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Jun 2016

ONGC is now likely to float a separate tender for a trio of deep-water drilling rigs to work on the long-planned development of its flagship deep-water KG-DWN-98/2 block off India’s East Coast.
8ONGC plans to spend Rs 34,000 crore in the block to drill a total of 34 wells in the block.
8It wants to charter two 1500-metre dynamically-positioned drillships or semisubs and one additional anchor-moored drilling rig capable of drilling in 600 metres of water
8Given that competition is going to be high and Aban has already set the benchmark, it remains to seen how low day rates are going to plunge in this tender
Click on Details for more Details
Regardless of whichever government is in power, there will always be interest groups which will be lobbying for concessions.
8But with a majoritarian government in power which seems determined to push through with what it thinks is right on the industry, the art of lobbying has undergone a sea change.
8The written memorandum or petition has assumed greater significance.
Click on Details and also on Reports for more Details
For reference purposes the website carries here the following tenders:
8Supply and Demonstration of Nobel Gas Mass Spectrometer [ONGC] Details
8Procurement of various type of Pressure Gauges for Surface Team, Ankleshwar Asset [ONGC] Details
8Maintenance of Mainline Facilities of Paradip-Jatni Cross Country Pipeline section [IOC] Details
8Inspection & certification of Pressure Vessels, Paradip Refinery [IOC] Details
8Supply of INDMAX FCC Catalyst, Paradip Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Aban leads race for ONGC rig tender Details
8India becomes second largest buyer of Iranian crude Details 
8India's Fertiliser and Chemicals Travancore Ltd to up output as LNG cost falls Details 
8RIL knew about KG-D6 and ONGC block connectivity in 2003, suggests regulatory filings by Niko Resources Details
8Assam's economy to get a boost through investment in its small oil fields Details
8Gogoi opposes auctioning of marginal oil and gas fields of Assam Details
8Work started on revitalising hydrocarbon sector in Northeast: Dharmendra Pradhan Details
8Centre to back Assam over oil royalty, says Pradhan Details
8Oil prices plunge 5 per cent as Britain votes to leave EU Details
8Centre may revive Myanmar-Bangladesh-India gas pipeline Details
8Government plans to set up petrochem hubs around 22 oil refineries Details
8Now two wheelers on CNG, Pilot programme launched in Delhi Details
8Government trying to bring in startups for open bidding of small oil and gas fields Details
8Assam refineries’ capacity raised to 16 MTPA, state all set to become petroleum hub for SE Asia Details
8Brexit seen credit positive for Indian crude refining, marketing industry Details
8Indian oil cos interested in buying part of the 19.5% stake in Rosneft Details
8Oil prices dive as Britain votes to leave EU Details
You can also click on Newsclips for more Details
This is perhaps a good time as any for Indian shipping companies to take that leap of faith and enter the Floating Storage and Regasification (FSRU) market.
 The reasons why the FSRU market holds great promise are:
 -- Cheap LNG is driving demand up.
 -- Many new markets have opened up for LNG and these prefer FRSUs over land based solutions
 -- The returns are higher compared to conventional LNG carriers
 -- Long term contracts are available
8An analysis shows that there will be as many as 60 additional LNG importing countries by the year 2025.
8While Indian shipyards, except for Cochin Shipyard, had spurned an opportunity to build LNG carriers as they found the investment too risky, building barge mounted regasification unit may be a good option to look at given lower upfront investments needed.
8What is more, there is adequate local demand for such vessels.
Click on Reports for more Details
Another set of data provides the following information:
8World proven natural gas reserves by country
8World marketed production of natural gas by country
8World natural gas exports by country
8World natural gas imports by country
8World natural gas demand by country
8World LNG carrier fleet by size and type
Click on Reports for more Details
The website also carries here the latest data on:
8World tanker fleet by year of build and categories
8World LPG carrier fleet by size and type
8World combined carrier fleet by size
8Average spot freight rates by vessel category
8Dirty tanker spot freight rates
8Clean tanker spot freight rates
Click on Reports for more Details
For reference purposes, the website carries here the following LNG related data:
8Time period by when LNG is expected to overtake pipeline gas supply in terms of volume
8Projected price differentials between Henry Hub prices and oil index gas prices
8Unit wise LNG demand and supply outlook for 2020
8Analysis of one new liquefaction terminal coming up every two months
8Region-wise LNG demand projections till 2020
8Pictorial depiction of global the LNG market in terms of liquefaction and gasification units
8Unit wise global gasification capacity projections till 2020
8New LNG vessel order book position
8Quarter wise cumulative LNG shipping balance till 2020
8Spot vessel availability data
8Details on spot cargo vessel pool
8Country-wise demand for FRSUs till 2020
8Gasification capacity and country-wise demand for FSRUs
8Category-wise costing data for FSRUs
Click on Reports for more Details
There is also a market for newly built FSRUs.
8Like conventional LNG carriers, these would take about 28-32 months to built
8The capacity range is between 170,000 to 266,000 cubic metres
8These category of FSRUs are needed in harsh weather conditions where the regasification requirement is between 3.5 to 5 MMTPA.
8They are purpose built, carry low technical risk and are compatible with newer tonnage.
8The price tag is high at $250-$300 million.
Click on Reports for more Details
Many FSRUs will be built through the conversion route.
8The delivery time for these FSRUs is between 20-22 months.
