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Jul 2016
A comprehensive study released recently shows promises for carbon reduction by 2030 by countries in the Paris Climate Change and thereafter is still likely to bring about an increase in temperature of more than 3 degrees by 2100.
8To be able to stick to a 2 degree change, the pledges for carbon reduction will have to be more ambitious.
8The paper exclusively looks at India's role in this Business as Usual (BAU) and Low Carbon scenarios and, through a series of complex modeling exercises, arrives at India energy requirements over the next 30 years, until the year 2047, under the two scenarios.
8The data builds CAGRs of consumption, production and import dependence under both scenarios for coal oil and gas to arrive at some very interesting conclusions.
8The BAU scenario is quite frightening. It shows a massive increase in import dependence for all fossil fuels.
8Import dependence for coal increases from 18% in the base year to 57% in 2047; in the case of oil it increases from 77% in 2012 to 90%, and for gas from 22% in 2012 to 43% in 2047.
8The total import dependence for all fuels increases from 31% to 59%.
8Increases of this order are clearly unacceptable from the energy security point of view.
8This comprehensive paper is a must read for analysts involved in the oil and gas sector in India.
Click on Reports for more Details
8To be able to stick to a 2 degree change, the pledges for carbon reduction will have to be more ambitious.
8The paper exclusively looks at India's role in this Business as Usual (BAU) and Low Carbon scenarios and, through a series of complex modeling exercises, arrives at India energy requirements over the next 30 years, until the year 2047, under the two scenarios.
8The data builds CAGRs of consumption, production and import dependence under both scenarios for coal oil and gas to arrive at some very interesting conclusions.
8The BAU scenario is quite frightening. It shows a massive increase in import dependence for all fossil fuels.
8Import dependence for coal increases from 18% in the base year to 57% in 2047; in the case of oil it increases from 77% in 2012 to 90%, and for gas from 22% in 2012 to 43% in 2047.
8The total import dependence for all fuels increases from 31% to 59%.
8Increases of this order are clearly unacceptable from the energy security point of view.
8This comprehensive paper is a must read for analysts involved in the oil and gas sector in India.
Click on Reports for more Details
For reference purposes the website carries here the following tenders:
8Carrying out Civil Works for Work Over Operations in Island area, Rajahmundry Asset [ONGC] Details
8Cleaning Pigging of different pipelines in HVJ Pipline Network [GAIL] Details
8Cleaning Electronic Gauging & In-Line Inspection of HVJ Natural Gas Pipeline, Vijaipur [GAIL] Details
8Procurement of Pressure and Temperature Transmitters for DBPL [GAIL] Details
8Disposal of Oily Sludge from Surge Ponds, Pata [GAIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8RIL refining margins up despite fall in regional benchmarks Details
8In a first, Iraq undercuts Saudi Arabia in Q2 to grab top spot in India oil market Details
8Great Calcutta Gas Supply to supply natural gas in and around Kolkata Details
8Shifting NTPC plant not practical, need to run it on LNG: CM Details
8Crude oil futures down 0.55% on weak Asian trend Details
8UN criticises Britain, Germany for undermining Paris climate deal Details
8ExxonMobil's offer for InterOil a model for buying at the bottom: Russell Details
8Nigeria oil pipeline bombed causing 'massive spills' Details
8Oil steady above $47, latest Libya hitch supports Details
8Shri Dharmendra Pradhan meets Dr Ernest Moniz, Secretary of Energy, USA Details
8Asian shares dip, crude oil extends losses Details
8India continues developing its strategic petroleum reserve as its oil imports grow Details
8Indian oil imports drop 8.4pc Details
8India’s MRPL settles half of Oil debt to Iran: Report Details
8CAG audit nails Centre’s claim on LPG subsidy saving Details
8India, US agree to enhance cooperation on hydrocarbons Details
8Where have all the LNG orders gone? Details
8MRPL plans new projects worth up to Rs 15,000 crore [Business Standard] Details
You can also click on Newsclips for more Details
8Carrying out Civil Works for Work Over Operations in Island area, Rajahmundry Asset [ONGC] Details
8Cleaning Pigging of different pipelines in HVJ Pipline Network [GAIL] Details
8Cleaning Electronic Gauging & In-Line Inspection of HVJ Natural Gas Pipeline, Vijaipur [GAIL] Details
8Procurement of Pressure and Temperature Transmitters for DBPL [GAIL] Details
8Disposal of Oily Sludge from Surge Ponds, Pata [GAIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8RIL refining margins up despite fall in regional benchmarks Details
8In a first, Iraq undercuts Saudi Arabia in Q2 to grab top spot in India oil market Details
8Great Calcutta Gas Supply to supply natural gas in and around Kolkata Details
8Shifting NTPC plant not practical, need to run it on LNG: CM Details
8Crude oil futures down 0.55% on weak Asian trend Details
8UN criticises Britain, Germany for undermining Paris climate deal Details
8ExxonMobil's offer for InterOil a model for buying at the bottom: Russell Details
8Nigeria oil pipeline bombed causing 'massive spills' Details
8Oil steady above $47, latest Libya hitch supports Details
8Shri Dharmendra Pradhan meets Dr Ernest Moniz, Secretary of Energy, USA Details
8Asian shares dip, crude oil extends losses Details
8India continues developing its strategic petroleum reserve as its oil imports grow Details
8Indian oil imports drop 8.4pc Details
8India’s MRPL settles half of Oil debt to Iran: Report Details
8CAG audit nails Centre’s claim on LPG subsidy saving Details
8India, US agree to enhance cooperation on hydrocarbons Details
8Where have all the LNG orders gone? Details
8MRPL plans new projects worth up to Rs 15,000 crore [Business Standard] Details
You can also click on Newsclips for more Details
The PNGRB has decided to crack the whip on defaulting CGD companies by canceling their licenses for their inability to fulfill minimum work programs. Click on Reports to find out more
8A fertilizer company is seeking the supply of 3,200,000 MMBTU of RLNG for delivery for a period of five months.
8The website can also provide details of spot and immediate tenders for supply of RLNG to a range of fertilizer companies which GAIL is currently unable to fulfill.
8The government has listed out a series of incentives it has taken to promote the use of gas in the country.
Click on Reports for more Details
8A fertilizer company is seeking the supply of 3,200,000 MMBTU of RLNG for delivery for a period of five months.
8The website can also provide details of spot and immediate tenders for supply of RLNG to a range of fertilizer companies which GAIL is currently unable to fulfill.
8The government has listed out a series of incentives it has taken to promote the use of gas in the country.
Click on Reports for more Details
The treatment of natural losses is also a question of concern.
Section 11 of the Model GST Law states:
8Central or State Government may, by Rules under this sub-section, provide for remission of tax
8On such supplies which are found to be deficient in quantity due to natural causes
8Rules may specify the limit beyond which remission may not be available
The questions are:
8Whether losses during manufacturing would constitute self consumption / supply?
8Whether losses during storage (factory / warehouse) would constitute self consumption / supply?
8Will remission be applied for losses during transit?
8Then each state and and the centre may specify a remission limit of its own.
Click on Reports for more Details
Section 11 of the Model GST Law states:
8Central or State Government may, by Rules under this sub-section, provide for remission of tax
8On such supplies which are found to be deficient in quantity due to natural causes
8Rules may specify the limit beyond which remission may not be available
The questions are:
8Whether losses during manufacturing would constitute self consumption / supply?
8Whether losses during storage (factory / warehouse) would constitute self consumption / supply?
8Will remission be applied for losses during transit?
8Then each state and and the centre may specify a remission limit of its own.
Click on Reports for more Details
In the downstream sector there are unanswerable questions on treatment of post sale discounts:
Section 15 (h) of the Model GST law says
8Transaction value shall not include any discount or incentive that may be allowed after the supply has been effected
8Such discount should be established as per the agreement and is known at or before the time of supply and specially linked to relevant invoices
The questions are:
8If an intimation for post-sale discounts is given before the sale is effected then whether an agreement is still needed?
8One to one co-relation with each invoice may be a challenge?
