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Aug 2015
Russia’s economy is less reliant on petroleum than Venezuela's or Nigeria's, but still falling crude prices have hit home hard . Moscow gets more than half its budget revenue from oil and gas, and for every $10 drop in the per-barrel price of oil, Russia loses up to $14.6 billion a year in revenue by some estimates.
8The slump in crude prices, combined with Western sanctions over Moscow’s role in the Ukraine crisis, have pummeled the Russian economy in recent months. Russia’s currency, the ruble, took a particularly hard hit Monday amid the stock market mayhem spurred by China. The ruble traded Monday as low as 71.04 to the U.S. dollar, its lowest point this year, after sliding by 23 percent in the last 30 days.
8Meanwhile Brazil's national oil company, Petrobras, this summer lowered its long-term production target to just 2.8 million barrels per day by 2020, down from an earlier target of 4 million. The company also announced plans to divest $15.1 billion in assets in 2015-2016, plus another $42.6 billion in assets in 2017-2018. 8Petrobras is grappling with colossal debt of around $124 billion on top of billions of dollars in penalties related to an ongoing corruption scandal at the energy giant.s 71.04 to the U.S. dollar, its lowest point this year, after sliding by 23 percent in the last 30 days.
8Low oil prices are eating away at the company’s bottom line. Petrobras reported net income of $150.2 million for the second quarter of 2015 -- down nearly 90 percent from the same quarter in 2014. Analysts had projected a decline of about 20 percent.
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8The slump in crude prices, combined with Western sanctions over Moscow’s role in the Ukraine crisis, have pummeled the Russian economy in recent months. Russia’s currency, the ruble, took a particularly hard hit Monday amid the stock market mayhem spurred by China. The ruble traded Monday as low as 71.04 to the U.S. dollar, its lowest point this year, after sliding by 23 percent in the last 30 days.
8Meanwhile Brazil's national oil company, Petrobras, this summer lowered its long-term production target to just 2.8 million barrels per day by 2020, down from an earlier target of 4 million. The company also announced plans to divest $15.1 billion in assets in 2015-2016, plus another $42.6 billion in assets in 2017-2018. 8Petrobras is grappling with colossal debt of around $124 billion on top of billions of dollars in penalties related to an ongoing corruption scandal at the energy giant.s 71.04 to the U.S. dollar, its lowest point this year, after sliding by 23 percent in the last 30 days.
8Low oil prices are eating away at the company’s bottom line. Petrobras reported net income of $150.2 million for the second quarter of 2015 -- down nearly 90 percent from the same quarter in 2014. Analysts had projected a decline of about 20 percent.
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The fall in crude prices has had a very adverse impact on the economies of major oil exporting countries.
Here is a synopsis:
8Venezuela relies on crude sales for roughly 96 percent of its exports, and more than half of the country’s gross domestic product. Venezuelan economists estimate that for every dollar off the price of oil, the government loses as much as $700 million in estimated revenues a year.
8As a result, Venezuela is acutely exposed to any dip in oil prices, and the country is facing an economic crisis. Foreign reserves plummeted to a 12-year low in late July, reaching just $15.3 billion, down from a 2015 peak of $24.2 billion in late February.
8Meanwhile, falling oil prices are eating away at the country’s Excess Crude Account, into which Nigeria saves the difference between market oil prices and its budget benchmarks. The account, which offers a cushion when prices fall or the nation needs extra infrastructure funding, now holds just over $2 billion, down from a 2012 peak of $8.7 billion, according to Nigeria’s Ministry of Finance.
8Nigeria, Africa’s largest oil producer, needs oil prices at $119 a barrel to balance its budget. Without those revenues, the oil sector has shrunk by 8.2 percent, the National Bureau of Statistics estimates.
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Here is a synopsis:
8Venezuela relies on crude sales for roughly 96 percent of its exports, and more than half of the country’s gross domestic product. Venezuelan economists estimate that for every dollar off the price of oil, the government loses as much as $700 million in estimated revenues a year.
8As a result, Venezuela is acutely exposed to any dip in oil prices, and the country is facing an economic crisis. Foreign reserves plummeted to a 12-year low in late July, reaching just $15.3 billion, down from a 2015 peak of $24.2 billion in late February.
8Meanwhile, falling oil prices are eating away at the country’s Excess Crude Account, into which Nigeria saves the difference between market oil prices and its budget benchmarks. The account, which offers a cushion when prices fall or the nation needs extra infrastructure funding, now holds just over $2 billion, down from a 2012 peak of $8.7 billion, according to Nigeria’s Ministry of Finance.
8Nigeria, Africa’s largest oil producer, needs oil prices at $119 a barrel to balance its budget. Without those revenues, the oil sector has shrunk by 8.2 percent, the National Bureau of Statistics estimates.
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Low gas prices are finally having an impact on US shale gas production.
8Projections show that gas output will decline from 45.6 billion cubic feet per day (Bcf/d) registered in May 2015 to 44.9 Bcf/d in September.
8Rig counts have been declining since the fourth quarter of 2015 in the major shale place in the U.S.
8As rig counts fall, increases in rig productivity are necessary not only to compensate for the reduced rig total, but also for rising levels of legacy-well declines.
8Clearly, production from new wells is not large enough to offset production declines from existing, legacy wells.
8Is this the beginning of the much awaited decline in shale gas production that the world has been anticipating after the dramatic fall in crude prices?
8There is no hard data yet on whether gas production will continue to decline or this is just a temporary one-off decline.
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8Projections show that gas output will decline from 45.6 billion cubic feet per day (Bcf/d) registered in May 2015 to 44.9 Bcf/d in September.
8Rig counts have been declining since the fourth quarter of 2015 in the major shale place in the U.S.
8As rig counts fall, increases in rig productivity are necessary not only to compensate for the reduced rig total, but also for rising levels of legacy-well declines.
8Clearly, production from new wells is not large enough to offset production declines from existing, legacy wells.
8Is this the beginning of the much awaited decline in shale gas production that the world has been anticipating after the dramatic fall in crude prices?
8There is no hard data yet on whether gas production will continue to decline or this is just a temporary one-off decline.
Click on details for more. Details
The government has come out with a RFQ for an investor for FCI's Gorkhpur urea plant.
8The investor will setup, design, finance, construct, establish, operate and maintain a gas based 1.27 MMTPA urea plant for a term of 33 years which may further be renewed.
8Of the total land area of 993.81 acres available at Gorakhpur, the requisite land area will be made available to the investor to set up the plant.
8Deloitte has been appointed as the advisor for the transaction.
8The cost of the project will be around Rs 6000 crore
8The Government has earmarked 2.4 MMSCMD of domestic natural gas for the project from Daman Field of ONGC, which is expected to commence production from September 2016.
8Considering the production profile of the field, the government will commit this volume of gas till 2028-29.
8The gas will be transported through the upcoming Jagdishpur-Phulpur-Haldia pipeline to be constructed by GAIL.
8The government claims it has set up a high level Empowered Committee (“EC”) to oversee the construction of the pipeline, the commissioning of which will be synchronized along with the commissioning of the urea project. The selected investor would be required to sign a gas transportation agreement with GAIL
8The application due date is September 30 and the selection of qualified applicants will be announced on October 12.
8The sale of bid documents will be from October 20 while the bid due date will be November 20.
8The LOA will be issued 75 days from the bid due date. The deal will be signed within 30 days of the LOA.
Click on our Reports section for more Details
8The investor will setup, design, finance, construct, establish, operate and maintain a gas based 1.27 MMTPA urea plant for a term of 33 years which may further be renewed.
8Of the total land area of 993.81 acres available at Gorakhpur, the requisite land area will be made available to the investor to set up the plant.
8Deloitte has been appointed as the advisor for the transaction.
8The cost of the project will be around Rs 6000 crore
8The Government has earmarked 2.4 MMSCMD of domestic natural gas for the project from Daman Field of ONGC, which is expected to commence production from September 2016.
8Considering the production profile of the field, the government will commit this volume of gas till 2028-29.
8The gas will be transported through the upcoming Jagdishpur-Phulpur-Haldia pipeline to be constructed by GAIL.
8The government claims it has set up a high level Empowered Committee (“EC”) to oversee the construction of the pipeline, the commissioning of which will be synchronized along with the commissioning of the urea project. The selected investor would be required to sign a gas transportation agreement with GAIL
8The application due date is September 30 and the selection of qualified applicants will be announced on October 12.
8The sale of bid documents will be from October 20 while the bid due date will be November 20.
8The LOA will be issued 75 days from the bid due date. The deal will be signed within 30 days of the LOA.
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The marketing trio of IOC, BPCL and HPCL have come out with a big tender for ethanol that is required by statute for blending with petrol as part of the government's drive to promote bio-fuels.
8In all, 26.56 lakh KL of ethanol will be bought. Of this, IOC will buy 12.51 lakh KL of ethanol, followed by BPCL and HPCL at around 7 lakh KL each.
8In addition to ethanol produced from molasses, ethanol produced from other non-food feed stocks besides molasses like cellulosic and lingo cellulosic materials and even ethanol made through the petrochemical route will be allowed subject to meeting the relevant BIS standards.
8Location wise procurement of ethanol has carried on our Reports section. Details
8In all, 26.56 lakh KL of ethanol will be bought. Of this, IOC will buy 12.51 lakh KL of ethanol, followed by BPCL and HPCL at around 7 lakh KL each.
8In addition to ethanol produced from molasses, ethanol produced from other non-food feed stocks besides molasses like cellulosic and lingo cellulosic materials and even ethanol made through the petrochemical route will be allowed subject to meeting the relevant BIS standards.
8Location wise procurement of ethanol has carried on our Reports section. Details
There is no doubt that coal polygeneration is how coal will eventually be used in the future.
8Polygeneration plants are potentially low emission plants since impurities, such as particulates, sulphur compounds and mercury, are removed from the syngas at the front end of the process.
8Polygeneration plants offer the flexibility to switch from one product to another. Hence the product with the highest value at the time can be manufactured to maximise profits, for instance, by generating power during the day and coproducts at night;
8There is also increased efficiency as the technology takes advantage of synergisms between the different processes. Waste heat from one process, for example, can become a valuable input to another process, thus raising the overall energy efficiency of the plant
8Then production cost is also lower than for separate plants mainly due to the increased efficiency, higher equipment utilisation and product flexibility.
8The main downsides associated with polygeneration plants are the added operational complexity of integrating a power facility with a chemical facility, and the increased capital cost (compared with a single product coal gasification plant).
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8Polygeneration plants are potentially low emission plants since impurities, such as particulates, sulphur compounds and mercury, are removed from the syngas at the front end of the process.
8Polygeneration plants offer the flexibility to switch from one product to another. Hence the product with the highest value at the time can be manufactured to maximise profits, for instance, by generating power during the day and coproducts at night;
8There is also increased efficiency as the technology takes advantage of synergisms between the different processes. Waste heat from one process, for example, can become a valuable input to another process, thus raising the overall energy efficiency of the plant
8Then production cost is also lower than for separate plants mainly due to the increased efficiency, higher equipment utilisation and product flexibility.
8The main downsides associated with polygeneration plants are the added operational complexity of integrating a power facility with a chemical facility, and the increased capital cost (compared with a single product coal gasification plant).
Click on Reports for more Details
Gautam Adani's MOU for a massive Rs 25,000 crore investment in a coal to poly-generation plant in Chhattisgarh
8The complex will produce power but also syn gas that is going to be used to produce urea.
8A polygeneration plant, as its name implies, is one that simultaneously produces two or more marketable products.
8In Adani's case, electric power will be one of the products. Importantly, most of the process steps in a polygeneration plant involve commercially proven technologies. The advantage is that these technology modules can be interconnected in different configurations to produce the required products.
8How does the technology work? Coal is first gasified to produce synthesis gas (syngas, consisting primarily of hydrogen and carbon monoxide), which is subsequently cooled and cleaned. A portion of the syngas can be used directly in the gas turbines of an integrated gasification combined cycle (IGCC) power plant (if CO2 capture is not required) to generate electricity. The rest passes through a shift reactor to adjust the molar H2:CO ratio to the required value. The cleaned and shifted syngas is then utilised to produce the desired products (electric power, H2, liquid fuels and chemicals, icnluding urea).
