Oil India Ltd - Update related to project Licence-61, Russia

Oil India Limited (OIL) acquired 50% stake in WorldAce Investment Limited (WIL) in Cyprus through its wholly owned subsidiary, Oil India International BV (OIL BV) in Netherlands, from PetroNeft Resources (PR), an Irish Company. The remaining 50% of WIL is owned by PR. WIL owns 100% of the equity in Stimul-T LLC, a Russian registered legal entity, which owns and operates Licence 61(Oil Block) in the Tomsk region of the Russian Federation.

Stimul-T LLC, the owner, and operator of the Oil Block, has informed about voluntarily filing an application for bankruptcy administration in Russia on 10th May 2023, due to the inability to pay the debts of its creditors.

The Bankruptcy Process in Russia may likely be protracted. At this time, the recoverabality, if any, of the loan advance(s), receivables, or underlying asset value that accrues to the interest of OIL through its 100% subsidiary OILBV having 50% equity holding in WIL and, by extension, in Stimut-T LLC cannot be estimated.

Shares of Oil India Limited was last trading in BSE at Rs. 254.15 as compared to the previous close of Rs. 258.40. The total number of shares traded during the day was 215531 in over 3202 trades.

The stock hit an intraday high of Rs. 259.50 and intraday low of 253.35. The net turnover during the day was Rs. 55251457.00.

Source : Equity Bulls

Keywords

OilIndia INE274J01014 StakeAcquisition WorldAceInvestment