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Oct 2016
When competition is absent among suppliers of RLNG and infrastructure pricing is opaque, it is difficult for buyers to figure out how RLNG pricing works through the system, starting from worldwide FOB prices and going down to local delivered prices.
8A comparison matrix of the kind offered now by this website has been found redundant so far as most buyers are faced with a take-it-or-leave it option from suppliers.
8The point to note now is that the website provides a low cost database for easy reference by buyers. Foreign prices databases from the likes of Platts are no doubt more exhaustive but are way too expensive in comparison.
8While prices are fixed and taken as given by the buyer, he can look up our pricing database to figure out where exactly he is placed at this point in time and how much lower prices could have been had monopolistic structures been broken down.
8The buyer will also be armed with adequate data to question the supplier on the delivered price that he is handed out
Click on our Prices button for more Details
8A comparison matrix of the kind offered now by this website has been found redundant so far as most buyers are faced with a take-it-or-leave it option from suppliers.
8The point to note now is that the website provides a low cost database for easy reference by buyers. Foreign prices databases from the likes of Platts are no doubt more exhaustive but are way too expensive in comparison.
8While prices are fixed and taken as given by the buyer, he can look up our pricing database to figure out where exactly he is placed at this point in time and how much lower prices could have been had monopolistic structures been broken down.
8The buyer will also be armed with adequate data to question the supplier on the delivered price that he is handed out
Click on our Prices button for more Details
The service contracts for ONGC's marginal fields under the earlier policy regime continue to fester on.
8A total of 25 fields were awarded for development on service contract in two phases, out of which, only one field is on production.
8Most of the contracts have been terminated as the ceiling price fixed by ONGC was found to be unviable to operate under.
8A cap on crude oil prices at unrealistic levels -- $26/bbl in first phase and $35/bbl in second phase of auctions -- rendered marginal field operations economically unviable
8Only handful of them -- six to be precise -- are currently still going through different stages of extension and they are still being given occasional extensions to keep them going.
8Find out what went wrong with ONGC's marginal fields policy
Click on Details for more Details
8A total of 25 fields were awarded for development on service contract in two phases, out of which, only one field is on production.
8Most of the contracts have been terminated as the ceiling price fixed by ONGC was found to be unviable to operate under.
8A cap on crude oil prices at unrealistic levels -- $26/bbl in first phase and $35/bbl in second phase of auctions -- rendered marginal field operations economically unviable
8Only handful of them -- six to be precise -- are currently still going through different stages of extension and they are still being given occasional extensions to keep them going.
8Find out what went wrong with ONGC's marginal fields policy
Click on Details for more Details
Existing contractors in the current clutch of marginal fields still trying to find a way to get on stream are an unhappy lot.
8Almost 10 years down the line, some of the service operators are yet to make a beginning whereas their assessment periods were for only two years at the time of signing of contract in 2007.
8A bunch of them have faltered at the land acquisition stage itself.
8Extensions are still being sought to acquire land to start drilling their wells in accordance with their work programmes which they were meant to come seven to eight years ago.
8All of the surviving fields were given a batch extension till September last year. As of now the contracts are in limbo.
8This one policy that has surely ended in failure.
Click on Details for more Details
8Almost 10 years down the line, some of the service operators are yet to make a beginning whereas their assessment periods were for only two years at the time of signing of contract in 2007.
8A bunch of them have faltered at the land acquisition stage itself.
8Extensions are still being sought to acquire land to start drilling their wells in accordance with their work programmes which they were meant to come seven to eight years ago.
8All of the surviving fields were given a batch extension till September last year. As of now the contracts are in limbo.
8This one policy that has surely ended in failure.
Click on Details for more Details
The new small field policy has plugged most of the loopholes in the earlier policy but it is still not going to be an easy route for new players willing to bid in the latest auction round.
8Even though the attendance was large in the road shows, the number of companies visiting the data rooms built by the DGH has been limited.
8"The point to note is that despite the brouhaha, the potential of these fields is limited, so the big names in the industry are not interested in them," a DGH source told this website.
8The data room has been set up with the help of Schlumberger where a potential investor can analyse the geological and well data before buying the data packages from the DGH.
8Dates for such viewing are easily available.
8What is more, the best of the small fields have not been put up for auction. "The best small fields have been retained by ONGC and OIL and the ones with smaller reserves have been carved out for the round," a geologist in OIL told this website.
8In any case the dynamics of the oil and gas industry has changed and it is unlikely that a Reliance or a Cairn Energy or even a Jubilant will ever be created again from out of investors in these fields.
8Then again, a retired chief geologist of ONGC told this website that most of the data in the fields has to be re-interpreted and new wells have to be drilled. "The cost-economics will be extremely challenging, and deep pockets and staying power will be needed to emerge successful," he said.
8The fields may be small but the investment needed will not be all that small.
8"There are just a handful of "plug and play" fields in the lot that has been offered, where the operator will only have to switch open the wells to get production. It will be a struggle to get most of the fields to produce a reasonable quantity of hydrocarbons," the chief geologist said.
Click on Reports for more Details
8Even though the attendance was large in the road shows, the number of companies visiting the data rooms built by the DGH has been limited.
8"The point to note is that despite the brouhaha, the potential of these fields is limited, so the big names in the industry are not interested in them," a DGH source told this website.
8The data room has been set up with the help of Schlumberger where a potential investor can analyse the geological and well data before buying the data packages from the DGH.
8Dates for such viewing are easily available.
8What is more, the best of the small fields have not been put up for auction. "The best small fields have been retained by ONGC and OIL and the ones with smaller reserves have been carved out for the round," a geologist in OIL told this website.
8In any case the dynamics of the oil and gas industry has changed and it is unlikely that a Reliance or a Cairn Energy or even a Jubilant will ever be created again from out of investors in these fields.
8Then again, a retired chief geologist of ONGC told this website that most of the data in the fields has to be re-interpreted and new wells have to be drilled. "The cost-economics will be extremely challenging, and deep pockets and staying power will be needed to emerge successful," he said.
8The fields may be small but the investment needed will not be all that small.
8"There are just a handful of "plug and play" fields in the lot that has been offered, where the operator will only have to switch open the wells to get production. It will be a struggle to get most of the fields to produce a reasonable quantity of hydrocarbons," the chief geologist said.
Click on Reports for more Details
There is a surprise winner of the EIL's tender for a lean gas compressor to be installed at ONGC's Hazira plant, according to well placed EIL sources.
8The lean gas compressor is meant to pump gas out of Hazira into the HBJ network and is meant to have a capacity of around 2.5 mmscmd.
8ONGC plans to gain additional annual revenues to the tune of Rs 100 crore out of additional LPG and naphtha production as a result
Click on Details for more
Details
8The lean gas compressor is meant to pump gas out of Hazira into the HBJ network and is meant to have a capacity of around 2.5 mmscmd.
8ONGC plans to gain additional annual revenues to the tune of Rs 100 crore out of additional LPG and naphtha production as a result
Click on Details for more
Details
The installation of a lean gas compressor in Hazira will entail a fair amount of business for local firms.
8But all of this will be handled by EIL as the turnkey contract for installation of the compressor has gone to the public sector engineering company.
8Find out how local firms stand to gain from the gas compressor order.
Click on Details for more Details
8But all of this will be handled by EIL as the turnkey contract for installation of the compressor has gone to the public sector engineering company.
