Confidence Petroleum’s subsidiary acquires over 75% stake in Sarju Impex
Confidence Petroleum India announced that its subsidiary – Futuristic Energetech has taken over 75% equity of Sarju Impex, situated at Dahej SEZ in the state of Gujarat. The unit is operational and is engaged in the activity of manufacturing of high pressure oxygen and CNG cylinders. The unit has the capacity to manufacture 1,80,000 high pressure oxygen and CNG cylinders per annum. The Board of Directors mentioned that using the expertise with cylinder manufacturing, we will ensure that the Company will push for further easing the supply crunch of oxygen cylinders in this time of distress. The acquisition is also a major step towards the integration plans within the CNG value chain and assist the CGD companies to expand their station network through cascades and ensuring availability of CNG cylinders for automobile vehicle. Ensuring green and clean fuel is within reach of every citizen.
OPINION: India’s energy data warehouse
We all have come across the expression “Data is the new oil”. Just like oil, unrefined data is not valuable in and of itself. Rather, the value is created when it is gathered completely and accurately, analysed with other relevant data, and done so in a timely manner. Although, unlike oil, data is infinitely renewable. Limitations in India India has five energy ministries (Department of Atomic Energy, Ministry of Power, Coal, Petroleum and Natural Gas, and Renewable Energy) and multiple energy-consuming sectoral ministries. No single organisation collects the energy data in a wholesome and integrated manner. For better planning, there needs to be a single place that collates all the energy data from all the different responsible ministries and departments. There is also a need for visualisation of the combined data from all the sectors, for better comprehension of policy and business decisions. Strong cross-ministerial coordination of all the energy ministries is required for this implementation. Strengthening the Energy Data Management Data helps us understand and shape the world around us. Publicly available official energy data is a crucial input to policy formulation, research, analytics and modelling, and business decisions. With this thought, India’s premier policy think tank, NITI Aayog, has taken several initiatives to provide robust and publicly available energy data. Eight subgroups have been formulated on the demand-side and supply-side in consultation with the ministries and think tanks to bridge the data gaps. The India Energy Dashboards Version 2.0 was launched on 12 April 2021. The Dashboards are the one-stop destination for the energy data of the country. It aims to be a pillar around which robust energy decisions are taken in India. Different ministries have detailed maps about the sectors of energy they engage in such as the National Power Portal, Online Coal Block Information System, India Online Exploration Database, etc. These maps are extensive in the area they cover. However, they fail to provide a holistic picture of the energy assets of the country. Geospatial Energy Map of India In 2017, NITI Aayog collaborated with ISRO to develop an integrated and dynamic Geographic Information System (GIS)-based Energy Map of India. These maps attempt to identify and locate all primary and secondary sources of energy and their transportation or transmission networks to provide a comprehensive view of energy production and distribution in India. Utility of Geospatial Energy Map of India GIS is closely linked to geography, cartography, and computer science. Using GIS allows easy record-keeping, improved communication and coordination among organisations, and improved decision-making. India’s per capita energy consumption is 0.36 times the global average. The goal is to ensure reliable energy access for all and accelerate the clean energy transition. India has set an ambitious target of 450 GW of renewable energy. GIS Energy Maps will be useful for infrastructure planning of energy assets including upcoming solar parks, wind parks, and biomass power plants. The visualisations will be utilised during inter-state and inter-sector coordination on infrastructure planning. The maps would prove helpful to identify at-risk or under-served populations within a community. Proper assessment of a community’s needs and existing energy assets will result in informed decisions. Electricity utility companies across Nigeria, Africa struggled with electricity theft. Enugu Electricity Distribution Company utilised GIS technology to tackle electricity theft. Similar applications in India’s electricity sector could be a practical solution to high AT&C losses. The government’s decision to open the coal sector for private sector participation in commercial coal mining was a major step in 2020. Using GIS, the organisations will be able to produce a least-cost path analysis for environment-friendly and cost-effective routes. GIS will help in determining the optimal path for coal transportation and the construction of oil and gas pipelines. The data in the maps will serve as investment guidance for private organisations in the energy sector of India. Features such as interactive and user-friendly map navigation, pre-defined data views, state-level energy data visualisation, and measure area/distance will prove advantageous to the users for effective planning. Another valuable use of GIS Energy Maps is disaster management and mitigation of possible energy disruption. GIS database with topology is beneficial in utility services in case of a power outage and service stoppages. It would prove beneficial to ensure the safety of energy assets due to harsh climatic conditions. Strong energy data is essential for preparing and strategising the energy security of the nation. GIS will help users to find answers to their questions and solve the problems by presenting data in simple visual ways.
