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Jun 2016
The very fact that stock market punters know in advance the exact quantum of tariff increase to be allowed by the PNGRB for monopoly networks is a very serious charge.
8Is there an insider trading racket going on within the regulator?
8Stock prices have always gone up on the eve of such orders by the regulator.
8The website was surprised to find one stock broking company recommending a buy on a certain gas company scrip by predicting the exact quantum of tariff increase in what was a highly contentious ruling.
8Aren't the deliberations of the tariff fixation committee of a statutory body meant to be confidential till the order is passed?
8There can be allegations of deliberate wrongdoing by the regulator and some of its actions require tougher judicial and Parliamentary scrutiny.
Click on Reports for more Details
8Is there an insider trading racket going on within the regulator?
8Stock prices have always gone up on the eve of such orders by the regulator.
8The website was surprised to find one stock broking company recommending a buy on a certain gas company scrip by predicting the exact quantum of tariff increase in what was a highly contentious ruling.
8Aren't the deliberations of the tariff fixation committee of a statutory body meant to be confidential till the order is passed?
8There can be allegations of deliberate wrongdoing by the regulator and some of its actions require tougher judicial and Parliamentary scrutiny.
Click on Reports for more Details
A public awareness programme should be launched against the attempt by city gas distribution companies to keep their monopoly on distribution of gas despite the fact that their exclusivity periods have ended.
8IGL is fighting a battle over exclusivity with the PNGRB when it is quite evident that the exclusivity period ended in 2012.
8The company is arguing that the withdrawal of the exclusivity period will adversely affect the economic viability of infrastructure that the entity had built, supposedly under the government's instructions, to ensure domestic LNG connections are given not just within urban limits of Delhi but also in its rural parts while being unmindful of cost.
8IGL then goes on to claim that PNGRB is not authorized to end the exclusivity period as it is only invested with the right to flesh out the guiding principles to determine the end of exclusivity and not with powers to terminate it.
8The company however is silent on who has the powers to terminate the exclusivity provision
8What IGL is doing is pure filibustering.
8The goal is to obfuscate the issue so that it is buried in meaningless legalese.
8IGL, in this case, is goaded by none other than GAIL, one of whose middle level officers is loaned as a CEO to the city gas entity, to put up a fight.
8But what IGL is losing out on, like GAIL did, is both credibility and goodwill.
8This is where the petroleum minister must intervene.
8One can well imagine what kind of treatment will be meted out to any third party who might be interested in loaning out IGL's assets based on the common carrier principle once the exclusivity period is terminated.
Click on Reports for more Details
8IGL is fighting a battle over exclusivity with the PNGRB when it is quite evident that the exclusivity period ended in 2012.
8The company is arguing that the withdrawal of the exclusivity period will adversely affect the economic viability of infrastructure that the entity had built, supposedly under the government's instructions, to ensure domestic LNG connections are given not just within urban limits of Delhi but also in its rural parts while being unmindful of cost.
8IGL then goes on to claim that PNGRB is not authorized to end the exclusivity period as it is only invested with the right to flesh out the guiding principles to determine the end of exclusivity and not with powers to terminate it.
8The company however is silent on who has the powers to terminate the exclusivity provision
8What IGL is doing is pure filibustering.
8The goal is to obfuscate the issue so that it is buried in meaningless legalese.
8IGL, in this case, is goaded by none other than GAIL, one of whose middle level officers is loaned as a CEO to the city gas entity, to put up a fight.
8But what IGL is losing out on, like GAIL did, is both credibility and goodwill.
8This is where the petroleum minister must intervene.
8One can well imagine what kind of treatment will be meted out to any third party who might be interested in loaning out IGL's assets based on the common carrier principle once the exclusivity period is terminated.
Click on Reports for more Details
Total consumption of gas by city gas entities in the country was 5253 mmscm in 2015-16, according to latest data released by government agencies.
