Search This Blog

R K Singh the next chief of Bharat Petroleum Corporation Ltd (BPCL)  

NEW DELHI: The wheel has come a full circle for the state-run oil industry. Almost a decade after IndianOil Corporation's Subir Raha was moved to take over the reins of flagship explorer Oil and Natural Gas Corporation, the government on Wednesday chose ONGC Videsh managing director Ranbir Singh Butola as the next helmsman of India's largest refining and fuel marketing firm.

Butola's selection by the government's headhunter, Public Enterprises Selection Board, follows Tuesday's pick for the next chief of Bharat Petroleum Corporation Ltd (BPCL). R K Singh, 57, who is at present director (refineries) in the company, will succeed Ashok Sinha as the chairman of the second-largest state refiner-marketer that has been at the vanguard of many fuel marketing initiatives such as the `Pure for Sure' campaign.

Both Singh and Butola will be part of a complete change of leadership in government oil companies that started with Subir Roychoudhuri taking over from Arun Balakrishnan as chairman of Hindustan Petroleum on August 1. The government is now left with the task of picking a successor to ONGC chairman R S Sharma, who will retire on January 31, to complete the change in leadership. In between, it will also have to select five-six directors for all these firms.

Butola, 56, is credited with putting India on global energy map with successful acquisitions such as Russia-focused Imperial Energy and stakes in acreages in Egypt and Latin America. A post-graduate in business management and a certified member of the Indian Institute of Bankers, Butola worked in a nationalised bank and also functioned as OSD to then internal security minister Rajesh Pilot. He has been ONGC Videsh MD since May 2004.

Butola will take over from B M Bansal, who has been officiating as IndianOil chairman since February after the government denied extension to Sarthak Behuria on completion of his five-year term. At BPCL, Singh will take over from Sinha, who resigned after it appeared that he, too, was likely to receive the same treatment.

AddThis Social Bookmark Button

R. S. Butola to head IOC  

R. S. Butola to head IOC

R. S. Butola

NEW DELHI: Managing Director of the State-run ONGC Videsh (OVL), Ranbir Singh Butola was on Wednesday selected to head Indian Oil Corporation (IOC), nation's largest refining and fuel marketing firm.

Official sources in the Petroleum and Natural Gas Ministry said the approval for Mr. Butola's appointment came from the Public Enterprise Selection Board (PESB) which interviewed six candidates and named Mr. Butola as its top choice for the IOC job.

The PESB has also approved the appointment of R. K. Singh for the post of Chairman and Managing Director of Bharat Petroleum Corporation Ltd. The matter will now go the Cabinet Committee on Appointments for approval.

Mr. Butola, 56, the man responsible for giving India a standing in the global oil scene with acquisitions such as Russia-focused Imperial Energy, oil and gas assets in Venezuela, the Russian asset of Sakhalin and the latest bid to buy BP stake in a Vietnam project, was the senior most in the race and a natural choice to head IOC.

Born on May 5, 1954, Mr. Butola joined ONGC in February 1991 as Deputy General Manager (F&A) and was appointed as Director (Finance) of OVL on November 15, 2002. He succeeded Atul Chandra as the Managing Director of the company on May 13, 2004. He holds a Master's in Business Management with specialisation in Finance.

The post of IOC chairman fell vacant after the government declined an extension of service to Sarthak Behuria till his superannuation age of 60 in 2012.

…………..Special Correspondent …..from the pages of THE HINDU newspaper.

AddThis Social Bookmark Button

Who will be the next Chairman, Indian Oil Corporation  

Butola is front runner to head IOC

Our Bureau….. New Delhi, Sept. 29……from the pages of THE HINDU BUSINESS LINE newspaper.

The ONGC Videsh Ltd (OVL) Managing Director, Mr R. S. Butola, is said to have emerged as a front runner for the post of Chairman, Indian Oil Corporation (IOC). In February, Mr Sarthak Behuria was denied extension as the Chairman of IOC. Currently, Mr B. M. Bansal is holding charge as the Chairman.

On Wednesday, the Public Enterprises Selection Board (PESB) interviewed candidates and short-listed two names.Its recommendations will go the nodal Ministry, in this case the Ministry for Petroleum and Natural Gas.The Ministry will process it further and forward it the Appointments Committee of the Cabinet (ACC) for formal approval.According to an official source, only six of the 14 candidates short-listed appeared for the interview.

They were Mr U.K. Basu, MRPL Managing Director; Mr A.M. K. Sinha, Executive Director, IOC; Mr A. S. Lamba, Additional Secretary and Financial Advisor in the Ministry of Agriculture; Mr Ramanand, Instrumentation Ltd Chairman and Managing Director; and Mr O P Pradhan, Executive Director, HPCL, besides Mr Batola.

AddThis Social Bookmark Button

Kuwait Petroleum Corporation wants stake in Indian Oil Corporation  

New Delhi, Sept. 27: Kuwait Petroleum Corporation is keen to pick up a stake in Indian Oil Corporation (IOC) if the government decides to divest a part of its holding to a strategic investor.

“The government is divesting some of its shares, may be offering a certain percentage to a strategic investor. We are interested in such a proposal, subject to feasibility studies and economics of the offer,” Kuwait’s oil minister Sheikh Ahmad al-Abdullah al-Sabah said after a meeting with the IOC management here today. Indian Oil plans to issue fresh shares amounting to 10 per cent of its equity through a follow-on offer. The government, which owns 78.92 per cent in the PSU, will separately sell 10 per cent of its stake. Al-Sabah insisted that the possibility of Kuwait Petroleum Corporation — of which he is the chairman — or the Kuwait Investment Authority buying into IOC arose only if the government agreed to give them a strategic stake. He said Kuwait had discussed with IOC the possibility of increasing long-term crude supplies to the company, which accounted for 28 per cent of the country’s refining capacity of 3.76 million barrels a day.

Kuwait supplies nine million tonnes of crude per year to IOC, chairman B.M. Bansal said. The company’s requirement will rise after it commissions the 300,000-barrel-a-day refinery and petrochemical complex at Paradip in Orissa in 2011-12. The visiting minister discussed Kuwait Petroleum Corporation’s participation in the Rs 29,777-crore project. Besides discussing long-term contracts for crude to India, al-Sabah deliberated on the Organization of Petroleum Exporting Countries (Opec) using the crude storage facilities being built in Mangalore and Visakhapatnam. He said Kuwait was worried about Opec members actually complying with their production quotas and would discuss the matter at the group’s meeting in Vienna on October 14. The 12-member cartel is unlikely to change production quotas as current oil prices are “comfortable”, he said.
Kuwait keen on IOC stake….by….The Telegraph………

AddThis Social Bookmark Button

And now a 12 MT refinery in Allahabad by BPCL  

Bharat Petroleum Corporation plans to have a new refinery in place at
Allahabad by 2020 by which time its total refining capacity will be
upwards of 60 million tonnes (mt). This will translate into a market
share of 35 per cent, top industry sources told Business Line. The
Allahabad refinery will have a capacity of at least 12 mt and will be
the fifth in the BPCL line-up after Mumbai, Kochi, Numaligarh (in
Assam) and Bina (Madhya Pradesh). BPCL's present refining capacity is
30.5 mt with Mumbai taking up the lion's share of 12 mt, followed by
Kochi (9.5 mt), Bina (scheduled for commissioning in the coming
months) at six mt and, finally, Numaligarh (three mt).
By 2020, both Kochi and Bina are expected to reach 15 mt each while
Numaligarh's capacity will have been doubled to six mt. The Allahabad
refinery will be a strategic fit for BPCL from the viewpoint of
servicing the northern region which is seeing a huge demand for
petro-products.BPCL had, many years earlier, zeroed in on Sultanpur in
Uttar Pradesh as the original site for the refinery. This was then
planned as a joint venture with Shell but the project remained on
paper. Since then, the location shifted to Allahabad, and BPCL will
now commission the project on its own. If things go according to plan,
2020 will see the oil major emerge the second largest downstream
player in the public sector after Indian Oil Corporation. Hindustan
Petroleum Corporation is expected to be over 45 mt with its refineries
in Bhatinda, Visakhapatnam and the new project on the west coast which
will replace the decades-old Mumbai refinery.
For the moment, BPCL is giving top priority to the Bina refinery which
will be one of its biggest growth drivers in the product-starved
regions of central and northern India. In fact, sources say that the
expansion to 15 mt could happen even in 2012-13, which would be less
than two years of commissioning the refinery. Once Allahabad is also
up and running some years later, the product pipeline from Bina could
also be extended here with the result that the entire Madhya Pradesh
and Uttar Pradesh belts could be serviced by BPCL. "This marks a big
leap forward from the present scenario where the company's presence is
largely confined to the south and west," sources said. BPCL has drawn
up 'Project Dream Plan' which will see its refining capacity touch 45
mt during 2015-16 translating into a market share of 33 per cent.
Mumbai, Sept. 27 :: ….by…..Murali Gopalan…. In the HINDU BUSINESSLINE

