Setback for India, international panel rejects stay on Cairn arbitration
In a setback to India, an international arbitration panel has rejected its demand for a stay on an arbitration initiated by British oil explorer Cairn Energy plc against a Rs 10,247 crore retrospective tax notice. The panel, comprising three judges of international repute, has also turned down India’s application for bifurcation of the issue of whether tax is covered under India-UK bilateral investment protection treaty, sources privy to the development said. Income tax department had in January 2014 charged Cairn Energy of making capital gains on transfer of India assets to a newly created firm, Cairn India and listing it on stock exchanges. Instead of applying long-term capital gains tax, it levied a short-term capital gains tax and slapped a draft tax demand of Rs 10,247 crore. Also, it debarred Cairn Energy from disposing of its 9.8 per cent remaining stake in Cairn India, which the British firm had in 2011 sold to Vedanta Group. In April 2014, the tax department slapped a Rs 20,495 crore demand on Cairn India, the UK firm’s erstwhile subsidiary for failing to deduct tax on the capital gains. Both firms denied any tax was due and initiated arbitrations — Cairn Energy under India-UK investment treaty and Vedanta under India-Singapore investment treaty. Sources said India sought a stay on proceedings in Cairn Energy’s arbitration for potentially five years, stating that it is “unfair” that they have to defend two cases at once. However, it was Indian government’s decision to join both the arbitration and hence it could not go back on anyone of them. A three-member arbitration panel headed by Geneva-based arbitrator Laurent Levy, which began hearing Cairn Energy’s demand for USD 5.6 billion in compensation from the Indian government for raising a retrospective tax demand in May last year, rejected the application for ‘stay’ on March 27, 2017, they said. It rejected the bifurcation application on April 19, 2017, sources said, adding India can however continue to argue that tax matters are not covered under bilateral investment treaties under the main arbitration. Both the applications were seen as delaying tactics on part of the Indian government, which did not file its Statement of Defence to Cairn’s demand by the November 11, 2016 deadline set by the panel. It also missed the extended deadline of mid-January, only to file it by February 4. Sources said the panel has set a strict timeline, with evidential hearings slated to start in mid-January 2018 and the arbitration proceedings being wrapped up in next few months. Cairn Energy has to file its rebuttal to India’s Statement of Defence by mid-June and the Indian government will get a final change to make further statements on that by September/October. Thereafter evidential hearings are scheduled, they said. The arbitration award will be final and cannot be challenged in any court, they added. Matt Belisle Womens Jersey
Nigeria’s government revenues rise in March due to higher oil royalties
Nigeria’s distributable government revenues rose to 467.81 billion naira ($1.53 billion) in March from 429 billion naira in February due to higher royalties from oil production, a government statement said on Tuesday. Distributable revenue is government income that is shared at various levels of state including the federal government, state governments and local government councils. The revenues were boosted by “a noteworthy increase in revenue from oil royalty,” said the statement. However, the rise was slightly offset by low levels of crude oil production, despite prices rising from $44.74 to $52.86 per barrel in March, the statement said. Revenues from crude exports fell by $6.4 million due to a “decrease in crude oil export volume,” said the statement, adding that production fell largely due to sabotage to pipelines causing leaks and the shutdown of major terminals such as Forcados. OPEC member Nigeria, which last year entered its first recession in a quarter of a century, relies on crude oil sales for two-thirds of its government revenue but has been hit hard by the fall in global crude prices since mid-2014. Militants have carried out attacks on oil and gas facilities in the southern Niger Delta energy hub for a year, cutting oil production – which stood at 2.1 million barrels per day at the start of 2016 – by as much as a third, though output has since mostly recovered. Attacks have halted in recent months with talks between the government and Delta community leaders to address the grievances of militants, who want the oil hub to receive a greater share of the country’s energy wealth. Pierre Desir Womens Jersey
Modi to meet Sri Lankan Prime Minister today; Energy pact on the cards
