Weekly Oil Gas

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Oil & Gas Sector ReviewMay 14 - 19, 2012

Exploration and Production

ONGC may take a call on its four coal bed methane

blocks in WB and Jharkhand soon

OVL produces 7.35 per cent less oil and oilequivalent gas from its foreign assets in 2011/12

y/y

Red signal in exploration: BG abandons seismic

survey plans

Gas from KG-D6 drops to about 32 mmscmd

MoPNG ropes in BCG to review current

commercial arrangements for E&P blocks

And now, an offer of oil from Puntland

India decides to invest in the oil potential of the

Falklands

China close to shale gas output, India 4 yrs awayIndian offshore companies against ONGC policy on

chartered vessels to support rigs for drilling

Bharat Petroleum beating refiners on Africa

exploration

Refining and Marketing

Reliance Industries' shale bet fades as the US

floats on gas

IOC aims to expand refining capacity 41 percent by

2016/17

Oil Ministry seeks Rs 490 billion cash subsidy to

compensate state fuel retailers

Kerala government notifies formation of agency-

level social monitoring committees to prevent

hoarding of domestic gas

Bharat Petroleum plans petrochemical complex in

JV near Kochi refinery

Oil Ministry regulates sale of raw petroleum coke

Statoil buys 35,000 tons of spot naphtha gas from

India

MRPL plans to bid for West Bengal Government's

stake in ailing Haldia Petrochem

Pipelines

GAIL and Oil India express interest to buy stake in

RGTIL

Cabinet nod for signing TAPI gas supply pact

Kerala CM holds talks on gas pipeline between

Kochi and NTPC's Kayamkulam power plant

Farmers object to GAIL project to lay a pipeline

from Kochi to Bangalore via Erode district

GAILs gas pipeline could prove industrial boon for

Nagpur

Natural Gas

Prioritising gas supplies

Petroleum Ministry says no to oil PSUs buying

ADB's stake in Petronet LNG

RILs yet to supply gas to 1500 MW Bawana power

plant, production hit

BHEL bags Rs 3.8 billion order for gas-based plant

in Rajasthan

IGL reports 17 per cent increase in net profit for

fourth quarter ended March 31

GSFC may set up LNG terminal in partnership with

GSPL

GSPL Keen to Swap North Tapti Gas with GAIL's

APM Supplies to Kribhco

Adani hikes prices of compressed natural gas andnatural gas for industrial consumers

Kerala to give land for LNG power plant soon

Law ministry sees no legal hurdle in raising RIL's

D6 gas price

Karnataka Natural Gas set up to distribute piped

gas in state

Cabinet allows GAIL India to sign the gas sale &

purchase agreement with TurrnenGas

ONGC to get into LNG marketing

India in talks with US for LNG imports

Power generated at LNG-based power plant nearKochi to cost around Rs 7 per unit

General

U.S. envoy to examine India's oil import trends

Order against Chennai Petroleum Corporation set

aside

India decides to cut crude oil import from Iran by

over 11 per cent this fiscal to 15.5 mt

Gail-Tidco JV to invest Rs 100 billion for setting up

a power plant and pipeline infrastructure to carry

LNG

Oil hits 5-month low of $94 per barrel

Power Unit Allocated 50,000 SCMD Gas from

Olpad

India's gas shortage hurting GAIL, NTPC's new gas

power projects

Iraq replaces Iran as India's second-largest crude

oil supplier

New Rial-Rupee mechanism to settle India-Iran

payment issues

India looks to UAE for oil as Iran curbs bite

Bengal government gets stay on Haldia

Petrochemicals arbitration


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Exploration and ProductionONGC may take a call on its four coal

bed methane blocks in WB and

Jharkhand soon - After prolonged delay,

ONGC may be gearing up to take a call on

the farm-in opportunities in its four coalbed methane blocks in West Bengal and

Jharkhand soon, according to sources.

Expectations are rife that the issue may

even come up for discussion during the

scheduled ONGC board meet on May 15.

As in November 2011, the oil and gas

major received four expressions of

interests (EoI) from private players to

pick up equity stake and help ONGC in

monetising the CBM assets.

