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Dec 2015
The website also carries here a wealth of information on the gas sector that will be useful for those who are interested in this segment. The data includes:
8India's demand-supply balance
8Competitiveness of pipelines in comparison with other avenues of delivering gas over long distances
8World regional gas price behaviour
8Worldwide landed LNG prices in 2013 and 2015
8Worldwide detailed LNG imports in 2014
8Disaggregated worldwide gas import data for 2014
8European LNG premium over pipelines in 2015
8The reconnaissance survey map for the deepwater pipeline
8Indus fan characteristics in the Arabian Sea where the pipeline will traverse
8Details of deepwater and long distance pipelines with emergency repair systems
8Activities already completed for the deepwater pipeline
8Current and planned work on the pipeline
8Deepwater project development schedule
8Indicative project cost disaggregated into different pipeline segments and project components
Click on Reports for more Details
8India's demand-supply balance
8Competitiveness of pipelines in comparison with other avenues of delivering gas over long distances
8World regional gas price behaviour
8Worldwide landed LNG prices in 2013 and 2015
8Worldwide detailed LNG imports in 2014
8Disaggregated worldwide gas import data for 2014
8European LNG premium over pipelines in 2015
8The reconnaissance survey map for the deepwater pipeline
8Indus fan characteristics in the Arabian Sea where the pipeline will traverse
8Details of deepwater and long distance pipelines with emergency repair systems
8Activities already completed for the deepwater pipeline
8Current and planned work on the pipeline
8Deepwater project development schedule
8Indicative project cost disaggregated into different pipeline segments and project components
Click on Reports for more Details
The petroleum ministry does not seem to be playing ball with UK based Hardy Exploration and Production India Inc over an award given in favour of the British company by an Arbitration Tribunal in the block CY-OS/2, located in the northern part of the of the Cauvery Basin.
8A bitter court battle is now on between the two after an arbitration court had declared a discovery in the block as non-associated natural gas (NANG) and not associated natural gas as claimed by the government.
8The main issue at stake in the arbitration court was the duration of the appraisal programme for the block. According to the PSC, the time period for declaration of commerciality of an oil discovery (and associated gas) is only 24 months whereas the time for declaration of commerciality of a non-associated discovery is 60 months from the date of notification of discovery.
8The DGH had wanted the appraisal of the discovery to be conducted within 24 months as it thought that the discovery was NANG in nature.
8Since Hardy was not willing to listen, a notice of relinquishment was served on the company.
8A miffed Hardi went ahead and filed for arbitration proceedings against the government and won a verdict in its favour.
8What Hardy won was time to appraise the block as well as penal interest -- of 18% -- on Rs 500 crore that it had investment in the block to be paid by the government for the delay in allowing Hardy to work on the block.
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8A bitter court battle is now on between the two after an arbitration court had declared a discovery in the block as non-associated natural gas (NANG) and not associated natural gas as claimed by the government.
8The main issue at stake in the arbitration court was the duration of the appraisal programme for the block. According to the PSC, the time period for declaration of commerciality of an oil discovery (and associated gas) is only 24 months whereas the time for declaration of commerciality of a non-associated discovery is 60 months from the date of notification of discovery.
8The DGH had wanted the appraisal of the discovery to be conducted within 24 months as it thought that the discovery was NANG in nature.
8Since Hardy was not willing to listen, a notice of relinquishment was served on the company.
8A miffed Hardi went ahead and filed for arbitration proceedings against the government and won a verdict in its favour.
8What Hardy won was time to appraise the block as well as penal interest -- of 18% -- on Rs 500 crore that it had investment in the block to be paid by the government for the delay in allowing Hardy to work on the block.
Click on Reports for more Details
Hardy is now complaining bitterly about the obstinate government approach to an arbitration award give in its favour in the E&P block .
8The government filed an appeal before the Delhi High Court against the arbitration award.
8But what is important to note is that Hardy has accused the government of resorting to delaying tactics: the issue was listed twelve times before the court and adjourned at the government's request on eight occasions.
8The matter is now scheduled to be heard again in December 2015.
8Not to be outdone, Hardy is now proceeding on a parallel execution petition to ensure enforcement of the arbitration award.
8So even as the award is contested, another petition is now seeking its implementation.
8Which way the High Court order goes will be watched with interest by the Indian E&P sector.
8Clearly, the government is not willing to give in to arbitration awards. The law too for arbitration procedures is being amended.