Sri Lankan Prime Minister Ranil Wickremsinghe, who arrived in the national capital yesterday on a five-day visit, will meet Prime Minister Narendra Modi and hold bilateral talks today. He is being accompanied by International Trade Minister Malik Samarawickrema and Disaster Management Minister Anura Priyadarshana Yapa. The Sri Lankan Prime Minister arrived in Delhi with an expectation to finalise an MoU on developing energy and infrastructure projects in Trincomalee, as well as speeding up negotiations for the upgraded Free Trade Agreement -the ETCA (Economic and Technical Cooperation Agreement). As per schedule, Prime Minister Narendra Modi’s Sri Lankan counterpart will meet Minister of Road Transport and Highways and Shipping Nitin Gadkari, Minister of External Affairs Sushma Swaraj at the Hotel Taj Palace. Thereafter, he will meet Prime Minister Narendra Modi at Hyderabad House at 1 p.m. At 4 p.m., he will meet Union Home Minister Rajnath Singh at the Hotel Taj Palace before concluding his engagements for the day. On Thursday, the Sri Lankan Prime Minister will emplane for a two-and-a-half day-long visit to Udaipur, Rajasthan, at 11.30 a.m. and attend several engagements there through Saturday. On Saturday afternoon, he will return to New Delhi and emplane for Colombo at 6.45 p.m. Before his visit, the Sri Lankan Prime Minister said that he is looking forward to strengthen economic cooperation with India. He said the development of eastern port district of Trincomalee will be discussed during the visit. Sri Lankan government has proposed to sign a MoU with India during visit of Prime minister Narendra Modi to Sri Lanka next month. The MoU proposes Indian investment in development of port and oil tank farms in Trincomalee, setting up of a LNG power plant and terminal, piped gas supply in capital Colombo, highway and railway projects in north and east of the country etc. The proposed Economic and Technical Cooperation Agreement (ETCA) and the issue of fishermen between the two countries are also likely to figure in the discussions. Wickremesinghe will also hold discussions with Congress President Sonia Gandhi. Kentrell Brice Authentic Jersey
Petrol bunks to remain open for only 12 hours a day from May 15
Andhra Pradesh Federation of Petroleum Traders (APFPT) on Tuesday announced that they will operate for only 12 hours a day from May 15 onwards. Also if the dealers’ margin is not increased in the upcoming meeting with oil marketing companies (OMCs) in New Delhi on May 9, the federation will observe a no purchase day on May 10. Heeding Prime Minister Narendra Modi’s call to shut petrol bunks on Sundays, petroleum traders said they are going to shut their outlets on Sundays across Andhra Pradesh. APFPT president Ravi Gopala Krishna said oil marketing companies (OMCs) are reluctant to increase the dealers’ margin even though their demands were supported by Apporva Chandra committee report. He further said a Memorandum of Understanding (MoU) was signed between OMCs and traders wherein 11 regulations were agreed upon, which included increasing dealers’ commission on every litre of fuel sold. “They promised to increase the dealers’ margin after every six months in the MoU. However, that has not happened. More than 80 per cent of the traders in state are bearing losses,” said Gopala Krishna. He said a national-level meeting between petroleum dealers and OMCs is going to be held on May 9 in New Delhi, during which a final call will be taken on the dealers’ commission. “If our commission is not increased, we will protest by not purchasing fuel on May 10,” he added. Gopala Krishna said fuel stations in AP are going to operate for only 12 hours (from 6am to 6pm) from May 15 because it will help reduce costs. Tarik Cohen Womens Jersey
Sri Lanka workers to strike against proposed oil deal with India
Workers’s of Sri Lanka’s state-run petroleum firm are set to launch an indefinite strike from tomorrow against the government’s proposed deal with India to jointly operate an oil storage facility at the strategic eastern port town of Trincomalee. Ceylon Petroleum Corporation (CPC) Trade Union Collective workers have threatened to cripple entire transportation sector in the country. Lanka and India are expected to sign an agreement to jointly invest and develop the Trincomalee Port and establish a petroleum refinery and other industries there. The workers have three demands which include getting the government to stop granting outright ownership of some 14 World War II oil storage tanks in the eastern port district of Trincomalee. The Petroleum Joint Union Alliance says it opposes the proposal to transfer operations rights to oil tanks to India since the agreement would benefit the Lanka IOC, Indian Oil’s subsidiary, allowing it to expand further and the CPC, which is already in debt, will incur further financial losses. They also asked the government to shelve plans to build a new oil refinery with Chinese assistance in the southern port of Hambantota and to immediately begin repairing the existing refinery near Colombo. “We will be striking from tomorrow and stop all fuel distribution in the country,” Bandula Saman Kumara a spokesman for the trade unions told reporters today. He said by mid-week the Colombo international airport would face the danger of becoming non-operational due to fuel sector strike. At least 73 of the 99 storage tanks in Trincomalee is to be managed under a new equity arrangement between the two countries, Lankan Petroleum Minister Chandima Weerakkody had said earlier. The union has taken the decision to strike after President Maithripala Sirisena has reportedly turned down a request for a meeting to discuss the issue. Lankan Prime Minister Ranil Wickremesinghe, who will visit India on April 25, had said yesterday the development of eastern port district of Trincomalee will be discussed during his visit. Mike Mitchell Jersey
