PetroMag Petroleum Bazaar.com 1

PetroMag

Issue – 176 Monday 03 August 2015

If you can't explain it simply, you don't understand it well enough

NEWS National News Exploration News International News

Crude Oil

PRICES International Prices

National Prices

Retail Selling Prices

Bitumen Prices

STOCK PRICES Crude oil Stock

Daily Share Price

MCX Bhav copy

DATA Import & Export – Port wise Data

Industry Sales

Pipeline Transfers

Natural Gas Import, Sale And Production

Region-wise Sales Growth

Sector-wise HSD Direct Sales

FO/LSHS & Naphtha Upliftments

Import / Export

Tankers Position - Petroleum

Tankers Position - LPG Excise Duty on Petroleum Products

PRODUCTION

DATA

Crude Oil production

Natural Gas Production

Refinery Production

UPDATES Projects Update

Tenders

Events

Contact Us

PetroMag Petroleum Bazaar.com 2

Sanctions off, Iran oil ties get priority

‗We can process 170 types of crude oil today‘

Why Iran nuclear deal may lead to windfall gains for India

PM favours export of surplus sugar, ethanol blending

Private oil players stress on marketing

HPCL trucks to use bio diesel

Indian Oil, Hindustan Petroleum, Bharat Petroleum may soon let anyone open petrol pump

Bunk owners sell subsidised diesel on the black market

37% rural homes in Tamil Nadu use LPG, highest in country

Certain issues on GST that must be resolved

Modi reviews issues relted to sugar sector at high-level meeting

Pradhan meets Samsung officials igniting expectations that LNG transport ships

Fall in LPG cylinder prices come as relief for buyers

Piped natural gas connection launched in SN Puram

73% of rural Bihar use kerosene for lighting

Coimbatoreans get to breathe some clean air

Ved Prakash Mahawar takes over as Director (Onshore), ONGC

Sudhir Sharma takes over as Director (Exploration), ONGC Videsh

Prabhat Kumar Singh has been appointed the new Managing Director and CEO of Petronet LNG Ltd.

Cylinder thief held at Mumbai's Charkop

Cops impound 150 Ola cabs after HC ban on diesel taxis

Shayne Heffernan Oil Price Report

Russia, Algeria agree to boost cooperation in oil, gas sectors

Asian crude buyers size up Iran barrels

China moves to make the grade as a setter of oil price

NE Future, Oil & Natural Gas

Exxon and Chevron may soon see European sights

Algeria boosts oil output by 32,000 bpd with two new fields

Adriatic oil, gas exploration raises concerns for Croatia tourism

Rosneft‘s $1 Billion Siberia Partner Backed by Chinese Investors

Brazil: ANP launches 13th bidding round for oil and natural gas blocks

ENOC secures support for Dragon Oil takeover with improved offer

Survey finds oil, gas in Maldives

Sudan to Export 150 Thousand of Guar to United States of America

NATIONAL NEWS

EXPLORATION NEWS

INTERNATIONAL NEWS

Ministry of Petroleum and

Natural Gas,

New Delhi

Minister of State

Shri Dharmendra Pradhan

Secretary

Shri Kapil Dev Tripathi

Addl. Secretary & Fin. Advisor

Mr. S C Khuntia

Special Secretary & FA

Shri S.C.Khuntia

Jt. Secretary ( R )

Shri Sandeep Pondrik

Jt. Secretary (International corp.)

Shri Ashutosh Jindal

Jt. Secretary (Expl.)

Shri U.P.Singh

Jt. Secretary (M)

Dr. Neeraj Mittal

Economic Advisor

Dr. Archana S Mathur

Director (Marketing)

Smt. Sushma Rath

Dir (Supply& Pricing) Addl. Charge

Shri Alok Tripathi

Director

(Exploration III)

Shri Prashant Lokhande

Director (CA)

(International coop.)

Smt. Anuradha S Chagti

****************

Directorate General of

Hydrocarbons

Director General

Shri B N Talukdar

****************

Petroleum Conservation

Research Association

Chairman Executive Committee

Shri Kapil Dev Tripathi

Member Secretary Exec. Director

PCRA

Shri L N Gupta

****************

Oil Industry Safety Directorate

Executive Director

Shri Hirak Dutta

CRUDE OIL

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Iran warns Opec it plans to recapture market share

Iran sees oil output up 1 mln bpd after curbs end

Russian oil production dips in July

Will China join the IEA?

Shell‘s Japan Deal Signals Further Refiner Consolidation

OPEC Oil Production Falls as Iraqi Output Slips From Record

DHAKA: Govt makes abnormal profit from fuel oil

Waiting for the Second FLNG Wave

NEPAL: NOC slashes LPG price by Rs 35/cylinder

KARACHI: Sustainable Energy

Arguments for and against the Keystone pipeline are all over the map.

Indonesia's Donggi-Senoro LNG project ships first cargo

Oil companies Royal Dutch, Centrica, Saipam, forecast big job losses

Natural gas futures - weekly outlook: August 3 - 7

Crude oil futures - weekly outlook: August 3 – 7

Nymex oil posts worst monthly drop of 2015

Saudi tumbles on oil, earnings; other markets also weak

WTI Crude Oil Speculators Drop Net Bullish Positions For 4th Week

Import of Petroleum Products at Indian Ports during May 2015

Export of Petroleum Products at Indian Ports during May 2015

Import of Petroleum Products at Indian Ports during June 2015

Export of Petroleum products at Indian Ports during June2015

IMPORT & EXPORT – PORTWISE DATA

CRUDE OIL

National Productivity Council

President Mrs. Nirmala Sitharaman (Union

Minister for Commerce and Industry)

Chairman

Sh. Amitabh Kant, IAS

****************

Indian Oil Corp. Ltd.

Chairman & MD B. Ashok

Dir (Mktg.)

Shri Makrand Nene

Dir(Ref.)

Shri. U. Venkata Ramana ****************

Bharat Petroleum Corp. Ltd.

Chairman & MD

Shri S. Varadarajan

Dir (Ref.) Shri. B K Datta

Dir (Mktg.)

Shri. K.K. Gupta

Dir (Fin.) P Balasubramanian

****************

Hindustan Petroleum Corp. Ltd.

Chairman & MD

Ms Nishi Vasudeva

Director - Refineries Mr. B. K Namdeo

Director - Marketing

Mr. Y K Gawali

Dir (Fin.) Mr. K V Rao

****************

Oil & Natural Gas Corporation

Chairman & MD Shri D K Sarraf

Dir (Onshore)

Ved Prakash Mahawar

Dir(Offshore)

Sudhir Sharma Dir (Finance)

Mr. A. K. Banerjee

Gujarat State Petroleum

Corporation

Shri. L Chuaungo

PetroMag Petroleum Bazaar.com 4

CB-ONN-2003-1 (A&B) Oil Exploration (NELP-V) Project

Coke Gasification (Jamnagar) Project

East India Paradip Refinery - IOC

Ennore LNG Terminal Project - IOC

Gas Cracker Dibrugarh Project - BRAHMAPUTRA CRACKERS LTD

Gas Pipeline (Mehsana-Bathinda and Bathinda-Jammu-Srinagar) Project

Liquid Storage Tank Terminal (Kandla) Project

LNG Re-gasification Terminal (Mundra) Project

LNG Storage & Re-gasification Terminal (Chhara) Project

LNG Terminal (Uran) Project

Manali Refinery (Chennai) Project - Upgradation

Petroleum Refinery (Atchutapuram) Project - Phase I

Petroleum Refinery (Guwahati) Project - Modernisation

Petroleum Refinery (Koyali) Project - Expansion

Piped Gas (Pune) Project

Refinery (Mumbai) Project - Upgradation

Refinery (Pachpadra) Project HPCL

Strategic Crude Oil Storage Project - VISHAKAPATTANAM

Gujarat Gas Grid Project

Gas Pipeline (Alwar, Baran & Jhalawar) Project

Dabhol-Bangalore Gas Pipeline Project - GAIL

Cuddalore Refinery Project - NAGARJUNA

Crude Oil Pipeline (Paradip-Haldia-Barauni) Project - Augmentation

Crude Oil Pipeline (Chennai Port-Manali Refinery) Project

Coal Bed Methane (Jharkhand) Project

City Gas Distribution (Hyderabad & Vijayawada) Project

Chainsa-Gurgaon-Jhajjar-Hissar Gas Pipeline Project -GAIL

Aromatic Complex (Mangalore)

LNG Terminal (Paradip) Project

LNG Terminal (Dahej) Project - Expansion

LNG Floating Storage & Regasification (Kakinada) Project

Kochi-Kanjirkkod-Mangalore-Bangalore Pipeline Project

Kochi-Irimpanam Petroleum Pipeline Project

PROJECT UPDATE (W.E.F : 08/07/2015)

National Productivity Council

President

Mrs. Nirmala Sitharaman (Union

Minister for Commerce and

Industry)

Director General

Shri Harbhajan Singh

Chairman

Sh. Amitabh Kant, IAS

****************

Oil India

Chairman - Interim

U.P. Singh

Executive Director (Operations)

S. Balasubramanian

Dir(Ref.) Sanjiv Singh

****************

Bharat Petroleum Corp. Ltd.

Chairman & MD Shri S. Varadarajan

Dir (Ref.)

Shri. B K Datta

Dir (Mktg.) Shri. K.K. Gupta

Dir (Fin.)

P Balasubramanian

****************

Hindustan Petroleum Corp. Ltd.

Chairman & MD

Ms Nishi Vasudeva

Director - Refineries Mr. B. K Namdeo

Director - Marketing

Mr. Y K Gawali

Dir (Fin.) Mr. K V Rao

****************

Oil & Natural Gas Corporation

Chairman & MD Shri D K Sarraf

Dir (Onshore) Ashok Varma

Dir(Offshore)

T. K. Sengupta

Dir (Finance)

Mr. A. K. Banerjee

Gujarat State Petroleum Corporation

Shri. L Chuaungo

PetroMag Petroleum Bazaar.com 5

Kochi-Coimbatore-Erode-Salem LPG Pipeline Project

Kochi Refinery Project - Expansion

Kirandul-Visakhapatnam Slurry Pipeline Project

Karanpur-Moradabad-Kashipur-Rudrapur-Pantnagar Gas Pipeline Project - GAIL

Kakinada Refinery Project - KAKINADA

Pipeline (Awa Salawas) Project

Petroleum Storage Terminal Project -MOHANPURA

Petrochemical Complex Dahej - ONGC Petro additions ltd

Paraxylene (Jamnagar) Project

Panna Oilfield Development Project

Natural Gas Pipeline (Pipavav-Gundlav) Project

Natural Gas Pipeline (Barauni-Guwahati-Agartala) Project

Mumbai High (South) Redevelopment Project - Phase II

Mathura-Tundla-Kanpur Product Pipeline Project - Extension

LNG Terminal Kochi Project – PETRONET LNG LTD

Visakhapatnam Marketing Installation Resitement Project

Vadinar Oil Refinery Project - Expansion

Uttar Pradesh Refinery Project - LOHAGARA

Uran-Chakan-Shikrapur LPG Pipeline Project

Ratna Oilfield Development Project

Rewari-Kanpur Pipeline Project

****************

Shell India Limited

Chairman Jorma Ollila

Chief Executive Officer

Ben van Beurden ****************

Castrol India Ltd.

Chairman

Mr. Navin Kshatriaya

****************

Chevron Petroleum

Chairman and Chief Executive

Officer John S. Watson

Chevron Lubricants

Managing Director

Mr. Akhil Kumar

****************

Total Oil India Pvt. Ltd.

Country Chairman & Managing

Director Mr. B. Vijay Kumar

****************

Chennai Petroleum Corporation

Limited (CPCL)

Managing Director Mr. Gautam Roy

Finance Director S Krishna Prasad

****************

Balmer Lawrie & Co. Ltd.

Chairman & MD Mr. Virendra Sinha

****************** Oil India Limited

Chairman & MD

Mr. S K Srivastava

Dir (E&D) Mr. Sudhakar Mahapatra

Director (Operations)

Mr. Satchidananda Rath

Director (Finance) Shri S. Krishna Prasad

****************

Petronet LNG Limited

Chairman

Saurabh Chandra

CEO & MD

Dr. A. K. Balyan

Dir (Tech) Rajender Singh

Dir (Fin.)

Mr. R. K. Garg

****************

Numaligarh Ref. Ltd.

Managing Dir.

Mr. P. Padmanabhan

Dir (Fin.) Mr. S K Barua

****************

Mangalore Ref. Pet. Ltd.

Managing Dir.

Mr. Prasad

Director

(Refinery) Perin Devi

****************

Cairn India Ltd.

Interim Chief Executive Officer &

CEO Mayank Asher

MD

Sudhir Mathur

Head – Sales and Marketing

Mr. Karunakaran Hari

***************

Tata Petrodyne Ltd.

Chairman Mr. Prasad R. Menon

Executive Director & CEO

Mr. S.V.Rao ****************

Adani Group

PetroMag Petroleum Bazaar.com 6

Energy Prices – Petroleum ($/bbl) [Revised daily]

Price Change

Nymex Crude 46.81 - 0.31

Dated Brent 51.78 - 0.43

WTI Cushing 46.75 - 0.37

NYMEX price for Crude, Gasoline and Natural Gas Futures[Revised daily]

NYMEX Light Sweet Crude -1.40 $47.12

ICE Brent -1.10 $52.21

RBOB Gasoline NY Harbor +0.0131 $1.8410

Heating Oil NY Harbor -0.0142 $1.5840

NYMEX Natural Gas -0.019 $2.749

ICE Futures[Revised daily]

Brent $/bbl 51.19 US Stock –31/07/15 (million barrels) [Revised WEEKLY]

Product Stock: 24/07/15 Change vs.

week Change vs. year

Crude oil 459.7 -4.2 92.3

Gasoline 215.9 -0.4 -2.3

Distillate 144.1 2.6 17.4

Propane 89.446 1.756 22.245

Base Oil – USA (FOB) Revised fortnightly] 31-07-15

SN 150 850 865 -

SN 500 885 895 -

Bright Stock 1220 1235 -

Base Oil – Iran (FOB) [Revised fortnightly] 31/07/15

SN 150 685 700 -

SN 500 665 670 -

Bright Stock 925 930

Reclaimed Oil (Kuwait) 595 605 -

US working gas in underground storage (bcf) Data Released 31st, JULY, 15 [Revised WEEKLY]

Region 24/07/15 17/07/15 Change

East 1,318 1,276 42

West 464 458 6

Producing 1,098 1,094 4

Total 2,880 2,828 52

Product Prices USD Arab Gulf [Revised daily] HSFO 180 CST ($/mt) 325.50 333.00

HSFO 380CST ($/mt) 286.50 302.00 Naphtha Prices 03/08/15 [Revised fortnightly]

CIF ARA Cargoes 454.25 454.75 CIF MED Cargoes 443.75 444.25

LPG Price 03/08/15 Propane Butane North West Europe FOB Seagoing 245.000 351.000

FOB ARA 353.000 348.000

Arab Gulf 346.000 377.000

INTERNATIONAL PRICES

PetroMag Petroleum Bazaar.com 7

….. [Revised fortnightly]

Week Ending Quotations of OPEC Reference Basket Price Month Week Ending Basket

February, 2015 09 27/02 $ 54.87

March, 2015 10 06/03 $ 55.98

11 13/03 $ 52.93

12 20/03 $ 49.50

13 28/03 $50.01

April, 2015 14 03/04 $ 51.98

15 10/04 $ 53.93

16 17/04 $ 57.44

17 24/04 $ 59.30

18 29/04 $ 61.37

May, 2015 19 08/05 $ 63.57

20 15/05 $ 62.83

21 22/05 $ 61.78

22 29/05 $ 60.43

June, 2015 23 05/06 $ 60.49

24 12/06 $ 61.08

25 19/06 $ 60.21

26 26/06 $ 59.74

July 2015 27 03/07 $ 58.71

28 10/07 $55.07

29 17/07 $ 54.59

30 24/07 $53.19

Monthly Average: May 2015 $ 62.16

June 2015 $ 60.38

Month to Date Average July 2015 $ 55.09

Quarterly Average 2Q15 $ 59.90

Quarterly to Date Average 3Q15 $ 55.83

Yearly Average 2014 $ 96.29

Yearly to Date Average 2015 $ 55.12

..REVISED WEEKLY

Most Recent Year Ago 26/06/15 03/07/15 10/07/15 17/07/15 24/07/15 23/07/14

U.S. 465.4 465.8 461.4 463.9 459.7 367.4

East Coast

(PADDI) 15.5 15.8 13.9 14.3 14.6 11.4

Midwest (PADD II) 138.4 137.8 138.8 139.1 139.3 83.9

Cushing,

Oklahoma 56.4 56.7 57.1 57.9 57.7 17.9

Gulf Coast (PADD

III) 234.3 233.9 231.8 234.3 231.1 197.4

Rocky Mountain

(PADDIV) 21.5 21.3 21.8 21.8 21.6 19.9

West Coast(PADD

V) 55.7 56.9 55.1 54.4 53.1 54.8

CRUDE OIL STOCKS [Revised WEEKLY]

PetroMag Petroleum Bazaar.com 8

MARKET WATCH CURRENCY WATCH

BSE Sensex 28,114.56 409.21 Rs – 1 $ 64.0054

NIFTY 8532.85 111.05 Rs. – 1 Euro 70.1627

DJIA 17,689.86 -56.12 Rs. – 100 Jap. Yen 51.5500

NASDAQ 5,128.28 -0.50 Rs. - 1 Pound 99.8356

MIDCAP 11273.02 114.62 Bank Rate 8.25%

Repo Rate 7.25% Reverse Repo Rate 6.25%

As on close of 31-07-2015 Today‘s Closing

Change

absolute Today‘sHigh Today‘s Low 52 week High 52 week Low

Aban Offshore Ltd. 301.00 3.60 311.60 298.00 821.00 276.00

Balmer Lawrie & Co. Ltd 632.30 -6.55 647.00 632.25 681.55 507.00

Bharat Petroleum 925.40 -20.75 959.00 918.95 987.00 561.15

Cairn Ind. Ltd. 172.35 3.20 174.60 170.00 344.15 156.80

Castrol India Ltd. 491.20 -9.90 508.00 490.10 544.00 325.15

Chennai Petroleum 191.45 -15.15 204.20 190.00 209.95 62.20

Engineers India 241.60 9.25 243.00 231.00 287.00 178.10

Essar Oil 192.60 2.80 194.80 188.65 200.30 91.85

GAIL India Ltd. 348.60 0.45 351.95 343.50 551.35 354.00

Gujarat Gas 745.60 -16.10 775.00 740.00 871.75 366.00

Gujarat State Petronet 128.90 1.70 130.10 126.05 136.90 80.00

Gulf Oil Corp. Ltd. 163.50 -2.00 167.10 163.00 188.30 120.90

Hindustan Oil Exploration 40.60 1.65 40.95 39.10 75.50 31.85

Hindustan Petroleum 924.05 -13.90 944.95 918.05 945.75 390.90

Indian Oil Corp. Ltd. 431.25 -14.00 446.40 428.55 465.40 307.00

Mangalore Refineries 72.60 0.25 74.50 72.60 80.75 45.10

Nagarjuna Oil Refinery Ltd. 4.26 -0.06 4.40 4.20 6.55 3.50

Oil India Ltd. 432.40 8.55 435.00 423.75 668.80 420.00

Oil and Natural Gas 273.05 1.85 276.40 271.10 458.95 263.60

Petronet LNG 193.00 -1.50 198.00 191.50 221.90 159.80

Reliance Industries Ltd. 1001.65 2.35 1007.90 990.00 1,067.00 796.75

Tide Water Oil India 16586.00 1271.00 16700.00 15315.00 19,680.00 11,079.00

DAILY SHARE PRICES

PetroMag Petroleum Bazaar.com 9

Sanctions off, Iran oil ties get

priority

Oil minister Dharmendra Pradhan is expected to lead a delegation to Iran in the coming weeks to scout for

opportunities in oil and gas, following the end of sanctions on Tehran by the West.

The talks will cover the development of the Farzad-B field, revival of the Iran-Pakistan-India gas pipeline and the

modernisation of the oil and gas infrastructure in the Islamic nation.

"India is keen on strengthening ties with Iran, as we stood by them when sanctions were imposed by the US and

the EU. The petroleum minister will soon be leading an Indian delegation to Tehran in the coming weeks to

discuss energy co-operation between the two nations," a senior oil ministry official said.

An Indian delegation led by finance secretary Rajiv Mehrishi has just returned from Tehran. This delegation

comprised officials from the finance, petroleum and natural gas ministries and the RBI.

Officials said they discussed the payment of $6 billion owed by PSU refiners for the purchase of crude oil. The

payment could not be made because the international settlement channels were blocked by the West.

India is keen to increase crude imports from Iran after settling the dues. Iran supplied around 11 million tonnes

(mt) of crude of the total imports of 190mt in the last fiscal, a share of 5 per cent. Prior to the sanctions, imports

were much higher at 18mt.

State-owned refiner IOC is planning to buy crude to operationalise its refinery at Paradip in Odisha.

The oil ministry hopes to convince Iran to honour its commitment to let ONGC develop the Farzad-B gas field in

the Persian Gulf. It is one of the biggest gas field discoveries by an Indian company abroad. However, ONGC

Videsh Ltd has shied away from investing nearly $7 billion because of the sanctions. The field has reserves of

12.8 trillion cubic feet of gas.

The country is also keen on reviving the Iran-Pakistan-India gas pipeline, which had been put on the backburner.

The development of the Chabahar port in Iran is also expected to pick up speed with the lifting of sanctions.

In 2003, India and Iran had agreed to develop Chabahar on the Gulf of Oman, near Iran's border with Pakistan,

but the venture has moved slowly.

"With Pakistan not a feasible transit option, the Indian government sees the potential for Iran to serve as a crucial

transit route to Afghanistan and Central Asia, a region with which Prime Minister Narendra Modi advocated

greater linkages during a recent visit," Tanvi Madan, an analyst at Brookings Institution, said.

‗We can process 170 types of crude oil today‘

Indian Oil Corporation is looking at a rather strong first quarter on the back of a consistent domestic retail fuel

pricing policy by the government, low oil prices and its own financial jugglery.

With better gross refining margins, upgrading of existing refineries, the setting up of a new one (Paradip), and a

sharper focus on its gas business and pipeline network, the company is once again gearing up to beat the

competition, said B Ashok, its Chairman. Edited excerpts from an interview with BusinessLine:

How do you counter the constant refrain that Indian Oil is not spending enough to upgrade its refineries, process

cheaper crude, and improve refining margins?

I would like to clarify that we have been constantly upgrading our refineries. If you look at our capability today to

process different types of crude, this is because of upgradation.

We have been consistently spending money. Plan after plan our expenditure has only been increasing. We should

be close to achieving the 12{+t}{+h} Plan target. In fact we will go over the capital expenditure target of ?56,200

crore. With two years left, we have already crossed ?40,000 crore.

We have also spent on a Greenfield refinery at Paradip, which is close to commissioning. Money has also been

put in to improve fuel quality. India will be completely covered with BS IV by April 2017. All this meant that the oil

industry has to upgrade technology.

Of the total capex for the 12{+t}{+h} Plan, how much is for upgrading refineries alone?

Broadly, about 50 per cent is going to refineries, which includes both upgradation and quality product

implementation. In every refinery there is a quality upgradation project, which is ongoing. In the next phase, when

we go for Euro VI (BS VI), we will combine it with brownfield expansions.

Does this mean your GRMs will be as good as your private counterparts?

Refineries in India, which include the private ones, have shown the world that if you increase your capabilities to

process multiple types of crude then you are in a better position to take advantage of the market (in terms of

product availability and pricing). In terms of average complexity, if you include all the private sector refineries,

India ranks very high if not the highest in the world.

PetroMag Petroleum Bazaar.com 10

If you see Indian Oil‘s basket, we can process 170 plus varieties of crude today. At any point of time we should

have some 40 sources, which include West Asia, South-East Asia, Latin America, Africa, and some CIS countries

also. This has improved our flexibility.

As regards GRM (gross refining margin), the first quarter has been relatively good. The figures will be out soon

and we are pretty optimistic.

Are you buying Iranian crude also? Is Iraq still your main supplier?

We were buying Iranian crude to a limited extent. Of course, the new developments (the nuclear deal) have

provided a scope for increased supply. But, these developments will not happen overnight. So, we will have to

wait and watch as to how things pan out. For Indian Oil, at the moment, the maximum is from Iraq.

Have you reworked your crude procurement process?

Between last year and this year we have increased our flexibility to process spot crude by reducing terming (term

contracts) quantities from 80 per cent to 70 per cent. If you do too much of terming then the schedules are all

fixed and the carriers carrying these quantities will come to the port, thus, closing any pricing opportunities

available. A key thing that we have done in our procurement process for spot is that we have shrunk the window

of our tenders.

Till the middle of last year, we were taking almost 36 hours to process. We have now reduced it to 12 hours. It is

helping us in terms of bringing the cost down by a few cents in our procurement. For both product imports and

crude imports, we have done this shrinking.

Besides Paradip, are you looking at another new refinery?

