Jubilant moves a step closer to overseas bourse listing

Vol 9, PW 16 (17 Nov 05) People & Policy

Private sector Indian explorer Jubilant Enpro is all set to realise a longstanding ambition to be listed on an overseas stock exchange.

PETROWATCH learns the DGH last week cleared one of the biggest hurdles blocking Jubilant Enpro from allowing its subsidiary Jubilant Commercial to seek a listing on either the Toronto Stock Exchange or the Alternative Investment Market (AIM) exchange for small companies in London. Until now the oil ministry has opposed Jubilants request to assign (transfer) its 25% stake in the Kharsang oilfield in Assam to subsidiary Jubilant Commercial a move that would allow Jubilant Commercial to seek an overseas listing.

Jubilant Enpro first asked the oil ministry to allow it to transfer its 25% stake in Kharsang to Jubilant Commercial in April this year. But the ministry refused, saying the request could only be met if the minimum net worth of Jubilant Commercial is $6.5m or equivalent to 25% of the value of Kharsang, where Geopetrol of France holds 30%, Oil India holds 40% and GeoEnpro (a 50-50 joint venture between Geopetrol and Jubilant Enpro) holds 10%.

We gave them two months to prove that the subsidiary (Jubilant Commercial) had a balance sheet of $6.5m, reveals a ministry source. But they could not prove it so in July we rejected the assignment request.

But last week, the DGH revised its position and advised the ministry to let the transfer go through. We have received a letter from the DGH saying that the net worth condition should be waived, adds a ministry source, and that Jubilant Enpro should be allowed to transfer its stake in Kharsang to Jubilant Commercial.

Contacted by this report, Bhartia-owned Jubilant Enpro confirms moves to de-merge its oil and gas business from the Groups other businesses across India. We plan to transfer our stake in Kharsang to Jubilant Commercial by the end of the year, the company tells us.

Sometime next year Jubilant Commercial will be listed abroad.

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