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Jul 2015
The production of BPCL's Kochi refinery is likely to fall down as the company is planning for turnaround of its Reactor-Regenerator System (RRS) and the Crude Distillation Unit (CDU).
8The turnaround is planned in the last week of September 2015 and it will last for a month.
8As part of the turnaround, the company will carry out Maintenance and Inspection (M&I) of reactor, regenerators and heaters at the complex.
8While M&I of the reactor and the RRS will include hexmesh welding, abrasion resistant refractory works as well as cyclone, riser, toricone, gunniting and regenerator duct repair works, the M&I of heaters will include heater alloy steel tube replacement work, heater carbon steel tube replacement work, heater hydro testing, heater ceramic blanket refractory works, heater castable refractory works, piping welding, TOFD/ RT, pad based stress relieving, heater casing replacement, heater patch repairs, refractory repair works, column works, vessel works, exchanger works, exchanger retubing, spring support works and relief valve works.
8Turnaround will have a high impact on the production output at the refinery as the Crude Distillation Unit-1 (CDU-1) with an annual output of 4.5 million tons will be shut down for a month.
8The turnaround is likely to increase the equipment asset reliability and the continued production integrity. It will also reduce the risk of unscheduled outages or catastrophic failures.
8BPCL has floated a tender for the turnaround jobs of the process units – RRS and CDU-1 -- whose last date is August 10, 2015. Details
8The turnaround is planned in the last week of September 2015 and it will last for a month.
8As part of the turnaround, the company will carry out Maintenance and Inspection (M&I) of reactor, regenerators and heaters at the complex.
8While M&I of the reactor and the RRS will include hexmesh welding, abrasion resistant refractory works as well as cyclone, riser, toricone, gunniting and regenerator duct repair works, the M&I of heaters will include heater alloy steel tube replacement work, heater carbon steel tube replacement work, heater hydro testing, heater ceramic blanket refractory works, heater castable refractory works, piping welding, TOFD/ RT, pad based stress relieving, heater casing replacement, heater patch repairs, refractory repair works, column works, vessel works, exchanger works, exchanger retubing, spring support works and relief valve works.
8Turnaround will have a high impact on the production output at the refinery as the Crude Distillation Unit-1 (CDU-1) with an annual output of 4.5 million tons will be shut down for a month.
8The turnaround is likely to increase the equipment asset reliability and the continued production integrity. It will also reduce the risk of unscheduled outages or catastrophic failures.
8BPCL has floated a tender for the turnaround jobs of the process units – RRS and CDU-1 -- whose last date is August 10, 2015. Details
The Petroleum & Natural Gas Regulatory Board (PNGRB) has decided to lay a petroleum products pipeline from the Ennore Port (Chennai) to the Manali Industrial Area to facilitate transportation of petroleum products
8The length of the pipeline, spanning about 14 kms, will have a system capacity of at least 1.0 MMTPA, including common carrier capacity available for any third party on open access and non-discriminatory basis.
8The proposed pipeline would be used for transporting at least two grades of Motor Spirit, High Speed Diesel (Euro-III, Euro-IV and any other higher quality grade that may be specified or mandated to be supplied in future) Naptha, Furnace Oil and Vacuum Gas Oil (VGO), among others.
8An EOI for this pipeline has already been floated by the PNGRB. The last date for purchase of bid document and bid submission date have been extended by the regulator. While bid documents can now be purchased before August 18, 2015 (by 1500 hrs), the last date for submission of documents has been extended from July 27, 2015, to August 25, 2015 (by 1200 hrs).
8A route map, along with other details, of the pipeline is also carried by the website.
Click here for more Details
8The length of the pipeline, spanning about 14 kms, will have a system capacity of at least 1.0 MMTPA, including common carrier capacity available for any third party on open access and non-discriminatory basis.
8The proposed pipeline would be used for transporting at least two grades of Motor Spirit, High Speed Diesel (Euro-III, Euro-IV and any other higher quality grade that may be specified or mandated to be supplied in future) Naptha, Furnace Oil and Vacuum Gas Oil (VGO), among others.
8An EOI for this pipeline has already been floated by the PNGRB. The last date for purchase of bid document and bid submission date have been extended by the regulator. While bid documents can now be purchased before August 18, 2015 (by 1500 hrs), the last date for submission of documents has been extended from July 27, 2015, to August 25, 2015 (by 1200 hrs).
8A route map, along with other details, of the pipeline is also carried by the website.
Click here for more Details
GAIL Gas Ltd, the company developing a City Gas Distribution (CGD) network in the geographical area (GA) of Meerut (Uttar Pradesh), is planning to lay down underground steel pipelines of various sizes (6”& 4” dia).
8The pipeline laying work will include construction and quality management, survey and clearing of ROU (wherever required), grading, stringing, bending, welding, trenching, lowering and crossings. Tie-ins, NDT and destructive testing, backfilling, laying of HDPE ducts (wherever required), site restoration, hydrotesting, dewatering and drying will also form the scope of work.
8Not only this, the work will also include pre-commissioning, commissioning and gas-in of pipeline, including construction, installation of related facilities like DRS, MRS at the consumer ends and metering skids at various locations.
8The work is expected to finish in about 18 months.
8The company has floated a tender for laying and construction of underground steel pipeline network and associated works for the Meerut area.
8The tender closing date is August 6, 2015. Details
8The pipeline laying work will include construction and quality management, survey and clearing of ROU (wherever required), grading, stringing, bending, welding, trenching, lowering and crossings. Tie-ins, NDT and destructive testing, backfilling, laying of HDPE ducts (wherever required), site restoration, hydrotesting, dewatering and drying will also form the scope of work.
8Not only this, the work will also include pre-commissioning, commissioning and gas-in of pipeline, including construction, installation of related facilities like DRS, MRS at the consumer ends and metering skids at various locations.
8The work is expected to finish in about 18 months.
8The company has floated a tender for laying and construction of underground steel pipeline network and associated works for the Meerut area.
8The tender closing date is August 6, 2015. Details
BPCL has planned to revamp its aging storage installation at Budge Budge, West BengaL at a cost of Rs 130 crore. The project envisages dismantling of all above ground and underground tanks and installation of new tanks along with allied facilities like a new TLF gantry, new Fire water tanks and other safety arrangements.
8The POL terminal of BPCL at Budge Budge is provided with storage tanks for Class A & B petroleum products. MS and Ethanol comes under Class-A ( flash point below 23 degree) whereas HSD and SKO comes under Class-B category ( Flash point of between 23-65 degree).
8Two above ground tanks are proposed for each product. The products are HSD,ATF,MS and SKO and their respective capacities are 8197kL,4241kL,6107kL and 1683kL respectively.
8Along with this FO and LDO will be stored in tanks with a storage capacity of 4241kL.
8Automatic operations will be preformed by the valves on storage tanks when the product level reaches full capacity to curb down leakages and accidents.
8 A Remote Operated shut-off Valve (RSOV) will be installed to further enhance safety.
Click on Report for more. Details
8The POL terminal of BPCL at Budge Budge is provided with storage tanks for Class A & B petroleum products. MS and Ethanol comes under Class-A ( flash point below 23 degree) whereas HSD and SKO comes under Class-B category ( Flash point of between 23-65 degree).
8Two above ground tanks are proposed for each product. The products are HSD,ATF,MS and SKO and their respective capacities are 8197kL,4241kL,6107kL and 1683kL respectively.
8Along with this FO and LDO will be stored in tanks with a storage capacity of 4241kL.
8Automatic operations will be preformed by the valves on storage tanks when the product level reaches full capacity to curb down leakages and accidents.
8 A Remote Operated shut-off Valve (RSOV) will be installed to further enhance safety.
Click on Report for more. Details
The Iranians are not known to take decisions on matters involving foreign investment in their oil & gas sector unless they are pushed into a corner.
8A fear that strategic rival Saudi Arabia will steal a march on their side of the overlapping Farzad B offshore field is likely to send Iran scurrying to quickly finalize a deal for developing the Iranian side of the block. Saudi Arabia has already begun development on its side of the field.
8The Iranians would want any partner to begin work as soon as possible lest the Saudis steal a march and begin siphoning gas from this gigantic field.
8The Iranians had at one point in time said that while OVL was pussyfooting on the block, Saudi Arabia was taking advantage of the hydrocarbon resources lying on their side of the block. The Farsi block, covering an area of 3,500 aq. km, is located approximately 90 km off the shore of Iran in the Persian Gulf, close to the offshore boundary with Saudi Arabia, with sea depth varying from 20 m to 90 m. The Saudi side of the block is also meant to be hydrocarbon rich and the country is already tapping the reservoir for exploitation.
8There is likely to be a lot of jostling for a slice of the action in the block and it is imperative that OVL positions itself a manner that it is not pushed out of the game Details
8A fear that strategic rival Saudi Arabia will steal a march on their side of the overlapping Farzad B offshore field is likely to send Iran scurrying to quickly finalize a deal for developing the Iranian side of the block. Saudi Arabia has already begun development on its side of the field.
8The Iranians would want any partner to begin work as soon as possible lest the Saudis steal a march and begin siphoning gas from this gigantic field.
8The Iranians had at one point in time said that while OVL was pussyfooting on the block, Saudi Arabia was taking advantage of the hydrocarbon resources lying on their side of the block. The Farsi block, covering an area of 3,500 aq. km, is located approximately 90 km off the shore of Iran in the Persian Gulf, close to the offshore boundary with Saudi Arabia, with sea depth varying from 20 m to 90 m. The Saudi side of the block is also meant to be hydrocarbon rich and the country is already tapping the reservoir for exploitation.
8There is likely to be a lot of jostling for a slice of the action in the block and it is imperative that OVL positions itself a manner that it is not pushed out of the game Details
There is no denying that OVL did agree to a service contract regime to begin with before changing its mind, and then the Iranians reportedly agreed before changing their mind.
8But what was lost in between was valuable time. Now that the world has opened up, India would need Iran more than the other way round. There will clearly be a switch in roles.
Indian wanted a PSC model because the OVL consortium faced are several challenges in developing the Farzad B gas field under a service format, also known as a Development Service Contract (DSC).
8The field has a high pressure-high temperature (HPHT) reservoir and the gas here has high content of H2S and CO2 and, therefore, requires special material and equipment, services and technology that a DSC cannot handle as the risks involved are too large.
8Additional complications have arisen as a result of the US sanctions as well. India`s crude imports from Iran saw a drastic drop and this, according to OVL, had considerably whittled India`s capacity to work in Iran unless a PSC regime is was place.
8Then again OVL was wary of going ahead with the service contract unless all issues are sorted out including finalization of the Internal Rate of Return (IRR), the contractual ceiling rate of return (CROR), an instrument to help in financial closure and cost and remuneration recovery, contours of the joint venture with a national Iranian company, repayments on termination, suitable limitations on the Iranian content in the development work, among others.
8There was also a high cost to working in Iran at that point due to inadequate response from the National Iranian Oil Company (NIOC) on mitigating measures such as making allowance for costs and time overrun as per actuals, waiver from requirement of local content, technology transfer and covering the impact of sanctions under force majeure have led to prolonged negotiations with the Iranian, ultimately leading to the non-finalization of an agreement.
Comment: Clearly, OVL could not have worked under a service contract format. The geological formations in Farzad were complicated and not amenable for development under a service contract. But the point is that at some point the conversation with the Iranians broke down, particularly after the change of government. And OVL should have somehow kept the dialogue on. The problem is that OVL could have elicited a first mover advantage in the block but this is an advantage that will not be available now. Details
8But what was lost in between was valuable time. Now that the world has opened up, India would need Iran more than the other way round. There will clearly be a switch in roles.
Indian wanted a PSC model because the OVL consortium faced are several challenges in developing the Farzad B gas field under a service format, also known as a Development Service Contract (DSC).
8The field has a high pressure-high temperature (HPHT) reservoir and the gas here has high content of H2S and CO2 and, therefore, requires special material and equipment, services and technology that a DSC cannot handle as the risks involved are too large.
8Additional complications have arisen as a result of the US sanctions as well. India`s crude imports from Iran saw a drastic drop and this, according to OVL, had considerably whittled India`s capacity to work in Iran unless a PSC regime is was place.
8Then again OVL was wary of going ahead with the service contract unless all issues are sorted out including finalization of the Internal Rate of Return (IRR), the contractual ceiling rate of return (CROR), an instrument to help in financial closure and cost and remuneration recovery, contours of the joint venture with a national Iranian company, repayments on termination, suitable limitations on the Iranian content in the development work, among others.
8There was also a high cost to working in Iran at that point due to inadequate response from the National Iranian Oil Company (NIOC) on mitigating measures such as making allowance for costs and time overrun as per actuals, waiver from requirement of local content, technology transfer and covering the impact of sanctions under force majeure have led to prolonged negotiations with the Iranian, ultimately leading to the non-finalization of an agreement.
Comment: Clearly, OVL could not have worked under a service contract format. The geological formations in Farzad were complicated and not amenable for development under a service contract. But the point is that at some point the conversation with the Iranians broke down, particularly after the change of government. And OVL should have somehow kept the dialogue on. The problem is that OVL could have elicited a first mover advantage in the block but this is an advantage that will not be available now. Details
A UN resolution that allows the extension of the continental shelf from 200 to 350 nautical miles from the shore may hinder the construction of the SAGE undersea pipeline as the route may fall within waters under Pakistani jurisdiction.
