C K Deshmukh appointed CVO in Indian Oil Corporation
IAS officer C K Deshmukh was today appointed as Chief Vigilance Officer (CVO) in Indian Oil Corporation Ltd. Deshmukh, a 1996 batch IAS officer of Madhya Pradesh cadre, has been appointed to the post till May 23, 2017, the date on which she completes combined central deputation tenure of seven years, an order issued by Department of Personnel and Training said. The CVO acts as distant arm of Central Vigilance Commission to check corruption and strengthen anti-graft measures in an organisation.
Top bureaucrats in fray for chairman post in Oil India
Senior IAS officers Anil Kumar Jain and Ravi Kapoor are among the 10 candidates in fray for the top job at Oil India Ltd, the nation’s second biggest state-owned oil and gas explorer. The ten candidates short-listed from nearly 60 applicants have been called for interview by a three member Search-cum- Selection Committee headed by Cabinet Secretary P K Sinha on April 25, sources privy to the information said. Of the short-listed, four are bureaucrats. While Jain is a 1986 Batch IAS officer from Madhya Pradesh cadre who is currently Adviser with NITI Aayog, Kapoor is 1986 batch IAS officer from Assam Meghalya cadre who is currently Joint Secretary in Department of Commerce. Both of them have previously served in the Oil Ministry. 1988-batch Assam Meghalya cadre IAS officer Jishnu Barua, currently Joint Secretary in Department of Personnel & Training has also been called for interview, sources said. From within Oil India, Director (Operations) P K Sharma has been called for interview. OIL Director (Finance) Rupshikha Saikia Borah, who was previously selected for the top job by government headhunter PESB but rejected by the Prime Minister’s Office (PMO), was not considered even though she had applied again. Others in fray include P K Rao, Director (Operations), ONGC Videsh Ltd and Ashutosh Karnatak, Director (Project), GAIL India Ltd. From the private sector, Sunil K Bharti, who previously worked with Cairn India has been called for interview. The government had taken the search committee route after it failed to get a suitable candidate in previous three attempts by the Public Enterprise Selection Board (PESB). PESB in its first round of interview in November 2014 found Borah and five others unsuitable to replace S K Srivastava, who retired on June 30, 2015. It, however, selected Borah when it conducted a second round of interviews in February 2015. This led to Prime Minister’s Office (PMO) asking what had changed between November 2014 and February 2015 that Borah became suitable from unsuitable. Following this, the selections were scrapped and fresh applications called. None of the 12 candidates including Borah were found suitable in the third round of interviews done by PESB in September. After Srivastava retired on June 30, 2015 the Oil Ministry named senior bureaucrat U P Singh as the acting Chairman and Managing Director of OIL. Singh, who is Additional Secretary (Exploration) in the Ministry of Petroleum and Natural Gas, will continue to hold the responsibility till further orders, the sources said. OIL will be the second large public sector unit to have its head selected through a search committee. In February, Gurdeep Singh, Managing Director of Gujarat State Electricity Corp, was appointed as the Chairman and Managing Director of NTPCBSE 1.68 %, the nation’s largest power producer.
Cairn tax dispute: Delhi HC issues notice to I-T department
The Delhi High Court issued a notice today to the Income Tax (IT) Department over Cairn Energy’s tax plea. The IT department has assured the UK-based explorer that the tax demand shall not be enforced till June 30. Cairn Energy has been battling a ‘retrospective tax’ demand of Rs 29,000 crore on capital gains it received in a 2006 restructure of its Indian unit. Sources have learned talks are under way with the government regarding the proposal made by the Finance Minister in the Budget. Cairn Energy has initiated its long-winded arbitration proceedings in Singapore. The Delhi High Court will resume hearing on August 4.