Africa’s share in India’s oil imports hits 7-month high
Africa’s share in India’s oil imports surged to a seven-month high in April as refiners boosted purchases from small regional players such as Ghana and Congo on better economics and less competition from China, data obtained from sources showed. The share of African oil in India’s crude imports rose to 16.3% in April, the data showed. Overall, India’s oil imports in April declined 3.7% from the previous month as state-run Hindustan Petroleum Corp (HPCL.NS) did not receive oil for its Mumbai refinery, which was fully shut for revamp. Refiners shipped in about 4.2 million barrels per day (bpd) oil in April, a decline of about 8.7% from the same month last year. Compared to last year, Indian refiners cut intake of long-haul oil from Latin America, the United States and Canada, and raised imports from Kuwait. Higher purchases from Kuwait raised the share of Middle Eastern oil to about 67.9% in overall imports, the highest in nine months. India’s oil imports in May could decline as refiners cut crude runs towards the end of April after a second COVID-19 wave forced several states to impose mobility restrictions, hammering fuel demand and leading to larger stockpiles. Domestic sales of gasoline and diesel by state-run refiners plunged by a fifth in May from a month earlier, preliminary data showed. In April, Iraq continued to be the top oil supplier to India followed by Saudi Arabia and the United Arab Emirates. Kuwait improved its ranking by two notches to No. 4, replacing the United States which tumbled to No. 6. Nigeria continued to be the fifth biggest supplier to India. Higher imports of Middle Eastern and African oil raised the share of OPEC oil in India’s imports to a six-month high of about 77.5%.
OPEC to boost oil output as economies recover, prices rise
The OPEC oil cartel and allied producing countries plan to restore 2.1 million barrels per day of crude production, balancing fears that COVID-19 outbreaks in some countries will sap demand against surging energy needs in recovering economies. Energy ministers made the decision during an online meeting Tuesday. Saudi Energy Minister Prince Abdulaziz bin Salman said recent market developments proved the agreement to gradually increase production, made in April and reconfirmed Tuesday, was “the right decision.” There are still “clouds on the horizon” regarding the recovery and demand for energy, he said. The cartel decided to stay the course decided at earlier meetings to raise production by 2.1 million barrels per day from May to July. The group plans to add back 350,000 barrels per day in June and 440,000 barrels per day in July. Saudi Arabia is also gradually adding back 1 million barrels in voluntary cuts it made above and beyond its group commitment. The combined OPEC Plus grouping of members led by Saudi Arabia and non-members, chief among them Russia, is facing concerns renewed COVID-19 outbreaks in countries such as India, a major oil consumer, will hurt global demand and weigh on prices. Oil producing countries made drastic cuts to support prices during the worst of the pandemic slowdown in 2020 and must now judge how much additional oil the market needs as producers slowly add more production. But prices have recovered, closing at multi-year highs on Tuesday, and the recoveries in the US, Europe and Asia are expected to drive energy demand higher in the second half of the year as people travel more and use more fuel. The U.S. driving season began over Memorial Day weekend and increasing numbers of Americans have been vaccinated, leaving people feeling freer to travel and take longer trips by car. On Tuesday the price of benchmark U.S. crude rose 2% to $67.72 per barrel after jumping nearly 