Norway’s Supreme Court rules in favour of state in pipeline tariff dispute
Norway’s Supreme Court ruled on Thursday in favour of the government in a lawsuit brought by owners of the Gassled gas network over tariffs, ending a legal fight the owners said raised questions about Norway as an investment destination. Shareholders in Gassled had argued the government acted unlawfully when cutting pipeline tariffs and that it would cost them a combined 15 billion Norwegian crowns ($1.8 billion) in lost earnings through 2028. “There was no ground to make the change in regulation invalid,” the unanimous five-strong Supreme Court panel said. The case against the government was pursued by four investment companies – Solveig Gas, Silex Gas, Infragas and CapeOmega, which together hold a combined 48.2 percent of Gassled that transports Norway’s gas to the rest of Europe. Some of the companies involved have said Norway’s unexpected decision to lower gas transportation tariffs would hurt its image as an investment destination. The Nordic country is Europe’s second-largest gas supplier after Russia. While tariffs were cut by 90 percent for some future gas resources that are added to the network, Gassled’s owners will still receive accumulated payment of 122 billion crowns by 2028, a reduction of 14.7 billion, Norway’s energy ministry said. “The owners have received a reasonable return on their investments,” the ministry said in a statement, adding that lower pipeline fees could boost the extraction of offshore gas. The four investment companies were originally owned by Allianz, UBS, the Abu Dhabi Investment Authority, Canada’s Public Sector Pension Investment Board, the Canada Pension Plan Investment Board and France’s Caisse des Depots. In October 2017, UBS and Caisse des Depots said they were selling their stakes to CapeOmega, but would still help pay legal costs. The government cut tariffs shortly after the four investors bought their stakes in Gassled in 2011 and 2012 from ExxonMobil , Total, Statoil – now know as Equinor – and Royal Dutch Shell for 32 billion crowns. At least two of the partners said they would continue to be “prudent owners”. “We now need to understand this judgement. Today is definitely not the day to decide (on our stance to other investments),” Silex Gas CEO Kurt Georgsen told Reuters. “We will focus on our role in Gassled. We will make sure that Gassled stays,” Solveig Gas CEI Trygve Pedersen said. “That doesn’t say if we will look at other projects in the future or not. I do not want to comment on hypothetical scenarios. So far we have only made investments in Gassled,” he added. The partners will have to pay the state’s legal costs, estimated at over 5.3 million crowns ($646,000), ruled the court. Devin Funchess Authentic Jersey
Chevron renewal of Rokan block not assured – Indonesia minister
U.S. energy giant Chevron Corp must compete if it wants to continue operating Indonesia’s Rokan block, the country’s biggest source of crude oil, after its contract expires in 2021, Indonesia Energy and Mines Minister Ignasius Jonan said on Wednesday. Chevron asked Indonesia’s government earlier this year to extend its operating contract for Rokan beyond 2021 and since then has been in discussions with Indonesian officials on the issue. “I just talked to Chevron’s new CEO and told him that it is up to him. If they propose to continue to operate the Rokan block the economics have to be justifiable,” Jonan told Reuters on the sidelines of the World Gas Conference in Washington. “And they may face some competition as well, from foreign operators and from Pertamina,” he said, referring to Indonesia’s state oil and gas company. Michael Wirth, who has been with Chevron since 1982, became CEO in February. A Chevron spokesman did not immediately respond to a request for comment. Indonesia has earned a reputation for favoring Pertamina to take over expiring oil and gas contracts in the past, stoking concern among foreign energy investors about the security of their projects. Jonan, who said he is eager to earn the trust of investors to boost development of Indonesia’s natural resources, said the days of playing favorites were “in the past.” “The only maxim we stick to is the economics. There is no favoritism about the origin of the company, there is no political play. The answer is no and no. It is the economics. That applies to everyone, foreign companies, local companies, and government companies,” he said. Jonan said Indonesia was also in discussions with Chevron about another project it is operating, Indonesia Deepwater Development, a natural gas production effort in East Kalimantan, after Chevron cut $6 billion in spending plans there. “We both agreed to go and find the best way to work on this block for both sides,” he said, adding the negotiations now “will go down to the technical level.” Jonan said he had not yet used his authority to adjust fiscal terms for oil and gas blocks to encourage investment, but was ready to do