8In addition, a number of by-products, such as sulphur or sulphuric acid, can be generated for sale.
Comment: Clearly this is a new concept in India. The technology is still to be tested on high ash content coal in India and coal availability will always be an issue for all coal gasification projects. But if a project of this kind has to be successful then it requires a well connected industrialist like Adani to push it to fruition. Coal gasification is the only way most of the urea is made in China but the cost economics of such a technology is still to be worked out in India. A polygeneration plant goes a step ahead of coal gasification, so all that the urea industry in India can do is to wait and watch which way the wind blows. Details
8The complex will produce power but also syn gas that is going to be used to produce urea.
8A polygeneration plant, as its name implies, is one that simultaneously produces two or more marketable products.
8In Adani's case, electric power will be one of the products. Importantly, most of the process steps in a polygeneration plant involve commercially proven technologies. The advantage is that these technology modules can be interconnected in different configurations to produce the required products.
8How does the technology work? Coal is first gasified to produce synthesis gas (syngas, consisting primarily of hydrogen and carbon monoxide), which is subsequently cooled and cleaned. A portion of the syngas can be used directly in the gas turbines of an integrated gasification combined cycle (IGCC) power plant (if CO2 capture is not required) to generate electricity. The rest passes through a shift reactor to adjust the molar H2:CO ratio to the required value. The cleaned and shifted syngas is then utilised to produce the desired products (electric power, H2, liquid fuels and chemicals, icnluding urea).
8In addition, a number of by-products, such as sulphur or sulphuric acid, can be generated for sale.
Comment: Clearly this is a new concept in India. The technology is still to be tested on high ash content coal in India and coal availability will always be an issue for all coal gasification projects. But if a project of this kind has to be successful then it requires a well connected industrialist like Adani to push it to fruition. Coal gasification is the only way most of the urea is made in China but the cost economics of such a technology is still to be worked out in India. A polygeneration plant goes a step ahead of coal gasification, so all that the urea industry in India can do is to wait and watch which way the wind blows. Details
The BP-RIL combine had last year argued that the high extraction price for the KG Basin discoveries was essentially because of the small reserves that they contain in comparison to similar discoveries around the world.
8The duo had argued that there are very few small deepwater dry gas fields, with reserves in the range of 1-3 TCF that had been developed so far around the world>
8The economics are difficult particularly when the geology is complex as is the case with the KG basin.
8It is because of the technical complexities that a high price is required to achieve break-even levels.
8At low prices, the only fields that had been viable so far were the ones with much large recoverable reservest.
8Examples of three fields were given, that of Muara Bakau (Indonesia), Ganal (Indonesia) and Liwan (China), with reserves between 1.3 to 2.3 TCF, where the break-even gas price was pegged at $8, $11 and $12.5/mmbtu respectively.
8But the breakeven price went down when the reserves are high, like Block 2 of Tanzania where the break-even gas price was estimated at $6/mmbtu because the reserves were pegged much higher at 13.2 TCF.
8In India on the other hand, reserves in discoveries such as the Dindayal discovery of GSPC, ONGC`s discoveries in the KG basin and RIL`s discoveries in KG, NEC and Cauvery basins were in the range of 0.5 to 2 TCF, and they cost must more to produce. The price tag was $10/mmbtu.
8Examples were also cited of some more global offshore fields where the well head gas price was above $10/mmbtu. These were: Malampaya (Phillipines), Corrib (Ireland), Brae Complex (UK North Sea), Misker (Tunisia) as well as Skarv and Asgard (Norway).
8The impact of the falling cost of equipment and services would not be the same across the board. These operators which had already entered into contracts would have to renegotiate them and this would take time.
8The advantage would accrue to discoveries that had not reached production yet or where work had just begun, like in the case of RIL-BP and ONGC. They would reap the full benefit of the fall in prices.
8The moot point however is that even though the price tag would come down for the RIL-BP duo, the same holds true for other discoveries too around the world.
8So the break-even point for Indian operators would come down but would production be viable if the market price of gas is lower than the break-even price?
That is something only time will tell. Details
8The duo had argued that there are very few small deepwater dry gas fields, with reserves in the range of 1-3 TCF that had been developed so far around the world>
8The economics are difficult particularly when the geology is complex as is the case with the KG basin.
8It is because of the technical complexities that a high price is required to achieve break-even levels.
8At low prices, the only fields that had been viable so far were the ones with much large recoverable reservest.
8Examples of three fields were given, that of Muara Bakau (Indonesia), Ganal (Indonesia) and Liwan (China), with reserves between 1.3 to 2.3 TCF, where the break-even gas price was pegged at $8, $11 and $12.5/mmbtu respectively.
8But the breakeven price went down when the reserves are high, like Block 2 of Tanzania where the break-even gas price was estimated at $6/mmbtu because the reserves were pegged much higher at 13.2 TCF.
8In India on the other hand, reserves in discoveries such as the Dindayal discovery of GSPC, ONGC`s discoveries in the KG basin and RIL`s discoveries in KG, NEC and Cauvery basins were in the range of 0.5 to 2 TCF, and they cost must more to produce. The price tag was $10/mmbtu.
8Examples were also cited of some more global offshore fields where the well head gas price was above $10/mmbtu. These were: Malampaya (Phillipines), Corrib (Ireland), Brae Complex (UK North Sea), Misker (Tunisia) as well as Skarv and Asgard (Norway).
8The impact of the falling cost of equipment and services would not be the same across the board. These operators which had already entered into contracts would have to renegotiate them and this would take time.
8The advantage would accrue to discoveries that had not reached production yet or where work had just begun, like in the case of RIL-BP and ONGC. They would reap the full benefit of the fall in prices.
8The moot point however is that even though the price tag would come down for the RIL-BP duo, the same holds true for other discoveries too around the world.
8So the break-even point for Indian operators would come down but would production be viable if the market price of gas is lower than the break-even price?
That is something only time will tell. Details
The maximum allowable operating pressure (MAOP) for Paradip_Durgapur section will be 129 Kg Sq.cm whereas for the Durgapur-Barauni and the Baruni- Muzaffarpur section the MAOP will be 129KgSq.cm and 141 KgSq.cm respectively.
8The pipeline will be laid normally at about 1.2 to 1.5 m below the surface level.
The capacities for different sections are as follows:
-- 1.57 MMTPA for Paradip - Haldia section
-- 2 MMTPA for Haldia – Durgapur section
-- 1.5 MMTPA for Durgapur-Patna-Muzaffarpur section
Length:
--Paradip to Durgapur loop lines with 10.75 inch dia. and 208 Km length
-- Durgapur to Patna and Muzaffarpur new pipelines with 12.75”/10.75 inch diameters with combined length of 580 Km.
Click on the Reports section for more. Details
8The pipeline will be laid normally at about 1.2 to 1.5 m below the surface level.
The capacities for different sections are as follows:
-- 1.57 MMTPA for Paradip - Haldia section
-- 2 MMTPA for Haldia – Durgapur section
-- 1.5 MMTPA for Durgapur-Patna-Muzaffarpur section
Length:
--Paradip to Durgapur loop lines with 10.75 inch dia. and 208 Km length
-- Durgapur to Patna and Muzaffarpur new pipelines with 12.75”/10.75 inch diameters with combined length of 580 Km.
Click on the Reports section for more. Details
The RIL-BP duo think that there is around 5 tcf of discovered resources in its KG D6 and NEC 25 blocks that are still to be tapped.
8The discoveries in NEC 25 have around 1.2 tcf of recoverable reserves.
8At one point RIL and BP held out the promise of getting 25-30 msmcmd of gas pumping from these discoveries in 3 to 5 years from starting development work.
8While trying to sell a higher price for the gas discoveries, BP had at one point in time argued that there is a potential to unearth a massive 50-100 tcf of gas in the Indian basins but that looks like tall talk now.
8These discoveries together would have entailed an investment of around $500 billion or so, and at today's deflated prices, the investment being talked about is around 375 billion or so.
8But all this talk was before the global oil and gas prices tanked.
8In today's changed environment, the combine will be happy if it can just develop the discoveries that it has in hand. Details
8The discoveries in NEC 25 have around 1.2 tcf of recoverable reserves.
8At one point RIL and BP held out the promise of getting 25-30 msmcmd of gas pumping from these discoveries in 3 to 5 years from starting development work.
8While trying to sell a higher price for the gas discoveries, BP had at one point in time argued that there is a potential to unearth a massive 50-100 tcf of gas in the Indian basins but that looks like tall talk now.
8These discoveries together would have entailed an investment of around $500 billion or so, and at today's deflated prices, the investment being talked about is around 375 billion or so.
8But all this talk was before the global oil and gas prices tanked.
8In today's changed environment, the combine will be happy if it can just develop the discoveries that it has in hand. Details
IOCL has planned to go ahead with the Paradip-Haldia-Durgapur pipeline project and will be conducting the EIA and RA studies shortly.
8The project will include both, augmentation of the Paradip-Durgapur pipeline and its extension up to Patna and Muzaffarpur Stations.
8The proposed pipeline is a multi product pipeline and will be primarily be used for LPG.
8The study area will cover a radius of 15Km around tap-off points in Paradip, Balasore, Haldia, Durgapur, Bhagalpur, Barauni, Muzaffarpur and Patna and 1Km along the pipeline route from Haldia to Belmuri.
8The study will be completed within 16 months from the date of issue of work order. A total of four states will be linked in the project ( Odisha , West Bengal, Bihar and Jharkhand).
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Details
8The project will include both, augmentation of the Paradip-Durgapur pipeline and its extension up to Patna and Muzaffarpur Stations.
8The proposed pipeline is a multi product pipeline and will be primarily be used for LPG.
8The study area will cover a radius of 15Km around tap-off points in Paradip, Balasore, Haldia, Durgapur, Bhagalpur, Barauni, Muzaffarpur and Patna and 1Km along the pipeline route from Haldia to Belmuri.
8The study will be completed within 16 months from the date of issue of work order. A total of four states will be linked in the project ( Odisha , West Bengal, Bihar and Jharkhand).
Click on the Reports for more.
Details
RIL can expect a fall of about 25% in the cost of sub sea production hardware that it is currently bidding out.
8Sub sea production hardware make up about 10% of all deepwater development costs.
8RIL is looking at EOIs from suppliers around the world for for the following sub sea related equipment to develop its NELP blocks:
The following design and supply works will done in the blocks:
8Design and Supply of X-Mas Trees, PLEM, Manifolds, Umbilical Distribution Hub, Subsea Distribution Unit, Subsea Distribution assembly, Subsea Control System, Umbilical termination assemblies, Tie-in systems and Over Pressure Protection System (OPPS) including High Integrity Pressure Protection System (HIPPS) for subsea applications, technical support during installation and commissioning, provision of operational spares, IWOCS, tools and maintenance support during the lifecycle of the field.
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8Sub sea production hardware make up about 10% of all deepwater development costs.
8RIL is looking at EOIs from suppliers around the world for for the following sub sea related equipment to develop its NELP blocks:
The following design and supply works will done in the blocks:
8Design and Supply of X-Mas Trees, PLEM, Manifolds, Umbilical Distribution Hub, Subsea Distribution Unit, Subsea Distribution assembly, Subsea Control System, Umbilical termination assemblies, Tie-in systems and Over Pressure Protection System (OPPS) including High Integrity Pressure Protection System (HIPPS) for subsea applications, technical support during installation and commissioning, provision of operational spares, IWOCS, tools and maintenance support during the lifecycle of the field.
Click on Details for more Details
RIL has also sought quotes for the following items:
--Design and Supply of various types of steel tube Umbilicals including technical support during installation and commissioning.
--Supply of SAW Line pipes and bends for Subsea Application
--Supply of Seamless Line pipes and bends for Subsea Application.
--Supply of Valves and Actuators for Subsea Application.
--Design and Supply of Over Pressure Protection System (OPPS) including High Integrity Pressure Protection System (HIPPS) for Offshore topside application
--Design Review, Appraisal, Certification and verification Agency for Offshore Facilities.