Click on Reports for more Details
Section 15 (h) of the Model GST law says
8Transaction value shall not include any discount or incentive that may be allowed after the supply has been effected
8Such discount should be established as per the agreement and is known at or before the time of supply and specially linked to relevant invoices
The questions are:
8If an intimation for post-sale discounts is given before the sale is effected then whether an agreement is still needed?
8One to one co-relation with each invoice may be a challenge?
Click on Reports for more Details
There several unanswered questions in the downstream sector too.
8Section 15(2)(f) of Model GST Law says that transaction value shall include subsidies provided in any form or manner, linked to the supply.
8The unanswered bit here is that: At the time of stock transfer, whether GST will have to be paid on the value inclusive of subsidy (e.g. for LPG supplied under PDS)?
8The problem is that inclusion of subsidy for GST would increase the subsidy to be claimed and hence, working capital issues will crop up.
8On the issuance of Form C by companies other than oil marketing companies or resellers, the factual position is that natural gas is an input for other industries such as fertilizer.
8Then again, interstate sale of natural gas is subject to CST @ 2%>
8The question is: During GST regime, whether concept of Form C would apply for companies in other industries in the GST regime?
8It seems like VAT credits on local sale would not be available to companies in other industries in the GST regime.
Click on Reports for more Details
8Section 15(2)(f) of Model GST Law says that transaction value shall include subsidies provided in any form or manner, linked to the supply.
8The unanswered bit here is that: At the time of stock transfer, whether GST will have to be paid on the value inclusive of subsidy (e.g. for LPG supplied under PDS)?
8The problem is that inclusion of subsidy for GST would increase the subsidy to be claimed and hence, working capital issues will crop up.
8On the issuance of Form C by companies other than oil marketing companies or resellers, the factual position is that natural gas is an input for other industries such as fertilizer.
8Then again, interstate sale of natural gas is subject to CST @ 2%>
8The question is: During GST regime, whether concept of Form C would apply for companies in other industries in the GST regime?
8It seems like VAT credits on local sale would not be available to companies in other industries in the GST regime.
Click on Reports for more Details
There are issues with the midstream pipeline segment too.
8According to the GST Bill, a fixed establishment means a place which is characterized by a sufficient degree of permanence and suitable structures.
8The question is whether the taxability will be in all the states where the pipeline is located
8Will credit have to be availed in all the states in which a pipeline is located
Under the GST, input credit will be available for:
8Goods and services acquired by the principal in the execution of works contract
8When such contracts results in construction of immovable property
8Except for plant and machinery
The questions then are:
8Whether storage tanks would qualify as plant and machinery?
8Whether pipeline would qualify as plant and machinery?
8In that sense the bill has not properly defined what plant and machinery is.
Click on Reports for more Details
8According to the GST Bill, a fixed establishment means a place which is characterized by a sufficient degree of permanence and suitable structures.
8The question is whether the taxability will be in all the states where the pipeline is located
8Will credit have to be availed in all the states in which a pipeline is located
Under the GST, input credit will be available for:
8Goods and services acquired by the principal in the execution of works contract
8When such contracts results in construction of immovable property
8Except for plant and machinery
The questions then are:
8Whether storage tanks would qualify as plant and machinery?
8Whether pipeline would qualify as plant and machinery?
8In that sense the bill has not properly defined what plant and machinery is.
Click on Reports for more Details
Natural gas is to be kept outside the ambit of the GST.
8Accordingly, provisions under the GST regime will not be applicable to it and the current taxation regime is to continue.
8But what kind of natural gas will be exempted has not been specified.
Will natural gas also include the following kinds of gas:
8Compressed natural gas
8LNG
8Piped natural gas
8Rich natural gas
8Lean natural gas
Click on Reports for more Details
8Accordingly, provisions under the GST regime will not be applicable to it and the current taxation regime is to continue.
8But what kind of natural gas will be exempted has not been specified.
Will natural gas also include the following kinds of gas:
8Compressed natural gas
8LNG
8Piped natural gas
8Rich natural gas
8Lean natural gas
Click on Reports for more Details
In the upstream sector too, there is a lot of confusion over levying of Integrated GST on supplies in the course of inter-state trade or commerce. There is a provision for Central and State GST to be levied on all supplies within a state.
8How then will supplies out of an EEZ or any other maritime zone which is not a state be treated..
8The big question again is whether offshore supplies will be subject to GST.
8In which state will credit be available then?
Click on Reports for more Details
8How then will supplies out of an EEZ or any other maritime zone which is not a state be treated..
8The big question again is whether offshore supplies will be subject to GST.
8In which state will credit be available then?
Click on Reports for more Details
There is a range of other questions that come into play with the advent of the GST bill.
8For goods belonging to principal in an agent's premises on the appointed day, the agent can take credit for VAT on such goods. The question then is whether there is a provision for availing excise duty on such goods?
8"Works contract" in the Model GST is taxable as service in the GST regime, but it is not known whether separate contracts which are cross fall breach contracts will be considered under works contract.
Click on Reports for more Details
8For goods belonging to principal in an agent's premises on the appointed day, the agent can take credit for VAT on such goods. The question then is whether there is a provision for availing excise duty on such goods?
8"Works contract" in the Model GST is taxable as service in the GST regime, but it is not known whether separate contracts which are cross fall breach contracts will be considered under works contract.
Click on Reports for more Details
An analysis shows that the credit mechanism will become more complex.
8Input credit will have to be matched with output tax.
8There will be an additional three credit pools in each state where business operations are liable to GST.
8MS, HSD, ATF and gas constitute a majority of supplies in the downstream and upstream industry and exclusion of these products would result in reversal of a majority of GST credits. There is therefore a need for zero rating or refund.
8There is still uncertainty over valuation of services and goods by one establishment to the other in different states of the same entity.
8In the example of an input pipeline for crude running through various states, how will provision of services by different taxable persons to the refinery be treated?
8Will Integrated GST be a cost to the extent of non GST goods?
8On the question of carrying forward of existing credits, is it going to be compulsory to carry forward credit pertaining to GST products as GST credit?
Click on Reports for more Details
8Input credit will have to be matched with output tax.
8There will be an additional three credit pools in each state where business operations are liable to GST.
8MS, HSD, ATF and gas constitute a majority of supplies in the downstream and upstream industry and exclusion of these products would result in reversal of a majority of GST credits. There is therefore a need for zero rating or refund.
8There is still uncertainty over valuation of services and goods by one establishment to the other in different states of the same entity.
8In the example of an input pipeline for crude running through various states, how will provision of services by different taxable persons to the refinery be treated?
8Will Integrated GST be a cost to the extent of non GST goods?
8On the question of carrying forward of existing credits, is it going to be compulsory to carry forward credit pertaining to GST products as GST credit?
Click on Reports for more Details
The Indian oil and gas industry claims that a lot of questions are left answered the new GST bill that is currently under enactment by Parliament.
8As the status stands now, crude, MS, HSD, ATF and natural gas are to be included under GST provisions only at a later date. However, services such as transportation related to petroleum products are to be included under GST.
8There is still a lot of uncertainty over whether current excise and customs exemption will continue under GST.
8There is concern that workload in terms of filing additional returns will go up: Over and above current complexities, there will 30 additional state GST laws and along with the Central GST law and the Integrated GST law which will have to be followed by the petroleum industry.
Click on Reports to know the additional paper work that oil and gas companies will have to fulfill. Details
8As the status stands now, crude, MS, HSD, ATF and natural gas are to be included under GST provisions only at a later date. However, services such as transportation related to petroleum products are to be included under GST.
8There is still a lot of uncertainty over whether current excise and customs exemption will continue under GST.
8There is concern that workload in terms of filing additional returns will go up: Over and above current complexities, there will 30 additional state GST laws and along with the Central GST law and the Integrated GST law which will have to be followed by the petroleum industry.
Click on Reports to know the additional paper work that oil and gas companies will have to fulfill. Details
The government claims that it has gone full steam ahead in pushing domestic production of oil and gas in the country.
8The icing in the cake, it claims, is the auction of the discovered small oil and gas fields.
8In all, 11 policy decisions have been marked out by the government which will act as catalyst for further growth of the oil and gas sector in India
Click on Reports for more Details
8The icing in the cake, it claims, is the auction of the discovered small oil and gas fields.