8This amounts to a consumption of 14.39 msmcmd of gas.
8The data shows that CNG sales across 60 geographical areas (GAs) stood at 2539 mmscm, which translates to 6.95 mmscmd of consumption.
8In comparison, Piped Natural Gas (PNG) sales were at 2824 mmscm, equal to 7.7 mmscmd.
8Pertinently, residential supply was a mere 380 mmscm, equal to a little over 1 mmscmd of gas.
8Bulk of the PNG sales was to industrial and commercial segments, amounting to 2444 mmscm, or 6.6 mmscmd of gas.
8Gujarat by far was the biggest consumer of gas, at 2378 mmscm. Of this, PNG offtake amounted to 1875 mmscm whereas CNG sales were at 503 mmscm.
8The state also had the highest number of authorized GAs, at 16, followed by Uttar Pradesh at 11 GAs.
8While UP had a large number of GAs, its consumption was just 628 mmscm.
8Delhi and Maharashtra were the second and third largest consumers of gas in 2015-16, at 1113 and 1073 mmscm respectively.
Click on Reports for more Details
8This amounts to a consumption of 14.39 msmcmd of gas.
8The data shows that CNG sales across 60 geographical areas (GAs) stood at 2539 mmscm, which translates to 6.95 mmscmd of consumption.
8In comparison, Piped Natural Gas (PNG) sales were at 2824 mmscm, equal to 7.7 mmscmd.
8Pertinently, residential supply was a mere 380 mmscm, equal to a little over 1 mmscmd of gas.
8Bulk of the PNG sales was to industrial and commercial segments, amounting to 2444 mmscm, or 6.6 mmscmd of gas.
8Gujarat by far was the biggest consumer of gas, at 2378 mmscm. Of this, PNG offtake amounted to 1875 mmscm whereas CNG sales were at 503 mmscm.
8The state also had the highest number of authorized GAs, at 16, followed by Uttar Pradesh at 11 GAs.
8While UP had a large number of GAs, its consumption was just 628 mmscm.
8Delhi and Maharashtra were the second and third largest consumers of gas in 2015-16, at 1113 and 1073 mmscm respectively.
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Consumption of gas by the refining and petrochemical segment at 41 mmscmd exceeded consumption by the fertilizer industry in India in April 2016.
8Total consumption of gas in India in April was 134 mmscmd.
8Of this, fertilizer consumption was 39.86 mmscmd
8Power consumption was pegged at 31.93 mmscmd
8CGD consumption was at 19 mmscmd
Click on Reports for more. Details
8Total consumption of gas in India in April was 134 mmscmd.
8Of this, fertilizer consumption was 39.86 mmscmd
8Power consumption was pegged at 31.93 mmscmd
8CGD consumption was at 19 mmscmd
Click on Reports for more. Details
Domestic gas production in April, at 2488.07 MMSCM, was down 6.83 % over the corresponding month of the previous year.
8Natural Gas net availability was lower by 8.19% in April, 2016 in relation to the same month last year.
8As demand for gas was up, this lead to a disproportionate 45.45% increase in the import of LNG during the month over that of the previous year.
8Total consumption for the month of April 2016 was 4068.74 MMSCM which was an increase of an impressive 13.93 % over the corresponding month of the previous year.
8Total consumption by fertilizer, power, petrochemicals, sponge iron, refinery and other sectors for the month of April 2016 was 134.16 MMSCMD.
8The main LNG importers were by Petronet LNG Ltd., GAIL (India) Ltd., Gujarat State Petroleum Corporation Ltd., Reliance Industries Ltd., Hazira LNG Pvt. Ltd. and Indian Oil Corporation Ltd.
8Around 52% of the total LNG imported in April, 2016 was from Qatar, 20% from Nigeria, 8% each from Australia and Equatorial Guinea and 4 % each from Oman, USA and Egypt.
Click on Reports for more Details
8Natural Gas net availability was lower by 8.19% in April, 2016 in relation to the same month last year.
