MRPL buys first Iraqi Basra Heavy crude from Shell – sources
Mangalore Refinery and Petrochemicals Ltd has bought its first cargo of Iraqi Basra Heavy crude from Royal Dutch Shell via a tender, two sources with knowledge of the matter said on Tuesday. MRPL is likely to blend the 1 million barrels Basra Heavy crude, which will be delivered in September, with lighter grades so it can be processed at its refinery, one of the sources said. Spokespeople for MRPL and Shell declined to comment on the deal. Green Bay Packers Jersey
US sanctions on Iran: Indian Oil chairman confident about oil supply
India, the fourth largest oil importer in the world, may cut imports from Iran following the White House’s ultimatum to cut Iranian oil imports to ‘zero’ by November 4. India was initially defiant and indicated that it would not comply. In an interview with CNNMoney, joint secretary for international cooperation at the Indian petroleum ministry, Sunjay Sudhir, said only sanctions by the United Nations are recognised by India, not unilateral ones put forward by the US. The Indian government also asked domestic oil companies to prepare a blueprint of alternative payment channels for procuring the Iranian oil post-November. Iranian imports will either have to be replaced by purchases from Kuwait or Saudi Arabia or will have to be paid for in alternate currency other than the Dollar. According to a report by Bloomberg, Indian Oil chairman Sanjiv Singh said Saudi Arabia can alone cover most of the world’s supply shortfall in case the US has its way and shuts down Iranian imports. He assured that there was nothing that India could not procure or produce. But India cannot afford to alienate itself from Washington because a large part of its service sector is dependent on US markets. If Trump decides to act upon his threat of sanctions, many Indian companies may lose business from the US. Moreover, Iran is also important from India’s point of view as it is strategically located. Trump’s ultimatum, hence, puts India in a dilemma. As a gesture of goodwill, Trump tweeted on Saturday, as per his request, Saudi Arabia will increase its oil production to meet any global shortfall. He said the Gulf nation agreed to increase production to up to two million barrels. Although there is no clear decision on what step to take next, Indian Oil’s Chairman is confident that India can and will ‘manage.’ Sean Couturier Authentic Jersey
“No Waivers For India”: US On Reducing Oil Imports From Iran
The US is prepared to work with nations that are reducing their oil imports from Iran on a “case-by-case basis”, but will not grant waivers to countries like India and Turkey as it could substantially reduce pressure on sanctions-hit Tehran, according to a senior Trump administration official. Iran is India’s third-largest oil supplier behind Iraq and Saudi Arabia. Iran supplied 18.4 million tons of crude oil during April 2017 and January 2018 (first 10 months of 2017-18 fiscal). Last month President Donald Trump withdrew the United States from the 2015 landmark Iran nuclear deal, re-imposing US sanctions that had been suspended in return for curbs on Tehran’s nuclear programme. At the time, the Trump administration gave foreign companies either 90 or 180 days to wind down their business with Iranian counterparts, depending on the type of commercial activity. Now, Washington is stepping up pressure on all countries, including India and China, to completely stop buying oil from Iran by November 4. “We are not looking to grant licenses or waivers, because doing so would substantially reduce pressure on Iran, and this is a campaign of imposing pressure,” Brian Hook, Director of Policy Planning at the State Department told reporters at a news conference yesterday. “And so, we are not looking to grant licenses or waivers broadly on the reimposition of sanctions, because we believe pressure is critical to achieve our national security objectives,” he said. Mr Hook said that the first part of US sanctions against Iran will snap back on August 6. “These sanctions will include targeting Iran’s automotive sector, trade in gold, and other key metals,” he said. “The remaining sanctions will snap back on November 4. These sanctions will include targeting Iran’s energy sector and petroleum-based transactions, and transactions with the Central Bank of Iran,” Mr Hook said. “We are prepared to work with countries that are reducing their imports on a case-by-case basis, but as with our other sanctions, we are not looking to grant wavers or licenses,” Mr Hook said when asked about India and Turkey which import Iranian oil. After Trump announced his withdrawal from the Iranian nuclear agreement, Mr Hook said American officials have been visiting several world capitals to convey president Trump’s message of cooperation and coordination on the Iran issue. “Many countries around the world share our interests in countering terrorism, halting the proliferation of missiles and promoting peace and stability in the Middle East. We want to work with these countries to build a strong global effort,” he said. “Our focus is on getting as many countries importing Iranian crude down to zero as soon as possible. We are also working with oil market participants, including producers and consumers, to ensure market stability. “Banking sanctions will also snap back on November 4th, and we will be aggressively enforcing these provisions to lock up Iran’s assets overseas and deny the Iranian regime access to its hard currency,” Mr Hook said. Patrick Chung Jersey