AddThis Social Bookmark Button



AddThis Social Bookmark Button

IPO of Indian renewable energy-based power generation company Orient Green Power Company subscribed 1.07 times  

Public issue of Indian renewable energy-based power generation company Orient Green Power Company (OGPL) has received mild reponse from investors. It has subscribed just 1.07 times, as per NSE website.

Major bids have been received at Rs 47, at lower end of price band of Rs 47-55 a share. Qualified institutional investors' reserved portion was subscribed 2.09 times till Thursday.

Orient Green aims to raise Rs 900 crore from public issue. A promoter Shriram EPC holds 35.8% stake in Orient Green Power. The remaining stake in the company is held by two private equity firms - Bessemer Venture Partners and Olympus Capital.

The issue proceeds will be used for the construction and development of four biomass projects of 37.5 MW; for funding subsidiaries, Orient Green Power Company (Rajasthan) for undertaking 8 MW biomass power project in Kishanganj, Rajasthan and Beta Wind Farms Private Limited (BWFPL) for undertaking 300 MW wind project in Tamil Nadu; and funding for subsidiaries BWFPL, PSR Green Power Company and Shriram Non-Conventional Energy for repayment of existing debt.

AddThis Social Bookmark Button

World’s first 100% synthetic coal-to-liquid (CTL) jet fuel  

SASOL launches world’s first synthetic CTL jet fuel

Thursday, September 23, 2010

SASOL launched the world’s first 100% synthetic coal-to-liquid (CTL) jet fuel on the market at the Africa Aerospace and Defence Show at Ysterplaat Air Force Base, near Cape Town. Synthetic fuels or biofuels developed in previous years were blended with conventional crude fuel or used only in one engine. SASOL achieved a milestone by using a fully synthetic fuel on a commercial flight. The company has no plans c currently to make the fuel commercially available. However, with the airline industry pledging to achieve carbon neutral growth from 2020 and reduce emissions 50% by 2050, there is a huge interest in the product from international airlines. According to Willem Louw, MD of Sasol Technology, the jet fuel does not provide lower CO2 emissions of the efficiency sought by the airline industry. However, he added that it was a cleaner burning fuel and placed less stress on engine components. Paul Morgan, manager of fuel technology at Sasol, says -"Sasol, together with researchers at Rhodes University, is looking at developing an algae

AddThis Social Bookmark Button

Updates on first shale gas well near Durgapur in Burdwan district of West Bengal  

ONGC ventures into shale gas exploration

Oil and Natural Gas Corporation (ONGC) has ventured into shale gas exploration by spudding the first shale gas well near Durgapur in Burdwan district of West Bengal.

The country’s biggest energy explorer also notified two new discoveries in the KG onshore basin and Cambay Basin to upstream regulator Directorate General of Hydrocarbons.

ONGC has worked out a comprehensive shale gas pilot execution programme to test flow shale gas and learn about proprietary technologies, initially in the Damodar Valley basins.

The beginning has been made with the spudding of the first well. The contract has been awarded to leading oilfield services provider Schlumberger and a result of this well is expected by end of October, said a company release. In March this year, the ONGC board approved a pilot project for exploration of shale gas in the Damodar Basin at Rs 128 crore.

ONGC’s close competitor Reliance Industries has already made a significant presence in shale gas through the acquisition of three shale gas acreages in the US this year. Reliance invested $3.45 billion in the acquisitions.

Last month, Bharat Petroleum Corporation bought two exploration acreages of shale gas operated by Norwest Energy in Perth, Australia. The Indian government is planning to launch auction of shale gas blocks in August 2011.

Shale gas is a natural gas contained within shale formations. Shale gas exploration and production around the globe in general, and in the US in particular, has witnessed a surge in activity in recent times and is making substantial contribution to gas production to the extent that shale gas is often regarded as a game changer in the hydrocarbon industry. In the US, shale gas production contributes to nearly 17 per cent of their total gas production.Courtesy:BS

AddThis Social Bookmark Button

Paradip-Haldia-Durgapur LPG pipeline  

IndianOil to invest Rs 1,700 cr on new pipelines

IndianOil (IOC) is investing Rs 1,700 crore to enhance its pipeline network.

Some of the major projects include the 700-km Paradip-Haldia-Durgapur LPG pipeline connecting its refineries and bottling plants, the 400-km Jaipur-Bijwasan naphtha pipeline and expansion of the Paradip-Haldia-Baurani crude pipeline.

“These are investment proposals awaiting approval. They will be finalised and given the go-ahead by December and commissioned in 30 months from the date of commencement,” Mr K.K. Jha, Director (Pipelines), told Business Line.

“We already have projects worth Rs 6,400 crore under various stages of execution. These are additional investments under consideration,” he said. The new projects are scheduled to be operational by mid-2013. Earlier this year, IOC commissioned its first natural gas pipeline, the 132-km network from Dadri in Uttar Pradesh to its Panipat refinery.

Mr Jha said the Rs 1,700-crore investment in new pipelines does not include the inter-State gas pipeline projects, which are part of the bidding rounds. The Petroleum and Natural Gas Regulatory Board (PNGRB) has initiated bidding for four inter-State gas pipelines. The IOC-led joint venture has bid for the Mallavaram-Bhilwara and Mehsana-Bhatinda pipeline projects covering 1,700 km each.

The company expects the bidding process to be completed by the end of this month. “PNGRB has to decide on the bids. We hear they will announce it by the end of this month,” Mr Jha said.

According to a research report by ICICI Securities, the consortium of IOC, Gujarat State Petronet Ltd (GSPL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) is better placed on easy financing and risk sharing for the gas pipeline projects.

“The combined capex for the four pipelines is anticipated at Rs 22,400 crore. If the GSPL JV (joint venture) wins all the bids, capex sharing with oil marketing companies will make it easier to arrange for necessary financing as GSPL's solvency ratio would not be stretched. Moreover, retail fuel outlets of IOC, BPCL and HPCL would be used for CNG sales in the future and the JV would have a readymade market for gas supplies to these outlets,” said the report.

IOC has already announced Rs 47,000-crore capital investment for setting up new refineries and expanding capacity, pipeline infrastructure and fuel outlets.

The Hindu Business Line, New Delhi, September 24, 2010

AddThis Social Bookmark Button

Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline  

Framework pact for TAPI pipeline inked

Heads of agreements for the proposed gas sales purchase agreement for the 1,680-km Turkmenistan-Afghanistan-Pakistan-India (TAPI) were signed by partner countries in Ashgbat on Monday. This follows two-day deliberations of TAPI’s steering committee meeting (SCM) in the Turkmenistan capital.

Jitin Prasad, minister of state for petroleum and natural gas, represented India in the meeting, an official statement said.

The project envisages to build 1,680 km of pipeline with a total gas capacity of 90 million cubic metres per day(mmscmd) with funding support from the Asian Development Bank.

The length of pipeline in Turkmenistan, Afghanistan and Pakistan up to Indian border is 145 km, 735 km and 800 km respectively. With the completion of TAPI gas pipeline, India would get 38 mmscmd of gas.

India joined this project in April 2008 and two important documents — initialisation of the Gas Pipeline Framework Agreement (GPFA) and the Heads of Agreements for the proposed Gas Sales Purchase Agreement (GSPA) — were signed on Monday. The Cabinet has already given in-principle approval to the GPFA. However, the final signing would be done only after the Cabinet approves this document.

“All stakeholders should recognize that the transit fee for the gas through various countries be kept at minimum. Further, the security issues should be properly addressed and there should be complete clarity on the institutional mechanisms for this. And before taking this project further, the pricing and other GSPA issues should be resolved to the full satisfaction of all partner countries,” Prasada said while outlining the significance of this project in fulfilling the energy needs of India.

The Financial Express, New Delhi, September 21, 2010

AddThis Social Bookmark Button

On diesel pricing  

Deregulate diesel before FPOs: IOC

State-owned IndianOil (IOC) wants diesel prices to be freed from government control before its twin follow-on public offers (FPOs), chairman B.M. Bansal said on Monday.

The government plans to divest its 5-10% stake in IOC and Oil and Natural Gas Corp. through separate FPOs to fetch about Rs. 24,000 crore this fiscal.

IOC also plans a public offer of its 10% expanded equity to raise close to Rs. 9,000 crore for part-financing its capital expenditure.

Mint, New Delhi, September 21, 2010

AddThis Social Bookmark Button

Updated petrol price in Delhi after september hike  

IOC hikes oil price by 27 p/litre

State-owned IndianOil from Monday raised petrol price by Rs 0.27 a litre effective midnight tonight, while other public sector firms are likely to follow suit in the next couple of days.

As a result, petrol in Delhi would cost Rs 51.83 a litre from Rs 51.56 per litre previously, an IOC official said.

“The price hike has been necessitated because of rise in crude oil prices,” the official said. Crude oil rose in Asian trade today, rebounding from last week's losses. New York's main contract, light, sweet crude for October delivery, gained 21 cents to $73.87 a barrel. Hindustan Petroleum and Bharat Petroleum are likely to raise petrol prices between Rs 0.27-0.28 a litre Tuesday or even day after tomorrow.

“The public sector oil firms have previously been accused for fixing prices as a cartel. So now, they are setting rates independently on different days,” an industry official said.

This is the first time since the June decision of the government to free petrol price from its control, that the rates of petrol is being raised.

‘Free diesel price before share sale’

Oil Corp wants the government to free up diesel prices before its $2-billion-plus share sale to raise the maximum funds from the offer, the company's chairman said on Monday. The sale of a 10% stake by the government, along with the firm's plan to sell an additional 10% of fresh shares, should come in January or February, BM Bansal said.

Source The Financial Express, New Delhi, September 21, 2010

AddThis Social Bookmark Button

Shell India targets to double its lubricants market share in India  

Shell India eyeing 13% share in lubricant market


KOLKATA: Shell India Markets Pvt Ltd is eyeing around 13 percent market share in the Indian lubricant market from the present 6-7 percent, a top official said here on Thursday.

Shell India Markets Pvt Ltd is 100 percent subsidiary of global oil major Shell. Shell makes and sells more than 3,000 different lubricants.

"We have targeted to double our market share and for this we need to increase supplies through various option, either by adding capacity to our Taloja plant or by sourcing supplies from our plants in neighbouring countries," Donald Anderson, Country Head, Lubricants, Shell India Markets, said.

The Indian lubricant market is estimated to be around 1.7 billion litres, which is growing at 5 percent annually.

Shell is eyeing opportunities in industrial usage of lubricants, particularly in steel, power, mining and construction, where products could be developed specifically for customers apart from the automobile market.

At present, the company supplies lubricants to companies like Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors and Ford and is eyeing businesses from Jaguar Land Rover and Ssangyong. Courtesy:ET

AddThis Social Bookmark Button

Darvesh Fire and Safety Industries partneres with Indian Oil for distribution of ‘FireKiller’ extinguishers  

Kolkata, Darvesh Fire and Safety Industries India has partnered with Indian Oil for the distribution of ‘FireKiller’ extinguishers through the Indane distributorship network on a pan India basis.

The deal with Indian Oil is Darvesh’s first major partnership in India after they made their foray into the country in January.

India Oil has the largest distribution network for LPG cylinders across India. It has around 5000 distributers, who in turn reach out to approximately 57 million households.

“Fire Killer is a remarkable product which will cater to the domestic market of the IOCL and Indian consumers. We look forward to work closely with Darvesh and grow this partnership together,” said Satwant Singh, Executive Director of Indian Oil, LPG Division.

The turnover from this deal of Darvesh Fire and Safety Industries, by the end of 2011, is expected to cross a mark of Rs 800 crores. The distribution will begin starting October 2010 & the product will be available with all the Indian Oil across India.

Speaking on the occasion, Talib Hassan Darvesh, C.E.O, Darvesh INDIA said, “We are extremely confident that this partnership will add further value to the high safety standards, in the lives of our consumers.”

An internationally patented product of Space Age Technology, the ‘FireKiller’ is a non toxic, non-pressurised, completely green product that comes with a lifetime guarantee and no maintenance.

Indian Oil reaches Indane cooking gas through a network of 5000 distributors pan-India wherein each distributor caters to nearly 57 million households, thus through this partnership with Indian Oil, Darvesh Fire and Safety Industries hopes to achieve maximum penetration into the consumer market in India. Courtesy:INDIA BLOOMS

AddThis Social Bookmark Button

Essar Exploration and Production Ltd. may start gas supplies to Phillips Carbon Black Ltd (PCBL)  

Essar to supply gas to Phillips Carbon

Thursday, September 09, 2010

Essar Exploration and Production Ltd. may start gas supplies to Phillips Carbon Black Ltd (PCBL) starting October. The gas will be supplied from its Ranigunj (East) CBM block to PCBL's Durgapur facility. Essar is due to complete the pipeline network by mid-October, connecting the gas production wells to the gas gathering station and the delivery point of the gas in close proximity to the PCBL facility. PCBL shall use the gas to partly replace the requirement of liquid feedstock CBFS (carbon black feed stock).

AddThis Social Bookmark Button

Orissa government launching a project to capture carbon dioxide using algae  

Using algae to trap carbon dioxide, Orissa show how

By Richa Sharma, New Delhi, Sep 6 : The green slimy algae can play a major role in reducing carbon dioxide in the atmosphere and cleaning industry-polluted air. The Orissa government is launching a project to capture carbon dioxide using algae, the first such venture in India, with the rising number of industries in the state.

The Rs.95-lakh/Rs 9.5 million project will be started this month on a pilot basis at public sector undertaking Nalco's (National Aluminum Company) thermal power plant at Angul in Orissa.

Read rest of the story here:;_ylu=X3oDMTBydnFzNjIwBHBvcwMxBHNlYwNzcgRjb2xvA3NwMgR2dGlkAw--/SIG=126q7v92k/EXP=1284393006/**http%3a//

AddThis Social Bookmark Button

Updates on Reliance Industries, petroleum retailers in Gujarat and land lease  

Reliance Asks retailer in Gujarat to surrender land leased on its name.

Reliance Industries (RIL) has asked one of its petroleum retailers in Gujarat, which wants a ‘clean exit’, to surrender the outlet land on the ground that it has been leased on its name.

-On July 15, around 75 dealers had informed RIL about their intention of winding up operations. Of the company’s 225 operational retail outlets in Gujarat, 150 are dealer-owned, dealer-operated (Dodo) and company-owned, dealer-operated (Codo). The rest are company-owned, company-operated (Coco).

RIL said there was no clean exit policy as mentioned by the dealer. Sunil Golwala, president of the Gujarat Reliance Petrol Pump Dealers Association, claimed the company had granted clean exit to four of its dealers in the state. The retail outlet land would remain with the dealers as the sites were Dodo.

“You would be required to hand over the possession of the site to us and as regards support money, the support scheme expired on March 31, 2007,” RIL said in a letter to the dealer. The company said it would refund the security deposit as per the dealership agreement, after deducting its due. The dealer used to operate a company-owned outlet.

Dealers in Gujarat claim they have invested between Rs 2 crore to Rs 4 crore in their outlets. Depending on the location, cost of land has been Rs 1.5 crore-3 crore, with another Rs 30 lakh to Rs 1 crore thrown in on maintaining services at outlets. While in a Codo site, the company takes care of the services cost, a dealer has to deposit Rs 13 lakh to Rs 33 lakh, depending on the site.

RIL said till the time the dealer continued to be a dealer under its dealership agreement, the dealer alone should be responsible for and bear all expenses of and in connection with the dealership business.

“If you are unable to carry on the business as and want to terminate the dealership, you may confirm the same where after, we shall take appropriate action in the matter. If you wish to continue as a dealer you are called up on to resume the sales operations with in 15 days of receipt of this letter,” RIL said.

Terming the RIL option unviable, the dealer, Bhavin Choksi, is contesting the RIL compensation package. Choksi is also the secretary of the Gujarat Reliance Petrol Pump Dealers Association.

The company said suspension of sales by the dealer had caused “huge loss of revenue” to it, since it made huge investment in setting up the outlet. “Besides capital investment, the company is continuing to incur recurring cost on the site,” claimed the company.

In his letter, the Gondal-based retailer had sought clean exit, saying the company should pay him return on investment support from April 2009 till the clean exit is cleared. He also demanded the site be restored, deposit refunded and no objection certificate given.

Industry players say RIL has less than 0.5 per cent market share. The company has 1,450 fuel retail outlets. The company has so far opened around 667 outlets in the western and southern regions.

AddThis Social Bookmark Button

Azure Power to build a100-megawatt (Mw) solar power capacity  

Solar-power company Azure Power aims to build a 100-megawatt (Mw) solar power capacity in the next three-five years and is in initial discussions with mobile phone operators and other industrial houses to offer commercial solar power.

The company plans to invest about Rs 1500 crore in the project, Chief Executive Officer Inderpreet S Wadhwa told Business Standard.

“Currently, we are generating 1 Mw of solar power from our Punjab plant. Another 1 Mw will come up in a month. Apart from this, we are already in the process of adding 25-30 mw of solar power in other states,” he said.

Currently, Azure has agreements with state-power utilities for solar power supply. To move beyond this, the company has also started preliminary discussions with one of the telecom player and industrial houses for providing solar power.

If the agreement goes through, the company would install solar panels on the telecom towers, which would enable mobile firms to save costs, especially in rural areas.

“We are working on the business model for selling solar power commercially. We expect to bag a deal by next year,” Wadhwa added.

The company, which had raised $10 million (Rs 46.47 crore) from World Bank arm International Finance Corp in March. The company is also part-funded by venture capitalists Helion Venture Partners and Foundation Capital, Wadhwa said without giving out details.

Apart from 2 Mw plant in Punjab, the company is setting up a 10-Mw plant in Gujarat, another 10 Mw in Karnataka and Rajasthan each and 2 Mw in Haryana.

The government has recently announced National Solar Mission, which aims at setting up over 20,000 mw of solar power generation capacity in three stages by the end of the thirteenth Plan period ending 2022. Currently, the solar power capacity of the nation stands at 4 mw.

“To generate 1 mw of solar power, it costs about Rs 17 crore, but we expect the prices to decrease in the future and by 2017, solar power would be able to compete with retail thermal selling prices,” he said.

AddThis Social Bookmark Button

Reliance Industries completed acquiring Marcellus Shale gas asset  

NEW DELHI: Mukesh Ambani-led Reliance Industries has announced the completion of its deal to acquire a 60 per cent stake in the Marcellus Shale gas asset in the United States for $ 392 mn.

On August 5, Reliance had announced that it will buy its third shale gas asset in the United States. Its subsidiary, Reliance Marcellus II Llc, had signed a definitive transaction agreement to enter into a Marcellus Shale joint venture with US-based Carrizo.

In a statement issued yesterday, Carrizo Oil and Gas said that it has "closed its previously announced joint venture transaction in the Marcellous Shale with a subsidiary of Reliance Industries".

The joint venture agreement is effective immediately, the statement added.
"The new Carrizo-Reliance joint venture agreement covers approximately 1,04,400 gross acres in Northern and Central Pennsylvania. Under the terms of the agreement, Carrizo retains a 40 per cent working interest in the acreage and Reliance owns 60 per cent," the statement said.

Carrizo will continue as operator of the acreage, with Reliance having the right to assume operations in certain parts of Central Pennsylvania after a year, it added.

Under the agreement, Reliance paid $ 340 mn in cash to acquire a 60 per cent stake in the Marcellus shale gas acreage held by Carrizo Oil and Gas Inc and its partner.
The remaining $ 52 mn would be incurred on bearing Carrizo's future seismic survey and drilling costs in the Marcellus shale gas area.
The Marcellus shale acreage was earlier held by a 50:50 joint venture between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners.

Reliance has acquired 100 per cent of Avista's interest in the JV for approximately $ 327 mn and 20 per cent of Carrizo's interests for a purchase price of $ 65 mn.

In April, the Mumbai-based firm had bought a 40 per cent stake in Atlas Energy Inc's Marcellus Shale acreage for $ 1.7 billion. In June, it had agreed to buy a 45 per cent stake in Pioneer Natural Resources Co's Eagle Ford shale gas asset in Texas for about $ 1.36 billion.

Reliance would have a net share of 62,600 acres in Carrizo's shale acreage, less than its 137,000 acre holding in the Atlas venture and 118,000 acres in Pioneer's assets.

The gross resource potential in Carrizo's Marcellus Shale area is 3.4 trillion cubic feet of gas, compared to 10 trillion cubic feet in Pioneer's Eagle Ford asset.

AddThis Social Bookmark Button

Oil and Natural Gas Corp making joint bid with Petrovietnam for BP's Vietnam assets  

State-run explorer Oil and Natural Gas Corp will make a joint bid with Petrovietnam for BP's Vietnam assets after completing its evaluation of them in the next few weeks, Oil Secretary S. Sundareshan told reporters on Saturday.

"They (ONGC) are making an evaluation of the value of BP's assets, and once that is finalised they will make an offer in conjunction with Petrovietnam," Sundareshan said.

ONGC has a 45% share in Block 6.1 in the Nam Con Son basin, off Vietnam's southeast coast, operated by BP, which has a 35% stake. The remaining 20% is owned by state-run Petrovietnam.

Sundareshan said the valuation process is likely to be completed in a few weeks.

The stake would be a welcome acquisition for India, which has been lagging China in the hunt for natural resources as both countries seek to feed their fast economic growth.

UBS analysts have said BP's stake, which includes an interest in the Lan Tay and Lan Do gas fields, the Nam Con Son pipeline and the Phu My power generation project, is worth USD 966 million.

AddThis Social Bookmark Button

Solar Summit 2010  

Mobility forms of the future is the focus of this year’s international Solar Summit Freiburg congress , taking place from 13 to 15 October 2010 at Freiburg Concert Hall.

Organized by: Messe München International

Read more here

AddThis Social Bookmark Button

Latest petrol price in Delhi, Kolkata, Mumbai & Chennai  

Marginal rise in auto fuel prices

New Delhi, Sept. 8 :::: With the Government increasing the commission for petrol pump dealers by 9 paise a litre for petrol and 8 paise for diesel, auto fuels prices in the country has increased by 9-13 paise a litre.The oil companies pay commission to dealers for uplifting products from them. Petrol in Delhi will now cost Rs 51.56 a litre, up 13 paise, while diesel will cost 9 paise more at Rs 37.71 a litre.

AddThis Social Bookmark Button

Owners of petrol pumps to go on strike from September 20  

NEW DELHI: Owners of about 38,700 petrol pumps across the country have decided to stick to their plan to down shutters indefinitely from September 20 despite the government increasing their commission.

