Oil & Natural Gas: News & Discussion

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Kakkaji
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Re: Oil & Natural Gas: News & Discussion

Postby Kakkaji » 16 Sep 2018 07:26

Philip wrote:On the contrary we should increase supplies from Iran if the price is right.Oil from the cheapest supplier.India is not a puppet state of ghe US.


Fine, but how will you pay them? With the US sanctions you will not be able to pay them in dollars. Iranians will not accept the full payment in Rupees.

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Re: Oil & Natural Gas: News & Discussion

Postby Mort Walker » 16 Sep 2018 08:13

Kakkaji wrote:
Philip wrote:On the contrary we should increase supplies from Iran if the price is right.Oil from the cheapest supplier.India is not a puppet state of ghe US.


Fine, but how will you pay them? With the US sanctions you will not be able to pay them in dollars. Iranians will not accept the full payment in Rupees.


As Philip would say, pay them in Rubles, but the Iranians won't accept those either. They want USD or the Euro.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 16 Sep 2018 13:12

Kakkaji wrote:
Philip wrote:On the contrary we should increase supplies from Iran if the price is right.Oil from the cheapest supplier.India is not a puppet state of ghe US.


Fine, but how will you pay them? With the US sanctions you will not be able to pay them in dollars. Iranians will not accept the full payment in Rupees.


Euro , Europe is commited to the nuclear deal and will buy Iran energy and pay in Euros

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Re: Oil & Natural Gas: News & Discussion

Postby Gyan » 18 Sep 2018 09:46

The method to buy Iranian crude would-be to designate some refineries as specific consumers of Iranian crude and Park the money that is to be paid to Iran in Russia. That is to say that some refineries will try to stay outside the US financial system and its reach and start consuming Iranian crude.
The payments will be made in US dollars at the instance of Iran directly to the creditor nations from whom Iran is purchasing goods like Russia, China etc.
While the purchase of Iranian crude will go down a bit but simultaneously International crude prices will go up. there will be major inconvenience for everybody but the net result on Iran would be very minimal.
In 1980s Saudi Arabia brought down the crude oil prices to US dollar 10 per barrel, but now the Saudi and American lobby want to keep the oil prices high. Hence Russia, Iran and Iraq will remain strong and outside USA influence & will be joined by Libya, Algeria, Venezuela, Syria, Qatar etc

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Re: Oil & Natural Gas: News & Discussion

Postby Lisa » 19 Sep 2018 01:08

Austin wrote:Euro , Europe is commited to the nuclear deal and will buy Iran energy and pay in Euros


SWIFT will not permit payments to Iran so how do you see this working.

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Oil & Natural Gas: News & Discussion

Postby Peregrine » 20 Sep 2018 20:10

X Posted on the Iran News and Discussions Thread

India set to pay for Iranian oil using rupee from November: Sources – Reuters

NEW DELHI: India will settle payments for Iranian oil using through local banks starting in November as will make it difficult to settle trades through European banks, two industry sources said on Thursday.

In May, US President Donald Trump withdrew from a 2015 nuclear accord with Iran and ordered the renewal of US sanctions. Some sanctions took effect from August 6 while those affecting the oil and banking sectors will start from November 4.

"We are bracing up for any eventuality we have to make a payment and we don't want to default on making payments," one of the sources said.

The sources said India has selected UCO Bank and IDBI Bank for facilitating payment to Iran.

Indian refiners are currently using State Bank of India and Germany-based Europaeisch-Iranische Handelsbank AG to buy Iranian oil in euros. SBI has told refiners it would stop handling Iran payments from November.

The second source said after the United States announced it would re-impose sanctions in May, Iran has already received payments for some cargoes in rupee.

Reuters in June reported that India is looking to revive the its earlier rupee payment mechanism with Iran. During the previous sanctions regime, India adopted a barter-like scheme to buy oil from Iran while the Middle Eastern country used rupees to import goods from India.

"Previously we settled 45 per cent of our trade in rupees this time it could be 100 per cent. We have to mutually decide the number," said the first source.

India, Iran's top oil client after China, is still seeking some exemptions to the sanctions from the US though some refiners have already curtailed purchases because of insurance issues
tied to the sanctions.

IDBI did not respond to requests for a comment while UCO Bank's Managing Director R K Takkar did not respond to phone calls seeking comment

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 16 Oct 2018 09:53

PM's Appeal To Oil-Producing Nations Gets A Negative From Saudi Minister

https://www.ndtv.com/india-news/pms-app ... ome-livetv

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 24 Oct 2018 11:51

India’s Arctic energy partnership with Russia

https://www.lowyinstitute.org/the-inter ... hip-russia

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 23 Nov 2018 03:10

70% of Indians to have city gas connection in 3 years.

Reiterating his commitment to developing a gas-based economy, Prime Minister Narendra Modi said that in the next 2-3 years, 70 per cent of the country’s population will be connected with the city gas distribution (CGD) network.

Speaking at an event organised to lay the foundation stones for multiple CGD projects awarded during the ninth round of bids, Modi said, “More than 400 districts covering 70 per cent of India’s population will have access to the CGD facility in the next 2–3 years after the completion of work under the ongoing 10th round of bidding.”

