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Jul 2017
A Rs 800 crore LPG import terminal upgradation project is around the horizon.
8The following process equipment requirements will come up:
--Jetty Import facilities
-- Propane/Butane /LPG storage, handling & dispatch facilities
-- Flash Gas Compressor Section
8Offsite & Utilities which includes:
-- Steam generation
-- Instrument Air system
-- Cooling Water system
-- HSD storage and transportation
8Electrical system & equipments including:
--New Switchyard, pole structure, panel etc.
-- New Transformer
-- New switchboard
-- New HT/LT DG sets,
8Control & Instrumentation with latest supporting Hardware
8Fire Protection & Fighting System
-- It has been designed for single fire scenario and in compliance with OISD 236 and OISD 144.
Click on Reports for full information Details
8The following process equipment requirements will come up:
--Jetty Import facilities
-- Propane/Butane /LPG storage, handling & dispatch facilities
-- Flash Gas Compressor Section
8Offsite & Utilities which includes:
-- Steam generation
-- Instrument Air system
-- Cooling Water system
-- HSD storage and transportation
8Electrical system & equipments including:
--New Switchyard, pole structure, panel etc.
-- New Transformer
-- New switchboard
-- New HT/LT DG sets,
8Control & Instrumentation with latest supporting Hardware
8Fire Protection & Fighting System
-- It has been designed for single fire scenario and in compliance with OISD 236 and OISD 144.
Click on Reports for full information Details
A set of clarifications issued by the ministry of steel to queries on the notification that provides purchase preference to domestically manufactured iron and steel products will push the cost curve significantly upwards for the oil and gas industry
8Steel and iron constitute a significant portion of the cost element in the oil and gas industry.
8Value addition has been differently defined, and a bare steel pipe cannot be imported anymore, as processes like coating beyond finished iron and steel products will not be counted as value addition.
8Then again, welding, multistart thread connectors and fittings will not be counted towards value addition.
8This makes it an uneven field entirely, and foreign suppliers will have to entirely keep away from the Indian market.
8Eventually, given that India has a limited number of steel pipe suppliers, price cartelization cannot be ruled out, when there is no fear of cheaper imports
8If Make in India is a hark back to the indigenization programme or import substitution efforts launched when India was terribly short of foreign exchange, it will have a detrimental overall impact on the Indian industry, with the cost curve going up across the board.
8Keeping competitive forces at bay or under leash will not do the economy or the oil industry any good in the long run.
Click on Reports to find out more Details
8Steel and iron constitute a significant portion of the cost element in the oil and gas industry.
8Value addition has been differently defined, and a bare steel pipe cannot be imported anymore, as processes like coating beyond finished iron and steel products will not be counted as value addition.
8Then again, welding, multistart thread connectors and fittings will not be counted towards value addition.
8This makes it an uneven field entirely, and foreign suppliers will have to entirely keep away from the Indian market.
8Eventually, given that India has a limited number of steel pipe suppliers, price cartelization cannot be ruled out, when there is no fear of cheaper imports
8If Make in India is a hark back to the indigenization programme or import substitution efforts launched when India was terribly short of foreign exchange, it will have a detrimental overall impact on the Indian industry, with the cost curve going up across the board.
8Keeping competitive forces at bay or under leash will not do the economy or the oil industry any good in the long run.
Click on Reports to find out more Details
The offshore rig market continues to be turmoil and the free fall in hire rates seem to continuing as of now.
8What is more, a total of 154 rigs are under construction.
8Jackups make up the vast majority of this set, with 100 units currently under construction.
8The Jackup number is more than double the combined number of drillships, semis, and tenders currently being built, of which there are 30, 16, and eight under construction, respectively.
8Out of all of these rigs, only 25 were ordered with contracts in hand or by operators themselves.
8Of the remaining 129 speculative units, so far none have locked in charters since construction began.
8The situation is so bad that some contractors have opted to cancel the construction contracts with shipyards on which work has already started or, in some cases, nearly finished, primarily ultra-deepwater floaters.
The website carries here a worldwide new rig construction database as of June 2017, providing the following details:
8Rig name
8Rig type
8Water depth
8Construction status
8Delivery date
8Build yard
8Build country
Click on Reports for more Details
8What is more, a total of 154 rigs are under construction.
8Jackups make up the vast majority of this set, with 100 units currently under construction.
8The Jackup number is more than double the combined number of drillships, semis, and tenders currently being built, of which there are 30, 16, and eight under construction, respectively.
8Out of all of these rigs, only 25 were ordered with contracts in hand or by operators themselves.
8Of the remaining 129 speculative units, so far none have locked in charters since construction began.
8The situation is so bad that some contractors have opted to cancel the construction contracts with shipyards on which work has already started or, in some cases, nearly finished, primarily ultra-deepwater floaters.
The website carries here a worldwide new rig construction database as of June 2017, providing the following details:
8Rig name
8Rig type
8Water depth
8Construction status
8Delivery date
8Build yard
8Build country
Click on Reports for more Details
8A new riserless plug and abandonment system offers the promise of revolutionizing deepwater operations at a time when the industry needs a costsaving tool to shore up the bottom line. Click on Report for more.
8A recent groundswell of investigation, analysis, and reporting at major conferences has centered on how the industry can improve its approach to subsea well intervention. This is largely being driven by a significant upturn in global activity in the sector, which has intensified to the point that new API standards are now being written specifically for rigless interventions. Click on Report for more.
8Three emerging technologies are likely to revolutionize sub sea interventions, and they are:
-- Subsea coiled tubing
-- Surface handling systems
-- Subsea 18¾-in. equipment for P&A capability. Click on Report for more.
8Worldwide offshore rig count and rig utilization rate, as of June, 2017. Click on Report for more.
8A comprehensive analysis of the ship recycling business as of last week in India, Bangladesh and Pakistan: Lower orders from India are holding back the market. Click on Report for more.
8Crude prices have gone up on Thursday, on declining U.S. fuel supplies but high supplies and the surplus output from OPEC will restrain the further rise in the price. Click on Report for more.
8State-run Petrobangla will sign an ‘engineering, procurement and construction’ (EPC) contract with Petronet LNG by September to build an LNG re-gasification terminal at Kutubdia. The $950-million terminal project will have the capacity to re-gasify 7.5 million tonnes of liquefied natural gas per year. Click on Report for more.
8A comprehensive look at India's engineering exports as of June, 2017. Click on Report for more.
8A detailed report on piracy and armed robbery in ships in Asia as of June, 2017. Click on Report for more.
8A full report on how six Months Into Term, Trump Has Fully Abandoned Populism In Favor of Giveaways to Industry. Case by case examples of how Trump is now catering only to corporate interests. Click on Report for more.
8Petroleum minister holds parleys to bring down import dependency by 10%.
Click on Reports for more Details
8A recent groundswell of investigation, analysis, and reporting at major conferences has centered on how the industry can improve its approach to subsea well intervention. This is largely being driven by a significant upturn in global activity in the sector, which has intensified to the point that new API standards are now being written specifically for rigless interventions. Click on Report for more.
8Three emerging technologies are likely to revolutionize sub sea interventions, and they are:
-- Subsea coiled tubing
-- Surface handling systems
-- Subsea 18¾-in. equipment for P&A capability. Click on Report for more.
8Worldwide offshore rig count and rig utilization rate, as of June, 2017. Click on Report for more.
8A comprehensive analysis of the ship recycling business as of last week in India, Bangladesh and Pakistan: Lower orders from India are holding back the market. Click on Report for more.
8Crude prices have gone up on Thursday, on declining U.S. fuel supplies but high supplies and the surplus output from OPEC will restrain the further rise in the price. Click on Report for more.
8State-run Petrobangla will sign an ‘engineering, procurement and construction’ (EPC) contract with Petronet LNG by September to build an LNG re-gasification terminal at Kutubdia. The $950-million terminal project will have the capacity to re-gasify 7.5 million tonnes of liquefied natural gas per year. Click on Report for more.
8A comprehensive look at India's engineering exports as of June, 2017. Click on Report for more.
8A detailed report on piracy and armed robbery in ships in Asia as of June, 2017. Click on Report for more.
8A full report on how six Months Into Term, Trump Has Fully Abandoned Populism In Favor of Giveaways to Industry. Case by case examples of how Trump is now catering only to corporate interests. Click on Report for more.
8Petroleum minister holds parleys to bring down import dependency by 10%.
Click on Reports for more Details
By 2030, the net electric owner’s benefit is more than Rs 9,200/yr as against a conventional car.
8When the difference of only the annual fuel costs of conventional vehicles and EVs is taken, it will work out to about Rs 20,000/yr.
