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May 2016
The rapid growth in consumption of substitute fuels such as naphtha, LDO, FO & LSHS and even Petroleum Coke in April 2016 over the same month last year points to the likelihood once again of a slower offtake in gas demand during the month.
8The gas consumption figures have not been released as yet but a 25% jump in naphtha consumption and another 29% increase in FO/LSHS point to the fact that Indian factory furnaces are happier using these fuels than consuming gas.
8City gas distribution companies had complained that imported LNG prices were far higher than liquid fuels. Market share was being lost in the process and getting new customers on board had become a near-impossible task.
Click on Reports for the latest analysis. Details
8The gas consumption figures have not been released as yet but a 25% jump in naphtha consumption and another 29% increase in FO/LSHS point to the fact that Indian factory furnaces are happier using these fuels than consuming gas.
8City gas distribution companies had complained that imported LNG prices were far higher than liquid fuels. Market share was being lost in the process and getting new customers on board had become a near-impossible task.
Click on Reports for the latest analysis. Details
Petroleum product consumption saw a 10% rise in April, 2016 in relation to the same month last year.
8HSD consumption has slowed down to 4.4% whereas MS continued to register double digit growth at 11.89%.
8Lubricant and greases saw a de-growth of 7%.
8So did SKO at 9.1%
8LPG consumption went up by a healthy 8.18%.
8ATF demand was up too at 12.53%.
Click on Reports for the latest analysis. Details
8HSD consumption has slowed down to 4.4% whereas MS continued to register double digit growth at 11.89%.
8Lubricant and greases saw a de-growth of 7%.
8So did SKO at 9.1%
8LPG consumption went up by a healthy 8.18%.
8ATF demand was up too at 12.53%.
Click on Reports for the latest analysis. Details
BPCL will now go ahead and build a petroleum product pipeline from Bina in Madhya Pradesh to Panki in UP.
8The PNGRB has declared that it had received no comments on the proposal during the public consultation period.
8It has now given out a public notice seeking possible contracts for capacity booking by third parties.
8This will allow for taking a decision on the size of the pipeline before the bidding process is initiated.
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8The PNGRB has declared that it had received no comments on the proposal during the public consultation period.
8It has now given out a public notice seeking possible contracts for capacity booking by third parties.
8This will allow for taking a decision on the size of the pipeline before the bidding process is initiated.
Click on Reports for more Details
The charter hire market for crude displayed a mixed picture last week.
8There was healthy activity in the Middle East but sentiment was weak elsewhere.
8The rise in crude prices also means more expensive bunkers.
8There were supply disruptions too because of wildfires in Canada.
8Despite the fact that VL activity in the Middle East allowed for overall good numbers out of the region, there was a sense towards the end of the week that owners couldn't push for more.
8The West Africa Suezmax market continued to lose ground last week, while Black Sea/Med rates strengthened, capitalizing on delays out of Trieste.
8Afra tonnage enjoyed an overall steady market in both the Med and North Sea regions, while the Caribs Afra market lost further ground as the number of ballasters in the region outpaced available business.
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8There was healthy activity in the Middle East but sentiment was weak elsewhere.
8The rise in crude prices also means more expensive bunkers.
8There were supply disruptions too because of wildfires in Canada.
8Despite the fact that VL activity in the Middle East allowed for overall good numbers out of the region, there was a sense towards the end of the week that owners couldn't push for more.
8The West Africa Suezmax market continued to lose ground last week, while Black Sea/Med rates strengthened, capitalizing on delays out of Trieste.
8Afra tonnage enjoyed an overall steady market in both the Med and North Sea regions, while the Caribs Afra market lost further ground as the number of ballasters in the region outpaced available business.
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The PNGRB has set aside a complaint by the glass manufacturer Saint Gobain Pvt Ltd against Gujarat Gas Ltd for the latter's unwillingness to allow access to its gas spur line from Amboli to Jaghdia on the Hazira-Ankleshwar pipeline to source cheaper gas supplies from GAIL even though the exclusivity period of the pipeline had ended.
8The regulator held that it has to first declare a pipeline to be available for common access after a due process of public consultation is followed by Gujarat Gas once the exclusivity period ends.
8In other words, a buyer cannot invoke third party use of a pipeline automatically upon the expiry of the exclusivity period.
8The PNGRB however has now ordered that action be taken on Gujarat Gas for not going through the due process of declaring the network available for common access.
8It has also ordered that common access should henceforth be given to the glass manufacturer to pipeline network.
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8The regulator held that it has to first declare a pipeline to be available for common access after a due process of public consultation is followed by Gujarat Gas once the exclusivity period ends.
8In other words, a buyer cannot invoke third party use of a pipeline automatically upon the expiry of the exclusivity period.
8The PNGRB however has now ordered that action be taken on Gujarat Gas for not going through the due process of declaring the network available for common access.
8It has also ordered that common access should henceforth be given to the glass manufacturer to pipeline network.
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The inline compressor facility for the pipeline has been envisaged at an offshore platform.
8The location of the platform will be at the south-west end of the deepwater Murray Ridge.
8The platform will be set up in the shallower parts of the Arabian sea, at a water depth of a few hundred feet.
8The compression facility will be outside of all territorial waters but within helicopter supply range.
8The website also carries here a chronological depiction of all deepwater pipelines built so far.
8The water depth has been going up slowly over the years and is now at around 3000 metres below sea level.
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8The location of the platform will be at the south-west end of the deepwater Murray Ridge.
8The platform will be set up in the shallower parts of the Arabian sea, at a water depth of a few hundred feet.
8The compression facility will be outside of all territorial waters but within helicopter supply range.
8The website also carries here a chronological depiction of all deepwater pipelines built so far.
8The water depth has been going up slowly over the years and is now at around 3000 metres below sea level.
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The company also claims that deepwater repairs are now possible whereas five years ago, these services were not available.
8Even though the risks of rupture or damage is extremely low, the lack of repair facilities was seen as a hindrance so far.
8Technology is now available to repair large diameter high pressure pipelines.
8The diameters that can be repaired are between 16 to 28-inch.
8The water depth at which repairs can be carried out today can go up to 3000 metres or 10,000 feet.
8Advanced diverless equipment can now be used to repair these lines.
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8Even though the risks of rupture or damage is extremely low, the lack of repair facilities was seen as a hindrance so far.
8Technology is now available to repair large diameter high pressure pipelines.
8The diameters that can be repaired are between 16 to 28-inch.
8The water depth at which repairs can be carried out today can go up to 3000 metres or 10,000 feet.
8Advanced diverless equipment can now be used to repair these lines.
Click on Reports for more. Details
For many years now, South Asia Gas Enterprise Pvt Ltd (SAGE) was the only company pursuing an undersea pipeline from the Gulf to India.
8But now that sanctions have been lifted on Iran, another Indian company has come out with a grand plan to build a deepwater pipeline to bridge the gulf with India.
8The company claims that Iranian gas can land anywhere on the western coast, on the south or north of Jaipur.
8Several routes have been discussed in a recent presentation by the company. The claim is that the conventional route across the shallow Indus Canyon channel would be technologically challenging. Instead the company has made out a pitch for using the deepwater route straight through the Arabian sea in water depths that could reach 3,500 meters.
8Newly built deep-water compatible lay bridges make it feasible to reach deeper depths, the presentation says.
8It says that the tariff rate for building a pipeline directly from Iran will be in the range of $ 2/0/mmbtu whereas the one from Oman will be costlier as the gas will have to ferried from Qatar to Oman before it is sent to India.
8New lay vessels have been built with enough tension capability to lay pipes at water depths of up to 3500 metres.
8Several Indian mills have the capability of making the line pipes, the company's presentation goes on to claim.
8Intecsea is one international company which has taken the lead in designing such deepwater pipelines.
8The presentation claims that new testing and commissioning philosophies developed by the company in collaboration with DnV permits a 28-inch undersea line to deliver as much as 31 mmscmd of gas.
Click on Reports for more. Details
8But now that sanctions have been lifted on Iran, another Indian company has come out with a grand plan to build a deepwater pipeline to bridge the gulf with India.
8The company claims that Iranian gas can land anywhere on the western coast, on the south or north of Jaipur.
8Several routes have been discussed in a recent presentation by the company. The claim is that the conventional route across the shallow Indus Canyon channel would be technologically challenging. Instead the company has made out a pitch for using the deepwater route straight through the Arabian sea in water depths that could reach 3,500 meters.
8Newly built deep-water compatible lay bridges make it feasible to reach deeper depths, the presentation says.
8It says that the tariff rate for building a pipeline directly from Iran will be in the range of $ 2/0/mmbtu whereas the one from Oman will be costlier as the gas will have to ferried from Qatar to Oman before it is sent to India.
8New lay vessels have been built with enough tension capability to lay pipes at water depths of up to 3500 metres.
8Several Indian mills have the capability of making the line pipes, the company's presentation goes on to claim.
8Intecsea is one international company which has taken the lead in designing such deepwater pipelines.
8The presentation claims that new testing and commissioning philosophies developed by the company in collaboration with DnV permits a 28-inch undersea line to deliver as much as 31 mmscmd of gas.
Click on Reports for more. Details
There is of course no doubt that an overland pipeline is the best option even if Pakistan is an unreliable player.
8Once a pipeline is built, there will be a significant number of players who get financially involved down the line and it will be in their interest to keep the gas supply lines open.
8And if Pakistan remains completely intransigent, an undersea pipeline in which the Iranians also have a big stake is the next best option.
8This website believes that India must push for cross-country gas pipelines even if the risks are high.
8Our argument has been that even if the financial and security risks are high, it will help India use the alternate route as a bargaining chip, by pitting pipeline suppliers against those who supply LNG to attract better gas prices.
8Europe does this to great benefit while negotiating with Russia for pipeline gas supply even as its LNG terminals remain empty.
