Category: Gas and Oil

January 28, 2014

The State-owned ONGC Ltd anticipates to ramp up natural gas production up to 2 million metric benchmark cubic meters per day (MMSCMD) throughout the next fiscal as two of its to the east offshore wells are set to get into output. Ashok Varma, boss controller (Asset supervisor) Eastern Offshore Asset, said the oil and gas major has chalked out a events to take up drilling of 40 to 45 wells by 2019. The east offshore wing of the PSU has furthermore sent suggestions to hire four more rigs to meet the requirements.

 “With these two wells, the total production from the eastern offshore will be about two million cubic meters gas. These are gas fields. We get very little oil which is negligible. As of now we are getting 6,50,000 cubic meters of gas and 50 cubic meters of oil from the eastern offshore wells per day,” Varma told PTI.

The additional gas production expects to give a fillip to the company’s top line as C Rangarajan’s gas pricing formula is expected to come into force from April. Barclays Equity Research had earlier estimated that the price will be USD 8.3 per million British thermal unit in 2014-15 as against the current rate of USD 4.2. This will rise to USD 9.1 in the following year and then to USD 9.4 in 2016-17. Varma added that these two wells are located in G1 a

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January 28, 2014

The high level Vijay Kelkar committee is strongly advocating to again adopt the production sharing contracts (PSC) for oil exploration projects. The panel is of the view that by adopting PSC, there will be an addition of extra 7 billion barrels of oil equivalent of production and it amounts to $700 billion and is very good compared to revenue sharing method. The panel which submitted its report to Petroleum Minister Veerappa Moily is of the view that most of the undiscovered oil and gas reserves in India lie in difficult terrain. The investors thus face huge risks and hence the panel suggested that arrangements have to be made to make the investors to be offered higher rate than the hurdle rate to compensate for inherent risks & right risk-reward balance to put in money. The panel has analysed the history of NELP, which is being conducted every year, since two decades and has come to a conclusion that production sharing contracts offer good risk-reward balance and hence it will be favourable to both the Government and the investors.

The rationale for this being that a production-sharing regime is better placed to maximise production, government revenues and committed risk capital. Besides, the interests of both the government and the contractor or the company which develops the oil field is fully aligned wit

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January 28, 2014

Canada is finding it profitable to import LNG through the newly built LNG terminal at Gangavaram port in Andhra Pradesh, which is first of its kind in eastern coast. The AP state officials and the delegation of Indo-Canadian Chamber of Commerce (ICCC) held a meeting on Saturday, in which Canada showed a keen interest in the new LNG terminal being setup by Petronet LNG Limited (PLL), which is a joint venture of BPCL, GAIL, IOCL & ONGC. The Ministry of Environment and Forests is yet to give its clearance for the LNG terminal following a public hearing held in January 2013. The project cost of the new LNG terminal is 45 billion and the terminal is proposed to have a capacity of five million ton.

??e are very keen on exploring the possibility,??Naval Bajaj, president of ICCC told The Hindu. Earlier, APIIC Vice-Chairman-cum-Managing Director Jayesh Ranjan briefed the team about investment opportunities in the Petroleum, Chemical, Petrochemical Investment Region (PCPIR) being developed between Visakhapatnam and Kakinada. On a request by the 12-member Canadian delegation which included MP Joe Daniel, a team from Andhra Pradesh is expected to visit Canada shortly.

??e are very keen on exploring various options,??Minister for Infrastructure, Investment and Natural Gas Ganta Srinivas

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January 28, 2014

The Shanghai based shipyard Wison offshore and Marine said that, it has received an order for a barge based floating LNG re-gasification unit, which is to be installed off shore Andhra Pradesh. The Indian based Vessel Gasification Solutions (VGS) of New Jersey has entered into an agreement with Wison offshore and Marine of Shanghai for building and supply of the unit for Liquefied Natural Gas (LNG) re-gasification. The proposed floating re-gasification unit (FRU) that is to be installed is proposed to consist of new build, non-propelled barge and this unit is expected to feed the Indian eastern coast market by producing maximum of 1,000 million standard cubic feet of gas every day through re-gasification process.

The facility would be moored on a jetty structure located approximately 8km offshore Andhra Pradesh, to the northeast of the Kakinada Anchorage Port (KAP), and alongside a permanent floating storage unit (FSU) that would be used as the LNG offloading point for trading tankers. The FRU would be adequately sized to allow for the future expansion of the regasification capability by an additional 750 million standard cubic feet per day of gas within the next few years in order to meet the rapidly growing natural gas requirements in the region. Under the agreement, Wison would be responsible for the turnkey

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