4%. Brent crude, the European standard, traded 2.7% higher at $71.17 but closed at $70.25 per barrel. The prices were the highest in two years for Brent crude and in nearly three years for U.S. crude. On Wednesday, oil prices rose modestly, with benchmark U.S. crude up 16 cents to $67.88 per barrel. Brent crude picked up 18 cents to $70.43 per barrel. An additional factor complicating market estimates is the possible return to the market of more Iranian oil, depending on the outcome of talks over Iran’s nuclear program. Paul Sheldon, chief geopolitical risk analyst at S&P Global Platts, said he expects a framework nuclear deal will be reached before Iran’s June 18 election, allowing Iranian supply to rise by 1.05 million barrels per day between May levels and December. Bin Salman said that the prospect of more Iranian oil coming to market was not discussed at the brief meeting, which he said lasted less than half an hour. Oil prices have risen more than 30% since the start of the year. That has meant higher costs for motorists in the U.S., where crude makes up about half the price of a gallon of gasoline. Holiday travelers paid the highest gas prices since 2014 at a national average of $3.03 per gallon, $1.12 more than last year. Prices in the western states were even higher; Californians paid $4.20 per gallon.
IAS officers Avinash Joshi, Niraj Verma among 10 in fray for ONGC top job
Senior bureaucrats Avinash Joshi and Niraj Verma are among the 10 candidates who are in the race to become Chairman and Managing Director of India’s largest oil and gas producer, ONGC. Mangalore Refinery and Petrochemicals Ltd (MRPL) director-finance Pomila Jaspal and ONGC director for technology and field services Om Prakash Singh are the other prominent names in fray for the top job, according to a candidate shortlist by the Public Enterprise Selection Board (PESB). PESB – the government headhunter – will hold interviews to select the new head of Oil and Natural Gas Corporation (ONGC) this week. Both the bureaucrats are from the 1994 batch of IAS officers belonging to the Assam-Meghalaya cadre. They both are principal secretaries in the government of Assam, according to details available from the Department of Personnel and Training (DoPT) website. While Joshi, who hails from Gujarat, is 53 years old, Verma is from Bihar and turns 52 next month. Others on the PESB shortlist are ONGC executive directors Sandeep Gupta, Pankaj Kumar and Omkar Nath Gyani, ONGC additional director general Anand Gupta, Security Printing and Minting Corp of India Ltd director-finance Ajay Agarwal and Container Corporation of India director-finance Manoj Kumar Dubey. PESB will hold interviews to select a replacement for Shashi Shanker who retired after attaining superannuating age of 60 years at March-end this year. While a replacement is often selected before the incumbent retires, PESB did not hold any interviews for almost seven months as its chairman wasn’t appointed. The government in April named Mallika Srinivasan, chairman and managing director of Tractors and Farm Equipment (TAFE) Ltd, as the new chairperson of PESB. She is the first person from the private sector to be appointed as the head of PESB. After Shanker retired, Subhash Kumar, director for finance and senior most director on ONGC board, was given the additional charge of chairman and managing director. Kumar, 59, will retire at the end of December 2021. Other directors on ONGC board either didn’t have the mandatory 2-years of tenure left or were barred by the job hopping rule. While Akla Mittal, director for human resources and Rajesh Kumar Srivastava, director for exploration, retire next year, Anurag Sharma, director for onshore was appointed to the job only in June last year.
