Oil & Natural Gas: News & Discussion

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Kakkaji
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Re: Oil & Natural Gas: News & Discussion

Postby Kakkaji » 22 Sep 2016 02:38

Government to fund major gas pipeline to boost eastern states

NEW DELHI: Government will partly fund a $2 billion gas pipeline project linking five eastern states to help kick-start economic growth in a region that has trailed the rest of the country, the oil minister said on Wednesday.

The 2,500-km pipeline is to be built by state-run GAIL(India) Ltd, and this will be the first time the government has offered finance for such a project as part of Prime Minister Narendra Modi's plan for more balanced development.

Oil Minister Dharmendra Pradhan said the government will meet 40 percent of the cost of the pipeline that will run through the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha, which together account for nearly 40 percent of India's 1.3 billion population.

"The prime minister wants energy justice for all," he said.

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Re: Oil & Natural Gas: News & Discussion

Postby Dumal » 09 Oct 2016 11:38

Anyone seen any good write-up/analysis of how the oil pricing strategy is evolving in India... With under- recoveries gone for diesel and petrol, the government has to only fund those for LPG and kerosene. Are they also using the favourable crude prices to buy back oil bonds from earlier? Would we set up any fund kitty to mitigate any future energy price shocks?

I ask this partly because SM always seems to have messages floating around about how wicked the government is to not let the oil price fall to Rs.20-30-40 etc but I haven't seen any complete messaging of the puts and takes from the side of the government.

Saw this [url]ppac.org.in[/url] which has good statistics, e.g., showing how much cheaper/subsidized are kerosene and LPG in India, compared to our neighborhood.

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Re: Oil & Natural Gas: News & Discussion

Postby nandakumar » 09 Oct 2016 13:50

The PP&Analysis cell website has estimates for crude import bill for 2016-17. It reckons that Indian basket of crude will cost around $43 per barrel. That means, for now, the Govt can price products close to the market and not have any political repercussions. The subsidy bill on kerosene is bloated because of diversion of kerosene for adulteration with diesel. The Govt strategy is to push LPG use in pooerer households and wean them away from use of kerosene under the PMUY Scheme. It will then politically be possible to set kerosene prices closer to diesel and eliminate illegal diversion. Though the Govt isn't saying it it would like to keep all petroleum products market price driven. It is getting there. If there is a massive crude price shock then pf course all bets are off.

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Re: Oil & Natural Gas: News & Discussion

Postby arun » 13 Oct 2016 14:24

India’s second strategic crude reserve at Mangaluru starts receving crude :

Clicky

13/10/2016

India took yet another step in building its strategic petroleum reserves by receiving the first parcel of crude for ISPRL’s cavern at Mangaluru on Wednesday. The parcel consisted of 0.26 million metric tonnes (MMT) of Iran Mix variety of crude brought on board very large crude carrier MT Dino. ISPRLs cavern here in one among three such strategic national reserves – the other two being at Padur in Udupi and Vishakapatnam in Andhra Pradesh.

Receiving the first parcel on behalf of MRPL for delivery in to the Mangaluru cavern, Nalin Kumar Kateel, Dakshina Kannada MP said strategic reserves of crude oil is in line with union government’s vision of keeping a reserve to meet national exigencies. Located on the East and West Coast of the country, the three underground rock caverns with total capacity of 5 MMT can store crude oil that can be used to run refineries for approximately for 14-days.

Rajan K Pillai, chief executive officer and managing director of ISRPL said the strategic reserve at Vishakapatnam with a capacity of 1.33MMT was commissioned in June 2015. Out of this, 1.03 MMT is strategic reserve and 0.3MMT is used by HPCL. Mangaluru cavern with a capacity of 1.5MMT has two compartments of 0.75MMT each and first of these compartments is being filled now. The union government will take a call on filling the other compartment.

Padur cavern with capacity of 2.5MMT has four compartments of 0.625MMT each. The work of laying a pipeline from Mangaluru cavern’s intermediary pumping station at Jokatte to Padur is underway and likely to be completed in another two-month time. Since Padur and Mangaluru caverns are inter-connected, crude can be pumped both ways, he said adding ISPRL is carrying out tests of Mangaluru cavern and this is likely to be completed in 45-days time.

