After opening the day in red, Share markets in India have traded on a volatile note and are presently trading above the dotted line. Sectoral indices are trading on a positive note, with stocks in the consumer durables sector and stocks in the auto sector witnessing maximum buying interest.
The BSE Sensex is up by 125 points (up 0.4%) and the NSE Nifty is trading up by 24 points (up 0.2%). Meanwhile, the BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.7%. The rupee is trading at 64.69 to the US$.
In news from stocks in the oil and gas sector. ONGC share price and Oil India share price are among the top gainers on the bourses today. The surge comes amid reports that the oil ministry is considering handing over 15 functional oil and gas fields run by ONGC and Oil India Ltd (OIL) to private players.
According to media reports, the oil ministry is expected to approach the Union Cabinet to allow private companies take 60% stake in producing oil and gas fields of national oil companies, ONGC, and OIL, with the view that they would raise production above the baseline estimate.
The oil ministry has identified as many as 15 fields – 11 of ONGC and four of Oil India – with cumulative inplace reserve of 791.2 million tonnes of crude oil and 333.5 billion cubic metres of gas have been identified.
ONGC, India’s largest explorer, will lose control over 11 fields, including Kalol, Ankleshwar, Gandhar – all prized projects producing oil and gas – and the Santhal oilfield. OIL will lose Moran, Greater Dikom, Greater Chandmari and Eastern Satellite, all of which produce oil.
All of these oil fields are in blocks or areas that were given to the national oil companies on nomination basis and the current policy does not allow private firms taking equity stake in a nomination block. This would require a change in policy, for which the oil ministry is approaching the cabinet.
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