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Jul 2016
On a month on month basis, natural gas consumption saw a marginal jump of 4.4% in June, 2016 as compared to June, 2015.
8In terms of volumes, total consumption during June, 2016 was 3,232 MMSCM as compared to 3,096 MMSCM in June, 2015.
8On cumulative basis, for the period April-June 2016, gas consumption increased by 6.7% to 9,547 MMSCM from 8,950 MMSCM during the same period last year.
8Natural gas consumption has shown growth predominantly due to improved off-take by CGD and other sectors and increased consumption by GAIL for its plants at Vijaipur and Pata.
8There was a net decrease in consumption by power sector to the tune of 6.3% from 767 MMSCM in June, 2015 to 719 MMSCM during June, 2016.
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8In terms of volumes, total consumption during June, 2016 was 3,232 MMSCM as compared to 3,096 MMSCM in June, 2015.
8On cumulative basis, for the period April-June 2016, gas consumption increased by 6.7% to 9,547 MMSCM from 8,950 MMSCM during the same period last year.
8Natural gas consumption has shown growth predominantly due to improved off-take by CGD and other sectors and increased consumption by GAIL for its plants at Vijaipur and Pata.
8There was a net decrease in consumption by power sector to the tune of 6.3% from 767 MMSCM in June, 2015 to 719 MMSCM during June, 2016.
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Naphtha
8Naphtha consumption recorded a high growth of 15.5% during the month of June, 2016 and a cumulative growth of 7.7% during April-June 2016.
8This growth is driven by the demand for naphtha as a gasoline blend stock by the growing petrochemical industry (particularly polymers and plastics) and fertilizer sector.
ATF
8During June, 2016 the growth in consumption of ATF was 10.8% and a cumulative growth of 12.1% has been for April-June, 2016.
8Air traffic in India continued its upward journey, growing at a phenomenal pace, helped by cheaper fares. Domestic airlines carried 7.93 million passengers during June, 2016, 20.2% more than the 6.6 million flown in June, 2015.
FO and LDO
8FO and LSHS consumption registered a growth of 17.3% during June, 2016 and a cumulative growth of 22.9 % for the period April-June, 2016.
8The growth is mainly due to increased consumption of FO in fertilizer, petrochemical, steel and other general trade sectors.
8LDO consumption however recorded a de-growth of -9.8% in the month of June, 2016 and a cumulative growth of 17.2 % for April- June, 2016.
8LDO month- wise demand fluctuates depending on its requirement in power plants for boiler restart
Btumen and Pet-Coke:
8Bitumen consumption registered a growth of 10.1% in June, 2016 and a cumulative growth of 13.9% during April-June, 2016 backed by the highway building spree of the govenment. Pet-coke consumption registered a substantial growth of 27.3% during June, 2016 and a cumulative growth of 21% for April-June, 2016.
LPG:
8Total LPG consumption recorded a positive growth of 8.5% during June 2016 and cumulative growth of 7.8% for the period April 2016 to June 2016.
LPG-Packed Domestic consumption registered a growth of 7.0% during June, 2016 and 6.4% during the period April-June 2016. Last year during June, 2015, a growth of 10.4% and during April-June 2015 a growth of 7.1% was seen.
8LPG-Packed Non-Domestic consumption for the eighteenth month in a row registered a positive growth of 24.6% in June, 2016 and cumulative growth of 25.5% during April-June 2106.
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8Naphtha consumption recorded a high growth of 15.5% during the month of June, 2016 and a cumulative growth of 7.7% during April-June 2016.
8This growth is driven by the demand for naphtha as a gasoline blend stock by the growing petrochemical industry (particularly polymers and plastics) and fertilizer sector.
ATF
8During June, 2016 the growth in consumption of ATF was 10.8% and a cumulative growth of 12.1% has been for April-June, 2016.
8Air traffic in India continued its upward journey, growing at a phenomenal pace, helped by cheaper fares. Domestic airlines carried 7.93 million passengers during June, 2016, 20.2% more than the 6.6 million flown in June, 2015.
FO and LDO
8FO and LSHS consumption registered a growth of 17.3% during June, 2016 and a cumulative growth of 22.9 % for the period April-June, 2016.
8The growth is mainly due to increased consumption of FO in fertilizer, petrochemical, steel and other general trade sectors.
8LDO consumption however recorded a de-growth of -9.8% in the month of June, 2016 and a cumulative growth of 17.2 % for April- June, 2016.
8LDO month- wise demand fluctuates depending on its requirement in power plants for boiler restart
Btumen and Pet-Coke:
8Bitumen consumption registered a growth of 10.1% in June, 2016 and a cumulative growth of 13.9% during April-June, 2016 backed by the highway building spree of the govenment. Pet-coke consumption registered a substantial growth of 27.3% during June, 2016 and a cumulative growth of 21% for April-June, 2016.
LPG:
8Total LPG consumption recorded a positive growth of 8.5% during June 2016 and cumulative growth of 7.8% for the period April 2016 to June 2016.
LPG-Packed Domestic consumption registered a growth of 7.0% during June, 2016 and 6.4% during the period April-June 2016. Last year during June, 2015, a growth of 10.4% and during April-June 2015 a growth of 7.1% was seen.
8LPG-Packed Non-Domestic consumption for the eighteenth month in a row registered a positive growth of 24.6% in June, 2016 and cumulative growth of 25.5% during April-June 2106.
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MS
8MS consumption during the month of June, 2016 recorded a subdued growth of 4.4% as compared to June, 2015 and a cumulative growth of 10.0% for the period April-June, 2016.
8Anticipation of increase in prices from 1st June, 2016 shifted the upliftment to May, 2016 and the anticipated downward price revision from 1st July, 2016 pushed the stocking of stocks by retail networks to July, 2016.
Diesel
8Meanwhile, diesel consumption in the country recorded a growth of 1.5% during the month of June, 2016 as compared to June, 2015 and a cumulative growth of 4.7% for the period April- June, 2016.
8Good monsoon affected road transport movement and reduced consumption of diesel by farmers using diesel pumps.
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8MS consumption during the month of June, 2016 recorded a subdued growth of 4.4% as compared to June, 2015 and a cumulative growth of 10.0% for the period April-June, 2016.
8Anticipation of increase in prices from 1st June, 2016 shifted the upliftment to May, 2016 and the anticipated downward price revision from 1st July, 2016 pushed the stocking of stocks by retail networks to July, 2016.
Diesel
8Meanwhile, diesel consumption in the country recorded a growth of 1.5% during the month of June, 2016 as compared to June, 2015 and a cumulative growth of 4.7% for the period April- June, 2016.
8Good monsoon affected road transport movement and reduced consumption of diesel by farmers using diesel pumps.
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For those looking for opportunities to set up city gas distribution companies, the website carries here a list of potential geographical areas that can be carved out along exiting, ongoing and proposed gas pipeline routes in India.
8Over 250 such GAs have been identified.
Details are carried here in terms of:
8Geographical area
8State
8Gas pipeline name
8Pipeline operator
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8Over 250 such GAs have been identified.
Details are carried here in terms of:
8Geographical area
8State
8Gas pipeline name
8Pipeline operator
Click on Reports for more Details
Business development opportunities are available subsequent to a push by the government to shore up storage capacities of petroleum products in the North East of India.