Greece awards Exxon, Total tenders for Crete oil and gas exploration
A consortium of U.S. Exxon Mobil , France’s Total and Hellenic Petroleum has been awarded a tender to explore for oil and gas off Greece, the energy ministry said on Tuesday. Greece launched the tender for two sites off Crete last year after expressions of interest by the consortium, in which Exxon and Total each have 40 percent. The group was the sole bidder. The licences must be ratified by parliament before exploration work can begin. Exxon and Total are currently exploring off Cyprus. Trai Turner Authentic Jersey
High oil price the biggest risk for India’s economy: Moody’s investors poll
Most investors representing domestic and international financial institutions think high oil prices have emerged as a major risk to India’s economy, Moody’s Investors Service said in a report today. The finding is based on a Moody’s real-time poll of 175 people held last month at the 4th Annual India Credit Conference in Mumbai and Singapore during which market participants from over 100 financial institutions were asked questions on some of the most pressing credit issues facing India. “When asked about the top risks facing the Indian economy, most of the respondents highlighted high oil prices as the top risk, while 30.3 per cent of those in Singapore picked rising interest rates as the next top risk, and 23.1 per cent of those in Mumbai picked domestic political risks as the second top risk,” said Joy Rankothge, a Moody’s Vice President and Senior Analyst. In both locations, most attendees said they believed India would not meet the central government’s fiscal deficit target of 3.3 per cent of GDP for the fiscal year ending March 2019. Only 23.3 per cent of the respondents in Singapore and 13.6 per cent in Mumbai thought that the fiscal targets would be achieved, with 84.7 per cent in Mumbai and 76.7 per cent in Singapore expecting some fiscal slippage. The audiences in both Singapore (85.7 per cent) and Mumbai (93.6 per cent) thought that the government’s bank recapitalization package is mostly insufficient to resolve solvency challenges. At the same time, while 59.6 per cent of the attendees in Mumbai thought that banks will be unable to raise capital from markets as planned, only 32.1 per cent thought so in Singapore. Conversely, 53.6 per cent of attendees in Singapore thought that the recapitalization amount was insufficient even if capital was raised via markets, while only 34 per cent thought so in Mumbai. Attendees in both locations said funding conditions will be one of the top factors driving the outlook for non-financial corporates: 38 per cent in Mumbai and 34.6 per cent in Singapore. In Mumbai, 28 per cent chose the resumption of capital investment as the second key factor, while only 11.5 per cent thought so in Singapore. In contrast, 26.9 per cent of the Singapore audience selected government policy and reforms as the second-most important factor affecting the credit outlook, compared with 22 per cent in India. During the polls, the investors were asked a variety of questions related to top risks facing the India economy; fiscal deficit for 2018-19; $32 billion recapitalization package; public sector banks; impact of fintech on the financial system; M&A as a credit solution for solvency challenges; credit conditions for Indian corporates; private sector investment in the infrastructure space; and the growth of foreign investor participation. Stefen Wisniewski Authentic Jersey
LNG may fuel a boom in Gujarat’s ports
Riding on a high growth trajectory, Gujarat’s ports sector is set to undergo a major transformation with surging demand for imported liquefied natural gas (LNG) in the country. The growing need for energy across sectors mainly in the city gas distribution (CGD) and other consuming industries, has prompted a shift in the pattern of cargo handling at Gujarat ports from dry bulk cargo to LNG. Known for its numero uno position in the LNG space with two operational LNG terminals with combined handling capacity of almost 15 million tons per annum (mtpa), Gujarat is aggressively ramping up its capacities with one more 5-mtpa LNG terminal being set up by GSPC LNG Ltd — a joint venture between State-run Gujarat State Petroleum Corporation (GSPC) and Adani Group — at Mundra