Tell us in 2 days how you plan to phase out diesel taxis: SC to Delhi government
The Supreme Court today gave a two- day deadline to AAP government for filing a detailed plan on phasing out diesel run taxis from the national capital, which faced protests and blockades by diesel cab operators causing hardship to regular commuters for the second consecutive day. A bench comprising Chief Justice T S Thakur and Justice F M I Kalifulla granted the time after the counsel appearing for Delhi government said that meetings with the representatives of stake holders will be held today and tomorrow after which it can submit a plan as directed by the court. Earlier in the day, the government had moved the apex court seeking time to phase out diesel taxis from the national capital after which the court had directed it to submit a plan, as how it propose to do so by 4 pm. The bench has said that whenever such decisions are taken, inconvenience is bound to be caused to the people and asked the Delhi government to submit a suitable detailed and workable plan. During the brief hearing, senior advocate Chander Uday Singh, appearing for the Delhi Government, had said that in the wake of Supreme Court’s order around 30,000 diesel taxis have stopped plying in the national capital which is causing inconvenience to the common people and creating a law and order situation. He sought some time for phasing out the vehicle in a time -bound manner saying the government is committed to tackle the problem of pollution. The bench also asked the Delhi Government to specify as to whether it stop the registration of diesel vehicles saying that it was the order given in December and the deadline was extended everytime. The counsel said that due to the apex court’s order, a human problem has been created and the government needs time to tackle the problem by phasing out the vehicles in phased manner or for making some alternate arrangement. The Supreme Court had on April 30 refused to extend the deadline fixed for conversion of diesel taxis into less- polluting CNG mode. The court had on December 16 last year considered the contention of senior advocate Harish Salve, who is assisting the court as amicus curiae, that all diesel taxis be moved to CNG fuel within a reasonable time but not later than March 1, 2016. “We, therefore, direct that all taxis including those operating under aggregators like OLA and UBER in the NCT of Delhi, plying under city permits shall move to CNG not later than March, 1,” it had said and later extended it to April 30. William Carrier Jersey
India Oilfield Services Market Forecast and Opportunities, 2020
Oilfield Services involve a wide range of services that facilitate oil and gas exploration and production (E&P). These services are provided to smoothen the drilling process, thereby eliminating the waste produced during drilling and enhancing the oil recovery process by providing repair and maintenance of bore wells. In India, Gujarat, Rajasthan and Assam account for maximum demand for oilfield services due to large scale oil and gas exploration and production activities being undertaken in these states. Government’s decision of auctioning 69 idle oil and gas fields of state-owned ONGC and Oil India to private companies on new revenue sharing model is expected to boost oil and gas E&P over the next five years, which in turn would fuel growth in the country’s oilfield services market through 2020. According to TechSci Research report, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to surpass US $ 7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Onshore oilfield services segment holds majority share in India’s oilfield services market; however, the offshore oilfield services is forecast to exhibit higher growth during 2015 – 2020. Comprising three vital type of services i.e. cementing, direction drilling, hydro fracturing services, drilling services segment accounts for the largest share in the oilfield services market, followed by drilling & completion fluids services, wireline services, pressure pumping services and coiled tubing services. “India Oilfield Services Market Forecast & Opportunities, 2020” discusses the following aspects of oilfield services in India: – India Oilfield Services Market Size, Share & Forecast – Segmental Analysis – By Application (Onshore & Offshore); By Type (Oilfield Drilling, Oilfield Drilling & Completion Fluids, Oilfield Wireline, Oilfield Pressure Pumping Services, Oilfield Coiled Tubing, Oilfield OTGS, etc.) – Policy & Regulatory Landscape – Changing Market Trends & Emerging Opportunities – Competitive Landscape & Strategic Recommendations Brett Hundley Jersey
India: LNG shipbuilding plans cross a milestone
