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ONGC and Assam Company to share 60-40 in Amguri Oil Field

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: New Delhi, March 29, 2011   

Ending speculations that Assam Company India Ltd would be the sole operator of the unexplored oil field of Amguri in Assam, the Government has directed Oil and Natural Gas Corporation (ONGC) to handle the oil field with 60% share. ONGC has taken up this proportionate stake after Canara Resources, the Canada based firm who was the original partner of Assam Company in the Amguri project , lost a judicial case with the Government. Though there was a hope that Assam Company might own the entire share of the oil field after the production sharing contract (PSC) was terminated, the Government decided to bring in ONGC into the picture for the lucrative 60% stake.

It has been estimated that the Amguri oil fields have close to 50,000,000 barrels of oil and around 167,000,000,000 cubic feet of gas. With Indian Government giving rights of this virgin and rich oil resource from Assam to the ONGC, the share prices have gone up significantly. It is expected that the oil fields will yield a huge profit and growth for the Indian Oil giant, given that prices in the international market is expected to rise up to 90 Dollars per barrel for oil and 7 Dollars per thousand cubic feet of Gas respectively. The share market experts are also predicting that ONGC might start to bid its shares at higher prices now to ensure better profits and cash flow.

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ONGC and Assam Company to share 60-40 in Amguri Oil Field

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