ONGC sets $2.64 billion capex for drilling oil, gas wells in 2018/19
India’s top explorer Oil and Natural Gas Corp said on Wednesday it plans to invest 176.15 billion rupees ($2.64 billion) on drilling in 2018/19, a growth of about 24 percent over the last fiscal year. ONGC aims to drill 535 oil and gas wells in this fiscal year to March 2019, compared with 503 well drilled in the previous year, the company said in a statement. Clark Griswold Authentic Jersey
LR to class first ever FSRU ordered for Indian waters
LR recently signed a contract to class the first ever floating storage regasification unit (FSRU) to be ordered for Indian waters. Stationed at Jafrabad port and operational 24 hours a day, 365 days a year, it will be built to LR’s Rules for the Classification of Offshore Units by Hyundai Heavy Industries (HHI) for SWAN LNG Pvt. Ltd. (SLPL). It is due for delivery in December 2019. The new 180,000m³ FSRU project will help meet the demand for LNG in the region, natural gas is projected to make up 20% of India’s total energy consumption by 2030. The Indian gas market is expected to be one of the fastest growing in the world over the next two decades, the country is the fourth largest energy consumer in the world (after the US, China and Russia). FRSUs are an attractive alternative for meeting the growing demand for regasification because they are significantly cheaper to operate than onshore plants and also highly versatile. SLPL’s Bhavik Merchant said: “Our FRSU based LNG Terminal at Jafrabad will help India’s push to increase the proportion of gas in its energy mix to power its economic expansion. SLPL is pleased to be working with Lloyd’s Register on this prestigious project as they have a wealth of expertise in large gas projects and we have been impressed by their desire to constantly improve the overall quality during construction to ensure uninterrupted operation.” LR’s Marine & Offshore Area Manager for South Asia, Middle East and Africa, Piet Mast, commented: “LR is delighted to be working with SLPL on this first of its kind project in India, this success is owed to the real global collaboration of all LR teams involved. LR is expanding its scope of work in this area with a number of other FSRU and gas related opportunities in India, Sri Lanka and Bangladesh.” Jeff Heath Womens Jersey
Iran ready for Pak-Turkmen gas swap, views TAPI plan as unlikely
Iran is ready to participate in a gas swap between Pakistan and Turkmenistan as it thinks that the ambitious, multi-billion dollar TAPI gas pipeline that includes India is unlikely to become operational, a top Iranian official has said. The USD 10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project will help ease energy shortages in South Asia. Hamid Reza Araqi, the CEO of the National Iranian Gas Company (NIGC) expressed Iran’s readiness to participate in the Turkmen gas swap to Pakistan. “It is unlikely that the Turkmen gas pipeline to Pakistan will be constructed, and Iran is ready for this swap,” Iranian news agency FARS quoted Araqi as saying. “I see it unlikely for the TAPI pipeline to become operational,” he said. Given Iran’s location in the centre of the region, “we can join every gas pipeline that passes around the country,” he said. Araqi, who is also the deputy petroleum minister for gas affairs, added that Iran is the best pathway for gas transmission from Turkmenistan to Pakistan, adding, “We are able to receive Turkmen gas and deliver it to Pakistan.” He said Iran had conveyed its readiness to Turkmenistan to export their gas to Pakistan but was yet to receive any response from them. Turkmenistan, which sits on the world’s fourth-largest gas reserves, started building its section of the pipeline in December 2015. The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for 30 years and is planned to become operational this year. The project will bring clean fuel to the growing economies of India and Pakistan. It will provide energy-hungry India gas to run its power plants. India has concerns relating to the safety of the pipeline and safe transit of gas through restive areas in Afghanistan and Pakistan. Under the pipeline project, Pakistan and India will be provided 1.325 bcfd gas each and Afghanistan will be getting a share of 0.5 billion cubic feet per day (bcfd) gas. Marquez Valdes-Scantling Authentic Jersey
BPCL to shut Bina oil refinery from mid-September for 45 days
Bharat Petroleum Corp Ltd will shut its 120,000 barrels per day (bpd) joint venture Bina refinery from mid-September for 45 days to expand its capacity by 30 percent, its head of refineries said on Tuesday. During the shutdown, the company will carry out modifications at various units to raise capacity of the plant to 156,000 bpd, R. Ramachandran told Reuters. “The refinery will be stable and start operating at (an annual rate of) 7.8 million tonnes (156,000 bpd) before the end of this calendar year,” Ramachandran said. The expansion is also aimed at producing cleaner fuels. The Bina refinery is operated by Bharat Oman Refineries Ltd (BORL), a 50-50 joint venture between Oman Oil Co and state-run Bharat Petroleum Corp. Derek Dorsett Authentic Jersey
