[INDIA] Natural gas production to jump two-fold by 2011-2012
Published | 20-Jun-2008
In 2007-08, domestic production at 79.40 mmscmd and 31.50 mmscmd from import LNG met some 60 per cent of the demand, according to latest projections made by the Petroleum Ministry.
State-run Oil and Natural Gas Corp (ONGC) will produce 47.06 mmscmd of gas this fiscal, almost unchanged from 47.19 mmscmd of 2007-08. This output will rise to 51.65 mmscmd by 2011-12, while Oil India Ltd will contribute 10 mmscmd.
Reliance Industries' KG-D6 will start producing this year at an initial rate of 40 mmscmd, rising to 60 mmscmd in 2009-10 and to 80 mmscmd in 2011-12. When KG-D6 hits peak, the share of fuel produced by fields operated by private sector firms would touch 102.57 mmscmd (in 2011-12).
The projections anticipate an additional 2 mmscmd output from Mahanadi basin NEC-25 field of Reliance in 2011-12 and 4.5 mmscmd from Gujarat State Petroleum Corp's Krishna Godavari basin field.
India's import of liquefied natural gas (LNG) is also slated to more than double to 23.25 million tons by 2011-12 from 9 million tons in 2007-08 after Dabhol, Kochi and Mangalore terminals become operational.
Petronet LNG's Dahej terminal will see capacity doubling to almost 12 million tons and Shell's Hazira terminal is seen operating at 2.5 million tons, unchanged from present times. Dabhol may import 5 million tons, Kochi 2.5 and Mangalore 1.25 million tons, the projections stated.
Together with 81.38 mmscmd of LNG, the country's total gas availability will touch 252.09 mmscmd in 2011-12 from 110.9 mmscmd now.
Source: India Economic Times
[ENERGY COOPERATION] Libya signs exploration accord with Sonatrach + Indian Oil Corp and Oil India Ltd
Published | 26-May-2008The three companies will spend 152 million dollars on exploration works that include drilling eight wells in Libya's Ghadames region, the country's National Oil said. They will pay 10 million dollars as a bonus to National Oil when the government approves the accord, it said.
Source: Indian Economic Times
INDIA: Oil ministry plans bonds
Published | 05-Jul-2007It wants to compensate state-owned oil marketing companies — Indian Oil, Bharat Petroleum and Hindustan Petroleum — for revenue losses because of subsidised sales.
The ministry aims to lessen the total under-recovery on the sale of petrol, diesel, domestic LPG and kerosene, which is expected to be above Rs 55,000 crore this fiscal. The revenue loss stood at Rs 49,387 crore last year.
“Petroleum minister Murli Deora will meet finance minister P. Chidambaram on July 13 to make a case for the issue of the bonds,” said petroleum secretary M. S. Srinivasan.
Before finalising the compensation package for the oil companies during this fiscal, the petroleum ministry wants to have an idea about the extent of support from the finance ministry.
Srinivasan said the upstream PSUs — The Oil and Natural Gas Corporation, Oil India Limited and GAIL — would contribute around Rs 19,000 crore towards compensating the oil retailers.
In 2006-07, the government had issued oil bonds worth Rs 24,121 crore to the oil companies for partially compensating them for their revenue loss.
The upstream companies paid another Rs 20,000 crore in the previous financial year.
Public sector oil firms are losing about Rs 170 crore per day because the government has not allowed them to raise fuel prices in step with the rise in the price of crude.
The Indian basket of crude has risen more than 12 per cent since February, when petrol and diesel prices were cut by Rs 2 and Re 1 per litre, respectively.