We are evaluating a West Coast refinery (the only region IOC does not have a refinery). Setting up a refinery is not

something that happens overnight. We have studied the demand and also looked at scenarios of substitute as

well as alternate fuels that can come in. Based on certain assumptions we feel that there is a need for another

refinery.

At the retail level have you revived your branded fuels?

Branded fuel is picking up again. We have reintroduced it. Close to 14-15 per cent of our overall sales were

coming from branded fuels (earlier). Subsequently, because of the duty structure — the excise duty being higher

for branded fuels — sales almost went down to zero. But, during that time we kept marketing additives separately

for discerning customers who wanted fuel outside the conventional commodity fuel.

But now that duties have been rationalised and the price difference has come down, we have relaunched

branded fuel because the infrastructure is already available. It is picking up.

Why Iran nuclear deal may lead to windfall gains for India

More importantly, it has acceded to a rigorous inspection of its nuclear facilities in return for lifting the US, EU

and UN sanctions. While the deal—started after the election of Hassan Rouhani as Iranian President in 2013 and

mediated by Sultanate of Oman—helped restore diplomatic relations between the US and Iran, which have been

hampered since the 1979 Iranian Revolution. It has significant implications for countries in Middle East and Asia,

especially India.

As a major net importer of oil, India has already benefited from the US-led nuclear deal with Tehran. Oil prices

have declined in recent days, driven largely by expectations of more Iranian crude hitting the market (India saves

nearly $1 billion in import costs for every dollar drop in global crude prices).

In fact, India has been preparing for the deal—Prime Minister Narendra Modi recently met with Rouhani on the

sidelines of the Shanghai Cooperation Organisation summit in Russia's Ufa, where he invited Rouhani to visit

India and expressed his desire to visit Iran. His desire to travel to Iran is seen as part of a calibrated strategy to

visit the Middle East neighbourhood, including Israel, Palestine, Jordan and Turkey, in the second year in power

after visiting countries in the immediate neighbourhood and Asia-Pacific besides G-7 partner countries within a

year of coming to power.

The US-Iran deal will have significant impact on the energy and economic ties between Indian and Iran as India

continues to be the world's fourth largest energy consumer and imports more than three-quarters of its oil and an

increasing amount of its natural gas.

A few years ago, 17% of Indian oil imports were from Iran, which had become the country's second largest

supplier. Last year, Iran was seventh on the list, supplying only 6% of Indian oil imports.

The enhanced volume oil that is expected to flow to India following the lifting of sanctions on Iran will help the

country meet its burgeoning fuel needs as it embarks on an ambitious journey to solidify its position as the top

economic power in the region along with China. This is particularly significant considering sanctions on the

Iranians since 2003 have forced India to increasingly look at Iraq, Kuwait, the UAE and Saudi Arabia for oil

imports.

PetroMag Petroleum Bazaar.com 11

The Modi government, which benefitted a lot from falling oil prices (when Modi came to power, the price for crude

oil was $108.05 a barrel which declined to $57.19 a barrel on the day of the Iran-US deal), hopes that a possible

oil glut following the re-entry of Iranian oil in global oil market—which has already inundated with increased Shale

production in the US—will greatly benefit Indian oil refining firms.

Considering China's role in developing and modernising the port of Gwadar in Pakistan and with Pakistan not a

feasible transit option, India sees the potential for Iran to serve as a transit route to Afghanistan and Central Asia.

This has enhanced India's desire to invest in upgrading the Iranian port of Chabahar. While talks over Chabahar

have been halted over and over again, the nuclear deal has cleared crucial political and financial obstacles and

India expects the port to be operational by the end of 2016. The deal may also lead to fruitful discussions over

developing another transit corridor through Iran to Europe and Russia.

The deal will also enhance the relation between India and the US which has been under strain of late as the US

has been looking askance at India's relationship with Iran and especially its oil imports. Indian energy firms like

ONGC have also found their financial interests being hampered due to American sanctions as they have made

considerable investments in Iran.

However, the deal is also going to hurt India—as India refused to fully take part in the US-led sanctions on Iran, it

has emerged a key trading partner of Tehran in the recent past with Indian corporates making a windfall (exports

to Iran nearly doubled to $3.3 billion between 2009 and 2013). However, once the sanctions are lifted, Indian

businesses will begin to face stiff global competition in doing business in Iran. For instance, India has been a

major exporter of automobile components, tools, motors and chemicals to Iran. Now Indian exporters will have to

compete with Eastern European manufacturers, who produce low-end products like spanners, hand tools and

auto parts. The fall in the value of euro, over the last few years, is expected to further enhance the

competitiveness of European manufacturers.

PM favours export of surplus

sugar, ethanol blending

New Delhi: Prime Minister Narendra Modi on Saturday favoured elevating sugar exports to liquidate surplus

shares as a result of of low home demand that has led to an enormous cane arrears of over Rs 14,000 crore to

farmers.

Modi chaired a gathering of ministers and officers to evaluate points associated to the sugar sector the place he

referred to as for growing the ethanol-blending with petrol.

―Taking word of the present provide-demand points with regard to sugar, the Prime Minister referred to as for

assiduous efforts to extend ethanol blending of gasoline. He additionally referred to as for exploring all prospects

for export of sugar,‖ a PMO assertion stated after the assembly.

Sugar business, which owes about Rs 14,398 crore to cane farmers, is unable to make cost as it‘s dealing with

extreme liquidity crunch on account of surplus manufacturing that has resulted in low costs of sugar within the

home market.

Finance Minister Arun Jaitley, Agriculture Minister Radha Mohan Singh, Food Minister Ram Vilas Paswan and

Commerce Minister Nirmala Sitharaman, amongst others, participated within the assembly.

―The Prime Minister emphasised that the farmers‘ curiosity be stored foremost always, and points associated to

sugar sector be monitored repeatedly. Long-time period measures with regard to the sector have been

additionally mentioned,‖ the assertion stated.

Modi additionally reviewed the progress with regard to the Rs 6,000 crore incentive package deal permitted by

the federal government in June 2015 to allow sugar mills clear cane arrears to farmers.

Ex-mill sugar costs have fallen to under Rs 20/kg within the nation, whereas the fee of manufacturing is over Rs

30/kg. There continues to be surplus inventory of 10 million tonnes within the nation.

Sugar manufacturing of India, the world‘s second largest producer and largest shopper, is estimated at report

28.3 million tonnes in 2014-15 advertising yr (October-September), as towards 24.3 million tonnes within the

earlier yr. The complete annual demand is pegged at 24.5 million tonnes.

Senior officers from the Ministries of Agriculture, Food and Consumer Affairs, Finance, Commerce, External

Affairs, Petroleum and Natural Gas, in addition to NITI Aayog and PMO, have been additionally current within the

assembly.

Food ministry is believed to have proposed numerous brief and long run measures to beat the disaster that

features obligatory larger exports, elevated ethanol (bye-product of sugarcane) blending with petrol and

enlargement of co-era energy capability.

Private oil players stress on marketing

Private fuel retailers, such as Reliance and Essar, are likely to capture 10-12 per cent of the market share by

2018-19 through innovative marketing strategies.

"The big three public sector oil marketing companies are unlikely to lose more than 3-5 per cent market share

over the next two years. However, private players are likely to capture 10-12 per cent market share by 2018-19

with 7-8 per cent share in retail outlets," rating agency Crisil said in a research note.

PetroMag Petroleum Bazaar.com 12

The market is dominated by three state-owned players - Indian Oil Corporation, Bharat Petroleum Corporation and

Hindustan Petroleum Corporation.

The private players have already started some novel campaigns. Reliance, for instance, is offering discounts,

ranging from 25 paise to 80 paise per litre, depending on monthly consumption.

Customers in Gujarat (where its refinery is located) and Maharashtra (along the coast) are being offered higher

discounts.

New players are also likely to implement location-based pricing. Certain locations may have lower prices because

of various reasons such as proximity to the refinery, higher throughput per outlet and more competition.

A dynamic pricing model, with consumers paying marginally different rates in a city depending on the location of

the outlet and the time of the day, is under consideration.

Analysts said the companies would come up with different strategies for cities and highways, apart from providing

non-fuel retail options at the pumps to woo customers.

Outlets which cater primarily to trucks could offer essential facilities to the truck drivers - a secured parking area

and an inexpensive place to rest and eat. On highways, fuel stations would have eateries, restrooms, ATMs, Wifi,

pharmacies and car wash facilities.

The fuel retail industry was worth about Rs 6.2 trillion in 2014-15. Petrol and diesel together accounted for

around 50 per cent of petroleum product consumption of 100 million kilolitres in the last fiscal.

HPCL trucks to use bio diesel In a step towards adopting green fuel, Hindustan Petroleum Corporation Ltd. (HPCL) has begun using bio diesel in

its company trucks. Initially, the oil major will use 5% bio diesel blended with regular diesel.

―Diesel engines require very little or no modification to use up to 20 per cent of bio diesel and a minor

modification for higher percentage blends,‖ said a company source after the launch recently.

HPCL‘s fleet of seven fuel-carrying trucks attached to the Athipet terminal in north Chennai will now use blended

diesel.

Bio diesel is priced at Rs. 50 a litre and is manufactured from vegetable oils and animal fats. HPCL procures the

green fuel from private companies in Kakinada, Nagpur and elsewhere.

The use of this fuel results in substantial reduction of un-burnt hydrocarbons, carbon monoxide and particulate

matter.

It has almost no sulphur (only 50 ppm), no aromatics and about 10 percent built-in oxygen which help in ensuring

better combustion.

Indian Oil, Hindustan Petroleum,

Bharat Petroleum may soon let anyone open petrol pump

NEW DELHI: Anyone wanting to own a petrol pump will soon be able to do so at a place of his choice without

having to be particularly lucky in a long-drawn system or being born in backward caste.

The government is considering a proposal to offer state-run fuel retailers the freedom to allocate dealership to

anybody willing, a move that has the potential to revolutionise the sector, curb malpractices, and most

importantly arm state companies against the emerging competition from private rivals such as Reliance

IndustriesBSE 0.24 % and Essar Oil that have resumed expansion following a deregulation of fuel sales,

government and industry sources said.

Government officials will meet executives of Indian Oil CorporationBSE -3.14 % (IOC), Hindustan PetroleumBSE -

1.48 % Corp (HPCL) and Bharat Petroleum Corp (BPCL) this week to work out the details of the plan, they said.

Government officials will meet executives of Indian Oil CorporationBSE -3.14 % (IOC), Hindustan PetroleumBSE -

1.48 % Corp (HPCL) and Bharat Petroleum Corp (BPCL) this week to work out the details of the plan, they said.

As per the proposal, anyone wanting a dealership can apply at any point in time and be awarded one quickly as

long as he makes the entire investment involved in setting up a filling station.

"We will no more have one hand tied behind our back while fighting the private competition," a senior executive at

a state-run fuel retailer said.

At present, state firms are saddled with norms requiring appointment of about half of dealers from backward

class, restriction of dealership to just a member in the family, follow the arduous appointment process and also

cater to political interests.

PetroMag Petroleum Bazaar.com 13

The memory of a decade back is still fresh in the minds of state-run firms when private players snatched nearly

15% share in the sale of diesel within years of their entry, mostly due to extensive use of technology, enhanced

level of service and total control over dealers. This is why they are lobbying the government to give them a free

hand to fight private competition.

"We have had little control over distributors. We have always had the dilemma that if we were to fire a dealer we

may lose the market to a competitor and not be able to recover that quickly because the appointment of a

replacement would take a long time," said the executive.

He was referring to the challenges state firms have faced in firing distributors engaged in malpractices, which

lower the quality of service to customers. But a flexibility to appoint a new dealer will remove this dilemma, he

said.

Moreover, the government has mandated a 10% automation every year at IOC, HPCL, and BPCLBSE -2.19 %,

which currently have about a third of their regular petrol pumps automated. This technological application helps

companies keep a check on adulteration at fuel stations.

The proposed system will also help state firms attract most entrepreneurs interested in the petrol pump

business, leaving fewer candidates for the likes of Reliance or Shell. Until now, the private players could easily

offer their dealership to those who had lost out in the race to win a public sector petrol pump.

"There is still an inclination for public sector pumps. Also, the private players can't match the security of supply

we provide because of our nationwide infrastructure," the executive said.

A government official said the move will also enhance state firms' presence across markets, a "brand boost", and

help find dealers easily.

Soaring land prices in cities and falling average volumes at filling stations due to proliferation of pumps have

made appointing dealers a difficult exercise.

To appoint a dealer, state oil companies survey markets to identify locations for new filling stations, then seek

applications from eligible candidates meeting government guidelines and then pick one either through a draw of

lots or by an open bidding process. In most cases, the cost of setting up petrol pumps is shared between

companies and dealers.

Until a few years ago, the appointment process also included interview of candidates, making the process prone

to influence and corruption.

India has about 53,000 petrol pumps with 95% of them under the control of state firms.

Afear that the subsidy may snap back again if crude oil prices were to shoot up has checked faster expansion at

private retailers. But the Chinese slowdown, Iran's nuclear deal and the unwillingness of West Asian oil producers

to cut output has boosted conviction that oil prices will not go up in a hurry. This is being read as a signal that

private retailer may press the accelerator now.

Bunk owners sell subsidised diesel

on the black market

Government offers a relief of Rs 9-10 on every litre of diesel to automobile owners, presenting the unscrupulous

diesel seller the perfect setting to make a quick buck

Bengaluru's oil business is turning murky again. At least 45 petrol bunks have come under the scanner for selling

subsidised diesel at non-subsidised diesel rates.

Bengaluru Petroleum Dealers' Association has taken up the issue with the petroleum ministry, oil marketing

companies (OMCs) and the Karnataka government to blow the lid off the con game.

The racket is said to have become rampant after the union government stopped the sale of subsidised diesel to

bulk consumers like industries, while restricting its sale to retail users like automobile owners.

The government offers a subsidy of Rs 9-10 on every litre of diesel to its select user, an automobile owner for

one. Now, that becomes a perfect setting for the unscrupulous diesel seller to make a quick buck. Taking

advantage of the situation, a few OMC executives collude with petrol bunk retail outlet operators for a higher

commission. This becomes easy for them with most automobile users not bothering with bills every time they

tank up. OMCs show through their record books that the diesel was sold at the petrol bunks, even that which

their oil tankers would have illegally door delivered to factories and educational institutions to be used in

generators.

"This sort of unscrupulous activity is affecting the business of genuine retail outlets," said B R Ravindranath,

president of Bengaluru Petroleum Dealers' Association. In fact, the city had earlier faced problems related to

pilferage and adulteration of fuel being transported from refilling units to petrol bunks. While stating that there

are at least 45 such retail outlets that have been illegally selling subsidised diesel, Ravindranath told Bangalore

Mirror, "Last week, we met the deputy director (Bangalore West) of the department of food, civil supplies and

consumer affairs and complained to him about the illegal sale of diesel by dealers, which is hazardous to public.

PetroMag Petroleum Bazaar.com 14

Earlier too, we complained about the same to the in-charge minister, home minister and the home secretary who

asked the officials concerned to initiate action and seize such vehicles. Despite the orders, vehicles still transport

diesel, mostly late at night. They also go to schools and colleges and illegally supply diesel. The possibility of fire

accidents becomes high with such illegal activities."

"The illegal activities of around 45 retail outlets is effecting 500 other dealers who end up incurring losses. We

have requested them to stop such activities. But they continue to do so, and that is when we decided to meet the

food and civil supplies minister requesting him to take action. Oil tankers are owned by the retailers. It is obvious

that officials of oil companies are hand in glove with the retailers," added Ravindranath.

Deputy director (Bangalore West) of food, civil supplies and consumer affairs Manjunath said, "The Bengaluru

Petroleum Dealers' Association have informed us about illegal supply of diesel in tankers. We will act according to

our superiors. We can inspect the density and changes in the retail outlets and check the transactions if

required."

Retail outlets keep the delivery short; instead of supplying 3,000 litres, they supply 2,800 litres from the tanker.

The dealer saves 200 litres to earn Rs 10K as commission.

THE TRIGGER

Last Saturday, a vehicle illegally transporting diesel from Kengeri to the other part of Bengaluru was caught by

Kumbalagodu police. Speaking of the incident, an officer of the station said, "We got information from the

department of food, civil supplies and consumer affairs about a tanker illegally carrying diesel. We found that the

tanker was filled up at Sai Fuel Station to sell its load of diesel to an industry to run their generator." "Fuel to

retail consumers should be carried in barrels not in tankers and should not exceed 2,000 litres. Tankers don't

have safety measures and may explode. The fuel station was selling to an industry to make extra money. The

driver of the tanker Nagesh and cashier of the fuel station Niranjan Kumar were arrested under the Essential

Commodities Act. We later learnt they were carrying the fuel without a valid licence," he added.

37% rural homes in Tamil Nadu

use LPG, highest in country

CHENNAI: Tamil Nadu has the most number of rural households in the country using LPG for cooking. More than

37.2% of the total rural households had LPG connection in 2011-12, says the latest NSSO survey data released a

few dys ago. While 59% of rural households in the state still use firewood or chips as fuel for cooking, only 2.5%

of the total households in Tamil Nadu's rural areas use kerosene for cooking.

Tamil Nadu is followed by Kerala where 30.8% of the rural households using LPG. According to oil companies, the

number of rural households use LPG began to increase from 2007 when the DMK government launched free

distribution of cooking gas connections and gas stoves for below-poverty-line (BPL) families.

At a national level, firewood and chips used by 67.3% of the rural households, followed by LPG, which was used

by 15.0% households. Only 9.6% and 1.1% of the rural households used dung cake, coke and coal as primary

source. The remaining 4.9% households used other sources such as gobar gas, charcoal and electricity. Around

1.3% rural households did not have any arrangement for cooking, says the NSSO survey.

In urban areas, most of the households used LPG as primary source of energy for cooking.

LPG was used by 68.4% of the urban households in the country, followed by firewood and chips with 14 %

households. Kerosene was the main cooking fuel in 5.7% of the households and 2.1% of households used coke

and coal and only 1.3% of the urban households used dung cake. The remaining 1.5% households used other

sources. Noticeably, 6.9% of urban households did not have any arrangement for cooking.

Haryana had the maximum number of households with LPG connections, 86.5% of its households. This is

followed by Andhra Pradesh with 77.3%. Tamil Nadu has 70.9% of households with LPG connections in cities and

towns and the rest use kerosene and firewood as cooking fuel in the state.

Around 3 lakh connections were given free by the DMK government in 2007 with the help of Centre. "All these

connections were for people in city slums and in villages. DMK chief M Karunanidhi along with then petroleum

minister Murli Deora launched the scheme, after which the number of households with LPG connections started

to increase," DMK spokesperson T K S Elangovan told TOI. Many households in urban and rural areas benefitted

from the scheme.

Certain issues on GST that must

be resolved

There are so many issues in GST which are not settled, but I am now focusing on mostly those, which came up for

discussion, after a Rajya Sabha select committee, on July 20, submitted a report endorsing majority provisions of

the Goods and Services Tax (GST) Bill. Two points are most relevant, namely, the issue about allowing states to

levy one per cent additional tax and the Centre agreeing to compensate states for revenue loss for five years. The

Congress filed a dissent note on eight provisions, including composition of the GST council and the proposal to

allow states to levy one per cent additional tax. There is also the issue of revenue neutral rate of tax (which has of

course not been dealt with by the committee) which merits discussion here.

First, let us take the one per cent additional levy which is not to be given credit. This is the one which is most

resented by traders and manufacturers. But there are certain redeeming features as well. This was earlier

proposed, at the insistence of states, that even stock transfers of goods of a company's transfer goods from

godown to another of their own and that would not attract one per cent.

PetroMag Petroleum Bazaar.com 15

That was the view of the Centre. Now, the select committee has confirmed this view that it is not leviable on the

stock transfers. It will immensely benefit trade and industry. Secondly, this one per cent is less than the four per

cent which was being charged earlier. So, it is a better deal. Lastly, it may be discontinued if the revenue

collection is buoyant and it depends on the GST council where two-third majority will decide the issue.

The second issue is about the compensation of states for five years to the extent of 100 per cent of the loss. The

Centre's agreeing to the states' demand for 100 per cent for five years has been a master -stroke. In fact, this will

not be necessary for five years at all. In all arguments of the Centre as well as the expert committees on the

subject, it has been held that the revenue will increase substantially, if only for better compliance and trade

facilitation which will increase due to common market. If it is so, it is only theoretical that the compensation will

be 100 per cent for five years. The legend has it that you can make a promise which you do not have to keep.

The third issue is about the revenue neutral rate. Some economic analysts are of the view that if the three items -

alcohol, tobacco and petroleum - are included, then the neutral rate of 27 per cent may come down probably to

18 per cent. Actually, this is not a logical proposition. It can come down only if the average duty of these three

items is less than 27 per cent. It is just the opposite of it. These three are highly taxed items. Cigarette is very

highly taxed, both, by the Centre and the states. The rate comes to more than 100 per cent easily. Similar is the

case of alcohol. And it varies from state to state. Petroleum is also a very heavily taxed item like the others. The

average tax, whether we take median or plain average, which is the neutral rate for these three items, is much

higher than the average rate for other goods in respect of central excise, service tax and sales tax.

So, if these three are included in GST, there is no chance at all that the revenue neutral rate will come down.

Some expert committees, in the past, have recommended just 18 per cent, but they never calculated in great

detail, as would have been done by the National Institute of Public Finance. If there is a political decision to

reduce it to 18 per cent or 20 per cent that will be arbitrary and there will be serious revenue short fall. One has

to remember, also, that even if these three items are included in GST, then also there will be a separate rate far

higher than the general rate.

With these three items, there will be four rates. There are good reasons for including them for expanding the tax -

base but not for bringing the general rate down.

Modi reviews issues relted to sugar sector at high-level meeting

Taking note of the current supply-demand issues with regard to sugar, Prime Minister Narendra Modi has called

for assiduous efforts to increase ethanol blending of fuel.

At a high level meeting to review issues related to the sugar sector here yesterday, he also called for exploring all

possibilities for export of sugar.

Mr Modi also reviewed the progress with regard to the Rs. 6000 crore incentive package approved by the Union

Government in June 2015. He emphasized that the farmers' interest be kept foremost at all times, and issues

related to sugar sector be monitored regularly.

Long-term measures with regard to the sector were also discussed at the meeting, an official press release said.

Union Ministers Arun Jaitley, Radha Mohan Singh, Ram Vilas Paswan, Nirmala Sitharaman and Sanjeev Kumar

Balyan were present at the meeting.

Senior officers from the Ministries of Agriculture, Food and Consumer Affairs, Finance, Commerce, External

Affairs, Petroleum and Natural Gas, besides NITI Aayog and the Prime Minister's Office also attended the

meeting, it added.

Pradhan meets Samsung officials igniting expectations that LNG

transport ships

A senior delegation of Samsung Shipyard met Minister of State (Independent Charge) for Petroleum & Natural

Gas Dharmendra Pradhan, igniting expectations that LNG transport ships will soon be built in India.

GAIL has been insisting that foreign builders build at least a third of the 11 LNG carriers it plans to charter for 20

years from the beginning of 2017 to transport LNG from the US to India.

The company‘s initial tender in February had failed, but the Centre took up the matter with Korean officials and

Samsung Shipyard signed a pact with Cochin Shipyard, Pradhan had informed the Rajya Sabha in May

Fall in LPG cylinder prices come as

relief for buyers

For the eighth time this year, the price of the non-subsidised cooking gas (LPG) has come down, bringing a huge

relief to domestic consumers.

On Friday night, the price of LPG was cut by Rs.23.50 for a 14.2 kg cylinder bringing the price to Rs.603.50 in

Chennai. There has been a steady decrease in the cost of non-subsidised LPG since January this year. LPG prices

are revised every month.

There are 1.54 crore LPG consumers in the State and 31 lakh consumers in Chennai, Tiruvallur and

Kancheepuram districts belonging to Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat

Petroleum Corporation.

PetroMag Petroleum Bazaar.com 16

Anuradha. of Anna Nagar, said: ―I am glad that the price has dipped again. I hope the price will continue to be

affordable.‖

Consumers however say that this will not have much of an impact on the household budget since prices of

provisions, vegetables and fruits have not come down. Mogappair resident S. Meenakshi Annie, who is delighted

to note the downward trend in prices of LPG, petrol and diesel said that the government must ensure that the

benefit of fall in diesel prices must reach the end customer.

―The family budget only keeps increasing every month,‖ she said. From Friday midnight a litre of diesel would cost

Rs. 47.30. On July 16, it was revised to Rs. 51.08. Similarly, petrol now costs Rs. 64.77 a litre. It was Rs. 67.29 a

litre last month.

Though consumers are delighted with the downward trend, consumer activists say many people do not realise

the fluctuating price of cooking gas every month because of the additional amount that they pay to the delivery

personnel.

S. Mohan Ram, president of Thiruninravur Consumer Council said: ―The price may always go up. The delivery staff

members demand for Rs.40 to Rs.60 to deliver cylinders. We have been asking that gas agencies to pay fair

salary to staff members. They must install boards asking consumers not to pay more than the bill amount and

provide complaint numbers.‖

Piped natural gas connection launched in SN Puram

After a long break, the Bhagyanagar Gas Limited (BGL) launched its Piped Natural Gas (PNG) connections in the

city at Satyanarayanapuram on Sunday. Collector Babu A visited the residence of Mr and Mrs. Ch. Siva, who

obtained the PNG connection and complimented them for opting for the new gas supply mechanism.