so in any cases where investment returns were projected to be below 15 percent. Jonan said he is “seriously considering offering fiscal adjustments to a number of smaller blocks” in Indonesia, but he did not name the blocks or the companies involved. GOLD, COPPER AND COAL Jonan also said he met this week with Freeport McMoRan CEO Richard Adkerson to discuss the company’s Grasberg gold and copper mine in Papua. The Phoenix-based company has been in tricky negotiations with Indonesia to secure long-term operating rights at the mine after the government introduced rules last year forcing it to divest its controlling interest. Jonan said the two agreed that Freeport needs freedom to operate the mine in the way it sees fit in the near term, but that the government insists on having a voice. “We agreed that, operations-wise, Freeport has to be in charge at the moment. Honestly, we don’t have the expertise,” he said. “But if you talk about control, it is a very delicate word in terms of management. I would like to say we both control.” Jonan added that Indonesia, which produces and exports large amounts of coal, currently viewed the fuel as critical to keeping electricity costs down for its population. “We have a serious concern about global warming and are trying to reduce the use of coal as the primary energy for our power plants,” he said. “But we go with the affordability for the public.” He said Indonesia would find it difficult to reach its target of generating 23 percent of its power from renewable sources by 2025 – as pledged under the 2015 Paris Agreement to combat climate change – but remained hopeful it could reach somewhere above 20 percent by that time. Adam Thielen Womens Jersey
We will not let Nanar refinery project to go through: Shiv Sena
A day after Union petroleum minister Dharmendra Pradhan signed a memorandum of understanding with Saudi Arabia’s Aramco and Abu Dhabi National Oil Company (ADNOC) to build a mega refinery at Nanar in Ratnagiri, the Shiv Sena reiterated that it would not let the project go through. The Shiv Sena, which is part of the BJP-led ruling coalition in Maharashtra, has been consistently opposing the project along with the locals in Ratnagiri. Pradhan wanted to meet Shiv Sena president Uddhav Thackeray on Thursday in a bid to convince him to drop the opposition to the project, but Thackeray refused to meet him, said people aware of the matter. “Uddhav Thackeray said that there was no point in meeting Pradhan as the government had already gone ahead and signed the MoU with the Saudi Arabian company behind the Sena’s back. He said that if you want to convince, go and convince the villagers in Nanar,” said one of the persons, who did not wish to be identified. The state industries minister, Shiv Sena’s Subhash Desai, said that he would resign rather than let the Nanar refinery project go through. The party’s state ministers raised the issue of the refinery project before the Cabinet meeting on Wednesday. “We brought this issue before the Cabinet meeting. We told the Chief Minister that the MoU was signed without keeping the state informed,” said transport minister Diwakar Raote. “Industries minister Subhash Desai will be meeting the Chief Minister on the issue tomorrow (Thursday).” The Shiv Sena has accused Maharashtra Chief Minister Devendra Fadnavis of betraying the Sena as well as the people of Ratnagiri, who have been opposed to the project. The party claimed that the CM had given an assurance that the project would not go ahead if the people were opposed to it. Since the BJP is dependent on the Shiv Sena for support for the Lok Sabha and assembly polls, which will be held in late 2019, its seems unlikely that the project would see much headway. Further compounding problems for the BJP is former Congress leader Narayan Rane, who is currently a Rajya Sabha member with BJP support. Rane has also said that he would not let the Nanar project go through. Arian Foster Authentic Jersey
Exclusive: India preparing for cut in oil imports from Iran – sources
India’s oil ministry has asked refiners to prepare for a ‘drastic reduction or zero’ imports of Iranian oil from November, two industry sources said, the first sign that New Delhi is responding to a push by the United States to cut trade ties with Iran. India has said it does not recognize unilateral restrictions imposed by the U.S., and instead follows U.N. sanctions. But the industry sources said India, the biggest buyer of Iranian oil after China, will be forced to take action to protect its exposure to the U.S. financial system. India’s oil ministry held a meeting with refiners on Thursday, urging them to scout for alternatives to Iranian oil, the sources said. “(India) has asked refiners to be prepared for any eventuality, since the situation is still evolving. There could be drastic reduction or there could be no import at all,” said one of the sources, who has knowledge of the matter. During the previous round of sanctions, India was one