Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
OIL INDIA: Key takeaways
Volume growth to drive earnings. OIL management has guided to (1) increase in oil
production to 3.91 mn tons by FY2013E and (2) increase in gas production to 2.9 bcm by
FY2013E. The target oil production is expected to be achieved through implementation of
EOR/IOR techniques on its existing producing fields.
Huge investments in E&P sector. OIL management highlighted its focus on (1)
undertaking significant exploration and development work on its existing acreage and (2)
looking for opportunities for inorganic growth. OIL plans to spend ~US$1.6 bn on E&P
activities and acquisition of overseas acreage over the next two years.
Large reserves and high R/P ratio. OIL has 521 mn boe of 1P reserves, 957 mn boe of
2P reserves and 1,437 mn boe of 3P reserves as of March 2010. OIL’s R/P ratio has been
impressive at 1.86X in FY2007-10.
Subsidy burden. OIL highlighted oil ministry’s statement that subsidy burden on
upstream companies will be restricted to one-third of overall under-recoveries. The
subsidy losses for upstream companies have been restricted to one-third of gross underrecoveries
in 9MFY11 and the company doesn’t expect it to change.
Gas price. The company highlighted that government has authorized OIL to sell gas from
nominated fields at market price with prior approval from government.
Project Carabobo in Venezuela. OIL has 3.5% stake in this project which contains two
blocks (North and Central). The block is estimated to hold in-place reserves of 27.3 bn
bbls with an estimated 3 bn bbls of recoverable reserves. The daily production from this
block is estimated at 400,000 b/d (OIL’s share at ~14,000 b/d). OIL’s share of investment
is estimated at US$424 mn with a debt-equity ratio of 1.5:1.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
OIL INDIA: Key takeaways
Volume growth to drive earnings. OIL management has guided to (1) increase in oil
production to 3.91 mn tons by FY2013E and (2) increase in gas production to 2.9 bcm by
FY2013E. The target oil production is expected to be achieved through implementation of
EOR/IOR techniques on its existing producing fields.
Huge investments in E&P sector. OIL management highlighted its focus on (1)
undertaking significant exploration and development work on its existing acreage and (2)
looking for opportunities for inorganic growth. OIL plans to spend ~US$1.6 bn on E&P
activities and acquisition of overseas acreage over the next two years.
Large reserves and high R/P ratio. OIL has 521 mn boe of 1P reserves, 957 mn boe of
2P reserves and 1,437 mn boe of 3P reserves as of March 2010. OIL’s R/P ratio has been
impressive at 1.86X in FY2007-10.
Subsidy burden. OIL highlighted oil ministry’s statement that subsidy burden on
upstream companies will be restricted to one-third of overall under-recoveries. The
subsidy losses for upstream companies have been restricted to one-third of gross underrecoveries
in 9MFY11 and the company doesn’t expect it to change.
Gas price. The company highlighted that government has authorized OIL to sell gas from
nominated fields at market price with prior approval from government.
Project Carabobo in Venezuela. OIL has 3.5% stake in this project which contains two
blocks (North and Central). The block is estimated to hold in-place reserves of 27.3 bn
bbls with an estimated 3 bn bbls of recoverable reserves. The daily production from this
block is estimated at 400,000 b/d (OIL’s share at ~14,000 b/d). OIL’s share of investment
is estimated at US$424 mn with a debt-equity ratio of 1.5:1.
No comments:
Post a Comment