The CGD projects flagged off by Modi on Thursday are spread across 65 geographical areas (GAs) in 129 districts. These were awarded under the ninth bidding round. During the event, the Prime Minister also launched the 10th CGD Bidding Round in 50 GAs spread over 124 districts in 14 States covering 24 per cent of the country’s population.

The CGD network is in keeping with what had said in 2015 at the Urja Sangam, a global meet on hydrocarbons.

At the meet, he had called for enhancing the domestic production to reduce the energy import bill of the country by at least 10 per cent by 2022. He had also said that his government aimed to extend the reach of Piped Natural Gas (PNG) to one crore houses in the next five years.

Growing coverage

In 2014, only 66 districts were covered by the CGD network. But today, CGD projects are being implemented in 174 districts, the Prime Minister said. As per the commitment made by various entities in the ninth bidding round, around 2 crore PNG (domestic) connections and 4,600 CNG stations are expected to be installed in the next eight years across the country. This has expanded the potential coverage of the CGD network to about 50 per cent of population spread over 35 per cent of India’s geography.

In total, 86 GAs were awarded during the ninth round. Of these, two awards were challenged and therefore are sub-judice. Some fall in regions where elections are due, and hence, are under the model code of conduct. This is why the PM laid the foundation stones for projects in just 65 GAs from New Delhi. “The government is focussed on developing a gas-based economy. LNG terminals, a nationwide gas grid and a city gas distribution network are being developed to strengthen the gas infrastructure across the country,” Modi said.

Minister for Petroleum and Natural Gas, Dharmendra Pradhan said, “Presently, the share of gas in the country’s energy mix is just over 6 per cent and the aim is to reach the 15 per cent mark, while the world average is 24 per cent.”

“Efforts are not only being made to increase the use and supply of gas, but also to produce gas through agro-wastes and other products and include the same into the CGD network,” Pradhan added.

According to the Ministry, till September, 96 cities or districts in different parts of the country were covered under the CGD network development plan. About 46.5 lakh households and 32 lakh CNG vehicles are availing the benefit of clean fuel through the existing CGD networks.

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 04 Dec 2018 03:57

IOC aims to be global refinery tech provider.

With the edge proffered by its R&D centre, Indian Oil Corporation Ltd (IOC), the over-$70-billion public sector oil giant, is transitioning from an adopter to provider of indigenously developed refinery technology to the world.

Its R&D now has the capability to supply about 90 per cent of the technology needed to set up a modern greenfield refinery.

Two major developments
Meanwhile, the company’s R&D operations are getting strengthened for the future with two major developments.

First, it is on the verge of becoming a full-fledged refinery technology player from concept to commercialisation. Second, its upcoming ₹2,300-crore world-class R&D facility, about 8 km from the existing one in Faridabad, is expected to provide a significant technological edge to IOC not just in its core refinery and lubricants segment, but also in alternative energy areas.

The oil major’s R&D centre in Faridabad has commercialised at least a dozen technologies at various plants of the company. The cumulative improvement in GRM (gross refining margin) on account of the adoption of own technologies at IOC refiners is estimated at ₹1,577 crore per year.

Its flagship INDMAX is a residue upgradation technology that maximises the LPG yield in a refinery. This technology has won many international awards, beating global refinery giants such as BP and Total.

Crossing boundaries
“The time has come now for us to cross national boundaries to license our INDMAX technology. At least six overseas refineries are in advance stage of dialogue with our licensing partner to deploy INDMAX,” said SSV Ramakumar, Director - R&D, Indian Oil, in Faridabad. The R&D centre is on the verge of acquiring engineering and other related capabilities.

“We are essentially a process developer and our engineering capabilities have been led by Engineers India Ltd. However, we will be correcting this situation, acquiring and augmenting engineering capabilities also with the second R&D centre. So, we will have capabilities right from the lab to commercialisation/licensing in five years,” said Ramakumar.

Some progress has already been made. IOC can now handle at least four-five of its own refinery technologies without an engineering partner.

Second R&D unit
Ramakumar said the construction work for the second R&D unit — Technology Development and Deployment Centre — is being taken up. It will be a net zero power and water usage campus.

“The first phase of the second R&D unit will be operational by 2021 as per our plan,” he said.

With increased focus on alternative energy areas, the company will double its current R&D spend of ₹300 crore in the coming years. Also, the present 400-strong scientific team at the existing R&D campus will see an addition of 100 people.

“Apart from infrastructure and sophisticated equipment, human capital will be our biggest asset. We hope to have a strong 1,000-member team in both the campuses put together by 2023, said Ramakumar.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 08 Feb 2019 12:08

Russia to build sub-sea gas pipeline from Iran to India: Iranian minister

http://www.xinhuanet.com/english/2019-0 ... 801190.htm

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Re: Oil & Natural Gas: News & Discussion

Postby Neshant » 08 Feb 2019 13:24

Austin wrote:Russia to build sub-sea gas pipeline from Iran to India: Iranian minister

http://www.xinhuanet.com/english/2019-0 ... 801190.htm


who's funding the pipeline?

Sounds like pie in the sky.

Also how can India trust Iran will stick to pricing agreements even if it were true.

They usually don't.

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Re: Oil & Natural Gas: News & Discussion

Postby Kashi » 08 Feb 2019 13:48

It seems the proposal came from Russia. In this case Russians may offer to set it up in exchange for equity and charging transit fee from both India and Iran. Sort of like Bakis wanted for the IPI pipeline.