8Latest indications are that SURF and pipeline costs have gone down by about 20% and they make up about 23% of the total deepwater development cost. Details
--Design and Supply of various types of steel tube Umbilicals including technical support during installation and commissioning.
--Supply of SAW Line pipes and bends for Subsea Application
--Supply of Seamless Line pipes and bends for Subsea Application.
--Supply of Valves and Actuators for Subsea Application.
--Design and Supply of Over Pressure Protection System (OPPS) including High Integrity Pressure Protection System (HIPPS) for Offshore topside application
--Design Review, Appraisal, Certification and verification Agency for Offshore Facilities.
8Latest indications are that SURF and pipeline costs have gone down by about 20% and they make up about 23% of the total deepwater development cost. Details
RIL is likely to take advantage of the 20% decline in seismic costs and overheads, as they make up about 20-30% of the exploration cost
8The cost for offshore services have also seen a sharp decline.
8Facility costs are down 15%a nd they make up as much as 30% of deepwater development cost
8Savings can also be expected in the cost of well services. Costs in this segment are down by down by 10% and they make about 40 to 45% of exploration cost.
8Pertinently RIL has already obtained a 25% revision in a deepwater drilling contract given to Transocen beginning August, 2015. More cuts are expected going ahead.
RIL is now asking for EOIs for the following additional equipment and services:
--All drilling & completion related services, Equipment and materials for exploratory & development drilling, completion, work over & intervention .
--Geophysical and seismic services
--Geo-Technical investigation for offshore field development.
--Geo-Physical surveys for offshore field development
--Geo-Hazard studies for offshore field development
--Supply of SAW line pipes and bends for sub sea application.
--Supply of seamless line pipes and bends for sub sea application
--Supply of valves and actuators for sub sea application
--Engineering, procurement, installation & Commissioning (EPIC) of sub sea facilities & pipelines for deep water field development and offshore platform brown field modification work.
--Project management consultancy services for field development.
--Collection, analysis and interpretation of meteorological and oceanographic data for offshore field development.
--Services of a marine warranty surveyor.
Click on Details for more Details
8The cost for offshore services have also seen a sharp decline.
8Facility costs are down 15%a nd they make up as much as 30% of deepwater development cost
8Savings can also be expected in the cost of well services. Costs in this segment are down by down by 10% and they make about 40 to 45% of exploration cost.
8Pertinently RIL has already obtained a 25% revision in a deepwater drilling contract given to Transocen beginning August, 2015. More cuts are expected going ahead.
RIL is now asking for EOIs for the following additional equipment and services:
--All drilling & completion related services, Equipment and materials for exploratory & development drilling, completion, work over & intervention .
--Geophysical and seismic services
--Geo-Technical investigation for offshore field development.
--Geo-Physical surveys for offshore field development
--Geo-Hazard studies for offshore field development
--Supply of SAW line pipes and bends for sub sea application.
--Supply of seamless line pipes and bends for sub sea application
--Supply of valves and actuators for sub sea application
--Engineering, procurement, installation & Commissioning (EPIC) of sub sea facilities & pipelines for deep water field development and offshore platform brown field modification work.
--Project management consultancy services for field development.
--Collection, analysis and interpretation of meteorological and oceanographic data for offshore field development.
--Services of a marine warranty surveyor.
Click on Details for more Details
The RIL-BP-Niko combine has decided to test the waters for new prices for E&P equipment and services.
8It has asked for EOIs for an entire range of E&P equipment and services to arrive at new pricing levels for its exploration and production activities in all its blocks in the face of sharply falling prices. The last date for submission is end of August.
8The interest elicited in these tenders will set the tone for pricing of E&P equipment and services in India for the next two ot three years.
8Oil field equipment and service costs have registered a steep decline, ranging from 20 to 30% and in some cases even more.
8RIL, who is the operator for the Indian blocks, is known to drive hard bargains. The company is also trying to leverage its partnership with BP to leverage the fall in prices.
8Given the current state of global markets for equipment and services, the deflation in exploration and production costs is likely to continue over the next two to three years.
8Assuming a 25% initial deflation and going up to 30% over the development cycle of deepwater gas discoveries in the KG basin, the development cost for the RIL-BP combine can come down dramatically.
8RIL had last year estimated the break even cost of its deepwater discoveries will be more than $10/mmbtu.
8But these calculations will now change in the light of the new situation.
If prices for equipment and services continue to fall, the break even cost can in fact come down to around $7.5/mmbtu.
8Will this make the discoveries viable? This will clearly depend on the landed cost of LNG in India but assuming that Henry Hub prices do not decline from current levels of around $2.8/mmbtu, the cost economics would clearly depend on the "premium" that is meant to be given by the government for these discoveries.
8As it is, breaking even is going to be a tough call for deepwater plays, particularly in India given that they are tight oil reservoirs which are HPHT in nature.
8The rapid decline in the D-1 and D-3 fields go to indicate that keeping production going in these reservoirs is a tough job even for a company like BP with all the technology in their hand.
8In this context, the government's move to provide a "premium" as a percentage of the gas produced that can be priced at market rates may not make economic sense in today's environment.
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8It has asked for EOIs for an entire range of E&P equipment and services to arrive at new pricing levels for its exploration and production activities in all its blocks in the face of sharply falling prices. The last date for submission is end of August.
8The interest elicited in these tenders will set the tone for pricing of E&P equipment and services in India for the next two ot three years.
8Oil field equipment and service costs have registered a steep decline, ranging from 20 to 30% and in some cases even more.
8RIL, who is the operator for the Indian blocks, is known to drive hard bargains. The company is also trying to leverage its partnership with BP to leverage the fall in prices.
8Given the current state of global markets for equipment and services, the deflation in exploration and production costs is likely to continue over the next two to three years.
8Assuming a 25% initial deflation and going up to 30% over the development cycle of deepwater gas discoveries in the KG basin, the development cost for the RIL-BP combine can come down dramatically.
8RIL had last year estimated the break even cost of its deepwater discoveries will be more than $10/mmbtu.
8But these calculations will now change in the light of the new situation.
If prices for equipment and services continue to fall, the break even cost can in fact come down to around $7.5/mmbtu.
8Will this make the discoveries viable? This will clearly depend on the landed cost of LNG in India but assuming that Henry Hub prices do not decline from current levels of around $2.8/mmbtu, the cost economics would clearly depend on the "premium" that is meant to be given by the government for these discoveries.
8As it is, breaking even is going to be a tough call for deepwater plays, particularly in India given that they are tight oil reservoirs which are HPHT in nature.
8The rapid decline in the D-1 and D-3 fields go to indicate that keeping production going in these reservoirs is a tough job even for a company like BP with all the technology in their hand.
8In this context, the government's move to provide a "premium" as a percentage of the gas produced that can be priced at market rates may not make economic sense in today's environment.
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Calculations show that the cost of developing a greenfield development programme is around $4-5 billion.
8But these estimates have now shrunk by about 25% because of the deflation in costs.
8Positive returns were in fact being elicited only at around $11/mmbtu or so.
8While costs have come down, revenues are also likely to lower as the spot LNG market may work as a floor on the best possible prices that these discoveries can elicit in India.
8The goal post continues to shift with every change in gas prices and equipment and services costs.
8Clearly, investments in India's difficult deepwater basins is not for the fainthearted.
8You need money, faith and holding power.
8And if the RIL-BP combine embarks on an investment spree at this point in term in the face of mounting uncertainty, their effort needs to applauded.
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8But these estimates have now shrunk by about 25% because of the deflation in costs.
8Positive returns were in fact being elicited only at around $11/mmbtu or so.
8While costs have come down, revenues are also likely to lower as the spot LNG market may work as a floor on the best possible prices that these discoveries can elicit in India.
8The goal post continues to shift with every change in gas prices and equipment and services costs.
8Clearly, investments in India's difficult deepwater basins is not for the fainthearted.
8You need money, faith and holding power.
8And if the RIL-BP combine embarks on an investment spree at this point in term in the face of mounting uncertainty, their effort needs to applauded.
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Oilex's much awaited Bhandut-3 well is expected to get into production within 3 months.
8After the completion of design and procurement activities, commissioning activities are expected to be completed in 80 days.
8The production test results of Bhandut-3 well were also analyzed and the internal deterministic estimate of 2C contingent resource has been upgraded from a previous internal estimate to 425MMscf (170MMscf Oilex net) as on 21 August 2015.
8Moreover, the production data over several months will be required to estimate the reserve potential.
8The commissioning of Bahndut-3 well will help the company to supply gas to the local market and hence generate cash flow from the previously idle asset.
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8After the completion of design and procurement activities, commissioning activities are expected to be completed in 80 days.
8The production test results of Bhandut-3 well were also analyzed and the internal deterministic estimate of 2C contingent resource has been upgraded from a previous internal estimate to 425MMscf (170MMscf Oilex net) as on 21 August 2015.
8Moreover, the production data over several months will be required to estimate the reserve potential.
8The commissioning of Bahndut-3 well will help the company to supply gas to the local market and hence generate cash flow from the previously idle asset.
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Preparation of the 5 well workover campaign is nearing completion and field work is anticipated to commence during September 2015.
8The workover campaign is targeting both oil and gas production which will make a contribution to generating operating cash flow to assist in the Indian operations becoming cash flow positive.
8The contracting and procurement process for the 2015-16 drilling campaign is also nearing completion.
8The technical and commercial evaluations of 13 out of the 14 major tenders are finished and final evaluation and approval processes are in progress.
8Gas marketing activities have also commenced for the volume of gas equivalent to the gross 1P Reserves of 90bcf.
8In conjunction with the marketing effort, a field development plan has been prepared for the initial gross 20bcf that is anticipated to be established and produced through a 5mmscfd gas treatment plant located near the Cambay-77H site.
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8The workover campaign is targeting both oil and gas production which will make a contribution to generating operating cash flow to assist in the Indian operations becoming cash flow positive.
8The contracting and procurement process for the 2015-16 drilling campaign is also nearing completion.
8The technical and commercial evaluations of 13 out of the 14 major tenders are finished and final evaluation and approval processes are in progress.
8Gas marketing activities have also commenced for the volume of gas equivalent to the gross 1P Reserves of 90bcf.
8In conjunction with the marketing effort, a field development plan has been prepared for the initial gross 20bcf that is anticipated to be established and produced through a 5mmscfd gas treatment plant located near the Cambay-77H site.
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Having successfully raised $ 30 million in funds, Oilex, the operator of the Cambay onland block, is now focusing on creating value through increasing production and cashflow in India while also striving to bring down costs and develop additional hydrocarbon production from legacy wells at Cambay.
8The Cambay-73 well continues to produce gas for the low pressure market in the immediate vicinity of the field at 26 boepd with 100% availability.
8A temporary pipeline from a new well Cambay-77H site to Cambay-73 production facility has been completed as part of a gas gathering system to assist in meeting market demand.
8Three legacy wells have been connected to this pipeline and provide additional gas to the low pressure market via the Cambay-73 production facility.
8In addition, subsequent to the installation of a production tree and production tubing, Cambay-77H will be connected to the temporary pipeline to service the low pressure market via Cambay-73, without having to construct a dedicated low pressure production facility at the Cambay-77H site.
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8The Cambay-73 well continues to produce gas for the low pressure market in the immediate vicinity of the field at 26 boepd with 100% availability.
8A temporary pipeline from a new well Cambay-77H site to Cambay-73 production facility has been completed as part of a gas gathering system to assist in meeting market demand.
8Three legacy wells have been connected to this pipeline and provide additional gas to the low pressure market via the Cambay-73 production facility.
8In addition, subsequent to the installation of a production tree and production tubing, Cambay-77H will be connected to the temporary pipeline to service the low pressure market via Cambay-73, without having to construct a dedicated low pressure production facility at the Cambay-77H site.
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Continued growth in global production of petroleum and other liquids has outpaced consumption growth since August 2014, resulting in rising global liquids stocks.
8Total global liquids inventories are estimated to have grown by 2.3 million barrels per day (b/d) through the first seven months of 2015, the highest level of inventory builds through July of any year since 1998.
8These strong inventory builds have put significant downward pressure on near-term crude oil prices:.
