Global crude oil price of Indian Basket was US$ 61.17 per bbl on 17.04.2015
Global crude oil price of Indian Basket was US$ 61.17 per bbl on 17.04.2015
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$ 61.17 per barrel (bbl) on 17.04.2015. This was higher than the price of US$ 60.23 per bbl on previous publishing day of 16.04.2015.
In rupee terms, the price of Indian Basket increased to Rs 3813.95 per bbl on 17.04.2015 as compared to Rs 3756.55 per bbl on 16.04.2015. Rupee closed stronger at Rs 62.35 per US$ on 17.04.2015 as against Rs 62.37 per US$ on 16.04.2015. The table below gives details in this regard:
Particulars
|
Unit
|
Price on April 17, 2015(Previous trading day i.e. 16.04.2015)
|
Pricing Fortnight for 16.04.2015
(March 28 to April 10, 2015)
|
Crude Oil (Indian Basket)
|
($/bbl)
|
61.17 (60.23)
|
54.92
|
3813.95 (3756.55)
|
3425.91
| ||
Exchange Rate
|
62.35 (62.37)
|
62.38
|
Daily Crude oil price- 20.04.2015
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Development of Coal Bed Methane
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the Government has taken steps to explore and exploit Coal Bed Methane (CBM), Shale Gas and Gas Hydrates. For Underground Coal Gasification (UCG), the policy has not been finalized by Ministry of Coal.
In order to harness CBM potential in the country, the Government of India has awarded 33 CBM blocks under 4 rounds of CBM bidding and on nomination basis. Total prognosticated CBM resources for 33 awarded blocks is about 63.3 TCF (1792.43 BCM) of which so far, 9.9 TCF (280.8 BCM) has been established as Gas – In – Place (GIP). As on date, 8 CBM blocks have entered the Development Phase, 5 blocks are in exploration phase and for 4 CBM blocks grant of PEL from the respective State Government is awaited. 16 CBM blocks have been relinquished or are under relinquishment.
The Government has, on 14.10.2013, notified the policy guidelines for exploration and exploitation of shale gas and oil by National Oil Companies (NOCs) in their onland PEL(Petroleum Exploration Lease) /PML (Petroleum Mining Lease) blocks awarded under the nomination regimes. Under the first phase of assessment (3 years) 55 PEL/PML blocks (ONGC 50, and OIL – 5) have been awarded to NOCs. These blocks are located in the states of Assam (6 blocks), Arunachal Pradesh (1 block), Gujarat (28 blocks), Rajasthan (1 block), Andhra Pradesh (10 blocks) and Tamil Nadu (9 blocks). ONGC has drilled one well and spudded another well in Cambay Basin, Gujarat for assessment of shale gas/shale oil potential where coring has been completed. In addition, ONGC has collected cores from another 8 wells.
The National Gas Hydrate Programme (NGHP) was formulated by MoP&NG in 2000. The first NGHP Expedition – 01 was launched 2006, wherein coring was done at 21 sites in Western, Eastern and Andaman offshore areas to obtain information on presence of Gas Hydrates. The data so collected has established Gas Hydrates deposits in KG, Mahanadi and Andaman offshore areas.
NGHP Expedition – 02 is in progress wherein 40 wells shall be drilled/cored in KG and Mahanadi offshore areas to obtain information on sand prone Gas Hydrates. As on 31.03.2015, Logging while drilling (LWD)/ Measuring while drilling (MWD) operations have been completed in 12 wells.
A Multi Organizational Team (MOT) of DGH, ONGC, OIL, GAIL was formed by MoPNG to analyse the existing data set and suggest methodology for Shale Gas development in India.
Based on scrutiny of geo-scientific data, MOT has identified six prospective basins namely, Cambay, Krishna-Godavari onland, Cauvery onland, Assam-Arakan and Indo-Gangetic for assessment of Shale Gas potential. ONGC and OIL are presently permitted to carry out Shale Gas and Oil exploration and exploitation activities in the PEL/PML areas awarded under nomination regime.
The Shale Gas/Oil data generated by ONGC and OIL is reviewed by DGH and maintained by the National Oil companies.