BGL had launched PNG connections here a few years ago and had nearly 200 consumers in Ajitsingh Nagar and

neighbouring areas. The PNG supply gets metered just the way it is being done for water and electricity. From the

mainline, a separate pipeline enters the kitchen and a gas metre is installed, initial reading is noted down and

billing is done based on the consumption. ―It is safe, eco-friendly and people should opt for the PNG connections

ensure 24 hour gas supply. Vijayawada should be transformed into a smart gas pipeline city,‖ said Mr. Babu.

After introducing the facility in Ajitsingh Nagar, the project faced hit roadblocks. Officials had to obtain clearances

from Railways for laying pipelines near Ajitsingh Nagar railway track, besides permission from Irrigation

department for digging ground at Eluru and Budameru canals.

The BGL officials claimed that pipelines were laid from Pamula Kaluva to Mogalrajpuram. The connections would

be available in Mutyalampadu, S.N.Puram, Bhavajipeta, Lakshminagar, Hanumanpeta, Devinagar, Ramakrishna

Nagar and other areas very shortly.

73% of rural Bihar use kerosene

for lighting

NEW DELHI: For all the subsidy flowing towards selling kerosene through the public distribution system, it now

emerges that the fuel is hardly being used in kitchens across India - in towns as well as villages - but remains a

key source for lighting lamps and lanterns in rural areas, which either lack power connections or don't get

adequate supply.

The latest survey released by the National Sample Survey Organization (NSSO) has revealed that in rural areas,

subsidized kerosene was used in less than 1% of kitchens, which relied largely on firewood and chips as the

primary source of energy for cooking during 2011-12. After firewood (67% share), cooking gas cylinders have

emerged as the second most preferred kitchen fuel in rural areas, with a share of 15%. In urban areas, of course,

they now fire over 68% of the stoves, while the share of kerosene is estimated at 5.7%, lower than firewood

(14%).

But when it comes to lighting homes in villages, the share of kerosene is estimated at 26.5%, with electricity's

share estimated at 72.7%. In urban India, 3.2% of households uses kerosene for lighting while the share of

electricity is 96%.

The data points to what several economists have argued for years: there is reduced dependence on kerosene

despite the government doling out subsidized fuel, which is suspected to be used in large quantities for

adulteration or finds its way into the open market, where there is no subsidy.

Currently, the government pays Rs 18.51 as subsidy for every litre of kerosene sold through the public

distribution system. The under-recovery on the sale of kitchen fuel by the oil marketing companies added up to

Rs 24,800 crore during the last financial year, with the government taking over around Rs 5,000 crore of the

burden and forcing the state-run companies to bear the additional burden.

The government has been talking of reforming the subsidy delivery mechanism for several years and is

contemplating extending the direct benefit transfer scheme to kerosene to check leakages.

But the findings of the NSSO survey showed wide divergence in fuel used across states with those such as Bihar

and Uttar Pradesh still relying on dung cake and firewood to a large extent. The use of firewood and chips for

cooking has declined but slowly over the years in rural India. It declined from 78.2% of all rural households in

1993-94 to 67.3% in 2011-12. LPG use in rural households has grown relatively fast, from fewer than 2% of rural

households two decades ago to 15% in 2011-12.

PetroMag Petroleum Bazaar.com 17

Cow-dung cake remained one of the major fuels for cooking for rural households in Uttar Pradesh (33.4%)

followed by Punjab (30.3%), Haryana (24%) and Bihar (20.8%).

Tamil Nadu had the highest use of LPG among rural households, with over a third using it for cooking, followed by

Kerala and Punjab. The use of LPG was least in Chhattisgarh (1.5%) followed by Jharkhand (2.9%) and Odisha

(3.9%).

When it comes to lighting, 73.5% of rural households in Bihar still use kerosene as primary source of energy for

lighting, followed by Uttar Pradesh (58.5%) and Assam (36.8%).

Bihar also tops the chart when it comes to use of kerosene for lighting in urban areas with 17.2% of households

still depending on kerosene. Followed by Bihar were Uttar Pradesh (10.8%), Assam (7.9%), Gujarat (5.2%) and

West Bengal (5%).

However, over the past decade, the proportion of households using kerosene to light their houses has halved in

rural India.

The use of electricity was the highest in rural Andhra Pradesh, Punjab, Tamil Nadu and Kerala, where nearly all

rural households used electricity to light their homes. In contrast, just 25.8% of rural Bihar and 40.4% of rural

Uttar Pradesh households had electricity.

Coimbatoreans get to breathe some clean air

If a recent survey is to go by, the quality of air in Coimbatore has improved in the last two years, despite the rapid

growth and development. The survey conducted by the Union ministry of environment, forest and climate that

includes the Tamil Nadu Pollution Control Board (TNPCB), says that particulate matter in the air has come down

in 2013 and 2014 when compared to 2012. CT talks to environmentalists in the city to find out what needs to be

done to breathe easier.

Mohammad Saleem of Environment Conservation Group says that its time this data is made accessible to the

public. "Air quality should be monitored 24/7 and both during day and night, using the latest equipment. Now

that we are all set to become a smart city, it's essential that quality of air and water improves and the public plays

an active role in it.

Right from students, environmentalists, homemakers, authorities to the general public, all of us should take up

the responsibility of the environment. With some effective authorities at the helm of affairs in the district, who are

passionate towards environment, and a little bit of help from the public, Coimbatore can go a long way in

becoming a model city."

Environmentalist K Mohanraj says that a clearer picture would be out if they monitor the number of people

suffering from air-borne diseases in the city. "Health and scientific data are vital to compare the levels of pollution

in different time periods. A case in point is the tremendous rise in people suffering from respiratory ailments

when the Mettupalayam Road was being widened.

There were many who suffered from eye problems as well. Though I have not gone through the data myself, I

believe one of the reasons could be the shifting of foundries to the outskirts of the city that were the major

polluters almost a decade ago."

According to Coimbatore Nature Society president PR Selvaraj, the public can go a long way in contributing to the

improvement in air quality. "All one has to do is plant some shrubs in their locality, if not a tree. If we leave a little

bit of space for the earth for greenery, and not a complete concrete jungle, it can improve the quality of air.

Herbal garden and solid waste management can contribute to the cause as well."

Mohanraj doles out a few suggestions. "People can try using the public transport as much as possible, or pedal

away or go on foot to places nearby. The number of vehicles on the road has increased drastically and it's time

their pollution emissions are monitored strictly.

Quality of the vehicles plays a crucial role in preventing drastic damage to the environment. Coimbatore can also

follow the Delhi model of CNG (compressed natural gas) -powered public transport." Mohammad Saleem says it's

time the public took onus of the environment. "They have to raise their voice when an issue comes up. Even if

they cannot plant trees, they should speak up when they see a tree being cut down or plastic being burnt."

Ved Prakash Mahawar takes over as Director (Onshore), ONGC

Mr. Ved Prakash Mahawar took over as Director (Onshore) of the public sector Oil and Natural Gas Corporation

(ONGC) here yesterday.

As Director (Onshore), a board level position, he will be directly looking after all the onshore operations spread

across the country which significantly contribute towards ONGC‘s overall physical performance.

A press release from the company said Mr. Mahawar has 33 years of vast experience of managing drilling and

operational functions, having held various key positions across the vast spectrum of oil field activities.

PetroMag Petroleum Bazaar.com 18

Prior to his joining the present assignment, he served as Officer on Special Duty (OSD) (Onshore) in Delhi for

some time before which he was heading Tripura Asset of ONGC as Executive Director -Asset Manager.

Mr. Mahawar also pioneered the critical Well Control expertise for ONGC. A veteran of numerous blow-out control

jobs with proven experience in handling complicated well control problems in onshore and offshore fields of

ONGC, OVL & other operators in India, he has been the major force and face of the Crisis Management Team

(CMT) making ONGC self-reliant in dealing with well control situations.

He was also instrumental in establishing the Well Control School at Institute of Drilling Technology (IDT),

Dehradun, which has been imparting training to ONGC employees and oil personnel from other Indian as well

foreign oil companies.

A mechanical engineering graduate from Pandit Ravi Shankar Shukla University, Raipur Mr. Mahawar started his

career with ONGC as Drilling Engineer in 1982 and is known as the first sub-sea engineer of ONGC.

Sudhir Sharma takes over as Director (Exploration), ONGC

Videsh

Mr. Sudhir Sharma has taken over as the Director (Exploration) in the Board of ONGC Videsh, a wholly own ed

subsidiary and the overseas arm of the public sector Oil & Natural Gas Corporation (ONGC).

A press release from ONGC said Mr Sharma had more than three decades of experience in various domestic and

overseas capacities.

He was most recently the Country Manager and Legal Representative for ONGC Videsh's Colombia operations for

over a year. Earlier, as Head of Business Development in ONGC Videsh, he managed the global business

development activity of the company with the objective to acquire oil and gas assets overseas. This was his

second stint with ONGC Videsh.

In 2003, consequent upon the acquisition of a stake in Sudan, Mr. Sharma led two Exploration Blocks,

comprising multi-disciplinary, multi-nationality teams, in the GNPOC contract acreage. During his tenure,

exploration for deeper objects and basement was initiated for the first time in Muglad Basin.

He started his career in 1980 when he joined ONGC‘s prestigious Institute of Petroleum Exploration in Dehradun

as a graduate trainee after obtaining a Master‘s degree in Geology from Lucknow University. He pursued higher

studies leading to M.Tech in Petroleum Exploration from Indian School of Mines, Dhanbad during 1983-1984.

Prabhat Kumar Singh has been

appointed the new Managing Director and CEO of Petronet LNG

Ltd.

An engineering graduate from the prestigious Indian Institute of Technology (IIT), Kanpur, Prabhat has more than

35 years of experience in Hydrocarbon Industry, both in MNC as well as premium Indian Public Sector

Undertakings.

He is a versatile professional having diverse exposure of Management, Execution of Projects (from concept to

commissioning), Exploration and Production, Business Planning & Marketing, Training, Organizational Reforms

etc. Prabhat is Director (Marketing) in GAIL, and also headed the Upstream Business Development and Strategy

Divisions in British Gas (India).

Prabhat remarkably contributed in the planning and execution of world's longest exclusive LPG pipeline from

Jamnagar to Loni. The project was recognized by the Asian Development Bank as the "Best Managed Project" of

the year.

He conceptualised and introduced the "Open Access Common Carrier Principle" first time in India, which made

paradigm shift in transforming the hydrocarbon industry in the country.

He also successfully led a human resource centred change management which put "people at the heart of

corporate purpose" to address the dynamic business environment. Prabhat spearheaded a lot of initiatives in

hydrocarbon value chain including term LNG deals and commission of Ratnagiri Gas and Power Private Limited

(RGPPL, Dabhol) LNG terminal in order to ensure energy security for India

He is active on other fronts including the member of the various sub-committees of the apex body of the country

committed for development of Oil and Gas sector in India including National Auto Fuel Policy. He is a renowned

figure as a key note speaker in various Oil and Gas Conferences in India and abroad and presented papers in

International/ National forums.

Cylinder thief held at Mumbai's

Charkop

MUMBAI: A man was arrested for stealing LPG cylinders from several housing societies in Kandivali West. Police

said the accused had been selling the cylinders in the black market for a higher price. Ten stolen cylinders were

recovered from him.

Ramesh Patel, the accused, resides in Charkop. He would steal gas cylinders when the occupants of the house

were away. "Patel would stroll in residential areas to look for easy targets. He would usually select such houses

where women had stepped out for a chat with their neighbours and left the door open in the afternoon," said an

official.

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Patel would enter the house, disconnect the gas connection, hoist the cylinder on his shoulders and flee.

In a recent case from Charkop, Patel was captured on camera while he was fleeing with a stolen gas cylinder. The

footage helped the cops to nab Patel. The police are now probing whether Patel worked alone or if he had any

accomplices.

Cops impound 150 Ola cabs after HC ban on diesel taxis

NEW DELHI: Traffic police impounded 150 cabs affiliated to Ola in a weekend crackdown following the high

court's ban on use of diesel vehicles by app-based taxi services. The cabs were caught after Ola drivers

responded to ride requests booked by traffic cops from various locations in the city.

Sharad Aggarwal, additional commissioner (traffic), said the vehicles were impounded on charges of flouting

permit conditions. A court challan was also issued to the drivers for disobeying norms mentioned in their permits.

None of the vehicle prosecuted since Saturday were found to be plying on CNG.

Officers say these cabs were registered as tourist vehicles with all-India permits. They did not have the permit for

rides within the city. Vehicles heading to Gurgaon or Noida could not be prosecuted on these grounds.

"We have complied with the order to ban on diesel cabs run by a particular company which has no authority to

run app-based cab services in Delhi," said Aggarwal.

Ola's competitor Uber was exempted from the crack down due to a high court stay order.

Officials estimate that more than 8,000 diesel vehicles were plying in the NCR through app-based taxi services.

For some time now, cops have been placing ride requests to book these cabs for various offences. Officials said

the cab drivers had become wise to the tactic and started avoiding areas from where cops were likely to call.

Most calls by the police are made from busy markets and south Delhi localities but the drivers had mostly started

operating in parts of northwest and outer Delhi.

Traffic policemen have also been asked to look out for vehicles having DLY numbers and check their

registrations. Passengers in a cab might also be asked how they had booked the taxi. Police officers said Ola has

been warned against plying these cabs and action against the company under Section 188 IPC (disobedience of

orders) would be initiated if the service is not stopped.

Police sources say that the seized cabs were being parked at temporary pits outside the usual traffic pits as all of

them are brimming with vehicles impounded in keeping with the NGT ban on heavy vehicles. The 50 traffic police

pits together have a capacity of around 9000 vehicles.

"We have asked the DDA to grant us space for new traffic pits, but the request is still being processed," said a

police officer.

NE Future, Oil & Natural Gas The recent observation of experts that Mizoram is sitting on oil and natural gas reserves has only affirmed the

belief that of the Northeast taken together is not only a region that has extracted monetary benefits from a

benevolent Centre but also an area that could spur the collective developmental engine of the sub -continent.

The future of Northeastern States like Mizoram and Nagaland look bright if the current process of both extraction

and exploration are executed in accordance with the developmental paradigms envisaged by the people of the

regions themselves adjusting to the national and international trends.

Realizing this potential, the Geology and Mineral Resources Department Director H Lallenmawia stated that

exploration activities by different national and international agencies are spread around 58.9 per cent of

Mizoram‘s total area.

Both ONGC and IOC together were already in the thick of extraction activity in around 5,340 square km ar ea. The

rest of the area has been shared between OIL, Suntera Resources Ltd, Shiv-Vani Oil Exploration, Naftogaz India

Private Ltd, Reliance Energy Ltd, Reliance Natural Resources Ltd and Geopetrol International Inc. (French).

According to Lallenmawia, under the New Exploration Licencing Policy, Mizoram would get 12.5 per cent of

wellhead price on crude oil and 10 per cent of wellhead price on natural gas as royalty.

The wellhead price is the wholesale price natural gas at their time of production, he informed.

The state will get 50 per cent share of the non-tax revenue against the production of oil and natural gas and the

non-tax revenue is the recurring income earned by the Government from sources other than taxes.

In Nagaland too oil exploration resumed after a gap of almost two decades in July 2014 in Wokha District. The

resumption was launched by Nagaland Chief Minister TR Zeliang.

The Metropolitan Oil and Gas Private Limited had been awarded the licence to explore 20 million tonnes of

hydrocarbon reserves in Wokha District, bordering Assam.

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However, it may be recalled ONGC had been asked to stop its operations in May 1994 after it began oil

production in 1981.

ONGC had begun oil explorations in the Wokha Lower Range Region in 1973.

ONGC had estimated that Changpang Village in Wokha District alone had 20 million tonnes of hydrocarbon

reserves.

Between 1973 and 1994, it is estimated that ONGC had extracted 1.5 million tonnes of oil during trial production

but only Rs.33 crore was paid to the Nagaland government.

With the Narendra Modi led Government at the Centre attempting to push forth its Act East Policy in the region, it

was time for the Government of India to rethink its strategy as partners in development with the region and n ot

just a benign big brother who loves to control all national assets.

Exxon and Chevron may soon see European sights

Exxon Mobil and Chevron may soon be seeing European sights. The two US oil giants, with a combined market

value of $500 billion, experienced even bigger drops in profit than were expected in the second quarter, pushing

dividend yields closer to those of rivals across the Atlantic. Shell and BP have been more aggressive on cutting

capital expenditures and jobs. If prices tumble further, Exxon and others could follow.

Before the precipitous profit declines of about 50 per cent and 90 per cent reported on Friday, respectively,

Exxon and Chevron had dividend yields of 3.5 per cent and 5.6 per cent. By contrast, Shell and BP's London-listed

shares both yield well over six per cent.

Of the four companies, only BP came close to offsetting the quarter's shareholder payouts and spending on big

projects with cash from operations. With Shell pursuing a $70 billion deal for natural gas producer BG Group, and

smaller UK rival, BP, only just working out the final toll from its 2010 Gulf of Mexico oil spill, investors arguably

have good reason to feel more confident that their US counterparts will be better situated to find ways to keep

dividends flowing.

And yet the European companies also have done more to prepare for a potentially extended slump in the price of

oil. Shell is slashing 6,500 jobs and axing $3.5 billion more from an already-shrunken 2015 capital spending

budget. Overall spending will be 20 per cent lower than last year. Exxon and Chevron plan to invest only about 13

per cent less, similar to what BP was planning - before announcing another small cut to its capex guidance this

week.

The drop in both Exxon's and Chevron's share prices on Friday, and the subsequent rises in their dividend yields,

suggests a more European approach would be welcome. The price of Brent crude has fallen another 18 per cent

since July 1. More cost savings may well be necessary. Diversified operations and strong balance sheets provide

many levers for Exxon and its US peers to preserve their coveted dividends. It may be time to start pulling them.

Algeria boosts oil output by

32,000 bpd with two new fields

OPEC member Algeria has increased crude oil output by 32,000 barrels per day after starting production at two

fields, an energy ministry official said on Sunday.

Production increased on Saturday when the Bir Sebaa field started producing 20,000 bpd in addition to 12,000

bpd from the Bir Msana field in Hassi Messaoud area, the official told Reuters.

Algeria produced an average 1.1 million bpd in July, according to a Reuters survey.

It has struggled to draw foreign oil investment to increase output that has stagnated over the past years,

awarding only 4 out of 31 blocks on offer in a bidding round in September 2014.

State energy firm Sonatrach has said it would stick to a plan to invest $90 billion over the next five years despite

a crude oil price slump on global markets.

Algeria relies on energy for 60 percent of its budget, and oil and gas exports account for 95 percent of total sales

abroad.

Sonatrach holds 25 percent stake, Thailand's PTTEP 35 percent and Petrovietnam 40 percent in the Bir Sebaa

field, where reserves are estimated at 758 million barrels.

Sonatrach owns 25 percent stake, Malaysia's Petronas holds 35 percent and Spain's Cepsa 40 percent in the Bir

Msana field, whose reserves are at 144 million barrels.

Adriatic oil, gas exploration raises

concerns for Croatia tourism

NJIVICE, Croatia -- As Croatia gears up for exploration of oil and gas in the Adriatic sea, green groups have raised

concerns about the environment and economy of the tourism-dependant country's islands and pristine coastline.

The government in September is set to sign contracts with two energy groups which have been granted the right

to explore and drill for oil and gas in the Adriatic for a period of up to 30 years.

"It is a very important project for Croatia," Barbara Doric, head of the hydrocarbon agency told AFP.

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By exploiting additional resources "which we assume we have in the Adriatic, it will enable the country to become

energy independent and, when it comes to gas, even to become an exporter," she said.

Two licenses have been awarded to the INA oil group — jointly owned by the Croatian state and Hungary's MOL —

and one to Italy's ENI and MEDOILGAS.

The government is aiming for the project to give a much-needed boost to Croatia's economy, which has been

mired in recession since 2008.

Officials estimate that direct benefits for the state budget could eventually reach around one billion euros net

profit (US$1.1 billion) annually. Indirect positive effects, such as development of supporting industries or creating

new jobs in a country where unemployment stands at 20 percent, should also result from the exploration.

"The domino effect could be really strong," Doric said.

"Calculations of potential impact on the country's gross domestic product (GDP) show it could be 3 to 4 percent,

which is a lot."

But ever since the project was launched it has sparked strong criticism from local and international groups

concerned about the environment as well as the economy. Many Croatians fear it could seriously harm the

Balkan country's valuable tourism industry.

Tourism, which has gradually recovered since the former Yugoslav republic's 1990s independence war, accounts

for around 20 percent of Croatia's GDP. Those who oppose the drilling claim the risks far outweigh the possible

benefits.

'Russian roulette'

"It's impossible to implement this project without very serious damage to both the environment and the local

economy (which is) based on tourism and the fishing industry," Vjeran Pirsic, head of the environmental group

Eko Kvarner, told AFP.

Rosneft‘s $1 Billion Siberia Partner Backed by Chinese

Investors

Skyland Petroleum Group is registered in the Cayman Islands, has a staff of about 30 and an operating history of

nine months. It also has a Siberian deal with international oil giants OAO Rosneft and BP Plc that could be worth

as much as $1.1 billion.

Skyland‘s backers are private investors from China and elsewhere in east Asia, founder and president, Briton

David Robson, said in an interview last week. He declined to name them.

Rosneft hailed Skyland‘s ―extensive experience‖ when it announced the deal in June. BP, which will have a 20

percent stake in the project, said the choice of additional partners was up to Rosneft, according to spokesman

Vladimir Buyanov.

The three partners will develop the Taas-Yuryakh project, an oil-and-gas-condensate field in Yakutia, one of the

biggest oil fields in eastern Siberia that‘s still largely untapped. Total production could reach more than 5 million

tons of oil per year or 100,000 barrels per day after 2017, according to Rosneft.

Skyland may take a stake of as much as 29 percent in Taas-Yuryakh, with a possible value of $1.1 billion,

Robson said. Skyland could limit its investment to 10 percent, which Robson valued at $375 million.

Chinese Investment

Chinese investors have long sought equity stakes in Russia‘s oil fields, but the Russian government has for years

been cautious about giving up control. Recently, pressured by international sanctions and plunging oil prices,

Russian officials have signaled more openness to its Asian neighbor. With the risks of working in Russia high,

Chinese companies are showing caution.

Rosneft first offered a 49 percent stake in the Taas-Yuryakh project to China National Petroleum Corp. back in

2013, but the deal didn‘t happen.

Last year, Rosneft pitched CNPC on a 10 percent stake in another field, Vankor, but no agreement has been

reached.

Robson, 57, said his investors aren‘t state companies and declined to provide more details. Before Skyland, he

served as head of several energy companies listed in London and operating in the former Soviet Union, including

Tethys Petroleum Ltd.

―I have worked with Rosneft since the early 1990s, I have worked in China since 1998,‖ Robson said in a phone

interview from Guernsey. ―Discussions with Rosneft and my friends in Russia and of course my contacts in China

-- the two things began to blend together.‖

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Conservative, Aggressive

Robson said that while Chinese state companies have become ―more conservative‖ in the last year , private

investors can be ―much more aggressive and prepared to take steps in places like Russia.‖

Skyland plans to complete the Taas deal by year-end, Robson said.

Taas-Yuryakh operates the Srednebotuobinskoye oil and gas condensate field in Yakutia and holds 133 million

tons of liquid hydrocarbons and 137 billion cubic meters of gas reserves.

Brazil: ANP launches 13th bidding round for oil and natural gas

blocks

The Brazilian Agency for Petroleum, Natural Gas and Biofuels (ANP) has launched a public consultation on drafts

of the tender protocol and the concession agreement for the 13th bidding round for the exploration and

production of oil and natural gas blocks in Brazil. A public hearing was held on July 9 2015. Final versions of the

bidding round documents are expected to be issued by August 6 2015.

13th bidding round

Oil and gas players have welcomed this new bidding round in the aftermath of concerns regarding the credibility

of state-owned company Petrobras. The round will offer 266 onshore and offshore blocks, which will be

distributed in 10 sedimentary basins (ie, Amazonas, Parnaiba, Potiguar, Reconcavo, Sergipe -Alagoas, Jacuipe,

Camamu-Almada, Espirito Santo, Campos and Pelotas). It will offer a mix of high potential areas, new exploitation

frontiers and mature basins, creating opportunities for small, medium and large companies.

The 13th bidding round will be held under the concession model. Until the enactment of the pre-salt bills in

2010, this was the only regime available under Brazilian law. Under this regime, the winning bidder for an

exploration and production block has the right to explore and produce in the block, and becomes the owner of

any extracted oil or gas, subject to royalties.

The significant opportunities available in the pre-salt area led to the enactment of a new regime, which is applied

solely in this area. Instead of concessions, the pre-salt area must be explored using production sharing contracts

(PSCs), under which oil companies and the federal government split the resulting production according to

contracted terms.

Oil companies may have an increased interest in this latest round, given that no PSC bids are expected. Congress

is reviewing an important debate concerning the PSC regime (Bill 131/2015, proposed by Senator Jose Serra),

which may change Petrobras's role as the sole operator in the pre-salt area.