India to boost investment in Iranian oil and gas sectors
India and oil-rich Iran today on Sunday to significantly expand engagement in their overall ties, particularly in boosting Indian investment in joint ventures in oil and gas sectors in the Persian Gulf nation where foreign investors from major economic powers are rushing in to get early footholds after lifting of nuclear sanctions. In talks between external affairs minister Sushma Swaraj and her Iranian counterpart Mohammad Javad Zarif, the two sides agreed that pending agreements such as Preferential Trade Agreement, Double Taxation Avoidance Agreement and Bilateral Investment Treaty should be concluded on a priority basis to spur trade and investment. Enhancing energy cooperation and development of the Chabahar port were the centrepiece of their talks which were mostly dominated by economic issues. “The talks were very successful and would give new energy to our centuries old ties with Iran. In particular, the economic partnership will get considerable fillip as a result of today’s forward looking talks,” ministry of external affairs spokesperson Vikas Swarup told PTI. People familiar with the matter said the issue of Kulbhushan Jadhav was not at all raised by the Iranian side. Jadhav was reportedly arrested in Balochistan after he entered from Iran and was accused by Pakistan of planning “subversive activities” in the country. Both sides discussed the progress on the Chabahar project and agreed that the commercial contract on Chabahar as well as the modalities for extending $150 million credit for Chabahar Port should be signed in the “very near future”. Decisions on this line of credit, as well as $400 million credit line for supply of steel rails from India have already been taken by India. Swarup said both sides discussed the energy partnership and Iran invited greater Indian participation in its oil and gas sector. “Iran said it would be happy to participate in the refinery sector in India.” On the Farzad B oil field project, both sides took note of the constructive discussions held during the recent visit to Iran of oil minister Dharmendra Pradhan. “The Indian side welcomed the Iranian decision to keep the Farzad B field outside the auction basket. The concerned companies have been directed to complete their contractual negotiations in a time bound manner. Iranian side had earlier communicated their gas pricing formula and expressed their desire for Indian investment in the Chabahar SEZ,” he said. “In terms of connectivity, Iran said it supported India’s desire to join the Ashgabat Agreement. The two ministers reviewed the progress made in the International North South Transport Corridor. IRCON from India would be visiting Iran for discussions on the Chabahar–Zahedan Railway link,” said the spokesperson. On trade and investment, the two sides agreed that with the lifting of sanctions, the potential for expanding these ties was immense. “They agreed that pending agreements such as Preferential Trade Agreement, Double Taxation Avoidance Agreement and Bilateral Investment Treaty should be concluded on a priority basis,” said Swarup. Oil minister Dharmendra Pradhan had paid a two-day visit to Tehran from 9 April during which he discussed a range of issues relating to stepping up of engagement in oil and gas sectors. The two sides also reviewed the implementation of the Chabahar port project in which India is a key partner. Swaraj and Zarif also reviewed implementation of the decisions taken by the two countries during the last joint commission meeting in December. The two ministers also deliberated on situation in Afghanistan and in Syria besides other regional issues. New Delhi is looking to increase engagement with the sanction-free Iran by raising oil imports and possible shipments of natural gas. It also wants rights to develop Farzad B gas field in the Persian Gulf discovered by ONGC Videsh Ltd (OVL). People familiar with the matter, however, said a deal for the field was not signed during Pradhan’s visit as Iranian Parliament, Majlis, is yet to approve the new Iran Petroleum Contract (IPC) under which the Farzad B field is to be given to the OVL-led consortium. Indian firms have so far shied away from investing in Iran for the fear of being sanctioned by the US and Europe. The same was deterring New Delhi from claiming rights to invest nearly $7 billion in the biggest gas discovery ever made by an Indian firm abroad. But after the lifting of sanctions, India is making a renewed pitch for rights to develop 12.8 trillion cubic feet of gas reserves OVL had found in 2008. Pradhan also conveyed to the Iranian side that both countries must expand the basket of oil and gas trade. He had expressed India’s interest in importing liquified petroleum gas (LPG) from Iran and said companies from both sides could discuss setting up an extraction plant in Chabahar, if required.