8As demand for gas was up, this lead to a disproportionate 45.45% increase in the import of LNG during the month over that of the previous year.
8Total consumption for the month of April 2016 was 4068.74 MMSCM which was an increase of an impressive 13.93 % over the corresponding month of the previous year.
8Total consumption by fertilizer, power, petrochemicals, sponge iron, refinery and other sectors for the month of April 2016 was 134.16 MMSCMD.
8The main LNG importers were by Petronet LNG Ltd., GAIL (India) Ltd., Gujarat State Petroleum Corporation Ltd., Reliance Industries Ltd., Hazira LNG Pvt. Ltd. and Indian Oil Corporation Ltd.
8Around 52% of the total LNG imported in April, 2016 was from Qatar, 20% from Nigeria, 8% each from Australia and Equatorial Guinea and 4 % each from Oman, USA and Egypt.
Click on Reports for more Details
For those who want to know more on HPCL's expansion plans, the website carries here the following additional details:
8Detailed capacity mapping of existing units
8MS block units design capacity details
8Expansion capacity mapping of units
8Refinery revamp utilities summary
8Crude and input mapping along with output details
8Details of various existing stacks
8Duty requirements for the expansion of facilities
8Sulfur Balance
8Details on catalyst quantity and catalyst life
8Existing products along with capacities
Click on Reports for more Details
8Detailed capacity mapping of existing units
8MS block units design capacity details
8Expansion capacity mapping of units
8Refinery revamp utilities summary
8Crude and input mapping along with output details
8Details of various existing stacks
8Duty requirements for the expansion of facilities
8Sulfur Balance
8Details on catalyst quantity and catalyst life
8Existing products along with capacities
Click on Reports for more Details
New York city's gas consumption data has been cited by this website only as an example to show the immense possibility that the gas sector has of growing in India.
8There are hundreds of cities in India where rapid growth in gas consumption can take place once pipeline networks are in place.
8Every bulk supplier of gas will however say that for gas demand to accelerate, the monopoly gas supply edifice that has been built by GAIL and CGD companies, in trunk pipelines and last mile connectivity, must end.
8The PNGRB too can do much more than what is is going now.
8To most people, the 'statutory' tag grants a certain fairness of conduct as well as objectivity of purpose and autonomy of function to an organization but this cannot be said of the PNGRB.
8The regulator was set up to be an independent body at a time when the ministry was accused of being both the judge and the jury as there was an inherent conflict of interest in the government being a regulator and owner of companies in the petroleum sector.
8But the PNGRB has goofed up so many times that it has lost the trust of its main constituency, the oil and gas industry.
8The fact that it could elicit no bids whatsoever for 14 of the 34 districts -- despite the immersive possibility that CGD holds out -- illustrates the ham handedness with which the PNGRB handled the exercise.
8The regulator is transparent only on paper.
8For, many bidders have found its conditionalities too stringent and its carving of GAs too arbitrary.
8The lackluster response to the CGD bidding round is a rap on the knuckles of the PNGRB and a warning to spruce up its act before it is too late.
8That the courts have time and again upheld appeals against its rulings is a pointer to the fact that its orders are driven more by sentiment than by points of law.
8That it allowed entities such as GAIL and Assam Gas Company to get away with token monetary penalties for industrial accidents that have cost dozens of lives without invoking relevant sections under the PBGRB Act that would have called for more stringent action, is a testimony to the regulator's casual approach to serious matters.
Click on Reports for more Details
8There are hundreds of cities in India where rapid growth in gas consumption can take place once pipeline networks are in place.
8Every bulk supplier of gas will however say that for gas demand to accelerate, the monopoly gas supply edifice that has been built by GAIL and CGD companies, in trunk pipelines and last mile connectivity, must end.
8The PNGRB too can do much more than what is is going now.
