Indonesia offers five oil and gas blocks, including three greenfields
* Indonesia is offering five oil and gas blocks, three greenfield and two already producing blocks, in its first round of tenders in 2019, Deputy Energy Minister Arcandra Tahar told reporters on Thursday * The three exploration blocks being offered are Anambas Block in offshore Natuna, West Ganal Block in offshore Makassar Strait and West Kaimana Block onshore and offshore West Papua * The other two blocks are Selat Panjang Block and West Kampar, which have been offered in the previous tender, but there was no winning bid * “We offer them again with (a) more attractive clause. There are costs from previous contractors that we no longer include as costs that must be borne by the tender winner,” Tahar said * All of the oil and gas blocks will use gross split contracts. The government expects $29 million of signature bonus from these offered blocks and bidding documents must be submitted on April 25th at the latest
Energy Transfer expands Bakken oil pipeline capacity to 570,000 bpd
Energy Transfer LP said on Thursday it boosted capacity on the Dakota Access pipeline system to 570,000 barrels per day (bpd) as production in the Bakken shale basin has climbed to record highs. Flows on the pipeline averaged above 500,000 bpd in the fourth quarter and nominations for space on the line exceeded available capacity during the quarter, a company executive said on its earnings call. Energy Transfer said it is considering more expansions on the system due to the surge in demand, adding it would be able to add capacity by increasing horsepower to boost throughput. In North Dakota’s Bakken region, shale production is estimated to rise about 13,000 bpd to a record 1.45 million bpd in March. A shale revolution has helped propel the United States to the position of world’s biggest crude oil producer, ahead of Saudi Arabia and Russia. Total crude production has climbed to a weekly record of 11.9 million bpd. Energy Transfer also said it has enough commitments to move forward on a proposed a 600-mile pipeline from the Permian Basin, the biggest oilpatch in the country, to the Gulf Coast that would add at least 1 million bpd of capacity. However, the company said it is now in talks with Exxon Mobil Corp and Plains All American Pipeline LP to possibly combine the two projects. Exxon, Plains and Lotus Midstream said last month they will build a pipeline that can carry over 1 million bpd of oil and condensates from the Permian. That line is expected to begin operations in the first half of 2021. Energy Transfer’s Permian-to-Gulf-Coast (PGC) pipeline was expected to be in service in mid-2020, but it is now more likely to startup in 2021, if a Final Investment Decision (FID) can be made in the next 30 days. “We’re in serious discussions with Exxon and Plains, if it makes more sense to join their project and have fewer projects built that are full on day one, that is certainly a possible direction we’ll go,” a company executive said. Flows on all three lines of the company’s existing Permian Express pipelines are running at full capacity. Energy Transfer also said it is nearing completion of the construction on the Bayou Bridge system’s segment from Lake Charles to St. James, Louisiana. Commercial operations are expected to begin in March. When completed, Bayou Bridge is expected to be capable of moving up to 480,000 bpd of crude from different sources to the St. James hub, which is home to refineries located in the Gulf Coast region.
Uzbekistan seeks $300 mln loan from Russia’s Gazprombank for gas complex
Uzbekistan is seeking a $300 million loan from Russia’s Gazprombank as it wants to increase output at its state-run Shurtan gas and chemical complex, the president’s office said on Thursday. The complex, which produces polyethylene, is operated by Uzbekistan’s state oil and gas company Uzbekneftegaz, a strategic partner of Russian state gas company Gazprom which is a major shareholder in Gazprombank. Uzbekistan’s President Shavkat Mirziyoyev sent a request to officials at the energy and finance ministries to seek a $300 million loan from the Russian bank, according to a statement on Mirziyoyev’s website. Gazprom has been operating energy projects in Uzbekistan since 2002. Gazprombank, Russia’s third biggest lender by assets, said in a statement that it aimed for further development of mutually beneficial relations with Uzbekistan in various areas including energy and was considering the $300 million loan as part of cooperation with Uzbekneftegaz.