8Between 2015 and 2030, the incremental capital cost of EVs over conventional vehicles is expected to drop by over 60%–70%, eventually making EV owners switch from conventional vehicles.
8What is more, the load on the electricity grid will not be unmanageable at all, the exercise shows. By 2030, the all electric load will be only 3.3% of India’s total electricity load.
8The total peak BEV charging load is 23 GW, typically on weekends or holidays, which is about 6% of the total peak load by 2030 (402 GW)
8Smart charging and metering can take on the load with alacrity and will push renewable energy use, the projections show.
8Find out more on what the projections are for crude imports and what kind of savings are possible on this front.
8Working backwards, how will refining capacities be hit by such a revolution or CNG supplies?
8Analysts in oil companies will have their hands full figuring out how all these changes will impact the future of today's oil marketing companies.
Click on Reports for more Details
8When the difference of only the annual fuel costs of conventional vehicles and EVs is taken, it will work out to about Rs 20,000/yr.
8Between 2015 and 2030, the incremental capital cost of EVs over conventional vehicles is expected to drop by over 60%–70%, eventually making EV owners switch from conventional vehicles.
8What is more, the load on the electricity grid will not be unmanageable at all, the exercise shows. By 2030, the all electric load will be only 3.3% of India’s total electricity load.
8The total peak BEV charging load is 23 GW, typically on weekends or holidays, which is about 6% of the total peak load by 2030 (402 GW)
8Smart charging and metering can take on the load with alacrity and will push renewable energy use, the projections show.
8Find out more on what the projections are for crude imports and what kind of savings are possible on this front.
8Working backwards, how will refining capacities be hit by such a revolution or CNG supplies?
8Analysts in oil companies will have their hands full figuring out how all these changes will impact the future of today's oil marketing companies.
Click on Reports for more Details
In a recent interview, recently retired IOC chairman B. Ashok in an interview dismissed the EV threat as something way away in the future, but the future may come knocking sooner than he thinks.
8India is the first country to officially declare that it will move all electric vehicle supply (EV) system by 2030 and this is no doubt a very tall claim by any yardstick, but the oil and gas industry must take note of fresh modeling exercises that seem to show that India can come quite close to target by 2030.
The exercise answers the following questions:
8How does the total vehicle ownership cost of EVs compare with the cost of conventional vehicles in India?
8What is the additional load due to BEV charging in India?
8What is the impact on power-sector investments, costs, and utility revenue?
8How can smart EV charging help RE grid integration?
8What is the impact on crude oil imports?
8What is the impact on GHG emissions?
8Dramatic new insights are available and they may be a cause for alarm for those who are adherent for a sharp increase in refining capacity.
Click on Reports for more Details
8India is the first country to officially declare that it will move all electric vehicle supply (EV) system by 2030 and this is no doubt a very tall claim by any yardstick, but the oil and gas industry must take note of fresh modeling exercises that seem to show that India can come quite close to target by 2030.
The exercise answers the following questions:
8How does the total vehicle ownership cost of EVs compare with the cost of conventional vehicles in India?
8What is the additional load due to BEV charging in India?
8What is the impact on power-sector investments, costs, and utility revenue?
8How can smart EV charging help RE grid integration?
8What is the impact on crude oil imports?
8What is the impact on GHG emissions?
8Dramatic new insights are available and they may be a cause for alarm for those who are adherent for a sharp increase in refining capacity.
Click on Reports for more Details
Modeling exercises have shown that a multi-operator approach, co-developments and partnerships can make a big difference.
8Performance driven commercial collaborations between suppliers and producers is the new norm
8One example of the collaboration model is to build a cross-operator inventory of follow-on activities that provides opportunities for tiebacks to existing deepwater facilities.
8This multi-operator approach could accelerate development activities at a reduced cost, significantly improving rates of return and supporting continued investment.
8Other opportunities for operator collaboration include sharing logistics costs, such as helicopter flights, within a basin. Collaboration initiatives are already under way in the North Sea, where offshore operators announced in 2016 that they were in talks to merge substantial parts of their operations, including procurement, logistics, and finance departments
8Gulf of Mexico has seven upstream operators collaborating to reduce costs
8In India however, the best collaboration can be between ONGC and the RIL-BP regime in the KG Basin
8The economics of scale can be massive.
8Nevertheless, political compulsions of the new government do not allow for such collaborations as of the moment but there is no harm in conducting a broader study on the benefits of multi-operator approach in the KG Basin, it will be a helpful first step.
8If the economics can be established, selling it to all stakeholders can be a subsequent exercise
Click on Reports for more Details
8Performance driven commercial collaborations between suppliers and producers is the new norm
8One example of the collaboration model is to build a cross-operator inventory of follow-on activities that provides opportunities for tiebacks to existing deepwater facilities.
8This multi-operator approach could accelerate development activities at a reduced cost, significantly improving rates of return and supporting continued investment.
8Other opportunities for operator collaboration include sharing logistics costs, such as helicopter flights, within a basin. Collaboration initiatives are already under way in the North Sea, where offshore operators announced in 2016 that they were in talks to merge substantial parts of their operations, including procurement, logistics, and finance departments
8Gulf of Mexico has seven upstream operators collaborating to reduce costs
8In India however, the best collaboration can be between ONGC and the RIL-BP regime in the KG Basin
8The economics of scale can be massive.
8Nevertheless, political compulsions of the new government do not allow for such collaborations as of the moment but there is no harm in conducting a broader study on the benefits of multi-operator approach in the KG Basin, it will be a helpful first step.
8If the economics can be established, selling it to all stakeholders can be a subsequent exercise
Click on Reports for more Details
Which are the major areas where deepwater costs are coming down?
8Find out which components are contributing most to the cost decrease.
8There is a direct cost reduction, there an overrun reduction, there are savings on shorter time cycles and standardizations.
8In direct cost reductions, component wise reductions are highlighted in the analysis
8Standardization impact is measured as also faster completion time
Additional benefits include:
-- Lower capex
-- Purchase rationalization
-- More effective engineering hours
Click on Reports for more Details
8Find out which components are contributing most to the cost decrease.
8There is a direct cost reduction, there an overrun reduction, there are savings on shorter time cycles and standardizations.
8In direct cost reductions, component wise reductions are highlighted in the analysis
8Standardization impact is measured as also faster completion time
Additional benefits include:
-- Lower capex
-- Purchase rationalization
-- More effective engineering hours
Click on Reports for more Details
Deepwater production costs are falling at a dramatic pace and it will have massive implications for around $ 15 billion in investments eventually lined up in the KG Basin.
8Costs are already down 30% from 2014.
8A period of aggressive cost compression has brought average breakeven costs for projects down from $70/bbl in 2014 to approximately $40-50/bbl in 1Q 2017
8This breakeven analysis reflects full life-cycle economics that includes government take, development drilling, facilities, equipment, subsea, and operating expenditure with a 10% allowance for return on capital.
8While commercial gains primarily drove 2015 breakeven estimates to $55/bbl, engineering re-designs and efficiency improvements are driving the additional $10-15/bbl impact on breakeven projections for 2017 estimates.
8The focus is now shifting to get to successful execution of $40/bbl or lower breakeven costs
8This will need step changes in efficiency and performance.
8But not impossible.
Click on Reports for a detailed analysis Details
8Costs are already down 30% from 2014.
8A period of aggressive cost compression has brought average breakeven costs for projects down from $70/bbl in 2014 to approximately $40-50/bbl in 1Q 2017
8This breakeven analysis reflects full life-cycle economics that includes government take, development drilling, facilities, equipment, subsea, and operating expenditure with a 10% allowance for return on capital.
8While commercial gains primarily drove 2015 breakeven estimates to $55/bbl, engineering re-designs and efficiency improvements are driving the additional $10-15/bbl impact on breakeven projections for 2017 estimates.
8The focus is now shifting to get to successful execution of $40/bbl or lower breakeven costs
8This will need step changes in efficiency and performance.
8But not impossible.
Click on Reports for a detailed analysis Details
The LNG market is going to remain very competitive but prices will have to eventually reflect the cost of production for a fresh round of investments to come in around mid-2025.
8A comprehensive modeling exercise has come out with the view that marginal costing by Qatar can keep Asian spot prices at the $ 3/mmbtu range for a very long time to come but the cost of long term LNG contracts will be significantly higher.
8The US will have enough gas to keep the markets supplied with brownfield projects well into 2035s.
8For the next five years however, LNG prices will remain near the marginal cost of a shipment from the U.S. Gulf Coast to market destinations.
8The US will however play an outsized role in the global LNG market as brownfield U.S. LNG projects (expansions at the existing terminals) will likely be among the lowest cost options for new export capacity.
8When the next round of investments take place, LNG price required for a typical, moderate-cost integrated will be about US $7.40/MMBtu (US $6.30/MMBtu after the benefit of associated liquids).
