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Sep 2016
Nine stranded gas plants with installed capacity of 5070 MW allocated 9.93 MMSCMD R-LNG under Phase IV of e-auction for supply during H2 FY2017 but yet they will lose money.
8In September 2016, the Ministry of Power held the fourth round of e-auction for supply of R-LNG to stranded gas based power plants, wherein nine stranded gas-based projects with an aggregate capacity of 5070 MW have won bids for allocation of 9.93 MMSCMD R-LNG for supply of 8.81 billion units during the period from October 1, 2016 to March 31, 2017 at or below Rs 4.70/kWh.
8The gas supplies to these projects involve Government support of Rs 187.14 crore from the Power System Development Fund.
8At the prevailing spot LNG prices and assuming financial relief in the form of a moratorium on debt servicing, there is an under-recovery of Rs. 0.7/unit for the stranded gas-based power projects at the given tariff level and without any subsidy support.
8Fundamentally, uncertainty over the improvement in domestic gas availability continues to remain an area of concern for the entire gas based capacity of ~27 GW.
8And if gas supplies do improve, the pricing of incremental gas, mostly from offshore fields, will not help the economics of these power plants.
Click on Reports for more Details
8In September 2016, the Ministry of Power held the fourth round of e-auction for supply of R-LNG to stranded gas based power plants, wherein nine stranded gas-based projects with an aggregate capacity of 5070 MW have won bids for allocation of 9.93 MMSCMD R-LNG for supply of 8.81 billion units during the period from October 1, 2016 to March 31, 2017 at or below Rs 4.70/kWh.
8The gas supplies to these projects involve Government support of Rs 187.14 crore from the Power System Development Fund.
8At the prevailing spot LNG prices and assuming financial relief in the form of a moratorium on debt servicing, there is an under-recovery of Rs. 0.7/unit for the stranded gas-based power projects at the given tariff level and without any subsidy support.
8Fundamentally, uncertainty over the improvement in domestic gas availability continues to remain an area of concern for the entire gas based capacity of ~27 GW.
8And if gas supplies do improve, the pricing of incremental gas, mostly from offshore fields, will not help the economics of these power plants.
Click on Reports for more Details
The PNGRB has made it clear that the bidder for the project can be a foreign company but must have an office in India
8Sub-contracting will not be allowed
8Joint bids will be allowed
8Minimum 5 years of oil and gas industry experience is a must
8The firm must have at least 50 employees
Click on Reports for more Details
8Sub-contracting will not be allowed
8Joint bids will be allowed
8Minimum 5 years of oil and gas industry experience is a must
8The firm must have at least 50 employees
Click on Reports for more Details
Te website sees business development opportunities in $ 10 billion worth of credit lines finalized by India with Africa.
8The Japanese and the West had given India similar credit lines in the past, and more often than not such aid is tied up with more business for host country companies.
8Indian credit is similarly tied up or can be.
8The website carries here a large amount of data on India's involvement in Africa and the projects that it is funding.
8Indian companies can piggy ride on the aid flow, the website believes
8There are several oil & gas related projects too in this portfolio.
Click on Reports for more Details
8The Japanese and the West had given India similar credit lines in the past, and more often than not such aid is tied up with more business for host country companies.
8Indian credit is similarly tied up or can be.
8The website carries here a large amount of data on India's involvement in Africa and the projects that it is funding.
8Indian companies can piggy ride on the aid flow, the website believes
8There are several oil & gas related projects too in this portfolio.
Click on Reports for more Details
ONGC's massive all-India logging, TCP-DST and well shuttle services tender is taking time getting finalized, according to highly placed sources in ONGC and among bidders.
8There are a total of 11 segments and as as many as 36 different price bids have been received for essential, optional and hi-tech services.
8It is learnt that the ONGC brass is bogged down in negotiating the right rates for each of these bids.
8It is reportedly a complicated exercise, involving negotiating with L-1 bidders and then allowing L-2 bidders to match prices as also pushing down prices in those segments, particularly in the hi-tech segments, where prices have been found to be far higher than what ONGC's reserve prices are.
8Some bidders seem to have a distinct advantage over others
Click on Details to find out more on what is going on with the tender. Details
8There are a total of 11 segments and as as many as 36 different price bids have been received for essential, optional and hi-tech services.
8It is learnt that the ONGC brass is bogged down in negotiating the right rates for each of these bids.
8It is reportedly a complicated exercise, involving negotiating with L-1 bidders and then allowing L-2 bidders to match prices as also pushing down prices in those segments, particularly in the hi-tech segments, where prices have been found to be far higher than what ONGC's reserve prices are.
8Some bidders seem to have a distinct advantage over others
Click on Details to find out more on what is going on with the tender. Details
Well placed sources said that ONGC has now been forced to give existing logging services companies already working with the E&P major extensions of between 3 to 5 months as the main tender hasn't been submitted.
8What is more, these incumbents have been given extensions even if they haven't emerged as L-1 in some segments.
8This is because orders have not been placed on the new winners yet as prices are still being negotiated.
8There is a lot of confusion over what would be the rates at which these nomination contracts will be handed out.
8As the rates for the main tender has not been finalized, everybody seems to be working on good faith basis.
8Where the existing incumbents are already there, and their rates are lower than the previous rates and below ONGC's reserve price, there shouldn't be a problem.
8The problem seems to be with those items where the rates are high and companies are working on a nomination basis.
Click on Details for more Details
8What is more, these incumbents have been given extensions even if they haven't emerged as L-1 in some segments.
8This is because orders have not been placed on the new winners yet as prices are still being negotiated.
8There is a lot of confusion over what would be the rates at which these nomination contracts will be handed out.
8As the rates for the main tender has not been finalized, everybody seems to be working on good faith basis.
8Where the existing incumbents are already there, and their rates are lower than the previous rates and below ONGC's reserve price, there shouldn't be a problem.
8The problem seems to be with those items where the rates are high and companies are working on a nomination basis.
Click on Details for more Details
What kind of rates did ONGC elicit against its all-India logging services mega tender.
8Some rates are high, some are really low.
8Most items have seen a four-horse race.
8Most of the contracts for logging service were with Schlumberger but the likes of Baker Hughes and Empro have beaten the former in a few categories.
8Talking to both ONGC sources as also to the bidders, this website has been able to piece together a mosaic of rates and which companies have emerged as the lowest bidders.
Click on Details for more Details
8Some rates are high, some are really low.
8Most items have seen a four-horse race.
8Most of the contracts for logging service were with Schlumberger but the likes of Baker Hughes and Empro have beaten the former in a few categories.
8Talking to both ONGC sources as also to the bidders, this website has been able to piece together a mosaic of rates and which companies have emerged as the lowest bidders.
Click on Details for more Details
There are very few E&P segments where prices have fallen as low as in ONGC's logging, TCP-DST and well shuttle services tender.
8In some categories, particularly in TCP-DSP segments, rates have fallen by as much as 70%.
8This has caused mayhem in the tender.
8Even ONGC has taken unaware and its reserve price is far higher than those quoted by bidders. But the E&P major is not complaining at all.
8In fact ONGC is digging in and negotiating down prices, particularly in the hi-tech categories, where the bid prices are higher than the reserve price.
8In some cases, ONGC has begun making post tender modifications in conditionalities to push bidders into a tighter corner and extract further concessions.
8Finding itself at a clear advantage in a buyers market, ONGC is like a gladiator enjoying the massive blood letting that is going on among equipment and service providers.
Click on Details for more Details
8In some categories, particularly in TCP-DSP segments, rates have fallen by as much as 70%.
8This has caused mayhem in the tender.
8Even ONGC has taken unaware and its reserve price is far higher than those quoted by bidders. But the E&P major is not complaining at all.
8In fact ONGC is digging in and negotiating down prices, particularly in the hi-tech categories, where the bid prices are higher than the reserve price.
8In some cases, ONGC has begun making post tender modifications in conditionalities to push bidders into a tighter corner and extract further concessions.
8Finding itself at a clear advantage in a buyers market, ONGC is like a gladiator enjoying the massive blood letting that is going on among equipment and service providers.
Click on Details for more Details
When a market leader begins to develop complacency, that's when there is looming trouble ahead.
8This holds true for Schlumberger.
8The company was ousted from its berth across several segments in which it was the lowest bidder in the previous tender three years ago.
8It has been beaten by more aggressive bidders such as Baker Hughes and Expro.
8The saving grace Schlumberger has been told to stay on for anywhere between three to five months more with its existing jobs, until all the rates of the mega tender is finalized.