Petrol now costs almost twice as much in Mumbai than New York
Gasoline prices in India’s financial capital of Mumbai have risen past the Rs 100-a-litre mark for the first time ever, among the costliest in the country and almost twice the price in New York. Retail prices in the city are up 11% this year and reached Rs 100.72 ($1.39) a litre on Tuesday, Indian Oil Corp data show. The equivalent price in the US financial center is $0.79, according to Bloomberg calculations based on figures from the New York State Energy Research and Development Authority. Indian fuel prices have soared in the past year as Prime Minister Narendra Modi’s administration has repeatedly raised sales taxes to cushion worsening public finances. Levies now make up around 60% of the retail price and taxes on gasoline and diesel have surged nearly six-fold since 2013. The steep increase in taxes on the two fuels, which account for more than half of India’s oil consumption, comes as the Covid-19 pandemic pummels demand in the world’s third-biggest crude importer. Sales of the two fuels in May are about a third lower than pre-virus levels in 2019 as large parts of the nation remained under local lockdowns to battle the world’s worst coronavirus wave. “I pray for the prices to soften or the government to reduce the taxes,” said N Vijayagopal, finance director at Bharat Petroleum Corp, one of India’s three-biggest fuel retailers. Unless that happens, “we have no choice but to increase the retail selling prices,” he said.
Petrol, diesel sales drop 17% in May on Covid-19 lockdowns
India’s petrol and diesel sales fell by about 17 per cent in May from a month ago as restrictions clamped to curb the world’s worst outbreak of coronavirus infections stifled demand. Sales of petrol — used in cars and motorcycles — fell to 1.79 million tonne in May, the lowest in a year, according to the preliminary data of state-owned fuel retailers. While the consumption was almost 13 per cent higher than demand in May 2020, it was 28 per cent lower than pre-Covid levels of 2.49 million tonne. India was under one of the world’s strictest lockdowns in May last year, which brought all mobility and economic activity to a grinding halt. This year, though the infection rate is much severe, restrictions are localised. Personal mobility is not as hampered as last year and more factories have remained open while cargo movement between states too hasn’t been as badly affected. Demand for diesel — the most used fuel in the country — fell to 4.89 million tonne in May 2021, down 17 per cent from the previous month and 30 per cent from May 2019. With airlines continuing to operate at less capacity, jet fuel (ATF) sales in May were 2,48,000 tonne, down 34 per cent over April 2021 and 61.3 per cent over May 2019. Jet fuel sales in May 2020 were 1,09,000 tonne. Sales volume of cooking gas LPG fell 6 per cent year-on-year to 2.16 million tonne in May 2021 but was 6 per cent higher than 2.03 million tonne sold in May 2019. LPG was the only fuel to have registered growth during the lockdown last year as the government gave free cylinders as part of the Covid-19 relief package. India’s new coronavirus cases have fallen from over 4 lakh to 1.27 lakh and deaths from the infection dropped to 2,795 from over 4,000 a few weeks back, according to health ministry data released on Tuesday. “We were near pre-Covid level in March 2021, but new restrictions due to the second Covid-19 wave have temporarily reduced demand for both personal mobility and industrial goods movement,” an industry official said. “Local fuel consumption will start to look up this month when second pandemic wave is expected to weaken.” Declining fuel sales reduced crude intake by refiners, reducing the operating run rate by 85-86 per cent.