8China is also building massive pipeline capacity to Russia and Central Asia even as it continues to ramp up spare LNG liquefaction faciltiies.
8India can play this game too, provided it can build a pipeline or two to tap gas in West Asia or Central Asia.
Click on Reports for more. Details
8Once a pipeline is built, there will be a significant number of players who get financially involved down the line and it will be in their interest to keep the gas supply lines open.
8And if Pakistan remains completely intransigent, an undersea pipeline in which the Iranians also have a big stake is the next best option.
8This website believes that India must push for cross-country gas pipelines even if the risks are high.
8Our argument has been that even if the financial and security risks are high, it will help India use the alternate route as a bargaining chip, by pitting pipeline suppliers against those who supply LNG to attract better gas prices.
8Europe does this to great benefit while negotiating with Russia for pipeline gas supply even as its LNG terminals remain empty.
8China is also building massive pipeline capacity to Russia and Central Asia even as it continues to ramp up spare LNG liquefaction faciltiies.
8India can play this game too, provided it can build a pipeline or two to tap gas in West Asia or Central Asia.
Click on Reports for more. Details
Oil India Ltd is going full swing ahead with plans to drill a wild cat deepwater welll in the KG Basin.
8The Transocean owned semi-submersible, GSF 140, has arrived.
Click on Details to find out more on OIL's preparations to drill its first deepwater well in the turbulent geology of the region. Details
8The Transocean owned semi-submersible, GSF 140, has arrived.
Click on Details to find out more on OIL's preparations to drill its first deepwater well in the turbulent geology of the region. Details
For reference purposes the website carries here the following tenders:
8Supply of PH and Conductivity Transmitter, Panipat [IOC] Details
8AMC for Combustion and Baroscopic Inspection of Gas turbine, Paradip Refinery [IOC] Details
8Alloy Steel Loop replacement of Inlet and Outlet Pipeline [MRPL] Details
8Service for Handling Catalyst and Chemicals at Polypropylene Unit [MRPL] Details
8Procurement of Gate and Globe Valves [MRPL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8PSU Profitability down in NDA regime Details
8India just proposed an oil-for-drugs barter plan with cash-strapped Venezuela Details
8PM Modi’s Iran visit aims to double oil imports Details
8The world just lost 16.8 million barrels of oil Details
8Coal India Limited to offer 120 million tonnes coal for forward e-auction Details
8Govt defers schedule for coal mine commercial mining Details
8Mukesh Ambani awarded top chemical industry award Details
8Firm crude prices bring oil companies back on funds’ radar [Economic Times] Details
8BP to sell $287-million stake in Castrol India [Economic Times] Details
8Sri Lanka cancels India-built 500 MW coal power plant deal, pitches LNG plant instead Details
8Cairn India, ONGC, Oil India shares get stronger as Brent crude prices near $50 a barrel Details
You can also click on Newsclips for more Details
8Supply of PH and Conductivity Transmitter, Panipat [IOC] Details
8AMC for Combustion and Baroscopic Inspection of Gas turbine, Paradip Refinery [IOC] Details
8Alloy Steel Loop replacement of Inlet and Outlet Pipeline [MRPL] Details
8Service for Handling Catalyst and Chemicals at Polypropylene Unit [MRPL] Details
8Procurement of Gate and Globe Valves [MRPL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8PSU Profitability down in NDA regime Details
8India just proposed an oil-for-drugs barter plan with cash-strapped Venezuela Details
8PM Modi’s Iran visit aims to double oil imports Details
8The world just lost 16.8 million barrels of oil Details
8Coal India Limited to offer 120 million tonnes coal for forward e-auction Details
8Govt defers schedule for coal mine commercial mining Details
8Mukesh Ambani awarded top chemical industry award Details
8Firm crude prices bring oil companies back on funds’ radar [Economic Times] Details
8BP to sell $287-million stake in Castrol India [Economic Times] Details
8Sri Lanka cancels India-built 500 MW coal power plant deal, pitches LNG plant instead Details
8Cairn India, ONGC, Oil India shares get stronger as Brent crude prices near $50 a barrel Details
You can also click on Newsclips for more Details
The website is a strong advocate of weaning the Indian oil and gas sector from the monopoly grip of general management consultancy firms such as PriceWaterhouseCoopers, Deloitte and Ernst & Young.
8These firms have gamed the L-1 system in India to win most contracts by quoting low prices.
8The consequence is that the sector is deprived of the insights that core oil and gas sector consultancies such as IHS, McDermott-GE, Accenture-Schlumberger and Wood Mckenzie can bring to the table.
8These general management consultancies are only loosely affiliated to their global networks. They work as local research firms with underpaid management graduates. The knowledge base is shallow though in one sense, the shallowness also arises from the manner in which the L-1 system is structured in public sector oil companies.
8The qualification criteria have been left so loose that almost anyone can qualify. It then boils down to who can quote the lowest rate.
8Some of the L-1 prices are so low that it is impossible to turn out quality work.
8The consultancies have also been accused of pilfering data. ISH had recently stop subscription to one of the management consultancies. Commercial use of data is prohibited in most subscription agreements.
8A perusal of some of the reports made by these consultancies shows a shocking hollowness of approach. The consequent recommendations emanating out of them are therefore widely off the mark.
8Several oil companies have taken action based on reports made by these consultancies but most such initiatives have run into trouble or have never taken off because the underlying logic eventually did not synchronize with ground realities. While the recommendations come cheap, the cost of pursuing a wrong set of advisories turned out to be far higher.
8The time has come to stop this practice and bring in the right consultancies to do the job.
8The selection criteria for consultants will have to be fine tuned to keep out the boys and bring in the men. Details
8These firms have gamed the L-1 system in India to win most contracts by quoting low prices.
8The consequence is that the sector is deprived of the insights that core oil and gas sector consultancies such as IHS, McDermott-GE, Accenture-Schlumberger and Wood Mckenzie can bring to the table.
8These general management consultancies are only loosely affiliated to their global networks. They work as local research firms with underpaid management graduates. The knowledge base is shallow though in one sense, the shallowness also arises from the manner in which the L-1 system is structured in public sector oil companies.
8The qualification criteria have been left so loose that almost anyone can qualify. It then boils down to who can quote the lowest rate.
8Some of the L-1 prices are so low that it is impossible to turn out quality work.
8The consultancies have also been accused of pilfering data. ISH had recently stop subscription to one of the management consultancies. Commercial use of data is prohibited in most subscription agreements.
8A perusal of some of the reports made by these consultancies shows a shocking hollowness of approach. The consequent recommendations emanating out of them are therefore widely off the mark.
8Several oil companies have taken action based on reports made by these consultancies but most such initiatives have run into trouble or have never taken off because the underlying logic eventually did not synchronize with ground realities. While the recommendations come cheap, the cost of pursuing a wrong set of advisories turned out to be far higher.
8The time has come to stop this practice and bring in the right consultancies to do the job.
8The selection criteria for consultants will have to be fine tuned to keep out the boys and bring in the men. Details
There are also dramatic transformations taking place in the market structure of LNG.
8"Portfolio" LNG contracts have seen a big increase.
8Spot cargoes are now split up under different component in terms of 'spare" capacity, ramp-up volumes, redirected volumes and portfolio LNG.
8Portfolio volumes have spurted to around 50 MMTPA and bulk of this volume is now in the hands of aggregators.
8Aggregators purposely have different LNG regasification terminals available to send supplies to the most favourable destination.
8However, portfolio LNG is also sometimes resold through secondary agreements making it, in principle, no longer available for spot trading.
8Most of these volumes work on arbitration strategies
Click on Reports to find out more about how portfolio LNG works.
Details
8"Portfolio" LNG contracts have seen a big increase.
8Spot cargoes are now split up under different component in terms of 'spare" capacity, ramp-up volumes, redirected volumes and portfolio LNG.
8Portfolio volumes have spurted to around 50 MMTPA and bulk of this volume is now in the hands of aggregators.
8Aggregators purposely have different LNG regasification terminals available to send supplies to the most favourable destination.
8However, portfolio LNG is also sometimes resold through secondary agreements making it, in principle, no longer available for spot trading.
8Most of these volumes work on arbitration strategies
Click on Reports to find out more about how portfolio LNG works.
Details
Projections are that the era of very low gas prices is coming to an end in the US.
8Natural gas prices are expected to reach $3.12/MMBtu in 2017, almost doubling the average price of $1.69/MMbtu in March 2016.
8But the point to note is that gas supply abundance remains the key driver of the North American gas market.
8Analysts are quick to point out that this is a market in surplus and it will recover only when there is additional demand -- which seems to be developing. But the US market for gas is very complicated and it is difficult to project whether demand will go up or stay flat in the years ahead. Even if demand goes up, it will be at an extremely slow pace as shown by data carried here by this website.
8The projections are that the price is unlikely to dip from now on.
8The rise in price will be steady and inexorably upwards.
8The latest long term Henry Hub price curve shows that the $4/mmbtu mark will be breached only by 2025.
Click on Reports for more Details
8Natural gas prices are expected to reach $3.12/MMBtu in 2017, almost doubling the average price of $1.69/MMbtu in March 2016.
8But the point to note is that gas supply abundance remains the key driver of the North American gas market.
8Analysts are quick to point out that this is a market in surplus and it will recover only when there is additional demand -- which seems to be developing. But the US market for gas is very complicated and it is difficult to project whether demand will go up or stay flat in the years ahead. Even if demand goes up, it will be at an extremely slow pace as shown by data carried here by this website.
8The projections are that the price is unlikely to dip from now on.
8The rise in price will be steady and inexorably upwards.
8The latest long term Henry Hub price curve shows that the $4/mmbtu mark will be breached only by 2025.
Click on Reports for more Details
Goldman Sachs has reported that the demand-supply gap in the global crude market has disappeared.
