Bharat Petroleum Is Promoting Officers, Managers Before Sell-Off To Private Company: But Why?
Ahead of privatization, Bharat Petroleum Corporation Ltd (BPCL) has promoted officers. Officers who were deputy general manager were promoted to general managers, general managers were made chief general managers while chief general managers were made executive directors. Ahead of privatization, in what seems to be a departure from general practice, the state-run oil company has promoted 64 officers. These include eight as executive directors. Promotions & Transfers: Human Resources Department on December 30, 2020 issued an office note and according to it the promotion is a part of a list of 225 officers. Some of these officers are also transferred. These promotions as well as transfers took effect from January 1. These tasks earlier, for many years, have been carried out in March and took effect from 1 April. Soon, a second list of promotions is expected from managers to senior managers, those from senior managers to chief managers and from chief managers to deputy general managers. Indicating why the promotions were offered earlier this time to the officers, a source said that it was because promotions may not happen immediately after privatization. The oil refining and marketing company did not respond to an email seeking comment. However, after two months of issuing notifications in this regard, BPCL has put on hold promotions of general workmen, two months after notification was issued in this regard. Some general workers who are in the current post for more than three year period. A source said that these workers despite being eligible for the promotion have not been interviewed for the grade up. Govt Plans To Sell Its 52.98% Stake BPCL is India’s second largest fuel retailer as well as third biggest oil refiner and the process of its privatization has been initiated by the government. The government plans to sell its 52.98 per cent stake to a strategic buyer. Expressions of interest to buy the stake of government in BPCL has already been filled by private equity firms Apollo Global Management Inc and I Squared Capital as well as Anil Agarwal’s Vedanta Ltd.
GAIL Gas wins award ‘City Gas Distribution – Established Company of the Year’
GAIL Gas, subsidiary of GAIL (India), has been awarded the ‘City Gas Distribution – Established Company of the Year’ by Federation of Indian Petroleum Industry (FIPI). The award recognises leadership in performance by operating City Gas Distribution (CGD) network for distribution of Natural Gas to consumers in the domestic, industrial, transport and commercial sectors in a Geographical Area (GA) in India during the year of award.
Govt expects Rs 150 billion investments in petrochemical zone
The state government will start allotment of land in the Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) from July this year and it expects an investment of Rs 150 billion in the area and job opportunities for 1,50,000 people. At a global virtual meeting organised on Wednesday by CII between potential investors from across the world and state government, representatives from nearly 100 companies like Saudi Arabia, the UAE, Oman, Germany, the UK, the USA, Switzerland, Netherland, France, Japan, Singapore, Taiwan, Brazil, Bahrain, Jordan, South Korea, and South Africa participated. Senior ministers and officials of the state assured investors of support and opportunities in the sector. “It is the first global dialogue for investment, however, we wish to hold it as a continuous process for facilitating investments in the region,” said industries minister Parsadi Lal Meena. The PCPIR is being developed by RIICO near the 9 MMTPA HPCL Rajasthan Refinery and Petrochemcial Complex in Barmer district. A range of petrochemical products, including polyethylene, polypropylene, butadiene, benzene and toluene from the refinery will be available for the downstream industries in the region. Situated nearly 9-13km from the refinery, the first phase includes 93 industrial plots spread over 243 hectares. The state government through the dialogue also sought suggestions to improve the investment ecosystem. “New mining policy is being drafted and the suggestions of the participants are most welcome and those would be included for consideration of state government,” said Pramod Jain Bhaya, mines and petroleum minister. The Rajasthan government’s efforts in advance of the global auction also drew appreciation of HPCL chairman Mukesh Kumar Surana. He said that early commencement of work on PCPIR would give investors adequate time before operations of refinery commence next year. He said that there was some impact of Covid on progress of refinery development, however, work has now resumed at normal pace. Principal secretary to CM and RIICO chairman Kuldeep Ranka highlighted the advantages for investment in the PCPIR. During his presentation on opportunities in petroleum sector, MD RIICO Ashutosh Pednekar said that India’s per capita plastic consumption at about 11kg is much less to the world average of 33kg and it offers huge growth potential in products of petrochemicals. Advisor to CM Govind Sharma and Arvind Mayaram also addressed the participants and informed of the investment opportunities.