8The RIL-BP combine is involved in a series of high profile arbitrations against the government -- involving awards that may run into billions of dollars -- but faces an uphill battle ahead given the obstinate stand taken by the government.
Comment: This clearly sends the wrong signals to the international community. If oil block auctions are opened up, the government's stand on arbitration will have to be abundantly clear. With billions of dollars stuck up in bitter litigation, foreign E&P companies will think twice before coming to India. The PSC is a document that is signed by a sovereign India with the operators and its content must be respected. The best way out is to make the entire decision making process involving all E&P blocks autonomous by making the DGH an independent statutory authority like the PNGRB. But will the ministry want to give uo the DGH?
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8The government filed an appeal before the Delhi High Court against the arbitration award.
8But what is important to note is that Hardy has accused the government of resorting to delaying tactics: the issue was listed twelve times before the court and adjourned at the government's request on eight occasions.
8The matter is now scheduled to be heard again in December 2015.
8Not to be outdone, Hardy is now proceeding on a parallel execution petition to ensure enforcement of the arbitration award.
8So even as the award is contested, another petition is now seeking its implementation.
8Which way the High Court order goes will be watched with interest by the Indian E&P sector.
8Clearly, the government is not willing to give in to arbitration awards. The law too for arbitration procedures is being amended.
8The RIL-BP combine is involved in a series of high profile arbitrations against the government -- involving awards that may run into billions of dollars -- but faces an uphill battle ahead given the obstinate stand taken by the government.
Comment: This clearly sends the wrong signals to the international community. If oil block auctions are opened up, the government's stand on arbitration will have to be abundantly clear. With billions of dollars stuck up in bitter litigation, foreign E&P companies will think twice before coming to India. The PSC is a document that is signed by a sovereign India with the operators and its content must be respected. The best way out is to make the entire decision making process involving all E&P blocks autonomous by making the DGH an independent statutory authority like the PNGRB. But will the ministry want to give uo the DGH?
Click on Reports for more Details
Now that it is in battle with the government, Hardy does face an uphill job in keeping its properties going in India. Low oil and gas prices are not helping either.
8To begin with, the company's primary aim seems to be able to work out the Liquidated Damages that have to be paid for delaying the work programme in the block GS-01.
8Hardy wants to buy out RIL's 90% stake in the block. RIL is keen on relinquishing the block but Hardy wants to go ahead with it.
8Then again, the Hardy is attempting to get a go-ahead from the DGH for the PY-3 field, where the company is trying to re-commence work from 2017.
8The company ia hopeful of resolving the court battle over the arbitration award as quickly as is possible so that it can proceed with its NANG disovery in the CY-OS/2 block .
8Fir the time being however, all balls are in the air and there is no certainty over what the future has in store.
8The company claims that it can wait out this crisis, as it has $19.3 million in cash and no debt.
8But how long the money is going to last remains a moot point.
Click on Reports for more Details
8To begin with, the company's primary aim seems to be able to work out the Liquidated Damages that have to be paid for delaying the work programme in the block GS-01.
8Hardy wants to buy out RIL's 90% stake in the block. RIL is keen on relinquishing the block but Hardy wants to go ahead with it.
8Then again, the Hardy is attempting to get a go-ahead from the DGH for the PY-3 field, where the company is trying to re-commence work from 2017.
8The company ia hopeful of resolving the court battle over the arbitration award as quickly as is possible so that it can proceed with its NANG disovery in the CY-OS/2 block .
8Fir the time being however, all balls are in the air and there is no certainty over what the future has in store.
8The company claims that it can wait out this crisis, as it has $19.3 million in cash and no debt.
8But how long the money is going to last remains a moot point.
Click on Reports for more Details
The price of LNG may have fallen dramatically over the last one year but this has not translated into a significantly higher import of LNG.
8Data available shows that imported LNG between April-August, 2015 was at the level of 5.80 million metric tonnes (MMT) as against 12.289 MMT in all of 2014-15.
8LNG imports in 2012-13 and 2013-14 were at 13.13 MMT and 13.02 MMT respectively.
8A much larger spurt in LNG growth was expected because of the fall in price but this price elasticity was not exuded through LNG imports to India.
8This is despite the fact that out of 62.10 MMSCMD of total regasification capacity, 19.25 MMSCMD remained unutilized.