Retrospective’ amendment to Rajasthan production pact puts Cairn India in a spot
Cairn India’s 25-year contract for exploration and production of oil and gas from Barmer block RJ-ON-90/1 is due for renewal on May 14, 2020, but it has to, as per a new policy, apply for a 10-year extension within this month, sources said. A ‘retrospective’ amendment to the contract for the prolific Rajasthan oil block has put its operator Cairn India in a spot, as it has to shell out more to the government to retain it for another 10 years. Cairn India’s 25-year contract for exploration and production of oil and gas from Barmer block RJ-ON-90/1 is due for renewal on May 14, 2020, but it has to, as per a new policy, apply for a 10-year extension within this month, sources said. The company feels the May 1995 Production Sharing Contract (PSC) for the block provided for an automatic 10-year extension on same commercial terms if there are oil and gas left to be produced. But now the government has midway retrospectively changed fiscal terms in the name of extension is unjust to it, they said. The government had in March last year approved a new policy for extension of PSCs that provided for an extension beyond the initial 25-year contract period only if companies operating the fields agree to increase the state’s share of profit by 10 percent. State-owned Oil and Natural Gas Corporation (ONGC), which as a government nominee picked up 30 percent stake in the Rajasthan block in 1995, also was of the opinion that PSC provides for an extension on same terms. ONGC had first in May 2015, then again on at least two occasions in 2016, concurred with Cairn’s interpretation of the PSC for extension of the Rajasthan contract by 10 years on same terms. “ONGC had obtained an external legal opinion from B Sen, an eminent senior counsel of Supreme Court of India on the interpretation of RJ-ON-90/1 PSC. B Sen opined that as per Article 2.1 of PSC, terms and conditions of PSC can be negotiated only in the case where the contract is to be extended beyond 35 years (25 initial years plus 10-year extension),” the company had written to the Oil Ministry on May 25, 2015. It had stated that the company being the licensee/lessee as well as joint venture partner in RJ-ON-90/1 block “felt that to protect ONGC’s interest as well as to enable a continued participation in exploration and production activities in RJ-ON-90/1 block, it would be prudent to seek extension of the contract with same terms and conditions as per the existing contract”. ONGC board, which has two senior government officials as members, had on April 28, 2015, approved seeking “a 10-year extension to the duration/tenure of the PSC for the RJ-ON-90/1 block on existing terms and conditions from the Government of India”. After Cairn, now known as Vedanta, in February 2014 asked the Oil Ministry for extension of PSC by 10 years, ONGC concurred with the proposal, sources said, adding that the company feels the new conditions for increased profit share is unfair. Antonio Gates Jersey
India seeks Japan’s help to build LNG facilities
India wants to increase the share of gas, which is a cleaner fuel than oil, to 15 percent of its energy usage by 2030 from 6.2 percent currently. Explored opportunities for Japanese investments in India’s gas infrastructure and SPR (strategic petroleum reserve) program, Pradhan tweeted after a meeting with Seko. India asked Japan on Tuesday to help build infrastructure needed to boost the usage of liquefied natural gas (LNG) in India and elsewhere in Asia, India’s oil minister Dharmendra Pradhan said after a meeting with Japan’s trade minister Hiroshige Seko. India wants to increase the share of gas, which is a cleaner fuel than oil, to 15 percent of its energy usage by 2030 from 6.2 percent currently. “Explored opportunities for Japanese investments in India’s gas infrastructure and SPR (strategic petroleum reserve) program,” Pradhan tweeted after a meeting with Seko. The two ministers also discussed the possibility of developing joint energy projects in Africa, Pradhan said. Seko’s visit to New Delhi has come at a time when India is preparing to create a network with other major oil consumers in Asia, such as China, South Korea and Japan, to negotiate better terms with sellers. The world’s biggest LNG buyers, all in Asia, are increasingly clubbing together to secure more flexible supply contracts in a move that shifts power to importers from producers in an oversupplied market. The world’s three biggest LNG buyers – China, Japan and South Korea – joined together last year in March to secure flexible supply contracts. India was not part of that group. However, in October the Indian cabinet approved a plan allowing New Delhi to work with Japan to make long-term LNG import deals more affordable for its consumers.
