Mexico’s oil regulator trims area of upcoming oil tender
Mexico’s oil regulator on Thursday said it removed two areas within a block of oil exploration and production rights to be auctioned next month in order to extend talks with indigenous communities who live there. Areas 10 and 11 in the southern state of Chiapas will no longer be included in the tender, scheduled for July 12, Juan Carlos Zepeda, head of the oil regulator, known as the CNH, said during a session of the organization. Each area takes up about 400 square kilometers (150 square miles) and contains light and super-light crude, according to the CNH. Another 10 areas remain in the July 12 tender. Mexico is auctioning rights to explore and produce hydrocarbons in a bid to attract more private investment to the industry after Congress changed the constitution in late 2013 to end the 75-year monopoly of state oil company Pemex. This week, it auctioned two-thirds of the shallow water oil and gas blocks offered in the most recent round. The energy ministry said on Wednesday it would ask the CNH to remove the two areas from the July 12 round to provide more time for talks with local Zoque and Tzotzil communities. The next tender was the first to involve territories with significant indigenous populations, and the 2013 legal change requires the government consult with them before proceeding. Joffrey Lupul Authentic Jersey
SpiceJet orders 40 Boeing 737 MAX 10s
SpiceJet is to acquire 40 Boeing 737 MAX 10 aircraft at a deal valued at a current list price of $4.74 billion. The actual amount that SpiceJet will pay will be much lower as aircraft manufacturers are known to give heavy discounts for bulk sales. SpiceJet will take delivery of its first 737 MAX in 2018. The deal, which was inked on the opening day of the Paris air show, saw SpiceJet ordering 20 new Boeing 737 MAX 10 aircraft and exercising the option of converting an order of 20 Boeing 737 MAX 8 aircraft to Boeing 737 MAX 10 aircraft. In January, at the time of signing a deal for 205 Boeing aircraft, SpiceJet had retained the flexibility of converting some of the aircraft ordered to different versions which it exercised on Monday when it decided to purchase 20 Boeing 737 MAX 10 instead of the Boeing 737 MAX 8 aircraft. The Boeing 737 MAX 10 was launched at the Paris air show and SpiceJet is among the first few airlines globally to order the new aircraft. “With the introduction of our 737 MAXs next year, we will be able to further expand our network, while keeping our costs low for our customers,” Ajay Singh, Chairman and Managing Director, Spicejet said. The Boeing 737 MAX 10 is the largest member of the 737 MAX family which is capable of flying 370.4 km further than today’s Next Generation Boeing 737. It can carry 188 passengers in business and economy class seating and up to 230 passengers in a single class configuration. The latest order will see SpiceJet’s firm order of Boeing aircraft reach 225. Derrick Pouliot Womens Jersey
Airports in private sector at Amaravati, Vizag: Naidu
Airports better than the one in Hyderabad would come up at Amaravati and Visakhapatnam in the private sector, Chief Minister N. Chandrababu Naidu announced at Orvakal on Wednesday. The State government was according priority to logistics and augmentation of passengers and good transport, expansion of roads, railway network and ports in the State, Mr. Naidu said at a meeting after laying the foundation stone for a greenfield no-frills airport at Orvakal in Kurnool district. The airport, coming up on 1,010 acres at a cost of ?90 crore, would be completed in a year, he asserted. The Central government launched the UDAN regional connectivity scheme to make air travel affordable to the common man, Mr. Naidu said. His government revived the Kadapa airport and developed international airports at Tirupati and Visakhapatnam. Chipper Jones Authentic Jersey
India’s GMR, four others other bid for Belgrade airport
Four consortia and one company will proceed the next round of bidding for a 25-year concession to operate Belgrade’s Nikola Tesla airport, the biggest in the Balkan region, the company and a Serbian government commission said on Wednesday. Serbia, which has an 83.1 percent stake in the airport, expects the deal to be worth around 400 million euros ($446 million). The only company to have a non-binding bid accepted was France’s Vinci Airports, according to a statement posted on Belgrade airport’s website. The consortia are France’s Meridiam Eastern Europe Investments, Zurich Airport AG and France’s Eiffage; India’s GMR Infrastructure Limited and Greece’s Terna; South Korea’s Incheon International Airport Corp., Turkey’s Yatirimlar ve isletme and Russia’s VTB Capital Infrastructure; China’s Hainan Air Travel Service, HNA and China National Aero Technology, the statement said. The government repeatedly extended an initial March deadline to give bidders more time to complete their offers. Josh Sweat Authentic Jersey