8Part of the reason for shortfall is the gross underutilization of the Kochi LNG terminal, at a meagre 2%, because of the non-availability of a pipeline evacuation system.
8There is a delay in the laying of the Kochi-Koottanad-Bangalore-Mangalore pipeline in the states of Kerala and Tamil Nadu on account of protests by farmers.
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8Data available shows that imported LNG between April-August, 2015 was at the level of 5.80 million metric tonnes (MMT) as against 12.289 MMT in all of 2014-15.
8LNG imports in 2012-13 and 2013-14 were at 13.13 MMT and 13.02 MMT respectively.
8A much larger spurt in LNG growth was expected because of the fall in price but this price elasticity was not exuded through LNG imports to India.
8This is despite the fact that out of 62.10 MMSCMD of total regasification capacity, 19.25 MMSCMD remained unutilized.
8Part of the reason for shortfall is the gross underutilization of the Kochi LNG terminal, at a meagre 2%, because of the non-availability of a pipeline evacuation system.
8There is a delay in the laying of the Kochi-Koottanad-Bangalore-Mangalore pipeline in the states of Kerala and Tamil Nadu on account of protests by farmers.
Click on Reports for more Details
The slump in oil and gas prices has caused an equally sharp fall in Foreign Direct Investment in the oil and gas sector.
8The April-September, 2015 data shows FDI at Rs 302 crore.
8Against this, the FDI in 2014-15 was a massive Rs 6495 crore. This is no doubt a huge step down.
8The figure however was only Rs 678 crore in 2013-14.
8Investments were at Rs 1192 crore in 2012-13.
8Is there likely to be a spurt in the second half of 2015-16? Unlikely, as no major investments are planned as of now.
8The picture however is not so dark in the long run. Last week, the IEA had estimated that the oil sector alone -- including upstream, transportation and refining sectors -- will need an investment of a massive $285 billion from now till 2040
8The gas sector too will see an investment of $212 billion.
8But when is the money going to come in?
8That remains a million if not a billion dollar question.
Click on Reports for more Details
8The April-September, 2015 data shows FDI at Rs 302 crore.
8Against this, the FDI in 2014-15 was a massive Rs 6495 crore. This is no doubt a huge step down.
8The figure however was only Rs 678 crore in 2013-14.
8Investments were at Rs 1192 crore in 2012-13.
8Is there likely to be a spurt in the second half of 2015-16? Unlikely, as no major investments are planned as of now.
8The picture however is not so dark in the long run. Last week, the IEA had estimated that the oil sector alone -- including upstream, transportation and refining sectors -- will need an investment of a massive $285 billion from now till 2040
8The gas sector too will see an investment of $212 billion.
8But when is the money going to come in?
8That remains a million if not a billion dollar question.
Click on Reports for more Details
India, it seems, has been pushed into a corner by the agitation in Nepal.
8Supplies were disrupted due to obstructions at several of the India-Nepal border crossing by disaffected sections of the Nepalese population on their side.
8The government is now in pains to explain that it is not its fault and that despite obstructions, a large number of cargo trucks has passed through those crossing points that were kept opem.
8Moreover, Indian continued to meet Nepal’s POL requirements to the extent possible, including by facilitating re-routing of stranded POL tankers through other available crossing points.
8Airlift of aviation fuel, including flight clearance for third country supplies, were also permitted.
8Indian Oil Corporation Limited ( IOCL) supplies all major petroleum products to Nepal Oil Corporation from 10 supply locations through Tank trucks arranged by the Nepal Oil Corporation.
8During 2014-2015, 1327480 MT and during April to October 2015 644070 MT of petroleum products have been provided to Nepal.
8The government havs also entered into an MoU for the construction of Raxaul (India)- Amlekhgunj (Nepal) Petroleum Products Pipeline to provide efficient supply of products.
8The MOU provides for a 41 km pipeline (2 km in India and 39 km in Nepal), to supply petrol, diesel and kerosene. The pipeline is to be constructed by IOC at a cost of approximately Rs. 200 crore.
8It also provides for additional facilities in the Amlekhgunj depot in Nepal to be developed by Nepal Oil Corporation at a cost of approximately Rs. 75 crore.
Click on the Details for more. Details
8Supplies were disrupted due to obstructions at several of the India-Nepal border crossing by disaffected sections of the Nepalese population on their side.
8The government is now in pains to explain that it is not its fault and that despite obstructions, a large number of cargo trucks has passed through those crossing points that were kept opem.