8Projects in the Middle East and East Africa would require delivered ex ship (DES) prices in Asia of roughly $8/MMBtu to be economical.
Click on Details and Reports for more Details
8A comprehensive modeling exercise has come out with the view that marginal costing by Qatar can keep Asian spot prices at the $ 3/mmbtu range for a very long time to come but the cost of long term LNG contracts will be significantly higher.
8The US will have enough gas to keep the markets supplied with brownfield projects well into 2035s.
8For the next five years however, LNG prices will remain near the marginal cost of a shipment from the U.S. Gulf Coast to market destinations.
8The US will however play an outsized role in the global LNG market as brownfield U.S. LNG projects (expansions at the existing terminals) will likely be among the lowest cost options for new export capacity.
8When the next round of investments take place, LNG price required for a typical, moderate-cost integrated will be about US $7.40/MMBtu (US $6.30/MMBtu after the benefit of associated liquids).
8Projects in the Middle East and East Africa would require delivered ex ship (DES) prices in Asia of roughly $8/MMBtu to be economical.
Click on Details and Reports for more Details
For reference purposes, the website carries here a separate country-wise breakdown of unsanctioned LNG projects, their volumes and breakeven gas rates as of the year 2025
8The analysis shows that Iran and Qatar will have the lowest rates
8Followed by UAE and Mozambique
8The US can provide the highest volume of LNG supply at a slightly higher LNG price
Click on Reports for more Details
8The analysis shows that Iran and Qatar will have the lowest rates
8Followed by UAE and Mozambique
8The US can provide the highest volume of LNG supply at a slightly higher LNG price
Click on Reports for more Details
Now that BP has purchased the entire LNG production -- over a 20 year period -- from ENI's Coral South project in Mozambique deepwaters, the focus has shifted to how soon the Rovuma Area 1 Offshore block owned by Anadarko Petroleum, in which the Indian trio -- made up of ONGC, Bharat Petro Resoures Ltd (BPRL) and Oil India Ltd (OIL) -- is going to move to FID stage.
8The Rovuma reserves are estimated at a massive 50 to 70 TCF of gas just for Rovuma Area 1.
8Mozambique will be one of the new entrants over the next decade. With around 100+ tcf discoveries, it will be one of the major LNG exporters in the 2020s and beyond.
8While Mozambique’s discoveries are located in deepwater, the cost of these resources are amongst the most competitive due to scale and proximity to key Asian markets.
8As for the promoters of Rovuma Area 1, the work has shifted to changing their business model, so as to be able to trim down costs and make the end price attractive to LNG buyers.
8Like the BP deal with ENI, it is learned that the Anadarko led consortium is on the look out for a bulk buyers for two trains of LNG, as finding individual offtakers to make the project bankable going to be a very difficult exercise.
Click on Details and Reports for more Details
8The Rovuma reserves are estimated at a massive 50 to 70 TCF of gas just for Rovuma Area 1.
8Mozambique will be one of the new entrants over the next decade. With around 100+ tcf discoveries, it will be one of the major LNG exporters in the 2020s and beyond.
8While Mozambique’s discoveries are located in deepwater, the cost of these resources are amongst the most competitive due to scale and proximity to key Asian markets.
8As for the promoters of Rovuma Area 1, the work has shifted to changing their business model, so as to be able to trim down costs and make the end price attractive to LNG buyers.
8Like the BP deal with ENI, it is learned that the Anadarko led consortium is on the look out for a bulk buyers for two trains of LNG, as finding individual offtakers to make the project bankable going to be a very difficult exercise.
Click on Details and Reports for more Details
Gas consumption has surprisingly stayed flat in India during the April-June, 2017 quarter.
8Coupled with a 6% rise in domestic production in June, LNG imports, at 1,768 MMSCM, was 9.70 % lower than the corresponding month of the previous year.
8The cumulative import of 5886.64 MMSCM for the current year for April-June 2017 was lower by 5.69% for the same period last year
8What is the significance of this trend?
8The possibility of LPG and other liquid fuels taking a grip in India's dual use industrial furnaces may be a reason.
8Meanwhile, petroleum product consumption registered a marginal growth of 0.4% during June, 2017 as compared to 11.5% growth during June, 2016. Except for ATF, HSD, LPG and MS, all other products registered negative growth during June, 2017.
8During the period April-June, 2017, petroleum product consumption registered a much slower growth of 3.0% as compared to 10.2% growth during the same period last year.
Click on Reports for more Details
8Coupled with a 6% rise in domestic production in June, LNG imports, at 1,768 MMSCM, was 9.70 % lower than the corresponding month of the previous year.
8The cumulative import of 5886.64 MMSCM for the current year for April-June 2017 was lower by 5.69% for the same period last year
8What is the significance of this trend?
8The possibility of LPG and other liquid fuels taking a grip in India's dual use industrial furnaces may be a reason.
8Meanwhile, petroleum product consumption registered a marginal growth of 0.4% during June, 2017 as compared to 11.5% growth during June, 2016. Except for ATF, HSD, LPG and MS, all other products registered negative growth during June, 2017.
8During the period April-June, 2017, petroleum product consumption registered a much slower growth of 3.0% as compared to 10.2% growth during the same period last year.
Click on Reports for more Details
A massive response -- as many as 27 jackup rigs against the recent ONGC tender -- is a big sign that rig hire rates will now fall below ONGC's own reserve price.
8It is learned that as many as 10 Indian and foreign companies have offered these rigs in the tender
8Clearly, everyone is bidding aggressively
8The rigs rates are pegged keeping only variable costs in mind, as the alternative will be cold or warm stacking them or shelving them entirely
8Find out more on the baseline pricing that the bidders had taken into account while bidding for the ONGC tender
Click on Details for more Details
8It is learned that as many as 10 Indian and foreign companies have offered these rigs in the tender
8Clearly, everyone is bidding aggressively
8The rigs rates are pegged keeping only variable costs in mind, as the alternative will be cold or warm stacking them or shelving them entirely
8Find out more on the baseline pricing that the bidders had taken into account while bidding for the ONGC tender
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Supply of DP Transmitters for Panipat Refinery & Petrochemical Complex Details
8Procurement of Complete Heat Exchangers Details
8Procurement of Modified Tube Bundles and Naphtha Stabilizer Condenser Details
8Providing EPCM Services for utilisation of RLNG in refinery Details
8Procurement of Valve (Gate/Globe/Check) for refinery Details
8Carrying out HDPE Piping Works in refinery Details
8REIA Study from Proposed Neptha Hydro Treatment Unit and Catalytic Reforming Unit Project at refinery Details
8Expert supervision of Pilot Operated Safety Valve maintenance at refinery Details
8Procurement of Pressure Vessels for BS VI Project Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8FM Arun Jaitley to head panel for 'quick decisions' on ONGC-HPCL merger Details
8Flare deal: ONGC's new test of resilience Details
8Will this merger fuel India’s oil industry? Details
8British Gas pays customers $1.4 million for failed appointments Details
8Thailand's PTT considers taking stake in Malaysia gas facility Details
8New ministerial panel mulls multiple ways to cut oil imports Details
8RIL Q1 standalone net profit up 9% at Rs 8,196 crore Details
8Oil stable after large fall in U.S. fuel stocks, but markets remain bloated Details
8Oil jumps to six-week high on surprisingly big U.S. inventory draws Details
8Russian think tank expects oil exports to decline in 2017 Details
8Russia to work with OPEC on oil market rebalancing - source Details
You can also click on Newsclips for more Details
8Supply of DP Transmitters for Panipat Refinery & Petrochemical Complex Details
8Procurement of Complete Heat Exchangers Details
8Procurement of Modified Tube Bundles and Naphtha Stabilizer Condenser Details
8Providing EPCM Services for utilisation of RLNG in refinery Details
8Procurement of Valve (Gate/Globe/Check) for refinery Details
8Carrying out HDPE Piping Works in refinery Details
8REIA Study from Proposed Neptha Hydro Treatment Unit and Catalytic Reforming Unit Project at refinery Details
8Expert supervision of Pilot Operated Safety Valve maintenance at refinery Details
8Procurement of Pressure Vessels for BS VI Project Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8FM Arun Jaitley to head panel for 'quick decisions' on ONGC-HPCL merger Details
8Flare deal: ONGC's new test of resilience Details
8Will this merger fuel India’s oil industry? Details
8British Gas pays customers $1.4 million for failed appointments Details
8Thailand's PTT considers taking stake in Malaysia gas facility Details
8New ministerial panel mulls multiple ways to cut oil imports Details
8RIL Q1 standalone net profit up 9% at Rs 8,196 crore Details
8Oil stable after large fall in U.S. fuel stocks, but markets remain bloated Details
8Oil jumps to six-week high on surprisingly big U.S. inventory draws Details
8Russian think tank expects oil exports to decline in 2017 Details
8Russia to work with OPEC on oil market rebalancing - source Details
You can also click on Newsclips for more Details
BPCL is undertaking a massive expansion of its Kochi refinery complex.
