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Discussion Starter · #1 ·
ONGC plans Rs 16k cr hi-tech facelift for Bombay High

NEW DELHI: In a rare display of out-of-the-box thinking from a public sector company, flagship explorer ONGC is pumping in nearly Rs 16,000 crore, or $4 billion, into deploying some innovative technological measures to arrest the ageing of Mumbai High oil and gas fields, its crown jewel.

Pumping oil from the field, with complex and irregular rock formations cradling barely 3-8 metre thick oilbearing sub-layers , has remained a challenging task since its discovery in 1974. With production of some 400,000 bpd (barrels per day) at its prime, output has sagged over 32 years to nearly half as age caught up.

Now, in a decisive move to rejuvenate production, ONGC has deployed several smart technologies that keep costs down by reducing the number of platforms or midsea structures for producing the oil trapped in nooks and crannies of the reservoir rock and left behind due to uneven movement of encroaching water in the reservoir. One of the key innovations, a first for India , is the introduction of a rig-mounted platform with 16 slots to drill of up to 16 wells ata depth of 80 metre .

Read more: ONGC plans Rs 16k cr hi-tech facelift for Bombay High - The Times of India
ONGC strikes oil and gas in two blocks in the Cauveri basin news

State-run explorer Oil and Natural Gas Corporation Ltd (ONGC) has announced discoveries of oil and gas in two exploratory wells in the Cauvery basin in the east coast.

ONGC notified the two discoveries - North Kovilkallappal-1, an inland exploratory well and GS-KV-1, in the shallow waters offshore KG Basin - both in the Cauvery basin, to the Directorate General of Hydrocarbon (DGH).

ONGC announced the discoveries at its 210th board meeting held on 15 October. The company did not give details of the potential reserves.

ONGC said oil from the exploratory well North Kovilkallappal -1, in L-II PEL block in the Cauvery basin in the Andimadam formation, flowed at 300 barrels a day (40 m3/day) with 6 mm bean at depths of 2,132 to 2,130 metres.

The well, with a total hydrocarbon bearing zone of 2,132 to 2,120 metres, was drilled to a depth of 2,416 metres and has been put on production, ONGC said.

The well also yielded gas at another interval of 2,110-2,112 metres, ONGC said in a release.

4,817 Posts
Discussion Starter · #2 ·
BPCL announces gas discovery in offshore Mozambique

More specifically, the discovery Barquentine well encountered more than 94 net metres of pay in encountered in the previously announced discovery of Wimdjammer well
Bharat PetroResources Limited (BPRL), a wholly owned subsidiary of Bharat Petroleum Corporation Limited advises that Anadarko Petroleum Corporation has informed that the Barquentine exploration well which was drilled to approximately 5145 metres, has encountered a total of more than 127 net metres of natural gas pay in multiple high quality sands.

4,817 Posts
Discussion Starter · #3 ·
BPCL plans Rs 50k-cr expansion

MUMBAI: State-run Bharat Petroleum (BPCL) plans to invest Rs 50,000 crore in the next five years for expansion of refinery capacity, overseas acquisitions of oil and gas assets and setting up power projects , say two senior officials.

About Rs 28,000 crore will be invested for expansion of refinery capacity and upstream activities while the remaining will finance explorations and production activities in foreign markets as well as entry into power business” the newly appointed chairman, S Radhakrishnan told ET.

Mr Radhakrishnan, who elevated to chairman from marketing director after Ashok Sinha retired last month, said the proposed expansion was aimed at scaling up revenue, which will further propel the company’s growth in new businesses. A detailed five-year plan beginning April next year, will be chalked shortly, he added.

Under the expansion plan, BPCL will scale up its refinery capacity by 50% to 45 million tonne(mt) a year. BPCL is setting up a 6-mt refinery at Bina in Madhya Pradesh, through a joint venture with Oman Oil Company, with an investment of Rs 12,000 crore. In addition, it will expand its existing capacities at Kochi and Mumbai. Currently, BPCL’s Mumbai facility has a capacity of 12 mt and 10 mt in Kochi.

BPCL will enter the power business jointly with a partner with an initial equity investment of Rs 600-1,000 crore, said Mr Radhakrishnan. The funding for the expansion will be through a mix of oil bonds, internal accrual and debt. “We could raise funds through oil bonds of Rs 9,000 crore, internal accrual of up to Rs 15,000 crore. The remaining will be financed by debt,” said SK Joshi, director finance. The company, which had entered upstream exploration & production four years ago through its subsidiary Bharat Petro Resources (BPRL), has participating interest in 27 blocks in India and overseas countries including Australia, Brazil, East Timor, Indonesia, Mozambique and the UK.

It is also looking at opportunities for gas assets in countries like Australia and Indonesia. “We will invest in new areas depending on the viability of the projects,” said Mr Radhakrishnan.

Last month, BPRL entered into agreement with Norwest Energy in Australia for production of shale gas in Perth basin.

BPCL is already into development of alternate sources of energy such as solar power and bio-diesel and has installed captive power generation capacity of about 200 megawatts.

Seven million poor to get cheap gas connections

NEW DELHI THE finance ministry has approved an oil ministry’s proposal to provide cooking gas connections to over 7 million poor families in rural areas for just Rs635 per unit, a senior government official said.

A subsidy of Rs1,400 per connection will be provided to each households and the target will be achieved in two years ,” minister of state for petroleum & natural gas Jitin Prasada told ET.