It could be a three-way contract and legally binding- Iran agrees to supply India with x BTU of gas at y (currency) per unit for z (years). Russia agrees to transport this gas to India for a transit fee of a (per unit) and guaranteed supply of b (BTU) per day.

If it's a legally binding agreement and Iran or for that matter any party to the contract chooses not to honour, won't there be legal ramifications?

Though it's too early to say if the project will ever take off.

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Oil & Natural Gas: News & Discussion

Postby Peregrine » 12 Feb 2019 02:04

Venezuela oil czar courts India after $20 billion hit from US - Debjit Chakraborty and Dhwani Pandya

Manuel Quevedo's India visit coincides with swirling speculation over the future of the Venezuelan oil industry.

Venezuela’s oil minister made a surprise appearance at an energy event in India, as the embattled OPEC producer seeks closer ties with major crude customers in the face of crippling U.S. sanctions.

Manuel Quevedo said on Monday his nation wants to sell more crude to India, and that U.S. measures have resulted in a $20 billion loss to the Latin American country’s economy. He’s also the head of state producer Petroleos de Venezuela SA -- a post the career military man was appointed to in late 2017 as President Nicolas Maduro began to purge large swathes of the firm’s managerial ranks.

His arrival in India coincides with swirling speculation over the future of the Venezuelan oil industry, following a ban on its crude by the Donald Trump administration. PDVSA is seeking to retain buyers in other big consuming-countries such as China and India after American refiners halted purchases. The U.S. wants to get Maduro to cede power to an interim government led by Juan Guaido -- a lawmaker who claims he’s the country’s rightful leader.

India is set to emerge as Venezuela’s preferred customer due to the nation’s willingness to pay for crude in cash, as opposed to sales to China that are supplied via oil-for-loans agreements, according to Sushant Gupta, director of Asia-Pacific refining at Wood Mackenzie Ltd. The OPEC nation’s output could decline further if it fails to secure enough funds for upstream investments, after production halved from 2016 levels to about 1.3 million barrels a day in January.

Quevedo, who met Indian Oil Minister Dharmendra Pradhan on Monday, said his country’s production is now at 1.57 million barrels per day. Venezuela, which currently holds the OPEC presidency, has a “healthy relationship” with the Asian country, he said at the Petrotech conference near New Delhi, where he originally wasn’t on the list of attendees.

“I have met the Indian oil minister, we are going to meet again,” Quevedo said. “We have a good relationship with India and we want to continue this relationship.”

Reliance Industries Ltd., an Indian refiner that operates the world’s biggest processing complex, is taking a parcel of Venezuelan synthetic oil Hamaca that was originally scheduled for delivery to a Lyondell Basell Industries NV plant in the U.S., according to person with knowledge of situation and shipping reports compiled by Bloomberg. The last time India got the grade was in April 2018.

Oil Tankers

Venezuela will need to make a lot more such sales to sustain its oil industry. The U.S. sanctions have sliced its oil exports to a 10-month low. Last year, the nation loaded one vessel a day for U.S. refiners. After the American restrictions were imposed on Jan. 28, only one tanker has loaded over a 10-day period. That has turned oil ships into floating storage facilities.

There are more than 8 million barrels of Venezuelan crude idling all over the Gulf of Mexico in an area that stretches from U.S. coast to the Yucatan Peninsula in Mexico, according to cargo-tracking and market intelligence company Kpler.

Guaido, the head of Venezuela’s National Assembly, is trying to wrest ownership of PDVSA’s Houston based unit, Citgo Petroleum, away from the current regime. The move forms a key part of his strategy to topple Maduro and install an interim government that would call new elections. Guaido has said he plans to name a new board of directors for the state producer and its U.S. subsidiary.

The U.S. wants to “steal Citgo from Venezuela,” Quevedo said on Monday. “Citgo is a Venezuelan-owned petroleum company. The United States is simply trying to eliminate competitors.

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Re: Oil & Natural Gas: News & Discussion

Postby Neshant » 13 Feb 2019 11:09

Not a good thing that US is attempting a "Libya" type takeover of Venezuela.

In the case of Libya, it was a NATO invasion of a country to take its wealth, gold and resources.

In the case of Venezuela, its an economic block aid for the same objective.

We may yet see rockets, tanks and fighter planes magically appearing in the hands of "rebels" any day now to do the above deed.

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Re: Oil & Natural Gas: News & Discussion

Postby Karthik S » 13 Feb 2019 15:07

Don't we have a deal signed already wherein we can buy oil from Venezuela and pay in Rupees?

OK, below news article says 'willing to'. But we should strike a deal soon and save those forex.

https://economictimes.indiatimes.com/in ... 277053.cms

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Re: Oil & Natural Gas: News & Discussion

Postby Neshant » 15 Feb 2019 19:54

Cuba says U.S. moving special forces, preparing Venezuelan intervention

https://ca.news.yahoo.com/cuba-charges- ... 54459.html

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Re: Oil & Natural Gas: News & Discussion

Postby Uttam » 22 Feb 2019 02:08

Very interesting development in the Oil and Gas exploration industry.