Government aims to cut petroleum imports as it boosts alternative fuel use
The government is aiming to cut its oil products imports to zero as it turns to alternative fuels such as methanol in its transport sector, an official said at an investor briefing on Monday. “We are trying our level best that the day will come when we don’t need to import any fuel from any country and that we will be self-sufficient,” said Transport Minister Nitin Gadkari at a conference organised by Nomura in Singapore. But he could not provide a specific timeline for the target due to challenges with the distribution and availability of alternative fuels such as liquefied natural gas (LNG) in the country, he said. “Auto-rickshaws are using LPG (liquefied petroleum gas) now…LNG is important but the availability of LNG and distribution is a big challenge… we have to develop that,” he said. India is also planning to start 15 factories to produce second generation ethanol from biomass, bamboo and cotton straw as it aims to develop its mandate to blend ethanol into 5 percent of its gasoline, he added. “Bamboo is available from tribal areas… our vision is to be cost effective, import substitute and pollution free,” he said. India imported about 33 million tonnes of oil products over April 2016 to February 2017, up nearly 24 percent from the same period a year ago, government data showed. The majority of the imports comprise petroleum coke and LPG. Energy consumption in India, the world’s third-biggest oil consumer, is expected to grow as it targets between 8 to 9 percent economic growth this fiscal year from around 7 percent in 2016/17. To cut the country’s carbon footprint, New Delhi wants to raise the use of natural gas in its energy mix to 15 percent in three to four years from 6.5 percent now. India is developing LNG bunker ports and plans to develop its electric vehicle fleet, Gadkari said. Bo Jackson Jersey
Sudan won’t extend ONGC’s licence to operate oil block
Sudan has denied India’s Oil and Natural Gas Corporation an extension of licence to operate an oil block after the initial contract expired in November 2016. ONGC Videsh, the overseas arm of the state-run firm, had a 25 per cent interest in the 2B block of Sudan and its share in the block’s output was 7,000-8,000 barrels a day. China National Petroleum Corporation and Malaysia’s Petronas are the other partners in the block. The process of surrendering the block is underway after the Sudan government gave a notice to that effect, a senior ONGCBSE 0.89 % executive said. The notice to surrender came after months of negotiations between the companies and the government yielded no result. ONGC and partners were seeking a licence renewal for 15 years but couldn’t agree to the demands of the Sudanese government. “It was not economical to commit to work programme or investment Sudan was demanding,” the executive said, requesting not to be identified. The previous 20-year contract that expired last year provided for a five-year extension without any alteration in terms but Sudan didn’t agree to that during negotiations, the executive said. The state oil companies of Sudan will now operate the 2B block. ONGC has stakes in two more producing blocks in Sudan, where the licence to operate will run till 2021-22. ONGC’s share in output from these blocks is 6,000-7,000 barrels per day. Sudan owes a few hundred million dollars to ONGC, including $100 million for the oil pipeline the Indian company built in the country and its share of the produce from the 2B block. In 2003, ONGC had purchased stake in the Greater Nile Oil Project comprising block 1, 2 and 4 in Sudan. After South Sudan was carved out of Sudan in 2011, the reserves were split between the two countries. All the blocks of South Sudan in which ONGC has stakes have been shut for about three years due to security issues. South Sudan has been seeking India’s help in reviving production at those blocks and is willing to compensate ONGC for the period the fields have not operated. South Sudan is also keen on quickly extending the licences to operate these blocks for another five years, most of which will expire in the next five years or so. Tim Tebow Womens Jersey
You may soon get home delivery of petrol, diesel at your doorstep
India is considering a plan for home delivery of petroleum products to consumers if they make a pre-booking to cut long queues at fuel stations, the oil ministry tweeted on Friday. About 350 million people come to fuel stations every day, it said. Annually Rs 2,500 crore ($387.00 million) worth of transactions takes place at fuel stations. India, the world’s third biggest oil consumer, will be introducing daily price revision of petrol and diesel in five cities from May 1, ahead of a nation-wide roll out of the plan. Kemba Walker Authentic Jersey
India shows the path for cheaper solar energy: World Bank