Kuwait Petroleum eyes stake in India’s Bina refinery: sources
Kuwait Petroleum International (KPI) is in talks to buy 24 percent of the Bina joint venture refinery in central India, two Indian and two foreign sources said, as the Middle East nation wants to increase its South Asian market share. Global oil producers are vying to gain entry into India’s expanding refining sector. The world’s third-biggest oil importer plans to raise its refining capacity by 77 percent to about 8.8 million barrels per day (bpd) by 2030 to meet rising fuel demand. “Talks with KPI are at a preliminary stage,” said one of the Indian sources. KPI is the international downstream unit of state-owned Kuwait Petroleum Corporation (KPC). The 120,000-bpd Bina plant is operated by Bharat Oman Refineries Ltd (BORL), a 50-50 joint venture between Oman Oil Co and state-run Bharat Petroleum Corp (BPCL.NS). Kuwait Petroleum International Chief Executive Officer Nabil Bourisli said in April his company intends to sign a deal soon to buy a stake in an Indian refinery and petrochemical project and supply as much as 200,000 bpd of oil. BPCL, Oman Oil and KPI did not respond to Reuters e-mails seeking comment on any discussions. BPCL has funded an expansion of the Bina refinery to 156,000 bpd that is to be completed later this year. Oman Oil did not invest in the upgrade. BPCL has an option to convert its additional spending into equity that would raise its overall share in BORL to 74 percent. Indian sources said BPCL would like to retain at least 50 percent in BORL, mirroring an equity structure for a planned west coast refining project co-financed by Saudi Aramco in which Indian and foreign ownership is evenly split. Saudi Aramco last month signed a deal to buy a 50 percent stake in the $44-billion planned project in Maharashtra, with an option to share a part of its equity with a new foreign partner. Abu Dhabi National Oil Co (ADNOC) may join Aramco for the project, sources said last month. For Bina, the plan would be for BPCL to retain half of the refinery, while KPI and Oman Oil would share the remaining 50 percent stake, the Indian sources said. An Oman Oil Co source said participation of KPI is one of the proposals being discussed among the three parties – BPCL, Oman Oil Co and KPI – but that nothing is finalised yet. BORL has plans to double its expanded refining capacity to 310,000 bpd and build a petrochemical project. BORL turned profitable for the first time in fiscal 2015/16, and since then has been posting double-digit gross refining margins. In 2016/17, BORL’s net profit more than doubled to 8.1 billion Indian rupees ($121.91 million). Oil from Kuwait accounted for about 6 percent of India’s overall imports in 2017/18. ($1 = 66.4400 Indian rupees) Marcus Peters Womens Jersey
H-Energy inaugurates India’s first FSRU based LNG terminal
H-Energy Gateway Private Ltd. (the energy venture of Hiranandani Group) has launched India’s first Floating Storage Re-gasification Unit (FSRU) based LNG terminal at JSW Jaigarh Port in Ratnagiri District, Maharashtra. The Jaigarh Port is owned & operated by JSW Infrastructure (the maritime infrastructure development arm of US$ 12 billion JSW Group). The LNG terminal was inaugurated by the Hon. Chief Minister of Maharashtra, Devendra Fadnavis. H-Energy’s LNG Terminal is developed in accordance with world-class engineering and safety standards with an annual capacity of 4 MMTPA. It is scheduled for commercial operations by Q4 2018 and will be capable of reloading LNG into other vessels. The launch of India’s first FSRU based LNG terminal marks a new era of opportunities to drive the development of port based industries and social infrastructure in India. The LNG terminal will cater to the need of clean, safe and affordable natural gas. H-Energy’s LNG Terminal is also expected to greatly benefit the state of Maharashtra by providing clean fuel for transportation & households. The LNG terminal will offer storage, re-gasification, re-loading, fuel bunkering and truck loading facilities to cater to the growing energy demand of Indian industries. When operational, the re-gasified LNG will be supplied to customers, through a 60-km tie-in pipeline which shall be connected to national gas grids at Dabhol. Niranjan Hiranandani, Chairman Hiranandani Group congratulated everyone and expressing his views said , “Setting up India’s first FSRU is an honour for our company. We are pleased that the first of our LNG ventures is getting completed on schedule; we also continue to work on our other projects at a steady pace. We would like to reiterate our commitment towards creating infrastructure that will help improve the lives of the people.” Speaking