Producers get pricing freedom in govt's new rules for oil, gas exploration

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 11 Mar 2019 11:16

US Wants India to Stop Oil Trade With Venezuela - Special Envoy Abrams

https://sputniknews.com/world/201903101 ... sanctions/

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Re: Oil & Natural Gas: News & Discussion

Postby arun » 13 Mar 2019 20:30

A month old article that has not been posted on this thread built around an interview by First Post of MD and CEO of Indian Strategic Petroleum Reserves Limited (ISPRL) which is liberally dusted with nuggets of information on our country India’s crude oil storage.

We currently have a storage capacity totalling 74-74.5 days of crude oil requirements. This is slated to rise to 86-87 days of requirement when ISPRL completes phase 2 of its plan. ISPRL built its present storage capacity at USD 17 per barrel of crude oil against global average of USD 23 per barrel:

‘India’s reserves built at $17 per barrel, global average is $23’

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Re: Oil & Natural Gas: News & Discussion

Postby ricky_v » 17 Mar 2019 15:50

https://in.reuters.com/article/ceraweek-energy-gail-india/gail-ceo-calls-for-more-flexibility-in-u-s-lng-contracts-idINKCN1QV096
Gail currently sends up to 75 percent of its U.S. LNG supplies back to India, Tripathi said, and sells the rest into the spot market. All the LNG will eventually be shipped to India when more gas pipelines and regasification terminals are completed, he said.

Natural gas is expected to account for 15 percent of India’s energy mix by 2030, up from the current 6.2 percent, MM Kutty, secretary of India’s Ministry of Petroleum and Natural Gas, said earlier in the week.

Re-gasified natural gas is costlier against coal based methane, most integrated units would be looking into blast furnace gas or off gas in case of petchems, for the matter of producing steam and ultimately power or use the cleaner cbm for gts. Though usage of syngas is on the up and is more suitable for eco goals and equipment life cycle.

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 27 Mar 2019 17:26

L&T dispatches India's heaviest hydrocracker reactor to HPCL ahead of schedule.

Infrastructure giant Larsen & Toubro (L&T) Wednesday said it has dispatched the country's heaviest hydrocracker, weighing 1,858 tonne, ahead of schedule to HPCL for its Visakh refinery.

L&T at present is also manufacturing several hydrocracker reactors, weighing more than 2,000 tonnes, which on completion will set international benchmark, the company said in a statement.

"Achieving another milestone project in the engineering world, the heavy engineering business of Larsen & Toubro (L&T), has completed and flagged off India's Heaviest Hydrocracker Reactor ahead of schedule," it said.

The reactor weighing 1,858 tonne is manufactured for Hindustan Petroleum Corporation Ltd's (HPCL) Visakh Refinery Modernisation Project.
The reactor will sail directly to Visakhapatnam from Larsen & Toubro's fully integrated state-of-the-art coastal manufacturing facility located at Hazira in Gujarat, the company said.

S Raja, executive director (Visakh Refinery Modernization Project), HPCL, said, "We are proud to have been associated with L&T and would like to congratulate you for establishing a benchmark in manufacturing India's Heaviest Hydrocracker Reactor, weighing 1,858 tonnes."

Y S Trivedi, senior vice-president and head of L&T Heavy Engineering, said, "This is a benchmark achievement and we are proud to have been chosen by HPCL to deliver India's Heaviest Hydrocracker Reactor."

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 17 Apr 2019 04:31

Saudi Aramco eyes up to 25% in RIL refining & petrochemical business.

In what is shaping up into a mega-deal between two corporate behemoths, Saudi Aramco, the world’s most profitable company in history, is learned to be in “serious discussions” to acquire up to 25% in the refining and petrochemicals businesses of Reliance Industries Ltd, India’s largest company.

While Saudi Aramco, which is also the world’s largest oil exporter, is known to have first shown interest in Reliance about four months ago, talks gathered momentum following the visit of Saudi crown prince Mohammed bin Salman (MBS) to India in February, during which he met RIL chairman and India’s richest man, Mukesh Ambani.

There might be an agreement on valuation around June this year, people with knowledge of the development said. A minority stake sale could fetch around $10-15 billion, valuing RIL’s refining and petrochemicals businesses at around $55-60 billion. At Tuesday’s share price, RIL has a market capitalisation topping $122 billion (or Rs 8.5 lakh crore).

Goldman Sachs, the storied investment banker, is said to have been mandated to advise on the proposed deal. “RIL has grown too big – from energy to retail to telecom. It needs to compartmentalise. It makes sense to spin off some of its verticals. It’ll help raise funds and unlock shareholder value,” said a highly placed person in the financial sector who didn’t wish to be quoted since he didn’t have direct knowledge of the matter.

RIL has financed Reliance Jio’s high-voltage entry into telecom even as gross debt soared to about Rs 3 lakh crore. Deleveraging would also allow Jio to pursue its aggressive expansion plans, according to corporate finance specialists. “It’s sensible market policy,” said one of them. TOI has in the past reported about share sale plans in telecom infra and retail. “But Jio is still some way away from being spun off, it’ll take more time,” said a source.

It was after he attended Mukesh Ambani’s daughter Isha’s pre-wedding festivities in Udaipur in December that Saudi oil minister Khalid al-Falih publicly signalled Aramco’s interest in forming joint ventures, including with RIL, to expand India’s refining capacity, which is currently straining at around 4.6 bpd. Domestic crude oil consumption is expected to more than double to 10 million bpd by the year 2040.