The proposal is expected to get the Cabinet’s nod later this month. The subsidy will be shared equally between the government and state-run oil companies, which can leverage their funds for corporate social responsibility (CSR), he added.

Public sector oil companies, including Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL), mandatorily spend 2% of their net profit on CSR activities. Their combined annual CSR kitty is estimated between Rs 800 and Rs 1,000 crore. The government will waive off the one-time security deposit of Rs1,250 for the connection and Rs 150 for the regulator. The beneficiary will pay about Rs635 per unit for other services, including the cost of a 14.2 kg gas cylinder which is approximately Rs350, an official handling the project in the oil ministry said.

“This is part of our policy to provide clean fuel to the rural people who still depend on fire-wood or kerosene for cooking purpose. Apart from health benefits, the clean fuel will also help in protecting the environment,” Mr Prasada said.

The oil ministry has set a target to provide 10 million (1 crore) new gas connections, mostly in villages, every year till 2015. As per the ministry data, state-run oil companies have so far provided 8.5 million connections this year.

Penetration of clean cooking fuel like piped natural gas (PNG) and liquefied petroleum gas (LPG) will also help the government in proportionately reducing supply of highly subsidised kerosene, which is often misused for adulterating costly fuel such as diesel, an official in the ministry said.

“Huge price gap between diesel (Rs37.71 a litre in Delhi) and kerosene (Rs12.32 a litre in Delhi) is a major incentive for unscrupulous elements to mix it with the auto fuel,” an IOC official said.

In the last one decade, the consumption of PDS kerosene has more or less remained static despite a significant increase in cooking gas and power connections, indicating large scale diversion.

Delhi, which has electrified 100% households, with minimum one gas connection, has seen only a marginal decline in kerosene consumption in the last decade.

4,817 Posts
Discussion Starter · #4 ·
India's IOC may not export fuel from Paradip plant

NEW DELHI, Oct 19 (Reuters) - India's largest state-run refiner Indian Oil Corp (IOC.BO: Quote) may not export refined products from its Paradip refinery, to be commissioned in March 2012, on rising local fuel demand, its head of refineries said.

The 300,000 barrels per day (bpd) Paradip refinery in India's east coast is likely to operate and stabilise at full scale in November 2012, B.N. Bankapur said on Tuesday.

"We were hoping to export product from the refinery, but (the) dynamics have changed.... Being a state-run firm, our priority is to meet local demand."

The Paradip refinery is expected to annually produce 536,000 tonnes of liquefied petroleum gas, 124,000 tonnes of naphtha, 3.41 million tonnes of gasoline, 1.45 million tonnes of kerosene/jet kero and about 6 million tonnes of diesel.

Bankapur said IOC had initially hoped for annual exports of around 2 million tonnes of gasoline and 124,000 tonnes of naphtha from the refinery.

India's fuel demand rose at 3.4 percent in the 2009/10 fiscal year and is estimated to rise by 5.7 percent in the current fiscal.

IOC and its subsidiaries control about 34 percent of the country's about 3.72 million bpd installed refining capacity.


IOC may raise the capacity of Koyali refinery in western Gujarat state to up to 360,000 barrels per day (bpd) from the current 274,000 bpd, Bankapur said.

"By the end of this financial year, we will get to know whether to raise the capacity of Koyali refinery or not. If we decide to raise, it will be either 320,000 bpd or 360,000 bpd."

Bankapur also said IOC has sought approval from India's top court for raising the capacity of its 160,000 bpd Mathura plant to 220,000 bpd.

The Mathura refinery in northern India has been under the scrutiny of officials and courts as it is about 40 kms (25 miles) from the Taj Mahal, and volunteer groups say the historical monument has lost some of its lustre because of pollution.

IOC's Panipat refinery in northern Haryana state will start operating at new capacity of 300,000 bpd from November, Bankapur said. Its 120,000 bpd crude unit is currently shut for expansion.

4,817 Posts
Discussion Starter · #5 ·
GSPC-led consortium wins bid for Kakinada-Bhilwara pipeline

Chennai, Oct 19 (IANS) A four-member consortium led by Gujarat State Petroleum Corporation (GSPC) has won the bid for building the natural gas pipeline between Kakinada in Andhra Pradesh and Bhilwara in Rajasthan.

The other members of the consortium are Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL).

'The bids for the pipeline project were opened Monday and GSPC has got the bid,' said Chairman of the Petroleum and Natural Gas Regulatory Board (PNGRB) L. Mansingh.

He was speaking to reporters on the sidelines of Chennai 2020, a seminar organised by the Confederation of Indian Industry (CII).

He said for the first 300 km the consortium has quoted a tariff of one paise, perhaps owing to low demand in that stretch.

An IOC official told IANS on condition of anonymity that the 1,545 km pipeline project is estimated to involve an outlay of around Rs.7,000 crore.

According to him, GSPC will hold 52 percent stake, IOC 26 percent, HPCL and BPCL each holding 11 percent each.

He said a special purpose vehicle will be incorporated and the mix of equity and debt for the project will be finalised later.

'The bids were opened only yesterday (Monday). There are several other steps that have to be taken. We have to get the firm order from the regulator,' he said.

This is the first pipeline to be awarded after the PNGRB has been set up.

Confirming that IOC has proposed to supply liquefied natural gas (LNG) to Madras Fertilisers Ltd (MFL), he said: 'We are yet to get a response from MFL.'

IOC has proposed to build an LNG terminal and a 1,000 MW power plant at Ennore. The idea is to have the power plant with Chennai Petroleum Corporation Ltd (CPCL) and MFL as its anchor customers.