8Find out how local firms stand to gain from the gas compressor order.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Dig Site verification and rectification of additional weld anomalies in pipelines under WRPL, Sendra Jurisdiction Details
8Annual Maintenance Contract for Mainline Pipe Repairs in Southern region Pipelines Details
8Transportation of Refinery Vessels from IOCL Nasik to IOCL, Haldia Refinery Details
8Corrigendum: Appointment of Project Management Consultancy services for Phulpur-Haldia Refinery Details
8Operations and Maintenance of Biogas Plant, Mumbai Refinery Details
8Carrying out comprehensive ROU Surveillance of pipelines, Mumbai Refinery Details
8Supply of Pigs and Pig Mandrels for various pipeline locations, Mumbai Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8No alarming situation due to rising oil prices in global market: Dharmendra Pradhan Details
8Petrol up Rs 1.34 a litre, diesel by Rs 2.37 Details
8India extends bidding deadline for small oil & gas fields by 3 weeks Details
8Government to cut energy import dependence by 10 per cent by 2022: Dharmendra Pradhan Details
8India, Russia eye fresh energy deals Details
8Rosneft-led consortium to buy Essar Oil Details
8India, Russia to study building USD 25 bn pipeline Details
8Russia's Gazprom sees new LNG deal with India's Gail in six months Details
8Rosneft-Essar deal not subject to sanctions: Russia's VTB head Details
8Iran to invite foreign companies to bidding on oil and gas Details
8Oil majors experiment with technology to weather crisis Details
8US firm to start urea plant in Chandrapur district: Nitin Gadkari Details
8Govt grants BP Plc licence to set up petrol pumps in India Details
8How much piped natural gas India consumes? Details
8Essar Oil deal will help cut 50% of group debt: Prashant Details
You can also click on Newsclips for more Details
8Dig Site verification and rectification of additional weld anomalies in pipelines under WRPL, Sendra Jurisdiction Details
8Annual Maintenance Contract for Mainline Pipe Repairs in Southern region Pipelines Details
8Transportation of Refinery Vessels from IOCL Nasik to IOCL, Haldia Refinery Details
8Corrigendum: Appointment of Project Management Consultancy services for Phulpur-Haldia Refinery Details
8Operations and Maintenance of Biogas Plant, Mumbai Refinery Details
8Carrying out comprehensive ROU Surveillance of pipelines, Mumbai Refinery Details
8Supply of Pigs and Pig Mandrels for various pipeline locations, Mumbai Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8No alarming situation due to rising oil prices in global market: Dharmendra Pradhan Details
8Petrol up Rs 1.34 a litre, diesel by Rs 2.37 Details
8India extends bidding deadline for small oil & gas fields by 3 weeks Details
8Government to cut energy import dependence by 10 per cent by 2022: Dharmendra Pradhan Details
8India, Russia eye fresh energy deals Details
8Rosneft-led consortium to buy Essar Oil Details
8India, Russia to study building USD 25 bn pipeline Details
8Russia's Gazprom sees new LNG deal with India's Gail in six months Details
8Rosneft-Essar deal not subject to sanctions: Russia's VTB head Details
8Iran to invite foreign companies to bidding on oil and gas Details
8Oil majors experiment with technology to weather crisis Details
8US firm to start urea plant in Chandrapur district: Nitin Gadkari Details
8Govt grants BP Plc licence to set up petrol pumps in India Details
8How much piped natural gas India consumes? Details
8Essar Oil deal will help cut 50% of group debt: Prashant Details
You can also click on Newsclips for more Details
The website carries here a recreation of how the world in 2060 is going to look like from the point of view of the energy sector.
8Globalization becomes more complex
8Disruptive technology can create and yet destroy jobs.
8Rapid decarbonization takes places but temperatures may continue to rise dangerously upwards
8While one 2060 scenario paints a rosy picture of the world, there are other more sinister scenarios possible, as this study points out
Click on Reports for more Details
8Globalization becomes more complex
8Disruptive technology can create and yet destroy jobs.
8Rapid decarbonization takes places but temperatures may continue to rise dangerously upwards
8While one 2060 scenario paints a rosy picture of the world, there are other more sinister scenarios possible, as this study points out
Click on Reports for more Details
The gross under-recoveries (GURs) of public sector oil marketing companies (OMCs) declined by 64% (YoY) to ~Rs. 274 billion (including cash reimbursement under DBTL) in FY2016 from Rs. 763 billion in FY2015 in line with lower Indian Basket crude prices at US$46/bbl in FY2016 against US$84/bbl in FY2015.
8GURs of oil marketing companies (OMCs) to decrease to ~Rs. 191 billion for FY2017 (estimated at the average Indian basket crude oil price of US$45/bbl and INR/US$ of 68 for FY2017).
8Indian Basket crude oil prices have largely remained around US$40-50/bbl over the last couple of months.
8Apart from lower crude oil prices, the GURs would fall due to the steps taken by the government like DBTL leading to cancellation of ~35 million fake accounts, surrender of LPG subsidy by ~10 million customers under the Give It Up campaign and gradual monthly increase in prices of kerosene and LPG.
8Any sharp recovery in crude oil prices and significant depreciation of Indian rupee vs the dollar would be the primary sensitivities for GURs.
8Further, the initiative to increase penetration of domestic LPG into rural areas could also lead to a pickup in consumption volumes of LPG consequently resulting in higher GURs for LPG.
Click on Reports for more Details
8GURs of oil marketing companies (OMCs) to decrease to ~Rs. 191 billion for FY2017 (estimated at the average Indian basket crude oil price of US$45/bbl and INR/US$ of 68 for FY2017).
8Indian Basket crude oil prices have largely remained around US$40-50/bbl over the last couple of months.
8Apart from lower crude oil prices, the GURs would fall due to the steps taken by the government like DBTL leading to cancellation of ~35 million fake accounts, surrender of LPG subsidy by ~10 million customers under the Give It Up campaign and gradual monthly increase in prices of kerosene and LPG.
8Any sharp recovery in crude oil prices and significant depreciation of Indian rupee vs the dollar would be the primary sensitivities for GURs.
8Further, the initiative to increase penetration of domestic LPG into rural areas could also lead to a pickup in consumption volumes of LPG consequently resulting in higher GURs for LPG.
Click on Reports for more Details
A comprehensive report suggests that it is unlikely that Asian importing economies will develop a gas hub anytime soon, let alone to a level of sophistication comparable with Henry Hub in
the United States, or NBP in the United Kingdom where wholesale spot natural gas prices will replace oil-indexed import pricing.
8Instead, what seems more likely for Asia is that spot LNG prices (i.e. international prices instead of domestic wholesale prices) will replace oil indexation.
Click on Reports for more Details
the United States, or NBP in the United Kingdom where wholesale spot natural gas prices will replace oil-indexed import pricing.
8Instead, what seems more likely for Asia is that spot LNG prices (i.e. international prices instead of domestic wholesale prices) will replace oil indexation.
Click on Reports for more Details
A subsidiary company need not even file a balance sheet anymore to be able to qualify in the ONGC bidding process, if it has the support of a strong parent company.
8This seems to be the offshoot of the Delhi High Court order that says that the main intent of ONGC is to ensure that the job at hand gets done and it should not quibble over technicalities.
8Well placed ONGC sources told this website that one bidder got away without even filing its balance sheet, claiming that in the country it is registered, there is no requirement for a balance sheet.
Click on Reports for more Details
8This seems to be the offshoot of the Delhi High Court order that says that the main intent of ONGC is to ensure that the job at hand gets done and it should not quibble over technicalities.
8Well placed ONGC sources told this website that one bidder got away without even filing its balance sheet, claiming that in the country it is registered, there is no requirement for a balance sheet.
Click on Reports for more Details
There is widespread cynicism in Asia on whether LNG assessments given by information services such as Platts and Argus will be able to gain sufficient confidence among LNG buyers and sellers in the US.
8With the expansion of spot LNG trade, Platts and Argus started to offer spot LNG assessment prices.
8Platts, the most recognized information provider, started publishing the JKM (Japan Korea Marker) assessment price in 2009.
8There is also an Indian index which is used as a benchmark for determining deepwater gas prices in India.
8But these assessments do not necessarily reflect the entirety of factors that represent demand and supply sources.
Click on Reports for more Details
8With the expansion of spot LNG trade, Platts and Argus started to offer spot LNG assessment prices.
8Platts, the most recognized information provider, started publishing the JKM (Japan Korea Marker) assessment price in 2009.
8There is also an Indian index which is used as a benchmark for determining deepwater gas prices in India.
8But these assessments do not necessarily reflect the entirety of factors that represent demand and supply sources.
Click on Reports for more Details
Companies will struggle to survive under the grand transition.
