Nayara Energy exports decline by 10% in 2023 as domestic demand surges
Nayara Energy, India’s largest private fuel retailer, saw petroleum product exports drop by 10 per cent in 2023 as it supplied more products domestically to meet the fuel demands of a growing economy, sources said. Nayara, which operates a 20 million tonne a year oil refinery at Vadinar in Gujarat and a network of over 6,500 petrol pumps, exported 6.21 million tonne of petroleum products, including jet fuel, gasoil (diesel) and gasoline (petrol) between January 2023 and December 2023, down 10 per cent year-on-year. This was primarily because of larger consumption at home. The company is catering to the domestic market through institutional business, sales to other oil companies and its own retail chain. Of all the petroleum products Nayara produced, 68 per cent were sold within the country and the remaining 32 per cent of products, including, ATF, gasoil and gasoline were exported, sources said. According to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC), consumption of petroleum products rose 5.1 per cent to 192.7 million tonnes during the first 10 months of the current fiscal. This growth was led by a 6 per cent expansion in petrol, 4 per cent in diesel and 12 per cent in ATF consumption. Natural export markets for Nayara are in the Middle East, Africa and South-East Asia – the markets, which have a consistent appetite for the company’s products throughout the year, they said, adding the firm did not supply any gasoline or gasoil to Europe during 2023. Commercially, it is unviable to cater to the seasonal requirements of EU markets (winter grade diesel). “Nayara’s diesel does not meet the winter specification requirements of the EU market,” a source said. Africa, South-East Asia and the Middle East got 81 per cent of all products Nayara exported in 2023. Out of the total 6.21 million tonnes exported, gasoil exports stood at about 3.45 million tonnes, roughly 56 per cent of all exports for the same period. Some of the export markets include Africa, the Middle East, South east Asia and Australia. While Nayara supplied no gasoil to Europe during 2023, the percentage of the fuel exports to the EU has been less than 3 per cent of the total gasoil exports during the last five years, sources said.
First crude oil offtake from new FPSO represents ‘historic achievement in India’s energy sector
India’s government-owned energy giant Oil & Natural Gas Corporation (ONGC) has held a flag-off ceremony for the first crude oil offtake from a floating production, storage, and offloading (FPSO) vessel, which is working at what is said to be the first deepwater development located off India’s east coast. Following the FPSO Armada Sterling V’s first oil at the Block KG-DWN 98/2 development project on the east coast of Kakinada offshore India, Shri Narendra Modi, India’s Prime Minister, flagged off the first crude oil tanker Swarna Sindhu from ONGC’s Krishna Godavarideepwater block. This project is anticipated to add 7% to India’s oil and gas production at its peak production level. The flag-off ceremony, organized in Begusarai in Bihar, was graced by Bihar Governor, Shri Rajendra Vishwanath Arlekar; Bihar Chief Minister, Shri Nitish Kumar and Shri Giriraj Singh, Minister of Rural Development and Panchayati Raj Department and MP, Begusarai Loksabhaconstituency along with Shri Hardeep Singh Puri, India’s Minister for Petroleum & Natural Gas and Housing & Urban Affairs, along with senior dignitaries from Petroleum Ministry, Shri Arun Kumar Singh, Chairman and CEO of ONGC and the firm’s directors. Developed with an investment of over 410 billion rupees (around $4.95 million), ONGC claims that the KG-DWN 98/2 deepwater oil field M in Krishna Godavari Basin is one of the most technologically complex projects. The total anticipated daily peak gas and oil production from the project is about 10 million standard cubic meters per fuel or 45,000 bopd.
India talking to Guyana, Suriname, Namibia for oil import: Hardeep Singh Puri
India has been talking to Guyana, Suriname and Namibia regarding oil cooperation, informed Union Petroleum Minister Hardeep Singh Puri on Monday while asserting that there is no shortage of crude oil globally. His statement comes as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are extending their voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter. Responding to the development, Puri said: “Whatever decision Opec+ takes it is their sovereign decision… I speak with confidence as a representative of a country that we will navigate through this. If you sell, we will buy. If you don’t we will buy from someone other.” “There is no shortage of crude oil in the world. My view is that there is enough oil present with Opec+… we have been talking to Guayana, Suriname, Namibia. Venezuela has some difficulties $600 million were stuck… that is coming in. I am confident. We will navigate through this. In coming time I don’t see any difficulty in this,” he added. India, the world’s third-biggest oil importer and consumer, is looking to diversify its crude sources. India is considering a multi-year oil purchase agreement with Guyana. Last year, the Ministry of External Affairs also said India is keenly looking at oil and gas cooperation with Guyana and Suriname. Discussions in this regard were held during meetings of President of Cooperative Republic of Guyana Dr Mohamed Irfaan Ali and Republic of Suriname president Chandrikapersad Santokhi with President Draupadi Murmu and Prime Minister Narendra Modi on the sidelines of Pravasi Bharatiya Divas convention last year in January. Meanwhile, India and Namibia are exploring possibilities regarding oil and gas cooperation. During his visit to Namibia, External Affairs Minister S Jaishankar last year said there is a much clearer picture of the possibilities before the two countries. “Closer cooperation in the field of energy, including in oil and gas, green hydrogen, and solar,” he has said. India, the world’s third-biggest oil importer and consumer, is dependent on crude oil from various sources in the global market to meet its domestic demand.