8North Sea Brent crude oil spot prices have averaged $58/barrel through July of this year compared to $109/b over the same period in 2014, responding to growth in global inventories.
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8Total global liquids inventories are estimated to have grown by 2.3 million barrels per day (b/d) through the first seven months of 2015, the highest level of inventory builds through July of any year since 1998.
8These strong inventory builds have put significant downward pressure on near-term crude oil prices:.
8North Sea Brent crude oil spot prices have averaged $58/barrel through July of this year compared to $109/b over the same period in 2014, responding to growth in global inventories.
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Clearly the changes in the global market is not going well for H.K. Mittall
8There is no doubt that his fleet of ships, from tankers to dry cargo carriers and dredgers are all good assets. Global trade is likely to grow and his fleet will never run out of cargoes to ferry.
8But the challenge is to be able to cope with the present. With a Rs 499 crore hit on the Singapore based subsidiary Mercator Lines, that has a fleet that ferries dry cargoes, clearly the problem is imported from outside. The fall in spot and contract rates and unscheduled repairs created trouble for the subsidiary.
8That kind of a loss is difficult to take for a company the size of Mecator. It has now appointed an independent financial advisor to assist in the restructuring its financial affairs.
8What this will imply for the group is not yet know and everything really depends on how much of assets Mittal can hold on to under the circumstances.
8In the long run his fleet would have got him profits but will be able to hang on to it while the markets crash all around him?
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8There is no doubt that his fleet of ships, from tankers to dry cargo carriers and dredgers are all good assets. Global trade is likely to grow and his fleet will never run out of cargoes to ferry.
8But the challenge is to be able to cope with the present. With a Rs 499 crore hit on the Singapore based subsidiary Mercator Lines, that has a fleet that ferries dry cargoes, clearly the problem is imported from outside. The fall in spot and contract rates and unscheduled repairs created trouble for the subsidiary.
8That kind of a loss is difficult to take for a company the size of Mecator. It has now appointed an independent financial advisor to assist in the restructuring its financial affairs.
8What this will imply for the group is not yet know and everything really depends on how much of assets Mittal can hold on to under the circumstances.
8In the long run his fleet would have got him profits but will be able to hang on to it while the markets crash all around him?
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ONGC plans to drill a total of 10 exploratory wells in Sivasagar district of Assam at a cost of Rs 456 crore.
8The envisaged in-place hydrocarbon accretion from the ten exploratory well locations --dubbed as RSAL, RSAM, RSAN, GKBU, GKBV, MAKE, MKAF, LKBC, KGAE and LKBD-- is about 19.37 MMT.
8The drilling locations include Rudrasagar, Geleki, Lakwa, Namti and Mekeypore-Santak-Nazira PML areas in Sivasagar.
8ONGC owned electrical type E-2000 series, or EV-series rigs (BHEL Rig), which have a capacity to drill to the depth of 6000m is likely to be deployed for undertaking drilling in the block.
8The rigs will be provided with a solids handling system comprising of shale shakers (1200 GPM), desanders (1200 GPM) and de-silters (1200 GPM) and degassers with vacuum pumps.
8Drilling will continue for about 6-7 months for each well in the block.
8The power requirement of each drilling rig will be met by using the four diesel generator sets with a diesel consumption of about 4.8 Kl/day.
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8The envisaged in-place hydrocarbon accretion from the ten exploratory well locations --dubbed as RSAL, RSAM, RSAN, GKBU, GKBV, MAKE, MKAF, LKBC, KGAE and LKBD-- is about 19.37 MMT.
8The drilling locations include Rudrasagar, Geleki, Lakwa, Namti and Mekeypore-Santak-Nazira PML areas in Sivasagar.
8ONGC owned electrical type E-2000 series, or EV-series rigs (BHEL Rig), which have a capacity to drill to the depth of 6000m is likely to be deployed for undertaking drilling in the block.
8The rigs will be provided with a solids handling system comprising of shale shakers (1200 GPM), desanders (1200 GPM) and de-silters (1200 GPM) and degassers with vacuum pumps.
8Drilling will continue for about 6-7 months for each well in the block.
8The power requirement of each drilling rig will be met by using the four diesel generator sets with a diesel consumption of about 4.8 Kl/day.
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The gas major has come up with ten locations after undertaking thorough studies at the basin. The following are the details:
8RSAL: The location is mapped as a fault closure at the Lower clay marker (LCM) and the Tipam sands (TS-5) levels. The geophysical and geological studies suggests the presence of hydrocarbons in Tipam formations. The location is to be drilled to a depth of 2950 m and is techno-economically viable. A total of Rs.34.20 crore will be invested for drilling one well at this location.
8GKBU: The location falls in a horst block at Tura-Basement levels of the main Geleki field. The studies carried out suggest possible presence of hydrocarbons in the Tura formation (Upper Tura and Lower Tura) and also in the basement. The location is to be drilled to a depth of 5010m and will carry an investment of Rs 40 crore.
8GKBV: The fault in this location is a bounded structural closure in the north east of the already existing field of Namti-2 in the Namti ML.The studies indicated presence of hydrocarbons in Tipam Formations (TS-4 & TS-5 pays). A well will be drilled to a depth of 3400m at a cost of Rs 60 crore.
8RSAM: This is mapped as a fault closure at the Barail group (BMS and BCS) levels. The studies suggest presence of the hydrocarbons in the Tipam Formations (TS-4 & TS-5 pays) and the Barail Group. The location is to be drilled to a depth of 3350 m (Measured depth).
8MKAF: This location is a fault bounded structural closure at LCM, falling in the western part of the Mekeypore Santak Nazira ML Part-B. The well will be drilled to a depth of 3400 m and the price tag is going to be Rs. 61.00 crore investment.
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8RSAL: The location is mapped as a fault closure at the Lower clay marker (LCM) and the Tipam sands (TS-5) levels. The geophysical and geological studies suggests the presence of hydrocarbons in Tipam formations. The location is to be drilled to a depth of 2950 m and is techno-economically viable. A total of Rs.34.20 crore will be invested for drilling one well at this location.
8GKBU: The location falls in a horst block at Tura-Basement levels of the main Geleki field. The studies carried out suggest possible presence of hydrocarbons in the Tura formation (Upper Tura and Lower Tura) and also in the basement. The location is to be drilled to a depth of 5010m and will carry an investment of Rs 40 crore.
8GKBV: The fault in this location is a bounded structural closure in the north east of the already existing field of Namti-2 in the Namti ML.The studies indicated presence of hydrocarbons in Tipam Formations (TS-4 & TS-5 pays). A well will be drilled to a depth of 3400m at a cost of Rs 60 crore.
8RSAM: This is mapped as a fault closure at the Barail group (BMS and BCS) levels. The studies suggest presence of the hydrocarbons in the Tipam Formations (TS-4 & TS-5 pays) and the Barail Group. The location is to be drilled to a depth of 3350 m (Measured depth).
8MKAF: This location is a fault bounded structural closure at LCM, falling in the western part of the Mekeypore Santak Nazira ML Part-B. The well will be drilled to a depth of 3400 m and the price tag is going to be Rs. 61.00 crore investment.
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The following are the details of some more drilling sites:
8MKAE: A fault bounded structural closure at LCM, falling in the eastern part of Mekeypore Santak Nazira ML Part-B. Drilling will be done with a depth of 3200 m at a cost of Rs 60 crore.
8LKBC: This location is on the up-thrown side of the EW trending a major normal fault and lies between the main Lakwa and Lakhmani fields. The idea is to primarily look for TS-4 sand. Depth and cost of drilling a well will be 3050 m and Rs 41 crore respectively.
8KGAE: The location is proposed in a fault bounded structural closure at the Tura and Sylhet levels falling south west of Lakhmani field. Drilling depth is going to be 4875 m, cost pegged at 41 crore.
8LKBD: This happens to be in the crestal part of a horst block at the Tura and Sylhet levels falling south west of Lakwa field. The Tura Formation will be tapped. A total of Rs 39 crore will be spent for the drilling operation and the depth of well will be around 4900 m.
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8MKAE: A fault bounded structural closure at LCM, falling in the eastern part of Mekeypore Santak Nazira ML Part-B. Drilling will be done with a depth of 3200 m at a cost of Rs 60 crore.
8LKBC: This location is on the up-thrown side of the EW trending a major normal fault and lies between the main Lakwa and Lakhmani fields. The idea is to primarily look for TS-4 sand. Depth and cost of drilling a well will be 3050 m and Rs 41 crore respectively.
8KGAE: The location is proposed in a fault bounded structural closure at the Tura and Sylhet levels falling south west of Lakhmani field. Drilling depth is going to be 4875 m, cost pegged at 41 crore.
8LKBD: This happens to be in the crestal part of a horst block at the Tura and Sylhet levels falling south west of Lakwa field. The Tura Formation will be tapped. A total of Rs 39 crore will be spent for the drilling operation and the depth of well will be around 4900 m.
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At present, ONGC operates in a total 1019 sq.km area of Sivasagar district, covered by 24 different petroleum mining lease (PML) areas.
8Oil exploration and production started in the 1960s with first oil discovery in Rudrasagar field.
8Subsequently other major fields like Lakwa-Lakhmani, Geleki, were discovered and put into production.
8Later, a number of smaller but important fields like Charali, Changmaigaon, Demulgaon, Laiplingaon, Mekeypore-Santak-Nazira, Panidihing, Disangmukh and Banamali fields came into the picture.
8Commercial hydrocarbons are mostly found in sandstone or limestone reservoirs of the Tipam, Barail Group and Pre-Barail (Kopili, Sylhet and Tura 8Formations) formations, ranging in depths from 2000m to 4800m.
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8Oil exploration and production started in the 1960s with first oil discovery in Rudrasagar field.
8Subsequently other major fields like Lakwa-Lakhmani, Geleki, were discovered and put into production.
8Later, a number of smaller but important fields like Charali, Changmaigaon, Demulgaon, Laiplingaon, Mekeypore-Santak-Nazira, Panidihing, Disangmukh and Banamali fields came into the picture.
8Commercial hydrocarbons are mostly found in sandstone or limestone reservoirs of the Tipam, Barail Group and Pre-Barail (Kopili, Sylhet and Tura 8Formations) formations, ranging in depths from 2000m to 4800m.
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A well known US analyst is now predicting a doomsday scenario wherein the price of crude may infact fall to $20 per bbl unless the OPEC reins in its production.
8The analyst claims that it was a monumental blunder on the part of OPEC to continue to push high levels of output into the market in order to get the American shale gas producers out of business.
8According to him, OPEC needed to shed about 5% market share to be able to maintain a oil price of $100/bbl.
8It seems that OPEC may have made a colossal error that threatens to de-stabilise their member countries.
8The prediction by him is that the WTI will flirt with $20 while Brent may go below $30.
8At that point the global oil industry will be on its knees, including OPEC, the OECD and Russia.
8Russia may then either join or form an alliance with OPEC and we then see production cuts, incrementally up to 4 Mbpd and the price rise back towards that magic $100 / bbl number.
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8The analyst claims that it was a monumental blunder on the part of OPEC to continue to push high levels of output into the market in order to get the American shale gas producers out of business.
8According to him, OPEC needed to shed about 5% market share to be able to maintain a oil price of $100/bbl.
8It seems that OPEC may have made a colossal error that threatens to de-stabilise their member countries.
8The prediction by him is that the WTI will flirt with $20 while Brent may go below $30.
8At that point the global oil industry will be on its knees, including OPEC, the OECD and Russia.
8Russia may then either join or form an alliance with OPEC and we then see production cuts, incrementally up to 4 Mbpd and the price rise back towards that magic $100 / bbl number.
Click on the Reports for more. Details
A well known US analyst is now predicting a doomsday scenario wherein the price of crude may infact fall to $20 per bbl unless the OPEC reins in its production.
8The analyst claims that it was a monumental blunder on the part of OPEC to continue to push high levels of output into the market in order to get the American shale gas producers out of business.
8According to him, OPEC needed to shed about 5% market share to be able to maintain a oil price of $100/bbl.
8It seems that OPEC may have made a colossal error that threatens to de-stabilise their member countries.