8Without diversification and review of business models, national and international oil and gas companies could struggle over the medium to long term. I
incentive-assisted renewable energy companies have created a boom in certain countries and regions. However, as incentives are decreased, some companies might not be viable anymore.
8Rare earth elements, metals used in especially renewable energies, create new dependencies in the value chain and could represent possible future barriers to growth.
8Change is at its slowest at the moment, but research identifies that technologies will change a lot quicker but the regulatory system is not keeping up, which may also become a barrier.
8Liberalised markets could reach their limit, as the lowest cost generation in the short term can be perceived to provide the highest value.
8Lack of new, expanded, upgraded and smart infrastructure can hinder new energy developments.
8Heat generation and cooling technologies are lagging behind in terms of innovation.
8Increased use of natural gas combined with decreased use of coal will see energy-associated carbon dioxide emissions from natural gas surpass those from coal.
8Failure to plan for replacement of decommissioned baseload power plants might pose a risk to energy reliability in some countries.
8All of this creates a highly dynamic context for the energy sector.
Click on Reports for more Details
8Without diversification and review of business models, national and international oil and gas companies could struggle over the medium to long term. I
incentive-assisted renewable energy companies have created a boom in certain countries and regions. However, as incentives are decreased, some companies might not be viable anymore.
8Rare earth elements, metals used in especially renewable energies, create new dependencies in the value chain and could represent possible future barriers to growth.
8Change is at its slowest at the moment, but research identifies that technologies will change a lot quicker but the regulatory system is not keeping up, which may also become a barrier.
8Liberalised markets could reach their limit, as the lowest cost generation in the short term can be perceived to provide the highest value.
8Lack of new, expanded, upgraded and smart infrastructure can hinder new energy developments.
8Heat generation and cooling technologies are lagging behind in terms of innovation.
8Increased use of natural gas combined with decreased use of coal will see energy-associated carbon dioxide emissions from natural gas surpass those from coal.
8Failure to plan for replacement of decommissioned baseload power plants might pose a risk to energy reliability in some countries.
8All of this creates a highly dynamic context for the energy sector.
Click on Reports for more Details
The website carries here details of what is being seen as a "grand transition" of the global energy markets.
8Since 1970, the world has seen rapid growth in energy demand, mainly satisfied by fossil fuels.
8The future will be different.
8Disruptive trends are emerging that will create a fundamentally new world for the energy industry, characterised by lower population growth, radical new technologies, greater environmental challenges, and a shift in economic and geopolitical power.
8These underlying drivers will re-shape the economics of energy.
8We call this uncertain journey into the new world of energy – The Grand Transition.
8In short, technology will drive the energy industry in the Grand Transition and the future will be different from how it has been in the past.
Click on Reports for more Details
8Since 1970, the world has seen rapid growth in energy demand, mainly satisfied by fossil fuels.
8The future will be different.
8Disruptive trends are emerging that will create a fundamentally new world for the energy industry, characterised by lower population growth, radical new technologies, greater environmental challenges, and a shift in economic and geopolitical power.
8These underlying drivers will re-shape the economics of energy.
8We call this uncertain journey into the new world of energy – The Grand Transition.
8In short, technology will drive the energy industry in the Grand Transition and the future will be different from how it has been in the past.
Click on Reports for more Details
A recent Delhi High Court judgment on the eligibility status of a subsidiary company when guaranteed by a parent company to bid for ONGC tenders has changed the bidding game in more way than one for the public sector E&P giant.
8ONGC will now have to junk the old paradigm and take cognizance of the High Court judgement.
8More flexibility will have to be worked into the system, and this will impact the tendering process in more ways than one.
8Find out how it is going to impact the tendering process of the company.
Click on Details for more Details
8ONGC will now have to junk the old paradigm and take cognizance of the High Court judgement.
8More flexibility will have to be worked into the system, and this will impact the tendering process in more ways than one.
8Find out how it is going to impact the tendering process of the company.
Click on Details for more Details
The High Court judgment is already changing the way business is getting done in ONGC
8In one tender, sources said, the bidder had qualified, even when it did not have a balance sheet.
8In two other tenders, one for drilling rigs and one for a seismic survey job, two rejected companies have come back to the fray.
Click on Details for more. Details
8In one tender, sources said, the bidder had qualified, even when it did not have a balance sheet.
8In two other tenders, one for drilling rigs and one for a seismic survey job, two rejected companies have come back to the fray.
Click on Details for more. Details
The High Court order has set the cat among the pigeons, thereby bringing in uncertainty on how to treat subsidiary companies from now onwards.
8It is learnt that the company is looking at a new set of conditions in the light of the court order.
8Since the earlier paradigm has changed, new rules are bound to be set.
Click on Details to find out more. Details
8It is learnt that the company is looking at a new set of conditions in the light of the court order.
8Since the earlier paradigm has changed, new rules are bound to be set.
Click on Details to find out more. Details
Heavy competitive bidding took place against the ONGC tender for 3D broadband seismic data acquisition in ONGC's offshore blocks of Mumbai High, Ratna R Series and Godavari fields.
8There were around 8 companies in the bid
8But eventually the competition narrowed down to the big four in the international seismic businsess.
Click on more to find out the companies who have qualified.
Details
8There were around 8 companies in the bid
8But eventually the competition narrowed down to the big four in the international seismic businsess.
Click on more to find out the companies who have qualified.
Details
For reference purposes the website carries here the following tenders:
8AMC for Testing and Calibration of Pressure Safety Valves, Maharashtra Region Details
8Laying of pipeline and conversion of non piggable to piggable pipeline, Cauvery Basin Details
8Project Management Consultancy Services for Small Pipeline Project and Inventory Creation Details
8Nitrogen purging of Baghsuri Ajmer section of Koyali to Mohanpura Pipeline Details
8Procurement of spare parts for Refinery Gas Analyzers Details
8Supply of Recycle Gas Compressors, Barauni Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8RIL's energy business cash flow to offset outgo on spectrum: S&P Details
8OPEC tries to build momentum for global oil freeze Details
8Oil prices fall on higher OPEC output, rise in U.S. crude stocks Details
8Kerosene Subsidy likely to decline 25% this Fiscal Year Details
8India aims to double LNG import capacity to 50 mn tonnes a yr Details
8Cabinet approves revision of ethanol price for supply to Public Sector Oil Marketing Companies Details
8BPCL plans to spend $6.8 billion on refinery expansion by 2022 Details
8Bidding for 67 discovered oil & gas fields extended till November 30 Details
8India eyes 15% natural gas share in energy mix in next 3-4 years: minister Details
8Rosneft, others to buy 98% of Essar Oil in $13bn deal Details
8OMCs are buying biodiesel to blend with regular diesel Details
8September quarter: refining firms’ earnings to decline sequentially Details
8India to promote LNG as fuel for vehicles: Pradhan Details
8India to eliminate emissions of super-greenhouse gases Details
8Oil production in ONGC’s onshore fields rises Details
You can also click on Newsclips for more Details
8AMC for Testing and Calibration of Pressure Safety Valves, Maharashtra Region Details
8Laying of pipeline and conversion of non piggable to piggable pipeline, Cauvery Basin Details
8Project Management Consultancy Services for Small Pipeline Project and Inventory Creation Details
8Nitrogen purging of Baghsuri Ajmer section of Koyali to Mohanpura Pipeline Details
8Procurement of spare parts for Refinery Gas Analyzers Details
8Supply of Recycle Gas Compressors, Barauni Refinery Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8RIL's energy business cash flow to offset outgo on spectrum: S&P Details
8OPEC tries to build momentum for global oil freeze Details
8Oil prices fall on higher OPEC output, rise in U.S. crude stocks Details
8Kerosene Subsidy likely to decline 25% this Fiscal Year Details
8India aims to double LNG import capacity to 50 mn tonnes a yr Details
8Cabinet approves revision of ethanol price for supply to Public Sector Oil Marketing Companies Details
8BPCL plans to spend $6.8 billion on refinery expansion by 2022 Details
8Bidding for 67 discovered oil & gas fields extended till November 30 Details
8India eyes 15% natural gas share in energy mix in next 3-4 years: minister Details
8Rosneft, others to buy 98% of Essar Oil in $13bn deal Details
8OMCs are buying biodiesel to blend with regular diesel Details
8September quarter: refining firms’ earnings to decline sequentially Details
8India to promote LNG as fuel for vehicles: Pradhan Details
8India to eliminate emissions of super-greenhouse gases Details
8Oil production in ONGC’s onshore fields rises Details
You can also click on Newsclips for more Details
Oct 13 : Rs 500 crore knocked off bottomlines of 9 Indian vessel suppliers-III: 36% cut in day rates
The highest cut in day rates in the latest round of cost cutting of charter hire rates was 36%, according to well informed industry sources.