8Like IOC did with the Paradip refinery, BPCL is trying out the "over the fence" gas utility supply model in Kochi.
8The website carries here a detailed pricing mechanism for such a model, taking into consideration two model with gas as a feed and fuel, one involving power from a captive plant owned by the Build Own Operate entity or with power from provided by BPCL or procured from other sources
8The pricing of syngas, hydrogen and steam will depend on the operating efficiency at varying capacities
8There will be a fixed and a monthly charge
8The outsourced gas supply complex will cost Rs 2500 crore
Click on Reports for more Details
8Like IOC did with the Paradip refinery, BPCL is trying out the "over the fence" gas utility supply model in Kochi.
8The website carries here a detailed pricing mechanism for such a model, taking into consideration two model with gas as a feed and fuel, one involving power from a captive plant owned by the Build Own Operate entity or with power from provided by BPCL or procured from other sources
8The pricing of syngas, hydrogen and steam will depend on the operating efficiency at varying capacities
8There will be a fixed and a monthly charge
8The outsourced gas supply complex will cost Rs 2500 crore
Click on Reports for more Details
Even though gas prices are going up, a worrying trend, however, is that gas consumption in the US power sector is down on account of higher renewable output.
8The renewable push is currently coming from enhanced hydropower production
8It is projected however that gas consumption will go up in 2018 but eventually if renewables were to push gas output down in the power sector, it would mean that renewables would directly compete with gas for a share of the electricity market in a country where gas prices are among the lowest in the world
8This will leave incremental gas production to come from industrial, household and petrochemical segments not just in the US but all around the world.
Click on Reports to find out more on what are the latest trends and data on this front, updated as of June, 2018 Details
8The renewable push is currently coming from enhanced hydropower production
8It is projected however that gas consumption will go up in 2018 but eventually if renewables were to push gas output down in the power sector, it would mean that renewables would directly compete with gas for a share of the electricity market in a country where gas prices are among the lowest in the world
8This will leave incremental gas production to come from industrial, household and petrochemical segments not just in the US but all around the world.
Click on Reports to find out more on what are the latest trends and data on this front, updated as of June, 2018 Details
What are the expectations on oil prices and gas prices for the rest of 2017 and 2018?
8The expectations are lower than what they were last month by an average of $ 2/bbl and $ 4/bbl for 2017 and 2018. This seems to be the outlook despite the production cut being undertaken by OPEC.
8Henry Hub natural gas spot prices are forecast to average $3.10MMBtu in 2017 and $3.40/MMBtu in 2018, compared with a 2016 average of $2.51/MMBtu, which was the lowest annual average price since 1999.
8If HH prices are higher, and crude prices are lower, GAIL's prospects for unloading US LNG cargoes to India are not very rosy.
8GAIL's breakeven delivered price of LNG in India out of its committed US offtake will go up and become less competitive. Up to a $ 3/mmbtu differential is possible, indicating that this will reflect very adversely on GAIL's balance sheet.
8A lot will also depend on how ExxonMobil, Qatar and Shell price their short term spot cargoes aimed at India from next year onwards
Click on Reports for more Details
8The expectations are lower than what they were last month by an average of $ 2/bbl and $ 4/bbl for 2017 and 2018. This seems to be the outlook despite the production cut being undertaken by OPEC.
8Henry Hub natural gas spot prices are forecast to average $3.10MMBtu in 2017 and $3.40/MMBtu in 2018, compared with a 2016 average of $2.51/MMBtu, which was the lowest annual average price since 1999.
8If HH prices are higher, and crude prices are lower, GAIL's prospects for unloading US LNG cargoes to India are not very rosy.
8GAIL's breakeven delivered price of LNG in India out of its committed US offtake will go up and become less competitive. Up to a $ 3/mmbtu differential is possible, indicating that this will reflect very adversely on GAIL's balance sheet.
8A lot will also depend on how ExxonMobil, Qatar and Shell price their short term spot cargoes aimed at India from next year onwards
Click on Reports for more Details
The Kochi expansion to 15 MMTPA along with a petrochemical complex is a big one by any yardstick.
8But BPCL claims that it has built in a lot of state of art features
And this includes:
8Heat recovery belt
8Power recovery expander
8Electrostatic precipitators, among others
Click on Reports for more on how these features are going to work and what impact will they have. Details
8But BPCL claims that it has built in a lot of state of art features
And this includes:
8Heat recovery belt
8Power recovery expander
8Electrostatic precipitators, among others
Click on Reports for more on how these features are going to work and what impact will they have. Details
8Crude oil prices advance this week on the back of a forecast for the IEA that global demand growth will accelerate this year even as supplies draw more slowly than anticipated. The market also weighed this week the likelihood and potential effectiveness of Libya and Nigeria capping production. Both countries have been invited by OPEC in a meeting in Russia on July 24 to discuss the stability of their production. Click on Report for more.
8In the crude market, VLCCs in the AG saw more activity this week but only on the first half of the week, as in the second, there was less demand in the spot market. Click on Report For more.
8The latest update on India's foreign trade, include crude oil and non-oil imports. Click on Report for more.
8Gulf Petrochem Group Marks First-Ever Bunker Supply by Barge at Indian Port of Paradip in Odisha. Click on Report for more.
8Tata Motors develops country’s first Bio-Methane Bus. Click on Report for more.
8For reference purposes the website carries here the following global shipping related data:
-- Global Merchant Fleet
-- Global Merchant Fleet by Regions
-- Global Seaborne Trade
-- Global View: Container
-- Global View: Product Tankers
-- Global View: Crude Tankers
-- Global View: Dry Bulk
-- Ship Building and Recycling
-- Top Ten Newbuilding Countries 2
-- Recycled vessels
-- Ship Building Countries. Click on Report for more.
8Asia-Pacific and Arab Gulf naphtha market scan as of last week in terms of prices, offers and change over previous week. Click on Report for more.
8195 temporary COCOs allotted. Click on Report for more.
8Pipeline expansion plan from existing 2.5 MMTPA to 3.25 MMTPA through a additional parallel 8" dia pipeline and installation of additional pumps.
Click on Reports for more Details
8In the crude market, VLCCs in the AG saw more activity this week but only on the first half of the week, as in the second, there was less demand in the spot market. Click on Report For more.
8The latest update on India's foreign trade, include crude oil and non-oil imports. Click on Report for more.
8Gulf Petrochem Group Marks First-Ever Bunker Supply by Barge at Indian Port of Paradip in Odisha. Click on Report for more.
8Tata Motors develops country’s first Bio-Methane Bus. Click on Report for more.
8For reference purposes the website carries here the following global shipping related data:
-- Global Merchant Fleet
-- Global Merchant Fleet by Regions
-- Global Seaborne Trade
-- Global View: Container
-- Global View: Product Tankers
-- Global View: Crude Tankers
-- Global View: Dry Bulk
-- Ship Building and Recycling
-- Top Ten Newbuilding Countries 2
-- Recycled vessels
-- Ship Building Countries. Click on Report for more.
8Asia-Pacific and Arab Gulf naphtha market scan as of last week in terms of prices, offers and change over previous week. Click on Report for more.
8195 temporary COCOs allotted. Click on Report for more.
8Pipeline expansion plan from existing 2.5 MMTPA to 3.25 MMTPA through a additional parallel 8" dia pipeline and installation of additional pumps.
Click on Reports for more Details
Suppliers credit counter guaranteed by foreign export finance agencies is now a little-used tool
8There are disadvantages of course in this kind of financing but oil companies can always look at the option
8Reliance Industries Ltd had taken advantage of such buyers credit facility, for example
Click on Reports to find out more Details
8There are disadvantages of course in this kind of financing but oil companies can always look at the option
8Reliance Industries Ltd had taken advantage of such buyers credit facility, for example
Click on Reports to find out more Details
A Rs 115 crore brownfield business development opportunity is coming up for an onland LPG plant
Of the total amount, the following sub-allocations have been made
8Storage plant: Rs 20 crore
8Filling equipment: Rs 10 crore
8Fire fighting equipment Rs 10 crore
8Civil jobs Rs 20 crore
Click on Details for more Details
Of the total amount, the following sub-allocations have been made
8Storage plant: Rs 20 crore
8Filling equipment: Rs 10 crore
8Fire fighting equipment Rs 10 crore
8Civil jobs Rs 20 crore
Click on Details for more Details
After a long period of trial and error, ONGC is now moving towards more decentralization of authority down its vast hierarchy.