One of the biggest elements of Prime Minister Narendra Modi’s Make in India initiative crossed a milestone recently when state-run natural gas company GAIL (India) Ltd received initial bids from two consortiums for hiring at least nine liquefied natural gas (LNG) carriers on a long-term basis for transporting gas from the US. The supply of 2.3 million tons per annum (mtpa) of LNG from the Cove Point terminal in the US will begin in December 2017. The delivery of 3.5 mtpa LNG from the Sabine Pass terminal, also in the US, will start in March 2018. While two bids may look a tad disappointing for a tender worth $7 billion, the fact remains that the consortium partners comprise most of the world’s top LNG shipowners. A consortium of Mitsui O.S.K. Lines Ltd (MOL)-Nippon Yusen Kabushiki Kaisha Ltd (NYK Line) and Mitsui and Co. Ltd and another group comprising Mitsubishi Corp.-Kawasaki Kisen Kaisha Ltd (K Line)-GasLog Ltd and Foresight Ltd have applied for one of the most keenly watched shipping tenders globally. That makes it a total of seven fleet owners that have participated in the tender in two separate consortiums. Given the huge investments involved in constructing nine LNG carriers, with an option for an additional two, and the risks inherent in building three of the nine tankers on firm order locally for the first time, it is not a small number at all. That it took GAIL a second attempt to receive the two bids (the first tender issued in August 2014 had to be scrapped in February 2015 because nobody showed up) speaks volumes of the complexity involved in the auction. GAIL will not order the ships directly at shipyards—both overseas and Indian. It plans to charter the carriers from global fleet owners who will have to construct three of the nine LNG tankers in India as part of the Make in India plan, aimed at attracting foreign investment and turn India into a manufacturing hub. Prospective bidders were required to quote for lots of three vessels (one lot consisting of three carriers) with a provision that under each lot, one of the vessels has to be built in an Indian yard. Bidders could quote for one or more lots of three ships each. GAIL may hire one or two extra tankers to fulfil its capacity requirement. Hence, in addition to the quote for lot(s), it was mandatory for bidders to quote for at least one additional ship from an Indian shipyard. A bidder offering two additional ships has to necessarily quote for one additional vessel from an Indian shipyard and the other from an overseas shipyard. In case one additional vessel is required, it will be built at an Indian shipyard. If two additional vessels are required, the first vessel has to be from an Indian shipyard and the second vessel from an overseas yard. Both the bidding groups have applied for one lot each of three LNG carriers. Besides, the MOL-NYK-Mitsui consortium has submitted techno-commercial bids for two additional ships (taking the total offer to five ships). Plus, it has expressed willingness to offer a sixth ship (this is not in line with the tender conditions). The Mitsubishi-K Line-GasLog-Foresight consortium has applied for one lot of three tankers and an additional ship to comply with the tender requirements. The five ships offered by the first consortium (excluding the sixth one on offer that may not fit the tender rules) and the four quoted by the second will take the total tankers on offer to nine. This clearly shows none of the two consortia were keen on making an investment for nine ships. It also means that there will be more than one successful bidder. Critics who still harbour doubts over India’s capability to build LNG ships should recall what China did to enter the LNG shipbuilding/LNG ship owning business during the early years of the past decade. When none of the global yards were willing to part with the technology to build LNG carriers, Shanghai-based Hudong-Zhonghua Shipbuilding (Group) Co. Ltd, a unit of state-run China State Shipbuilding Corp., was directed to start constructing LNG ships with design developed locally and financed by Chinese lenders. The LNG containment system used on the ships was licensed from French firm Gaztransport et Technigaz SA (GTT). China LNG Shipping (Holdings) Co. Ltd (CLNG) was set up in Hong Kong, as an equal joint venture between two state-owned firms, China Ocean Shipping (Group) Company and China Merchants Group, for planning, coordinating and arranging all the investments and management works related to LNG transportation projects in China. The JV has invested around $1 billion in six LNG carriers so far. China later brought in BP Shipping Ltd, a unit of London-based oil and gas firm BP Plc, as a 40% shareholder in China LNG Shipping (International) Co. Ltd (CLSICO), a Hong Kong-based JV 60% owned by CLNG, to manage the six LNG tankers. BP is one of the partners in the North West Shelf project in Australia that supplies 3.7 mt LNG a year to Guangdong Dapeng LNG Co. Ltd, China’s first LNG import project, for 25 years beginning May 2006. BP Shipping exited the ship management JV in August 2013 by selling its 40% stake to China’s national oil firm China National Offshore Oil Corp. (CNOOC). Hudong now has an order book for 13 LNG tankers and two more Chinese yards have started constructing LNG carriers. In India, Shipping Corp. of India Ltd (SCI) and GAIL, both state-owned, have a step-in right to take at least 26% and 10% stakes, respectively, in each of the nine LNG carriers. Besides, the local shipbuilder winning the contract to build the three LNG tankers has the option of acquiring another 5-13% stake in each of the three carriers. This means Indian entities can hold as much as a 49% stake in the three locally built LNG tankers to spread financial risks. Unlike China, India has been lucky in getting a global shipyard to