8The cuts have varied depending upon what the last purchase price was.
8The oil price crash and a sharp fall in E&P capex eroded the day rates for vessels worldwide and this has had a rub-off impact on the Indian offshore vessel industry as well.
8Fresh tenders have witnessed L-1 prices coming down sharply.
Click on Details for more Details
8The cuts have varied depending upon what the last purchase price was.
8The oil price crash and a sharp fall in E&P capex eroded the day rates for vessels worldwide and this has had a rub-off impact on the Indian offshore vessel industry as well.
8Fresh tenders have witnessed L-1 prices coming down sharply.
Click on Details for more Details
For reference purposes, with the help of sources within the shipping industry, the website has calculated here the negative impact of the cut in day rates on a clutch of 10 Indian shipping companies.
8This is being done by calculating the cut in day rates against the number of vessels deployed by these companies.
8The Rs 500 crore loss is divided unequally among these shipping companies, depending upon the number of vessels deployed.
8A similar exercise to cut day rates was undertaken by ONGC for 24 vessels in an earlier cost cutting round. The impact of this exercise too on the bottom lines of shipping companies has been severe as well.
Click on Details for more Details
8This is being done by calculating the cut in day rates against the number of vessels deployed by these companies.
8The Rs 500 crore loss is divided unequally among these shipping companies, depending upon the number of vessels deployed.
8A similar exercise to cut day rates was undertaken by ONGC for 24 vessels in an earlier cost cutting round. The impact of this exercise too on the bottom lines of shipping companies has been severe as well.
Click on Details for more Details
ONGC has been able to knock off as much as Rs 500 crore from the bottom lines of Indian shipping companies by coercing a sharp cut in the day rates of 20 OSVs, AHTS and PSVs in recent months.
8The cuts in day rates have been nothing but dramatic.
8The new day rates will become effective soon after the one-year contract period gets over.
8Different vessels have different one-year expiry dates.
Click on Details for a list of companies which had given out their vessels on hire to ONGC and are now facing deep cuts in day rates. Details
8The cuts in day rates have been nothing but dramatic.
8The new day rates will become effective soon after the one-year contract period gets over.
8Different vessels have different one-year expiry dates.
Click on Details for a list of companies which had given out their vessels on hire to ONGC and are now facing deep cuts in day rates. Details
Should there be an age limit on all materials or component that go into the manufacture of an equipment such as a gas compressor or a sub-sea assembly?
8This was a question that was debated within ONGC
8Eventually, a surprise decision was taken that will impact suppliers of equipment to ONGC.
Click on Details for more Details
8This was a question that was debated within ONGC
8Eventually, a surprise decision was taken that will impact suppliers of equipment to ONGC.
Click on Details for more Details
Policy makers who want to better understand the global oil and gas market must take a deep look at the dramatic developments that are going on in the energy efficiency market.
8China is at the forefront of a global revolution in energy efficiency, scoring heavy gains in 2015. This in turn has gone a long way in sobering a demand-led increase in oil and gas prices.
8If the energy efficiency gains continue to accelerate in China, it will continue to keep global energy prices from rising steeply.
8When juxtaposed against China's efforts, India's deployment of resources on energy efficiency is puny. In fact, the focus has now shifted from China to India as the single largest mover for primary energy consumption.
8Several signs suggest that Total Final Energy consumption peaked in advanced countries in 2007 and is unlikely to return to those levels. In 2015, OECD consumption was approximately equal to that of 2002, despite economic growth of 23% over this period. This has implications for the oil and gas market.
8The point to note is that despite the big surge in energy effciency, the world is still not on track to keep its tryst with a 2% rise in global temperatures by the turn of the century.
8Much more needs to be done.
8For students of the Indian energy sector, the findings of this study are going to be of great interest.
Click on Reports for more Details
8China is at the forefront of a global revolution in energy efficiency, scoring heavy gains in 2015. This in turn has gone a long way in sobering a demand-led increase in oil and gas prices.
8If the energy efficiency gains continue to accelerate in China, it will continue to keep global energy prices from rising steeply.
8When juxtaposed against China's efforts, India's deployment of resources on energy efficiency is puny. In fact, the focus has now shifted from China to India as the single largest mover for primary energy consumption.
8Several signs suggest that Total Final Energy consumption peaked in advanced countries in 2007 and is unlikely to return to those levels. In 2015, OECD consumption was approximately equal to that of 2002, despite economic growth of 23% over this period. This has implications for the oil and gas market.
8The point to note is that despite the big surge in energy effciency, the world is still not on track to keep its tryst with a 2% rise in global temperatures by the turn of the century.
8Much more needs to be done.
8For students of the Indian energy sector, the findings of this study are going to be of great interest.
Click on Reports for more Details
ONGC has defined the scope of the FPSO in the following terms:
8Provision of a suitable storage hull of the required capacity (conversion or new build), together with mooring, offtake system and topsides facilities
8Develop and verify the design of the FPSO, applying industry standards as agreed with ONGC and obtaining required class and regulatory approvals;
8Engineer, procure, construct, assemble, mechanically complete, inshore commission, tow, transport, install, hook-up and offshore commission the hull, mooring, offtake system and topsides facilities and all related activities required to deliver and operate the completed facility;
8Complete commissioning and hydrocarbon start-up
8The contractor will operate the facility and such operation will include the production of hydrocarbons (via ONGC provided sub-sea facilities), the supply of appropriately trained personnel, ongoing operation, inspection and maintenance activities, and all other activities required to maintain the FPSO on a day-to-day basis.
8Maintaining the facility in Class and to ONGC-agreed requirements throughout its service life and in full compliance with all applicable subsequent requirements introduced by International legislation, National and Local legislation, Flag State and/or the Classification Society.
8De-commission and remove facility as/when required.
Click on Reports for more Details
8Provision of a suitable storage hull of the required capacity (conversion or new build), together with mooring, offtake system and topsides facilities
8Develop and verify the design of the FPSO, applying industry standards as agreed with ONGC and obtaining required class and regulatory approvals;
8Engineer, procure, construct, assemble, mechanically complete, inshore commission, tow, transport, install, hook-up and offshore commission the hull, mooring, offtake system and topsides facilities and all related activities required to deliver and operate the completed facility;
8Complete commissioning and hydrocarbon start-up
8The contractor will operate the facility and such operation will include the production of hydrocarbons (via ONGC provided sub-sea facilities), the supply of appropriately trained personnel, ongoing operation, inspection and maintenance activities, and all other activities required to maintain the FPSO on a day-to-day basis.
8Maintaining the facility in Class and to ONGC-agreed requirements throughout its service life and in full compliance with all applicable subsequent requirements introduced by International legislation, National and Local legislation, Flag State and/or the Classification Society.
8De-commission and remove facility as/when required.
Click on Reports for more Details
The other facilities in the $ 5 billion development plan where business development managers will have to get deeply involved in are:
8Subsea Wells (35 nos.): Cluster 2A (Oil) : 15 Oil Producers + 12 Water Injectors Cluster 2B (Gas) : 8 deep water gas wells
8Process Platform: One Process Platform with a LQ & Utility Platform in shallow water (100m water depth) both bridge connected to each other. Production capacity: 12.75
MMSCMD (Cluster 2B free gas).