in Kutch. The State will be the first in the country to set up a floating regasification unit (FSRU) with capacity of 10 mtpa at Jafrabad in Amreli district by Swan Energy Ltd (SEL) in association with Exmar NV of Belgium. The estimated cost of the project is about ?40 billion. While the GSPC LNG terminal is likely to be commissioned soon, the FSRU for Jafrabad is currently under construction at Hyundai Heavy Industries (HHI)’s shipyard in South Korea. The unit is expected to be delivered by end-2019 and will become operational by early 2020. Growing demand Looking at the rapidly growing gas market in India, it is expected that the share of natural gas in the overall energy consumption will increase to 20 per cent by 2030, from about 6-6.5 per cent now. The existing two LNG terminals at Gujarat have contributed in setting the foundation for a gas-based economy in the country. Operated by Hazira Port Pvt Ltd — a joint venture between Shell Gas BV and Total Gaz Electricite Holdings, France — the 5-mtpa Hazira LNG terminal was commissioned in 2005. Subsequently, in 2009, the Dahej terminal was commissioned and is being operated by Petronet LNG with a capacity of 10 mtpa. The terminal assumes crucial importance as it meets about 20 per cent of the country’s total gas demand. As a planned expansion, a second LNG terminal at Dahej is also envisaged by the company to be able to berth higher capacity Q-Max and Q-Flex LNG vessels. Besides the natural advantage of having the longest coastline of over 1,600 km, Gujarat is strategically located to easily connect key markets such as West Asia, Africa and Europe — three of India’s biggest trading partners. Private players gung-ho From the private players’ view, the largest ports developer and operator in India — Adani Ports and Special Economic Zone Ltd (APSEZ) — houses three of its 10 strategically located ports and terminals. These include Mundra port in Kutch — the largest private port in India — Hazira in Surat and Dahej in Bharuch in south Gujarat. The Adani Group says, “Mundra is also one of the few ports with handling and storage facilities for crude oil, containers, dry bulk, break bulk, automobiles and liquid cargo. The deep-draft port with 24 berths and two single-point moorings can handle 4 million TEUs and the capability of berthing the largest container vessels calling at Indian ports. Dahej’s strengths include a deep-draft multi-cargo port, in the Gulf of Khambhat, on the Narmada estuary near Bharuch, Gujarat. With two berths, the port has a capacity to handle 20 mtpa of cargo comprising coal, silica sand, rock phosphate, steel products and project cargo. It also has India’s first high-speed, elevated triangular gallery overland conveying system for coal transportation, which reduces dust pollution. The port at Hazira is a deep-draft facility near the diamond trading city of Surat, Gujarat. It is strategically located to allow global container operators to take advantage of the proposed Delhi-Mumbai Industrial Corridor. The port’s sophisticated handling and storage facilities, and capacity to handle 35 mpta, allow it to process multiple types of cargo. In its outlook for FY2019, the APSEZ expects to cross 200 mt while Mundra is expected to record high single-digit growth. Sagarmala ambitions “There has been a strategic thrust towards improving maritime infrastructure with a slew of structural reforms by the government. In March, a revised Model Concession Agreement (MCA) was approved to make port projects more investor-friendly and attract global capital. Among major plans, the Shipping Ministry aims to develop 10 coastal economic regions as part of its long-term endeavour to revive the country’s Sagarmala (string of ports) project. Under the Sagarmala Programme, the government has envisioned a total of 189 projects for modernisation of ports involving an investment of ?1420 billion by 2035. Of these, projects worth $10 billion have been identified and will be awarded over the coming five years, the Adani Group said. From the ambitious Sagarmala project, the Government of Gujarat is actively looking to leverage the benefits by strengthening the maritime infrastructure of the State. The State government-listed several major projects are proposed to be included under the Sagarmala initiative. These include the Development of Maritime University in Gujarat, Development of Maritime Cluster, Ro-Ro and Ro-Pax Ferry Services and Training programmes for skill development and capacity building of workers involved in ship recycling activities. The Gujarat Ports Infrastructure and Development Company Ltd (GPIDCL) has also signed a tripartite MoU with Ministry of Shipping and Indian Ports Association for knowledge sharing, as part of the Sagarmala initiative. For the Ro-Ro ferry service, a pilot project of the service between Dahej and Gogha has been completed. The first phase of the Gogha-Dahej Ro-Ro ferry service was launched on October 22, 2017. It connects South Gujarat and Saurashtra by reducing the travel time from nine hours to one hour. What creates future opportunities for the ports sector in Gujarat is yet another ambitious project of Integrated Maritime Complex proposed to be set up in Central Gujarat. The in-principle approval for the project, which is likely to cost around ?150 billion, has been received for coal and multi-purpose captive jetties.] The project aims to integrate and