8The slack has been given because winning bidders will take 90 days to mobilize equipment and take over from where Schlumberger will leave off.
8There is now a consensus that the existing incumbent will hang in on a nomination basis till a new bidder is mobilized but then rates will be cut to the level at which LOIs are awarded to new bidders.
Click on Details for more Details
8This holds true for Schlumberger.
8The company was ousted from its berth across several segments in which it was the lowest bidder in the previous tender three years ago.
8It has been beaten by more aggressive bidders such as Baker Hughes and Expro.
8The saving grace Schlumberger has been told to stay on for anywhere between three to five months more with its existing jobs, until all the rates of the mega tender is finalized.
8The slack has been given because winning bidders will take 90 days to mobilize equipment and take over from where Schlumberger will leave off.
8There is now a consensus that the existing incumbent will hang in on a nomination basis till a new bidder is mobilized but then rates will be cut to the level at which LOIs are awarded to new bidders.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Annual Rate Contract for carrying out Electromagnetic Acoustic Testing in Utility Boiler at Paradip Refinery Details
8Annual Rate Contract for OFC Restoration works in Mainline of CTMPL,CBPL and ATFPL, Chennai Details
8AMC of Tank Farm Management System at Panipat Naphtha Cracker Complex Details
8Procurement of Pressure Transmitter & Differential Pressure Transmitter Details
8Hiring of CHA Services for Import Clearance of LNG Cargos Details
8Corrigendum: Hiring of services on Rate Contract basis during pigging operation, Vadodara Details
8Calibration of Safety Valves for Dibiyapur Region Details
8Procurement of Nickel Plated Pressure Seal Gate valves for LLDPE Plant Details
8Process Management for Mass Flow Meters in different units of Bongaigaon Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8PM Modi hails fellow Indians for giving up LPG subsidy Details
8India to ratify Paris Agreement on climate change Details
8Algeria says all options 'possible' for Algiers OPEC gathering Details
8BPCL may look at increasing Kochi refinery capacity to 22 MT Details
8Philanthropic fund of $80 million to phase out hydrofluorocarbons Details
8BPCL to set up green bio-fuel refinery Details
8Ecuador hopes OPEC will reach agreement in Algeria, warns of risks Details
8BPCL Kochi Refinery set to become world-class: Pradhan Details
8Fossil fuel reserves would crush climate goals: Report Details
8Cairn to spend USD 150 mn on 10 exploratory wells in AP Details
8BPCL looks for more oil, gas assets already in production Details
8ONGC Board approves pact to take stake in GSPC gas block Details
8PESB selects Sanjiv Singh for Indian Oil Corporation's top post Details
8BPCL says gas production from Mozambique not before FY21 Details
8All unexplored oil fields to go under the hammer in 2017 Details
8Indian consortium in talks for UAE’s onshore energy blocks Details
You can also click on Newsclips for more Details
8Annual Rate Contract for carrying out Electromagnetic Acoustic Testing in Utility Boiler at Paradip Refinery Details
8Annual Rate Contract for OFC Restoration works in Mainline of CTMPL,CBPL and ATFPL, Chennai Details
8AMC of Tank Farm Management System at Panipat Naphtha Cracker Complex Details
8Procurement of Pressure Transmitter & Differential Pressure Transmitter Details
8Hiring of CHA Services for Import Clearance of LNG Cargos Details
8Corrigendum: Hiring of services on Rate Contract basis during pigging operation, Vadodara Details
8Calibration of Safety Valves for Dibiyapur Region Details
8Procurement of Nickel Plated Pressure Seal Gate valves for LLDPE Plant Details
8Process Management for Mass Flow Meters in different units of Bongaigaon Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8PM Modi hails fellow Indians for giving up LPG subsidy Details
8India to ratify Paris Agreement on climate change Details
8Algeria says all options 'possible' for Algiers OPEC gathering Details
8BPCL may look at increasing Kochi refinery capacity to 22 MT Details
8Philanthropic fund of $80 million to phase out hydrofluorocarbons Details
8BPCL to set up green bio-fuel refinery Details
8Ecuador hopes OPEC will reach agreement in Algeria, warns of risks Details
8BPCL Kochi Refinery set to become world-class: Pradhan Details
8Fossil fuel reserves would crush climate goals: Report Details
8Cairn to spend USD 150 mn on 10 exploratory wells in AP Details
8BPCL looks for more oil, gas assets already in production Details
8ONGC Board approves pact to take stake in GSPC gas block Details
8PESB selects Sanjiv Singh for Indian Oil Corporation's top post Details
8BPCL says gas production from Mozambique not before FY21 Details
8All unexplored oil fields to go under the hammer in 2017 Details
8Indian consortium in talks for UAE’s onshore energy blocks Details
You can also click on Newsclips for more Details
It is imperative for the oil and gas industry to also read a writeup dubbed as, The Future is Around the Corner.
8The paper says that the world as we know will change dramatically within the next five to 10 years.
8In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide. Within just a few years, their business model disappeared and they went bankrupt.
8Uber is just a software tool, they don't own any cars, and are now the biggest taxi company in the world.
8Airbnb is now the biggest hotel company in the world, although they don't own any properties.
8In the US, young lawyers already don't get jobs. You can get legal advice (so far for more or less basic stuff) within seconds through software applications, with 90% accuracy compared with 70% accuracy when done by humans.
8In 2018 the first self driving cars will appear for the public. Around 2020, the complete industry will start to be disrupted. You don't want to own a car anymore. You will call a car with your phone, it will show up at your location and drive you to your destination. You will not need to park it, you only pay for the driven distance and can be productive while driving. Our kids will never get a driver's licence and will never own a car. It will change the cities, because we will need 90-95% less cars for that. We can transform former parking spaces into parks. 1.2 million people die each year in car accidents worldwide. We now have one accident every 60,000 mi (100,000 km), with autonomous driving that will drop to one accident in 6 million mi (10 million km). That will save a million lives each year.
8Most car companies will probably become bankrupt. Traditional car companies try the evolutionary approach and just build a better car, while tech companies (Tesla, Apple, Google) will do the revolutionary approach and build a computer on wheels. Many engineers from Volkswagen and Audi are completely terrified of Tesla.
8Insurance companies will have massive trouble because without accidents, the insurance will become 100x cheaper. Their car insurance business model will disappear.
8Real estate will change. Because if you can work while you commute, people will move further away to live in a more beautiful neighborhood.
8Electric cars will become mainstream about 2020. Cities will be less noisy because all new cars will run on electricity. Electricity will become incredibly cheap and clean: Solar production has been on an exponential curve for 30 years, but you can now see the burgeoning impact.
8Last year, more solar energy was installed worldwide than fossil. Energy companies are
desperately trying to limit access to the grid to prevent competition from home solar installations, but that can't last. Technology will take care of that strategy. With cheap electricity comes cheap and abundant water. Desalination of salt water now only needs 2kWh per cubic meter (@ 0.25 cents). We don't have scarce water in most places, we only have scarce drinking water. Imagine what will be possible if anyone can have as much clean water as he wants, for nearly no cost.
8There are companies who will build a medical device that works with your phone, which takes your retina scan, your blood sample and you breath into it. It then analyses 54 biomarkers that will identify nearly any disease. It will be cheap, so in a few years everyone on this planet will have access to world class medical analysis, nearly for free. Goodbye, medical establishment.
8The price of the cheapest 3D printer came down from $18,000 to $400 within 10 years. In the same time, it became 100 times faster. All major shoe companies have already started 3D printing shoes. Some spare airplane parts are already 3D printed in remote airports. The space station now has a printer that eliminates the need for the large amount of spare parts they used to have in the past. At the end of this year, new smart phones will have 3D scanning possibilities. You can then 3D scan your feet and print your perfect shoe at home. In China, they already 3D printed and built a complete 6-storey office building. By 2027, 10% of everything that's being produced will be 3D printed.
8Bitcoin may even become the default reserve currency of the world.
8Right now, the average life span increases by 3 months per year. Four years ago, the life span used to be 79 years, now it's 80 years. The increase itself is increasing and by 2036, there will be more that one year increase per year. So we all might live for a long long time, probably way more than 100.
8The cheapest smart phones are already at $10 in Africa and Asia. By 2020, 70% of all humans will own a smart phone. That means, everyone has the same access to world class education.
Click on Reports for more.
Comment: Clearly the pace of change in the next 10 to 15 years will be more than how it happened in the last 200 years. The transformation will touch the core of our lives, and our jobs. It is easy to say that we should be prepared for the future but, most likely changes, will hit us in ways that we cannot predict. Most innovations will be for our good but big worries remain. Will we be able to retain our jobs, our professions or our businesses? Will our children be gainfully employed in their areas of expertise. Nothing is clear yet.