8SPS + SURF (SPURF): Integrated scope of the SPS and SURF for the KG-DWN-98/2 Cluster II development includesengineering, procurement, fabrication, installation, hook-up, pre-commissioning of 35 subsea trees the associated subsea control system, infield umbilical, infield pipeline, manifolds and pipeline from different manifolds to FPSO and the platform. The scope also includes a gas export pipeline from the platform to the shore (involving the cluster 2B free gas + cluster 2A associated gas), a subsea pipeline from the FPSO to platform (Cluster 2A associated gas) and lean MEG pipelines between the onshore MEG plant and the platform/manifold and for rich MEG from platform to the onshore plant.
8Onshore MEG Plant: Located onshore at Odalarevu, Andhra Pradesh, the MEG regeneration capacity will be 2800 m3/day (17,500BPD) of rich MEG.
Click on Reports for more Details
8Subsea Wells (35 nos.): Cluster 2A (Oil) : 15 Oil Producers + 12 Water Injectors Cluster 2B (Gas) : 8 deep water gas wells
8Process Platform: One Process Platform with a LQ & Utility Platform in shallow water (100m water depth) both bridge connected to each other. Production capacity: 12.75
MMSCMD (Cluster 2B free gas).
8SPS + SURF (SPURF): Integrated scope of the SPS and SURF for the KG-DWN-98/2 Cluster II development includesengineering, procurement, fabrication, installation, hook-up, pre-commissioning of 35 subsea trees the associated subsea control system, infield umbilical, infield pipeline, manifolds and pipeline from different manifolds to FPSO and the platform. The scope also includes a gas export pipeline from the platform to the shore (involving the cluster 2B free gas + cluster 2A associated gas), a subsea pipeline from the FPSO to platform (Cluster 2A associated gas) and lean MEG pipelines between the onshore MEG plant and the platform/manifold and for rich MEG from platform to the onshore plant.
8Onshore MEG Plant: Located onshore at Odalarevu, Andhra Pradesh, the MEG regeneration capacity will be 2800 m3/day (17,500BPD) of rich MEG.
Click on Reports for more Details
ONGC has begun looking for an FPSO for its KG-DWN-98/2 field.
8An EOI has been sought, with an expected lease term of 9 years with an option of extending the lease by another 6 years.
The following are the basic details given by ONGC on the FPSO:
8Water Depth at FPSO : 413 metres
8Design Life of FPSO: 20 years
8Peak Production Rates: 14,300 m3/day (oil) (90,000 bpd), 3.8 mmscmd (gas) (135mmscfd), 4,770 m3/day (water) (30,000 bpd)
8Water Injection Rate: 9,455 m3/day (58,800 bpd)
8Gas Lift Rate: 2.27 mmscmd (80 mmscfd)
8Process System Uptime: 98% (goal is to avoid well shut-in)
8Flexible Riser Sizes 6 x 10" Production risers, 1 x 12" Gas export riser (110 ksc infield), 1x 10" Water Injection (94ksc @FPSO), 1x 8" lift gas (200 ksc @FPSO), 3 umbilicals
8Approximate Topsides: 25,000 MT
8Hull Crude Oil Storage Capacity excluding Slops: 1.26 mmbbl (useable) -- tandem offloading of Stabilized Crude Oil to an Aframax (Nominal case). Offloading to a Suezmax (Design criteria).
8Hull Tank Arrangement: Double hull required
8Mooring Arrangement Turret moored (Permanent Internal)
Click on Reports for more Details
8An EOI has been sought, with an expected lease term of 9 years with an option of extending the lease by another 6 years.
The following are the basic details given by ONGC on the FPSO:
8Water Depth at FPSO : 413 metres
8Design Life of FPSO: 20 years
8Peak Production Rates: 14,300 m3/day (oil) (90,000 bpd), 3.8 mmscmd (gas) (135mmscfd), 4,770 m3/day (water) (30,000 bpd)
8Water Injection Rate: 9,455 m3/day (58,800 bpd)
8Gas Lift Rate: 2.27 mmscmd (80 mmscfd)
8Process System Uptime: 98% (goal is to avoid well shut-in)
8Flexible Riser Sizes 6 x 10" Production risers, 1 x 12" Gas export riser (110 ksc infield), 1x 10" Water Injection (94ksc @FPSO), 1x 8" lift gas (200 ksc @FPSO), 3 umbilicals
8Approximate Topsides: 25,000 MT
8Hull Crude Oil Storage Capacity excluding Slops: 1.26 mmbbl (useable) -- tandem offloading of Stabilized Crude Oil to an Aframax (Nominal case). Offloading to a Suezmax (Design criteria).
8Hull Tank Arrangement: Double hull required
8Mooring Arrangement Turret moored (Permanent Internal)
Click on Reports for more Details
The following is the short term outlook on the Indian oil & gas industry:
8GRMs to remain flattish: Singapore complex GRMs recovered in September, leading to flat GRMs QoQ at US$ 5/bbl. However, the composition of product spreads changed in favour of middle and heavy distillates, implying that HPCL’s GRMs would be the most hit while IOCL’s could improve. RIL could report a slight decline in GRMs QoQ to US$ 10.5/bbl in the absence of heavy distillate production.
8Petrochemicals cracks to improve: The continued upcycle in petrochemicals is likely to benefit RIL, IOCL and GAIL. Polyester spreads have continued to improve, this time led by PX (+26% QoQ). Polymer spreads also stayed robust during the quarter.
8LNG consumption to surge: LNG imports are expected to surge by at least 11% QoQ to ~6.3mmt for Q2FY17E, driven by higher demand and commissioning of the incremental 5mmt Dahej re-gasification capacity in Sep’16. Imports data should therefore continue to improve in H2FY17. Overall, India’s gas consumption is expected to improve to 138mmscmd (+2% QoQ) in Q2FY17, driven by power and CGD sectors. PLNG, GAIL and IGL would be the key beneficiaries of this trend.
8Low prices a dampener for ONGC, OINL: OINL’s production should continue to improve in Q2FY17 (+3.4% YoY to 1.57mmtoe), primarily driven by higher gas production (+7% YoY). ONGC however would lag in production growth at 12.35mmtoe (+0.7% YoY) with the decline in oil production only partly made up for by higher gas production. Another 18% decline in gas prices from Oct’16 would spell doom for upstream PSUs, making gas production a loss-making proposition.
Click on Reports for more Details
8GRMs to remain flattish: Singapore complex GRMs recovered in September, leading to flat GRMs QoQ at US$ 5/bbl. However, the composition of product spreads changed in favour of middle and heavy distillates, implying that HPCL’s GRMs would be the most hit while IOCL’s could improve. RIL could report a slight decline in GRMs QoQ to US$ 10.5/bbl in the absence of heavy distillate production.
8Petrochemicals cracks to improve: The continued upcycle in petrochemicals is likely to benefit RIL, IOCL and GAIL. Polyester spreads have continued to improve, this time led by PX (+26% QoQ). Polymer spreads also stayed robust during the quarter.
8LNG consumption to surge: LNG imports are expected to surge by at least 11% QoQ to ~6.3mmt for Q2FY17E, driven by higher demand and commissioning of the incremental 5mmt Dahej re-gasification capacity in Sep’16. Imports data should therefore continue to improve in H2FY17. Overall, India’s gas consumption is expected to improve to 138mmscmd (+2% QoQ) in Q2FY17, driven by power and CGD sectors. PLNG, GAIL and IGL would be the key beneficiaries of this trend.
8Low prices a dampener for ONGC, OINL: OINL’s production should continue to improve in Q2FY17 (+3.4% YoY to 1.57mmtoe), primarily driven by higher gas production (+7% YoY). ONGC however would lag in production growth at 12.35mmtoe (+0.7% YoY) with the decline in oil production only partly made up for by higher gas production. Another 18% decline in gas prices from Oct’16 would spell doom for upstream PSUs, making gas production a loss-making proposition.
Click on Reports for more Details
ONGC is reported to have taken a decision on whether to allow or disallow the supply of any equipment which is more than one year old under a supply contract.
