Jubilant appoints JP Morgan Cazenove for LSE listing

Vol 11, PW 12 (18 Oct 07) People & Policy

Indian pharmaceutical to energy group Jubilant is quietly preparing to list its Dutch-incorporated oil company Jubilant Energy N.

V on the London Stock Exchange. PETROWATCH learns Delhi-based Jubilant has appointed UK based investment banker JP Morgan Cazenove as its global coordinator, sponsor and sole â€کbook-runner’ for the listing.

Also near completion is Jubilant’s prospectus, prepared by the London office of New York law firm White and Case LLP, which must be filed with stock exchange authorities in London. Despite the preparations, Jubilant seems to have put back the date of its listing from this year till after April next year.

“Jubilant’s plans for a listing have been put on hold for some time,â€‌ we hear. “Management thinks the markets are not ready for a listing.

Most likely it will happen in the next financial year.â€‌ Another source tells us the Bhartia family that exercises tight control over Jubilant can’t decide how much of its stake should be offered to shareholders.

Revenue from oil production, or the lack of it, is another acute problem. “In the prospectus Jubilant will have to show revenue,â€‌ adds a source.

“This is very low. Jubilant makes money only from the Kharsang field.

â€‌ Kharsang in Arunachal Pradesh, which Jubilant operates jointly with Geopetrol through a 50:50 joint venture called GeoEnpro, produces between 1250-1300 b/d, sold to Indian Oil at around $60-$70 per barrel. Jubilant has a 30% stake at Kharsang, where its share of production is around 390 b/d.

This month Jubilant announced an oil discovery at its Mehsana block in Gujarat. But this is only at the appraisal stage.

“The discoveryhas been ratified by the DGH,â€‌ we hear. “But Jubilant will have to drill many more wells to appraise this discovery.

â€‌ Jubilant also has a 10% stake in GSPC operated Deen Dayal discovery, but even here production will start only in 2010-2011. “Jubilant is a long way before it can start generating revenue,â€‌ we hear.

LNG Summit