However, unless this amendment to the legislation is passed, Petrobras will continue to be responsible for at

least 30% of the investments in any pre-salt block. Considering Petrobras's financial situation, it is unlikely that

new PSC rounds will take place before the company invests the substantial amounts required for this area.

Therefore, the only ways to acquire new exploration and production blocks in Brazil are through:

the assignments of rights, via farm-in/farm-out agreements; or

the acquisition of rights in concession bidding rounds.

During the consultation period for the 13th bidding round, the local content requirements were criticised by

representatives of oil and gas companies. The requirements oblige concessionaires to contract services and

equipment from Brazilian providers, subject to heavy penalties for non-compliance. Under the preliminary bid

protocol, minimum local content requirements range from 37% (exploration phase) to 55% (production

development phase) for offshore blocks, and from 70% (exploration phase) to 77% (development phase) for

onshore blocks.

According to feedback received by ANP, the oil and gas market is subject to fluctuations that make committing to

a long-term local content level an inefficient and costly requirement. The players involved have also challenged

the convenience of having minimum local content levels for practically the entire supply chain, instead of

focusing on items in which Brazil is more competitive. Finally, oil and gas companies have observed that the local

content requirement during the development phase is unreasonable, as production development may not occur if

the exploration phase demonstrates that commercial production is unfeasible.

ENOC secures support for Dragon

Oil takeover with improved offer

Dragon Oil plc, collectively with its subsidiaries, is engaged in upstream gas and oil exploration, development and

manufacturing actions primarily in Turkmenistan.

Dubai-based ENOC, which owns 54 percent of Dragon Oil, needed acceptance from another 23 percent of the

company‘s shareholders for the takeover to go through. The three largest minority shareholders – Baillie Gifford,

an Edinburgh investment firm, Setanta Asset Management of Dublin, and Elliott Advisers, a UK arm of New York

billionaire hedge fund manager Paul Singer – hold a total block of just over 16 per cent.

Enoc has set August 28th as the closing date for acceptance of the offer by holdout investors.

Enoc said on Friday that there was an additional 2.5 per cent of shareholders who accepted the offer but were

not officially counted because paperwork was faulty.

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Revenues at Dragon Oil rose to $1.1 billion last year, despite lower prices.

Earlier this month ENOC called for Dragon to scrap dividend payments to shareholders, saying that it wants to

sustain Dragon‘s current levels of oil production. It had originally offer 735p a share in May. Enoc said in a

statement that they have now ―gained acceptances from 29.92 per cent of Dragon Oil shareholders‖ and intend

to delist Dragon Oil from the London Stock Exchange and Irish Stock Exchange shortly. The company had said it

was targeting annual production growth of about 10 per cent or more this year at 100,000 barrels of oil per day.

ENOC declined to comment on the extension when contacted by the Irish Independent.

ENOC first approached Dragon about a possible acquisition of the stake it didn‘t already own in March, when it

put forward a possible offer of 650 pence a share before making a revised possible offer of 735 pence per share

in May.

Survey finds oil, gas in Maldives Fisheries Minister shares information of the survey conducted to find gas, oil in Maldives with the media on

Saturday. PHOTO/ NISHAN ALI

A survey has shown evidence of oil or natural gas in the Maldives, Fisheries Minister Dr Mohamed Shainee said

Saturday.

Speaking to reporters after returning from Germany to collect the survey report conducted by a group from the

German University of Chamber Scientists, the Minister said although the survey proves the presence of liquid gas

it does not detail specifics.

The report did not investigate the amount of natural gas or whether it would yield economic benefit to the

Maldives, he added.

However, the Minister said the survey has highlighted several potential areas of oil or natural gas deposits.

An oil exploration vessel would arrive in the country which would shed more light into the new findings, Shainee

noted.

He said the survey did not investigate extraction options.

With the new discovery, the government would now expand the survey throughout the Maldives, he added.

According to the Minister, two companies from UK and Norway respectively have already expressed interest to

undertake the survey.

―Such large corporations would not be interested if there wasn‘t any cause for optimism,‖ he said.

―A team would come to Maldives very soon to submit their proposals. Once they share their respective proposals

with the Economic Council, we will decide with whom we would move forward with,‖ Minister added.

He also said the project will be awarded to one of the two companies very soon.

Minister Shainee said the German University had conducted the survey without any charge after mutually

agreeing with the government to keep the findings under wraps.

In addition, he accused some parties of using foreign environmental groups to stymie the survey.

―But I don‘t want to point fingers at anyone specific,‖ he stressed.

The Minister was also quick to warn that despite the findings, extracting the oil would be a difficult and an

expensive task.

During the survey, the scientists have also made some other discoveries which would be shared with the media

in due course, he told Haveeru.

Sudan to Export 150 Thousand of

Guar to United States of America

Khartoum - The Head of the Council of Guar commodity Badr Al Din Abu Zeid has told Sudan Vision yesterday that

Sudan has been nominated to close the world gap of guar commodity estimated at 200 thousand tons.

He said the United States needs 150 thousand tons of manufactured guar powder after it has excluded during

past few days the commodities of guar and sesame from the sanctions it imposed on Sudan.

Abu Zeid added that the council has exerted efforts and intensive meetings with the American Embassy to

Khartoum in the presence of the members of Guar Council for opening new markets for guar and for directly

exporting it to the United States of America,

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He affirmed that an agreement was concluded for overcoming the sanctions emanating from trade embargo last

June, noting that the American Embassy has expressed true desire for cooperating with productive companies

and extended an invitation to the guar council to visit America to get acquainted with the American experience in

guar cultivation and the machines used in harvesting and cultivation.

It is worth noting that the demand for Guar gum has risen considerably due to the strong demand from the oil

exploration industry.

Gum is used as an adhesive during oil exploration. It is also used by the food and textile industry.

Pakistan, Sudan and India are the only countries that produce Guar gum. Guar seed is the basic raw material that

is required for producing it.

The guar plant has been the source of the guar gum additive the food industry uses to thicken foods or keep

various ingredients smoothly mixed together. It‘s in everything from frozen pizza to ice cream, egg white

substitutes and baked goods.

A few years ago, the price peaked at about 35 times what the cost of the plant product was just a few years

earlier.

Shayne Heffernan Oil Price Report OPEC oil output reached the highest monthly level in recent history in July a Reuters survey found on Friday as

Saudi Arabia and other key members show no sign of wavering in their focus on defending market share instead

of prices.

The latest boost from the Organization of the Petroleum Exporting Countries adds to excess supply in the market

without the significant rise in demand OPEC hopes will happen in the second half of the year and in 2016.

Saudi Arabia has kept output steady or higher than in June which was a record sources in the survey said as

Riyadh meets higher demand internationally and from domestic power plants and refineries.

Riyadh reported crude oil production of 10.6 million barrels a day in June in the monthly oil market report

published by OPEC. This is an increase of more than 200000 bpd on the previous month and its highest level

since records began.

If Saudi Arabia keeps increasing production at this rate it could by the end of the summer be the first country to

pump 11 million bpd of crude since the former Soviet Union.

‗Oil exports seem to be constant and what is now impacting income for Saudi Arab ia is the decline in oil prices.

Brent is close to 50 a barrel now and seem to be hitting a plateau barring any material supply event‘ commented

John Sfakianakis Middle East director at Ashmore Group.

‗Regardless of where total oil production is what would impact more fundamentally revenues would be total oil

exports‘ he added.

Basil Al-Ghalayini CEO of BMG Financial Group said: ‗Fluctuations of oil prices including the recent decline have

not really affected the Saudi government‘s commitment to mega infrastructure projects which are the driving

force of the local economy.‘

He added: ‗The Saudi private sector relies to a large extent on government spending. Having said that the Saudi

stock market has been positively correlated to the these fluctuations.‘

Al-Ghalayini said: ‗On the global level we are yet to see the outcome of certain decisions by Iran Russia and China

which may have a big impact on the pushing the prices even lower during the course of next year.‘

OPEC has upped production by more than 1.7 million bpd since it decided in November 2014 to defend market

share against rising output from rival producers. Oil prices have dropped more than 15 percent in July and halved

in the past year.

OPEC supply has risen in July to 32.01 million barrels per day (bpd) from a revised 31.87 million bpd in June

according to the survey based on shipping data and information from sources at oil companies OPEC and

consultants.

Some analysts say there are signs OPEC‘s efforts to discourage growth in more expensive-to-develop rival supply

sources are bearing fruit.

‗We believe that oil prices should stabilize in the near future because we are confident that OPEC‘s strategy will

pay off in the sense that non-OPEC production will slow‘ said Eugen Weinberg of Commerzbank.

OPEC shows no sign of changing course despite the price drop. Secretary-General Abdullah Al-Badri on a visit to

Moscow dampened the prospect of output cuts.

If the total remains unrevised July‘s supply would be OPEC‘s highest since 2008 when oil prices hit a record 147

a barrel before collapsing and production was above 32 million bpd until Indonesia left the group at the end of

the year.

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July‘s output from OPEC‘s current 12 members is their highest since Reuters survey records began in 1997.

The biggest increase in July has come from Iraq one of the main drivers of the rise in OPEC output this year.

The only significant decline in output occurred in Libya where supply remained disrupted by unrest and

negotiations to reopen closed oil facilities had yet to succeed.

Demand for OPEC oil is expected to rise in the second half of the year as global consumption reaches its annual

peak.

In 2016 OPEC forecasts demand for its oil will be nearly 1 million bpd higher than in 2015 due to an increase in

world demand growth and a slowdown in supply growth from countries outside the group.

While Commerzbank said it was hopeful OPEC would agree to tighten supplies at its next gathering in December

some OPEC delegates are bracing for a difficult meeting as they see little appetite for cutbacks.

‗I believe the Saudis and Gulf states will stick to their strategy of market share‘ said a delegate from outside the

Gulf. ‗The next OPEC meeting will be hard and crucial for the organization.‘

Oil prices hit fresh multi-month low points last week, with no sign of an end to a global supply glut.

Metals, including gold and copper, stabilised after a recent rout fuelled by cracks in the Chinese economy.

OIL: Brent crude hit 52.28 a barrel on Tuesday, the lowest level since February 2.

The same day, New York‘s main contract dropped to 46.68 a barrel, the lowest point since March 24.

After briefly recovering, both contracts tumbled on Thursday after Abdullah El-Badri, secretary-general of the

Organisation of Petroleum Exporting Countries, said the group would not cut output in response to lower prices.

Speaking in Moscow after meeting Russia‘s energy minister, he said the cartel is ―not ready‖ to cut production,

which is currently at around 30mn bpd.

Analysts said the statement shows Opec is determined to defend its market share as it fends off competition

from US shale oil.

―Opec is telling the market that cuts will not come from them,‖ said Daniel Ang, an investment analyst with Phillip

Futures in Singapore.

Opec is ―emphasising that it is fighting for market share‖, he added.

At its most recent meeting in Vienna in June, Opec kept its output levels despite the supply glut that has

depressed oil prices.

Crude futures are under pressure also owing to the strength of the US currency, which makes dollar-priced oil

more expensive to holders of weaker units, dampening demand.

The dollar has picked up steam on expectations the Federal Reserve will raise US interest rates later this year.

The chances of a September lift were raised Thursday after data showed the US economy expanded 2.3% in the

April-June period, the strongest pace since the third quarter of 2014.

―The second-quarter GDP data support the Fed‘s more upbeat tone on economic conditions and suggests that

the economy could cope with higher interest rates,‖ research firm Capital Economics said.

By Friday on London‘s Intercontinental Exchange, Brent North Sea crude for delivery in September slid to 52.69 a

barrel from 54.42 a week earlier.

Russia, Algeria agree to boost cooperation in oil, gas sectors

Russia and Algeria agreed to expand cooperation in the energy sector.

The move comes as contacts between Russia and other major oil and gas producers have intensified recently

against the backdrop of falling oil prices and general volatility in the market.

At present, there is a limited number of joint oil and gas projects between companies from the two countries, and

the two have agreed to intensify efforts to expand this cooperation, Russian energy minister Alexander Novak

said after a meeting of the Russia-Algeria intergovernmental commission in Moscow.

Russian companies, including oil and gas producers Gazprom Neft, Lukoil, Russneft, and Bashneft, are interested

in entering the Algerian market, he said, adding that Russia and Algeria ―have great potential to expand

collaboration in various sectors of the economy, including oil and gas, agriculture and transportation.‖

PetroMag Petroleum Bazaar.com 26

Both Algeria and Russia are key suppliers of gas to Europe and members of the Gas Exporting Countries Forum, a

group of key gas producers, including Qatar and Iran, which collectively hold more than 70% of the world‘s gas

reserves.

Algeria is also an OPEC member and aiming to boost its oil and gas production.

―That‘s why cooperation between Russian companies and Algeria‘s Sonatrach has been developing historically,‖

Novak said, noting that Gazprom and Sonatrach reported an oil and gas discovery at the El Assel block in Algeria

in late 2014.

Russian Rosneft and Stroitransgaz are also continuing to work with Sonatrach on developing oil and gas reserves

within the Block 245 South, which includes two oil and one gas field, Novak said.

NO TALKS ON COORDINATED ACTION UPSTREAM

Novak said the parties did not touch on the issue of potential coordination on oil or gas markets to support prices

during the meeting of the intergovernmental commission, which is co-chaired by Algerian Finance Minister

Abderrahmane Benkhalfa.

Russia and Algeria intensified contacts at the end of last year, when oil prices were falling, with former Algeria‘s

oil minister Youcef Yousfi repeatedly calling for OPEC and non-OPEC countries to meet in a bid to agree

coordinated action to boost oil prices.

Most recently, Algeria‘s new oil minister Salah Khebri earlier this month said his country would be prepared to

make such a call if necessary given the sustained low oil prices.

OPEC General Secretary Abdalla el-Badri, though, said Thursday no OPEC member had asked for an extraordinary

ministerial meeting.

Asian crude buyers size up Iran

barrels

Asian oil buyers, already sucking in barrels from as far away as Alaska and Mexico, are anticipating more

bargains when Iran finally returns to world markets.

In a region that‘ll account for more than half the growth in global oil demand this year, refiners are poised to be

the winners as Iran raises overseas sales when Western sanctions are lifted. Iran‘s oil minister has said he will

woo Asian customers and seize market share.

Processors including Hindustan Petroleum Corp in India and Taiwan‘s Formosa Petrochemical Corp have

signalled they may buy more from Iran. Cheap oil has been a boon for many Asian nations, helping to cut budget

deficits by reducing fuel subsidies and boosting emergency crude stockpiles.

Iran‘s deal ―could trigger another price war with Saudi Arabia, Iraq and the UAE,‖ said Gordon Kwan, the Hong

Kong-based head of regional oil and gas research at Nomura Holdings. ―This is positive for Asian buyers like

China, now blessed with more pricing negotiation leverage.‖

Brent crude has fallen more than 50% since June 2014 as a global glut of oil triggered international competition,

led by Opec‘s increase in production to the highest level in almost three years.

Six world powers and Iran reached an agreement in July that‘ll be implemented if Tehran meets obligations to

curb its nuclear programme. Once inspectors verify compliance, it will be allowed to ramp up energy exports with

the gradual lifting of sanctions.

Formosa Petrochemical wants to restore supply from Iran to the full volume under its contract and will hold talks

―soon‖ with the Gulf country, spokesman Lin Keh-Yen said from Taipei on July 15, without giving details. JX

Nippon Oil & Energy Corp, Japan‘s biggest refiner, sees the lifting of sanctions leading to stable supply and a

wider choice of crude, the company said in a statement.

―Iran coming into the market will mean a further slide in oil prices and countries like India will be a major

beneficiary,‖ Indian Oil Minister Dharmendra Pradhan said July 15.

Iran was the second-biggest producer in the Organisation of Petroleum Exporting Countries before its disputed

nuclear programme prompted the European Union to ban purchases of its crude in July 2012. Countries

including China, India and Japan had to get a waiver from the US to buy limited amounts of Iranian oil or risk

losing access to parts of the global financial system.

Iran is now the fourth-largest Opec member, with output in June averaging 2.85mn bpd, from 3.6mn at the end of

2011.

The measures forced buyers such as South Korea to reduce Iran oil imports from 2011 levels by almost half. To

help replace supplies, the North Asian country bought oil from Mexico for the first time in two decades and

purchased a cargo of Alaskan crude.

―We will aggressively assess economic aspects to decide how much to import from Iran in the future,‖ Chang Woo

Seock, head of the corporate planning office at SK Energy Co, a unit of SK Innovation Co, South Korea‘s biggest

refiner, said on July 23.

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While Iran has signalled it wants to boost shipments by as much as 500,000 bpd immediately after sanctions are

removed, Goldman Sachs Group predicts it will be limited initially to drawing down oil in floating storage. Iran may

be holding 53.7mn barrels of oil in ships at sea, according to Windward, a Tel Aviv-based vessel-tracker.

The nation‘s main market is Asia, which will be its priority, Iran Oil Minister Bijan Namdar Zanganeh said in May.

Oil demand in the region will increase by 770,000 bpd in 2015 from a year earlier, accounting for more than half

of the growth in global consumption, according to the Paris-based International Energy Agency.

―The Iran deal is good for the government, refiners and other customers as this will lead to competition among

producers,‖ B Ashok, chairman of Indian Oil Corp, the country‘s biggest refiner, said on July 15.

Countries may take advantage of lower prices brought on by an influx of Iranian crude to boost strategic reserves,

Victor Shum, vice president at IHS Inc, an Englewood, Colorado-based industry consultant, said by phone from

Singapore.

―Big consumers like China and India in particular are likely to benefit,‖ Shum said. ―Competition will intensify.‖

China moves to make the grade as

a setter of oil price

Talking about a 19th-century political dispute, the British prime minister Lord Palmerston said: ―Only three people

have ever understood the business – one is dead, one has gone mad and I have forgotten.‖

His words seem equally fitting to describe the arcane technicalities of pricing crude oil. Yet the way oil is priced is

set for a major shake-up – and the Arabian Gulf‘s leading oil exporters will be affected. It is in their grasp to

shape this change, or to be passive bystanders.

The change in crude pricing is led, as in so many other energy affairs these days, by Asia‘s rising demand – and,

in particular, the growing heft of China. In October 2014 and again in April this year, Chinese traders were

extremely active in buying up grades of Middle East crude that are used to set prices. They might have had valid

needs for the oil, but it is at least as likely that they wanted to support ―paper‖ – purely financial – trading

positions.

International crude has long been priced by reference to three grades: West Texas Intermediate (WTI) from the

US, Brent from the UK‘s North Sea and Dubai. WTI and Brent are traded on regulated futures exchanges, making

the market transparent and highly liquid.

It has become increasingly clear, though, that these benchmarks have problems. Due to the expansion of US

shale oil production, and that country‘s ban on exports, WTI has become a landlocked crude whose value is at

times well below that of comparable international crudes.

Production from Brent is declining, and more fields have to be added to the basket of valid supply sources, but it

is still vulnerable to ―squeezes‖ by traders who can buy up cargoes to corner the market, and to random factors

such as bad weather, technical glitches, strikes and even anomalies of South Korean taxation.

Most importantly, both Brent and WTI are light, sweet (low sulphur) crudes, very different from the heavier, sour

(high sulphur) crudes produced in the Middle East that are now the dominant diet for Asian refineries.

The Dubai Mercantile Exchange (DME) has consequently positioned its Dubai-Oman crude contract as a possible

Middle East-Asian counterpart to Brent and WTI. But it has still not attracted the same levels of interest and

liquidity as its older rivals. Apart from Dubai and Oman, Middle East producers still price most of their crude using

opaque assessments of the market by specialist reporting agencies.

So now China has stepped forward. The Shanghai International Energy Exchange is launching its own crude oil

contract – where the buyers, not the sellers, would be the key players.

Shanghai‘s contract has major problems – in particular, neither Kuwait nor Saudi Arabia have opted to support it,

and it is denominated not in dollars like the Brent, WTI and DME contracts, but in yuan (which is non-convertible,

and exposes traders to currency risk). Most of all, it will be dominated, at least at first, by the big Chinese traders,

notably Unipec (Sinopec‘s trading arm) and Chinaoil (the subsidiary of China National Petroleum Corporation).

Although the market is slowly opening up, few other companies have the right to import crude oil into Chin a.

Still, China is too big to ignore. And as a major buyer, its interest would naturally be in the direction of lower

prices. As recent stock market intervention suggests, it is hardly inconceivable that the Chinese government

would take an interest in a contract for such a strategic commodity.

The DME and Shanghai contracts are not incompatible – indeed, the two exchanges have signed an agreement

to cooperate. But if Middle East countries, presumably with Opec as the key venue, do not decide a common

front on pricing their oil, they risk being picked off individually, and drawn inescapably into using the Chinese

exchange. On this esoteric formula rides billions of dollars.

Iran warns Opec it plans to

recapture market share

Iran‘s oil minister warned fellow Opec members that it aims to recapture market share and plans to step up oil

output by 1 million barrels per day ―within months‖ of sanctions being lifted, Iran state news organisations

reported yesterday.

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The Iranian oil minister Bijan Zanganeh was repeating the bullish output assessment he has been making for

months. In June, for example, he said that Iran could increase production by 1 million bpd within seven months of

sanctions being lifted, bringing it back to its 2011 pre-sanctions level of 3.7 million bpd.

But the comments seemed to be aimed mainly at fellow members of Opec – especially its de facto leader, Saudi

Arabia – warning that in the current weak oil price environment the organisation will have to make room for Iran‘s

increased output.

The state news agency Irna reported Mr Zanganeh‘s output forecast, and that ―the minister added that Tehran

has informed Opec about its determination to regain its lost market share‖.

The showdown between Iran and Saudi Arabia within Opec may not be inevitable, however, as many analysts say

the minister‘s output forecast is too optimistic.

Wood Mackenzie, for example, expects that Iran could be pumping an additional 400,000 bpd by this time next

year, with another 200,000 bpd coming on in 2017.

Iran sees oil output up 1 mln bpd

after curbs end

Iran expects to raise oil output by 500,000 barrels per day (bpd) as soon as sanctions are lifted and by a million

bpd within months, Oil Minister Bijan Zanganeh said in remarks broadcast on Sunday.

"We are already doing marketing, and within a day after the lifting of sanctions we will raise (production) by

500,000 barrels per day," Zanganeh said.

He said Iran's crude production had fallen about one million bpd from about four million bpd under the sanctions,

state television reported.

"Within the next few months, we will return to the level of 3.8-3.9 million barrels," Zanganeh added.

"I have written a letter to OPEC saying that the sanctions are being lifted and that we are returning (to previous

production levels)," Zanganeh said.

"We are not asking anybody's permission to get our rights back."

According to a Reuters suvey of OPEC production, Iran produced 2.85 million bpd in July. The Reuters survey aims

to assess crude supply to market, defined to exclude movements to, but not sales from, storage.

A Reuters analyst said in July that Iran could increase its oil production by up to 1 million bpd within 12 months of

sanctions being lifted, provided it can find buyers for the crude.

Iran and six world powers reached a nuclear deal in July, capping more than a decade of negotiations.

Under the deal, sanctions imposed by the United States, European Union and United Nations would be lifted in

return for Iran agreeing long-term curbs on a nuclear programme that the West has suspected was aimed at

creating a nuclear bomb.

International sanctions imposed to force Iran to curb its nuclear program have halved its oil exports to just over 1

million bpd since 2012, and hammered its economy.

Russian oil production dips in July Russian oil output fell to 10.65 million barrels per day (bpd) in July, down from 10.71 million bpd in June, falling

from post-Soviet highs maintained since March, Energy Ministry data showed on Sunday.

The fall was mostly due to lower condensate production at Gazprom, included in the oil figures, the data showed.

In July, Gazprom stopped units at its Surgut Gas Condensate Stabilization Plant for maintenance, according to

the Energy Ministry.

Russian production remained above that of Saudi Arabia, the world's top oil exporter and leading OPEC member,

which pumped at an average 10.6 million bpd, according to a Reuters survey.

Russia and OPEC have refrained from coming together to prop up crude prices, which have halved since last year

to around $52 per barrel. This week, OPEC indicated it would stick to its

policy of defending market share.

Russia has managed to keep oil output near its highs, despite low oil prices and western sanctions, thanks to the

weak rouble.

The Energy Ministry sees 2015 average oil production at 525 million to 527 mill ion tonnes (10.5 million to 10.54

million bpd).

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In tonnes, oil output reached 45.033 million in July versus 43.824 million in June. Gazprom Neft, Gazprom's oil

arm, and Bashneft, now controlled by the state, slightly increased production, the data showed.

Russian gas production was at 44.77 billion cubic metres (bcm) last month, or 1.44 bcm a day, versus 42.58

bcm in June.

Will China join the IEA? Lately, there has been renewed interest in energy governance, as large emerging economies seek to grow their

influence in international organisations in order to better reflect their economic weight.

International governance of energy has changed little since the oil crises of the 1970s. As the oil producers

banded together to form OPEC, the International Energy Agency (IEA) was formed as the collective response of

energy consuming countries that were starved of oil. The IEA remains the most influential multilateral energy

organisation and provides a significant body of technical expertise.

