Mumbai: Cairn India Ltd (Cairn India), the oil and gas unit of Sesa Sterlite Ltd, has initiated a polymer injection programme in the Mangala field in its Barmer oil and gas block in Rajasthan, said a company note released on Friday evening.
This will help to arrest the falling output from the field and help the company in enhancing the oil recovery from the field.
The Mangala field is a part of the three main important fields, the other two being Bhagyam and Aishwariya, of Cairn India in the Barmer basin and together they currently produce close to 180,000 barrels per day (bpd) of crude oil.
The polymer injection programme is part of the $1.3 bn investment that the company has earmarked to invest in enhancing the oil recovery from the Mangala field in the next three years till fiscal 2017.
According to the company’s second quarter presentation, the company is investing up to $3 bn over the next three years to enhance recovery from the Mangala, Bhagyam and Aishwariya fields, development of a new hydrocarbon reserve called Barmer Hill and development of gas reserves in the Raageshwari field.
“Mangala Enhanced Oil Recovery (EOR) project, which is amongst the largest polymer flood EOR programmes in the world, commences well ahead of the guidance provided by the company. The polymer injection activity would gradually be ramped up,” the company said in the statement.
It further said Cairn India had recognized the potential for chemical EOR at an early stage of development in its Mangala, Bhagyam and Aishwariya (MBA) fields. The reservoir quality, oil properties and ambient temperature make these fields ideal for the application of chemical flooding EOR methods such as polymer or alkaline surfactant polymer (ASP) flooding. The chemical EOR programme has a potential to enhance recoveries from the Mangala, Bhagyam and Aishwariya fields by around 300 million barrels.
Sudhir Mathur, chief financial officer, Cairn India, said: “Injecting the polymer at our world-class polymer flood EOR project, ahead of schedule is a testament to our execution skills and team work. This will enable us to further unlock the potential of the prolific Rajasthan block and help contribute significantly towards the nation’s energy security.”
(Source: Mint November 1, 2014)
GAS PRICE HIKE A POSITIVE STEP: BP
NEW DELHI: BP plc, Europe’s third-biggest oil company, has said that the 33 per cent increase in natural gas price is a positive step towards creating an economic landscape that helps in development of gas resources.
BP wrote off $770 million from its investment in the eastern offshore KG-D6 block of Reliance Industries, citing “uncertainty” over benefits flowing from the government’s gas pricing policy.
The government earlier this month approved a new pricing formula that would provide a gas tariff of $5.61 per million British thermal unit from November 1 as against USD 4.2 currently. This hike was lower than $8.4 approved by the previous UPA government.
“This increases the gas price applicable for existing production and is a positive first step towards creating the more competitive economic landscape required to encourage the development of India’s gas resources,” BP Chief Financial Officer Brian Gilvary said at an investor call after third quarter earnings.
In the earnings statement on Tuesday, BP wrote off $770 million saying “the charge arises as a result of uncertainty in the future long-term gas price outlook, following the introduction of a new formula for Indian gas prices, although we do see the commencement of a transition to market-based pricing as a step in the right direction.”
In the investor call, Gilvary said the government announced a new domestic gas price formula as part of a package of oil and gas sector reforms.
“We expect further clarity on the new pricing policy and the premiums for future developments to emerge in due course,” he said.
BP in 2011 bought 30 per cent interest in RIL’s eastern offshore KG-D6 as well as 20 other oil and gas exploration blocks for $7.2 billion. Bulk of this was for the producing block of KG-D6 and gas discovery area of NEC-25.
A BP India spokesperson had on October 28 stated that, “the gas price decision increases the gas price applicable for existing production and is a first step towards creating the more competitive economic landscape required to encourage the development of India’s gas resources.”
“The timing of this gas price decision just prior to our Q3 stock exchange announcement and the requirement to understand the long term price-outlook to support future developments has led to the write down. This is in compliance with standard accounting policies and Securities Exchange requirements,” the spokesperson said.
Both BP and RIL have been advocating market-linked gas pricing and had initiated an arbitration against the government for not revising rates from the due date of April 1, 2014.
The $4.2 per mmBtu rate, fixed in 2007, was for the first five years of production from KG-D6 fields. KG-D6 fields started gas output from April 1, 2009.
(Source: Economic Times November 1, 2014)
GAIL TENDER: INDIAN YARDS GET MORE TIME TO FINALIZE TECH TIE-UP FOR LNG CARRIERS
Bangalore: GAIL (India) Ltd has given fleet owners another month to submit bids for hiring nine new liquefied natural gas (LNG) carriers to ship the cargo from the US.
This is an attempt to allow local shipyards, where three of the LNG tankers are to be built, more time to tie up with global experts in the business. Each of the carriers will cost over $200 million.
A technological tie-up has eluded local shipbuilders. The original timeline for placing techno-commercial bids ended on 30 October.
The state-run natural gas firm has now set a deadline of 4 December for the bids, the company said on its website.
If the deadline hadn’t been extended, local yards would have failed to qualify for constructing the carriers as part of a government-backed plan to help them get started in the niche business dominated by Korean and Japanese yards.
Shipbuilders in these two countries are unwilling to share technology with Indian yards, putting in peril India’s decision to build the three tankers locally as part of Prime Minister Narendra Modi’s Make in India campaign.
GAIL has made some small changes to the tender, but this won’t help more global yards with LNG technology to participate.
“India needs to seek out yards outside Korea and Japan who can be candidates for technology, but for that GAIL has to relax the criteria for qualification of yards,” said a person who tracks the LNG ship-building sector and spoke on condition of anonymity.
“What is there to relax,” asked a person directly involved with the GAIL tender, but not an employee of the company. “The tender is for chartering (hiring) LNG carriers and not barges which has to last for 35 years. GAIL has a take or pay agreement with LNG suppliers in the United States and, hence, cannot afford to take chances with the quality of the ships,” the person said, asking not to be named because he is not authorized to speak to the media.
GAIL will not order the nine ships directly. It plans to time-charter or hire the carriers for 20 years starting September 2017 from fleet owners who will have to construct three of the nine ships in India, according to the 1 August tender issued by GAIL. The price of the ship is crucial for ship owners because it is a big factor in calculating the daily hire rates, which in turn, is one of the criteria for deciding the contract.
Local shipbuilders who have the infrastructure to build these sophisticated tankers have started lobbying with the government for support to get technology from overseas yards, a spokesman for the Shipyards Association of India, a lobby group, said.
(Source: Mint November 1, 2014)
GAIL PROFIT RISES 42%
New Delhi: GAIL (India) Ltd reported a 42 per cent increase in net profit for the second quarter ended September 30 on the back of improved performance of its liquid hydrocarbon business.
Net profit stood at Rs. 1,303 crore against Rs. 916 crore a year ago.
During the quarter, the company’s net sales increased by about 1 per cent to Rs. 14,130 crore, from Rs. 14,002 crore a year earlier.
Net sales from the petrochemical business stood at Rs. 1,281.41 crore.
On Friday, GAIL’s shares closed 3.83 per cent higher at Rs. 529.15 on the BSE.
(Source: Business Line November 1, 2014)
BHOPAL GAS VICTIMS DISAPPOINTED AS ANDERSON COULD NOT BE TRIED
Bhopal: Five organisations working for the survivors of the December 1984 Union Carbide disaster in Bhopal held a ‘condemnation meeting’ on Friday in response to the news of the death of Warren Anderson, the former chairman of the US multinational firm and the prime accused in the case.
Many survivors from the worst-affected communities, who lost their family members to the disaster, assembled outside Union Carbide’s abandoned factory here on Friday to spit on an enlarged photograph of the deceased executive.