Click on Details for more Details
8The paper says that the world as we know will change dramatically within the next five to 10 years.
8In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide. Within just a few years, their business model disappeared and they went bankrupt.
8Uber is just a software tool, they don't own any cars, and are now the biggest taxi company in the world.
8Airbnb is now the biggest hotel company in the world, although they don't own any properties.
8In the US, young lawyers already don't get jobs. You can get legal advice (so far for more or less basic stuff) within seconds through software applications, with 90% accuracy compared with 70% accuracy when done by humans.
8In 2018 the first self driving cars will appear for the public. Around 2020, the complete industry will start to be disrupted. You don't want to own a car anymore. You will call a car with your phone, it will show up at your location and drive you to your destination. You will not need to park it, you only pay for the driven distance and can be productive while driving. Our kids will never get a driver's licence and will never own a car. It will change the cities, because we will need 90-95% less cars for that. We can transform former parking spaces into parks. 1.2 million people die each year in car accidents worldwide. We now have one accident every 60,000 mi (100,000 km), with autonomous driving that will drop to one accident in 6 million mi (10 million km). That will save a million lives each year.
8Most car companies will probably become bankrupt. Traditional car companies try the evolutionary approach and just build a better car, while tech companies (Tesla, Apple, Google) will do the revolutionary approach and build a computer on wheels. Many engineers from Volkswagen and Audi are completely terrified of Tesla.
8Insurance companies will have massive trouble because without accidents, the insurance will become 100x cheaper. Their car insurance business model will disappear.
8Real estate will change. Because if you can work while you commute, people will move further away to live in a more beautiful neighborhood.
8Electric cars will become mainstream about 2020. Cities will be less noisy because all new cars will run on electricity. Electricity will become incredibly cheap and clean: Solar production has been on an exponential curve for 30 years, but you can now see the burgeoning impact.
8Last year, more solar energy was installed worldwide than fossil. Energy companies are
desperately trying to limit access to the grid to prevent competition from home solar installations, but that can't last. Technology will take care of that strategy. With cheap electricity comes cheap and abundant water. Desalination of salt water now only needs 2kWh per cubic meter (@ 0.25 cents). We don't have scarce water in most places, we only have scarce drinking water. Imagine what will be possible if anyone can have as much clean water as he wants, for nearly no cost.
8There are companies who will build a medical device that works with your phone, which takes your retina scan, your blood sample and you breath into it. It then analyses 54 biomarkers that will identify nearly any disease. It will be cheap, so in a few years everyone on this planet will have access to world class medical analysis, nearly for free. Goodbye, medical establishment.
8The price of the cheapest 3D printer came down from $18,000 to $400 within 10 years. In the same time, it became 100 times faster. All major shoe companies have already started 3D printing shoes. Some spare airplane parts are already 3D printed in remote airports. The space station now has a printer that eliminates the need for the large amount of spare parts they used to have in the past. At the end of this year, new smart phones will have 3D scanning possibilities. You can then 3D scan your feet and print your perfect shoe at home. In China, they already 3D printed and built a complete 6-storey office building. By 2027, 10% of everything that's being produced will be 3D printed.
8Bitcoin may even become the default reserve currency of the world.
8Right now, the average life span increases by 3 months per year. Four years ago, the life span used to be 79 years, now it's 80 years. The increase itself is increasing and by 2036, there will be more that one year increase per year. So we all might live for a long long time, probably way more than 100.
8The cheapest smart phones are already at $10 in Africa and Asia. By 2020, 70% of all humans will own a smart phone. That means, everyone has the same access to world class education.
Click on Reports for more.
Comment: Clearly the pace of change in the next 10 to 15 years will be more than how it happened in the last 200 years. The transformation will touch the core of our lives, and our jobs. It is easy to say that we should be prepared for the future but, most likely changes, will hit us in ways that we cannot predict. Most innovations will be for our good but big worries remain. Will we be able to retain our jobs, our professions or our businesses? Will our children be gainfully employed in their areas of expertise. Nothing is clear yet.
Click on Details for more Details
In many countries, the new report claims, wind and solar are already cost-competitive with fossil fuel and nuclear power generation.
8A recent Deutsche Bank survey of sixty countries found that solar has reached grid parity in fully half of the countries already.
8And costs are falling fast. The International Renewable Energy Agency reports that the levelized cost of electricity from utility-scale solar fell by 58% between 2010 and 2015, and could fall by a further 59% between
2015 and 2025.80
8New transportation technologies, specifically electric vehicles (EVs), are also developing fast. Battery costs – a major element of the price of an EV – are falling quickly, as lithium-ion battery costs fell 65% from 2010 to 2015.81. Further cost declines and performance improvements are widely expected, with some projecting a further 60% cost decline by 2020.
8UBS predicts that by the early 2020s, the purchase price of an EV will be only very slightly higher than a petroleum-fueled car, with only small a fraction of the fuel and maintenance costs.
8In 2016 and 2017, three different mass-market, long-range electric car models are being launched in the United States, with dozens more expected by 2020. China aims to have five million EVs on the road by 2020, while several European countries (including Norway, France and Germany) have recently announced that they to no longer allow sales of petroleum-fueled cars after either 2025 or 2030.
Click on Reports for more
Comment: If EVs are just around the corner, what happens the retail outlet expansion plans of oil marketing companies or their massive refinery expansion plans? Should they put them hold and carefully assess future trends. Going by linear projection of demand for liquid fuels may no longer be the best way to understand the future. Details
8A recent Deutsche Bank survey of sixty countries found that solar has reached grid parity in fully half of the countries already.
8And costs are falling fast. The International Renewable Energy Agency reports that the levelized cost of electricity from utility-scale solar fell by 58% between 2010 and 2015, and could fall by a further 59% between
2015 and 2025.80
8New transportation technologies, specifically electric vehicles (EVs), are also developing fast. Battery costs – a major element of the price of an EV – are falling quickly, as lithium-ion battery costs fell 65% from 2010 to 2015.81. Further cost declines and performance improvements are widely expected, with some projecting a further 60% cost decline by 2020.
8UBS predicts that by the early 2020s, the purchase price of an EV will be only very slightly higher than a petroleum-fueled car, with only small a fraction of the fuel and maintenance costs.
8In 2016 and 2017, three different mass-market, long-range electric car models are being launched in the United States, with dozens more expected by 2020. China aims to have five million EVs on the road by 2020, while several European countries (including Norway, France and Germany) have recently announced that they to no longer allow sales of petroleum-fueled cars after either 2025 or 2030.
Click on Reports for more
Comment: If EVs are just around the corner, what happens the retail outlet expansion plans of oil marketing companies or their massive refinery expansion plans? Should they put them hold and carefully assess future trends. Going by linear projection of demand for liquid fuels may no longer be the best way to understand the future. Details
A new paper comes out with data to suggest that the world should not build any more new fossil fuel infrastructure so as to be able to stay within the climate change target of 2 degrees by the end of 2100.
8The study finds that oil, gas, and coal in already-developed fields and mines (that is, where the infrastructure has been built) exceeds the amount that can be burned while likely staying below 2°C, and significantly exceeds the amount that can be burned while staying below 1.5°C.
8"Instead, we should allow for the gradual decline of existing operations, over the coming decades, and invest strongly in clean energy to make up the difference, the report claims. We have seen that there is no economic or technical barrier to making this transition over this time frame: the only requirement is political will," the report claims.
8To minimize the costs of the transition, governments should conduct robust planning for economic and energy diversification. The principles of just transition should be applied, to ensure workers and communities benefit from the shift to a clean energy economy, rather than be harmed by it, the report says.
8The report asserts that its conclusions will take some by surprise, and cause alarm with others. They imply serious alterations to the global economy, will be resisted by some of the most profitable companies ever known, and will necessitate bold and decisive action by governments on a scale not seen thus far, the report claims.
Comment: This report is a must-read for every oil and gas professional in order to be able to assess for himself what the future has in store. For oil companies, big decisions are needed: where to put new investments will be an increasingly challenging questions Details
8The study finds that oil, gas, and coal in already-developed fields and mines (that is, where the infrastructure has been built) exceeds the amount that can be burned while likely staying below 2°C, and significantly exceeds the amount that can be burned while staying below 1.5°C.
8"Instead, we should allow for the gradual decline of existing operations, over the coming decades, and invest strongly in clean energy to make up the difference, the report claims. We have seen that there is no economic or technical barrier to making this transition over this time frame: the only requirement is political will," the report claims.