of the few countries that continued to buy Iranian oil, although it had to reduce imports as shipping, insurance and banking channels were choked due to the European and U.S. sanctions. The source said this time the situation is different. “You have India, China and Europe on one side, and U.S. on the other… At this moment we really don’t know what to do, but at the same time we have to prepare ourselves to face any eventuality,” said the source. While a State Department official has said that Washington wants Iranian oil buyers to halt imports from November, U.S. Ambassador to the United Nations Nikki Haley has told Prime Minister Narendra Modi to lessen dependence on Iranian oil. Haley, currently in Delhi, spoke with U.S. Secretary of State Mike Pompeo early on Wednesday, before meeting Modi. The U.S. push to curb countries’ imports of Iranian oil comes after President Donald Trump withdrew from a 2015 deal between Iran and six world powers and ordered a reimposition of sanctions on Tehran. Some sanctions take effect after a 90-day “wind-down” period ending on Aug. 6, and the rest, notably in the petroleum sector, following a 180-day “wind-down period” ending on Nov. 4. OUTPUT BOOST FROM OPEC Under pressure from the U.S. sanctions, Reliance Industries Ltd, the operator of the world’s biggest refining complex, has decided to halt imports. Nayara Energy, an Indian company promoted by Russian oil major Rosneft, is also preparing to halt Iranian oil imports from November after a communication from the government, a second source said. The company has already started cutting its oil imports from this month. Indian Oil Corp, Mangalore Refineries and Petrochemicals Ltd and Nayara Energy, the top three Indian buyers of Iranian oil, and the oil ministry did not respond to Reuters’s request for comments. Removing Iranian oil from the global market by November as called for by the United States is impossible, an Iranian oil official told the semi-official Tasnim news agency on Wednesday. The options to find replacements to Iranian oil have widened after OPEC agreed with Russia and other oil-producing allies last week to raise output from July by about 1 million bpd, with Saudi Arabia pledging a “measurable” supply boost but giving no specific numbers. Saudi Arabia’s plans to pump up to 11 million barrels of oil per day (bpd) in July would mark a new record, an industry source familiar with Saudi oil production plans told Reuters on Tuesday. The second source said there were plenty of options available in the market to replace Iranian oil. “There are companies and traders that are willing to give you a 60 day credit, crude is available in the market,” the source said. To boost its sales to India, Iran recently offered virtually free shipping and an extended credit period of 60 days. “We can buy Basra Heavy, Saudi or Kuwait oil to replace Iran. Finding replacement barrels is not a problem, but it has to give the best economic value,” a third source in New Delhi said. Brandon Saad Jersey
Pan-African firm Oranto Petroleum to explore for crude oil in Zambia
Pan-African firm Oranto Petroleum said on Wednesday it would start exploring for oil in Zambia after it was awarded two blocks, its first investment in the southern African nation. Zambia does not produce oil, but the government says soil samples sent to European laboratories have shown good traces of crude. Under the agreement, Oranto will hold a 90 percent stake in the two blocks and will be required to conduct geological and geophysical studies over two years. “Oranto Petroleum is committed to an aggressive work programme to increase the levels of prospectivity in one of the world’s last true frontier markets,” it said in a statement. British company Tullow Oil last year started exploring for oil and gas in Zambia, Africa’s No.2 copper producer, as the country pushes to diversify its economy and reduce its reliance on the industrial metal. Copper mining earns Zambia more than 70 percent of its foreign exchange but Lusaka has been trying to move into other commodities to insulate itself from price shocks. Jason Kelce Authentic Jersey
U.S. oil dips as markets well supplied despite strong demand, outages
U.S. oil prices dipped from three-and-a-half year highs on Thursday as physical markets remained well supplied despite record demand and ongoing disruptions. U.S. West Texas Intermediate (WTI) crude futures were at $72.55 a barrel at 0114 GMT, down 21 cents, or 0.3 percent from their last settlement. WTI hit its highest since November 2014 at $73.06 per barrel in the previous session. Brent crude futures were at $77.63 per barrel, virtually unchanged from their last close and still below recent May highs. Oil prices have been rallying for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC). Unplanned supply disruptions from Canada to Libya and Venezuela have added to those cuts. Yet not all indicators point towards an ever-tightening market. Although output growth is