8In all, 11 policy decisions have been marked out by the government which will act as catalyst for further growth of the oil and gas sector in India
Click on Reports for more Details
RFQs are likely to be issued soon by a premier oil marketing company for a LPG plant with the following details:
8New capacity: 2 X 900 MT Mounded Storage Vessels
8Existing capacity: 2 X 110 MT and 1 X 150 MT
8Project cost: Rs 25 crore
8The plant involves receipt of finished LPG through bullet trucks and its storage in tanks as per OISD norms. The LPG is then packaged into cylinders and dispatched through trucks
Click on Reports for more Details
8New capacity: 2 X 900 MT Mounded Storage Vessels
8Existing capacity: 2 X 110 MT and 1 X 150 MT
8Project cost: Rs 25 crore
8The plant involves receipt of finished LPG through bullet trucks and its storage in tanks as per OISD norms. The LPG is then packaged into cylinders and dispatched through trucks
Click on Reports for more Details
The price of RasGas LNG has hit the ceiling.
8Latest rich gas cargoes are coming in at $6.7/mmbtu.
8And this is bad news for industrial consumers at a time when business is lukewarm.
8Spot cargoes prices are going up in tandem too, with the differential staying at around $1/mmbtu.
8For prices and charts on LNG, please speak to our business development team
Also click on Details for more. Details
8Latest rich gas cargoes are coming in at $6.7/mmbtu.
8And this is bad news for industrial consumers at a time when business is lukewarm.
8Spot cargoes prices are going up in tandem too, with the differential staying at around $1/mmbtu.
8For prices and charts on LNG, please speak to our business development team
Also click on Details for more. Details
For reference purposes the website carries here the following tenders:
8Supply of Pressure Vessels for DHDS Unit, Gujarat Refinery [IOC] Details
8Procurement of Radar Level Transmitters, Panipat Refinery [IOC] Details
8Miscellaneous Civil Enabling Works for INDMAX Project Jobs, Bongaigaon Refinery [IOC] Details
8Carrying out External Safety Audit at Paradip Refinery, Odisha [IOC] Details
8EOI for Integrated SPS & SURF package for KG-DWN-98/2 Project, Kakinada [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8North American oil deals trickle back after Brexit shock Details
8Oil prices largely unchanged as market shrugs off Turkey coup bid Details
8Expect ONGC, Oil India stocks to be under pressure on royalty burden: RS Sharma, Former CMD, ONGC Details
8ExxonMobil bids $2.2 bln for InterOil, may spark bidding war Details
8Saudi always reacts to oil supply and demand, watching market - minister: Khalid al-Falih Details
8Oil prices rise as market shrugs off Turkey coup bid Details
8Utpal Bora takes charge as full-time Oil India Chairman Details
8ONGC, Oil India to pay higher royalty to states Details
8Criteria for LPG Distributorships Details
8India’s gas share is 6.5% of the country’s fuel basket Details
8Oil market drifts lower Details
8Oil PSUs to pay royalty on gross price to producing states Details
8Here’s how Centre looks to boost gas supply to your door Details
8Switch to hydrocarbons Details
8Offshore Oil, Gas production gains In 2017 could prolong downturn Details
8LPG subsidy cut off to 7 lakh consumers Details
You can also click on Newsclips for more Details
8Supply of Pressure Vessels for DHDS Unit, Gujarat Refinery [IOC] Details
8Procurement of Radar Level Transmitters, Panipat Refinery [IOC] Details
8Miscellaneous Civil Enabling Works for INDMAX Project Jobs, Bongaigaon Refinery [IOC] Details
8Carrying out External Safety Audit at Paradip Refinery, Odisha [IOC] Details
8EOI for Integrated SPS & SURF package for KG-DWN-98/2 Project, Kakinada [ONGC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8North American oil deals trickle back after Brexit shock Details
8Oil prices largely unchanged as market shrugs off Turkey coup bid Details
8Expect ONGC, Oil India stocks to be under pressure on royalty burden: RS Sharma, Former CMD, ONGC Details
8ExxonMobil bids $2.2 bln for InterOil, may spark bidding war Details
8Saudi always reacts to oil supply and demand, watching market - minister: Khalid al-Falih Details
8Oil prices rise as market shrugs off Turkey coup bid Details
8Utpal Bora takes charge as full-time Oil India Chairman Details
8ONGC, Oil India to pay higher royalty to states Details
8Criteria for LPG Distributorships Details
8India’s gas share is 6.5% of the country’s fuel basket Details
8Oil market drifts lower Details
8Oil PSUs to pay royalty on gross price to producing states Details
8Here’s how Centre looks to boost gas supply to your door Details
8Switch to hydrocarbons Details
8Offshore Oil, Gas production gains In 2017 could prolong downturn Details
8LPG subsidy cut off to 7 lakh consumers Details
You can also click on Newsclips for more Details
RIL is raising its domestic retail footprint but it is still a good time away from giving competition to the public sector oil marketing companies.
8As on June 2016, it has 1,022 retail outlets operational
8Volumes are naturally up: MS & HSD retail sales volume up 21% QoQ
8Retail outlet throughput is also up at 230 KLPM in 1Q FY17 as compared to 160 KLPM of key competitors
8Loyalty sales account for 30% of HSD sales
8Having had to close down its outlets once, the company is careful this time: A sharp increase in crude prices may push the government back to subsidizing diesel and petrol, forcing RIL to shut down the outlets again.
Click on Reports for more Details
8As on June 2016, it has 1,022 retail outlets operational
8Volumes are naturally up: MS & HSD retail sales volume up 21% QoQ
8Retail outlet throughput is also up at 230 KLPM in 1Q FY17 as compared to 160 KLPM of key competitors
8Loyalty sales account for 30% of HSD sales
8Having had to close down its outlets once, the company is careful this time: A sharp increase in crude prices may push the government back to subsidizing diesel and petrol, forcing RIL to shut down the outlets again.
Click on Reports for more Details
If one Indian company has to be named for building a truely global busienss, it has to be RIL, and with its refinery business.
8Its massive refineries are best in their class.
8Nothing is more evident than the fact that the company's GRM outperformed the highly efficient Singapore refineries by a massive $8/bbl.
8This is the highest premium in eight years.
8Increased procurement of value added (advantaged) crudes and condensate from new sources in Middle East has been the key to success
8The crude oil basket has been expanded to bring in new grades
8Increased direct placement of premium gasoline grades (premium reformulated gasoline) and components (alkylate) in Latin America and USA .
Click on Reports for more Details
8Its massive refineries are best in their class.
8Nothing is more evident than the fact that the company's GRM outperformed the highly efficient Singapore refineries by a massive $8/bbl.
8This is the highest premium in eight years.
8Increased procurement of value added (advantaged) crudes and condensate from new sources in Middle East has been the key to success
8The crude oil basket has been expanded to bring in new grades
8Increased direct placement of premium gasoline grades (premium reformulated gasoline) and components (alkylate) in Latin America and USA .
Click on Reports for more Details
RIL is finally gearing up for production from its Sohagpur CBM blocks
8Production testing is going on from its first Gas Gathering Station in the block and its associated wells.
8The second GGS is nearing completion too
8Gas will be transported through the Shahdol-Phulpur pipeline and that is also under production testing just now
Click on Reports for more Details
8Production testing is going on from its first Gas Gathering Station in the block and its associated wells.
8The second GGS is nearing completion too
8Gas will be transported through the Shahdol-Phulpur pipeline and that is also under production testing just now
Click on Reports for more Details
Gas production continues to dwindle in the KG D-6 block.
8Average production has come down to 8.7 mmscmd of gas
8The decline is rapid: going down 35% on YoY basis.
8Crude production too is down by 23% from the MA field.
8RIL claims that the continuing decline is on account of natural causes, including higher water cut and sand ingress
8Development projects are continuing to move ahead, with the Declaration of Commerciality submitted for the D-29 and D-30 discovery for review
8Capital investments are continuing in the D-6 block, with two sidetracking wells now ongoing in the MA oil and gas filed in the D-6 block.
Click on Reports for more Details
8Average production has come down to 8.7 mmscmd of gas
8The decline is rapid: going down 35% on YoY basis.
8Crude production too is down by 23% from the MA field.