8The capacity range is between 145,000 to 170,000 cubic metres
8These are good for gasification terminals with capacities of between 2-3.5 MMTPA
8The time to market is low and there is lower upfront capex.
8Pre-engineering studies by Keppel of Singapore have found conversions to be a viable option, both for steam and TFDE vessels.
8Contracts are being negotiated for long term lead items for such conversion jobs.
8There is demand for these category of FSRUs in India
8The cost of conversion is $70-$80 million plus of course the vessel itself.
Click on Reports for more Details
Local shipping companies can secure their investment by getting into back-to-back arrangements for custom-made FSRUs with Indian RLNG importers.
8The delivery periods are faster for FSRUs than conventional LNG carriers.
8Barge mounted units with floating storage units take just 18 months to deliver.
8These barges have wide capacity range, from 20,000 to 170,000 cubic metres
8They are ideally suited for regasification capacities of between 0.5 to 1 MMTPA
8The good part is they can be built in most shipyards.
8Indian shipyards will find this market more viable instead of the conventional LNG carriers market.
8The cost of these FSRUs are cheaper too, in the range of $60-$80 million, plus the cost of the FSU.
Click on Reports for more Details
The new set of projections claim that LNG carrier rates are going to firm up going ahead.
8The number of vessels available in the spot market has fallen by 59% since September 2015
8Then again, new LNG volumes coming online in Australia and the US have increased shipping demand
8What is more, project re-lets have been taken out of the market with the restart of Gorgon and Angola liquefaction terminals
8Currently only one spare LNG vessel is available in the Atlantic basin
8In previous LNG spot rate cycles, trough to peak rates have risen between 330% to 580%..
8LNG carriers have adopted a defensive in a weak market and offensive in a strong market strategy to survive vagaries of the market.
Click on Reports for more Details
A business development opportunity has come up for a Rs 40 crore three-well drilling programme.
8It is an exploratory drilling exercise
8There is requirement for a single rig
8A total of 500 days of drilling will be done
8RFQs have not been floated yet
Click on Reports for more Details
Subsequent to the MB Lall Committee recommendations for installation of safety and fire fight equipment in tank farms, a new kind of O&M work has come up.
8Typical maintenance work for such equipment covers:
8Complete Tank farm management systems, with temperature & water cut probes
8ROSOV & MOV for automatic isolation of tank inlet & outlet.
8Online gas detectors
8Emergency shutdown systems
8CCTV systems
8PLC based Rim seal fire protection systems
8High velocity long range monitors -- Remote & Manual types with control panels, MOV etc.
8Fire water pumps & associated sub-systems, related control system,s electrical systems and equipment & valves installed in the hydrant line
8Fire water tanks, sprinkler systems and attendant instrumentation
8Foam systems – pumps, tanks, valves and related E&I
8Electrical Switch rooms with ELDB & MLDB panels
8Field instruments like PT, TT etc.
8Compressed Instrument Air System, with compressor, dryer, related E&I, valves etc.
8High Mast Lighting system and outdoor lighting near ROSOV/MOV panels
8OWS systems.
The website's project software is in the process of collating data which will provide maintenance contract details for such jobs across tank farms in the country.
 The data will provide details of such contracts and expiry dates along with key contacts for those looking for business development opportunities
Click on Reports for more Details
The new set of analyses shows zero available of spare LNG shipping capacity by the end of Q4, 2018.
8The argument underpinning the projections is that the current oversupply of vessels is largely due to delays in the Angolan and Gorgon LNG projects.
8The market will tighten as more projects ramp up and project-linked ships are absorbed
8Some LNG lifters from newly set up liquefaction terminals such as Sabine Pass, Corpus Christi, Freeport, Cove Point and Cameron have shipping requirements that are yet to be contracted.
8About 75 ships will be needed by these LNG offtakers
8Then again, any new order today will most likely be delivered from 2019 onwards.
Click on Reports for more Details
The glass is always half full or half empty, depending upon the perspective of the viewer.
8A fresh set of analysis seems have stepped up LNG demand projections. Robust demand from new countries is pushing a revision of the estimates.
8These analyses also claim that the current oversupply in LNG vessels will convert into a deficit within the next two years, contrary to predictions so far.
8Data shows that only six new orders for vessels were placed in the last 9 months and all of them were by established LNG shipping players.
8No new players are expected in the market as of now.
8As new LNG carrier orders have historically taken three years from order to delivery, vessels ordered now are likely be delivered only in in 2019/20
8By 2020, forecasts, a new set of forecasts claims that there will be a shortfall of  around 40 vessels.
Click on Reports for more Details
GAIL seems to be caught in the horns of a dilemma over whether or not to place orders for 9 LNG carriers needed to ferry 5.8 million tonnes of LNG that it is committed to offtake from the US.
8It's a Hobson's choice for the gas major: You are damned if you do and damned if you don't.
8The choice can be different depending upon which set of conflicting LNG demand and freight rate estimates GAIL chooses to take.
8The risks are high on either side but there is a need for immediate action.
8If freight rates are really going to harden as this website's current set of estimates seems to point towards, then placing a quick order makes sense.
8But given that the government has made the decision making process very complicated, by insisting that a third of these ships be made in India, it may not be easy for GAIL to place an immediate order.
8Cochin Shipyard, armed with a foreign collaboration, is seeking to barge into the tender and this seems to be complicating matters a bit.
