The following is the text of the clarifications sent to the Stock Exchanges relating to the news item appearing in “ THE FINANCIAL EXPRESS” on 31st July 2004.
“The Company had informed the Stock Exchanges on 12th September 2003 about the exercise of its preferential purchase right to acquire 53.85% Participating Interest along with Operatorship held by Mosbacher India LLC (MIL) in Block PY-1 and 50% Participating Interest held by MIL in Block CY-OSN-97/1 (NELP-16).
The above transaction is subject to the approval of Government of India, which is party to the Production Sharing Contracts for Block PY-1 and CY-OSN-97/1.
Regarding the news item about Indian Oil Corporation Limited’s (IOC) intention to buy 50% stake in PY-1 gas development field and 40% stake in NELP- 16 exploration block, we have to state that the Company has been planning to induct non operating partners, subsequent to its enhanced interest in the said blocks. In this regard, the Company has been discussing with potential players including IOC.
The Company would keep the Exchange informed once a firm offer is received to acquire stake in the said blocks from potential buyer and execution of a definitive agreement, pursuant to the approval of the Board of Directors of the Company and/or any Committee of the Board.”