8Powers are being moved down the line, from the Executive Purchase Committee to the Director and down to the Basin Manager or Asset Manger.
8More powers are now going to be vested on the next line of command, below that of the director
Click on Details to find out more Details
8Powers are being moved down the line, from the Executive Purchase Committee to the Director and down to the Basin Manager or Asset Manger.
8More powers are now going to be vested on the next line of command, below that of the director
Click on Details to find out more Details
Sources briefing this website said that the decentralization will help quicken decision making within ONGC
8As for business development managers of equipment and service providers, their focus will now move away from headquarters down the line to the asset managers and service heads.
8The interactions will become more localized.
8After extensive research, the website has come out with a list of key decision makers in ONGC down its hierarchy, who are going to decide on key commercial matters from here on
Click on Details for more Details
8As for business development managers of equipment and service providers, their focus will now move away from headquarters down the line to the asset managers and service heads.
8The interactions will become more localized.
8After extensive research, the website has come out with a list of key decision makers in ONGC down its hierarchy, who are going to decide on key commercial matters from here on
Click on Details for more Details
Standardization of specifications is the new mantra in ONGC.
8After years of being unable to find a way out of differing specifications for common items of use, ONGC is now putting together a system wherein common specifications will be the order of the day.
8Find out what ONGC is doing on this count.
Click on Details for more Details
8After years of being unable to find a way out of differing specifications for common items of use, ONGC is now putting together a system wherein common specifications will be the order of the day.
8Find out what ONGC is doing on this count.
Click on Details for more Details
A proposal has been mooted for a one-on-one post-bid clarification round for vendors bidding against an ONGC tender.
8This is going to be a dramatic new twist to how ONGC approaches the entire vendor interaction process, well placed sources told this website.
Click on Details to find out more Details
8This is going to be a dramatic new twist to how ONGC approaches the entire vendor interaction process, well placed sources told this website.
Click on Details to find out more Details
One point where ONGC's bargaining power weakens is when it is trying to negotiate for equipment and services from an Original Equipment Manufacturer (OEM).
8The advantage of being a buyer dissipates when the OEM is in a position to dictate its terms on the prices to be set for equipment and services.
8Occasionally, it is noticed that OEMs will dictate a price for equipment well above the norm or the reserve price set and ONGC is left will little or no leverage to deal with the OEMs
8Is there a new way of dealing with the OEMs?
Click on Details for more Details
8The advantage of being a buyer dissipates when the OEM is in a position to dictate its terms on the prices to be set for equipment and services.
8Occasionally, it is noticed that OEMs will dictate a price for equipment well above the norm or the reserve price set and ONGC is left will little or no leverage to deal with the OEMs
8Is there a new way of dealing with the OEMs?
Click on Details for more Details
Well placed sources said that ONGC is looking at its own SBM facility for export of naphtha from its Hazira complex.
8Similarly, it is looking to set up its own storage and port handling facilities for rakes and the port in Hazira, sources said.
8Find out more on which are companies which had leased these faculties to ONGC and how adversely they will be impaced
Click on Details for more Details
8Similarly, it is looking to set up its own storage and port handling facilities for rakes and the port in Hazira, sources said.
8Find out more on which are companies which had leased these faculties to ONGC and how adversely they will be impaced
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Carrying out Hassan Cherlapally LPG Pipeline Project Survey Details
8Supply of Mono Ethanol Amine to Panipat Naphtha Cracker Unit Details
8Supply of Complete Rotor Assembly in refinery Details
8Expression of Interest for various Civil Works in Rajasthan Block Details
8Calibration services for Gas Detector and Gas Flow Meter Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Birth of an oil giant: Six reasons why HPCL-ONGC deal is important Details
8Indigenous tech for biofuels may emerge soon, says Dharmendra Pradhan Details
8India approves creation of state oil giant in US$4.6b deal Details
8Oil behemoth in making: ONGC gets nod to acquire HPCL Details
8China drafts new rules easing state oil majors' grip on storage Details
8Cabinet may take up sale of HPCL to ONGC on Wednesday Details
8Australian Foreign Minister urges greater international engagement to spur India's economic growth Details
8Kathiramangalam oil leak damaged one acre of land, ONGC says Details
8Incited locals obstructed damage control in Kathiramangalam oil leak: ONGC Details
8ONGC forwards proposal to acquire HPCL Details
You can also click on Newsclips for more Details
8Carrying out Hassan Cherlapally LPG Pipeline Project Survey Details
8Supply of Mono Ethanol Amine to Panipat Naphtha Cracker Unit Details
8Supply of Complete Rotor Assembly in refinery Details
8Expression of Interest for various Civil Works in Rajasthan Block Details
8Calibration services for Gas Detector and Gas Flow Meter Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Birth of an oil giant: Six reasons why HPCL-ONGC deal is important Details
8Indigenous tech for biofuels may emerge soon, says Dharmendra Pradhan Details
8India approves creation of state oil giant in US$4.6b deal Details
8Oil behemoth in making: ONGC gets nod to acquire HPCL Details
8China drafts new rules easing state oil majors' grip on storage Details
8Cabinet may take up sale of HPCL to ONGC on Wednesday Details
8Australian Foreign Minister urges greater international engagement to spur India's economic growth Details
8Kathiramangalam oil leak damaged one acre of land, ONGC says Details
8Incited locals obstructed damage control in Kathiramangalam oil leak: ONGC Details
8ONGC forwards proposal to acquire HPCL Details
You can also click on Newsclips for more Details
Even though there was a lot of fanfare around the launch of the Discovered Small Field (DSF) Round, questions are being raised on whether it has delivered the desired results.
8Has the outcome of the first DSF round been successful relative to historical performance?
8And, does the new regime adequately address the weaknesses which have encumbered India’s previous attempts at boosting upstream exploration and production?
8The answer seems to be a "no".
8The website carries here a comparison of DSF's performance in relation to blocks offered in earlier rounds, blocks awarded, prevailing oil prices, blocks bid for, contracts signed and no of discoveries made (in earlier discoveries).
8A further analysis is carried in terms of geological type, onshore and shallow-water, competitiveness and bidding behaviour.
Click on Reports for more Details
8Has the outcome of the first DSF round been successful relative to historical performance?
8And, does the new regime adequately address the weaknesses which have encumbered India’s previous attempts at boosting upstream exploration and production?
8The answer seems to be a "no".
8The website carries here a comparison of DSF's performance in relation to blocks offered in earlier rounds, blocks awarded, prevailing oil prices, blocks bid for, contracts signed and no of discoveries made (in earlier discoveries).
8A further analysis is carried in terms of geological type, onshore and shallow-water, competitiveness and bidding behaviour.
Click on Reports for more Details
What has been the pervasive impact of gaming of exploration bidding rounds on the Indian oil and gas sector?
8Find out more on why India has not been successful so far in minimizing room for gaming by potential bidders.
8Aggressive bids had been put in in the past exploration blocks by smaller companies -- with zero per cent cost recovery and extremely high profit sharing -- but eventually of all these blocks were relinquished.
8Find our more on why the government did not learn enough from its past mistakes.
8Find out the systemic defects in the DSF round, including the disconnect between the fiscal and work programme plans
8Also know more on why bidder evaluations on notional field production profiles and revenue streams do not deliver results.
Click on Reports for more Details
8Find out more on why India has not been successful so far in minimizing room for gaming by potential bidders.
8Aggressive bids had been put in in the past exploration blocks by smaller companies -- with zero per cent cost recovery and extremely high profit sharing -- but eventually of all these blocks were relinquished.
8Find our more on why the government did not learn enough from its past mistakes.
8Find out the systemic defects in the DSF round, including the disconnect between the fiscal and work programme plans
8Also know more on why bidder evaluations on notional field production profiles and revenue streams do not deliver results.
Click on Reports for more Details
The analysis shows that there are disincentives in the DSF model to produce optimally.
8Given that many winning companies lack the requisite antecedents, productive assets are merely being transferred from the NOCs to private hands, with only mild incumbent pressure on the winning bidders to deliver.
8The conclusion was that the government wanted to minimize administrative hurdles and the ominous monitoring of operations and costs that plagued earlier rounds.
8But bidders ended up "gaming" the bids by taking advantage of the intrinsic disadvantages woven in the DSF round.
Click on Reports for more Details
8Given that many winning companies lack the requisite antecedents, productive assets are merely being transferred from the NOCs to private hands, with only mild incumbent pressure on the winning bidders to deliver.
8The conclusion was that the government wanted to minimize administrative hurdles and the ominous monitoring of operations and costs that plagued earlier rounds.
