GOVT STRIKES DOWN IOC'S MARKETING JV DEAL
Article Abstract:
The Government of India has cancelled the marketing tie- up between the Indian Oil Corporation (IOC) and Reliance Petroleum and Essar Oil. The bar is till 2002 AD when the oil prices will be completely decontrolled. According to the pact, 50 percent of the production of Reliance Petroleum and Essar Oil had to be marketed by the Indian Oil Corporation and the rest by the joint venture company of Reliance Petroleum, Essar Oil and the Indian Oil Corporation. The Government has asked the Indian Oil Corporation to change the pact to include the Bharat Petroleum Corporation and the Hindustan Petroleum Corporation in the venture. As per the modifications, 50 percent of production of Reliance Petroleum and Essar Oil will be marketed by the Indian Oil Corporation, while the Bharat Petroleum Corporation Ltd and the Hindustan Petroleum Corporation Ltd will market 25 percent of the output each till 2002 AD. This deal is only for the controlled products of petrol, diesel, aviation turbine fuel and kerosene. The tie-up between the Indian Oil Corporation, Reliance Petroleum and Essar Oil will be valid for marketing de- controlled crude oil products. (um)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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PETRONET LNG LIKELY TO SEE CHANGE IN PSU HOLDINGS
Article Abstract:
Restructuring of the stake of the public sector units (PSUs) in Petronet LNG is likely as the 4 oil companies promoting it have rejected the proposal of the National Thermal Power Corporation to acquire 26 percent stake in Petronet LNG. The 4 promoters - the Indian Oil Corporation, the Gas Authority of India Ltd, the Bharat Petroleum Co Ltd and the Oil and Natural Gas Company - feel that 26 percent holding will allow the National Thermal Power Corporation to virtually dictate terms on all important business matters. Now the Indian Oil Corporation, the Gas Authority of India Ltd, the Bharat Petroleum Co Ltd and the Oil and Natural Gas Company hold 12.5 percent each, accounting for 50 percent of the equity of Petronet LNG. The Natural Thermal Power Corporation may be allowed to acquire 16-18 percent stake in Petronet LNG. These companies are engaged either in oil/gas business or power production. (tsm)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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