The website carries here details of:
8Existing storage facilities
8Ongoing and planned revamping, resitement and modernization efforts for storage depots
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The website carries here details of:
8Existing storage facilities
8Ongoing and planned revamping, resitement and modernization efforts for storage depots
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For reference purposes, the website carries here the following petroleum sector related data:
8Under recovery in petroleum products over the last four years
8State-wise opt out status of for LPG connections
8State-wise cumulative Ujjwala Report
8State-wise number of LPG cylinders released under the CSR scheme of public sector companies
8Status on NOC for re-exporting LPG to Sri Lanka and Bangladesh from Ex-Terminal, Ennore to Indian Oil Petronas Limited (IOPL), a JV of IOC and Petronas Ltd in October, 2015.
8Annual allocation status of SKO for 2010-11 to 2015-16
8The details of revision in price of Petrol, Diesel and Domestic LPG since 1st May, 2016.
8The monthly average price of Indian basket of crude oil during January to June 2016
8Import of crude oil and diesel (latest data)
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8Under recovery in petroleum products over the last four years
8State-wise opt out status of for LPG connections
8State-wise cumulative Ujjwala Report
8State-wise number of LPG cylinders released under the CSR scheme of public sector companies
8Status on NOC for re-exporting LPG to Sri Lanka and Bangladesh from Ex-Terminal, Ennore to Indian Oil Petronas Limited (IOPL), a JV of IOC and Petronas Ltd in October, 2015.
8Annual allocation status of SKO for 2010-11 to 2015-16
8The details of revision in price of Petrol, Diesel and Domestic LPG since 1st May, 2016.
8The monthly average price of Indian basket of crude oil during January to June 2016
8Import of crude oil and diesel (latest data)
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There is an assumption today that gas fields are a safer investment that oil as gas is a more carbon friendly fuel but it may not be correct.
8At its simplest, the assumption is true. Gas is a lower carbon fuel and does not face the same demand destruction as oil and coal. However, there are two caveats. The first is that projects still need to pass the return or breakeven cost test. Does the project deliver acceptable returns to shareholders? LNG projects, although gas, are traditionally very high cost and so often deliver below average returns. Many that were approved prior to 2013 will now be destroying value. The second caveat is fugitive emissions which is especially an issue for LNG projects. Methane (natural gas) is a far more potent greenhouse gas than carbon dioxide, although it is not as persistent in the atmosphere. The important questions which are going to asked even in India will be: “What percentage of production from your gas projects is lost as fugitive emissions?”
The other defensive argument is: “The world will always need oil and gas so we have to keep investing”
8The world is not going to stop using oil and gas overnight, but the amount of gas and especially oil needed to meet a two-degree scenario is lower. Under a two-degree scenario, cumulative oil and gas demand till 2040 is likely to be 15% and 13% lower than under. Much of that demand can be met from existing production and so the shift in the amount of capital needed will be even lower than these demand forecasts imply.
In India, the mindset is: “We are only a small part of global supply reserves so our actions don’t matter”
8This argument does not hold water as it is not how big or small we are in the global picture but whether our high cost capital expenditure will eventually lead to a reasonable return on investment. Will the capital deployed be at the risk of financial stranding? That is the question that will need to be answered.
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8At its simplest, the assumption is true. Gas is a lower carbon fuel and does not face the same demand destruction as oil and coal. However, there are two caveats. The first is that projects still need to pass the return or breakeven cost test. Does the project deliver acceptable returns to shareholders? LNG projects, although gas, are traditionally very high cost and so often deliver below average returns. Many that were approved prior to 2013 will now be destroying value. The second caveat is fugitive emissions which is especially an issue for LNG projects. Methane (natural gas) is a far more potent greenhouse gas than carbon dioxide, although it is not as persistent in the atmosphere. The important questions which are going to asked even in India will be: “What percentage of production from your gas projects is lost as fugitive emissions?”
The other defensive argument is: “The world will always need oil and gas so we have to keep investing”
8The world is not going to stop using oil and gas overnight, but the amount of gas and especially oil needed to meet a two-degree scenario is lower. Under a two-degree scenario, cumulative oil and gas demand till 2040 is likely to be 15% and 13% lower than under. Much of that demand can be met from existing production and so the shift in the amount of capital needed will be even lower than these demand forecasts imply.
In India, the mindset is: “We are only a small part of global supply reserves so our actions don’t matter”
8This argument does not hold water as it is not how big or small we are in the global picture but whether our high cost capital expenditure will eventually lead to a reasonable return on investment. Will the capital deployed be at the risk of financial stranding? That is the question that will need to be answered.
Click on Reports for more Details
The two-degree business model states that a project must be progressed only when value thresholds are met
Even for ongoing projects, it is necessary to ensure that they do the following:
8Deliver value improvements
8Renegotiate supply chain contracts
8Standardize to cut cots
8Look for industry led solutions
8Optimize scope and phasing
8Focus on front-end loading
8Change from volume growth to value growth
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Even for ongoing projects, it is necessary to ensure that they do the following:
8Deliver value improvements
8Renegotiate supply chain contracts
8Standardize to cut cots
8Look for industry led solutions
8Optimize scope and phasing
8Focus on front-end loading
8Change from volume growth to value growth
Click on Reports for more Details
For reference purposes, the website carries here a detailed analysis of the following questions:
8What does a two-degree world mean for fossil fuel demand?
8What does a two-degree scenario mean for oil prices?
8What might a two-degree business model look like?
8Why is looking at a two-degree business model important even for Indian E&P companies?
8What does a two-degree business model mean for shareholder value?
8What is the make-up of the company’s undeveloped reserves? 17
8How robust are future projects?
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8What does a two-degree world mean for fossil fuel demand?
8What does a two-degree scenario mean for oil prices?
8What might a two-degree business model look like?
8Why is looking at a two-degree business model important even for Indian E&P companies?
8What does a two-degree business model mean for shareholder value?
8What is the make-up of the company’s undeveloped reserves? 17
8How robust are future projects?
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The analysis goes on the claim that the business as usual model has already failed to deliver results even before the oil prices crashed.
8Going ahead, this model will result in even lower returns.
8For a company such as ONGC, it is important to ask whether it has a downside price scenario planning system in place, particularly for the KG-DWN-98/2 block.
8The relevant questions are: How robust or risky are ONGC's future projects? Where does its future projects sit on the cost curve?
8Then again, what is the sensitivity of the company itself to oil and gas prices?
8The problem with most oil companies, including ONGC, is that they still seem to plan their businesses on the assumption that the action on climate change needed to deliver a two-degree scenario (which equates to around 450 parts per million (ppm) of CO2 in the atmosphere) will not emerge in the foreseeable future.
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8Going ahead, this model will result in even lower returns.
8For a company such as ONGC, it is important to ask whether it has a downside price scenario planning system in place, particularly for the KG-DWN-98/2 block.
8The relevant questions are: How robust or risky are ONGC's future projects? Where does its future projects sit on the cost curve?
8Then again, what is the sensitivity of the company itself to oil and gas prices?
8The problem with most oil companies, including ONGC, is that they still seem to plan their businesses on the assumption that the action on climate change needed to deliver a two-degree scenario (which equates to around 450 parts per million (ppm) of CO2 in the atmosphere) will not emerge in the foreseeable future.
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It will not longer be possible for oil and gas companies to ignore the global carbon emission ceiling that is compatible with a two degree global temperature increase.
8The two-degree business model for an E&P company will have to be quite different from the "invest for growth" business model.