OVL produces 7.35 per cent less oil and

oil equivalent gas from its foreign assets

in 2011/12 y/y - Oil and Natural Gas Corp

produced 7.35 per cent less oil and oil

equivalent gas from its foreign assets in

2011/12 from a year ago due to the

difficult geo-political situation in Syria

and Libya, the junior oil minister said.

ONGC Videsh Ltd, the overseas

investment arm of ONGC, produced

8.753 million tonnes, or 175,000 barrels

per day (bpd), of oil and gas in the

financial year ended March 31 versus

9.448 million, or 188,960 bpd a year ago,

R.P.N. Singh told lawmakers.

Red signal in exploration: BG abandons

seismic survey plans - Energy companies

British Gas (BG) and BHP Billiton had to

drop their plans to conduct seismic

surveys in oil blocks off the Andhra coast

twice in the past 15 months, as the

formal award of the blocks to thecompanies was delayed pending

clearances from the defence ministry. In

a bid to take advantage of the weather

window, the companies had prepared

their seismic plans, said a person aware

of the the development, requesting

anonymity. However, they had to drop

their plans as several technicalities

delayed the award of the contracts.

Gas from KG-D6 drops to about 32mmscmd - Reliance Industries has

reported that natural gas production

from its eastern offshore KG-D6 fields

has dropped to about 32.66 million

standard cubic meters per day. Gas

output from KG-D6 in the week endedMay 6 dropped to 32.66 mmscmd from

33.89 mmscmd in April, according to a

status report filed by the company with

the Oil Ministry. KG-D6, where water and

sand ingress coupled with drop in

pressure has led a drastic fall in per-well

output, had produced 34.62 mmscmd in

the beginning of March.

MoPNG ropes in BCG to review current

commercial arrangements for E&P

blocks - The petroleum ministry has

roped in one of the world's leading

management consultancy firms, The

Boston Consulting Group (BCG), to

review current commercial arrangements

for exploration and production (E&P)

blocks. The move was seen as necessary

in view of the growing discord between

the government and operating

companies over contracts to develop oil

and gas blocks in India, and the negative

observations made by the Comptroller

and Auditor General (CAG) on these

contracts.

And now, an offer of oil from Puntland -

With virtually the entire east coast of

Africa is found to contain hydrocarbon

deposits, the tiny Puntland, which is a

nation and yet not a nation, is no

exception. Its President Abdirahman

Mohamed Mohamud Farolez held talks

in New Delhi on the recent find inPuntland of large quantity of oil. He

invited Indian companies to participate in

the exploration and sought New Delhi's

cooperation for charting out exploration

blocks and training Somalis in the

petroleum sector.

India decides to invest in the oil

potential of the Falklands - Britain and

Argentina have been feuding over the

sovereignty of the Falkland Islands for180 years, and 1982 fought a brief but


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vicious war over them. Much has

changed in the past three decades

Argentina has increasingly lined up fellow

Latin American nations to support their

claim to Las Malvinas, and in the past

two years, intrepid British oil exploration

companies have surveyed Falkland

waters and found promising signs of

hydrocarbon deposits.

China close to shale gas output, India 4

yrs away - Oil and Natural Gas

Corporation of India and competitors

may drill for at least four years before

producing the first commercial shale gas

in the nation as China expects to

commence output next month and

Australia boosts reserves. ONGC, Indiasbiggest explorer, is studying data for

shale gas deposits and awaiting a

government policy on commercial drilling

for gas trapped in shale rock, Sudhir

Vasudeva, chairman of the state-run

company, said.

Indian offshore companies against

ONGC policy on chartered vessels to

support rigs for drilling - Indian offshore

companies have come out in the openagainst Oil & Natural Gas Corp's (ONGC)

allegedly flawed policy on chartering

vessels to support rigs for drilling.

Offshore firms allege that ONGC, the

country's biggest public sector oil

company, often select scrap-worthy and

age-old vessels after tenders are called,

as they offer low charter rates at the cost

of safety. Senior officials in the shipping

industry, on conditions of anonymity,

said smaller offshore companies such as

Tag Offshore and Hind Offshore, among

others, buy old vessels that are ready to

be scrapped and quote low charter rates

when tenders are issued by ONGC.