8There will in fact be a supply deficit in May.
8Demand too is growing at a much quicker pace than was projected.
8This has lead Goldman Sachs to raise the price of crude to $50/bbl in the second half of 2016 from $45/bbl that it had projected earlier.
8The imbalance however will disappear in 2017 when new supplies come into play.
Click on Reports for more Details
8There will in fact be a supply deficit in May.
8Demand too is growing at a much quicker pace than was projected.
8This has lead Goldman Sachs to raise the price of crude to $50/bbl in the second half of 2016 from $45/bbl that it had projected earlier.
8The imbalance however will disappear in 2017 when new supplies come into play.
Click on Reports for more Details
Indian policy makers can learn from China's experience in liberalizing its gas markets
8China is considering spinning off the pipeline and storage infrastructure of its three major oil companies into a separate company with the aim of providing access to new entrants.
8It remains to be seen how this will affect LNG imports.
8The NOCs, notably CNOOC (the largest holder of regasification capacity in China), are resisting giving access to new entrants.
8The unbundling in China will however not involve the LNG assets of the three companies.
8It is clear that GAIL is standing in the way of reforms of the gas sector in India as it continues to resist third party access to its gas infrastructure.
8But there is fear that an unbundling of GAIL will adversely impact the building of gas pipelines in India.
8This however may be as good a time as any for the government to build pipelines like it builds highways at present.
8Without a gas infrastructure, Indian demand for gas is unlikely to move up rapidly in the face of competition from coal and liquid fuels.
Click on Reports for more Details
8China is considering spinning off the pipeline and storage infrastructure of its three major oil companies into a separate company with the aim of providing access to new entrants.
8It remains to be seen how this will affect LNG imports.
8The NOCs, notably CNOOC (the largest holder of regasification capacity in China), are resisting giving access to new entrants.
8The unbundling in China will however not involve the LNG assets of the three companies.
8It is clear that GAIL is standing in the way of reforms of the gas sector in India as it continues to resist third party access to its gas infrastructure.
8But there is fear that an unbundling of GAIL will adversely impact the building of gas pipelines in India.
8This however may be as good a time as any for the government to build pipelines like it builds highways at present.
8Without a gas infrastructure, Indian demand for gas is unlikely to move up rapidly in the face of competition from coal and liquid fuels.
Click on Reports for more Details
Significant amounts of LNG contracts will expire over the next 10 years (including some starting from 2016).
8This provides an opportunity to buyers (particularly for key Asian players) either to achieve better deals or to not re-enter long-term contracts and instead rely on the spot market.
8In the past, when LNG contracts expire, sellers and buyers have agreed to extend them based on the same or lower quantities.
8On the supply side, for old liquefaction plants at the end of their 20-year contract, investments have already been amortized. As further operations do not need third-party financing, they can retain more output for spot market or sell LNG on more flexible terms.
8But more importantly, it is demand uncertainty from once predictable buyers which is putting pressure on suppliers.
8In an oversupply situation, the LNG market shifts in favour of buyers who are keen to obtain better contractual conditions, notably more flexibility and lower prices or a move away from JCC-indexed prices.
8In this environment, contracts may not be extended, not because suppliers want to keep some LNG for spot trading, but because buyers do not wish to extend contracts or will extend them only by taking reduced volumes.
8Forthcoming changes on the supply side are another aspect of the contract renegotiations.
8In many instances, partners in LNG projects have marketed their LNG as a group or under a joint-venture rather than as individual companies but now uncontracted and excess LNG is returned to individual equity partners, who sell them bilaterally either through spot trades or tenders.
8Indian buyers can scan the markets for bargain deals from such sellers.
Click on Reports for more Details
8This provides an opportunity to buyers (particularly for key Asian players) either to achieve better deals or to not re-enter long-term contracts and instead rely on the spot market.
8In the past, when LNG contracts expire, sellers and buyers have agreed to extend them based on the same or lower quantities.
8On the supply side, for old liquefaction plants at the end of their 20-year contract, investments have already been amortized. As further operations do not need third-party financing, they can retain more output for spot market or sell LNG on more flexible terms.
8But more importantly, it is demand uncertainty from once predictable buyers which is putting pressure on suppliers.
8In an oversupply situation, the LNG market shifts in favour of buyers who are keen to obtain better contractual conditions, notably more flexibility and lower prices or a move away from JCC-indexed prices.
8In this environment, contracts may not be extended, not because suppliers want to keep some LNG for spot trading, but because buyers do not wish to extend contracts or will extend them only by taking reduced volumes.
8Forthcoming changes on the supply side are another aspect of the contract renegotiations.
8In many instances, partners in LNG projects have marketed their LNG as a group or under a joint-venture rather than as individual companies but now uncontracted and excess LNG is returned to individual equity partners, who sell them bilaterally either through spot trades or tenders.
8Indian buyers can scan the markets for bargain deals from such sellers.
Click on Reports for more Details
The rise of aggregators and the increase in portfolio LNG has been accompanied by new players entering the LNG sector, challenging traditional business models and norms of doing business.
8While companies like Enron promoted different business models in the late 1990s, banks appeared in LNG trading in the 2000s. Those that survived the economic crisis contributed to developing the liquidity of the paper market, notably in Asia.
8Today, traders such as Trafigura, Vitol, Gunvor, and Glencore are increasingly involved in LNG trade and supply. They supply existing and new LNG markets, with some recent major success in Mexico, Egypt, Pakistan and Argentina, and are even engaged in some term deals with established buyers.
8In order to provide confidence about security of supply to customers and to gain a trading advantage over its competitors, Trafigura is using Petronet’s underutilized Kochi import terminal in India for storage and unutilized LNG vessels to ship cargoes.
8These trading giants are also entering into medium to even long term contracts. The Gunvor Group had won a tender to supply 120 cargoes to Pakistan over 2016-20.
8Meanwhile Glencore plans to double its global LNG trading team and trade as many as 50 cargoes in 2016 despite difficulties in late 2015
8With 3 MMTPA traded in 2013, Vitol is using its three dedicated LNG vessels on time charters to supply LNG based on spot, short-term and long-term contracts.
Click on Reports for more Details
8While companies like Enron promoted different business models in the late 1990s, banks appeared in LNG trading in the 2000s. Those that survived the economic crisis contributed to developing the liquidity of the paper market, notably in Asia.
8Today, traders such as Trafigura, Vitol, Gunvor, and Glencore are increasingly involved in LNG trade and supply. They supply existing and new LNG markets, with some recent major success in Mexico, Egypt, Pakistan and Argentina, and are even engaged in some term deals with established buyers.
8In order to provide confidence about security of supply to customers and to gain a trading advantage over its competitors, Trafigura is using Petronet’s underutilized Kochi import terminal in India for storage and unutilized LNG vessels to ship cargoes.
8These trading giants are also entering into medium to even long term contracts. The Gunvor Group had won a tender to supply 120 cargoes to Pakistan over 2016-20.
8Meanwhile Glencore plans to double its global LNG trading team and trade as many as 50 cargoes in 2016 despite difficulties in late 2015
8With 3 MMTPA traded in 2013, Vitol is using its three dedicated LNG vessels on time charters to supply LNG based on spot, short-term and long-term contracts.
Click on Reports for more Details
The global LNG industry is increasingly worried that Asia may have missed its Golden Age of Gas.
8The slowdown in the Chinese economy and the restart of a few Japanese nuclear power plants are in contradiction with projections of continued high Asian LNG demand.
8Chinese, Japanese and Korean LNG imports were down in 2015, prompting suppliers to redirect LNG to Europe and to new importers such as Egypt, Pakistan and Jordan.
8Europe has now turned from being the market of last resort, receiving only leftovers from Asia, to absorbing all surplus LNG.
8Examples of Asian buyers feeling awash with more contracted gas supplies than they can absorb are numerous.
8CNOOC sold cargoes from Australia's Queensland Curtis LNG to BP and BG in mid-2015.
8Sinopec no longer seems keen to take its 7.6 mtpa of contracted LNG from Australia’s APLNG6 terminal.
8PetroChina requested Qatargas to skew deliveries under its 3 mtpa long-term contract towards the peak demand winter period which is a major concession in terms of flexibility.
8Meanwhile, Petronet LNG has renegotiated the price of its 25-year long-term contract with Rasgas after India took only two-thirds of the contract volume in 2015, while their downward quantity tolerance (DQT) is only around 10 percent.
Click on Reports for more Details
8The slowdown in the Chinese economy and the restart of a few Japanese nuclear power plants are in contradiction with projections of continued high Asian LNG demand.
8Chinese, Japanese and Korean LNG imports were down in 2015, prompting suppliers to redirect LNG to Europe and to new importers such as Egypt, Pakistan and Jordan.
8Europe has now turned from being the market of last resort, receiving only leftovers from Asia, to absorbing all surplus LNG.
8Examples of Asian buyers feeling awash with more contracted gas supplies than they can absorb are numerous.
8CNOOC sold cargoes from Australia's Queensland Curtis LNG to BP and BG in mid-2015.
8Sinopec no longer seems keen to take its 7.6 mtpa of contracted LNG from Australia’s APLNG6 terminal.
8PetroChina requested Qatargas to skew deliveries under its 3 mtpa long-term contract towards the peak demand winter period which is a major concession in terms of flexibility.
8Meanwhile, Petronet LNG has renegotiated the price of its 25-year long-term contract with Rasgas after India took only two-thirds of the contract volume in 2015, while their downward quantity tolerance (DQT) is only around 10 percent.
Click on Reports for more Details
Many reasons are given for the transformation of the markets.
8One is the jump in LNG export infrastructure
8Another reason is the change in the nature of buyers from government monopoly or utilities in OECD countries to include smaller players, independent power producers and traders seeking to profit from arbitrage opportunities.