“There is enough evidence to establish that Anderson was directly involved in the decision making and oversight concerning the design, operation and maintenance of the Bhopal factory and he was fully aware of the hazards the factory posed to the lives and health of the residents of the city. He is also guilty of approving the faulty waste management system used in the Bhopal factory that is responsible for the ongoing contamination of soil and groundwater,” said Satinath Sarangi of the Bhopal Group for Information and Action. “Hopefully, Anderson’s life in hiding and his ignominious death would be a lesson for all corporate criminals,” he added.
According to the protesters, besides the US government’s overt and covert efforts in protecting its citizen, there was ‘deliberate negligence’ on the part of the Indian government in bringing Anderson to book.
Balkrishna Namdeo of the Bhopal Gas Peedit Nirashrit Pensionbhogee Sangharsh Morcha blamed the successive governments at the Centre for the negligence in extraditing Anderson from the US. “The government took 11 years to send its first request for extradition of Anderson and then did nothing when the US rejected that request on specious grounds. A second request still remains pending with the US State and Justice Departments and there has been no attempt by the Indian government to expedite matters in the past three years,” he said.
According to Rashida Bee, president of the Bhopal Gas Peedit Mahila Stationery Karmchari Sangh, Anderson’s was a fit case for life-time imprisonment. “He faced grave criminal charges of homicide, grievous assault and killing and poisoning of animals and, if convicted, would have spent a lifetime in jail. Yet, this man who killed more than 25,000 people and poisoned over half-a-million never spent a day in jail because the US government protected him to his dying day.”
Nawab Khan, president of the Bhopal Gas Peedit Mahila Purush Sangharsh Morcha, Union Carbide and Dow Chemical’s criminal, civil and environmental liabilities for the ongoing disasters remain unchanged with Anderson’s death.
“Dow Chemical has been summoned by the Bhopal District Court to explain by November 12 why it is not making Union Carbide appear in the criminal case. We will pressure the Indian government to now seek extradition of John Macdonald, Union Carbide’s secretary.” he said.
(Source: Business Standard November 1, 2014)
IOC RETAIL OUTLETS TO BE AUTOMATED
Kochi: Indian Oil Corporation’s (IOC) retail outlets in the city stand fully automated from Friday.
Makarand Nene, Director (Marketing), IOC, made the declaration at the inauguration of automation at a retail outlet at Palarivattom.
Kochi is the second city after Thiruvananthapuram to be declared as fully automated.
IOC has 20 retail outlets in Kochi City, which are being fully automated bringing in innumerable benefits to customers, dealers and the company.
Automation would assure customers regarding quality and quantity through transparent and quick service facilitating quick redressal of customer complaints.
(Source: Hindu November 1, 2014)
PETROL, DIESEL CHEAPER BY ABOUT Rs. 2/LITRE
New Delhi: For the second time in two-weeks, the public sector oil marketing companies have cut the retail selling prices of diesel.
The companies have cut diesel as well as petrol prices by about Rs. 2 a litre effective midnight October 31/November 1.
Diesel pricing was deregulated on October 18, when the Government had brought down the retail prices by about Rs. 3 a litre.
In a statement issued here on Friday, Indian Oil Corporation said that retail selling price of petrol and diesel (inclusive of taxes) in Delhi have been cut by Rs. 2.41 a litre and Rs. 2.25 a litre respectively.
The decrease will vary from State to State depending on local levies and taxes.
From October 31/November 1 midnight, diesel will be sold at Rs. 53.35 a litre in Delhi and petrol will be sold at Rs. 64.24 a litre. In Mumbai, diesel will now be sold at Rs. 61.04 a litre and petrol at Rs. 71.91 a litre.
In Chennai retail diesel prices after the drop will be Rs. 56.84 a litre and petrol will be Rs. 67.01 a litre and in Kolkata, diesel will be Rs. 57.95 a litre and petrol will be Rs. 71.68 a litre.