Hydrocarbon project: Movement to hold rally in Thanjavur
Movement Against Destruction will be staging a massive rally against all the ongoing and proposed projects, which pose a threat to environment and humanity. The protest is scheduled to be held on March 2, in Thanjavur, founder and president of the movement KK R Lenin said. Speaking to reporters here on Thursday, he said that they vehemently oppose hydrocarbon extraction project, thermal power project, Kudankulam nuclear power plant, and the proposed Sagarmala project and Neutrino project. All these projects are purposely implemented in Tamil Nadu with an ulterior motive of the destruction of Tamilians. It is total genocide of Tamils, he alleged. “The entire area starting from Karaikal to Nagapattinam should be announced as a protected agriculture zone, instead of the present status of a protected petrochemical zone. Once thermal power plants would come, all the trees will be chopped, which will lead to an acute shortage of rain,” he said. Once the Neutrino project would be implemented, the area would be utilized to stock nuclear waste, he alleged. During the process of oil and gas extraction, the rocks are being pierced or broken using a hydraulic and fracturing method. The process involves drilling of exploratory wells in the chosen places to release natural gas and oil from deep beneath the surface of the Earth. To extract gases they inject high-pressure fracturing fluid into the sedimentary rocks which crack the rocks. The high-pressure fluid is ultimately water, sand and a massive amount of chemicals, Lenin said. “The water pumped inside could be recycled using waste water treatment. However, more than 90% of water never returns to the surface. The water is just removed from the natural cycle and this will automatically lead to drought. The main risk associated with this extraction process is the potential contamination of drinking water with chemicals used in the process and when the Earth develops huge holes, it would lead to an artificial quake,” he added. So, all the destructive projects should be revoked. Moreover, the proposed projects which are ruining nature should be stopped, he added.
Senior level exits in Gujarat Gas as pvt players stoke competition
Public sector Gujarat Gas Limited (GGL), India’s largest gas distribution player, is facing a clear challenge from rising competition in city gas distribution (CGD). In the last twelve weeks, the CGD arm of the State-run Gujarat State Petroleum Corporation (GSPC) has witnessed at least a dozen top-level exits in favour of new CGD players. With a number of such ‘start-ups’ getting active in the space, the demand for skilled manpower has shot up sending shock-waves through the HR in established players such as GGL. Some of the exits at the levels of vice presidents, assistant VPs and heads of some key functions has forced GGL to rethink its HR policy and put in place measures to contain attrition. The destinations included players like Adani, Torrent, Think Gas, AG&P, Maharashtra Natural Gas, Green Gas among others. Head hunt Sources revealed that the newly-set up CGD entities have been on an aggressive head-hunt to run the highly-specialised business of gas. “In this fight for experienced talent, private companies are offering up to 50 per cent higher salaries and designations many levels up from the current role.” said a source from the sector, requesting anonymity. Admitting the concerns, GSPC Managing Director, T Natarajan told BusinessLine, “This had to happen following a sudden rise in CGDs. Now that this is a reality as demand for trained manpower has shot up, certain people are interested in moving out. But this is completely based on new opportunities and growth prospects.We are working on and taking up other HR initiatives to retain talent.” Following the Centre’s push for gas-based economy and focus on penetration of piped gas for households and commercial establishments, a spurt was seen in the number of CGD players. It is evident from the CGD bidding rounds by the sector regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) gained momentum post 2015.The tenth round is underway at present. GGL, which was taken over by the GSPC Group in 2013 from British Gas Group (BG), is seen as a repository of rich talent – in technical and managerial areas. One of the oldest gas players, GGL has over 22,000 km of gas pipeline network covering over 1.3 million households. A former employee of the company said, “The fabric of the Gujarat Gas culture has never been like a PSU. Even after the GSPC takeover, the company managed to keep its independent fabric intact. However, because of bureaucratic intervention, it could have fuelled the attrition of top executives.” Natrajan clarified that the exits will not affect GGL’s operations, “As a GSPC Group, we are able to take care of immediate problems. We have manpower at other group companies and have kept some cushion also.