8To minimize the costs of the transition, governments should conduct robust planning for economic and energy diversification. The principles of just transition should be applied, to ensure workers and communities benefit from the shift to a clean energy economy, rather than be harmed by it, the report says.
8The report asserts that its conclusions will take some by surprise, and cause alarm with others. They imply serious alterations to the global economy, will be resisted by some of the most profitable companies ever known, and will necessitate bold and decisive action by governments on a scale not seen thus far, the report claims.
Comment: This report is a must-read for every oil and gas professional in order to be able to assess for himself what the future has in store. For oil companies, big decisions are needed: where to put new investments will be an increasingly challenging questions Details
Indian shipyards invariably look at the oil and gas industry for business growth.
8Occasionally, at their own peril, the oil and gas industry did place orders on indigenous shipyards. The results have never been up to expectations. Lack of experience and investments mean that these shipyards have always delayed deliveries. Workmanship has been shoddy too.
8But mercifully the focus of Indian shipyards has now changed: it is eying the defense industry subsequent to a change of policy by the Modi government.
8What is being eyed is a naval pipeline of $ 30 billion over the medium term.
8Hopefully this will ease the intense lobbying by these shipyards with the powers that be for more orders from the oil and gas industry.
8Some of the consequences of this lobbying has been disastrous: GAIL, for example, is left with the fearful possibility of not having vessels to hire to lift its US LNG cargoes because lobbyists convinced the government to insert an un-implementable clause on global LNG ship builders that would require them to ensure that every third LNG vessels is built in India
Click on Reports for more on the status of the Indian industry Details
8Occasionally, at their own peril, the oil and gas industry did place orders on indigenous shipyards. The results have never been up to expectations. Lack of experience and investments mean that these shipyards have always delayed deliveries. Workmanship has been shoddy too.
8But mercifully the focus of Indian shipyards has now changed: it is eying the defense industry subsequent to a change of policy by the Modi government.
8What is being eyed is a naval pipeline of $ 30 billion over the medium term.
8Hopefully this will ease the intense lobbying by these shipyards with the powers that be for more orders from the oil and gas industry.
8Some of the consequences of this lobbying has been disastrous: GAIL, for example, is left with the fearful possibility of not having vessels to hire to lift its US LNG cargoes because lobbyists convinced the government to insert an un-implementable clause on global LNG ship builders that would require them to ensure that every third LNG vessels is built in India
Click on Reports for more on the status of the Indian industry Details
There is of course the other side of the picture and it provides an entire different spin. In a presentation made recently by the OPEC secretary general M.S. Barkindo, he makes the following points:.
He makes the following points:
8Oil and gas demand goes up by 17% by 2040
8Oil related investments will top $ 10 trillion by 2040
8A significant cut in investment has happened and this will mean lower production in the future
8A significant rise in oil prices is needed in order for investments to flow back into the sector
8Oil and gas market is already rebalancing and it is only a matter of time before prices begin to rise.
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Comment: It is easier for the oil and gas industry to understand what the OPEC general secretary is saying than what the climate change activists are projecting. The truth lies somewhere in between. Details
He makes the following points:
8Oil and gas demand goes up by 17% by 2040
8Oil related investments will top $ 10 trillion by 2040
8A significant cut in investment has happened and this will mean lower production in the future
8A significant rise in oil prices is needed in order for investments to flow back into the sector
8Oil and gas market is already rebalancing and it is only a matter of time before prices begin to rise.
Click on Reports for more
Comment: It is easier for the oil and gas industry to understand what the OPEC general secretary is saying than what the climate change activists are projecting. The truth lies somewhere in between. Details
After a series of interviews with rig owners and ONGC officials, the website has arrived at a benchmark ODR for the anchor-moored rig that ONGC has tendered out for.
8The website believes that all rig suppliers will necessarily have to stay around this rate or bid below it, so as to be able to grab the tender. It is assumed that the global demand-supply dynamics for rigs won't change dramatically till November, when the bids are to come in.
8The day rates of rigs hired earlier by ONGC, such as the Essar Wild Cat or the Actina or the Noble Duchess or even the GSF 140 can not be the benchmark.
8This is because the specifications of the current rigs are different from those of the others.
8Also it is difficult to normalize the rig rates over different specifications.
8It is pertinent to note that the website has put in a lot of effort for this analysis, weaving together disparate information from multiple sources to get the data that a rig supplier wants at this critical point in time.
8For a rig supplier, we are doing the work of a highly paid business development manager.
Click on Details for more Details
8The website believes that all rig suppliers will necessarily have to stay around this rate or bid below it, so as to be able to grab the tender. It is assumed that the global demand-supply dynamics for rigs won't change dramatically till November, when the bids are to come in.
8The day rates of rigs hired earlier by ONGC, such as the Essar Wild Cat or the Actina or the Noble Duchess or even the GSF 140 can not be the benchmark.
8This is because the specifications of the current rigs are different from those of the others.
8Also it is difficult to normalize the rig rates over different specifications.
8It is pertinent to note that the website has put in a lot of effort for this analysis, weaving together disparate information from multiple sources to get the data that a rig supplier wants at this critical point in time.
8For a rig supplier, we are doing the work of a highly paid business development manager.
Click on Details for more Details
ONGC has a wide range of day rates, from $ 100,000 to $ 300,000.
8The real comparison of any forthcoming rig will however be with just one rig.
8What's the exact ODR of this rig that ONGC will be benchmarking its price against?
8And then the question will be how far down this benchmark price will ODR rates go in the current tender?
8It is going to be hard decision for a bidder because he is going to lose money anyways.
8Clearly, the blood letting is likely to continue in the rig market for some time to come.
Click on Details for more Details
8The real comparison of any forthcoming rig will however be with just one rig.
8What's the exact ODR of this rig that ONGC will be benchmarking its price against?
8And then the question will be how far down this benchmark price will ODR rates go in the current tender?
8It is going to be hard decision for a bidder because he is going to lose money anyways.
8Clearly, the blood letting is likely to continue in the rig market for some time to come.
Click on Details for more Details
What ONGC will be looking for is some kind of a proportionality in the rates between a DP rig and a anchor moored rig.
8For most rig providers, this is a strange kind of comparison but nevertheless, ONGC is likely to do it.
8And not just that, they will hold the lowest bidder in each of the two categories to the gun, and force a reduction in the rate of the L-1 bidder if there is a variation with the other category.
8This comparison is however done after taking into account certain assumptions.
8Find out more on what kind of exercise ONGC will possibly do in the new tender.
8And does this comparison take into account all the differentiating parameters?
Click on Details for more. Details
8For most rig providers, this is a strange kind of comparison but nevertheless, ONGC is likely to do it.
8And not just that, they will hold the lowest bidder in each of the two categories to the gun, and force a reduction in the rate of the L-1 bidder if there is a variation with the other category.
8This comparison is however done after taking into account certain assumptions.
8Find out more on what kind of exercise ONGC will possibly do in the new tender.
8And does this comparison take into account all the differentiating parameters?
Click on Details for more. Details
In more than one ways, it is not fair for ONGC to compare the rates of an anchor moored rig to that of a DP rig.
8Using the lower of the two L-1 rates to pressurize the other L-1 bidder (with the higher rate) to bring down the price is an unacceptable practice, according to rig owner who did not want to be named.
8But then in a buyers market, rig owners have no choice but to fall in line
Click on Details to know more about what rig owners have to say about this. Details
8Using the lower of the two L-1 rates to pressurize the other L-1 bidder (with the higher rate) to bring down the price is an unacceptable practice, according to rig owner who did not want to be named.
8But then in a buyers market, rig owners have no choice but to fall in line
Click on Details to know more about what rig owners have to say about this. Details
Everyone pays a lot of money to subscribe to international databases to find out the latest day rates for rigs around the world.
8But are they effective?
8They are not, for the simple fact that in a buyers market it is the internal dynamics of the buyer, such as ONGC. which will determine the winner.
8What is more, because the market is in turmoil, it really does not matter what the last rate was, the new rates will be at variance with the old as bidders work on marginal pricing principles to survive the current downturn.
8Also such databases now throw up conflicting reports, because the variations are now too wide for anyone to make a meaningful comparison.
8Instead website such as ours are much more accurate in our projections because we are right where the action is, assessing the market through analysts and scouts on the ground, while talking continuously to people who matter.
Click on Details for more Details
8But are they effective?
8They are not, for the simple fact that in a buyers market it is the internal dynamics of the buyer, such as ONGC. which will determine the winner.