8The prediction by him is that the WTI will flirt with $20 while Brent may go below $30.
8At that point the global oil industry will be on its knees, including OPEC, the OECD and Russia.
8Russia may then either join or form an alliance with OPEC and we then see production cuts, incrementally up to 4 Mbpd and the price rise back towards that magic $100 / bbl number.
Click on the Reports for more. Details
8The analyst claims that it was a monumental blunder on the part of OPEC to continue to push high levels of output into the market in order to get the American shale gas producers out of business.
8According to him, OPEC needed to shed about 5% market share to be able to maintain a oil price of $100/bbl.
8It seems that OPEC may have made a colossal error that threatens to de-stabilise their member countries.
8The prediction by him is that the WTI will flirt with $20 while Brent may go below $30.
8At that point the global oil industry will be on its knees, including OPEC, the OECD and Russia.
8Russia may then either join or form an alliance with OPEC and we then see production cuts, incrementally up to 4 Mbpd and the price rise back towards that magic $100 / bbl number.
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IOC had embarked on an upgradation and automation of its LPG bottling plants across the country.
The company plans to place orders for as many as 24 electronic filling and testing systems in the bottling plants at Bokaro,Jaipur,Aligarh ,Lakhimpur,Budge Budge,Balasore and Chakan
Each of these units will now have one fully automated and integrated carousel.
8The minimum handling capacity of a carousel will be 1600 cylinders per hour for 14.2 kg cylinders and 1200 cylinders for 19.0 kg net cylinders.
8Each integrated system will consist of an:
-- Electronic filling carousel
-- Automatic weight correction unit integrated with the carousel to rectify overfilled or under filled cylinders in a separate loop.
-- Automatic electronic leak detector with the capacity to separating rejected cylinders in separate loops.
-- Sensors and electro-pneumatic control systems
8The accuracy details of filling and testing system will as follows:
-- Minimum 97% of the cylinders filled willl have filling accuracy within the range of ±100gm. Overfilled (>+150 gms) and under filled (>-150gms) cylinders will not exceed 2% of the gross filling.
--The minimum percentage of exact weight filled cylinders should be 60% with a resolution of +/- 50g.
--Cylinders with valve and bung leaks above 0.5 gm/ hr will be detected and rejected in separate loops.
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The company plans to place orders for as many as 24 electronic filling and testing systems in the bottling plants at Bokaro,Jaipur,Aligarh ,Lakhimpur,Budge Budge,Balasore and Chakan
Each of these units will now have one fully automated and integrated carousel.
8The minimum handling capacity of a carousel will be 1600 cylinders per hour for 14.2 kg cylinders and 1200 cylinders for 19.0 kg net cylinders.
8Each integrated system will consist of an:
-- Electronic filling carousel
-- Automatic weight correction unit integrated with the carousel to rectify overfilled or under filled cylinders in a separate loop.
-- Automatic electronic leak detector with the capacity to separating rejected cylinders in separate loops.
-- Sensors and electro-pneumatic control systems
8The accuracy details of filling and testing system will as follows:
-- Minimum 97% of the cylinders filled willl have filling accuracy within the range of ±100gm. Overfilled (>+150 gms) and under filled (>-150gms) cylinders will not exceed 2% of the gross filling.
--The minimum percentage of exact weight filled cylinders should be 60% with a resolution of +/- 50g.
--Cylinders with valve and bung leaks above 0.5 gm/ hr will be detected and rejected in separate loops.
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Petroleum minister Dharmendra Pradhan has signed an MoU on an India-Nepal petroleum products pipeline from Raxul to Amlekhgunj with his Nepalese counterpart Sunil Bahadur Thapa in Katmandu. .
8IOC and the Nepal Oil Corporation have been entrusted with project implementation.
8The project will have two components:
--construction of 41-km Amlekhganj- Raxaul petroleum pipeline
-- re-engineering the Amlekhganj Depot.
8The 41 km pipeline (2 km in India and 39 km in Nepal) which will initially supply Petrol, Diesel and Kerosene and will be built by IOC at a cost of Rs. 200 crore. Nepal Oil Corporation will invest Rs 75 crore to develop additional
facilities in the Amlekhgunj depot.
8India exports about US$ 1.1 billion worth of petroleum products per annum to Nepal. Bulk of this volume will be transported through this pipeline.
8This would be the first transnational petroleum pipeline in South Asia and will also ensure smooth, cost effective and environment friendly supply of petroleum products to Nepal.
8Nepal can save Rs 50 crore per year on transportation cost and losses due to leakages. Details
8IOC and the Nepal Oil Corporation have been entrusted with project implementation.
8The project will have two components:
--construction of 41-km Amlekhganj- Raxaul petroleum pipeline
-- re-engineering the Amlekhganj Depot.
8The 41 km pipeline (2 km in India and 39 km in Nepal) which will initially supply Petrol, Diesel and Kerosene and will be built by IOC at a cost of Rs. 200 crore. Nepal Oil Corporation will invest Rs 75 crore to develop additional
facilities in the Amlekhgunj depot.
8India exports about US$ 1.1 billion worth of petroleum products per annum to Nepal. Bulk of this volume will be transported through this pipeline.
8This would be the first transnational petroleum pipeline in South Asia and will also ensure smooth, cost effective and environment friendly supply of petroleum products to Nepal.
8Nepal can save Rs 50 crore per year on transportation cost and losses due to leakages. Details
IOC's Barauni refinery plans to install a Tata Honeywell make Distributed Control System in its Coker and Liquid Recovery unit as part of the refinery upgradation scheme.
8The DCS upgradation will consist of following steps:
-- Taking back-up of complete data base prior to up gradation.
-- Migration of approximately 150 US Graphics to HTML based HMI Graphics.
-- US to EST Up gradation, configuration and commissioning of three operator stations and one engineering station of the DCS
-- Upgradation of three existing redundant APM controllers to a redundant HPM controller with all accessories
-- Engineering of new HPM I/O processor cards and HPM I/O racks
-- Migration of the existing APM logic to new HPM logic.
-- Supervision of loop checking if required.
-- Installation of new EST machines in the existing US console.
-- Shifting of existing NIM from console panel to new system cabinet.
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8The DCS upgradation will consist of following steps:
-- Taking back-up of complete data base prior to up gradation.
-- Migration of approximately 150 US Graphics to HTML based HMI Graphics.
-- US to EST Up gradation, configuration and commissioning of three operator stations and one engineering station of the DCS
-- Upgradation of three existing redundant APM controllers to a redundant HPM controller with all accessories
-- Engineering of new HPM I/O processor cards and HPM I/O racks
-- Migration of the existing APM logic to new HPM logic.
-- Supervision of loop checking if required.
-- Installation of new EST machines in the existing US console.
-- Shifting of existing NIM from console panel to new system cabinet.
Click on Reports for more Details
The only silver lining seems to be Mercator's Indian business.
8His fleet of dredgers are always going to be at work de-silting Indian ports. The company had been acquiring more dredgers and the total fleet strength now stands at nine. During the past year contracts have been garnered from the Kandla Port Trust valued at about Rs 275 crore amongst other contracts.
8And while his tankers may suffer on account of the turmoil in the markets they will possibly scrape through unless the crisis in its Singapore crisis has an impact.
8There is now news that his onland block CB-ONN-2005/9 has recorded yet another hydrocarbon discovery, the second in a row.
8The latest well flowed light oil at 2000 BOPD through a 32/64" choke and up to 5000 BOP through a 64/64" choke.
8The flow rates are supposedly better than observed in the first discovery.
8More exploration is to follow and if more well show up hydrocarbons, the next step will be to delineate the reserves and capitalize on them.
8The company may be able to come up with some estimate of how much reserves are there but that will take sometime to happen.
8So eventually it will be Mittal's desi endeavors and not his global dreams that will bail him out of the corner he seems in at this point in time.
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8His fleet of dredgers are always going to be at work de-silting Indian ports. The company had been acquiring more dredgers and the total fleet strength now stands at nine. During the past year contracts have been garnered from the Kandla Port Trust valued at about Rs 275 crore amongst other contracts.
8And while his tankers may suffer on account of the turmoil in the markets they will possibly scrape through unless the crisis in its Singapore crisis has an impact.
8There is now news that his onland block CB-ONN-2005/9 has recorded yet another hydrocarbon discovery, the second in a row.
8The latest well flowed light oil at 2000 BOPD through a 32/64" choke and up to 5000 BOP through a 64/64" choke.
8The flow rates are supposedly better than observed in the first discovery.
8More exploration is to follow and if more well show up hydrocarbons, the next step will be to delineate the reserves and capitalize on them.
8The company may be able to come up with some estimate of how much reserves are there but that will take sometime to happen.
8So eventually it will be Mittal's desi endeavors and not his global dreams that will bail him out of the corner he seems in at this point in time.
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H.K. Mittal had taken on the EPC contract along with Gulf Piping to convert ONGC's drill ship the Sagar Samrat into a Mobile Offshore Processing Unit. The price tag is $200 million.
8There project has been bogged down with cost escalations and time overruns so much so that the ONGC Board had at one point criticised the company's brass for agreeing to the conversion when buying a new MOPU could have made more sense.
8The cost had shot up as the legs of the rig had to be replaced, the requirement for steel turned out to be significantly more than anticipated and the number of mandatory surveys went up.
8Given the delay and the cost overrun in the project, fingers have been raised by many on the cost escalation.
8The project was originally scheduled for completion by May, 2013, but because of delays, the deadline had to be revised several times.
8The MOPU is expected to have been commissioned in March 31, 2015, that is, after a delay of around two years but that has not happened yet.
8Clearly, this is yet another contract that is not going well for Mittal. Details
8There project has been bogged down with cost escalations and time overruns so much so that the ONGC Board had at one point criticised the company's brass for agreeing to the conversion when buying a new MOPU could have made more sense.
8The cost had shot up as the legs of the rig had to be replaced, the requirement for steel turned out to be significantly more than anticipated and the number of mandatory surveys went up.
8Given the delay and the cost overrun in the project, fingers have been raised by many on the cost escalation.
8The project was originally scheduled for completion by May, 2013, but because of delays, the deadline had to be revised several times.
8The MOPU is expected to have been commissioned in March 31, 2015, that is, after a delay of around two years but that has not happened yet.
8Clearly, this is yet another contract that is not going well for Mittal. Details
The problem with small companies trying to imitate their big brothers in the energy business is that while they have the ambition, they don't have the wherewithal to back it up.
8A classical example of this is Mecator Ltd. The company chairman H.K. Mittal declared in his AGM last week that after his company entered into a PSC for two offshore blocks in Myanmar it today stands "amongst International offshore Oil and Gas block holders along with majors such as Royal Dutch Shell, Chevron, Statoil, BG and Reliance Industries".
8Mecator's balance sheet however does not seem to validate this claim. On a consolidated turnover of Rs 3091 crore in 2014-15, it made a net loss of a whopping Rs 449 crore after its Singapore based shipping subsidiary ran into trouble after freight rates crashed and key long term contracts had to be cancelled.
8The financials only look better when Mecator is taken as a standalone outfit. Sales were at a modest Rs 659 crore and net profits at Rs 49.55 crore. in 2014-15.
8Mittal obviously was trying to do too much at the same time.
8The company has interests in shipping and that includes owning a VLCC, coal mines, coal logistics, oil & gas acreages in India and Myanmar, dredging and large EPC contracts.
8However unlike the likes of RIL, BG or Shell, Mittal does not have the muscle power to take on the turmoil that the energy sector is at present. The dry bulk rates have become adverse in a roiling market and the company ran into losses in this segment.
8Some of the company's portfolios are good like the dredging and the tanker fleet but its other assets, like its Floating Production Unit under lease currently, are exposed to the turmoil that is currently on in the global E&P industry.
8When cash calls come in from its offshore Mynamar block, Mittal's balance sheet will be under pressure.
8It is good to have ambition but Mittal may have put his eggs in too many baskets.
8For now he needs to get out of some segments as fast as he can. Try as must, he is not in the big league yet by any stretch of imagination.