8Meanwhile established incumbents had to change their business models, as their market share was no longer guaranteed and stable markets saw greater volatility in gas demand.
8The impact of liberalization especially in Europe had a big impact a well.
8Improved third-party access (TPA) and the end of final destination clauses were crucial to making Europe a more flexible market, while the development of liquid hubs enabled LNG to be delivered at spot prices.
Click on Reports for more Details
8One is the jump in LNG export infrastructure
8Another reason is the change in the nature of buyers from government monopoly or utilities in OECD countries to include smaller players, independent power producers and traders seeking to profit from arbitrage opportunities.
8Meanwhile established incumbents had to change their business models, as their market share was no longer guaranteed and stable markets saw greater volatility in gas demand.
8The impact of liberalization especially in Europe had a big impact a well.
8Improved third-party access (TPA) and the end of final destination clauses were crucial to making Europe a more flexible market, while the development of liquid hubs enabled LNG to be delivered at spot prices.
Click on Reports for more Details
Even though the share of spot cargoes is going up, there is little analysis on their origins so far.
For reference purposes, the website carries here an analysis of recent cargoes in terms of:
8Cargoes originating from countries which have free LNG capacities.
8Cargoes emanating from exporting countries which are redirected from the initial market
8Names of aggregators who have cornered these cargoes.
Click on Reports for more Details
For reference purposes, the website carries here an analysis of recent cargoes in terms of:
8Cargoes originating from countries which have free LNG capacities.
8Cargoes emanating from exporting countries which are redirected from the initial market
8Names of aggregators who have cornered these cargoes.
Click on Reports for more Details
The surge in supply and slowing down of demand for LNG will see an increase in uncommitted LNG volumes in the global market.
8The projection is that uncommitted volumes will go up from about 17 MMTPA to 30 MMTPA by 2020.
8The point to note is that such volumes are likely to remain high right up to the projection period of 2025.
8The website also carries here the share of different exporting countries in these uncommitted supply matrix.
8The largest uncommitted volumes will be posted by Australia, followed by the US and Angola.
Click on Reports for more Details
8The projection is that uncommitted volumes will go up from about 17 MMTPA to 30 MMTPA by 2020.
8The point to note is that such volumes are likely to remain high right up to the projection period of 2025.
8The website also carries here the share of different exporting countries in these uncommitted supply matrix.
8The largest uncommitted volumes will be posted by Australia, followed by the US and Angola.
Click on Reports for more Details
The global LNG market is in a state of continuous flux.
8Slowing Asian demand and over supply of LNG have resulted in a sharp rise in the share of spot or short term LNG in the total LNG supply matrix.
8The latest projections show this share going up from about 23% in 2015 to almost 50% in 2025.
8Volumes traded on sport or short term basis will go up from about 50 MMTPA to 180 MMTPA in this period.
8Since the rise in sport trading is dependent on a certain set of assumptions which are subject to change, spot gas projections are given under high and base case scenarios.
Click on Reports for more Details
8Slowing Asian demand and over supply of LNG have resulted in a sharp rise in the share of spot or short term LNG in the total LNG supply matrix.
8The latest projections show this share going up from about 23% in 2015 to almost 50% in 2025.
8Volumes traded on sport or short term basis will go up from about 50 MMTPA to 180 MMTPA in this period.
8Since the rise in sport trading is dependent on a certain set of assumptions which are subject to change, spot gas projections are given under high and base case scenarios.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Supply & Commissioning of Gas Detection System, Hazira [GAIL] Details
8Flange Tightening by Torque Wrench or Bolt Tensioning in process units [MRPL] Details
8Supply of Gas Detectors, Guwahati Refinery [IOC] Details
8Excavation for health assessment of Underground Pipelines, Haldia Refinery [IOC] Details
8Remote Visual Inspection in inaccessible equipments and pipelines, Haldia Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Japan's upstream oil and gas investment to tumble in 2016/17 Details
8Rouble continues gains as oil approaches $50 per barrel Details
8Petronet Q4 net plunges 20 per cent to Rs 239 cr Details
8Government to issue notices to Essar Power, Monnet Ispat over dues Details
8Iran regards Modi as a role model: Pradhan Details
8India's mobility revolution is driving global oil demand Details
8U.S. shale output to dip for eighth consecutive month -EIA Details
8PNGRB puts off bidding for retail CNG licence in 11 cities Details
8Harsh Vardhan stresses on coal liquefaction research Details
8Total launches mammoth gas plant in Britain's Shetlands Details
8Oil producers taking advantage of rebound in crude oil to lock in protection against another slump Details
8Cambay oil field faces closure as GSPC-Oilex joint venture turns sour Details
8PM Modi to visit Iran this month to boost economic ties as the gulf nation becomes sanction-free Details
You can also click on Newsclips for more Details
8Supply & Commissioning of Gas Detection System, Hazira [GAIL] Details
8Flange Tightening by Torque Wrench or Bolt Tensioning in process units [MRPL] Details
8Supply of Gas Detectors, Guwahati Refinery [IOC] Details
8Excavation for health assessment of Underground Pipelines, Haldia Refinery [IOC] Details
8Remote Visual Inspection in inaccessible equipments and pipelines, Haldia Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Japan's upstream oil and gas investment to tumble in 2016/17 Details
8Rouble continues gains as oil approaches $50 per barrel Details
8Petronet Q4 net plunges 20 per cent to Rs 239 cr Details
8Government to issue notices to Essar Power, Monnet Ispat over dues Details
8Iran regards Modi as a role model: Pradhan Details
8India's mobility revolution is driving global oil demand Details
8U.S. shale output to dip for eighth consecutive month -EIA Details
8PNGRB puts off bidding for retail CNG licence in 11 cities Details
8Harsh Vardhan stresses on coal liquefaction research Details
8Total launches mammoth gas plant in Britain's Shetlands Details
8Oil producers taking advantage of rebound in crude oil to lock in protection against another slump Details
8Cambay oil field faces closure as GSPC-Oilex joint venture turns sour Details
8PM Modi to visit Iran this month to boost economic ties as the gulf nation becomes sanction-free Details
You can also click on Newsclips for more Details
Has ONGC set the EOI criteria too loosely for selection of the Owner Management Consultant for the KG-DWN-98/2?
8In the end what will happen is that there will be a big bunch of contractors jostling for attention at the Kakinanda conference, distracting the company from zeroing in on the two or three really competent consultants.
8ONGC's idea is to cast the net wide so as to be able to narrow down the list later.
8But this is an exercise that the company had done innumerable times in the past but it hasn't borne fruit earlier. It has only brought more trouble for the company.
8ONGC needs a global consultant -- and not the regular local consultant -- to evolve a tight selection criteria for such jobs.
8Lobbyists working for the contactors try and fine tune one or two selection criteria so as to muscle into a contract without the requisite qualification.
8And then put in a low enough price to qualify.
8There are scores of such examples in ONGC's Executive Purchase Committee minutes Details
8In the end what will happen is that there will be a big bunch of contractors jostling for attention at the Kakinanda conference, distracting the company from zeroing in on the two or three really competent consultants.
8ONGC's idea is to cast the net wide so as to be able to narrow down the list later.
8But this is an exercise that the company had done innumerable times in the past but it hasn't borne fruit earlier. It has only brought more trouble for the company.
8ONGC needs a global consultant -- and not the regular local consultant -- to evolve a tight selection criteria for such jobs.
8Lobbyists working for the contactors try and fine tune one or two selection criteria so as to muscle into a contract without the requisite qualification.
8And then put in a low enough price to qualify.
8There are scores of such examples in ONGC's Executive Purchase Committee minutes Details
There will be about 10 odd major packages and hundreds of sub-contracts in the Rs 34,000 proejct that ONGC plans to implement within a very tight three-year schedule.
8The lead time will be even less by the time LOIs are given for these contracts.
8In all, there are going to be10 large packages.
8Some of the contracts such as those for marine surveys have already been given out while those for geo-technical investigations and geo-mechanical studies are in the process of being hired out.
The really big upcoming contracts are for:
8Drilling and bundled services
8Subsea production system
8FPSO
8Onshore platform
8Onshore gas terminal work and an MEG plant
8Hiring of an MSV
8Owner engineering consultant
8Project management consultant
Click on Reports for more Details
8The lead time will be even less by the time LOIs are given for these contracts.
8In all, there are going to be10 large packages.
8Some of the contracts such as those for marine surveys have already been given out while those for geo-technical investigations and geo-mechanical studies are in the process of being hired out.
The really big upcoming contracts are for:
8Drilling and bundled services
8Subsea production system
8FPSO
8Onshore platform
8Onshore gas terminal work and an MEG plant
8Hiring of an MSV
8Owner engineering consultant
8Project management consultant
Click on Reports for more Details
This website is going to monitor the project carefully. We have in fact evolved our own project monitoring software to keep track of when future project RFQ dates are going to come out for different packages in this vast project.
8The software will also keep track of all sub packages too.
8The software will have multiple project level monitoring tools that contractors will find of great usage.
For every project milestone, it will monitor
-- Future RFQ dates
-- Equipment requirements in each of these forthcoming RFQs
-- Start-up dates
-- Validated key contacts both at the owner, PMC and EPC level.
8Our search tools are dynamic and will keep a subscriber plugged in to every aspect of project development.
8The full matrix of the project will be uploaded, with company, facility and unit details for easy referencing.
8Our wide range of contacts will ensure timely updation of project parameters.
8The RFQ dates for packages will be updated as often as demanded by the progress of the project.
8Our teams have hundreds of oil industry contacts they keep in regular touch with, and these will be leveraged to keep the software fully updated. Details
8The software will also keep track of all sub packages too.
8The software will have multiple project level monitoring tools that contractors will find of great usage.
For every project milestone, it will monitor
-- Future RFQ dates
-- Equipment requirements in each of these forthcoming RFQs
-- Start-up dates
-- Validated key contacts both at the owner, PMC and EPC level.