ONGC board gives nod to explore group restructuring options
The board of state-owned Oil and Natural Gas Corp (ONGC) has given in-principle approval for exploring options for a restructuring of the group firms including the merger of subsidiaries MRPL and HPCL. The India’s largest oil and gas producer, ONGC has several subsidiaries and joint ventures including two in refining sector – Hindustan Petroleum Corp Ltd and Mangalore Refinery and Petrochemicals Ltd and two petrochemical units – ONGC Petro additions Ltd (OPaL) and ONGC Mangalore Petrochemicals Ltd. It also has an overseas investment arm in ONGC Videsh Ltd. “The board of directors of ONGC, at the 308th meeting held on June 29, accorded its in-principle approval for exploring options for the restructuring of ONGC group companies,” the company said in a regulatory filing. While ONGC did not provide details of the proposed restructuring, sources in the company said an advisor would be appointed to suggest possible options. The board of the company will take a call on the options suggested by the advisor. ONGC is looking at trimming down the structure by merging some of the subsidiaries. While MRPL operates a 15 million tonnes a year refinery at Mangalore in Karnataka, HPCL has two refineries at Mumbai and Vizag. OPaL has built at Rs 32,000 crore petrochemical complex at Dahej in Gujarat, while ONGC Tripura Power Co Ltd (OTPC) operates a 726 MW power plant at Palatana in Tripura. It also has two SEZ companies – Dahej SEZ Ltd and Mangalore SEZ Ltd. Also, it has a pipeline company in Petronet MHB Ltd and a stake in helicopter service operator, Pawan Hans Ltd as well as Petronet LNG Ltd. Sources said while there is certainly a case for merger of MRPL with HPCL for not just business synergies but also help avoid penalties from market regulator SEBI for not meeting public float requirement in case of the former. Also, some other units too can be combined. In the regulatory filing, ONGC referred to the acquisition of government’s stake in HPCL earlier this year as part of government’s proposal to create a public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies. ONGC has in past spoken of benefits of bringing all refining business under one company. HPCL management too has supported taking over MRPL to create India’s second-biggest public sector oil refining firm. “The restructuring proposal shall safeguard the overall interest of the public shareholders of all ONGC group companies,” ONGC said. The restructuring, it said, would be done taking into account the need for better value creation and synergy among group firms. Also, it would be done to meet the minimum public shareholding requirement in case of MRPL. SEBI’s listing rules require a minimum public float of 25 per cent. In case of MRPL, the float is less than 11.5 per cent. “The implementation of any such restructuring proposal shall be subject to the approval of the Government of India, the board of directors of the relevant companies and other stakeholders of such companies in terms of applicable laws,” ONGC said. OG Anunoby Authentic Jersey
BP starts first gas deliveries to Turkey from Azerbaijan’s Shah Deniz II
A BP-led international consortium started its first commercial deliveries of natural gas to Turkey from Azerbaijan’s giant Shah Deniz field from Saturday, BP said on Monday, part of efforts aimed at cutting Europe’s dependence on Russian energy supplies. The European Union is trying to cut its reliance on Russian gas by developing the so-called Southern Gas Corridor, which is expected to bring about 16 billion cubic metres (bcm) of gas a year to Europe by 2020. Russian gas has become increasingly politicised since 2014 when Moscow annexed the Crimea peninsula and rebellion flared in eastern regions of Ukraine. Russian gas giant Gazprom caters for 34 percent of Europe’s gas market. The gas would come from the Shah Deniz II field in Azerbaijan via the 1,850 km the Trans-Anatolian Natural Gas Pipeline (TANAP) through Turkey, the 487-km South Caucasus pipeline extension through Azerbaijan and Georgia and the 878 km Trans-Adriatic Pipeline (TAP) across Greece, Albania and Italy. “BP as operator is very pleased that the longstanding partnerships we have in Azerbaijan and the entire region have allowed us to bring this world class project to success, enabling us to meet our commitments to consumers in Turkey,” Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkey, said