8RIL claims that the continuing decline is on account of natural causes, including higher water cut and sand ingress
8Development projects are continuing to move ahead, with the Declaration of Commerciality submitted for the D-29 and D-30 discovery for review
8Capital investments are continuing in the D-6 block, with two sidetracking wells now ongoing in the MA oil and gas filed in the D-6 block.
Click on Reports for more Details
A time has come for India to redefine the notion of what is energy security.
8Perhaps one of the most underappreciated facets of the US shale revolution is the impact it is having on the notion of energy security.
8The three basic tenets of energy security are adequacy, stability and reasonableness.
8Unimpeded access to a diversity of energy supply sources is a crucial component in many energy security arguments, precisely because a highly fungible physical market allows ample arbitrage opportunity to mitigate short term dislocations.
8Diversification of supply is generally viewed to be beneficial for energy security
8As markets deepen and become more liquid, the ability to trade through short term market disruptions will result in any single disruption being spread more broadly, thus mitigating its impact on the directly affected region.
8Once the concept is redefined by India, there will be a lot more headroom for policy maneuvers that will maximize returns
Click on Reports for more Details
8Perhaps one of the most underappreciated facets of the US shale revolution is the impact it is having on the notion of energy security.
8The three basic tenets of energy security are adequacy, stability and reasonableness.
8Unimpeded access to a diversity of energy supply sources is a crucial component in many energy security arguments, precisely because a highly fungible physical market allows ample arbitrage opportunity to mitigate short term dislocations.
8Diversification of supply is generally viewed to be beneficial for energy security
8As markets deepen and become more liquid, the ability to trade through short term market disruptions will result in any single disruption being spread more broadly, thus mitigating its impact on the directly affected region.
8Once the concept is redefined by India, there will be a lot more headroom for policy maneuvers that will maximize returns
Click on Reports for more Details
The development of the Asian LNG price hub is gaining momentum even through it is still several years away from evolving into providing truely liquid forward price curve.
8Singapore has made the most progress in evolving an Asian hub.
8But the Shanghai hub is also gaining momentum. The likely growth in Chinese gas demand (albeit perhaps slower than was experienced and expected a few years ago), and the diversity of sources of gas supply – domestically produced and imported, pipeline gas and LNG – are ideal conditions for the establishment of a physical gas hub. A key development will be third party access rights to pipelines and LNG terminals which are currently at the discretion of the owners of those facilities.
8In Japan, there has been discussion of an LNG hub for several years but in 2016 these became much more serious with the publication of METI’s new LNG strategy. The location of the hub is likely to be in Tokyo Bay due to the concentration of import volumes in that location (but could also be in Osaka Bay). The passage of liberalisation legislation to open up the LNG terminals to third party access in 2017 has been an important step but this needs to be accompanied by a commitment of all parties to spot and short term trading, and the establishment of common trading rules and regulations.
8India, it seems, is a long time away from developing a hub of its own.
Click on Reports for more. Details
8Singapore has made the most progress in evolving an Asian hub.
8But the Shanghai hub is also gaining momentum. The likely growth in Chinese gas demand (albeit perhaps slower than was experienced and expected a few years ago), and the diversity of sources of gas supply – domestically produced and imported, pipeline gas and LNG – are ideal conditions for the establishment of a physical gas hub. A key development will be third party access rights to pipelines and LNG terminals which are currently at the discretion of the owners of those facilities.
8In Japan, there has been discussion of an LNG hub for several years but in 2016 these became much more serious with the publication of METI’s new LNG strategy. The location of the hub is likely to be in Tokyo Bay due to the concentration of import volumes in that location (but could also be in Osaka Bay). The passage of liberalisation legislation to open up the LNG terminals to third party access in 2017 has been an important step but this needs to be accompanied by a commitment of all parties to spot and short term trading, and the establishment of common trading rules and regulations.
8India, it seems, is a long time away from developing a hub of its own.
Click on Reports for more. Details
The traditional heavy dependence on long term contacts in Asia will undergo a transformation.
The following developments are projected:
8The shortening of long term contracts from 2020-25 years to perhaps 8-12 years
8The diversification of Asian utilities from heavy dependence on these contracts to a portfolio of perhaps one third long, one third medium (5-8 years) and one third short term (less than 5
years).
New contracts will have:
8Greater destination flexibility, buyers will be able to send cargos which they do not need to other markets
8Greater volume flexibility: take or pay levels lower than 85-90%;
8Regular price reviews, with much more precise criteria for price changes than traditional contracts, which will adjust to changing market conditions.
Click on Reports for more Details
The following developments are projected:
8The shortening of long term contracts from 2020-25 years to perhaps 8-12 years
8The diversification of Asian utilities from heavy dependence on these contracts to a portfolio of perhaps one third long, one third medium (5-8 years) and one third short term (less than 5
years).
New contracts will have:
8Greater destination flexibility, buyers will be able to send cargos which they do not need to other markets
8Greater volume flexibility: take or pay levels lower than 85-90%;
8Regular price reviews, with much more precise criteria for price changes than traditional contracts, which will adjust to changing market conditions.
Click on Reports for more Details
Jul 18 : Uncertain LNG scenario in Asia by 2025-I: Massive gap between high and low demand scenarios
The biggest uncertainty in the Asian LNG market is how demand is going to pan out by the year 2025.
8The major surprise has been a marked slowdown in growth rates relative to what was expected. This particularly relates to China where the ‘new normal’ economic growth has been matched by a slowdown in energy and gas demand.
8Uncertainty in relation to Japanese nuclear power restarts, and Chinese economic recovery are the two most important individual factors which may impact Asian gas demand.
8The difference between the high and low demand cases in these two countries could total nearly 50mt of LNG
8Post-2020, the most important Asian gas demand developments concern relatively new LNG importing countries – Malaysia, Indonesia, Vietnam, Thailand, Pakistan, Bangladesh, Philippines and Singapore – which individually have relatively small demand but (relative to our low demand case) could create an additional 25 mt of demand by 2025 and 50mt by 2030.
Click on Reports for more Details
8The major surprise has been a marked slowdown in growth rates relative to what was expected. This particularly relates to China where the ‘new normal’ economic growth has been matched by a slowdown in energy and gas demand.
8Uncertainty in relation to Japanese nuclear power restarts, and Chinese economic recovery are the two most important individual factors which may impact Asian gas demand.
8The difference between the high and low demand cases in these two countries could total nearly 50mt of LNG
8Post-2020, the most important Asian gas demand developments concern relatively new LNG importing countries – Malaysia, Indonesia, Vietnam, Thailand, Pakistan, Bangladesh, Philippines and Singapore – which individually have relatively small demand but (relative to our low demand case) could create an additional 25 mt of demand by 2025 and 50mt by 2030.
Click on Reports for more Details
The new Iranian Petroleum Contract is meant to see a big influx of capital to exploit the oil and gas fields in the country.
8Iran has the fourth largest reserves of oil and gas in the world which has remained unexploited so far on account of western sanctions.
8There is also a huge number of new downstream projects coming up that will require big investments.
The following details are carried here:
8Iran's oil and gas reserves
8Details on the South Pars gas field (one the largest in the world)
8Refineries
8Petrochemical industries
8Pipelines
8Foreign investment timelines
8New Iranian E&P contract vs. the old buyback scheme
8Forecast on number of E&P projects that are likely to come up
Click on Reports for more Details
8Iran has the fourth largest reserves of oil and gas in the world which has remained unexploited so far on account of western sanctions.
8There is also a huge number of new downstream projects coming up that will require big investments.
The following details are carried here:
8Iran's oil and gas reserves
8Details on the South Pars gas field (one the largest in the world)
8Refineries
8Petrochemical industries
8Pipelines
8Foreign investment timelines
8New Iranian E&P contract vs. the old buyback scheme
8Forecast on number of E&P projects that are likely to come up
Click on Reports for more Details
The PNGRB has decided to reject the existing bidding process for the laying of a natural gas pipeline from Contai (Purba Medinipur district, West Bengal) to Dattapulia (Nadia district, West Bengal) and Paradip (Jagatsinghpur district, Odisha).
