Apr 22, 2013, 10.41 PM IST | Source: PTI

CCI's 25 oil block clearances to benefit Reliance, ONGC

After clearing five "No-Go" areas for oil and gas exploration, the Cabinet Committee on Investment (CCI) today eased stringent conditions imposed by Defence Ministry on another 25 blocks, freeing USD 4.61 billion investments.

After clearing five "No-Go" areas for oil and gas exploration, the Cabinet Committee on Investment (CCI) today eased stringent conditions imposed by Defence Ministry on another 25 blocks, freeing USD 4.61 billion investments.

"The CCI at its meeting held today cleared 25 exploration and production blocks for continued exploration of oil and gas, out of 31 blocks where work had been stopped on account of security restrictions imposed by Ministry of Defence," an official statement said here.

Also read: CCI clears 13 power projects, 25 oil blocks

While the statement did not give break-up of the blocks cleared, the 31 blocks where restrictive conditions were imposed included 13 of Reliance Industries -BP combine, 15 of state-owned Oil and Natural Gas Corp ( ONGC ) or its lead consortium, two blocks of Santos of Australia and one block of Cairn India -led consortium.

For these blocks, the Defence ministry had imposed stringent conditions like asking companies not to locate any pipelines or structures on sea surface in the blocks cleared for exploration and production activities.

Subsea/submerged permanent structures, if any, were to be located more than 100 metres below sea surface or outside the Defence Research and Development Organisation (DRDO)/Indian Air Force (IAF) danger zone area (on sea surface) or Naval exercise areas.

The oil industry saw these conditions as impractical and after discussions, the conditions have been substantially diluted now.

"Out of 31 blocks, 9 blocks have been fully cleared and 16 blocks have been cleared with specific conditions. Due to clearances given at this meeting, investment already made to the extent of USD 2.71 billion will be put to use and further investment to the extent of USD 1.9 billion will be made in the exploration activities in the next 3-5 years," it said.

ONGC stock price

On April 21, 2014, at 13:05 hrs Oil and Natural Gas Corporation was quoting at Rs 323.80, up Rs 1.55, or 0.48 percent. The 52-week high of the share was Rs 353.00 and the 52-week low was Rs 234.40.


The company's trailing 12-month (TTM) EPS was at Rs 24.07 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 13.45. The latest book value of the company is Rs 145.47 per share. At current value, the price-to-book value of the company is 2.23.

Set email alert for
ONGC Reliance Cairn India

ADS BY GOOGLE

Buy & sell politicians on Power Play
- the political stock exchange

Price Update

Narendra Modi

89073.53 593.81 0.67%

2092

Bought today

1459

Sold today

0.88%

User holding

video of the day

Mkt reasonably valued now; NDA win priced-in: Kotak Inst

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.