8The UN resolution was adopted in March 2015. Till then, the sea route envisaged by SAGE bypassed Pakistani waters.
8SAGE`s plan envisages picking up gas from Chabahar in Iran and Ra`s-al-Jifan in Oman and bring it to Porbandar in Gujarat.
8The SAGE project hinges on an offshore gas compression station on the Qualhat Seamount (Murray Ridge), about 300 km from the Omani coast. The seamount could now fall under Pakistan`s control and the station can only be set up with Islamabad`s approval.
8But SAGE does not see this as a problem.
8Speaking to IndianpetroPlus, SAGE director Subodh Kumar Jain said that "the extension of the Pakistan`s EEZ will not make any impact on his pipeline plans and at the most the pipeline will have to be shifted 70-80 kms to be kept out of the EEZ."
8Jain was excited about Prime Minister Modi`s suggestion that the Turkman gas can be pipelined to India through Oman. "Bringing gas through a pipeline from Oman is a better option than laying a pipeline through Pakistan or Afghanistan because of the geo-political and security risks. Moreover, the distance from Oman to the Gujarat cost is much less than bringing gas from the offshore KG fields", he said.
8"We are just creating an `Energy Corridor`, which you can also call a `Gas Highway`, for transport of gas and anyone can bring gas through the pipeline. The pipeline will be laid as a `common carrier pipeline` that will provide a readymade gas transportation infrastructure to multiple gas sellers in the Middle East and gas buyers in India. The idea of swapping of gas can also be worked out", said Jain. By Ramesh Joshi Details
8The UN resolution was adopted in March 2015. Till then, the sea route envisaged by SAGE bypassed Pakistani waters.
8SAGE`s plan envisages picking up gas from Chabahar in Iran and Ra`s-al-Jifan in Oman and bring it to Porbandar in Gujarat.
8The SAGE project hinges on an offshore gas compression station on the Qualhat Seamount (Murray Ridge), about 300 km from the Omani coast. The seamount could now fall under Pakistan`s control and the station can only be set up with Islamabad`s approval.
8But SAGE does not see this as a problem.
8Speaking to IndianpetroPlus, SAGE director Subodh Kumar Jain said that "the extension of the Pakistan`s EEZ will not make any impact on his pipeline plans and at the most the pipeline will have to be shifted 70-80 kms to be kept out of the EEZ."
8Jain was excited about Prime Minister Modi`s suggestion that the Turkman gas can be pipelined to India through Oman. "Bringing gas through a pipeline from Oman is a better option than laying a pipeline through Pakistan or Afghanistan because of the geo-political and security risks. Moreover, the distance from Oman to the Gujarat cost is much less than bringing gas from the offshore KG fields", he said.
8"We are just creating an `Energy Corridor`, which you can also call a `Gas Highway`, for transport of gas and anyone can bring gas through the pipeline. The pipeline will be laid as a `common carrier pipeline` that will provide a readymade gas transportation infrastructure to multiple gas sellers in the Middle East and gas buyers in India. The idea of swapping of gas can also be worked out", said Jain. By Ramesh Joshi Details
Jul 20 : Undersea gas pipeline from Middle East to India-I: Modi gives fresh impetus to SAGE's dream
Skeptics had dismissed the South Asia Gas Enterprise Pvt Ltd`s (SAGE`s) dogged efforts to build a deepwater gas pipeline from Oman to India as nothing but a pipedream given the technological and financial challenges that the pipeline will face. But now that the Indian Prime Minister Narendra Modi, on his recent visit to Turkmenistan, suggested that an alternative land-sea route via Iran be considered for transporting Turkmen gas has brought renewed interest on the proposal that SAGE had been promoting for some years now.
8Modi’s pitch involves using an Iran-Oman-India subsea pipeline as a diplomatic gauntlet thrown at Beijing’s April 2015 agreement with Islamabad to construct most of Pakistan’s portion of the Iran-Pakistan (IP) pipeline.
8It is also India’s answer to the pipeline being built from the Pakistan’s Chinese-built Gwadar port to China’s westernmost city of Kashgar in Xinjiang. A subsidiary of the state-owned China National Petroleum Corporation will construct the pipeline financed by a $2 billion Chinese loan, covering 85 percent of the construction cost. Meanwhile, Iran has already built its section of the pipeline to the Pakistani border.
8Pakistan has promised to construct the remaining 80 km of the pipeline from Gwadar to the Iranian border once sanctions end.
8Critical for Beijing, the IP pipeline creates the potential to import Iranian gas via Pakistan through its extension to China’s vast northwestern province of Xinjiang. Home to the restive Uighur minority, Beijing needs reliable gas supplies to rapidly develop the province to secure its integration within China and to establish it as China’s gateway to Central Asia.
8New Delhi’s idea is to construct a deep-water port in the Iranian coastal town of Chabahar, approximately 72 km east of Gwadar, dubbed as the International North-South Transit Corridor (INSTC) initiative.
8The Chabahar port will serve as INSTC’s Indian Ocean outlet. With India’s overland access to Central Asia blocked by Pakistan and China, Chabahar and the INSTC running northward through Iran and Afghanistan will provide India vital access to Central Asian gas markets, enabling India to effectively compete with China. India has had difficulty establishing a position in Central Asian oil and gas production, in part, because of its lack of direct access to the region.
8There is no doubt that the Iran-Oman-India line would immediately and fundamentally alter the pattern of energy exports in the Arabian Sea and with it the geopolitics of the Indian Ocean.
8In this context, long dubbed as a dream, SAGE`s pipeline may in fact get the full backing of the government of India Details
8Modi’s pitch involves using an Iran-Oman-India subsea pipeline as a diplomatic gauntlet thrown at Beijing’s April 2015 agreement with Islamabad to construct most of Pakistan’s portion of the Iran-Pakistan (IP) pipeline.
8It is also India’s answer to the pipeline being built from the Pakistan’s Chinese-built Gwadar port to China’s westernmost city of Kashgar in Xinjiang. A subsidiary of the state-owned China National Petroleum Corporation will construct the pipeline financed by a $2 billion Chinese loan, covering 85 percent of the construction cost. Meanwhile, Iran has already built its section of the pipeline to the Pakistani border.
8Pakistan has promised to construct the remaining 80 km of the pipeline from Gwadar to the Iranian border once sanctions end.
8Critical for Beijing, the IP pipeline creates the potential to import Iranian gas via Pakistan through its extension to China’s vast northwestern province of Xinjiang. Home to the restive Uighur minority, Beijing needs reliable gas supplies to rapidly develop the province to secure its integration within China and to establish it as China’s gateway to Central Asia.
8New Delhi’s idea is to construct a deep-water port in the Iranian coastal town of Chabahar, approximately 72 km east of Gwadar, dubbed as the International North-South Transit Corridor (INSTC) initiative.
8The Chabahar port will serve as INSTC’s Indian Ocean outlet. With India’s overland access to Central Asia blocked by Pakistan and China, Chabahar and the INSTC running northward through Iran and Afghanistan will provide India vital access to Central Asian gas markets, enabling India to effectively compete with China. India has had difficulty establishing a position in Central Asian oil and gas production, in part, because of its lack of direct access to the region.
8There is no doubt that the Iran-Oman-India line would immediately and fundamentally alter the pattern of energy exports in the Arabian Sea and with it the geopolitics of the Indian Ocean.
8In this context, long dubbed as a dream, SAGE`s pipeline may in fact get the full backing of the government of India Details
The following are the basic parameters of the Middle East to India Deep Water Pipeline (MEIDP) project being pursued out by SAGE:
8The pipeline is proposed to bring gas from the Middle East (Qatar, Iran and Turkmenistan) to India.
8The prospective buyers from India would use the MEIDP pipeline to transport the gas sourced from these countries.
8The 27.2 inch pipeline with a thickness of 32.9 - 40.5 mm will start from Chabahar in Iran and touch Ra`s-al-Jifan in Oman and the landfall point in India will be near Porbandar (South Gujarat).
8This pipeline will carry about 31.1 MMSCMD of gas and the maximum depth this pipeline will attain is 3,450 m. The length of the pipeline is approximately 1200 to 1300 kms.
8Project can be set up in 5 years and substantial preparatory work has already been done, and the work continues. Pipeline installation will take approximately 2 years.
8As informed by SAGE , the estimated project cost is around $4 billion.
8Iran has expressed its willingness to cooperate in this project and a draft Framework Agreement has been discussed among prospective gas buyers (GAIL, IOCL & GSPC), NIGEC & SAGE..
8Geophysical Survey of the pipeline route in Arabian Sea to determine the most suitable pipeline route has been completed by SAGE. Details
8The pipeline is proposed to bring gas from the Middle East (Qatar, Iran and Turkmenistan) to India.
8The prospective buyers from India would use the MEIDP pipeline to transport the gas sourced from these countries.
8The 27.2 inch pipeline with a thickness of 32.9 - 40.5 mm will start from Chabahar in Iran and touch Ra`s-al-Jifan in Oman and the landfall point in India will be near Porbandar (South Gujarat).
8This pipeline will carry about 31.1 MMSCMD of gas and the maximum depth this pipeline will attain is 3,450 m. The length of the pipeline is approximately 1200 to 1300 kms.
8Project can be set up in 5 years and substantial preparatory work has already been done, and the work continues. Pipeline installation will take approximately 2 years.
8As informed by SAGE , the estimated project cost is around $4 billion.
8Iran has expressed its willingness to cooperate in this project and a draft Framework Agreement has been discussed among prospective gas buyers (GAIL, IOCL & GSPC), NIGEC & SAGE..
8Geophysical Survey of the pipeline route in Arabian Sea to determine the most suitable pipeline route has been completed by SAGE. Details
An adequacy study of the existing facilities at the Hazira Gas Processing Complex (HGPC) has been carried out by the Institute of Oil & Gas Production Technology (IOGPT) which has suggested certain modifications in the existing plant. Studies conducted at the complex suggested that receipt of black condensate from new fields is likely to disturbed the operations of various downstream units such as the Condensate Fractionation Unit (CFU) and the Kerosene Recover Unit (KRU) leading to inferior product quality.
The following changes have been suggested:
8Condensate Fractionation Unit (CFU)
--It has been proposed to install two horizontal surge vessels for water knock out followed by activated carbon and cartridge filter systems at the inlet of CFUs.
--The upgraded CFU will be able to handle 6722 m3/day of condensate. It will also ensure processing of clean condensate feed in CFUs and also for improving the quality of downstream products.
8Kerosene Recovery Unit (KRU)
--Adequacy study revealed that the required diesel quality cannot be achieved by processing the naphtha column bottom liquid in the existing kerosene column.
Accordingly, two processing options have been worked out by the IOGPT:
--Processing of the entire (4287 m3/day) natural gas liquids (NGL) generated from the CFU in the existing naphtha column of the KRU and then routing of the 920 m3/day of the naphtha column bottom liquid to a new Atmospheric Steam Distillation Column (ASDC).
--Processing of the entire NGL generated from the CFUs in the new ASDC.
8No changes have been suggested in the Gas Sweetening Unit (GSU), the Gas Dehydration Unit (GDU), the Dew Point Depression Unit (DPD) and the Liquefied Petroleum Gas (LPG) plant. Details
The following changes have been suggested:
8Condensate Fractionation Unit (CFU)
--It has been proposed to install two horizontal surge vessels for water knock out followed by activated carbon and cartridge filter systems at the inlet of CFUs.
--The upgraded CFU will be able to handle 6722 m3/day of condensate. It will also ensure processing of clean condensate feed in CFUs and also for improving the quality of downstream products.
8Kerosene Recovery Unit (KRU)
--Adequacy study revealed that the required diesel quality cannot be achieved by processing the naphtha column bottom liquid in the existing kerosene column.
Accordingly, two processing options have been worked out by the IOGPT:
--Processing of the entire (4287 m3/day) natural gas liquids (NGL) generated from the CFU in the existing naphtha column of the KRU and then routing of the 920 m3/day of the naphtha column bottom liquid to a new Atmospheric Steam Distillation Column (ASDC).
--Processing of the entire NGL generated from the CFUs in the new ASDC.
8No changes have been suggested in the Gas Sweetening Unit (GSU), the Gas Dehydration Unit (GDU), the Dew Point Depression Unit (DPD) and the Liquefied Petroleum Gas (LPG) plant. Details
While a part of the produced gas and associated condensate from the Tapti-Daman block is being planned to be taken to the Hazira Gas Processing plant for processing, ONGC has already made plans to take the remaining production (C-Series gas) to the Tapti JV facilities for processing.
8Approval for taking the gas to the Tapti JV facilities for processing is however yet to be approved by the ministry.
8Readers will recall that ONGC has decided to take over the TCPP and TPP platforms from the Tapti JV (where ONGC has a 40% stake and BG and RIL hold 30% each) so that the facilities can be used for processing the additional gas that would be produced from the company`s Tapti-Daman Block or the Daman Development project.
8As the Tapti gas fields have experienced a steep decline in their output, production is likely to cease by the third quarter of 2015, and as per Tapti PSC, the equipment and assets which are no longer required for petroleum operations need to be first offered free of cost to the government or its nominee. The facilities come free of cost as they have already been cost recovered by the JV.