Federation of All India Petroleum Dealers on Wednesday decided that the government's announcement on Tuesday to raise their commission was "routine" and did not fulfil their main demand.

The federation, which is the apex body of petrol pump owners, is demanding that their commission be set as a percentage of selling price of petrol and diesel. At present, they get a fixed amount on sale of each litre of motor fuels.

The federation is arguing that now that the government has deregulated motor fuel prices, state-run oil companies will start revising prices every fortnight or every month.

This will mean losses for pump owners who, the federation says, will lose money on existing stocks if prices go down. It says unlike cooking gas dealers, petrol pump owners suffer losses on account of evaporation of fuels and shrinkage in volume due to changes in temperature.

Read more: Petrol pumps threaten shutdown from Sept 20 - The Times of India

AddThis Social Bookmark Button

Indosolar entering capital market on September 13, 2010  

Indosolar Limited (the “Company” or “the Issuer”), a manufacturer of poly-crystalline solar photo-voltaic (“SPV”) cells, is entering the capital market on September 13, 2010, with a public issue of equity shares of Rs. 10 each (“Equity Shares”) for cash at a price (including a premium to be determined through a 100% Book Building Process) aggregating up to Rs. 357 crore (the “Issue”). The Price Band has been fixed between Rs. 29 and Rs. 32 per equity share. The Issue will close on September 15, 2010.

AddThis Social Bookmark Button

Siemens starts its operations in renewable energy segment in India  

Siemens starts renewable energy biz in India

Sensing a huge potential in the wind and solar business, industry and infrastructure solutions provider Siemens has started operations in renewable energy segment in India by setting up an office in Vadodara.

"The market outlook for renewable energies in India is extremely positive and we see a huge potential for the wind and solar business in the near future. With our Vadodara office we will strengthen our activities in this strategic market," Siemens Managing Director Armin Bruck said in a statement here today.

- BSNL to scrap 5.5-million GSM tender

- Nokia Siemens Networks attracts private equity interest

The firm has already employed 30 people and plans to ramp up the number to 100 within the first year of operation.

India is set to generate up to 20 gigawatts (GW) of solar power by 2022 as part of the National Solar Mission (NSM) thus presenting a huge opportunity for Siemens, he said.

The company has wide experience in Concentrated Solar Power (CSP) and Solar Photovoltaic (PV) business globally. In CSP, it has parabolic trough technology, the most commercially established tool in the world with over 80 per cent of solar thermal plants across the world using it, the statement said.

With over 8,700 wind turbines and a total capacity of more than 11 GW installed worldwide, Siemens will focus on providing high efficient wind turbines with low life-cycle costs to project developers and independent power producers in India, it said. The company plans to start wind turbine manufacturing by 2012.

AddThis Social Bookmark Button

Tata Power Company, India’s largest private power may acquire majority stake in InterGen NV  

MUMBAI: Tata Power Company, India’s largest private power utility, is in talks to acquire a majority stake in the UK-based power generator InterGen NV from GMR Infrastructure to scale up its global presence.

“We are talking to several companies including InterGen for a possible acquisition,” chairman Ratan Tata told shareholders at the company’s 91st annual general meeting on Wednesday. InterGen, with generation capacity of over 6,300 megawatts (mw), has power plants in UK, Netherlands, Mexico, Philippines and Australia, according to its website.

“Tata Power has acquired a few companies in the recent past but this deal could help it add capacities at a faster pace,” said Jigisha Jaini, senior research analyst at Jaypee Capital Services.

AddThis Social Bookmark Button

AdvanceBio developed zero discharge sweet sorghum ethanol process  

Zero discharge sweet sorghum ethanol process developed


AdvanceBio LLC, a Cincinnati-based advanced biofuel technology company, today announced the development of its next generation, sugar-based fuel ethanol process.

The process is capable of utilizing sugars derived from sugar cane, sweet sorghum, sugar beet and other similar crops as feedstock for the production of fuel ethanol and green power while generating zero liquid waste.

When built in conjunction with the sugar milling operation, plants employing AdvanceBio's sugar-based ethanol process will have the same, low-greenhouse gas footprint found in Brazil's existing cane-based fuel ethanol industry. "The facilities will be extremely self-sufficient. In addition to eliminating costs associated with outside sources of fossil fuels, power and process water, our technology eliminates the need for extensive waste treatment processes and the cost of transporting large volumes of liquid vinasse back to the cane fields. These ethanol production facilities will also meet stringent U.S. pollution and occupational safety regulations," said Dale Monceaux, Principal.

AddThis Social Bookmark Button

CPCL declares dividend of 120% for the year 2009-10  

CPCL pays 120% dividend for 2009-10

Chennai Petroleum Corporation Limited (CPCL) has declared a dividend of 120% for the year 2009-10. This was announced by Mr.B.M.Bansal, Chairman, IndianOil Group Companies, at the Company’s 44th Annual General Meeting (AGM) held in Chennai on September 06, 2010.

The turnover for the year 2009-10 was Rs.29,184 Crore while the Profit After Tax (PAT) was Rs.603.22 Crore. CPCL’s on-going projects include Rs.2,616 crore Auto Fuel Quality Upgradation Project which is in an advanced stage of completion and a new 42-inch crude oil pipeline as a replacement for the existing 30” pipeline from Chennai Port to Manali Refinery at a cost of Rs.65 crore.

CPCL’s new project initiatives include Resid Upgradation Project, Single Point Mooring (SPM) and Crude Oil Terminal (COT). In order to increase the distillate yield of the Refinery and reduce fuel oil production, CPCL also proposes to install a high conversion Resid Upgradation Unit at an estimated cost of Rs. 3,350 Crore which is expected to be completed by the end of 2013. A 9.0 MMTPA brown-field refinery project is also in the pipelines at Manali to replace the aging original 2.8 MMTPA refinery at a cost of Rs.10,000 crore and achieve better energy/utilities management and optimal product pattern. The project is expected to be commissioned by the end of 2015.

AddThis Social Bookmark Button

CPCL to set up 9 mtpa brownfield refinery in Manali  

Chennai Petro plans brownfield refinery

Chennai Petroleum Corporation Ltd (CPCL) plans to set up a 9 million tonnes per annum (mtpa) brownfield refinery in Manali, north of Chennai, at a cost Rs 10,000 crore. This will replace the aging 2.8 mtpa refinery and help achieve better energy/utilities management and optimal product pattern, according to Mr B.M. Bansal, Chairman, CPCL.

The project is expected to be commissioned by the end of 2015, he told newspersons on the sidelines of the company's 44 {+t} {+h} annual general meeting.

To increase the ‘distillate' yield of the company's refinery and reduce fuel oil production, the company plans to install a high ‘conversion resid upgradation unit' at a cost of Rs 3,350 crore. This project is expected to be completed by 2013 end, he said.

Mr Bansal said projects worth Rs 2,600 crore were under implementation. These include the auto fuel quality upgradation project, which is in an advanced stage of completion, and a new 42-inch crude oil pipeline as a replacement for the existing 30” pipeline from Chennai port to Manali refinery, at a cost of Rs 65 crore. The project will be completed within 12 months after the right of way is made available.

AddThis Social Bookmark Button

Petrol and diesel prices costlier by 11-12 paise a litre and 9-10 paise a litre from 7september midnight  

The government has hiked petrol and diesel prices marginally across the country, reports CNBC-TV18’s Gautam Broker.

With effect from Tuesday midnight, petrol and diesel prices across the country will become costlier by 11-12 paise a litre and 9-10 paise a litre, respectively as the government decided to increase the commission to petrol pump dealers.

In Delhi, the price of petrol will go up by 13 paise to Rs 51.56 a litre, while diesel will be 9 paise costlier to Rs 37.71 per litre.

The government in June took decisive steps towards decontrolling fuel prices with the Empowered Group of Ministers freeing petrol from price controls.

Diesel prices however continue to be governed by the government.