8What is more, because the market is in turmoil, it really does not matter what the last rate was, the new rates will be at variance with the old as bidders work on marginal pricing principles to survive the current downturn.
8Also such databases now throw up conflicting reports, because the variations are now too wide for anyone to make a meaningful comparison.
8Instead website such as ours are much more accurate in our projections because we are right where the action is, assessing the market through analysts and scouts on the ground, while talking continuously to people who matter.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Comprehensive Antifoulant Treatment Programme for Crude, Mumbai Details
8Laying of Pipelines and associated works for HTPL Project, Kochi Refinery Details
8Supply of Potassium Formate for KG-OSN-2001/3 Block Details
8Supply and Commissioning of Safety PLC System for HDPE Plant, Pata Details
8Procurement of Spares for Rotary Steam Dryer of HDPE Plant, Pata Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Why Oil Markets should brace for OPEC disappointment Details
8Bharat Petroleum looks for more oil, gas assets already in production Details
8Oil extends rise after surprise U.S. crude stock draw Details
8Petrobras cuts spending, raises asset sales goal in five-year plan Details
8Vizag port trust eyes green clearance for two oil refinery berths Details
8IOC GAIL MOU for Dharma LNG terminal Details
8Domestic crude oil, natural gas production declines in August Details
8'BPCL says gas production from Mozambique not before FY21' Details
8Crude and Natural Gas prodution falls while Refinery production rises Details
8Monsoon to keep India's diesel exports near 3-year highs Details
8Vedanta signs concession agreement for redevelopment of Mormugao Port Details
8Oil market extends gains Details
You can also click on Newsclips for more Details
8Comprehensive Antifoulant Treatment Programme for Crude, Mumbai Details
8Laying of Pipelines and associated works for HTPL Project, Kochi Refinery Details
8Supply of Potassium Formate for KG-OSN-2001/3 Block Details
8Supply and Commissioning of Safety PLC System for HDPE Plant, Pata Details
8Procurement of Spares for Rotary Steam Dryer of HDPE Plant, Pata Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Why Oil Markets should brace for OPEC disappointment Details
8Bharat Petroleum looks for more oil, gas assets already in production Details
8Oil extends rise after surprise U.S. crude stock draw Details
8Petrobras cuts spending, raises asset sales goal in five-year plan Details
8Vizag port trust eyes green clearance for two oil refinery berths Details
8IOC GAIL MOU for Dharma LNG terminal Details
8Domestic crude oil, natural gas production declines in August Details
8'BPCL says gas production from Mozambique not before FY21' Details
8Crude and Natural Gas prodution falls while Refinery production rises Details
8Monsoon to keep India's diesel exports near 3-year highs Details
8Vedanta signs concession agreement for redevelopment of Mormugao Port Details
8Oil market extends gains Details
You can also click on Newsclips for more Details
Petroleum product consumption registered a growth of 11.4% during August, 2016 as compared to 9.9% growth during August, 2015. Except for Naphtha and SKO, all other products registered positive growth during August, 2016. During the period April-August 2016, petroleum product
consumption registered a growth of 9.3% (6.9 MMT) as compared to the same period last year.
8Gross production of natural gas for the month of August, 2016 was 2,674 MMSCM which was lower by 5.71 % compared with the corresponding month of the previous year (2,836 MMSCM). The cumulative gross production of natural gas 13,121 MMSCM for the current year till August, 2016 was lower by 4.22 % compared with the corresponding period of the previous year (13,699 MMSCM).
8LNG import for the month of August, 2016 was 2,144 MMSCM which was 34.59 % higher than the corresponding month of the previous year (1,593 MMSCM). The cumulative import 10,348 MMSCM for the current year till August, 2016 was higher by 25.75 % compared with the corresponding period of the previous year (8,229 MMSCM).
8The prices of Brent crude averaged $45.77/bbl during August, 2016 as against $45.10/bbl during July, 2016. Similarly, the Indian basket crude averaged $44.38/bbl during August, 2016 as against $43.52/bbl during the previous month.
8The import bill of crude oil is estimated to increase by 5.0% from $ 64 billion in 2015-16 to $67 billion in 2016-17 considering Indian basket crude oil price of $ 45/bbl and $/Rs=67 for the balance part of the financial year.
Click on Reports for full information Details
consumption registered a growth of 9.3% (6.9 MMT) as compared to the same period last year.
8Gross production of natural gas for the month of August, 2016 was 2,674 MMSCM which was lower by 5.71 % compared with the corresponding month of the previous year (2,836 MMSCM). The cumulative gross production of natural gas 13,121 MMSCM for the current year till August, 2016 was lower by 4.22 % compared with the corresponding period of the previous year (13,699 MMSCM).
8LNG import for the month of August, 2016 was 2,144 MMSCM which was 34.59 % higher than the corresponding month of the previous year (1,593 MMSCM). The cumulative import 10,348 MMSCM for the current year till August, 2016 was higher by 25.75 % compared with the corresponding period of the previous year (8,229 MMSCM).
8The prices of Brent crude averaged $45.77/bbl during August, 2016 as against $45.10/bbl during July, 2016. Similarly, the Indian basket crude averaged $44.38/bbl during August, 2016 as against $43.52/bbl during the previous month.
8The import bill of crude oil is estimated to increase by 5.0% from $ 64 billion in 2015-16 to $67 billion in 2016-17 considering Indian basket crude oil price of $ 45/bbl and $/Rs=67 for the balance part of the financial year.
Click on Reports for full information Details
In the last one year, we have worked hard to bring you new products and services.
8In this period, we have launched nearly 200 news, research and software-based products across our oil & gas, power, petrochem, projects and solar portals.
8In the coming months, we will strengthen these products to a point where we become the one-stop shop for you.
8Please click on our Products & Services button on the main bar of the website to know more of what we have to offer.
8Also go to Sectors to find out more on our coverage of different industrial segments. Details
8In this period, we have launched nearly 200 news, research and software-based products across our oil & gas, power, petrochem, projects and solar portals.
8In the coming months, we will strengthen these products to a point where we become the one-stop shop for you.
8Please click on our Products & Services button on the main bar of the website to know more of what we have to offer.
8Also go to Sectors to find out more on our coverage of different industrial segments. Details
For reference purposes the website carries here the following tenders:
8Dismantling of Old Coke Chambers along with Allied Facilities at Delayed Coking Unit of Guwahati Refinery Details
8EOI for SCADA systems as well as ERP system for revamp of ONGC's existing three tier SCADA system Details
8Supply of Temparature Transmitter with Universal Input Details
8Procurement of Christmas Tree Assembly, Assam Details
8Hiring the services of Maintenance Services for OIL's OFC under PS1 sector, Assam Details
8Procurement of Dry Chemical Powder Pot-Urea Based, Assam Details
8Procurement of Ethylene Glycol Monobutyl Ether, Assam Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8ONGC Videsh hopeful it won’t have to meet Rs 6,100 crore tax demand Details
8IOC, GAIL to ink pact to take 49% stake in Adani project Details
8Oil prices up ahead of US stockpiles data, Fed meeting Details
8India wants to add UAE, Saudi oil for strategic reserve Details
8CCEA approves city gas distribution in Kolkata Details
8Cabinet approves capital grant to GAIL for development of gas infrastructure in eastern India Details
8India's government backs gas pipeline build Details
8IOC eyes entire GSPC stake in Mundra LNG terminal Details
You can also click on Newsclips for more Details
8Dismantling of Old Coke Chambers along with Allied Facilities at Delayed Coking Unit of Guwahati Refinery Details
8EOI for SCADA systems as well as ERP system for revamp of ONGC's existing three tier SCADA system Details
8Supply of Temparature Transmitter with Universal Input Details
8Procurement of Christmas Tree Assembly, Assam Details
8Hiring the services of Maintenance Services for OIL's OFC under PS1 sector, Assam Details
8Procurement of Dry Chemical Powder Pot-Urea Based, Assam Details
8Procurement of Ethylene Glycol Monobutyl Ether, Assam Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8ONGC Videsh hopeful it won’t have to meet Rs 6,100 crore tax demand Details
8IOC, GAIL to ink pact to take 49% stake in Adani project Details
8Oil prices up ahead of US stockpiles data, Fed meeting Details
8India wants to add UAE, Saudi oil for strategic reserve Details
8CCEA approves city gas distribution in Kolkata Details
8Cabinet approves capital grant to GAIL for development of gas infrastructure in eastern India Details
8India's government backs gas pipeline build Details
8IOC eyes entire GSPC stake in Mundra LNG terminal Details
You can also click on Newsclips for more Details
Is it still possible for RIL-BP and ONGC to collaborate on sharing infrastructure for their KG Basin developments?
