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
Category: Oil & Gas
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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
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Nagaland calls bids for 11 blocks without centre’s nod
Sources from the Directorate General of Hydrocarbons (DGH) indicate that the northeastern state of Nagaland invited "expressions of interest" from oil companies for 11 exploration blocks without the approval of the union oil ministry. According to the state government, the central government informed in the Lok Sabha on March 10, 2011
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RIL gets no order to stop work at KG block
Government has not ordered Reliance Industries (RIL) to stop work at any of its KG-D6 gas fields and other blocks that figure in the list of 14 areas that have been classified as "No-Go" areas by the Defence Ministry, company sources said. It may be noted that RIL's KG-DWN-98/3 or KG-D6 block is declared as "No-Go" as it overlaps with a prop
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Bulk users worried over sharp rise in diesel price
Bulk diesel users across different states are crying fowl over the government's move to allow oil marketing companies (OMCs) to charge market prices for these consumers. In order to reduce the fuel subsidy burden, the central government recently allowed OMCs charge mark
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OMCs deny cartelisation in oil industry
State-run Oil Marketing Companies (OMCs) deny the allegation that they form cartel while changing petrol or diesel prices. Competition Commission of India (CCI) is studying the allegation and is expected to come out with its obse
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TN govt urges centre to withdraw dual pricing of diesel
In a recent letter to the Prime Minister, the Tamil Nadu Chief Minister J Jayalalithaa asked the centre to withdraw the decision on dual pricing of diesel, which she terms as "ill-conceived, ill-timed". Jayalalithaa warned in the letter that if the centre does not hear the stateÂ’s request, the state government has no other option, but to approach the Supreme Court for
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Govt gets request for payment of Rs 500 bn subsidy
Government received a written request from the state-run oil marketing companies (OMCs) to pay Rs 25,000 crore for the first six months and Rs 25,000 crore for the third quarter of 2012-13. The compensation is towards the under-recovery incurred by the OMCs during the year for selling petroleum products below cost. So far, the companies have
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Oil ministry proposes to adopt new gas price formula
Media reports suggest that the union petroleum ministry wants the government to adopt the pricing formula for natural gas proposed by the Rangarajan Committee. Specifically, the ministry wants the pricing formula to apply to all forms of natural gas - conventional, shale and coal-bed methane (CBM). Also, the ministry prop