IOC has said it is ready to supply gas to its anchor customers by having a floating storage and regasification unit near here so that its LNG terminal project can be speeded up.

4,817 Posts
Discussion Starter · #6 ·

Indian Ruias-owned Essar Oil (BSE:500134) on Monday said the expansion programme of the Vadinar refinery to increase capacity to 18 million tonnes per annum would be completed by March, 2011, barring two units.

"Almost 70 per cent of the project has been completed until date. All the new units are progressing on schedule and within budget, except for two units that are lagging by a quarter," Essar Oil CEO Naresh Nayyar told reporters here.

He added that the two delayed units will also achieve mechanical completion by June next year.

With the expansion, the refining capacity of Vadinar refinery will go up to 375,000 barrels per day (BPD) from existing 300,000 BPD and will be able to process nearly 90 per cent heavy and ultra heavy crude, he added.

The refinery processes about 64 per cent heavy and ultra heavy crude and 36 per cent light sulphur crude.

Besides this, Nayyar said that crude purchased from Cairn India's Mangala oilfields accounted for 9 per cent (at 30,000 barrels a day) of Vadinar refinery's total off-take in the July-September quarter.

He added that crude purchased from Venezuela and Brazil are now getting replaced to some extent by the Mangala Crude.

Talking about the second quarter results, Nayyar said the company posted a net profit of Rs 130 crore (US$29.3 million) in the quarter ended September 30, 2010, against a loss of Rs 94 crore in the corresponding quarter last year.

The gross refining margins (considered barometer for assessing a refinery's performance) stood at US$6.49 per barrel during the July-September quarter, he said.

He added that Essar Oil plans to have 1,700 retail outlets by March 2011 and about 200 petrol pumps are under construction, while 1,376 outlets are fully operational.

Talking about the scenario post deregulation of petrol price, he said the company has achieved a spectacular growth of about 58 per cent in petrol sales, while the income from retail outlets have increased to Rs 752 crore in the second quarter vis-a-vis Rs 536 crore reported in the corresponding quarter of 2009-10.

He also expressed hope that government would soon deregulate diesel prices as well.

Besides this, Essar Oil expects that commercial sales from Raniganj Coal-bed Methane block will begin by December, for which test production of 18,000 standard cubic metres a day (SCMD) has already started, Nayyar said.

He added that Essar is developing a pipeline network in Durgapur city to facilitate city gas distribution in the Asansol-Durgapur area.

4,817 Posts
Discussion Starter · #7 ·
Oil India discovers huge gas reserves in Rajasthan desert

Jaipur: State-owned Oil India has discovered huge deposits of hydrocarbons in Baghewala in Jaisalmer in the Thar desert. The search for oil and gas in the Thar desert in recent years has yielded good results, and Cairns Energy, which discovered oil and gas in the Barmer district, has started commercial production in the Mangla oil fields.
The exploratory discovery was made in 1988 in the Tanot area. Subsequently, two more gas fields were discovered at Dandewala and Bagittiba by Oil India.
However with a Venez-uelan company as a consultant, Oil India made fresh efforts to discover oil. After the successful attempt, several wells were identified and the yield from these wells is likely to be good.
According to Ram Lal Jat, Rajasthan's minister of petroleum, gas has been discovered at Ramgarh, Jalalwala, Gamnewala and Gulabwala in the desert. Oil India is trying to estimate the commercial viability of the deposits.
Jat said that in the Tanot-Dandewala, Baggitibba areas of the Jaisalmer basin, the total gas reserves are 9.20 billion cubic metres (bcm), out of which the total recoverable is 6.5 bcm after drilling 36 wells.
Purchase deal
He said Rajasthan Vidyut Utpadan Nigam, the state government's power generation company, is buying the gas through Gas Auth-ority of India Ltd (Gail) for use in the Ramgarh-based gas power plant. The gas is supplied to the power production unit through a 65 km pipeline laid down by Gail.
Jat said Oil India is likely to produce 1.2 million standard cubic metres per day (mmscmd) of gas from its field and is presently producing about 0.7 mmscmd.
Jat also said that another government company, Oil and Natural Gas Corporation (ONGC), which is working on six gas fields in the Thar desert, has discovered reserves of 2.9 bcm of very high quality gas at Manehartibba. This deposit has 40 to 70 per cent methane content.
"The company has also discovered a gas reservoir with low methane content where higher fractions of hydrocarbons are practically absent," said Jat.
"But ONGC has discovered gas in Chinnewala Tibba under the Jaisalmer basin with a production rate of 0.1 mmscmd from one well having a calorific value of about 8,000 kcal per kg. This field has the potential to produce additional gas," he added
The discovery of gas in the Rajasthan desert is the first major stratigraphic discovery on the Indian side of the Indus River basin. The exact amount of gas is yet to be fully ascertained.
Speaking on the development, Anurag Bissa, an official of Focus Energy, said: "One of the most interesting parts of this development is that it is an onshore gas discovery. The project has less gestation period in comparison with offshore projects.
"The gas is also easily transportable for commercial use."
The Indus basin that is spread between Pakistan and India has immense potential for oil and gas.
Many companies have reported success on the Pakistan side of the basin including Petronas, BP and OMV.
The quality of gas discovered by Focus Energy is similar to that found in Pakistan's Miano and Sawan fields.
Focus discovery
According to the Rajasthan government's principal oil and petroleum secretary, Govind Sharma, Focus Energy has discovered high quality gas in the Shahgarh bulge area under Jaisalmer on the Indo-Pakistan border.
Sharma said out of 17 wells drilled by the company four have yielded very good results. He said the company has found 9.37 bcm of gas in the reserve in the Shahgarh bulge out of which 7.0 bcm is mineable. Focus Energy has entered into an agreement with the Gail and Rajasthan Vidyut Utpadan Nigam for supply of gas.
Focus Energy would supply gas soon for the 160 MW power plant that would be installed soon at Ramgarh, on the border of India with Pakistan in the desert.
"The Shagarh basin has the potential of about 7 trillion cubic feet gas reserves since across the Indo-Pakistan border a number of fields, namely Miano, Kandanwadi and the Swan fields in Sindh province of Pakistan, have good gas reserves. In these areas the reserves are estimated to be 30 trillion cubic feet

