Rosneft’s Nayara begins fuel retail expansion in India

Source: LiveMint.com, May 09, 2019

Mumbai: Russian oil giant Rosneft-led Nayara Energy is expanding its fuel retail network, nearly two years after the company acquired Essar Oil’s assets, including its fuel retail outlets.

Rosneft in August 2017 bought Essar Oil for $12.9 billion and later renamed the company Nayara Energy, which now operates a 20-million-tonnes-a year oil refinery at Vadinar, Gujarat.

“As the fastest growing pan-India private fuel retail network, we are expanding retail presence at an extensive pace. Today we have more than 5,000 fuel retail outlets in the country and we plan to increase the network to over 7,000 by 2020,” said B. Anand, CEO, Nayara Energy in an emailed response.

The retail outlets have retained Essar’s brand name. Anand did not comment on the possibility of re-branding of the Essar outlets to Nayara. Read the rest of this entry »

ONGC gets Environment Ministry’s nod for Rs 240 crore project in Assam

Source: Business Standard, May 04, 2019

New Delhi: State-owned Oil and Natural Gas Corp (ONGC) has received the green nod to drill six development wells in Assam at an estimated cost of Rs 240 crore.

The Union Environment Ministry has given the environment clearance for six development wells in five mining lease blocks in Jorhat and Golghat districts, according to an official document.

The company had sought permission for drilling 12 development wells but it received clearance for six wells at present.

The clearance, which is subject to compliance of certain conditions, has been given after taking into consideration the recommendation of a green panel. Read the rest of this entry »

India eyes Guyana as Iran oil supplies end

Source: LiveMint.com, May 03, 2019

New Delhi: Faced with US sanctions on one of its top suppliers Iran, India is charting new geographies to meet its energy needs. The world’s third-largest oil importer is looking to secure an interest in Guyana’s oilfields that are being hailed as one of the world’s largest oil finds in recent times.

A six-month sanctions waiver for India and seven other countries to continue importing oil from Iran expired on Thursday, effectively shutting out Iranian crude beginning 3 May.

There is a growing interest in Guyana after ExxonMobil, one of the world’s largest publicly-traded energy firms, announced an estimated reserve of more than five billion oil-equivalent barrels in the offshore Stabroek block in the South American country. The expectations have also swelled because Guyana borders Venezuela, which has one of the world’s biggest oil reserves. Read the rest of this entry »

As US sanctions kick in, Indian refiners brace for costly crude

Source: LiveMint.com, May 01, 2019

Mumbai: With US sanctions on Iran and Venezuela coming into effect on 2 May and Saudi Arabia restraining crude oil output, Indian refiners have started looking for sources of new crude oil supply to feed their refineries with heavy sweet crude, in addition to importing from Iraq.

Refiners prefer the heavy sweet crude supplied by Iran and Venezuela, which helps them produce low-sulphur fuel oil ahead of new shipping emissions norms that kick in January 2020.

In 2018-19, India imported close to 10% of its domestic oil requirement from Iran. Though refiners said Iran offered commercially attractive oil import terms to India, including a 60-day credit period and discounts on oil and insurance, it will not have a major impact on revenue, since for India, it is only 10% of its total oil import. 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 »

Trump puts India in a fix over Iran oil and regional strategy

Source: The Economic Times, Apr 23, 2019

The Trump administration has put India in a tight energy fix and strategic tangle, ending the waiver that allowed New Delhi to buy Iranian oil even as it whittled down supplies from Teheran, a long-term source and partner in the region.

“The current waivers expire on May 2. There are no SRE (Significant Reduction Exemption) waivers that extent beyond May 2. Full stop,” US secretary of state Mike Pompeo announced at a state department briefing on Monday, signaling an end to a nearly year-long breathing room the Trump administration had given to eight countries, including India and China, after putting them on notice to stop buying Iranian oil.

“Any action or entity interacting with Iran should do its due diligence and err on the side of caution,” Pompeo warned, adding, “We will no longer grant exemptions. We’re going to zero. We’re going to zero across the board.” Entities that continue to trade with Iran will invite US sanctions. Read the rest of this entry »

India’s fuel demand rises 3.8% in Feb

Source: The Hindu Business Line, Mar 19, 2019

New Delhi: India’s fuel demand rose 3.8 per cent in February as free cooking gas connections spurred LPG consumption while petrol and diesel use continued to rise. Fuel consumption in February totalled 17.41 million tonnes as compared to 16.77 million tonnes in the same month last year, data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry showed.

Consumption rose for the third month in a row as ensuing general elections are likely to spike demand further. With retail prices moderating, petrol consumption soared 8 per cent to 2.25 million tonnes while the government push to give every household a cooking gas connection led to LPG demand spiking by 14.2 per cent to 2.2 million tonnes. Diesel, the most consumed fuel in the country, saw consumption rise by 2.7 per cent to 6.7 million tonnes.

Hectic campaigning is likely as India goes to poll over the next two months, which will boost the use of transportation fuel as political parties traverse the country courting voters.

General elections will be held in seven phases starting on April 11.

During February, aviation turbine fuel (ATF) sales were up 10.5 per cent to 6,80,000 tonnes.

With the government pushing for use of cleaner liquefied petroleum gas (LPG) as cooking fuel by giving free connections to poor women, kerosene usage dropped 12 per cent to 272,000 tonnes in February when compared to the year-ago period.

Naphtha sales were up by a steep 25.2 per cent at 1.28 million tonnes as power demand soared, while consumption of petroleum coke dropped 15.3 per cent to 1.58 million tonnes.