Airline cos in a sweet spot; 18% passenger growth sustainable: Experts
The airline stocks have been doing well in a goldilocks like scenario. To discuss the dynamics of the industry as well as potential of a new player coming into the private listed space – Air India. CNBC-TV18 spoke to Amber Dubey, Partner & Head of Aerospace & Defense, KPMG and Mayur Milak, Senior Research Analyst, Indianivesh Securities. Dubey is confident that the 18 percent passenger growth for the sector is very much sustainable because it is backed by some solid fundamentals. The oil prices look like they will be stagnant at the levels sub USD 50/barrel, the policy initiatives taken by the government have aided growth, the propensity to travel by air, higher per capita incomes and the economy growing at steady place – all these fundamentals will support growth of the airline sector. However, on the flipside the airline space is vulnerable to security, safety issues and health issues like a disease outbreak where the bookings get cancelled, says Dubey. The only headwind for the aviation sector is the infrastructure gap at main airports like Mumbai, Delhi and others like Goa, Pune etc but on the whole the current environment is conducive for growth. Talking about the privatisation of Air India, Milak says that would help bring in lot of efficiencies to the carrier. However, it is unlikely to be a neck-breaking competition to the other private players. In fact it would be good for the whole of aviation space. Therefore, the entire sector looks in a sweet spot, believe Milak, adding that it is supported by lower crude price, the demand looks structural and not seasonal. So, the overall growth looks intact and valuations are still cheap. There is still value in SpiceJet. Dexter Manley Jersey
33 destinations to have air integration soon
About 33 destinations (unserved airports) throughout the country will be connected by air services by this September-end, Union Civil Aviation Minister Ashok Gajapathi Raju has informed on Wednesday. Five operators would operate on 128 routes connecting 70 airports, most of which are not well connected by airlines at present. “Five airlines will be participating in the first phase and we will see (air) connectivity by this September-end,” Gajapathi Raju said. These 33 destinations would be connected under the Udan scheme, Gajapathi Raju who earlier participated in the International Day of Yoga at SBOA School here, said. Noting that Salem airport in Tamil Nadu is inoperative, the Minister said it is for the state government and airline operators to decide on providing regional connectivity. Over 45 unserved and under-served airports are expected to be connected under the scheme – UDAN (Ude Desh ka Aam Naagrik) that aims to make flying more affordable. In the first round of bidding, Air Odisha Aviation has won the bid to connect the maximum number of unserved airports in the country. Other carriers which won the bids to fly to unserved airports in tier-2 cities include Air India’s subsidiary Alliance Air, Air Deccan, SpiceJet, Air Odisha and Turbo Megha. About 50 per cent of seats on every flight will cost Rs 2,500 per seat under the Udan scheme. This will be applicable for flights where the distance is less than 500 km or one-hour. Dennis Seidenberg Jersey
At least 3 airlines eyeing stake in Air India