AddThis Social Bookmark Button

Companies may have to set aside 2 % net profits for corporate social responsibility  

India Inc faces 2% CSR levy

Several Indian companies might have to set aside 2 per cent of their average net profits during the preceding three years to meet corporate social responsibility (CSR) spending requirements. A parliamentary standing committee on finance, which vetted the Companies Bill, 2009, said in its report that the ministry of corporate affairs has agreed to the suggestion. The committee, headed by former finance minister Yashwant Sinha, has suggested that companies with a net worth of Rs 500 crore or more, or those that have an annual turnover of at least Rs 1,000 crore, or companies with a net profit of Rs 5 crore or more, be covered by the norms. If the proposal is accepted by the government and Parliament approves, based on the performance over the last three financial years (up to March 2010), 3,434 companies would have to set aside over Rs 4,300 crore during this fiscal. These companies would need CSR policies so that at least 2 per cent of their average net profit for the preceding three financial years is spent on such activities.

“The directors shall be required to make suitable disclosures in this regard in their report to members. In case any company does not have adequate profits, or is not in a position to spend prescribed amount on CSR activities, the directors would be required to give suitable disclosures/reasons in their report to members,” the report tabled in Parliament during the just-concluded Monsoon session said. Welcoming the ministry’s “acceptance” of the its suggestion to bring CSR in the statute, the parliamentary committee said that a statement indicating the company’s CSR policy, as well as the specific steps taken, should be part of the company’s annual report. It has, however, not listed activities that would be qualified to meet the CSR spend.


Top five, based on a sample of 3,434 companies that declared their financials for three years, FY08-FY10 ('crore)

FY10 Net worth Net sales Net profit Average profit

(three years) CSR (2%)

Reliance Ind 1,31,590.67 2,03,370.56 24,423.58 19,632.38 392.65

ONGC 92,223.50 1,04,634.95 20,160.15 19,431.09 388.62

NTPC 62,437.50 46,377.70 8,728.20 8,114.77 162.30

Bharti Airtel 39,876.79 41,829.46 9,361.52 7,967.04 159.34

IOCL 52,462.33 2,53,460.02 10,998.68 7,315.03 146.30

Data Source: Capitaline; Compiled by BSRB

At present, these initiatives are voluntary and in December 2009, the ministry of corporate affairs issued a set of guidelines companies are expected to comply with. A senior ministry official said the government is seeking details of the activities that are undertaken by various corporate houses before finalising its views on making CSR a statutory requirement. The ministry intends to move a Bill in Parliament, factoring in some of the recommendations of the parliamentary standing committee during the winter session. It is hoping that Parliament approves the Bill so that it is in place before the start of the next financial year.

….from the pages of Business Standard newspaper.

AddThis Social Bookmark Button

Oil spill updates: fishermen association seeks compensation  

Mumbai: The fishermen association here on Tuesday sought compensation of Rs 1.20 lakh per fishermen from the state government in the wake of ban on fishing off Mumbai coast to clear oil spill following collision between two ships.

"We have asked the state government to give compensation of Rs 1.20 lakh to 2,000 smaller fishermen and Rs 10,000 to the women selling fish in the city. The incident affected the business of the community and hence they are entitled to compensation," Akhil Maharashtra Machhimar Kriti Samiti, President, Damodar Tandel told reporters here.

The association has demanded compensation of Rs 500 per day for women fishermen for 20 days as they were restricted from selling fishes.

"Smaller fishermen are virtually threatened with starvation as they work and earn on a daily basis. The oil spillage has spelt doom for their trade," Tandel said.

AddThis Social Bookmark Button

Investigation report on Mumbai oil spill  

Mumbai, Sep 7: After the thorough investigation on the incident of Mumbai oil spill in Aug 2010, the Director General of shipping came to a decision that MV Khalija was the main culprit behind the accident.

Buzz up!The report showed that between MV Khalijia and MSC Chitra, the former was mainly responsible for the massive collision, which caused in over 800 tonnes of oil leaking from the Chitra and it's cargo had also fallen into the sea, blocking the channel.

The investigation report also criticized Mumbai Port trust's Vehicle Traffic Monitoring System (VTMS) for its radar.

One radar, which keeps an eye to track the the movement of ships, was not working on that day and VTMS officials also were ignorant about the movement of the ships.

However, MSC Chitra has been already compensated by the state government of Rs 3 crores for polluting the coast after the collision.

Now, the new findings of the inquiry report may cause MV Khalija a huge loss as the compensation for the massive pollution after the accident.

AddThis Social Bookmark Button

IOC LNG terminal in Ennore  

IOC against frequent changes in petrol price
The Hindu

Indian Oil Corporation (IOC) would not like the petrol price to be changed frequently unless there are major fluctuations in crude prices, according to its Chairman B.M. Bansal. Noting that the crude price was around $74 a barrel when the fuel prices were revised last, he said: “It is a touch and go situation” now with regard to the under-recovery on petrol price. Mr. Bansal was interacting with media persons after the Annual General Meeting (AGM) of Chennai Petroleum Corporation Ltd (CPCL), a group company of IOC, here on Monday.

To a query on the under-recoveries on automobile fuels, he said petrol price has been totally deregulated and the under-recovery on diesel was around Rs.3.50 a litre. On the proposed LNG terminal of IOC, in association with the Tamil Nadu government, in Ennore near Chennai, he said the detailed feasibility report would be ready by next month. The oil company would start work on the financial aspects by December. Mr. Bansal said the IOC was open to tying up with a strategic investor who can bring LNG.At the AGM, he said the CPCL was implementing various projects including a Rs.2,616 crore auto fuel quality upgradation project and a new 42-inch crude oil pipeline from Chennai port to Manali refinery at a cost of Rs.65 crore.

AddThis Social Bookmark Button

IOC, ONGC ipo in January March 2011  

Ministry clears IOC, ONGC selloff plans, to approach Cabinet soon

The Economic Times / The Telegraph / DNA /The Financial Express / Business Standard / Deccan Herald / The Hindustan Times / The Hindu

NEW DELHI: The government has firmed up plans to sell stakes in state-run oil majors ONGC and Indian Oil Corp, after giving their prospects a leg up earlier in the year by decontrolling price of petrol and increasing that of other products. “The ministry has taken an in-principle decision on the sale of the stakes and we have to go to Cabinet now (for approval),” said petroleum secretary S Sundareshan. The government plans to divest 5% of its stake in ONGC and 10% in IOC, which will also issue 10% fresh equity in a follow-on public offer.

The two companies are planning the public offers between January and March 2011, the oil secretary told reporters. If the plan materialises, the government would be able to easily raise the budgeted RS 40,000 crore from disinvestment in the current fiscal. The department of disinvestment, which is responsible for listing PSUs, has lined up five more firms for stake sales in the fiscal and was looking for one more big-ticket offer. The other companies that will hit the market this year include Coal India, Hindustan Copper, Manganese Ore India, SAIL, Power Grid Corp and Shipping Corporation. According to the selloff proposal, IOC would be the first to be disinvested, followed by ONGC. The government expects to raise Rs 20,000 crore from the sale of its stake in these companies.

Post divestment, the government’s shareholding in ONGC will come down to 69.14% from 74.14% currently. In IOC, the twin divestment and stake sale would reduce the government holding from 78.92% to 64.57%. On Monday, ONGC’s shares gained 0.9% to close at Rs 1,350.10 on the Bombay Stock Exchange while IOC gained 0.09% to close at Rs 425.10. The government’s plan to divest stakes in the two companies comes after its decision in June to decontrol petrol prices and raise prices of diesel, kerosene and cooking gas. IOC’s share has risen nearly 25% since companies got limited freedom in pricing petroleum products on June 25. ONGC is up over 15% over the same period on the prospects of a lesser subsidy burden against a 4.8% for the Nifty over the same period.

