Global crude oil price of Indian Basket was US$ 70.08 per bbl on 02.12.2014
Global crude oil price of Indian Basket was US$ 70.08 per
bbl on 02.12.2014
The international crude oil price of Indian Basket as
computed/published today by Petroleum Planning and Analysis Cell (PPAC) under
the Ministry of Petroleum and Natural Gas was US$ 70.08 per barrel (bbl) on
02.12.2014. This was higher than the price of US$ 67.72 per bbl on previous
publishing day of 01.12.2014.
In rupee terms, the price of Indian Basket increased to Rs
4340.05 per bbl on 02.12.2014 as compared to Rs 4208.12 per bbl on 01.12.2014.
Rupee closed stronger at Rs 61.93 per US$ on 02.12.2014 as against Rs 62.14 per
US$ on 01.12.2014.
The table below gives details in this regard:
Particulars
|
Unit
|
Price
on Dec 02, 2014 (Previous
trading day i.e.
01.12.2014)
|
Pricing Fortnight for
01.12.2014
(Nov 13 to Nov 26, 2014)
|
Crude
Oil (Indian Basket)
|
($/bbl)
|
70.08
(67.72)
|
76.43
|
(Rs/bbl
|
4340.05 (4208.12)
|
4723.37
|
|
Exchange
Rate
|
(Rs/$)
|
61.93
(62.14)
|
61.80
|
MJPS/Rk/Daily Crude oil price-
03.12.2014
***
Increasing Supply of Oil and Gas
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
the domestic refining capacity for all petroleum products, except LPG is in
excess of the domestic demand. The balance requirement of LPG is met through
imports. Such imports are planned on calendar year basis depending upon
projected LPG demand and availability ex indigenous source. The supply demand
scenario is monitored on regular basis and additional imports are tied up as and
when required.
In order to accelerate the pace of exploration and
production of oil and gas in the country, the Government has taken various
policy initiatives which include:
i. Offering of exploration blocks through NELP bidding
rounds.
ii. Encouraging exploration and exploitation of alternative
energy sources, such as Coal Bed Methane (CBM), Shale Gas/Shale Oil and Gas
Hydrates etc.
iii. Policy for exploration and exploitation of Shale
Gas/Shale Oil resources by NOCs under the Nomination Regime.
iv. Policy for exploration in the Mining Lease (ML) areas
after the expiry of exploration period.
v. Policy on Non-exclusive Multi-client Speculative Survey
for assessment of unexplored sedimentary basins.
vi. Policy frame work for relaxation, extensions and
clarifications at the development and production stage under the PSC regime for
early monetization of hydrocarbon discoveries.
Presently there are no restrictions on the quantity of crude
oil and petroleum products imports in India. However, Public Sector Oil
Marketing Companies (OMCs) are allowed to import crude oil only on FOB basis.
CFR imports are being made with the grant of No objection from Ministry of
Shipping on case-to-case basis.
****
Guidelines to LPG Distributors for New Connections
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
the documents required to be produced by a customer before a Public Sector Oil
Marketing Companies (OMCs) LPG distributor for taking a LPG gas connection are
valid Proof of Identity (POI) and valid Proof of Address (POA). The prospective
customer has to submit a one page KYC (Know Your Claim) form and a standard
Declaration indicating that he/she is not having any domestic LPG connection
also.
OMCs have reported that it is not mandatory for a
prospective customer to produce ration card for releasing a new LPG connection.
****
Investment for Oil and Gas Exploration in Odisha
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
the Government has planned to conduct 2D survey of all unapprised sedimentary
basins of India including Mahanadi –NEC (North East Coast) basin.
In Mahanadi – NEC Basin (onland, shallow water and deep
water) 20 blocks have been awarded of which, 14 have been relinquished, 2 are
proposed to be relinquished and 4 are operational. Exploratory work in 4
operational blocks is in progress.
13 gas discoveries have been made in the four operational
Blocks in Mahanadi – NEC basins namely MN-DWN-98/3, MN-OSN-2000/2 and
NEC-DWN-2002/2 of ONGC and NEC-OSN-97/2 of Reliance India Limited. Inplace
reserves of 81.87 MMToe and ultimate reserves of 7.93 MMToe have been estimated
by the ONGC in their three blocks.
****
Fake Gas Cylinders
The
Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan
informed the Rajya Sabha in a written reply today that the possibility of
spurious gas cylinders cannot be ruled out. Public Sector Oil Marketing
Companies (OMCs) have reported the LPG cylinders received from their
distributors/transporters at the bottling plants are checked for the
genuineness. Spurious cylinders are confiscated and de-shaped and erring
distributors/transporters are penalized as per the provisions of transport
contract.
Details of
spurious LPG cylinders detected in Delhi by OMCs at their LPG bottling plants
during last three years are as under:-
2011-12
|
2012-13
|
2013-14
|
32
|
496
|
580
|
***
Kelkar Panel Recommendation for PSC for Oil
Exploration/Production
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
the committee has recommended the Production Sharing Contract (PSC) model as
the preferred contractual model for Indian basins. The Kelkar Committee has
proposed two fiscal regimes either of which could be deployed:
(i) Model I: PSC linked to Investment Multiple, with
modified contract administration including self-certification costs by the
contractors: and
(ii) Model II: PSC with ‘biddable’ supernormal profits tax
(b) The Committee has recommended that DGH should be
transitioned from its current role of being an advisor to being an independent
regulator for the upstream oil and gas sector.