India is the world’s third largest consumer of crude oil after the US and China, with daily use topping 4 million barrels per day As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” said an RIL spokesperson in response to emailed queries. A Saudi Aramco spokesperson said he would respond at the earliest, but had not reverted till the time of going to press.
Sources said RIL would likely look at creating a standalone vertical for its downstream businesses – refining and petrochemicals – in which Aramco would participate. This is somewhat similar to BP's deal to buy a $7 billion stake in RIL's upstream natural gas and exploration businesses in 2011.

In February, Aramco said it and Indian state oil companies were planning to build a greenfield refinery on the west coast in Maharashtra with a 1.2-million bpd capacity. It is not clear if a big stake purchase in RIL's downstream assets would alter its broader India plans.

MBS wants Saudi to steer away from domestic oil money and look for a meaningful overseas footprint, especially in valueadded petrochemicals business. Aramco on Monday announced plans to pick up a 13% stake in Hyundai Oilbank as part of its expansion into South Korea, another large Asian energy consumer.

Earlier this month, Aramco reported a $111 billion profit on revenues of $360 billion in 2018, dethroning iPhone maker Apple Inc as the world’s most profitable company, according to global media. Aramco recently opened up its finances to rating agencies as it raised $12 billion through a bond issue, investor interest in which turned out to be 10 times the amount on offer.

With its sights set on a jaw-dropping valuation of $2 trillion, Aramco — which is geologically blessed with huge hydrocarbon reserves and low cost production — tested the waters to raise $100 billion in an overseas IPO about 18 months ago, but subsequently rolled back its plans.

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Re: Oil & Natural Gas: News & Discussion

Postby nandakumar » 20 Apr 2019 09:26

Vips wrote:Saudi Aramco eyes up to 25% in RIL refining & petrochemical business.

In what is shaping up into a mega-deal between two corporate behemoths, Saudi Aramco, the world’s most profitable company in history, is learned to be in “serious discussions” to acquire up to 25% in the refining and petrochemicals businesses of Reliance Industries Ltd, India’s largest company.

While Saudi Aramco, which is also the world’s largest oil exporter, is known to have first shown interest in Reliance about four months ago, talks gathered momentum following the visit of Saudi crown prince Mohammed bin Salman (MBS) to India in February, during which he met RIL chairman and India’s richest man, Mukesh Ambani.

There might be an agreement on valuation around June this year, people with knowledge of the development said. A minority stake sale could fetch around $10-15 billion, valuing RIL’s refining and petrochemicals businesses at around $55-60 billion. At Tuesday’s share price, RIL has a market capitalisation topping $122 billion (or Rs 8.5 lakh crore).

Goldman Sachs, the storied investment banker, is said to have been mandated to advise on the proposed deal. “RIL has grown too big – from energy to retail to telecom. It needs to compartmentalise. It makes sense to spin off some of its verticals. It’ll help raise funds and unlock shareholder value,” said a highly placed person in the financial sector who didn’t wish to be quoted since he didn’t have direct knowledge of the matter.

RIL has financed Reliance Jio’s high-voltage entry into telecom even as gross debt soared to about Rs 3 lakh crore. Deleveraging would also allow Jio to pursue its aggressive expansion plans, according to corporate finance specialists. “It’s sensible market policy,” said one of them. TOI has in the past reported about share sale plans in telecom infra and retail. “But Jio is still some way away from being spun off, it’ll take more time,” said a source.

It was after he attended Mukesh Ambani’s daughter Isha’s pre-wedding festivities in Udaipur in December that Saudi oil minister Khalid al-Falih publicly signalled Aramco’s interest in forming joint ventures, including with RIL, to expand India’s refining capacity, which is currently straining at around 4.6 bpd. Domestic crude oil consumption is expected to more than double to 10 million bpd by the year 2040.

India is the world’s third largest consumer of crude oil after the US and China, with daily use topping 4 million barrels per day As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” said an RIL spokesperson in response to emailed queries. A Saudi Aramco spokesperson said he would respond at the earliest, but had not reverted till the time of going to press.
Sources said RIL would likely look at creating a standalone vertical for its downstream businesses – refining and petrochemicals – in which Aramco would participate. This is somewhat similar to BP's deal to buy a $7 billion stake in RIL's upstream natural gas and exploration businesses in 2011.

In February, Aramco said it and Indian state oil companies were planning to build a greenfield refinery on the west coast in Maharashtra with a 1.2-million bpd capacity. It is not clear if a big stake purchase in RIL's downstream assets would alter its broader India plans.

MBS wants Saudi to steer away from domestic oil money and look for a meaningful overseas footprint, especially in valueadded petrochemicals business. Aramco on Monday announced plans to pick up a 13% stake in Hyundai Oilbank as part of its expansion into South Korea, another large Asian energy consumer.

Earlier this month, Aramco reported a $111 billion profit on revenues of $360 billion in 2018, dethroning iPhone maker Apple Inc as the world’s most profitable company, according to global media. Aramco recently opened up its finances to rating agencies as it raised $12 billion through a bond issue, investor interest in which turned out to be 10 times the amount on offer.

With its sights set on a jaw-dropping valuation of $2 trillion, Aramco — which is geologically blessed with huge hydrocarbon reserves and low cost production — tested the waters to raise $100 billion in an overseas IPO about 18 months ago, but subsequently rolled back its plans.