8It was on DGH`s request that ONGC evaluated the option of taking over the Tapti JV facilities for production and processing of gas from its C-series discoveries and agreed to take over only the TCPP and TPP platform facilities.
8Along with the two platform facilities, the E&P major will also take over two spur lines (18" and 20") connected to the South Bassein Hazira Trunk (SBHT) lines (42" and 36") for the Daman development project, subject to the understanding that the abandonment and site restoration of balance facilities (wells, unmanned platforms and infield pipelines within the field which ONGC is not taking over) will be carried out by the PMT JV and adequate funds would be transferred to ONGC that would be required to abandon the facilities which ONGC is taking over. Details
8Approval for taking the gas to the Tapti JV facilities for processing is however yet to be approved by the ministry.
8Readers will recall that ONGC has decided to take over the TCPP and TPP platforms from the Tapti JV (where ONGC has a 40% stake and BG and RIL hold 30% each) so that the facilities can be used for processing the additional gas that would be produced from the company`s Tapti-Daman Block or the Daman Development project.
8As the Tapti gas fields have experienced a steep decline in their output, production is likely to cease by the third quarter of 2015, and as per Tapti PSC, the equipment and assets which are no longer required for petroleum operations need to be first offered free of cost to the government or its nominee. The facilities come free of cost as they have already been cost recovered by the JV.
8It was on DGH`s request that ONGC evaluated the option of taking over the Tapti JV facilities for production and processing of gas from its C-series discoveries and agreed to take over only the TCPP and TPP platform facilities.
8Along with the two platform facilities, the E&P major will also take over two spur lines (18" and 20") connected to the South Bassein Hazira Trunk (SBHT) lines (42" and 36") for the Daman development project, subject to the understanding that the abandonment and site restoration of balance facilities (wells, unmanned platforms and infield pipelines within the field which ONGC is not taking over) will be carried out by the PMT JV and adequate funds would be transferred to ONGC that would be required to abandon the facilities which ONGC is taking over. Details
The timelines for completion of the projects are as under:
8Hand over and transfer of Tapti facilities: January 2016
8Installation of platforms and laying of pipelines: April 2016
8Carrying out of modifications at the Hazira Plant: January 2017
8Drilling and completion of wells: March 2019
8Start of production from first well: April 2016 Details
8Hand over and transfer of Tapti facilities: January 2016
8Installation of platforms and laying of pipelines: April 2016
8Carrying out of modifications at the Hazira Plant: January 2017
8Drilling and completion of wells: March 2019
8Start of production from first well: April 2016 Details
Jul 17 : ONGC's Tapti-Daman block-V: Details of existing facilities at Hazira Gas Processing Complex
The website carries here, for reference purpsoes, details of facilities which are currently being used at the Hazira Gas Processing Complex.
8Gas Sweetening Unit: Installed cpacity 52.5 MMSCMD (Operating capacity 46.9 MMSCMD)
8Sulphur Recovery Unit: 1.06 MMSCMD (0.88 MMSCMD)
8Condensate Fractioning Unit: 12600 M3/day (10800 M3/day)
8Gas Dehydration Unit: 47.3 MMSCMD (41.7 MMSCMD)
8Dew Point Depression: 51.0 MMSCMD (45.5 MMSCMD)
8Liquefied Petroleum Gas Plant: 5.27 MMSCMD, 960 m3/day
8Kerosene Recovery Unit: 3972 MT/day Details
8Gas Sweetening Unit: Installed cpacity 52.5 MMSCMD (Operating capacity 46.9 MMSCMD)
8Sulphur Recovery Unit: 1.06 MMSCMD (0.88 MMSCMD)
8Condensate Fractioning Unit: 12600 M3/day (10800 M3/day)
8Gas Dehydration Unit: 47.3 MMSCMD (41.7 MMSCMD)
8Dew Point Depression: 51.0 MMSCMD (45.5 MMSCMD)
8Liquefied Petroleum Gas Plant: 5.27 MMSCMD, 960 m3/day
8Kerosene Recovery Unit: 3972 MT/day Details
In the Tapti Daman bock of Mumbai Offshore Basin several marginal gas fields are discovered. The Gas initial in place of ONGC fields in nomination blocks in Tapti Daman Block (as on April 1, 2014) are 152.6 BCM (66.72 BCM in Proved Category, 36.54 BCM in Probable Category and 49.33 BCM in Possible Category).
8The C-Series and B-12 fields are being developed in different phases. While the C- 24 Cluster Development project is on production, the C-26 Cluster Development project is currently under implementation.
8ONGC is in the process of acquiring land at Kelwa-Mahim, Palghar (Maharashtra) for setting up a new onshore terminal for processing gas from the Daman Development Project.
8Not only this, if the production from the nearby fields is taken into consideration, the total production will go much higher. The expected production potential from the nearby fields is estimated at: B-12-17 (1.5-2.0 MMSCMD), CA&SD (1.0 MMSCMD), B-9-1&3 (1.0 MMSCMD), Block MB-OSN-2005/1 (4-5 MMSCMD) and C-37, NMT and C-23 (0.5-0.6 MMSCMD).
8These fields are expected to be developed in the next phase around 2020, based on the detailed reservoir characterization. Details
8The C-Series and B-12 fields are being developed in different phases. While the C- 24 Cluster Development project is on production, the C-26 Cluster Development project is currently under implementation.
8ONGC is in the process of acquiring land at Kelwa-Mahim, Palghar (Maharashtra) for setting up a new onshore terminal for processing gas from the Daman Development Project.
8Not only this, if the production from the nearby fields is taken into consideration, the total production will go much higher. The expected production potential from the nearby fields is estimated at: B-12-17 (1.5-2.0 MMSCMD), CA&SD (1.0 MMSCMD), B-9-1&3 (1.0 MMSCMD), Block MB-OSN-2005/1 (4-5 MMSCMD) and C-37, NMT and C-23 (0.5-0.6 MMSCMD).
8These fields are expected to be developed in the next phase around 2020, based on the detailed reservoir characterization. Details
ONGC has decided to tap solar energy to process crude oil at its North Kadi Group Gathering Station (GGS-IV), Mehsana, Gujarat.
8GGS is an installation in oil industry where well fluids (Crude oil + water + associated gas) from various wells is gathered and aggregated for initial processing and making it suitable for further transportation. Initial processing involves separation of gas and raising the temperature of liquid to enable better separation of oil and water and breaking of oil-water emulsion.
8Presently, the E&P major uses conventional fuel for heating applications at the Bath Heaters (BH) and the Heater Treaters (HT) at its North Kadi GGS.
8The water is presently separated from the well fluid at the HT at 75 degree C, where dissolved gas is liberated and oil and water are separated. While water is sent to the effluent tank for storage and pumping to the Effluent Treatment Plant (ETP), crude oil is routed to storage tanks.
8The company now plans to get a solar heating system designed which can meet the thermal load requirements of the existing two BHs and two HTs.
8As per ONGC's plans, the ground mounted, stand-alone solar heating system will be installed without altering the existing systems and processes of BH and HT.
8The system will be designed and installed in such a manner that any interruptions in the solar heating system will not affect the working of the existing systems at the GGS. Details
8GGS is an installation in oil industry where well fluids (Crude oil + water + associated gas) from various wells is gathered and aggregated for initial processing and making it suitable for further transportation. Initial processing involves separation of gas and raising the temperature of liquid to enable better separation of oil and water and breaking of oil-water emulsion.
8Presently, the E&P major uses conventional fuel for heating applications at the Bath Heaters (BH) and the Heater Treaters (HT) at its North Kadi GGS.
8The water is presently separated from the well fluid at the HT at 75 degree C, where dissolved gas is liberated and oil and water are separated. While water is sent to the effluent tank for storage and pumping to the Effluent Treatment Plant (ETP), crude oil is routed to storage tanks.
8The company now plans to get a solar heating system designed which can meet the thermal load requirements of the existing two BHs and two HTs.
8As per ONGC's plans, the ground mounted, stand-alone solar heating system will be installed without altering the existing systems and processes of BH and HT.
8The system will be designed and installed in such a manner that any interruptions in the solar heating system will not affect the working of the existing systems at the GGS. Details
A total of 1.2 TCF of gas is estimated in Jubilant Oil and Gas Private Ltd's (JOGPL) Tripura block AA-ONN-2002/1, as per the approved Declaration of Commerciality (DoC) for the Kathalchari discovery. However, only 71 BCF is the Recoverable Reserve.
8The operator Jubilant had submitted the DOC proposal for the Kathalchari discovery after incorporating the results of the wells drilled in the Tulamura anticline (Srikantabari-1, KL-NE and Matabari-1) which was recommended for development by the Management Committee.
8Three exploration wells were drilled in the Phase-I exploration programme. Two of the three wells -- Kathalchari-1 and Ambasa North -- were declared as discovery wells. Two appraisal wells, Srikantabari-1 (SK-A1) and KL-NE were drilled to appraise the Kathalchari-1 discovery.
8The Field Development Plan (FDP) for the discovery has been submitted to the DGH.
8Jubilant has a 20% Participating Interest and is the operator of the Tripura Block. GAIL holds the remaining 80%. The present block area, net of relinquishment, is 1,260 sq kms and is located east of ONGC’s Baramura gas field and adjacent to the ONGC’s TMD-1 gas discovery to the east. Details
8The operator Jubilant had submitted the DOC proposal for the Kathalchari discovery after incorporating the results of the wells drilled in the Tulamura anticline (Srikantabari-1, KL-NE and Matabari-1) which was recommended for development by the Management Committee.
8Three exploration wells were drilled in the Phase-I exploration programme. Two of the three wells -- Kathalchari-1 and Ambasa North -- were declared as discovery wells. Two appraisal wells, Srikantabari-1 (SK-A1) and KL-NE were drilled to appraise the Kathalchari-1 discovery.
8The Field Development Plan (FDP) for the discovery has been submitted to the DGH.
8Jubilant has a 20% Participating Interest and is the operator of the Tripura Block. GAIL holds the remaining 80%. The present block area, net of relinquishment, is 1,260 sq kms and is located east of ONGC’s Baramura gas field and adjacent to the ONGC’s TMD-1 gas discovery to the east. Details
The first gas from from the Tripura onland block AA-ONN-2002/1, is expected during 2017-18, provided there are no hiccups on the way.
8An initial production of 0.28 MMSCMD is anticipated from the block which can be further increased to 0.57 MMSCMD by 2018-19.
8The intervening period of 2015 and 2016 will be required for creating the necessary infrastructure for production.
8The operator, Jubilant Oil and Gas Private Ltd (JOGPL), has so far notified four discoveries of non-associated gas, two each in Phase-I (N. Ambassa-I & KL-I) and Phase-II (N. Athamura-1 and N. Athamura-2).
8The North Athamura-1 discovery has been apprised.
8Jubilant has proposed a total of seven development locations in the Kathalchari-1 (KL-1) formation.
8The hydrocarbon province of the Tripura Block extends into Bangladesh. Regionally, the area tends to be gas-prone and there are several examples of local multi-TCF gas fields. Details
8An initial production of 0.28 MMSCMD is anticipated from the block which can be further increased to 0.57 MMSCMD by 2018-19.
8The intervening period of 2015 and 2016 will be required for creating the necessary infrastructure for production.
8The operator, Jubilant Oil and Gas Private Ltd (JOGPL), has so far notified four discoveries of non-associated gas, two each in Phase-I (N. Ambassa-I & KL-I) and Phase-II (N. Athamura-1 and N. Athamura-2).
8The North Athamura-1 discovery has been apprised.
8Jubilant has proposed a total of seven development locations in the Kathalchari-1 (KL-1) formation.
8The hydrocarbon province of the Tripura Block extends into Bangladesh. Regionally, the area tends to be gas-prone and there are several examples of local multi-TCF gas fields. Details
Lowering of crude oil prices the likely outcome of the Iran nuclear deal will contribute positively to the India economy, across the oil and gas value chain barring domestic upstream players, says India Ratings and Research (Ind-Ra). The following are the likely benefits:
8A decline in oil prices could lower LNG prices as the two are linked and this is likely to benefit end-consumer industries such as fertilizer and petrochemicals.
8The agreement is likely to result in the resumption of oil supplies of nearly 1 million barrels per day. The supply will rise gradually over the next one year from Iran to an already oversupplied crude market.
8Oil refiners will benefit by way of lower crude oil prices as imports from Iran will be more cost effective than imports from Africa, Latin America and Venezuela among others. This is because of the lower lead time and better credit terms (90 days) available from Iran than the 30-day credit period offered by others, thus improving the working capital cycle for refiners.
8Post the agreement and lifting of sanctions on Iran, lower insurance and transportation costs are likely to reduce the overall landed cost of Iranian oil in India.
8For some refiners, it would also lead to the payment of outstanding dues towards oil imports of nearly $6.5 billion from Iran as payment channels might open up post lifting of the sanctions.
8Domestic public sector upstream players may benefit from a lower subsidy burden if the quantum of under-recovery and hence subsidy declines. However, the benefit of lower subsidy could be offset by lower realizations that public sector units would face because of a decline in crude prices.