8Any which way, GAIL has to make a choice. For if it does not, and if shipping rates firm up and the spare vessels dry up by the time US cargoes come on stream, GAIL will be left with another serious problem in hand Details
For reference purposes the website carries here the following tenders:
8Procurement of Pressure and Differential Pressure Transmitters, Hazira Plant [ONGC] Details
8Hiring of services for Operation & Maintenance of Combined Cycle Power Plant, Ankleshwar Asset [ONGC]   Details
8Charter Hiring of Work Over Rigs, Ahmedabad Asset [ONGC] Details
8Insulation work for MLPU’s exhaust piping and process piping [IOC] Details
8Procurement of Industrial Gases for C2C3 Plant, Dahej [ONGC] Details
8Fabrication, Modification and Erection of pipeline for Transfer of Effluents for processing, Paradip [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Pilot Programme to run two wheelers on CNG launched by Shri Dharmendra Pradhan & Shri Prakash Javadekar [PIB] Details
8Oil's supply-demand balance improving: Saudi energy minister Details 
8U.S. LNG heralds lower Russian gas prices, coal switching in Europe: BP Details 
8Oil ends lower after small US drawdown; choppy ahead of Brexit vote Details
8ONGC Tech Director Shashi Shanker gets CVC clean chit Details
8Equis to invest $1 billion to double India renewables portfolio Details
8U.S. court strikes down Obama fracking rules for public lands Details
8IOC to increase its capex to Rs 20,000 cr a year over next 5-7 years Details
8Govt plans to invest in Yamal project of Gazprom: Oil Minister Details
8Led by OVL, Indian oil companies mull buying stake in Rosneft Details
8Top India LNG Buyer said to Plan Terminal Expansion by September Details
8Bihar: Minister to launch 'LPG for poor' scheme on June 27 Details
8Oil products to still dominate traffic on expanded Panama Canal: EIA Details
8Centre again offers LNG supply for Delhi's power plant Details
You can also click on Newsclips for more Details
Indian Oil Corporation too is embarking on an integrity check of its extensive network of product pipelines.
8Studies are on to improve the existing cathodic protection system.
8It is looking at a comprehensive revamp that will include altering ground bed design, relocating anode beds if needed and changing ground bed materials underpinning its vast network.
8It also wants to relook the size and type of rectifier units used.
8The refiner plans to revamp the entire cathodic protection design system for pipeline in order to improve the efficiency of the system.
8But IOC's job is less onerous than that of GAIL.
8Gas pipelines respond in fundamentally different ways to integrity breaches than liquid pipelines, because gas is not only highly compressible, but also a diffuse substance.
8These two factors make it entirely possible that, short of a major disaster, a gas leak could go undetected indefinitely like how it happened when the KG Basin tragedy occurred. A subsequent investigation found the entire integrity system was in a shocking state of disrepair.
8In the case of a liquid pipeline, even if no leak detection methods are utilised by the operator, someone will eventually realize there is an integrity issue. At some point there will be a realization that less product is getting delivered than was shipped. Even if that isn’t picked up, a leak will eventually be seen by a passer-by as is sometimes the case with IOC.
8But that's not true for a gas pipeline.
8Gas is compacted in a pipeline for transportation, so when the receiver draws product from the pipe they receive it instantaneously, with no easy volume-in/volume-out calculation to make.
8Additionally, because gas is diffused, gas packed into one point of the pipeline may in all likelihood not be affected by an integrity breach at another point.
8Finally, except for specific conditions, leaking gas dissipates into the atmosphere and, unless identified by special optical monitors, it is difficult to catch a leak visibly unless it ignites and burns.
8In this context, it is imperative for GAIL to ensure that its leak detection systems use state of art technology instead of conducting a piece-meal plugging in of conflicting monitoring systems, as is the case now.
Click on Reports for more Details
Indian companies have been slow in adapting Big Data analysis to optimize operations.
8Talk of using Big Data has been mostly centered on the E&P side of the business as the uncertainties in this segment are higher and building algorithms around this data provide for better results.
8But Big Data can also be put to great use in the refining sector.
8Data analysis, for example, can show in better perspective and in vivid detail the consequence of a switchover of parallel heat exchangers for maintenance and the subsequent improved heat transfer from a clean heat exchanger.
8Data analysis can be applied to monitor fouling rate and decreasing process unit efficiency.
8Big Data can be used to maximise flow-rates of selected fractions. It can optimize the levels of certain crudes in a blend while minimising heat exchanger fouling. Vibration monitoring can be done effectively too. All of this leads to reduction in maintenance costs. 
8Using advanced analytics to expose the underlying structure of complex datasets enables them to be broken down and the valuable information within them extracted.
8Additionally, uncovering underlying trends and correlations allows operators to gain maximum value from their datasets.
8It is critical therefore to analyse datasets as a whole, rather than focusing only on simple first-order relationships.
8Examining the more detailed effects, such as those caused by combinations of many different variables and of process units on plant operation, is key to unlocking the potential uses of large datasets.
8The effective use of the data analysis tools can help operators such as IOC, HPCL and BPCL mitigate future problems such as shutdown, deferment and other issues that could negatively impact productivity
Click on Reports for more. Details
Business development is a game of patience. In the Middle East in particular, building relationships is of paramount importance.
8Most local companies are hamstrung by the approach that they adopt in India, which is to respond vigorously to a tender while ignoring to build relationships.
8In the Middle East, the rules of the game are different. The footwork will have to be done for a much longer time than in India.
