GoN agrees to review oil deal
Around six years since the Nagaland Petroleum & Natural Gas Regulations and Rules 2012 was enacted by the legislative assembly and around three years since the Gauhati High Court, Kohima Bench issued stay order against permit issued to Metropolitan Oil and Gas Private Limited (MOGPL) on a PIL filed by the Lotha Hoho, both state government (NPNG Board) and the Lotha Hoho appeared to have agreed to resolve contentious issues. In this regard, a Memorandum of Understanding (MoU) was signed on November 20, 2018 between Lotha Hoho and Nagaland government represented by the NPNG board with certain terms and conditions to amend the Nagaland Petroleum and Natural Gas (NPNG) Regulations & Rules, 2012. As per the NPNG Regulations and Rules 2012, the state government set up the NPNG Board to monitor all activities related to oil and natural gas mining. The NPNG regulations stipulated a three-level committee: the first comprising state ministers; the second with senior bureaucrats; and the third with junior government officers, advisers and others. The issues raised in the PIL involved the controversial firm Metropolitan Oil and Gas Private Limited which bagged the lucrative oil zones in Wokha district. Other issues also included the fixing of 8% royalty in addition to other excise tax by the state government on the plea of sharing the revenue with non-oil bearing districts. The High court viewed that the source of power of the impugned permit in favour of MOGPL as “highly questionable, both legally and constitutionally and for which it felt, that the effect and operation of the said permit be kept in abeyance till the case was decided.
Hayleys Energy Services Commences Sri Lanka’s First Oil & Gas Drillship Lay-Up at Hambantota International
Hayleys Energy Services (HES), the pioneer in Oil and Gas support services in Sri Lanka, announced the arrival of the oil and gas drillship “Aban Abraham” for a warm lay-up to the Hambantota International Port, Sri Lanka. Aban Offshore Limited, the company that own the vessel, is India’s largest offshore drilling services provider to oil companies, providing drilling operations, production and exploratory work worldwide. Hayleys Energy Services, a subsidiary of Sri Lankan blue-chip conglomerate Hayleys PLC’s transportation and logistics arm – Hayleys Advantis Limited, had competed with several players from established lay-up service destinations in the region to win the country’s first ever drill ship lay-up project. Heralding Sri Lanka’s entry into the global oil and gas marine vessel lay-up services industry, this opens the doors to a world of new opportunities for the nation’s shipping industry. “Projects of this nature have a significant impact on the economy as a whole, creating business and employment opportunities beyond the enterprises directly involved in it. The leadership, commitment and world class facilities of the Hambantota International Port Group (HIPG) have been a key factor in the success of this project bid and will go a long way in helping us attract long-term businesses such as this,” said Ruwan Waidyaratne, Managing Director – Hayleys Advantis Limited. He went on to say, “Whilst commending the Hayleys Energy Services team for successfully competing with service providers from across the region and bagging this project, I look forward to seeing them expand their horizons and soar to greater heights.” Hayleys Energy Services has set up a permanent office within the Hambantota Port, at the 6th floor of the Sayurupaya Building, the first by an Oil & Gas Services company at this port, in light of this landmark project and the opportunities it is set to bring with it. Commenting about the initiative taken by Hayleys Energy Services, Saliya Wickramasuriya, Former Director General – Petroleum Resources Development Secretariat (PRDS) said, “Hambantota is an excellent location not just for a vehicle transhipment and break bulk hub, but also for a potential regional service and repair centre for the South Asian Oil & Gas industry. My congratulations to Hayleys Energy Services, long time partners with the PRDS in petroleum exploration and production, for kicking this concept off by bringing the drillship Aban Abraham to the port for long-term lay-up and refurbishment. This new area of business for Sri Lanka will help unlock the port’s full potential and no doubt increase employment and knowledge transfer opportunities for the people of Hambantota in the future.” Meanwhile, Chas Charles, Director / Chief