8The point to note is that there will no material difference in the two business models from a 5 to even 10 year perspective but the divergence begins showing from then onwards.
8Under a two-degree model, lower demand is likely to mean lower prices. What is more, this lower level of demand can be met with fewer, lower cost projects.
8A two-degree compatible investment will mean that for a given year, the price needed to make the marginal barrel economic will be lower.
8The divergence in demand between the two scenarios is gradual and the same is likely to be the case with prices.
8For oil, a material differential in demand does not emerge until after 2025.
8Nevertheless, given lead times for oil and gas projects are often five to ten years, it is important that oil companies stress test future projects by using a low oil price scenario in addition to their central planning assumptions.
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8The two-degree business model for an E&P company will have to be quite different from the "invest for growth" business model.
8The point to note is that there will no material difference in the two business models from a 5 to even 10 year perspective but the divergence begins showing from then onwards.
8Under a two-degree model, lower demand is likely to mean lower prices. What is more, this lower level of demand can be met with fewer, lower cost projects.
8A two-degree compatible investment will mean that for a given year, the price needed to make the marginal barrel economic will be lower.
8The divergence in demand between the two scenarios is gradual and the same is likely to be the case with prices.
8For oil, a material differential in demand does not emerge until after 2025.
8Nevertheless, given lead times for oil and gas projects are often five to ten years, it is important that oil companies stress test future projects by using a low oil price scenario in addition to their central planning assumptions.
Click on Reports for more Details
GEECL's average CBM sales plunged 16% from 10.23 mmscfd to 8.60 mmscfd on account lower customer offtake from its Raniganj field.
8Even as sales plunged, ironically enough, the price of gas went up, from $10.26/mmbtu to $12.014/mmbtu.
8The company's CBM price is outside the price regulations of the government.
8Meanwhile, the company has stopped further drilling activity in the block but says that it has future plans to double the number of wells from 150 to 300 in its Raniganj South block in the future.
8However, equipment and service providers will have to be careful dealing with the company given that it has run into contractual issues with some of its service providers in the past.
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8Even as sales plunged, ironically enough, the price of gas went up, from $10.26/mmbtu to $12.014/mmbtu.
8The company's CBM price is outside the price regulations of the government.
8Meanwhile, the company has stopped further drilling activity in the block but says that it has future plans to double the number of wells from 150 to 300 in its Raniganj South block in the future.
8However, equipment and service providers will have to be careful dealing with the company given that it has run into contractual issues with some of its service providers in the past.
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For reference purposes the website carries here the following tenders:
8Inspection of bare pipes and coating of pipelines [IOC] Details
8Providing services for various Pipeline Maintenance jobs, Assam [OIL] Details
8Procurement of Peroxide Additive for LLDPE/ HDPE Unit, Assam [BCPL] Details
8Carrying out EPMC services for VVSPL Capacity Expansion Project [HPCL] Details
8Supply of 300 MT of Oil Soluble Demulsifier, Assam [OIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Shell net profit dives 71 per cent on low oil prices Details
8Oil slightly higher after five-day slump Details
8Cairn PSC: Court asks govt to decide in 5 weeks as ONGC gives nod Details
8LPG subsidy still a distant dream for many denizens Details
8Expro secures contracts from India’s Oil and Natural Gas Details
8Drop in the ocean: India's strategic oil reserves unlikely to stir market Details
8Indian Oil Corp to introduce pre-booking of slots at petrol pumps to avoid congestion Details
8Cochin Shipyard Signs MoU with Government of India Details
8Islamic State's oil revenue dives as it loses Iraqi territory Details
8Oil prices decline on glut worries Details
8Reliance Industries-ONGC gas theft row: Report set to get delayed Details
8ONGC to stop exploration at Karaikal Details
You can also click on Newsclips for more Details
8Inspection of bare pipes and coating of pipelines [IOC] Details
8Providing services for various Pipeline Maintenance jobs, Assam [OIL] Details
8Procurement of Peroxide Additive for LLDPE/ HDPE Unit, Assam [BCPL] Details
8Carrying out EPMC services for VVSPL Capacity Expansion Project [HPCL] Details
8Supply of 300 MT of Oil Soluble Demulsifier, Assam [OIL] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Shell net profit dives 71 per cent on low oil prices Details
8Oil slightly higher after five-day slump Details
8Cairn PSC: Court asks govt to decide in 5 weeks as ONGC gives nod Details
8LPG subsidy still a distant dream for many denizens Details
8Expro secures contracts from India’s Oil and Natural Gas Details
8Drop in the ocean: India's strategic oil reserves unlikely to stir market Details
8Indian Oil Corp to introduce pre-booking of slots at petrol pumps to avoid congestion Details
8Cochin Shipyard Signs MoU with Government of India Details
8Islamic State's oil revenue dives as it loses Iraqi territory Details
8Oil prices decline on glut worries Details
8Reliance Industries-ONGC gas theft row: Report set to get delayed Details
8ONGC to stop exploration at Karaikal Details
You can also click on Newsclips for more Details
India's efforts at evolving an adequate carbon pricing regime has faltered whereas the Chinese have stolen a march over us.
8The Chinese pricing model is going to kick in from 2017 and that will ensure that about half of global GHG emissions will be generated by jurisdictions that are putting a price on carbon.
8In 2015, governments raised about US$26 billion in revenues from carbon pricing initiatives. This represents a 60% increase compared to the revenues raised in 2014, which was estimated to be about US$16 billion.
8India's contribution has been minimal on this front but efforts are ongoing.
8On April 22, 2016, the United Nations Global Compact (UNGC) called for a minimum internal carbon price level of US$100/tCO2 a 1.5–2°C pathway.
8Has Indian companies factored such carbon pricing scenarios if not now but in the foreseeable future in their business models?
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8The Chinese pricing model is going to kick in from 2017 and that will ensure that about half of global GHG emissions will be generated by jurisdictions that are putting a price on carbon.
8In 2015, governments raised about US$26 billion in revenues from carbon pricing initiatives. This represents a 60% increase compared to the revenues raised in 2014, which was estimated to be about US$16 billion.
8India's contribution has been minimal on this front but efforts are ongoing.
8On April 22, 2016, the United Nations Global Compact (UNGC) called for a minimum internal carbon price level of US$100/tCO2 a 1.5–2°C pathway.
8Has Indian companies factored such carbon pricing scenarios if not now but in the foreseeable future in their business models?
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For those who are interested in understanding the complicated global gas market, the website carries here a series of analyses.
8The changing dynamics behind different gas pricing models and how the Gas-on-Gas competitive model is gaining market share over other business models such as oil indexed escalation, regulated cost of service, regulated social and political and regulated below cost model. How even in the regulated models, prices are going up.
8A case study of how Gazprom's oil indexed pricing model saw it lose rapid market share in Europe but was able to recoup after the Russian gas major decided to change its market strategy
8How LNG prices are going to stay under pressure on account of a big upsurge in supply even as global gas demand slows. Find out more on how China is still driving global gas demand>
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8The changing dynamics behind different gas pricing models and how the Gas-on-Gas competitive model is gaining market share over other business models such as oil indexed escalation, regulated cost of service, regulated social and political and regulated below cost model. How even in the regulated models, prices are going up.
8A case study of how Gazprom's oil indexed pricing model saw it lose rapid market share in Europe but was able to recoup after the Russian gas major decided to change its market strategy
8How LNG prices are going to stay under pressure on account of a big upsurge in supply even as global gas demand slows. Find out more on how China is still driving global gas demand>
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The new building market for crude carriers continue to be in turmoil.
