Union Petroleum Minister Veerappa Moily is quoted as saying that the government would arrive at a consensus on the pricing of natural gas after considering the reservations of the power and fertiliser ministries. Moily has reportedly said his ministry has not yet approved $8-$8.5 per mmbtu as the new uniform gas price, as suggested by the committee headed by
Category: Oil & Gas
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House panel suggests JV firm for oil import
The Parliamentary standing committee on petroleum and natural gas suggested the formation of a joint venture firm by all the state-run refiners who import crude oil from abroad. The proposed joint venture firm, that would be promoted by all the interested state-run refiners, must be entrusted with the work of importing of crude oil requi
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OMCs fail to avoid demurrage cost
A Parliamentary Standing committee strongly felt that the huge demurrage cost of about Rs 665 crore incurred by state-run oil marketing companies (OMCs) between 2009 and 2012 was avoidable and not due to uncontrollable factors. Owing to their failure to have requisite infrastructure, the three OMCs – IOC, HPC and BPCL – paid Rs 665 crore in this period to domestic ports, the com
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Gujarat Gas vulnerable to tariff control by PNGRB
Gujarat Gas received authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) for the city gas distribution areas of Surat, Bharuch and Ankleshwar. The company filed tariff application with PNGRB for its transmission pipeline. However, owing to high ROE (return on equity) of over 30 percent, the company is vulnerable to tariff reduction from PNGRB, as was ordered for Indraprastha Gas. This is an operational performance risk, poin
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Iran offers production sharing contracts to Indian firms
Media reports indicate that Iranian Foreign Minister Ali Akbar Salehi offered production sharing contracts (PSCs) to Indian the oil and gas exploration companies that are investing in the Persian gulf nation. The country's foreign minister is learnt to have made the offer during an India-Iran Joint Commission meeting with
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State-run OMCs avoid hedging oil purchase
State-run oil marketing companies (OMCs) avoid hedging their spot purchase of crude oil from the global market as it may work in either ways. This was mentioned in the recent report of the standing committee on petroleum and natural gas submitted to the Parliament recently. The report quoted Bharat Petroleum Corporation (BPCL) Chairman as saying that state-run oil firms, which undergo stringent audit by CAG, don't want to take the risk o
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ONGC seeks buyers for natural gas
Oil and Natural Gas Corporation (ONGC) intends to sell 15,000 standard cubic metre per day (scmd) of gas from the marginal gas fields in Gamij near Kheda. The public sector major will sell the 15,000 gas from the field for a period of five years. For this purpose, the state-run energy explorer invited fresh bids from interested gas consumers after facin
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India envices interest in port, gas pipeline projects of Iran
During his recent visit to Iran, India's External Affairs Minister Salman Khurshid said his country is ready to participate in the Iran-Pakistan natural gas pipeline project and to invest in the development of the Iranian port of Chabahar. It may be recalled that originally, the project involved India, Pakistan and Iran and it was named Iran-Pakistan-India (IPI) or Peace Pipeline. However, in the cour
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Govt asks IOC to sell ATF at discount to Air India
Media reports indicate that some state-run oil marketing companies (OMCs) agreed to sell aviation turbine fuel (ATF) to the loss-making Air India at a concessional rate at the behest of the government. It is learnt that Indian Oil Corporation (IOC) agreed to sell fuel to Air India at a discount of 8 per cent. Some reports indicate that Air India will be charged Rs 5,300 lowe
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Govt asks IOC to sell ATF at discount to Air India
Media reports indicate that some state-run oil marketing companies (OMCs) agreed to sell aviation turbine fuel (ATF) to the loss-making Air India at a concessional rate at the behest of the government. It is learnt that Indian Oil Corporation (IOC) agreed to sell fuel to Air India at a discount of 8 per cent. Some reports indicate that Air India will be charged Rs 5,300 lowe