8To most people, the 'statutory' tag grants a certain fairness of conduct as well as objectivity of purpose and autonomy of function to an organization but this cannot be said of the PNGRB.
8The regulator was set up to be an independent body at a time when the ministry was accused of being both the judge and the jury as there was an inherent conflict of interest in the government being a regulator and owner of companies in the petroleum sector.
8But the PNGRB has goofed up so many times that it has lost the trust of its main constituency, the oil and gas industry.
8The fact that it could elicit no bids whatsoever for 14 of the 34 districts -- despite the immersive possibility that CGD holds out -- illustrates the ham handedness with which the PNGRB handled the exercise.
8The regulator is transparent only on paper.
8For, many bidders have found its conditionalities too stringent and its carving of GAs too arbitrary.
8The lackluster response to the CGD bidding round is a rap on the knuckles of the PNGRB and a warning to spruce up its act before it is too late.
8That the courts have time and again upheld appeals against its rulings is a pointer to the fact that its orders are driven more by sentiment than by points of law.
8That it allowed entities such as GAIL and Assam Gas Company to get away with token monetary penalties for industrial accidents that have cost dozens of lives without invoking relevant sections under the PBGRB Act that would have called for more stringent action, is a testimony to the regulator's casual approach to serious matters.
Click on Reports for more Details
One of the reasons why it is necessary to end the monopoly of a CGD entity such as IGL over a city gas distribution network is that it will allow competition in the delivery of services to the door step of the individual industrial and household customer.
8Competition usually assures better services and lower prices.
8The counter argument to this is that if competitors are allowed to take advantage of the already built pipeline networks, investors will not want to build these networks in the first place. This a facile argument.
8Players want to guard their monopoly over the networks they build.
8IGL in fact can gain than lose from competition. This is because it enjoys a 25 year monopoly over the building of the pipeline network in Delhi.
8More competition will ensure a higher utilization of its monopoly network.
8Some will argue that it is easier to build the network and earn rent than go through the trouble of ensuing last mile connectivity to the consumer.
8Monopolies always distort pricing to their advantage and it is necessary for the public to support to end such monopolies.
Click on Reports for more Details
8Competition usually assures better services and lower prices.
8The counter argument to this is that if competitors are allowed to take advantage of the already built pipeline networks, investors will not want to build these networks in the first place. This a facile argument.
8Players want to guard their monopoly over the networks they build.
8IGL in fact can gain than lose from competition. This is because it enjoys a 25 year monopoly over the building of the pipeline network in Delhi.
8More competition will ensure a higher utilization of its monopoly network.
8Some will argue that it is easier to build the network and earn rent than go through the trouble of ensuing last mile connectivity to the consumer.
8Monopolies always distort pricing to their advantage and it is necessary for the public to support to end such monopolies.
Click on Reports for more Details
Consumption data shows that the Delhi CGD market -- which is monopolized by Indraprastha Gas Ltd (IGL) -- is a bigger consumer or gas than the five authorized GAs in Maharashtra, including Mahanagar Gas Ltd (MGL), with controls the Mumbai network.
8There is also a big difference in the way the gas markets are structured in the two cities.
8Delhi consumed 1113 mmscm of gas against 1073 mmscm in 2015-16 by all of Maharashtra.
8Yet Delhi's residential gas overage is 40% lower, at 65 mmscm, against Maharashtra's 109 mmscm.
8CNG sales by IGL were higher at 994 mmscm in relation to all of Maharashtra, at 790 mmscm.
8Industrial and commercial consumers made up a bigger chunk of the Maharashtra gas pie, at 174 mmscm, against Delhi's 53 mmscm.
Click on Reports for more Details
8There is also a big difference in the way the gas markets are structured in the two cities.
8Delhi consumed 1113 mmscm of gas against 1073 mmscm in 2015-16 by all of Maharashtra.
8Yet Delhi's residential gas overage is 40% lower, at 65 mmscm, against Maharashtra's 109 mmscm.