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8A classical example of this is Mecator Ltd. The company chairman H.K. Mittal declared in his AGM last week that after his company entered into a PSC for two offshore blocks in Myanmar it today stands "amongst International offshore Oil and Gas block holders along with majors such as Royal Dutch Shell, Chevron, Statoil, BG and Reliance Industries".
8Mecator's balance sheet however does not seem to validate this claim. On a consolidated turnover of Rs 3091 crore in 2014-15, it made a net loss of a whopping Rs 449 crore after its Singapore based shipping subsidiary ran into trouble after freight rates crashed and key long term contracts had to be cancelled.
8The financials only look better when Mecator is taken as a standalone outfit. Sales were at a modest Rs 659 crore and net profits at Rs 49.55 crore. in 2014-15.
8Mittal obviously was trying to do too much at the same time.
8The company has interests in shipping and that includes owning a VLCC, coal mines, coal logistics, oil & gas acreages in India and Myanmar, dredging and large EPC contracts.
8However unlike the likes of RIL, BG or Shell, Mittal does not have the muscle power to take on the turmoil that the energy sector is at present. The dry bulk rates have become adverse in a roiling market and the company ran into losses in this segment.
8Some of the company's portfolios are good like the dredging and the tanker fleet but its other assets, like its Floating Production Unit under lease currently, are exposed to the turmoil that is currently on in the global E&P industry.
8When cash calls come in from its offshore Mynamar block, Mittal's balance sheet will be under pressure.
8It is good to have ambition but Mittal may have put his eggs in too many baskets.
8For now he needs to get out of some segments as fast as he can. Try as must, he is not in the big league yet by any stretch of imagination.
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During the month of July 2015, refinery capacity utilization exceeded the target by102.48 % which was higher than what was achieved in the corresponding month of 2014 at 99.32%.
8The actual crude throughput for the month stood at 18668.458 TMT as against the total prorated installed capacity of 18678.495 TMT.
8Cumulatively too, capacity utilization at Indian refineries during April-July 2015, exceeded planned utilization with actual crude throughput standing at 74945.890 TMT as against the prorated installed capacity of 71689.000 TMT.
8The public sector maintained a prorated installed capacity of 10170.000 TMT during July, while the actual crude throughput came to 10053.747TMT. Cumulatively, capacity utilization for April-July stood with actual crude throughput at 40642.152 TMT and prorated installed capacity at 40022.000 TMT.
8The private sector crude throughput was at 7061.516 TMT while its prorated installed capacity stood at 6776.000 TMT. Cumulatively, capacity utilization for April-July stood at 108.22% with the actual crude throughput at 5444.971 TMT and prorated installed capacity at 5000.000 TMT.
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8The actual crude throughput for the month stood at 18668.458 TMT as against the total prorated installed capacity of 18678.495 TMT.
8Cumulatively too, capacity utilization at Indian refineries during April-July 2015, exceeded planned utilization with actual crude throughput standing at 74945.890 TMT as against the prorated installed capacity of 71689.000 TMT.
8The public sector maintained a prorated installed capacity of 10170.000 TMT during July, while the actual crude throughput came to 10053.747TMT. Cumulatively, capacity utilization for April-July stood with actual crude throughput at 40642.152 TMT and prorated installed capacity at 40022.000 TMT.
8The private sector crude throughput was at 7061.516 TMT while its prorated installed capacity stood at 6776.000 TMT. Cumulatively, capacity utilization for April-July stood at 108.22% with the actual crude throughput at 5444.971 TMT and prorated installed capacity at 5000.000 TMT.
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Indian refineries registered a crude throughput of 18668.458 TMT during the month, which is 0.05% lower than the target of 18678 TMT. Cumulatively, in April-July, these refineries processed 74946 TMT of crude, which is 2.05% higher than the target of 73438 TMT.
8Despite the overall rise in crude throughput, IOC's Haldia , IOC's Gujrat, IOC's Baruni, RIL's Jamnagar and Essar ,RIL SEZ performed at less than expected levels.
8In IOC's Guwahati refinery, the crude throughput was on account of restrictions in the crude transport line. In Panipat refinery, throughput was restricted due to a planded OHCU shutdown. .
8The website also carries a review of refinery production (in terms of crude throughput) for the month of July 2015 as well as for the April-July 2015 period. Data on the corresponding periods in the previous fiscal (2014-15) is also carried here to aid comparison.
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8Despite the overall rise in crude throughput, IOC's Haldia , IOC's Gujrat, IOC's Baruni, RIL's Jamnagar and Essar ,RIL SEZ performed at less than expected levels.
8In IOC's Guwahati refinery, the crude throughput was on account of restrictions in the crude transport line. In Panipat refinery, throughput was restricted due to a planded OHCU shutdown. .
8The website also carries a review of refinery production (in terms of crude throughput) for the month of July 2015 as well as for the April-July 2015 period. Data on the corresponding periods in the previous fiscal (2014-15) is also carried here to aid comparison.
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Natural gas production across the industry during July 2015 stood at 2620 MMSCM , representing a 13.O9% shortfall over the planned monthly target of 3015 MMSCM.
8The production during the month was 4.38% less than the figure of 2740 MMSCM in July last year. The cumulative production during April-July 2015 was 10864 MMSCM, which fell short of the the target by 4.88%.
8During the month, ONGC`s gas production stood at 1686.209 MMSCM, which was below the monthly target of 2035 MMSCM. The company registered a shortfall in its Rajasthan (83.55%), Assam (12.96%), Tripura (9.03%) , Andhra (4.14%) and Tamil Nadu (10.47%) fields while its Gujarat offshore fields outperformed their respective targets by 8.93% . The production was down on account of Taptika Lanco pipeline incident, Production affected due to M/s GAIL's consumer shutdown in Tamil nadu and less off take by consumers in Rajsthan and Tripura.
8OIL's gas production was behind its target by 10.06% at 232.585 MMSCM during the month as against the planned 259 MMSCM. A lower than planned production in Arunachal Pradesh and Assam fields led to a lower production level. The reason of shortfall was less drawl by the Namrup fertilizer plant due to a shutdown and less drawal from a local thermal station due to the maintenance issues.
8Private/JV firms also registered a shortfall by 2.79%, with total production from these companies coming to 702 MMSCM as against 722 MMSCM target set for July 2015. Production was affected due to under performance of wells of KGD6, less than expected gas from trail production from 3 wells in KG OSN-2001/3 block and lower incidental CBM gas being produced and sold in Jharkhand.
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8The production during the month was 4.38% less than the figure of 2740 MMSCM in July last year. The cumulative production during April-July 2015 was 10864 MMSCM, which fell short of the the target by 4.88%.
8During the month, ONGC`s gas production stood at 1686.209 MMSCM, which was below the monthly target of 2035 MMSCM. The company registered a shortfall in its Rajasthan (83.55%), Assam (12.96%), Tripura (9.03%) , Andhra (4.14%) and Tamil Nadu (10.47%) fields while its Gujarat offshore fields outperformed their respective targets by 8.93% . The production was down on account of Taptika Lanco pipeline incident, Production affected due to M/s GAIL's consumer shutdown in Tamil nadu and less off take by consumers in Rajsthan and Tripura.
8OIL's gas production was behind its target by 10.06% at 232.585 MMSCM during the month as against the planned 259 MMSCM. A lower than planned production in Arunachal Pradesh and Assam fields led to a lower production level. The reason of shortfall was less drawl by the Namrup fertilizer plant due to a shutdown and less drawal from a local thermal station due to the maintenance issues.
8Private/JV firms also registered a shortfall by 2.79%, with total production from these companies coming to 702 MMSCM as against 722 MMSCM target set for July 2015. Production was affected due to under performance of wells of KGD6, less than expected gas from trail production from 3 wells in KG OSN-2001/3 block and lower incidental CBM gas being produced and sold in Jharkhand.
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Crude oil production stood flat in July 2015 at 3134 TMT, representing a marginal 0.66% shortfall from the planned monthly target of 3155 TMT. The production during the month was 0.39% less than the figure of 3147 TMT in July last year.
8The cumulative production during April-July 2015 was 12445 TMT, which was higher than the target by 1.85%. The targeted production for the cumulative period was 12220 TMT. Comparative production during the period reveals a 0.70% shortfall over the 12533 TMT produced in the corresponding period of the last fiscal (2014-15).
8ONGC`s total crude oil production was lower by 3.24% than its monthly target aggregating to 1881 TMT, as against the planned 1944 TMT due to the closure of a few high GOR wells and less than planned production from Mumbai High. . The cumulative production for the April-July period was also less than its target with the company producing 7455 TMT of crude as against the targeted 7496 TMT.
8Oil India Limited (OIL) produced 275 TMT of crude during the month, which is behind its planned production (300 TMT) by 8.7%. During April-July, the company produced 1112 TMT, which was behind its target of 1167 TMT. Production was affected because of loss incurred due to bandhs, as well as high water cut and sand ingression problems and less than expected increase in wellhead potential from drilling operations.
8Private/JV companies' production was higher by 7.36% in July 2015, at 978.TMT as against the targeted 911 TMT. Production over the April-July period stood at 3878 TMT as against the target of 3557 TMT. Output had been higher still but for the underperformance of the MA wells in the D-6 block and a few onland wells due to sand ingress in existing producers.
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8The cumulative production during April-July 2015 was 12445 TMT, which was higher than the target by 1.85%. The targeted production for the cumulative period was 12220 TMT. Comparative production during the period reveals a 0.70% shortfall over the 12533 TMT produced in the corresponding period of the last fiscal (2014-15).
8ONGC`s total crude oil production was lower by 3.24% than its monthly target aggregating to 1881 TMT, as against the planned 1944 TMT due to the closure of a few high GOR wells and less than planned production from Mumbai High. . The cumulative production for the April-July period was also less than its target with the company producing 7455 TMT of crude as against the targeted 7496 TMT.
8Oil India Limited (OIL) produced 275 TMT of crude during the month, which is behind its planned production (300 TMT) by 8.7%. During April-July, the company produced 1112 TMT, which was behind its target of 1167 TMT. Production was affected because of loss incurred due to bandhs, as well as high water cut and sand ingression problems and less than expected increase in wellhead potential from drilling operations.
8Private/JV companies' production was higher by 7.36% in July 2015, at 978.TMT as against the targeted 911 TMT. Production over the April-July period stood at 3878 TMT as against the target of 3557 TMT. Output had been higher still but for the underperformance of the MA wells in the D-6 block and a few onland wells due to sand ingress in existing producers.
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RIL has been able to hammer out a 25% discount on the hiring of the Transocean deepwater rig dubbed Dhirubhai Deepwater KG2 for a two month contract beginning August, 2015.
8The day rate had been cut from the earlier $395,000 to $295,000.
8The drop in the rig rate has happened on account of lack of demand as a consequence of the cut in expenditure by operators in deepwater operations on account of the sharp fall in crude price over the last one year.
8The dynamically positioned rig had entered service in 2010 capable of working at a water depth of 12,000 feet and a drilling depth of 35,000 feet.
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8The day rate had been cut from the earlier $395,000 to $295,000.
8The drop in the rig rate has happened on account of lack of demand as a consequence of the cut in expenditure by operators in deepwater operations on account of the sharp fall in crude price over the last one year.
8The dynamically positioned rig had entered service in 2010 capable of working at a water depth of 12,000 feet and a drilling depth of 35,000 feet.
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HPCL has undertaken several energy conservation measures that have resulted in savings of almost 12,000 standard refinery fuel tonnage in 2014-15.
Among the measures taken were:
Mumbai Refinery:
8During T&I, the company undertook the modification in the existing furnace by installation of additional banks in convection section along with regular maintenance, resulting in significant improvement in furnace efficiencies and thus savings in fuel consumption.
8Two additional exchangers and the simple task of manual cleaning of preheat exchanger resulted in improved Coil Inlet Temperature (CIT) for the CDU I furnace, thereby resulting in substantial fuel savings.
8Modification was carried out on SG10 boiler economizer and superheater section allow achievement of designed steam generation.
8Improvement in furnace efficiency by 10% was achieved by conversion of natural draft furnace to balanced draft furnace of the VDU.