8The resumption of projects (OVL in Farzad-B gas field) and deals (buying 5 MT of natural gas per year) will lead to higher supplies and lower prices which will benefit Indian companies which rely on oil and natural gas. Details
8A decline in oil prices could lower LNG prices as the two are linked and this is likely to benefit end-consumer industries such as fertilizer and petrochemicals.
8The agreement is likely to result in the resumption of oil supplies of nearly 1 million barrels per day. The supply will rise gradually over the next one year from Iran to an already oversupplied crude market.
8Oil refiners will benefit by way of lower crude oil prices as imports from Iran will be more cost effective than imports from Africa, Latin America and Venezuela among others. This is because of the lower lead time and better credit terms (90 days) available from Iran than the 30-day credit period offered by others, thus improving the working capital cycle for refiners.
8Post the agreement and lifting of sanctions on Iran, lower insurance and transportation costs are likely to reduce the overall landed cost of Iranian oil in India.
8For some refiners, it would also lead to the payment of outstanding dues towards oil imports of nearly $6.5 billion from Iran as payment channels might open up post lifting of the sanctions.
8Domestic public sector upstream players may benefit from a lower subsidy burden if the quantum of under-recovery and hence subsidy declines. However, the benefit of lower subsidy could be offset by lower realizations that public sector units would face because of a decline in crude prices.
8The resumption of projects (OVL in Farzad-B gas field) and deals (buying 5 MT of natural gas per year) will lead to higher supplies and lower prices which will benefit Indian companies which rely on oil and natural gas. Details
The other beneficiary of lifting of sanctions on Iran could be Indian CNG cylinder manufacturers, feels ICRA.
8Earlier CNG cylinders manufactured in India were exported to Iran in large numbers, as the latter is the largest market in the world for CNG run vehicles.
8However with sanctions imposed by the US and the European Union, the Indian exporters had to curtail their supplies to the Iranian market.
8The CNG cylinder manufacturers that were hit because of sanctions were Everest Kanto Cylinders and Rama Cylinders.
8However, with the lifting of sanctions the exports of CNG cylinders might resume, feels ICRA. Details
8Earlier CNG cylinders manufactured in India were exported to Iran in large numbers, as the latter is the largest market in the world for CNG run vehicles.
8However with sanctions imposed by the US and the European Union, the Indian exporters had to curtail their supplies to the Iranian market.
8The CNG cylinder manufacturers that were hit because of sanctions were Everest Kanto Cylinders and Rama Cylinders.
8However, with the lifting of sanctions the exports of CNG cylinders might resume, feels ICRA. Details
MRPL is planning to double the production capacity of its Crumbed Rubber Modified Bitumen (CRMB) plant at Mangalore by running the plant in two shifts.
8The plant will run in two shifts to take the average production to 200 MT per day from the present 100 MT per day.
8Once the capacity is doubled, it is estimated that 20,000 MT of CRMB will be processed by the plant annually.
8The plant presently has four 50 MT bulk bitumen and modifier mixing horizontal storage vessels for processing 100 MT of CRMB, per shift.
8The CRMB is produced by mixing of Crumb Rubber Modifier and feed Bitumen (VG-10/VG-30 grade) in the desired ratio.
8The plant will receive raw bitumen via pipelines from the MRPL's bitumen storage tank. The pipeline system has been designed to receive raw bitumen at 5 KSCG pressure at about 130-140 degree centigrade.
8MRPL has floated a tender for supply of a Crumbed Rubber Modifier, along with operation and maintenance (O&M) services for a period of two years.
8The last date for submission of bids is August 8, 2015. Details
8The plant will run in two shifts to take the average production to 200 MT per day from the present 100 MT per day.
8Once the capacity is doubled, it is estimated that 20,000 MT of CRMB will be processed by the plant annually.
8The plant presently has four 50 MT bulk bitumen and modifier mixing horizontal storage vessels for processing 100 MT of CRMB, per shift.
8The CRMB is produced by mixing of Crumb Rubber Modifier and feed Bitumen (VG-10/VG-30 grade) in the desired ratio.
8The plant will receive raw bitumen via pipelines from the MRPL's bitumen storage tank. The pipeline system has been designed to receive raw bitumen at 5 KSCG pressure at about 130-140 degree centigrade.
8MRPL has floated a tender for supply of a Crumbed Rubber Modifier, along with operation and maintenance (O&M) services for a period of two years.
8The last date for submission of bids is August 8, 2015. Details
Some recent tenders floated by oil and gas companies are:
8Charter hiring of 14 work-over rigs for various onshore work-centres [ONGC] Details
8Charter-hire of three offshore modular work-over rigs [ONGC]
8Hiring of services for 4C-3D seismic data acquisition through OBN technology in Tapti Daman PML area [ONGC]
8Refurbishment and Capacity Enhancement of Coastal Liquid Terminal at Cochin Port [Cochin Port Trust] Details
8Supply of steel flanges and fittings [IOC] Details
8PMC services for provision of pipeline from IOC Port Blair Terminal to Coast Guard Jetty at Port Blair, A&N Islands [IOC] Details
8Carrying out mechanical jobs on floating roof and petroleum storage tanks at Mumbai Refinery [BPCL] Details
8Procurement of structured packings for Naphtha Splitter I and II and Mumbai Refinery [BPCL] Details
8Charter hiring of 14 work-over rigs for various onshore work-centres [ONGC] Details
8Charter-hire of three offshore modular work-over rigs [ONGC]
8Hiring of services for 4C-3D seismic data acquisition through OBN technology in Tapti Daman PML area [ONGC]
8Refurbishment and Capacity Enhancement of Coastal Liquid Terminal at Cochin Port [Cochin Port Trust] Details
8Supply of steel flanges and fittings [IOC] Details
8PMC services for provision of pipeline from IOC Port Blair Terminal to Coast Guard Jetty at Port Blair, A&N Islands [IOC] Details
8Carrying out mechanical jobs on floating roof and petroleum storage tanks at Mumbai Refinery [BPCL] Details
8Procurement of structured packings for Naphtha Splitter I and II and Mumbai Refinery [BPCL] Details
The website carries here, for reference purposes, the following details relating to under-recoveries for the June 16, 2015, fortnight:
8Average international crude price (Indian basket) for the fortnight (June 27-July 13)
8Average international crude price (Indian basket) for the fortnight (starting from July 14)
8Prices are carried both in terms of US dollars and Indian rupees
8Under-recovery of public sector oil marketing companies on PDS kerosene and Domestic LPG (effective July 1)
8Product-wise under-recoveries of OMCs during 2013-14 and 2014-15
Click here for Details Details
8Average international crude price (Indian basket) for the fortnight (June 27-July 13)
8Average international crude price (Indian basket) for the fortnight (starting from July 14)
8Prices are carried both in terms of US dollars and Indian rupees
8Under-recovery of public sector oil marketing companies on PDS kerosene and Domestic LPG (effective July 1)
8Product-wise under-recoveries of OMCs during 2013-14 and 2014-15
Click here for Details Details
The context of BP boss Bob Dudley`s visit to India last week was no different from that of his earlier visits. The government may have changed but the issues seem to remain the same. The question that comes to mind now is whether this is really a failure on the part of the India team of BP, headed by Sashi Mukundan, in anticipating and then intervening in time to create the right kind of policy environment for the multinational or were the circumstances such that they were beyond the control of the team? Will Dudley have to make the same trip again, walking along the same corridors of power, a few months down the line to make another plea for a gas price increase?
8The point to note is that no country head, other than Mukundan, has overseen such a tremendous destruction of investment value in India`s corporate history and yet continue to retain his job. BP`s $7.2 billion investment for a 30% stake in RIL`s blocks along with additional cash calls and capital cost recovery by the government add up to a vast sum of money by any yardstick. And at current profit petroleum accruals of just around $20 million a year, it is an abysmal return on investment. BP had recently taken a $830 million write down in the value of its investment in the D-6 block.
8So how far is Mukundan really accountable for this debacle? Mukundan can always turn around and say that the decisions taken by the government of India -- particularly pertaining to an increase in gas prices -- were motivated by political rather than economic considerations and given that the circumstances were outside his control, he cannot be held guilty for the destruction of value. If this indeed were to be his argument, it will not really cut much ice because there were at least two occasions within the past 15 months when he could have intervened to halt the precipitous decline in the fortunes of BP had he been more clued on to goings-on in the petroleum ministry.
8Mukundan can take recourse to yet another excuse to wriggle out of the tight situation that his company finds itself in today: that it is not the multinational alone but majority partner RIL which should take the rap for the inability to raise the price of gas. But this argument too can be set aside as RIL is not on the same financial footing as BP in these blocks. RIL has more or less broken even with its investments in the D-6 block and over and above that it has pocketed $7.2 billion from BP by parceling out a 30% stake. On the other hand, for BP, the investment is a sunk cost. There is clearly more at stake for BP than RIL.
8The BP India head also cannot absolve himself of blame, more so as he began playing a pivotal role as the interlocutor after RIL decided in the first half of 2014, for reasons that are not yet fully known, to take a backseat when it came to engaging with the government over the issue of gas pricing, passing the baton on to BP instead. The arrangement was possibly a result of too much flak attracted by RIL over the unbridled campaign it had launched to raise the price of gas. "We brought the gas price up to $8.4/mmbtu by ensuring that the Rangarajan Committee`s recommendations were implemented , leaving the rest to BP," a top RIL executive once told this website. From there on, Mukundan and his team were put in charge to take the march forward. But the question is whether Mukundan ever really understood the heady mix of politics and economics that go into the decision making process in New Delhi? As a professional who parachuted himself into the Delhi durbar, did he ever gain entry into the inner coteries where the real decisions are taken or was his time spent on making presentations to sundry bureaucrats and couriers?
8There were two distinct setbacks -- both wrought by bureaucratic meddling rather than by political intervention-- that set the clock firmly back and in both cases Mukundan could have intervened to retrieve the situation. One was BP`s failure to anticipate and intercede with the petroleum ministry bureaucracy to prevent a reference to the Election Commission of the impending gas price hike from April 1, 2014 based on the Rangarajan Committee report. Since the gas price hike was decided before the elections were announced, its implementations should have been automatic but the Joint Secretary in the ministry decided, in consultation with the petroleum secretary, to alert the Election Commission instead, leading to the deferment of the price hike. Ironically this was around the same time that RIL was able to divert crude from the MA field in the D-6 block away from the public sector CPCL to itself, even though the PSC says that such crude can only be diverted to an affiliate company and not to the producing company itself. Some amount of astute lobbying, just as RIL did for diversion of crude supply, could have prevented the Election Commission from stepping in but clearly the BP team was not in action in Shastri Bhavan at that point in time.
8Yet another opportunity was allowed to slip by when it came to interpreting the timeline from when the premium on deepwater gas would become applicable. The cut off wasn`t exactly dictated by the Cabinet but the bureaucrats in the ministry later set the date arbitrarily as November 2014, thereby keeping the RIL-BP combine`s best discoveries out of the premium. This can be regarded as Mukundan`s biggest failure, for even through he gave a presentation or two in the ministry, he wasn`t seen as working hard enough to push back the timeline.
8Now that the ministry is again looking at the gas price premium, Mukundan had no option but to field Dudley one more time in New Delhi. That was an astute move, because the responsibility for any failure to elicit the right gas price would vest on Dudley as it was always the case in the past and not on Mukundan.
8The sympathy is with Dudley for he is being forced to clean up the mess that should have been cleared up by now. The BP chief faces an uphill battle in trying to push a politically sensitive government to retract from a position that its opponents are likely to interpret as an attempt to retrospectively enforce an eligibility criterion for the BP-RIL`s discoveries so that they qualify for the gas price premium. A businessman is always willing to do a deal at any cost but it must have indeed been humiliating for Dudley, as the CEO of one of the world`s most powerful companies, to look for a settlement on the gas price issue even as he fights the Indian government in a no-holds-barred legal battle for his right to get a market price for the gas he produces in the KG Basin. And this is a situation that could have been avoided had Mukundan done his job well.
8All this begs the question whether Mukundan is really the right fit for the job? There is little contribution that the BP India head makes to the technical side of the multinational`s operations in India, involving deepwater exploration and production, for that is entirely managed by expatriates who work more or less in an autonomous fashion. The India head`s role is mostly confined to dealing with the government and that is a job that Mukundan hasn`t done well at all. If the economics of gas production is so clear, why isn`t the government buying it, is the question that needs a straight answer from Mujundan, for there is no other instance in India where a multinational would spend so much money and get no return on it.
8It is up to Dudley now to decide what he needs to do next with his investment in India. The BP brass has figured out by now that the picture on the ground is not as rosy as as is shown in presentations given in the London office by the India team. What are the multinational`s options if the gas premium falls short of expectation once again and it can`t kick start the discoveries? Only time will tell what lies ahead for BP and Sashi Mukundan and his team. Details
8The point to note is that no country head, other than Mukundan, has overseen such a tremendous destruction of investment value in India`s corporate history and yet continue to retain his job. BP`s $7.2 billion investment for a 30% stake in RIL`s blocks along with additional cash calls and capital cost recovery by the government add up to a vast sum of money by any yardstick. And at current profit petroleum accruals of just around $20 million a year, it is an abysmal return on investment. BP had recently taken a $830 million write down in the value of its investment in the D-6 block.