Indian firms to hold stakes in Middle-East oilfields & Gulf companies to invest here: Dharmendra Pradhan
Indian energy firms will hold stakes in oil and gas fields in the Middle-East while companies from the Gulf will invest in oil and gas infrastructure, refineries and petrochemicals at home, as commercial ties with the world’s biggest oil-exporting region evolve into a strategic relationship, Oil Minister Dharmendra Pradhan said. He said the Gulf countries are enthusiastic about strengthening ties with India and have stopped levying the ‘Asian Premium’, a controversial practice of charging a higher rate for crude oil sold to Asia, compared with other buyers in more prosperous regions. “Today we are talking to (Middle East countries) that we don’t just want prices, but on the basis of strategic relationship we should also get equity in exploration and production projects. Their investment if it comes in the oil industry infrastructure, petrochemicals, refinery, downstream, then our country’s consumers and oil companies will develop. There will be more competition. Who will gain? Our consumers,” Pradhan told ET in an interview. “This kind of discussion is going on under the leadership of our prime minister. This is at a very advanced stage in many verticals,” the minister said. He said countries in the Middle East had responded positively to Prime Minister Narendra Modi’s initiatives and given certain assurances. On the domestic front, Pradhan said initiatives to resolve exploration issues along with steps to promote biofuels will reduce India’s import dependence by 10% compared with earlier projections. He said the country would meet its target of 5% ethanol blending in petrol for the first time since the measure was introduced. “The prime minister has given us the target to reduce import dependency by 10%. First we found it challenging, but now we find it achievable.” He said ONGC and Gujarat State Petroleum Corp were holding commercial talks to use common facilities in the KG Basin, the region where the two companies, apart from Reliance Industries, have discovered gas in challenging fields. The minister said his advice is that companies should follow the best practices of oil majors, which share infrastructure to cut costs even if they compete with each other in the market. Pradhan said India’s overhaul of its exploration policy had evoked a positive response globally. He said the International Energy Agency’s director general had written to the government appreciating the policy changes. He said global majors look at the oil price situation before investing, and tend to cut expenditure when prices fall, unlike state firms like ONGC and Saudi Aramco, which have not cut capex. He said the changes in gas price policy for difficult fields will lead to higher production. “These fields will start production in three to four years.” “In challenging fields, ultra-deep water fields, there are three primary stakeholders: ONGC, GSPC and RIL-BP joint venture. All have said publicly that they will increase investment as the price makes it viable. It’s a big statement,” the minister said. He said the government was keen to create an environment that supports investments instead of creating disputes. “We want to take all stakeholders in confidence. Arbitration is a legal right. Arbitration situation shouldn’t come. We want to undertake reforms to ensure that. We don’t want disputes and arbitration, but we’ve got legacy issues. How to sort these out, we are working towards that.” He said the way to resolve such issues was to undertake reforms. Greg Maddux Authentic Jersey
Investment in Oil/Petrochemical Sector
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha that during his visit to Iran on 9th April, 2016, It was conveyed to the Iranian side that the Indian Companies could invest up to $ 20 billion and were interested in setting up petrochemical and fertilizers plants, including in the Chahabar SEZ, either to joint venture between Indian and Iranian public sector companies or with private sector partners. In this regard, he requested Iran to allocate appropriate and adequate land in SEZ. No MoU was signed in this regard. During his visit to Iran on 9th April, 2016, Shri, Pradhan, expressed India’s interest in importing LPG from Iran and said that companies from both sides could discuss on setting up an extraction plant in Chahabar, if required. Both sides agreed to continue examining various means of evacuation of gas such as LNG, including through the proposed Iran-India-Pakistan Pipeline. He also expressed India’s interest in setting up an LNG plant and gas cracker in Chahabar port. He also requested Iranian side for favourable treatment in the pricing of gas for India and also supply of rich gas at competitive price and on long term basis for the life of the joint venture projects that Indian companies are interested in setting up. He said that competitive gas pricing was crucial in making the projects attractive for the prospective investors. Also during his visit to Iran Sh. Pradhan, conveyed that India was committed towards making payments as and when banking channels, acceptable to both sides, were available. Matters relating to oil and gas are discussed at various levels including Joint Working Group, Joint Commission as well as at the level of Ministers. There are regular exchange of delegations to pursue matters of mutual interest. Taylor Lewan Authentic Jersey