8A hit-and-run or a I-can-fix-it or a tender-to-tender approach that Indian companies adopt in India will just not work.
8For reference purposes, the website carries here a series of  oil and gas industry events coming up in the current year in the Middle East.
8These are big events by Indian standards and the international oil and gas community makes it a point to attend them in large numbers.
8CEOs or decision makers from Indian equipment and service providers must begin attending them too.
8It is a tough world outside but the rewards of building bridges with people who matter can pay off eventually.
Click on Reports for more Details
Both Iran and Iraq can provide big business development opportunities for Indian companies too.
8Compared to the stagnant Indian market, these countries can provide big breaks.
8Political infighting, social unrest, the presence of ISIS in the north and west of the country have dogged Iraq but yet its production is holding up remarkably well given the challenging environment.
8For an Indian companies, working with an enterprising Iraqi partner can play rich dividends.
8Iraq provides a vast opportunity as it is desperately seeking expertise in building refineries and associated facilities.
8The point to note is that a clutch of international companies is working seamlessly in Iraq to keep oil production going.
8Iran too is a big market with a challenging local environment.
8Local content is a big issue in Iran and Indian companies should identify local partners and forge relationships.
Click on Reports to know more. Details
The recent gas discovery in the East Nile Delta in Egypt by the BP-ENI combine  has confirmed that the area can hold a massive 70-80 billion cubic metres of gas in place. The discovery is the latest in a number of major finds in the country, the most significant being the Zohr 'supergiant’ oilfield discovered by Eni, the largest known gas field in Egypt and the Mediterranean, which is predicted to hold 849.5 billion cubic metres of gas
8This is a country for ambitious Indian equipment and service suppliers to keep an eye on.
8The website carries here a full listing of oil & gas as well as petrochemical projects in Egypt.
The data is given in terms of:
8Name of the project
8Area
8Facility
8Investment
8Status
Click on Reports for more Details
For an Indian company with a global perspective, the scouting for business opportunities must have to start with the Middle East.
8The business development expenses may be high initially and the waiting period can be long but rich dividends can be reaped from such an exercise.
8For example, for those in the pipeline business, the opportunities can be huge.
8A massive $28 billion is due to be spent on pipelines in the Middle East in 2016, with a further US26.billion in 2017.
8There is a total of 43 planned pipelines in the Middle East
8There is ample scope for maintenance work too. There are 353 active pipelines in the Middle East, with a total length of 24,523.2 km.
8Saudi Arabia has the longest active crude oil pipelines network, while Iran has the longest active natural gas pipelines network.
8Indian companies which have cut their teeth in the Indian market must look to the Middle East in order to give more bandwidth to their businesses.
Click on Reports for more on business opportunities available in the Middle East Details
For reference purposes, the website carries here a business development opportunity for a small sized LPG storage facility in bottling plant.
The following facilities are coming up:
83 x 500 MT capacity Mounded storage facilities
8LPG pump and compressor shed
87 bay Tank Truck Unloading gantry
8Miscellaneous associated infrastructure
Click on Reports for more Details
Despite the hard blow from the KG Basin tragedy, analysts claim that GAIL has been slow in adopting new technology to ensure the integrity of its pipeline network.
8The gas major is still to fully come to grips with new hydraulic models which use software to create a virtual picture of what is happening inside the pipelines to stop accidents.
8GAIL is yet to move over fully to high-tech but low cost virtual reality models from systems that only report information, such as the schematics of pressure readings at specific mile markers using SCADA tools.
8Slow adoption can cost the company dearly.
8Gas pipelines are affected by normal wear and tear, deposits building up inside the pipeline, equipment degrading and possibly even changing operating conditions.
8Ensuring pipeline integrity is a continuous process and real time models need constant updating
8And while GAIL is making an effort to put things right, it is not moving fast enough on the job.
8If the gas major fails to keep the physical pipeline maintained as close to its original condition as possible, and if its monitoring models do not reflect the dynamics on the ground, it will have to pay a heavy price for any loss in life this time around.
Click on Reports  to find out more on what GAIL needs to do. Details
After dozens of people lost their lives in the KG Basin pipeline blast, GAIL has embarked on a comprehensive surveillance and maintenance programme for its 870 km pipeline network in the region. But the study comes a little too late in the day and should have been done earlier.
8In piggable sections, the emphasis is on inline inspection.
8At this point in time, the focus of the gas major seems to be on the smaller non-piggable segments in the network
8The emphasis is on Closed Interval Potential Surveys, Current Attenuation Tests, DCVG / CAT  surveys, with surveys on elevation, terrain, soil reactivity thrown in.