8So how far is Mukundan really accountable for this debacle? Mukundan can always turn around and say that the decisions taken by the government of India -- particularly pertaining to an increase in gas prices -- were motivated by political rather than economic considerations and given that the circumstances were outside his control, he cannot be held guilty for the destruction of value. If this indeed were to be his argument, it will not really cut much ice because there were at least two occasions within the past 15 months when he could have intervened to halt the precipitous decline in the fortunes of BP had he been more clued on to goings-on in the petroleum ministry.
8Mukundan can take recourse to yet another excuse to wriggle out of the tight situation that his company finds itself in today: that it is not the multinational alone but majority partner RIL which should take the rap for the inability to raise the price of gas. But this argument too can be set aside as RIL is not on the same financial footing as BP in these blocks. RIL has more or less broken even with its investments in the D-6 block and over and above that it has pocketed $7.2 billion from BP by parceling out a 30% stake. On the other hand, for BP, the investment is a sunk cost. There is clearly more at stake for BP than RIL.
8The BP India head also cannot absolve himself of blame, more so as he began playing a pivotal role as the interlocutor after RIL decided in the first half of 2014, for reasons that are not yet fully known, to take a backseat when it came to engaging with the government over the issue of gas pricing, passing the baton on to BP instead. The arrangement was possibly a result of too much flak attracted by RIL over the unbridled campaign it had launched to raise the price of gas. "We brought the gas price up to $8.4/mmbtu by ensuring that the Rangarajan Committee`s recommendations were implemented , leaving the rest to BP," a top RIL executive once told this website. From there on, Mukundan and his team were put in charge to take the march forward. But the question is whether Mukundan ever really understood the heady mix of politics and economics that go into the decision making process in New Delhi? As a professional who parachuted himself into the Delhi durbar, did he ever gain entry into the inner coteries where the real decisions are taken or was his time spent on making presentations to sundry bureaucrats and couriers?
8There were two distinct setbacks -- both wrought by bureaucratic meddling rather than by political intervention-- that set the clock firmly back and in both cases Mukundan could have intervened to retrieve the situation. One was BP`s failure to anticipate and intercede with the petroleum ministry bureaucracy to prevent a reference to the Election Commission of the impending gas price hike from April 1, 2014 based on the Rangarajan Committee report. Since the gas price hike was decided before the elections were announced, its implementations should have been automatic but the Joint Secretary in the ministry decided, in consultation with the petroleum secretary, to alert the Election Commission instead, leading to the deferment of the price hike. Ironically this was around the same time that RIL was able to divert crude from the MA field in the D-6 block away from the public sector CPCL to itself, even though the PSC says that such crude can only be diverted to an affiliate company and not to the producing company itself. Some amount of astute lobbying, just as RIL did for diversion of crude supply, could have prevented the Election Commission from stepping in but clearly the BP team was not in action in Shastri Bhavan at that point in time.
8Yet another opportunity was allowed to slip by when it came to interpreting the timeline from when the premium on deepwater gas would become applicable. The cut off wasn`t exactly dictated by the Cabinet but the bureaucrats in the ministry later set the date arbitrarily as November 2014, thereby keeping the RIL-BP combine`s best discoveries out of the premium. This can be regarded as Mukundan`s biggest failure, for even through he gave a presentation or two in the ministry, he wasn`t seen as working hard enough to push back the timeline.
8Now that the ministry is again looking at the gas price premium, Mukundan had no option but to field Dudley one more time in New Delhi. That was an astute move, because the responsibility for any failure to elicit the right gas price would vest on Dudley as it was always the case in the past and not on Mukundan.
8The sympathy is with Dudley for he is being forced to clean up the mess that should have been cleared up by now. The BP chief faces an uphill battle in trying to push a politically sensitive government to retract from a position that its opponents are likely to interpret as an attempt to retrospectively enforce an eligibility criterion for the BP-RIL`s discoveries so that they qualify for the gas price premium. A businessman is always willing to do a deal at any cost but it must have indeed been humiliating for Dudley, as the CEO of one of the world`s most powerful companies, to look for a settlement on the gas price issue even as he fights the Indian government in a no-holds-barred legal battle for his right to get a market price for the gas he produces in the KG Basin. And this is a situation that could have been avoided had Mukundan done his job well.
8All this begs the question whether Mukundan is really the right fit for the job? There is little contribution that the BP India head makes to the technical side of the multinational`s operations in India, involving deepwater exploration and production, for that is entirely managed by expatriates who work more or less in an autonomous fashion. The India head`s role is mostly confined to dealing with the government and that is a job that Mukundan hasn`t done well at all. If the economics of gas production is so clear, why isn`t the government buying it, is the question that needs a straight answer from Mujundan, for there is no other instance in India where a multinational would spend so much money and get no return on it.
8It is up to Dudley now to decide what he needs to do next with his investment in India. The BP brass has figured out by now that the picture on the ground is not as rosy as as is shown in presentations given in the London office by the India team. What are the multinational`s options if the gas premium falls short of expectation once again and it can`t kick start the discoveries? Only time will tell what lies ahead for BP and Sashi Mukundan and his team. Details
ONGC is planning to monetize the gas discoveries which are coming up as part of its offshore Daman development project.
8A peak production of 8.5 mmscmd (with upside potential 10 mmscmd, if gas from additional development of C-24 and d B-12 fields is taken into consideration) is expected from the project. Then again, if the gas from the existing C-Series fields (C-24 Cluster) is considered, the total production is estimated to go up to around 13-14 mmscmd.
8In order to monetize the discoveries as soon as possible, the E&P major has decided to route a part of the produced gas and associated condensate from the Tapti-Daman block to its Hazira Gas Processing plant at Surat, Gujarat.
8However, this will require modifications in the existing process facilities at Hazira.
8The installed facilities at the Hazira processing complex have been designed to process 52.5 MMSCMD of gas and 12,600 Sm3/day of condensate.
8The complex currently processes sour gas and associated condensate from the South Bassein Field which is ferried through the SBHT line. Along with this, gas from the PMT fields is also processed at the Hazira facilities.
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8A peak production of 8.5 mmscmd (with upside potential 10 mmscmd, if gas from additional development of C-24 and d B-12 fields is taken into consideration) is expected from the project. Then again, if the gas from the existing C-Series fields (C-24 Cluster) is considered, the total production is estimated to go up to around 13-14 mmscmd.
8In order to monetize the discoveries as soon as possible, the E&P major has decided to route a part of the produced gas and associated condensate from the Tapti-Daman block to its Hazira Gas Processing plant at Surat, Gujarat.
8However, this will require modifications in the existing process facilities at Hazira.
8The installed facilities at the Hazira processing complex have been designed to process 52.5 MMSCMD of gas and 12,600 Sm3/day of condensate.
8The complex currently processes sour gas and associated condensate from the South Bassein Field which is ferried through the SBHT line. Along with this, gas from the PMT fields is also processed at the Hazira facilities.
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Jul 16 : BPCL's Kochi refinery: Company to carry out direct assessment of its non-piggable pipelines
BPCL has decided to carry out direct assessment of its eight non-piggable pipelines connected to its Kochi refinery.
8As most of the pipelines have passed their economic life, the company has decided to carry out health assessments of these pipelines. Three of these pipelines were laid in 1966, four in 1991 and one in 2004.
8The following assessments will be carried out: External Corrosion Direct Assessment (ECDA), Stress Corrosion Cracking Direct Assessment (SCCDA) and Liquid Petroleum-Internal Corrosion Direct Assessment (LP-ICDA)
8The eight pipeline for which these assessments will be carried out are:
-- 12” white oil no:1 line from Kochi Refinery to Jetty
--12” black oil no:1 line from Kochi Refinery to Jetty
--12” black oil no:2 line from Kochi Refinery to Jetty
--12” MS/Naphtha line from Kochi Refinery to BPCL-Irumpanam
--12” HSD/SKO line from Kochi Refinery to BPCL-Irumpanam
--24” MS/Naphtha line from BPCL-Irumpanam to Jetty
--24” HSD/SKO line from BPCL Irumpanam to Jetty
--24” HSD line from Kochi Refinery to BPCL-Irumpanam
8Along with this, the company will also carry out the mapping of a total of another five pipelines.
Click here for more Details
8As most of the pipelines have passed their economic life, the company has decided to carry out health assessments of these pipelines. Three of these pipelines were laid in 1966, four in 1991 and one in 2004.
8The following assessments will be carried out: External Corrosion Direct Assessment (ECDA), Stress Corrosion Cracking Direct Assessment (SCCDA) and Liquid Petroleum-Internal Corrosion Direct Assessment (LP-ICDA)
8The eight pipeline for which these assessments will be carried out are:
-- 12” white oil no:1 line from Kochi Refinery to Jetty
--12” black oil no:1 line from Kochi Refinery to Jetty
--12” black oil no:2 line from Kochi Refinery to Jetty
--12” MS/Naphtha line from Kochi Refinery to BPCL-Irumpanam
--12” HSD/SKO line from Kochi Refinery to BPCL-Irumpanam
--24” MS/Naphtha line from BPCL-Irumpanam to Jetty
--24” HSD/SKO line from BPCL Irumpanam to Jetty
--24” HSD line from Kochi Refinery to BPCL-Irumpanam
8Along with this, the company will also carry out the mapping of a total of another five pipelines.
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Gujarat State Petroleum Corporation Ltd (GSPC), the operator of the block KG-OSN-2001/3, plans to drill and complete four wells in two years time.
8As the block reservoir involves high pressure and high temperature (HP-HT) -- Bottom-hole temperature is in excess of 400°F and bottom hole pressure is in excess of 12,000 psi -- the company has decided to carry out multi zone fracturing.
8Accordingly, the company is on an hunt for a consultant who can provide the following services:
-- Hydraulic Fracturing (HF) Design for HP-HT wells, based on the reservoir parameters
-- Designing and installation of HF strings in HP-HT wells
-- Supply of HF materials
-- Tests on HF fluid as needed for optimal HF design
-- Validating HF data from the wells (Pre and post job analysis)
-- Determination of HF equipments and HF fluid compatibility with the well fluids and pressure temperature conditions
Click on Tenders for more details. Details
8As the block reservoir involves high pressure and high temperature (HP-HT) -- Bottom-hole temperature is in excess of 400°F and bottom hole pressure is in excess of 12,000 psi -- the company has decided to carry out multi zone fracturing.
8Accordingly, the company is on an hunt for a consultant who can provide the following services:
-- Hydraulic Fracturing (HF) Design for HP-HT wells, based on the reservoir parameters
-- Designing and installation of HF strings in HP-HT wells
-- Supply of HF materials
-- Tests on HF fluid as needed for optimal HF design
-- Validating HF data from the wells (Pre and post job analysis)
-- Determination of HF equipments and HF fluid compatibility with the well fluids and pressure temperature conditions
Click on Tenders for more details. Details
The PNGRB has revised the transportation tariff for the GAIL's Vizag-Secunderabad LPG pipeline (VSPL) in accordance with the rail freight which has been revised with effect from April 1, 2015. The tariffs (Rs/MT) applicable from the following tap-off points (TOP) from April 1, 2015, are as under:
8Vizag Refinery (HPCL) - HPCL Rajamundry BP: Rs 430.20/MT
8Vizag Refinery (HPCL) - HPCL Kondapalli: Rs 650.10/MT
8Vizag Refinery (HPCL) - IOCL Kondapalli: Rs 650.10/MT
8Vizag Refinery (HPCL) - BPCL Kondapalli: Rs 650.10/MT
8Vizag Refinery (HPCL) - HPCL Cherlapalli: Rs 1171.70/MT
8Vizag Refinery (HPCL) - IOCL Cherlapalli: Rs 1171.70/MT
8Vizag Refinery (HPCL) - BPCL Cherlapalli: Rs 1171.70/MT
8Vizag Refinery (HPCL) - New Vizag LPG Terminal: Rs 234/MT
8The tariffs are applicable Ex-HPCL's Vizag Bottling plant , Ex-HPCL's Vizag Refinery and Ex-EIPL storage.
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8Vizag Refinery (HPCL) - HPCL Rajamundry BP: Rs 430.20/MT
8Vizag Refinery (HPCL) - HPCL Kondapalli: Rs 650.10/MT
8Vizag Refinery (HPCL) - IOCL Kondapalli: Rs 650.10/MT
8Vizag Refinery (HPCL) - BPCL Kondapalli: Rs 650.10/MT
8Vizag Refinery (HPCL) - HPCL Cherlapalli: Rs 1171.70/MT
8Vizag Refinery (HPCL) - IOCL Cherlapalli: Rs 1171.70/MT
8Vizag Refinery (HPCL) - BPCL Cherlapalli: Rs 1171.70/MT
8Vizag Refinery (HPCL) - New Vizag LPG Terminal: Rs 234/MT
8The tariffs are applicable Ex-HPCL's Vizag Bottling plant , Ex-HPCL's Vizag Refinery and Ex-EIPL storage.
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8Balyan completes tenure as CEO, Petronet LNG: Petronet LNG Ltd has informed the BSE that Dr. AK Balyan has completed his tenure of five years as Managing Director & CEO of the company and superannuated from the company with effect from July 15, 2015.
--In his place, Director (Finance), RK Garg, has been appointed as the Acting MD & CEO of the company till a new appointment is made.
