ONGC starts oil, gas production from GS-15 field

ONGC has also drawn up plans to begin production from its G-1 marginal field in the KG Basin from July 2012

Oil and Natural Gas Corp (ONGC) has started oil and gas production from its Krishna Godavari basin GS-15 field off the Andhra coast.

"We started production last week," ONGC director (offshore) Sudhir Vasudeva said on the sidelines of the World Energy Policy Summit. He said ONGC has also drawn up plans to begin production from its G-1 marginal field in the KG Basin from July 2012.

The company has asked the petroleum ministry to identify gas users and approve a price of $4.75 per million British thermal units. About 0.19 million standard cubic metres per day of gas is being produced, he said, adding that output would go up to 1.52 mmscmd from July next year (subsequent to the G-1 field coming onstream) and to 1.72 mmscmd in 2013-14.

ONGC cited the Oil Ministry's gas pricing order, which had fixed a base price of $4.50 per mmBtu for gas from the KG Basin and given an additional $0.25 per mmBtu if the gas was coming from offshore fields, to demand a gas price of USD 4.75 per mmBtu.

The official said the output will begin to dip from 2013-14 to 1.59 mmscmd and taper to 0.029 mmscmd by 2022-23. The field will also produce 9,400 barrels of crude oil per day.

ONGC envisages the production of 0.982 million tonnes of sweet or low-sulfur crude and 5.92 billion cubic metres of gas over a period of 15 years from G-1 and GS-15. G-1 is located 28 kilometres off the Amalapuram coast, in water depths ranging from 135-500 metres, while GS-15 is located 5 km from the coast in the KG Basin. G-1 and GS-15 are two marginal fields that were awarded to ONGC on a nomination basis. The two acreages are being developed together at an estimated cost of Rs1,200 crore.

In the late afternoon, ONGC was trading at around Rs263.20 per share on the Bombay Stock Exchange, 0.86% up from the previous close.

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Rico Auto wins export order worth Rs70 crore per annum

Rico Auto will supply both manual and automatic transmission and the shipment is likely to start from June 2012

Auto component maker Rico Auto said it has won an export order worth up to Rs70 crore annually to supply transmission to a global passenger car maker.

"We have recently got an export order to supply transmissions to a global passenger car maker, which is also present in India. The order size is Rs50-Rs70 crore for every year and we expect to continue this for 7-8 years," Rico Auto managing director Arvind Kapur told reporters on the sidelines of the Automotive Component Manufacturers Association (ACMA) summit.

The company will supply both manual and automatic transmission and the shipment is likely to start from June 2012.

"We have not decided on the plants where we will produce this transmission but we may use our Sanand unit," he said. Without elaborating, Kapur said the company will invest Rs30-Rs40 crore in the next two-three years on the export project to augment capacity of its various plants.

On the domestic front, the company will invest Rs40-Rs50 crore this financial year to expand capacity of its existing facilities. When asked about the revenue, he said the company is expecting a turnover of Rs1,250 crore compared Rs1,015 crore last fiscal.

"We are targeting 10% margin this fiscal. Last two years, we had blip in our margins but before that we were (witnessing) 7%-8% of profit margins," Kapur said.

In the late afternoon, Rico Auto was trading at around Rs13 per share on the Bombay Stock Exchange, 1.96% up from the previous close.

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Peerless MF introduces Equity Fund

Peerless MF new issue closes on 21st September

Peerless Mutual Fund has launched Peerless Equity Fund, a close-ended income scheme.

The investment objective of the scheme is to generate long term capital appreciation by investing in an actively managed portfolio predominantly consisting of equity & equity related securities diversified over various sectors.

The new issue closes on 21st September. The minimum investment amount is Rs1,000.

S&P CNX Nifty is the benchmark index. Kaushik Dani (for equity) & Ganti N Murthy (for debt) are the fund managers.

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