RIL has taken a huge bet with its telecom/broadband venture that dwarfs anything that it had undertaken in all its 40 plus years' existence as a listed corporate entity. Just one telling piece of financial data would help understand the situation better. RIL's investment in its digital services, its moniker for the broadband mobile telephony business, is 3,60,000 crore as of March 2019. Just last year alone it raised Rs 15,000 crore in unsecured debentures. In contrast, its investment in refining and petrochemicals (pretty much its entire business in terms of profits earned) is Rs 3,50,000 crores (gross assets). At Rs 8,714 crore as profits earned before interest and taxes the digital services turned in a return of 2.3% roughy, on the gross asset base. Assuming a minimum return of 10% on gross assets RIL has to generate at least four times the profits earned in 2018-19 from its digital services business for it to be a long term viable business proposition. Assuming a 50% share of a 1 billion users of the smart phone market, RIL has to generate Rs 750 per annum per customer in gross profits (before interest and tax). That is Rs 60 per month or thereabouts. Doable. But they have to do it sooner than the debts contracted for digital services fall due for payment if they are not to drag the refining and petrochemicals business with it. The stake sell to Aramco has buys them some breathing time.

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Re: Oil & Natural Gas: News & Discussion

Postby Rahul M » 20 Apr 2019 16:00

also, with ARAMCO having a stake in those refineries it would act as a insurance against paki attacks.

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 20 Apr 2019 17:35

I was thinking the same. Even the Essar refinery is now owned by the Russians, one which the pakis wont dare to touch. The nearest sarkari refinery that pakis can target is the Hindustan Petroleum one in Mumbai and the IOC refinery in Baroda.

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 20 Apr 2019 17:39

RIL is now in need for more money as it is aiming to set up 30-50 Million tons additional refining capacity with plans 30 million tons new refinery at Jamnagar site. It will keep the title of having the largest refinery at a single site to remain bigger then the IOC/HP/BP refinery proposed in Maharashtra.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 20 Apr 2019 22:36

Rahul M wrote:also, with ARAMCO having a stake in those refineries it would act as a insurance against paki attacks.


for years the strong rumors were that the pakis were getting directly paid off to leave the reliance refinery complex alone and figures of $350 million/year were being bandied about. musharraf seems to have got his payment.

now with mad men like bajwa in the hot seat, the saudis are the best insurance.

The GoI maneuvered quite smartly to keep the saudis out of essar and get the russians in. Modi has derisked/second sourced India's primary oil supply chain as well as the refining capacity by putting some direct ownership in the hands of two huge suppliers, both fighting for the lucrative Indian market.

Our labor in the gulf as well as in saudi should be safer and better protected now due to this new leverage.
Last edited by chetak on 20 Apr 2019 23:07, edited 1 time in total.

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Re: Oil & Natural Gas: News & Discussion

Postby chetak » 20 Apr 2019 22:50

Vips wrote:RIL is now in need for more money as it is aiming to set up 30-50 Million tons additional refining capacity with plans 30 million tons new refinery at Jamnagar site. It will keep the title of having the largest refinery at a single site to remain bigger then the IOC/HP/BP refinery proposed in Maharashtra.


This is a matter of national security and not merely mundane business.

The sale to the saudis is not India tactical but India strategic.

BTW, this sale would never have gone through without Modi's express nod. Makes you wonder about all those awards from the gulf countries. This deal has been a long time in the making and hence the rush to sign, seal and stamp it, just in case of any unfortunate change of govt at the center.

Mota bhai publicly supporting the congi candidate in south bombay is simply to placate the vengeful family and should be seen in that light.

mota bhai will surely extract his pound of flesh from the GoI while he still continues to retain full control of his refinery now made safer from paki attack.

The saudis may now have access to reliance's retail petroleum outlets and hence direct access to the Indian consumer market. He will also get sweet saudi crude at below market prices and the refining margins will be high for sweet crude from saudi.

Its win win for all three, Modi, mota bhai and the saudis and a great deal for India.

The minorities are much quieter this time around during the elections. Is it the saudi effect??

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 23 Apr 2019 23:45

EU, China condemn US sanctions on Iran’s oil but India says it will comply

https://www.dailysabah.com/energy/2019/ ... ill-comply

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Re: Oil & Natural Gas: News & Discussion

Postby rgosain » 24 Apr 2019 00:01

Crude prices are back to the where they were in Nov approx 72pb. It will require retooling of refineries if Iranian crude is halted

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Re: Oil & Natural Gas: News & Discussion

Postby Vips » 24 Apr 2019 02:37

chetak wrote:
Vips wrote:RIL is now in need for more money as it is aiming to set up 30-50 Million tons additional refining capacity with plans 30 million tons new refinery at Jamnagar site. It will keep the title of having the largest refinery at a single site to remain bigger then the IOC/HP/BP refinery proposed in Maharashtra.


This is a matter of national security and not merely mundane business.

The sale to the saudis is not India tactical but India strategic.

BTW, this sale would never have gone through without Modi's express nod. Makes you wonder about all those awards from the gulf countries. This deal has been a long time in the making and hence the rush to sign, seal and stamp it, just in case of any unfortunate change of govt at the center.

