President of the Confederation of Indian Industry (CII), S Gopalakrishnan said the government’s move to almost double gas prices with effect from April 2014 will have a “cascading effect” on power tariffs. He said this while addressing a press conference. He disfavoured the dollar pricing of domestically produced natural gas by saying the following, “I do not believe that the price of gas (produced in India) ought to be se
Category: Oil & Gas
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Govt expects new pricing formula to boost gas output
According to an internal note prepared by the union petroleum ministry, the new gas pricing formula approved by the cabinet would enable exploration and production from around 3 tn cf (trillion cubic feet) of gas reserves. This would lead to increase in domestic supply of natural gas, the note points out. The note pointed out that investment in exploration and development plan declined in the last few y
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Deepest oil well drilled by ONGC at KG basin
According to a company statement, ONGC drilled the well 1-D-1 in a block at Krishna Godavari basin. This is the deepest well drilled by the firm at a water depth of 10,411 feet (3,174 meters). The well was drilled at the block KG-DWN-2005/1. The state-owned firm drilled over 100 deepwater wells since 2004. A large number of these wells are in water depth beyond 5,000 feet in environmentally and logistically difficult areas of east and west coast, ranging from
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Crude oil futures rise to one-year high
Geopolitical tension in the middle-east and expectation of rise in demand for crude oil in the US propped up oil prices in the international market to a one year high. Crude for August delivery settled at $101.24 a barrel on the New York Mercantile Exchange at a recent trading session. Tracking the most-active contracts, futures prices marked their highest settlement and first close above the k
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ONGC to invest Rs 35 bn to redevelop gas field
After discovering gas in the southern part of the South Bassein field, Oil and Natural Gas Corporation (ONGC) decided to undertake redevelopment programme at a cost of Rs 3,513 crore in the area. Under this programme, the firm would set up a new platform, drilling new wells, subsea systems etc. The additional gas will come on stream in the next 2-3 years time after the wells are
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Gas price hike may fetch $2.2 bn more income to govt
A report by brokerage firm Bank of America Merrill Lynch shows that government may get an additional revenue of $2.2 billion owing to its decision to double domestic natural gas price. The government would use this additional revenue, which it may get through higher taxes and profit, to fund rise i
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ONGC set to award vessel contract to Cochin Shipyard
Media reports indicate that ONGC is in the process of giving a contract to Cochin Shipyard for manufacturing a seismic ship. A seismic vessel carries equipment that sends down sound waves to the sea-bed and capture their reflections. Cables (called ‘streamers’) several kilometre long are laid is the water and an airgun is fired from the vessel. ‘Hydrophones’ on the cables, which lie at regular inter
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OMC underecovery on the rise due to rupee weakness
Media reports indicate that state-run oil marketing companies (OMCs) are incurring an under-recovery of Rs 8.60 for per litre sale of diesel because of the sharp depreciation in rupee. This may be compared to the under-recovery of just Rs 2.62 in March. Owing to the decline in the rupee value against dollar, losses on diesel rose to 8.60 per litre and after adding local sales tax or VAT, the desired increase in retail
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Cargo handling rises 12% in New Mangalore Port
During Apr-June 2013, New Mangalore Port handled a total of 9.66 million tonne of cargo and this is 12.2 percent higher than 8.61 million tonne handled during the year-ago period. The growth in the cargo volume is led by crude oil and coal, media reports suggest. The port traditionally handles crude oil and petroleum products of Mangalore Refinery and Petrochemicals (MRPL). Also, it handles a considerable amo
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Kazakh govt’s move dashes ONGC’s hope on Kashagan field
The Kazakh government exercised its right of first refusal (ROFR) or pre-emption rights to acquire the 8.4 per cent stake held by ConocoPhillips in Kashagan oilfield. In November 2012, India's ONGC decided to buy ConocoPhillips' 8.4 per cent stake in Kazakhstan's biggest oilfield, Kashagan for $5 billion. But, according to a law in Kazakhstan, the national government has the ROFR that allowed it an option to buy the stake at the price agreed between ONGC and Con