ONGC Videsh to pump $150 million in Colombia, Kazakhstan & Bangladesh
ONGC Videsh, the overseas arm of the state-run Oil and Natural Gas Corp, plans to invest $150 million in exploration this fiscal year to drill more wells in Colombia, where it just made a commercial discovery, as well as in Kazakhstan and Bangladesh. ONGC Videsh, which operates the CPO-5 block of Colombia, has made a commercial discovery in its exploration well Mariposa-1, managing director Narendra Verma has said. The company is now drawing up plans for the development of the Mariposa-1well that has begun a test production of 4,500 barrels per day, he said. The success has also opened opportunity for further exploration in the block. “To chase this lead, we plan to drill two more wells,” Verma said. ONGC has 70% participating interest in CPO-5 block in which the remaing 30% stake in held by Amerisur Resources of UK. ONGC has participating interest in a total of six blocks in Colombia. This includes a producing block whose current output is 35,000 barrels per day. ONGC has also accelerated its exploratory efforts in Kazakhstan and Bangladesh. Drilling has begun in the Kazakhstan block in the Caspian Sea while preparations are on to drill the first well in Bangladesh. “We are hopeful Kazakhstan drilling will end up in success,” Verma said. In all, the exploratory effort would require $150 million of investment this year, Verma said. ONGC Videsh plans to make a total capital spending of $1 billion in 2017-18 in exploration, development and production across all its projects. ONGC Videsh’s production jumped 40% in 2016-17 mainly on 26% stake acquisition in Russia’s prolific Vankor fields. The output is expected to rise further 15% in the current fiscal year to 14.35 million tonnes of oil equivalent (mtoe). “We are actively working towards meeting our target of 20 mtoe by 2020,” said Verma. The company has also entered Namibia’s oil and gas sector with a purchase of 30% interest from Tullow Oil in the African country’s three oil blocks. ONGC Videsh’s investment in the Imperial fields of Russia will likely get some production boost after an associated gas processing plant comes up. The tender for the plant has been awarded and it would be ready in about 18 months, Verma said. This would help push up oil production from the field by 4000 barrels/day from the current 7000 barrels/day. Gerald Green Jersey
40-year-old aircraft may not get DGCA nod for cloud seeding
The government’s efforts to provide respite to farmers struggling without rain through cloud seeding might hit a legal hurdle. One of the four aircraft to be used for the purpose is unlikely to get clearance from the Directorate General of Civil Aviation (DGCA), which has earlier denied permission to one such plane for the project. While the Karnataka government has awarded the Rs 30-crore project to Hoysala Projects, two other firms with valid licences to operate aircraft have been roped in to provide the service. The first one was to bring three planes and the second company one. But the former’s request for permission for one of the three planes was denied as it was aged 25 years. DGCA regulations stipulate that the maximum age of aircraft for temporary import from a foreign firm should be 18 years. Documents with TOI show that the second firm has now sought permission to bring in an aircraft – Piper Cheyenne Aircraft N 361 JC – manufactured in 1977. But the DGCA, which has already denied permission for an aircraft aged 25 years, is unlikely to consider the proposal to fly in a 40-year-old plane. Further, documents reveal that Piper was purchased by Agni Aviation Consultants, Bengaluru for $9,27,000 in 2009. Mike Gesicki Womens Jersey
After Uttar Pradesh, Jharkhand manages to renegotiate solar tariffs
Solar power developers who won the mega auction of 1,200 MW of projects in Jharkhand 16 months ago have agreed to reduce tariffs, which will help them sign power purchase agreements. Jharkhand is the second state after Uttar Pradesh to renegotiate solar tariffs arrived at through an auction. But while UP went back on signed PPAs, Jharkhand has not actually signed any because the state distribution company found it too costly. Developers had offered a tariff of Rs 4.99 per unit of power to the Jharkhand Renewable Energy Development Agency (JREDA) at a recent meeting. Among projects offered at 45 different locations in the state, winning bids ranged from Rs 5.08 to Rs 7.95, depending on size and location of the project. The agency has not yet taken a decision and the matter may even be discussed by Jharkhand cabinet at its next meeting likely