Shares in state-run Oil India Ltd fallafter the company reported a 26 percent fall in its Jan-March net profit. Oil India stock was down 2.5 per cent as of 10:57 a.m.Domestic brokerage Motilal Oswal Securities said Oil India's profit was significantly below estimates on lower oil and gas production and higher-than-expected subsidy.Oil India shares had surged 21.3 per cent this month until Tuesday (27 May) along with other state-run companies on hopes of an economic revival and cheap valuations compared to private sector rivals.(Reuters)
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Shares in Larsen & Toubro Ltd fell as much as 3.5 per cent after the Economic Times newspaper reported India's biggest engineering firm, was going to trim its Rs 1700 crore (Rs 1.7 trillion) order book by about 10 per cent, without specifying how it got to the estimates."We have five projects where we feel that the developers have not been able to resolve issues with the government. We feel it is prudent to remove these orders from the order book since things have not moved for two years or more," L&T's director and the head of construction and infrastructure unit, SN Subrahmanyan, told the paper.A company spokesman declined to comment on the size of any potential write-off, but said L&T periodically assesses the health of its order book.(Reuters)
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Oman is considering buying a 10-15 per cent stake in Petronet LNG's proposed plant on India's east coast, the Gulf nation's oil minister Mohammed bin Hamad Al Rumhy said on Wednesday (02 April)."We have not decided on (the) stake. It will be a small (stake) - maybe 10-15 per cent," Rumhy said, adding the two sides had been engaged in talks for the past two months.Petronet, which supplies liquefied natural gas (LNG), aims to build a 5 million tonne a year LNG terminal at Gangavaram, on the east coast, by 2016.The visiting minister also said the energy-hungry nation aims to get 1 billion cubic feet of gas per day from Iran from 2017/18, under a long-term agreement, if the plan materialises.(Reuters)
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Hindustan Petroleum Corp Ltd (HPCL) has offered gasoline for export in a rare move as it will shut gasoline production facilities at its Vizag refinery for about a month starting April, a company official said on Monday (31 March)."We will be shutting a CCR (continuous catalytic reformer, FCC NHT (fluidized catalytic cracker cum naphtha hydrotreater) and an isomerisation unit for planned maintenance of 30 to 35 days from April 10," the company official said.He added that the shutdown of the gasoline making units would result in the production of high sulphur gasoline that cannot be sold in India.The units at the plant, located in Southern India, produce about 120,000 to 130,000 tonnes of gasoline a month, he added.HPCL will sell the 25,000- to 30,000-tonne 90-octane grade gasoline for April 26-28 loading from Vizag through a tender valid until April 1, a trade source added.(Reuters)
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Reliance Industries and its partners should continue to sell gas at current prices from its D6 block following a delay to a new pricing regime ordered by the Election Commission of India, a government source said on Friday. Reliance's five-year gas sales pacts with sectors including fertiliser makers and power will expire on March 31, requiring buyers to sign new contracts for supplies from its D6 block in the Krishna Godavari basin. "$4.2 (per million British thermal unit or mmBtu) will continue to be in force until the Code of Conduct is lifted," said the source, referring to rules restricting policy shifts before elections. India goes to the polls on April 7. The oil ministry informed the upstream regulator - the Directorate General of Hydrocarbons (DGH) - of the pricing decision after it was cleared by Oil Minister Veerappa Moily on Friday. "The DGH will have to now inform the companies concerned," said the source, who requested anonymity due to the sensitivity of the matter. Both Reliance and the upstream regulator declined immediate comment. The Election Commission asked the government to defer an increase in gas prices until the completion of the five-week general election in the middle of May. The cabinet last year approved a formula, linking prices of locally produced gas with global benchmarks, that could have nearly doubled gas prices from the current $4.20 per mmBtu. The main opposition party Bharatiya Janata Party (BJP), which surveys show is on course to become the largest parliamentary party, has said it would review the gas pricing formula if elected. Demand for gas in India far outstrips domestic supply, but