ONGC and Oil India rose 0.93% to 1% at 10:29 IST on BSE after CCEA on Tuesday approved the proposal of oil ministry on exploration and exploitation of shale gas and oil by National Oil Companies on acreages under the nomination regime.
Oil India (up 1% at Rs 470.05) and ONGC (up 0.93% at Rs 276.90) edged higher.
Meanwhile, the S&P BSE Sensex was down 27.07 points or 0.14% at 19,893.14.
ONGC had underperformed the market over the past one month till 24 September 2013, sliding 0.8% compared with the Sensex's 7.56% surge. The scrip had also underperformed the market in past one quarter, declining 8.2% as against Sensex's 7.44% gain.
Oil India had underperformed the market over the past one month till 24 September 2013, rising 3.43% compared with the Sensex's 7.56% surge. The scrip had also underperformed the market in past one quarter, declining 16.28% as against Sensex's 7.44% gain.
The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the proposal of the Ministry of Petroleum and Natural Gas on the policy on exploration and exploitation of shale gas and oil by National Oil Companies (NOCs) on acreages under the nomination regime. This policy will allow NOCs to carry out exploration and exploitation of unconventional hydro-carbon resources particularly shale gas and oil in their already awarded onland Petroleum Exploration License/Petroleum Mining Lease (PEL/PML) acreages under the nomination regime.
NOCs shall apply for grant of shale gas and oil rights in their interested PEL/PML acreages and are required to undertake a mandatory minimum work programme, the government said in a statement. The company is permitted three assessment phases of a maximum period of three years each. Royalty, Cess and Taxes would be payable at par with conventional oil/gas being produced from the respective areas, the government said.
It is well acknowledged that production requirements and profile for shale oil and gas is different from conventional gas and oil. In view of this and the fact that the technologies required for production have been developed in the recent past, it was felt that a policy be put in place to achieve early development of these resources and to address issues arising out of E&P activities in shale gas and oil, the government said in a statement.
Oil India's net profit fell 34.5% to Rs 609.08 crore on 15.1% decline in net sales to Rs 1980.88 crore in Q1 June 2013 over Q1 June 2012.
ONGC's net profit fell 33.9% to Rs 4015.98 crore on 4.3% decline in net sales to Rs 19218.31 crore in Q1 June 2013 over Q1 June 2012.
The GoI holds 69.23% stake in ONGC (as per the shareholding pattern as on 30 June 2013). The GoI holds 68.43% stake in Oil India (as per the shareholding pattern as on 30 June 2013).
Powered by Capital Market - Live News