8But bidders ended up "gaming" the bids by taking advantage of the intrinsic disadvantages woven in the DSF round.
Click on Reports for more Details
8Shipping market round-up
-- After an initial flurry of activity, the new building market seems to have gone back to sleep
-- Better than expected Chinese economic performance has given a big boost to the dry bulk cargo market
-- The crude carrier market is showing an uneven trend.Click on Report for more.
8Do you need to raise funds and are you looking for energy equity or funding expertise. Look no further. Click on Report for more.
8The gas lobby continues to pummel the world with an ever increasing volume of information on how gas will continue to rule the roost for a long time to come. China remains the biggest market but will be eventually overtaken by India.
-- What about emissions?
-- There is an admission here that global temperatures will soar well over the 2 degree mark.
-- Look here for fresh data on this count. Click on Report for more.
8An analysis that says crude prices are likely to stay low in the short to medium term. Click on Report for more.
8Latest Indian crude basket price. Click on report for more.
8A complete template on how India can go all electric by 2030 and also emerge as a electric vehicle manufacturing country. Click on Report for more.
8A frightening road map drawn up in the UK to keep all oil, coal and gas in the ground. What are the economic consequences of unburnable fossil fuels?
Click on Reports for more Details
-- After an initial flurry of activity, the new building market seems to have gone back to sleep
-- Better than expected Chinese economic performance has given a big boost to the dry bulk cargo market
-- The crude carrier market is showing an uneven trend.Click on Report for more.
8Do you need to raise funds and are you looking for energy equity or funding expertise. Look no further. Click on Report for more.
8The gas lobby continues to pummel the world with an ever increasing volume of information on how gas will continue to rule the roost for a long time to come. China remains the biggest market but will be eventually overtaken by India.
-- What about emissions?
-- There is an admission here that global temperatures will soar well over the 2 degree mark.
-- Look here for fresh data on this count. Click on Report for more.
8An analysis that says crude prices are likely to stay low in the short to medium term. Click on Report for more.
8Latest Indian crude basket price. Click on report for more.
8A complete template on how India can go all electric by 2030 and also emerge as a electric vehicle manufacturing country. Click on Report for more.
8A frightening road map drawn up in the UK to keep all oil, coal and gas in the ground. What are the economic consequences of unburnable fossil fuels?
Click on Reports for more Details
Find out more on how India is quietly but deliberately diversifying its crude import basket in the face of OPEC cuts
8More Indian refineries are now buying US crude
8Aggressive participation is anticipated by non OPEC suppliers in future tenders taken out by oil marketing companies
Click on Reports for more Details
8More Indian refineries are now buying US crude
8Aggressive participation is anticipated by non OPEC suppliers in future tenders taken out by oil marketing companies
Click on Reports for more Details
The Haryana government's go ahead to Indraprastha Gas Ltd to operates in parts of Gurugram is likely to come as a big boost to the company.
8The CGD potential is high, going up to around 2 mmscmd
8Could the company grow faster because of the first mover advantage that the CGD sector provides in India?
8A debt funded instead of a mere internal accrual led expansion will lead to a bigger footprint and a higher longer term return.
Click on Reports for more Details
8The CGD potential is high, going up to around 2 mmscmd
8Could the company grow faster because of the first mover advantage that the CGD sector provides in India?
8A debt funded instead of a mere internal accrual led expansion will lead to a bigger footprint and a higher longer term return.
Click on Reports for more Details
The "Maha" refinery-cum-petrochem project that the Indian oil marketing trio is planning to build in Maharashtra is going to be highly profitable, claims former IOC chairman B. Ashok
8It will more than double India's petrochemical capacity.
8The refinery will not face a demand side issue as India's will need around 12 MMTPA of additional capacity creation per annum up to 2030
8He says that the electric mobility challenge is a long way away from Indian OMCs.
8Also find out more on why Ashok thinks that private sector companies will find it difficult to beat the Indian oil marketing companies for a very long time.
8And there is more on the reasons behind the robust growth in marketing margins
Click on Reports for more Details
8It will more than double India's petrochemical capacity.
8The refinery will not face a demand side issue as India's will need around 12 MMTPA of additional capacity creation per annum up to 2030
8He says that the electric mobility challenge is a long way away from Indian OMCs.
8Also find out more on why Ashok thinks that private sector companies will find it difficult to beat the Indian oil marketing companies for a very long time.
8And there is more on the reasons behind the robust growth in marketing margins
Click on Reports for more Details
The FSRU business has grown rapidly since the first vessel was installed in 2011 – just 16 years ago. There are now 27 vessels of which 23 are in operation as terminals and 4 currently assigned to LNG tanker service. A further 10 are currently under construction with options placed with the shipyards for 10 more.
8The estimate is that there can as many as 50 vessels in operation by 2025 offering an FSRU-based regas capacity in excess of 200 mtpa, which is 60% of the world’s LNG production in 2016.
8That the future is bright is endorsed by the fact that FSRU service providers are ordering new vessels at a cost of around $250m on a speculative basis and that established LNG tanker owners are now entering the market.
The website carries here a detailed list of information on
-- Current FSRU fleet in operation or delivered and pending start up and operation, including photographs of the vessels
-- Ships ordered or likely to be ordered.
Click on Reports for more Details
8The estimate is that there can as many as 50 vessels in operation by 2025 offering an FSRU-based regas capacity in excess of 200 mtpa, which is 60% of the world’s LNG production in 2016.
8That the future is bright is endorsed by the fact that FSRU service providers are ordering new vessels at a cost of around $250m on a speculative basis and that established LNG tanker owners are now entering the market.
The website carries here a detailed list of information on
-- Current FSRU fleet in operation or delivered and pending start up and operation, including photographs of the vessels
-- Ships ordered or likely to be ordered.
Click on Reports for more Details
What are the key considerations which will have to be kept in mind to determine whether an import terminal is best suited for an FSRU or an onshore option?
8Looking at the decision factors a FSRU is likely to be preferred over an onshore terminal if the following applies:
8There is short term market need – leasing cheaper than sunk cost, FSRU reassigned
8There is fast track need to supply gas – onshore terminals take 3-5 years to construct
8Capacity is less than 6 mtpa or if it is greater it would need 2 FSRUs
8Send out capacity not likely to increase – much easier to add extra vaporizers onshore
8No need for strategic storage - largest vessel Qmax 266,000 m3
8Major permitting issues for onshore terminal
8No space available for an onshore terminal
8Offshore FSRU if entrance to harbour too shallow requiring dredging (dredging is an ongoing maintenance cost too)
Click on Reports for more Details
8Looking at the decision factors a FSRU is likely to be preferred over an onshore terminal if the following applies:
8There is short term market need – leasing cheaper than sunk cost, FSRU reassigned
8There is fast track need to supply gas – onshore terminals take 3-5 years to construct
8Capacity is less than 6 mtpa or if it is greater it would need 2 FSRUs
8Send out capacity not likely to increase – much easier to add extra vaporizers onshore
8No need for strategic storage - largest vessel Qmax 266,000 m3
8Major permitting issues for onshore terminal
8No space available for an onshore terminal
8Offshore FSRU if entrance to harbour too shallow requiring dredging (dredging is an ongoing maintenance cost too)
Click on Reports for more Details
LNG Import terminal business models usually take the form of Integrated, Merchant or Tolling arrangements. Full details of how these models work are carried here.
8FSRUs are functionally identical to onshore terminals and can use any of these models.
8The tolling model seems to be the most popular as it provides a simple arrangement directly with the buyer and the leasing option fits well with shorter term contracts.
8The website carries here full details of possible contract structures.
8As for the contract period, the first FSRUs were typically leased on a 10-15 year basis. This gave the owner some reassurance of recovering the capital cost of the vessel and finance charges over the lease period. Analysis of the early FSRUs would indicate that 10 years was the minimum lease period and the day rate was calculated on the basis of recovering the capital costs and finance costs over 8 years with the remaining 2 years as profit.
8The range of lease periods now spans 5-20 years and is really driven by the gas market demand period.
8Leasing charges are typically in the range $110-160,000/day and with an OPEX in the range of $20-45,000/day, the total cost can vary between $130-205,000/day.
Industry standard FSRUs are essentially limited to 173,000 m3 storage and nominal 6 mtpa throughput. Storage of 263,000 m3 can be offered but this has to be a bespoke model
8Capacities of up to 330,000 m3 FSRUs are also available.
8Whilst FSRUs are normally leased there is an opportunity to purchase outright subject to Contract arrangements.
Click on Reports for more Details
8FSRUs are functionally identical to onshore terminals and can use any of these models.
8The tolling model seems to be the most popular as it provides a simple arrangement directly with the buyer and the leasing option fits well with shorter term contracts.
