To lessen pressure on the country's current account deficit (CAD) the government-owned oil companies have been asked by the Union government to fund their foreign acquisitions entirely with foreign debts instead of using their own cash reserves or taking domestic loans.
The government said that by doing so the companies don't spend India's foreign exchange reserves and put more pressure on the current account deficit.
Category: Oil & Gas
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Use foreign debts for acquisitions, govt tells its oil firms
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Govt may sell six shale gas blocks soon
The Union government may auction six shale gas blocks, with estimated reserves of over 50 billion cubic metres, this year. When it happens it will become India's first auction of exploratory blocks for this fuel. Of the six blocks, two most prolific blocks are in the Ranigunj coalfields of the Damodar basin in West Bengal. The others are in Jharia, also in the Damodar basin, and in the Cauvery basin in the south India.
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Gas, diesel may become costly, cut in petrol price likely
Media reports say that there could be a small reduction in petrol prices if the rupee remains north bound but hike in diesel and kitchen fuel prices appears inevitable. Prices of crude mix, that the government-owned refiners buy, dropped to $110.15 per barrel on September 10 from a high of $112.26 on the previous day.
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US Senator says India should stop oil imports from Iran
An American Senator Jim Risch on September 12 asked India to stop import of oil from Iran, as the Obama Administration defended its decision to grant a sanctions waiver to New Delhi. 'The Indians' purchase of oil from Iran, in my judgment, endangers the entire world community and is a destabilising factor for the Middle East,' Jim Risch said.
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India has become attractive for gas exploration: Moily
Union Oil Minister Marpadi Veerappa Moily has said that India has become an attractive investment destination for gas exploration because it has decided to raise gas prices from April, which will also contain the spurt in gas demand. Investors had been shying away from investing in India because of low prices of domestic gas. But now the government has decided to raise the price of gas from next financial year, which would make India an attractive destination for investment in the sector, the Mi
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ONGC Videsh plans to buy 11% stake in Petronas
To buy 11 per cent stake in an oil project in Venezuela, ONGC Videsh, the overseas arm of State-owned Oil & Natural Gas Corp (ONGC), and its partners OIL and IOC are planning. Petroliam Nasional Bhd, Malaysia's State-run oil company, has decided to withdraw from the Carabobo-I project following dispute over terms with Venezuela's state explorer Petroleos de Venezuela SA (PdVSA).
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Gas output in India to double to 211 mmscmd in 13-yrs
By 2026-27, India's natural gas production will more than double to 211 million standard cubic metres per day on back of desired policy support and correct pricing signals, the oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has said. Domestic gas production, which was 101.1 mmscmd in 2012-13, is projected to rise to 156.7 mmscmd in 2016-17 and to 182 mmscmd in 2021-22, according to a study commissioned by PNGRB.
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Iran demanded $5 lakh to free Indian oil tanker
Authorities at Iran's Bandar Abbas port are said to have demanded $5,00,000 from India to release the tanker Desh Shanti, which was carrying crude from Iraq. Desh Shanti was held to ransom by Iranian authorities — spearheaded by the dreaded Iranian Revolutionary Guard Corps (IRGC) — for 26 days.
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PM tells Moily to cut oil imports by $25 bn
The Prime Minister Manmohan Singh has asked the Union Oil Minister Marpadi Veerappa Moily to save $25 billion on oil imports in the current fiscal year, so that it can help the country narrow its current account deficit (CAD).Moily said and added that oil is one of the components which is responsible for CAD.
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India, Japan to conduct study on LNG pricing
In order to bring about rationalization of liquefied natural gas (LNG) prices in Asia Pacific, India and Japan would carry out a joint study on the matter. The study would focus right pricing of the fuel to secure long-term contracts at competitive rates. The proposal to conduct the study was mooted on the b