It is better to move towards solar energy than to continue to build coal plants, World Bank President Jim Young Kim said today, citing India’s massive efforts in solar energy which has made it “cost effective” and “quite competitive”. “There’s some really good news. We’ve our IFC (International Finance Corporation), our private sector group, has been working in India and as recently as a year and a half, two years ago, the price of solar was still around 10, 11 cents per kilowatt hour. “And so coal was still much cheaper than solar. But the latest option that we’ve been involved in got that price down to 4.4 cents a kilowatt hour. So now solar is quite competitive with coal,” Kim told reporters. He said there was need to keep doing that as the options around the world, even in emerging markets, have gone down below three cents a kilowatt hour at which point it “becomes cost effective”. “The incentives are clear that moving towards solar is better than continuing with the building of coal plants. So we need to find ways of accelerating that process. We hope to come out of these spring meetings with a platform like that in place,” Kim told reporters at the news conference held at the start of the annual Spring meeting of the International Monetary Fund and the World Bank. He said climate change issue continued to be a priority for the Bank. “We are thinking about how we can bring together the private sector, the public sector, philanthropists, environmental organisations, governments, to try to really create momentum around financing for climate change,” he said. On coal, he identified six countries – China, India, the Philippines, Indonesia, Pakistan and Vietnam which are putting most of the coal-based carbon in the air. “So if we can change the incentives, and change the way that financing for energy works in those six countries, we could potentially have a huge impact on how much carbon we put in the air,” Kim said. “We call this our following the carbon initiative in that we have to make progress in these six countries of moving them much more quickly to renewable source. All right, so now the good news is that renewable source are getting cheaper,” he said referring to the low price of solar. “I’m told that storage technology is getting better very quickly, and that within a few years, we may have some major transformations in the ability to store energy from intermittent sources. So, with all that happening, we think that a major issue is going to be cost to finance, the cost of capital,” Kim said. However, he rued that a grant of hundred billion was promised, but is not coming. “I mean the Green Climate Fund is still right around 7.5 billion after two or three years. The estimation was that there would be many more billions of dollars than that. So we’re using this meeting to bring all of the leaders together to come up with a new plan,” he said. Kim said the bank was going to put on the table a different kind of platform where all the different groups that are trying to have an impact on climate can work together to put the financing tools together. “The bottom line is this, that the science of climate change didn’t change with any particular election. And I don’t see that it will,” he asserted. Peja Stojakovic Jersey
ConocoPhillips says keen to tap proposed trans-Australia gas pipe
ConocoPhillips will consider diverting natural gas from fields in northern Australia along a proposed transcontinental pipeline that would link directly to markets in the southeast, a senior executive told Reuters on Thursday. The U.S. oil major is also leaning towards developing the Barossa gas field offshore northern Australia, with a final decision due in early 2019, Kayleen Ewin, the company’s vice president for sustainability, communications and external affairs, said in an interview. Ewin said the proposed transcontinental pipe would open Australia’s domestic market for northern producers. The system would carry natural gas from the Northern Territory to Moomba in South Australia, the hub for gas to the country’s main southeastern markets. Australia’s government said last month it would study and possibly contribute to building the pipeline. That offers another opportunity for developing gas resources in a region where Royal Dutch Shell, Malaysia’s Petronas, Italy’s ENI SpA, and Australia’s Santos and Origin Energy have undeveloped interests. “Really our only route to market at the moment is LNG (liquefied natural gas) for northern Australia gas, and we always welcome anything that opens up another route to market,” Ewin said. “We’d definitely look into it … southeast Australia for LNG has historically been and will be in future a big market for us. Proximity to market just means there is a cost advantage in terms of competing.” A looming gas shortage for Australia’s populous east has seen prices spike and the government search for solutions, including calling a crisis meeting this week with producers, some of whom have drawn gas from the domestic market to meet export contracts. Another pipeline linking central Australia with the east is delayed. ConocoPhillips announced on Wednesday it is also considering adding a second production unit, or train, at its Darwin LNG plant and possibly processing gas from rivals’ undeveloped fields. ConocoPhilips is also in the final stages of picking a new gas field to fill the plant’s existing train, when supply from its current gas source, the Bayu-Undan field, runs out around 2022. “Barossa looks to be the lowest cost development,” Ewin said, adding its proximity and the ease of extraction means the company is leaning toward preferring it over the larger Poseidon field. The project is expected to cost up to A$10 billion ($7.5 billion). The company had said in February a final decision was due late in 2018 at the earliest. T. J. Logan Jersey