Reliance Industries rose 0.22% to Rs 971.30 at 9:45 IST on BSE after Canada's Niko Resources on Friday, 14 November 2014, said it is evaluating plans for its oil and gas assets in India.
Niko Resources made the announcement after trading hours on Friday, 14 November 2014.
Meanwhile, the S&P BSE Sensex was down 50.98 points or 0. 18% at 27,995.68.
On BSE, so far 14,530 shares were traded in the counter as against average daily volume of 3.15 lakh shares in the past one quarter.
The stock hit a high of Rs 974.25 and a low of Rs 966.95 so far during the day. The stock had hit a 52-week high of Rs 1142.50 on 16 May 2014. The stock had hit a 52-week low of Rs 794 on 28 February 2014.
The large-cap firm has an equity capital of Rs 3234.81 crore. Face value per share is Rs 10.
Niko Resources said at the time of announcement of its Q2 September 2014 results that there is uncertainty around the long-term natural gas price outlook in India and as a result, the company is evaluating its plans for its assets in India. RIL is the operator of the D6 Block, off the eastern coast of India with 60% stake. Niko owns 10% and BP Plc has a 30% stake in the block.
In October 2014, the Government of India announced its new domestic gas pricing policy effective 1 November 2014. The announced price for the period from November 2014 to March 2015 is a 33% increase over the price received previously and the company expects to receive a cash benefit of $4 million over this period related to gas sales from the MA field in the D6 Block in India, Niko Resources said in a statement. The new gas pricing guidelines indicate that for all discoveries after the issuance of these guidelines, in Ultra Deep Water Areas, Deep Water Areas and High Pressure-High Temperature areas, a premium would be given on the gas price determined as per the formula defined in the guidelines, with the premium to be determined as per prescribed procedure. The applicability of the premium to existing undeveloped discoveries in the D6 and NEC-25 blocks, such as the discoveries included in the approved plans of development for the R-Cluster and Satellite Areas, remains to be clarified, Niko Resources said. The development of these discoveries is dependent on the future long-term price outlook for gas sales from these projects and the uncertainty in this outlook could mean that the development of these reserves could be deferred and/or material reductions in the company's reported reserves or future net revenues could result, Niko Resources said.
RIL' s consolidated net profit rose 1.3% to Rs 5924 crore on 5.1% fall in total income to Rs 111806 crore in Q2 September 2014 over Q2 September 2013.
Reliance Industries is a part of Reliance Group and is into petroleum refining and marketing, exploration & production and manufacture of petrochemicals.
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