State-run Oil and Natural Gas Corp and Gujarat State Petroleum Corp are likely to fetch a minimum of 20 per cent premium over the $4.2 per million unit price fixed for Reliance Industries' gas field.
UBS Investment Research, in its latest report, estimated that ONGC and GSPC may get at least $5.5 per million British thermal unit for natural gas they will pump out from their respective Krishna-Godavari basin blocks. "In India, we do not expect the gas price to reflect the international LNG price, but we do expect at least a 20 per cent increase over RIL's $4.2 per mmBtu for other projects that will come onstream in the early part of the next decade," it said. RIL is to get a fixed price of $4.2 per mmBtu for the gas it would produce from Dhirubhai-1 and 3 fields in KG-D6 block from December-January, for the next five years. UBS estimated $4.5 per barrel of oil equivalent (boe) capital cost for RIL's D6 fields and $5.1 per boe for ONGC's KG-DWN-98/2 and $5.4 per boe for GSPC's Deen Dayal block. "Based on our estimated $40 billion value for its exploration and production (E&P) segment, we prefer RIL over ONGC and Cairn India," it said while fixing a target price of Rs 2,550 per share for the Mukesh Ambani run firm. For ONGC too, it recommended a 'buy' with a price target of Rs 1,138 and for CIL, UBS saw Rs 337 a share as the target price. "Considering limited exploration upside in the near term due to its lower focus on NELP blocks, ONGC is our least preferred stock," UBS report stated. http://www.business-standard.com/india/storypage.php?autono=337309 The law of gravity says no fair jumping up without coming back down --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