8Well placed ONGC sources told this website that there was no provision in the supply contract that debarred a company from supplying older equipment as new equipment.
Click on Details to find out what decision was eventually taken by ONGC. Details
8Well placed ONGC sources told this website that there was no provision in the supply contract that debarred a company from supplying older equipment as new equipment.
Click on Details to find out what decision was eventually taken by ONGC. Details
For reference purposes the website carries here the following tenders:
8Hiring of premises on lease basis for Warehouse, WSS Base and Logging Base Details
8Carrying out Civil works at Drill site NKAC in North Bank area Details
8Supply of Shell and Tube Heat Exchangers for VGO-HDT Unit, Gujarat Refinery Details
8Supply of Temparature Gauges for Thermowells for DHDS Unit, Gujarat Refinery Details
8Steam Trap Management and Optimization at RMP Units, Mumbai Refinery Details
8Carrying out Civil works at Drill site LMEN in North Bank area Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Indian Oil to lay India's longest LPG pipeline Details
8ONGC says wants to increase presence in Russia Details
8Saudi Arabia sees its oil reserves lasting another 70 years Details
8IL&FS wins Rs 162.58 crore Gail gas pipeline contract in Bihar Details
8Indian consortium led by Oil India eyes stake in Russia's Vankor cluster oilfields Details
8IndianOil felicitates employees and support staff for keeping Kashmir supplied Details
8India gets first Iranian oil parcel for emergency reserves Details
8OPEC says it raises oil output, despite deal to cut Details
8Dharmendra Pradhan launches Rs 5,000cr national seismic programme in Mahanadi Basin Details
8Rosneft deal: Billionaire Ruia brothers' stake in Essar Oil may fall below 10% Details
You can also click on Newsclips for more Details
8Hiring of premises on lease basis for Warehouse, WSS Base and Logging Base Details
8Carrying out Civil works at Drill site NKAC in North Bank area Details
8Supply of Shell and Tube Heat Exchangers for VGO-HDT Unit, Gujarat Refinery Details
8Supply of Temparature Gauges for Thermowells for DHDS Unit, Gujarat Refinery Details
8Steam Trap Management and Optimization at RMP Units, Mumbai Refinery Details
8Carrying out Civil works at Drill site LMEN in North Bank area Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Indian Oil to lay India's longest LPG pipeline Details
8ONGC says wants to increase presence in Russia Details
8Saudi Arabia sees its oil reserves lasting another 70 years Details
8IL&FS wins Rs 162.58 crore Gail gas pipeline contract in Bihar Details
8Indian consortium led by Oil India eyes stake in Russia's Vankor cluster oilfields Details
8IndianOil felicitates employees and support staff for keeping Kashmir supplied Details
8India gets first Iranian oil parcel for emergency reserves Details
8OPEC says it raises oil output, despite deal to cut Details
8Dharmendra Pradhan launches Rs 5,000cr national seismic programme in Mahanadi Basin Details
8Rosneft deal: Billionaire Ruia brothers' stake in Essar Oil may fall below 10% Details
You can also click on Newsclips for more Details
What India lacks is accurate data on domestic pricing of petroleum products.
8The market is not transparent. Discounts and premiums are rampant and accurate independent tabulation of prices is not available anywhere.
8Every company maintains its own internal database. Buyers are unaware of market prices.
8We are now putting together a price gathering infrastructure that will be able to provide you prices of key petroleum products in domestic demand hubs around the country, as well as FOB and landed prices.
8Over time, we will be able to give FOB, CFR prices from around the world as well as landed port prices and domestic delivered prices of the following petroleum products:
-- Naphtha
-- Fuel Oil
-- Domestic Gas
-- Butadiene
-- Diesel (Bulk)
-- Propane
-- Paraffin Wax
-- Bitumen
-- Base Oil
-- MTBE
8It will be a low cost database (unlike foreign databanks) and our emphasis will be on accuracy, to start with, rather than depth of the coverage
8Over time we will be able to provide prices from all major hubs around the country. Details
8The market is not transparent. Discounts and premiums are rampant and accurate independent tabulation of prices is not available anywhere.
8Every company maintains its own internal database. Buyers are unaware of market prices.
8We are now putting together a price gathering infrastructure that will be able to provide you prices of key petroleum products in domestic demand hubs around the country, as well as FOB and landed prices.
8Over time, we will be able to give FOB, CFR prices from around the world as well as landed port prices and domestic delivered prices of the following petroleum products:
-- Naphtha
-- Fuel Oil
-- Domestic Gas
-- Butadiene
-- Diesel (Bulk)
-- Propane
-- Paraffin Wax
-- Bitumen
-- Base Oil
-- MTBE
8It will be a low cost database (unlike foreign databanks) and our emphasis will be on accuracy, to start with, rather than depth of the coverage
8Over time we will be able to provide prices from all major hubs around the country. Details
The big advantage with projecting how oil and gas prices are going to behave is that you can always have two contrarian view points: either prices will go up or come down.
8The website has occasionally been told by its readers of taking a negative perspective on the subject. Most of our readers, who make a living out of the industry many of whom are adversely impacted by the oil price crash, want to look at a more bullish projection.
We carry here a well researched report that makes the following points:
8There will be a multi-year bullish upswing in the North American natural gas market.
8Storage surpluses have been effectively eliminated and the market will reset with the onset of winter.
8Likely looking at a more normal (colder than normal) winter.
8The US needs to get supply growing quickly to catch up with seasonal swing in demand and deal with domestic and export growth in 2017.
8Lack of sufficient supply growth could create an exceptionally tight market for winter and 2017 (when prices can reach $4/mmbtu).
8Demand growth components readily identifiable and moving ahead.
8Even more supply growth needed into 2018, keeping Henry Hub prices at $ 4/mmbtu. What is more, the supply upside could be held back by lack of sufficient pipe growth.
8The same projection claims that LNG landed prices will be around $ 7.32/mmbtu in 2017 and $ 7.98/mmbtu in 2017 in Asia.
8The report talks of a second demand wave coming into play by 2022, which will buoy gas prices.
8Happy reading to our viewers
Click on Reports for more Details
8The website has occasionally been told by its readers of taking a negative perspective on the subject. Most of our readers, who make a living out of the industry many of whom are adversely impacted by the oil price crash, want to look at a more bullish projection.
We carry here a well researched report that makes the following points:
8There will be a multi-year bullish upswing in the North American natural gas market.
8Storage surpluses have been effectively eliminated and the market will reset with the onset of winter.
8Likely looking at a more normal (colder than normal) winter.
8The US needs to get supply growing quickly to catch up with seasonal swing in demand and deal with domestic and export growth in 2017.
8Lack of sufficient supply growth could create an exceptionally tight market for winter and 2017 (when prices can reach $4/mmbtu).
8Demand growth components readily identifiable and moving ahead.
8Even more supply growth needed into 2018, keeping Henry Hub prices at $ 4/mmbtu. What is more, the supply upside could be held back by lack of sufficient pipe growth.
8The same projection claims that LNG landed prices will be around $ 7.32/mmbtu in 2017 and $ 7.98/mmbtu in 2017 in Asia.
8The report talks of a second demand wave coming into play by 2022, which will buoy gas prices.
8Happy reading to our viewers
Click on Reports for more Details
As part of our ongoing exercise to provide more value to our customers, we want to intensify our coverage of petroleum prices which are of relevance to our readers.
8It is now possible for our readers to elicit accurate FOB and CFR prices for LNG across the world from us but what we will provide is much more.
As we go along, we will provide you a low cost database of the following items in LNG pricing:
8FOB and CFR rates of LNG around the world
8Transshipment rates in Belgium and US
8Day rates for LNG carriers in the Pacific and Atlantic
8Landed rates of LNG in India
But we are not going to confine ourselves to just that.
8We are now putting together teams which will provide you the supplier-wise delivered price of LNG at different geographical locations in India.
8We will try and split up the price in terms of contract and spot rates as well.