WTI Sheds Over 1.6% As Demand Trumps Everything Else
Oil prices shed over 1% on Monday despite rising tensions in the Red Sea and on the front lines of the Israel-Hamas conflict, with OPEC+ extending voluntary production cuts and demand sentiment taking a beating from an unusually mild winter. At 2:28 p.m. ET on Monday, Brent crude was trading up 1.05% at $82.67, while West Texas Intermediate (WTI) was trading up 1.66% at $78.64. On Sunday, OPEC+ agreed to extend its 2.2-million-barrel/day voluntary production cuts for another quarter, with this outcome already having been priced in ahead of time. Russia also said it would deepen cuts by over 470,000 bpd in the second quarter of this year, while also easing curbs on exports. Russia already has a 500,000-bpd cut quote for production and exports. While this was a surprise move, it failed to move the oil price needle on Monday. “With OPEC loadings appearing steady and aggregate OPEC supply potentially showing little effect from incremental voluntary cuts implemented in Q1, we do not view the extensions from the broader group as particularly impactful,” Macquarie energy strategist Walt Chancellor told Reuters on Monday. Some analysts saw this morning’s brief increase in oil prices as a response to the Israel-Hamas conflict and the current stalemated ceasefire negotiations. “The OPEC+ rollover was baked in, it’s the Gaza crisis that prices are responding to,” Vandana Hari, founder of Vanda Insights, told Bloomberg. “As long as the cease-fire negotiations remain in a stalemate, crude is likely to either hover around current levels or come under further upward pressure.” Rystad Energy’s Jorge Leon told Reuters that OPEC+ cuts would result in 34.6 million bpd in output for Q2, down 1.4 million bpd from earlier forecasts.
India to bid for Israel oil-and-gas exploration blocks
Indian state-run Oil and Natural Gas Corp. (ONGC) plans to bid for Israeli offshore oil-and-gas exploration blocks, India’s oil minister told Reuters, the first major deal between the two countries since a groundbreaking trip by Prime Minister Narendra Modi in July. India and Israel have deep defense ties but Modi and his right wing ruling group are pushing to expand the relationship into other sectors such as energy and technology with a country they see as a natural ally against terrorism. A high-ranking delegation from India, the world’s third-biggest oil consumer, visited Israel last month to discuss taking part in the tender for blocks in the Mediterranean Sea and Israeli officials said they were pleased with the visit. “We will definitely bid for Israel’s oil-and-gas blocks,” Indian Oil Minister Dharmendra Pradhan told Reuters. There was no immediate comment from Israel’s Energy Ministry. When Modi visited Israel in July, both sides showed interest to build a broader economic relationship, rather than one based on defense, which had drawn them together because of similar concerns about militant threats they face. They are starting from a relatively low economic base as bilateral trade was just $2 billion in 2016. Many oil majors have been hesitant to enter the Israeli market, fearing a backlash from oil-rich Arab states hostile to the country. Israel put 24 exploration blocks up for auction in November 2016 and the country’s Energy Minister Yuval Steinitz has said he would be happy to choose two or three foreign explorations groups. The auction closes on Nov 15. India is conducting a technical and commercial analysis to participate in Israel’s bidding process, said Sanjay Sudhir, a joint secretary in the federal Oil Ministry, who led the delegation. “We dove into all the relevant details of the tender — geological, technical — and familiarised them with Israel’s oil and gas ecosystem,” an official at Israel’s Energy Ministry said on the Indian team’s visit, declining to be identified in the absence of permission to speak to the media. Israel wants to open up its hydrocarbon sector, which is currently dominated by a partnership of Noble Energy and Delek Group. They control the Tamar and the much larger Leviathan fields. India also wants to participate in the upcoming auction to explore and develop gas fields off the coast of Lebanon, Pradhan said in July. Three of those blocks border waters with Israel, with which Lebanon has a long-standing maritime border dispute. ONGC is India’s biggest energy exploration firm and a source at its overseas investment arm ONGC Videsh said the firm would not bid for any block in areas disputed by Israel and Lebanon. “Israel has said that none of the blocks it has offered are in disputed waters,” said the source. Another state-run explorer, Oil India Ltd, has not yet decided to bid in Israel’s licensing round, the Indian company’s chairman, Utpal Bora, told Reuters. India’s decision to bid for blocks off Israel and Lebanon comes after a setback in getting development rights for a giant gas field in Iran. Indian companies discovered the Farzad B gas field in Iran in 2008 and have bid several times for the development rights, but media reports suggest that Tehran has decided to award the field to Russia’s Gazprom.