8The website carries here full details of possible contract structures.
8As for the contract period, the first FSRUs were typically leased on a 10-15 year basis. This gave the owner some reassurance of recovering the capital cost of the vessel and finance charges over the lease period. Analysis of the early FSRUs would indicate that 10 years was the minimum lease period and the day rate was calculated on the basis of recovering the capital costs and finance costs over 8 years with the remaining 2 years as profit.
8The range of lease periods now spans 5-20 years and is really driven by the gas market demand period.
8Leasing charges are typically in the range $110-160,000/day and with an OPEX in the range of $20-45,000/day, the total cost can vary between $130-205,000/day.
Industry standard FSRUs are essentially limited to 173,000 m3 storage and nominal 6 mtpa throughput. Storage of 263,000 m3 can be offered but this has to be a bespoke model
8Capacities of up to 330,000 m3 FSRUs are also available.
8Whilst FSRUs are normally leased there is an opportunity to purchase outright subject to Contract arrangements.
Click on Reports for more Details
For buyers of gas, a clear understanding of operating costs is also very important even though the eventual pricing or tolling model can be different.
The website carries here a component-wise breakdown of operating costs, including:
8Provision of personnel – onboard and located on the onshore interface
8Ongoing head office support to operations
8Fuel gas and oil for power generation and steam generation
8Maintenance and inspection
8Spare parts
8Chemicals and lubricants
8Insurance
8Harbour fees
8Tugs for supply tanker manoeuvering
8Service boats for offshore located FSRUs
8Dredging
8Financing costs
8OPEX costs are normally at around Rs 15 lakh per day
Click on Reports for more Details
The website carries here a component-wise breakdown of operating costs, including:
8Provision of personnel – onboard and located on the onshore interface
8Ongoing head office support to operations
8Fuel gas and oil for power generation and steam generation
8Maintenance and inspection
8Spare parts
8Chemicals and lubricants
8Insurance
8Harbour fees
8Tugs for supply tanker manoeuvering
8Service boats for offshore located FSRUs
8Dredging
8Financing costs
8OPEX costs are normally at around Rs 15 lakh per day
Click on Reports for more Details
After an Indian business group's plans to set up a 6 MMTPA Floating Storage Regasification Unit (FRSU) mainly as a captive gas supply source, there is a heightened interest in India about FRSU-based terminals.
8The website carries here a very comprehensive template on how an FRSU concept can work in India.
8The biggest advantage for an FRSU is that it can typically represent just 60% of an onshore terminal cost and can be delivered in a shorter time. An onshore 3 mtpa terminal with one 180,000 m3 storage tank is likely to cost Rs 3500 to Rs 4000 crore, compared to Rs 2000 to Rs 2500 crore for a similar capacity FSRU.
8A component wise comparison of the cost differential is carried here.
8What is more, an FRSU can be delivered quicker: an onshore terminal is driven by the construction of the tanks which is typically 36-40 months. New build FSRUs take 27-36 months to delivery but a conversion of an existing LNG carrier to an FRSU would be less at typically 18-24 months.
8However, the real schedule advantage is if an FSRU is readily available, either reassigned from another project or constructed on a speculative basis.
8A recent example of this is the second FSRU for Ain Sokhna which commenced operation in just 5 months after the issue of tender documents. This was possible because the onshore handing infrastructure was already available.
8At the buyer end, however, the setting up of onshore infrastructure will have to be taken into account while looking at shorter timelines.
Click on Reports for more Details
8The website carries here a very comprehensive template on how an FRSU concept can work in India.
8The biggest advantage for an FRSU is that it can typically represent just 60% of an onshore terminal cost and can be delivered in a shorter time. An onshore 3 mtpa terminal with one 180,000 m3 storage tank is likely to cost Rs 3500 to Rs 4000 crore, compared to Rs 2000 to Rs 2500 crore for a similar capacity FSRU.
8A component wise comparison of the cost differential is carried here.
8What is more, an FRSU can be delivered quicker: an onshore terminal is driven by the construction of the tanks which is typically 36-40 months. New build FSRUs take 27-36 months to delivery but a conversion of an existing LNG carrier to an FRSU would be less at typically 18-24 months.
8However, the real schedule advantage is if an FSRU is readily available, either reassigned from another project or constructed on a speculative basis.
8A recent example of this is the second FSRU for Ain Sokhna which commenced operation in just 5 months after the issue of tender documents. This was possible because the onshore handing infrastructure was already available.
8At the buyer end, however, the setting up of onshore infrastructure will have to be taken into account while looking at shorter timelines.
Click on Reports for more Details
Even as ONGC has still not formally concluded on the possibility that Deep Industries, whose order book depends critically on orders from the public sector E&P major, may have gamed the bidding process in the supply of equipment, it seems to be business as usual for the company for the time being.
8It claims that its long term association with US vendors have given it the requisite competitive edge even as allegations swirl over the eligibility of the experience criteria used from one such vendor to bid for an ONGC tender.
8Deep also says it got a credit upgrade recently.
Click on Reports to know more. Details
8It claims that its long term association with US vendors have given it the requisite competitive edge even as allegations swirl over the eligibility of the experience criteria used from one such vendor to bid for an ONGC tender.
8Deep also says it got a credit upgrade recently.
Click on Reports to know more. Details
For reference purposes the website carries here the following tenders:
8Supply of Natural Gas/ RLNG for Non-Urea Activity Details
8Hiring of Third Party Inspection Agency for Inspection of Offshore Rigs Details
8Supply and Laying of 300 MM ND Gas Pipeline Details
8Rate Contract for laying and maintenance of Underground Oil and Gas Pipelines in Ankleshwar Asset and Cambay Asset Details
8Annual Rate Contract for Earthing and Ancillary Jobs for Drill Sites Details
83D Seismic Data Acquisition and Processing in Transition Zone in West of Gandhar Area, Cambay Basin during field seasons Details
8Supply, Installation & Commissioning of Early Production System at well site of Ankleshwar Block Details
8Carrying out Comprehensive Risk Analysis study of Gujarat Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8ONGC and RIL-Shell counter oil ministry’s claim for profit dues Details
8Government's demand for additional tax premature, Reliance Industries says Details
8Oil India submits report to Centre for gas pipeline to Assam Details
8Government’s $3 billion demand premature: Reliance Industries Ltd, Shell India Details
8HPCL, ONGC merger wouldn’t bring synergy: Ambit Capital Details
8UP, Gujarat top the list of states with highest petrol pump chip sales fraud Details
8Oil steadies as ample supply meets firm demand Details
8ExxonMobil says will not continue discussions over East Natuna gas field in Indonesia Details
8GAIL shares fall on another probe regarding GSA Details
8Syrian army captures more oil wells in Raqqa province Details
8Next Mexico deepwater oil tender may draw from three Gulf basins Details
8Italy's Saipem set for Novatek's Arctic LNG 2 platform contract - sources Details
You can also click on Newsclips for more Details
8Supply of Natural Gas/ RLNG for Non-Urea Activity Details
8Hiring of Third Party Inspection Agency for Inspection of Offshore Rigs Details
8Supply and Laying of 300 MM ND Gas Pipeline Details
8Rate Contract for laying and maintenance of Underground Oil and Gas Pipelines in Ankleshwar Asset and Cambay Asset Details
8Annual Rate Contract for Earthing and Ancillary Jobs for Drill Sites Details
83D Seismic Data Acquisition and Processing in Transition Zone in West of Gandhar Area, Cambay Basin during field seasons Details
8Supply, Installation & Commissioning of Early Production System at well site of Ankleshwar Block Details
8Carrying out Comprehensive Risk Analysis study of Gujarat Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8ONGC and RIL-Shell counter oil ministry’s claim for profit dues Details
8Government's demand for additional tax premature, Reliance Industries says Details
8Oil India submits report to Centre for gas pipeline to Assam Details
8Government’s $3 billion demand premature: Reliance Industries Ltd, Shell India Details
8HPCL, ONGC merger wouldn’t bring synergy: Ambit Capital Details
8UP, Gujarat top the list of states with highest petrol pump chip sales fraud Details
8Oil steadies as ample supply meets firm demand Details
8ExxonMobil says will not continue discussions over East Natuna gas field in Indonesia Details
8GAIL shares fall on another probe regarding GSA Details
8Syrian army captures more oil wells in Raqqa province Details
8Next Mexico deepwater oil tender may draw from three Gulf basins Details
8Italy's Saipem set for Novatek's Arctic LNG 2 platform contract - sources Details
You can also click on Newsclips for more Details
8SKN Haryana City Gas Distribution Pvt. Ltd: Future is wrought with uncertainties. Click on Report for more.
8Intel agencies not comfortable with Essar-Rosneft deal. Click on Report for more.