Various agencies have estimated the shale gas and oil resource potential in selected sedimentary basins/ sub basins in India. The details are as under:
i. M/s Schlumberger: 300 to 2100 tcf of shale gas in the country (as available in public domain);
ii. Energy Information Administration (EIA), USA in 2011: 290 tcf of shale gas in four basins namely, Cambay, KG, Cauvery and Damodar;
iii. United States Geological Survey (USGS) in Jan’12: 6.1 tcf of technically recoverable shale gas in 3 basins, namely, Cambay, KG & Cauvery.
iv. EIA, USA in 2013: 584 tcf of shale gas and 87 Billion barrel of shale oil in 4 basins namely, Cambay, KG, Cauvery and Damodar;
v. ONGC in 2013: 187.5 tcf of shale gas in 5 basins namely, Cambay, KG, Cauvery, Ganga & Assam and Assam – Arakan;
vi. Central Mine Planning and Design Institute (CMPDI) in Jul’13: 45 tcf of Shale Gas in Gondwana basin;
The policy guidelines for exploration and exploitation of Shale Gas and Oil by National Oil Companies (ONGC and OIL) in their onland Petroleum Exploration License (PEL) / Petroleum Mining Lease (PML) areas awarded under the nomination regimes, was issued on 13th October, 2013. As per the policy, ONGC and OIL will undertake a mandatory minimum work programme in a fixed time frame for shale gas and oil exploration and exploitation. Under the first phase of assessment (3 years) 55 PEL/PML areas (ONGC 50, and OIL – 5) have been awarded to NOCs.
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Exploration of Crude Oil and Natural Gas in the River Beds
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the oil and gas exploration activities are planned in the sedimentary basins having suitable geological setup for generation, accumulation, migration and entrapment of oil and gas in geological structure.
Under the Production Sharing Contract (PSC) regime, so far, 9 exploration blocks have been awarded in Ganga basin under various rounds of bidding under New Exploration Licensing Policy (NELP). Out of the 9 blocks, 8 blocks have been relinquished and 1 block is under operation at present.
In so far as Bihar State is concerned, under the PSC regime, 3 exploration blocks have been awarded under various rounds of bidding under NELP. 2423 Line Kilometre(LKM) of 2D & 947 Square Kilometre(SKM) of 3D seismic data have been acquired and 3 exploratory wells drilled in these blocks. However, no oil/gas discovery has been made. All these exploration blocks have been relinquished by operators.
ONGC has acquired 8490 LKM of 2D, 947 SKM of 3D seismic data and has drilled 8 exploratory wells in Ganga, Kosi and Gandak basins in the State of Bihar.
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LNG Pipeline Project
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that GAIL has been authorized by the Ministry to lay Kochi-Kanjirkkod-Bangalore-Mangalore pipeline for transportation of natural gas from Kochi LNG terminal to various industries in the States of Kerala, Tamil Nadu and Karnataka. The project is being executed in two phases. Phase-I of the project covering various industries in and around Kochi city has been completed and phase-II covering seven districts of Kerala is being executed by GAIL.
For laying the gas pipeline, Right of Use (RoU) has been acquired by GAIL in accordance with the provisions of Petroleum & Minerals Pipeline Act (P&MP) Act, 1962. As per the provisions of the Act, the ownership of land remains with the land owner and subsequent to completion of laying of pipeline, land is restored back to its original condition and handed to the respective land owner. Further, compensation is paid to the respective land owner by the entity authorized for laying of pipeline on account of following:
(i) land compensation @ 10% of prevalent market value of land for using the land for laying pipeline.
(ii) Crop compensation for the crops damaged during construction (actual/presumptive)
(iii) Compensation for trees felled for construction works
(iv) Compensation for miscellaneous/incidental damages
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Arbitration Cases of Oilfield Disputes
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the Government of India has entered into 310 Production Sharing Contracts (PSCs) so far in Pre-NELP field & exploration bidding rounds and NELP exploration bidding rounds. 22 arbitration cases have been initiated with regards to these contracts in the last 15 years, i.e. 5 cases during the period 2001-2005, 6 cases in 2006-2010 and 11 cases in 2011-2015. The names of contractors / companies which have initiated arbitration includes Hindustan Oil Exploration Company Limited (HOEC); Niko Resources Limited (NECO); Cairn India Limited (CIL); Videocon Industries Limited (VIL); Great Eastern Energy Corporation Limited (GEECL); SELAN Technologies; Hardy Exploration & Production India Limited; Canoro Resources Limited; Reliance Industries Limited (RIL); British Petroleum Exploration (Alpha) Limited; British Gas Exploration and Production India Limited (BGEPIL); Assam Company India Limited (ACIL); Ravva Oil Singapore Pte. Limited; etc.