8CNG sales by IGL were higher at 994 mmscm in relation to all of Maharashtra, at 790 mmscm.
8Industrial and commercial consumers made up a bigger chunk of the Maharashtra gas pie, at 174 mmscm, against Delhi's 53 mmscm.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Invitation of Bids for Madanam CPF and Pipelines Project, Cauvery Asset [ONGC] Details
8Rate contract for supply of various grades of Lubes and Grease [ONGC] Details
8Maintenance of Heat Exchangers and Hydro Testing of Pressure Vessels, Uran [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Change of guard at IGL: E.S. Ranganathan takes over as Managing Director Details
8Record new global renewable capacity installed in 2015 Details
8Indian oil payment backlog to Iran to be cleared soon Details
8GSPC posts net loss of Rs 804 crore in FY'16 Details
8In rare compromise, Nigeria's Mohammed Barkindo emerges as frontrunner for OPEC boss Details
8S&P retains RIL rating, outlook; sees Jio rollout by FY17-end Details
8Iran seeks to amend post-sanctions oil contracts Details
8Technip signs $500 mln deal to refurbish Libya's Bahr Essalam oil platform Details
8GAIL, NTPC and Petronet LNG aim to regain ground in Sri Lanka Details
8ATF price hiked by 9.2 per cent ; non-subsidised LPG by Rs 21/cylinder Details
8April core sector output touches 8.5%, Coal, crude oil and natural gas output declines, Electricity production rises 14.7% Details
8Mass signature campaign for local heads in OIL, BCPL Details
8OPEC ministers upbeat on oil recovery Details
8How Modi government's bait disallowing higher gas prices is working Details
You can also click on Newsclips for more Details
8Invitation of Bids for Madanam CPF and Pipelines Project, Cauvery Asset [ONGC] Details
8Rate contract for supply of various grades of Lubes and Grease [ONGC] Details
8Maintenance of Heat Exchangers and Hydro Testing of Pressure Vessels, Uran [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Change of guard at IGL: E.S. Ranganathan takes over as Managing Director Details
8Record new global renewable capacity installed in 2015 Details
8Indian oil payment backlog to Iran to be cleared soon Details
8GSPC posts net loss of Rs 804 crore in FY'16 Details
8In rare compromise, Nigeria's Mohammed Barkindo emerges as frontrunner for OPEC boss Details
8S&P retains RIL rating, outlook; sees Jio rollout by FY17-end Details
8Iran seeks to amend post-sanctions oil contracts Details
8Technip signs $500 mln deal to refurbish Libya's Bahr Essalam oil platform Details
8GAIL, NTPC and Petronet LNG aim to regain ground in Sri Lanka Details
8ATF price hiked by 9.2 per cent ; non-subsidised LPG by Rs 21/cylinder Details
8April core sector output touches 8.5%, Coal, crude oil and natural gas output declines, Electricity production rises 14.7% Details
8Mass signature campaign for local heads in OIL, BCPL Details
8OPEC ministers upbeat on oil recovery Details
8How Modi government's bait disallowing higher gas prices is working Details
You can also click on Newsclips for more Details
In what is a huge boost to Larsen & Toubro (L&T), global engineering conglomerate Parsons has announced a global tie-up with L&T's subsidiary, L&T Hydrocarbon Engineering Ltd, to provide engineering and design solutions across the hydrocarbon, fertilizer, chemical and modular plant sectors aimed at the US market..
8At the core of the collaboration is L&T's high-value engineering centre based in Mumbai that can turn out world class designs.
8The centre will do most of the design and engineering work that the duo will garner from projects across the world.
8The two make a formidable combination that will use Indian engineering and design strengths with Parsons' global contacts, project and risk management skills, and its oil and gas experience in the Americas.
8The duo is keen to compete in the US market in projects that involve conceptual engineering, feasibility studies, front-end engineering design, detailed engineering, specialty and high-end engineering, cost estimating, and engineering, procurement, and construction management services
Click on Reports for more. Details
8At the core of the collaboration is L&T's high-value engineering centre based in Mumbai that can turn out world class designs.
8The centre will do most of the design and engineering work that the duo will garner from projects across the world.
8The two make a formidable combination that will use Indian engineering and design strengths with Parsons' global contacts, project and risk management skills, and its oil and gas experience in the Americas.
8The duo is keen to compete in the US market in projects that involve conceptual engineering, feasibility studies, front-end engineering design, detailed engineering, specialty and high-end engineering, cost estimating, and engineering, procurement, and construction management services
Click on Reports for more. Details
OVL must work like an ordinary E&P company with distressed assets, looking to find safe harbour in stormy weather while keeping an eye on acquisitions that can provide safe returns.
8When the projections are that a large chunk of proven reserves in the world will have to stay stranded if the world were to keep global warming to less then two degrees, looking for exploration assets is ruled out.
8Any acquisition will have to be of existing producing assets with a quick burn up of reserves.
8Even in this area, OVL must look at acquiring tightly run small and medium sized E&P companies in distress instead of just buying into an oil field.
8Company valuations are cheaper today than the sum of their assets.
8It is also time for everyone to release OVL from the pressure of fulfilling mighty ambitions.
8That will allow the management to run it like a ordinary company that should try and make some money after a string of lousy decisions.
Click on Reports for more Details
8When the projections are that a large chunk of proven reserves in the world will have to stay stranded if the world were to keep global warming to less then two degrees, looking for exploration assets is ruled out.
8Any acquisition will have to be of existing producing assets with a quick burn up of reserves.
8Even in this area, OVL must look at acquiring tightly run small and medium sized E&P companies in distress instead of just buying into an oil field.
8Company valuations are cheaper today than the sum of their assets.
8It is also time for everyone to release OVL from the pressure of fulfilling mighty ambitions.
8That will allow the management to run it like a ordinary company that should try and make some money after a string of lousy decisions.
Click on Reports for more Details
The PNGRB has handed out the following City Gas Distribution (CGD) licences in the latest round:
8BPCL for the Saharanpur geographical area
8Gujarat Gas Ltd for the Amreli district
8Sabarmati gas for the Patan district
8Gujarat State Petronet Ltd for the Bhatinda district
The following major conditionalities will apply to the operators:
8Construction work must begin within 180 days
8Specific year-wise targets for laying of pipelines will have to be fulfilled
8While CGD entities will have exclusivity for laying of infrastructure for a total of 300 months, they will only have a 60 month head start to acquire customers before common carrier and contract carrier provisions kick in.
Click on Reports for more. Details
8BPCL for the Saharanpur geographical area
8Gujarat Gas Ltd for the Amreli district
8Sabarmati gas for the Patan district
8Gujarat State Petronet Ltd for the Bhatinda district
The following major conditionalities will apply to the operators:
8Construction work must begin within 180 days
8Specific year-wise targets for laying of pipelines will have to be fulfilled
8While CGD entities will have exclusivity for laying of infrastructure for a total of 300 months, they will only have a 60 month head start to acquire customers before common carrier and contract carrier provisions kick in.
Click on Reports for more. Details
Mercator Ltd has finally has finally emerged from the shadows after it was able to sell its ailing Singapore based dry bulk shipping subsidiary, Mercator Lines (Singapore) Ltd to investors for a token sum of three Singapore dollars.
8In the process Mercator was able to offload a debt overhang of Rs 1000 crore run up by its Singapore subsidiary.
8Cutting down on its ambitions and sticking to its modest but profitable Indian operations spanning onland E&P blocks in Gujarat and its dredging and shipping operations make for more business sense.
8A further round of consolidation that should include selling its coal mining operations while sticking to the coal logistics and handing will help.
8In a tough global market, the company has been able to keep its Floating Production Unit productively utilized in Nigeria.