8Back filling work and coating defect rectification are also to be carried out simultaneously.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Hiring of support services for Operation & Maintenance jobs at PS4, Sekoni [OIL] Details
8EOI for Empanelment of Consultants for Internal Corrosion Management in Cross Country Hydrocarbon Pipelines [IOC]  Details
8Digitization of static equipments and piping data, Barauni Refinery [IOC] Details
8Miscellaneous Hot Insulation Jobs of off-site pipelines, Haldia Refinery [IOC] Details
8Modification job in Discharge line of Expander Compressor, Vijaipur [GAIL] Details
8Procurement of HDPE Lining, Assam [OIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Indian crude oil basket gains $2 per barrel on calming of Brexit fears Details
8Oil settles down, bounces off session lows with gasoline Details 
8Private equity warms up to oil deals with $1 trillion warchest: EY Details 
8Scientists moot 'green fracking' technique Details 
8BHP Billiton steps up coal output, slices costs, eyes acquisitions Details
8Norwegian oil drilling rig workers agree wage deal, avoid strike Details
8Tokyo Gas buys Eagle Ford shale stake, despite loss from prior U.S. purchase  Details
8IPO mart ignores Brexit anxiety, Mahanagar Gas sees brisk buying  Details
8India to be among world's top 3 economies by 2050: BHP Billiton Details
8OIL-led consortium inks deal for 24% stake in Vankor oil field  Details
8Mahanagar Gas IPO subscribed 3.92 times on Day 2 Details
8Numaligarh Refinery Limited has introduced digitally signed invoices for its product sales transactions Details
8India a key growth market with focus on renewables: Rajiv Mishra, MD, CLP India Details
You can also click on Newsclips for more Details
Refinery production (in terms of crude oil processed) during May, 2016 was 19.95 MMT which is 3.32 percent lower than the target for the month.
8Cumulative production during April-May, 2016 was 40.10 MMT which is 0.77 percent higher than the target for the period and 9 percent higher than the production during corresponding period of last year.
8PSU refineries’ production during May, 2016 was 11.57 MMT which is 1.76 percent lower than the target for the month and 9.15 percent higher than the production achieved in the corresponding month of last year.
8Cumulative production during April-May, 2016 was 22.70 MMT which is 0.9 percent lower than the target for the period and 13.37 percent higher than the production during corresponding period of last year.
Reasons for shortfall of refinery production of PSU refineries are as under:
-- IOCL's Paradip refinery recorded lower throughput as secondary units are still under commissioning and stabilization process. In addition to this, there was lower production in Guwahati & Digboi due to lower crude availability from OIL and ONGC's Assam fields.
-- Production in JV refineries during May, 2016 was 1.56 MMT which is 18.22 percent higher than the target for the month and 4.37 percent higher than May 2015.
8Production in private refineries during May, 2016 was 6.81 MMT which is 9.53 percent lower than the target for the month and 10.39 percent lower than May last year.
Click on Reports for more Details
Natural gas production by Pvt. /JVs during May 2016 was 626.21 MMSCM which is 6.04 percent lower than the monthly target and 14.45 percent less when compared with May, 2015.
8Cumulative natural gas production during April-May, 2016 was 1232.98 MMSCM which is 7.28 percent less than the cumulative target and 13.50 percent below production during the corresponding period of last year.
Reasons for shortfall in production are as under:
-- Underperformance of wells of KG-OSN-2001/3.
-- Dewatering issues in CBM blocks.
-- Gas off-take issues in RJ-ON/6.
-- M&S Tapti: Production stopped in March 2016.
-- Closure of one well in KG D6.
-- Natural Decline in Ravva, PY-1 and Hazira.
Click on Reports for more Details
Private and joint venture gas production has plunged in May.
8Is the lackluster response also a consequence of low gas prices resulting from the implementation of the Modified Rangarajan formula?
8Private output is dependent on price signals and if the wrong signals are going, sidetrack drilling may have been deliberately postponed or allowed to lapse.
8The fact that one gas well in RIL's D-6 block has shut down could be on account of wrong price signals as much as it could be on account of a high ingress of water and sand.
8A combination of low price and technological-cum-geological problems is a potent dampner for a promoter to carry on producing from a well.
Click on Reports for more Details
Natural gas production by OIL during May, 2016 was 239.11 MMSCM which is 3.23 percent lower than the monthly target but 7.81 percent higher than May 2015.
8Cumulative natural gas production during April-May, 2016 was 489.47 MMSCM which is 1.12 percent higher than the cumulative target and 17.49 percent higher than the production during the corresponding period of last year.
8Reasons for shortfall in production are different from that of its oil fields. Output was down because offtake was low and in the North East, OIL does not have the luxury of pumping its output into a grid.
8This provides more logic to build a national grid of pipelines that also connect to the gas supply network in the North East of India.
8The following reasons have been given for the shortfall in supply:
-- BVFCL: Namrup Unit - III shut down for 11 days due to maintenance related issues of the Process Air Compressor.
-- NTPS: Gas Turbines had a load evacuation problem because the the Auto Transformer caught fire.
-- BCPL: Due to maintenance problem of the LPDE unit at Lepatkata.
Click on Reports for more Details
Natural gas production loss was a double whammy of sorts.
8Not only was it less than last year's production by a wide margin, it was 2.56 % lower, at 2656.09 MMSCM, than the current year's target as well.
8The truth is that gas production is down 6.88% from May of last year.
8Cumulatively too, output for April-May, 2016 was 5144.13 MMSCM which is 2.04 percent lower than target for the period and 6.86 percent lower than May last year.
8Natural gas production by ONGC during May, 2016 was 1790.77 MMSCM. This is 1.19 percent lower than the monthly target and 5.68 percent less when compared with May 2015.
8Cumulative ONGC's gas production during April-May, 2016 was 3421.68 MMSCM which is 0.45 percent lower than the cumulative target and a whopping 7.04 percent lower than the production during the corresponding period of last year.
8The silver lining is that the reasons for ONGC's drop in output is on account of temporary reasons:
-- Offshore: Closure of both the deep water wells of G1 field for carrying out tie-in works of S2AB well. Decline/less production from Bassein field post BPA and BPB shutdown taken in Jan’16 and March’16 respectively under “Reconstruction of BPA & BPB Platforms” Project.