At least three aviation companies, besides the Tata group, have shown an interest in acquiring a stake in the beleaguered national carrier Air India. Sources close to the airline said that initial meetings had taken place with possible buyers, including the Tata group. “After Finance Minister Arun Jaitley’s interview to Doordarshan News in the last week of May saying the government is open to privatising the airline, three or four possible buyers – including the Tatas – have met with both the Finance Ministry and the Ministry of Civil Aviation,” the source said. BusinessLine could not independently confirm the names of the other suitors, and is therefore not disclosing their details, but among them are at least two international airlines. “Nothing definite have emerged from these talks yet,” the source added. “Within the government itself, there are differing views about privatising Air India. We’ll have to wait for the Cabinet meeting next week to see which way the government wants to go.” While Air India has a 105-strong fleet strength and deep international networks, it comes with aircraft-related debt of ?20,000 crore and another ?32,000 crore of working capital debt. The airline is now running on a ?30,000-crore bailout package extended by the UPA government in 2012. The NDA government’s policy think-tank NITI Aayog had recommended privatisation of the airline. If the Tatas were to buy the national carrier, this will be second time the group would be owning the airline. The business house and the airline have a shared history. The carrier was started as Tata Airlines in 1932 by former Tata Sons chairman JRD Tata, which was renamed Air India in 1946 and later nationalised in 1953. While Tata Sons declined to comment on the possibility of it buying Air India wholly or partially, aviation experts say it would only exercise this option with its current joint venture partner in India for Vistara, Singapore Airlines. “Domestically, both Air India and Vistara operate in the premium economy segments,” a person aware of Singapore Airlines’ business said. “So it wouldn’t make sense for the Tatas to acquire Air India and then compete with Vistara in the same market.” Morgan Moses Authentic Jersey
Qatar ideal first diplomatic crisis for oilman Rex Tillerson
The Qatar crisis presents Rex Tillerson with his first challenge as Washington’s top diplomat and an opportunity for the former oilman to use his vast network of contacts. But while his former life as chief of energy giant ExxonMobil prepared Tillerson well, he does have one potential handicap, his new boss, President Donald Trump. While Trump has claimed credit for Saudi Arabia’s air and land blockade of its gas-rich neighbor, Tillerson has urged an end to the embargo and restored alliances. That differing approach could make the secretary of state’s task difficult at best, but his friends in Washington say his regional experience makes him just the man for the job. “If anyone can do it, it’s him,” says James Jeffrey of the Washington Institute of Near East Policy, a former senior diplomat who advised Tillerson at Exxon. On the face of it, the diplomatic standoff in the oil and gas-rich Gulf has all the makings of a US foreign policy disaster coming at the worst possible time. Late last month, Trump made what appeared at the time a triumphal visit to Riyadh to unite US friends in the region against Iranian meddling and Islamist extremism. But just weeks later, on June 5, Saudi Arabia, Bahrain, Egypt and the United Arab Emirates broke ties with Qatar, accusing its royal government of backing terrorist groups. The resulting stand-off left the countries that host the bulk of US forces in the region — Turkey, Qatar, Kuwait and Iraq — at odds with Washington’s other key allies. And it could only strengthen the hand of Iran, which is confronting US and Saudi interests through covert operations and proxies in Syria, Yemen, Iraq and Lebanon. Trump initially appeared to revel in the situation, praising Riyadh for standing up to fight terror financing and accusing Qatar of supporting extremism at a “high level.” But Tillerson ,who has been asked by the White House to help defuse the situation took a different tack, and this week appeared to be making some progress. On Tuesday, after the secretary of state had cancelled a planned visit to Mexico and spent two frustrating days on the telephone, he issued a strong statement. His target was not Qatar, although he has been clear that all countries should do more to eradicate terror funding — but Riyadh and its Emirati ally. Tillerson’s spokeswoman, Heather Nauert, told reporters that Washington was “mystified” that the Saudis and Emiratis had not released details of their allegations against Qatar. “The more that time goes by, the more doubt is raised about the actions taken by Saudi Arabia and the UAE,” she said, before turning the knife. Were Riyadh’s actions really about “Qatar’s alleged support for terrorism, or were they about the long simmering grievances between and among the GCC countries?” she asked. The