Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Sunday, November 09, 2003

More on Oil Company Disinvestment

The last few days there has been a lot of news on oil companies. First, the government has okayed the sale of cross holdings of IOC, ONGC and GAIL. The buoyant stock market gives the government a chance to make a buck. Besides, all three companies need the cash for massive expansion plans they have chalked out. Interestingly, NDTV reports today that India is building a strategic crude oil reserve on its eastern coast. Indian Oil Corporation (IOC)has been given the task of managing the reserves and the locations have been handpicked to maximise the geographical spread. Could this be one reason why the government has allowed the three oil majors to unload their cross holdings in the market?

No comments: