Calculations made by the IEA show that today's LNG prices in Asia are way below the cost at which GAIL will be acquiring its committed LNG cargoes from the US.
8At the current price, the data shows that while the upstream and liquefaction cost are covered for cargoes that could come to..http://goo.gl/WNluOb
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The government is pushing hard with its Made in India campaign in the petroleum sector.
8A draft policy paper calls for a 10% price preference to companies that can meet stipulated local content (LC) requirements in different segments of the industry.
8The idea seems to be to push foreign companies to to go for local sourcing to the point that they can take advantage of the price preference clause.
8Local content is defined as added value brought to India for supply of equipment and services in the..http://goo.gl/WNluOb
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Going local: Self certification will do
Going local: Is it going to fast?
LNG-based power is not economically viable in India as the price of power is far too high. But will, what does not work for India, work for Bangladesh?
8The Anil Ambani Group is planning to push the turbines bought for the doomed Samalkot project in Andhra Pradesh to Bangladesh for a..http://goo.gl/WNluOb
A battle of wits is on between the PNGRB on one hand and BPCL and the petroleum ministry on the other over the regulator's insistence on bestowing a common carrier status on 22% spare capacity in the Cochin Coimbatore Karur petroleum product pipeline.
8While PNGRB is bent on declaring it a common carrier, HPCL has argued that the pipeline is meant to evacuate additional production from the Kochi refinery, which is expanding its capacity from 9.5 to 15.5 MMTPA..http://goo.gl/WNluOb
To keep up with the operational needs of Mumbai Port, the Port has identified the need for construction of an additional Oil Berth.
8The estimated project cost for the construction of an oil jetty came out to be..http://goo.gl/WNluOb
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In these depressed times, there is one E&P company which still believes that the going is good. And that is HOEC.
8Profit before tax has moved into the positive territory, growing 10 times, albeit on a very small base between Q2 and Q3 2015-16.
8The company boasts a debt free balance sheet where..http://goo.gl/WNluOb
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Looking ahead: High netbacks from marginal fields
RIL's E&P business has posted an operating profit of Rs 90 crore in the third quarter of 2015-16 on revenues of a mere Rs 1,765 crore in comparison to a PBIT of Rs 242 crore on revenues of Rs 2,841 crore in the previous.
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The market for shipping of crude continues to witnessed looses last as carriers focus on adjusting to 2016 WS flat rates and 12-year low crude prices.
8Meanwhile orders for new carriers continue to be bouyant given that new building prices remained attractive and the prospects continue to appear bright.
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A slew of new business development opportunities will emerge out of the government's order advancing the implementation of BS-V & VI fuel emission norms to 2019-20.
8MRPL seems to be first off the block with a study on what needs to be done to make its newly revamped 15 MMTPA refinery conform to the new norms.
8What MRPL wants to do is to look at the upgradation of the treatment facilities for MS & HSD to ensure compliance..http://goo.gl/WNluOb
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GAIL continues to pursue its case for exemption of service tax on on transportation of natural gas where the seller of the gas sells as well as transports the gas till the point of delivery of the buyer and where the ownership of gas is simultaneously transferred.
8GAIL has argued that the manner of raising the sale bill (whether transportation charges or any other component are embedded in the price of gas or shown separately) does not alter the basic nature of such a contract which remains essentially a "contract for sale".
8The argument made by GAIL..http://goo.gl/WNluOb
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There has been a lot of brouhaha over the discovery of massive reserves of gas hydrates off the Indian coast.
8A preliminary estimate puts the quantum at a massive 933 TCF.
8But are these reserves likely to be tapped anytime soon?
8The answer is "no", for the technology is still at a nascent state and with current level of expertise, the cost of getting gas hydrates out will be very expensive indeed.
8Nevertheless, the consensus is that when commercial use happens, it will be as much of a disruption as shale oil and gas has been.
8Gas hydrates represent an enormous recoverable resource at least of the order of shale gas.
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With oil prices plummeting, the Indian E&P industry has stepped up its demand for a better playing field from the government.
Clarification sought on what constitutes "mineral oil"
8The industry continues to seek clarification over the definition of mineral oil, and even though this has been clarified, E&P operators are still looking for a elaboration of the term "mineral oil" under various statutes of the government.
8The NELP NIO (prior to NELP VIII) do provide for a seven year tax holiday for both crude and gas. What is more CBM NIOs do provide for a seven year holiday even though CBM is nothign but gas.
8But in the recent past the subject matter is under different interpretation and this is reportedly in deviation from the correct legal and intended positon.
8So a clarification is again being sought on whether the term "mineral oil" includes petroleum and natural gas from..http://goo.gl/WNluOb
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RIL's rejection of the decision by the government to that a one-member Justice AP Shah Committee should decide on the D&M report shows the Mukesh Ambani led company as unafraid to take on the government when its interests are at stake.
8Narender Modi runs a majoritarian regime that usually does not take rejections of its decisions too kindly.
8But Ambani is a seasoned businessman and a doughty figure, traits that he has inherited from his father, when it comes to defending his own interest.
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On a day when the price of oil has come below the $30/bbl mark and gas prices are on the slide, ONGC has announced the award of a Rs 2450 contract for the sub-sea development work for the Vashishta and S1 deepwater gas fields situated off the East Coast of India to a combine of L&T and McDermott.
8At these prices, a deepwater gas development will most possibly provide a negative return but ONGC has gone ahead with the award because it has already contracted some parts of the work -- including the building of the Odalarevu onshore terminal -- to other contractors.
8Sources were tightlipped about the cost economics of the project but the possibility is that they are in negative territory.
8An earlier estimate by ONGC had projected a IRR of around 17.5% and an NPV of Rs 500 crore at a discount factor of 14% per annum on a gas price of..http://goo.gl/WNluOb
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ONGC plans to drill one more exploratory well-- dubbed as PADAL-- in the Panidihing PML area in district Sivasagar,Assam.
8This area is a prolific oil and gas producer from the Pre-Barail Tura and Sylhet formations.
8In the Panidihing area, ONGC has a PML grant for a 20.65 square kilometer area with validity upto May, .2024.
8The exploratory well has been planned to be drilled with the objective of exploring further the Pre-Barail Tura and Sylhet formations and basement.
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Prime Minister Narendra Modi and petroleum minister Dharmendra Pradhan along with PLL MD Prabhat Singh have pulled off a coup by coaxing Qatar the cut the price of 7.5 MMTPA of long term LNG contract after protracted negotiations.
8The deal will see the price of LNG drop by $5/mmbtu from $12.5/mmbtu in December, 2015. The price will be around $7.5/mmbtu or less in India. This was done by changing the price formula from five-year average of crude oil prices to a three-month average, and the waiving of the penalty for LNG not taken which could have been as much as $1 billion.
8The deal has send the global LNG market into a tizzy.
8Prabhat Singh is an experienced hand in this game and he seems to have been fully backed by Pradhan to push the Qataris into a corner and force them to come up with a concession.
8There was seamless coordination between Singh, Pradhan and Modi, all of whom worked in concert to land India a good deal.
8Negotiations were done skillfully by the Indian side - Singh had 22 meetings to arrive at..http://goo.gl/WNluOb
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