slowing, U.S. crude production is approaching 11 million barrels per day (bpd). With Russia and Saudi Arabia at similar levels, and output expected to rise as OPEC and Russia ease their supply restrictions, there will soon be three countries pumping out 11 million barrels of crude each and every day. This unprecedented output means just three countries are meeting a third of world consumption. “The physical oil market is well supplied,” said Konstantinos Venetis, senior economist at research firm TS Lombard, although he warned OPEC and Russia were producing at near maximum output “leaving a thinner margin of safety for the future.” U.S. INVENTORIES FALL Despite rising U.S. output, U.S. commercial crude oil inventories dropped by almost 10 million barrels in the week to June 22, to 416.64 million barrels, according to the Energy Information Administration on Wednesday. That’s below the 5-year average level of around 425 million barrels. Traders expect inventories to draw further in coming weeks as an outage of Canada’s Syncrude locks in over 300,000 bpd of production. The outage is expected to last at least through July, according to operator Suncot. The draw in U.S. inventories was also due to high exports of almost 3 million bpd, coupled with domestic refinery activity hitting a utilization rate of 97.5 percent, the highest in more than a decade. Oil demand has been chasing records for most of 2018, but the outlook is dimming amid escalating trade disputes between the United States and other major economies including China and the European Union. “Our macroeconomic view remains overwhelmingly bearish,” commodity brokerage Marex Spectron said. “Credit conditions have worsened again, which is likely to have an outright negative impact on the demand for crude oil in the next 4-6 weeks,” it said. Muhammad Wilkerson Womens Jersey
U.S. oil dips as markets well supplied despite strong demand, outages
U.S. oil prices dipped from three-and-a-half year highs on Thursday as physical markets remained well supplied despite record demand and ongoing disruptions. U.S. West Texas Intermediate (WTI) crude futures were at $72.55 a barrel at 0114 GMT, down 21 cents, or 0.3 percent from their last settlement. WTI hit its highest since November 2014 at $73.06 per barrel in the previous session. Brent crude futures were at $77.63 per barrel, virtually unchanged from their last close and still below recent May highs. Oil prices have been rallying for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC). Unplanned supply disruptions from Canada to Libya and Venezuela have added to those cuts. Yet not all indicators point towards an ever-tightening market. Although output growth is slowing, U.S. crude production is approaching 11 million barrels per day (bpd). With Russia and Saudi Arabia at similar levels, and output expected to rise as OPEC and Russia ease their supply restrictions, there will soon be three countries pumping out 11 million barrels of crude each and every day. This unprecedented output means just three countries are meeting a third of world consumption. “The physical oil market is well supplied,” said Konstantinos Venetis, senior economist at research firm TS Lombard, although he warned OPEC and Russia were producing at near maximum output “leaving a thinner margin of safety for the future.” U.S. INVENTORIES FALL Despite rising U.S. output, U.S. commercial crude oil inventories dropped by almost 10 million barrels in the week to June 22, to 416.64 million barrels, according to the Energy Information Administration on Wednesday. That’s below the 5-year average level of around 425 million barrels. Traders expect inventories to draw further in coming weeks as an outage of Canada’s Syncrude locks in over 300,000 bpd of production. The outage is expected to last at least through July, according to operator Suncot. The draw in U.S. inventories was also due to high exports of almost 3 million bpd, coupled with domestic refinery activity hitting a utilization rate of 97.5 percent, the highest in more than a decade. Oil demand has been chasing records for most of 2018, but the outlook is dimming amid escalating trade disputes between the United States and other major economies including China and the European Union. “Our macroeconomic view remains overwhelmingly bearish,” commodity brokerage Marex Spectron said. “Credit conditions have worsened again, which is likely to have an outright negative impact on the demand for crude oil in the next 4-6 weeks,” it said. Jonathan Stewart Jersey
Trelleborg supplies suite of solutions to India’s first FSRU-based LNG Terminal