-- Ankleshwar: Closure of 24 wells in Gandhar field on account of GAIL pipeline shutdown from May 8, 2016.
-- Karaikal: Closure of wells on account of less off-take by consumers GAIL / TNEB. Shutdown taken for hook-up of GDUs in Kuthalam & Ramnad GCS.
Click on Reports for more Details
Private sector and JV oil production too suffers from the same problem that the public sector oil fields are exposed to.
8Crude oil production by private and JV entities during May 2016 was 918.61 TMT which is 0.6 percent lower than the monthly target and 7.62 percent less when compared with May, 2015.
8Cumulative crude oil production during April-May, 2016 was 1812.51 TMT which is 0.84 percent lower than target but 5.78 percent less than the same month last year.
Reasons for shortfall from the previous year are:
-- Cairn: Less production from RJ-ON-90/1 due to shutdown at Bhagyam on 16.05.2015 and Aishwarya field on 11.05.2016 and natural decline in Ravva.
-- GSPC: Underperformance of wells in KG-OSN-2001/3.
-- Natural Decline in Ravva  and underperformance in Mangala & Bhagyam wells in RJ-ON-90/1
-- Closure of 1 well in KG D6
-- Production from M&S Tapti fields stopped in March, 2016
Click on Reports for more Details
A look at Oil India Ltd's production data for May brings out the contradictions in sharper relief.
8Output for the month was at 271.40 TMT which is 1.46 percent higher than monthly target.
8The company brass can pat itself on its back for beating the target
8But the caveat is that it is an unacceptable 4.77 percent less than May 2015.
8Cumulative crude oil production during April-May, 2016 was 532.81 TMT which is 0.95 percent higher than target for the period but 5.81 percent lower than the production during corresponding period of last year.
8Beyond the headline figures, serious problems are brewing in the company's Assam oil fields.
8The government seems to have admitted for the first time that the well head potential of OIL’s producing wells in North East declined at a rapid 20.4 percent in 2015-16 as against anticipated decline of about 14 percent.
8Juxtaposed against this grim reality is the fact that the potential build up from the development wells completed in 2015-16 has been way below expectation.
Comment: The fact that Oil India Ltd does not have a full time chairman when its ageing fields are in inexorable decline is something that the government needs to be concerned about. The sooner the appointment is made the better it will be for the company that produces oil in a sensitive insurgency ridden fields in Upper Assam.
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Something is wrong with India's oil and gas production targets.
8It seems like targets are being fixed below the previous year's production and companies then benchmark their performance to the the lower set of targets.
8Behind this camouflage hides the story of an inexorable decline in production from India's oil and gas fields.
8For example, the latest data shows that crude oil production in May 2016 was 3.078 MMT which is 0.96 percent higher than target.
8But the point to note is that production is 3.34 percent lower than what was achieved in May 2015.
8Similarly, cumulative crude oil production during April-May, 2016 was 6.035 MMT. This is 0.42 percent higher than target but 2.81 percent lower than the production during corresponding period of last year.
8Crude oil production by ONGC during May, 2016 was 1.88 MMT which is 1.66 percent higher than the monthly target but 0.88 percent than May 2015.
8Cumulative crude oil production during April-May, 2016 was 3.69 MMT which is 0.97 percent higher than target but 0.82 percent lower than the production during corresponding period of last year.
Comment: The entire target fixing system needs a systematic review. There is always talk of higher production but the ground reality is different. The targets are settled in an MOU with the government but the review mechanism is weak. There has been talk of revamping the benchmarking system but no progress has been made so far.
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Essar has issued a press release that it has been able to scale up CBM production to the 1 mmscmd level in its Raniganj field.
8But that does not seem to bring any cheer to the captive Rs 4500 crore ammonia-urea complex built by the Matix Fertilizers and Chemicals Ltd  adjacent to the field.
8The project has been completed but is now stranded for want of adequate gas from the Raniganj field.
8The urea complex needs 2.4 mmscmd of gas to be able to run at full capacity.
8There are technological constraints in operating with just 1 mmscmd of gas.
8If the Matix plant is unable to lift the gas, Essar will face an evacuation problem as well.
8The field's plateau production rate is 3 mmscmd of CBM gas but it remains a moot point when production will be scaled up to that level.
8Will the Matix plant have to wait for the Jagdishpur Haldia pipeline to come up for its eventual quota of gas? That will be a long and painful wait indeed.
8The urea plant was set up on someone else's promise.
8But then in India, promises are almost always never kept
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Echoing what this website had said earlier, a rating agency has set off an alert on debt funding of ONGC Videsh Ltd's E&P endeavours from here on.
8ONGC has been warned that it needs to be very careful in funding future acquisition sprees of its subisidiary.
8OVL seems to have run into serious trouble as  most of its assets are facing geological, technology and execution risks
8Moreover, its assets have grave geopolitical risks.
8Disruptions at three producing projects --  Al Furat Project in Syria as well as in Block 5A and GPOC Projects in South Sudan--  are an indication of such risks.
8The crash in prices has adversely impacted  revenues and cash accruals.
8OVL's large capex plans carry more risk now than ever before, the agency said.
8The acquisition of a 15% stake in CJSC Vankorneft, which is the owner of Vankor Field, Russia’s second largest field by production at a cost of $1.15 billion, is being funded entirely by foreign currency debt which is subject to foreign currency risk. OVL also signed an MoU to acquire an additional 11% in the Vankor field and this will mean more debt funding.