4,817 Posts
Discussion Starter · #8 ·
The East will light up, hopes ONGC

While Reliance Industries Ltd (RIL) has bought interests in three shale gas assets in the United States, government-owned Oil and Natural Gas Corporation’s (ONGC) began drilling at its maiden shale gas well at Ichhapur in West Bengal’s Burdwan district last month.

Shale gas is natural gas, primarily methane, trapped in the earth’s most common sedimentary rock shale, which has low permeability. Shales have large organic matter, from which oil and gas can be extracted by destructive distillation.

ONGC's preliminary estimate for Damodar and Cambay basins indicate that shale gas resources here may be 35 and 90 trillion cubic feet, respectively. “If reports from Ichapur meet our expectation, India will possibly be on the road to produce more shale gas than the US. Moreover, states like West Bengal, Gujarat, Assam and Jharkhand have the capability to make this a reality,” said P K Bhowmick, head of the Keshava Deva Malaviya Institute of Petroleum Exploration in Dehradun. He was involved with ONGC’s research activities.
Six major shale areas in the US have proven reserves of about 240 tcf. Shale gas production in the US has led to a substantial reduction in natural gas demand, with International Energy Agency’s Annual Energy Outlook-2010 expecting that shale gas will contribute 34 per cent of total gas production in the US in 2035, up from 17 per cent at present.

Eastern hope
As the central government is gearing up for the first-ever auction of shale gas areas in 2011, experts consider West Bengal and Jharkhand will contribute substantially in fulfilling the country's shale dreams. “There are a number of shale formations in the 26 sedimentary basins of India, the cumulative thickness of which are comparable or more than best global shale plays. As shale gas exploration is a recent phenomenin in the Indian hydrocarbon sector, a comprehensive resource estimate of these assets is not yet available,” said an ONGC spokesperson. The findings of the project will be finalised after ONGC completes drilling till 1,200 metres in another 208 days. So far, the company has drilled up to 170 metres.

Regarding the prospects of eastern India, the ONGC spokesperson said West Bengal and Jharkhand comprised a small part of the total sedimentary fill available. However, given the fact that shale gas exploration has been initiated from this part of the country, the two states are expected to provide a major impetus to the effort once the pilot is successful. “As the government has recently initiated an exercise to evaluate, identify and offer shale gas acreages and may launch the Shale Gas Policy of India in 2011, much will depend on acreages and opportunities opened up in these states,” said the spokesperson.

Still nascent
Basic shale gas-specific data are also being generated in other basins like Cambay, KG and Cauvery. “It needs to be borne in mind that although India has large shale volumes in its sedimentary basins, we are at a nascent stage of shale gas exploration compared to the US,” the spokesperson added.

A top official from the Directorate General of Hydrocarbons (DGH) said it was too early to comment. “The oil PSU had requested the petroleum ministry to carry out this research, with the shale gas auction expected to take place next year. We have to wait and watch for the final report,” said S C Sharma, a chief geologist at the DGH.

Adding: “The scene will soon change, as the US, too, is interested in India’s shale assets,” he added. ONGC plans to drill three more wells in Damodar Valley by March 2012.

Private sector giants such as Reliance Industries are also bullish on this gas source. RIL has completed three shale gas deals in the US since April. Reports suggest it is in talks with Chesapeake Energy for the Eagle Ford shale in South Texas. Oil India Ltd has also announced a plan to look for shale gas assets abroad.

4,817 Posts
Discussion Starter · #9 ·
Iran says to sign $5 bln gas deal with foreign firm

TEHRAN Oct 25 (Reuters) - Iran will soon sign a $5 billion contract with a foreign company to develop its offshore Farzad-B gas field, the Oil Ministry's website SHANA said on Monday.

The report did not name the company, but India's state-run Oil and Natural Gas Corpration Limited (ONGC.BO: Quote) (ONGC) heads a consortium which has exclusive exploration rights for the offshore Farsi block of which the Farzad-B gas field is part.

"Currently negotiation for the investment and development of this oil field in the Persian Gulf is at its final stage," Mahmoud Zirakchianzadeh, head of the Offshore Oil Co of Iran, was quoted as saying by SHANA.

Zirakchianzadeh said an initial agreement on developing the gas field on a buyback basis had already been signed with the foreign company which has already secured all the necessary permits.

The announcement comes after many Western energy companies have turned away from Iran due to sanctions imposed to pressure Tehran over its nuclear programme.

Iran has often said it has no shortage of willing international partners outside Europe and the United States which have imposed the toughest sanctions.

SHANA reported on Sunday that Venezuela was set to invest $780 million in the development of phase 12 of Iran's giant South Pars gas field. (CHECK)

ONGC and Indian Oil Corp each own a 40 percent interest in the Farsi block, and Oil India Ltd holds the remainder.