8At this juncture, the answers seems to be a firm 'no'.
8ONGC is pursuing its own KG-DWN-98/2 development even through RIL-BP's infrastructure is conveniently located.
8There was some movement initially for sharing of common infrastructure but the proposal was dropped later.
8Both will now have to wait it out for ONGC's planned infrastructure to come up and then wait to see if there can be some kind of collaboration in the future.
8Increasingly, however, global consultants are now speaking in terms of modular structures, intelligent well completions, online controls and sharing of infrastructure as a way to keep costs low.
8The website had propagated before that the KG basin, including the GSPC block, has a large volume of gas, and a common government sponsored approach to develop the area can lead to a lot of economies of scale.
8There legacy problems between the two parties as well as concern over sharing of facilities and how to work out the issues that will emerge as a consequence have stymied the hammering out of a common approach so far.
Click on Reports for more Details
8At this juncture, the answers seems to be a firm 'no'.
8ONGC is pursuing its own KG-DWN-98/2 development even through RIL-BP's infrastructure is conveniently located.
8There was some movement initially for sharing of common infrastructure but the proposal was dropped later.
8Both will now have to wait it out for ONGC's planned infrastructure to come up and then wait to see if there can be some kind of collaboration in the future.
8Increasingly, however, global consultants are now speaking in terms of modular structures, intelligent well completions, online controls and sharing of infrastructure as a way to keep costs low.
8The website had propagated before that the KG basin, including the GSPC block, has a large volume of gas, and a common government sponsored approach to develop the area can lead to a lot of economies of scale.
8There legacy problems between the two parties as well as concern over sharing of facilities and how to work out the issues that will emerge as a consequence have stymied the hammering out of a common approach so far.
Click on Reports for more Details
The fact that the L-2 bidder in ONGC's 600 feet anchor moored rig tender quoted a significantly higher day rate than Transocean's rig, the Aban Bates, is indicative of how an astute rig supplier can outfox a competitor.
8The fact that Vantage Drilling's day rate was so much higher than that of Transocean is an indication of how rig suppliers can misread the current market trends.
8That Vantage also had to load the bid with a $ 7 million mobilization fee, pushed the effective day rate even higher.
8This time around, rig suppliers will have to be more circumspect.
8Filling in a bid is a tedious exercise and if the economics do not work out, then it is better to stay out of the current tender
Click on Reports for more Details
8The fact that Vantage Drilling's day rate was so much higher than that of Transocean is an indication of how rig suppliers can misread the current market trends.
8That Vantage also had to load the bid with a $ 7 million mobilization fee, pushed the effective day rate even higher.
8This time around, rig suppliers will have to be more circumspect.
8Filling in a bid is a tedious exercise and if the economics do not work out, then it is better to stay out of the current tender
Click on Reports for more Details
Hard decisions will have to be taken by the rig owners on the pricing matrix to be used against ONGC's rig tender.
8Given the current scenario, it may not be possible for rig suppliers to look for rates that provide positive margins in relation to overall cost.
8If the operating cost is covered and some elements of fixed costs are compensated, it should be good enough.
8In this context, the detailed rates elicited in ONGC's last tender will be a useful benchmark.
8Suppliers will have to work backwards to see if these rates make economic sense and how far lower, if at all, is it possible to go.
8For suppliers, rig economics have to work backwards for this particular tender.
Click Details for more Details
8Given the current scenario, it may not be possible for rig suppliers to look for rates that provide positive margins in relation to overall cost.
8If the operating cost is covered and some elements of fixed costs are compensated, it should be good enough.
8In this context, the detailed rates elicited in ONGC's last tender will be a useful benchmark.
8Suppliers will have to work backwards to see if these rates make economic sense and how far lower, if at all, is it possible to go.
8For suppliers, rig economics have to work backwards for this particular tender.
Click Details for more Details
The race has begun among rig suppliers for ONGC's tender for DP and anchor-moored rigs which are needed for the company $ 5 billion development of the KG-DWN-98/2 block.
8Clearly, all suppliers will have to take into account the rates which were elicited in the previous tender.
8The last tender clearly set the benchmark for low rig rates for DP and anchor moored rigs for ONGC and the company brass interviewed by this website is now confident that rates will remain at around these levels.
8Given that the rig market continues to remain wobbly, rig rates are in fact likely to be punishingly low from the suppliers point of view.
8The website carries here a highly useful excel sheet providing disaggregated rig rates for all ONGC offshore rigs
8It will be a useful guide for any rig supplier seriously contending for the tender
Click on Details for more Details
8Clearly, all suppliers will have to take into account the rates which were elicited in the previous tender.
8The last tender clearly set the benchmark for low rig rates for DP and anchor moored rigs for ONGC and the company brass interviewed by this website is now confident that rates will remain at around these levels.
8Given that the rig market continues to remain wobbly, rig rates are in fact likely to be punishingly low from the suppliers point of view.
8The website carries here a highly useful excel sheet providing disaggregated rig rates for all ONGC offshore rigs
8It will be a useful guide for any rig supplier seriously contending for the tender
Click on Details for more Details
The PNGRB has dismissed a review petition of a claimant to a Geographical Area on the ground that the numbers in his bid were rounded off to the nearest decimal figures in violation of what the rules said.
8The regulator has also rejected the plea of the party that some elements of the bid, including gas charges, were unintentionally filled in wrongly.
8The petitioner's argument that it was the sole bidder for the GA and therefore deserved a review also did not find favour with the PBRGB
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8The regulator has also rejected the plea of the party that some elements of the bid, including gas charges, were unintentionally filled in wrongly.
8The petitioner's argument that it was the sole bidder for the GA and therefore deserved a review also did not find favour with the PBRGB
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In a direction that will have a significantly adverse impact on buyers of gas, the PNGRB has ruled that buyers will necessarily have to deal with the authorized entity in a geographical area for supply of gas even if the entity does not have a gas delivery infrastructure.
8In a recent case, where a buyer was receiving gas supply from the operator of a neighbouring GA with a well developed delivery infrastructure, the PNGRB has ruled that the buyer will now have to deal with the newly authorized entity in the GA in which it is stationed.
8The buyer had complained to the regulator that the new operator is now intending to supply gas but only after pocketing a hefty premium and a high interest free security deposit.
8The PNGRB has ruled that the buyer and seller can negotiate a better rate but the neigbouring operator will have no locus standi in this case even if he has the delivery infrastructure and sells gas at a cheaper rate.
8The petitioner had sought directions from the PNGRB that the delivery of gas from the neighbouring operator be continued until the new operator sets up his delivery facilities.
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8In a recent case, where a buyer was receiving gas supply from the operator of a neighbouring GA with a well developed delivery infrastructure, the PNGRB has ruled that the buyer will now have to deal with the newly authorized entity in the GA in which it is stationed.
8The buyer had complained to the regulator that the new operator is now intending to supply gas but only after pocketing a hefty premium and a high interest free security deposit.
8The PNGRB has ruled that the buyer and seller can negotiate a better rate but the neigbouring operator will have no locus standi in this case even if he has the delivery infrastructure and sells gas at a cheaper rate.
8The petitioner had sought directions from the PNGRB that the delivery of gas from the neighbouring operator be continued until the new operator sets up his delivery facilities.
Click on Reports for more Details
In the previous ONGC tender, both for the DP and the 600 feet anchor moored variety, competitors were surprised by how low the rates dipped.
8The Aban Abraham rig price against the DP category came at a really low pitch.
8Not just the rig operating rate but the non-operating, equipment breakdown and rig movement rates were also kept low.
8The mobilization fee was also pitched lower.
8The market thought that Aban quoted a "distressed rate".
Click on Details to know more. Details
8The Aban Abraham rig price against the DP category came at a really low pitch.
8Not just the rig operating rate but the non-operating, equipment breakdown and rig movement rates were also kept low.
8The mobilization fee was also pitched lower.
8The market thought that Aban quoted a "distressed rate".
