Companies & Sectors
DGH approves Cairn India’s drilling plan for Rajasthan block

Cairn believes the Rajasthan block holds an in place resource base of 7.3 billion barrels that can support 300,000 bpd of output

After protracted delays, a block oversight committee, headed by the Directorate General of Hydrocarbons (DGH), on 14th February, allowed the company to drill its first exploration well on Rajasthan block in more than five years. The nod will help it boost output to 215,000 barrels per day by March 2014.

 

Cairn, which started production from Mangala oilfield—the biggest of the 25 oil and gas finds in the Barmer dessert block in Rajasthan—in August-end 2009, is produces around 170,000 barrels a day from the block.

 

It has plans to end the 2013-14 financial year with 200,000 to 215,000 bpd output and further exploration in the block is key to adding more reserves.

 

The proposal to allow exploration in a producing field was pending with the oil ministry for more than one and a half years. Only last month the ministry allowed firms like Cairn to drill probe wells within an oil and gas field, but with the condition that cost recovery of such wells would be allowed only in case there is a commercially exploitable discovery.

 

Sources said the so-called Management Committee (MC) had previously asked Cairn to detail its exploration campaign in form a work programme with requisite approval of a panel comprising of its partner Oil and Natural Gas Corporation (ONGC).

 

In all, Cairn plans to drill 30 exploration wells by March 2014, of which three would be in current year itself, sources said.

 

Cairn believes the Rajasthan block holds an in place resource base of 7.3 billion barrels that can support 300,000 bpd of output. This potential can be realised only if it undertake further exploration to locate the oil zones.

 

Sources said the Rajasthan JV comprising of Cairn and ONGC, has identified numerous prospects that will support, intensify the exploration efforts and enhance drilling activities.

 

The prospects could include both oil and gas. The rationale behind exploration of gas prospects was to augment the already-rich gas find in the Southern part of the block and explore possibilities of commercialisation beyond captive usage, they said.

 

Sources said at 175,000 bpd production, Cairn’s contribution to the government is more than Rs 12,000 crore annually in duties and taxes.

 

Cairn has till date invested over $ 4 billion in the Rajasthan development and operates nearly 25% of the country's domestic oil production.

 

Sources said the condition that cost recovery will be allowed only in case of successful discovery means that cost of drilling any well that does not lead to a discovery, or a small find that could not be independently produced, will not be allowed.

 

Currently, when a company finds oil or gas in an area, the discovery area is ring-fenced and a mining lease is granted for production of hydrocarbons.

 

Operators get to recover all their cost—whether successful or failed wells, from the oil and gas produced and sold from that particular block.

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District consumer forum orders HSBC Bank to pay Rs 25,000 for deficiency in service

The consumer forum directed the bank to issue a no-dues certificate to Delhi-resident Vinay Chola and to reconsider a fresh card for him. The forum also awarded him compensation of Rs25,000 towards litigation charges and harassment caused to him


The New Delhi District Consumer Disputes Redressal Forum has ordered Hongkong and Shanghai Banking Corporation (HSBC) to pay Rs25,000 as compensation to one of its former credit card holders for not getting his name removed from a defaulters list even after he cleared all his dues.

 

The consumer forum observed that once the card holder paid all the dues, the bank should have closed the accounts and informed the Credit Information Bureau (India) (CIBIL) that nothing was outstanding.

 

“We hold opposite party (HSBC Bank) deficient in service in not informing CIBIL of settlement of all outstanding dues of complainant...,” the bench presided by CK Chaturvedi said.

 

It directed the bank to issue a no-dues certificate to Delhi-resident Vinay Chola and to reconsider a fresh card for him. The forum also awarded him compensation of Rs25,000 towards litigation charges and harassment caused to him.

 

The order came on the complaint of Vinay who had alleged that his credit status with CIBIL showed him as a defaulter despite having cleared all his dues with the bank.

 

According to a settlement agreed upon with the bank, Vinay said, he had paid Rs25,000 in three separate instalments one of which was collected late by the recovery agents and the same was shown as outstanding by HSBC.

