India can save Rs 1000 billion on crude oil imports by meeting 30% EV penetration target: Study
India can save on crude oil imports worth more that Rs 1000 billion ($14 billion) annually if electric vehicles (EVs) are to garner 30% share of country’s new vehicle sales by 2030, according to an independent study released by the Council on Energy, Environment and Water (CEEW) on Monday. The increase in electric vehicles penetration could also increase the combined market size of powertrain, battery and public chargers to more than Rs 2000 billion ($28 billion), in addition to creating 1,20,000 new jobs in this sector. In addition, a substantial number of new jobs are likely to be created in emerging areas such as battery recycling, telematics and allied construction and services. The CEEW study, supported by the Shakti Sustainable Energy Foundation, also found that meeting the 30% EV penetration target in 2030 could lead to several environmental benefits including a 17% decrease each in primary particulate matter and nitrogen oxide and dioxide (NOx) emissions, 18% reduction in carbon monoxide emissions, and a 4% reduction in greenhouse gas emissions relative to the business as usual scenario (BAU). Abhinav Soman, one of the authors of the study and a researcher at CEEW, said, “As India recovers from the pandemic, a focus on developing India’s domestic EV manufacturing sector and increasing the penetration of electric vehicles in road transport would help deliver on jobs, growth and sustainability. This would require creating a robust and comprehensive transition plan for electric mobility that capitalises on the opportunities created in the form of improvement in balance of payments, new markets, and jobs generated. Further, we strongly recommend that the EV roadmap for India should target a significantly higher share of EV penetration as the 30% target could be achieved just via the sales of electric two-wheelers and electric three-wheelers.” As compared to the BAU, the CEEW study also highlights that 30% EV penetration would include trade-offs such as an estimated 19% fewer jobs in the oil sector and in the internal combustion engine (ICE) vehicle manufacturing sector combined. Further, the combined annual value add loss in the oil and the automobile sector could amount to about Rs 2000 billion ($25 billion). In addition, the central and state governments would lose over Rs 1000 billion in tax revenue annually from reduced sales of petrol and diesel.
Cairn’s temporary extension for Barmer block continues, latest till Jan
The country’s most prolific Barmer oilfield operated by billionaire Anil Agarwal-led Cairn Oil and Gas has been denied full extension of production sharing contract once again with the government allowing the company to operate the oilfield only for three more months. The temporary extension has been given to the company on five occasions since the expiry of the initial licence period in May. The latest extension is now till January 31, 2021. The company had been reduced to operate on temporary permission from the government which has denied full 10-year extension to the company’s production sharing contract, claiming higher share of profit petroleum. After prolonged delays, the government had in October 2018 agreed to extend by 10 years the contract for Barmer fields after the expiry of the initial 25-year contract period on May 14, 2020. This extension, however, was conditional upon the company agreeing to increase the share of government’s profit (profit petroleum) from the oil and gas produced by 10 per cent. Sources said that with the company challenging the government call for higher profit petroleum in courts and now also issuing a notice on arbitration disputing the claims, a formal extension of Barmer PSC has been denied to the company and it is operating on temporary extensions. The 25-year PSC of the company expired on May 14, 2020 and since then the company has already got extensions ranging from 15 days to three months. The first three-month extension expired in mid-August after which a 15-day extension was given till the month end and then extension was given till September 30, then till October and and now till January 31. “The Rajasthan PSC allows extension on the same terms for a period of 10 years in case of commercial gas production and we are accordingly eligible for the extension. The block produces more than 20 per cent of India’s crude oil production and has the potential to double this over the next three years. This requires a reduction in fiscal levies and administrative support for timely approvals,” Cairn Oil and Gas had said in a statement shared with IANS earlier. What has irked the company is the government changing the goalpost