8Buyers preference seems to be to buy second hand carriers instead of ordering of new vessels.
8Robustness is seen in some categories but the overall mood is gloomy.
8In terms of recently reported deals, Australian owner Toll Shipping placed an order for two firm Ro-Ros (12,000dwt) at Jinling, in China, for a price in the region of $ 45.0m each and delivery set in 2018.
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8Buyers preference seems to be to buy second hand carriers instead of ordering of new vessels.
8Robustness is seen in some categories but the overall mood is gloomy.
8In terms of recently reported deals, Australian owner Toll Shipping placed an order for two firm Ro-Ros (12,000dwt) at Jinling, in China, for a price in the region of $ 45.0m each and delivery set in 2018.
Click on Reports for more Details
The crude oil carrier market is now showing market resistance.
8The exception seems to be the VLCC segment which is holding up much better than the rest of the market.
8The year began with a strong momentum but the market seems to have lost steam of late.
8In fact, with the exception of VLCCs, average earnings for most sizes have now moved back to levels witnessed back in the summer of 2014, just before the freight market started to take off.
8Amidst global demand falling short of expectations, the only silver lining seems to be an uptick in demand if oil prices continue to rule low.
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8The exception seems to be the VLCC segment which is holding up much better than the rest of the market.
8The year began with a strong momentum but the market seems to have lost steam of late.
8In fact, with the exception of VLCCs, average earnings for most sizes have now moved back to levels witnessed back in the summer of 2014, just before the freight market started to take off.
8Amidst global demand falling short of expectations, the only silver lining seems to be an uptick in demand if oil prices continue to rule low.
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The website carries here an early stage business development opportunity for drilling of 75 onshore wells
8This will be accompanies by installation of as many as four production and processing facilities.
8Analysis of seismic data has already identified the drilling locations.
8Around 15 MMTP of risked oil reserves have been established
Click on Reports for more information and key contact details Details
8This will be accompanies by installation of as many as four production and processing facilities.
8Analysis of seismic data has already identified the drilling locations.
8Around 15 MMTP of risked oil reserves have been established
Click on Reports for more information and key contact details Details
Historically, oil price down cycles have lead to an increase in M&A activity.
8As leading players in the sector plan their moves, they should recognize that deals offering cost-reduction opportunities are likely to create the most value in a lower-for-longer
oil-price environment.
8There are many examples of unsuccessful deal in the industry.
8RIL's entry into North America to build exposure to unconventional shale assets is a particularly cautionary tale.
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8As leading players in the sector plan their moves, they should recognize that deals offering cost-reduction opportunities are likely to create the most value in a lower-for-longer
oil-price environment.
8There are many examples of unsuccessful deal in the industry.
8RIL's entry into North America to build exposure to unconventional shale assets is a particularly cautionary tale.
Click on Reports for more Details
Royal Dutch Shell's $66 billion acquisition of British Gas allowed the former to achieve a 10-year strategic goal in just one year.
8The deal gave Shell a first mover advantage relative to your competition at a time of extreme volatility in the oil and gas market.
8Now that the deal is completed, Shell is focusing on running its business while the competition is still trying to deal with that volatility by retrenching in terms of cutting back spending, cutting back capex, laying off people, and making defensive moves.
For those in Indian oil companies looking for M&As, the website carries here what it takes for a company to carry out a big global acquisition in the oil and gas business
Questions that are answered are:
8What kind of mindset is needed to do a good M&A deal?
8What should be the right size of the core team for such M&A deals?
8What should a good oil sector M&A deal maker be on the lookout for?
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8The deal gave Shell a first mover advantage relative to your competition at a time of extreme volatility in the oil and gas market.
8Now that the deal is completed, Shell is focusing on running its business while the competition is still trying to deal with that volatility by retrenching in terms of cutting back spending, cutting back capex, laying off people, and making defensive moves.
For those in Indian oil companies looking for M&As, the website carries here what it takes for a company to carry out a big global acquisition in the oil and gas business
Questions that are answered are:
8What kind of mindset is needed to do a good M&A deal?
8What should be the right size of the core team for such M&A deals?
8What should a good oil sector M&A deal maker be on the lookout for?
Click on Reports for more Details
The website carries here a 10-year modeling exercise carried out on the three oil marketing companies -- IOC, BPCL and HPCL -- over the last 10 years.
8The exercise comes out with some interesting findings on the relative performance of the three companies.
Among the suggestions made by the analysis are:
8Need for a restructuring of their expenditure patterns
8The requirement for working capital revamp
8While operational efficiency was good, liquidity management was inadequate.
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8The exercise comes out with some interesting findings on the relative performance of the three companies.
Among the suggestions made by the analysis are:
8Need for a restructuring of their expenditure patterns
8The requirement for working capital revamp
8While operational efficiency was good, liquidity management was inadequate.
Click on Reports for more Details
A slow investment ramp-up is likely in RIL-BP combine's KG Basin gas discoveries, according to latest data available with this website.
8There is unlikely to be a big bang investment start-up as announced by ONGC in its KG-DWN-98/2.
8Incremental gas production from the KG Basin discoveries are likely to come only after 2020.
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8There is unlikely to be a big bang investment start-up as announced by ONGC in its KG-DWN-98/2.
8Incremental gas production from the KG Basin discoveries are likely to come only after 2020.
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For reference purposes the website carries here the following tenders:
8Procurement of Radar Type Level Transmitters for DHDS & SWS Unit [IOC] Details
8Consultancy Services for DFR Preparation and EPCM Services for setting up of Catalyst Plant, Panipat Refinery [IOC] Details
8Procurement of Gas Engine Generators for pipeline stations [GAIL] Details
8Repairing and Reconditioning of Defective Ball Valves of O&M Base [GAIL] Details
8Supply of Pressure Gauges for DHDT Unit, Gujarat Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Private LPG bottlers may shine as govt plans to add 10 crore consumers Details
8ONGC, HPCL may sell stake in MRPL to meet public holding norms Details
8Projects in sub-Saharan Africa to help ease global crude supply Details
8Libya's rival government threatens oil tankers Details
8Britain offers new oil and gas licences amid exploration drought Details
8Oil falls close to three-month low as oversupply weighs Details
8Lower oil prices push Norway's Statoil to Q2 loss Details
8Gurgaon to become kerosene free from Nov 1 Details
8India’s Reliance June oil imports up 16 pct y/y – trade Details
8Coal surges past $50 mark while crude oil falls short Details
You can also click on Newsclips for more Details
8Procurement of Radar Type Level Transmitters for DHDS & SWS Unit [IOC] Details
8Consultancy Services for DFR Preparation and EPCM Services for setting up of Catalyst Plant, Panipat Refinery [IOC] Details
8Procurement of Gas Engine Generators for pipeline stations [GAIL] Details
8Repairing and Reconditioning of Defective Ball Valves of O&M Base [GAIL] Details
8Supply of Pressure Gauges for DHDT Unit, Gujarat Refinery [IOC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Private LPG bottlers may shine as govt plans to add 10 crore consumers Details
8ONGC, HPCL may sell stake in MRPL to meet public holding norms Details
8Projects in sub-Saharan Africa to help ease global crude supply Details
8Libya's rival government threatens oil tankers Details
8Britain offers new oil and gas licences amid exploration drought Details
8Oil falls close to three-month low as oversupply weighs Details
8Lower oil prices push Norway's Statoil to Q2 loss Details
8Gurgaon to become kerosene free from Nov 1 Details
8India’s Reliance June oil imports up 16 pct y/y – trade Details
8Coal surges past $50 mark while crude oil falls short Details
You can also click on Newsclips for more Details
The website carries here an interesting comparison of prices in dollars/mmbtu in India for the period November 2015 to July 2016 of fuel oil (FO) and commercial LPG.