Zirakchianzadeh said the field's in-place gas reserves have been estimated at 21.7 trillion cubic feet (tcf) of which 12.5 tcf are recoverable. Production is projected at 1.1 cu. ft. per day in the first phase of the field's development.

Iran is the world's fifth largest oil exporter and sits on the world's second largest natural gas reserves after Russia, but sanctions have slowed its development in the oil and gas sector.

The Islamic Republic says it needs around $25 billion a year in oil and gas industry investment to meet its target development goal in oil and gas sectors.

India's crude, gas output up by 12.5% in Sept

India's crude oil production jumped by 12.5 per cent in September on the back of higher output from the Cairn India-operated Rajasthan fields.

The country produced 3.11 million tonnes of crude oil in September, 2010, compared to 2.77 million tonnes in September, 2009, according to data released by the Ministry of Petroleum and Natural Gas here.

Cairn currently produces 125,000 barrels of crude oil per day from the Mangala field in the prolific Rajasthan block.
State-owned Oil and Natural Gas Corp (ONGC) reported a 2.2 per cent drop in output to 2 million tonnes in September as production from its prime Mumbai High fields fell to 1.39 million tonnes from 1.42 million tonnes a year ago.

Natural gas production rose by 12.6 per cent to 4.21 billion cubic metres in September, mostly on the back of output from Reliance Industries' eastern offshore KG-D6 fields.

While KG-D6 produces a little less than 60 million standard cubic metres of gas per day, ONGC's output dipped marginally to 1.9 billion cubic metres in September.

The 19 public and private sector refineries in the country processed 12.16 million tonnes of crude oil in September, 2010, 10.2 per cent less than in the same month last year.

Reliance Industries reported an 8.6 per cent drop in crude oil processing at its old Jamnagar refinery to 2.72 million tonnes.

Crude oil production in April-September was up 10.2 per cent to 16.6 million tonnes, even though ONGC's output dipped by 1.2 per cent to 12.22 million tonnes.

Natural gas production was up by 25.2 per cent at 26.66 bcm during the six-month period.

4,817 Posts
Discussion Starter · #10 ·
India to import 5 MT LPG by 2015; no LPG shortage: HPCL

MUMBAI: India plans to import over five- mn tonnes of Liquefied Petroleum Gas (LPG) by 2015, to meet increasing demand, a top industry official said.

"Demand for the cooking gas is rising, which stood at 10 per cent in September from the earlier 3-4 per cent. Looking at this rise in demand, we will be importing around 5.5-mn tonnes of LPG by 2015," HPCL Chairman and Managing Director, S Roy Choudhury, told reporters here today.

Presently, the country imports 2.5-mn tonnes of LPG.

Demand will soar in the coming years with the implementation of the Rajiv Gandhi LPG Vitrak Yojana , that envisages to cover 75 per cent of the population by 2015.

He said during 2011-12 India would import 4.8-mn tonnes, in 2012-13 about 4.5-mn tonnes and in 2014-15 around 4.6-mn tonnes.

Because of the huge existing deficit, the state-owned company has floated tenders for importing additional LPG, he said.

New import facilities are being set up at important ports including JNPT, New Mangalore and Kandla to handle the increased volume of imports, he said.

On reports of shortage of LGP in the western region during the festive season, he said there is no overall shortage of domestic cooking gas in the country and temporary backlogs will be wiped out by the month-end.

4,817 Posts
Discussion Starter · #11 ·
BG India unit says Panna-Mukta fields resume production

NEW DELHI Oct 27 (Reuters) - Oil and gas production resumed on Monday from India's Panna-Mukta fields, a spokesman for BG Group Plc's India unit said on Wednesday, after a pipeline leak caused a shutdown in July.

State-run explorer ONGC owns 40 percent stake in the joint venture that operates the fields, off India's west coast, while Reliance Industries and the Indian unit of BG Group own 30 percent each.

A spokesman for BG Plc's India unit Rajeev Khanna did not say the fields' current production and by when they are expected to produce at full rate.

The fields were shut on July 20 after a leak in a pipeline linked to single point mooring. Before the shutdown, the fields were producing about 40,000 barrels per day of crude and about 5.5 million cubic metres per day of gas.

HPCL to boost overall refining capacity

Hindustan Petroleum Corp Ltd (HPCL) plans to add a new crude distillation unit (CDU) at its Vizag refinery which will raise the overall capacity to nearly 300,000 barrels per day (bpd), a company source said on Wednesday.
The project, coupled with another two greenfield refineries, will boost HPCL's refining capacity to 990,000 bpd, compared with 1.24 million bpd at privately owned rival Reliance Industries.