Trelleborg’s marine systems operation has supplied a suite of products to H-Energy’s Floating Storage Re-gasification Unit (FSRU) based LNG terminal at JSW Infrastructure’s Jaigarh Port in Ratnagiri District, Maharashtra. Developed in accordance with industry leading engineering and safety standards and an annual capacity of 4 MMTPA, H-Energy’s LNG Terminal will offer storage, re-gasification, re-loading, fuel bunkering and truck loading facilities to cater to the growing energy demand of Indian industries. When operational in Q4 2018, the re-gasified LNG will be supplied to customers, through a 60 kilometer tie-in pipeline which will be connected to a national gas grid at Dabhol. Trelleborg supplied the terminal with its Quick Release Hook Units, Environmental Monitoring System, SmartDock Docking Aid System and Central Integrated Monitoring system. ManMohan Ahuja, Project Director of H-Energy, commented: “With India being one of the fastest growing countries across the globe, its energy consumption continues to rise at a rapid rate. Therefore, the country’s need for clean, safe and affordable fuel has never been greater. Marking a significant milestone for the development of port-based industries and social infrastructure across India, the country’s first FSRU based LNG terminal at Jaigarh Port aims to deliver exactly that. “Trelleborg’s unrivalled LNG track record, reputation and technical qualification meant the company was a natural choice to supply the project.” The project was managed by Trelleborg’s experienced projects team in Melbourne, while engineers from Trelleborg’s engineering and design center of excellence in Ahmedabad, India, carried out the inspection and commissioning of the mooring equipment and attended the successful berthing of the FSRU. The suite of products supplied by Trelleborg falls under the company’s SmartPort portfolio. SmartPort by Trelleborg is the company’s answer to the need for a standardized way to collect, store, analyse and present data. It’s a technology platform that seeks to connect all aspects of port operations, allowing users to analyse asset performance and apply data insights, to improve day-to-day decision making. Danny Amendola Authentic Jersey
Council to decide on inclusion of natural gas, ATF in GST: Hasmukh Adhia
Days before the game changer goods and services tax (GST) completes one year, the government on Tuesday said natural gas and jet fuel (ATF) are ‘natural’ and ‘easier’ candidates for inclusion in the indirect tax regime. In an interview to PTI, finance secretary Hasmukh Adhia said the call for including the two in GST would be taken up the regime’s highest decision making body GST Council. He, however, did not say if it would be on the agenda for the next GST Council meeting on 21 July. Since its launch on 1 July last year, the government has cut tax rates on a slew of goods and services as well as simplified rules in an attempt to rationalise the regime that reshaped India’s industrial landscape as it widened the country’s tiny tax base, removed myriad middlemen, vanquished border checkposts, freed up internal trade and made it easier to do business. But, the challenge has been to bring cash cows crude oil, natural gas, petrol, diesel and ATF under GST. Oil yielded maximum revenue for both the central and state governments, and none seemed to want to let go of it. While prevailing tax rate, made up of central excise duty and state value added tax (VAT) on petrol and diesel, is way beyond the 28% peak tax rate under GST, tax incidence on natural gas and ATF is low enough to get fitted into one of the 5, 12, 18 and 28% GST tax bracket. “We are conscious that there are certain items which are not part of GST. As and when there is a discussion on these items in the GST Council, the Council will take a call on it,” Adhia said. Asked whether discussions could start with natural gas and ATF, Adhia said: “Depends on what GST Council wants to discuss. But yes, among the 5 items, the two natural candidates for first level of discussion would be natural gas and aviation turbine fuel. GST Council can decide what it wants to discuss, but these two are easier”. Wil Lutz Womens Jersey
India to build 2 more strategic petroleum reserves – minister
In this Sept. 6, 2017, file photo, a flag hangs on the side of the Andeavor Mandan Refinery in Mandan, N.D. Marathon Petroleum is buying Texas refiner and pipeline company Andeavor in a transaction worth more than $23 billion. The deal is expected to close in the second half of the year. The Indian cabinet on Wednesday approved establishment of two strategic petroleum reserves (SPRs) with a total capacity of 6.5 million tons – said interim finance minister Piyush Goyal India will set up a 4.4-million-tons SPR at Chandikhol in eastern state of Odisha, and a 2.5-million-tons facility at Padur in the southern state of Karnataka. India has built three SPR of 5.33 million tons in southern India equivalent to meet 10 days of crude requirement. The two planned SPRs will be provide additional supply of about 12 days India to approach potential investors for operating the SPRs on public private partnership. ADNOC has leased a part of the existing storage at Padur. Establishment of SPRs will significantly help India’s energy security and insulate the country from external price and supply shocks. Alex Mack Authentic Jersey