8Our search tools are dynamic and will keep a subscriber plugged in to every aspect of project development.
8The full matrix of the project will be uploaded, with company, facility and unit details for easy referencing.
8Our wide range of contacts will ensure timely updation of project parameters.
8The RFQ dates for packages will be updated as often as demanded by the progress of the project.
8Our teams have hundreds of oil industry contacts they keep in regular touch with, and these will be leveraged to keep the software fully updated. Details
Many ONGC projects have been delayed because courts have intervened in the contractor selection process of the company.
8ONGC must therefore hire the best lawyers in the business to ensure that the necessary caveats are placed in the courts that matter for the KG-DWN-98/2 job.
8Every effort must be made to see that the contractor does not get away with an unjust injunction.
8The project cost has already been skinned to the bone to ensure a positive IRR.
8Even the slightest miscalculation will impact deadlines and cost.
8The project will go on stream at a time when the LNG market will be in deep turmoil and ex-ship prices will be at $4/mmbtu or less. Breaking even is not going to be easy.
8This is the most complicated project that ONGC has ever handled.
8It is not just the cost economics which is tight but so is the geology.
8The company's track record of handling such projects has not been exceptional
8Can it pull this one off within the timelines set?
8Industry watchers are skeptical and the onus is on the company's brass to prove them wrong. Details
8ONGC must therefore hire the best lawyers in the business to ensure that the necessary caveats are placed in the courts that matter for the KG-DWN-98/2 job.
8Every effort must be made to see that the contractor does not get away with an unjust injunction.
8The project cost has already been skinned to the bone to ensure a positive IRR.
8Even the slightest miscalculation will impact deadlines and cost.
8The project will go on stream at a time when the LNG market will be in deep turmoil and ex-ship prices will be at $4/mmbtu or less. Breaking even is not going to be easy.
8This is the most complicated project that ONGC has ever handled.
8It is not just the cost economics which is tight but so is the geology.
8The company's track record of handling such projects has not been exceptional
8Can it pull this one off within the timelines set?
8Industry watchers are skeptical and the onus is on the company's brass to prove them wrong. Details
The hiring of Project Management Consultants (PMCs) and an Owner Management Consultant is the most critical part of the KG-DWN-98/2 project.
8Their competence will ensure timely project completion within the cost parameters set.
8There are laid down procedures for hiring of such consultants under CVC guidelines but ONGC must ensure that it does not tolerate any jockeying for the job.
8The point to note is that the best consultants in the business do not come cheap.
8ONGC's problem is in the laying of the qualification criteria for selection of such consultants. A complicated deepwater HTHP project will have only a handful of global consultants and they are easy to identify.
8The ONGC chairman must ensure that the qualification criteria are not set in a manner that will allow a bunch of motley contractors with widely varying competencies to compete on price.
8The L-1 contractor will take the bid but the consequence of an incompetent consultant will be felt at the project completion and cost level at a later point in time.
8Competition should be confined to just two or three contractors.
8If the company has a particular consultant in mind who will be best suited for the job, the chairman should go and get him at any cost, even by using the nomination route.
8He can seek special permission from the CVC if needed and keep his minister informed.
8Rules should of course be followed but they should not come in the way of getting the best in the business for the job. Too much is at stake otherwise. Details
8Their competence will ensure timely project completion within the cost parameters set.
8There are laid down procedures for hiring of such consultants under CVC guidelines but ONGC must ensure that it does not tolerate any jockeying for the job.
8The point to note is that the best consultants in the business do not come cheap.
8ONGC's problem is in the laying of the qualification criteria for selection of such consultants. A complicated deepwater HTHP project will have only a handful of global consultants and they are easy to identify.
8The ONGC chairman must ensure that the qualification criteria are not set in a manner that will allow a bunch of motley contractors with widely varying competencies to compete on price.
8The L-1 contractor will take the bid but the consequence of an incompetent consultant will be felt at the project completion and cost level at a later point in time.
8Competition should be confined to just two or three contractors.
8If the company has a particular consultant in mind who will be best suited for the job, the chairman should go and get him at any cost, even by using the nomination route.
8He can seek special permission from the CVC if needed and keep his minister informed.
8Rules should of course be followed but they should not come in the way of getting the best in the business for the job. Too much is at stake otherwise. Details
The Rs 34,000 crore KG-DWN-98/2 development is ONGC's first large scale deepwater development plan and the the schedules are tight.
8First gas is meant to commence in June, 2019 while date for first gas is March 2020. These are very tight schedules even by global standards.
8The company has begun the contracting process for the work involved. The FEED contract is out and ONGC is now looking for an Owner Management Consultant (OMC) who will work with the ONGC brass in New Delhi to monitor progress and coordinate with project management consultants to plug the loopholes in project progress and keep it moving along defined timelines.
8An EOI has been issued for the OMC and discussions with them are scheduled in Kakinanda shortly.
8The OMC will play an extremely critical role as it will manage risk, handle stakeholder interest and ensure real time reporting. It will benchmark the project against similar project globally, capture multi-level project activities, ensure that that the full suite of tools is used to monitor project work and ensure that work does not get held up due to bureaucratic procedures.
8Quite clearly, the OMC will have to be schooled in global best practices. Details
8First gas is meant to commence in June, 2019 while date for first gas is March 2020. These are very tight schedules even by global standards.
8The company has begun the contracting process for the work involved. The FEED contract is out and ONGC is now looking for an Owner Management Consultant (OMC) who will work with the ONGC brass in New Delhi to monitor progress and coordinate with project management consultants to plug the loopholes in project progress and keep it moving along defined timelines.
8An EOI has been issued for the OMC and discussions with them are scheduled in Kakinanda shortly.
8The OMC will play an extremely critical role as it will manage risk, handle stakeholder interest and ensure real time reporting. It will benchmark the project against similar project globally, capture multi-level project activities, ensure that that the full suite of tools is used to monitor project work and ensure that work does not get held up due to bureaucratic procedures.
8Quite clearly, the OMC will have to be schooled in global best practices. Details
For reference purposes the website carries here the following tenders:
8Bio-Remediation of Residual Oily Sludge, Digboi Refinery [IOC] Details
8Advisory Services for Preparation of Sustainable Development Report of 2015-16, Assam [OIL] Details
82D Seismic Data Acquisition of 870 LKM covering parts of Arunachal Pradesh and Assam [OIL] Details
8Erection and Commissioning of Fixed Bed Biomass Gasification Unit, Faridabad [IOC] Details
8Supply of Control Valve Spares, Digboi Refinery [IOC] Details
8Expression of Interest for Project Management Consultancy services for execution of Offshore Oil & Gas Projects [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Coal India, NTPC to form JV for revival of fertiliser plants Details
8Nitin Prasad, General Manager for Shell Lubricants set to take over from Yasmine Hilton as Chairman of Shell Companies in India Details
8India seeks to pay $6.5 billion to Iran for oil imports Details
8If Nigeria unrest continues, it won’t take long to tip global oil balance from surplus to deficit Details
8IPCL on lookout for acquisition opportunity in renewables Details
8Government expects all operational coal blocks to resume work by July Details
8India's mobility revolution is driving global oil demand: Kemp Details
8China’s Oil Industry Is faltering, Production Falls 5% Details
8Petrol price hiked by 83 paise, diesel up by Rs. 1.26 Details
You can also click on Newsclips for more Details
8Bio-Remediation of Residual Oily Sludge, Digboi Refinery [IOC] Details
8Advisory Services for Preparation of Sustainable Development Report of 2015-16, Assam [OIL] Details
82D Seismic Data Acquisition of 870 LKM covering parts of Arunachal Pradesh and Assam [OIL] Details
8Erection and Commissioning of Fixed Bed Biomass Gasification Unit, Faridabad [IOC] Details
8Supply of Control Valve Spares, Digboi Refinery [IOC] Details
8Expression of Interest for Project Management Consultancy services for execution of Offshore Oil & Gas Projects [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Coal India, NTPC to form JV for revival of fertiliser plants Details
8Nitin Prasad, General Manager for Shell Lubricants set to take over from Yasmine Hilton as Chairman of Shell Companies in India Details
8India seeks to pay $6.5 billion to Iran for oil imports Details
8If Nigeria unrest continues, it won’t take long to tip global oil balance from surplus to deficit Details
8IPCL on lookout for acquisition opportunity in renewables Details
8Government expects all operational coal blocks to resume work by July Details
8India's mobility revolution is driving global oil demand: Kemp Details
8China’s Oil Industry Is faltering, Production Falls 5% Details
8Petrol price hiked by 83 paise, diesel up by Rs. 1.26 Details
You can also click on Newsclips for more Details
It is not known what kind of due diligence ONGC has done while arriving at the decision not to use RIL's spare infrastructure in the D-6 block.
8RIL had built a capacity to handle 80 mmscmd of gas, going up to 120 mmscmd, but currently its production is at around 10 mmscmd. ONGC's output is expected to be around 10 msmcmd and this is something RIL's spare capacity can easily handle.
8RIL's Deep Water Pipeline End Manifold (DWPLEM) along with other attendant manifolds as well as the Umbilical Distribution Hub are located only a few kilometers away from ONGC's proposed wells and they have the spare capacity for necessary tie-ins.
8What is more, RIL's Control Riser Platform (CRP) too has a spare capacity for sub-sea infrastructure.
8ONGC also has a report by Aker that talks of large cost savings which can be available if RIL's infrastructure is tapped.
8So what kept the public sector E&P giant from tapping this capacity?
8Is it because of legacy issues or is it because it won't be correct for the company to share infrastructure in today's charged political environment?
8The point to note is that if ONGC can complete the KG-DWN-98/2 project on time and post a positive NPV on it, no fingers will be pointed.