HPCL plans to build a 9.0 million tonnes per year (tpy), or 180,000-bpd, CDU and scrap an old 1.8 million tpy (36,000 bpd) unit at the refinery in Vizag, the company source said.
"We're getting environmental and land clearance which could take six months," he said.
The CDU will take around three years to build and the project will include secondary units, he said, but declined to elaborate further.
HPCL currently operates three CDUs at the 150,000-bpd Vizag refinery. It also runs a 110,000-bpd refinery in Mumbai.
The company expects oil products sales to nearly double in 2016-2017 when it completes at least two new refinery projects, a company executive said earlier on Wednesday.
HPCL expects sales to reach 43.4 million tonnes of oil products in 2016-2017, up from the current 24 million tonnes, Shri P. A. B. Raju, director of Visakh refinery said at the Downstream Asia conference.
Its refining capacity will be increased to 42 million tonnes per year (tpy), or 840,000 barrels per day (bpd), from the current 16 million tpy, when two greenfield refinery projects at Bathinda and in the Maharashtra state are completed, Raju said.
"The kind of growth rate that has been predicted for India and the Asia region is such that at some point demand is going to catch up with the capacity which we have," he said.
"We're making products which are meeting international standard and can be sold anywhere in the world."
The projects will provide economies of scale, allowing the company to expand without space constraint at existing sites, Raju said.
HPCL along with its partner Mittal Energy, owned by billionaire Lakshmi Mittal, will mechanically complete the 9 million-tpy Bathinda refinery in northern India by March next year.
The company's chairman said in May that HPCL is expected to take a final decision on the capacity and location of the new coastal refinery in western Maharashtra state by end-August.
HPCL was looking at building a 300,000 to 400,000 bpd refinery, he said.
The company is also considering reviving a refinery-cum-petrochemicals project in Vizag in southeastern India.

4,817 Posts
Discussion Starter · #12 ·
Petroleum availability to increase: Deora

New Delhi, Oct 28 (IBNS): Petroleum Minister Murli Deora on Wednesday said that India will see an additional increase in crude oil and natural gas availability during 2010-11.

The additional increase of 12.67 percent in crude oil and 12.80 percent in natural gas comes in addition to the 11 and 53 percent increases which was helped by the 15 new oil discoveries by
Oil and Natural Gas Corporation Limited (ONGC), Oil India Limited (OIL) and private and joint venture companies,
said Deora.

However, despite the increase in production the country is still dependent on imports of petroleum and petroleum products, to the extent of around 80 percent of total consumption in the country, he said, speaking at the Economic Editors’ Conference here.

Also speaking on the deregulation of petroleum prices decided by the government in June this year, Deora reassured that the government was ready to intervene if the prices spiralled out of control due to the volatile global oil scenario.

4,817 Posts
Discussion Starter · #13 ·
India's oil demand to jump 40 pct in next 10 yrs: PM

New Delhi: Projecting a growth of 40 per cent in India's oil demand in next decade, Prime Minister Manmohan Singh on Monday stressed on securing energy supplies at affordable prices to meet requirement of rapidly expanding economy.

"India needs adequate supplies of energy at affordable prices to meet the demand of its rapidly growing economy," he said inaugurating the Petrotech-2010 oil and gas conference here.

India, which consumed over 138 million tonnes of fuel in 2009-10, imports three-fourth of its oil needs and one-third of its gas requirement. It imported USD 79.5 billion worth of 159.2 million tonnes of crude oil.

"Demand over the next 10 years will increase by over 40 per cent, whereas the increase in supply from the maturing (domestic) oilfields is expected to be around 12 per cent," he said.

Domestic sources are inadequate to meet the increasing demand for energy. The nation's domestic oil production was about 34 million tonnes in the last fiscal.

To bridge the shortfall, the government is encouraging national oil companies to acquire oil and gas fields abroad, Singh said.

Prime Minister also stressed on building strong economic partnership with hydrocarbon-rich countries.

Singh said oil and gas today are not seen as mere commodities to be traded freely. "They are often used by countries to meet their political objectives."

In the last two decades, Asia's share in the growth in demand for hydrocarbons has risen substantially while that of the OECD countries and the European Union has declined. "This shift has been caused by high rates of economic growth and increasing populations in many Asian countries."

"There are supply-side uncertainties. Many mature fields are declining in production. Some energy endowed countries have problems in augmenting production because of various reasons including lack of the required technology and political uncertainty," Singh said.

Another challenge, he said, is climate change. "Because of this challenge, the demand on energy technologies goes beyond productivity and efficiency issues," he said, calling for a rethink on the traditional energy basket being loaded in favour of fossil fuels.

"The concept of a Global Energy Equilibrium (the theme of Petrotech conference) suggests a matching of demand and supply of hydrocarbons in a manner which is optimum. However, apart from the difficulty of defining what an optimum balance would exactly mean, there are many other factors which have a bearing on how different countries meet their hydrocarbon demand," he added

4,817 Posts
Discussion Starter · #14 ·
Indian Oil Corp. Surpasses Reliance Industries as Nation's Biggest Refiner

Indian Oil Corp. surpassed Reliance Industries Ltd. as the biggest refiner in the country after increasing capacity at a plant in north India by 25 percent to 15 million metric tons a year.

State-run Indian Oil restarted a crude distillation unit at Panipat following the expansion a “couple of days ago,” Basavaraj Ningappa Bankapur, director of refineries, said by telephone today. “We will gradually start all the units and the refinery will start using its full capacity soon.”

The combined crude processing capacity of Indian Oil and its majority-owned unit before the Panipat expansion was 61.7 million tons a year, according to the company’s website. The additional 3 million tons will take the capacity to 64.7 million tons, or 1.29 million barrels a day.

Reliance Industries can turn 1.24 million barrels a day of crude into fuels at its two adjacent plants in Gujarat state, the world’s biggest refining complex at a single location.

India’s crude processing capacity is rising as the fastest pace of economic growth in 2 1/2 years drives demand for fuels to run vehicles and factories. Demand for cars in the South Asian nation may double to 3 million vehicles annually by 2015, according to the Society of Indian Automobile Manufacturers.

Indian Oil shut 6 million tons of capacity at Panipat two months ago in preparation for the expansion, Bankapur said Sept. 22. The refinery could earlier process 12 million tons a year.

