Gujarat NRE eyes oil exploration
Gujarat NRE Coke, a metallurgical coke maker, is planning to foray into the oil and gas exploration business through its subsidiary in Australia.
By Abhishek Shanker, TNN |
AHMEDABAD: Gujarat NRE Coke, a metallurgical coke maker, is planning to foray into the oil and gas exploration business through its subsidiary in Australia.
The company is in advanced talks to buy out the operator of an exploration and production (E&P) block in the Canning basin in North West Australia through its Australian subsidiary Zelos Resources, which is into mineral exploration and development.
“Zelos is in talks to acquire a 90% stake in an E&P block in the Canning basin, which is currently being operated by a private Australian oil and gas company,” sources told ET. The block is spread over 10,000 sq km in the oil-rich Canning basin.
“Within close proximity of about 150-200 miles in all four corners of the block under consideration there are established oil resources. There is a high possibility of finding oil reserves in the said block,” sources said.
Zelos, owned by Gujarat NRE, will invest about $3.5m as working capital in the two years after the acquisition. The buyout of the stake may be finalised by September-end. The company will then submit the development plan for the block.
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“For complete acquisition, certain regulatory and environmental clearances are required. The company is simultaneously working on getting the clearances,” sources said. Zelos has a portfolio of gold, coal, iron ore and base metal projects in Tasmania and South Australia. It has recently acquired the Catamaran coalfield in Tasmania. Gujarat NRE Coke, the Rs 554-crore company, has recently increased its holding in Zelos from 19-85%.
When contacted the company officials refused to comment on the development. “We are looking at various opportunities in Australia,” Arun K Jagatramka, vice-chairman and MD, Gujarat NRE Coke, said.
Gujarat NRE Coke has invested Rs 173 crore in various business initiatives in Australia. It first acquired the NRE No 1 colliery, which is located 18 km north of NRE Avondale.
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NRE No 1 has reserves of 300m tonne and a mine life of 100 years. The company is now working on commercialising production from the second mine, which should be operational by ’10.Start a SIP with as low as ₹500 with ET Money App!
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