector business opportunities in India, China and other countries, a GAIL statement said on Tuesday.

Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.

GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful.

In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest

(Source: Business Line)

Decision on Mittal's HPCL stake buy tomorrow

The Cabinet Committee on Economic Affairs (CCEA), on Thursday, will consider petroleum ministry proposal to allow steel baron Lakshmi N Mittal to pick up 49 per cent stake in state-run HPCL's Bhatinda refinery, Petroleum Minister Murli Deora said on Wednesday.

The petroleum ministry has granted project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery.

The proposal was required as per the current policy, which restricts foreign direct investment in public-sector petroleum refineries to up to 26 per cent. The current policy also restricts PSU holding to 26 per cent in such projects and makes it mandatory for the balance 48 per cent to be offered to public.

Mittal Investments will acquire 49 per cent stake in the refinery for Rs 3,365 crore through its 100 per cent arm, Mittal Energy Investments Pte Ltd, incorporated in Singapore.

(Source: Economic Times)

OVL set to pick 33% in Egyptian bloc

ONGC’S foreign arm ONGC Videsh (OVL) is all set to acquire around 33% stake in Shell’s high-prospective block in the Northeast Mediterranean deepwater (Egypt).

The Union Cabinet may approve OVL’s proposed investment of $380 million to pick up the stake in the block which has estimated gas reserves of around 14 trillion cubic feet (tcf). The size is stated to be approximately the same as Reliance’s approved gas find in the KG Basin. The block is expected to start production by 2012.

The block is currently held by Shell (84%) and Petronas of Malaysia (16%.

(Source: ET)

ONGC inks swap deal with Brazil’s Petrobras

Oil and Natural Gas Corp has offered Brazilian oil firm Petroleo Brasileiro SA (Petrobras) a stake in its east coast blocks in exchange for getting a 15 per cent stake in a Brazilian exploration acerage.

ONGC and Petrobras today signed the swapping agreement that "marks an increased presence of ONGC Videsh Ltd (the overseas arm of ONGC) in Brazil and the entry of Petrobras in India," an ONGC press release said here.

(Source: ET)