Kuwait oil workers begin open-ended strike
Thousands of oil workers in Kuwait began an open-ended strike on Sunday to protest against a government proposal to cut their wages, the head of their union said. The strike, which could slash production if prolonged, comes as world oil producers gather in Qatar to negotiate an output freeze to boost prices. “Thousands of workers began their strike,” the oil workers union chief Saif al-Qahtani told AFP, adding that production was partially halted without clarifying which sites had been affected. “Observed since 7:00 am (0300 GMT), this open-ended strike will continue until the workers’ demands are met,” Qahtani said. On Saturday, the union turned down an appeal from Kuwait’s acting oil minister, Anas al-Saleh, to call off the strike. Hit by the sharp drop in crude prices on world markets, Kuwait is introducing a new payroll scheme for all public employees and wants to include the country’s 20,000 oil workers, which would mean an automatic cut in wages and incentives. As the strike began, Kuwait Petroleum Corp spokesman Sheikh Talal Khaled al-Sabah said that the national oil conglomerate had activated an “emergency plan” to ensure that local and international markets were not affected by the walkout. “Export operations are going ahead as planned and (KPC) is capable of responding to major international market demands, based on agreements with clients,” he said in a statement published on the KUNA news site. The plan ensures that all petrol stations will continue to be supplied as well as Kuwait’s international airport and companies operating at the facility, he said. He urged Kuwaitis “not to listen to rumours that the strike has affected the needs of the local market,” adding that Kuwait’s “reserves of gasoline and petrol derivatives is enough to meet the country’s demands for 25 days and strategic reserves could suffice for 31 more days.” KPC is currently operating three refineries producing 520,000 barrels per day, in contrast to 930,000 before the strike, CEO Mohammad al-Mutairi said in a statement. KPC had offered to suspend all spending cuts if the union agreed to join a committee to negotiate a settlement. But the conglomerate said workers boycotted negotiations called for Thursday by the social affairs and labour ministry. The union is also protesting plans to privatise parts of the oil sector. Kuwait, OPEC’s fourth largest producer, pumps three million barrels per day.
Why India is about to pass Japan as Asia’s No 2 oil consumer
The old adverts for Exxon fuel used to say, “Put a tiger in your tank”. Indian motorists are doing just that. And soaring energy needs make this nation of almost 1.3 billion people the bright spot for global demand. Growth in global oil consumption is set to slow down this year: from a gain of 1.8 million barrels per day last year, to 1.2 million bpd this year, according to the International Energy Agency. This is driven by lower industrial use and mild winters in China, the US and Europe. Over the past decade, Indian oil demand growth, though significant, was far behind China’s. Slower expansion of manufacturing and creaking infrastructure, as well as lower income per person, held it back. But now a number of factors are driving a surge in Indian oil use. Its economy and population are growing faster than China’s, and it is pushing for more manufacturing under the “Make in India” initiative, and greater coal production (requiring diesel for haulage). In welcome news to those who have bumped along stretches of gravel masquerading as highways in Rajasthan or Uttar Pradesh, Narendra Modi’s government is building 30 kilometres of road per day. Only 20 Indians in a thousand have a four-wheeled vehicle, compared to 90 Chinese and 800 Americans. But now lower oil prices and rising incomes are making motoring more affordable: Maruti Suzuki and Hyundai had their best ever sales in India in the fiscal year to March. Air travel is booming, with passengers up 23 per cent on this time last year. Special factors include low rainfall, requiring more diesel to drive pumps for groundwater, although a strong monsoon is forecast for this year. Liquefied petroleum gas (LPG) demand is rising as the government encourages its use in rural households for cooking and lighting. Naphtha, a light oil, is going into new petrochemical plants. India is likely soon to overtake Japan as Asia’s second-largest oil consumer, and the world’s third largest (after the US and China). Demand growth of 0.3 million barrels per day this year would be a quarter of the global total, and about the same as the gain in China. Not surprisingly, at a time of low oil prices, the Indian market looks increasingly important to exporters. Given its geographic proximity, more than half of India’s 4 million barrels per day of oil imports come from the big Middle Eastern producers: Saudi Arabia, Iraq, the UAE, Kuwait and Iran. Saudi Aramco is opening an office in New Delhi to help with crude sales, and Adnoc has agreed to keep oil in the strategic storage facility at Mangalore. After talks with Saudi Aramco, Mumbai-based Essar Group now seems set to sell a $5.5 billion stake in its refining business to Russia’s Rosneft. Indian oil imports from Iran have tripled since January. Meanwhile, after a long period of stasis, Indian oil companies appear to be looking abroad again, with ONGC, Indian Oil, Oil India and Bharat Petroleum paying some $4.2 billion in total for stakes in Rosneft’s East Siberian fields. An Indian consortium is now bidding for some of the remaining 22 per cent available in the Adco onshore concession in Abu Dhabi, potentially joining Total, Japanese and South Korean partners in a major realignment of the emirate’s energy relations. As anyone driving through Delhi or Bangalore at rush hour, or braving the capital’s murky skies, can attest, to continue its rapid growth, India will have to continue the current breakneck pace of road-building and introduce cleaner fuels. And India has been through several phases of reform and hiatus since 1990. Another slowdown may yet reduce demand growth, unlike China’s remorseless rise from the early 1990s. But the Mumbai motorist is emerging as one of the key factors of the global oil market, and a rare source of optimism for producers.
