The shares of Reliance Industries fell Rs 32 or 3% to Rs 998 early Friday after the petroleum major told the oil regulator that gas production from its KG Basin block could be lower than earlier estimates, according to a report on indianpetro.com. The website is a news, information and market intelligence provider in the Indian oil & gas, power and fertilizer sectors.
Reliance is said to have responded to the points raised by the regulator regarding the expansion of production capacity and operational efficiency at the KG Basin block.
A few days back S K Srivastava, the Director-General of the sectoral regulator, the Directorate General of Hydrocarbons, was quoted saying that as per the approved field development plan (FDP), gas production in KG basin should rise to 67 mmscmd in April.
“Both the announcements are contradictory,” said Vivek Mahajan, Head of Research, Aditya Birla Money. “How can 67 become 38 suddenly? I may recommend buying RIL if the stock falls to Rs 955-975. Statements should be made with due care,” he said.
In its replies to the regulator, RIL has said that production of natural gas and crude oil could drop even further, unless radical changes can be implemented at the block.
“RIL is now more of a trader’s bet. Long term investors should stay away unless the confusion over gas production gets clear,” said Sunil Jain, head of research, Nirmal Bang, adding that the stock was likely to be range bound for a while.”
Reliance is said to have responded to the points raised by the regulator regarding the expansion of production capacity and operational efficiency at the KG Basin block.
A few days back S K Srivastava, the Director-General of the sectoral regulator, the Directorate General of Hydrocarbons, was quoted saying that as per the approved field development plan (FDP), gas production in KG basin should rise to 67 mmscmd in April.
“Both the announcements are contradictory,” said Vivek Mahajan, Head of Research, Aditya Birla Money. “How can 67 become 38 suddenly? I may recommend buying RIL if the stock falls to Rs 955-975. Statements should be made with due care,” he said.
In its replies to the regulator, RIL has said that production of natural gas and crude oil could drop even further, unless radical changes can be implemented at the block.
“RIL is now more of a trader’s bet. Long term investors should stay away unless the confusion over gas production gets clear,” said Sunil Jain, head of research, Nirmal Bang, adding that the stock was likely to be range bound for a while.”
No comments:
Post a Comment