Jehan Energy Buys British Borneo & #39;S Pie In Hoec

The UK-based Jehan Energy has purchased 8.5 per cent holding of British Borneo Oil & Gas, the Dutch oil company, in private sector oil exploration company Hindustan Oil Exploration Co (HOEC) at Rs 15 per share. Jehan has acquired 49.93 lakh shares of British Borneo, HOEC informed the Bombay Stock Exchange (BSE) on Tuesday.

The Rs 7.5 crore deal is part of British Borneo's strategic decision to make an exit from the country, and comes on the eve of the deregulation of the petroleum sector. The Dutch oil company's exit is part of its global strategy to concentrate on fewer blocks which have a higher potential. It is understood that the company is more interested in blocks in Brazil, which have better prospects.

In India, British Borneo held a minority interest in the PY3 block and licenses for three smaller oil and gas fields near Cambay in Gujarat along with HOEC.

Meanwhile, HOEC has obtained environmental clearances for drilling a well at the CB-OS-1 block in the Gulf of Cambay.

The company has been pursuing the clearances for drilling three wells at the block for over an year now. The company is expecting clearances from the ministry of environment and forest for the remaining wells in the near future.