There is pressure for the IEA to reform its membership to include the world's largest energy consumers – neither

China nor India are members despite their significant energy needs. The G20 established principles on energy

cooperation in 2014 where leaders agreed to work together to make international energy institutions more

representative and inclusive of developing economies. The appointment of a new executive director of the IEA is

an opportunity to make this pledge and relations with emerging economies a top priority.

Broadening IEA membership is no easy task and would depend on treaty reform and decoupling OECD

membership from IEA membership. The advanced economies of the IEA want emerging economies in the

organisation to improve capacity to respond to energy crises and increase data sharing.

However, it is not clear if China and other emerging economies are ready to join the IEA. The Chinese Government

has not made IEA membership a top priority, although it has strong ties with the organisation. Ther e are some

who believe the future of energy governance is in Asian-focused organisations rather than the IEA, with its fixed

principles and institutional history. The IEA risks going through a series of complicated reforms only for

disgruntled members to be told that big players like China and India are not yet interested in membership.

A challenge for any new IEA members is the requirement to hold 90 days of oil stocks (a rule that Australia has

flouted). Also, the IEA's emphasis on coordinated emergency response encroaches on sovereignty over energy

resources, a sticking point for China.

What could the IEA do to convince China to join its ranks?

A regional IEA headquarters in Beijing is an idea that has been floated. Also, engagement with high -level Chinese

officials will be necessary to create supporters of the IEA within the Chinese Government. This will require

additional effort and resources from the IEA. China sees itself as having a special place in the world, and has no

qualms about asking for special conditions.

China's embrace of multilateralism is still at an early stage and its commitment to global public goods is

provisional. For example, in climate financing, China sees itself as a developing country that needs to be helped

by advanced economies. For many emerging economies, energy access will continue to trump climate change

action.

Energy remains a sensitive area of national interest and will test China's commitment to multilateralism.

Shell‘s Japan Deal Signals Further

Refiner Consolidation

Idemitsu Kosan Co.‘s agreement to purchase most of Royal Dutch Shell Plc‘s stake in Showa Shell Sekiyu KK and

pursue a full merger may signal broader consolidation as Japan‘s refiners confront declining demand.

Idemitsu Kosan on Thursday said it will pay about 169 billion yen ($1.36 billion) for a 33.24 percent stake in

Showa Shell. A full combination of the two would create a company with about a third of the domestic gasoline

market, putting it on par with JX Holdings Inc., the country‘s largest refiner.

Oil demand in Japan has been declining as the nation‘s population shrinks and as a shift to more energy -efficient

cars prompts refiners to lower output. The government, a backer of industry consolidation, has asked for cuts in

processing capacity as the U.S. boosts exports and new production redraws global gasoline and diesel trade

flows.

―Japan‘s refineries are facing a long-term structural decline in demand, and refinery margin trends have been

unstable,‖ Norimasa Shinya, an analyst at Mizuho Securities Co., wrote in a July 30 note. The announcement

―could trigger industry consolidation that could lead to a better operating environment for the domestic

refineries.‖

A surplus of providers is one of the biggest challenges facing Japan‘s refinery industry, Takashi Tsukioka,

president of Idemitsu, said Thursday at a briefing.

PetroMag Petroleum Bazaar.com 30

―There is still room for further consolidation in the industry‖ even after a merger between Idemitsu and Showa

Shell, Tsukioka said.

Tie-Up Talks

Idemitsu shares rose 1.9 percent to 2,281 yen at the close in Tokyo Friday. Showa Shell, which surged as much

as 13 percent on Thursday after the Nikkei reported Idemitsu would become its largest shareholder, closed down

0.4 percent to 1,165 yen.

By all accounts, some consolidation is already under way.

TonenGeneral Sekiyu K.K., Japan‘s third-biggest refiner by revenue, agreed in December to link its Chiba refinery

with Cosmo Oil Co.‘s neighboring plant to increase production efficiency.

Cosmo Oil has held talks with other companies on possible partnerships for its Sakai and Yokkaichi refineries,

President Keizo Morikawa told reporter in May.

Idemitsu and Showa Shell first raised the possibility of a tie-up in December after the Nikkei newspaper reported

Idemitsu would acquire Showa Shell via a tender offer. On Thursday, the presidents of both companies repeated

several times that they want to merge their businesses based on ―a spirit of equals,‖ though no details were

provided.

Refining Capacity

Demand for oil product is forecast to fall 6.8 percent by fiscal year 2019, the Ministry of Economy, Trade and

Industry said in an April draft report. The government has warned it isn‘t realistic for Japan with less competitive

refineries to make up for a decline in domestic demand by expanding exports of oil products in coming years.

U.S. petroleum product exports to Japan rose 13 percent in the first three months of this year, data from the

Energy Information Administration shows. Japanese refiners may be forced to cut about 10 percent, or 400,000

barrels a day, of the country‘s total refining capacity by March 2017 to meet the government‘s rules, the trade

and industry ministry said in June 2014.

A merger of Idemitsu and Showa Shell would mean ―efficiency improvements in the use of raw materials and

semi-finished goods, streamlining of distribution and lower selling costs,‖ Hidetoshi Shioda, an analyst at SMBC

Nikko Securities Inc., wrote in a July 30 note.

Idemitsu has three refineries with total capacity of 535,000 barrels a day, making it the third-biggest processor

by capacity in Japan after JX and TonenGeneral Sekiyu, according to data compiled by Bloomberg. Showa Shell

also owns three refineries with combined capacity of 445,000 barrels a day, according to the data.

OPEC Oil Production Falls as Iraqi Output Slips From Record

OPEC crude output declined this month as Iraqi production slipped from a record in June.

Output by the Organization of Petroleum Exporting Countries decreased 362,000 barrels to 32.107 million a day

this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month‘s total was

revised 335,000 barrels higher, to 32.469 million a day, because of changes to the Saudi, Kuwaiti, Angolan and

Nigerian estimates.

Brent crude, the benchmark for more than half the world‘s oil, relapsed into a bear market this week on

speculation that the global supply glut will grow. OPEC agreed on June 5 to retain its collective output target of 30

million barrels a day, a level that it‘s exceeded for 14 months, according to data compiled by Bloomberg.

―Prices are going to remain under pressure because output is near record levels in several OPEC countries,‖ John

Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone.

Brent for September settlement fell $1.10, or 2.1 percent, to end the session at $52.21 a barrel on the London-

based ICE Futures Europe exchange. It was the lowest close since Jan. 29.

Iraqi production dropped 194,000 barrels a day to 4.194 million this month, according to the survey. Iraq,

OPEC‘s second-biggest producer, was responsible for more than half of the total decline this month. Exports from

the south of the country through the Persian Gulf rose to a record while there was a larger dip in shipments from

the north through the port of Ceyhan on Turkey‘s Mediterranean coast.

Saudi Summer

Saudi Arabia, OPEC‘s top producer, increased output by 70,000 barrels a day to 10.57 million in July, the most in

monthly Bloomberg data going back to 1989. Fuel consumption in the Arabian peninsula peaks in the summer

months, when high temperatures lead to increased use of air conditioners.

Iranian production was steady at 2.85 million this month. The nation pumped more than 3.1 million barrels a day

from 1991 until July 2012, when additional sanctions were imposed on the Islamic republic to curb its nuclear

program.

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After its nuclear accord with world powers this month, Iran will focus on regaining market share it lost due to

sanctions, regardless of the impact on prices, Oil Minister Bijan Namdar Zanganeh said July 20 in Tehran. The

nation is seeking to produce almost 4 million barrels a day within seven months of sanctions being removed,

expanding to 4.7 million as soon as feasible after that, Zanganeh said.

Libyan output slipped 20,000 barrels a day to 380,000 this month. The country‘s current output is about a third

of what it was before the 2011 rebellion that ended Muammar Qaddafi‘s 42 -year rule.

DHAKA: Govt makes abnormal

profit from fuel oil

The price of fuel oil has come down to a half in the last one year but the government is selling the oil at the old

price. The price of the fuel oil is now third highest in Bangladesh around the world.

The government hiked the oil price on 4 January in 2013 when there was an increase in oil prices in the

international market, but it did not reduce the price two years later when the prices came down in the

international market.

Though the finance minister at the post-budget news conference promised to rationalise the oil price, no steps

have been taken to this end as yet.

Bangladesh Petroleum Corporation (BPC) has made a profit of Tk 4,000 crore in one year when the world‘s

biggest oil companies were worried whether they would incur a loss.

The BPC is making profit most from octane and petrol. This profit is as high as Tk 40 per litre while it is making

profit up to Tk 20 in diesel, furnace oil and kerosene.

When contacted, former caretaker government adviser AB Mirza Azizul Islam said oil prices should be

rationalised if it is considered from the economic point of view.

In the first three months this year, crude oil price was $54 per barrel and it rose to $61 per barrel in the next

three months, whereas the crude oil was sold at $110 to 115 per barrel even last year.

According to different international media reports, the oil price has decreased by 21% in the United States to

reach $47.12 per barrel on last 30 July.

The international media also forecast that oil prices would increase in the next six months.

Even analysts at Goldman Sachs said the price of fuel oil will be hovering around $50 per barrel up to 2020.

Besides, the BPC booked the ship to import oil at a low rate, the BPC chairman AM Badruddoza told Prothom Alo.

He also admitted that the oil price would remain stationary in the international market in the next six months. He

said he had no information about rationalising the oil price in Bangladesh.

Sources in the finance ministry said the BPC is now about Tk 30,000 crore in debt and of this, owes Tk 26,000

crore to the government.

According to the Bangladesh Economic Review report, BPC made a profit of Tk 3,454 crore till 22 April this year.

The World Bank has prepared a chart of BPC‘s profit margin in last February in comparison with the internationa l

market when the oil price was $70 per barrel. At that time, the production cost of per litre octane and petrol was

Tk 56.85 but it was sold at Tk 99 and Tk 96 per litre respectively.

Deducting the commission and profit for the distributors and sellers, the net profit of the BPC stood at Tk 35.49

per litre.

In the same manner, BPC is making profit of Tk 13.77 per litre of Kerosene, of Tk 14.68 per litre of Diesel, of Tk

19.57 per litre of Furnace oil and of Tk 18.75 per litre of jet fuel oil.

And the government is realising Value Added Tax (VAT) against the fuel oil.

Besides, the government is saving money from its budget. In the last 2014-15 fiscal, the subsidy to the sector

amounted to a total of Tk 2,400 crore. But the expenditure was only Tk 700 crore as subsidy, suggesting that the

government is making profit from all sides thanks to the fall of oil price in the international market whereas the

consumers cannot save a single penny.

Sources in the finance ministry said many international airlines companies are no more interested to take fuel

from the Dhaka international airport as the jet fuel price is higher in Dhaka compared to other airports.

When contacted, the BPC chairman Badruddoza claimed that they have fixed the jet fuel price considering the

price in other airports in the region.

PetroMag Petroleum Bazaar.com 32

It was learnt that the per litre jet fuel price in Dhaka airport is Tk 2 to 12 higher than that in other airports.

In Bangladesh, 45% of the fuel is used in the transport sector, 25% in the power sector, 19% in agriculture

sector, 4% in the industries and 7% in the household sector.

Waiting for the Second FLNG Wave Despite a current pause in commitments to new projects, the capital expenditure for FLNG vessels is expected to

amount to $35.5 billion over 2015-2021.

There is huge interest in the technology, and future commitments hinge on the success of just a few projects.

The delivery of Petronas‘ PFLNG 1, also known as the PFLNG SATU, will be the world‘s first FLNG vessel to start

operations on its completion by the end of 2016. This will be followed by Shell‘s Prelude FLNG vessel, a

significantly larger project and one that is likely to shape future FLNG developments.

Following these projects is a second wave of new projects that are yet to be sanctioned but are expected to drive

a growth in expenditure from 2019 onwards. This includes major projects in frontier regions such as Australasia,

Asia, Gulf of Guinea, East Africa and the East Mediterranean.

Douglas Westwood analyst, Ben Wilby, says, ―The application of LNG technology offshore has been proposed and

studied within the industry for more than 30 years so there is intense industry interest in the first appli cations.

The success of these first pioneering projects will no doubt impact future commitments by operators to FLNG

developments.

―There are now many projects on the starting blocks awaiting a final investment decision by the operator. In 2015

we expect something of a pause in new commitments given both the ―first in the line to be second‖ approach to

the technology and the Capex cutbacks we have seen as a function of lower oil and gas prices.‖

The Attraction of FLNG

Operators are attracted to FLNG, as, compared to its onshore alternative, FLNG facilities are more secure, can

have shorter lead-times, remove the need for long pipeline to shore and offer a potentially lower-cost alternative

to monetizing stranded gas fields.

―While there are inherent risks, FLNG is undoubtedly a prospective market that in the long-run is poised to drive

many future gas developments,‖ says Wilby.

Liquefaction units will account for 61 percent of the total FLNG spend ($35.5 billion), says Wilby. ―The key

difference between liquefaction and regasification is that liquefaction vessels cost significantly more and take

longer to build - there are a lot less liquefaction vessels expected over the forecast period but they still account

for more of the Capex for example.‖

FSRU units tend to be cheaper and have much shorter manufacturing times (typically 18-24 months). They are

also more of a known quantity and are already an established alternative to onshore regasification plants.

Action for Asian Yards

The large yards in Korea will be responsible for many of the major newbuild liquefaction facilities, including two of

the early vessels – Prelude (Samsung Heavy Industries) and PFLNG 1 (Daewoo Shipbuilding & Marine

Engineering).

For the smaller conversion projects other yards are likely to pick up the slack, says Wilby. These are likely to be

those who already have experience in building FSRUs, FPSOs and LNG carriers and much of the work will remain

Asia-focused with South Korea, Japan and Singapore likely to take on the majority of it.

―To date, newbuild floating regasification vessels have taken place in Korean yards. Recently, however, CNOOC

announced that they were planning on sourcing some of their new FSRUs from Chinese yards, demonstrating a

change in the industry,‖ says Wilby.

―Again, it is smaller yards that pick up the conversion projects and the Keppel shipyard in Singapore has been

responsible for many FSRUs in the past. FSRUs are a more established technology than LNG FPSOs, as well as

being both cheaper and quicker to manufacture, which explains the more diverse spread of shipyards that have

completed projects.‖

Topsides

Topsides are often subcontracted out to other companies and a wide range of companies operate in this space.

Often they will have a separate FEED contract – Technip and Mustang have completed work on projects in the

past. Manufacturing can be carried out by shipyards, often in collaboration with engineering companies, though

some companies (such as Technip) will do everything from engineering to construction and installation.

PetroMag Petroleum Bazaar.com 33

Major projects are rarely the product of one yard and companies will call on the experience of many players to

ensure the project is a success. This is especially important for liquefaction vessels which use technology that

takes up a huge area on land. Typically liquefaction facilities have to be shrunk to about a quarter of the size they

take up on land.

FSRU Spending

Douglas-Westwood research indicates that spending on FSRUs will reach $22.8 billion over the 2015-2021

period, taking the combined expenditure for the floating LNG market to $58.3 billion.

Douglas-Westwood anticipates more floating regasification units will be sanctioned, with Asia and Latin America

being the dominant regions. Upcoming projects are visible in Indonesia, China, Pakistan, India, Vietnam,

Bangladesh and Sri Lanka, mostly led by National Oil Companies. Latin America will see deployments of floating

regasification units in Chile and Puerto Rico.

Impact of the Oil Price Collapse

Both the FLNG and FSRU market will be hit by the collapse in oil price. This has also affected the LNG spot price

and as a result has led to a decline in the commercial viability of projects. For many LNG projects, companies

usually have to lock in a number of contracts before sanctioning development – getting a favorable price for the

LNG produced is harder than it would have been even a year ago, and this will affect the sanctioning of a number

of projects.

Interestingly, says Wilby, the U.S. has seen a reversal in the units it requires. ―Only a few years ago a number of

FSRU units were expected to be commissioned to allow more gas to be imported into the country to meet its

energy needs, with the huge growth in shale gas this has now changed.‖

This will not really impact the market until after 2021, and major offshore liquefaction plants are not expected

anytime soon in the region.

NEPAL: NOC slashes LPG price by Rs 35/cylinder

Nepal Oil Corporation ( NOC ) has reduced the price of the liquefied petroleum gas ( LPG ) by Rs35 per cylinder. It

is probably the first time that the state-owned enterprise has reduced the price of cooking gas .

With the revised price, the cooking gas now costs Rs1,435 per cylinder. Previously, the NOC had ever been

suffering loss in the petroleum product. According to the NOC , it suffered the loss of Rs 1,043 per cylinder in

January 2013—the biggest loss the NOC ever went.

Along with the LPG , the NOC also reduced the prices of petrol, diesel, kerosene and aviation fuel (used in both

domestic and international flights. According to the oil monopoly, it has reduced the price of petrol, diesel and

kerosene each by Rs2.50 per liter. With the reduced price, petrol now costs Rs 106.50 per liter while the diesel

and kerosene cost Rs84 per litre each.

Similarly, the NOC also reduced the price of aviation fuel used in domestic flight by Rs15 per liter to Rs118 per

liter. Similarly, the price of aviation fuel for international flight has been reduced by $75 per kilolitre to $1,325.

With the revised price, the estimated profit of the enterprise is Rs1.7 billion this month, says the NOC .

KARACHI: Sustainable Energy KARACHI: Meeting the energy challenge is of paramount importance for Pakistan‘s economic growth and its

efforts to raise human development levels.

To achieve high growth over the next decade to 2025 and to meet the objective of greater self-reliance, Pakistan

needs, at the very least, a two-fold increase in primary energy supply and a three-time increase in electricity

generation capacity.

The country, by virtue of its location and natural endowments, has many technologically feasible choices to meet

its growing energy needs. The challenge lies in picking these options in such a way that satisfies commercial

needs and tames political voices. Another formidable task is to utilise the country‘s limited capital and capacity

optimally.

With these challenges in mind, the Energy Experts Group revisited the Integrated Energy Plan 2011 and updated

it for the period 2015-2025.

The broad vision of the energy plan is to meet the demand for energy from all sectors in a sustainable manner

with greater reliance on development of domestic resources.

The real GDP growth for the 2015-25 period is projected at an average of 5% per annum, which compares

favourably with the average economic expansion of approximately 3.5% over the past five years.

State of energy sector

PetroMag Petroleum Bazaar.com 34

Pakistan‘s energy sector is mired in crisis, which is recognised by the government in its Vision 2025. It strikes 4 -

7% off the country‘s GDP annually which equals to a loss of between $10 billion and $15 billion.

The loss of energy means increase in direct global warming and higher costs to the economy. A 1% loss of

electrical energy is equivalent to a loss of Rs13 billion in revenues per year.

The energy mix shows a heavy reliance on natural gas as a primary source of energy in Pakistan followed by oil,

the bulk of which is imported. Nuclear, hydroelectric and renewable energy (insignificant at present) together

form only 13% of the total. This is unsustainable as reliance on hydrocarbons increased from just under 80% to

82% in 2013-14.

Integrated plan

The integrated plan suggests an urgent need of a national energy authority and a ministry of energy. It also calls

for the formation of an intergrated energy policy to ensure consistency and coordination among different sectors,

along with removal of government intervention in consumer pricing.

It proposes less dependence on hydrocarbons, especially imported fuels, to around 60% to 70% from the current

87% by 2025.

―If we have to achieve moderate to good economic growth, we need to allocate our cheap indigenous resources

to those sectors of the economy which will produce the greatest benefit; and these sectors are power, industry

and agriculture,‖ stated the report.

The Energy Experts Group also recommends upgrading the existing simple-cycle plants to cost-efficient and latest

technologies along with plants located close to industrial zones.

The report stresses need of a detailed analysis of energy use and intensity across all industries to have a better

understanding of where wastages are taking place, and hiring of internationally reputed companies to audit the

power sector and other major consumers.

It urges the introduction of proper unaccounted for gas (UFG) control system in both Sui companies as a 1%

reduction nearly equals 40 mmcfd. ―Gas subsidies or loss subsidies should be eliminated and instead the

government should provide direct support to the segment of population below the poverty line,‖ said the report.

Also, no expansion of gas distribution system should be initiated till further discoveries and all thermal power

plants must be coal-based or combined-cycle gas turbine plants to use LNG as this fuel has advantages over

other liquid fuels.

As for the refining sector, it is the state‘s responsibility to come up with a strategic storage capacity to meet the

country‘s needs during emergency and should be developed within three years to avoid any unforeseen supply

disruption.

The plan stresses strengthening of the transmission and distribution networks and proper load flow studies to be

carried out by third-party professional engineers. ―Losses of more than 10-year-old power transformers,

especially those overloaded should be measured at site.‖

The report expresses fear that if Pakistan does not move towards implementing an integrated plan then it is

certain to face a large and growing energy deficit during the next 15 years.

The writer is a staff correspondent

Arguments for and against the

Keystone pipeline are all over the map.

Proponents say it will be an economic boost; critics say it won't have a significant impact.

Critics also worry about environmental consequences, but proponents note that with 2.5 million miles of pipeline

in the United States already, Keystone will probably be low on the list of worries.

Let's set aside for now those very real issues to ask a more fundamental question: What is this nation's long-term

energy strategy, and how does that strategy play into national security goals?

America's priority has to be energy independence, by which we mean independence from OPEC, many members

of which use money we pay at the pump to fund ways to destroy us. Do we really want to continue buying oil from

Iraq, Saudi Arabia, Venezuela and others?

Last year, at a Senate Foreign Relations Committee meeting, U.S. Marine Corps Gen. James L. Jones (retired),

said Keystone was of strategic importance to the United States. He also noted that America's Fifth Fleet is based

in Bahrain, primarily to secure free passage of crude oil through the Persian Gulf and Strait of Hormuz to the rest

of the world.

PetroMag Petroleum Bazaar.com 35

"Why would the United States spend billions of dollars and place our military personnel at risk to ensure the flow

of energy half a world away but neglect an opportunity to enable the flow of energy in our very own backyard —

creating jobs, tax revenue and greater security?" Jones asked.

Critics of Keystone say most of the oil produced in Canada and shipped through the Midwest will be refined on

the Gulf Coast and sold overseas. They call Keystone an "export pipeline." If that's the case — meaning big oil

companies win but little else changes — we're not interested. Under that scenario, Keystone is not compatible

with America's long-term interests or strategic goals.

Proponents, however, say only between a third and half of the oil will be shipped overseas, while the rest will be

used by American consumers.

Who is right? A number of independent analyses also determined that 30 to 50 percent of the oil refined on the

Gulf Coast today goes overseas as diesel fuel, gasoline, etc.

That is not acceptable.

Another analysis concluded that 70 percent of what is pumped through Keystone will remain in the United States.

That's moving in the right direction.

Congress and President Barack Obama need to require that a certain percentage — at a minimum, we'd

recommend 75 percent — of the refined oil from Keystone remain in the United States, serving American

consumers and American interests.

Like we said, if this moves us closer to energy independence, we'll support it, even though it may not bring all the

promised jobs or even if it comes with environmental risks. If not, forget it.

Indonesia's Donggi-Senoro LNG project ships first cargo

Indonesia's Donggi-Senoro liquefied natural gas (LNG) project shipped its first LNG cargo on Sunday, the project's

biggest shareholder Mitsubishi Corp said.

The $2.9 billion project, with LNG production capacity of 2 million-tonne-per-year (mtpa), is one of several major

gas infrastructure projects that the country hopes will meet mushrooming energy demands at home and around

the region.

LNG plant operations started on June 24, and the first LNG shipment was made to Indonesia's state energy firm

Pertamina's Arun LNG receiving terminal, Mitsubishi, which holds around 45 percent of the project, said in a

statement.

The second cargo shipment is scheduled for mid-August, it added.

Other shareholders in the project include South Korea's Kogas, Indonesia's Medco Energi Internasional and

Pertamina.

Donggi-Senoro has contracts to supply 1 mtpa of LNG to Chubu Electric Power Co Inc, 300,000 tonnes per year

to Kyushu Electric Power Co Inc and 700,000 tonnes per year to Kogas.

Oil companies Royal Dutch, Centrica, Saipam, forecast big job

losses

The tumbling oil price is not only creating headaches for the bosses of the global oil giants, it's also threatening to

derail the US central bank's plans to raise interest rates later this year.

The world's big oil companies are now slashing jobs and cutting spending as they prepare themselves to

withstand a prolonged period of weakness in the oil price, which is now trading at just over $US50 ($68.50) a

barrel, down from $US115 in June last year.

Last week, ExxonMobil, the biggest US oil company, reported its worst quarterly profits in six years. Its main US

rival, Chevron, suffered even more pain, with its second quarter profit plunging 90 per cent to the lowest level

since 2002.

In response to shrinking revenues, the oil industry worldwide has already shed an estimated 70,000 jobs. And

the job losses appear to be picking up pace.

In the past week alone, Royal Dutch Shell announced it was cutting 6500 jobs, the British energy firm Centrica

(which owns British Gas) said it would reduce its head count by 4000, while Italy's biggest oil and gas contractor,

Saipem, said it would trim its workforce by 8800 people.

The big oil companies have also cut back on investment, saving themselves an estimated $US200 billion ($273

billion) in capital spending by shelving big-ticket oil and gas projects.

The drop in the oil price, which started midway through last year, picked up in November when OPEC, the

producers' cartel, decided not to cut output.

