Jindal Steel to float petroleum subsidiary
JSPL plans to float a wholly-owned subsidiary -- Jindal Petroleum (JPL) -- which would look after the domestic and overseas oil and natural gas operations of the company.
By Pramugdha Mamgain, ET Bureau |
NEW DELHI: Naveen Jindal-led Jindal Steel and Power (JSPL) plans to float a wholly-owned subsidiary ������ Jindal Petroleum (JPL) ������ which would look after the domestic and overseas oil and natural gas operations of the company. It is learnt that the firm has acquired exploration rights to one oil block in Rajasthan, four blocks in Georgia and three blocks in Peru (South America).
Recently, the company along with Namibia-based Enigma Oil and Gas Exploration (EOGE), received exploration rights to three onshore oil blocks in the Maranon and Huallaga basins in northern Peru.
EOGE is a wholly-owned subsidiary of Chariot Oil & Gas, an independent oil and gas exploration group. JSPL owns 50% in Block 159 in the Maranon basin, and 80% interest in each of the other two ������ Block 147 in Maranon and Block 153 in the Huallaga basin. The remaining stake in the blocks is held by EOGE.
���To attain energy security, the government has started New Exploration Licensing Policy to attract private sector companies to invest in oil and gas exploration. We are using this opportunity and intend to form a separate arm that would control all oil and gas operations of the parent company,��� JSPL���s director (finance), Sushil Maroo, told ET.
Asked about oil blocks in Georgia and Rajasthan, Mr Maroo refused to divulge any detail. He said, ���We now have access to oil blocks in Peru, the exploration work on which is expected to commence in the next months. Following exploration, a detailed study will be conducted on the region and after a year drilling work will begin.���
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According to sources, the company has also been allotted exploration rights to an oil block near Jaisalmer, Rajasthan. The block is spread across an area of 1,400 sq km.In addition the firm has acquired four blocks in Georgia and is in the process of acquiring few blocks in Bolivia. In the upstream sector, the company���s long-term plan is to acquire exploration blocks besides producing fields.
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