8The management, headed by H.K. Mittal, plans to concentrate on getting production going in the two Cambay Basin blocks within the next year.
8While the price of hydrocarbons has come down, the cost of onland E&P extraction too is low in India, allowing for positive spreads.
Click on Reports for more Details
8In the process Mercator was able to offload a debt overhang of Rs 1000 crore run up by its Singapore subsidiary.
8Cutting down on its ambitions and sticking to its modest but profitable Indian operations spanning onland E&P blocks in Gujarat and its dredging and shipping operations make for more business sense.
8A further round of consolidation that should include selling its coal mining operations while sticking to the coal logistics and handing will help.
8In a tough global market, the company has been able to keep its Floating Production Unit productively utilized in Nigeria.
8The management, headed by H.K. Mittal, plans to concentrate on getting production going in the two Cambay Basin blocks within the next year.
8While the price of hydrocarbons has come down, the cost of onland E&P extraction too is low in India, allowing for positive spreads.
Click on Reports for more Details
What should OVL's next plan of action be?
8That is a billion dollar question.
8Clearly the company can't give up on looking for acquisitions.
8Information is that OVL's Chinese counterparts are preparing a massive round of acquisitions but that is a path that an emasculated OVL cannot follow any longer.
8The company must think smart and look at margins instead of reserves.
8The bitter truth is that OVL can no longer aspire to fulfill India's energy security aspirations.
8It does not have the muscle power to mitigate India's voracious appetite for energy.
8The sooner policy makers understand it the better it will be for the company.
8In any case planners must recalibrate India's energy security paradigm when the world is awash with proven reserves which can last for 200 years whereas they have to be burnt up in far less a time given the imperatives of global warming.
8The buyer of oil and gas today is at a far more advantageous position than a seller and this is how the equation is going to remain in the foreseeable future.
Click on Reports for more Details
8That is a billion dollar question.
8Clearly the company can't give up on looking for acquisitions.
8Information is that OVL's Chinese counterparts are preparing a massive round of acquisitions but that is a path that an emasculated OVL cannot follow any longer.
8The company must think smart and look at margins instead of reserves.
8The bitter truth is that OVL can no longer aspire to fulfill India's energy security aspirations.
8It does not have the muscle power to mitigate India's voracious appetite for energy.
8The sooner policy makers understand it the better it will be for the company.
8In any case planners must recalibrate India's energy security paradigm when the world is awash with proven reserves which can last for 200 years whereas they have to be burnt up in far less a time given the imperatives of global warming.
8The buyer of oil and gas today is at a far more advantageous position than a seller and this is how the equation is going to remain in the foreseeable future.
Click on Reports for more Details
For many years, ONGC Videsh Ltd's aggressive acquisition of E&P assets across the world was seen as an answer to India's energy security anxiety.
8OVL was meant to provide control over E&P reserves that India could call its own.
8When oil and gas assets were frothily over valued, OVL competed with aggressive Chinese and other national oil companies to acquire a string of high cost properties.
8The chickens have now come home to roost.
8The crash in global asset prices has taken the air out of the OVL balloon.
8The company reported a net loss of Rs 2094 crore in FY16 against a loss of Rs 1904 crore in FY15.
8Impairment costs stood at Rs 3407 crore out of its assets in Mozambique, Imperial Energy and Azerbaijan.
8With oil and gas prices unlikely to show a major upswing OVL's ability to generate profits will continue to be in doubt.
8The company will not be able to make enough money from its viable assets to pay for its non-viable investments
8Expect more bad news on its performance going ahead as its high cost Mozambique holding is unlikely to see traction before 2025.
8Pumping hydrocarbons out of the perma frost overlaying the Imperial Energy fields in Russia is no longer viable.
8Some of the global blocks are in politically fraught regions that will never see production.
8Most blocks where exploration is still going on provide for low returns and are unlikely to go on stream. Their reserves will stay stranded for ever.