Bharat Petroleum beating refiners on

Africa exploration - Bharat Petroleum

Corp. (BPCL) is the best- performing

energy stock on the MSCI AC Asia PacificIndex this year and analysts say its foray

into exploration in Africa to counter

refining losses may mean theres more

growth to come. Bharat Petroleums 54

percent surge this year makes it the only

refiner among the top 10 gainers on the

MSCI AC Asia Pacific Index and the best

performer on Indias 50-share Nifty

Index.

Top


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Natural GasPrioritising gas supplies - The government

needs to tweak its gas utilisation policy to

accord top priority to the power sector in

allocation of domestic gas given its

significance in the overall economic

growth. Besides, it should also be kept in

mind that there is no international market

for electricity on which we can fall back in

times of domestic shortage. As of now,

fertilisers get top priority, followed by the

city gas distribution sector. Power sector,

the biggest consumer of gas in India,

comes third on the priority list for gas

allocation despite its critical role in the

national economy.

Petroleum Ministry says no to oil PSUsbuying ADB's stake in Petronet LNG - The

Oil Ministry has refused permission to

public sector oil companies for acquiring

Asian Development Bank's stake in

Petronet LNG Ltd (PLL) so as to keep the

nation's largest liquefied natural gas

importer a private company. The ADB on

August 23 last year offered to sell its 5.2

per cent stake in PLL, in which GAIL,

Indian Oil (IOC), Bharat Petroleum (BPCL)

and Oil and Natural Gas Corp (ONGC) hold12.5 per cent stake each and have a first

right of refusal.

RILs yet to supply gas to 1500 MW

Bawana power plant, production hit -

Despite the Delhi government building a

1,500 MW capacity power plant at

Bawana at a cost of Rs 4,500 crore,

Delhiites are expected to reel under

severe power cuts this summer with

Reliance Industries Ltd not supplying gasto the plant even after directions from the

Oil Ministry. After failing to get gas for the

plant from RIL as per an earlier

understanding, the Delhi government in

February had sought intervention of

Finance Minister Pranab Mukherjee, who

heads an Empowered Group of Ministers

(EGoM) on gas allocation so that plant

could at least generate 750 MW of power.

BHEL bags Rs 3.8 billion order for gas-

based plant in Rajasthan - State-owned

BHEL said it has bagged Rs 380 crore

order for setting up a 160 MW gas-based

plant in Rajasthan. BHEL has secured a

contract for setting up a 160 MW

Combined Cycle Power Plant (CCPP) in

Rajasthan from Rajya Vidyut Utpadan

Nigam Limited (RRVUNL), said an official

release. The Rs 380 crore contract is the

expansion project (Stage IV) of Ramgarh

power plant in Jaisalmer district of

Rajasthan.

IGL reports 17 per cent increase in net

profit for fourth quarter ended March 31

- Indraprastha Gas Ltd reported a 17 percent increase in net profit for the fourth

quarter ended March 31 on increased sale

volumes. The net profit in the January-

March quarter rose by 16.78 per cent to

Rs 80.75 crore compared to Rs 69.15

crore in the same period a year ago, IGL

said in a statement here. IGL, the sole

supplier of CNG to automobiles and piped

cooking gas to households in national

capital region, said sales volume growth

was 18 per cent in the fourth quarter.

GSFC may set up LNG terminal in

partnership with GSPL - Gujarat State

Fertilizers and Chemicals Ltd (GSFC) is

considering the option of partnering with

Gujarat State Petronet Ltd (GSPL) for

setting up a liquefied natural gas (LNG)

terminal in Gujarat, according to two

senior state government officials close to

the development. The firm is awaiting the

new urea policy to be unveiled by thecentre before going ahead with its Dahej

expansion plan.

GSPL Keen to Swap North Tapti Gas with

GAIL's APM Supplies to Kribhco - To

enable immediate utilization of North

Tapti gas, GSPL shall deliver 0.68

MMSCMD of North Tapti gas to Kribhco

whereas GAIL can retain equivalent

quantities of PMT/APM gas which would

otherwise be supplied by GAIL to Kribhcothrough GAIL's own network under the


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existing contracts. This is a swap

arrangement wherein the APM / PMT gas

of GAIL is swapped with North Tapti gas

where the swap is happening on GAIL's

network and GSPL is only transporting

physically without any operational issue.

