RIL to spend over $12b to develop three gas basins

Wednesday, December 12, 2007

RIL will invest over $12 billion to develop its gas finds in the Krishna Godavari (KG) basin, Mahanadi and the North East Coast. Of this, about $8.8 billion has been earmarked for its biggest find in the KG basin that will yield 80 million metric standard cubic meters per day (mmscmd) of gas.

An additional $3 billion will be used to develop the gas fields in the Mahanadi and NEC basins over the next four years. The company has submitted the development plan to the upstream regulator, the Directorate General of Hydrocarbons (DGH) for approval, sources close to developments said.

Over 98% of RIL’s revenues currently come from refining and petrochemicals, with oil and gas production accounting for only about 2%. This ratio is likely to change substantially over the next few years, when commercial production from KG begins.

RIL signs contract for blocks in Colombia

Wednesday, December 12, 2007

Reliance Industries Ltd has signed hydrocarbon production and exploitation contracts with Agencia Nacional de Hydrocarburos (ANH) of Colombia for two offshore blocks, Borojo north and Borojo south, according to press release.

The contract for six years has an exploration budget of about $50 million. The contract provides exploration period consisting of four phases of 18 months each, with ‘exit right’ at the end of each phase.

The contracts were signed on Monday in Bogota, Colombia. These contracts will in due course be assigned to REP DMCC, a 100 per cent subsidiary of RIL. It envisages exploration of the blocks located in the Pacific Ocean, west of Colombia in water depths reaching up to 1,500 metres. Each block size is approximately 4,000 sq km. RIL had signed technical evaluation agreement in 2005, which have been now converted into contracts.

ADAG to set up power, cement plants in MP

Wednesday, December 12, 2007

Reliance Power Ltd, promoted by Reliance Anil Dhirubhai Ambani Group, has proposed to set up a 4,000 Megawatt pithead power plant in Sidhi district of Madhya Pradesh.

The company has also planned to set up a cement plant somewhere in the Satna region, where limestone is in abundance.

“The company had signed a deal with the state government for both the projects and we are in process of extending all possible support,” a senior government official told Business Standard.

The project will be in addition to the Ultra Mega Power Plant proposed in Sasan. The newly planned power project will supply coal ash to the proposed cement plant.

IDFC Updates...

Tuesday, December 04, 2007


AMID block deals, the stock of Infrastructure Development Finance Company (IDFC) rose 6% to close at Rs 216.15, after touching a new high of Rs 217.80 during the day. Most brokerages, which track IDFC are positive on the company’s prospects, but feel the stock is a bit overpriced at these levels. Quick Gun Morgan (who recently split with his partner) is an exception to the trend, having upgraded its target price for the stock to Rs 250 last week, pointing to the imminent rise in infrastructure spending as the local economy grows rapidly.

The Pink Panther and his group of friends are said to have been building up positions at the counter over the past few sessions. In addition, a domestic brokerage with interests in real estate is said to have been making sizeable purchases on behalf of an anonymous client. There is talk that bulls will try to spread the ‘valuation story’, pointing to the company’s holding in brokerage house SSKI, the likelihood of an IPO and the premium valuations being commanded by brokerage houses.

Videocon Updates...

Tuesday, December 04, 2007


During the bull run in the late 90s any stock with a technology story would be besieged by frenzied buyers. The ongoing rally at the bourses that began in 2003 has seen many fads. The latest appears to be companies with an oil story to it. After the spectacular upswing in Reliance Petroleum and Essar Oil stocks, bulls are flocking to the Videocon Industries counter. The mutual fund arm of a corporate with interests in energy and telecom, and a former star fund manager at the erstwhile Alliance Capital, are reported to have taken huge positions at the counter.

The company had made a presentation to some deep-pocket investors last week, though the details are not yet known. Bulls in the stock are circulating the theory that the company’s oil exploration arm has made a huge find in Oman, which has not yet been made public. When contacted, a senior official of the company denied any such development. The stock of the company surged 20% to close at Rs 491.70 with 21.8 lakh shares changing hands on BSE alone, more than twice the 2-week daily average volume.

Vinyl Chemicals update....

Thursday, December 06, 2007


The Scheme of demerger of the Company´s Manufacturing Undertaking at Mahad (Appointed date being April 01, 2007) into Pidilite Industries Ltd has been approved by the Shareholders of the Company as well as of Pidilite Industries Ltd at the Court Convened Meetings of the Equity Shareholders of both the Companies held on August 27, 2007. The Hon’ble High Court of Judicature at Bombay has fixed the date of hearing on November 23, 2007 for considering the Scheme. Accordingly, the figures shown herein also include those relating to the said Manufacturing Undertaking and provision for tax (MAT) and review of Deferred Tax Asset (as earlier recognised) have been dealt with in consonance therewith, all of which are subject to review after the outcome of the foregoing Scheme is known.

The Company´s current business activity has only one primary reportable segment, namely Chemicals - which comprises manufacturing and trading mainly in Vinyl Acetate Monomer.

Finally Bulls succeeded in their plan

Plan executed.....Tuesday, December 11, 2007 Finally Bulls succeeded in their plan in misguiding market conveniently by taking Sensex to 20300. The much sought after barrier of 20 K was broken at such a time when nobody desired and nobody interested in taking positions home due to FED action. Well for me, FED or no FED the destiny of market is fixed. 6200 and then 6400 inevitable. Stocks like MTNL and R Com came in action keeping other stocks at bay. DSP issue a report on RIL valuation where it has specifically dealt with the likely merger of RPL with RIL. Though they have much favoured call for RIL we have long call in all RIL gr companies. Any rally whether permanently or vallan wise can’t get aborted without RIL stock going into FIZZA and therefore no matters whether FED cuts interest rate or not RIL gr stocks will rise taking Sensex to new height. In fact, realty stocks have fired all the way in India as if the rate is going to be cut in India itself. Well, take advantage of Fed rate cut and use the rally to exit trading positions in realty stocks though long term is absolute bullish. RIL gr has already announced IPO of Reliance retail in 08 which will keep RIL stocks firing and again do not forget the news of stock split will take center stage by 28th Dec 2007. Apart from, RIL stock, we are extremely bullish on Ahmedanagar forging rather all forging whether it is Bharat, KIC, Carnation or Aditya. Ahmednagar where FII holding is 31% is slated for big movement and one more stock where i Develop is ahead of market. Very soon news, technical break out all will come in this stock. Co set to report huge Q3 profits, acquisitions and fresh deals with new FII would keep this stock going. In fact, we know a deal is likely to happen at Rs 280 and this could happen even tomorrow. Earlier all funds had taken positions at Rs 350 plus and hence the there is upside o at least Rs 350 per share. Co set to report huge Q3 profits at 08 PE stock is available at lower than 10 PE. A must in the portfolio. I would call upon all my friends who were waiting for 5000 when Nifty was 5500 and I was calling the calls of 6200. Once again I would like to send you only one message please do not go with wind. What you can’t see, I can see though you may not agree at the given point in time. Still, GOD may bless even those who have lost faith in me because whether you lose faith or not I have to justify my JOB on hand. There is at least one investor who has thanked me for Bhagwati Gases as he holds more than 25000 shares at Re 1 cost and still enjoying the ride. I must thank him for showing faith in me. Also to all whose reference I am not giving here but still have full faith in me. We take our bearings, daily, from others. To be sane is, to a great extent, to be sociable.