Click on Details to know more. Details
For reference purposes the website carries here the following tenders:
8Supply of Hydrocarbon Analyzers, Mathura Refinery Details
8AMC of Chemtrols make Process Gas Analyzers of BXP & MSQ units of Barauni Refinery Details
8Maintenance Services for Utilities System of KG-OSN-2001/3 Block Details
8Providing Pipeline Information Management System service for Jaipur Panipat Naptha Pipeline Details
8Carrying out EIA & RA study for Branch Pipeline from Panipat Ambala Jalandhar Pipeline to Una Details
8Supply of Release Agent for Sulphur Pelletizer Unit Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Delays cost energy projects Rs 71,000 crore Details
8BP plc sells 8.53% stake in Castrol India, holds 51% Details
8India’s oil imports hit record as gasoline demand booms Details
8Indian Oil and Gail to get stake in Adani LNG terminal Details
8India set to buy Iran oil for emergency reserves - sources Details
8ONGC Videsh slapped with service tax demand of Rs 6,100 crore Details
8Oil prices gain on OPEC deal expectation Details
8Industry committed to meet BS VI emission norms: SIAM Details
8Coal's cost advantage over LNG slipping, but not yet enough: Russel Details
8ONGC’s Kutch offshore block to start gas production after a year Details
8India to hold global energy ministerial meet in 2018 Details
8Oil drops with producers' meeting, US data on horizon Details
You can also click on Newsclips for more Details
8Supply of Hydrocarbon Analyzers, Mathura Refinery Details
8AMC of Chemtrols make Process Gas Analyzers of BXP & MSQ units of Barauni Refinery Details
8Maintenance Services for Utilities System of KG-OSN-2001/3 Block Details
8Providing Pipeline Information Management System service for Jaipur Panipat Naptha Pipeline Details
8Carrying out EIA & RA study for Branch Pipeline from Panipat Ambala Jalandhar Pipeline to Una Details
8Supply of Release Agent for Sulphur Pelletizer Unit Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Delays cost energy projects Rs 71,000 crore Details
8BP plc sells 8.53% stake in Castrol India, holds 51% Details
8India’s oil imports hit record as gasoline demand booms Details
8Indian Oil and Gail to get stake in Adani LNG terminal Details
8India set to buy Iran oil for emergency reserves - sources Details
8ONGC Videsh slapped with service tax demand of Rs 6,100 crore Details
8Oil prices gain on OPEC deal expectation Details
8Industry committed to meet BS VI emission norms: SIAM Details
8Coal's cost advantage over LNG slipping, but not yet enough: Russel Details
8ONGC’s Kutch offshore block to start gas production after a year Details
8India to hold global energy ministerial meet in 2018 Details
8Oil drops with producers' meeting, US data on horizon Details
You can also click on Newsclips for more Details
Furious attempts by the Middle East to increase production of value added products will continue to keep refinery margins under pressure worldwide in the foreseeable future.
8Increases in gasoline, diesel, jet fuel and fuel oil production in the region will keep global refining margins from mounting a significant recovery.
8In the next five years, large refinery and condensate splitter projects will be completed in Iran, Iraq, Kuwait, Saudi Arabia and the UAE, while Oman and Qatar will also add capacity.
8As a result, companies such as RIL will need to compete in new markets or against new players in traditional ones.
8The competition will continue to pressure margins and threaten operations at less competitive refineries.
Click on Reports for more Details
8Increases in gasoline, diesel, jet fuel and fuel oil production in the region will keep global refining margins from mounting a significant recovery.
8In the next five years, large refinery and condensate splitter projects will be completed in Iran, Iraq, Kuwait, Saudi Arabia and the UAE, while Oman and Qatar will also add capacity.
8As a result, companies such as RIL will need to compete in new markets or against new players in traditional ones.
8The competition will continue to pressure margins and threaten operations at less competitive refineries.
Click on Reports for more Details
It is time in water short India for refineries to use 100% wastewater onsite
8Technology is now available using solution combining membrane bio reactor technology with a high efficiency reverse osmosis (HERO) system to recycle and reuse wastewater.
8There are clear environmental spinoffs from adoption such processes: The use of freshwater goes down dramatically and by recycling 100% of its wastewater onsite, a refinery complex will significantly decrease volatile organic compound emissions from its wastewater ponds and reduce the associated nuisance odours.
Click on Reports for more Details
8Technology is now available using solution combining membrane bio reactor technology with a high efficiency reverse osmosis (HERO) system to recycle and reuse wastewater.
8There are clear environmental spinoffs from adoption such processes: The use of freshwater goes down dramatically and by recycling 100% of its wastewater onsite, a refinery complex will significantly decrease volatile organic compound emissions from its wastewater ponds and reduce the associated nuisance odours.
Click on Reports for more Details
Oil majors ExxonMobil and Saudi Aramco have individually developed new steam cracking processes that allow petrochemical producers to (more or less) skip the refining process when converting crude oil directly to light olefins.
8Incredibly, these new, groundbreaking processes have the potential to save operators up to US$200 per tonne of ethylene produced.
8This is a big improvement over naphtha cracking.
8The process begins by feeding a whole barrel of crude to a hydrocracking unit, which removes sulfur and shifts the boiling point curve toward lighter compounds. The gasoil and lighter products are sent to a traditional steam cracker, while the heavier products go to a proprietary deep fluid catalytic cracking (FCC) unit that maximises olefin output.
8Are Indian refiners keeping track?
Click on Reports for more Details
8Incredibly, these new, groundbreaking processes have the potential to save operators up to US$200 per tonne of ethylene produced.
8This is a big improvement over naphtha cracking.
8The process begins by feeding a whole barrel of crude to a hydrocracking unit, which removes sulfur and shifts the boiling point curve toward lighter compounds. The gasoil and lighter products are sent to a traditional steam cracker, while the heavier products go to a proprietary deep fluid catalytic cracking (FCC) unit that maximises olefin output.
8Are Indian refiners keeping track?
Click on Reports for more Details
At a time when restraint is demanded from global oil producers, the opposite seems to be happening.
8The Middle East is pumping in record volumes of crude.
8The biggest recent increases were from Kuwait and the UAE, which pumped at their highest levels ever.
8Output from Saudi Arabia held near an all-time high and production from Iran bumped up to 3.64 million b/d.
8Saudi Arabia’s vigorous production has allowed it to overtake the US and become the world’s largest oil producer again.
8All this does not augur well for oil prices
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8The Middle East is pumping in record volumes of crude.
8The biggest recent increases were from Kuwait and the UAE, which pumped at their highest levels ever.
8Output from Saudi Arabia held near an all-time high and production from Iran bumped up to 3.64 million b/d.
8Saudi Arabia’s vigorous production has allowed it to overtake the US and become the world’s largest oil producer again.
8All this does not augur well for oil prices
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Low demand growth in India -- as well as China, of course -- in recent months is now being blamed for oil prices staying down through all of 2016 and well into 2017.
8Wobbly demand from these countries has eased global demand by as much as 800,000 barrels per day in this year's third quarter.
8On the other hand, global oil production is still expanding.
8This means that supplies will outpace demand and global inventories will grow.
8Planners are at a loss to understand why POL demand has slowed down in India but there is expectation that it will pick up speed in the coming months, once the monsoons get over.
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8Wobbly demand from these countries has eased global demand by as much as 800,000 barrels per day in this year's third quarter.
8On the other hand, global oil production is still expanding.
8This means that supplies will outpace demand and global inventories will grow.
8Planners are at a loss to understand why POL demand has slowed down in India but there is expectation that it will pick up speed in the coming months, once the monsoons get over.
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ONGC had elicited a drop of up to 50% in prices in the tender for hiring of wireline, logging, perforation, well shuttle and TCP-DST services along with associated equipment for onshore and offshore activities.
8But, according to well placed sources, the three-year electro-logging and perforating tender for a total of 12 segments has not been awarded yet despite the fact the tender was opened on April 24, 2016.
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8But, according to well placed sources, the three-year electro-logging and perforating tender for a total of 12 segments has not been awarded yet despite the fact the tender was opened on April 24, 2016.
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ONGC has extended the contract with HLSA Ltd for TCP-DST Hostile Services on a nomination basis till the mega tender for wireline, logging, perforation and well shuttle and TCP-DST services was finalized.
8HLSA had the earlier contract but that expired in July 2016 and since services were required for ongoing drilling activities, ONGC found it prudent to extend the services till the finalization of the tender.
8It is also learnt that HLSA was the L-1 bidder for the new mega tender too, when it quotes rates that were 50% lower than its previous prices.
8Clearly, the market for such services have become competitive subsequent to global oil price slump.
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8HLSA had the earlier contract but that expired in July 2016 and since services were required for ongoing drilling activities, ONGC found it prudent to extend the services till the finalization of the tender.
8It is also learnt that HLSA was the L-1 bidder for the new mega tender too, when it quotes rates that were 50% lower than its previous prices.
8Clearly, the market for such services have become competitive subsequent to global oil price slump.
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Who are the key people handling the mega wireline, logging, perforation, well shuttle and TCP-DST services in ONGC?