8FO prices are significantly lower than commercial LPG.
8FO prices are in fact lower than that of the delivered cost of RLNG around the February-April, 2016 period.
8But FO prices have risen since and RLNG is a cheaper option at present.
8It is important to watch this price curves as they are firm determinants of demand for alternative fuels.
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8FO prices are significantly lower than commercial LPG.
8FO prices are in fact lower than that of the delivered cost of RLNG around the February-April, 2016 period.
8But FO prices have risen since and RLNG is a cheaper option at present.
8It is important to watch this price curves as they are firm determinants of demand for alternative fuels.
Click on Reports for more Details
L&T subsidiary L&T Hydrocarbon Engineering (LTHE), in consortium with Emas Chiyoda Subsea (ECS) has won a large EPCI contract from Saudi Aramco.
8The contract valued at over $1.6 billion is for the development of the second phase of Hasbah offshore gas field situated off the coast of Saudi Arabia. LTHE’s share in the contract value is approximately over 60%. Tis is the first major contract from Saudi Aramco after the finalization of the long term agreement executed by Saudi Aramco with LTHE – ECS Consortium in June last year, the Indian company said.
8International oilfield services company, Expro, has been awarded new contracts from India’s Oil and Natural Gas Corporation Ltd (ONGC). Worth in excess of $17 million over three years, the contracts will see Expro work on ONGC’s assets throughout western and eastern areas of India, including offshore Mumbai, onshore Rajamundry and the Krishna Godavari basin.
Click on Reports for more. Details
8The contract valued at over $1.6 billion is for the development of the second phase of Hasbah offshore gas field situated off the coast of Saudi Arabia. LTHE’s share in the contract value is approximately over 60%. Tis is the first major contract from Saudi Aramco after the finalization of the long term agreement executed by Saudi Aramco with LTHE – ECS Consortium in June last year, the Indian company said.
8International oilfield services company, Expro, has been awarded new contracts from India’s Oil and Natural Gas Corporation Ltd (ONGC). Worth in excess of $17 million over three years, the contracts will see Expro work on ONGC’s assets throughout western and eastern areas of India, including offshore Mumbai, onshore Rajamundry and the Krishna Godavari basin.
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Subsequent to the oil price crash and a $500 billion cut in capex, some exciting new trends have begun emerging in the E&P industry.
Among them are:
8Although operators are competing in some areas (licensing, exploring, understanding the subsurface, and attracting talent), cooperative models have emerged as survival technique in a low-price world. This thinking has driven the formation of focused industry task forces across operators, suppliers, and government parties in the last 18 months.
8Shared logistics, leveraged by optimization and tracking technologies, applied to supplier inventory, storage yards, supply boats, helicopters, and offshore hoteling are areas where collaboration between operators are beginning to take place
8Longer-term agreements and shared risk/reward contracts with key suppliers are beginning to come up
8The industry is going back to basics, implementing minimalist -- zero-based -- and functional common design requirements and standardizations. In areas such as contract, training, personnel qualification, and data standards, benefits can be immediately delivered, and industry bodies are heavily promoting this effort.
8Wider application of the Internet of Things and big data, even retrofitted to brownfield operations, is offering opportunity to directly support decision-making with real-time quality information.
8Locating people offshore is expensive, and there is renewed emphasis on spanner time, the proportion of time an offshore technician is actually engaged in the practical aspects of the job. Another drive is toward multi-skilling—providing offshore workers the skills and capability to cover activities done previously by others. Another example involves using tracking technology to benchmark individual drilling operations and drive out inefficiencies.
There are also innovations on in:
8Turnaround planning
8Learning from others
8Internal organization and workforce efficiency
Click on Reports for more Details
Among them are:
8Although operators are competing in some areas (licensing, exploring, understanding the subsurface, and attracting talent), cooperative models have emerged as survival technique in a low-price world. This thinking has driven the formation of focused industry task forces across operators, suppliers, and government parties in the last 18 months.
8Shared logistics, leveraged by optimization and tracking technologies, applied to supplier inventory, storage yards, supply boats, helicopters, and offshore hoteling are areas where collaboration between operators are beginning to take place
8Longer-term agreements and shared risk/reward contracts with key suppliers are beginning to come up
8The industry is going back to basics, implementing minimalist -- zero-based -- and functional common design requirements and standardizations. In areas such as contract, training, personnel qualification, and data standards, benefits can be immediately delivered, and industry bodies are heavily promoting this effort.
8Wider application of the Internet of Things and big data, even retrofitted to brownfield operations, is offering opportunity to directly support decision-making with real-time quality information.
8Locating people offshore is expensive, and there is renewed emphasis on spanner time, the proportion of time an offshore technician is actually engaged in the practical aspects of the job. Another drive is toward multi-skilling—providing offshore workers the skills and capability to cover activities done previously by others. Another example involves using tracking technology to benchmark individual drilling operations and drive out inefficiencies.
There are also innovations on in:
8Turnaround planning
8Learning from others
8Internal organization and workforce efficiency
Click on Reports for more Details
For reference purposes, the website carries here country-wise import of LPG in 2013-14, 2014-15 and 2015-16.
8Qatar is the largest exporter, followed by Saudi Arabia
8Import data from a total of 14 countries are given here.
8High Seas sales accounted for a big enough chunk of total imports at one point in time.
8Juxtaposed against this is the quantum of LPG produced domestically over the last three years.
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8Qatar is the largest exporter, followed by Saudi Arabia
8Import data from a total of 14 countries are given here.
8High Seas sales accounted for a big enough chunk of total imports at one point in time.
8Juxtaposed against this is the quantum of LPG produced domestically over the last three years.
Click on Reports for more Details
Equipment and service suppliers are likely to see business coming in not just from 61 small fields under the discovered small field policy but from a similar exericse being undertaken by ONGC
8The E&P major has drawn up a plan to develop as many as 43 small and discovered fields which are yet to be monetised due to various reasons.
8Sources claim that this is because the E&P major has kept the more prospective fields for development internally.
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8The E&P major has drawn up a plan to develop as many as 43 small and discovered fields which are yet to be monetised due to various reasons.
8Sources claim that this is because the E&P major has kept the more prospective fields for development internally.
Click on Reports for more Details
The website carries here a list of all pipeline projects which are currently "under development".
8Business development opportunities are available in some of them in which contracting has not been carried out or partially carried out.
Details are given here in terms of
8Name of the project
8Project promoter
8Length
8Estimated project cost
8Investment committed
8Status of land acquisition
8Scheduled completion
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8Business development opportunities are available in some of them in which contracting has not been carried out or partially carried out.
Details are given here in terms of
8Name of the project
8Project promoter
8Length
8Estimated project cost
8Investment committed
8Status of land acquisition
8Scheduled completion
Click on Reports for more Details
For reference purposes, the website carries here all revisions in prices of petrol, diesel, LPG (subsidized and non-subsidized) and SKO in Delhi since 2013.
