Pradhan hits back at Jairam Ramesh, reminds him of Imperial Energy fiasco

Oil minister Dharmendra Pradhan has raked up an eight-year-old deal in which Oil and Natural Gas Corporation (ONGC) acquired Imperial Energy in Russia for $2 billion to counter criticism by Congress leader Jairam Ramesh of a recent agreement by ONGC to buy GSPC’s gas field in the KG Basin.

The Imperial Energy deal, struck during the previous Congress-led government, has turned out to be a dud, inviting criticism from the national auditor.

“Jairam Ramesh should tell us which benchmark was used to purchase Imperial Energy. What Internal rate of return (Imperial) is giving?” Pradhan said Read more

Asian oil refinery margins jump on outages in Mideast, Asia

Several refineries in the Middle East and Asia have shut down in the past week due to fires and other technical problems, leading to a jump in profit margins for facilities still operating.

The higher Asian refining margins have beat back concerns that profits would fall as crude oil prices gained as the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers began to implement their agreed production cuts from January to reduce global oversupply.

Besides the fires and other shutdowns, maintenance and repairs at refineries in Indonesia by Pertamina and in Singapore by Royal Dutch Shell have further boosted oil product margins Read more

Noble Energy to buy Clayton Williams Energy for $2.7 billion

Oil producer Noble Energy Inc said on Monday it would buy smaller rival Clayton Williams Energy Inc for about $2.7 billion in a cash-and-stock deal to enhance its presence in the Permian Basin, the top U.S. oil field.

Noble Energy said the deal includes 71,000 net acres in the core of the Southern Delaware Basin in Reeves and Ward counties in Texas, which are a part of the larger Permian Basin.

The Permian basin has seen a slew of land acquisitions as producers scramble to gain or expand positions in the oil field, where drilling costs are low, in preparation for recovering oil prices Read more

ONGC’s KG gas field to touch peak in July

State-owned Oil and Natural Gas Corp expects to scale peak output of about 5 million standard cubic meters per day from its Vashishta gas field in KG basin by July this year.

Vashishta and S1 gas fields, located in the Krishna- Godavari (KG) Offshore Basin off the east coast of India, began operations in September last year.

“We are producing 1.1 million standard cubic meters per day from the fields currently and hope to reach about 5 mmscmd by July,” a senior company official said Read more

Petronet keen on Sri Lanka LNG regasification facility

Sri Lanka is one of the countries where India’s biggest gas importer Petronet LNG says it expects to invest in with plans for a regasification facility on the island within the next three years.

The company has said it would spend up to $3 billion in the next five years to expand overseas.

Petronet managing director Prabhat Singh told Reuters that over the next three years the company would be investing 100 billion rupees to set up LNG regasification capacities in Bangladesh, Sri Lanka and a minor facility in the Andaman islands.

Singh had said earlier that the firm has proposed setting up a million-tonne terminal in Sri Lanka.Read More...

Mangalore Refinery and Petrochemicals sets out massive expansion drive, to invest Rs 24,000 cr

Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC, is embarking on a fourth phase expansion involving a massive investment of R24,000 crore. The company currently operates a 15 million metric tonnes per annum refinery at Mangaluru on the west coast in Karnataka.

The new expansion envisages expanding the capacity of its refinery to 25 MMTPA, which will also includes a raw petroleum coke gas complex, synthetic gas complex and value added chemicals such as urea, acetic acid, acryilate among others. MRPL has asked Engineers India to prepare a detailed feasibility report for expansion of its refining capacity.

“We are planning to expand the refinery capacity to 25 MMTPA, set up facilities for several new products. The company’s board is yet to finalise the exact amount of investment required. We are also in the process of upgrading the quality of fuel to meet BS-VI emission norms,” a company official said. Read More…

For RIL, demonetisation had positive impact on retail but petrochemicals demand hit

Reliance Industries saw a positive impact of demonetisation on its organised retail business, but demand growth was affected in petrochemicals and petrol pumps, the company said.

“Overall impact from demonetisation has been positive for core retail business with favorable long-term implications for modern trade,” the company said in its quarterly earnings statement. But there were some concerns in the initial phase.

“Demonetisation… led to cautious buying by customers for a short period. Reliance Retail extended support to all its customers, business partners, farmers and small suppliers across the value chain during the initial period of demonetisation,” it said.

The company’s petrochemicals business did well, but not without hiccups, which are temporary. Read More…

Oil prices mixed on Saudi commitment to cut output, investor scepticism

Oil prices were mixed on Tuesday, supported by Saudi Arabia saying it would adhere to a commitment to cut output, but held back by rising U.S. production and scepticism that OPEC as a whole would comply with its commitments to reduce supplies.

Brent crude futures, the international benchmark for oil prices, were at $55.76 per barrel at 0813 GMT, down 10 cents from their last close.

U.S. West Texas Intermediate (WTI) crude futures, however, were up 15 cents at $52.51 per barrel.

Traders said markets were receiving some support from top crude exporter Saudi Arabia, which said it would adhere strictly to its commitment to cut output under the agreement between OPEC and other producers like Russia. Read More…

Ved Prakash Mahawar takes over as ONGC director

Ved Prakash Mahawar today took over as Director (Onshore) of state-owned Oil and Natural Gas Corp (ONGC).

“As Director (Onshore), a board level position, he will be directly looking after all the onshore operations spread across the country which significantly contribute towards ONGC’s overall physical performance,” the company said in a statement here.

He replaces Ashok Verma, who superannuated yesterday.

Prior to his elevation, Mahawar headed ONGC’s Tripura fields as Executive Director-Asset Manager.

“Under his leadership, Tripura Asset saw increase in gas production by more than two folds. During his tenure ONGC commenced supplying gas for both units of ONGC Tripura Power Company-OTPC. He has also been instrumental in monetisation of two discovered fields, putting them on production,” the statement said. Read More…

OPEC sees market stability in 2017, Venezuela aims for $70 price

The OPEC flag and the OPEC logo are seen before a news conference in Vienna, Austria, October 24, 2016.

The head of the Organization of the Petroleum Exporting Countries was back in Caracas for a second meeting in two months with President Nicolas Maduro whom he lavishly praised for an “inspirational” role in the producers’ pact to cut output.

“We remain optimistic Mr. President that with the full and timely implementation of this historic decision between us and non-OPEC, in 2017 the situation of our economies will improve tremendously,” Barkindo said at a news conference with Maduro.

“And stability to the oil market that has eluded us for nearly three years will be restored on a sustainable basis in the interest of producers, consumers and the global economy. Read More…