8PNGRB allows Ricasil to lay pipeline from ONGC`s CTF Ankelshwar to GAIL`s common carrier South Gujarat network: The PNGRB has given the go-ahead to Ricasil Ceramic Industries Pvt Ltd (RCIPL) to lay a dedicated gas pipeline from ONGC`s CTF Ankelshwar to GAIL`s common carrier South Gujarat network.
The interconnection point will be at RCIPL`s land for transportation to its Dabhasha unit for its own consumption
ONGC has an isolated well at CTF, Ankleshwar from where gas will be supplied to RCIPL.
The capacity of the pipeline is 0.015 mmscmd. The capacity is accepted as provisional and final capacity will be decided later. Details
--In his place, Director (Finance), RK Garg, has been appointed as the Acting MD & CEO of the company till a new appointment is made.
8PNGRB allows Ricasil to lay pipeline from ONGC`s CTF Ankelshwar to GAIL`s common carrier South Gujarat network: The PNGRB has given the go-ahead to Ricasil Ceramic Industries Pvt Ltd (RCIPL) to lay a dedicated gas pipeline from ONGC`s CTF Ankelshwar to GAIL`s common carrier South Gujarat network.
The interconnection point will be at RCIPL`s land for transportation to its Dabhasha unit for its own consumption
ONGC has an isolated well at CTF, Ankleshwar from where gas will be supplied to RCIPL.
The capacity of the pipeline is 0.015 mmscmd. The capacity is accepted as provisional and final capacity will be decided later. Details
ONGC has awarded a contract for setting up of three wellhead platforms for its Mumbai High South Redevelopment Phase-III Project to Kencana HL.
8Kencana HL is a subsidiary of Malaysia-based SapuraKencana Petroleum Berhad.
8The cost of the contract is $211.95 million.
8As per the contract, Kencana will conduct surveys, engineering, procurement, designing, fabrication, transport, install and commission three new wellhead platforms.
8The scope of work also includes laying of 116 kms of submarine pipelines and around 7.5 km of submarine cables, along with carrying out of modification works on existing platforms.
8Along with this, clamp-on works on two platforms, subsea repair works on three jackets and D1C pile remedial works are also included in the scope of work.
8The overall project is expected to be completed by April 2017. Details
8Kencana HL is a subsidiary of Malaysia-based SapuraKencana Petroleum Berhad.
8The cost of the contract is $211.95 million.
8As per the contract, Kencana will conduct surveys, engineering, procurement, designing, fabrication, transport, install and commission three new wellhead platforms.
8The scope of work also includes laying of 116 kms of submarine pipelines and around 7.5 km of submarine cables, along with carrying out of modification works on existing platforms.
8Along with this, clamp-on works on two platforms, subsea repair works on three jackets and D1C pile remedial works are also included in the scope of work.
8The overall project is expected to be completed by April 2017. Details
As part of the Mumbai High South Redevelopment Phase-III Project, ONGC will also be drilling 36 new wells and 34 sidetrack wells.
8The E&P major has taken up the project to boost crude oil and natural gas production from its western offshore fields.
8The company is hoping to extract 7.5 billion tonnes of additional crude oil and 3.8 trillion cubic metres of natural gas from the field by 2030.
8ONGC had decided to move into Phase-III of the project to give a new lease of life to the giant field, after the success of the first two phases of the Redevelopment of the Mumbai High South (MHS) schemes.
8The company has approved a capital investment of Rs 6,069 crore for the project.
8While the well head platforms under the project are scheduled to be installed by April, 2017, the drilling of wells and the overall project completion is expected to be completed by March, 2019. Details
8The E&P major has taken up the project to boost crude oil and natural gas production from its western offshore fields.
8The company is hoping to extract 7.5 billion tonnes of additional crude oil and 3.8 trillion cubic metres of natural gas from the field by 2030.
8ONGC had decided to move into Phase-III of the project to give a new lease of life to the giant field, after the success of the first two phases of the Redevelopment of the Mumbai High South (MHS) schemes.
8The company has approved a capital investment of Rs 6,069 crore for the project.
8While the well head platforms under the project are scheduled to be installed by April, 2017, the drilling of wells and the overall project completion is expected to be completed by March, 2019. Details
Changes in drilling locations creates problems not only for the operator but also for the environment ministry.
8A case in point is the block AAONN-2001/1, where ONGC, the operator, had demarcated 10 locations for drilling but later dropped eight locations as they came under forest land and wildlife sanctuary.
8After re-demarcation of the boundary of the Rowa Sanctuary, the eight wells were found to be located outside the demarcated zone.
8Accordingly, permission was granted for drilling of all these wells.
8Later, fresh seismic studies were conducted which necessitated changes in the locations of five out of eight wells, namely RKH-15, RKH-17, RKH-18, RKH-19 and RKH-19.
8Because of the changes, ONGC had to apply for fresh clearances for these five locations, which is delaying the drilling work.
8The total cost of the project is estimated at Rs 400 crore.
Click on Reports for more. Details
8A case in point is the block AAONN-2001/1, where ONGC, the operator, had demarcated 10 locations for drilling but later dropped eight locations as they came under forest land and wildlife sanctuary.
8After re-demarcation of the boundary of the Rowa Sanctuary, the eight wells were found to be located outside the demarcated zone.
8Accordingly, permission was granted for drilling of all these wells.
8Later, fresh seismic studies were conducted which necessitated changes in the locations of five out of eight wells, namely RKH-15, RKH-17, RKH-18, RKH-19 and RKH-19.
8Because of the changes, ONGC had to apply for fresh clearances for these five locations, which is delaying the drilling work.
8The total cost of the project is estimated at Rs 400 crore.
Click on Reports for more. Details
Crowding of re-gasification terminals in India could put pressure on utilization levels, re-gasification charges and returns of new players, feels ICRA.
8According to the rating agency's estimates, India's re-gasification capacity is expected to increase to 44 MMTPA by FY 20 and 55 MMTPA by FY 25.
While the total current re-gasification capacity in India is around 25 MMTPA, the operational capacity is only about 17 MMTPA as the 5 MMTPA Kochi terminal of Petronet LNG Ltd (PLL) lacks full pipeline connectivity and the 5 MMTPA Dabhol terminal is being operated at low capacity utilizations in the absence of breakwater facilities.
8The total supply potential is expected to increase significantly over the next 7-8 years with higher domestic gas production and commissioning of a firm re-gasification capacity by FY 2018-21.
8However, the demand for RLNG can be affected because of significant competition from liquid fuels, and as a result the actual consumption of RLNG could be lower leading to significant competitive pressures in the re-gasification segment over the medium-term.
8Thus, upcoming LNG capacities may operate at relatively lower utilisation than the current utilisation of re-gasification capacities in the country, feels ICRA.
8ICRA believes that if many re-gasification terminals, as planned come on stream over the next 4-5 years, the new entrants would face significant pressure on volumes and margins as they will have to compete with the existing terminals and brownfield expansions which are more cost efficient due to lower capital intensity.
8Sub-optimal capacity utilisation and lower re-gasification margins could put significant pressure on returns and credit profile of new entrants especially in the initial few years of operations, ICRA has pointed out. Details
8According to the rating agency's estimates, India's re-gasification capacity is expected to increase to 44 MMTPA by FY 20 and 55 MMTPA by FY 25.
While the total current re-gasification capacity in India is around 25 MMTPA, the operational capacity is only about 17 MMTPA as the 5 MMTPA Kochi terminal of Petronet LNG Ltd (PLL) lacks full pipeline connectivity and the 5 MMTPA Dabhol terminal is being operated at low capacity utilizations in the absence of breakwater facilities.
8The total supply potential is expected to increase significantly over the next 7-8 years with higher domestic gas production and commissioning of a firm re-gasification capacity by FY 2018-21.
8However, the demand for RLNG can be affected because of significant competition from liquid fuels, and as a result the actual consumption of RLNG could be lower leading to significant competitive pressures in the re-gasification segment over the medium-term.
8Thus, upcoming LNG capacities may operate at relatively lower utilisation than the current utilisation of re-gasification capacities in the country, feels ICRA.
8ICRA believes that if many re-gasification terminals, as planned come on stream over the next 4-5 years, the new entrants would face significant pressure on volumes and margins as they will have to compete with the existing terminals and brownfield expansions which are more cost efficient due to lower capital intensity.
8Sub-optimal capacity utilisation and lower re-gasification margins could put significant pressure on returns and credit profile of new entrants especially in the initial few years of operations, ICRA has pointed out. Details
Changes in drilling locations creates problems not only for the operator but also for the environment ministry.
8A case in point is the block AAONN-2001/1, where ONGC, the operator, had demarcated 10 locations for drilling but later dropped eight locations as they came under forest land and wildlife sanctuary.
8After re-demarcation of the boundary of the Rowa Sanctuary, the eight wells were found to be located outside the demarcated zone.
8Accordingly, permission was granted for drilling of all these wells.
8Later, fresh seismic studies were conducted which necessitated changes in the locations of five out of eight wells, namely RKH-15, RKH-17, RKH-18, RKH-19 and RKH-19.
8Because of the changes, ONGC had to apply for fresh clearances for these five locations, which is delaying the drilling work.
8The total cost of the project is estimated at Rs 400 crore.
Click on Reports for more. Details
8A case in point is the block AAONN-2001/1, where ONGC, the operator, had demarcated 10 locations for drilling but later dropped eight locations as they came under forest land and wildlife sanctuary.
8After re-demarcation of the boundary of the Rowa Sanctuary, the eight wells were found to be located outside the demarcated zone.
8Accordingly, permission was granted for drilling of all these wells.
8Later, fresh seismic studies were conducted which necessitated changes in the locations of five out of eight wells, namely RKH-15, RKH-17, RKH-18, RKH-19 and RKH-19.
8Because of the changes, ONGC had to apply for fresh clearances for these five locations, which is delaying the drilling work.
8The total cost of the project is estimated at Rs 400 crore.
Click on Reports for more. Details
With the increase in supplies, the difference between the projected demand and supply potential is expected to narrow down over FY20-FY24, although the demand is expected to remain higher than supply potential.
8Currently (in 2015), the total LNG supply -- which includes supply from domestic fields, plus capacity utilisation at 85% of firm re-gasification capacities -- stands at 128 mmscmd and the demand for natural gas is 229 mmscmd, representing a demand-supply deficit of 101 mmscmd.
8In FY 2016, the demand-supply deficit will go a tad up at 105 mmscmd, with the LNG supply estimated at 130 mmscmd and the gas demand at 234 mmscmd.
8However, from FY 2017 onwards, the demand-supply deficit is expected to narrow down till FY 20.
8In FY 17, the demand-supply deficit is estimated at 97 mmscmd, in FY 18 at 67 mmscmd, in FY 19 at 50 mmscmd and in FY 20 at 33 mmscmd. Details
8Currently (in 2015), the total LNG supply -- which includes supply from domestic fields, plus capacity utilisation at 85% of firm re-gasification capacities -- stands at 128 mmscmd and the demand for natural gas is 229 mmscmd, representing a demand-supply deficit of 101 mmscmd.
8In FY 2016, the demand-supply deficit will go a tad up at 105 mmscmd, with the LNG supply estimated at 130 mmscmd and the gas demand at 234 mmscmd.
8However, from FY 2017 onwards, the demand-supply deficit is expected to narrow down till FY 20.
8In FY 17, the demand-supply deficit is estimated at 97 mmscmd, in FY 18 at 67 mmscmd, in FY 19 at 50 mmscmd and in FY 20 at 33 mmscmd. Details
Keeping the competition faced by RLNG from liquid fuels, a key challenge for the new LNG terminals will be their ability to tie-up LNG supplies through long-term contracts at competitive prices, feels ICRA.
8In the current market scenario, the risk related to tie-ups is partly mitigated by the fact that the global LNG supply-demand balance is expected to ease from FY16 onwards.
8Besides, for terminals planning to operate on a tolling basis, the ability to achieve optimum utilisation of terminals through long-term commitment of booking slots of terminals by gas marketers would be critical from credit perspective.
8Overall, the ability to complete the projects in a timely manner without material cost and time overruns and to tie-up with the LNG suppliers as well as RLNG customers or to book the optimum capacity on a tolling basis would be key risks for the re-gasification segment, where the competition is expected to increase significantly over the longer term. Details
8In the current market scenario, the risk related to tie-ups is partly mitigated by the fact that the global LNG supply-demand balance is expected to ease from FY16 onwards.
8Besides, for terminals planning to operate on a tolling basis, the ability to achieve optimum utilisation of terminals through long-term commitment of booking slots of terminals by gas marketers would be critical from credit perspective.
8Overall, the ability to complete the projects in a timely manner without material cost and time overruns and to tie-up with the LNG suppliers as well as RLNG customers or to book the optimum capacity on a tolling basis would be key risks for the re-gasification segment, where the competition is expected to increase significantly over the longer term. Details
In order to meet the demand of gas consumers at Bhilwara and Chittorgarh in Rajasthan, GAIL has decided to lay two spurlines (16-inch and 12-inch) connected to its Vijaipur-Kota pipeline.
8The 16-inch pipeline has been divided into two parts -- Part-C and Part-D -- and the 12-inch pipeline consists of a single part (Part-E).