8If not, several questions will be asked, especially when, according to one estimates, savings of up to Rs 10,00 crore was possible.
8There are reports that RIL's common infrastructure cannot be used because the gas and crude quality in KG-DWN-98/2 will be different from those produced in the D-6 block.
8But surely that cannot be the only answer. Details
8RIL had built a capacity to handle 80 mmscmd of gas, going up to 120 mmscmd, but currently its production is at around 10 mmscmd. ONGC's output is expected to be around 10 msmcmd and this is something RIL's spare capacity can easily handle.
8RIL's Deep Water Pipeline End Manifold (DWPLEM) along with other attendant manifolds as well as the Umbilical Distribution Hub are located only a few kilometers away from ONGC's proposed wells and they have the spare capacity for necessary tie-ins.
8What is more, RIL's Control Riser Platform (CRP) too has a spare capacity for sub-sea infrastructure.
8ONGC also has a report by Aker that talks of large cost savings which can be available if RIL's infrastructure is tapped.
8So what kept the public sector E&P giant from tapping this capacity?
8Is it because of legacy issues or is it because it won't be correct for the company to share infrastructure in today's charged political environment?
8The point to note is that if ONGC can complete the KG-DWN-98/2 project on time and post a positive NPV on it, no fingers will be pointed.
8If not, several questions will be asked, especially when, according to one estimates, savings of up to Rs 10,00 crore was possible.
8There are reports that RIL's common infrastructure cannot be used because the gas and crude quality in KG-DWN-98/2 will be different from those produced in the D-6 block.
8But surely that cannot be the only answer. Details
The EIA has projected that the Henry Hub price of gas is going to go up from $2/mmbtu to $3.22/mmbtu by the Q4, 2017. That should usually be cheerful news for a supplier of LNG.
8But for GAIL, it comes as bad news
8At a price of around $3.22/mmbtu by end 2017, GAIL's cargoes to even the nearest destinations from the Sabine Pass and Cove Point terminals -- with whom the Gas major has booked 5.8 MMTPA of annual offtake -- will cost over $6/mmbtu.
8This is assuming a minimum LNG shipping cost of $1/mmbtu, and a fixed processing cost of $3/mmbtu.
8By the time GAIL's cargoes reach India, it will be frightfully expensive.
8Even to Europe, such prices are likely to be unviable as Russia will be willing to go to any level to fight off competition from US based LNG supplies.
8The Russians will want to hang in to their market share and they can bring down the price to as low as $3/mmbtu to stay competitive.
8The LNG over supply situation is likely to be at its worst in 2018 -- when GAIL's full 5.8 MMTPA offtake commitment will come into play.
8Crude prices are likely to strengthen in 2018 and crude indexed long term gas contract prices will rise but the point to note is that spot prices will be under severe pressure because of the supply overhang.
8If there is a big spread between spot and long term contracts, countries such as India will abandon long term cargoes for short term deliveries because domestic buyers are highly price sensitive.
8This may force big suppliers such as RasGas of Qatar to cut prices again to retain market share.
Click on Reports for more Details
8But for GAIL, it comes as bad news
8At a price of around $3.22/mmbtu by end 2017, GAIL's cargoes to even the nearest destinations from the Sabine Pass and Cove Point terminals -- with whom the Gas major has booked 5.8 MMTPA of annual offtake -- will cost over $6/mmbtu.
8This is assuming a minimum LNG shipping cost of $1/mmbtu, and a fixed processing cost of $3/mmbtu.
8By the time GAIL's cargoes reach India, it will be frightfully expensive.
8Even to Europe, such prices are likely to be unviable as Russia will be willing to go to any level to fight off competition from US based LNG supplies.
8The Russians will want to hang in to their market share and they can bring down the price to as low as $3/mmbtu to stay competitive.
8The LNG over supply situation is likely to be at its worst in 2018 -- when GAIL's full 5.8 MMTPA offtake commitment will come into play.
8Crude prices are likely to strengthen in 2018 and crude indexed long term gas contract prices will rise but the point to note is that spot prices will be under severe pressure because of the supply overhang.
8If there is a big spread between spot and long term contracts, countries such as India will abandon long term cargoes for short term deliveries because domestic buyers are highly price sensitive.
8This may force big suppliers such as RasGas of Qatar to cut prices again to retain market share.
Click on Reports for more Details
Most Indian bureaucrats and politicians believe in the power of India.
8That India is a country of great potential and everyone one day will have to come knocking on their doors for a slice of the cake.
8While this point of view is right as a general principle given India's size and market, it has done immeasurable harm to the petroleum industry.
8It has chased away investors that could have had a role in dramatically transforming the industry.
8Big companies such as BP and BHP Billiton are huge conglomerates and their financial and technological muscle power cannot be matched by Indian companies.
8Like all companies, they chase profits but when they want to make a big investment, it is a vote of confidence on a country's prospects.
8India is not known for its hydrocarbon prospectively but when a BHP Billiton or a BP wants to risk its money, it proves the hypothesis wrong. And that in itself is a big achievement as it helps change the perception that India has no hydrocarbon reserves worth tapping.
8It is wrong to assume, as the powers that be in India do, that India is the big investment opportunity that no one can afford to miss. It is at least not true in the hydrocarbon sector as these multinationals have a portfolio of opportunities around the world and if it is not India, it will be some other country where the money will go in. Multinational oil investments have transformed the economies of many countries in the world.
8The attitude must change from cornering these global giants with red tape and forcing them to pay obedience at Shastri Bhavan to engaging them proactively to keep them invested in India.
8BHP Billiton has already left the country in utter disgust and BP, it is learnt, is not keen on putting in big money in the KG Basin. Other big companies which have retreated unhappily from India were Statoil, ENI and Gazprom.
8It is unlikely that these oil majors will ever participate in future E&P rounds in India. Those who have gained a foothold here, like BG, are not keen on furthering their footprint.
8A scholar must one day persue the petroleum ministry files on the entire decision making process around this period and he may in all likelihood surprise his supervisor with his findings.
8In the hands of smart editors such as those who work with this website, his thesis can become a best seller and can be held up for a younger generation of administrators as examples of policies they should not pursue in the future.
Click on Reports for more Details
8That India is a country of great potential and everyone one day will have to come knocking on their doors for a slice of the cake.
8While this point of view is right as a general principle given India's size and market, it has done immeasurable harm to the petroleum industry.
8It has chased away investors that could have had a role in dramatically transforming the industry.
8Big companies such as BP and BHP Billiton are huge conglomerates and their financial and technological muscle power cannot be matched by Indian companies.
8Like all companies, they chase profits but when they want to make a big investment, it is a vote of confidence on a country's prospects.
8India is not known for its hydrocarbon prospectively but when a BHP Billiton or a BP wants to risk its money, it proves the hypothesis wrong. And that in itself is a big achievement as it helps change the perception that India has no hydrocarbon reserves worth tapping.
8It is wrong to assume, as the powers that be in India do, that India is the big investment opportunity that no one can afford to miss. It is at least not true in the hydrocarbon sector as these multinationals have a portfolio of opportunities around the world and if it is not India, it will be some other country where the money will go in. Multinational oil investments have transformed the economies of many countries in the world.
8The attitude must change from cornering these global giants with red tape and forcing them to pay obedience at Shastri Bhavan to engaging them proactively to keep them invested in India.
8BHP Billiton has already left the country in utter disgust and BP, it is learnt, is not keen on putting in big money in the KG Basin. Other big companies which have retreated unhappily from India were Statoil, ENI and Gazprom.
8It is unlikely that these oil majors will ever participate in future E&P rounds in India. Those who have gained a foothold here, like BG, are not keen on furthering their footprint.
8A scholar must one day persue the petroleum ministry files on the entire decision making process around this period and he may in all likelihood surprise his supervisor with his findings.
8In the hands of smart editors such as those who work with this website, his thesis can become a best seller and can be held up for a younger generation of administrators as examples of policies they should not pursue in the future.
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An investment house has put out a "buy" recommendation on RIL, saying that the company is at the cusp of a major transformation led by the commissioning of the US$18.5bn petrochemical projects in H2FY17E.
8RIL’s "transformational" petrochemicals project is likely to generate incremental EBITDA of around Rs155 bn (US$2.3bn) in FY18E.
8Project economics is likely to improve with higher commodity prices.
8Then again, RIL’s core business continues to remain healthy as product demand revival in US, China and India along with trailing capacity addition support refining margins (GRMs). Though drop in gasoil spreads is a
8concern, benefits like rising discounts from Middle East crude producers and lower operating cost will aid refining margins.
8On the flip side, the continued uncertainty on Reliance Jio’s (RJio’s) launch date for high speed data services and rising capex (US$23bn) remains a worrying point.
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8RIL’s "transformational" petrochemicals project is likely to generate incremental EBITDA of around Rs155 bn (US$2.3bn) in FY18E.
8Project economics is likely to improve with higher commodity prices.
8Then again, RIL’s core business continues to remain healthy as product demand revival in US, China and India along with trailing capacity addition support refining margins (GRMs). Though drop in gasoil spreads is a
8concern, benefits like rising discounts from Middle East crude producers and lower operating cost will aid refining margins.
8On the flip side, the continued uncertainty on Reliance Jio’s (RJio’s) launch date for high speed data services and rising capex (US$23bn) remains a worrying point.
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The ministry of environment has set its own guidelines for Environment Impact Assessment reports through its 2006 notification and various subsequent amendments. There is also a Technical EIA Guidance Manual for "Oil & Gas Transportation Pipeline" of the ministry.
8While adhering to the nonfictions, Indian Oil Corporation has come out with its own compliance requirements for the conduct of EIA studies for pipelines.
8The nature of support that third party vendors can provide to IOC in the preparation of such pipeline studies has also been spelt out.