on the occasion, Darshan Hiranandani, MD & CEO, H-Energy said, “We are happy to see our vision turning into reality. Inaugurating the first FSRU project and Jetty infrastructure is a key milestone towards completion of this LNG terminal project. The FSRU-led approach will usher a sectoral change in terms of reducing the time taken for commissioning such re-gasification projects. This project enables H-Energy to become a large scale provider of natural gas to India, a much desired green fuel. My sincere thanks to Government of Maharashtra, Ministry of Petroleum and Natural Gas, Ministry of Shipping and the Petroleum and Natural Gas Regulatory Board, for their continued help and guidance. I also congratulate my team on the dedication and hard work put in to achieve such a feat.” Commenting on the inauguration event, Capt. BVJK Sharma, Joint Managing Director & CEO, JSW Infrastructure said, “JSW’s collaboration with H-Energy and the launch of India’s first FSRU-based LNG Terminal reiterates our commitment to enable development of state-of-the-art maritime infrastructure facilities in India. In the near future, Jaigarh Port is getting ready for a giant leap to handle 80 MTPA of cargo and is aiming for direct berthing of next generation vessels i.e. largest dry bulk carrier (Vale Max), LNG carrier (Q-Max), largest container vessels (EEE Series) and very large crude carriers. This LNG terminal will enable development of local port-based industries in Maharashtra region.” Pierre Turgeon Authentic Jersey
Sonatrach boosted gas output by 5 percent in 2017 – CEO
Algeria’s state energy firm Sonatrach said on Monday it boosted its gas output by 5 percent to 135 billion cubic metres in 2017, marking the first time the company has used a news conference to disclose production data. Sonatrach’s CEO, appointed a year ago, has been trying to overhaul the company, a sprawling and secretive empire not used to change, and increase transparency as the North African country wants to attract more investment. Total oil and gas output rose by 2 percent in 2017 to 196.5 tonnes of oil equivalent, Chief Executive Abdelmoumen Ould Kaddour told reporters. Oil production fell 3 percent due to OPEC quotas, he said. The company’s turnover from oil and gas in 2017 was $33.2 billion, he said, adding that the firm had invested $8.1 billion in 2017, down 8.8 percent from the previous year. Kaddour, a U.S.-trained engineer, took the reins at Sonatrach last year to overhaul a company plagued by contract disputes with foreign firms, red tape, stagnant production and corruption scandals. He gave no details of the firm’s future strategy at the news conference, beyond previously stated general messages. “We need to transform Sonatrach into one of the top five national companies in the world,” Kaddour said. “Less bureaucracy and more professionalism.” Algeria, a member of the Organization of the Petroleum Exporting Countries and a major gas supplier to Europe, has been hit by a slump in oil prices and struggled to attract investment to help develop new fields and increase existing production. In December, Sonatrach said it planned to work more closely with France’s Total on offshore, petrochemical, solar energy and shale exploration projects after settling disputes over profit-sharing on oil and gas contracts. Algeria remains dependent on oil and gas earnings, which provide 60 percent of the state budget, and Sonatrach’s performance is key to the economy. The country has been working on a new energy law to provide better incentives for foreign firms, which had been deterred by current terms. But there are still divergent views within Algeria over how hard to push for foreign investment and domestic economic reform to boost revenue and growth. Blake Coleman Womens Jersey
Lawsuit targeting oil, gas lease sales cites imperiled bird
Environmental groups are suing the Trump administration for selling oil and gas leases on huge swaths of Western U.S. public lands while allegedly ignoring policies meant to protect an imperiled bird. The lawsuit filed Monday in U.S. District Court seeks to reverse lease sales across 475 square miles (1,230 square kilometers) in Montana, Wyoming, Utah and Nevada. Western Watersheds Project and Center for Biological Diversity also want to block upcoming sales covering 1,800 square miles (4,662 square kilometers) in those four states plus Idaho. Under former President Barack Obama, the Interior Department in 2015 adopted plans to protect greater sage grouse after the ground-dwelling bird lost much of its habitat due to energy development and other causes. Trump’s Interior secretary, Ryan Zinke, has placed a greater priority on energy development. Matt Wile Jersey