After enjoying a brief recovery earlier this year, the oil price dropped by more than 20 per cent in July – its worst

monthly drop since the 2008 financial crisis -as investors worried about the resilience of US shale producers.

PetroMag Petroleum Bazaar.com 36

Although the US oil rig count has dropped sharply in the past year, US shale oil producers have kept output

steady by targeting richer sections of shale.

The oil price has also come under renewed pressure after Iran, which has the world's third-largest oil and gas

reserves, last month struck a deal that will lead to the gradual lifting of international sanctions in return for limits

on its nuclear program.

And the big oil producing countries are not doing much to support the oil price. OPEC secretary general Abdalla El -

Badri repeated last week that the cartel was "not ready to reduce" production.

Meanwhile, the sharp drop in the oil price is playing havoc with the US central bank's plans to raise interest rates

this year.

Janet Yellen, the head of the US Federal Reserve, has been at pains to prepare investors for rate rises this year.

However, she has always added that the US central bank would look at the data – particularly on employment

and inflation – before moving its key interest rate, which it has kept close to zero since December 2008.

But while the US jobs market has staged a strong recovery – the country's unemployment rate has fallen from 10

per cent in 2009 to 5.3 per cent in June – inflationary pressures remain feeble.

After a policy meeting last week, Fed officials warned that they would continue "to monitor inflation developments

closely", a sign that they are worried about weak price pressures.

And the US central bank was given yet more reason for concern after figures released on Friday showed that US

wages and salaries only rose by 0.2 per cent in the second quarter of the year. This was a fraction of the 0.7 per

cent jump in the first quarter, and the weakest rise since records began in 1982.

The paltry increase in pay packets surprised economists who had been expecting that wages would rise as the US

labour market improved, but some believe that job losses in the oil industry are to blame.

While New York has boosted the minimum wage for fast food workers to $US15 an hour, the steady decline in

the rig count has translated into a loss of a large number of highly paid skilled jobs.

Investors, figuring that the sluggish wages growth made it unlikely that the US central bank would raise rates at

its September meeting, responded by buying US bonds. This pushed bond prices higher and yields lower, with the

yield on the benchmark 10-year bond dipping to 2.21 per cent.

Natural gas futures - weekly

outlook: August 3 – 7

Natural gas futures fell to a three-week low on Friday, as forecasts for mild weather across the U.S. in the weeks

ahead dampened demand expectations for the fuel.

On the New York Mercantile Exchange, natural gas for delivery in September hit an intraday low of $2.706 per

million British thermal units, the weakest level since July 9, before ending the day at $2.716, down 5.2 cents, or

1.88%.

On Thursday, natural gas futures plunged 9.6 cents, or 3.35%, to close at $2.768 despite data showing that U.S.

natural gas supplies rose less than expected last week.

For the week, the September natural gas contract declined 2.9 cents, or 2.13%, the second straight weekly loss.

Futures dropped 12.6 cents, or 4.43%, in July, amid concerns over weak summer demand.

Updated weather forecasting models called for mostly average temperatures across most parts of the U.S. in the

next two weeks.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Natural

gas accounts for about a quarter of U.S. electricity generation.

According to the U.S. Energy Information Administration, natural gas storage stood at 2.828 trillion cubic feet as

of last week, 28.2% higher than during the same week a year earlier and 2.9% above the five-year average for

this time of year.

Last spring, supplies were 55% below the five-year average, indicating producers have made up for all of last

winter‘s unusually strong demand.

Data on Thursday showed that natural gas storage in the U.S. rose by 52 billion cubic feet, below expectations for

an increase of 54 billion and following a build of 61 billion cubic feet in the preceding week.

Supplies rose by 88 billion cubic feet in the same week last year, while the five -year average change is an

increase of 48 billion cubic feet.

The EIA\'s next storage report slated for release on Thursday, August 6 is expected to show a build of

approximately 50 billion cubic feet for the week ending July 31.

PetroMag Petroleum Bazaar.com 37

Supplies rose by 83 billion cubic feet in the same week last year, while the five -year average change is an

increase of 53 billion cubic feet.

Elsewhere on the Nymex, crude oil for September delivery settled at $47.12 a barrel by close of trade on Friday,

down 88 cents, or 2.12%, on the week, while heating oil for September delivery dropped 2.99% on the week to

settle at $1.588 per gallon.

Crude oil futures - weekly outlook: August 3 – 7

Crude oil futures fell sharply on Friday to cap the worst monthly performance since the 2008 global financial

crisis as ongoing concerns over a glut in world markets continued to drive down prices.

On the ICE Futures Exchange in London, Brent for September delivery fell to a session low of $51.63 a barrel, a

level not seen since January 30, before closing at $52.21, down $1.10, or 2.06%, for the day.

For the week, London-traded Brent futures lost $2.24, or 4.41%, the fifth straight weekly decline. Prices tumbled

$11.39, or 18.6%, in July, amid concerns a resumption of Iranian oil exports will add to a global glut.

Iran and six world powers reached a long-awaited nuclear deal in July that would end sanctions on Tehran in

exchange for curbs on the country's disputed nuclear program. Iran reportedly hoards 30 million barrels of oil in

its reserves ready for export.

Reports of record high oil exports from Iraq and robust production from Saudi Arabia also contributed to losses.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by

the Organization of Petroleum Exporting Countries last year not to cut production.

Elsewhere, U.S. oil futures fell to the lowest level in more than four months on Friday, after data showed that rigs

drilling for oil in the U.S. rose last week, underlining concerns over robust domestic production.

On the New York Mercantile Exchange, crude oil for delivery in September hit an intraday low of $46.70 a barrel,

a level not seen since March 24, before ending at $47.12, down $1.40, or 2.89%.

On the week, New York-traded oil futures declined 88 cents, or 2.12%, the seventh consecutive weekly loss.

Nymex oil prices plunged $12.22, or 21.24%, in July, the biggest monthly loss since October 2008, as worries

over high domestic U.S. oil production weighed.

Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the

U.S. increased by five last week to 664, the second straight weekly gain.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $5.09 a barrel by close of trade

on Friday, compared to $6.48 in the preceding week.

Concerns over the health of China's economy, a broadly stronger U.S. dollar and prospects of higher interest rates

in the U.S. later this year also weighed.

In the week ahead, investors will be focusing on Friday's nonfarm payrolls report for July, for fresh indications on

the strength of the economy and the timing of a U.S. rate increase.

Market participants will also be awaiting surveys of manufacturing and service sector data from the U.S., the U.K.

and China.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect

the markets.

Monday, August 3

China is to release revised data on manufacturing activity.

The U.K. is to publish its manufacturing index.

The U.S. is to release data on personal income and expenditure, while the Institute of Supply Management is to

release data on manufacturing activity.

Tuesday, August 4

The U.S. is to report on factory orders, while the American Petroleum Institute, an industry group, is to publish its

weekly report on oil supplies.

Wednesday, August 5

The U.S. is to release the ADP report on private sector hiring, while the ISM is to release data on service sector

activity.

The country will also produce data on the trade balance and on crude oil inventories.

Thursday, August 6

Germany is to release data on factory orders.

The U.S. is to release its weekly government report on initial jobless claims.

Friday, August 7

The U.S. is to round up the week with the closely watched government report on nonfarm payrolls.

PetroMag Petroleum Bazaar.com 38

Nymex oil posts worst monthly

drop of 2015

The West Texas Intermediate (WTI) crude for September delivery fell by US$1.40, or 2.9%, to settle at US$47.12

a barrel on the New York Mercantile Exchange.

Crude oil futures traded in New York finished lower on Friday, registering its worst monthly fall in percentage

terms since 2008 after a report showing higher rig counts aggravated concerns over the current oversupply

situation in the global oil market.

The number of US oil rigs rose by five to 664, oil-services firm Baker Hughes reported on Friday.

The West Texas Intermediate (WTI) crude for September delivery fell by US$1.40, or 2.9%, to settle at US$47.12

a barrel on the New York Mercantile Exchange.

WTI finished the week down by ~2.5%, leading to a monthly fall of 21%.

September Brent crude oil on the London‘s ICE Futures exchange lost US$1.10, or 2.1%, to end at US$52.21 a

barrel. For the week, Brent was down ~5%, leading to 18% fall in July.

Over the past few months, oil prices have been under tremendous pressure owing to a global supply glut.

At the same time, a strong US dollar has also made the dollar-denominated crude more expensive for buyers in

other currencies.

High global supplies have kept oil prices in a tight leash even as competition has intensified among the leading

global producers, who are not willing to opt for production cut to protect their market share.

Saudi tumbles on oil, earnings;

other markets also weak

Stock markets across the Middle East fell on Sunday after oil prices dropped again and Saudi Arabia, heavily

influenced by the petrochemicals sector, led losses, hitting a four-month low.

The main Saudi index sank 3.2 percent to 8,807 points, its biggest daily loss since late March, with nearly all

stocks in the red. It has no significant technical support left above the April low of 8,502 points.

Petrochemicals giant Saudi Basic Industries tumbled 3.9 percent. The company's profits have been hurt by the

drop in oil prices over the last 12 months, and the commodity's fresh weakness is a concern for investors.

U.S. crude posted its biggest monthly drop - 21 percent - since the 2008 financial crisis on Friday after a string of

losses in July triggered by China's stock market slump and signs that top Middle East producers were pumping

crude at record levels. Brent lost 5 percent on the week and 18 percent on the month.

Other companies in the petrochemicals industry also fell sharply, and the sector's index was down 4.4 percent.

Red Sea Housing Services tumbled to its daily 10 percent limit after second-quarter profit dropped 58 percent on

lower sales and margins and the firm announced delays in the implementation of some projects.

Mediterranean and Gulf Insurance & Reinsurance Co was also down 10 percent after swinging to a loss in the

second quarter, which it blamed on higher claims.

In the latest monthly Reuters survey of leading Middle East fund managers, published on Thursday, 40 percent

said they expected to cut equity allocations to Saudi Arabia in the next three months and just 7 percent to

increase them. That compared with 27 percent intending to decrease allocations and 13 percent to increase

them in the June survey.

With the exception of Turkey, Saudi Arabia was seen as the most negative major Middle Eastern equities market,

because of high valuations and the heavy weighting of petrochemicals.

Another factor that may have hurt the sentiment of Saudi investors was a fresh restatement of earnings by

telecommunications firm Mobily for the last 27 months; it slashed total profits over the period by nearly 1.76

billion riyals ($470 million) in its latest attempt to resolve an accounting scandal.

Shares in Mobily, which also posted a loss of 900.9 million riyals for the second quarter on Sunday, have been

suspended since June and will resume trading on Monday.

UAE, EGYPT

Dubai's bourse fell 0.9 percent and property developer DAMAC was one of just a few gainers, jumping 2.6

percent. The company said on Sunday its board would discuss second-quarter results and a dividend payout on

Tuesday.

DAMAC's board will also discuss the adoption of the IFRS 15 accounting standard, which allows developers to

recognise off-plan sales earlier than under current practice.

Meanwhile another property-related firm, mortgage lender Amlak Finance, tumbled 8.5 percent and was the most

traded stock in Dubai. Amlak had gained as much as 150 percent since it resumed trading in June after a multi -

year suspension, and many fund managers and analysts saw the gains as highly speculative.

PetroMag Petroleum Bazaar.com 39

Elsewhere in the Gulf, Abu Dhabi's bourse lost 0.9 percent while Qatar fell 1.1 percent. Heavyweight Industries

Qatar, whose earnings are sensitive to oil prices, also fell 1.1 percent.

Egypt's stock index inched up in early trade but then turned negative under the pressure of selling by Arab retail

investors and closed 0.4 percent lower.

Commercial International Bank, the country's biggest listed lender, fell 2.4 percent despite reporting second -

quarter results last week that were in line with analysts' forecasts.

But Ezz Steel rose 2.0 percent after Egyptian media reported that the state energy company had contracted to

obtain a floating liquefied natural gas terminal that would supply the industrial sector. Ezz and other

manufacturers have been suffering from severe energy shortages.

SUNDAY'S HIGHLIGHTS

SAUDI ARABIA

* The index dropped 3.2 percent to 8,807 points.

DUBAI

* The index fell 0.9 percent to 4,104 points.

ABU DHABI

* The index lost 0.9 percent to 4,791 points.

QATAR

* The index slid 1.1 percent to 11,651 points.

EGYPT

* The index edged down 0.4 percent to 8,158 points.

KUWAIT

* The index slipped 0.3 percent to 6,237 points.

OMAN

* The index inched down 0.04 percent to 6,555 points.

BAHRAIN

* The index slipped 0.1 percent to 1,330 points.

WTI Crude Oil Speculators Drop Net Bullish Positions For 4th Week

WTI Crude Oil Non-Commercial Positions:

Futures market traders and large oil speculators cut their overall bullish bets in WTI oil futures last week for the

fourth consecutive week, according to the latest Commitment of Traders (COT) data released by the Commodity

Futures Trading Commission (CFTC) on Friday.

The non-commercial contracts of crude oil futures, traded by large speculators, traders and hedge funds, totaled

a net position of +243,419 contracts in the data reported for July 21st. This was a change of -10,264 contracts

from the previous week‘s total of +253,683 net contracts for the data reported through July 28th.

For the week, the standing non-commercial long positions in oil futures rose by 11,645 contracts, but were

overtaken by a larger increase in the short positions by 21,909 contracts to total the overall weekly net change of

-10,264 contracts.

Courtesy: Media Reports: PTI / Reuters / Financial Times / BBC Business News / DAWN (Pakistan) / Tehran Times / The Times/ CNN/ BBC News / OPEC Press releases / Africa Intelligence / Australia Daily / Hong Kong Times / Gulf News / Economic Times / Times of

India / Business Standard / Business Line / Financial Express / Deccan Chronicle / Tribune / Telegraph / Statesman / Hindustan Times / The Hindu / The Assam Tribune / Parliament House Press releases / Company Press releases / Ministry / Petroleum Bazaar

staff reporting. Interoceanic Ship

PetroMag Petroleum Bazaar.com 40

All India Monthly Industry Sales Performance

Products Sales for the month (TMT) Cumulative Sales (TMT) % Growth/ (Decline)

JUNE ‗15

JUNE‘14

Apr-Mar‘ 16

Apr-Mar‘15

JUN‘15

JUN‘14

LPG 1451.1 1312.4 4363.2 4017.7 10.6 8.6

Naphtha + NGL 727.9 887.8 2498.7 2656.8 (18.0) (6.0)

MS 1769.4 1610.7 5386.2 4796.3 9.9 12.3

ATF / JP-5 468.0 450.3 1437.8 1389.8 3.9 3.5

SKO 566.5 595.3 1711.3 1770.7 (4.8) (3.4)

HSD 6285.4 6136.2 19206.9 18540.7 2.4 3.6

LDO 40.8 30.0 91.0 86.4 36.2 5.4

FO/ LSHS 436.8 450.6 1309.0 1333.8 (3.1) (1.9)

BITUMEN 377.1 462.2 1348.3 1537.8 (18.4) (12.3)

LUBES/GREASES 104.1 91.7 299.9 235.6 13.4 27.3

Total 10 Products 12227.0 12027.2 37652.3 36365.5 1.7 3.5

Others 1085.9 994.5 3078.7 3026.4 9.2 1.7

Total POL Products 13313.0 13021.7 40731.0 39391.8 2.2 3.4

CNG 171.9 162.6 521.4 489.7 5.7 6.5

LNG 835.2 802.1 2256.4 2461.3 4.1 (8.3)

Total GAS 1007.1 964.7 2777.8 2951.0 4.4 (5.9)

INDUSTRIAL SALES PERFORMANCE

PetroMag Petroleum Bazaar.com 41

Pipeline transfers through inland product pipelines in the country during the month and utilization percent are given below:

Figs. in TMTs

Pipeline Capacity

Thruput

(TMT) %

TMTPA TMTPM JUNE. ‗15 Utilisation

HBPL (Haldia-Rajbandh-Barauni) 140.4 376.8 134.8 120.6

HMRPL (Haldia-Mourigram-Chitragung- Rajbandh) 168 484.1 149.3 143.4

BKPL (Barauni-Patna-Mughalsari- Allahabad-Kanpur) 199 562.1 68.2 64.2

GSPL (Guwahati-Siliguri) 169.4 473.3 145.2 135.2

MJPL (Mathura-Brijwasan-Ambala- Partapur-Jalandhar) 469.2 1421.4 78.2 79

MTPL (Mathura-Tundla) 36.1 89.5 36.1 29.8

MBPL (Mathura-Bharatpur) 66.7 187.5 66.7 62.5

PRPL (Panipat-Rewari) 134.4 391.2 107.5 104.3

PBPL (Panipat-Bhatinda) 129.7 331.4 103.7 88.4

KAPL (Koyali-Ahemedabad) 69.2 177.3 75.5 64.5

KDPL (Koyali-Dahej) 68.3 140 31.5 21.5

KSPL (Koyali-Viramgam-Sidhpur- Sanganer) 323.8 683 94.8 66.6

KRPL (Koyali-Rathlam) 115.6 260.8 69.4 52.2

CTMPL (Chennai-Trichy-Madurai) 229.2 648 119.6 112.7

CBPL (Chennai-Bangalore) 122.9 373.5 101.7 103

MPPL (Mumbai-Pune-Solapur) 375 1108 122.6 120.8

MUMBAI-MANMAD-BIJWASAN 598 1212 119.6 80.8

MUNDRA-DELHI 199 618 47.8 49.4

MHBPL (Mangalore-Hassan-Bangalore) 522 1046 111.9 74.7

VVSPL (Vizag-Vijayawada- Secunderabad) 405 1154 90.3 85.8

CCKPL (Cochin-Coimbatore-Karur) 242 701 88 85

JLPL (Jamnagar-Loni) - LPG 154 518 73.9 82.9

VSPL (Vizag-Secunderabad) - LPG 97.4 333 103.5 117.9

PIPELINE TRANSFERS

PetroMag Petroleum Bazaar.com 42

Import of Liquefied Natural Gas to the domestic market * (MMT)

Month Dec. 14 Jan. 15 Feb. 15 Mar.‘15 Apr. ‗15 May ' 15 Total

Total LNG Imports 0.993 0.941 0.701 0.759 1.111 1.096 2.207

TOTAL 2.207

* Provisional

TBTU: Trillion British Thermal Unit

Source:Petronet LNG Limited & Hazira LNG Pvt Ltd.

Sale of Natural Gas in the domestic market*

(in MMSCM)

Month Jan. 15 Feb. 15 Mar.‘15 Apr. ‗15 May' 15 (P) Total

Domestic Natural Gas 2263.22 1990.44 2220.99 2098.54 2248.12 4346.66

Coal Bed Methane (CBM) 22.83 19.65 23.84 17.67 19.53 37.20

Regasified Liquified Natural Gas (R- LNG) 1031.76 838.40 1039.80 1580.50 1517.67 3098.17

Total 3317.81 2848.49 3284.63 2098.54 2248.12 4346.66

* Provisional

MMSCM: Million Standard Cubic Metre

Source:ONGC,OIL,DGH,PLL & Shell

NOTE :1 Sale by producing and importing companies

State-wise Natural Gas Production in India, 2014-15 (Month-wise)*

State Jan. 15 Feb. 15 Mar.‘15 Apr. ‗15 May' 15 (P) Total

I) Gross Production :

A) Onshore:

(i) Assam/Arunachal Pradesh 248.63 219.00 247.69 217.88 246.95 464.83

(ii) Rajasthan 108.51 98.34 116.91 93.65 99.76 193.41

(iii) Gujarat 127.64 114.77 125.15 125.56 127.02 252.58

(iv) Tamil Nadu 90.31 81.62 100.01 88.51 97.15 185.66

(v) Andhra Pradesh 48.42 45.67 54.51 52.93 52.69 105.62

(vi) Tripura 100.32 92.33 117.79 99.65 96.37 196.02

(vii) West Bengal (CBM) 22.83 19.65 23.84 29.99 32.15 62.14

Onshore Total (A) 746.66 671.37 785.89 708.17 752.10 1460.27

B) Offshore: 2125.04 1863.25 2051.18 1961.53 2100.13 4061.65

Total (A+B) 2871.70 2534.63 2837.07 2669.70 2852.22 5521.92

II) Net Availability1 2787.71 2458.88 2738.00 2576.52 2756.85 5333.37

* Provisional MMSCM: Million Standard Cubic Metre

Source:ONGC,OIL&DGH

NOTE : 1 Denotes natural gas available for consumption, which is derived by deducting from gross production, the quantity of gas

flared by producing companies

NATURAL GAS IMPORT, SALE AND PRODUCTION

PetroMag Petroleum Bazaar.com 43

PRODUCTS REGION

JUNE APRIL – MAR.‘ 16

2015 2014 %GROWTH 2015-16 2014-15 %GROWTH LPG

NORTHERN 443.7 402.5 10.2 1385.3 1287.8 7.6

EASTERN 240.1 201.0 19.4 692.4 604.3 14.6

WESTERN 328.4 303.9 8.1 978.1 915.3 6.9

SOUTHERN 438.9 405.0 8.4 1307.4 1210.2 8.0

ALL INDIA 1451.1 1312.4 10.6 4363.2 4017.7 8.6

NAPHTHA/NGL NORTHERN 168.7 228.9 (26.3) 737.7 719.5 2.5

EASTERN 18.3 81.4 (77.5) 108.8 267.1 (59.3)

WESTERN 506.4 505.2 0.2 1573.6 1411.8 11.5

SOUTHERN 34.5 72.3 (52.3) 78.6 258.4 (69.6)

ALL INDIA 727.9 887.8 (18.0) 2498.7 2656.8 (6.0)

MS NORTHERN 539.1 499.1 8.0 1628.0 1457.2 11.7

EASTERN 212.1 187.7 13.0 642.8 549.1 17.1

WESTERN 475.9 440.6 8.0 1486.6 1340.3 10.9

SOUTHERN 542.3 483.2 12.2 1628.9 1449.6 12.4

ALL INDIA 1769.4 1610.7 9.9 5386.2 4796.3 12.3

ATF NORTHERN 167.7 157.8 6.3 511.7 479.2 6.8

EASTERN 35.3 32.7 7.9 115.1 103.7 11.0

WESTERN 137.3 134.4 2.2 423.2 412.5 2.6

SOUTHERN 127.8 125.5 1.9 387.7 394.5 (1.7)

ALL INDIA 468.0 450.3 3.9 1437.8 1389.8 3.5

SKO NORTHERN 161.5 166.5 (3.0) 467.3 486.7 (4.0)

EASTERN 189.5 189.7 (0.1) 555.8 566.5 (1.9)

WESTERN 123.2 140.3 (12.2) 408.3 421.7 (3.2)

SOUTHERN 92.4 98.7 (6.4) 279.9 295.8 (5.4)

ALL INDIA 566.5 595.3 (4.8) 1711.3 1770.7 (3.4)

HSD NORTHERN 2143.2 2076.0 3.2 6473.9 6238.5 3.8

EASTERN 871.3 832.6 4.7 2668.9 2493.8 7.0

WESTERN 1540.9 1504.8 2.4 4788.9 4579.7 4.6

SOUTHERN 1729.9 1722.8 0.4 5275.3 5228.7 0.9

ALL INDIA 6285.4 6136.2 2.4 19206.9 18540.7 3.6

LDO/MLO

NORTHERN 9.0 5.2 72.2 24.7 14.4 71.0

EASTERN 15.6 11.9 31.0 26.0 33.6 (22.5)

WESTERN 13.7 10.5 30.5 33.7 31.9 5.8

SOUTHERN 2.5 2.4 7.5 6.5 6.5 0.9

ALL INDIA 40.8 30.0 36.2 91.0 86.4 5.4

FO/LSHS

NORTHERN 79.2 61.4 28.9 225.9 183.1 (10.2)

EASTERN 81.5 83.9 (2.8) 256.2 245.1 (2.2)

REGION WISE INDUSTRY SALES GROWTH (Figs. In TMT)

PetroMag Petroleum Bazaar.com 44

WESTERN 152.0 150.7 0.9 462.4 418.1 10.6

SOUTHERN 124.1 154.6 (19.7) 364.6 487.5 (25.2)

ALL INDIA 436.8 450.6 (3.1) 1309.0 1333.8 (1.9)

BITUMEN

NORTHERN 126.6 160.4 (21.1) 394.2 478.0 (17.5)

EASTERN 54.6 59.9 (8.9) 188.4 204.5 (7.9)

WESTERN 99.5 160.5 (38.0) 433.9 552.2 (21.4)

SOUTHERN 96.4 81.5 18.3 331.8 303.1 9.5

ALL INDIA 377.1 462.2 (18.4) 1348.3 1537.8 (12.3)

LUBES/GRS.

NORTHERN 22.2 20.2 9.7 61.0 49.9 22.3

EASTERN 13.5 11.7 14.6 34.4 31.0 11.1

WESTERN 45.9 38.5 19.4 142.1 98.7 43.9

SOUTHERN 22.5 21.3 5.6 62.4 56.1 11.3

ALL INDIA 104.1 91.7 13.4 299.9 235.6 27.3

TOTAL 10 PRODUCTS

NORTHERN 3860.7 3778.0 2.2 11909.7 11394.4

4.5

2

EASTERN 1731.8 1692.5 2.3 5288.8 5098.7 3.7

WESTERN 3423.2 3389.4 1.0 10730.7 10182.0 5.4

SOUTHERN 3211.3 3167.2 1.4 9723.2 9690.3 0.3

ALL INDIA 12227.0

12027.