8There was also reduction in potential hydrocarbon loss by using Ultrasonic Leak Detector during periodic safety valves surveys. Similarly replacement of steam traps all over the refinery helped too.
Visakh Refinery:
8Magnetic Resonators installed on GTG-4 in May 2014 and GTG-5 in July 2014, resulting in overall 1% reduction in naphtha consumption.
8Steam leak survey was carried out by a Centre of High Technology team and the leaks were were estimated at 149 kg/hr, which is the lowest ever achieved.
8Nozzle design of the thermo compressor was modified in the FCCU-I condensate recovery system to recover the flash steam from the steam tracing condensate.
8Continuous capacity control was installed on the Recycle Gas Compressor in the NHT to optimize power consumption.
8Online chemical cleaning of CDU’s & DHDS furnaces were carried out, which resulted in reduced stack temperatures and increased heater efficiencies, thereby potential savings in fuel consumption. Details
Among the measures taken were:
Mumbai Refinery:
8During T&I, the company undertook the modification in the existing furnace by installation of additional banks in convection section along with regular maintenance, resulting in significant improvement in furnace efficiencies and thus savings in fuel consumption.
8Two additional exchangers and the simple task of manual cleaning of preheat exchanger resulted in improved Coil Inlet Temperature (CIT) for the CDU I furnace, thereby resulting in substantial fuel savings.
8Modification was carried out on SG10 boiler economizer and superheater section allow achievement of designed steam generation.
8Improvement in furnace efficiency by 10% was achieved by conversion of natural draft furnace to balanced draft furnace of the VDU.
8There was also reduction in potential hydrocarbon loss by using Ultrasonic Leak Detector during periodic safety valves surveys. Similarly replacement of steam traps all over the refinery helped too.
Visakh Refinery:
8Magnetic Resonators installed on GTG-4 in May 2014 and GTG-5 in July 2014, resulting in overall 1% reduction in naphtha consumption.
8Steam leak survey was carried out by a Centre of High Technology team and the leaks were were estimated at 149 kg/hr, which is the lowest ever achieved.
8Nozzle design of the thermo compressor was modified in the FCCU-I condensate recovery system to recover the flash steam from the steam tracing condensate.
8Continuous capacity control was installed on the Recycle Gas Compressor in the NHT to optimize power consumption.
8Online chemical cleaning of CDU’s & DHDS furnaces were carried out, which resulted in reduced stack temperatures and increased heater efficiencies, thereby potential savings in fuel consumption. Details
HPCL also brought in new new technology and adoption new innovated with new measures.
Mumbai refinery:
8New convection rows in the CDU I crude furnace resulted in lowering ex convection temperature by 100 Deg. C.
In CCR unit, on the run replacement of the parts of the catalyst was carried out successfully without shutting down of the unit. This avoided production loss of MS and increased reformate RON by 1.5 units.
8Procured around 60 TMT of low value LSHS from BPCL and processed at NFCCU successfully, converting to high value products like LPG, MS and HSD.
8The company did thermal spray in place of strip lining of SS in the towers.
8For the first time, high CCR (4.2%) VGO was processed in NFFCU. This resulted in additional steam production of 0.11 T/T of VGO, with equivalent saving of fuel consumption in conventional boilers.
Visakh Refinery:
8Diesel Hydro Treater (DHT) Unit along with Hydrogen Unit (HGU) was commissioned, which enabled production of Euro-IV diesel from the refinery. Performance Guarantee test run (PGTR) conducted in March, 2014
8Air Fuel Ratio control system for CDU-III Furnace was commissioned, which enabled controlling excess air and thereby saving in fuel consumption.
8Hi-Gee, a compact facility developed in-house by R&D to treat sour gases using amine solution, was commissioned.
8An Anti-foulant chemical injection facility was commissioned for CDU-I to reduce fouling in crude preheat exchangers.
8Automatic additive loaders (two numbers) were commissioned in FCCU-I and FCCU-II for precision control of additive
8Gamma scanning of Atmospheric & Vacuum Distillation Columns in CDU-I and Stripper Column in Diesel Hydro Desulphurization Unit was carried out by M/s BRIT.
8Dispersant chemical dosing done to reduce DHDS reactor pressure drop and unit operations sustained.
Trials with two new Bottom Cracking Additives were carried out for cutting down the slurry yield in FCCU-I. Details
Mumbai refinery:
8New convection rows in the CDU I crude furnace resulted in lowering ex convection temperature by 100 Deg. C.
In CCR unit, on the run replacement of the parts of the catalyst was carried out successfully without shutting down of the unit. This avoided production loss of MS and increased reformate RON by 1.5 units.
8Procured around 60 TMT of low value LSHS from BPCL and processed at NFCCU successfully, converting to high value products like LPG, MS and HSD.
8The company did thermal spray in place of strip lining of SS in the towers.
8For the first time, high CCR (4.2%) VGO was processed in NFFCU. This resulted in additional steam production of 0.11 T/T of VGO, with equivalent saving of fuel consumption in conventional boilers.
Visakh Refinery:
8Diesel Hydro Treater (DHT) Unit along with Hydrogen Unit (HGU) was commissioned, which enabled production of Euro-IV diesel from the refinery. Performance Guarantee test run (PGTR) conducted in March, 2014
8Air Fuel Ratio control system for CDU-III Furnace was commissioned, which enabled controlling excess air and thereby saving in fuel consumption.
8Hi-Gee, a compact facility developed in-house by R&D to treat sour gases using amine solution, was commissioned.
8An Anti-foulant chemical injection facility was commissioned for CDU-I to reduce fouling in crude preheat exchangers.
8Automatic additive loaders (two numbers) were commissioned in FCCU-I and FCCU-II for precision control of additive
8Gamma scanning of Atmospheric & Vacuum Distillation Columns in CDU-I and Stripper Column in Diesel Hydro Desulphurization Unit was carried out by M/s BRIT.
8Dispersant chemical dosing done to reduce DHDS reactor pressure drop and unit operations sustained.
Trials with two new Bottom Cracking Additives were carried out for cutting down the slurry yield in FCCU-I. Details
For reference purposes the website carries here details of technology imported by HPCL in the last three years.
Details are given in terms of:
8Technology imported
8Year of import
8Whether fully absorbed or not
8If not absorbed reasons for it
One technology that will have a big impact is the DHDS-Isotherming technology. Though the technology was brought in in 2011, the project is under implementation and is just abut to be commissioned.
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Details are given in terms of:
8Technology imported
8Year of import
8Whether fully absorbed or not
8If not absorbed reasons for it
One technology that will have a big impact is the DHDS-Isotherming technology. Though the technology was brought in in 2011, the project is under implementation and is just abut to be commissioned.
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HPCL is today the country's largest lube manufacturer and that's a big achievement given that the Indian market is big, the third largest after the US and China.
8The lube market size is around 2800 TMT, including transformer and white oils.
8In this market, HPCL's share is around 477.9 TM
8Value added lubes volumes were up 16.4% at 253.6 TMT last year.
8HPCL is the largest producer of base oils in the country with capability of producing Group I and Group II / III base oils.
8The company's focus is in retaining its grip on the Original Equipment Manufacturer (OEM) sector.
8HPCL's OEMs including big names such as JCB India, Royal Enfield and Bajaj Auto
8New OEMs clients were roped in recently with companies such as Komatsu, San Engineering and SKF adding to the tally.
8Building the OEM business is not easy and constant interaction are needed with R&D teams of the OEMs so that they eventually get on to the bandwagon. Details
8The lube market size is around 2800 TMT, including transformer and white oils.
8In this market, HPCL's share is around 477.9 TM
8Value added lubes volumes were up 16.4% at 253.6 TMT last year.
8HPCL is the largest producer of base oils in the country with capability of producing Group I and Group II / III base oils.
8The company's focus is in retaining its grip on the Original Equipment Manufacturer (OEM) sector.
8HPCL's OEMs including big names such as JCB India, Royal Enfield and Bajaj Auto
8New OEMs clients were roped in recently with companies such as Komatsu, San Engineering and SKF adding to the tally.
8Building the OEM business is not easy and constant interaction are needed with R&D teams of the OEMs so that they eventually get on to the bandwagon. Details
It remains a moot point whether HPCL should do any more expansion in the Mumbai refinery, crowded as it already.
8Nevertheless, the company is going ahead with its expansion from 6.5 MMTPA to 9.5 MMTPA.
8Progress has been made: public hearing has been successfully completed for the acquired land from Calico adjacent to the refinery.
8In order to comply with the future fuel emission requirements of BS V/VI, HPCL is planning to upgrade and enhance the refining capacity of Visakh refinery from existing 8.3 MMTPA to 15 MMTPA.
8The expansion project includes state of the art processing facilities and Bottom up gradation units for increasing the production of value added products.
8Meanwhile, the newly commissioned Fluidised Catalytic Convertor Unit (dubbed as FCCU–2) of Mumbai Refinery has raised HPCL's capacity to feedstock ranging from very light feed of 0.27wt% Continuous Catalytic Regeneration (CCR) to 4.2wt% CCR because of limited quantity of low sulphur residue available.
8Already, 60 TMT of Low Sulphur Heavy Stock (LSHS) which was low value heavy stream was processed in the FCCU-2 to make value added products such as MS, HSD and LPG. Details
8Nevertheless, the company is going ahead with its expansion from 6.5 MMTPA to 9.5 MMTPA.
8Progress has been made: public hearing has been successfully completed for the acquired land from Calico adjacent to the refinery.
8In order to comply with the future fuel emission requirements of BS V/VI, HPCL is planning to upgrade and enhance the refining capacity of Visakh refinery from existing 8.3 MMTPA to 15 MMTPA.
8The expansion project includes state of the art processing facilities and Bottom up gradation units for increasing the production of value added products.
8Meanwhile, the newly commissioned Fluidised Catalytic Convertor Unit (dubbed as FCCU–2) of Mumbai Refinery has raised HPCL's capacity to feedstock ranging from very light feed of 0.27wt% Continuous Catalytic Regeneration (CCR) to 4.2wt% CCR because of limited quantity of low sulphur residue available.
8Already, 60 TMT of Low Sulphur Heavy Stock (LSHS) which was low value heavy stream was processed in the FCCU-2 to make value added products such as MS, HSD and LPG. Details
It seems like LPG storage is one of the most profitable business to enter into in the Indian oil and gas sector.
8An indication of this is from the financial performance of South Asia LPG Company Pvt Ltd (SALPG), a 50% JV between Total of France and HPCL.
8What SALPG has to its credit is an underground LPG cavern and even though its pricing is controlled by the government, it seems to be making very good money indeed.
8The profit to revenue ratio is phenomenally high. In 2013-14, it made a net profit of an incredible Rs 79.38 crore on revenues of Rs 159 crore. In 2014-15 too, even though profits are lower at Rs 69.51 crore, it still is very high indeed on revenues of Rs 160 crore.
8The paid up share capital of the company is Rs 100 crore and dividend payment is a handsome Rs 5.50 per share of Rs 10.
8When SALPG was came up in Vizag in December 2007, it was the first-of-its-kind underground LPG storage facility of its kind in South and South East Asia and even today ranks as one of the deepest LPG caverns in the world. The cavern helped ease out product movement constraints across the east coast and ensured smooth availability of LPG
in the surrounding zones.
8Given that LPG imports will continue to mount, more such caverns are required in the country. So is going to set up the next one?
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8An indication of this is from the financial performance of South Asia LPG Company Pvt Ltd (SALPG), a 50% JV between Total of France and HPCL.
8What SALPG has to its credit is an underground LPG cavern and even though its pricing is controlled by the government, it seems to be making very good money indeed.
8The profit to revenue ratio is phenomenally high. In 2013-14, it made a net profit of an incredible Rs 79.38 crore on revenues of Rs 159 crore. In 2014-15 too, even though profits are lower at Rs 69.51 crore, it still is very high indeed on revenues of Rs 160 crore.
8The paid up share capital of the company is Rs 100 crore and dividend payment is a handsome Rs 5.50 per share of Rs 10.
8When SALPG was came up in Vizag in December 2007, it was the first-of-its-kind underground LPG storage facility of its kind in South and South East Asia and even today ranks as one of the deepest LPG caverns in the world. The cavern helped ease out product movement constraints across the east coast and ensured smooth availability of LPG
in the surrounding zones.
