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ONGC to stay away from RGTIL’s stake sale

03 Apr 2012 Evaluate

Oil and Natural Gas Corporation (ONGC) will not be participating in the stake sale of Mukhesh Ambani’s owned Reliance Gas Transportation Infrastructure (RGTIL). However, other state firms such as Oil India and Gail India will be evaluating the prospect. Mukesh Ambani is reported to be seeking a valuation of up to Rs 10,000 crore for the company

Reliance Gas Transportation Infrastructure (RGTIL), operates the $3.75-billion East-West pipeline that was built to deliver D6 gas to Karnataka, Maharashtra and Gujarat. Further, it has appointed JPMorgan, Citigroup and SBI Caps as advisors for the stake sale.

Gail, which is keen to develop a countrywide network of pipelines, has shown interest preliminary interest in the ongoing stake sale of RGTIL, however, commercial due diligence is yet to be conducted by the company.

According to industry connoisseur, the key issue affecting the stake-sale is the steep fall in gas production at KG-D6, which has now hit an all time low of 28.16 mmscmd, the lowest level since RIL began output from the KG-D6 block in April 2009.

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283.95 1.20 (0.42%)
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