OIL running without full-time CMD for a year
‘Navaratna’ company Oil India Limited (OIL) is functioning without a full-time chairman and managing director (CMD) since July 1 last year. The post is being temporarily held by a Petroleum Ministry bureaucrat of the Odisha cadre, UK Singh. This lack of a full-time company head has not done any good to enhance OIL’s production figures, alleged company insiders, adding that the procrastination in appointing an OIL CMD has done much damage to the company’s image globally. Public sector top management personnel recruiter Public Enterprises Selection Board (PESB) has so far held two interviews to select an OIL CMD. On the first occasion, the company’s director (finance), Rupshikha Saikia Borah was selected, but her appointment was rejected by the Prime Minister’s Office, without citing specifics. On the second occasion, the PESB, after interviewing a dozen applicants, decided that “more applicants need to be interviewed”. Early this year, the Government of India constituted a “search committee” to select an OIL CMD, with three members: PMO principal secretary Nripendra Mishra, oil industry veteran Bikash Chandra Borah and MoPNG secretary, KD Tripathy (he is a 1980 batch IAS of the Assam Meghalaya cadre). A highly qualified professional, Northeast India’s first woman chartered accountant, Fulbright scholar, Rupshikha Saikia Borah, is also an alumnus of the Delhi School of Economics. She, despite her credentials, now appears to have lost an opportunity to be OIL’s first woman chief. The search committee has invited 15 persons for a viva voce on April 25 this year in New Delhi. This list does not have Rupshikha Saikia Borah’s name. This search committee has received about 60 applications for the OIL CMD post, including that of Saikia Borah, according to highly placed industry sources. A large number of IAS officers also applied, as a vital precondition was relaxed for this one instance. The waived condition was that IAS officers have to resign from civil service if they apply for a PSU (public sector undertaking) post. To sugar-coat this waiver, the IAS lobby also facilitated mid-term repatriation from OIL to their parent cadre, as if in a deputation post. This seemingly unfair term in favour of the IAS is being frowned upon in the petroleum industry, as IAS officers have not been vested with profitability and proficiency responsibilities, but an easy exit route, in case matters get too hot in the volatile oil industry. Sources said that the MoPNG search committee has shortlisted 15 candidates for the interview in New Delhi to select the next OIL CMD. These 15 include three IAS officials, who have almost nothing to do with the petroleum industry: Ravi Kapoor, Jishnu Baruah and Anil Kumar Jain. However, Jain, a Planning Commission/Niti Ayog mandarin, has to his credit a book on natural gas. Others in the list include petroleum sector veterans like Pramod Kumar Sharma, Rahul Dasgupta, Utpal Borah, PK Rao, Dr Ashutosh Karnataka, Saumendra Kumar Baruah, Dr Sunil Y Bharati and Bedanta Sarmah. Curiously enough, the lone accounts specialist in the list is Robin Deka, an IRAS officer of the Railways. NEEPCO director SB Buragohain’s name also features in the list.