the government has kept prices below global market levels for producers of fertiliser and electricity, deterring investment in domestic exploration and production. India, the world's fourth-largest energy consumer, has few energy resources other than coal, which meets 56 percent of its energy needs. Gas output from the D6 block has fallen sharply since 2010. Reliance says the decline is due to the geological complexity of the block while the government believes contractors have failed to drill the promised number of wells. The block, in which BP has a 30-percent stake and Canada's Niko Resources owns 10 per cent, currently produces about 13 million cubic metres of gas per day, the source said. A fertiliser industry source said industry buyers would sign an agreement with Reliance at $4.2 per mmBtu, once minor details regarding marketing margins and credit terms are resolved. (Reuters)
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The Delhi High Court on Thursday (14 May) sought response of the Centre and Reliance Industries Ltd on a plea by state-owned Oil and Natural Gas Corporation (ONGC) which has accused the Mukesh Ambani-led group of exploiting gas from its natural gas block in Krishna-Godavri basin. Justice Manmohan issued notice to the Ministry of Petroleum and Natural Gas, Directorate General of Hydrocarbons and RIL on ONGC's petition in which the PSU has contended that RIL has drawn out 18 billion cubic meters of natural gas from the combined reserves of both companies since 2009. "The present petition is necessitated in view of bona fide belief on the part of the petitioner (ONGC), based on the seismic data made available by Respondent 3 (RIL) very recently in 2013-14 which suggests that while exploiting its own block and operating four wells for that purpose, RIL has exploited not only natural gas within its Block but has exploited substantial natural gas from Blocks in the control of ONGC. "In effect, RIL has, as is recently believed, taken out gas running into approximately 18 billion cubic metres (bcm) quantity between the years 2009 to September 2013 and continues to do so even till date from the combined gas reserves of ONGC and RIL," the PSU's petition has said. The court listed the matter for further hearing on May 29. ONGC has claimed that of the said total quantity of gas exploited by RIL from its block adjoining that of the PSU, more than half belongs to it. ONGC has sought directions to the government to set up an independent agency to ascertain the amount of gas drawn out by RIL and how much of it belongs to ONGC and whether the PSU is entitled to compensation. It has alleged the current situation arose due to lack of vigilance on the part of the ministry and directorate general of hydrocarbons and their failure to take precautionary measures has resulted in loss of several thousands of crores of rupees to ONGC. ONGC has also accused the government and RIL of not having followed the mechanism internationally accepted for joint development and which has been expressly provided in the Production Sharing Contract (PSC) signed between the ministry and RIL. It has submitted that owing to the fact that the blocks of RIL and ONGC were adjacent to each other, the government should have ordered that they be jointly exploited by both of them. ONGC has also sought directions to RIL to give an undertaking that it would compensate the PSU if the Mukesh Ambani-led group is held liable for the same. It has also sought directions to RIL to "submit full accounts of the gas produced and to be produced and sold and to be sold and the values thereof from its four wells for the period from the date of actual production till date and for future production...". (Agencies)
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CNG price in the national capital was cut by a steep Rs 14.90 per kg and cooking gas piped into kitchens by Rs 5 per unit with effect from midnight tonight.Compressed Natural Gas, or CNG, will cost Rs 35.20 per kg from tomorrow as against the current rate of Rs 50.10 per kg.Rates of piped natural gas (PNG) that households use for cooking, was cut by Rs 5 per standard cubic meters (scm) per day. This is the first reduction in fuel rates in almost six years. CNG rate was cut in March 2008 when prices were cut by 30 paise following a reduction in excise duty.However, the relief may be temporary, as the domestic natural gas prices will almost be doubled to $8-8.2 from April 1. The rate hike may translate into a CNG price increase of Rs 10.6 per kg and PNG rates of Rs 8/scm.PNG rate cut was for both the consumption slabs.Simultaneously, Indraprastha Gas Ltd - the firm that retails CNG and PNG in the national capital region, announced 20 per cent increase in