Mota bhai publicly supporting the congi candidate in south bombay is simply to placate the vengeful family and should be seen in that light.

mota bhai will surely extract his pound of flesh from the GoI while he still continues to retain full control of his refinery now made safer from paki attack.

The saudis may now have access to reliance's retail petroleum outlets and hence direct access to the Indian consumer market. He will also get sweet saudi crude at below market prices and the refining margins will be high for sweet crude from saudi.

Its win win for all three, Modi, mota bhai and the saudis and a great deal for India.

The minorities are much quieter this time around during the elections. Is it the saudi effect??


This thought of Saudi/UAE bonhomie with NaMo not being leveraged by BJP did come to my mind. If Namo were to utilize the Saudis and Emiratis at one stroke the psuedo secular brigade would be left nude and taken care of.

The Deora and Ambani family ties go a long way back. Old timers in Mumbai have stories of how Murli Deora was the conduit for Dhirubhai's contacts in the North and South Blocks. They were both regulars in taking the morning/evening flights back and forth between Mumbai and Delhi.

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Oil & Natural Gas: News & Discussion

Postby Peregrine » 24 Apr 2019 16:24

US decision to end Iran oil sanctions waiver won't affect India's investments in Chabahar port - Indrani Bagchi – TNN

NEW DELHI: US’ decision to end the Iran oil sanction waiver will not affect India’s investments in Chahbahar port in Iran. The revocation of the “significant reductions exemption” (SRE) which allowed eight countries, including India, to continue to source Iranian oil for the past six months ends on May 2,
following which the US expects oil imports from Iran to go down to zero.

While India may have been insulated on the Chahbahar front, its current plan on using a rupee payment account for Iran’s oil may be in danger. India has been paying for a large percentage of its oil imports through a rupee mechanism that is deposited in an escrow account in an Indian bank. Iran uses that money to buy essential items like foodstuff, medicines etc from India. After May 2, US has told India it would not allow India to add to the corpus, although Iran would be able to continue to use whatever is left in the account. Indian officials say there is little “clarity” on the matter.

Reacting to US secretary of state Mike Pompeo’s announcement on Monday stating that there would be Iran oil sanctions Iranian oil Donald Trump puts India in a fix over Iran oil and regional strategy no more “waivers”, the MEA spokesperson said in an anodyne statement, “We are adequately prepared to deal with the impact of this decision. .. Government will continue to work with partner nations, including with the US, to find all possible ways to protect India's energy and economic security interests.”

The Chinese foreign ministry took a sharper stand, saying China “consistently opposes US unilateral sanctions.”

US officials have been careful to show they are trying to ensure market stability (although crude prices are at a six month high after Monday’s announcement) and they want to “partner” with allies as they move to a zero Iranian oil state. Pompeo’s announcement clarified there would be no more waivers.

The UAE and Saudi Arabia have told the Indian government that they would ensure adequate supply of oil to meet India’s needs. The US too intends to step up its oil exports, though its pipeline infrastructure needs to be augmented. Under the waiver, India was reportedly allowed to import 300,000 barrels per day. India will suffer quite a bit, because its refiners, are configured for the particular variety of Iranian crude.

The “maximum pressure on Iran”, sources said, would only ease if Tehran agreed to renegotiate the nuclear deal. Some people familiar with developments have said recent reports of Hezbollah fighters facing salary cuts and other reports of reduction of weapons to other groups controlled by Iran is testament to the success of the US strategy. About 1.5
million barrels of Iranian oil is off the markets at present.

India is taking a milder stand to the US possibly because the US has walked the extra mile to accommodate India’s terror concerns vis-a-vis Pakistan. According to sources, Washington is piling on the pressure to get a terrorist designation of Masood Azhar, which basically needs a nod from Beijing. US investigators, sources said, are helping India piece together the background of the Pulwama terror attack. India and US are working together on terror designations, counter-terrorism initiatives, as well as training Indian officials. At the FATF, the international attempt to hold Pakistan’s feet to the fire is being pushed by the US besides India.

While not explicitly stated, India will be expected to toe the US line on Iran — the idea being, India’s terror concerns are important to the US, the opposite must also be true.

If India violates the sanctions and continues to buy oil from Iran, India risks inviting “secondary sanctions” on Indian companies and entities. Sources said these would include a ban on using the international SWIFT system, forfeiting dollar assets as well as any assets in the US. ost Indian companies have refrained from engaging with Iran.

For those looking for US alternatives, there is always the European SPV, Instex, set up for the purpose. But it is yet to take off, given that it is mainly a barter system between European companies and Iranian ones. India and EU tried to collaborate on this, but it hasn’t gone far.

At this moment, despite Iran, Venezuela and most of Libya not being in the international oil market, oil prices are hovering around the $70 mark. If prices rise significantly, its not clear how India will deal with the situation.

