Sunder’s List

Oil and Natural Gas Corporation

(Photo credit: Wikipedia)

Another lesson from the ONGC fiasco: the government doesn’t think twice to drive a shaft through private investors if it means flushing money down the NREGA. The recent budget increased the cess on oil production from Rs 2,500 per tonne to Rs 4,500 – a body blow to the oil producers like [stockquote]ONGC[/stockquote], [stockquote]OIL[/stockquote] and [stockquote]CAIRN[/stockquote]. ONGC, which alone produces 24.5 million tonnes of oil annually, is going to see its annual cess expenditure go up by Rs 4,600 crore. Oil India, which is nearing 4 million tonnes in annual crude oil production, will take a hit of Rs 700 crore. The Cairn-ONGC joint venture, which has been producing around 6.4 million tonnes per annum from the Rajasthan block, targets to reach 9-MTPA level by end-March. The increase in cess will add a burden of Rs 1,700 crore for the JV. (ET)

The IMF issues a warning on the world economy. (Bloomberg) Tying into Goldman Sachs prediction that QE3 is going to happen. (PragCap)

The 2nd Greece is Portugal? (Telegraph) Or is it going to be Spain? (FT)

Be careful out there!

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