Oil Stocks Outlook: State-run marketing cos' shrs seen up next wk

[naresh0...@yahoo.co.in]

Oil Stocks Outlook: State-run marketing cos' shrs seen up next wk
Friday, Apr 11

NEW DELHI - Shares of state-run oil marketing companies are likely
to remain positive next week tracking broader markets, analysts said
today.
Shares of oil companies are expected to move up with broad markets
despite high crude oil prices and mounting under-recoveries...The
quarterly results of technology bellwether Infosys results may trigger
a run-up in stocks.
However, rising crude oil prices could have a negative impact on
oil
marketing shares. The total under-recoveries during 2007-08 stood at
773 bln rupees, and industry officials expect it to touch 1.3 trln
rupees during 2008-09 if crude prices remain at current level.
India's crude oil basket Thursday touched an all-time high of
$104.41 a barrel (about 4,166 rupees), up $1.70 a barrel from
Wednesday.
The crude basket previously touched a high of $103.80 a barrel on
Mar 14.
Global crude oil prices continue to hover above $110-a-barrel-
level amid a weaker dollar.
However, we may see weakness in oil stocks on Thursday as
investors may liquidate their positions before a long weekend.
Shares of state-run oil major Oil and Natural Gas Corp. are likely
to be remain in the limelight next week on the news of its overseas
arm ONGC Videsh inking a pact with Venezuela's national oil.

On Wednesday, OVL inked a pact with Petroleos De Venezuela SA, or
PDVSA, to jointly undertake oil and natural gas exploration and
production projects.
The MoU was signed along with a joint venture agreement between
the two sides for further development of San Cristobal oilfield in
Venezuela's Orinoco oil belt.
ONGC Videsh will own 40% equity in the Venezuelan project, with
PDVSA owning the remaining.
The Venezuelan investment by ONGC Videsh includes a signing bonus
of $174 mln and capital expenditure of $182 mln in the project, which
the Union Cabinet had approved last month.
Kejriwal said shares of Reliance Industries Ltd. are expected to
extend their gains next week also following the news that the company
has started talks with global oil majors to offload up to 10% stake in
its prolific D6 Block in offshore Krishna-Godavari Basin.
RIL is the operator and holds 90% stake in D6 Block, while
Canada's Niko Resources holds the remaining.
Getting a partner who can bring technical expertise for RIL in
developing D6 Block is good news.
Reliance is developing the Dhirubhai 1 and Dhirubhai 3 fields,
with
estimated 14.5 trln cu ft gas reserves and MA fields with 140 mln
barrels of oil reserves, within the D6 Block.
Reliance, the operator of the D6 Block, plans to produce 40 mmscmd
gas and 150,000 barrels oil per day from it. It plans to ramp up gas
output to 80 mmscmd by 2011-12.
.
Below are Friday's closing share prices, in rupees, of leading oil
companies on National Stock Exchange, compared with a week ago:
.
Company Closing price Closing price % Change
Apr 11 Apr 4
.
Oil and Natural Gas Corp 1,002.85 1,005.20 (-) 0.2
Indian Oil Corp 452.45 454.60 (-) 0.5
Bharat Petroleum Corp 393.65 405.40 (-) 2.9
Hindustan Petroleum Corp 247.00 256.30 (-) 3.6
Reliance Industries 2,551.55 2,321.15 9.9
Cairn India 252.15 225.85 11.6
.
Nifty 4777.80 4647.00 2.8
Sensex 15807.64 15343.12 3.0
.
End
.