8Moreover, Indian continued to meet Nepal’s POL requirements to the extent possible, including by facilitating re-routing of stranded POL tankers through other available crossing points.
8Airlift of aviation fuel, including flight clearance for third country supplies, were also permitted.
8Indian Oil Corporation Limited ( IOCL) supplies all major petroleum products to Nepal Oil Corporation from 10 supply locations through Tank trucks arranged by the Nepal Oil Corporation.
8During 2014-2015, 1327480 MT and during April to October 2015 644070 MT of petroleum products have been provided to Nepal.
8The government havs also entered into an MoU for the construction of Raxaul (India)- Amlekhgunj (Nepal) Petroleum Products Pipeline to provide efficient supply of products.
8The MOU provides for a 41 km pipeline (2 km in India and 39 km in Nepal), to supply petrol, diesel and kerosene. The pipeline is to be constructed by IOC at a cost of approximately Rs. 200 crore.
8It also provides for additional facilities in the Amlekhgunj depot in Nepal to be developed by Nepal Oil Corporation at a cost of approximately Rs. 75 crore.
Click on the Details for more. Details
Oil marketing companies (OMCs) have set a target to increase the national LPG coverage to 75 percent, with minimum 60 percent coverage in every state and at least one distributor in each block.
8To increase the penetration in rural and backward areas, OMCs are continuously appointing new LPG distributors and more than 97 % of the blocks in the country today are being catered by at least one LPG distributorship.
8The government has also allowed the sale of 5 Kg LPG cylinders with or without domestic pressure regulators through retail outlets of public sector OMCs which are accessible to all and are open for longer hours.
8Subsequently, sale of 5 Kg Free Trade LPG (FTL) cylinders has been extended to LPG distributorship points and general stores for the convenience of the target consumers.
8As on October 2015, the scheme is under operation from 261 retail outlets, 484 distributorship points and general stores across the country.
8The government also pointed out that some private companies are supplying LPG to domestic consumers under the “parallel marketing” system.
Click on the Details for more. Details
8To increase the penetration in rural and backward areas, OMCs are continuously appointing new LPG distributors and more than 97 % of the blocks in the country today are being catered by at least one LPG distributorship.
8The government has also allowed the sale of 5 Kg LPG cylinders with or without domestic pressure regulators through retail outlets of public sector OMCs which are accessible to all and are open for longer hours.
8Subsequently, sale of 5 Kg Free Trade LPG (FTL) cylinders has been extended to LPG distributorship points and general stores for the convenience of the target consumers.
8As on October 2015, the scheme is under operation from 261 retail outlets, 484 distributorship points and general stores across the country.
8The government also pointed out that some private companies are supplying LPG to domestic consumers under the “parallel marketing” system.
Click on the Details for more. Details
Subsequent to a series of mishaps and gross negligence of safety procedures by India's public sector oil and gas companies, particularly GAIL, here is what government has to say about it.
8The petroleum minister in a statement had reaffirmed that that regular periodic foot patrolling and air surveillance on monthly basis is now conducted frequently.
8He also said that GAIL would soon take up aerial surveillance of inaccessible terrains through UAV (Unmanned Aerial Vehicle) on pilot basis after obtaining requisite permissions and clearances.
8He also mentioned that, GAIL and ONGC had taken steps separately to address the causes for accident in the pipeline in Andhra Pradesh last year and five Gas Dehydration Units (GDUs) had been installed in the pipeline route.
8The petroleum minister went on to reiterate that surveillance measures were taken not due to the accident in GAIL’s pipeline -- that killed 29 people last year -- but were in place even before the incident
Click on the details for more Details
8The petroleum minister in a statement had reaffirmed that that regular periodic foot patrolling and air surveillance on monthly basis is now conducted frequently.
8He also said that GAIL would soon take up aerial surveillance of inaccessible terrains through UAV (Unmanned Aerial Vehicle) on pilot basis after obtaining requisite permissions and clearances.
8He also mentioned that, GAIL and ONGC had taken steps separately to address the causes for accident in the pipeline in Andhra Pradesh last year and five Gas Dehydration Units (GDUs) had been installed in the pipeline route.
8The petroleum minister went on to reiterate that surveillance measures were taken not due to the accident in GAIL’s pipeline -- that killed 29 people last year -- but were in place even before the incident
Click on the details for more Details