8Pipeline laying and terminal works for these parts have been partially carried out by contractors but a lot of work is yet to be completed.
8With an eye on completing the balance work, GAIL has floated separate tenders for balance civil and electrical work as well as pipeline laying and terminal work.
8GAIL has appointed EIL as its consultant for implementation of the project.
Click on tenders for more. Details
8The 16-inch pipeline has been divided into two parts -- Part-C and Part-D -- and the 12-inch pipeline consists of a single part (Part-E).
8Pipeline laying and terminal works for these parts have been partially carried out by contractors but a lot of work is yet to be completed.
8With an eye on completing the balance work, GAIL has floated separate tenders for balance civil and electrical work as well as pipeline laying and terminal work.
8GAIL has appointed EIL as its consultant for implementation of the project.
Click on tenders for more. Details
The details of upcoming and existing LNG terminals are:
Upcoming terminals
8Kakinada (by Shell and Reliance): 5 MMTPA in Phase-I, to be increased to 10 MMTPA; Expected commissioning: 2016-17
8Kakinada East Godavari (initially FSRU) (JV of GAIL and AP Government): 3.5 MMTPA; Expected commissioning: 2016-17
8Mundra (Adani and GSPC): 5 MMTPA; Expected commissioning: 2015-16
8Ennore (IOC): 5 MMTPA in Phase-I, to be increased to 10 MMTPA; Expected commissioning: 2017-18
8Gangavaram (PLL): 5 MMTPA; Expected commissioning: 2018-19
8Mangalore (by ONGC and BPCL): 2.5 MMTPA; Expected commissioning: 2018-19
8Pipavav (Swan Energy); 5 MMTPA: Expected commissioning: 2018
Existing terminals
8Dahej (Petronet LNG Ltd): Capacity is 10 MMTPA (existing) to be increased to 15 MMTPA by 2016-17
8Hazira (Shell): 3.6 MMTPA (existing)
8Dabhol (RGPPL): 2 MMTPA in Phase-I without break water, which will be increased to 5.0 MMTPA
8Kochi (Petronet LNG Ltd): 5 MMTPA Details
Upcoming terminals
8Kakinada (by Shell and Reliance): 5 MMTPA in Phase-I, to be increased to 10 MMTPA; Expected commissioning: 2016-17
8Kakinada East Godavari (initially FSRU) (JV of GAIL and AP Government): 3.5 MMTPA; Expected commissioning: 2016-17
8Mundra (Adani and GSPC): 5 MMTPA; Expected commissioning: 2015-16
8Ennore (IOC): 5 MMTPA in Phase-I, to be increased to 10 MMTPA; Expected commissioning: 2017-18
8Gangavaram (PLL): 5 MMTPA; Expected commissioning: 2018-19
8Mangalore (by ONGC and BPCL): 2.5 MMTPA; Expected commissioning: 2018-19
8Pipavav (Swan Energy); 5 MMTPA: Expected commissioning: 2018
Existing terminals
8Dahej (Petronet LNG Ltd): Capacity is 10 MMTPA (existing) to be increased to 15 MMTPA by 2016-17
8Hazira (Shell): 3.6 MMTPA (existing)
8Dabhol (RGPPL): 2 MMTPA in Phase-I without break water, which will be increased to 5.0 MMTPA
8Kochi (Petronet LNG Ltd): 5 MMTPA Details
With the precipitous decline in international crude oil prices the economics of LNG vis-a-vis alternate fuels such as Fuel Oil have been adversely impacted, points out ICRA.
8As long-term LNG is linked to long-term crude oil price, spot prices of LNG have also corrected to multi-year lows.
8Accordingly, to improve competitiveness, re-gasification terminals are deferring purchase of long-term contract volumes to the extent allowed by contracts and replacing these volumes with cheaper spot gas.
8The decline in spot gas prices is expected to adversely impact the returns from LNG projects leading to companies re-examining the economics of new projects which could result in deferment of some projects for a more conducive environment. Details
8As long-term LNG is linked to long-term crude oil price, spot prices of LNG have also corrected to multi-year lows.
8Accordingly, to improve competitiveness, re-gasification terminals are deferring purchase of long-term contract volumes to the extent allowed by contracts and replacing these volumes with cheaper spot gas.
8The decline in spot gas prices is expected to adversely impact the returns from LNG projects leading to companies re-examining the economics of new projects which could result in deferment of some projects for a more conducive environment. Details
BP boss Bob Dudley is not someone who gives up easily. He has more grit than his partner Mukesh Ambani who seems to have all but given up as is evident from manner in which the RIL chairman dismissed his oil and gas investment in India in just a few lines in his AGM speech. Dudley`s tenacity comes from the fact that he has much more to lose than Ambani. Looking at the return on investment so far, it is arguably one of the poorest decisions made by BP in recent history, whereas Ambani on the other hand has pocketing a neat $7.2 billion from BP by offloading a 30% stake while also independently breaking even on the D-6 field.
8The way things stand now, BP`s investment is a dead asset. There will never be a buyer for its stake in India. One source has estimated BP`s share of profit petroleum from the D-6 field at just $24 million in 2014-15. And this is not taking into account additional cash calls that BP has pumped in ever since it became a partner in India. It is a miserable return by any yardstick and had it not been for Dudley`s tremendous contribution to BP, this investment would have irretrievably sullied his carrier as an oil man.
8As Dudley makes the rounds in New Delhi`s corridors of power, the stakes are indeed very high for BP and personally for its boss. And it was no wonder therefore that Dudley and not Ambani was actively canvassing for a gas price hike to unlock what he says is a massive quantity of gas -- between 5 to 7 TCF -- in the combine`s deepwater blocks in the east coast of India.
8Unfortunately however, Dudley campaign may not have the desired effect as he is asking for much more than what the Indian government may be willing to give. His breakeven price for new gas is $10/mmtu, which is the same price at which LNG is available at India. This is too high a price to ask from the present political dispensation which is much more sensitive than the earlier regime about not being seen as siding with big business. So, even though ONGC is going to be a beneficiary by default as it has 30 mmscmd of gas lined up from its deepwater discoveries, the Prime Minister does not want to be seen as someone who goes and doubles the price of gas, as this will be interpreted in today`s contrived political atmosphere as a bonanza for BP and RIL. At best this price is likely to be lower than the breakeven price for BP.
8What Dudley also wants is for the Prime Minister to retract from a decision taken by the Union Cabinet to apply the premium on deepwater discoveries made after November 2014. The cutoff date wasn`t exactly dictated by the Cabinet but it was the petroleum ministry that defined the date in writing, making it difficult for the government to retract from this position as that it would be interpreted as trying to retrospectively enforce an eligibility for BP-RIL`s discoveries to the gas price premium.
8Hard economics is what drives Dudley to look for a breakthrough in New Delhi but the irony is that it is politics of a kind that is beyond his grasp that will eventually determine the fate of his investment in India. Details
8The way things stand now, BP`s investment is a dead asset. There will never be a buyer for its stake in India. One source has estimated BP`s share of profit petroleum from the D-6 field at just $24 million in 2014-15. And this is not taking into account additional cash calls that BP has pumped in ever since it became a partner in India. It is a miserable return by any yardstick and had it not been for Dudley`s tremendous contribution to BP, this investment would have irretrievably sullied his carrier as an oil man.
8As Dudley makes the rounds in New Delhi`s corridors of power, the stakes are indeed very high for BP and personally for its boss. And it was no wonder therefore that Dudley and not Ambani was actively canvassing for a gas price hike to unlock what he says is a massive quantity of gas -- between 5 to 7 TCF -- in the combine`s deepwater blocks in the east coast of India.
8Unfortunately however, Dudley campaign may not have the desired effect as he is asking for much more than what the Indian government may be willing to give. His breakeven price for new gas is $10/mmtu, which is the same price at which LNG is available at India. This is too high a price to ask from the present political dispensation which is much more sensitive than the earlier regime about not being seen as siding with big business. So, even though ONGC is going to be a beneficiary by default as it has 30 mmscmd of gas lined up from its deepwater discoveries, the Prime Minister does not want to be seen as someone who goes and doubles the price of gas, as this will be interpreted in today`s contrived political atmosphere as a bonanza for BP and RIL. At best this price is likely to be lower than the breakeven price for BP.
8What Dudley also wants is for the Prime Minister to retract from a decision taken by the Union Cabinet to apply the premium on deepwater discoveries made after November 2014. The cutoff date wasn`t exactly dictated by the Cabinet but it was the petroleum ministry that defined the date in writing, making it difficult for the government to retract from this position as that it would be interpreted as trying to retrospectively enforce an eligibility for BP-RIL`s discoveries to the gas price premium.
8Hard economics is what drives Dudley to look for a breakthrough in New Delhi but the irony is that it is politics of a kind that is beyond his grasp that will eventually determine the fate of his investment in India. Details
As the Dahej-Uran-Dabhol-Panvel (DUDPL) and the Dabhol-Bangalore pipelines (DBPL), which will be connected to the Jaigarh LNG Terminal, do not cater to the natural gas requirement in and around the south-western coastal stretch of Panjim, Karwar, Murudeshwar, Udupi and Mangalore, H-Energy Pvt. Limited (HEPL) has also submitted an Expression of Interest (EOI) to the Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build and operate a natural gas pipeline from Jaigarh (Maharashtra) to Mangalore (Karnataka).
8The coastal stretch of Panjim, Karwar, Murudeshwar, Udupi and Mangalore is presently not connected to the gas grid.
8As the demand for natural gas in this region is expected at approximately 7.0 mmscmd by 2019, H-Energy plans to lay a natural gas pipeline from Jaigarh to Mangalore to meet the natural gas requirement of south-west markets.
8The pipeline will originate from Jaigarh LNG terminal where re-gasified LNG from LNG terminal will be injected into the pipeline.
8The length of the proposed Jaigarh-Mangalore pipeline is 635 kms.
8A map depicting the route of the proposed gas pipeline, along with the delivery points, is also carried by the website. Details
8The coastal stretch of Panjim, Karwar, Murudeshwar, Udupi and Mangalore is presently not connected to the gas grid.
8As the demand for natural gas in this region is expected at approximately 7.0 mmscmd by 2019, H-Energy plans to lay a natural gas pipeline from Jaigarh to Mangalore to meet the natural gas requirement of south-west markets.
8The pipeline will originate from Jaigarh LNG terminal where re-gasified LNG from LNG terminal will be injected into the pipeline.
8The length of the proposed Jaigarh-Mangalore pipeline is 635 kms.
8A map depicting the route of the proposed gas pipeline, along with the delivery points, is also carried by the website. Details
H-Energy Gateway Private Limited`s (HEGPL) upcoming onshore LNG re-gasification terminal at Jaigarh, (Ratnagiri district) in Maharashtra, is expected to commence operations from 2019.
8The capacity of Jaigarh LNG terminal is 8.0 MMTPA. In other words, the LNG terminal will be capable of supplying 29.0 mmscmd of re-gasified LNG in the downstream markets on a daily basis.
8H-Energy plans to operate the Jaigarh terminal on a tolling basis, that is, offering import and storage facility to third parties. It will be the first tolling terminal in the country offering 100% of re-gasification capacity to gas importers as well as end users like power plants, fertilizer units, oil refineries and steel plants.
8Under this model, the customers will reserve re-gasification capacity to unload, store and re-gasify the LNG procured from international suppliers. The terminal owner shall act as an infrastructure provider and would not have any interest in the commodity.
8The customers will have the flexibility to source LNG at competitive prices and terms from worldwide sources, and use the terminal infrastructure for re-gasification of LNG to meet their natural gas requirement. Details
8The capacity of Jaigarh LNG terminal is 8.0 MMTPA. In other words, the LNG terminal will be capable of supplying 29.0 mmscmd of re-gasified LNG in the downstream markets on a daily basis.
8H-Energy plans to operate the Jaigarh terminal on a tolling basis, that is, offering import and storage facility to third parties. It will be the first tolling terminal in the country offering 100% of re-gasification capacity to gas importers as well as end users like power plants, fertilizer units, oil refineries and steel plants.
8Under this model, the customers will reserve re-gasification capacity to unload, store and re-gasify the LNG procured from international suppliers. The terminal owner shall act as an infrastructure provider and would not have any interest in the commodity.
8The customers will have the flexibility to source LNG at competitive prices and terms from worldwide sources, and use the terminal infrastructure for re-gasification of LNG to meet their natural gas requirement. Details
The PNGRB has okayed the H-Energy Gateway Pvt Ltd`s proposal to connect its Jaigarh LNG terminal to Dabhol.
8This allows H-Energy, a Hiranandani Group firm, to connect its LNG re-gasification terminal at Jaigarh, (Ratnagiri district) in Maharashtra with Dahej-Uran-Dabhol-Panvel (DUDPL) and Dabhol-Bangalore (DBPL) pipelines.
8H-Energy plans to lay an approximately 60 kilometer line from its LNG receipt facility at Jaigarh to Dabhol to hook-up or tie-in with the two pipelines so that it can reach more customers along the two pipelines.
8West coast already has four liquefied natural gas (LNG) import terminals, namely Dahej and Hazira terminals in Gujarat, Dabhol in Maharastra and Kochi in Kerala.
8Jaigarh also houses the 5 MMTPA Dabhol LNG import terminal of GAIL. Notably, both the gas pipelines -- DUDPL and DBPL -- are owned and operated by GAIL.