8t is noticed that the price differential between subsidized and non-subsidized LPG is very significant.
8Details are also carried here of all revisions in prices of CNG since 2013
8Also carried here are all revisions in central government taxation in major petroleum products since 2013.
8State-wise effective taxation rates on major petroleum products in July 2016 compared to July 2013 are given
8The subsidy and under recovery levels over the three years period are also tabulated here. Subsidy levels have fallen dramatically over this period.
Click on Reports for more Details
8t is noticed that the price differential between subsidized and non-subsidized LPG is very significant.
8Details are also carried here of all revisions in prices of CNG since 2013
8Also carried here are all revisions in central government taxation in major petroleum products since 2013.
8State-wise effective taxation rates on major petroleum products in July 2016 compared to July 2013 are given
8The subsidy and under recovery levels over the three years period are also tabulated here. Subsidy levels have fallen dramatically over this period.
Click on Reports for more Details
GAIL will be caught in a very tight spot if spare LNG vessel capacity disappears around the time that its contacts for offtake of 5.8 MMTPA of LNG from the US comes into play.
8The gas major has not placed its orders for 9 LNG carriers yet.
8Neither has it settled for long term offtake contracts for spare LNG vessels which are currently available for charter.
8If the latest set of projections on vessel availability turn out to be correct, GAIL faces a nightmarish scenario where it may run short of vessels to ferry LNG from capacity booked in the two US LNG terminals.
8Even if the vessels are ordered now, it will take three years for delivery.
8The deliveries from the US will begin well before these vessels are delivered.
8Time and options are running out quickly for the gas major
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8The gas major has not placed its orders for 9 LNG carriers yet.
8Neither has it settled for long term offtake contracts for spare LNG vessels which are currently available for charter.
8If the latest set of projections on vessel availability turn out to be correct, GAIL faces a nightmarish scenario where it may run short of vessels to ferry LNG from capacity booked in the two US LNG terminals.
8Even if the vessels are ordered now, it will take three years for delivery.
8The deliveries from the US will begin well before these vessels are delivered.
8Time and options are running out quickly for the gas major
Click on Reports for more Details
The new set of analyses shows zero availability of spare LNG shipping capacity by the end of Q4, 2018.
8The argument underpinning the projections is that the current oversupply of vessels is largely due to delays in the Angolan and Gorgon LNG projects.
8The market will tighten as more projects ramp up and project-linked ships are absorbed
8Some LNG lifters from newly set up liquefaction terminals such as Sabine Pass, Corpus Christi, Freeport, Cove Point and Cameron have shipping requirements that are yet to be contracted.
8About 75 ships will be needed by these LNG offtakers
8Then again, any new order today will most likely be delivered from 2019 onwards.
8Data shows that only six new orders for vessels were placed in the last 9 months and all of them were by established LNG shipping players.
8No new players are expected in the market as of now.
8As new LNG carrier orders have historically taken three years from order to delivery, vessels ordered now are likely be delivered only in in 2019/20
8By 2020, a new set of forecasts claims that there will be a shortfall of around 40 vessels.
Click on Reports for more Details
8The argument underpinning the projections is that the current oversupply of vessels is largely due to delays in the Angolan and Gorgon LNG projects.
8The market will tighten as more projects ramp up and project-linked ships are absorbed
8Some LNG lifters from newly set up liquefaction terminals such as Sabine Pass, Corpus Christi, Freeport, Cove Point and Cameron have shipping requirements that are yet to be contracted.
8About 75 ships will be needed by these LNG offtakers
8Then again, any new order today will most likely be delivered from 2019 onwards.
8Data shows that only six new orders for vessels were placed in the last 9 months and all of them were by established LNG shipping players.
8No new players are expected in the market as of now.
8As new LNG carrier orders have historically taken three years from order to delivery, vessels ordered now are likely be delivered only in in 2019/20
8By 2020, a new set of forecasts claims that there will be a shortfall of around 40 vessels.
Click on Reports for more Details
The government has read out the Riot Act to the farmers in Tamil Nadu protesting against the laying of pipelines for evacuation of gas from the Kochi LNG terminal.
8A major attempt has not been made at reconciliation. Instead protesters have been told that "land is to be acquired under Sections 3 and 6 of the Petroleum & Mineral Pipeline (PMP) Act, 1962 and necessary land compensation as per Section 10 of the above Act is given to the concern land owners from time to time in synchronization with pipeline project execution".
8The government and GAIL are also equipped with appropriate court orders to execute these pipelines
8But this website believes that it is a failure on the part of the GAIL to communicate with the stakeholders involved in the pipeline projects -- particularly the landowners -- that has lead to the stalemate.
8The gas major had adopted the typical top-down, administration-led approach to resolving the problem without really getting down to sincerely engaging with the stakeholders.
8Laying of a pipeline through farmland is a common practice worldwide but somehow the two opposing groups couldn't get down to resolving their problems through dialogue and other mitigation efforts.
8The fact that the opposing faction has wide sympathy and political currency in both Tamil Nadu and Kerala is on account of GAIL's inability to communicate its views to the concerned stakeholders.
8What GAIL has not understood is that there is increasing stakeholder expectations today and using traditional tools to meet such expectations will not provide adequate results.
8There is a deficit of trust between the two sides.
8The price of this unresolved conflict has been high: A LNG terminal has been lying stranded.
8It is not just GAIL which is losing money here, there are others too, including ONGC, BPCL and IOC, all stakeholders in Petronet LNG Ltd, which are adversely impacted by the stalemate Details
8A major attempt has not been made at reconciliation. Instead protesters have been told that "land is to be acquired under Sections 3 and 6 of the Petroleum & Mineral Pipeline (PMP) Act, 1962 and necessary land compensation as per Section 10 of the above Act is given to the concern land owners from time to time in synchronization with pipeline project execution".
8The government and GAIL are also equipped with appropriate court orders to execute these pipelines
8But this website believes that it is a failure on the part of the GAIL to communicate with the stakeholders involved in the pipeline projects -- particularly the landowners -- that has lead to the stalemate.
8The gas major had adopted the typical top-down, administration-led approach to resolving the problem without really getting down to sincerely engaging with the stakeholders.
8Laying of a pipeline through farmland is a common practice worldwide but somehow the two opposing groups couldn't get down to resolving their problems through dialogue and other mitigation efforts.
8The fact that the opposing faction has wide sympathy and political currency in both Tamil Nadu and Kerala is on account of GAIL's inability to communicate its views to the concerned stakeholders.
8What GAIL has not understood is that there is increasing stakeholder expectations today and using traditional tools to meet such expectations will not provide adequate results.
8There is a deficit of trust between the two sides.
8The price of this unresolved conflict has been high: A LNG terminal has been lying stranded.
8It is not just GAIL which is losing money here, there are others too, including ONGC, BPCL and IOC, all stakeholders in Petronet LNG Ltd, which are adversely impacted by the stalemate Details
Jul 27 : Mangalore strategic reserves facility read to take crude: Business model still not in place
The government has declared that the strategic reserves facility at Mangalore is ready to receive crude.
8But it is not clear yet which business model is to be followed to fill up the crude.
8India is currently negotiating with the United Arab Emirates’ national oil company, ADNOC, to lease 5.5 million barrels of the Mangalore facility. Two-thirds of this volume would be available for India, and ADNOC could store the remaining volumes or sell the oil in the domestic market.