8The warning now is that any further large debt funded acquisitions will impact ONGC's capital structure and coverage metrics adversely
8It will end up putting undue pressure on ONGC's credit profile especially in view of the pressure on its net cash accruals on account of low prices and high dividend payout.
8The E&P major has been warned that it has already got large commitments in other group ventures and this implies higher debt in the absence of adequate internal cash generation.
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There will also be a need for:
8Sectionationlizing valve stations
8Terminal stations (scrapper launchers and receivers)
And requisite risk equipment will include:
8Remotely–controlled blow out preventor (BOP)
8Fire/smoke detectors
8Gas detectors
8Water sprinkler and deluge system
8Automatic dry chemical powder and foam systems
8Hi-Lo Safety valves
Click on Reports for full details. Systematic software driven details are also tabulated in our project monitoring software Details
The website carries here the overall specifications of the drilling rigs that will be deployed in the development.
The solid handling capacity should be:
-- Shale Shakers:1200 GPM
-- Desander: 1200 GPM
-- Desilter: 1200 GPM
-- The rig will use at least six AC- SCR type power generators.
8For the gas processing plants, the key equipment requirements are: HP and MP Separators, Test Separator, Gas Scrubber, Condensate Separator, Condensate Stabilizer, Condensate Storage Tank, Condensate transfer pump, Effluent water stabilizer, Gas Filter, Bath Heater, Flare Header, Flare KOD, Water Seal Drum, Flare Stack, Flare KOD Condenser Pump.
8Rs 100 crore is the outlay for manifolds and associated flow lines.
Click on Reports for full details. Systematic software driven details are also tabulated in our project monitoring software Details
An independent business development opportunity has come up for drilling 34 development wells.
8The cost of the project is Rs 1000 crore and formal RFQs are still to be released.
The project will involve the following activities:
8Drilling of 34 development wells
8Conversion of up to 20 exploratory wells into development wells.
8Attendant capacity enhancement of the Gas Gathering System
8Building of new high capacity Effluent Treatment Plants (ETPs)
8Construction of pipe manifolds
8Building of flow-lines and the attendant gas grid network.
Click on Reports for full details. Systematic software driven details are also tabulated in our project monitoring software Details
The inflexibility of the current LNG infrastructure is forcing domestic buyers to create their own independent LNG terminals.
8Competitive forces cannot be kept under leash for too long and they have a way of finding a vent to the surface.
8Big buyers of gas are now looking at bypassing legacy gas infrastructure to set up their own FRSU based import terminals.
8While big promoters who have industries around the coast will benefit by setting up their own terminals, those who are further inland have another hurdle to cross and that is the monopoly pipeline networks of the likes of GAIL and GSPC.
8For an independent supplier of gas who does not own any infrastructure, negotiating a slot in an LNG terminal is a challenge in itself but a bigger hurdle will be to find a common pipeline carrier who will ferry his gas to the eventual buyer.
8The system just does not favour independent third party use.
8An illustration of this is the mandate given by the government to ensure that at least 20% of the gas supplied to the fertilizer industry be bought through a tendering process. The tender is brought out by GAIL -- which is also the monopoly gas pool operator for the fertilizer industry -- and, except for an occasional bid by a GSPC or an IOC, there are few takers.  For any independent supplier, negotiating the entire supply chain, from the terminal to the buyer, is fraught with many uncertainties.
8The rigidity in the supply chain should be juxtaposed against the fact that India's gas pipeline infrastructure has large redundant capacity. 
8This means that there are choke points in the supply chain and regulators will have to step in to clear them up.
8It is time too for GAIL to be split up into its transmission and gas trading arms. If an actual split is not possible, an accounting separation can be a good start.
8As the main regulator,  PNGRB has a lot of work to do. The petroleum ministry can also be a catalyst for change.
8There is a need for a set of comprehensive guidelines under which common carrier principles will operate not just with respect to the liquefaction terminals but down the pipeline chain to the eventual buyer.
8The gas market in India cannot grow as fast as policy makers want it to and the challenges therin met, unless the underlying problems are speedily resolved. Details
Is India really in a position to exploit the opportunities arising out of an oversupply of LNG in the global market?
8The answer is "No".
8And it is not as if the Indian market is not resilient or robust enough to absorb the fluctuation in price and the rise in supply that a free LNG market will entail.
8What erodes the big advantage that a buyers' market has bestowed on India is the inflexible and monopolistic gas infrastructure that the country has come to possess.
8Regulatory authorities have failed to implement common user conditions on gasification terminals and their attendant evacuation networks.
8The PNGRB had come out with a set of draft guidelines for registration of gasification terminals in India with a minimum common carrier caveat but they haven't been given teeth to yet.
8The government too had once said that 30% of a terminal's capacity should be available to others to use but it never followed up on its intention.
8The result of an absence of rules for sharing of infrastructure is a rigid system that is unable to take full advantage of global market forces at play.
8It is near-impossible for independent third party operators to work through this monopoly. If a distressed LNG cargo is available somewhere in the world -- and there can be many in today's over supplied scenario -- it cannot be brought to India unless it is funneled either through the terminal owner himself or a handful of companies which have ownership of infrastructure.