Executive Officer (CEO), Hayleys Energy Services said, “Having offered an extensive range of end-to-end logistics services for the Oil and Gas industry for over 10 years, we are excited to enter the lay-up services domain with this project, the first for a Sri Lankan company. This is indeed a proud moment for the entire Sri Lankan shipping industry.” The Aban Abraham had called on the Hambantota International Port recently after completing a long drilling assignment in India. The almost 160 meters long vessel is capable of drilling at depths of up to 6,600 feet and has a drilling depth capacity of up to 24,600 feet. It is to be docked at the Port for a minimum of six months, during which lay-up support services and vessel preservation, husbandry, bunkering, crew management and several other marine services will be provided by Hayleys Energy Services. “We are delighted to have been chosen for this project and would like to thank the management of Aban Offshore Ltd for placing their trust in us. This is indeed a reflection of our team’s knowledge, expertise and service commitment in the Oil & Gas domain. Having delivered complex integrated logistics services for several Oil and Gas projects, we look forward to completing a safe and efficient project by assisting Aban in their lay-up and preservation of the drillship Aban Abraham at Hambantota International Port, Sri Lanka” said Ricky Barnett, General Manager, Hayleys Energy Services. “We would also like to express our sincere appreciation to all stakeholders including the port’s managers – Hambantota International Port Group (HIPG / HIPS), Sri Lanka Immigration & Emigration Department, Sri Lanka Customs, Sri Lanka Navy and Sri Lanka Ports Authority for their continued support in making this historic project possible.” Earlier this year, the company successfully completed two projects at the Trincomalee Port Anchorage – the offloading of the Semi-Submersible oil rig, Olinda Star and provision of agency services to the heavy lift carrier “GPO Grace” dry towing the Semi-Submersible oil rig “Louisiana” and they also went on to provide offshore ship to ship supplies/logistics services for Transocean Drillship “Dhirubhai Deepwater KG1” at the Colombo Port Anchorage. Hayleys Energy Services is a subsidiary of Hayleys Advantis Limited, the transportation and logistics arm of Hayleys PLC. Through the wider logistics offering of Hayleys Advantis Limited, the Group caters to diverse logistics needs of its clientele. The company has provided logistics & support services for several projects in the Oil & Gas sector both locally and internationally including supply base management services, seismic and metocean surveys, exploratory drilling, rig repairs & servicing, duty free storage of drill rigs
Foresight Int’l to invest $500 mn in LNG transportation
London-based shipping-to-retailing conglomerate Foresight Group International plans to invest $500 million in India across offshore drilling, shipping, port and LNG sectors over the next five years. The family trust-owned group is committed to a long term purpose and will be making investments across various sectors in India with a long-term growth perspective, a communiqué issued by the group maintained on Thursday. India always had great prospects in terms of the LNG and port sectors since before Independence. We have previously made an investment of around $350 million in cyber rigs which are working with ONGC and $30 million in Pavers England branded retail, Group’s joint venture with Pavers Limited UK which was India’s number one FDI for single brand retail.
Reliance’s Nov oil imports down 9 per cent from Oct: Trade sources
India’s Reliance Industries, owner of the world’s biggest refining complex, imported nearly 9 percent less oil in November compared with October and did not purchase Iranian oil, according to data from shipping and industry sources. The sources declined to be identified as they were not authorised to speak to the media. Sources previously told Reuters that Reliance would halt imports of Iranian oil from November to protect its wider exposure to the U.S. economy. The private refiner shipped in about 23 percent of its oil imports from Latin America in November, compared with about 37 percent in September, while the share of Middle East grades in its overall purchases rose sharply to 71 percent, driven by higher purchase of Iraqi oil, from 40 percent. The share of African grades in its overall purchases shrank to just about 4 percent from 16 percent same month last year.