8Mangalore is the second facility to be ready to take delivery. Strategic reserve at Visakhapatnam has been commissioned and filled with crude oil in October, 2015. The strategic reserves at Mangalore and Padur have also been mechanically completed in November, 2015 and May, 2015 respectively.
Click on Details for more Details
8But it is not clear yet which business model is to be followed to fill up the crude.
8India is currently negotiating with the United Arab Emirates’ national oil company, ADNOC, to lease 5.5 million barrels of the Mangalore facility. Two-thirds of this volume would be available for India, and ADNOC could store the remaining volumes or sell the oil in the domestic market.
8Mangalore is the second facility to be ready to take delivery. Strategic reserve at Visakhapatnam has been commissioned and filled with crude oil in October, 2015. The strategic reserves at Mangalore and Padur have also been mechanically completed in November, 2015 and May, 2015 respectively.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Invitation of bids for Propylene Derivative Petrochemical Project, Kochi Refinery [BPCL] Details
8Carrying out Repairing and Servicing of Valves at Neelam & Heera Process Complex, Mumbai Region [ONGC] Details
8Cleaning Pigging of Cherlapalli Region Pipeline, Visakhapatnam [GAIL] Details
8Installation of LPG Vapour Compressor at LPG Bottling Plant [IOC] Details
8Laying and construction of steel pipeline along with associated facilities for Auraiya-Phulpur section of VAPPL Project [GAIL] Details
8Procurement of spares for DCP Skids for KG-OSN-2001/3 Block [GSPC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8India, US discover major natural gas reserve in Indian ocean Details
8Nigerian militants claim attack on pipeline; police deny it Details
8Petroleum sector the driving force behind growth of Indian economy: AK Sharma, Director-Finance, IOC Details
8Gail officials on state visit for Sindri factory revival Details
8Govt out to enroll 10 crore new LPG consumers Details
8ONGC, Cairn India demand halving of cess on crude oil Details
8India's spending on clean fuel driven by saving lives Details
8Cairn India says ONGC agrees to extending Barmer contract Details
8India to unveil natural gas infrastructure policy Details
8Petrobras to reduce role in Brazil's natural gas industry Details
8World Bank raises crude oil forecast to $43 per barrel Details
8Russian oil industry close to major taxation overhaul Details
You can also click on Newsclips for more Details
8Invitation of bids for Propylene Derivative Petrochemical Project, Kochi Refinery [BPCL] Details
8Carrying out Repairing and Servicing of Valves at Neelam & Heera Process Complex, Mumbai Region [ONGC] Details
8Cleaning Pigging of Cherlapalli Region Pipeline, Visakhapatnam [GAIL] Details
8Installation of LPG Vapour Compressor at LPG Bottling Plant [IOC] Details
8Laying and construction of steel pipeline along with associated facilities for Auraiya-Phulpur section of VAPPL Project [GAIL] Details
8Procurement of spares for DCP Skids for KG-OSN-2001/3 Block [GSPC] Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8India, US discover major natural gas reserve in Indian ocean Details
8Nigerian militants claim attack on pipeline; police deny it Details
8Petroleum sector the driving force behind growth of Indian economy: AK Sharma, Director-Finance, IOC Details
8Gail officials on state visit for Sindri factory revival Details
8Govt out to enroll 10 crore new LPG consumers Details
8ONGC, Cairn India demand halving of cess on crude oil Details
8India's spending on clean fuel driven by saving lives Details
8Cairn India says ONGC agrees to extending Barmer contract Details
8India to unveil natural gas infrastructure policy Details
8Petrobras to reduce role in Brazil's natural gas industry Details
8World Bank raises crude oil forecast to $43 per barrel Details
8Russian oil industry close to major taxation overhaul Details
You can also click on Newsclips for more Details
Latest data shows that global capital expenditure in first-quarter 2016 totaled $68 billion, 36% lower than the first quarter of 2015
8Upstream investment on a per-barrel basis is the lowest since at least 2012
8A return to the 25% ratio of upstream capital expenditure to crude prices would require further spending cuts or an increase in prices
8Importantly however, many companies were able to balance their capital expenditure with cash from operations.
Click on Reports for more Details
8Upstream investment on a per-barrel basis is the lowest since at least 2012
8A return to the 25% ratio of upstream capital expenditure to crude prices would require further spending cuts or an increase in prices
8Importantly however, many companies were able to balance their capital expenditure with cash from operations.
Click on Reports for more Details
Some companies have a habit of getting into litigation with their stakeholders, and the Y.K. Modi controlled Great Eastern Corporation Ltd, a CBM operator, is one of them.
8Several suppliers have taken the company to court for arbitrarily canceling contracts.
The company has outstanding litigation going on with:
8The DGH (claims over production level payments)
8The PNGRB (against a penalty for laying a pipeline outside of the rules of the regulator)
8Competition Commission of India.
Equipment and service providers should conduct adequate due diligence before dealing with the company.
Click on Reports to find out more on the litigations. Details
8Several suppliers have taken the company to court for arbitrarily canceling contracts.
The company has outstanding litigation going on with:
8The DGH (claims over production level payments)
8The PNGRB (against a penalty for laying a pipeline outside of the rules of the regulator)
8Competition Commission of India.
Equipment and service providers should conduct adequate due diligence before dealing with the company.
Click on Reports to find out more on the litigations. Details
A paper examines how advances in technology has transformed the oil and gas industry by improving the world's ability to find new resources.
8Exploratory drilling success went from 20% to 60% in 50 years while development drilling success went upto to 90%.
8Two major developments made the dramatic difference: Canadian tar sands raised the world's oil reserves by 10% while North American shale and oil reserves saw an increase in oil reserves by 50% and gas reserves by 60%.
8There are more reserves lurking in what were once called "impossible" reservoirs. Oil shale (not to be confused with shale oil) estimates are at 2.8 trillion barrels (in comparison to 4-6 trillion bbls of "conventional" oil resources).
8Then there is methane hydrates. The estimate here is 10-100 trillion cubic feet of gas (in comparison, there are between 28-400 trillion cubic feet of "conventional" gas reserves)
8So the world is unlikely to run out of oil and gas anytime soon.
8But the tantalizing question is: Will the world run out demand for fossil fuels?
Click on Reports to find the answer to this question. Details
8Exploratory drilling success went from 20% to 60% in 50 years while development drilling success went upto to 90%.
8Two major developments made the dramatic difference: Canadian tar sands raised the world's oil reserves by 10% while North American shale and oil reserves saw an increase in oil reserves by 50% and gas reserves by 60%.
8There are more reserves lurking in what were once called "impossible" reservoirs. Oil shale (not to be confused with shale oil) estimates are at 2.8 trillion barrels (in comparison to 4-6 trillion bbls of "conventional" oil resources).
8Then there is methane hydrates. The estimate here is 10-100 trillion cubic feet of gas (in comparison, there are between 28-400 trillion cubic feet of "conventional" gas reserves)
8So the world is unlikely to run out of oil and gas anytime soon.
8But the tantalizing question is: Will the world run out demand for fossil fuels?
Click on Reports to find the answer to this question. Details
HOEC is expected to participate actively in bidding for the new marginal and small oil fields on offer by the government.
8It has made a success of its Cambay margin fields made up of North Balol, Asjol and CB-ON-7.
8HOEC's netback from the North Balol field is $10/boe, $8/boe from Asjol and a massive $16/boe from CB-ON-7.