“I feel that this is the appropriate time to go for disinvestment as well as for the FPO because we are in need of money for our projects,” IOC chairman BM Bansal told ET Now, this newspaper’s television channel. Analysts are upbeat that the disinvestment would help improve the valuations of the two companies but stressed on the need to work out a subsidy sharing formula, which would give clarity on the losses of these state-run companies. The government regulates retail prices of diesel, kerosene and cooking gas and both IOC and ONGC are forced to share a part of the burden. In 2010-11, state-run oil firms are expected to suffer a revenue loss of Rs 57,000 crore, which could be even higher if global crude oil prices average more than $70 a barrel mark.

AddThis Social Bookmark Button

Greenko building 65 MW wind project in Maharashtra,  

Clean energy producer Greenko Group said it made a push into the fast-growing wind energy market in India with a short-term target of 200 megawatt, and signed a power purchase deal with Reliance Infrastructure.

The company, with its assets mostly in India, said it had started building a 65 MW wind project in the western state of Maharashtra, and that the Reliance Infra deal was to supply 200 MW of wind power at a current rate of Rs 5.07 ($0.109) per kilowatt-hour.

Greenko also signed a technology pact with General Electric Co for turbines designed for low-wind regimes and said it was reviewing other states such as Karnataka, Rajasthan and Andhra Pradesh for wind power opportunities.

According to the Global Wind Energy Council, India was ranked 5th in the world in 2009, with a wind energy capacity of 1,271 megawatts, or 3.3 percent, of the world total.

The company, which has a market value of 167.8 million pounds and operates hydro, biomass and gas-based plants, said it expects to achieve a 1 gigawatt operating capacity by the end of fiscal 2014.

Shares in the company, which have risen more than 21 percent in the year to date, were up 4.6 percent at 147 pence at 0747 GMT on Monday on the London Stock Exchange.

AddThis Social Bookmark Button

And now Oilex finds huge natural gas in Cambay field  

Australian O&G Company makes huge discovery in Gujarat

Tuesday, September 07, 2010

The India focused Australian Oil & Gas Company, Oilex Ltd., has found a huge natural gas in the Cambay field. It is estimated that the discovery in Gujarat may hold 1.5 trillion cubic feet of reserve of which the justified development holds 853 billion cubic feet of Reserves, while 720 billion cubic feet of Contingent Resources. Oilex operates the Cambay field on behalf of Gujarat State Petroleum Corporation (GSPC) which holds 55% stake in the joint venture

AddThis Social Bookmark Button

2 Months for oil degradation to take place in Alibaug  

Alibaug oil spill

Tuesday, September 07, 2010

According to the results of the bio-remediation process, it will take around 2 months for oil degradation to take place in Alibaug, following the oil spill off the Mumbai coast. The concentration of oil in zero day sample of the sand was 60,000 ppm, much higher than the internationally permissible limit of 1,000 ppm applicable in US and Europe.The Central Pollution Control Board is working on guidelines for a permissible limit for oil soaked oil. The guidelines are expected to release in three months.

AddThis Social Bookmark Button

Asian Development Bank to sell its 5.2% stake in Petronet LNG  

ADB to sell stake in Petronet LNG

Tuesday, September 07, 2010

Asian Development Bank has written to its major shareholders about its decision to sell its 5.2% stake in Petronet LNG Ltd. IOC, BPCL, GAIL and ONGC each hold 12.5% stake in Petronet. French group GDF holds 10% stake in the company. Petronet operates a 10mn tons/year LNG terminal at Dahej, Gujarat. It is currently building another terminal in Kochi which shall have a capacity of 2.5mn tons/year. The Kochi terminal will be commissioned by middle of 2012.

AddThis Social Bookmark Button

ConocoPhillips to initiate hydrocarbon exploration in BANGLADESH deep sea  

BANGLADESH : Govt signs deal with US oil giant CONOCOPHILLIS


The government, struggling to shore up energy supply, plans to sign an initial deal with US oil giant ConocoPhillips this month to initiate hydrocarbon exploration in the deep sea.State-owned Petrobangla will sign the deal with ConocoPhillips following a process initiated two and a half years ago through invitation of international tender.

Top officials of the energy ministry and Petrobangla held a meeting with ConocoPhillips last week before reaching the decision of signing the deal.

Under the deal ConocoPhillis will initiate conducting survey and exploration in the undisputed areas in two deep water offshore blocks.The final production sharing contract (PSC) will be signed after resolving the dispute of overlapping gas blocks with the neighbouring India and Myanmar, a senior energy ministry official told the FE.

During last week's meeting the government accepted ConocoPhillips' demand for changing the location of arbitration from Dhaka to Singapore, said the official.ConocoPhillips has been awarded two deep water gas blocks -- DS-08-10 and DS-08-11 blocks -- in the country's 2008 offshore bidding round.Irish Tullow Oil was also selected for shallow block SS-08-05 following the bidding.Courtesy:FT

AddThis Social Bookmark Button

Cairn India's Mangala field to achieve peak production of 175,000bpd by 2011-12  

Mangala field likely to bring down India's oil import bill by $6.8 bn

Friday, September 03, 2010

India's largest onshore field, Cairn India's Mangala field, has saved nearly $1 bn (Rs 50 bn) of foreign exchange in its one year of production. It is likely to achieve peak production of 175,000bpd by 2011-12, which will cut the country's crude import dependence by 20% at current consumption level. This could lead to savings in India's oil import bill of $6.8 bn.Cairn is now setting up the Mangala Processing Terminal to process output from the oil fields in Barmer, to produce oil and associated gas. With four crude oil processing trains, MPT will have a total capacity of 205,000 bpd of oil.

AddThis Social Bookmark Button

Indian Oil to raise refining capacity to 81 mn tons by 2012  

Indian Oil Corporation plans to increase refining capacity by 2012

IOC intends to upgrade its refining capacity to 81 mn tons by 2012. It will expand its Haldia refinery (Bengal) to 7.5 mn tons and the Panipat refinery (Haryana) to 15 mn tons this year, placing the company's total refining capacity at 54.2 mn tons per annum. The planned expansion to 81 mn tons will take place with the commissioning of 15 mn ton Paradip refinery in Orissa.

AddThis Social Bookmark Button

PETRO AVEC awarded patent for a process to remove sulphur from crude oil  

Petrosonics LLC awarded a patent in India

Petrosonics LLC, partner in the PETRO AVEC joint venture, has been awarded a patent in India for 20 years. The patent pertains to process of removal of sulphur from all types of crude oil fractions through sonic energy and oxidation and removal of oxidized sulphur through hydrotreatment. At 5.6 bn barrels of proven oil reserves, India has the second largest reserves in the Asia Pacific region after China. India is the fourth largest consumer of oil in the world, as per consumption in 2009 of 3 mn bbl/d. The patent will help AVEC to license PETRO AVEC technology through cross licensing by a large Indian oil company.

AddThis Social Bookmark Button

List of LED lantern suppliers- send company details  

We want to publish a list of LED Lantern suppliers. If you manufacture similar products, send details about your company in the comments section and we shall publish for you free.

AddThis Social Bookmark Button

OIl Spill updates- Goa beaches  

Tar balls spoiling Goa beaches may stay till October: Government

Panaji, Sep 2: Goa's tourism season, which begins in October, could be in peril.

The state government has conceded that the tar ball phenomenon which has layered several beaches with ugly, acrid, black streaks of oil, may well continue right up to October, when millions of tourists visit the state.

"The appearance of tar balls along the west coast of India is an annual phenomenon with high likelihood in the months from May to October, generally arising when an oil-slick occurs in the vicinity," the state tourism department said in a statement late Thursday, quoting experts at the National Institute of Oceanography (NIO), a top central-government funded marine research centre.

The communique, also does not conclusively say when the tar balls, which have affected popular beaches like Calangute and Candolim, 15 km from here, and Colva, Velsao and other beaches in south Goa, would stop.

"Changing patterns of the weather and tides play a large role in determining whether the appearance of tar balls will continue over the next few days," the release stated.

This may not bode well for Goa's tourism season, which stretches from October to March and sees nearly 2.5 million tourists during the period, who swoop down in Goa in droves to its sun kissed beaches.

