Hungary’s MOL discovers oil in Pakistan
“The flow rates from the well are expected to increase with
further testing and stimulation treatment, which is planned to
be conducted shortly,” it said.”To determine the size of the prospect, the consortium is
planning to drill additional wells to delineate the exact
extent, size and reserves potential of this oil discovery,” MOL
added.MOL’s Pakistani unit acquired 40 percent in the block, which
is operated by Mari Gas Company Limited, in 2008.The block is in the southern section of the Tal block
operated by MOL Pakistan.
UPDATE 1-AXA, Generali submit first-round bids for HSBC unit - sources
* Japanese bidders only interested in Asian partsBy Denny ThomasHONG KONG, Oct 14 (Reuters) - European insurers AXA SA
, Assicurazioni Generali SpA , Japan’s Tokio
Marine and MS&AD Insurance Group are among
suitors to submit first round bids for HSBC’s non-life
insurance business, sources with knowledge of the matter told
Reuters, in a deal worth about $1 billion.Allianz SE and Zurich Financial Services AG
were also interested in the process, sources
previously told Reuters, but it could not be independently
ascertained whether they had submitted preliminary bids, which
were due on Wednesday.HSBC , under new Chief Executive Stuart Gulliver,
is exiting non-core businesses and targeting about $3.5 billion
in cost savings. The sale of the non-life insurance business is
part of that plan. The company has already sold its non-life
business in Britain.HSBC’s planned sale is the first major banncassurance deal
attempted in Asia and the valuation of this transaction will set
a benchmark for other similar deals.A big question in such deals is determining how much value
to pay upfront and how should be built into the banncasurance
agreement, which allows the buyer and seller to share future
commissions earned from the sale of insurance products.In some cases, buyers agree to pay a lower upfront value and
agree to a rich distribution agreement, which offers incentives
for the vendor to perform.HSBC, Europe’s biggest bank, may consider selling the
businesses by splitting it by region, sources familiar with the
matter said.HSBC has non-life insurance operations in Hong Kong,
Singapore in some Latin American countries and France. Non-life
insurance premiums totalled $1.3 billion in 2010, according to
HSBC’s balance sheet.AXA, Generali, Zurich, Tokio Marine, MS&AD, Allianz all
declined to comment. HSBC also declined comment.The sources declined to be identified as the sale process
was not public.Potential suitors are attracted to HSBC’s captive customer
base and the distribution network available through its bank
branches.But there were questions about the ability of potential
buyers to bid aggressively because of sharp falls in asset
prices globally and the capital issues faced by European
financial institutions, sources said.The geographical spread of the assets also makes the auction
potentially tricky as some potential suitors only want certain
parts of the business and not the whole.For instance, the two Japanese insurers were interested in
the Asian operations of HSBC’s non-life insurance business,
especially its Hong Kong business, and not the entire package,
the sources said.HSBC made and distributed general insurance products in
Panama, Honduras, El Salvador, Argentina, France and Mexico. But
it earns a portion of its premiums from Hong Kong and Singapore,
with the two centres alone producing about $300 million, one
source previously said.HSBC’s planned sale follows other recent deals to exit
non-core businesses, including the disposal of its credit card
unit in the United States, the closure of underperforming U.S.
branches, and the sale of 195 branches to First Nigara Financial
Group Inc .