Prompt action is being taken in all the cases by Government for early resolution as per the provision of the PSC.
DGH has submitted suggestion for improving the dispute resolution mechanism.
DGH has not recommended any case for investigation by RAW.
The Government has recently come out with a Policy Framework for Relaxation, Extensions and Clarifications at the Development and Production Stage under the PSC Regime for Early Monetization of Hydrocarbons Discoveries, through which many long pending issues pertaining to different blocks have been resolved.
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Funds Allocated by OIDB
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that as per the Oil Industry (Development) Act 1974, OIDB gives grants and loans for exploration/production of mineral oil, refining, processing, transportation, storage, handling and marketing of mineral oil, production and marketing of all products down-stream of an oil refinery, and the production of fertilizers and petro-chemicals and all activities directly or indirectly connected therewith. Accordingly, OIDB has been providing financial assistance to oil companies. The financial assistance in the form of loans provided by OIDB to oil companies during the last three years is given below:
(Rs. in crores)
2012-13 2013-14 2014 -15
2307.00 2487.65 1459.85
OIDB sanctions funds for the purposes mentioned in OI(D) Act, 1974 based on the need of the oil companies and subject to availability of funds.
The details of funds released by OIDB to Petroleum Conservation Research Association (PCRA) during the last three years are as under:-
(Rs. in crores)
2012-13 2013-14 2014-15
46.96 41.54 40.86
It is difficult to estimate the fuel conserved solely due to the efforts of PCRA, though PCRA informed that as per the impact assessment studies by market research organizations, estimated perceived saving on petroleum products in the year 2012-13 was about Rs.19490 crores, and saving in the year 2013-14, over a period of 5 months of intensive campaigning, was about Rs.25757 crores.
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MoC Signed by ONGC
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that Oil and natural Gas Corporation Limited (ONGC) and Pan-IIT has signed a Memorandum of Collaboration (MoC) on 19th January, 2015 at New Delhi to work towards a collective R&D Programme for developing indigenous technologies to enhance exploration and exploitation of hydrocarbons and alternate sources of energy. Pan IIT is a consortium of seven premier Indian Institutes of Technology, namely, IIT-Kharagpur, IIT- Kanpur, IIT-Madras, IIT-Mumbai, IIT-Delhi, IIT-Guwahati and IIT-Roorkee. This is a long-term initiative for sustained research, development and capacity building.
Under the MoC, ONGC’s R&D Institutes and the IITs shall jointly undertake advanced research and development projects for the Exploration and Production (E&P) sector of the country in general and oilfield specific activities of ONGC in particular. The MoC also envisages promoting internships, visiting and adjunct faculty programmes, research oriented career programmes through an ONGC Scholar Programme. Within the ambit of this collaboration, ONGC will make its laboratories available to the students and research scholars of IITs. Also, ONGC geoscientists and engineers will have the opportunity of working with IITs.
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Investment by British Petroleum
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that an application for authorisation to market Aviation Turbine Fuel (ATF) was submitted to the Ministry of Petroleum and Natural Gas from BP Exploration (Alpha) Limited (BPXA), a wholly owned subsidiary of BP plc on 11th June, 2014 claiming investment of US$477 million (including US$ 259 million of Capex investment) and proposed investment of US$2300 million.
To get marketing rights for transportation fuels, namely, Motor Spirit (MS), High Speed Diesel (HSD) and Aviation Turbine Fuel (ATF) applicant must meet the requirements as per Clause 3 of Marketing Resolution dated 8th March, 2002. The requirements interalia, include investment or proposed investment of Rs. 2000 crore in exploration or production, refining, pipelines or terminals leading to additionality to the existing assets and /or creation of new assets in the eligible activities.
With reference to this application dated 11th June, 2014, Directorate General of Hydrocarbons has reported that British Petroleum (BP) share of expenditure was US$508 million between financial year 2011-12 and financial year 2013-14 of which the capital expenditure (Capex) component and operational expenditure (Opex) component is US$171 million and US$337 million respectively. This did not meet the joint requirements of the Clause 3(I) and 3(IV) of the Marketing Resolution dated 8th March, 2002, and thus the application dated 11.6.2014 was rejected.
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