Saudi Arabia committed to meet India’s crude oil requirement: Saudi envoy
Saudi Arabia, the world’s largest oil exporter, on Sunday said it is committed to meet India’s requirements of petroleum products, an affirmation that came in the wake of the country pitching for easing global output cuts to rein in surging oil prices. In an interview to PTI, Saudi ambassador Dr Saud bin Mohammed Al Sati also said that Saudi Arabia made investments worth $2.81 billion in India in 2020 and is looking at a greater momentum in bilateral economic ties in areas like petroleum, renewable energy, IT and artificial intelligence. “Saudi Arabia has remained committed to meeting the requirements of India from oil and petroleum products and our energy cooperation has been going very well. It has been further reinforced during the recent and ongoing communications between Prince Abdulaziz bin Salman Minister of Energy and his counterpart Minister Dharmendra Pradhan,” Al Sati said. His comments came in response to a question on Saudi Arabia’s position on India pressing for easing cuts in crude oil production by OPEC and OPEC Plus as high oil prices are hurting the consumption-led recovery of several countries like itself. The OPEC (Organisation of the Petroleum Exporting Countries) is an influential entity that plays a key role in policy formulations relating to crude production. The OPEC Plus comprises the OPEC countries, Russia and several other crude producers. Talking about his country’s Vision 2030, an ambitious programme aimed at moving the country’s economy away from its dependence on oil profits, Al Sati said it provides for expansion of economic engagement with India and other strategic partners. “The number of Indian companies investing and operating in the kingdom has been growing. In 2020, 44 new licences were issued for Indian investments. “Saudi Arabia also had the highest FDI increase to India in 2020 with investments worth $2.81 billion,” he said. “As we move to resume normal life and fully opening our economy in all sectors, we will be building on the progress achieved so far and there will be a greater momentum for our economic cooperation and mutual investments especially in the sector of renewables, IT, and artificial intelligence,” he said. The envoy said Saudi Arabia’s strategic partnership with India expands over diverse areas and health cooperation stands out as one of the most important aspects of the ties. “Health cooperation will continue as an important area of focus in our bilateral cooperation. In the wake of the pandemic and its economic, social and health impact, our cooperation has continued to grow,” he said. Al Sati said Saudi Arabia maintained the supply chains of goods and medical-related products uninterrupted notwithstanding the coronavirus pandemic, adding his country facilitated the supply of medical oxygen to various entities in India. “We will continue to extend all forms of possible support to India and its friendly people to overcome the current COVID-9 challenge. I am confident that India has the resolve and capacity to deal with the current challenge of COVID-19 and this crisis shall wane out shortly,” he said. Referring to the Vision 2030, Al Sati said Saudi Arabia has been diversifying its oil-driven economy under the programme as envisioned by its architect Crown Prince Salman. “During the State visit of Crown prince to India in 2019, Saudi Arabia agreed to align Vision 2030 and its 13 Vision Realisation Programmes with India’s initiatives of ‘Make in India’, ‘Start-Up India’, ‘Smart Cities’, and ‘Digital India’,” he said. In February 2019, Saudi Crown Prince Mohammed bin Salman announced that Saudi Arabia would invest over $100 billion in India in petrochemicals, refining, infrastructure, mining and manufacturing, agriculture and several other sectors. “In our endeavour to reform and achieve our Vision 2030 strategic goals, we have created immense opportunities and a conducive business environment for our strategic partners” he added. In the last five years, he said, Saudi Arabia’s non-oil revenues have increased by 222 percent while the maturity rate of digital government services increased from 60 percent to 81.3 percent and Saudi women’s participation in the workforce increased from 19.4 percent to 33.2 percent. He said the IMF’s projections painted a positive picture, estimating Saudi Arabia’s real GDP growth at 4.8 percent, the real non-oil GDP growth recovery at 3.6 percent, and the real oil GDP growth to reach 6.8 percent in 2022. As part of the commitment to combat climate change, he said, the kingdom has encouraged the concept of a circular carbon economy, adopted by the G20, and expanded its solar, hydrogen and ammonia projects. “Saudi Arabia hopes to obtain 50 percent of its electricity from renewables by 2030. This comes alongside the Saudi Green and Middle East Green initiatives, designed to boost vegetation, reduce carbon emissions, and combat pollution and land degradation,” Al Sati said. He said the last five years have witnessed tremendous changes in Saudi Arabia as the country has been going through a historic transformation. “Diverse reforms have been introduced in laws, regulations, and procedures, in cooperation with more than 50 government entities, and coordination with the private sector,” he said. “Saudi Arabia has streamlined and automated administrative procedures and data sharing among various entities, making it possible for investors and entrepreneurs to start their businesses electronically,” he added.