8For business development managers, it is important to know the people behind these tenders in ONGC.
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8For business development managers, it is important to know the people behind these tenders in ONGC.
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For reference purposes the website carries here the following tenders:
8Procurement of Tubes for Re-Tubing of Heat Exchanger installed in LPG Unit, Pata Details
8Procurement of Strong Acid Cation Resin and Strong Base Anion Exchange Resin used in DM water plant, Assam Details
8Carrying out SCADA System works for Phulpur-Haldia Pipeline Project and Auriya-Phulpur section of VAPPL Project Details
8Providing Slickline & Bottom Hole Services on Callout basis Details
8Supply of Scale Inhibitor for KG-OSN-2001/3 Block Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Ludhiana petroleum dealers to observe silence for two minutes in the memory of martyred soldiers Details
8Indian Oil’s Rs 1.8 lakh crore capex would not impact credit profile: Fitch Details
8Jet fuel may grow on trees! Details
8Thyssenkrupp keen to bid for P75i to build diesel submarines Details
8GAIL may scrap tender for hiring LNG Vessels Details
8Oil up as Venezuela sees output deal, Libya suffers clashes Details
8BP to sell 8.5% in Castrol India for Rs 1,800 crore Details
8Oil prices up on Libya unrest, hopes for output deal Details
8Higher oil prices key for state-run oil producers Details
8Pradhan woos foreign investors to fund DSFs Details
8NGT asks govt to make its stand clear on shale gas exploration Details
8NRL Wax exported to Mexico Details
8Sri Lanka looks to Indian companies to help enhance oil refining capacity Details
8GST slippery on oil: Partial coverage would add to the complexities faced by the sector Details
You can also click on Newsclips for more Details
8Procurement of Tubes for Re-Tubing of Heat Exchanger installed in LPG Unit, Pata Details
8Procurement of Strong Acid Cation Resin and Strong Base Anion Exchange Resin used in DM water plant, Assam Details
8Carrying out SCADA System works for Phulpur-Haldia Pipeline Project and Auriya-Phulpur section of VAPPL Project Details
8Providing Slickline & Bottom Hole Services on Callout basis Details
8Supply of Scale Inhibitor for KG-OSN-2001/3 Block Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Ludhiana petroleum dealers to observe silence for two minutes in the memory of martyred soldiers Details
8Indian Oil’s Rs 1.8 lakh crore capex would not impact credit profile: Fitch Details
8Jet fuel may grow on trees! Details
8Thyssenkrupp keen to bid for P75i to build diesel submarines Details
8GAIL may scrap tender for hiring LNG Vessels Details
8Oil up as Venezuela sees output deal, Libya suffers clashes Details
8BP to sell 8.5% in Castrol India for Rs 1,800 crore Details
8Oil prices up on Libya unrest, hopes for output deal Details
8Higher oil prices key for state-run oil producers Details
8Pradhan woos foreign investors to fund DSFs Details
8NGT asks govt to make its stand clear on shale gas exploration Details
8NRL Wax exported to Mexico Details
8Sri Lanka looks to Indian companies to help enhance oil refining capacity Details
8GST slippery on oil: Partial coverage would add to the complexities faced by the sector Details
You can also click on Newsclips for more Details
The genset industry in the Middle East is still doing very well despite the slow down in the Middle East.
8Some Indian companies such as Kirloskars are active in the region, investing heavily in business development.
8The global market for diesel gensets is expected to reach $ 21.37 billion by 2022.
8The Middle East will still make up a good chunk of this market, growing at double digits.
8The website also carries here a detailed list of genset sellers in the Middle East, along with their addresses and telephone numbers, along with names of agents through which Indian manufacturers can tie up their marketing needs..
Click on Reports for more details Details
8Some Indian companies such as Kirloskars are active in the region, investing heavily in business development.
8The global market for diesel gensets is expected to reach $ 21.37 billion by 2022.
8The Middle East will still make up a good chunk of this market, growing at double digits.
8The website also carries here a detailed list of genset sellers in the Middle East, along with their addresses and telephone numbers, along with names of agents through which Indian manufacturers can tie up their marketing needs..
Click on Reports for more details Details
Kuwait is a country that ambitious Indian companies must keep an eye on.
8It was the only country in the Middle East which had approved $ 30 billion worth of projects in 10 months.
8These projects are now translating into RFQs.
8Total planned developments are worth an estimated US$123.6 billion.
8The construction budget is expected to grow at a CAGR of 6.44 per cent from 2016 to 2020,
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8It was the only country in the Middle East which had approved $ 30 billion worth of projects in 10 months.
8These projects are now translating into RFQs.
8Total planned developments are worth an estimated US$123.6 billion.
8The construction budget is expected to grow at a CAGR of 6.44 per cent from 2016 to 2020,
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For those Indian companies who are looking at expanding their footprint outside of India and into the Middle East, have a choice of as many as 23 relationship development meetings over the next two months.
For reference purposes, the website lists here the conferences on a range of subjects taking place in the Middle East in:
8Dubai
8Kuwait
8Tehran
8Istanbul
8Erbil
8Riyadh
8Jubail
8Dammam
Click on Reports for more Details
For reference purposes, the website lists here the conferences on a range of subjects taking place in the Middle East in:
8Dubai
8Kuwait
8Tehran
8Istanbul
8Erbil
8Riyadh
8Jubail
8Dammam
Click on Reports for more Details
Business development opportunity is available in Assam Petrochemicals Ltd
8The company is presently implementing a Rs 1000 crore new integrated methanol and acitic acid plant, along with a captive power plant
8Future plans are to produce more value added downstream products such as Vinyl Acetate Monomer (VAM), Poly Vinyl Acetate, Poly Vinyl Alcohol, Purified Terephthalic Acid, etc. in future.
8The company plans to benefit from the Modi government's Look East policy
Click on Annual Reports in the Database section of the website Details
8The company is presently implementing a Rs 1000 crore new integrated methanol and acitic acid plant, along with a captive power plant
8Future plans are to produce more value added downstream products such as Vinyl Acetate Monomer (VAM), Poly Vinyl Acetate, Poly Vinyl Alcohol, Purified Terephthalic Acid, etc. in future.
8The company plans to benefit from the Modi government's Look East policy
Click on Annual Reports in the Database section of the website Details
The roadshows taken out abroad by the petroleum ministry for the Discovered Small Field Bidding Round 2016 may not add up to much.
8The fields are too small to catch the eye of the big guns in the industry. What is more India is not really likely to be the destination for new E&P investments because of its poor prospectively.
8Other countries will get priority. It is possible that a couple of deepwater well in offshore Brazil will produce more oil than all the small fields put together.
8Nevertheless, the road shows provided the government the opportunity to showcase India as a country where reforms have indeed taken place under the Modi regime.
8For reference purposes, the website carries here two well illustrated presentations made at the roadshows, one on India's emerging prospects and the other on its fiscal and taxation regime, that will be of interest to our readers.
Click on Reports for more Details
8The fields are too small to catch the eye of the big guns in the industry. What is more India is not really likely to be the destination for new E&P investments because of its poor prospectively.
8Other countries will get priority. It is possible that a couple of deepwater well in offshore Brazil will produce more oil than all the small fields put together.
8Nevertheless, the road shows provided the government the opportunity to showcase India as a country where reforms have indeed taken place under the Modi regime.
8For reference purposes, the website carries here two well illustrated presentations made at the roadshows, one on India's emerging prospects and the other on its fiscal and taxation regime, that will be of interest to our readers.
Click on Reports for more Details
The latest indications from Petronet LNG Ltd is that it is still trying to go through with the Gangavaram LNG terminal
8The company claims that it has completed DFR, FEED and various other pre-project activities
8All approvals have been received
8Estimated project cost $ 750 million
8Negotiations are on for connectivity with the East-West, Mallavaram-Bhilwara and for other networks are also currently on.
8Talks are going on for customer tie-ups
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8The company claims that it has completed DFR, FEED and various other pre-project activities
8All approvals have been received
8Estimated project cost $ 750 million
8Negotiations are on for connectivity with the East-West, Mallavaram-Bhilwara and for other networks are also currently on.
8Talks are going on for customer tie-ups
Click on Reports for more Details
For reference purposes, the website carries here the latest gas pipeline network map of India
The data has details on:
8Existing pipelines
8Pipelines under construction
8Proposed pipelines
8Existing and proposed LNG terminals
Click on our Database button for more Details
The data has details on:
8Existing pipelines
8Pipelines under construction
8Proposed pipelines
8Existing and proposed LNG terminals
Click on our Database button for more Details
