Media reports suggest that private fuel retailers like Essar Oil, Reliance Industries (RIL) would attempt to grab the share of the bulk diesel customer market after the government de-regulated pricing in the segment. The government allowed oil marketing companies (OMCs) to charge market price for bulk customers of diesel, that include railways, industrial users and State Trans
Category: Oil & Gas
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Private refiners reduce export to cater to domestic demand
Reports suggest that private sector oil refining firms like Essar Oil have reduced export of diesel recently in order to cater to the rising demand in the domestic market. Diesel is used in the industrial, agricultural and transport sectors in the country. For example, Essar Oil has reportedly offered only one d
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RIL drills 54 new wells in US shale gas projects
Weekly Insight learns from media reports that Reliance Industries (RIL) has drilled 54 new wells in three shale gas projects in America. During the first nine months of 2012-13, the company witnessed 16 per cent sequential growth in prod
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ONGC expects 27 mn t oil output in 2012-13
Sudhir Vasudeva, Chairman and Managing Director of Oil and Natural Gas Corporation (ONGC) informed that his firm may produce 27 million tonne of crude oil and 25.7 billion cubic m of gas in 2012-13. Even in 2011-12, the firm achieved similar level of production. However, the firm aims to add 2.9 million-tonne oil equivalent to its output in 2013-
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HPCL mulls LPG storage facility for Rs 700 cr
Media reports suggest that Hindustan Petroleum Corp (HPCL) is discussing the feasibility of a Rs 600-700 crore project to set up underground storage facility for liquefied petroleum gas (LPG). The company proposes to set up the facility, which would be its second one, in Mangalore and it is expected to arrive at a decision on the project in the next six
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Ministry wants to cut subsidy bill by changing pricing formula
Union finance ministry wants the oil marketing companies (OMCs) to calculate under-recoveries from sale of fuel products based on export parity price rather than the presently followed import parity price. The ministry wants OMCs to discontinue import parity price because the 2.5 per cent customs duty was adding to the under-recoveries of the state-run oil marketing companies without contributing any revenue to th
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GAIL revives Rs 75.9 bn gas pipeline project
Reports indicate that Gas Authority of India (GAIL) has revived the much delayed Rs 7,596 crore Jagdishpur-Haldia gas pipeline gas pipeline project. It is learnt that the groundwork for the project, which was sanctioned in 2007, is yet to start. The project was sanctioned almost 5 years ago. However, first a glitch over gas availability led to delay in exec
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RIL to borrow $500 mn from foreign investors
In order to fund its exploration activity and also for the expansion of its petrochemical business, Reliance Industries (RIL) is in the process of borrowing up to $500 million (Rs 2,701 crore) through issue of perpetual bonds to foreign investors. The company decided to borrow abroad despite sitting on a cash pile of around Rs 75,000 crore because it wa
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EIL to upgrade Oil India’s pipeline
Oil India awarded the Engineering, Procurement and Construction Management (EPCM) contract to Engineers India (EIL) for upgrading pump stations or terminal of the Naharkatiya-Barauni crude oil pipeline. Oil India decided to upgrade the pumping stations or terminals to reduce operation and maintenance cost and increase the throughput of the system for acc
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Demand for auto gas rises in recent months
Reports suggest that demand for auto gas or auto liquefied petroleum gas (LPG) has risen in the last few months. Oil Marketing Companies (OMCs) say the upswing in auto LPG growth augurs well for both the consumers and oil companies. OMCs attribute the rise in demand for auto gas to the governmentÂ’s decision to cap the number of subsidised LPG cylinders per