Adani hikes prices of compressed natural

gas and natural gas for industrial

consumers - Adani Gas Ltd, a subsidiary of

Adani Enterprises Ltd has increased prices

of compressed natural gas (CNG) and

natural gas for industrial consumers with

effect from midnight of May 15, 2012, a

company official informed. The company

has attributed hike in gas prices to

increase in price of imported liquified

natural gas (LNG) and fluctuations in

currency exchange rates.

Kerala to give land for LNG power plant

soon - Government of Kerala and

Petronet LNG Limited, promoters of the

LNG terminal coming up on Puthuvype

island, are learnt to have reached an

understanding on land for an LNG-based

power generation facility. Sources here

said that the government had identified

50 acres for the project, the original

extent requested for by PLL, which

proposed setting up a 1,250 mw plantusing the advantages of the proposed

plant's proximity to the LNG receiving and

re-gasification facilities.

Law ministry sees no legal hurdle in

raising RIL's D6 gas price - The law

ministry sees no legal hurdle in raising the

price of gas produced from Reliance

Industries' D6 block, but the oil ministry is

expected to oppose the move and is

focusing its attention on the gas pipelinefrom Turkmenistan, which the cabinet

approved. Government sources said the

decision would be taken by the

Empowered Group of Ministers (EGoM)

based on the advice of the attorney

general and views of the ministers. The oil

minister, Jaipal Reddy, was likely to

oppose the proposal to raise prices

despite the legal advice from Attorney

General Goolam Vahanvati.

Karnataka Natural Gas set up to

distribute piped gas in state - GAIL India

and Karnataka State Industrial

Infrastructure Development Corp (KSIIDC)

have formed a joint venture company to

set up city gas distribution (CGD) network

for Bangalore households and fuel for

CNG-run vehicles. The new JV, KarnatakaNatural Gas Limited (KNGL), apart from

Bangalore, may also develop CGD

networks in major cities and towns in the

districts along which the Dabhol-

Bangalore gas pipeline alignment passes,

a top government official said.

Cabinet allows GAIL India to sign the gas

sale & purchase agreement with

TurrnenGas - The Union Cabinet approved

the petroleum ministrys proposal to

allow GAIL (India) to sign the gas sale &

purchase agreement (GSPA) with

TurrnenGas for the Turkmenistan-

Afghanistan-Pakistan-India (Tapi) gas

pipeline project, said a government

release. While the statement did not

mention the price at which gas would be

imported, people close to the

development said the landed price of the

gas would be cheaper than the import

price of Qatari gas in 2018.

ONGC to get into LNG marketing -

Seeking to diversify its business portfolio

and venture into new and challenging

areas, Oil and Natural Gas Corporation

(ONGC) has drawn up plans to enter the

marketing and re-gasficiation of LNG and

into the City Gas Distribution (CGD)

business. The company feels that the

share of natural gas in Indian primary

energy basket is expected to increase

from 11 per cent to 20 per cent by 2025.Although domestic gas production is

expected to grow to nearly 200 million

metric standard cubic metres per day

(mmscmd) by 2015-16, dependence on

imported LNG is set to increase

substantially, according to an internal

appraisal report prepared by ONGC.

India in talks with US for LNG imports -

Taking energy co-operation forward, India

and the US are discussing import of LNGfrom the US. The US currently has a


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surplus, while India has a deficit, with

many of its gas-based power plants

languishing. At a recent meeting between

officials of the two countries, the US

delegation made a detailed presentation

on oil and gas markets, including the

impact of LNG and shale gas on the

integration of gas markets.

Power generated at LNG-based power

plant near Kochi to cost around Rs 7 per

unit - Power generated at the LNG-based

power plant, proposed to be set up at

Puthuvypu, near Kochi, will cost around Rs

7 per unit. This was broadly agreed upon

at a meeting between officials of the

Petronet LNG Ltd and Kerala government

held in Thiruvananthapuram. A K Balyal,

Petronet MD, said that the Kerala

government would undertake a

guaranteed purchase of 75% of the power

to be generated in the initial phase.