8Time for completion of an EIA study for a pipeline has been set at 16 months
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8While adhering to the nonfictions, Indian Oil Corporation has come out with its own compliance requirements for the conduct of EIA studies for pipelines.
8The nature of support that third party vendors can provide to IOC in the preparation of such pipeline studies has also been spelt out.
8Time for completion of an EIA study for a pipeline has been set at 16 months
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Petronet LNG Ltd has set a minimum turnover limit for LNG suppliers who want to enter into Master Sales Agreements (MSA) with it.
8A series of technical qualifications have also been set.
8The minimum entry barrier is an annual turnover of $50 million.
8The seller should have the experience of selling at least two cargoes of LNG
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8A series of technical qualifications have also been set.
8The minimum entry barrier is an annual turnover of $50 million.
8The seller should have the experience of selling at least two cargoes of LNG
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This website has been an admirer of Andrew Mackenzie, the CEO of BHP Billiton, the world largest mining company.
8Mackenzie has transformed one of the worst crises facing the mining industry into a glorious opportunity.
8The CEO has recently claimed that the base value of its operations will go up by a whopping 70% without taking the upside in price of commodities.
8Cost and volume productivity will be the primary driver of value as will be exploitation of latent capacity options. The other growth drivers will be the continued reduction in its shale oil breakeven prices and the leveraging of technology to lower the cost base and unlock resources.
8Unit costs are likely to go down by 50%
8Mackenzie claims his company has $25 billion worth of NPV in unrisked quality growth options. This is over and above any upside in commodity prices.
8The company had a total of 10 E&P blocks in the area beyond Mumbai High.
8In presentations before the petroleum ministry, it had claimed if it was allowed to continue its exploration drive, there were prospects of finding billions of barrels equivalent of hydrocarbon reserves off the west coast of India.
8But the ministry, then under Veerappa Moily had different priorities, and did little to keep the company in India.
8Who knows had the multinational stayed invested in India, it could perhaps have transformed the hydrocarbon industry in the country.
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8Mackenzie has transformed one of the worst crises facing the mining industry into a glorious opportunity.
8The CEO has recently claimed that the base value of its operations will go up by a whopping 70% without taking the upside in price of commodities.
8Cost and volume productivity will be the primary driver of value as will be exploitation of latent capacity options. The other growth drivers will be the continued reduction in its shale oil breakeven prices and the leveraging of technology to lower the cost base and unlock resources.
8Unit costs are likely to go down by 50%
8Mackenzie claims his company has $25 billion worth of NPV in unrisked quality growth options. This is over and above any upside in commodity prices.
8The company had a total of 10 E&P blocks in the area beyond Mumbai High.
8In presentations before the petroleum ministry, it had claimed if it was allowed to continue its exploration drive, there were prospects of finding billions of barrels equivalent of hydrocarbon reserves off the west coast of India.
8But the ministry, then under Veerappa Moily had different priorities, and did little to keep the company in India.
8Who knows had the multinational stayed invested in India, it could perhaps have transformed the hydrocarbon industry in the country.
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Global data also shows that refinery profits quadrupled in 2015 as refinery cracks spreads widened.
8While North Amercian refiners remained the most profitable, emerging market refiners showed a sharp increase in profitability.
8This happened even as refining capital expenditure fell a good $25 billion in 2015.
8Distillation capacity increases in China and North America had offset reductions from refiners with global operations.
8Global capacity utilization showed a increase but those from emerging markets exuded a decline.
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8While North Amercian refiners remained the most profitable, emerging market refiners showed a sharp increase in profitability.
8This happened even as refining capital expenditure fell a good $25 billion in 2015.
8Distillation capacity increases in China and North America had offset reductions from refiners with global operations.
8Global capacity utilization showed a increase but those from emerging markets exuded a decline.
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There is a dangerous dip in the global reserve replacement ratio in 2015 as was evident from a survey of reportings made by the top 100 oil companies in the world.
8The ratio has gone down to as low as 20%in 2015 from a high of 140% in 2013.
8In 2014, when prices were high, the ratio was around 118%.
8For liquids, the ratio went down to about 78% in 2015 from 110% in 2013.
8These downward revisions in proved reserves offset to a good extent new discoveries of oil and gas in the world.
8On the brighter side, excluding downward revision of past reserves, finding and lifting costs have come down by $12/boe to $38/boe.
8Then again, capital expenditure and cash flow fell $152 billion and $192 billion respectively, the largest year-over-year change in the 2007-15 period.
8The write-down in the value of proved reserves totaled $217 billion in 2015, the largest since 2007.
8These interesting findings can be used by Indian E&P operators to benchmark their own performance.
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8The ratio has gone down to as low as 20%in 2015 from a high of 140% in 2013.
8In 2014, when prices were high, the ratio was around 118%.
8For liquids, the ratio went down to about 78% in 2015 from 110% in 2013.
8These downward revisions in proved reserves offset to a good extent new discoveries of oil and gas in the world.
8On the brighter side, excluding downward revision of past reserves, finding and lifting costs have come down by $12/boe to $38/boe.
8Then again, capital expenditure and cash flow fell $152 billion and $192 billion respectively, the largest year-over-year change in the 2007-15 period.
8The write-down in the value of proved reserves totaled $217 billion in 2015, the largest since 2007.
8These interesting findings can be used by Indian E&P operators to benchmark their own performance.
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Is ethanol procurement likely to go up this year?
8This is what the petroleum ministry is predicting.
8Data shows that 67.42 crore litres of ethanol was procured for blending with petrol in the sugar year 2014-15.
8This is up from 38 crore litres in 2013-14. The government takes credit for the increase in procurement, claiming that raising the price of ethanol and allowing for alternate route of making the product helped in the pushing up the figures.
8There is however many a slip between the cup and the lip. The OMCs have floated a tender for 266 crore litres of alcohol to meet the 10% blending target .
8The sugar industry in turn has offered to sell more than 135 crore liters but there is always a big gap between what is offered and what is actually procured.
8A tender is floated according to the unrealistic targets set by the government. The sugar industry sends in its offers and then eventually a far lower amount of ethanol is actually procured.
8It remains to be seen how well the ethanol blending programmes works out the current sugar year.
8Industry observers will notice that it has become a ritualistic exercise of sticking to a unreaslistic blending target, floating tenders, accepting offers and eventually settling for a very small volume of procured ethanol.
8No one seems to be keen on stepping out of this make believe world to make a realistic assessment of where this industry is headed.
8A study needs to be done on the cost-benefit of the entire exercise by also imputing a cost to the high water intensity of sugarcane cultivation in drought prone India. Studies have also shown that bio-energy has a larger carbon footprint than traditional oil and gas sources.
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8This is what the petroleum ministry is predicting.
8Data shows that 67.42 crore litres of ethanol was procured for blending with petrol in the sugar year 2014-15.
8This is up from 38 crore litres in 2013-14. The government takes credit for the increase in procurement, claiming that raising the price of ethanol and allowing for alternate route of making the product helped in the pushing up the figures.
8There is however many a slip between the cup and the lip. The OMCs have floated a tender for 266 crore litres of alcohol to meet the 10% blending target .
8The sugar industry in turn has offered to sell more than 135 crore liters but there is always a big gap between what is offered and what is actually procured.
8A tender is floated according to the unrealistic targets set by the government. The sugar industry sends in its offers and then eventually a far lower amount of ethanol is actually procured.
8It remains to be seen how well the ethanol blending programmes works out the current sugar year.
8Industry observers will notice that it has become a ritualistic exercise of sticking to a unreaslistic blending target, floating tenders, accepting offers and eventually settling for a very small volume of procured ethanol.
8No one seems to be keen on stepping out of this make believe world to make a realistic assessment of where this industry is headed.
8A study needs to be done on the cost-benefit of the entire exercise by also imputing a cost to the high water intensity of sugarcane cultivation in drought prone India. Studies have also shown that bio-energy has a larger carbon footprint than traditional oil and gas sources.
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How much local alcohol does the state of Bihar consume every year?
8The answer is 6 crore litres!
8This figure came out after Bihar, having banned the sale of liquor, sought help from the petroleum ministry to dispose off the spare alcohol produced from molasses.
8Petroleum minister Dharmendra Pradhan has gallantly agreed to step in.
8Oil marketing companies (OMCs) will now lift the entire alcohol stock and use it for blending with petrol.
8The price tag has been pegged at Rs 300 crore.
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8The answer is 6 crore litres!
8This figure came out after Bihar, having banned the sale of liquor, sought help from the petroleum ministry to dispose off the spare alcohol produced from molasses.
8Petroleum minister Dharmendra Pradhan has gallantly agreed to step in.
8Oil marketing companies (OMCs) will now lift the entire alcohol stock and use it for blending with petrol.
