HPCL-Prize merger

Vol 15, PW 11 (01 Dec 11) News in Brief

By end-December, Prize Petroleum is expected to become a fully-owned subsidiary of Hindustan Petroleum.

HPCL holds a 50% stake in Prize but wants to buy ICICI Bank’s 45% stake and HDFC Bank’s 5%. In November, we hear, the oil ministry approved the transfer of Prize’s 50% stake in the producing 6.97-sq km Sanganpur oilfield in Gujarat to HPCL.

This month, the ministry is also expected to approve the transfer of Prize’s 10% stake in the 13,277-sq km onshore SR-ONN-2004/1 block to HPCL. Prize also operates the 87.92-sq km producing Hirapur oilfield on an ONGC service contract.

Once the ministry approves all the stake transfers, Prize will hold its last AGM (Annual General Meeting) and its board will resolve to make the company a 100% HPCL subsidiary. HPCL will offer Prize’s employees new salary packages and employment terms.

“We have 25 employees at our Delhi office,” says HPCL. “We can easily absorb the four or five people at Prize.