8The bidding was started on the basis of an EOI put in by H-Energy after it secured a crucial coastal regulation zone (CRZ) approval for its 6 MMTPA Floating Storage and Re-gasification Unit (FSRU) in the offshore Digha region of West Bengal.
8The pipeline was opposed by many stakeholders in the LNG business, including the Adani Group, IOC and GAIL.
8As per its initial plan, H-energy had intended to supply LNG to the eastern states of West Bengal, Jharkhand and Bihar through the proposed Jagdishpur-Haldia pipeline (JHPL) of GAIL. But now with an eye on the Odisha market, the company had drawn up a plan to lay the two pipelines from Contai to Dattapulia and Paradip.
8The proposed pipeline from Contai was meant to reach Haipur (West Bengal) from where it will go to Paradip, with spur lines to Cuttack and Bhubaneswar and also to Dattapulia with spur lines to Haldia, Kolaghat, Uluberia and Kolkata.
8The FSRU was meant to be set up 100 km offshore of Contai (near Digha, West Bengal).
8As part of the project, the company was also meant to lay a 115 km sub-sea pipeline from the FSRU to its onshore terminal at Contai.
8The LNG plant was expected to be operational by 2018-19.
Click on Reports for more Details
8The bidding was started on the basis of an EOI put in by H-Energy after it secured a crucial coastal regulation zone (CRZ) approval for its 6 MMTPA Floating Storage and Re-gasification Unit (FSRU) in the offshore Digha region of West Bengal.
8The pipeline was opposed by many stakeholders in the LNG business, including the Adani Group, IOC and GAIL.
8As per its initial plan, H-energy had intended to supply LNG to the eastern states of West Bengal, Jharkhand and Bihar through the proposed Jagdishpur-Haldia pipeline (JHPL) of GAIL. But now with an eye on the Odisha market, the company had drawn up a plan to lay the two pipelines from Contai to Dattapulia and Paradip.
8The proposed pipeline from Contai was meant to reach Haipur (West Bengal) from where it will go to Paradip, with spur lines to Cuttack and Bhubaneswar and also to Dattapulia with spur lines to Haldia, Kolaghat, Uluberia and Kolkata.
8The FSRU was meant to be set up 100 km offshore of Contai (near Digha, West Bengal).
8As part of the project, the company was also meant to lay a 115 km sub-sea pipeline from the FSRU to its onshore terminal at Contai.
8The LNG plant was expected to be operational by 2018-19.
Click on Reports for more Details
In a recent conference on ‘Policy Initiatives: Accelerating Exploration & Production in the Hydrocarbon Sector’, the panelists ended up making the following recommendations:
8Government take and government revenue cannot be strategic objective as far as oil and gas is concerned. Instead, the strategic objective of government should be to increase oil and gas production in this country.
8Data Acquisition: For evaluation of sedimentary basin, there is an urgent need to acquire more Geo-scientific data.
8For award of acreage, technical weightage needs to carry more marks than financial to overcome the present imbalance.
8Gas Pricing: At present there is a ceiling for gas price.
8Gas pricing framework as a whole is still incomplete.
8There is a compelling need to extend the free market pricing for onland gas fields, in line with free market pricing which is given only for offshore ultra- deep water and HPHT gas finds.
Click on Details for more Details
8Government take and government revenue cannot be strategic objective as far as oil and gas is concerned. Instead, the strategic objective of government should be to increase oil and gas production in this country.
8Data Acquisition: For evaluation of sedimentary basin, there is an urgent need to acquire more Geo-scientific data.
8For award of acreage, technical weightage needs to carry more marks than financial to overcome the present imbalance.
8Gas Pricing: At present there is a ceiling for gas price.
8Gas pricing framework as a whole is still incomplete.
8There is a compelling need to extend the free market pricing for onland gas fields, in line with free market pricing which is given only for offshore ultra- deep water and HPHT gas finds.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Carrying out Civil Works at Drill site GKIN in Geleky Area [ONGC] Details
8EOI for provision of Manpower Services at Rajasthan and Gujarat [CAIRN] Details
8Turnaround jobs of Process Units in Train III Complex at Mumbai Refinery [BPCL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8BofA Merrill maintains 2017 oil demand growth forecast Details
8RIL Q1 net profit up 18 per cent on highest refining margin in eight years Details
814.13 lakh BPL LPG connections released under PM Ujjwala Yojana Details
8Attackers blow up gas pipeline in southwest Nigeria - police Details
8Dharmendra Pradhan promises greater ease in doing business with India Details
8RIL Q1 results: Here is what to expect Details
8Petrol prices slashed by 2.25 a Litre, Diesel by 42 Paise Details
8Pipe dream becomes a reality Details
8Gujarat Gas Q1 PAT seen up 41.2% to Rs 82 cr: Religare Research Details
8India woos Tesla with land offer Details
8Fugro commences Offshore Geotechnical Contract for ONGC India Details
8Reliance's fuel exports dip below 10 million tonnes in April-June Details
8Venezuela's PDVSA seeking to securitize oil services debts Details
8MIDC, ONGC in talks over water treatment project Details
8Reliance Industries close to starting gas production from CBM blocks in MP Details
8Assam to receive pre-discounted crude royalty Details
8Q1 show, monsoon session to set agenda for market this week Details
8Demand growing, but glut persists in oil markets on extra barrels from Iran Details
8India must gear up to utilise a flood of new LNG Details
8Petronet LNG Q1 PAT seen up 20.1% to Rs 287.4 cr: Religare Details
8South China Sea tensions will not deter offshore pursuits: OVL Details
8GLOBAL LNG: Tenders, outages and short-covering drive Asian prices Details
8Domestic sales offsetting RIL export slump Details
8Reliance Industries clubs petrol pumps with retail arm Details
8India needs Integrated LNG Policy Details
You can also click on Newsclips for more Details
8Carrying out Civil Works at Drill site GKIN in Geleky Area [ONGC] Details
8EOI for provision of Manpower Services at Rajasthan and Gujarat [CAIRN] Details
8Turnaround jobs of Process Units in Train III Complex at Mumbai Refinery [BPCL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8BofA Merrill maintains 2017 oil demand growth forecast Details
8RIL Q1 net profit up 18 per cent on highest refining margin in eight years Details
814.13 lakh BPL LPG connections released under PM Ujjwala Yojana Details
8Attackers blow up gas pipeline in southwest Nigeria - police Details
8Dharmendra Pradhan promises greater ease in doing business with India Details
8RIL Q1 results: Here is what to expect Details
8Petrol prices slashed by 2.25 a Litre, Diesel by 42 Paise Details
8Pipe dream becomes a reality Details
8Gujarat Gas Q1 PAT seen up 41.2% to Rs 82 cr: Religare Research Details
8India woos Tesla with land offer Details
8Fugro commences Offshore Geotechnical Contract for ONGC India Details
8Reliance's fuel exports dip below 10 million tonnes in April-June Details
8Venezuela's PDVSA seeking to securitize oil services debts Details
8MIDC, ONGC in talks over water treatment project Details
8Reliance Industries close to starting gas production from CBM blocks in MP Details
8Assam to receive pre-discounted crude royalty Details
8Q1 show, monsoon session to set agenda for market this week Details
8Demand growing, but glut persists in oil markets on extra barrels from Iran Details
8India must gear up to utilise a flood of new LNG Details
8Petronet LNG Q1 PAT seen up 20.1% to Rs 287.4 cr: Religare Details
8South China Sea tensions will not deter offshore pursuits: OVL Details
8GLOBAL LNG: Tenders, outages and short-covering drive Asian prices Details
8Domestic sales offsetting RIL export slump Details
8Reliance Industries clubs petrol pumps with retail arm Details
8India needs Integrated LNG Policy Details
You can also click on Newsclips for more Details
For reference purposes, the website carries here the following details:
8A compilation of crude price projections for the next five years
8World's biggest energy companies in 2016
8World's top 10 producing countries
8Top 10 oil reserves countries
8Top 10 consuming countries
8Distribution of provided oil reserves in 2005, 2010 and 2015
Click on Reports for more Details
8A compilation of crude price projections for the next five years
8World's biggest energy companies in 2016
8World's top 10 producing countries
8Top 10 oil reserves countries
8Top 10 consuming countries
8Distribution of provided oil reserves in 2005, 2010 and 2015
Click on Reports for more Details
Know more about Utpal Bora,a former Mehsana asset manager in ONGC who has been selected to head Oil India Ltd.