About phase II of national strategic reserves, Rajan said the government is mulling to set up two at Chandikhol in Odisha and Bikaner in Rajasthan with estimated storage capacity of 10MMT at an estimated cost of Rs 10,000 crore. “Initial plan was to set up four strategic reserves of 12.5MMT capacity,” he said adding revised reserve plan is at a discussion stage. “There are no (government) approvals as yet for the second phase and process is on,” Rajan pointed.

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Re: Oil & Natural Gas: News & Discussion

Postby arun » 13 Oct 2016 14:40

Developments on the LPG Pipeline front.

1. Mangaluru-Bengaluru LPG pipeline set for commissioning : (Clicky)

Hindustan Petroleum Corporation Ltd., (HPCL) is geared up to commission the Mangaluru-Hassan-Yediyur/Mysuru LPG pipeline. Originally envisaged to be till Solur near Bengaluru, the pipeline now terminates at Yediyur. Line has been laid for the entire 355.22 km length, including Hassan-Mysuru and it has passed the mandatory inspection by the Oil Industry Safety Directorate.

Charging of the pipeline will commence on October 15 and full flow is expected by month-end, said highly placed sources in public sector oil companies. ………………….

Owner: Hindustan Petroleum Corporation Ltd.
Capacity: 2.279 million tones per annum
Project cost: Rs. 838.08 crore


2. Indian Oil Corp To Lay India’s Longest LPG Pipeline : (Clicky)

IOC plans to import LPG at Kandla in Gujarat and move it through the 1,987 kilometer pipeline to Gorakhpur {Eastern UP} via Ahmedabad (in Gujarat), Ujjain, Bhopal (in Madhya Pradesh), Kanpur, Allahabad, Varanasi and Lucknow (in Uttar Pradesh).

The pipeline will carry 3.75 million tons per annum of LPG, IOC said in an application to the sector regulator PNGRB seeking approval for the pipeline project.

LPG will be fed into the pipeline at Kandla port as well as IOC's Koyali refinery in Gujarat.

This will be the biggest LPG pipeline in the country.

GAIL currently operates a 1,415-km line from Jamnagar in Gujarat to Loni near here. The line carries 2.5 million tons of LPG annually.

GAIL also has a 623-km Vizag-Secunderabad pipeline. IOC also has a 274-km pipeline from Panipat in Haryana to Jalandhar.

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Re: Oil & Natural Gas: News & Discussion

Postby hanumadu » 13 Oct 2016 15:19

arun wrote:India’s second strategic crude reserve at Mangaluru starts receving crude :


It needed the NDA govt to come back to power to complete even the first SCR in vishakapatnam. When NDA left power in 2004, it was said, it would still need a few months to complete. And it was completed a few months after NDA2 came back to power. So what happened in the 10 years in between?

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Re: Oil & Natural Gas: News & Discussion

Postby arun » 14 Oct 2016 11:56

Russian entities to take controlling interest in Essar Oil Ltd. which owns a 20 MMTPA oil refinery at Vadinar in Gujarat and some related businesses in port, power generation and retailing outlets. Government of Russia owned Rosneft to pick up 49% stake for USD 7.5 Billion and Russia-based financial investor United Capital partners (UCP) to take a 24.2% for USD 2.2 Billion.

This deal, after including Singapore based Trafigura’s investment, will pip Vodafone’s USD 11.7 billion investment in India to get bragging rights of being biggest foreign direct investment inflow into India.

Rosneft, two others to buy 97.4% in Essar Oil : At $12-bn valuation, this will be India's largest FDI; deal to be announced on Saturday

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Re: Oil & Natural Gas: News & Discussion

Postby kmkraoind » 17 Oct 2016 19:34

This Essar deal will put Mukesh Ambani in an awkward position. Essar and Reliance have their biggest refineries in Gujarat, which were just a striking range for Pakis.

Now, Essar has gone to Russia, Pakis will think twice before hitting it, but Reliance has no such immunity (do not know if Bade Bhai has a cut deal with US/KSA for its security). What are chances of Bade Bhai singing Pak's agenda (to appease Pindi) and encouraging Congress Sickulars and Aman-Ki-Asha brigade?

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Re: Oil & Natural Gas: News & Discussion

Postby Bart S » 18 Oct 2016 01:20

kmkraoind wrote:This Essar deal will put Mukesh Ambani in an awkward position. Essar and Reliance have their biggest refineries in Gujarat, which were just a striking range for Pakis.