2 1.7 37652.3 36365.5 3.5

PetroMag Petroleum Bazaar.com 45

Volume - MTs

SECTOR JUNE APRIL – MAR.

2015 2014 %GROWTH 2015-16 2014-15 %GROWTH

Agriculture 8373 8992 (6.9) 26908 22453 19.8

Auto. Manuf. 12175 7445 63.5 35099 20081 74.8

Cement 14139 9055 56.1 40366 27406 47.3

Coal 45777 44207 3.6 142412 133216 6.9

Defence 22297 25794 (13.6) 60495 70774 (14.5)

Fisheries 6761 9188 (26.4) 45135 55808 (19.1)

Steel 8780 8322 5.5 24789 23703 4.6

Marine 52395 58519 (10.5) 172975 192581 (10.2)

Mining 20310 13995 45.1 63155 42036 50.2

Others Pvt. 153541 95745 60.4 489913 310041 58.0

Infras. Develop. 21312 7737 175.5 64323 22459 186.4

Others Govt. 19131 14799 29.3 57293 46107 24.3

Power Plants 14088 13220 6.6 40491 38779 4.4

Railways 222743 221455 0.6 659910 649526 1.6

STUs 211933 10174 1983.1 627672 28432 2107.6

Sugar 1927 422 356.3 8360 977 755.9

Textiles 6869 4104 67.4 20611 14081 46.4

Paramilitary 0 0 0 0 0 0

Civil Construction 0 0 0 304 0 0

Total 842550 553173 52.3 2580210 1698459 51.9

ALL INDIA SECTORWISE HSD-Direct SALES

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SECTOR PRODUCT JUN Variation APRIL- MARCH Variation % Share

2015 2014 +/- 2015-16 2014-15 +/- CY/CUM Power

FO 10.8 19.5 -8.7 26.9 73.7 -46.8

2.9%

LSHS 3.1 8.6 -5.5 11.5 57.6 -46.1

Total 13.9 28.1 -14.2 38.4 131.2 -92.8

Fertiliser

FO 7.7 19.6 -11.9 31.3 49.9 -18.6

2.4%

LSHS 0.0 0.0 0.0 0.1 0.1 0.0

Total 7.7 19.6 -11.9 31.4 50.0 -18.6

Petrochemicals

FO 11.8 13.8 -2.0 34.8 41.5 -6.7

4.0%

LSHS 1.8 2.1 -0.3 17.1 7.2 9.9

Total 13.7 16.0 -2.3 52.0 48.8 3.2

Steel

FO 10.1 17.5 -7.4 44.8 41.2 3.6

4.3%

LSHS 4.0 6.8 -2.9 11.1 15.9 -4.8

Total 14.0 24.3 -10.3 55.9 57.1 -1.2

Other

FO 51.7 59.7 -8.0 181.1 172.6 8.5

13.9%

LSHS 0.3 1.2 -0.8 0.4 1.9 -1.5

Total 52.0 60.9 -8.9 181.5 174.4 7.0

General Trade

FO 333.5 295.6 37.9 942.1 852.7 89.4

72.6%

LSHS 2.0 6.2 -4.2 7.8 19.5 -11.7

Total 335.5 301.7 33.7 949.8 872.2 77.6

TOTAL

FO 425.6 425.7 -0.1 60. 1231 29.4

%100

LSHS 11.2 25.0 -13.8 48.1 102 -54.1

Total 436.8 450.6 -13.8 130 1333 -24.7

CATEGORY JUNE APRIL- MARCH

2015 2014 Variation % SHARE 2015-16 2014-15 Variation %SHARE

POWER 1 48 -46 0.2% 15 221 -206 0.6%

FERTILISER 23 41 -19 3.1% 43 76 -33 1.7%

PETROCHEM 703 798 -95 96.6% 2438 2357 80 97.6%

STEEL 0 0 0 0.0% 0 0 0 0.0%

OTHER 1 1 0 0.1% 3 2 0 0.1%

GRAND TOTAL 728 888 -160 100.0% 2499 2657 -158 100.0%

CATEGORY WISE FO/LSHS UPLIFTMENTS (FIG. IN TMT)

CATEGORYWISE NAPHTHA UPLIFTMENTS (FIG. IN TMT)

PetroMag Petroleum Bazaar.com 47

Crude Oil Production (Figs in TMT) during the month of JUNE, 2015

Name of the

Undertaking / Unit

Production During the.. Cumulative Production

Month under

review* Corresponding month

last year Preceding month

of current year

Actual Prodn.

During current

year

Actual Prodn.

Corresponding

period last year

JUNE JUNE MAY Apr-Mar Apr-Mar

2015 2014 2015 2015-16 2014-15 Production of

Crude Oil

1. ONGC 1853.838 1850.929 1905.047 5568.918 5504.316

Onshore 472.584 510.903 486.097 1438.478 1576.724

Andhra Pradesh 25.748 23.144 24.804 74.555 71.832

Assam 79.828 93.129 82.782 242.264 288.295

Gujarat 345.758 374.868 355.093 1055.453 1155.206

Tamil Nadu 21.250 19.763 23.418 66.206 61.392

Offshore 1381.254 1340.025 1418.950 4130.440 3927.591

Eastern Offshore 1.773 0.983 1.938 5.641 3.152

Western Offshore 1268.076 1210.888 1299.139 3779.332 3531.722

Condensates 111.405 128.154 117.873 345.467 392.717

2. OIL (Onshore) 271.279 277.921 284.991 836.980 835.439

Assam 270.867 277.330 284.566 835.730 833.493

Arunachal Pradesh 0.412 0.591 0.425 1.250 1.946

3. DGH (Private /

JVC) 975.888 993.123 994.381 2899.609 3046.362

Onshore 746.510 768.515 766.889 2232.785 2370.099

Arunachal Pradesh 4.113 6.320 4.255 12.588 20.341

Gujarat 11.592 11.936 13.101 35.320 38.554

Rajasthan 730.805 750.259 749.533 2184.877 2311.204

Offshore 229.378 224.608 227.492 666.824 676.263

Eastern Offshore 119.681 106.478 125.593 370.731 307.721

Gujarat Offshore 31.109 32.155 29.070 90.053 97.142

Western Offshore 78.588 85.975 72.829 206.040 271.400

CRUDE OIL PRODUCTION

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Natural Gas Production (Figs in TMT) during the month of JUNE, 2015

Name of the Undertaking / Unit

Production During the.. Cumulative Production

Month under

review* Corresponding

month last year Preceding month of

current year Actual Prodn. During

current year

Actual Prodn.

Corresponding period

last year JUNE JUNE MAY Apr-Mar Apr-Mar

2015 2014 2015 2015-16 2014-15

Production of Natural Gas

1. ONGC 1803.510 1908.696 1898.479 5483.090 5653.368

Onshore 385.354 452.820 401.053 1179.384 1350.061

Andhra Pradesh 48.763 89.256 52.691 154.381 275.261

Assam 32.576 38.821 35.297 101.185 116.469

Gujarat 112.305 120.762 118.832 349.029 365.309

Rajasthan 0.377 0.072 0.719 1.775 1.227

Tamil Nadu 94.786 106.805 97.149 280.447 329.923

Tripura 96.548 97.104 96.365 292.567 261.872

Offshore 1418.157 1455.875 1497.426 4303.706 4303.306

Eastern Offshore 21.047 1.295 21.964 64.323 4.103

Western Offshore 1397.109 1454.581 1475.462 4239.383 4299.204

2. OIL 225.044 222.542 221.789 641.642 676.858

Assam 207.272 212.963 208.900 598.049 636.649

Arunachal Pradesh 1.045 0.909 1.084 3.144 3.211

Rajasthan 16.727 8.670 11.805 40.449 36.998

3. DGH (Private / JVC) 694.371 763.197 731.940 2119.835 2276.062

Onshore 91.625 80.559 97.084 278.843 229.969

Arunachal Pradesh 1.702 1.773 1.669 5.041 4.976

Gujarat 7.861 8.773 8.183 23.713 26.896

Rajasthan 82.062 70.013 87.232 250.089 198.097

CBM 32.107 17.641 32.151 94.242 52.734

Jharkhand (CBM) 0.077 0.196 0.097 0.264 0.638

Madhya Pradesh (CBM) 0.167 0.270 0.175 0.496 1.327

West Bengal (CBM) 31.863 17.175 31.879 93.482 50.769

Offshore 570.639 664.997 602.705 1746.750 1993.359

Eastern Offshore 377.620 424.768 403.165 1169.418 1282.296

Gujarat Offshore 6.195 10.871 4.059 14.019 33.295

Western Offshore 186.824 229.358 195.481 563.313 677.768

TOTAL (1+2+3) 2722.925 2894.435 2852.208 8244.567 8606.288

CBM 32.107 17.641 32.151 94.242 52.734

Onshore 702.023 755.921 719.926 2099.869 2256.888

Offshore 2100.131 2178.234 1961.530 4061.660 4175.793

NATURAL GAS PRODUCTION

PetroMag Petroleum Bazaar.com 49

(FIGs. IN TMT)

Refinery Production (Crude Throughput) during the month of JUNE, 2015

Name of the Production During the.. Cumulative Production

PSU /Private CO Month under review* Corresponding month

last year Preceding month of

current year Actual Prodn. During

current year

Actual Prodn.

Corresponding period last

year Undertaking / Unit JUNE JUNE MAY Apr-Mar Apr-Mar

Refinery Production 2015 2014 2015 2015-16 2014-15

(In terms of crude)

Public Sector 10558.629 9481.814 10601.054 30588.411 28303.754

1. IOC, Guwahati 93.288 79.427 95.257 282.067 244.436

2. IOC, Barauni 541.215 549.075 527.142 1542.776 1651.220

3. IOC, Koyali 1176.205 1026.354 1204.387 2984.377 3314.592

4. IOC, Haldia 667.002 666.018 662.709 1976.822 1952.199

5. IOC, Mathura 732.791 691.154 699.131 2107.316 2189.028

6. IOC, Digboi 51.361 54.468 55.185 135.720 149.547

7. IOC, Panipat 1212.379 773.798 1366.430 3871.890 2840.316

8. IOC Bongaigaon 200.486 166.748 230.727 667.097 524.493

Total IOC 4674.727 4007.042 4840.968 13568.065 12865.831

9. BPCL, Mumbai 1056.418 1076.384 1163.692 3356.624 2888.364

10.BPCL, Kochi 902.920 923.418 928.148 2724.945 2476.540

Total BPCL 1959.338 1999.802 2091.840 6081.569 5364.904

11. HPCL, Mumbai 652.845 526.765 419.209 1623.206 1397.009

12. HPCL, Visakh 588.392 659.790 807.387 2134.609 1879.130

Total HPCL 1241.237 1186.555 1226.596 3757.815 3276.138

13. CPCL, Manali 905.605 879.251 907.236 2712.872 2658.556

14. CPCL,

Narimanam 48.103 33.262 43.315 130.497 160.542

Total CPCL 953.708 912.513 950.551 2843.369 2819.098

15. NRL, Numaligarh 260.817 254.676 150.793 413.071 724.557

16. MRPL,

Mangalore 1463.305 1116.636 1336.096 3910.816 3241.359

17. ONGC, Tatipaka 5.497 4.590 4.209 13.705 11.867

Joint Venture Sub

Total 1498.104 1233.956 1496.264 3891.776 3871.129

18. BORL, Bina 601.084 561.456 571.135 1173.733 1489.335

19. HMEL, Bhatinda 897.020 672.500 925.129 2718.043 2381.795

Private Sector $ 7426.965 7410.064 7607.833 21797.245 21825.368

1. RPL, Jamnagar 2713.896 2603.000 2740.206 7477.962 7225.384

2. RIL, SEZ 3023.283 3100.000 3104.019 9147.458 9459.000

Total RIL 5737.179 5703.000 5844.225 16625.420 16684.384

Essar Oil (EOL),

Vadinar 1689.786 1707.064 1763.608 5171.825 5140.984

TOTAL 19483.698 18125.835 19705.151 56277.432 54000.251

REFINERY PRODUCTION (CRUDE THROUGHPUT)

PetroMag Petroleum Bazaar.com 50

IMPORT/EXPORT April 2015-Mar.2016 (000 MT) April 2015-Mar 2016 (Rs. Crore)

MAR APRIL MAY TOTAL MAR APRIL MAY TOTAL

TOTAL CRUDE OIL 16489 15495 17495 32989 38126 39321 48076 87397

PRODUCTS

LPG 845 685 824 1509 2776 2270 2740 5010

MS/ PETROL 44 120 154 274 186 517 742 1259

NAPHTHA/ NGL 123 108 137 244 514 443 569 1012

SKO/ KEROSENE 0 35 0 35 0 132 0 132

HSD/ DIESEL 6 8 8 15 37 40 40 81

LOBS/ LUBE OIL 150 149 149 298 942 894 894 1788

FUEL OIL/LSHS 61 50 85 135 231 192 287 478

BITUMEN 36 42 42 84 122 131 131 263

OTHERS 629 626 626 1252 1117 1018 1016 2033

TOTAL PRODUCT IMPORT 1893 1824 2024 3847 5925 5637 6419 12056

TOTAL IMPORT 18383 17318 19518 36837 44050 44958 54495 99452

EXPORT

LPG 28 24 19 43 118 102 82 184

MS/ PETROL 1067 935 1341 2276 4114 3797 6089 9886

NAPHTHA/ NGL 438 576 492 1068 1397 1930 1764 3694

ATF 563 153 260 414 1944 550 993 1542

HSD/ DIESEL 1815 1366 1495 2862 6092 4852 5700 10552

SKO/ KEROSENE 2 1 1 2 7 4 4 8

LDO 0 0 0 0 0 0 0 0

LOBS/ LUBE OIL 0 4 1 5 6 20 7 27

FUEL OIL/LSHS 372 363 498 861 722 727 1131 1858

BITUMEN 2 8 10 17 7 14 22 35

OTHERS 568 313 424 737 1439 803 1214 2017

TOTAL PRODUCT EXPORT 4855 3743 4542 8285 15845 12797 17006 29803

NET IMPORT 13528 13575 14976 28551 28205 32160 37489 69649

IMPORT / EXPORT – CRUDE & PETROLEUM PRODUCTS

PetroMag Petroleum Bazaar.com 51

PORT VESSEL SPLR/BYR ARRIVED CARGO APROX.

COMMENT QTY: Figs.

in MT VADINAR MAHARSHI PARSHURAM 30JUL15 CRUDE 50271 ANHCORAGE

FORMOSAPETRO CHALLENGER 29JUL15 CRUDE 193287 ANCHORAGE

VAD (ESSAR) SAETTA 31JUL15 LSFO 40000LDG ETC 03/08

JAG APARNA TRAFIGURA 31JUL15 MOGAS 60000LDG ETC 02/08

DIONA 25JUL15 CRUDE 283113 ETC 02/08

ATHINA S.ARAMCO 31JUL15 HSD 70000LDG ANCHORAGE

AFRAMAX RIVIERA 28JUL15 CRUDE 45707 ANCHORAGE

JAMNAGAR DESH PREM 31JUL15 CRUDE 90000 ETC PM01/08

DESH BHAKT 01AUG15 CRUDE 90000 ANCHORAGE

DHT HAWK 31JUL15 CRUDE 280000 ETC 03/08

BREEZY VICTORIA M.STANLEY 28JUL15 ATF 65000LDG ETC 02/08

FLAGSHIP IVY 22JUL15 NAPHTHA 60000LDG ETC 02/08

OCEAN QUEST GUNVOR 24JUL15 HSD 100000LDG ETC 02/08

HYUNDAI SUN 29JUL15 CRUDE 270000 ETC 02/08

MARTIME VANESSA 28JUL15 NAPHTHA 20000LDG ETC 02/08

PIKE 24JUL15 ATF 65000LDG ANCHORAGE

OLYMPIC SPIRIT 2 29JUL15 VGO 75000 ANCHORAGE

MARITIME RIYAL 29JUL15 NAPHTHA 20000LDG COASTAL

ELECTA 26JUL15 NAPHTHA 25000 ANCHORAGE

CSC CRYSTAL CARGILL 26JUL15 NAPHTHA 35000LDG ANCHORAGE

DESH GAURAV 16JUL15 CRUDE 86000 ANCHORAGE

SLOMAN HERA 27JUL15 HSD/ MOGAS 15000LDG COASTAL

FORMOSA P. CHALLENGER 27JUL15 CRUDE 60000 ANCHORAGE

JAG PUSHPA 28JUL15 HSD 40000LDG ANCHORAGE

OLYMPIC SPIRIT 2 29JUL15 VGO 75000 ANCHORAGE

EAGLE MELBOURNE 30JUL15 MOGAS 40000LDG ETC PM01/08

HERMITAGE BRIDGE GLENCORE 31JUL15 HSD 35000LDG ANCHORAGE

JAG PRANAV 01AUG15 HSD 90000LDG ANCHORAGE

STI LEXINGTON 01AUG15 HSD, MOGAS 40000LDG ANCHORAGE

MUNDRA EUROHOPE 01AUG15 CRUDE 137802 ANCHORAGE

KANDLA JAG PRABHA 01AUG15 HSD MOGAS 21000 ANCHORAGE

DAHEJ NIL

HAZ NIL

MUMBAI PYXIS THETA 31JUL15 NAPHTHA 35000LDG ETC 03/08

OAKTREE 31JUL15 MOGAS 25000LDG ETC PM01/08

SWARNA GODAVRI 31JUL15 CRUDE 50000LDG ETC AM02/08

CHANG HANG KAI TOU GUNVOR 30JUL15 NAPHTHA 30000LDG ANCHORAGE

A K AZAD 31JUL15 CRUDE 50000LDG ANHCORAGE

DAWN MANSAROVER 31JUL15 CRUDE 21000LDG ANCHORAGE

DAB NIL ANCHORAGE

JNPT FPMC 20 OTI 13JUL15 NAPHTHA 18000LDG ETC PM01/08

POSITION OF PETROLEUM TANKERS AT MAJOR PORTS –03 AUG - 2015

PetroMag Petroleum Bazaar.com 52

GP T1 21JUL15 F.OIL 12000LDG ANCHORAGE

SANMAR SERENADE 22JUL15 HSD/ MOGAS 22000 ANCHORAGE

SWARNA SWARAJYA 27JUL15 MOGAS 4600 ANCHORAGE

GOA NIL

KARWAR NIL

MANGALORE DESH SURAKSHA 30JUL15 CRUDE 97000 ETC PM01/08

SCIROCCO VITOL 26JUL15 HSD 66000LDG ANCHORAGE

UNITED JOURNEY 26JUL15 CRUDE 90000 ANCHORAGE

KOCHI VEDIKA PREM 31JUL15 HSD, MOGAS 22000, 15000 ETC 02/08

TUTICORIN NIL

CHENNAI FOURSMILE 16JUL15 CRUDE 129590 ETC AM03/08

DAWN HARIDWAR 01AUG15 HSD 8000 ETC 02/08

ERVIKEN 23JUL15 CRUDE 133818 ANCHORAGE

ENNORE MORHOLMEN PETROCHINA 30JUL15 MOGAS 12000 ANCHORAGE

VICTORY 28JUL15 HSD 13834 ANCHORAGE DAWN DWARKA 21JUL15 POL 11000 COASTAL

SANMAR STANZA 28JUL15 POL 35700 ANCHORAGE

KAKINADA NIL

VIZAG HANSA PREM 28JUL15 HSD, SKO 19566,18667 ETC 02/08

HELLAS EXPLORER 27JUL15 MOGAS 2000 ANCHORAGE

ATLANTIC MUSE UNIPEC 20JUL15 MOGAS 7868 ANCHORAGE

JAG PRERANA 21JUL15 MOGAS 6500 ANCHORAGE

PARADIP NIL

HALDA HARI SAGAR 29JUL15 MOGAS, HSD, SKO 6500LDD ETC 31/07

DAWNMATHURA 20JUL15 MOGAS/HSD 16984/10000LDG ETC 31/07

PRUDENT 12JUL15 HSD 15478 ANCHORAGE

AKAMAS 21JUL15 F.OIL 16500 ANCHORAGE

ALPINE MAYA 22JUL15 HSD 13645 ANCHORAGE

SWARNA PUSHP 24JUL15 SKO/MOGAS 6111/ 6548 ANCHORAGE

LOURDES 25JUL15 F.OIL 6500LDG ANCHORAGE

ORIENTAL RUBY 28JUL15 HSD 13594 ANCHORAGE

NORD NIGHTANGLE PETROCHINA 28JUL15 NAPHTHA 16500LDG ANCHORAGE

SANMAR MAJESTY 28JUL15 HSD 4000 ANCHORAGE

BBJ NIL ETC 01/08

PetroMag Petroleum Bazaar.com 53

Figs. in MT

PORT VESSEL ARRIVAL QTY(mts) LOAD PORT SUPPLIER RCVRS REMARKS

KANDLA NIL EXPECTED

MAGDALLA NIL ANCHORAGE

DAHEJ NANGA PARVAT 27/07 10000 SIKKA RIL RIL ETC 29/07

SIKKA NIL MUMBAI WARINSART 28/07 8000 SOHAR SHV AEGIS ANCHORAGE

COURCHVILLE 16/07 5000 SIKKA RIL RIL ANCHORAGE

JNPT M.KRISHNATREYA 18/07 15000 RUWAIS ADNOC BPCL ANCHORAGE

VAMADEVA 23/07 15000 RASLAFFAN QATAR INT'L IOCL ANCHORAGE

HISUI 25/07 15000 RASLAFFAN QATAR INT'L BPCL ANCHORAGE

GOA NIL MANGALORE IGLC DICLE 21/07 20000 RASTANURA ARAMCO IOCL ETS28/07

JAG VISHNU 10/07 23000 RASLAFFAN QATAR INT'L IOCL ANCHORAGE

KOCHI NIL EXPECTED TUTICORIN NIL

CHENNAI NIL ANCHORAGE

KAKINADA NIL ENNORE AURORA TAURUS 11/07 46146 RASLAFFAN QATAR INT'L IOCL ANCHORAGE

ORIENTAL QUEEN 16/07 23800 RASLAFFAN QATAR INT'L IOCL ANCHORAGE

SISOULI PREM 12/07 44704 RASLAFFAN QATAR INT'L IOCL ANCHORAGE

VIZAG M.BHARDWAJ 10/07 28400 RASLAFFAN QATAR INT'L IOCL ETC30/08

ARTEMIS 15/07 45574 RASLAFFAN QATAR INT'L IOCL ANCHORAGE

KAILASH GAS 21/07 - RASLAFFAN QATAR INT'L IOCL ANCHORAGE

PARADIP NIL HALDIA THETISGLORY 11/07 17500 RASLAFFAN QATARINT'L IOPL ETS29/07

MONSOON 23/07 19226 YANBU - IOPL ANCHORAGE

VENUS GLORY 26/07 18200 RASTANURA ARAMCO IOCL ANCHORAGE

ARTEMIS 04/08 17000 RASLAFFAN QATAR INT'L IOCL EXPECTED

AURORA TAURAS 05/08 19740 RASLAFFAN QATAR INT'L IOCL EXPECTED

M.BHRDWAJ 19/07 -- RASLAFFAN QATARINT'L IOPL EXPECTED

KANDLA NIL EXPECTED

MAGDALLA NIL ANCHORAGE

DAHEJ NIL EXPECTED

SIKKA NIL ANCHORAGE

POSITION OF LPG TANKERS AT MAJOR INDIAN PORTS- 29 JULY 2015

PetroMag Petroleum Bazaar.com 54

BASIC PRICE in INR W. E. F. 17.07.2015

No. Product Selling

Unit Mumbai

(with St. Sur)

1 HSD FDZ KL 45418.95

2 MS FDZ KL 56624.52

3 SKO (IND) KL 41779.00

4 FO (GEN) MT 25107.52

5 FO (Guj) MT 24973.05

6 HVFO MT 24717.52

7 LDO KL 33939.00

8 LSHS(GEN) MT 26608.00

9 NAPHTHA (GEN) MT 38048.00

10 SCN (REF.NAP) MT 38298.00

11 LABFS KL 34538.22

12 SBP KL 50700.00

13 HEXANE KL 41100.00

14 MTO KL 48355.00

15 BENZENE MT 54760.00

16 TOLUENE MT 58800.00

17 MOLT SULPHUR MT 11100.00

18 BITUMEN PACKED – 80/100 MT 35808.00

19 BITUMEN BULK – 80/100 MT 32708.00

20 BITUMEN PACKED – 60/70 MT 36608.00

21 BITUMEN BULK – 60/70 MT 33508.00

22 BITUMEN PACKED – 30/40 MT 37828.00

23 BITUMEN BULK – 30/40 MT 34728.00

24 BIODIESEL KL 53000.00

Location

NAPHTHA LSHS FURNACE OIL ATF KEROSENE

(W.E.F. (W.E.F. (W.E.F. (W.E.F. W.R.F

(01/07/2015) 01/07/2015 01/07/2015 01/07/2015 19/05/15

Delhi 40870 28200 26800 51267.35 12.73

Kolkata 40710 28320 26820 60781.86 12.27

Mumbai 40160 27590 26090 52592.75 12.28

Chennai 40530 28090 26590 56522.06 11.5

PRICE OF PETROLEUM PRODUCTS [Revised fortnightly]

PetroMag Petroleum Bazaar.com 55

(Prices in Rs./Litre)

Location

HSD MS LPG

(Non-subsidised) LPG LPG Auto Gas

(W.E.F. (W.E.F. Per 14.2 kg. Cylinder Per 14.2 kg. Cylinder Per 19.0 kg. Cylinder (W.E.F.

