Oct. 4 (Bloomberg) -- Billionaire Rakesh Jhunjhunwala- backed Delta Corp. plans to open casinos in Sri Lanka in the next six months to tap a surge in tourist arrivals to the island nation after the end of a 26-year civil war.
Casino operator-Delta, which also develops property and runs an aircraft charter service, will spend 10 billion rupees ($225 million) in the next three years in opening casinos in the region as well as at home in Sikkim, Daman, and Goa, Chief Financial Officer Hardik Dhebar said in an interview in Mumbai. Gambling is not allowed in most Indian states.
Delta wants to benefit from a revival in Sri Lanka’s tourist arrivals, which surged 47 percent in the first eight months of the year, according to the nation’s tourism agency. Shares of companies including John Keells Holdings Plc and Aitken Spence & Co. have more than doubled as tourist incomes boosts earnings at their hotels and resorts.
“We have not even scratched the surface yet” for casino opportunities in the region, Dhebar said. “Sri Lanka is in a hurry to start speed up the process of development and is taking steps to ensure investment flows into the country.”
Delta shares, which have risen 84 percent this year, rose 2 percent to a record 83.8 rupees in Mumbai at 11:08 a.m.
Faster economic growth in India and Sri Lanka is helping boost salaries in the region increasing demand for leisure spending, Dhebar said.
India’s economy grew 8.8 percent in the quarter ended June 30, the fastest pace in two-and-a-half years. Sri Lanka’s $42 billion economy may grow as much as 8 percent in 2010, the central bank said on Sept. 21. The nation’s troops defeated the separatist Liberation Tigers of Tamil Eelam in May last year, ending their 26-year quest for a separate homeland helping attract tourists and investors to the nation.
Billionaire Jhunjhunwala and investor Radhakrishna Damani bought an 11 percent stake in the company last month. Jhunjhunwala, with $1.15 billion in assets is India’s 57th richest man, according to Forbes magazine.
Monday, October 04, 2010
RIL's crude reservoirs not performing as per predictions
NEW DELHI: Reliance Industries has seen crude oil production falling by more than 31 per cent from its MA oilfield in the predominantly gas-rich KG-D6 block off the east coast.
"The reservoir is not performing as per its predictions," a source in know of the development said. "Production has dropped from about 32,000 barrels per day achieved in May to around 22,000 bpd currently."
A company spokesperson declined to comment on the issue. Currently six wells are on production in MA field in the eastern offshore KG-DWN-98/3 (or KG-D6) block. RIL, which commenced commercial oil production from MA field in September 2008, had in its field development plan (FDP) envisaged a plateau oil output of 34,041 bpd in the 2nd year of production and 28,684 bpd in the 3rd year.
So far, the maximum production level of about 32,000 bpd was achieved for few days only during May 2010, thereafter oil production has declined gradually.
Besides crude oil, the MA oilfield produces 7-8 million standard cubic meters per day of natural gas. This output together with Dhirubhai-1 and 3 gas fields, take natural gas production from the KG-D6 block to around 60 mmscmd.
Even D1 and D3 fields have seen a two-year delay in reaching plateau output of 80 mmscmd. The fields are now estimated to hit the peak production towards end of 2012.
The source said RIL has been forced to cut output at MA oilfields because of sudden rise in water and gas production from the wells meant to produce crude oil.
Increase in gas production means the natural pressure of the reservoir, which helps push oil up to shore, is dropping. If gas comes out too quickly, crude oil, even though lying in the well pit, cannot be produced.
RIL, he said, has informed the oil regulator DGH that it will not recklessly produce oil at the cost of reservoir. It will judiciously produce from existing wells and look at raising output only by drilling at least two additional wells.
Sources said RIL and its minority partner, Canada's Niko Resources , had installed a floating production system (FPSO) to produce oil from MA fields. The FPSO, designed to process 60,000 bpd of oil, is also grossly underutilised due to the lower level of oil production.
RIL was studying the pressure at the oil and gas reservoir, he said adding the company plans to drill 2-3 more wells on D1 and D3 fields. These will be besides what the company was doing in MA field.
"The reservoir is not performing as per its predictions," a source in know of the development said. "Production has dropped from about 32,000 barrels per day achieved in May to around 22,000 bpd currently."
A company spokesperson declined to comment on the issue. Currently six wells are on production in MA field in the eastern offshore KG-DWN-98/3 (or KG-D6) block. RIL, which commenced commercial oil production from MA field in September 2008, had in its field development plan (FDP) envisaged a plateau oil output of 34,041 bpd in the 2nd year of production and 28,684 bpd in the 3rd year.
So far, the maximum production level of about 32,000 bpd was achieved for few days only during May 2010, thereafter oil production has declined gradually.
Besides crude oil, the MA oilfield produces 7-8 million standard cubic meters per day of natural gas. This output together with Dhirubhai-1 and 3 gas fields, take natural gas production from the KG-D6 block to around 60 mmscmd.
Even D1 and D3 fields have seen a two-year delay in reaching plateau output of 80 mmscmd. The fields are now estimated to hit the peak production towards end of 2012.
The source said RIL has been forced to cut output at MA oilfields because of sudden rise in water and gas production from the wells meant to produce crude oil.
Increase in gas production means the natural pressure of the reservoir, which helps push oil up to shore, is dropping. If gas comes out too quickly, crude oil, even though lying in the well pit, cannot be produced.
RIL, he said, has informed the oil regulator DGH that it will not recklessly produce oil at the cost of reservoir. It will judiciously produce from existing wells and look at raising output only by drilling at least two additional wells.
Sources said RIL and its minority partner, Canada's Niko Resources , had installed a floating production system (FPSO) to produce oil from MA fields. The FPSO, designed to process 60,000 bpd of oil, is also grossly underutilised due to the lower level of oil production.
RIL was studying the pressure at the oil and gas reservoir, he said adding the company plans to drill 2-3 more wells on D1 and D3 fields. These will be besides what the company was doing in MA field.
L&T sells 2.4% in Satyam for Rs 295 cr
MUMBAI: Engineering conglomerate Larsen & Toubro has sold 2.4 per cent stake in Mahindra Satyam in September, the outsourcer said in a statement to the stock exchange.
Larsen raised Rs 295 crore ($66.3 million) from the stake sale and now holds 2.16 per cent in Satyam. It had last sold a third of its holding in the outsourcer in November 2009 for about $66 million.
L&T had built a 12 per cent holding in Satyam, but the expansion of share capital following the takeover meant it held 6.9 per cent in Mahindra Satyam.
Last April, L&T lost the race for control of Satyam to Tech Mahindra Ltd, a unit of India's Mahindra & Mahindra Ltd.
Larsen raised Rs 295 crore ($66.3 million) from the stake sale and now holds 2.16 per cent in Satyam. It had last sold a third of its holding in the outsourcer in November 2009 for about $66 million.
L&T had built a 12 per cent holding in Satyam, but the expansion of share capital following the takeover meant it held 6.9 per cent in Mahindra Satyam.
Last April, L&T lost the race for control of Satyam to Tech Mahindra Ltd, a unit of India's Mahindra & Mahindra Ltd.
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