8Electronic chip pilferation in oil pumps: Find out what is going on. Click on Report for more.
8Govenrment's plans to spread PNG supply across the country. Click on Report for more.
8Skill development in the petroleum sector: A backgrounder. Click on Report for more.
8World’s largest refinery-cum-petrochemicals complex at Babulwadi, Taluka Rajpur in Ratnagiri District of Maharashtra: More details than you know so far. Click on Report for more.
8PMUY: Will targets be raised? Click on Report for more.
8Foreign companies in oil retail business: An update. Click on Report for more.
8LNG trading hub in India: What is the government's position on it. Click on Report for more.
8New auto fuel standards: Government is moving on it. Click on Report for more.
8GAIL's pipeline blast: How ONGC's profits were impacted. Click on Report for more.
8Competition Commisison puts GAIL under scanner. Click on Report for more.
8GST on petroleum products: What are the petroleum ministry' actual views.Click on Report for more.
8Share of gas in energy mix: How is the government pushing this agenda. Click on Report for more.
8IOC's Indmax technology: Getting the recognition it deserves. Click on Report for more.
8Steps taken by the government to bridge the import-export gap. Click on Report for more.
8Latest update on refinery expansion by Bharat Oman Refineries Ltd. Click on Report for more.
8Find out why Vedanta comes with a "buy" recommendation. Click on Report for more.
8Daily pricing of petrol and diesel: A complete template
Click on Reports for more Details
8Intel agencies not comfortable with Essar-Rosneft deal. Click on Report for more.
8Electronic chip pilferation in oil pumps: Find out what is going on. Click on Report for more.
8Govenrment's plans to spread PNG supply across the country. Click on Report for more.
8Skill development in the petroleum sector: A backgrounder. Click on Report for more.
8World’s largest refinery-cum-petrochemicals complex at Babulwadi, Taluka Rajpur in Ratnagiri District of Maharashtra: More details than you know so far. Click on Report for more.
8PMUY: Will targets be raised? Click on Report for more.
8Foreign companies in oil retail business: An update. Click on Report for more.
8LNG trading hub in India: What is the government's position on it. Click on Report for more.
8New auto fuel standards: Government is moving on it. Click on Report for more.
8GAIL's pipeline blast: How ONGC's profits were impacted. Click on Report for more.
8Competition Commisison puts GAIL under scanner. Click on Report for more.
8GST on petroleum products: What are the petroleum ministry' actual views.Click on Report for more.
8Share of gas in energy mix: How is the government pushing this agenda. Click on Report for more.
8IOC's Indmax technology: Getting the recognition it deserves. Click on Report for more.
8Steps taken by the government to bridge the import-export gap. Click on Report for more.
8Latest update on refinery expansion by Bharat Oman Refineries Ltd. Click on Report for more.
8Find out why Vedanta comes with a "buy" recommendation. Click on Report for more.
8Daily pricing of petrol and diesel: A complete template
Click on Reports for more Details
The world's foremost analysts in the oil and gas sector do not seem to agree on how oil prices are going to behave in the next one year. These analysts belong some of the best known research and financial institutions around the world.
8While the disagreement is narrower -- between $ 66-44/bbl -- over how prices will be in Q-3, 2017, it widens to $80-37 by Q-2, 2018.
8The $ 37/bbl bet is made by well known analyst I. Schmidt of Hamburger Sparkasse AG while the $ 80 projection is made by F. Klumpp from Landesbank Baden-Wuerttemberg.
8Current forward curves, however, show far less volatility and range between $ 49.1 to $ 51.1 between Q-3, 2017 and Q-2, 2018.
8The wide range of projections shows a huge amount of disagreement among the best analysts in the world over what the impact of demand and supply will be in the midst of OPEC price cuts, US shale production, the advent of disruptive technology and climate change pressures.
8Many a reputation is at stake
The website carries here the following details
8Name of the research agency
8Name of the analyst
8Date of projection
8Quarterly projection of prices by each analyst over the next four quarters
8So for an Indian analyst, which is the best price to pick for his short term analysis?
Click on Reports for more Details
8While the disagreement is narrower -- between $ 66-44/bbl -- over how prices will be in Q-3, 2017, it widens to $80-37 by Q-2, 2018.
8The $ 37/bbl bet is made by well known analyst I. Schmidt of Hamburger Sparkasse AG while the $ 80 projection is made by F. Klumpp from Landesbank Baden-Wuerttemberg.
8Current forward curves, however, show far less volatility and range between $ 49.1 to $ 51.1 between Q-3, 2017 and Q-2, 2018.
8The wide range of projections shows a huge amount of disagreement among the best analysts in the world over what the impact of demand and supply will be in the midst of OPEC price cuts, US shale production, the advent of disruptive technology and climate change pressures.
8Many a reputation is at stake
The website carries here the following details
8Name of the research agency
8Name of the analyst
8Date of projection
8Quarterly projection of prices by each analyst over the next four quarters
8So for an Indian analyst, which is the best price to pick for his short term analysis?
Click on Reports for more Details
OPEC's production compliance cuts are not holding up well, according to latest indications.
8OPEC oil production continued to rise in June 2017 for the second consecutive month.
8Compliance by the OPEC cartel declined to 78%.
8Two exempt OPEC members -- Libya and Nigeria -- have been raising output at a furious pace and it is likely that cuts will now have to be extended to these countries as well.
8Moreover, with Iraq targeting a production rate of 5 mb/d and Iran adding new oilfields, it is also a possibility that the OPEC pack may just come apart.
8Fear of losing market share as a result of the production cuts -- as the cartel looks with consternation as large buyers like India begin contracting for oil parcels from the US -- will be another factor weighing on OPEC in forthcoming discussions.
Click on Reports for more Details
8OPEC oil production continued to rise in June 2017 for the second consecutive month.
8Compliance by the OPEC cartel declined to 78%.
8Two exempt OPEC members -- Libya and Nigeria -- have been raising output at a furious pace and it is likely that cuts will now have to be extended to these countries as well.
8Moreover, with Iraq targeting a production rate of 5 mb/d and Iran adding new oilfields, it is also a possibility that the OPEC pack may just come apart.
8Fear of losing market share as a result of the production cuts -- as the cartel looks with consternation as large buyers like India begin contracting for oil parcels from the US -- will be another factor weighing on OPEC in forthcoming discussions.
Click on Reports for more Details
ONGC seems to have turned away from capitalizing on the Production Enhancement Contracts (PECs) signed with much fanfare during Petrotech-2016 with Schlumberger and Halliburton during Petrotech-2016.
8ONGC signed a Statement of Intention to Collaborate (SoIC) with Schlumberger for a "Production Enhancement Contract" to improve recovery from the Geleki field of Assam Asset and a "Summary of Understanding (SoU)" with Halliburton to cooperate on enhancement of production in the Kalol field in the Ahmedabad Asset.
8The public sector oil major has been trying for more than a decade to work out a risk sharing partnership with service providers for its aging fields but without success
Click on Reports to find out more Details
8ONGC signed a Statement of Intention to Collaborate (SoIC) with Schlumberger for a "Production Enhancement Contract" to improve recovery from the Geleki field of Assam Asset and a "Summary of Understanding (SoU)" with Halliburton to cooperate on enhancement of production in the Kalol field in the Ahmedabad Asset.
8The public sector oil major has been trying for more than a decade to work out a risk sharing partnership with service providers for its aging fields but without success
Click on Reports to find out more Details
The climate change lobby is now using a range of tools to project that the highest NPVs are possible only on investments in assets which are within the 2D compatibility range.
8These tools are meant to put oil companies on the mat while using pressure tactics through shareholders to cut back on capex in "incompatible assets".
8The results are interesting and oil field equipment and service suppliers will need to take them into account when calculating how far up will oil and gas capex go in the coming years.
8Around $2.3 trillion -- around a third -- of the potential capex to 2025 should not be deployed under a 2D scenario compared to business as usual expectations, projections claim.
8Company level exposure varies between 10% to over 60% of capex.
8Interestingly, two thirds of the potential oil and gas production which is surplus to a 2D scenario is controlled by the private sector.
Click on Reports for more Details
8These tools are meant to put oil companies on the mat while using pressure tactics through shareholders to cut back on capex in "incompatible assets".
8The results are interesting and oil field equipment and service suppliers will need to take them into account when calculating how far up will oil and gas capex go in the coming years.
8Around $2.3 trillion -- around a third -- of the potential capex to 2025 should not be deployed under a 2D scenario compared to business as usual expectations, projections claim.
8Company level exposure varies between 10% to over 60% of capex.
8Interestingly, two thirds of the potential oil and gas production which is surplus to a 2D scenario is controlled by the private sector.
Click on Reports for more Details