Now, Essar has gone to Russia, Pakis will think twice before hitting it, but Reliance has no such immunity (do not know if Bade Bhai has a cut deal with US/KSA for its security). What are chances of Bade Bhai singing Pak's agenda (to appease Pindi) and encouraging Congress Sickulars and Aman-Ki-Asha brigade?



We are not a 2-bit banana republic and hence do not have to think like one. We can defend ourselves just fine (including Jamnagar and other high value assets) without anyone having to prostrate to Russia or America.

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Re: Oil & Natural Gas: News & Discussion

Postby Atmavik » 19 Oct 2016 01:11

Image

Suraj
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Re: Oil & Natural Gas: News & Discussion

Postby Suraj » 19 Oct 2016 01:29

How Russia’s Rosneft outsmarted Saudi Arabia and Iran to buy Essar’s Vadinar refinery
A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market.

Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend. Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports.

“India will be the most important product-growth market over the next 25 years, making it important to Russia,” according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co.

With the Essar deal, Rosneft is targeting a market of 1.3 billion people that imports more than 80 percent of its crude requirements and which is forecast by the International Energy Agency to be the world’s fastest-growing oil consuming nation through 2040. The country has emerged as a bright spot for global demand as the quickest economic expansion among major economies spurs increased use of trucks, cars and motorbikes.

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Re: Oil & Natural Gas: News & Discussion

Postby Rishirishi » 19 Oct 2016 05:37

Suraj wrote:How Russia’s Rosneft outsmarted Saudi Arabia and Iran to buy Essar’s Vadinar refinery
A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market.

Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend. Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports.

“India will be the most important product-growth market over the next 25 years, making it important to Russia,” according to Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co.

With the Essar deal, Rosneft is targeting a market of 1.3 billion people that imports more than 80 percent of its crude requirements and which is forecast by the International Energy Agency to be the world’s fastest-growing oil consuming nation through 2040. The country has emerged as a bright spot for global demand as the quickest economic expansion among major economies spurs increased use of trucks, cars and motorbikes.



What are the Ruias going to do with all that cash? Selling of the refinery could have been one of the smartest moves ever, if car batteries overtake the market.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 19 Oct 2016 06:21

^^^^^^^

The ruias hope to retire some debt.

Even after all the cash from this deal, they are still hocked up to their eyeballs.

Their steel business may be the next to go, eventually.

congi gone, company gone!!

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Re: Oil & Natural Gas: News & Discussion

Postby Prasad » 19 Oct 2016 15:44

Whaat is the congi connection?

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Re: Oil & Natural Gas: News & Discussion

Postby Bart S » 20 Oct 2016 04:32

chetak wrote:^^^^^^^

The ruias hope to retire some debt.

Even after all the cash from this deal, they are still hocked up to their eyeballs.

Their steel business may be the next to go, eventually.

congi gone, company gone!!



They made a pretty penny on the sale of Hutch stake to Vodafone as well, but seem to have blown it by trying to expand too much too quickly and taking on a lot of debt. The timing of their investments and the recession did not help either.

However the upside of this deal is not so much for the Ruias but for their lenders, especially ICICI and Standard Chartered.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 20 Oct 2016 21:53

Prasad wrote:Whaat is the congi connection?


just like mallaya got his "funding".

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Re: Oil & Natural Gas: News & Discussion

Postby disha » 27 Oct 2016 01:38

Rishirishi wrote:Selling of the refinery could have been one of the smartest moves ever, if car batteries overtake the market.


India will take at least another 25 years before it cuts over to a very large scale EV market. And even after that, large vehicles including aircrafts will still require refined petroleum.

So yes., Indian market is still a growth market for oil. The good thing about this deal is the broad based re-investment coming back into India. And for infrastructure and not for madrasas.

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Re: Oil & Natural Gas: News & Discussion

Postby sankum » 27 Oct 2016 05:57

I expect transition to be fast by 2030-35 to total EV market as it is four times energy efficient than present automobile Industry and will be enforced by courts if not government. The only tipping point will be economics.