8This will provide seamless pricing data starting from worldwide FOB and CFR rates, vessel rates, landed prices in India and delivered domestic prices.
8Lack of competition and monopoly pricing is what mark LNG prices in the Indian domestic market.
8We will follow an independent assessment methodology that will speak directly to the buyers of gas to provide you with an accurate picture of what goes on in this market. Details
8It is now possible for our readers to elicit accurate FOB and CFR prices for LNG across the world from us but what we will provide is much more.
As we go along, we will provide you a low cost database of the following items in LNG pricing:
8FOB and CFR rates of LNG around the world
8Transshipment rates in Belgium and US
8Day rates for LNG carriers in the Pacific and Atlantic
8Landed rates of LNG in India
But we are not going to confine ourselves to just that.
8We are now putting together teams which will provide you the supplier-wise delivered price of LNG at different geographical locations in India.
8We will try and split up the price in terms of contract and spot rates as well.
8This will provide seamless pricing data starting from worldwide FOB and CFR rates, vessel rates, landed prices in India and delivered domestic prices.
8Lack of competition and monopoly pricing is what mark LNG prices in the Indian domestic market.
8We will follow an independent assessment methodology that will speak directly to the buyers of gas to provide you with an accurate picture of what goes on in this market. Details
The website carries here details of paraffin wax prices both internationally and at Indian ports.
8Chinese and Japanese cargoes of varying quality have landed in India in the last few days.
8Grade 58/60 came in from China at $ 1109 per tonne while grade 125/130 originated from Japan and landed at Chennai at $ 1545 per tonne
8The website carries here for reference purposes, paraffin wax prices across the world.
Click on our Prices button Details
8Chinese and Japanese cargoes of varying quality have landed in India in the last few days.
8Grade 58/60 came in from China at $ 1109 per tonne while grade 125/130 originated from Japan and landed at Chennai at $ 1545 per tonne
8The website carries here for reference purposes, paraffin wax prices across the world.
Click on our Prices button Details
Offshore LSTK contractors who have to hire their own marine spreads may be keen to know who are the vessel owners providing low day hire rates.
8Their contracts require the hiring of OSVs and negotiating the hire rates down will help keep costs low in a competitive environment.
8Given that ONGC has been able to push down prices, one-on-one negotiations by LSTK contractors with vessel suppliers may push rates further down if vessels are available for deployment and are lying idle.
8Click on Details for more on who these vessels owners are, what their rates are and will they be willing to bring down rates further Details
8Their contracts require the hiring of OSVs and negotiating the hire rates down will help keep costs low in a competitive environment.
8Given that ONGC has been able to push down prices, one-on-one negotiations by LSTK contractors with vessel suppliers may push rates further down if vessels are available for deployment and are lying idle.
8Click on Details for more on who these vessels owners are, what their rates are and will they be willing to bring down rates further Details
Not every vessel owner falls in line with ONGC's take-it-or-leave-it offer to bring down prices.
8Most companies fall in line.
8But there are some who stand up and refuse to go along.
8Find out more about those who have cocked a snook at ONGC
Click on Details for more Details
8Most companies fall in line.
8But there are some who stand up and refuse to go along.
8Find out more about those who have cocked a snook at ONGC
Click on Details for more Details
ONGC is currently leaving no stone unturned to push equipment suppliers and service provides to bring down prices.
8Wherever there is a provision for revision of prices, the company is going about ruthlessly pushing down prices.
8The contract period is no longer sacrosanct
8ONGC is using every clause in the Letter of Award to coax, cajole and persuade equipment and service providers to lower prices
8What of course helps ONGC is that it is a buyers' market today for E&P equipment and services.
Click on Details for more Details
8Wherever there is a provision for revision of prices, the company is going about ruthlessly pushing down prices.
8The contract period is no longer sacrosanct
8ONGC is using every clause in the Letter of Award to coax, cajole and persuade equipment and service providers to lower prices
8What of course helps ONGC is that it is a buyers' market today for E&P equipment and services.
Click on Details for more Details
ABS Marine Services' lower offer for the re-hire of its 1500 DWT OSV is going to wipe out a large chunk of profits from out of vessel suppliers whose vessels in the similar category are on hire with ONGC.
8The OSV suppliers tried to group together under the aegis of the Indian National Ship Owners Association to bargain with ONGC.
8But the ONGC brass was not willing to listen to arguments that rates should not come down in order to protect the domestic industry.
8ONGC officials said that prices reached through competitive tenders are the best way to arrive at the least cost option for vessels.
8What really turned the tide was the fact that there were some vessel suppliers who were always willing to quote lower rates to grab contracts
Click on Details for more Details
8The OSV suppliers tried to group together under the aegis of the Indian National Ship Owners Association to bargain with ONGC.
8But the ONGC brass was not willing to listen to arguments that rates should not come down in order to protect the domestic industry.
8ONGC officials said that prices reached through competitive tenders are the best way to arrive at the least cost option for vessels.
8What really turned the tide was the fact that there were some vessel suppliers who were always willing to quote lower rates to grab contracts
Click on Details for more Details
A panic-driven cut offered by ABS Marine Services Ltd for the re-hire of its1500 DWT OSV, dubbed ABS Anokhi, has crashed the day rate of hire of 12 such vessels on contact with ONGC.
8ONGC is in the process of re-hiring its entire fleet of OSVs, PSVs and AHTHs to take advantage of the recent fall in prices of offshore vessels and equipments.
8"Anokhi had initially offered a smaller cut but then followed through with another offer that pushed the hire rate for its 1500 DWT vessel under contract with ONGC to an abysmally low rate",a miffed industry sources told this website.
8Find out more on why ABS Marine thought of reducing the price so far down when they could have got away with a higher rate and why industry sources are unhappy with the new price. Details
8ONGC is in the process of re-hiring its entire fleet of OSVs, PSVs and AHTHs to take advantage of the recent fall in prices of offshore vessels and equipments.
8"Anokhi had initially offered a smaller cut but then followed through with another offer that pushed the hire rate for its 1500 DWT vessel under contract with ONGC to an abysmally low rate",a miffed industry sources told this website.
8Find out more on why ABS Marine thought of reducing the price so far down when they could have got away with a higher rate and why industry sources are unhappy with the new price. Details
ABS Marine Services however has its own explanation on why it has cut the price of its 1500 DWT OSV by more than what was anticipated.
8A new tender was opening, where the price was expected to be low.
8Then again, the company did a comparison of comparative rates across other competiting classes of vessels
8Apparently, the calculations showed that the new price was what the equilibrium competitive price was in the market.
Click on Details for more Details
8A new tender was opening, where the price was expected to be low.
8Then again, the company did a comparison of comparative rates across other competiting classes of vessels
8Apparently, the calculations showed that the new price was what the equilibrium competitive price was in the market.