Top


8/14

Refining and Marketing

Reliance Industries' shale bet fades as

the US floats on gas - When Reliance

Industries was negotiating its $3.4 bn

investments in US shale companies- theworld was different. America was energy

starved and looking desperately for ways

to reduce dependence on the Gulf. For

RIL, shale gas was seen as the next big

thing, after its offshore find earlier in the

decade. It would give the energy giant

knowledge of the new ways of gas

production, as well as allow it to ride the

gas price boom. Three years down the

picture is different.

IOC aims to expand refining capacity 41

percent by 2016/17 - Indian Oil Corp, the

country's biggest refiner, aims to expand

refining capacity 41 percent by 2016/17

and use more cheaper, heavy crude

grades to boost profitability and offset

revenues lost on domestic fuel sales, its

refineries chief said. IOC and its

subsidiary, Chennai Petroleum Corp,

control 10 refineries accounting for about

31 percent of India's capacity of 4.3million barrels per day (bpd).

Oil Ministry seeks Rs 490 billion cash

subsidy to compensate state fuel

retailers - The oil ministry has sought cash

compensation of R49,000 crore from the

finance ministry to compensate state fuel

retailers for selling fuels at government-

set cheaper rates in the Jan-March

quarter, an oil ministry source said. We

hope to get it by next week after theBudget session as the companies have

factored in the money in their Q4 results,

the source said. The government fixes

retail prices of LPG, kerosene and diesel

to protect the poor, leading to revenue

losses at Indian Oil, Bharat Petroleum and

Hindustan Petroleum.

Kerala government notifies formation of

agency-level social monitoring

committees to prevent hoarding of

domestic gas - The State government has

notified the formation of agency-level

social monitoring committees to prevent

hoarding of domestic gas (LPG). Members

of the committee are: members of local

food advisory committee; electedrepresentative to the respective

panchayat/ municipality/ coporation, who

is also a consumer served by the agency;

two representatives from local non-

governmental organisations; and the

ration inspector of the area (as convenor).

President of the local body would be

chairman of the committee, which will

meet once every two months to take

stock of supply and availability.

Bharat Petroleum plans petrochemical

complex in JV near Kochi refinery -

Bharat Petroleum Corporation Ltd (BPCL)

has proposed to set up petrochemical

complex near its Kochi refinery in a joint

venture at an investment of about Rs

4,000-5,000 crore. In a written reply to

the Lok Sabha, Minister of State for

Chemicals and Fertilisers Srikant Jena said

the project is proposed to be executed

through a joint venture with reputedglobal players, the details of which are

being finalised.

Oil Ministry regulates sale of raw

petroleum coke - The oil ministry has

directed state refiners to auction raw

petroleum coke or RPC and give

preference to local consumers due to

growing demand of RPC by aluminum and

cement manufacturers. The ministry has

directed Indian Oil Corporation (IOC),Bharat Petroleum Corporation Ltd ( BPCL)

and Hindustan Petroleum Corporation Ltd

( HPCL), last week to auction RPC. "They

so far sold it on adhoc basis directly from

refineries," an oil ministry official said.

Statoil buys 35,000 tons of spot naphtha

gas from India - Norwegian oil firm Statoil

bought 35,000 tons of naphtha from

India's Mangalore Refinery and

Petrochemicals Ltd (MRPL), in a rare move

reflecting that the European refiner could

be in need of prompt supplies, as per


9/14

Reuters. The cargo is scheduled for June

5-7 loading from New Mangalore port for

which Statoil paid premiums of about

US$34/ton to Middle East quotes on a

free-on-board (FOB) basis for it. Statoil

occasionally brings in naphtha from

Europe to supply to Asia.

MRPL plans to bid for West Bengal

Government's stake in ailing Haldia

Petrochem - ONGC-controlled Mangalore

Refinery and Petrochemicals Ltd plans to

bid for acquiring West Bengal

Government's stake in the ailing Haldia

Petrochemicals Ltd. According to the

MRPL Managing Director, Mr U.K. Basu,

the company had an informal discussion

in this regard during a meeting with HPL

officials in Kolkata. The company is

planning to make a formal submission inthis regard to the State Chief Minister, Ms

Mamata Banerjee.