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Re: Oil & Natural Gas: News & Discussion

Postby Rammpal » 27 Oct 2016 09:32

sankum wrote:I expect transition to be fast by 2030-35 to total EV market as it is four times energy efficient than present automobile Industry and will be enforced by courts if not government. The only tipping point will be economics.


Enforced by g'mint and/or courts, even if it doesn't make economic sense ?? :roll:

And why exclusively EV ?

Aren't there other options available as well ?? :|

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Re: Oil & Natural Gas: News & Discussion

Postby sankum » 27 Oct 2016 11:00

Battery tech will finally become economical whether it is 2020 or 2025 cant say. Courts will force the change to EV for the sake of pollution even if government is loathe.

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Re: Oil & Natural Gas: News & Discussion

Postby wig » 01 Nov 2016 11:06

http://timesofindia.indiatimes.com/indi ... 156458.cms
the arabs appear to charge a premium over the normal price of oil if supplied to us. strange
Oil 'apartheid' that India faces at the hands of exporting nations has been flagged by successive oil ministers but the then Prime Minister Manmohan Singh had "reprimanded" his Petroleum Minister Murli Deora when it was raised with the industry kingpin Saudi Arabia in 2010, claims a new book.
For decades, Middle East oil producers charged up to $6 per barrel more for the oil they sold to the Asian customers like India, than what they billed US or European refiners.
The so-called 'Asian Premium', that creeped in through the differential official selling prices (OSPs) countries like Saudi Arabia set by adjusting for "regional variations", has led to billions of dollars being paid by India with no official record of the payments, the book claims.
In the book, The Lobbyists: Untold Story of Oil, Gas and Energy Sector, senior journalist Rajeev Jayaswal says the then Oil Minister Mani Shankar Aiyar first raised the "price discrimination between Asian buyers vis-a-vis European and US refiners" at the OPEC seminar in Vienna in September 2004.
"Interestingly, the issue of Asian premium was well known to all, but this matter was never raised unequivocally in any bilateral discussions. Asian premium was not officially documented or officially invoiced. This matter was always under wraps and many Gulf-based producers, particularly Saudi Arabia, publically denied its existence," says the book.
Like Aiyar, his successor Murli Deora also tried to raise the issue when he was part of Singh's official delegation on a visit to Saudi Arabia in February 27-March 1, 2010, with King Abdullah bin Abdulaziz Al Saud.
While the King, according to the book, stated that he was not aware of this matter, Deora was later "reprimanded for raising an unpleasant matter, which was not on the agenda".
Deora, the book claimed, confirmed the incidence and that he was annoyed by the PM's attitude. "We did not go to Saudi Arabia to eat food and enjoy. As an oil minister it was my duty to raise issues. He should have supported me there," it quoted Deora as having said in March that year.
Indian refiners believe that if crude was sold at par with their American and European counterparts, their refining margins would increase by up to $2 per barrel.
India imported 202.85 million tonne of crude oil in 2015 -16 for Rs 4.16 lakh crore.

After coming to power, the Modi government too has taken up this matter. On June 3, 2015, the incumbent Oil Minister Dharmendra Pradhan raised this issue at an OPEC seminar.
In the book, Jayaswal, who currently is business editor for Amar Ujala newspaper, presents an account of the machinations of the corridors of power, India's quest for energy security and internecine warfare between different interest groups.

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Re: Oil & Natural Gas: News & Discussion

Postby Prem » 17 Nov 2016 04:01

Permian’s Wolfcamp formation called biggest shale oil field in U.S.
http://www.star-telegram.com/news/busin ... rylink=cpy

In a troubled oil world, the Permian Basin is the gift that keeps on giving.One portion of the giant field, known as the Wolfcamp formation, was found to hold 20 billion barrels of oil trapped in four layers of shale beneath West Texas. That’s almost three times larger than North Dakota’s Bakken play and the single largest U.S. unconventional crude accumulation ever assessed, according to the U.S. Geological Survey. At current prices, that oil is worth almost $900 billion.The estimate lends credence to the assertion from Pioneer Natural Resources CEO Scott Sheffield that the Permian’s shale could hold as much as 75 billion barrels, making it second only to Saudi Arabia’s Ghawar field. Irving-based Pioneer has been increasing its production targets all year as drilling in the Wolfcamp produced bigger gushers than the company’s engineers and geologists forecast.“The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” Walter Guidroz, coordinator for the geological survey’s energy resources program, said in the statement.ConocoPhillips, the world’s largest independent oil producer by market value, increased its estimate for the size of its Wolfcamp holdings on Nov. 10 to 1.8 billion barrels from 1 billion last year. A day earlier, Concho Resources CEO Timothy Leach told investors and analysts that two recent wells it drilled in the Wolfcamp were pumping an average of 2,000 barrels a day each.Diamondback Energy Inc. disclosed last week that it has been drilling 10,000-foot sideways wells in the Wolfcamp. Production from the wells has been as high as 85 percent crude, according to the Midland, Texas-based explorer.The Wolfcamp shale also holds 16 trillion cubic feet of natural gas and 1.6 billion barrels of gas liquids, the geological survey said in a statement on Tuesday.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 18 Nov 2016 11:18