CNG Pumps In India Get A Boost; Expect More CNG Pumps Near You
CNG pumps or stations in India will soon grow in number by a good margin. In other words, expect more CNG pumps near you or your resident location. At present, vehicles running on CNG (Compressed Natural Gas) occupy a small portion of India’s entire automotive sector. However, we can expect a shift in things in the not-too-distant future. Autocar India shares that a new business model was proposed at Petrotech 2019 — the 13th edition of the International Oil & Natural Gas Conference and Exhibition — that was held at the India Expo Mart at Noida, last week. At the event, Dharmendra Pradhan, Minister of Petroleum and Natural Gas, launched the Dealer Owned Dealer Operated (DODO) model for installing more CNG pumps in India. The general guidelines of the scheme state that the designated dealer land will be developed exclusively to set up CNG pumps and related commercial activities. This will be done at the CGD (City Gas Distribution) authorities’ discretion. 87 locations, serviced by 23 authorised bodies, will be covered under the new CNG scheme. In total, at least 4,600 CNG pumps are expected to open within the next eight years. Furthermore, a goal of covering 50 key areas (124 districts across 14 Indian states) that account for 24 per cent of the country’s geography and 18 per cent of its population is being considered. If this is proved a success, 53 per cent of India and 70 per cent of the Indian population will have better access to CNG stations. Put in simple words, within a decade, enough CNG fuel pumps will come near you. “India is moving towards a natural-gas-dependent economy,” shared the Minister. Compared to conventional petrol products such as petrol or diesel, CNG is cheaper and less polluting. The Petroleum and Natural Gas Regulatory Board (PNGRB) has shown an interest in the proposed CGD network as well. In addition to this, Maruti Suzuki recently shared their plans to discontinue diesel model and make more CNG cars.
Bangladesh PM’s office revives Swiss trader AOT’s LNG supply deal
Bangladesh’s prime minister has given the nod to a multi-billion dollar LNG supply deal with Swiss trader AOT Energy but the energy ministry will make a final decision on whether it goes ahead, an official at the premier’s office said on Wednesday. The deal with AOT to supply 1.25 million tonnes of liquefied natural gas (LNG) for 15 years has long been in the works, with terms agreed last February. Last month, the gas company that oversees Bangladesh’s LNG supplies, Rupantarita Prakritik Gas Co, said the deal would not go ahead. However, a document issued by the office of Prime Minister Sheikh Hasina on Jan. 28, and seen by Reuters on Wednesday, showed the government has not scrapped the plan. “In reference to the letter of (the) global head of AOT Energy, the Energy Ministry has been asked to take necessary action for finalising a long-term deal for LNG with AOT Energy,” the document said, referring to communication the prime minister’s office had received from AOT about finalising a deal. Tarikul Islam, director of the prime minister’s office, confirmed the letter. However, he said this did not seal the deal. “Based on a letter from AOT Energy, we have sent a letter to the energy ministry to take necessary action. But this is the ministry’s call whether they want to go ahead with them or not,” Islam said. The energy ministry did not respond to requests for comment. AOT declined to comment. The terms of the deal are secret but broadly speaking, using current LNG prices, the deal would be worth $6.3 billion. This would be AOT’s first long-term LNG contract although it trades LNG on the spot market and has short-term contracts. Its pipeline gas and LNG volumes amounted to 6.5 billion cubic metres last year, roughly 4.7 million tonnes’ worth of LNG. Bangladesh is new to LNG and only began importing it last year. Industry players say it is still on a learning curve and that its strategy has been haphazard at times. One government official conceded the nation had taken on too many projects without proper planning. The country received its first cargo of LNG last April. Qatar supplies one terminal under a 2.5 million tonnes a year (mtpa) deal. A 1 mtpa deal with Oman will kick in once a second terminal starts operations in March. Bangladesh has imported around 1 million tonnes since September when regular supplies began, according to Refinitiv Eikon data. With indigenous gas production dwindling, the nation of 160 million people is set to be a significant player in the global LNG market, alongside Pakistan and India. However, it has tempered its initial enthusiasm. Officials at one point were considering a dozen import projects but have since pared the list down and shifted focus to building onshore rather than floating facilities.
India will lay 2,000 Km LPG pipeline costing Rs 90 billion – Pradhan
India To Lay 2,000 KM – LPG Pipeline Costing 90 Billion Rupees From West To East India. Emphasis Is On Raising Hydrocarbon Production. New Exploration Licensing Rules Are Not Focussed On Profit And Revenue. Explorers Are Given Marketing, Pricing Freedom For Sale Of Hydrocarbons. New Exploration Rules Will Be Largely Applicable To 19 Basins. India To Lay 2,000 Km – LPG Pipeline Costing 90 Billion Rupees From West To East India. ONGC, Oil India Allowed To Induct Private Cos To Boost Output From Nomination Fields. New Exploration Rules Will Be Introduced In Future Licensing Rounds.