8The Jaigarh terminal will import gas in its liquid form (liquefied natural gas or LNG) in ships, unload it and re-convert it into its gaseous state before sending to consumers through pipeline. It will also have two LNG storage tanks of 190,000 cubic meters capacity each.
8H-Energy has been given time upto June 2018 to commission the tie-in connectivity. Details
8This allows H-Energy, a Hiranandani Group firm, to connect its LNG re-gasification terminal at Jaigarh, (Ratnagiri district) in Maharashtra with Dahej-Uran-Dabhol-Panvel (DUDPL) and Dabhol-Bangalore (DBPL) pipelines.
8H-Energy plans to lay an approximately 60 kilometer line from its LNG receipt facility at Jaigarh to Dabhol to hook-up or tie-in with the two pipelines so that it can reach more customers along the two pipelines.
8West coast already has four liquefied natural gas (LNG) import terminals, namely Dahej and Hazira terminals in Gujarat, Dabhol in Maharastra and Kochi in Kerala.
8Jaigarh also houses the 5 MMTPA Dabhol LNG import terminal of GAIL. Notably, both the gas pipelines -- DUDPL and DBPL -- are owned and operated by GAIL.
8The Jaigarh terminal will import gas in its liquid form (liquefied natural gas or LNG) in ships, unload it and re-convert it into its gaseous state before sending to consumers through pipeline. It will also have two LNG storage tanks of 190,000 cubic meters capacity each.
8H-Energy has been given time upto June 2018 to commission the tie-in connectivity. Details
KEI-RSOS Petroleum and Energy Pvt. Ltd (KRPEPL), the entity witch was authorized by the PNGRB to lay the Ennore-Nellore gas pipeline (ENPL), has handed over the authorization for the pipeline to its subsidiary, Gas Transmission India Pvt. Limited (GTIL).
8Accordingly, necessary amendment in the Letter of Authorization in favour of GTIL has been made by the PNGRB.
8The authorization to construct the pipeline was granted to KEI-RSOS on December 2, 2014.
8As sought by the PNGRB, KRPEPL has furnished an undertaking stating that that KRPEPL and RRAT, put together, would hold more than 50% equity shares in GTIL till the project is completed.
8It has also agreed that the relevant documents from the Registrar of Companies in this regard would be filled by GTIL on a quarterly basis.
8No changes have been made in any other terms and conditions.
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8Accordingly, necessary amendment in the Letter of Authorization in favour of GTIL has been made by the PNGRB.
8The authorization to construct the pipeline was granted to KEI-RSOS on December 2, 2014.
8As sought by the PNGRB, KRPEPL has furnished an undertaking stating that that KRPEPL and RRAT, put together, would hold more than 50% equity shares in GTIL till the project is completed.
8It has also agreed that the relevant documents from the Registrar of Companies in this regard would be filled by GTIL on a quarterly basis.
8No changes have been made in any other terms and conditions.
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Gas Transmission India Pvt. Limited (GTIL) plans to commission the Ennore-Nellore gas pipeline (ENPL) by December 2017.
8GTIL, along with KRPEPL and RRAT, had received the LOA from the regulator PNGRB for laying and operation of the pipeline for a period of 25 years.
8The 24-inch, 430-km-long, gas pipeline will have a carrying capacity of 36 mmscmd. Over and above this, an extra capacity of 9.0 mmscmd will also be available for use on a common carrier basis by any third party on an open and non-discriminatory basis.
8The pipeline has been planned to evacuate the RLNG from the proposed Krishnapatnam terminal of LNG Bharat and the proposed Ennore terminal of IOC.
8The pipeline from Ennore (Tamil Nadu) to Nellore (Andhra Pradesh) will pass through Sulurpeta (Andhra Pradesh), Renigunta (Andhra Pradesh) and Krishnapatnam (Andhra). Details
8GTIL, along with KRPEPL and RRAT, had received the LOA from the regulator PNGRB for laying and operation of the pipeline for a period of 25 years.
8The 24-inch, 430-km-long, gas pipeline will have a carrying capacity of 36 mmscmd. Over and above this, an extra capacity of 9.0 mmscmd will also be available for use on a common carrier basis by any third party on an open and non-discriminatory basis.
8The pipeline has been planned to evacuate the RLNG from the proposed Krishnapatnam terminal of LNG Bharat and the proposed Ennore terminal of IOC.
8The pipeline from Ennore (Tamil Nadu) to Nellore (Andhra Pradesh) will pass through Sulurpeta (Andhra Pradesh), Renigunta (Andhra Pradesh) and Krishnapatnam (Andhra). Details
Maharashtra Natural Gas Limited (MNGL), the company which has been authorized to set up a City Gas Distribution (CGD) network in Pune, will soon be carrying out a hydrological survey of Mutha, Pawana and Indryani rivers for laying of steel gas pipelines.
8Along with a detailed hydrological survey, MNGL will also get the geotechnical parameters framed, including soil investigation, for the river crossings.
8The number and type of bore holes will be decided on the basis of the results of the geotechnical parameters, the soil report and the type of water bodies.
8Other than acquiring the hydrographic data, the objective of the hydrographic investigation will be to obtain the riverbed profile and the nature of the bed material.
8The purpose of obtaining this data is to establish accurate bed profiles to map the surfacial features at the river crossings. Similarly, the requirement of soil investigation is to develop various soil parameters for calculation of scour depth and installation of the gas pipeline.
8MGNL has already floated a tender for carrying out the hydrological survey, the last submission date for which is July 23, 2015 (15.00 hrs).
8MNGL is a JV formed by GAIL and BPCL for implementation of the CGD project in Pune. The company will be supplying PNG to domestic, commercial and industrial customers and CNG to automobiles in Pune, Pimpri-Chinchwad, Chakan, Talegaon and Hinjewadi areas. Details
8Along with a detailed hydrological survey, MNGL will also get the geotechnical parameters framed, including soil investigation, for the river crossings.
8The number and type of bore holes will be decided on the basis of the results of the geotechnical parameters, the soil report and the type of water bodies.
8Other than acquiring the hydrographic data, the objective of the hydrographic investigation will be to obtain the riverbed profile and the nature of the bed material.
8The purpose of obtaining this data is to establish accurate bed profiles to map the surfacial features at the river crossings. Similarly, the requirement of soil investigation is to develop various soil parameters for calculation of scour depth and installation of the gas pipeline.
8MGNL has already floated a tender for carrying out the hydrological survey, the last submission date for which is July 23, 2015 (15.00 hrs).
8MNGL is a JV formed by GAIL and BPCL for implementation of the CGD project in Pune. The company will be supplying PNG to domestic, commercial and industrial customers and CNG to automobiles in Pune, Pimpri-Chinchwad, Chakan, Talegaon and Hinjewadi areas. Details
8Crude oil imports cost lower by 35% in June 2015: Of India's total imports worth $33116.55 million (Rs 2,11,484.61 crore) during June 2015, crude oil imports during the month were valued at $8,676.38 million which was 34.97% lower than oil imports valued at $13,342.79 million in the corresponding period last year.
--Crude oil imports during the April-June, 2015-16, period, were valued at $24,657.97 million which was 39.54% lower than the oil imports of $40,785.50 million in the corresponding period last year.
8Kirpal Singh resigns from post of Executive Chairman, Dolphin Offshore: Dolphin Offshore Enterprises (India) Ltd has informed the BSE that the Board of Directors of the Company at its meeting held on July 14, 2015, accepted the resignation of Rear Admiral Kirpal Singh from the post of Executive Chairman of the company.
--Singh, however, will continue to function as a Non-Executive Chairman of the Company. Details
--Crude oil imports during the April-June, 2015-16, period, were valued at $24,657.97 million which was 39.54% lower than the oil imports of $40,785.50 million in the corresponding period last year.
8Kirpal Singh resigns from post of Executive Chairman, Dolphin Offshore: Dolphin Offshore Enterprises (India) Ltd has informed the BSE that the Board of Directors of the Company at its meeting held on July 14, 2015, accepted the resignation of Rear Admiral Kirpal Singh from the post of Executive Chairman of the company.
--Singh, however, will continue to function as a Non-Executive Chairman of the Company. Details
The petroleum minister Dharmendra Pradhan received a delegation led by CEO of BP, Bob Dudley today (July 15, 2015).
8Dudley apprised Pradhan of various activities of BP in India and the future plans to expand business in oil and gas sector.
8Pradhan appreciated the role played by BP in the Indian hydrocarbon sector and welcomed it to increase its presence in upstream and downstream sectors in India.
8Though the details of the meeting are not yet known, it is worth mentioning here that in the last fiscal, the multinational had recorded an $810-million charge (comprising a $415 million impairment charge and a $395 million exploration write-off) to write down the value ascribed to the block KG-D6 in India as part of the acquisition of upstream interests from RIL in 2011.
8The charge, according to BP, had arisen as a result of uncertainty in the future long-term gas price outlook, following the introduction of a new formula for Indian gas prices.
8BP had earlier said that it is expecting further clarity on the new pricing policy and the premiums for future developments to emerge in the due course.
8In India, BP has a 30% interest in four oil and gas PSAs operated by RIL, and is a partner with RIL in a 50:50 joint operation for sourcing and marketing of gas in India. Details
8Dudley apprised Pradhan of various activities of BP in India and the future plans to expand business in oil and gas sector.
8Pradhan appreciated the role played by BP in the Indian hydrocarbon sector and welcomed it to increase its presence in upstream and downstream sectors in India.
8Though the details of the meeting are not yet known, it is worth mentioning here that in the last fiscal, the multinational had recorded an $810-million charge (comprising a $415 million impairment charge and a $395 million exploration write-off) to write down the value ascribed to the block KG-D6 in India as part of the acquisition of upstream interests from RIL in 2011.
8The charge, according to BP, had arisen as a result of uncertainty in the future long-term gas price outlook, following the introduction of a new formula for Indian gas prices.
8BP had earlier said that it is expecting further clarity on the new pricing policy and the premiums for future developments to emerge in the due course.
8In India, BP has a 30% interest in four oil and gas PSAs operated by RIL, and is a partner with RIL in a 50:50 joint operation for sourcing and marketing of gas in India. Details
Essar Oil Ltd (EOL) will shutdown its 400,000 barrels-per-day (bpd) Vadinar refinery for about a month in September 2015.
8The refinery will be shut down for planned maintenance.
8Earlier, there were reports that the shutdown would happen during July-August but now it has been planned in September.
8Chennai Petroleum Corp Ltd (CPCL) will also put a 1.85 MMTPA hydrocracker plant on maintenance from July 19, 2015.
8CPCL's hydrocracker plant will be shut for a month for routine maintenance at its Manali refinery that has a capacity of 10.5 MMTPA. Details
8The refinery will be shut down for planned maintenance.
8Earlier, there were reports that the shutdown would happen during July-August but now it has been planned in September.
8Chennai Petroleum Corp Ltd (CPCL) will also put a 1.85 MMTPA hydrocracker plant on maintenance from July 19, 2015.
8CPCL's hydrocracker plant will be shut for a month for routine maintenance at its Manali refinery that has a capacity of 10.5 MMTPA. Details
The following well locations have been finalized by ONGC:
WestTripura PML:
8In this PML block, testing of three wells are to be completed by deploying three work over rigs (BM-24, BM-26 and BM-28) . The new locations released in this block are BRMAE, BRMAF, BRMAG and BRMAH.
8More new locations will be generated after studying recently acquired 2D data in the Khowai- Alyanpur area. Further more locations will be generated in this block after the acquisition of the planned 3D seismic data in the Bulge area and 2D data from central part of the Baramura area and in the southern part of the Tulamura area.
8A total of 18 locations will be drilled.
Sundulbari-Agartala Dome PML:
8In this PML block, three exploratory locations -- RBJ-7, RSD-12 and RSD-15 -- have been approved for release.
8After the drilling results of these locations come in, more new locations will be generated for establishing the full potential of the area.
8A total of 6 wells will be drilled in this area.
Agartala Dome Extension-II PML:
8In this block, gas has been established both from Upper and Middle Bhuban formations. New wells -- NLAD-1,NLAD-2,NLAD-3 and NLAD-4 -- will be drilled now on its western as well as eastern flanks to further enhance the reserve base of the structure.
8A total of 4 wells are planned to be drilled in this area.
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Drilling operations will be carried out using electrical rigs which will use water based mud as a drilling fluid. Each well will take 90-100 days to drill.
8The power requirement of each drilling rig will be met by using six Diesel Generator sets with a diesel consumption of about 06 Kl/day.
8Material requirement and mobilization will be done from ONGC's base in Silchar.
8Details of solids handling system on each rig:
-- Shale Shakers - 1200 GPM Capacity
-- Desander – 1200 GPM Capacity
-- Desilter – 1200 GPM Capacity
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8The power requirement of each drilling rig will be met by using six Diesel Generator sets with a diesel consumption of about 06 Kl/day.
8Material requirement and mobilization will be done from ONGC's base in Silchar.
8Details of solids handling system on each rig:
-- Shale Shakers - 1200 GPM Capacity
-- Desander – 1200 GPM Capacity
-- Desilter – 1200 GPM Capacity
Click here on Reports for more. Details