GAIL to use drones to secure gas pipelines
Gail India, the country’s biggest gas transporter, will deploydrones on pilot basis on its main trunk pipeline as part of higher safety measures it is implementing to secure its vast network. In the aftermath of the June 2014 accident at its pipeline in Andhra Pradesh that killed at least 18 people, the state-owned firm has taken a number of initiatives to raise safety standards including replacing old pipelines and using advanced technology. “We plan to use drones on a pilot basis on a 200-km stretch of the HBJ pipeline in the Chambal Ravines in Madhya Pradesh,” GAIL Director (Projects) Ashutosh Karnatak told PTI. The company has already tendered for drones and the response has been encouraging. “We hope to award the tender in a months time,” he said. The drones will be used to patrol the pipeline to detect physical abnormal activity like encroachment or intrusion on the pipeline. GAIL India has also started using satellite surveillance to monitor its 13,000-km of gas pipeline network. A government probe into the June 2014 accident had highlighted safety lapses at the firm and prompted sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) to slap a penalty. Karnatak said drones will be used to detect encroachments around pipelines as they are a big safety hazard. In the pilot, a drone will fly over the pipeline, capturing pictures and other data using smart technology. The data will be analysed to detect any potential hazard. “We estimate a drone may cost Rs 25 million or so,” he said adding the company is experimenting if technology can replace patrolling. If successful, drones will be used on other key pipelines. GAIL, at present, uses foot patrolling to spot encroachments and seeks local administration’s help in getting them cleared. Drones will however not be able to detect any leakage, for which the company will continue to reply on sensors and patrolling, he said. “We started using live satellite monitoring of the pipelines this year and we are now integrating advance Unmanned Ariel Vehicle (UAV) with this system,” he said. Pipeline securities is a major issue across the world and with recent progress in satellite sensing technology, availability of new high resolution satellites and object oriented image analysis, there is a possibility to introduce space technology for pipeline monitoring applications. GAIL did pilot project on satellite monitoring on its 610 km Dahej-Vijaipur pipeline.
Saudi, India discuss oil market situation, boost cooperation: Report
Saudi Arabia’s deputy oil minister Prince Abdulaziz Bin Salman discussed the situation in oil markets and further cooperation with India’s Oil Minister Dharmendra Pradhan on Thursday, Saudi state news agency reported. The report did not give details but said the talks included “the evident role of the kingdom (in achieving) stability of the oil markets.” The two officials also discussed cooperation between the two countries in energy as well as boosting India’s purchases of crude oil and oil products, and joint investments. Saudi Arabia was the biggest oil supplier to India in February. India is one of the countries in which state oil giant Saudi Aramco is looking at in terms of downstream investments. The two officials also discussed cooperation between the two countries in energy as well as boosting India’s purchases of crude oil and oil products, and joint investments. Saudi Arabia was the biggest oil supplier to India in February. India is one of the countries in which state oil giant Saudi Aramco is looking at in terms of downstream investments. On Thursday, The International Energy Agency (IEA) said India could replace China as the main engine of global demand growth, estimating its demand growth at 300,000 bpd – the strongest ever volume increase. Leading oil producers including Saudi Arabia plan to meet in Doha on Sunday to cement a preliminary deal reached between Russia, Venezuela, Qatar and Saudi Arabia in February to freeze oil output at January levels to curb a glut in the oil market. Jim Brown Authentic Jersey
Dumping duty imposed on normal butanol from EU, US, Singapore, Malaysia, S Africa
The Finance Ministry has imposed definitive anti-dumping duty on normal butanol imports from the EU, US, Singapore, Malaysia and South Africa. Normal butanol is a primary alcohol that is a clear neutral liquid with a characteristic odour. A large part of N-Butanol is converted into derivatives for use as solvents in coating industries and printing inks. It also finds application as an extractant in production of drugs and natural substances, additives in polishes and cleaners and stabilisers in the textile industry. Andhra Petrochemicals had filed the petition seeking an anti-dumping probe on normal butanol imports from the US, the European Union, Singapore, Malaysia and South Africa. The anti-dumping duty, which will last for five years, ranged from ‘nil’ to $149.31 per ton depending on the producer and country of export (among the EU, US, Singapore, Malaysia and South Africa).