Hoec Offers Stake To Unocal

Hindustan Oil Exploration Company Ltd (HOEC) has decided to offer 15.28 million equity shares of Rs 10 each on a preferential basis to the US-based Unocal Corporation. The board, which met yesterday, has decided to offer the preferential equity at a premium not less than Rs 42.50 per share.

"The issue price of Rs 52.50 per share is at a premium of 81 per cent over the closing price of Rs 29 per share on June 22, 1998," stated a press release. The funds raised will be utilised for HOEC's ongoing expansion and development projects. Unocal will now be able to enter India's exploration and production sector.

'With the induction of Unocal, HOEC is confident of playing a meaningful role in the engineering and procurement sector", the release added.

HOEC recorded a net profit of Rs 5.08 crore in 1997-98 compared with Rs 55 lakh in the previous year. The profits were mainly generated from PY-3 field for which the company has already drawn early exploration plans.

The company's turnover stood at Rs 25.68 crore against Rs 7 lakh in 1996-97.

The company is in advance stage of signing production sharing contracts with the government for block located in Gujarat and north-east India.