Indian Oil may raise capacity at its refinery in Gujarat to 18 million tons a year from 13.7 million tons, Bankapur said Oct. 19. The company is also building a new, 15 million ton-a- year plant in the eastern state of Orissa.

A cracker that uses naphtha from the Panipat refinery to produce ethylene and propylene, which was shut in September, also started operating a few days ago, Bankapur said today.

4,817 Posts
Discussion Starter · #15 ·
Oilex strikes big gas reserves south of Ahmedabad

Australian company Oilex has struck huge natural gas reserves south of Ahmedabad that is being billed at the next big thing after Reliance Industries’ eastern offshore KG-D6 gas find and Cairn India’s Rajasthan oil discovery.

Inplace reserves in the Cambay basin block near the town of Khambat (160-km south of Ahmedabad in Gujarat) is 16-21 Trillion cubic feet,” Oilex Managing Director Bruce McCarthy said here.

Of these 10 per cent or at least 1.6 Tcf are recoverable.

Initial gas production could be 5 million standard cubic feet per day, rising up to 50 mmscfd by 2012-13.

The inplace reserves are almost equivalent to what RIL has found in the Krishna-Godavari basin deepsea KG-D6. But KG-D6 fields have a higher recovery factor with almost 12 Tcf of gas likely to be produced over life of the field while in Oilex’s case only 1.5 Tcf can be produced as the reservior is ’tight’ with low permeability.

McCarthy said Oilex is looking to replicate Cairn India’s success in using US technology to produce gas from the onland block by mid-2011.

“The Cambay reservior is classified as tight reservior.

We plan to drill multiple horizontal wells and usee hydraulic fracturing to release gas from the right reservior similar to one being used in the US to extract shale gas,” he said.

McCarthy, who had worked for Cairn Energy from 1995 to 2002, said Cairn India has over the last twelve months implemented very similar technology in Rajasthan to ramp up output to 125,000 barrels per day.

The Cambay field is a pre-New Exploration Licensing Policy (NELP) block that was originally awarded to Gujarat State Petroleum Corp (GPSC) and Canada’s Niko Resources. Oilex stepped in upon exit of Niko.

Oilex holds 45 per cent interest in the Cambay Field while GSPC holds the rest 55 per cent.

Besides gas, the field also holds 31 million barrels of condensate and the about 200 barrels per day of condensate can be produced along with gas in 2011, he said.

Oilex said it estimates the Cambay field holds 248 billion cubic feet of gas with a 90 per cent certainty of being produced.

Oilex drilled a number of wells on the field between 2006 and 2008 and found hydrocarbons but they were in tight reservoirs which meant they were not at that time commercial.

By applying technology used by companies extracting shale gas in North America, Oilex believes the block now has significant commercial gas reserves.

4,817 Posts
Discussion Starter · #16 ·
HPCL back in black, to pump Rs 30k crore into new Maharashtra unit

NEW DELHI: State-owned refiner-marketer Hindustan Petroleum plans to pump Rs 30,000 crore into a new refinery with a capacity of 18 million tonnes per year in Maharashtra, even as the company found itself back in black with a net profit of Rs 2,090 crore in the second quarter on the back of government subsidy support.

The new refinery was conceptualised to make up for space constraints at HPCL's existing Mumbai refinery. "We have been told that 1,800 acres of land is available with MIDC (Maharashtra Industrial Development Corporation). We have asked for 1,000 acres more land (for the refinery)," company chairman Subir Roychowdhary said on Friday. The land earmarked for the refinery is located between Ratnagiri and Raigad and the unit — called Maharashtra Refinery — would be completed within 48 months from the date all approvals are through. Government consultant, Engineers India Ltd, has been engaged to study the feasibility of the project. The options under consideration are a single 18-million tonnes per annum unit, or two units of 9 million tonnes each.

"The detailed feasibility report will be ready by December," Roychowdhary said. Roychoudhury said that net profit in the July-September quarter was Rs 2,089.61 crore against a net loss of Rs 136.68 crore in the year-ago period. The company lost Rs 6,833 crore on sale of diesel, cooking gas and kerosene at government-capped prices during the first half of the current fiscal.

The government gave Rs 2,832.17 crore in cash to make up for the loss. HPCL is likely to lose Rs 13,600 crore on subsidised fuel sales during the full fiscal as it continues to sell diesel at a loss of Rs 2.62 a litre, while the under-recovery is Rs 201.53 per cylinder of cooking gas and Rs 15.71 per litre of kerosene. Roychowdhary said the company earned $2.66 on every barrel of crude oil processed in the July-September quarter, up from a $1.80 per barrel gross refining margin in the same period a year ago. HPCL faces space constraints at its existing 6.5-million tonne Mumbai refinery.

A refinery of this size is usually spread over 2,000 acres of land, but HPCL's refinery is situated in a 350-acre plot. The existing Mumbai refinery may eventually be closed once the new refinery is built. HPCL also has a 7.5-million tonnes a year unit at Vizag, Andhra Pradesh, and is building a 9 million tonnes plant at Bhatinda, Punjab, in joint venture with NRI steel tycoon Lakshmi Mittal.

Roychowdhary said the Bhatinda project is on schedule for mechanical completion in March next year. "The refinery will be fully commissioned in August-September, 2011."

Read more: HPCL back in black, to pump Rs 30k crore into new Maharashtra unit - The Times of India

4,817 Posts
Discussion Starter · #17 ·
Power project developers rush to join queue for gas
120 thermal projects waiting for gas linkages

With recent gas finds boosting future supply prospects, natural gas is back in vogue as feedstock for new power projects.