8The price tag has been pegged at Rs 300 crore.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Annual Maintenance Contract for cathodic protection system installed at 30 LPG Bottling Plants [IOC] Details
8Shell and Tube Heat Exchangers for DHDS Unit, Gujarat Refinery [IOC] Details
8Services for replacement of SS impulse tubing of field transmitter to CS, Bongaigaon Refinery [IOC] Details
8Supply of Globe Control Valves for DHDS Unit, Gujarat Refinery [IOC] Details
8Rectification work of IPS anomalies defects of pipelines, Rajasthan [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Reliance oil imports down 12 percent in April Details
8Vedanta looks to raise inter-corporate loans to Rs 80,000 crore Details
8IGL records net profit of Rs 464.13 crores in FY’16, both CNG & PNG sales grow by 4% Details
8RIL gets green nod for exploratory drilling project in Tamil Nadu Details
8Greece says will evaluate deep-sea oil and gas exploration bids within weeks Details
8China April crude oil output lowest since July 2013 Details
8CIL invites global cos for consultancy on coal gasification Details
8Gujarat: Shah to inaugurate second phase of Pradhanmantri Ujjwala Yojana today Details
8India third in attractiveness index of renewable energy: Report Details
8Saudi Arabia hit by new credit rating downgrade Details
8Pradhan Mantri Ujjwala Yojana launched for three states of Madhya Pradesh, Rajasthan & Gujarat Details
8First Natural Gas Pipeline bid in Eastern India won by H-Energy Details
8Initiative of Ministry of Petroleum and Natural Gas on the New Excise Policy 2016 by Government of Bihar Details
8Retrospective tax issue not helping government image: Cairn CEO Simon Thomson Details
8Brazil's Petrobras reports sharp first-quarter loss Details
8Russia's Novak: Global oil market won't balance before H1 2017 Details
8US unveils first federal methane regulations aimed at reducing emissions from new oil and gas operations Details
8Volume boost for Indraprastha Gas Details
8Less PSU dividends in FY16? Details
8India using buying power to beat down crude oil prices Details
You can also click on Newsclips for more Details
8Annual Maintenance Contract for cathodic protection system installed at 30 LPG Bottling Plants [IOC] Details
8Shell and Tube Heat Exchangers for DHDS Unit, Gujarat Refinery [IOC] Details
8Services for replacement of SS impulse tubing of field transmitter to CS, Bongaigaon Refinery [IOC] Details
8Supply of Globe Control Valves for DHDS Unit, Gujarat Refinery [IOC] Details
8Rectification work of IPS anomalies defects of pipelines, Rajasthan [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Reliance oil imports down 12 percent in April Details
8Vedanta looks to raise inter-corporate loans to Rs 80,000 crore Details
8IGL records net profit of Rs 464.13 crores in FY’16, both CNG & PNG sales grow by 4% Details
8RIL gets green nod for exploratory drilling project in Tamil Nadu Details
8Greece says will evaluate deep-sea oil and gas exploration bids within weeks Details
8China April crude oil output lowest since July 2013 Details
8CIL invites global cos for consultancy on coal gasification Details
8Gujarat: Shah to inaugurate second phase of Pradhanmantri Ujjwala Yojana today Details
8India third in attractiveness index of renewable energy: Report Details
8Saudi Arabia hit by new credit rating downgrade Details
8Pradhan Mantri Ujjwala Yojana launched for three states of Madhya Pradesh, Rajasthan & Gujarat Details
8First Natural Gas Pipeline bid in Eastern India won by H-Energy Details
8Initiative of Ministry of Petroleum and Natural Gas on the New Excise Policy 2016 by Government of Bihar Details
8Retrospective tax issue not helping government image: Cairn CEO Simon Thomson Details
8Brazil's Petrobras reports sharp first-quarter loss Details
8Russia's Novak: Global oil market won't balance before H1 2017 Details
8US unveils first federal methane regulations aimed at reducing emissions from new oil and gas operations Details
8Volume boost for Indraprastha Gas Details
8Less PSU dividends in FY16? Details
8India using buying power to beat down crude oil prices Details
You can also click on Newsclips for more Details
For reference purposes, the website carries here the following data:
Individual turnover of oil marketing companies in the last three years
8Dividend paid by them over the last three years.
8The per barrel/MT monthly international price since April 2013 of the following products:
-- Petrol
-- Diesel
-- Kerosene
-- LPG
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Individual turnover of oil marketing companies in the last three years
8Dividend paid by them over the last three years.
8The per barrel/MT monthly international price since April 2013 of the following products:
-- Petrol
-- Diesel
-- Kerosene
-- LPG
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HPCL's capital allocation for its immediate capacity expansion plans has been pegged at Rs 22,520 crore.
8Rs 4200 crore has been earmarked for expansion of the Mumbai refinery from 6.5 MMTPA to 9.5 MMTPA.
8Rs 18,400 crore will be spent in expanding the Vizag refinery from 8.3 to 15 MMTPA.
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8Rs 4200 crore has been earmarked for expansion of the Mumbai refinery from 6.5 MMTPA to 9.5 MMTPA.
8Rs 18,400 crore will be spent in expanding the Vizag refinery from 8.3 to 15 MMTPA.
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It is also time now for the Modi government to relook at the prospect of tapping into the Mumbai High blocks allocated to BHP Billiton under the NELP-VII and NELP-VIII rounds.
8The international mining major had to abandon the search for hydrocarbons in these blocks because of objections by the ministry of defence.
8The company has claimed that these west coast blocks have a reserve potential of about 10 billion barrels of oil equivalent (Bboe).
8These blocks are an extension of the Mumbai High formations, the company had said.
8The reserves were assumed to be lodged within the tertiary sections, particularly around the Angria Banks. Pertinently, ONGC's Mumbai High field has discovered reserves of 10 Bboe, all within the same tertiary section.
8In addition to this, BHP Billiton saw enormous potential in the cretaceous sub-basalt section. The company estimated at least 25 leads in this section, again with multi-billion barrel potential.
8To unlock this sub-basalt potential, the company had applied state-of-the-art 2D seismic acquisition and processing while also carrying out the reprocessing of vintage data but all of this effort was in vain.
8Eventually, however, because of objections from the ministry of defence the multinational could not carry out any further exploration work and had to surrender the blocks.
8Dharmendra Pradhan must ask someone to open up the data and get someone to investigate the claims made by BHP Billiton,
8If the prospectively is high, he should get the MOD to ease the barriers for exploration and then get ONGC involved.
Click on Reports to know more about the prospectively of the area. Details
8The international mining major had to abandon the search for hydrocarbons in these blocks because of objections by the ministry of defence.
8The company has claimed that these west coast blocks have a reserve potential of about 10 billion barrels of oil equivalent (Bboe).
8These blocks are an extension of the Mumbai High formations, the company had said.
8The reserves were assumed to be lodged within the tertiary sections, particularly around the Angria Banks. Pertinently, ONGC's Mumbai High field has discovered reserves of 10 Bboe, all within the same tertiary section.
8In addition to this, BHP Billiton saw enormous potential in the cretaceous sub-basalt section. The company estimated at least 25 leads in this section, again with multi-billion barrel potential.
8To unlock this sub-basalt potential, the company had applied state-of-the-art 2D seismic acquisition and processing while also carrying out the reprocessing of vintage data but all of this effort was in vain.
8Eventually, however, because of objections from the ministry of defence the multinational could not carry out any further exploration work and had to surrender the blocks.
8Dharmendra Pradhan must ask someone to open up the data and get someone to investigate the claims made by BHP Billiton,
8If the prospectively is high, he should get the MOD to ease the barriers for exploration and then get ONGC involved.
Click on Reports to know more about the prospectively of the area. Details
The government has collected a lot more money by way of customs and excise duties last year than it ever did in the previous years.
8One reasons for the increase in collection is a hike in duties.
8The other reasons is an increase in the import of crude oil, petrol and diesel in 2015-16.
8Higher imports were on account of an increase in the consumption of petrol and diesel.
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8One reasons for the increase in collection is a hike in duties.
8The other reasons is an increase in the import of crude oil, petrol and diesel in 2015-16.
8Higher imports were on account of an increase in the consumption of petrol and diesel.
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The Oil Industry Development Board (OIDB) has spent a total of Rs 4098 crore to set up crude oil storage capacities of 5.03 MM at Vizag, Mangalore and Padur.
8The government has utilized a budget provision of Rs 1153 crore in 2015-16 to fill crude in the Vizag cavern.
8This expenditure was from a total allocation of Rs 4948 crore made in the 12th Five Year Plan for crude needed to fill up all three caverns.
8The government plans to spend Rs 15694.86 crore in creating additional crude storage capacities of 2.5 MMT at Chandikhol (3.75 MMT), Padur(2.5 MMT), Rajkot
(2.5 MMT) and Bikaner (3.75 MMT).
8The execution time has been taken as 6-8 years
8Vendors must begin looking up the contract cell of ISPRL for more activity on this front,
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8The government has utilized a budget provision of Rs 1153 crore in 2015-16 to fill crude in the Vizag cavern.
8This expenditure was from a total allocation of Rs 4948 crore made in the 12th Five Year Plan for crude needed to fill up all three caverns.
8The government plans to spend Rs 15694.86 crore in creating additional crude storage capacities of 2.5 MMT at Chandikhol (3.75 MMT), Padur(2.5 MMT), Rajkot
(2.5 MMT) and Bikaner (3.75 MMT).
8The execution time has been taken as 6-8 years
8Vendors must begin looking up the contract cell of ISPRL for more activity on this front,
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Cairn India had brought about significant savings in cost of operations in its Rajasthan block.
8The water flood opex at $5.2/boe in FY2016 stood reduced by 11% YoY
8Blended operating cost including polymer flooding at $6.5/boe remains well below estimated cost
8There is also a 26% increase in field EUR as compared to the FDP estimate till 2030
8Improved operation efficiency is showing up, as days per frac was reduced from 4.5 to 2.2 .
8This is a very significant 50% reduction in per frac cost
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8The water flood opex at $5.2/boe in FY2016 stood reduced by 11% YoY
8Blended operating cost including polymer flooding at $6.5/boe remains well below estimated cost
8There is also a 26% increase in field EUR as compared to the FDP estimate till 2030
8Improved operation efficiency is showing up, as days per frac was reduced from 4.5 to 2.2 .
8This is a very significant 50% reduction in per frac cost
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Big investments by the oil marketing companies in the next five years, totaling up to Rs 3,75000 crore, will provide a significant boost to equipment and service providers.
8IOC's deployment of Indmax, Iso Octene and desulphurization technologies will create a strong domestic vendor base.
8Then again, BPCL plans to raise the total procurement from small vendors from the level of 23%.
8HPCL too have big plans
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8IOC's deployment of Indmax, Iso Octene and desulphurization technologies will create a strong domestic vendor base.
8Then again, BPCL plans to raise the total procurement from small vendors from the level of 23%.
8HPCL too have big plans
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