8Bora had worked in the Sibsagar fields of ONGC
8He was also in charge of OVL's Venezuelan assets
8As Asset Manager Mehsana, he led a team of about 2300 engineers and technicians to sustain production from about 1800 operating wells, 7 drilling and 20 workover rigs, and 38 surface installations. About about 80 exploratory and development wells were drilled per year in the asset.
8That's a lot of experience that Oil India can make use of
Click on Reports for more Details
8Bora had worked in the Sibsagar fields of ONGC
8He was also in charge of OVL's Venezuelan assets
8As Asset Manager Mehsana, he led a team of about 2300 engineers and technicians to sustain production from about 1800 operating wells, 7 drilling and 20 workover rigs, and 38 surface installations. About about 80 exploratory and development wells were drilled per year in the asset.
8That's a lot of experience that Oil India can make use of
Click on Reports for more Details
Keller is one company that provides the full range of piling, earth retention, specialty grouting, ground improvement, anchors, nails and micropiles, and post-tension concrete services for planned and existing LNG facilities.
8Planned LNG storage facilities require ground improvement to increase soil bearing capacities and control settlements, deep foundations to transfer loads to competent bearing strata, or drainage to accelerate consolidation of saturated soils before construction.
8Existing facilities may require remedial work when structures experience excessive settlement or additions increase loads beyond the foundation’s capacity.
Click on Reports to find out more on the kind of work the company is currently doing with Indian LNG players Details
8Planned LNG storage facilities require ground improvement to increase soil bearing capacities and control settlements, deep foundations to transfer loads to competent bearing strata, or drainage to accelerate consolidation of saturated soils before construction.
8Existing facilities may require remedial work when structures experience excessive settlement or additions increase loads beyond the foundation’s capacity.
Click on Reports to find out more on the kind of work the company is currently doing with Indian LNG players Details
The government has listed out the steps it has taken internationally to enhance India's energy security.
Details are carried here in terms of:
8Lobbying for India's point of view in meetings of international organizations
8Bilateral energy meetings and how India pushed its own agenda
8Tapi gas pipeline project
8International solar alliances
8Other company specific meetings
Click on Reports for more Details
Details are carried here in terms of:
8Lobbying for India's point of view in meetings of international organizations
8Bilateral energy meetings and how India pushed its own agenda
8Tapi gas pipeline project
8International solar alliances
8Other company specific meetings
Click on Reports for more Details
For reference purposes, the website carries here the cost of production of all major global oil assets.
These assets include:
8US shale oil
8Canandian oil sands
8Onshore non-OPEC
8Deepwater non-OPEC
8African offshore
8Unless costs come down further, the $60 mark will see only a partial development of global deepwater assets.
Click on Reports for more Details
These assets include:
8US shale oil
8Canandian oil sands
8Onshore non-OPEC
8Deepwater non-OPEC
8African offshore
8Unless costs come down further, the $60 mark will see only a partial development of global deepwater assets.
Click on Reports for more Details
That's a question that Indian Oil Marketing Companies may be eagerly looking for an answer to.
8Well, the business will be different from what it is today.
8New technologies will disrupt established ways of doing business.
8Commuting will undergo dramatic changes as transportation demand will go down
8Fuel choices will diversify.
8Consumers will expect greater convenience
What should be the survival strategy for 2030? The keys ways to cope will be to:
8Have good information tools as the changes will be sudden and dramatic.
8Collaborate and innovate
8Improve agility and speed.
Will slowly moving Indian OMCs be able to keep up?
Click on Details for more Details
8Well, the business will be different from what it is today.
8New technologies will disrupt established ways of doing business.
8Commuting will undergo dramatic changes as transportation demand will go down
8Fuel choices will diversify.
8Consumers will expect greater convenience
What should be the survival strategy for 2030? The keys ways to cope will be to:
8Have good information tools as the changes will be sudden and dramatic.
8Collaborate and innovate
8Improve agility and speed.
Will slowly moving Indian OMCs be able to keep up?
Click on Details for more Details
There has been sharp cost cutting in the global oil and gas industry.
8Global breakeven costs have fallen by $19/bbl to the current weighted average of $ 51/bb since the peak in 2014.
8Costs have fallen by $8/bbl over the past 12 months.
8At $60/bbl, a large amount of new production -- amounting to 9 million barrels per day (b/d) -- will be on stream by 2025.
8New US tight oil drilling picks up the slack, accounting for 60% of the volumes which are commercial at US$60/bbl. Productivity improvements and cost deflation have made tight oil production more economically viable in the key growth plays.
8The point to note however is that the world needs 20 million b/d to be developed by 2025 to offset production declines from existing fields and meet future demand growth.
8This will require a higher contribution from deepwater fields which will not be possible at $60/bbl, implying that deepwater production costs will have to come down further in the months and years ahead.
Click on Details for more Details
8Global breakeven costs have fallen by $19/bbl to the current weighted average of $ 51/bb since the peak in 2014.
8Costs have fallen by $8/bbl over the past 12 months.
8At $60/bbl, a large amount of new production -- amounting to 9 million barrels per day (b/d) -- will be on stream by 2025.
8New US tight oil drilling picks up the slack, accounting for 60% of the volumes which are commercial at US$60/bbl. Productivity improvements and cost deflation have made tight oil production more economically viable in the key growth plays.
8The point to note however is that the world needs 20 million b/d to be developed by 2025 to offset production declines from existing fields and meet future demand growth.
8This will require a higher contribution from deepwater fields which will not be possible at $60/bbl, implying that deepwater production costs will have to come down further in the months and years ahead.
Click on Details for more Details
The supply chain for the oil and gas industry is likely to become "driverless" within the next 10 years.
8What should companies like ONGC and OIL do in the interim to improve the lagging productivity in their complex supply chains?
8One suggestion is to follow the route taken in other industries (e.g., consumer products, electronics) and invest in decision support tools that have helped companies solve complex problems.
8Rather than seeing a series of narrowly defined departments (e.g., sourcing, production, transportation), companies will have to look at how decision support tools can optimize performance of more than one function at a time.
8But then again, care has to be taken not to put too much money just in IT systems that are large and ultimately may need to be scrapped with the emergence of highly automated, Artificial Intelligence-powered systems.
8The "driverless" supply change will also have a dramatic ramification on the workforce of these public sector companies.
8New operating models will have to be found.
Click on Details for more Details
8What should companies like ONGC and OIL do in the interim to improve the lagging productivity in their complex supply chains?
8One suggestion is to follow the route taken in other industries (e.g., consumer products, electronics) and invest in decision support tools that have helped companies solve complex problems.
8Rather than seeing a series of narrowly defined departments (e.g., sourcing, production, transportation), companies will have to look at how decision support tools can optimize performance of more than one function at a time.
8But then again, care has to be taken not to put too much money just in IT systems that are large and ultimately may need to be scrapped with the emergence of highly automated, Artificial Intelligence-powered systems.
8The "driverless" supply change will also have a dramatic ramification on the workforce of these public sector companies.
8New operating models will have to be found.
Click on Details for more Details
Among the countries which hold an advantage is Brazil, with its highly prospective ultra deepwater asssets
8They break even at $50/bbl
Among those that are going to be hard hit are:
8Angola
8Nigeria
8US Gulf of Mexico.
8It is important to note that only 20% of volumes at US$60/bbl comes from deep and ultra-deepwater
8The only way out will be another round of cost cutting in the deepwater industry.
Click on Details for more Details
8They break even at $50/bbl
Among those that are going to be hard hit are:
8Angola
8Nigeria
8US Gulf of Mexico.
8It is important to note that only 20% of volumes at US$60/bbl comes from deep and ultra-deepwater
8The only way out will be another round of cost cutting in the deepwater industry.
Click on Details for more Details
After the spurt in LNG price, the latest cargo to land in India is priced at $ 5.63/mmbtu.
8This bring down the average LNG price over the last seven days, when it ranged between $6.02/mmbtu to $6.67/mmbtu.
