CCI clears five oil and gas blocks - Angel Broking

Cabinet Committee of Investments (CCI) has cleared the exploration and developmental activity of contractors including Reliance Industries, Cairn India and ONGC. Although US$10bn investments were made in these blocks, the blocks could not commence work due to inter-ministerial differences. The cleared blocks include areas of KG-D6 block and gas discovery area NEC-25 along with 3 other areas.

We now await further clarity from company Managements regarding the exploration and production timelines from these blocks. Until then, we maintain our Neutral rating on RIL and Buy ratings on ONGC and Cairn India with target prices of Rs. 357 and Rs. 383, respectively.

Source : Equity Bulls

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