Click on Details for more Details
For reference purposes the website carries here the following tenders:
8Hiring of FPSO and associated Operation & maintenance Services for Project KG-DWN-98/2 Details
8Hiring the Services of Radial/Jet Drilling Services in 10 wells, Assam Details
8Hiring of Services for Drilling of Directional Wells in the states of Assam & Arunachal Pradesh Details
8Supply of Flow Couplings for KG-OSN-2001/3 Block Details
8Carrying out Civil works at Drill site in North Bank area Details
8Laying of Product Pipeline from Rajasthan to Haryana under JPNPL Project Details
8Procurement of Vessels, Digboi Details
8Supply of Solenoid Operated Valves, Paradip Refinery Details
8Procurement of spares for Gas Turbines Details
8Expression of Interest for Empanelment of Consultants for vetting of in-house cost estimates Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Centre to invest Rs 15,000 crore to expand Panipat refinery Details
8Cairn oil and gas output drops 4% in Q2 Details
8OVL to raise $900 mn bridge loan to finance Vankor buy Details
8GAIL places order for 345 km pipeline laying job Details
8Govt to part-finance GAIL's Rs 13,000-cr pipeline project Details
8Your petrol bill could go up next week as Indian basket tops $50 a barrel Details
8ONGC, Bhel say no to Bharat Pumps Details
8BP's Bob Dudley sees $55-70 oil in coming years Details
8Oil field auction date may be extended Details
You can also click on Newsclips for more Details
8Hiring of FPSO and associated Operation & maintenance Services for Project KG-DWN-98/2 Details
8Hiring the Services of Radial/Jet Drilling Services in 10 wells, Assam Details
8Hiring of Services for Drilling of Directional Wells in the states of Assam & Arunachal Pradesh Details
8Supply of Flow Couplings for KG-OSN-2001/3 Block Details
8Carrying out Civil works at Drill site in North Bank area Details
8Laying of Product Pipeline from Rajasthan to Haryana under JPNPL Project Details
8Procurement of Vessels, Digboi Details
8Supply of Solenoid Operated Valves, Paradip Refinery Details
8Procurement of spares for Gas Turbines Details
8Expression of Interest for Empanelment of Consultants for vetting of in-house cost estimates Details
You can also click on Tenders for more
For reference purposes the website carries here the following Newsclips:
8Centre to invest Rs 15,000 crore to expand Panipat refinery Details
8Cairn oil and gas output drops 4% in Q2 Details
8OVL to raise $900 mn bridge loan to finance Vankor buy Details
8GAIL places order for 345 km pipeline laying job Details
8Govt to part-finance GAIL's Rs 13,000-cr pipeline project Details
8Your petrol bill could go up next week as Indian basket tops $50 a barrel Details
8ONGC, Bhel say no to Bharat Pumps Details
8BP's Bob Dudley sees $55-70 oil in coming years Details
8Oil field auction date may be extended Details
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For reference purposes, the website carries here a year-wise LNG 20-year demand-supply scenario built by renowned consultant Wood Mackenzie for reference purposes.
8The data is given until the year 2035
8The consultant forecasts a demand surge beginning from 2021 onwards which will cause a demand-supply imbalance.
8The surge in demand takes place even as Henry Hub prices remain low in the long run.
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8The data is given until the year 2035
8The consultant forecasts a demand surge beginning from 2021 onwards which will cause a demand-supply imbalance.
8The surge in demand takes place even as Henry Hub prices remain low in the long run.
Click on Reports for more Details
The website carries here a detailed analysis of what is termed as the Best Available Technology for LNG liquefaction plants.
The following are the salient features:
8Mid-scale compact modular design
8Mixed refrigerant pre-cooled by the Ammonia (NH3)
8Dual drive “2-in-1” configuration
8Ammonia’s superior thermodynamic qualities in closed-loop configuration
8Driver selection & use of combined cycle power
8Gas turbine inlet air cooling
8Low pressure boil-off gas (BOG) re-liquefaction
8Highly efficient fuel gas consumption
The following are the benefits of the new technology:
8Lower overall emissions
8Minimal flaring
8High reliability of a dual drive configuration allows for Independent, parallel refrigerant circuits mitigate impact of planned / unplanned outages
Click on Reports for more Details
The following are the salient features:
8Mid-scale compact modular design
8Mixed refrigerant pre-cooled by the Ammonia (NH3)
8Dual drive “2-in-1” configuration
8Ammonia’s superior thermodynamic qualities in closed-loop configuration
8Driver selection & use of combined cycle power
8Gas turbine inlet air cooling
8Low pressure boil-off gas (BOG) re-liquefaction
8Highly efficient fuel gas consumption
The following are the benefits of the new technology:
8Lower overall emissions
8Minimal flaring
8High reliability of a dual drive configuration allows for Independent, parallel refrigerant circuits mitigate impact of planned / unplanned outages
Click on Reports for more Details
The medium to long term landed LNG price calculations are not going to be a linear equation involving a fixed $3/mmbtu cost, to which the freight element is added.
8Liquefaction capex is expected to fall sharply.
8The Best Available Technology (BAT) already allows for a 35% cut in capex cost from today's average cost.
8Then again, the BAT for operating cost ratio for a liquefaction plant -- measured in terms of gas consumption per unit of LNG produced -- is already down from 1.75 for nitrogen expansion systems to just 1.
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8Liquefaction capex is expected to fall sharply.
8The Best Available Technology (BAT) already allows for a 35% cut in capex cost from today's average cost.
8Then again, the BAT for operating cost ratio for a liquefaction plant -- measured in terms of gas consumption per unit of LNG produced -- is already down from 1.75 for nitrogen expansion systems to just 1.
Click on Reports for more Details
A new set of data seem to shows that more than 800 TCF of shale gas can be produced at a break-even Henry Hub price of $3/mmbt or less.
8This seems to imply that the long term EIA projection of an increase in gas price to the range of around $ 5/mmbtu between 2025 and 2040 will be belied.
8Instead long price is going to hang around $3.50-$4/mmbtu, according to this analysis.
8These new calculations will have to be taken into account by offshore gas producers in India while trying to work out their own cost estimates.
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8This seems to imply that the long term EIA projection of an increase in gas price to the range of around $ 5/mmbtu between 2025 and 2040 will be belied.
8Instead long price is going to hang around $3.50-$4/mmbtu, according to this analysis.
8These new calculations will have to be taken into account by offshore gas producers in India while trying to work out their own cost estimates.
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The Indian seismic industry is undergoing a massive boom following the government's attempt to boost indigenous oil and gas production.
8This follows the petroleum ministry National Seismic Programme which calls for obtaining data of unappraised national spaces estimated at around 50% of India's sedimentary basins.
8The ‘multi-client non-exclusive’ surveys through which global companies can analyse and collect seismic data at their cost and subsequently market the data to potential investors can be another shot-in-the-arm for the industry.
8Rough estimates are that around 64 tcf of recoverable reserves of gas are yet to be found.
8This is over and above shale gas reserves that India is also likely to hold, estimates for which vary wildly
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8This follows the petroleum ministry National Seismic Programme which calls for obtaining data of unappraised national spaces estimated at around 50% of India's sedimentary basins.
8The ‘multi-client non-exclusive’ surveys through which global companies can analyse and collect seismic data at their cost and subsequently market the data to potential investors can be another shot-in-the-arm for the industry.
8Rough estimates are that around 64 tcf of recoverable reserves of gas are yet to be found.
8This is over and above shale gas reserves that India is also likely to hold, estimates for which vary wildly
Click on Reports for more Details
Meanwhile, well placed sources said that Alpha Geo has rejected a proposal for 2D seismic data acquisition after the DGH revised the quantum of data to be collected.
8The tendered quantum higher than what was sought to be awarded.
8Alpha Geo, the L-1 contractor, decided to walk away, claiming that the same cost economics will not hold since the quantum of data to be acquired has been tweaked downwards.
8The job is now being retendered.
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8The tendered quantum higher than what was sought to be awarded.
8Alpha Geo, the L-1 contractor, decided to walk away, claiming that the same cost economics will not hold since the quantum of data to be acquired has been tweaked downwards.
8The job is now being retendered.
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Indian seismic company, Hyderabad-based Alphageo is riding high on fresh orders.
8In 2015-16, Alpha Geo received the largest single seismic service order for Rs 242 crore from ONGC in its existence.
8In March 2016, the company also got an order for Rs 102 crore from Oil India Ltd
8In June 2016, Alpha Geo received another set of orders aggregating Rs 1482 crore. This was possibly the largest ever set of orders awarded to any seismic survey company in India. And arguably among the largest 2D seismic survey assignments (29265 line kms) awarded anywhere in the world to a single company.
8Find out more on how the company is dealing with this massive rush of orders.
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8In 2015-16, Alpha Geo received the largest single seismic service order for Rs 242 crore from ONGC in its existence.
8In March 2016, the company also got an order for Rs 102 crore from Oil India Ltd
8In June 2016, Alpha Geo received another set of orders aggregating Rs 1482 crore. This was possibly the largest ever set of orders awarded to any seismic survey company in India. And arguably among the largest 2D seismic survey assignments (29265 line kms) awarded anywhere in the world to a single company.
8Find out more on how the company is dealing with this massive rush of orders.
Click on Reports for more Details