8The $ 5.63/mmbtu cargo was delivered from Angola LNG
8High price volatility is noticed in this segment
8Prices are unlikely to stabilize as demand-supply forces in the LNG market conflict with the tightening of crude and Henry Hub gas prices
Click on Details for more Details
8This bring down the average LNG price over the last seven days, when it ranged between $6.02/mmbtu to $6.67/mmbtu.
8The $ 5.63/mmbtu cargo was delivered from Angola LNG
8High price volatility is noticed in this segment
8Prices are unlikely to stabilize as demand-supply forces in the LNG market conflict with the tightening of crude and Henry Hub gas prices
Click on Details for more Details
RIL appears to be highly aggrieved by the petroleum ministry's recent clarification that the one-member Justice AP Shah Committee will also arbitrate on the extent of damages to be awarded to ONGC for loss of production from the migration of gas from ONGC-held gas blocks to adjacent RIL fields.
8Shah had earlier said that the issue of compensation should be addressed in another forum but the government has clarified that arriving at the quantum of compensation is also within the ambit of the committee
8RIL continues to maintain that the Shah Committee does not have the authority to fix compensation and it will seek remedy in appropriate forums should the need arise.
Click on Details for more Details
8Shah had earlier said that the issue of compensation should be addressed in another forum but the government has clarified that arriving at the quantum of compensation is also within the ambit of the committee
8RIL continues to maintain that the Shah Committee does not have the authority to fix compensation and it will seek remedy in appropriate forums should the need arise.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Procurement of Mobile Oil Spill Recovery Unit at Manglya [BPCL] Details
8Carrying out Catalyst Replacement jobs in DHDS Block at BPCL-Kochi Refinery [BPCL] Details
8Carrying out Offshore Survey of Mumbai Uran LPG Pipeline, Mumbai Refinery [BPCL] Details
8Supply of Portable Multi-Frequency Utility Locator for underground cable and pipelines, Mathura Refinery [IOC] Details
8Carrying out Sustainability Study for CSR Projects, Barauni Oil Refinery [IOC] Details
8Supply of Online Corrosion Monitoring Systems, Mathura Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Aim of bidding for small fields is to boost production: Pradhan Details
8No diesel auto-rickshaws in Kochi and Kozhikode, only CNG/LPG permits Details
8CNG firms plan service centres in Kochi Details
8Oil rises after big losses, glut concerns likely to persist Details
8ONGC, OIL hit by 48-hour oil blockade Details
8Japan regulator investigating LNG shipping restrictions: Bloomberg Details
8Tripura asks IOC to dispatch fuel by freight train Details
8Kerosene price hike positive signal on reforms: Report Details
8RIL likely to report 2% YoY growth in Q1 standalone net profit: Survey Details
8Earnings growth of RIL may take a hit on the back of falling global refining margins Details
8‘No gas shortage, matter sorted’ Details
8India's Official Wholesale Price Index for all commodities for June published Details
8Essar Oil in talks with overseas oil firms to sell 23.5% stake Details
8Oil rebounds as investors join global market rally Details
8India, China oil firms should cooperate in Africa: Chinese media Details
8OVL eyes up to $1.1 billion through dollar bonds for Vankor deal Details
8ONGC seeks buyers for deep-water field in KG Basin Details
8Essar's Raniganj (East) Block becomes first CBM to cross 1m scmd production Details
You can also click on Newsclips for more Details
8Procurement of Mobile Oil Spill Recovery Unit at Manglya [BPCL] Details
8Carrying out Catalyst Replacement jobs in DHDS Block at BPCL-Kochi Refinery [BPCL] Details
8Carrying out Offshore Survey of Mumbai Uran LPG Pipeline, Mumbai Refinery [BPCL] Details
8Supply of Portable Multi-Frequency Utility Locator for underground cable and pipelines, Mathura Refinery [IOC] Details
8Carrying out Sustainability Study for CSR Projects, Barauni Oil Refinery [IOC] Details
8Supply of Online Corrosion Monitoring Systems, Mathura Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Aim of bidding for small fields is to boost production: Pradhan Details
8No diesel auto-rickshaws in Kochi and Kozhikode, only CNG/LPG permits Details
8CNG firms plan service centres in Kochi Details
8Oil rises after big losses, glut concerns likely to persist Details
8ONGC, OIL hit by 48-hour oil blockade Details
8Japan regulator investigating LNG shipping restrictions: Bloomberg Details
8Tripura asks IOC to dispatch fuel by freight train Details
8Kerosene price hike positive signal on reforms: Report Details
8RIL likely to report 2% YoY growth in Q1 standalone net profit: Survey Details
8Earnings growth of RIL may take a hit on the back of falling global refining margins Details
8‘No gas shortage, matter sorted’ Details
8India's Official Wholesale Price Index for all commodities for June published Details
8Essar Oil in talks with overseas oil firms to sell 23.5% stake Details
8Oil rebounds as investors join global market rally Details
8India, China oil firms should cooperate in Africa: Chinese media Details
8OVL eyes up to $1.1 billion through dollar bonds for Vankor deal Details
8ONGC seeks buyers for deep-water field in KG Basin Details
8Essar's Raniganj (East) Block becomes first CBM to cross 1m scmd production Details
You can also click on Newsclips for more Details
The uncertainty range is also wide for crude prices.
8The forecast is that Brent and WTI crude prices will average $44/b in 2016 and $52/b in 2017.
8However, the current values of futures and options contracts suggest high uncertainty in the price outlook.
8The EIA for example has forecasted the average crude price in October 2016 of $48/b
8But contracts traded during the five-day period ending July 7 suggest the market expects the crude price to range between $35/b to $67/b (at the 95% confidence interval) in October 2016.
8Clearly the bottle is half full or half empty depending on how you look at it.
8Nothing is predictable about how crude and gas prices are going to behave in the months ahead.
8Uncertainty seems to be the only constant.
Click on Reports for more Details
8The forecast is that Brent and WTI crude prices will average $44/b in 2016 and $52/b in 2017.
8However, the current values of futures and options contracts suggest high uncertainty in the price outlook.
8The EIA for example has forecasted the average crude price in October 2016 of $48/b
8But contracts traded during the five-day period ending July 7 suggest the market expects the crude price to range between $35/b to $67/b (at the 95% confidence interval) in October 2016.
8Clearly the bottle is half full or half empty depending on how you look at it.
8Nothing is predictable about how crude and gas prices are going to behave in the months ahead.
8Uncertainty seems to be the only constant.
Click on Reports for more Details
While the long term outlook is bearish for LNG prices because of an upsurge of liquefaction capacity out of Australia and the US, the current tightening in prices is a result of an increase in the price of crude oil and a rise in Henry Hub spot gas price.
8Oil indexed LNG price is on the rise because of higher crude prices.
8The Henry Hub natural gas spot price too averaged $2.59/MMBtu in June 2016, up a very significant $ 0. 67/mmbtu from the average price in May.
8The projection by the EIA is that natural gas prices will gradually rise to $2.95/mmbtu in 2017.
8But the uncertainty in the market is reflected by the fact that the current options and futures prices place the lower and upper bounds for the 95% confidence interval for October 2016 contracts at $2.00/MMBtu and $4.14/MMBtu, respectively.
8That's quite a range.
Click on Reports for more Details
8Oil indexed LNG price is on the rise because of higher crude prices.
8The Henry Hub natural gas spot price too averaged $2.59/MMBtu in June 2016, up a very significant $ 0. 67/mmbtu from the average price in May.
8The projection by the EIA is that natural gas prices will gradually rise to $2.95/mmbtu in 2017.
8But the uncertainty in the market is reflected by the fact that the current options and futures prices place the lower and upper bounds for the 95% confidence interval for October 2016 contracts at $2.00/MMBtu and $4.14/MMBtu, respectively.
8That's quite a range.
Click on Reports for more Details
A business development opportunity has arisen in a refinery for 3 LSTK packages. The packages are:
8A main 80 TPH pet-coke boiler package, involving a boiler and ESP, including mechanical, civil, electrical as well as instrumentation and control
8Pet coke handling, crushing and conveying, lime stone handling, bed material handling and ash handling system
8Balance of plant equipment
8The cost of the packages is estimated at Rs 132 crore.
8RFQs are likely soon.
