Import dependence rises as crude oil & gas output declines

Source: The Economic Times, Aug 04, 2019

NEW DELHI: Crude oil and gas output has declined in the first quarter of the current fiscal year, further increasing India’s dependence on imports to meet its energy needs.

Crude oil output fell 6.8% to 8.2 million metric tonnes (MMT) while gas slipped 0.5% to 8.03 billion cubic meters (BCM) in the first quarter from a year earlier. This raised India’s import dependence in oil to 85.2% from 83.8% in the yearago quarter. In gas, it increased to 50.4% from 48.7%.

Crude oil output in April-June shrank 4.74% from a year earlier for ONGC and 6.8% for Oil India. For private operators, the fall was sharper at 6.8%. Natural gas production rose 3.7% and 1.5% at ONGC and Oil India respectively during the quarter but this was more than offset by declines at private operators such as Reliance Industries and Vedanta where output slipped 18%. Read the rest of this entry »

India explores for crude oil on sweeter terms after end of Iran oil waiver

Source: LiveMint.com, Apr 23, 2019

New Delhi: India is trying to leverage its robust ties with West Asian crude oil producers such as Saudi Arabia, Kuwait and the United Arab Emirates (UAE) to source additional volumes at terms similar to those of its annual contracts in a bid to avert any sharp rise in its domestic oil prices.

India, the world’s third-largest oil importer, is in discussions with oil producers in West Asia as well as in other geographies to procure a total of about 15 million tonnes of extra crude over the year to urgently bridge a supply gap that will be caused by the exit of Iran from its energy basket.

US secretary of state Mike Pompeo on Monday announced that the Donald Trump administration would no longer grant exemptions to some countries to import Iran oil with the conditional waiver set to expire on 2 May.

India’s attempt to boost crude supplies from the Gulf nations also comes at a time when they plan to increase their investments in India. Read the rest of this entry »

ONGC eyes upstream linked power generation, refining projects abroad

Source: LiveMint.com, Mar 27, 2019

Mumbai: State-run Oil and Natural Gas Corp. Ltd (ONGC) plans to leverage its units, ONGC Tripura Power Co. Ltd (OTPC), Hindustan Petroleum Corp. Ltd (HPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL), to win upstream linked electricity generation and refining projects overseas, said a senior company executive. The move is likely to help boost India’s energy security.

India is likely to continue to depend on fuel imports as domestic production has been unable to cope with rising demand. ONGC, which accounts for 73% of India’s oil and gas output, acquired the government’s stake in HPCL for ₹36,915 crore last year.

ONGC has, however, been facing concerns over its production performance. Its gas output grew 6.6% in the third quarter as compared to the corresponding period in the last fiscal, even as crude oil production fell around 5%. The government recently asked ONGC and Oil India Ltd to sell 66 of their small oil and gas fields to private firms.

“If there is a refining-linked upstream opportunity, we will explore it. We wouldn’t be doing a stand-alone refining play. We are open to it,” said the ONGC official mentioned above, requesting anonymity. Read the rest of this entry »

Far from reducing imports, India’s oil and gas production has slumped

Source: Business Standard, Feb 2019

At an energy conference in New Delhi in March 2015, Prime Minister Narendra Modi had set out a road map for reducing India’s crude oil imports by 10 per cent by 2022. This at a time when almost 77 per cent of the country’s fuel requirements were met via imports.

Four years later, the “2022 dream” appears to be a distant reality. The share of imports, in fact, increased to 81.7 per cent in 2016-17, 82.9 per cent in 2017-18 and 84.7 per cent in 2018-19, according to the latest available government data.

This is despite the ministry of petroleum and natural gas (MoPNG) taking all possible policy measures — including steps to ramp up production, reforming the Hydrocarbon Exploration Licensing Policy, or HELP, and taking a series of de-bottlenecking measures in NELP, or New Exploration Licensing Policy, and pre-NELP regimes. Read the rest of this entry »

ONGC to bid out 54 fields to private sector companies in six months

Source: Business Standard, Feb 20, 2019

New Delhi: State-run Oil and Natural Gas Corporation (ONGC) and Oil India (OIL) are likely to come out with bids offering their fields to private sector companies in the next six months.

At least 54 fields included in the initial list belong to the country’s largest oil and gas producer ONGC. The Union Cabinet allowed the two oil companies to bring in private sector players for increasing production, through introduction of new technology.

“The enhanced production profile ONGC and OIL are working on include about 113 fields. Of this, we have enhanced oil recovery or improved oil recovery plans for at least 50 per cent of the fields. The remaining will become part of this policy. They comprise 2-3 per cent of the existing production of these companies,” said an official, who did not want to be named.

More than five fields of OIL are likely to be on offer. The two companies will soon appoint a consultant and the modalities of bidding will be worked out based on its report. Read the rest of this entry »

Govt clears reform to enhance domestic oil and gas exploration

Source: Business Standard, Feb 20, 2019

New Delhi: The Union government on Tuesday decided to offer the private sector bigger oil and gas areas that belong to its companies Oil and Natural Gas Corporation and Oil India on relaxed conditions.

“To enhance production from existing nomination fields of ONGC and OIL, enhanced production profile will be prepared by both PSUs. For production enhancement, bringing new technology, and capital, national oil companies will be allowed to induct private sector partners,” said a government press release. Read the rest of this entry »

India becomes top buyer of Venezuelan crude in February, imports jump 66%

Source: Business Standard, Feb 16, 2019

India is feasting on Venezuelan oil, after the US imposed a de facto ban on crude imports from the Latin American nation.

While flows to the US came to a halt, India became the No. 1 buyer of Venezuelan crude in the first half of February, with imports jumping 66 per cent to 620,000 barrels a day. Indian refiners Reliance Industries and Nayara Energy, which is backed by Rosneft Oil Co PJSC, are driving the boost. Read the rest of this entry »