NEW DELHI: Billionaire Mukesh Ambani has gained oil regulator PNGRB's popularity of promoting his loss-making east-west natural gas pipeline to Canadian investor Brookfield, a top authentic said.
Ambani's Reliance Gas Transportation Infrastructure Ltd, which later modified the title to East West Pipeline Ltd (EWPL), a decade again built a 1,400-kilometer pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat to move natural gas came upon in a KG basin block operated by way of his flagship company Reliance Industries.
However, the pipeline which had a capability to move 80 million same old cubic metres in line with day of natural gas is recently operating at lower than five in line with cent of its capability as output from KG-D6 block of RIL fell faster than anticipated.
While the Competition Commission of India (CCI) had in September approved the transaction where Brookfield is sponsoring an Infrastructure Investment Trust (IIT) known as India Infrastructure Trust as the acquisition automobile, the Petroleum and Natural Gas Regulatory Board (PNGRB) gave its nod a couple of weeks again.
"Yes, the approval has been accorded," PNGRB Chairman Dinesh Ok Sarraf said.
This might be Brookfield's first investment within the power sector in India.
However, the acquisition worth has now not been disclosed.
According to September 11 approval of the CCI, the pipeline housed under EWPL might be transferred to an entity known as Pipeline Infrastructure Pvt Ltd (PIPL), a wholly-owned subsidiary of Reliance Industries Holding Pvt Ltd (RIHPL).
"RIHPL would sell its entire issued and paid up equity share capital of PIPL to IIT," the CCI order said. "Further, IIT will also subscribe to the non-convertible debentures to be issued by PIPL."
Brookfield Asset Management Inc's affiliate Rapid Holdings Pte Ltd and PenBrook Capital Advisors Pvt Ltd (PCAPL) had executed a framework settlement to shop for the pipeline on August 28.
PCAPL is a joint venture between Peninsula Investment Management Co Ltd and Brookfield Capital Partners (Bermuda) Ltd.
"By way of the proposed combination, the entire equity share capital and voting rights of PIPL is proposed to be acquired by India Infrastructure Trust (IIT), a trust to be established/sponsored by Rapid and registered under the Indian Trusts Act, 1882 and the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014," the CCI order said.
PCAPL can be appointed as the investment supervisor of IIT.
EWPL had operating earnings of Rs 884 crore and posted a net lack of Rs 715 crore within the 12 months ended March.
The loss used to be principally as a result of the pipeline operating at lower than its capability.
KG-D6 fields, which started production in April 2009, had hit a peak of 69.43 mmscmd in March 2010 ahead of water and sand ingress compelled the shutdown of wells. This peak output comprised 66.35 mmscmd from D1 and D3, the most important of the 18 gas discoveries at the KG-D6 block, and three.07 mmscmd from MA field, the only oil discovery at the block.
Currently, the fields produce lower than four mmscmd of gas, which EWPL transports to consumers.
EWPL had a complete exceptional debt of Rs 13,715 crore as of March while its plant, assets and equipment had an asset value of round Rs 11,000 crore, in step with its ultimate annual stability sheet.
Ambani's Reliance Gas Transportation Infrastructure Ltd, which later modified the title to East West Pipeline Ltd (EWPL), a decade again built a 1,400-kilometer pipeline from Kakinada in Andhra Pradesh to Bharuch in Gujarat to move natural gas came upon in a KG basin block operated by way of his flagship company Reliance Industries.
However, the pipeline which had a capability to move 80 million same old cubic metres in line with day of natural gas is recently operating at lower than five in line with cent of its capability as output from KG-D6 block of RIL fell faster than anticipated.
While the Competition Commission of India (CCI) had in September approved the transaction where Brookfield is sponsoring an Infrastructure Investment Trust (IIT) known as India Infrastructure Trust as the acquisition automobile, the Petroleum and Natural Gas Regulatory Board (PNGRB) gave its nod a couple of weeks again.
"Yes, the approval has been accorded," PNGRB Chairman Dinesh Ok Sarraf said.
This might be Brookfield's first investment within the power sector in India.
However, the acquisition worth has now not been disclosed.
According to September 11 approval of the CCI, the pipeline housed under EWPL might be transferred to an entity known as Pipeline Infrastructure Pvt Ltd (PIPL), a wholly-owned subsidiary of Reliance Industries Holding Pvt Ltd (RIHPL).
"RIHPL would sell its entire issued and paid up equity share capital of PIPL to IIT," the CCI order said. "Further, IIT will also subscribe to the non-convertible debentures to be issued by PIPL."
Brookfield Asset Management Inc's affiliate Rapid Holdings Pte Ltd and PenBrook Capital Advisors Pvt Ltd (PCAPL) had executed a framework settlement to shop for the pipeline on August 28.
PCAPL is a joint venture between Peninsula Investment Management Co Ltd and Brookfield Capital Partners (Bermuda) Ltd.
"By way of the proposed combination, the entire equity share capital and voting rights of PIPL is proposed to be acquired by India Infrastructure Trust (IIT), a trust to be established/sponsored by Rapid and registered under the Indian Trusts Act, 1882 and the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014," the CCI order said.
PCAPL can be appointed as the investment supervisor of IIT.
EWPL had operating earnings of Rs 884 crore and posted a net lack of Rs 715 crore within the 12 months ended March.
The loss used to be principally as a result of the pipeline operating at lower than its capability.
KG-D6 fields, which started production in April 2009, had hit a peak of 69.43 mmscmd in March 2010 ahead of water and sand ingress compelled the shutdown of wells. This peak output comprised 66.35 mmscmd from D1 and D3, the most important of the 18 gas discoveries at the KG-D6 block, and three.07 mmscmd from MA field, the only oil discovery at the block.
Currently, the fields produce lower than four mmscmd of gas, which EWPL transports to consumers.
EWPL had a complete exceptional debt of Rs 13,715 crore as of March while its plant, assets and equipment had an asset value of round Rs 11,000 crore, in step with its ultimate annual stability sheet.
Oil regulator approves sale of Mukesh Ambani's pipeline to Brookfield
![Oil regulator approves sale of Mukesh Ambani's pipeline to Brookfield]()
Reviewed by Kailash
on
October 28, 2018
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