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Re: Oil & Natural Gas: News & Discussion

Postby Austin » 25 Apr 2019 11:19

US sanctions on Iran will just benefit the Oil Producers , Brent is already at $75 https://www.bloomberg.com/energy

Shale Oil will gain due to high Oil prices , Followed by Saudi/OPEC , Russians ....count Shell ,Exxon ,BP

Countries like India will have to deal with significant CAD ....... India wont have to pay $10 less for supporting sanctions but the market value which is decided by Cartel.....Two major Oil producers Venezeula and Iran are now out of market

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Re: Oil & Natural Gas: News & Discussion

Postby nandakumar » 02 May 2019 15:48

I noticed something odd about international crude oil prices today. Brent is trading at $71 plus some cents and OPEC Basket is trading at $59 something. The OPEC oil discount is rarely above 1 dollar to Brent. But a $12 discount is unprecedented. Any thoughts on why this should be so? See link below from oil price.com a reputed site on oil related subject.

https://oilprice.com

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Re: Oil & Natural Gas: News & Discussion

Postby Varoon Shekhar » 02 May 2019 19:38

Still, the two are not the same. The US has not suffered any direct Iranian Islamist terrorism on its soil, nor has any of the terror the US has experienced, originated from Iran ideologically, politically or financially. Ten Iranians have not descended on New York and slaughtered 170 people in hotels, restaurants and railway stations. In fact, they haven't even done it in Israel, though there the question of moral and political support for violence has some truth to it.

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Oil & Natural Gas: News & Discussion

Postby Peregrine » 13 May 2019 19:57

X Posted on the Neutering & Defanging Chinese Threat Thread

Backtrack On Pledge To Buy Iranian Oil - Tim Daiss

It was a question that just as recently as last week was still undecided. Would Beijing kowtow to Washington’s demand that it stop importing Iranian oil at the start of May after the 180-day import waiver period ended? The answer, at least for now, is that Beijing will comply.

Oil majors Sinopec Group and CNPC, China’s two top oil refiners, are reportedly skipping purchases of Iranian oil for loading in May, Reuters reported on Friday, citing people familiar with the deal. On April 22, President Trump surprised oil markets when said he would end 180-day Iranian oil import waivers put in place in November for eight of the Islamic Republic’s largest oil importers, including import heavyweights China, Japan, and India. Prices the same day for both global oil benchmark Brent crude futures and U.S. oil benchmark West Texas Intermediate (WTI) futures spiked 3 percent on the news. Prices since then have pared these and subsequent gains due to a number of factors, including a spike in U.S. tariffs from 10 percent to 25 percent on some $200 bn worth Chinese goods after trade talks between Washington and Beijing broke down with allegations that Beijing had back-peddled on numerous agreements in recent talks.

Moreover, just last week there had been speculation and even reports in Chinese media that Beijing might still import Iranian oil in defiance of U.S. policy. At the same time, many within China's oil and gas patch downplayed the importance of Iranian oil imports to China's energy security.

According to a report late last week in the Beijing-based Global Times, experts in the country said that China’s energy security wouldn’t be affected too much by the removal of oil sanctions waivers due to the diversification of supply, while the issue could even offer Beijing a new bargaining chip in ongoing trade negotiations with Washington.

"China has multiple overseas oil suppliers, so the U.S. sanctions won't have a huge impact on China's energy security,” said Bai Ming, deputy director of China’s Ministry of Commerce's International Market Research Institute. Hua Liming, a Middle East studies expert and a former Chinese ambassador to Iran said “it [the removal of waivers] doesn't mean China will submit to the U.S. and cut off its energy trade ties with Iran because Iran is a key partner of China in economy, politics, and security. According to state-run Xinhua news agency, Iranian oil imports make up some 6 percent of China’s total crude imports, making the Islamic Republic China’s seventh largest oil importer.

China's oil refining juggernaut

The decision for China's top two refiners to halt Iranian oil imports is noteworthy for a number of reasons. First, it shows that China is not willing to risk ( at least for now) even more fall out with the U.S. amid a host of other differences, including failed trade talks, and disagreements over China's massive land reclamation in the volatile South China Sea.

The decision to halt Iranian oil imports is also significant since China has the largest refining capacity in the Asia-Pacific region. China will drive the majority of growth in the crude oil refining industry in Asia between 2018 and 2023, contributing 44 percent of Asia’s crude oil refining capacity in 2023, according to GlobalData.

However, if trade talks between Washington and Beijing fall flat on Friday, Beijing could reverse course on its adherence to U.S. demands to stop importing Iranian oil. Until it does, Saudi Arabia, Russia, and others, already in fierce competition to lock up as much Chinese oil market share as possible, will be more than willing to make up the difference

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Oil & Natural Gas: News & Discussion

Postby Peregrine » 15 May 2019 23:47

Engineers India Ltd signs pact for 1.5 mt refinery in Mongolia

The contract was signed in the presence of D Sumyaabazar, Minister of Mining and Heavy Industry of Mongolia.

State-owned Engineers India Ltd (EIL) Wednesday said it has signed an agreement to provide project management consultancy for a new 1.5 million tonne refinery being set up in Mongolia.

The pact was signed with Mongol Refinery State Owned LLC, the company said in a statement here.

The contract was signed in the presence of url=https://economictimes.indiatimes.com/topic/D-Sumyaabazar]D Sumyaabazar,[/url] Minister of Mining and Heavy Industry of Mongolia.

India had extended a USD 1 billion (about Rs 7,000 crore) line of credit to Mongolia during the visit of Prime Minister Narendra Modi in 2015.

The Mongolian government is in the process to set up 1.5 million tonne per annum greenfield crude oil refinery in Sainshand province, under the line of credit extended by India.

EIL had carried out a Detailed Feasibility Study for the project and was subsequently pre-qualified and short-listed for providing project management consultancy services to Mongol Refinery for the project.

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