statement was a clear signal that, despite Trump’s rhetoric, official Washington blames the Saudis for escalating an unnecessary dispute. It was not the first such signal from Trump’s top national security team ,whose actions often struggle to speak louder than the president’s words. A week earlier, Secretary of Defense Jim Mattis signed a $12 billion deal to sell Qatar supposedly a terror sponsor US-made F-15 fighter jets. In case that wasn’t a strong enough sign, Tillerson also made what for him was a rare appearance before reporters to urge the Saudis to “ease” their embargo. Will Saudi Arabia and the Emirates listen to the State Department and the Pentagon, and seek a face-saving agreement with Qatar that reunites the allies? Or will they listen to Trump, who during a Wednesday campaign speech praised the Saudi king “for fighting with other countries that have been funding terrorism”? The key to re-balancing the relationship will lie with Tillerson. “I think he’s doing a good job, and he knows everybody. He knows the Saudis and the Qataris very well,” said Jeffrey, a White House advisor under former president George W. Bush. For Jeffrey, the mistake was to let Riyadh think Trump had given them a green light. “It isn’t that you have two separate policies. Trump is supporting Mattis and Tillerson,” Jeffrey argues. “It’s just that Trump can’t help himself as he communicates in a different sphere through tweets and with his supporters. “It’s not Trump the commander-in-chief or the president, it’s Trump the leader of a movement with its own worldview,” he said. “It’s going to take a while for the Saudis and the Emiratis to understand this and not to take it to the bank, which is what they did.” On Wednesday, a day after the strong “mystified” statement, Tillerson announced that Riyadh had now indeed drawn up a list of demands. Zack Wheeler Womens Jersey
Iran begins sending gas to Iraq under major deal
Iran has begun exporting gas through a pipeline to Baghdad under a deal set to make Iraq the Islamic republic’s top customer, the oil ministry said. “Iran’s natural gas exports to Baghdad began yesterday evening,” Deputy Oil Minister Amir Hossein Zamaninia said late yesterday in comments carried by the ministry’s Shana website. “The exports have started with a volume of seven million cubic metres a day and will eventually reach 35 million cubic metres,” he said. The announcement came two days after Iraqi Prime Minister Haider al-Abadi visited Iran following a fence-mending trip to its bitter rival Saudi Arabia amid diplomatic turmoil in the Gulf. A new pipeline links western Iran to Baghdad, while a second in Iran’s southwest will pump Iranian gas to the southern Iraqi city of Basra. Once the Basra pipe comes online, Iraq’s total gas imports from Iran are set to reach up to 70 million cubic metres a day. Iran sits on the world’s second largest natural gas reserves and produces some 600 million cubic metres a day. But despite almost doubling its oil exports since international sanctions were lifted under a 2015 nuclear deal, it consumes most of its gas domestically – partly for lack of export infrastructure. Turkey has so far been its only export client, importing some 30 million cubic metres a day under a 1996 deal. The Islamic republic, seeking to expand its gas market, is developing production facilities in the huge offshore oil and gas field of South Pars, which it shares with Qatar. Shiite-dominated Iran and Iraq, which fought a devastating war in the 1980s, have become close allies since the 2003 fall of Sunni strongman Saddam Hussein and the rise of a Shiite-led government in Baghdad. Zac Dalpe Womens Jersey
Haryana waives off intra-state wheeling charges to promote renewable energy
With a view to promote power generation from New and Renewable energy sources, Haryana government has decided to waive off intra-state “Wheeling Charges” on transmission of electricity generated from solar power plants in the state. This was announced by chief minister Manohar Lal. Wheeling Charges refers to the process of transmission of electricity from one source to another through the transmission lines or grid. The state government, under Section 108 of Electricity Act 2003, had already approved to request the Haryana Electricity Regulatory Commission (HERC) for waiving off these charges. This exemption would enable the solar energy sector to transmit power without any charge within the state. Lias Andersson Jersey