quantity in the lower consumption slab.Consumer price of PNG to households in Delhi in the lower slab is being cut from Rs 29.50 per scm for consumption upto 30 scm in two months to Rs 24.50 per scm for consumption of up to 36 scm in two months with effect from February 8, 2014.In the higher slab, for consumption beyond 36 scm in two months, applicable rate in Delhi would be Rs 47/scm, which was earlier Rs 52/scm beyond consumption of 30 scm in two months.The rate cut follows oil ministry's decision to give city gas distribution firms cheaper domestic gas to meet all their needs for CNG and PNG supplies compared to the previous limit of 80 per cent for most states.As a result, CNG price in Noida, Greater Noida and Ghaziabad has been cut by Rs 16.5 per kg to Rs 40.15 per kg.Due to differential tax structure in Uttar Pradesh, the applicable price of domestic PNG in the lower slab to households in Noida, Greater Noida and Ghaziabad would be Rs 26.20/scm upto consumption of 36 scm in two months. This has been reduced from existing Rs 31/scm for consumption upto 30 scm in two months.In the higher slab, for consumption beyond 36 scm in two months, the rate applicable in these cities would be Rs 47.65/scm. This was earlier Rs 54/scm beyond consumption of 30 scm in two months, IGL said in a statement.Announcing the reduction in prices of CNG and domestic PNG, IGL Managing Director Narendra Kumar said, "Subsequent to the increase in our domestic gas allocation to meet the full requirement for CNG and domestic PNG by the government, IGL has decided to pass on the entire benefit to its esteemed consumers by reducing the consumer prices."Thanking the government for ensuring that all city gas distribution (CGD) companies get their full requirement from domestically produced gas, he said that this step would reduce the cost of commuting for the public apart from contributing to the environment.With the revised price, CNG would offer 65 per cent savings towards the running cost when compared to petrol driven vehicles at the current level of prices.When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be 36 per cent, the statement said.IGL, a joint venture of state-owned gas utility GAIL India, refiner Bharat Petroleum Corp (BPCL) and Delhi government, is currently catering to nearly 7,50,000 CNG vehicles in the national capital, which include nearly 4,50,000 private cars.The 30 per cent reduction in CNG prices will have a major impact on per km running cost of CNG run vehicles. "For autos, the per-km running cost will come down by 43 paise per km, while for taxis, it would reduce by 72 paise per km. In case of buses, the running cost will decrease by over Rs 4.25 per km," it added.(PTI)
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M/s. Thiess Minecs India Pvt. Ltd. (TM) was appointed as Mine Developer-cum-Operator (MDO) on global tendering for development and operation of Pakri-Barwadih Captive Coal Block of NTPC on 30 November 2010 for a period of 27 years at an estimated contract value of Rs 23,000 crore. The contract consisted of a development period of 360 days (ended on 25 November, 2011) and balance operation stage. TM failed to make any headway despite the fact that development period of the contract was extended twice ie. initially for 450 days and 360 days later. In toto, an opportunity of 1170 days was given for the development phase. The above failure of TM was brought to the notice of Bruce Munro, MD, Thiess Pty. Ltd., Australia through emails on many occasions and got no response. NTPC, in this regard, issued a show-cause notice to TM on 10 July 2012, stating the defaults and non-fulfillment of contractual obligations by TM without any response. The top management of NTPC called on the Australian Minister for Mining during his visit to India and was appraised about total inaction by M/s Thiess. TM was apprised of the persistent reviews of Ministry of Coal, Ministry of Power, Government of India from time to time but did nothing about it. Meanwhile, for this coal block, the coal ministry imposed a Bank Guarantee of Rs 138.6 crore at poor progress of scarce National Asset which is being contested by NTPC. Other contractors have made good progress for construction of coal handling plant in the same area. Similarly, in North Karanpura area, close to the project site, work is in progress with the cooperation of villagers. Indian Railways has almost completed the rail link. Thus, NTPC had no option but to terminate the contract on 7 May 2014 with a notice period of 45 days. NTPC will like to inform that work at the second mine Chatti Bariatu is progressing at a fast pace and the mining of coal is expected to commence this year.
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