8Given that LPG imports will continue to mount, more such caverns are required in the country. So is going to set up the next one?
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IOC is planning a revamp of its petroleum product pipelines in Tamil Nadu
8In Chennai, there are eight pipelines (product and lubes) emanating from IOCL's CPCL Refinery and they connect the Tondiarpet Terminal/Tondiarpet lube complex, the Korukkupet terminal and the FST.
8Out of these eight pipelines, four lines -- one MD line, one Naphtha line, one FO line and one Lube line -- run across the full stretch, from the CPCL refinery to the Chennai Port and they are to be replaced.
8These lines will be replaced with three new piggable lines; one line for Black Oil , the second will be for White Oil and the third line for Lubes on Railway land and Port land connecting Korukkupet and Chennai Port.
8The proposed pipelines of which around 5.7 km pass along the railway track within the railway corridor (4.0 km) and along the port area (1.7 km). and will be made at an estimated cost of Rs.49.5 crore.
8The proposed pipelines are envisaged to be used for transportation of
--20” dia for White Oil (W.O) products MS, HSD, ATF, Naptha, SKO as a multiproduct line.
--14” dia for Black Oils (B.O).
--12” dia for Lube Oils (L.O).
Click on Reports for details fore more Details
8In Chennai, there are eight pipelines (product and lubes) emanating from IOCL's CPCL Refinery and they connect the Tondiarpet Terminal/Tondiarpet lube complex, the Korukkupet terminal and the FST.
8Out of these eight pipelines, four lines -- one MD line, one Naphtha line, one FO line and one Lube line -- run across the full stretch, from the CPCL refinery to the Chennai Port and they are to be replaced.
8These lines will be replaced with three new piggable lines; one line for Black Oil , the second will be for White Oil and the third line for Lubes on Railway land and Port land connecting Korukkupet and Chennai Port.
8The proposed pipelines of which around 5.7 km pass along the railway track within the railway corridor (4.0 km) and along the port area (1.7 km). and will be made at an estimated cost of Rs.49.5 crore.
8The proposed pipelines are envisaged to be used for transportation of
--20” dia for White Oil (W.O) products MS, HSD, ATF, Naptha, SKO as a multiproduct line.
--14” dia for Black Oils (B.O).
--12” dia for Lube Oils (L.O).
Click on Reports for details fore more Details
An example of how GAIL had gold plated costs to artificially hike tariff rates is evident from the data submitted for the KG Basin network of pipelines operated by the gas major.
8Data shows that GAIL had submitted a net fixed asset base of Rs 395 crore for the network whereas the CA certificate shows that the amount is only Rs 263 crore
8Future capex was submitted as Rs 997 crore for the period 2014-15 to 2016-17 while the actual figure was Rs 776 crore
8Similarly, the total amount proposed for replacement of pipelines was Rs 933 crore whereas the revised submission later was only for Rs 761 crore. Bills have submitted so far for only Rs 540 crore of investments.
8GAIL had said that it would incur Rs 219 crore for providing connectivities in the KG Basin network but the actual figure has turned out to be only Rs 60 crore.
8Operating expenses were submitted at Rs 323 crore for the period 2008-9 to 2014-15 whereas the certified figure is Rs 275 crore.
8Future opex figures were inflated too.
8The PNGEB in an interim order had cut the tariff charged by GAIL -- at Rs 9.75/mmbtu for the Tatipaka-Kakinada-Kovuur network and Rs 27.37/mmbtu for the Tatipaka-Kondapali network -- to a mere Rs 5.56/MMBTU on GCV basis.
8The regulator has now sought comments from stakeholders on the fresh filings made by GAIL before a final tariff order is taken out.
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8Data shows that GAIL had submitted a net fixed asset base of Rs 395 crore for the network whereas the CA certificate shows that the amount is only Rs 263 crore
8Future capex was submitted as Rs 997 crore for the period 2014-15 to 2016-17 while the actual figure was Rs 776 crore
8Similarly, the total amount proposed for replacement of pipelines was Rs 933 crore whereas the revised submission later was only for Rs 761 crore. Bills have submitted so far for only Rs 540 crore of investments.
8GAIL had said that it would incur Rs 219 crore for providing connectivities in the KG Basin network but the actual figure has turned out to be only Rs 60 crore.
8Operating expenses were submitted at Rs 323 crore for the period 2008-9 to 2014-15 whereas the certified figure is Rs 275 crore.
8Future opex figures were inflated too.
8The PNGEB in an interim order had cut the tariff charged by GAIL -- at Rs 9.75/mmbtu for the Tatipaka-Kakinada-Kovuur network and Rs 27.37/mmbtu for the Tatipaka-Kondapali network -- to a mere Rs 5.56/MMBTU on GCV basis.
8The regulator has now sought comments from stakeholders on the fresh filings made by GAIL before a final tariff order is taken out.
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It needs a lot of courage for a country like Saudi Arabia to stay firm and keep pumping crude in the face of such a dramatic fall in crude prices.
8Oil makes up 90% of government revenues, and its price, roughly $40 a barrel, is much less than half what it was in June last year. That is partly Saudi Arabia’s doing: it has not reined in its production, as it typically does when the price falls, but instead pumped record amounts in the hope of putting producers with higher costs out of business.
8Saudi Arabia has now resorted to borrowing to balance its books. On August 10th Saudi Arabia issued bonds worth 20 billion riyals ($5.3 billion). Borrowings are estimated to reach 100 billion riyals in the coming months.
8The IMF claims that the budget deficit will be 20% of the GDP but this may be an underestimate.
8What is more the cost of running the economy has been growing. Lavish public-sector wages, grandiose infrastructure projects and hefty subsidies on power, fuel and other consumer goods have long gobbled up most of the budget. But Saudi Arabia’s new king, Salman, who came to power in January, is also pursuing a more active, and expensive, foreign policy. He and his son, the defence minister and second-in-line to the throne, have launched a war in Yemen (involving bonus pay for the army) and are spending on aid projects to counter Iran’s influence across the region.
8The Saudis however are refusing to blink perhaps emboldened by the fact that they have plenty of leeway to borrow. Before the new bonds were issued, its debts stood at just 1.6% of GDP.
8Against that, it held foreign reserves of $672 billion in June, or 93% of GDP. In the 1990s, after a prolonged spell of low oil prices, Saudi Arabia’s debt rose to more than 100% of GDP without sending its borrowing costs spiraling.
8The way things are going, the Saudis may tire out the Americans if prices continue to fall. Details
8Oil makes up 90% of government revenues, and its price, roughly $40 a barrel, is much less than half what it was in June last year. That is partly Saudi Arabia’s doing: it has not reined in its production, as it typically does when the price falls, but instead pumped record amounts in the hope of putting producers with higher costs out of business.
8Saudi Arabia has now resorted to borrowing to balance its books. On August 10th Saudi Arabia issued bonds worth 20 billion riyals ($5.3 billion). Borrowings are estimated to reach 100 billion riyals in the coming months.
8The IMF claims that the budget deficit will be 20% of the GDP but this may be an underestimate.
8What is more the cost of running the economy has been growing. Lavish public-sector wages, grandiose infrastructure projects and hefty subsidies on power, fuel and other consumer goods have long gobbled up most of the budget. But Saudi Arabia’s new king, Salman, who came to power in January, is also pursuing a more active, and expensive, foreign policy. He and his son, the defence minister and second-in-line to the throne, have launched a war in Yemen (involving bonus pay for the army) and are spending on aid projects to counter Iran’s influence across the region.
8The Saudis however are refusing to blink perhaps emboldened by the fact that they have plenty of leeway to borrow. Before the new bonds were issued, its debts stood at just 1.6% of GDP.
8Against that, it held foreign reserves of $672 billion in June, or 93% of GDP. In the 1990s, after a prolonged spell of low oil prices, Saudi Arabia’s debt rose to more than 100% of GDP without sending its borrowing costs spiraling.
8The way things are going, the Saudis may tire out the Americans if prices continue to fall. Details
IOCL has planed to go for an external safety audit of its installations.
8The pipeline installation details are:
-- 24 installations in Northern Region
-- 21 installations in Eastern Region
--28 installations in Western Region
--7 installations in Southern Region
8The eastern region contains 2 installations in crude oil tank farms and 19 installations in the pump and terminal stations.
8The southern region contains all the 7 installations within the pump station and delivery terminal stations.
8The western region contains 4 installations in crude oil tank farms and 24 installations in pump and terminal stations.
8The northern region contains 11 installations in pump and terminal stations.
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8The pipeline installation details are:
-- 24 installations in Northern Region
-- 21 installations in Eastern Region
--28 installations in Western Region
--7 installations in Southern Region
8The eastern region contains 2 installations in crude oil tank farms and 19 installations in the pump and terminal stations.
8The southern region contains all the 7 installations within the pump station and delivery terminal stations.
8The western region contains 4 installations in crude oil tank farms and 24 installations in pump and terminal stations.
8The northern region contains 11 installations in pump and terminal stations.
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Crude prices continue to move inexorably downwards. US crude prices fell to almost $40 a barrel on Thursday, the lowest since the 2009 financial crisis.
8The price may move into the $30-40/bbl range at this rate as both OPEC and American producers continue to fight for market share.
8The American shale oil industry has been able to hang in despite low prices through productivity gains and cost cuts but it is not known how much longer they can hold on before they hang up.
8It looks like Saudi Arabia is willing to take the fight to the finish as it plans to continue pumping crude at record levels as have all other member countries of OPEC.
8While OPEC members, such as Russia and Venezuela among others, are struggling to stay afloat in the face of falling prices, Saudi Arabia is leading the battle from the front.
8Low prices are now beginning to bite American shale producers. Output is down 250,000 bpd since the start of June but not enough to stop the free fall in prices. Details
8The price may move into the $30-40/bbl range at this rate as both OPEC and American producers continue to fight for market share.
8The American shale oil industry has been able to hang in despite low prices through productivity gains and cost cuts but it is not known how much longer they can hold on before they hang up.
8It looks like Saudi Arabia is willing to take the fight to the finish as it plans to continue pumping crude at record levels as have all other member countries of OPEC.
8While OPEC members, such as Russia and Venezuela among others, are struggling to stay afloat in the face of falling prices, Saudi Arabia is leading the battle from the front.
8Low prices are now beginning to bite American shale producers. Output is down 250,000 bpd since the start of June but not enough to stop the free fall in prices. Details
The power required after the projects are completed will be met from the refinery’s new captive power plant (CPP).
8Break up of power requirement is given as following:
-- Main Processing Unit- 20720 KW
-- Utility Systems- 22318 KW
-- Offsite Facilities- 3033 KW
8A total of 122980 KW of power will be required for the proposed modernization.
8The fuel requirement of the refinery complex would be met by internal fuel oil and the fuel gas systems.
8Total requirement of fuel in all the furnaces within the process units would be met mostly by the fuel gas system and partly by internal fuel oil systems. All the furnaces shall be designed for dual firing.
8The existing fuel network will be integrated with the new fuel network.
8The duty requirement pattern of the units post completion are as follows:
-- Main Processing Unit- 393 MMKCal/h,
-- Auxiliary Units- 80 MMKCal/h,
-- Utilities- 197 MMKCal/h,
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8Break up of power requirement is given as following:
-- Main Processing Unit- 20720 KW
-- Utility Systems- 22318 KW
-- Offsite Facilities- 3033 KW
8A total of 122980 KW of power will be required for the proposed modernization.
8The fuel requirement of the refinery complex would be met by internal fuel oil and the fuel gas systems.
8Total requirement of fuel in all the furnaces within the process units would be met mostly by the fuel gas system and partly by internal fuel oil systems. All the furnaces shall be designed for dual firing.
8The existing fuel network will be integrated with the new fuel network.
8The duty requirement pattern of the units post completion are as follows:
-- Main Processing Unit- 393 MMKCal/h,
-- Auxiliary Units- 80 MMKCal/h,
-- Utilities- 197 MMKCal/h,
Click on the Reports section for more. Details