India’s April Iran oil imports up 49% from a year ago: Data
India’s oil imports from Iran rose 48.8 percent in April from a year ago as refiners bought more crude after the lifting of sanctions against the OPEC producer, although the purchases were down from a multi-year high hit the previous month. Refiners in the world’s third-largest crude importer took in 393,000 barrels per day (bpd) of Iranian oil in April, the first month of the new contract year, according to preliminary tanker arrival data from trade sources and ship-tracking services on the Thomson Reuters terminal. The April shipments were down 22.4 percent from Iranian volumes in March, when imports from Tehran topped 500,000 bpd to reach the highest level in at least five years. India’s oil imports from Iran are set to surge to a seven-year high in the year that began April 1, industry sources said early last month, with the nation’s state-owned and private refiners together buying at least 400,000 bpd. Part of India’s recent resurgence in Iranian purchases comes from Reliance Industries, operator of the world’s biggest refining complex, which in March took oil from Iran for the first time in six years for its plant in western India. The private refiner, however, did not take any parcel from Tehran in April, accounting for most of the drop from the previous month. Its purchases in March were done under spot deals, although it is looking to sign up for long-term supplies from Iran. Another private refiner, Essar Oil, was the biggest buyer of Iranian oil in April, shipping in about 181,300 bpd, followed by Mangalore Refinery and Petrochemicals Ltd with about 110,200 bpd, and Indian Oil Corp with 101,400 bpd, the shipping and terminal data showed. In the first four month of 2016 India’s Iran oil imports more than doubled to 322,500 bpd, the data showed, in comparison with 160,500 bpd in the same period last year. India’s oil imports from Iran are expected to surge in coming months, when refiners Hindustan Petroleum Corp and Bharat Petroleum Corp begin lifting Iranian oil. State-run HPCL and BPCL have agreed a 20,000 bpd contract each with National Iranian Oil Co, but the two are waiting for further clarity on insurance for plants processing Iranian oil. Trent Williams Jersey
Revised Qatar LNG deal slashes gas price to below $5 per mmBtu
The revision in LNG agreement with Qatar has helped bring down cost of importing natural gas to less than USD 5 per mmBtu from USD 12, Oil Minister Dharmendra Pradhan said. In late-December last year, India got Qatar to agree to slashing gas price by half to match a slump in global energy rates, helping the nation save billions of dollars, as well as get waiver from Rs 120 billion liability for short-lifting of gas. India, which got USD 15 billion of benefits during first 11 years of the term-contract with Qatar beginning 2003 by way of enjoying low gas prices when world energy rates were rising, is currently paying less than USD 5 per million British thermal unit for 7.5 million tons a year of LNG it buys from RasGas of Qatar. “Earlier the prices during 2015 were in excess of USD 12 per mmBtu. The current price applicable under the contract works out to less than USD 5 per mmBtu based on prevailing crude prices,” he said in a written reply to a question in the Lok Sabha. This revision, applicable from January 1, has led to making LNG cheaper for the end consumers, he said. The revised formula will base the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan, with a rider that PLL buys an additional 1 million tons of LNG annually. Further, Petronet LNG Ltd – the firm that imported LNG from RasGas of Qatar – has executed agreement for additional supply of 1 million tons per annum of LNG for about 12 years with effect from January 1, 2016 at the prevailing market prices, he said. Pradhan said Qatar will also not seek Rs 120 billions from PLL for under-lifting LNG from RasGas by 38 per cent. “RasGas and Petronet LNG Ltd agreed to rescheduled the LNG quantity not taken by Petronet LNG Ltd during 2015 to a future period and RasGas has agreed to waive the take or pay liability under the contract for the year 2015,” he said. Petronet, a joint venture of state-owned Indian Oil Corp, GAIL India Ltd, Oil and Natural Gas Corp (ONGC) and Bharat Petroleum Corp Ltd (BPCL), had started importing LNG – natural gas supercooled to liquid state for ease of transportation in ships – from 2004. Jared Crick Jersey
IGL sets up record 72 CNG stations in four months
Indraprastha Gas Ltd, the sole retailer of CNG to automobiles in the national capital, today said it has set up a record 72 CNG filling stations in first four months of 2016, to meet the rising demand for the fuel. The CNG filling facilities have been set up at the retail outlets of oil marketing companies (OMC) like Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) since January 2016, the company said in a statement. “While 51 out of these 72 CNG fuelling facilities are located in NCT of Delhi, 21 are located in NCR towns of Greater Noida and Ghaziabad,” it said. Phil Esposito Authentic Jersey
