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Interlink Petroleum enters into a binding MOU with Sun Petrochemicals

30 Mar 2015 Evaluate

Interlink Petroleum (IPL) has entered into a binding Memorandum of Understanding (MOU) with Sun Petrochemicals, through its exploration and production division, Sun Oil & Natural Gas (SONG), for the transfer and assignment from IPL to SONG of the Production Sharing Contracts (PSCs) in respect of its participating interests over the Modhera and Baola fields (the Assets). The Assignment MOU with SONG has been signed going by the financial and technical strengths of SONG.

Given current market conditions and the costs to be incurred by the Company as well as the projected time for the Assets to reach a commercially viable production stage, the Company considers this Assignment to be of benefit to shareholders of the Company. Following the Assignment completion, SONG will invest in the Assets and carry out further work programme for lifting production and monetizing the reserves of the Assets. Assuming that the Assets reach a production stage with certain criteria satisfied, the Company shall participate in the profit sharing with SONG with respect to the Assets.

Peers
Company Name CMP
ONGC 287.55
Oil India 463.10
Jindal Drilling&Inds 543.30
Deep Industries 490.25
Asian Energy Service 299.15
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