later this week. The biggest winner in March 2016 Jharkhand auction was ReNew Power with 522 MW. Other notable winners included Suzlon Energy with 175 MW, OPG Power Generation with 124 MW, Acme Solar with 75 MW, Adani Green Energy with 50 MW and the now defunct SunEdison with 150 MW. Most of the developers declined comment, given the delicate stage of the negotiations. A solitary exception was ACME Solar Holdings, which won 75 MW, and indicated its willingness to discuss a reasonable tariff revision. “PPAs were not signed because it was not beneficial for the state to get power at the arrived tariff,” said Nikhil Dhingra, CEO at ACME Solar Holdings, which won 75 MW. “We remain committed to the state for future bids. It will really help both parties if the gap between the bidding and the PPA tariff adoption is minimised for it to make sense for the state.” Letters of intent were sent out to the winners in May 2016, but thereafter the state power distribution company Jharkhand Bijli Vitaran Nigam (JBVN) refused to actually sign PPAs with the winning developers. The developers claim they were told the rates were too high as the state bought conventional power at about Rs 4.30 per kwH. JREDA officials were unwilling to comment on why, despite letters of intent having been issued, PPAs had not been signed more than 16 months after auction was held. Nor would they confirm or deny fresh offers from developers. But in an interaction with ET in October last year, a Jharkhand official had hinted that the delay was due to both JREDA not having enough funds and its apprehension that the winning tariffs at the auction were too high Ten months later, the matter has still not been resolved. With LoIs already issued, cancelling the bids is not an easy option either for the state. In the meantime, solar tariffs have fallen even further across the country, thanks to a drop in input costs, with the lowest tariff reached being Rs 2.44 per kwH at an auction held for projects at the Bhadla Solar Park in Rajasthan in May. Developers say Jharkhand tariffs were higher because of many factors. One winner, who did not want to be named, recently pointed out five of them in a letter to JREDA: low solar irradiation, relatively more expensive land, the security threat posed by Naxalites, insufficient power evacuation infrastructure and lack of any sovereign guarantee from the state government that it would step in if the discom JBVNL were to default. “As compared to Rajasthan, Andhra Pradesh, Karnataka and Gujarat, solar irradiation in Jharkhand is 7-9 % less, thus resulting in low plant load factor (PLF) for similar plant design,” the letter noted. “Jharkhand has large forest cover and large contiguous land without vegetation is scarcely available. Land prices in other states are Rs 3-5 per acre, whereas In Jharkhand they are double and vary between Rs 8 lakh and Rs 10 lakh per acre.” ET View: Fresh bidding is sensible Things seem to be in a state of flux, and it would make sense to opt for fresh bidding. Looking ahead, the auction needs to reflect current state of affairs and future prices in the offing. Also, we need to differentiate supply-side policy from the demand side in renewable power. While upfront supply-side subventions can be phased out, given falling costs of hardware, we do need to encourage and step-up demand for renewables with dedicated line capacity and the like. It would be for the greater good. Tanner Glass Authentic Jersey
Energy Information Administration cuts U.S. oil production growth forecast for 2018
The U.S. Energy Information Administration said on Tuesday it expects U.S. crude oil production in 2018 to rise by less than previously expected. The agency forecast that 2018 crude oil output will rise by 560,000 barrels per day to 9.91 million bpd. Last month, it expected a 570,000 bpd year-over-year increase to 9.9 million bpd. For 2017, it forecast a rise of 500,000 bpd to 9.35 million bpd. Last month, it expected a 460,000 bpd increase to 9.33 million bpd, according to the EIA’s monthly short-term energy outlook. Meanwhile, the agency forecast that U.S. oil demand for 2017 is set to grow by 340,000 bpd compared with a 310,000 bpd previously. For 2018, oil demand is expected to rise by 330,000 bpd vs 360,000 bpd previously. Mike Gartner Authentic Jersey
OPEC expects laggards to comply more fully with oil cut pact