8It plans to leverage its small fields experience to bid aggressively in the current round.
For business development mangers, future prospects are available in the three marginal fields:
8Asjol: Acquisition of 3D seismic and drilling of two wells
8CB-ON-7: Workover of one well, 3D seismic acquisition and drilling of two wells.
8North Balol: Work over of three wells, 3D seismic acquisition and drilling of thee wells.
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8It has made a success of its Cambay margin fields made up of North Balol, Asjol and CB-ON-7.
8HOEC's netback from the North Balol field is $10/boe, $8/boe from Asjol and a massive $16/boe from CB-ON-7.
8It plans to leverage its small fields experience to bid aggressively in the current round.
For business development mangers, future prospects are available in the three marginal fields:
8Asjol: Acquisition of 3D seismic and drilling of two wells
8CB-ON-7: Workover of one well, 3D seismic acquisition and drilling of two wells.
8North Balol: Work over of three wells, 3D seismic acquisition and drilling of thee wells.
Click on Reports for more Details
A business development opportunity exists in the CB-ON-7 block where the government has decided to grant a 97 sq km ring fenced area to a JV of HOEC and GSPC through a new PSC.
8A recent discovery by a private operator in the surrendered area of the block has emboldened HOEC and GSPC to work on the ring fenced area.
8The PSC is in the process of being signed.
8The minimum work programmes speaks of 3D seismic acquisition and drilling of two wells.
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8A recent discovery by a private operator in the surrendered area of the block has emboldened HOEC and GSPC to work on the ring fenced area.
8The PSC is in the process of being signed.
8The minimum work programmes speaks of 3D seismic acquisition and drilling of two wells.
Click on Reports for more Details
HOEC is looking at a partial farm out of its 100% stake in the PY-1 field.
8Average production in the field is now at a mere 1.6 mmscfd but the company is confident that there are unexplored resources that are still to be tapped in its complex reservoir.
8HOEC had spent $400 million in the field so far and there is a 55 mmscfd processing plant on 209 acres of land. It has drilled four development wells through an offshore platform.
8The company is also looking at production synergies with adjoining production assets of other operators.
8It is currently reprocessing the 3D seismic data to identify the type of fractures, flow of HC and water to ascertain their production potential.
8Potential drilling work and interventions in existing wells are likely after the G&G review.
8A third party assessment shows significant 2P reserves of 32.5 BCF and 3P reserves of 93.5 BCF.
8New wells are likely to target undrilled prospects.
8In the PY-3 field too, where HOEC has a 21% PI, a low cost proposal has been submitted to revive the field which had been shut since July 2011.
8A business development prospect exists here for equipment and service providers once the price cycle turns positive.
Click on Reports for more Details
8Average production in the field is now at a mere 1.6 mmscfd but the company is confident that there are unexplored resources that are still to be tapped in its complex reservoir.
8HOEC had spent $400 million in the field so far and there is a 55 mmscfd processing plant on 209 acres of land. It has drilled four development wells through an offshore platform.
8The company is also looking at production synergies with adjoining production assets of other operators.
8It is currently reprocessing the 3D seismic data to identify the type of fractures, flow of HC and water to ascertain their production potential.
8Potential drilling work and interventions in existing wells are likely after the G&G review.
8A third party assessment shows significant 2P reserves of 32.5 BCF and 3P reserves of 93.5 BCF.
8New wells are likely to target undrilled prospects.
8In the PY-3 field too, where HOEC has a 21% PI, a low cost proposal has been submitted to revive the field which had been shut since July 2011.
8A business development prospect exists here for equipment and service providers once the price cycle turns positive.
Click on Reports for more Details
HOEC is one of only a handful of successful private sector E&P companies in India.
8The company's big story today is the $100 million investment in Assam's AAP-ON-94/1 block in which it is the operator with a 27% participating interest.
8It has drilled three exploration and two appraisal wells so far. The initial gas in place is 244 BCF and recoverable reserves are at 134 BCF.
8Expected peak production is 20 mmscfd for a total of 15 years.
8Production is going to come on stream in Q4 2016-17
8In what is an innovative approach, the company has contracted a Build Maintain and Operate Model for its Modular Gas Processing complex to Empro of UK.
8What is more, the company secured an already operating rig which was deployed in Assam to do its drilling work, thereby cutting costs.
8The best part is that an existing Oil India Ltd (OIL) infrastructure provides easy access to the gas market.
8Discussions are currently on with OIL for a Gas Sale Agreement.
8The point to note is that due to low cost, the project stays viable at low gas prices.
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8The company's big story today is the $100 million investment in Assam's AAP-ON-94/1 block in which it is the operator with a 27% participating interest.
8It has drilled three exploration and two appraisal wells so far. The initial gas in place is 244 BCF and recoverable reserves are at 134 BCF.
8Expected peak production is 20 mmscfd for a total of 15 years.
8Production is going to come on stream in Q4 2016-17
8In what is an innovative approach, the company has contracted a Build Maintain and Operate Model for its Modular Gas Processing complex to Empro of UK.
8What is more, the company secured an already operating rig which was deployed in Assam to do its drilling work, thereby cutting costs.
8The best part is that an existing Oil India Ltd (OIL) infrastructure provides easy access to the gas market.
8Discussions are currently on with OIL for a Gas Sale Agreement.
8The point to note is that due to low cost, the project stays viable at low gas prices.
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Greka Drilling, the specialized CBM driller, is ramping up its work in India.
8The company has elicited a $8 million contract on a day rate basis with Essar for drilling of specialized CBM wells.
8Greka has developed the LiFaBriC (Lined Faulted Brittle Coal) methodology, specifically designed for the complex geology in China.
8This is an adaptation of the horizontal drilling traditionally used for drilling in coal seam reservoirs. It is not only extremely efficient but is also an environmentally friendly technique which removes the need for controversial fracking methods.
8Greka is now planning to deploy a specialized rig in Essar for drilling and the company may need supplementary services and equipment from Indian equipment and service providers.
Click on Reports for more Details
8The company has elicited a $8 million contract on a day rate basis with Essar for drilling of specialized CBM wells.
8Greka has developed the LiFaBriC (Lined Faulted Brittle Coal) methodology, specifically designed for the complex geology in China.
8This is an adaptation of the horizontal drilling traditionally used for drilling in coal seam reservoirs. It is not only extremely efficient but is also an environmentally friendly technique which removes the need for controversial fracking methods.
8Greka is now planning to deploy a specialized rig in Essar for drilling and the company may need supplementary services and equipment from Indian equipment and service providers.
Click on Reports for more Details
An existing company is drilling a total of 8 wells in the NELP on land block
8The first well has been drilled to a depth of 3719 metres and is currently temporarily abandoned due to fish in hole
8The second well, drilled to 3278 metres, has been plugged due to poor prospectivity
8The third well is being drilled to a depth of 5200 metres, and the present drilling depth is 3900 metres.
8Additional drilling and supplementary services may be required to fulfill minimum work programme requirements.
Click on Reports to find the contact details of the contract head for this development. Details
8The first well has been drilled to a depth of 3719 metres and is currently temporarily abandoned due to fish in hole
8The second well, drilled to 3278 metres, has been plugged due to poor prospectivity
8The third well is being drilled to a depth of 5200 metres, and the present drilling depth is 3900 metres.
8Additional drilling and supplementary services may be required to fulfill minimum work programme requirements.
Click on Reports to find the contact details of the contract head for this development. Details