while committing on extensions. The latest being government claiming additional profit petroleum after re-allocating Rs 2,723 crore common cost between different fields in the block and disallowing Rs 1,508 crore cost on a pipeline, sources privy to the development said. The company has already disputed the claims and issued a notice of arbitration. “We have referred a few matters to arbitration that we were not able to mutually resolve. We are hopeful to see some positive outcomes; we are committed to produce in this block and contribute significantly towards a self-reliant economy,” the company statement had said earlier. Vedanta had earlier claimed that the delay in the extending PSC was preventing it from infusing further investment of over Rs 30,000 crore in the project and giving it the necessary lead time to plan production. It had also contended that when none of the state-run companies could find oil in the block, it had invested around Rs 10,000 crore in exploration back in 1995 when the PSC was entered into. It had also claimed that the government has earned around Rs 80,000 crore from commercial production out of the area. In its plea before the court earlier, Vedanta had said that the estimated recoverable assets in the block were about 1.2 billion barrels of oil equivalent, of which 466 million barrels are expected to be recovered beyond the current PSC period until 2030. The extension will also allow the company to develop gas to the tune of about 3.5 mmscmd available in the fields. It was also producing natural gas from the block and supplying it to government companies. The Barmer block, otherwise known as the Rajasthan block, comprises Mangala, Bhagyam, Aishwariya and Raageshwari oil and gas fields. It is the biggest onshore oil producing project in India and its current output hovers around 166,943 barrels of oil equivalent per day. While oil recovery from the block would deplete, Cairn would use the extended period to increase gas production. The Directorate General of Hydrocarbons (DGH), the upstream nodal authority of the Oil Ministry, had given its approval for 10-year extension to Cairn PSC in 2018 subject to payment of additional profit petroleum. Cairn had challenged it before the Delhi High Court and the matter is sub-judice.
OVL acquires Australia’s FAR Ltd stake in Senegal block for $45 mn
ONGC Videsh has agreed to acquire participating interest in a Senegal offshore oilfield for $45 million. ONGC Videsh, the overseas arm of the state-run ONGC, has signed a definitive binding agreement with FAR Senegal RSSD, a unit of Australia’s FAR Ltd, for acquiring 13.66% participating interest in exploitation area of Sangomar field and 15% participating interest in the exploration area of Rufisque, Sangomar offshore and Sangomar Deep Offshore (RSSD) block, the Indian company said in a statement. The total investment involved including the development cost until the first oil is expected to be around $600 million, the company said. The Sangomar Field, currently under development, is located in the deep waters of Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry Basin (MSGBC Basin), Offshore Senegal, covering an area of 772 sq. kms. and is planned to go on production in 2023 under Phase-1 development, ONGC Videsh said. Woodside is the operator of the block and is in the process of raising its stake to 68.33% in Sangomar Field and 75% in the exploration area. Petrosen, the national oil company of Senegal, is another partner in the block.
OVL acquires Australia’s FAR Ltd stake in Senegal block for $45 mn
New Delhi: ONGC Videsh has agreed to acquire participating interest in a Senegal offshore oilfield for $45 million. ONGC Videsh, the overseas arm of the state-run ONGC, has signed a definitive binding agreement with FAR Senegal RSSD, a unit of Australia’s FAR Ltd, for acquiring 13.66% participating interest in exploitation area of Sangomar field and 15% participating interest in the exploration area of Rufisque, Sangomar offshore and Sangomar Deep Offshore (RSSD) block, the Indian company said in a statement. The total investment involved including the development cost until the first oil is expected to be around $600 million, the company said. The Sangomar Field, currently under development, is located in the deep waters of Mauritania, Senegal, Gambia, Guinea-Bissau and Guinea-Conakry Basin (MSGBC Basin), Offshore Senegal, covering an area of 772 sq. kms. and is planned to go on production in 2023 under Phase-1 development, ONGC Videsh said. Woodside is the operator of the block and is in the process of raising its stake to 68.33% in Sangomar Field and 75% in the exploration area. Petrosen, the national oil company of Senegal, is another partner in the block.