AG&P Pratham opens first LCNG) Station in Jodhpur
AG&P, the global downstream LNG and gas logistics company, on Thursday announced the opening of its first wholly owned Liquefied & Compressed Natural Gas (LCNG) station in Jodhpur, Rajasthan, under its India City Gas Distribution (CGD) arm – AG&P Pratham. Located at Kalptaru Jodhpur, Rajasthan, the LCNG station comprises of two (2) storage tanks with capacity of 56 MT of LNG storage and gasification. The LCNG station will ensure uninterrupted access of natural gas to commercial, industrial, and residential customers not connected to the gas pipeline, including owners and drivers of any CNG-powered vehicle – from auto-rickshaws to taxis, cars and light commercial trucks. This is the first LCNG station in the entire state of Rajasthan. With the opening of the wholly owned LCNG station, Jodhpur now has six AG&P Pratham CNG stations in operation in the areas of Diesel Shed, Pal Road, Lalsagar Road, Soorsagar Road, Mandore and Salawas. Three more – two on Pali Highway and one on Banar Road are expected to be commissioned next month. AG&P Pratham is also laying pipelines in Jodhpur to deliver Piped Natural Gas (PNG) directly into thousands of homes, businesses, and factories.
Oil tanker market in rougher seas as supply surges, storage sinks
A plunge in the volume of crude oil stored on ships combined with unexpected cuts from top producer Saudi Arabia have created a glut of vessels available for hire, pressuring the outlook for supertankers this year. Earnings for very large crude carriers (VLCCs) in 2020 reached record highs of more than $240,000 a day as the coronavirus battered demand, creating an oil surplus and a scramble for storage on land and sea. Rates have since dropped to $7,000 a day. “Right now, it is really as bad as it gets for the VLCC market. Floating storage has more or less unwound and the return of that tonnage to the spot market has pressured rates,” Aristidis Alafouzos, chief operating officer of Okeanis Eco Tankers, told Reuters. “The loss of 1 million bpd of Saudi production equates to annualised tanker demand destruction of 23 VLCCs.” Clarksons Research Services estimated that as of Jan. 22, 95 vessels – the equivalent of 130 million barrels – were being used for storage versus a peak of over 290 million barrels in May last year. IHS Markit said volumes on ships – also static for 14 or more days – had dropped to 52 million barrels, the lowest level since the peak in mid-2020 when it reached 190 million barrels. “IHS Markit does not expect a repeat of last year’s explosive floating storage growth in 2021,” said principal lead analyst Fotios Katsoulas. “Declining floating storage could further support oil prices in the near-term, as it is considered an indication for demand recovering.” The numbers exclude Iran’s fleet holding oil and non-commercial longer-term storage by companies. Demand for floating storage at the peak of the crisis last year was also driven by a market contango, a price structure whereby cargoes for delivery in the shorter term are cheaper than those for later delivery. It encourages traders to store fuel until prices pick up.
Hit by pandemic & rising fuel rates, transporters seek relief in Budget
Transporters are expecting a reduction in fuel prices in the February 1 Union budget as a measure to help them tide over the losses running into crores of rupees because of the Covid-19 pandemic. Kultran Singh Atwal, president of the All India Motor Transport Congress, said, “Road transport is a key link of the supply chain and the pending demands related to the sector should be fulfilled in the Budget. Petrol and diesel should be brought under the ambit of the Goods and Service Tax (GST). This will ensure uniform pricing of fuel (see box) across the country. The government should also announce cuts in the excise duty to reduce the impact of the rising fuel prices.” He said, “The transport sector get the ‘specific segment’ status. Also, the GST on third party premium on commercial vehicles carrying goods and passengers should be zero.” In Pune, most transporters said relief from the rising fuel prices and tax exemption on their vehicles were xpected in the Budget. “Only 70% of the transport vehicles are operational across the country and business recovery is slow. The rising prices of fuel are adding to our problems. If fuel is brought under GST, it will be free from VAT or excise duty. This can ensure uniform pricing,” Baba Shinde, president of the Maharashtra State Vahan Chalak Malak Pratinidhi Sanghatna, told TOI. Kiran Desai, secretary of the Pune Bus Owners Association, said, “Be it the price of fuel or spares, our woes have not ended. There has to be a favourable atmosphere for us to do business and stay afloat.” Balasaheb Khedekar, president of the Pune district luxury bus association, said, “Of the registered 8,000 luxury buses, only 60 are operational. We cannot increase the fares to tide over the rising fuel prices. Besides, we are not getting a large number of passengers.”