Oil prices stay firm as demand to outstrip supply in H2
Oil prices climbed in early Asian trade on Monday, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC+ meeting this week for supply guidance. Brent crude futures for August nudged up 7 cents, or 0.1 per cent, to $68.79 a barrel by 0038 GMT after settling at their highest in two years on Friday. U.S. West Texas Intermediate crude for July was at $66.45 a barrel, up 13 cents, or 0.2 per cent. Both contracts are on track for a second monthly gain as analysts expect oil demand growth to outstrip supply despite the possible return of Iranian crude and condensate exports. Iran has been in talks with world powers since April working on steps that Tehran and Washington must take on sanctions and nuclear activities to return to full compliance with the 2015 nuclear pact. “We see demand outstripping supply in the order of 650,000 barrels per day and 950,000 bpd in Q3 and Q4 respectively,” ANZ analysts said, adding that this includes 500,000 bpd of increase in Iranian output. The Organization of the Petroleum Exporting Countries and their allies including Russia will meet on Tuesday. The group known as OPEC+ is expected to stay the course on its plans to gradually ease supply cuts until July. Separately, crude output in the United States soared 14.3 per cent in March, the Energy Information Administration reported on Friday, while Baker Hughes data showed oil and gas rigs rising for a 10th month in a row last week.
Indian consortium may get to remain invested in Iranian gas field
New Delhi, India may continue to pursue investment opportunity in the Farzad-B gas field in Iran, even though ONGC Videsh Ltd (OVL) lost the development rights of the block that it discovered over a decade ago to local firm Petropars Group, highly placed government sources told IANS. Reports from Iran indicate that months the after ejecting India from the ambitious $1.8 billion project, Tehrann has now brought in Petropars Group to develop the gas field in the Persian Gulf. But the sources said that this would not deter the Indian entity from pursuing energy assets in the country and remain invested in the project. In fact, they indicated that Iran may formally announce a partnership with the Indian firm once development work of the field picks up pace. Sources in the Oil Ministry said that Indian consortium including IndianOil, Oil India and OVL, which bagged the exploration contract for Farzad-B in 2002, may remained invested in the upstream project as equity partners with other local and international entities even without operatorship or development rights. They are in talks with Iranian authorities in this regard to formalise the arrangement that gets India a share in gas fields output, they said. If this option is permitted, it will allow the consortium to get their share of gas to India at applicable rates decided by Iran. Though the exploration contract signed by the Indian consortium expired in 2009, the sources said that a deal could be negotiated so that India has a presence in the field as equity investors. Early indications Iran also favour this arrangement, they said. Farzad-B, which was discovered by OVL in the Farsi block about 10 years ago, had an in-place gas reserve of 21.7 trillion cubic feet, of which 12.5 Tcf is believed to be recoverable. If India gets a share of this gas, it could reduce its dependence on expensive LNG. Iran had been dilly dallying over grant of development right of Farzad-B for few years now. Things had come to a standstill since the US imposed sanctions in 2018 on Iran with India also moving slowly on the matter. This pushed Iran into suggesting that India was not serious about investing the project and decided to offer operatorship of the gas block to a local company. The sources said that changes in geo-political scenario in the Covid-19 world, which suggests that Tehran may soon be out from US sanctions favour more active participation of India in Iranian energy assets. If Iran decides to offer equity holding in the project, Indian consortium claims would once again be considered. “There are two issues to Farzad-B project. Iran not giving development rights to OVL but an Indian consortium continues to have part ownership of the block and would get its share of profit whosoever develops the project,” the sources said. The OVL-led consortium have invested close to $100 million in the project. India and Iran were initially targeting concluding a deal on Farzad-B field development by November 2016 but later mutually agreed to push the timeline to February 2017. The deadline to wrap up negotiations was later targeted for September 2017. But, with deal stuck over pricing of gas. Sanctions delayed the process thereafter and despite visits of ministers from both sides no agreement could be reached. OVL pushed for the deal with a sweetened offer that included investment of close to $11 billion. But that also did not break the ice and the project remains in limbo.