Saudi Arabia vs Russia: How Rosneft's $13 billion Essar deal almost fell apart

Highlights

Saudi state energy firm Aramco had also bid for Indian refiner Essar.
Rosneft-Essar deal was salvaged due to involvement of Putin and Modi.
The tussle for Essar shows growing battle for oil markets between Russia and Saudi Arabia.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 18 Nov 2016 11:36

Austin wrote:Saudi Arabia vs Russia: How Rosneft's $13 billion Essar deal almost fell apart

Highlights

Saudi state energy firm Aramco had also bid for Indian refiner Essar.
Rosneft-Essar deal was salvaged due to involvement of Putin and Modi.
The tussle for Essar shows growing battle for oil markets between Russia and Saudi Arabia.


Good. we have successfully second sourced our oil supply chain from a completely non gulf source

We also seem to have become strategically pragmatic and very selective as to who comes into our economic risk calculations by diversifying oil sources.

Ruskies will have to sell at prices prevailing in India or simply export the bulk of their product from their Indian refinery

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 07 Dec 2016 11:28

Russia in talks on 3.5 mln tonnes of LNG supply to India since 2018 — ministry

Business & Economy
December 06, 21:27 UTC+3
India is attempting to diversify LNG supplies and examines all the available offers

CARACAS, December 6. /TASS/. Russia is holding talks on supplies of approximately 3.5 mln tonnes of liquefied natural gas to India from 2018, Deputy Energy Minister Yuri Sentyurin told TASS on Tuesday.

"Supplies are projected to start from 2018 in the annual volume of about 3.5 mln tonnes of LNG but clarifications are made again and again in this regard," the official said.

India is attempting to diversify LNG supplies and examines all the available offers, Sentyurin said. Nevertheless, trial deliveries have already been completed, he added.


More:
http://tass.com/economy/917225

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 07 Dec 2016 11:30

chetak wrote:Ruskies will have to sell at prices prevailing in India or simply export the bulk of their product from their Indian refinery


If this is long term deal then there are price sweetners and discounts as part of deal.

Russkies export Ural blend that is different from Saudi Light Crude ....... Refineries to blend/process are different.

On the whole diversefication for energy supplies are good

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 08 Dec 2016 11:36

19.5% of Russian oil giant Rosneft sold in ‘biggest privatization deal of 2016’

https://www.rt.com/business/369554-rosn ... tion-deal/
The sale of Russia’s largest oil company Rosneft's share package to the natural resource trader Glencore International and a Qatari sovereign wealth fund for over $11 billion has become the biggest privatization deal of 2016, Russian President Vladimir Putin said.

“That is the biggest privatization deal, the biggest sale and acquisition in the world’s oil and gas sector in 2016,” the president said, referring to the Rosneft share sale during the meeting with the Rosneft CEO, Igor Sechin, a statement published on the official Kremlin website said.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 08 Dec 2016 11:38

Rosneft to close $10 bn Essar Oil, Vadinar refinery deal in a few weeks

http://www.business-standard.com/articl ... 241_1.html
Russian oil major Rosneft on Wednesday said that the company will close $10.9 billion (Rs 72,800 crore) acquisition of Essar Oil and Vadinar refinery within a few weeks.

“We are closing the deal of Essar Oil and Vadinar refinery within a few weeks,” said a Rosneft official, president and chairman of Rosneft told the media on the sidelines of Petrotech Summit in New Delhi. This will include acquisition of Essar Oil’s 20 million tonne (MT) refinery in Gujarat and its retail outlets.