Hungary looks at Cyprus gas to diversity energy supply
Hungary’s foreign minister says Cyprus’ offshore gas deposits could become an alternative energy source for his country, which is seeking to diversify its natural gas supply beyond Russia in order to bolster its energy security. Peter Szijjarto says Hungary “constantly seeks alternative solutions” and that his country considers as “realistic” the supply of gas from Cyprus’ Aphrodite offshore deposit. He said an agreement signed with his Cypriot counterpart Friday will ready the groundwork for Cypriot gas “over the medium term to play a role” in the energy supply of central Europe. Szijjarto also said that Hungary is willing to share its advanced technological know-know with Cyprus in order to help the east Mediterranean island nation with its water shortage problems.
Baker Hughes Things are looking good for oil, but headwinds building up too
Crude prices rallied before the end of the week and gained 5 per cent in reaction to the new production cut agreement. LAst week, OPEC announced that it will reduce overall production among its members by 1.2 million bpd during the first six months of 2019 in an effort to stave off a global glut in supplies and prop up prices. The recent decline in crude prices sparked jitters as international trade relations between China and the US escalated and raised concerns about demand for oil. Market tension intensified after the arrest of Huawei Technologies’s chief financial officer, Meng Wanzhou, in Canada at the request of the US. OPEC meet OPEC-led group agreed to roll back output by 1.2 million bpd during first six months of 2019 against the expectations for a cut between 1 million and 1.4 million bpd. OPEC will curb output by 0.8 million bpd from October levels while non-OPEC allies contribute an additional 0.4 million bpd of cuts. A further breakdown shows Saudi Arabia will reduce its production down to about 10.7 million bpd in December and 10.2 million bpd in January. Russia is going to be responsible for cutting about 2,28,000 to 2,30,000 bpd. Inventory report For this week, data from EIA showed that inventories fell by 7.3 million barrels for the week against the expectations for a decline of 2.39 million barrels. This was the first reported draw in 11 weeks. EIA reported a rise in gasoline stockpiles by 1.7 million barrels against the expectations for an increase of 3,57,000 barrels while distillate stockpiles climbed by 3.8 million barrels against an expectation of 1.25 million barrel build-up in inventories. Offering a hint on US production activity, Baker Hughes reported that the number of active domestic rigs drilling for oil fell by 10 to 877. US exports and imports For this month, the major factor that added pressure to the bearish momentum was data which showed that the US became a net oil exporter last week for the first time in 75 years. US crude oil exports surged to record high of 3.203 million bpd last week as oil production hit record highs. EIA data showed that US crude oil production kept at a record 11.7 million bpd throughout November, which was more than what each of Russia and Saudi Arabia pumped in November, although the Saudis are also expected to have reached record highs in their production last month. Demand China, the world’s biggest oil importer, over the weekend reported an annualised 8.5 per cent jump in November crude imports, to 10.43 million bpd, marking the first time when China imported more than 10 million bpd. That leaves the world’s second-biggest economy on track to set yet another annual import record. The country’s crude imports in November totalled 42.87 million mt, up 10.3 per cent from 38.88 million mt in October. This has supported prices as the increase in imports reduces the fear of slowdown in global demand. Natural Gas Natural gas price moved higher following a drop in the wake of the EIA estimate of stockpiles. The EIA storage report showed a 63 bcf withdrawal from storage stocks during the week-ending November 30. Demand in the US fell in the latest week as LNG exports continue to rise. China has now become the largest importer of natural gas, and a trade agreement would go a long way towards increasing US exports. Total US consumption of natural gas fell by 1 per cent compared with the previous week. Prices remain supported after a strong cold weather forecast for the next week followed by higher demand for natural gas. Conclusion The current trend for crude remains positive and the markets can get an additional boost from a weaker dollar, which could drive up foreign demand for US crude. However, gains could be capped by concerns over a slowing global economy, worries over a potential escalation in the US-China trade dispute and stock market weakness and volatility. Market players will also focus on monthly reports from OPEC and the IEA this week to assess global oil supply and demand levels. We expect crude to trade in a broad range of $50-56 for WTI.