8The price transmission system to the ultimate buyer is opaque and the inelasticities mean that there is no automatic pass through of lower prices to the end consumer. Details
For reference purposes the website carries here the following tenders:
8Co-Processing of Oily Sludge, Mangalore [MRPL] Details
8Procurement of IR Hydrocarbon Gas Detectors, Vijaipur [GAIL]  Details
8Supply of Globe Control Valves for DHDT Unit, Gujarat Refinery [IOC] Details
8Supply of Basic Engineering Design Package and other supplies for Hydrogen Generation Unit, Panipat [IOC] Details
8Supply of Liquid Nitrogen, Guwahati Refinery [IOC] Details
8Supply of Oil Mist Eliminator Filter, Barauni Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8India's changing coal imports show quality over quantity: Russell Details
8RIL, Indian Institute of Petroleum develop benzene curbing technology Details 
8Essar Oil CBM gas output touches 1 mscmd, aims to treble it by 2017-18 Details 
8Fuel consumption grows 6.7% in May, import dependence goes up to 81.9% Details 
8Oil prices slip after rally as market turns cautious Details
8HC removes management fetters on IOC officers Details
8BHP Billiton steps up coking coal output, slices costs Details
8Pradhan Mantri Ujjwala Yojana launched in Odisha  Details
8Mahanagar IPO opens today; 4 brokerages say it's a good 'buy'  Details
8Essar Oil increases CBM production at West Bengal unit Details
8Govt shortlists seven bankers for Oil India stake sale Details
8Strengthening energy ties with Russia to be on top of PM Narendra Modi’s agenda  Details
8NTPC, Coal India, others In Rs 20,000-Crore venture to revive Mothballed Fertiliser Plants  Details
8Essar Oil finds 8 tcf shale gas at Raniganj coal block  Details
You can also click on Newsclips for more Details
The latest data shows that more LNG shipments have come in at Dahej.
8Australian spot shipments are coming in at least $1/mmbtu cheaper than the RasGas consignments.
8Shell's Nigerian LNG plant is also pushing cargoes into Dahej at lower prices.
8The point is that Qatar which has a massive freight cost advantage is allowing spot cargoes to come in and garner market share in Dahej.
8Should it change its strategy for India?
8Why allow spot cargoes to come in from its competitors when the Indian market can be easily supplied by it at lower prices?
8The reason perhaps is that it cannot follow a dual pricing structure for short and long term contracts, all delivered at Dahej.
8Strategists within RasGas will have to do some quick thinking here, as should PLL
Click on our website www.indianpetrochem.com for more Details
For reference purposes, the website carries here the latest data on the City Gas Distribution activities in India.
8The data captures the number of state-wise PNG connections as well as CNG stations.
The information is arranged in the following format:
8State
8PNG connections
8CNG stations
8The spread is thin and activity is confined to limited areas.
8The data shows the immense possibility that India has for spread of the gas distribution network.
The data is updated as on June, 2016
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After having shed its bleeding dry cargo subsidiary for a sum of $1, Mercator seems to be breathing easy.
8Its modest tanker fleet is 100% deployed, the company says
8Its dredging division is doing well too, as there are many contracts being awarded by Indian ports
8Its modest overseas coal business is also looking up
8And it has oil and gas stakes in India where production is going to start soon.
8It is also an EPC contractor for ONGC projects, including a contentious conversion of a drilling rig into an offshore processing unit.
8Then again, it has a stake in an international offshore block.
8The consolidated accounts still show a loss.
8But their promoters are an ambitious lot and they do not believe that they have put their fingers in too many pies.
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Does anyone remember the Assam Gas Cracker project that has come into production on the distant foothills of the Eastern Himalayas in Assam?
8GAIL is the reluctant promoter of the project which then Prime Minister Manmohan Singh had wanted the gas major to implement. Singh was elected unanimously to the Rajya Sabha from Assam and it was his way of thanking the state for the favour.
8The project cost has now gone up to Rs. 9965 crore as against the approved Rs.8920 crore.
8GAIL is now looking at a feedstock subsidy for 15 years from the government to be able to ensure a 10% IRR.
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What is the latest status on the four Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) in the states of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej), Odisha (Paradeep) and Tamil Nadu (Cuddalore and Nagapattinam)?
8All of them have areas of around 250 sq. km. each. Once fully established, these PCPIRs are expected to attract investments to the tune of a massive Rs 7,63,234 crore.
8As of now, investments worth Rs.1,60,443 crore  have been made.
8Find out more about these PCPIRs and their anchor investors and the possibility of attendant business development opportunities in them.
8One anchor tenant, Nagarjuna Oil Corporation Limited (NOCL), even though it is plagued by financial problems, is planning to extend the capacity of its refinery from 6 MMTPA to 12 MMTPA.
Click on Reports for more. Details
For all those who are interested in the downstream petrochemical sector in India, the website carries here a comprehensive database of information.
8Price movements of key chemical and petrochemical products are tracked as also their export and import movements.
8Full details on the latest installed capacity and actual production of hundreds of chemical and petrochemical products are given here.
8The time series data is going to be immensely useful for those who want to understand the Indian chemical and petrochemical markets in greater depth.
Click on Reports for more. Details
How does a daily morning report look like for a sophisticated deepwater high temperature high pressure (HTHP) well in the KG Basin?
8The website carries here a copy of the daily report filed by the rig manger for the KG-9A well.
8The work is done by the Transocean's Rig 504.
8The water depth is 3135 feet and the well belongs to Oil India Ltd.
8Multiple parameters are recorded on to the sheet over a 24 hour period.
Click on Reports for a copy Details
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