Meanwhile, Mahanagar Gas Ltd today hiked CNG prices by Rs. 4.50 to Rs. 43.45/kg and domestic piped natural gas (PNG) by Rs. 2.49 to Rs. 26.58/SCM, in Mumbai effective from midnight today following the 33 per cent hike effected by the Centre.
Earlier this month, the Centre had increased domestic natural gas price by 33 per cent from $4.20/ mmbtu to $5.61/mmbtu from November 1.
But Indraprastha Gas Ltd (IGL), the city gas distributor for CNG and PNG in the National Capital Region of Delhi said on Friday that it will not increase prices. “Despite the revision in domestic gas prices announced by the Government with effect from November 1, IGL has decided not to revise the retail price of CNG and domestic PNG in the interest of its consumers in Delhi, Noida, Greater Noida and Ghaziabad,” said Narendra Kumar, Managing Director of IGL.
(Source: Business Line November 1, 2014)
IGL DECIDES NOT TO REVISE RETAIL PRICE OF CNG, PNG
NEW DELHI: Indraprastha Gas Ltd, the sole retailer of CNG in Delhi, today said it is not revising rates despite input cost going up.
“Inspite of revision in domestic gas prices announced by the government with effect from 1st November 2014, IGL has decided not to revise the retail price of CNG and domestic PNG in the interest of its consumers in Delhi, Noida, Greater Noida and Ghaziabad,” said IGL Managing Director Narendra Kumar said.
Meanwhile in Mumbai, city gas distributor Mahanagar Gas Ltd today hiked CNG prices by Rs 4.50 to 43.45/kg and domestic piped natural gas (PNG) by Rs 2.49 to Rs 26.58/SCM, effective midnight today following the 33 per cent hike effected by the Centre.
Earlier this month, the Centre had finally increased domestic natural gas price by 33 per cent from $4.20/ MMBTU to $5.61/MMBTU from November 1.
(Source: Economic Times November 1, 2014)
BRENT CRUDE OIL FALLS TO $85 ON STRONG DOLLAR, OVERSUPPLY
London: Brent crude oil fell by more than a dollar to around $85 a barrel on Friday as a firmer dollar and a well supplied oil market pushed the benchmark towards its steepest monthly decline since 2012.
The dollar rose to its highest level since June 2010 on Thursday after data showed the US economy grew 3.5% in the third quarter, topping estimates for a 3% rise.
“It has not been a good month for commodity indices,” Olivier Jakob of Petromatrix told the Reuters Global Oil Forum, noting that gold as well as oil was under pressure from the dollar surge.
A strong dollar makes commodities such as oil more expensive for buyers using other currencies, suppressing demand.
Brent for December was down $1.20 at $85.03 a barrel by 1440 GMT. The oil benchmark has fallen more than 10% so far in October, its biggest monthly drop since May 2012.
US crude was down 90 cents at $80.22 per barrel, having lost 12% this month, also its worst performance since May 2012.
The Bank of Japan surprised financial markets on Friday by expanding its stimulus spending, boosting Japanese equities but raising concerns about the economic health of the oil importer.
The decision also put pressure on the yen, contributing to the strength of the dollar which rose to a near seven-year peak of ¥112.15.
China’s manufacturing sector is stable but faces relatively big downward pressure on growth, the ministry of industry and information technology said on Friday.
In contrast to slowing demand, global supply has increased, and the Organization of the Petroleum Exporting Countries (Opec) has given no indication that it will cut output targets at a meeting on 27 November.
Hans van Cleef, senior energy economist at ABN AMRO in Amsterdam, told the Reuters Global Oil Forum that there would be “tough discussions” at the Opec meeting but that the output quota was likely to remain unchanged at 30 million barrels a day.
Opec secretary general Abdullah al-Badri said on Wednesday the cartel’s output was unlikely to change in 2015 and that he was not concerned about falling prices.
“Opec will be happy to see prices languish in a lower range in order to regain market share against US producers, whose costs are higher,” said Tony Machacek, a broker at Jefferies in London.
(Source: Mint November 1, 2014)
