ONGC makes massive new discovery at Mumbai High; find may pep up production for years

Source: LiveMint.com, Sept 21, 2017

New Delhi: State-run hydrocarbon explorer ONGC has found reserves to the west of its Mumbai High offshore fields, with initial estimates suggesting the new discovery’s size to be about 20 million tonnes of oil equivalent (mtoe). The firm’s output has been stagnating over the last many years with annual oil production in the range of 25-26 million tonnes (mt) and natural gas output around 23 billion cubic metres (bcm). Though the zones at the well WO 24-3 are still under assessment, the new find is believed to be big enough to pep up the firm’s production in coming years. Mumbai High in the Arabian sea annually produces about 10 mtoe. The newly discovered reserves are located 10 km west of Mumbai High, which is 180 km off the city’s coast. Read the rest of this entry »

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Reliance Industries plans major expansion at world’s largest oil refinery complex

Source: The Economic Times, Sept 21, 2017

NEW DELHI: Reliance Industries (RIL) is keeping its options open to significantly expand its giant Jamnagar refinery in the long run depending on fuel demand, but it has not taken any investment decision for such a project, according to industry sources and an agency report.

Jamnagar already has a capacity to process 60 million tonne of crude oil a year, making it the biggest refining complex in the world.

The company can expand this capacity to 100 million tonne a year by 2030 at an estimated cost of $10 billion, Reuters reported, citing two sources that the news agency did not identify. Read the rest of this entry »

Govt plans larger oil auctions as Narendra Modi pursues import cuts

Source: LiveMint.com, Sept 14, 2017

New Delhi: India will offer larger areas with higher oil and natural gas reserves in the next auction of discovered fields later this year as Prime Minister Narendra Modi’s government seeks to curtail rising crude oil imports.“The next round would be meatier, bigger and players can expect even better fields,” Atanu Chakraborty, head of oil regulator Directorate General of Hydrocarbons (DGH), said in an interview. “The reserves are twice of that we offered in the first auction round, on a very conservative estimate.”

India last year offered 67 small oil and gas fields holding about 625 million barrels of reserves in its first auction in six years allowing new entrants such as drugmakers and engineering companies to try their hand at boosting local production. The government also relaxed rules by allowing pricing freedom for oil and gas and a uniform policy for extraction of all hydrocarbons under a single license to encourage investments.

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Cabinet approves Rs3,000 crore project for oil, gas reserves appraisal

Source: LiveMint.com, Sept 12, 2017

New Delhi: The Union Cabinet on Tuesday approved a Rs3,000 crore project to acquire seismic data for prospecting of oil and natural gas reserves.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved a project to acquire 48,243 line kilometre (LKM) 2D seismic data for appraisal of Indian sedimentary basins where limited data is available, an official statement said in New Delhi.

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Petronas eyes bigger slice of India energy pie

Source: The Economic Times, Aug 10, 2017

MUMBAI: Malaysian governmentowned Petroliam Nasional Berhad, better known as Petronas , is looking to expand its operations in India by entering into more longterm contracts for supply of liquified natural gas (LNG) and scaling up its lubricants business.

The company, which has been in business with Indian companies for over two decades, is for the first time setting up headquarters for all its local businesses in Delhi, and has appointed a general manager to head it.

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India launches first R&D facility for high-end fuels, gas

Source: The Economic Times, July 23, 2017

NEW DELHI: India has launched its first petroleum Research & Development (R&D) facility for testing high-end BS-VI quality fuel emissions, according to an official here.

Operated by state-run Indian Oil Corp (IOC), the R&D facility is designed to test all types of fuel including petrol, diesel, ethanol-blended petrol, bio-diesel, CNG, LNG, hydrogen-CNG and 2G-ethanol blends to ensure they meet the superior BS-VI norms that are to be implemented across the country by April 2020, a Petroleum Ministry statement said.

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HPCL-ONGC deal to lead to mega projects, consolidation in oil & gas sector

Source: Business Standard, July 20, 2017

The Union Cabinet has approved the plan to sell the government’s 51 per cent stake in state-refiner HPCL to explorer ONGC.

For the government and economy, this move has multiple benefits. This single deal alone would fetch about 41 per cent of the total divestment target of Rs 72,500 crore, assuming that the deal happens at HPCL’s current market cap of Rs 58,500 crore. Though the management control would stay with the government through ONGC, in which it holds a 68.07 per cent stake, technically, the government’s hold over HPCL would be reduced from 51.11 per cent to 35 per cent (68.07% of 51.11%) effectively.

This consolidation could facilitate mega-refinery projects in the country – joining hands for mega oil & gas projects becomes a time-consuming process for independent entities. There were a few mega-project proposals jointly announced by independent PSUs in the past but most of them never took off. This move also paves the way for more consolidations and stake sales in the oil & gas sector.

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