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8A main 80 TPH pet-coke boiler package, involving a boiler and ESP, including mechanical, civil, electrical as well as instrumentation and control
8Pet coke handling, crushing and conveying, lime stone handling, bed material handling and ash handling system
8Balance of plant equipment
8The cost of the packages is estimated at Rs 132 crore.
8RFQs are likely soon.
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GE Shipping is clearly taking advantage of the currently depressed rates to acquire more vessels.
8The second hand and new building market have been going at a big discount since the beginning of 2016.
8There is huge over capacity and several ports have to be bailed out from bankruptcy.
8But situation is looking up and rates cannot stay down for too long.
8Orders are coming in. The HNA Group last week placed an order last week for four firm plus four optional VLCCs (300,000dwt) at Jinhai HI, in China, for a price in the region of $ 80.0m each and delivery set in 2018-2019.
8This is as good a time as any for the Indian shipping industry to acquire more capacity in the tanker segment.
8The dry bulk market however continues to remain subdued and is likely to stay so for some time to come.
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8The second hand and new building market have been going at a big discount since the beginning of 2016.
8There is huge over capacity and several ports have to be bailed out from bankruptcy.
8But situation is looking up and rates cannot stay down for too long.
8Orders are coming in. The HNA Group last week placed an order last week for four firm plus four optional VLCCs (300,000dwt) at Jinhai HI, in China, for a price in the region of $ 80.0m each and delivery set in 2018-2019.
8This is as good a time as any for the Indian shipping industry to acquire more capacity in the tanker segment.
8The dry bulk market however continues to remain subdued and is likely to stay so for some time to come.
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Consumption of liquid industrial fuels, naphtha and FO, continues to exude high double digit growth.
8Naphtha consumption was up 15.55% in June, 2016 in relation to the same month last year
8FO/LSHS offtake too was up 17% in June
8In comparison to May, 2016 however, consumption growth was much slower.
8Naphtha offtake was up 1.8% in June over May.
8FO/LSHS consumption was lower by 4.7%
8Overall too, consumption of petroleum products was up 6.17%, ead by growth in liquid industrial fuels as well as by a 10% rise in ATF and bitumen consumption in June, 2016 over the same month in the previous year.
8Overall consumption of petroleum products grew by 6.19% but when compared to May, 2016, overall consumption was lower by a 5.7% in June, 2016.
8If the impact of the outbreak of monsoons could be a good reason for the slowdown, better rains in July would further slow down consumption.
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8Naphtha consumption was up 15.55% in June, 2016 in relation to the same month last year
8FO/LSHS offtake too was up 17% in June
8In comparison to May, 2016 however, consumption growth was much slower.
8Naphtha offtake was up 1.8% in June over May.
8FO/LSHS consumption was lower by 4.7%
8Overall too, consumption of petroleum products was up 6.17%, ead by growth in liquid industrial fuels as well as by a 10% rise in ATF and bitumen consumption in June, 2016 over the same month in the previous year.
8Overall consumption of petroleum products grew by 6.19% but when compared to May, 2016, overall consumption was lower by a 5.7% in June, 2016.
8If the impact of the outbreak of monsoons could be a good reason for the slowdown, better rains in July would further slow down consumption.
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The furious rate of growth in consumption of MS and HSD has slowed down dramatically in June 2016.
8MS consumption grew by 4.4% in June in comparison to the same month in the previous year.
8Similarly growth in consumption of HSD slowed down to 1.50%.
8More importantly, there was a sharp fall in consumption of both MS and HSD in June compared to May 2016.
8MS consumption fell 11.5% while HSD offtake was down 1.5%
8It is not fully clear what explains the fall in consumption. It is likely that the onset of the monsoon must have slowed down the transportation sector, leading to a fall in consumption.
8Or is this part of a larger story or a change in trend?
8Only time will tell how the consumption story pans out in the months ahead.
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8MS consumption grew by 4.4% in June in comparison to the same month in the previous year.
8Similarly growth in consumption of HSD slowed down to 1.50%.
8More importantly, there was a sharp fall in consumption of both MS and HSD in June compared to May 2016.
8MS consumption fell 11.5% while HSD offtake was down 1.5%
8It is not fully clear what explains the fall in consumption. It is likely that the onset of the monsoon must have slowed down the transportation sector, leading to a fall in consumption.
8Or is this part of a larger story or a change in trend?
8Only time will tell how the consumption story pans out in the months ahead.
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The Great Eastern Shipping Company Limited (GE Shipping) signed a contract to buy a Medium Range Product Tanker of about 48,539 dwt.
8The 2005 Japanese built vessel is expected to join the Company’s fleet in Q2 FY17.
8The Company’s current fleet stands at 33 vessels, comprising 23 tankers (7 crude carriers, 14 product tankers, 2 LPG carrier) and 10 dry bulk carriers (5 Kamsarmax, 5 Supramax) with an average age of 9.97 years aggregating 2.48 mn dwt.
8Additionally, the company has 3 Newbuilding Kamsarmaxes and 1 secondhand Capesize Bulk Carrier on order.
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8The 2005 Japanese built vessel is expected to join the Company’s fleet in Q2 FY17.
8The Company’s current fleet stands at 33 vessels, comprising 23 tankers (7 crude carriers, 14 product tankers, 2 LPG carrier) and 10 dry bulk carriers (5 Kamsarmax, 5 Supramax) with an average age of 9.97 years aggregating 2.48 mn dwt.
8Additionally, the company has 3 Newbuilding Kamsarmaxes and 1 secondhand Capesize Bulk Carrier on order.
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Another concept that is now gaining traction is the use of a single offshore platform as a hub for subsea tiebacks.
8Currently, the tiebacks are within 10 to 15 miles from the hub
8But technology is moving fast and advances in engineering will make using longer tiebacks more feasible.
8The current tieback record is 43 miles for oil and 93 miles for gas.
8In the KG Basin too, a single platform can have a large hinterland of subsea tie backs
8The website has been an enthusiastic supporter of a collaborative model in the KG Basin, particularly given RIL's large spare capacity in the area.
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8Currently, the tiebacks are within 10 to 15 miles from the hub
8But technology is moving fast and advances in engineering will make using longer tiebacks more feasible.
8The current tieback record is 43 miles for oil and 93 miles for gas.
8In the KG Basin too, a single platform can have a large hinterland of subsea tie backs
8The website has been an enthusiastic supporter of a collaborative model in the KG Basin, particularly given RIL's large spare capacity in the area.
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The bet is that India's offshore KG Basin blocks will see a lot of development activity in the months and years ahead.
8It is in this context that operators will need to keep abreast of the latest technological developments so that costs are under control.
8LNG prices are likely to remain competitive and they will serve as ceiling prices for KG Basin gas.
8It is in correspondence with these ground realities that operators will have to keep an eye on futuristic and nimble technologies which are now going mainstream.
8One such idea is the “Long Reach Well Concept” that involves drilling wells up to 30 km long (18.5 miles) from a platform. This is about twice the length of the current record-holding wells drilled by ExxonMobil in offshore Sakhalin in Russia.
8The long reach concept is a perfect fit for automated drilling technologies. Because the operation is methodically paced, pipe handling could easily be done by a robot. Automated systems to control managed pressure drilling and continuous circulation will also be needed.
8Can existing platforms in KG Basin be modified to drill long reach wells? If so are there benefits to be reaped?
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8It is in this context that operators will need to keep abreast of the latest technological developments so that costs are under control.
8LNG prices are likely to remain competitive and they will serve as ceiling prices for KG Basin gas.
8It is in correspondence with these ground realities that operators will have to keep an eye on futuristic and nimble technologies which are now going mainstream.
8One such idea is the “Long Reach Well Concept” that involves drilling wells up to 30 km long (18.5 miles) from a platform. This is about twice the length of the current record-holding wells drilled by ExxonMobil in offshore Sakhalin in Russia.
8The long reach concept is a perfect fit for automated drilling technologies. Because the operation is methodically paced, pipe handling could easily be done by a robot. Automated systems to control managed pressure drilling and continuous circulation will also be needed.
8Can existing platforms in KG Basin be modified to drill long reach wells? If so are there benefits to be reaped?
Click on Reports for more Details