(01/08/2015) 01/08/2015 01/08/2015 01/08/2015 17/06/2015 17/06/2015

Delhi 46.12 64.47 585 417.82 1046.5 40.16

Kolkata 49.66 69.15 619 419.82 1130.5 44.65

Mumbai 51.29 69.51 599 458.23 1111.5 44.87

Chennai 47.30 64.77 603.5 405.32 1234.5 42.07

Location HSD MS

(W.E.F. (W.E.F. 01/08/2015 01/08/2015

Agartala 44.24 60.82

Gandhinagar 49.49 61.14

Aizwal 43.89 65.62

Ambala 46.49 68.05

Bengaluru 48.77 68.24

Bhopal 50.93 63.63

Bhubhaneswar 49.05 63.42

Chandigarh 46.84 65.36

Dehradun 49.06 67.76

Gangtok 48.56 65.3

Guwahati 46.74 64.42

Hyderabad 50.27 69.82

Imphal 44.38 61.07

Itanagar 44.19 61.5

Jaipur 49.12 67.41

Jammu 47.48 67.72

Jullunder 46.53 70.61

Kohima 44.88 63.71

Lucknow 51.6 71.68

Panjim 48.19 59.12

Patna 49.7 68.9

Pondicherry 46.65 61.36

Port Blair 42.61 55.32

Raipur 49.25 63.9

Ranchi 49.15 63.45

Shillong 45.75 62.67

Shimla 46.68 66.63

Srinagar 49.62 70.4

Trivandrum 50.62 69.45

RETAIL SELLING PRICES OF MS HSD [Revised fortnightly]

PetroMag Petroleum Bazaar.com 56

EXCISE DUTY RATES EFFECTIVE 01.03.2015 VIDE NOTIFICATION NO. 12/2015-CE DATED 01.03.2015, NOTIFICATION No. 14/2015-CE DATED\

01.03.2015 AND NOTIFICATION NO. 15/2015-CE DATED 01.03.2015

EFFECTIVE 01.03.2015 0:00 HRS Education Cess @ 2% and Secondary and Higher Education Cess @1% leviable on all excisable goods are being merged with

Basic Excise Duty Rates w.e.f 01.03.2015

Tariff Heading Description of Excisable

goods Rate incl. EC & SHEC

effective till 28.02.2015 New Excise Duty Rates

effective 01.03.2015

2503 00 10

SULPHUR - recovered as by

product in refining of crude

oil 12.36% 12.5% 2701 All goods 1.03% 1% 2710 Avgas 6.18% 6%

2710 12 19 Motor spirit commonly known

as petrol,-

(i) intended for sale without a

brand name;

Rs.8.95 per litre+ AED of RS.

2/- per litre+SAD of Rs.6/-per

litre +2% Ed. Cess and 1%

SHEC

Rs.5.46 per litre+ AED of Rs.

6/- per litre+SAD of Rs.6/-per

litre

(ii) other than those specified

at (i)

Rs.10.10 per litre+ AED of

Rs. 2/- per litre + SAD of Rs.

6/-per litre +2% Ed. Cess and

1% SHEC

Rs.6.46 per litre+ AED of Rs.

6/- per litre + SAD of Rs. 6/-

per litre

2710 19 30 High speed diesel (HSD),-

(i) intended for sale without a

brand name;

Rs.7.96 per litre+ AED of Rs.

2/- per litre + 2% Ed. Cess

and 1% SHEC Rs.4.26 per litre+ AED of Rs.

6/- per litre

(ii) other than those specified

at (i)

14% +Rs. 15 per litre or Rs.

10.25 per litre whichever is

lower + AED of Rs.2/- per

litre +2% Ed. Cess and 1%

SHEC Rs. 6.62 per litre+ AED of

Rs.6/- per litre

2710 19 30 HSD for bunker supplies to

Coastal Vessel Nil+ AED of Rs. 2/- per litre +

2% Ed. Cess and 1% SHEC Nil+ AED of Rs. 2/- per litre

2710 19 30 HSD for bunker supplies to

Indian Navy / Coast Guard

Nil + Additional duty of

Rs.2.00 per ltr. +2% Ed. Cess

and 1% SHEC Nil + Additional duty of

Rs.2.00 per ltr.

2710 19 10

Kerosene for ultimate sale

through public distribution

system Nil Nil 2710 19 10 SKO (Other than PDS) 14.42% 14% 2710 12 12 Food grade hexane 14.42% 14% 2710 19 20 Aviation turbine fuel 8.24% 8%

2710 12 20 Natural Gasoline for general

use 14.42% 14% 2710 12 11 SBP (55-115C) 14.42% 14%

2710 12 13

SBP- Other Special Boiling

Point Sprit (Other than

Benzene, Benzol Toluene and

Toluol) 14.42% 14%

2710 12 19 Reformate 14%+Rs.15/- per litre + 1%

Ed. Cess and 2% SHEC 14%+Rs.15/- per litre 2710 12 19 Naphtha for General Use 14.42% 14%

2710 19 20 ATF supplied to aircraft on

foreign run NIL NIL

2710 19 20 ATF supplies to aircraft on

domestic run 8.24% 8%

2710 19 40 LDO for general use 14% + Rs.2.50 per ltr. +1%

Ed. Cess and 2% SHEC 14% + Rs.2.50 per ltr.

2710 19 40 LDO for bunker supplies to

Coastal Vessel 14% + Rs.2.50 per ltr. +1%

Ed. Cess and 2% SHEC 14% + Rs.2.50 per ltr.

2710 19 50 Furnace Oil (Including

supplies to Coastal Bunkers) 14.42% 14%

2710 19 60 Lube Oil Base Stocks &

Transformer Oil Base Stocks 14.42% 14% 2710 19 70 Jute Batching Oil 14.42% 14%

The rate of Excise duty on various I&C products wef 01.03.2015

PetroMag Petroleum Bazaar.com 57

2710 19 80

Lubricating Oil and Greases

(In bulk or > 25 litres/KG

packs) 14.42% 14%

2710 19 80

Lubricating Oil and Greases

(packed in 25 litres/KG or

lower packs) 14.42% on (MRP less 35%) 14% on (MRP less 35%) 2710 19 90 Flushing Oil 14.42% 14% 2713 90 00 LSHS for general use 14.42% 14% 2710 19 90 MINERAL TURPENTINE OIL 14.42% 14% 2711 11 00 Liquefied Nathural gas Nil Nil

2711 12 00 Liquefied petroleum gases

(LPG) 8.24% 8% 27111400

Ethylene, propylene, butylene

and butadiene 14.42% 14%

2711 19 00 Bharat Metal Cutting gas

(BMCG) 14.42% 14% 2712 20 00 WAXES 14.42% 14% 2712 10 90 PETROLEUM JELLY 14.42% 14%

2713 11 00 PETROLEUM COKE (not

calcined) 14.42% 14% 2713 12 00 PETROLEUM COKE (calcined) 14.42% 14% 2713 20 00 Petroleum Bitumen 14.42% 14%

2715 00 10 Bituminous Mixtures Based

on Natural Asphalt 14.42% 14%

2713 90 00

Other residues of petroleum

oils or oils obtained from

bitumineous minerals 14.42% 14%

2715 00 10 Bituminous Mixtures

including Emulsions 14.42% 14% 2711 14 00 ETHYLENE 14.42% 14% 2804 10 00 Hydrogen 12.36% 12.5% 2901 22 00 Propylene 12.36% 12.5% 2902 20 00 BENZENE 12.36% 12.5% 2902 30 00 TOLUENE 12.36% 12.5% 2902 30 00 ZYTOL 12.36% 12.5% 2901 29 90 PP FEED STOCKS 12.36% 12.5%

2909 19 00 METHYL TERTIARY BUTYL

ETHER 12.36% 12.5%

3403 19 00

LUBRICATING PREPARATIONS

(HAVING LESS THAN 70% OF

MINERAL OIL CONTENT) (In

bulk or > 25 litres/KG in

packs) 12.36% 12.5%

3403 19 00

LUBRICATING PREPARATIONS

(HAVING LESS THAN 70% OF

MINERAL OIL CONTENT)

(Packed in 25 litres/KG or

lower packs) 12.36% on (MRP less 30%) 12.5% on (MRP less 30%)

3819 00 10

HYDRAULIC BRAKE FLUID (In

bulk or > 25litres/KG

package) 12.36% 12.5%

3819 00 10

HYDRAULIC BRAKE FLUID

Packed in 25litres/KG

package or less 12.36% on (MRP less 35%) 12.5% on (MRP less 35%) 3902 20 00 Polyisobutelene 12.36% 12.5%

PROCURED PRODUCT

2207 20 00 Ethanol 12.36% 12.5% 3811 19 00 Anti-knock Preparations 12.36% 12.5% 3811 29 00 Additives for Lubricating Oils 12.36% 12.5% 7311 00 10 LPG Cylinder 12.36% 12.5%

7310 10 90 Asphalt drum/metal

containers 12.36% 12.5%

PetroMag Petroleum Bazaar.com 58

Bitumen FOB Price (Intl.) Revised Monthly (18-07-15)

Country Bulk Drum Iran 305 – 320 365 – 395 Bahrain 380 * Thailand 365 – 375 520 – 530 Singapore 355 – 365 * Japan 360 – 370 * Taiwan 345 – 355 *

Bitumen FOB Price (Intl.) Revised Monthly (18-07-15)

BITUMEN (BULK) GRADES

PORTS VG-10 VG 30 VG-40

PORT REF(Mumbai) 31490 32290

KOCHI 31490 32290

KOYALI 31490 32290

MATHURA 32690 33490

PANIPAT 32990 33790

HALDIA 30790 31590 32860

CHENNAI 31590 32390

BARAUNI 31820 32620

BITUMEN (PACKED) GRADES

PORT REF(Mumbai) 34490 35290

KOCHI 34490 35290

KOYALI 34490 35290

MATHURA 35690 36490

PANIPAT 35990 36790

HALDIA 34590 35390

BITUMEN PRICES- INTERNATIONAL Grade 60/70 & 85/100 in USD

FOB prices for Export Cargo Grade 60/70 & 85/100 in USD./MT

BITUMEN PRICES – NATIONAL Revised Monthly (16-05-15)

PetroMag Petroleum Bazaar.com 59

BHAV COPY – MULTI COMMODITY EXCHANGE (MCX)

Date: 31-07-2015

Commodity Contract

Month Open Today‘s Today‘s

Close PCP Volume Value Open interest

‗000 (Rs) High Low (Rs) (MT)/bbl (Rs.Lakhs)

CRUDEOIL 19/1/2016 3333 3333 3333 3333 3434 0.100 3.33 6

CRUDEOIL 18/12/2015 3329 3329 3277 3303 3359 0.600 19.82 18

CRUDEOIL 19/11/2015 3272 3275 3216 3259 3317 0.500 16.29 32

CRUDEOIL 19/10/2015 3206 3224 3140 3148 3245 12.800 407.59 226

CRUDEOIL 21/9/2015 3148 3165 3077 3085 3175 616.600 19243.76 2683

CRUDEOIL 19/8/2015 3121 3121 3030 3038 3132 16530.100 508320.1 19184

NATURALGAS Contract

Month

Open Today‘s Today‘s Close

PCP Volume Value Open interest

‗000 (Rs) High Low (Rs) (MT)/bbl (Rs.Lakhs)

NATURALGAS 25/9/2015 189.9 190.4 186 186.6 190 80.000 151.03 123

NATURALGAS 26/8/2015 182 182.5 177.8 178.1 181.7 1337.500 2409.64 441

NATURALGAS 28/7/2015 179.4 179.7 174.5 174.8 178.8 36870.000 65393.65 8198

MCX BHAV COPY

PetroMag Petroleum Bazaar.com 60

Tenders for the Month of JULY, 2015

Tender Name Tender Authority Nature Of Work Tender Number Due Date

Laser Alignment Kit for Paradip

Refinery Project

( Asst. General Manager ) -

C&P

Engineers India Ltd.,

Tower-1, 1st Floor, Sector-16,

Gurgaon – 122001

091-124-3802000 / 2099 /

2136

Bids were invited for laser

alignment kit for Paradip

Refinery Project at Paradip in

Jagatsingpur district of

Odisha.

AKT/A317/1005-ML-MR-

013/41 02-Jul-2015

Construction of Residential Buildings,

Service Buildings for Firefighting

Station at Bina Project

( General Manager )

Northern Coalfields Ltd.,

Civil Engineering Department,

PO: Singrauli Colliery,

Singrauli, - 486889

07805-256431 / 266588

Bids were invited for

construction of residential

buildings, service buildings

and development work for

firefighting station at Bina

project in Sagar district of

Madhya Pradesh.

GM(C)/SGR/15-16/ETN-20

Date:14.05.2015 05-Jun-2015

Waste Heat Recovery System at

Visakhapatnam Refinery

( Dy. General Manager )

Hindustan Petroleum Corpn.

Ltd.,

Visakh Refinery, Malkapuram,

Visakhapatnam – 530011

0891-2894331 / 2894325

Bids were invited for waste

heat recovery system at

Visakhapatnam Refinery in

Andhra Pradesh.

15000019-HD-46009 05-Jun-2015

Mechanical, Civil, Structural, Insulation

of LGOCR vs Crude Heat Exchangers at

Haldia Refinery

( Chief Manager )

Indian Oil Corpn. Ltd.,

Refineries Division, Haldia

Refinery,

Midnapore

03224-253023 / 223626 /

223644

misrap@indianoil.in

Bids were invited for

mechanical, civil, structural,

insulation and other allied

jobs for installation of LGOCR

vs Crude heat exchangers in

2nd crude distillation unit

(CDU-II) at Haldia refinery in

Midnapore district of West

Bengal.

HMLKG15050 06-Jun-2015

Hiring of Natural Gas Compression

Services at GGS-North Gandhar

[Corrigendum]

Oil & Natural Gas Corpn. Ltd.,

Material Management

Department, Ankleshwar

Asset, Ankleshwar,

Bharuch

Bids were invited for hiring of

natural gas compression

services at GGS-North

Gandhar for A capacity of

55000 to 60000 SCMD for A

Period of three (3) years in

Gujarat.

A16VC15001 08-Jun-2015

Replacement of Approx 72 Km, 22 OD

Operational Pipeline Section of Mundra-

Panipat Pipeline

( Dy. General Manager ) -

(Contracts)

Indian Oil Corpn. Ltd.,

Noida

120-2448410/ 407

Bids were invited for

replacement of approx 72 km,

22 OD operational pipeline

section of Mundra-Panipat

pipeline.

PLCC/MPPL RPL/CL/1515 08-Jun-2015

Intelligent Pigging of KG Basin Pipelines

in Line with SOP (GT)

GAIL (India) Ltd.,

GAIL Bhavan', A.V.A. Boad,

Rajahmundry,

East Godavari – 533103

Bids were invited for

intelligent pigging of KG Basin

pipelines in line with SOP.

GAIL/3130/56573/2015/SR

-05 (8000008022)

Date:08.05.2015

08-Jun-2015

Pipeline Laying Works of Laying &

Construction of Steel Pipeline for

Spurlines of Jagdishpur-Phulpur-Haldia

Pipeline Project (GT)

( Dy. General Manager ) –

Contracts

Mecon Ltd.,

Scope Minar,

Delhi – 110092

011-22401146 / 22401143

/ 22401144

cont-delhi@meconlimited.co.in

Bids were invited for pipeline

laying works of laying &

construction of steel pipeline

for spurlines of Jagdishpur-

Phulpur-Haldia pipeline

project (PH-1A)

05/51/U999GAIL/001(I)

(8000007938) 09-Jun-2015

EPCM Services for BS-IV Project at

Gujarat Refinery

Indian Oil Corpn. Ltd.,

Refineries Division,

Headquarters, New Delhi,

Delhi

011-71725713/ 71725435

Bids were invited for EPCM

services for BS-IV project at

Gujarat Refinery.

RHQCC15013 08-Jun-2015

Consultancy Services for Elevated LPG

Hot Flare System at Bina Dispatch

Terminal (BC)

Bharat Petroleum Corpn. Ltd.,

Engineering & Projects

Department,

E&P-Major Projects, First

Floor, A-5&6, Sector-1, Noida,

Bids were invited for

consultancy services for

elevated LPG hot flare system

at Bina Dispatch Terminal in

Sagar district of Madhya

1826 Date:19.05.2015 09-Jun-2015

TENDERS

PetroMag Petroleum Bazaar.com 61

Gautam Budh Nagar –

201301

bpcleproc.in

Pradesh.

Processing of Oily Sludge to Recover

Slop Oil in 2015-16 at Haldia Refinery

( Chief Manager )

Indian Oil Corpn. Ltd.,

Refineries Division, Haldia

Refinery,

Midnapore

03224-253023 / 223626 /

223644

misrap@indianoil.in

Bids were invited for

processing of oily sludge to

recover slop oil in 2015-16 at

Haldia refinery in Midnapore

district of West Bengal.

HGNKG15042 10-Jun-2015

Civil & Structural Jobs for Offsite Works

for FPU Project in Haldia Refinery

( Chief Manager )

Indian Oil Corpn. Ltd.,

Refineries Division-Haldia

Refinery,

Midnapore

03224-223640 / 253023 /

223626 / 223687

misrap@indianoil.in

Bids were invited for civil and

structural jobs for offsite

works for FPU projects in

Haldia Refinery in Midnapore

district of West Bengal.

- 11-Jun-2015

Repair & Maintenance of

Miscellaneous Civil Work in Sector-B &

C Colony at Dudhichua Project

( General Manager )

Northern Coalfields Ltd.,

Civil Engineering Department,

PO: Singrauli Colliery,

Singrauli, - 486889

Bids were invited for repair &

maintenance of

miscellaneous civil work in

Sector-B & C colony for 24

months time period at

Dudhichua project in Singrauli

district of Madhya Pradesh.

GM(C)/SGR/15/ETN-22

Date:16.05.2015 12-Jun-2015

Painting of Equipment, Structurals &

Piping in DHDS Unit, Merox-1 & 2 Units

at Visakhapatnam Refinery

( Chief Manager )

Hindustan Petroleum Corpn.

Ltd.,

Visakh Refinery, Malkapuram,

Visakhapatnam - 530011

Bids were invited for painting

of equipment, structurals and

piping in DHDS unit, Merox-1

& 2 units and D-SRU block

excluding Tr-3 at

Visakhapatnam Refinery in

Andhra Pradesh.

15000178-HD-46002/AG 12-Jun-2015

Pipelines & Equipment Painting Works

at PMHBL Mangaluru & Neriya Stations

( Dy. Manager )

Petronet MHB Ltd.,

No.332, 1st Floor, Darus

Salam Building,

Queen's Road,

Bengaluru – 560052

080-22262241 / 22262243

/ 2262316

Bids were invited for pipelines

& equipment painting works

at PMHBL Mangaluru & Neriya

stations in Karnataka.

PMHBL/ENQ/PAINTING/15-

16/15 15-Jun-2015

Renovation of B & BL Type Quarters in

Gujarat Refinery Township

( Chief Manager ) – Contracts

Oil India Ltd.,

Refineries Division, Gujarat

Refinery,

Vadodara

0265-2237181 / 82

0265-2233380

Bids were invited for

renovation of B & BL type

quarters in Gujarat Refinery

Township.

JC15CLT136 17-Jun-2015

Cleaning, Grit Blasting & Painting of

Various Tanks under M&I at Mathura

Refinery

( Chief Manager )

Indian Oil Corpn. Ltd.,

Refineries Division, Mathura

Refinery,

Mathura

0565-2417377 / 2417374 /

2417373

Bids were invited for cleaning,

grit blasting & painting of

various tanks under M&I at

Mathura Refinery in Uttar

Pradesh.

MRCC15C019/042 17-Jun-2015

Empanelment of Contractors for Civil

Maintenance in Pump Station /

Terminal Stations / CP & RCP Stations

for Northern Region Pipeline, Panipat

(EoI)

( Chief Manager ) - T&I/TS

Indian Oil Corpn. Ltd.,

Pipelines Division-NRPL

Panipat,

Panipat

0180-2578890 / 2578870

manjeet@indianoil.in

EoI was invited for

empanelment of contractors

for annual rate contract for

civil maintenance in pump

station / terminal stations /

CP and RCP stations for

Northern Region Pipeline,

Panipat in Haryana.

NRPL/PNP/TS/2015-16/17

(Group-1) 22-Jun-2015

Drilling Waste Disposal Services

Package for Cambay Basin Oil/Gas

Exploration Block CB-ONN-2009/5 at

Ahmedabad & Mehsana

( Additional General Manager )

- Contract Services-II

NTPC Ltd., 6th Floor,

Engineering Office Complex,

A-8A, Sector-24, Noida,

Gautam Budh Nagar –

201301

0120-2410583 / 4946663

Bids were invited for drilling

waste (drill cuttings & drilling

waste mud) disposal services

package for cambay basin

Oil/Gas exploration block CB-

ONN-2009/5 at Ahmedabad

and Mehsana district in

Gujarat.

CS-8001-722M-9

(40038613)

Date:07.05.2015

24-Jun-2015

PetroMag Petroleum Bazaar.com 62

Testing & Workshop Equipment for

Paradip Refinery Project

Chief Materials Manager

(Projects)

Indian Oil Corpn. Ltd.,

Refineries Division HQ, New

Delhi,

Delhi011-71725765 /

71725232 / 71725682

sahais@indianoil.in

Bids were invited for testing

and workshop equipment for

Indian Oil's Paradip Refinery

Project in Jagatsingpur district

of Odisha.

PDRPIOCP46 25-Jun-2015

Operation & Maintenance of IOCs JNPT

Terminal, Mumbai

( Dy. General Manager ) -

(Ops)

Indian Oil Corporation Ltd.,

Marketing Division, Indian Oil

Bhavan-BKC, Plot No. C-33, G-

Block, Bandra Kurla

Mumbai Suburban – 40051

Bids were invited for operation

& maintenance of IOCs JNPT

Terminal, Mumbai in

Maharashtra.

MSO/OPS/PT/O&M/JNPT/20

15-17/R 29-Jun-2015

Provision of Drilling Services &

Tangibles (RJ-ON-90/1 block) (GT) (EoI)

[Corrigendum]

Cairn India Ltd., 3rd & 4th

Floor,

Vipul Plaza, Suncity, Sector

54,

Gurgaon

124-4593000

cilmedia@cairnindia.com

EoI was invited for pre-

qualification for provision of

drilling and petroleum

engineering services and

tangibles in RJ-ON-90/1 block

- 30-Jun-2015

PetroMag Petroleum Bazaar.com 63

Events Details Contact

Date

mm/dd/yyyy

European Association of

Geoscientists & Engineers

Petroleum Geostatistics

Biarritz, France

www.eage.org/event/index.php?eventid=1155&Op

endivs=s3 09/07/2015 - 09/11/2015

Gabon Local Content

Summit

Libreville, Gabon

www.gabon-local-content.com 07/06/2015 - 07/08/2015

SPE Latin American and

Caribbean Health, Safety,

Environment and

Sustainability Conference

Bogota , Colombia

http://www.spe.org/events/lahs/2015/ 07/07/2015 - 07/08/2015

API Offshore Safe Lifting

Conference & Expo

Houston

www.api.org 07/14/2015 - 07/15/2015

API Offshore Safe Lifting

Conference & Expo

Houston TX , United States

http://www.api.org/events-and-training/calendar-

of-events/2015/offshore 07/14/2015 - 07/15/2015

SPE Nigeria Annual

International Conference &

Exhibition

Lagos , Nigeria

http://www.spe.org/events/calendar/ 08/04/2015 - 08/06/2015

EnerCom's Oil & Gas

Conference

Denver

www.rmesummit.org 08/16/2015 - 08/20/2015

World LNG Series: Asia

Pacific Summit

Singapore

www.asiapacific.cwclng.com 09/08/2015 - 09/11/2015

Upstream & Downstream

Oil & Gas Exhibition &

Conference

Abuja, Nigeria

www.oilandgasexpos.com 09/22/2015 - 09/24/2015

SPE Middle East Intelligent

Oil & Gas Conference &

Exhibition

Abu Dhabi

www.spe.org/events/ieme/2015/ 09/15/2015 - 09/16/2015

Pipeline Week

The Woodlands www.pipelineweek.com 09/15/2015 - 09/17/2015

GPA Europe Annual

Conference

Florence,

www.gpaeurope.com 09/16/2015 - 09/18/2015

Mozambique Gas Summit

Maputo, Mozambique www.mozambique-gas-summit.com 09/21/2015 - 09/24/2015

LNG Global Congress

Conference (LNGgc)

London

www.lnggc.com 09/22/2015 - 09/25/2015

EVENTS

PetroMag Petroleum Bazaar.com 64

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