Top


10/14

PipelinesGAIL and Oil India express interest to buy

stake in RGTIL - At least 11 companies,

including state-owned GAIL (India) and Oil

India, have expressed interest to buy

stake in billionaire Mukesh Ambani'sprivately owned firm Reliance Gas

Transportation Infrastructure (RGTIL). Gas

utility GAIL and oil explorer OIL have

submitted separate EoIs for the stake buy,

which is being managed by JPMorgan, Citi

and SBI Caps.

Cabinet nod for signing TAPI gas supply

pact - The Cabinet gave its nod for signing

of the gas sales and purchase agreement

(GSPA) for the $7.6-billion Turkmenistan-

Afghanistan-Pakistan-India (TAPI) pipeline

project, which would ferry gas from

Turkmenistan. Unlike the Iran-Pakistan-

India (IPI) pipeline project, TAPI has been

supported by the US. A steering

committee meeting of the member

countries is expected to take place in

Turkmenistan soon. The import of gas is

scheduled to commence after five years

of the signing of GSPA.

Kerala CM holds talks on gas pipelinebetween Kochi and NTPC's Kayamkulam

power plant - The Chief Minister, Mr

Oommen Chandy, met with stakeholders

to discuss modalities of laying the gas

pipeline between Kochi and NTPC's

Kayamkulam power plant. Officials from

Gail, which is laying the pipeline, and

NTPC were present on the occasion. They

discussed issues relating to bottlenecks,

safety, land acquisition and

compensation. Mr Chandy directed the

officials to identify a safe corridor' for the

pipeline by sparing densely populated

areas. The meeting decided that donors of

land would be compensated up to 30 percent above the market rates.

Farmers object to GAIL project to lay a

pipeline from Kochi to Bangalore via

Erode district - Several farmers here are

up in arms against the proposed Gas

Authority of India Ltd project to lay a

pipeline from Kochi to Bangalore via

Erode district for transporting gas. They

have appealed to the Tamil Nadu

government and the Gas Authority of

India Ltd not to go ahead with the plan.

The farmers in a memorandum to the

District Collector last evening stated that

the GAIL proposed to dig trenches on

agricultural lands in Coimbatore, Tirupur,

Erode, Namakkal, Salem and Dharmapuri

districts to take the gas through pipelines.

GAILs gas pipeline could prove industrial

boon for Nagpur - Industries in the city

can expect to get cleaner fuel as Gas

Authority of India Limited's (GAIL) 1500kmnatural gas pipeline from Surat to Paradip

is planned to pass through Nagpur. The

company's officials were in the city to

assess the demand by local industries and

convened talks with those having units in

Butibori industrial estate. GAIL had won

the bid to set up a gas line travelling from

Surat in West to Paradip in eastern state

of Orissa last year.

Top


11/14

General

U.S. envoy to examine India's oil importtrends - U.S. Special Envoy and

Coordinator for International Energy

Affairs Carlos Pascual is here on a four-day

visit, during which his team will examine

India's oil import trends and alternative

options. Interestingly, Mr. Pascaul's main

mission does not figure on the agenda for

his official meetings here. He will travel to

Mumbai to continue his interaction with

energy industry experts and members of

civil society.

Order against Chennai Petroleum

Corporation set aside - An order of a

Labour Court directing Chennai Petroleum

Corporation Limited (CPCL), formerly

known as Madras Refineries Limited

(MRL), to absorb 381 members of a trade

union with retrospective effect from the

date of their initial entry into the service

of MRL Industrial Co-operative Service

Society Limited (INDCO Serve), has been

set aside by the Madras High Court.

Justice K Chandru set aside the order,

while allowing writ petitions from the

management of CPCL and INDCO Serve,

challenging the order of the Central

Government Industrial Tribunal (CGIT)-

cum-Labour Court.