Click on Reports for more Details
8OVL was meant to provide control over E&P reserves that India could call its own.
8When oil and gas assets were frothily over valued, OVL competed with aggressive Chinese and other national oil companies to acquire a string of high cost properties.
8The chickens have now come home to roost.
8The crash in global asset prices has taken the air out of the OVL balloon.
8The company reported a net loss of Rs 2094 crore in FY16 against a loss of Rs 1904 crore in FY15.
8Impairment costs stood at Rs 3407 crore out of its assets in Mozambique, Imperial Energy and Azerbaijan.
8With oil and gas prices unlikely to show a major upswing OVL's ability to generate profits will continue to be in doubt.
8The company will not be able to make enough money from its viable assets to pay for its non-viable investments
8Expect more bad news on its performance going ahead as its high cost Mozambique holding is unlikely to see traction before 2025.
8Pumping hydrocarbons out of the perma frost overlaying the Imperial Energy fields in Russia is no longer viable.
8Some of the global blocks are in politically fraught regions that will never see production.
8Most blocks where exploration is still going on provide for low returns and are unlikely to go on stream. Their reserves will stay stranded for ever.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Supply & testing of Chemical Injection Skid with flow control and flow measurement mechanism, Assam [OIL] Details
8Procurement of Casing Pipes [ONGC] Details
8Hiring of services for periodic maintenance of cranes installed at various platforms of MH, N&H and B&S Assets, Mumbai [ONGC] Details
8Procurement of Mud Gate Valves, Karaikal [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Divided OPEC to breathe easier with return of $50 oil Details
8Thailand's PTT to raise LNG terminal capacity, plans new one Details
8Indonesia's Pertamina to buy 600,000 tonnes of LPG from Iran Details
8IL&FS Engineering Q4 net profit at Rs 33 crore Details
8Gulf economic slowdown sees foreign workers trapped by debts Details
8South Korea's GS Energy launches LNG supply tender for new terminal Details
8Reliance Industries arm sells stake in African trading and marketing company to 'Total' Details
8ONGC Videsh signs pact with SOCAR Trading Details
8GAIL drilling second exploratory well in Gujarat block Details
8Consumers don’t gain but crude oil slump boosts state-run fuel retailers, govt Details
8Petrol Price Hiked by Rs 2.58/Litre, Diesel By Rs 2.26/Litre Details
8Reliance Industries temporarily shuts PET, PTA units at Dahej on account of water shortage Details
8ONGC Videsh completes $1.3 billion acquisition of Russia's second biggest oil field Vankor Details
8Reliance Industries to drop arbitration over surrender of KG-D6 block area Details
8Eight core industries growth at 8.5% in April Details
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8Supply & testing of Chemical Injection Skid with flow control and flow measurement mechanism, Assam [OIL] Details
8Procurement of Casing Pipes [ONGC] Details
8Hiring of services for periodic maintenance of cranes installed at various platforms of MH, N&H and B&S Assets, Mumbai [ONGC] Details
8Procurement of Mud Gate Valves, Karaikal [ONGC] Details
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For reference purposes the website carries here the following Newsclips:
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8Reliance Industries arm sells stake in African trading and marketing company to 'Total' Details
8ONGC Videsh signs pact with SOCAR Trading Details
8GAIL drilling second exploratory well in Gujarat block Details
8Consumers don’t gain but crude oil slump boosts state-run fuel retailers, govt Details
8Petrol Price Hiked by Rs 2.58/Litre, Diesel By Rs 2.26/Litre Details
8Reliance Industries temporarily shuts PET, PTA units at Dahej on account of water shortage Details
8ONGC Videsh completes $1.3 billion acquisition of Russia's second biggest oil field Vankor Details
8Reliance Industries to drop arbitration over surrender of KG-D6 block area Details
8Eight core industries growth at 8.5% in April Details
You can also click on Newsclips for more Details