Singapore’s petroleum company Coastal Oil to exit market
Singapore petroleum company Coastal Oil Singapore Pte Ltd has entered liquidation as of Dec. 13, according to the Accounting and Corporate Regulatory Authority. The company has decided to wind up but no other information was available. Coastal Oil declined to comment when contacted. Coastal Oil is a subsidiary of Hong Kong-incorporated Coastal Holdings and handles cargo trading, global oil product supply and blending, according to company website.
China builds 16 bcm of gas storage capacity: State planner
* China’s natural gas storage capacity exceeds 16 bcm this year, the state planner said in a press conference on Friday * Gas companies and other suppliers have filled underground tanks with 8 bcm of gas, said Meng Wei, spokesperson of the National Development and Commission. * China’s daily gas consumption reached 862 million cubic meters on Nov. 21, breaking the record of last winter, Meng said
Energy group Total sells 4 per cent of Ichthys to INPEX for $1.6 billion
French energy company Total has agreed to sell a 4 percent stake in its Australian Ichthys liquefied natural gas (LNG) project to partner INPEX for $1.6 billion, following cost over-runs. “This transaction is part of our constant portfolio review to optimize our capital allocation. Ichthys is part of a wave of Australian LNG projects, which have unfortunately experienced major cost overruns and delays during their construction phase,” Arnaud Breuillac, president of exploration and production at Total, said in a statement.
Oil worth $150 mn stolen from Shell’s biggest refinery over several years
Around $150 millions’ worth of oil was stolen from Shell’s biggest global refinery over several years, Singapore court documents reviewed by Reuters show, far more than reported when police first revealed the heist earlier this year. Almost a year on from raids that led to over a dozen arrests, including of several former employees of the local unit of Royal Dutch Shell, charge sheets state that around 340,000 tonnes of gasoil were stolen from the oil major’s Pulau Bukom site in Singapore, in incidents dating back to 2014. Charges filed in the first few months of investigations after police raids in January related to the theft of around $10 million in oil. Further charges levied in May showed a total of $40 million had been stolen. A spokeswoman for Shell said the firm is “disappointed”, adding that it has been working with investigators and taken measures to avoid repeat incidents at the Pulau Bukom facility, which lies just south of Singapore’s main island. “These include closer monitoring of products moving in and out of Bukom, tightening vessel management procedures, and stepping up ethics and compliance training,” the spokeswoman said in an emailed statement to Reuters on Thursday. Southeast Asia is a hot spot for illegal fuel trading, with its island-dotted waters providing cover for small-scale smuggling of oil products across borders. But the regularity and audacity of the thefts at Shell’s refining facility – some of which took place during working hours – stand out. “Fuel is both ubiquitous and untraceable, making its theft a seemingly low-risk criminal operation compared to something like drug smuggling or arms trafficking, where the concern about being caught is much higher,” said Ian Ralby, a maritime crime expert who works with both the U.N. and the U.S.-based think tank Atlantic Council. “That false sense of security leads to some fairly brazen forms of theft.” Fuel theft could be worth $133 billion a year globally, according to industry estimates, although Ralby said that figure might be conservative. CASE DRAGS The case in Singapore looks like it could drag on, given the routine addition of new charges and amendments to older charges. The police investigation is still ongoing. “We are at the stage that the charges are still being rearranged … it’s quite far from final sentencing,” said Ho Lifen, a lawyer for one of the accused former Shell employees, Chai Zhi Zong. Besides the former Shell employees, there have been related charges filed against former employees of one of Singapore’s biggest marine fuel suppliers, Sentek Marine & Trading Pte Ltd; a Singaporean who worked for Intertek, a British-listed company specializing in quality and quantity assurance, including for fuel products; and three Vietnamese nationals who allegedly received stolen property aboard ships.