New Delhi: State-owned exploration and production (E&P) major Oil and Natural Gas Corporation (ONGC) today said it has appointed two international auditors to certify its oil and gas reserves, ahead of a planned share sale early next year, reports PTI.
"We have appointed D&M (DeGolyer and MacNaughton) and Gaffney, Cline and Associates as reserve auditors to value our reserves," ONGC chairman and managing director RS Sharma told reporters at the Economic Editors Conference here.
The government plans to sell 5% of its shares in the follow-on public offer (FPO) in March 2011.
"We are ready for the FPO but not before the first quarter of 2011 calendar year," he said.
ONGC may ask the two reserve auditors to certify reserves in its 15 key oil and gas fields out of the about 150 discoveries it has made in the country.
"Certifying reserves for all the 150 fields will take six to eight months and we do not have that kind of time," he said.
Mr Sharma said ONGC usually gets its reserves audited every five years but this time it is getting a certification in the third year because of the planned FPO.
The proposed 5% divestment in ONGC may fetch the government about Rs 10,800 crore.
Post offer, the government’s shareholding in ONGC will come down to 69.14% from current 74.14%.
"The ministry of petroleum and natural gas has accorded in-principle approval (to the share sale) and the Department of Disinvestment has circulated a note for inter-ministerial consultations," oil secretary S Sundareshan said.
Before the ONGC offer, Indian Oil Corporation, the nation's largest company, will come out with an FPO in January 2011.
"It is proposed that IOC will issue fresh equity capital of up to 10% of its paid up capital along with a simultaneous disinvestment of 10% of the government shareholding in the company," he said.
The government is likely to realise about Rs8,000 crore while IOC will fetch about Rs10,100 crore to meets its capital expenditure requirement.
The government’s holding post fresh issue and disinvestment will come down to 62.65% from the current 78.92%.
Mr Sundareshan said Department of Disinvestment will decide on the timing and slotting of the issues keeping in mind issues like overcrowding the market.
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