The Committee has recommended that DGH should be given quasi
judicial powers accompanied by an Appellate Tribunal for fast and effective
dispute resolution as is the case with SEBI. The status of the head of the DGH
should be at par with that of other empowered regulator heads in the country,
such as SEBI, TRAI, etc.
(c) The Government has not finalized its response to the
report of the committee.
****
Disclosure by a Country-Wide Gang Involved in Meter
Tempering
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
Oil Marketing Companies (OMCs) have reported that no country-wide gang involved
in meter tampering has been arrested recently. Incident of tampering involving
a few retails outlets in Hyderabad in January, 2014 and another retail outlet
in Bhopal in November, 2014 has however been reported.
Action is taken in established cases of short supply
irregularity as follows: (i) Irregularity: Short Delivery (W&M Seals
intact): Sales and supplies to be suspended forthwith from the concerned
dispensing unit till recalibration & re-stamping are carried out before
recommencement of sales.
First Instance: Warning letter to be issued.
Second Instance: within one year of 1st instance: of Rs.
10,000/- per nozzle found delivering short.
Third and subsequent instances within one year of the 1st
instance: Rs. 25,000/- per nozzle found delivering short.
(ii) Irregularity: Delivery of product with W&M
seal/totaliser seal tampered : Sales and Supplies to be suspended from the
concerned dispensing unit, DU sealed. Samples to be drawn of all the products
and sent to Lab for testing. Termination (in case of unsatisfactory reply by
dealer to the show cause notice issued by the company action of termination of
dealership irrespective of delivery being short/excess/correct).
(iii) Irregularity: Additional fitting found in Dispensing
Unit (DU): Sales and supplies to be suspended from the concerned dispensing
unit DU sealed. Samples to be drawn of all the products and sent to Lab for
testing. (In case of unsatisfactory reply by Dealer to the show-cause notice
issued by the company, action of Termination of dealership irrespective of
delivery being short/excess/correct).
****
Non-Recovery of Losses of KG D6 Basin
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
the Ministry vide its letter dated 02.05.2012, 10.09.2013, 14.11.2013 and
10.07.2014, had disallowed development cost based on the cumulative shortfall
in production of gas vis-à-vis production estimates under the approved AIDP
(Addendum to Initial Development Plan) for corresponding years incurred by the
Contractor. The total disallowed development costs as on 31st March 2014
amounts to US $ 2.376 billion. As a result of above disallowance of a portion
of contract cost, contractor is liable to pay additional profit petroleum of
USD 195,341,957 to the Government for period upto the 2013-14.
The possible alternatives for affecting the recovery of
additional profit petroleum from the contractor are being worked out.
The contractor of the block has invoked arbitration on this
issue.
Contractor has not drilled the required number of gas
producer wells in D1 & D3 fields in line with the Addendum to Initial
Development Plan (AIDP) approved by the Management Committee (MC) which has
resulted in shortfall in production of gas vis-à-vis production estimates under
the approved AIDP from D1 & D3 fields of block KG-DWN-98/3.
****
Budgetary Support to IOCL for Financing PCPIR
The Minister of State (I/C) for Petroleum & Natural Gas Shri
Dharmendra Pradhan informed the Rajya Sabha in a written reply today that as
per information provided by Department of Chemicals and Petrochemicals, no
budgetary support has been provided to Indian Oil Corporation Limited for part
financing the capital cost of Petroleum, Chemicals and Petrochemicals
Investment Region (PCPIR).
Foreign Direct Investment (FDI) proposals pertaining to
Petrochemicals and Chemicals are permitted up to 100% under FDI policy. No
separate fast track provisions are there for FDI proposals for PCPIR.
****
Benefits to OMCS Due to Skewed Pricing Mechanism
The Minister of State (I/C) for Petroleum & Natural Gas
Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that
the Public Sector Oil Marketing Companies (OMCs) have contributed towards under
recoveries and paid income tax and dividend to the Government of India. It is
also pointed out that the profit as a percentage of turnover of OMCs is around
1% which is barely enough to meet their fund requirements for modernization and
upgradation.
Refining is a cyclical industry characterized by very
volatile prices. Providing some level of protection and thereby adequate
refining margins is necessary for encouraging investment in expansion, and more
importantly in modernization of our domestic refineries. Failure on this count
can impede our quest for energy security. Further, many of the public sector
refineries are very old (built between 1901 to 1985) and located in sub
economic zone (such as the North-East refineries) with low economic of scale and
therefore often have very low GRMs.
As per the recommendations of the Rangarajan Committee 2006,
the Refinery Gate Price of Petrol and Diesel is based on Trade Parity Pricing
(TPP). Accordingly, OMCs procure diesel at Trade Parity Price (TPP) from public
and private sector refineries.
****
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