At last count, developers of 120 thermal projects, with cumulative generation capacity of over 1,42,000 MW, had applied for gas linkages with the Government, of which 97,500 MW or nearly 70 per cent are in the private sector.

These applications are for projects slated to come up beyond the Eleventh Plan, mostly in the Twelfth Plan period. The total gas requirement for all of these projects is pegged at a cumulative 682 million standard cubic metres a day at 90 per cent plant load factor.

Key projects

Key projects in the Central sector include NTPC Ltd's 2,100-MW Badarpur greenfield station, a 2,100-MW expansion at Kayamkulam, Kerala and a 3,000-MW expansion project for its Ratnagiri project, cumulatively needing 34.56 mscmd (million standard cubic metres per day) of gas.

Among State utilities, Karnataka, with 9,000 MW of new gas-capacity, Gujarat with over 6,000 MW and Andhra Pradesh (2,100 MW) top the list. Private projects include Reliance Power's 2,400-MW Samalkot expansion, Spectrum Power's 1,350-MW expansion project, GMR Coastal Energy's 2,000-MW greenfield project (all in Andhra Pradesh) and Reliance Power's proposed 7,200-MW Jambusar project in Gujarat.

Coal prospects dim

The renewed demand for gas among project developers comes at a time when coal mining prospects appear dim in light of new stringent environmental norms that have been proposed in terms of ‘no go' areas. With demand for gas allocations perking up, the Centre has asked all gas-based project developers, including projects pending with CEA for the recommendation of gas allocation and others intending to put up gas-based units, to furnish the details by November 20.

This means that the final tally of projects seeking gas allocations could be even higher.

The Government had recently mandated that fuel for future thermal power projects — both coal and gas — will be allocated under a new score-card system, where the use of higher-efficiency units and progress on land acquisition have the highest weights.

The projects that have applied for gas allocations would be selected for linkages through this methodology, officials said.

Currently, the total availability of gas in India, including liquefied natural gas (LNG), is pegged at around 167.80 mscmd, which is projected to be around 271.92 mscmd by 2013-14.

Most of the increase would come when Reliance Industries hikes output from its eastern offshore KG-D6 fields to over 80 mscmd and the commissioning of LNG import terminal at Kochi in Kerala.

The Kochi terminal would import 2.5 million tonnes of LNG a year and shipments to the currently operational Dahej and Hazira facilities in Gujarat are also going to rise. The power sector's current requirement of gas is pegged at around 77.44 mscmd.

4,817 Posts
Discussion Starter · #18 ·
Govt sees 200 cities ready for piped gas in 5 years

The sight of a delivery man carrying a gas cylinder into the kitchen could be a thing of the past for people in 200 cities in the next five years.

As per the gas distribution plan envisaged by the government, city consumers will receive piped natural gas (PNG) directly in their kitchen by 2015, Murli Deora, minister of petroleum and natural gas, said.

L N Gupta, joint secretary, ministry of petroleum and natural gas, said, “The domestic (LPG) distributors are up for challenging times and they will now have to concentrate more on penetration in rural markets while keeping their transportation costs low to make margins. Also, they will have to come up with other ideas like bulk LPG marketing and to accept the truth that growth will happen only in rural areas and not in cities anymore.

It is estimated that for 2010-11, the government would be incurring total
under-recoveries of around Rs59,000 crore on essential petroleum products out of which Rs18,000 crore is only on LPG
,” the minister said.

Thus, with every gas cylinder which is sold, oil marketing companies like Indian Oil Corporation, which sells under the brand name Indane, BPCL and HPCL face a loss of Rs205-210 per cylinder.

Pratap Doshi, president, All India LPG Distributors Federation (AILDF), said, “We expect to reach 11.5 crore customers from the present 5 crore, which is a growth of 75%.

Though domestic LPG consumption in India is growing at a rate of 8% year-on-year, it is auto LPG which is zooming off with better growth figures.

India continues to be the fourth largest LPG consumer in the world after the US, China and Japan. With 90% of the consumption in domestic sector, India is the third-largest LPG consumer in domestic sector.

Auto LPG is growing in India at a rate of 33%, but Korea and Japan are top consumers of auto LPG.

James Rockall, managing director, World LPG Association said, “In India, LPG sales are more domestic-driven while in the US it is industries that consume LPG most. Also, we produce more LPG than we consume.”
India at present has an indigenous LPG production of 9 mtpa and imports of 3mtpa.

As distributors are headed for tough times, the AILDF recently conducted a study and it will submit the recommendations of the oil marketing industry by end of this month.

Doshi said that the body has requested the government to increase distributors’ commission. He did not divulge the increase proposed by the body.

The projected demand for LPG in India in 2011-12 is 15,132 thousand metric tonne (tmt) and by 2014-15 it is expected to go up to 19,223 tmt. An indigenous production of 10,309 tmt is expected next year, which may rise to 13,625 tmt by 2014-15.

The government expects the import requirement for next year at 4823 tmt and sees the numbers to fall in 2012 to 4525 tmt and jump up at to 5598 tmt by 2014-15.

4,817 Posts
Discussion Starter · #20 ·

gas has the potential to solve a lot of india's woes.
but you see even after 5 yrs we will get only 11.5 cr people connected and also if we want to depend less on imports then we need to get a big gas discovery(actually speed up gas exploration) or need RIL or ONGC to acquire big gas and oil assets overseas :cheers:
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