Singapore: Currency and credit derivatives will cause additional losses for companies that hold more than $500 trillion (Rs24,750 trillion) of the securities worldwide, Templeton Asset Management Ltd’s Mark Mobius said.
The derivatives are at least 10 times global gross domestic product, Mobius said at a conference in Singapore. Hong Kong-listed CITIC Pacific Ltd and Brazil’s Aracruz Celulose SA are among companies that have reported derivatives losses, he said. There are going to be more and more losses on the part of companies that have credit derivatives, those who have currency derivatives, said Mobius.
ONGC says Cairn’s Rajasthan field unviable
New Delhi: Oil and Natural Gas Corp. Ltd (ONGC) wants to exit Cairn India Ltd’s prolific Rajasthan oilfields as it has found the project economically unviable due to the government levies that it will have to bear. ONGC last month wrote to the petroleum ministry saying it wants to “relinquish” its 30% interest in the block RJ-ON-90/1 unless the government reimburses the royalty it has to pay on behalf of Cairn, a senior company official said.
Meanwhile, Cairn India will commence oil production in the country by the end of this month, oil secretary R.S. Pandey said on Thursday in Mumbai.
— PTI and Bloomberg