ONGC drops as ONGC Videsh loses bid for oil field stake in Kazakhstan

The announcement was made during trading hours today, 3 July 2013.

Meanwhile, the S&P BSE Sensex was down 270.34 points or 1.39% at 19,193.48.

On BSE, 1.49 lakh shares were traded in the counter as against average daily volume of 3.11 lakh shares in the past one quarter.

The stock hit a high of Rs 319.55 and a low of Rs 312.80 so far during the day. The stock had hit a 52-week low of Rs 248.75 on 27 November 2012. The stock had hit a 52-week high of Rs 354.10 on 18 January 2013.

The stock had outperformed the market over the past one month till 2 July 2013, sliding 1.39% compared with the Sensex's 1.5% fall. The scrip had, however, underperformed the market in past one quarter, gaining 1.77% as against Sensex's 2.22% rise.

The large-cap state-run oil exportation major has equity capital of Rs 4277.74 crore. Face value per share is Rs 5.

ONGC said that based on communication received through ConocoPhillips (COP), the Government of Kazakhstan has announced that in accordance with the Republic of Kazakhstan Law (ROK) on Subsurface and Subsurface use, ROK has exercised its priority right and pre-empted the bid by the 100% owned subsidiary of ONGC viz. ONGC Videsh to acquire 8.4% stake of ConocoPhillips in the North Caspian Sea Production Sharing Agreement (NCS PSA). It is understood that KazMunayGaz (KMG), the national oil company of Kazakhstan shall be designated as the buyer, on behalf of the state, ONGC said.

ONGC Videsh had in November 2012 finalized the definitive agreements for acquisition of 8.4% participating interest of ConocoPhillips in NCS PSA. The bid of ONGC Videsh was not pre-empted by the Co-venturers of the NCSPSA within the stipulated time period that ended in January 2013, ONGC said.

ONGC's net profit declined 40% to Rs 3388.71 crore on 13.7% growth in net sales to Rs 21388.72 crore in Q4 March 2013 over Q4 March 2012.

The Government of India (GoI) holds 69.23% stake in ONGC (as per the shareholding pattern as on 31 March 2013).

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