OPEC expects greater adherence to its pact with non-OPEC producers to cut oil output after two days of meetings in Abu Dhabi aimed at boosting compliance with the accord. The Organization of the Petroleum Exporting Countries, Russia and other producers are cutting output by about 1.8 million barrels per day (bpd) until March 2018 to get rid of a glut and support prices. OPEC producers Iraq and the UAE have shown relatively low compliance with the deal based on figures from secondary sources OPEC uses to monitor its supply. Meanwhile, non-OPEC Kazakhstan and Malaysia have been boosting output in the last few months, according to the International Energy Agency. In Abu Dhabi, a panel comprising Russia, Kuwait and Saudi Arabia, plus officials from OPEC’s Vienna headquarters, met individually with officials from Iraq, the United Arab Emirates, Kazakhstan and Malaysia. “Discussions were conducted in a constructive atmosphere and proved fruitful,” OPEC said in a statement. “The conclusions reached with the countries at the meeting will help facilitate full conformity,” it added, although it did not give details on how compliance would be increased. The meeting was a special session of the JTC, or Joint Technical Committee, which is monitoring adherence to the deal. A ministerial panel, known as the JMMC, met last month and instructed that the Abu Dhabi meeting be held. “The UAE, Iraq, Kazakhstan, and Malaysia all expressed their full support for the existing monitoring mechanism and their willingness to fully cooperate with the JTC and JMMC in the months ahead in order to achieve the goal of reaching full conformity,” OPEC said. Another OPEC source said the officials discussed crude exports and some countries’ disagreement with the level of their production as assessed by the secondary sources. At a meeting held in Russia last month, the UAE and Iraq confirmed their commitment to the pact but offered no concrete plan on how to meet their production targets, sources said. Iraq and the UAE say the assessment of their production by secondary sources – figures from government agencies, consultants and industry media that OPEC uses to monitor its output – before the pact took effect in January was too low. They argue that as a result, the two countries have the unpalatable task of making an even bigger cut to comply fully. Sheldon Rankins Jersey
Delhi to have a terminal for private flights by 2020
To streamline flight movement and cater to the demands of chartered flights in the capital, IGI Airport will have a dedicated terminal and parking bays for private planes by 2020. By consolidating general aviation — all civil aviation operations other than scheduled flight services — the new terminal seeks to provide faster access to chartered flights as well as reduce congestion in Terminal-1 from where these flights now take off. The airport operator, Delhi International Airport Limited, has appointed two concessionaires to develop fixed base operator (FBO) as well as world-class maintenance, repair and overhaul (MRO) facilities at the new terminal that will have separate hangars and aircraft parking bays for general aviation services. At close to 1,250 movements each month, IGI handled close to 15,000 general aviation movements during the financial year 2016-17. “Initially, general aviation operations at the Delhi airport was unorganised and many local agencies were involved in providing such services. Hence, the services and associated infrastructures offered to general aviation operators were not at par with international standards,” said a DIAL spokesperson. The new general aviation terminal will cater to the increasing demand of non-scheduled operators, he added. IGI airport currently handles the maximum traffic in terms of general aviation movement and VIPs using private planes also use Terminal-1 to board a chartered flight. “The new terminal can further boost that growth by providing faster access to such flights and providing world-class facilities. Even the larger planes can then be accommodated at the IGI airport,” said Rajesh Kumar Bali, MD, Business Aircraft Operators Association. Besides new facilities, the terminal will let a person board a private plane within five-10 minutes of arriving at the airport, said officials from Bird ExecuJet — one of the two concessionaires at the general aviation terminal. “One just needs to directly enter the terminal, get the details verified and directly walk on to the plane. Earlier, this process would take close to two hours and further congest T-1. With India’s GDP rising steadily and globalisation spreading its wings, this type of aviation is becoming a necessity and not a luxury. With the upcoming fixed base operations at Delhi’s IGI, passengers will have better access to these services,” said Gaurav Bhatia, executive director, Bird Group. Mike Gartner Womens Jersey