The Russian oil major is doing the acquisition in a consortium of oil trading firm Trafigura and private investment group United Capital Partners. The consortium is set to pay an additional of $2 billion (Rs 13,300 crore) for the acquisition of Vadinar Port too. The deal, which will be the largest foreign direct investment in India till date, was announced in October this year.

“Our relationship with India has two aspects. Recently, oil companies like Indian Oil Corporation, Oil India and ONGC had acquired stakes in our Vankor and Tass-Yuryakh oil fields. Now, we are also closing in on the acquisition of Vadinar refinery, which is one of the top 10 refineries in the world,” the official added. The Indian companies will hold 29.9 per cent stake in Taas-Yuryakh oilfield in East Siberia for $1.12 billion and 23.9 per cent in the Vankor oilfield for $2.02 billion.

The Vankor deal is set to provide 6.56 million tonnes of oil equivalent (mmtoe); Taas-Yuryakh may feed 1.5 mmtoe by 2019 to the oil-starved India. He added that though no new deals are in the offing, his company will always be interested in partnering with Indian companies.

Beginning from January, Opec (Organization of the Petroleum Exporting Countries) is set to go for an output cut of 1.2 million barrels per day (bpd), while non-OPEC countries too are expected to reduce production by 6,00,000 bpd. Being the biggest non-OPEC producer, Russia committed to cut oil production by 3,00,000 bpd. Rosneft had earlier expressed dis-interest in cutting crude oil production but now it says, “The Russian Federation is the major shareholder in our company and we will act according to the way the major shareholder asks us to do.”

Russia-India pipeline to take Chinese route

In what may be a rapid twist in the relationship between arch rivals India and China, the world’s most expensive gas pipeline that India and Russia are planning may take the Chinese route.

According to an official close to the development, Gazprom and ONGC Videsh are in talks to bring the gas through the China route. The plan is that Russia may provide gas to China and in return, the existing pipeline between Myanmar and China can reverse its flow. “If both China and Myanmar agree to this, we will have a connector between India and Myanmar,” said N K Verma, Managing Director of ONGC Videsh Ltd.

Both Engineers India Ltd and Gazprom PJSC are jointly preparing a blueprint for laying a gas pipeline. Both India and Russia had recently agreed to construct $25 billion natural gas pipeline from Siberia to India. “Among the options like Himalayas, TAPI route and Iran route that we considered, the Chinese route appears to be the most favourable if all the countries agree to it,” Verma added.

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Re: Oil & Natural Gas: News & Discussion

Postby arshyam » 08 Dec 2016 13:14

Some serious consolidation happening here. Any industry watchers here who can share some gyan for what it means to us? I expected Essar to be considered as a strategic asset and not saleable to a foreign entity, and was a bit unhappy about the sale. Not sure what GoI's plans are in this regard.

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Re: Oil & Natural Gas: News & Discussion

Postby Rishirishi » 09 Dec 2016 05:30

arshyam wrote:Some serious consolidation happening here. Any industry watchers here who can share some gyan for what it means to us? I expected Essar to be considered as a strategic asset and not saleable to a foreign entity, and was a bit unhappy about the sale. Not sure what GoI's plans are in this regard.


Basically it is only a matter of time before cars and even trucks may run on batteries. Solar and wind will replace oil and gas for industry.

That is why Essar is selling this off. The purchasers have cash and desperately need to sell oil in futre. Hence they are purchasing refining capacity to push their own oil for as long as possible.

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Re: Oil & Natural Gas: News & Discussion

Postby SaraLax » 13 Dec 2016 20:28

Rishirishi wrote:
arshyam wrote:Some serious consolidation happening here. Any industry watchers here who can share some gyan for what it means to us? I expected Essar to be considered as a strategic asset and not saleable to a foreign entity, and was a bit unhappy about the sale. Not sure what GoI's plans are in this regard.


Basically it is only a matter of time before cars and even trucks may run on batteries. Solar and wind will replace oil and gas for industry.

That is why Essar is selling this off. The purchasers have cash and desperately need to sell oil in futre. Hence they are purchasing refining capacity to push their own oil for as long as possible.


