RIL makes fifth oil discovery in Gujarat block

 

SOURCE : PTI May 28 2010 , New Delhi

Reliance Industries on Friday said it has made a fifth oil discovery in a
block in Gujarat, but did not give reserve estimates.

The discovery was made in exploration block CB-ONN-2003/1, which is located in the Cambay Basin at a distance of about 130 km from Ahmedabad, the company said in a statement here.

Reliance had won the block in the fifth round of auction under the New Exploration Licensing Policy (NELP).

Well CB10A-J1 was drilled to a total depth of 1,957 metres in Part A of the block. "Hydrocarbon-bearing zone was identified at a depth of 1,376-1,385.5 metres," it said.

"The well flowed at a rate of 255 barrels of oil per day" during conventional testing of the discovery, the company said.

Well CB10A-J1 was drilled with the objective of exploring the play fairway in the Miocene Basal Sand (MBS) of the Babaguru Formation and Eocence Pays of the Kalol Formation.

"The discovery is significant, as this play fairway is expected to open more oil pool areas, leading to better hydrocarbon potential within the block," Reliance said.

The block covers an area of 635 sq km in two parts, dubbed Part A and Part B. Reliance is the operator of the block with a 100 per cent participating interest.

The company has done 2D seismic surveys over the entire block area, while nearly 80 per cent has been covered with 3D seismic.

"Of the 15 exploratory wells drilled in the block by Reliance so far, 11 are located in Part A and the remaining four in Part B of the block. Reliance is continuing further exploratory drilling efforts in the block," the statement said.

The discovery, named 'Dhirubhai-48', the fifth oil find in the block so far, has been notified to the government of India and to the Director General of the Directorate General of Hydrocarbons. "The potential commercial interest of the discovery is being ascertained through more data gathering and analysis," RIL said.

Can pump in more than $2billion if FDI rules are eased:Bharti Retail

SOURCE : PTI May 28 2010 , patiala

Bharti Enterprises group company Bharti Retail, which is on track to invest USD 2


billion by 2018, today said it may scale up its investment if the government relaxes FDI norms in the retail sector.

"If the rules for the game are changed...We can also revisit our plans," Bharti Enterprises Vice-Chairman and Managing Director Rajan Mittal told PTI when asked if the company would scale up its investments if the FDI norms are further relaxed.

Venting out his frustrations over restrictions on foreign investment in the retail sector, Mittal said a political decision needed to be taken at the earliest, else the country will lose out on getting billions of dollars of foreign funds into the sector.

"If retail is good, please allow FDI in multi-brand retail. If it is bad, let's stop talking about it," he said.

Questioning the rationale of not allowing foreign investment in multi-brand retail under the pretext that organised retail would wipe out small kirana and neighbourhood mom-and-pop stores, he said already big domestic retailers are in market and no such impact has been seen.

"The government has allowed domestic big companies like Bharti, Reliance, Birlas, Spencer group and Kishore Biyani's Future group, these could have also hurt the kirana strores, but that hasn't happened," he added.

Currently, the government allows 51 per cent FDI in single brand retail but none in multi-brand, while 100 per cent in wholesale business.

Mittal said government should immediately consider allowing at least 49 per cent FDI in multi-brand retail if not more, as this sector doesn't pose "any security threat" unlike in telecom and defence.

He, however, said that Bharti Retail, as announced earlier, is on track to invest $ 2 billion by 2018 and would open 150 stores by the end of 2010.

Bharti Retail, currently, operates around 70 outlets of its 'easyday' stores across the country, including six large format 'easyday Market' hyperstores.

In 2007, the company had stated that it envisaged having a pan-India operations with approximately 10 million square feet of retail space cities across with a population of over one million.

It had estimated employing about 60,000 people, including ex-servicemen and women.

Bharti Enterprises has also a joint venture with Walmart, the world largest retailer for cash and carry business and runs the 'Best Price' stores.

Sundaram Fin may not exit gen insurance

 

   Source:: FC :Sanjay Vijay Kumar May 28 2010 , Chennai

T T Srinivasaraghavan, managing director of Chennai-based Sundaram Finance Ltd said the company is neither in talks nor approached the regulator to exit its general insurance venture with UK’s RSA Insurance Group Plc. He also said the decision on mutual fund business would be taken in the next two months.

Media reports said Sundaram Finance is exiting its general insurance JV - Royal Sundaram Alliance Insurance Co. Ltd by selling its 74 per cent stake to its foreign partner RSA Insurance Group Plc, which would merge the entity with Reliance General Insurance Co. Ltd and take a 26 per cent stake in the merged entity.

“We have not approached the regulator for the sale and not in talks with anyone,” Srinivasaraghavan said while declaring the company’s fiscal 2010 results.

Meanwhile, the company expects to reach a decision on its mutual fund business with in the next two months.

Sundaram Finance has an asset management business tie up with BNP Paribas. But with BNP Paribas buying some of Fortis Bank’s international operations, including its asset management unit in India, BNP Paribas has to either exit one of the ventures or merge the two businesses.

The regulator bans companies from owning stakes simultaneously in two rival asset managers.

Sundaram BNP Paribas AMC manages assets worth $3 billion, while Fortis’s asset management company has assets worth $2 billion in India.

“The decision should be taken by our partners. We are in negotiations with them, but nothing has been decided and it would be too premature to comment on the outcome. A final decision would be taken in the next two months,” Srinivasaraghvan said.

He also added that whatever might be the outcome, Sundaram Finance is committed to its mutual fund