India keen on setting up LNG terminal at Iranian port
India has expressed interest in setting up an LNG terminal at Chahabar port in Iran to ship back home natural gas from Persian Gulf nation, Oil Minister Dharmendra Pradhan said. India is keen to set up its engagement with hydrocarbon- rich Iran, which has recently come out of western sanctions, and is lining up $20 billion of investment in oil and gas as well as petrochemical and fertiliser projects. Pradhan said he had during his visit to Tehran on April 9 conveyed interest of Indian companies in setting up fertiliser and petrochemical plants, including in the Chahabar SEZ. The projects can be “either in joint venture between Indian and Iranian public sector companies or with private sector partners,” he said in a written reply to a question in Lok Sabha here. He said he asked Iran to allocate land in SEZ for the project but no MoU has so far been sized on this. Also, he expressed India’s interest in importing LPG from Iran and proposed to set up an extraction plant in Chahabar. India is also keen on importing natural gas from Iran either in ships (LNG) or through the proposed Iran-Pakistan-India pipeline, he said. During his visit, he also “expressed India’s interest in setting up an LNG plant and gas cracker in Chahabar port,” the reply said. Pradhan asked Iran for “favourable treatment in the pricing of gas for India and also supply of rich gas at competitive price and on long term basis for the life of the joint venture projects than Indian companies are interested in setting up.” “Competitive gas pricing was crucial in making the projects attractive for the prospective investors,” he said. The Minister also discussed with his Iranian counterpart the repayment of nearly $6.5 billion that Indian refiners owe to Iran as also rights to develop Farzad-B gas field in the Persian Gulf discovered by OVL. “After lifting of sanctions by the international community following the Joint Comprehensive Plan of Action (JCPOA) agreement between P5+1 (China, France, Germany, Russia, UK and the US), the European Union, and Iran, the Central Bank of Iran has requested RBI for bringing the country under ACU mechanism,” he said. After this system is established, all future trade transactions with Iran would be settled through the Asian Clearing Union (ACU), he said. “RBI in turn has sought concurrence from the Department of Economic Affairs for brining Iran under the ACU mechanism. Actual settlement through ACU mechanism hinges on availability of international euro channels for making the payment,” he added. 12th Fan Womens Jersey
Won’t succumb to pressure in resolving oil disputes: Dharmendra Pradhan
Government will not succumb to any pressure in resolving pending arbitration disputes with companies such as Reliance Industries over KG-D6 gas fields, Oil Minister Dharmendra Pradhansaid in Rajya Sabha. “There is no compulsion for the government with any private company. Now, the country’s Prime Minister is Narendra Modiand the rest is assured,” he said during Question Hour. His reply came when BJP member Bhola Singh asked whether there was any pressure or compulsion for the government as there have has been delay in resolving oil field disputes with private petroleum companies, including Reliance Industries. Singh asked the government to take strict decisions in resolving all such disputes with private petroleum companies. Pradhan said the NDA government has inherited some problems from the previous UPA dispensation which had led to delay in resolving the disputes. The Minister said the government has in the recently approved gas pricing policy offered to give higher rates to undeveloped gas discoveries provided they withdraw arbitrations they had initiated. RIL had initiated as many as four arbitrations against the government including one seeking higher gas price for its existing flagging fields in KG-D6 block in Bay of Bengal. Another arbitration pertains to slapping of penalty in the form of disallowance of cost recovery and one for taking away of KG-D6 area upon expiry of contractual timelines, the Minister said. Pradhan said the Directorate General of Hydrocarbon had given various suggestions to improve the dispute resolution mechanism such as encouraging conciliation proceedings, examination by multi disciplinary teams and executive committee of DGH on potential litigations, timely appointment of arbitrators by the government. He said the government has enhanced the powers of DGH for hiring of counsels for defending arbitrations. In the policy for extension of PSCs, for small and medium sized discovered fields, the seat of arbitration during the extended period has been kept in India. Pradhan said arbitrators and counsels are being timely appointed, contractors are being provided a forum in the Ministry for resolving disputes and meetings are being held at various levels to sort out the issues related to gas balancing abandonment obligations etc. “Good International Petroleum Industry Practices have been codified and Guidelines for Site restoration have been prepared to reduce ambiguity on these aspects, thereby reducing the possibility of litigation,” he said. Darian Thompson Womens Jersey