So .. where does this leave the 'Navaratna' PSUs like ONGC, IOC, BPCL, HPCL, OIL and etc - who all have big refineries and are still putting up bigger refineries in some states like MH/GUJ/AP and etc ?. None of these PSUs have shown big time inclination towards newer energy sources like Solar or batteries for same and etc.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 13 Dec 2016 20:58

kmkraoind wrote:This Essar deal will put Mukesh Ambani in an awkward position. Essar and Reliance have their biggest refineries in Gujarat, which were just a striking range for Pakis.

Now, Essar has gone to Russia, Pakis will think twice before hitting it, but Reliance has no such immunity (do not know if Bade Bhai has a cut deal with US/KSA for its security). What are chances of Bade Bhai singing Pak's agenda (to appease Pindi) and encouraging Congress Sickulars and Aman-Ki-Asha brigade?


people are very smart and the pakis, like musharraf and nawaz have been paid off.

any other joker occupying the chair will also be paid off.

big boys don't let piddly wars affect them.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 13 Dec 2016 21:08

SaraLax wrote:
Rishirishi wrote:
Basically it is only a matter of time before cars and even trucks may run on batteries. Solar and wind will replace oil and gas for industry.

That is why Essar is selling this off. The purchasers have cash and desperately need to sell oil in futre. Hence they are purchasing refining capacity to push their own oil for as long as possible.


So .. where does this leave the 'Navaratna' PSUs like ONGC, IOC, BPCL, HPCL, OIL and etc - who all have big refineries and are still putting up bigger refineries in some states like MH/GUJ/AP and etc ?. None of these PSUs have shown big time inclination towards newer energy sources like Solar or batteries for same and etc.


the death grip on vijay mallaya's testimonials has automatically caused much pain in a lot of nether regions of similar defaulter's.

The ruia's have sold the refinery to pay off their debts to the banks.

many others in similar sinking boats are also looking at asset sales to pay back loans. Modi has sharp teeth and his bite is fearsome.

The ruskies have gained a complete package like LNG terminal, refinery and retail petroleum assets. They had to beat off the saudis to gain control.

vehicle batteries etc in India are a long way off. :)

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 13 Dec 2016 21:14

arshyam wrote:Some serious consolidation happening here. Any industry watchers here who can share some gyan for what it means to us? I expected Essar to be considered as a strategic asset and not saleable to a foreign entity, and was a bit unhappy about the sale. Not sure what GoI's plans are in this regard.


It's only russian oil that is going to flow thru this refinery which the ruskies will themselves bring.

The GOI has de risked oil supply by ensuring a reliable second source without much cost to itself.

The saudis would be extremely wary of not efficiently servicing the Indian market because of mullah politics.

If they lose market share to the ruskies in India, they will not get it back as the ruskies will fill the gap.

we have also obliged the ruskies and kept them happy for international support.

We could always jack up import duties, should one of them not behave, no??

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 14 Dec 2016 10:57

During Kargil War if I recollect the Ambanis had made a deal with Musharaf that should there be a war between India and pakistan they would not attack Reliance Jamnagar facility

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 14 Dec 2016 11:19

Austin wrote:During Kargil War if I recollect the Ambanis had made a deal with Musharaf that should there be a war between India and pakistan they would not attack Reliance Jamnagar facility


Even their security is israeli dominated. They have reached into the IA and "liberated" very specific people identified as being useful to them.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 15 Dec 2016 08:22

chetak wrote:
Austin wrote:During Kargil War if I recollect the Ambanis had made a deal with Musharaf that should there be a war between India and pakistan they would not attack Reliance Jamnagar facility


Even their security is israeli dominated. They have reached into the IA and "liberated" very specific people identified as being useful to them.


I didn't get you ? Who liberated from whom.

If you mean personal security , don't know about Israel but their personal bodyguard are ex SPG folks

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Re: Oil & Natural Gas: News & Discussion

Postby nachiket » 16 Dec 2016 00:30

Austin wrote:During Kargil War if I recollect the Ambanis had made a deal with Musharaf that should there be a war between India and pakistan they would not attack Reliance Jamnagar facility

And what did the Ambani's promise Musharraf in return according to this rumor?

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 16 Dec 2016 10:06

^^ Not sure what sort of pvt deal they had with Musharaf but considering its their multibillion dollar largest facility close to Pak border , they would have made sure it is not on the crosshair of pakistan



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