 

The bank, in its defence, had contended that the settlement amount was not paid within the agreed upon time.

 

The forum, however, rejected the contention saying its recovery agents collected the last payment late.

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COMMENTS

SuchindranathAiyerS

4 years ago

Foreign Banks in India run, for the most part, with Indians recruited off the streets and without the "apprentice" schemes of India's nationalized Banks. BUT, my former batch mates who are CGMs and above in SBI and have retired as CMD of PNB testify that the quality of employees, their trainability, commitment, and reliability have deteriorated sharply over the last few decades in faithful imitation of India's ruling scum.

Weekly Market Report: Will the Nifty, Sensex fight back before the Budget?

The Nifty will have to close above 5,920 in the next two days for a short upmove to start

 
Underperformance by the broader indices, mainly on lacklustre earnings from corporates, led the market marginally lower on a weekly basis. Disappointing industrial output data overshadowed the easing in the headline inflation. Investors are likely to play “wait-and-watch” ahead of the Union Budget on 28th February.
 
The Sensex closed the week down 17 points (-0.09%) at 19,468 and the Nifty fell 16 points (-0.27%) to 5,887. The Nifty will have to close above 5,920 in the next two days for a short upmove to start.
 
The market fell on Monday on lack of cues from Asia and on concerns about the nation’s economic growth. The Sensex snapped its eight-day losing streak to end higher on Tuesday despite lacklustre industrial output numbers for December.
 
Although the market was in the positive throughout the trading session on Wednesday, the benchmarks pared their gains in late trade to end marginally in the positive, on nervousness ahead of the release of the headline inflation data for January. Selling in heavyweights led the market lower on Thursday. The benchmarks settled lower on Friday on weak corporate earning and unsupportive global cues.
 
In the sectoral space, BSE PSU and BSE Healthcare ended flat while BSE Realty (down 5%) and BSE Capital Goods (down 4%) were the top losers.
 
Tata Motors, Sun Pharmaceutical Industries (up 6% each), HDFC Bank (up 4%), Coal India and ONGC (up 3% each) were the top Sensex gainers. The key losers were Maruti Suzuki (down 7%), Jindal Power & Steel (down 6%), Larsen & Toubro (down 4%), Bajaj Auto and Wipro (down 3% each).
 
The majors on the Nifty were Tata Motors (up 7%), Sun Pharma (up 5%), HDFC Bank, HCL Technologies (up 4% each) and Coal India (up 3%). Siemens (down 8%), DLF, Maruti Suzuki, JSPL (down 7% each) and BPCL (down 5%) were the main losers on the benchmark in the week.
 
The MCX Stock Exchange (MCX-SX) benchmark index SX40 went live with its equity trading platform on both the equities and equity derivatives on Monday. MCX-SX became India’s third full-fledged equity bourse after the BSE and the NSE.
 
Reserve Bank of India (RBI) governor Duvvuri Subbarao on Monday cautioned the country was headed for the highest ever current account deficit this fiscal, after it rose to 5.3% of GDP in the second quarter.
 
India’s retail inflation rose to 10.79% in January, on higher prices of vegetables, edible oil, cereals and protein-based items. On the other hand, Wholesale Price Index (WPI) based inflation fell to 6.62% in January, declining for the fourth month in a row, despite rise in prices of food items like vegetables, onions and rice.
 
Industrial output, as measured by the Index of Industrial Production (IIP) contracted to a three-month low of 0.6% in December on account of the poor performance of manufacturing and mining sectors and a slowdown in production of capital as well as consumer goods.
 
The Securities and Exchange Board of India (SEBI) on Wednesday ordered the attachment of all assets of two Sahara group firms —Sahara Housing Investment Corp and Sahara India Real Estate Corporation —besides freezing their bank accounts and those of their promoters and directors including that of group head Subrata Roy.
 
In international news, leaders Group of 20 nations on Saturday announced there would be no “currency war” and postponed plans to set new debt-cutting targets in an indication of concern about the fragile state of the world economy.

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