in a statement. BP said with an investment of some $28 billion, the project had a planned total of at least 26 subsea wells, two bridge-linked platforms, 500-km of subsea pipelines and flowlines, a major expansion at the Sangachal Terminal near the Azeri capital Baku and an expansion of the South Caucasus Pipeline. “Start-up of Shah Deniz II is a milestone not just for Azerbaijan and the BP-led consortium, but for the Caspian as a whole region: a complex megaproject delivered on schedule and under budget,” Ashley Sherman, principal analyst, Caspian & Europe Upstream oil and gas, at Wood Mackenzie, said in a statement. The Shah Deniz I field, which has been pumping gas since 2006, produces more than 10 bcm of gas per year, and output from Shah Deniz II is expected to reach an annual 16 bcm of natural gas, with 10 bcm earmarked for Europe and 6 bcm for Turkey. Total production from the Shah Deniz fields will be up to 26 bcm of gas and up to 120,000 barrels of condensate a day, BP said. Charley Taylor Womens Jersey
India has `Plan D’ for Iran oil as Donald Trump adds sanction pressure
One of Iran’s biggest oil buyers said it has enough alternative sources of crude to replace any supplies cut off by U.S. sanctions on the Persian Gulf state — even if shipments stop completely. Indian Oil Corp. Chairman Sanjiv Singh says Saudi Arabia alone can cover most of the world’s supply shortfall in case Iran’s oil exports dry up. Also a narrowing spread between Brent crude and Dubai oil gives Indian Oil even more options, the head of the state-run refiner known as IOC, one of Iran’s largest customers, said in an interview. “We have a very wide crude basket. There’s nothing we can’t procure, there’s nothing we can’t process,” Singh said. “So, even if Iran supplies get disrupted, the supplies to the Indian market will still continue. That’s assured.” Some customers in Asia are already considering acquiescing to President Donald Trump’s demand to end trade with Iran by early November, when sanctions aimed at curbing the Islamic republic’s nuclear program come into effect. Several refiners in the largest oil market are looking at alternative supplies from Saudi Arabia to Iraq after the White House said it won’t offer extensions or waivers to U.S. allies. Ramping Purchases IOC plans to buy 7 million tons of crude from Iran in the year ending March 31 versus 4 million tons in the previous fiscal year, A.K. Sharma, director of finance at the refiner, said in May. India imported 771,000 barrels of crude oil a day from Iran in May, a 35 percent increase from the previous month, tanker tracking and shipping data compiled by Bloomberg show. “We buy high sulfur crude from Iran. Today if you look at the price difference between Brent and Dubai, the difference is hardly anything,” he said. “So, the option is wide open and there’s no need that we replace high sulfur with high sulfur.” The global oil benchmark Brent traded at a premium of $3.58 a barrel to Dubai crude on Monday, down from an almost four-year high of $4.64 a barrel in April, according to data from broker PVM Oil Associates. That allows IOC the option to look at sourcing crude from regions other than the Middle East. IOC added 16 new grades of crude during 2017-18 and has the ability to process 175 different varieties, boosting flexibility in oil sourcing. It also expanded the capabilities of its refineries to process cheaper and heavier grades, which make up close to 60 percent of its crude diet. Fully Prepared “We have Plan B, Plan C, Plan D. We are fully prepared,” IOC’s Singh said, without giving details. India’s government has so far been sending mixed signals about its stance on Iranian imports. While the country said it plans to seek exemptions from the sanctions and is also looking at alternate payment mechanisms to enable it to continue purchases from the Persian Gulf state, the government has also asked refiners to brace for all eventualities, including zero imports. India insists it will make sure its energy security is not compromised and a call on Iran oil imports will be guided by its own interests. India continued with purchases from Iran during the last round of sanctions. “The situation is changing everyday,” Singh said. “We have to wait and watch how things unfold with time. We can manage and we will manage.” David Perron Authentic Jersey
Equinor plans largest natural gas reserve off Norway
Equinor submitted on Tuesday a 7.8 billion Norwegian crowns ($954.46 million) plan to develop gas reserves in the western part of its Troll field, the largest natural gas source off Norway. Reserves will be produced by using subsea installations tied-in to the Troll A platform about 25 kilometres (15.53 miles) north-west of the reserves. Equinor holds a 30.58 per cent stake in the Troll field, Petoro 56 per cent, Shell 8.1 per cent, Total 3.69 per cent and ConocoPhillips 1.62 per cent. Matthew Stafford Authentic Jersey