The press release also quotes state tourism director Swapnil Naik as saying that a team of scientists from the Nagpur-based National Environmental Engineering Research Institute (NEERI) were expected to arrive into the state by early next week to conduct a thorough study of the phenomenon.

Naik has also tried to downplay the seriousness of the tar ball invasion by calling it an annual phenomenon during the monsoon season.

"We are in touch with the National Institute of Oceanography and are consulting with them on the occurrence. Close to 200 personnel are working round the clock to ensure that the beach cleaning operations proceed smoothly," Naik has said.

The statement also quotes a spokesperson for the Travel and Tourism Association of Goa (TTAG), Ralph de Souza, as however putting up a brave face.

"The sea gets rough and tar balls make their presence, although in very small quantities along the Goan beaches. The issue will definitely not affect the coming tourist season in any way," de Souza said, contradicting an earlier statement by TTAG president Gaurish Dhond.

Dhond, while speaking to IANS, had termed the tar ball phenomenon a bad omen which "will not be good for tourism in Goa".

AddThis Social Bookmark Button

Petroleum Traders to go on indefinite strike from September 20  

Auto fuel retailers to go on indefinite strike from Sep 20

06:09 PM,Sep 01,2010

Chandigarh, Sep 1 (PTI) The Federation of All-India Petroleum Traders (FAIPT) today said it will go on an indefinite strike September 20 to press for demands such as raising the commission on fuel sales and a uniform rate for petroleum products across the country. "All the petroleum dealers representing FAIPT will go on strike for indefinite period from September 20 protesting against the indifferent attitude of the Union government towards our demands," FAIPT National Joint Secretary Sukhminderpal Singh Grewal told reporters here today. Grewal lamented that dealers were forced to take this extreme step as the Centre has not been paying any heed to their genuine demands for a long time. The dealers are seeking a 5 per cent commission on the retail price of petrol and diesel, citing erosion of margins in selling fuel. "We are currently getting Rs 1 per litre of petrol and 65 paise a litre on diesel, based on volume. But we want our commission at a rate of 5 per cent... on retail prices," he said. "Traders have been bleeding profusely due to inadequate margins and a rise in operational expenditure. Evaporation or leakage of fuel oil takes away 1 or 2 per cent margin being provided by oil companies. Rest of margin is consumed with the rise in wages, power and other charges," he said. FAIPT also demanded there should be a single rate of petroleum products across India, as a variation in duties and taxes from state-to-state leads to variation in prices, causing smuggling of fuel from one state to another. Petroleum dealers further lamented that commissioning of new retail outlets by competing PSU oil companies were also hitting the business of existing fuel stations. He said that a meeting of FAIPT's managing committee has been called on September 4 at New Delhi, where the course of action for the proposed strike will be discussed.

AddThis Social Bookmark Button

Suzlon Energy wins 30 megawatt order from Altrade  

MUMBAI: Wind turbine maker Suzlon Energy said on Friday it had won a 30 megawatt order from Altrade Group.

Suzlon will set up, operate and maintain the project to be installed at wind farms in the western state of Rajasthan.

The project will be commissioned by next January. Financial details of the deal were not disclosed

AddThis Social Bookmark Button

Wipro launches LED rechargeable lanterns  

Wipro Consumer Care & Lighting, the FMCG arm of Wipro Ltd has launched LED rechargeable lanterns. The lanterns are available in three configurations- Solar, Rechargeable and Dry cell.

Mr. Vineet Agrawal, President, Wipro Consumer Care and Lighting said, “LED’s are the future of lighting. Given the current power scenario in India these LED rechargeable lanterns would be a great boon for consumers and would be an ideal replacement for kerosene lamps and petromax lanterns. LED’s help consumers reap the dual benefits of energy efficiency as well as being environmentally friendly”

Mr. Sanjay Gupta Vice-President-Sales, Wipro Lighting said, “We would initially launch these lanterns in south India, U.P and Punjab. Our products use the latest LED technology and have been designed to suit the Indian conditions. The low power consumption of LED ensures that our lanterns give a backup of up to 25 hours once fully charged rural areas where there is huge power cuts would be the thrust market for us. ”

The lanterns can be used as a torch as well as for general area lighting. With large parts of the country facing power cuts, LED’s are the ideal light source as they consume very little power. They are also environmentally friendly as they do not contain any mercury and last up to 30000 hours.

Attractively priced between Rs 600-Rs 2200, a wide range of lanterns is available to suit the requirements of different types of consumers

AddThis Social Bookmark Button

HPCL to set up a 9-million tonnes refinery in Maharashtra  

HPCL plans refinery in Maharashtra

Special Correspondent …in the pages of the HINDU newspaper…

It will come up between Ratnagiri and Raigad districts of Maharashtra…

NEW DELHI: Hindustan Petroleum Corporation (HPCL) is understood to have finalized plans to set up a 9-million tonnes refinery in Maharashtra with an investment of around Rs.15,000 crore.Official sources said the Maharasthra Government had offered land places and the company was in the process of giving a final shape to the proposal. The company, which has a 6.5-million tonnes a year refinery in Mumabi, wants to shift out the metropolis as lack of space had made its expansion plans difficult.

HPCL wants to build a 9-million tonnes unit and then double it at a later date. A consultant for doing detailed feasibility report (DFR) will be appointed soon and a decision on setting up the refinery would be finalized shortly.The land offered for the refinery is located between Ratnagiri and Raigad districts. The new facility would be completed in 48 months from the date of receiving all approvals, officials said.

“The refinery in Mumbai is spread in 350 acres while for refinery of such a size at least 2,000 acres are required. We think that when the new refinery is completed, the Mumbai facility might be shut down,'' the official added.HPCL has a 7.5-million tonnes-a-year unit at Vizag in Andhra Pradesh and is also building a 9-million tonnes plant at Bhatinda in Punjab in joint venture with Lakshmi N. Mittal.

The commissioning of feasibility study is being done and is expected to be completed in six months. The investment decision will be made based on the feasibility study. The Maharashtra Government has been asked for 2,500-3,000 acres for the project.

AddThis Social Bookmark Button

Who shall be the new chairman of ONGC?  

Centre to select new chiefs for ONGC, BPCL and IOC …………………Sujay Mehdudiain the HINDU newspaper.

NEW DELHI: The government will soon set in motion the process for selecting new chairmen and managing directors for Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), whose heads are scheduled to retire early next year.

The Public Enterprise Selection Board (PSEB) will hold interviews to select the next Chairman and Managing Director (CMD) of ONGC on October 19. Current incumbent R. S. Sharma retires on January 31, 2011, on attaining the superannuation.

Petroleum and Natural Gas Ministry sources said that among those in the fray are: Sudhir Vasudeva, Director (Offshore), ONGC; D.K. Saraf, Director (Finance), ONGC; and R. S. Butola, Managing Director, ONGC Videsh. Acting Director General of Hydrocarons S. K. Srivastava and OIL Director (Exploration) B. N. Talukdar have also applied for the job. Mr. Butola has been credited with giving a new direction and shape to India's energy security by securing prolific oil and gas assets in various countries which have benefited the oil-starved nation in a great manner.

In addition to this, an application from the private sector has been made in shape of Ravi Narayan Bastia, a former ONGC employee, who quit in 1996 to join Reliance Industries (RIL) and now wants to return back to ONGC. At present, Mr. Bastia is senior Vice-President heading exploration operations in RIL and will have to fight it out with his former colleagues in ONGC and the petroleum sector to make the cut.

The PSEB will hold interviews to select the new Chairman of Indian Oil Corporation (IOC) on September 29.Once again, Mr. Butola and Bharat Petroleum Corporation Director (Refineries) R. K. Singh are among the 17 candidates in the fray for the top job at the nation's largest oil firm.

The vacancy for IOC Chairman arose after the government declined an extension of service to Sarthak Behuria till his superannuation age in 2012. B. M. Bansal, Director (Business Development), was appointed acting Chairman till a permanent candidate was selected.The PSEB will also hold interviews to select Chairman and Managing Director for BPCL on September 28.

AddThis Social Bookmark Button