India decides to cut crude oil import from

Iran by over 11 per cent this fiscal to 15.5

mt - Succumbing to US pressure, India has

decided to cut crude oil import from Iranby over 11 per cent this fiscal to 15.5

million tons. India, which imports 80 per

cent of its crude oil and relies on Tehran

for 12 per cent of those imports, shipped

18.50 million tons of oil from Iran in 2011-

12, Minister of State for Petroleum and

Natural Gas R P N Singh said in a written

reply in the Rajya Sabha.

Gail-Tidco JV to invest Rs 100 billion for

setting up a power plant and pipelineinfrastructure to carry LNG - Gas

Authority of India Limited (Gail) will besetting up a joint venture with the Tamil

Nadu Industrial Development Corporation

(Tidco). The new company will make an

investment to the tune of Rs 10,000 crore

over the next five years across Tamil Nadu

for setting up a power plant and pipeline

infrastructure to carry LNG. In a

statement at the state Assembly, chief

minister J Jayalalithaa said that the Tamil

Nadu government had signed an MoU

with Indian Oil Corporation to set up LNGterminals in north Chennai with a capacity

of 5 million tonne a year.

Oil hits 5-month low of $94 per barrel -

Oil prices fell to near $94 a barrel in Asia,

extending a two-week sell-off that has

brought crude to a five-month low amid

concerns over Europes debt crisis.

Benchmark oil for June delivery was down

44 cents at $94.34 a barrel, the lowest

since December, at midday Singapore

time in electronic trading on the New York

Mercantile Exchange. The contract fell

$1.35 to settle at $94.78 in New York.

Brent crude for July delivery was down 45

cents at $110.55 per barrel in London.

Power Unit Allocated 50,000 SCMD Gas

from Olpad - Siddhi Vinayak Power

Generation and Distributors, a power

generation company located in

Ankleshwar, is ready for commissioning.

However, the facility is lying dry due tothe unavailability of the promised gas

volumes from the Olpad field being

operated by ONGC. ONGC's inaction in

supplying the already signed volume of as

has compelled the power producer to

approach the Petroleum Ministry for its

intervention and immediate action to

ensure gas supplies are commenced.

India's gas shortage hurting GAIL, NTPC's

new gas power projects - A fall indomestic gas production is hurting plans


12/14

by state-run NTPC Ltd. and GAIL (India)

Ltd. to add gas-based power generation

capacity, oil ministry officials said. NTPC,

India's largest power producer by

capacity, has slowed plans to expand the

capacity of its gas-based power plants,Junior Oil Minister R.P.N. Singh told

lawmakers in a written reply in the lower

house of Parliament. He said that due to

the gas shortage, Indian power stations

got only 18.10 million standard cubic

meters a day of gas supply against a

committed volume of 28.90 mmscm/d in

the financial year ended March 2012.

Iraq replaces Iran as India's second-

largest crude oil supplier - Iraq replaced

Iran as India's second-largest crude oil

supplier in the recently ended financial

year, preliminary government data

showed, as New Delhi cut shipments from

Tehran ahead of impending sanctions

from the U.S. and the European Union.

Saudi Arabia remained the largest oil

supplier, while Iran slid to fourth spot in

the year ended March 31, according to

the data compiled by India's oil ministry.

New Rial-Rupee mechanism to settleIndia-Iran payment issues - India said a

new rial- -rupee payment arrangement

has been put in place for bilateral trade

with Iran. The problem with Iran began

after the Reserve Bank of India, in

December 2010, withdrew the Asian

Clearing Union (ACU) mechanism under

which payments were made to Iran. "Rial-

rupee payment arrangement have been

put in place for bilateral trade between

India and Iran," Minister of State for

Commerce and Industry Jyotiraditya

Scindia said in a written reply to the RajyaSabha.

India looks to UAE for oil as Iran curbs

bite - Under pressure from the US to cut

its oil imports from Iran, India has decided

to set up a high-level joint task force on

investment which will also look into

securing more oil supplies from UAE that

has assured it of increased energy

exports. External affairs minister SM

Krishna and his counterpart from UAE

Sheikh Abdullah bin Zayed Al Nahyan held

discussions on international, regional and

bilateral issues, including ways to boost

trade ties, maritime security cooperation

to tackle piracy and Indo-Pak ties.

Bengal government gets stay on Haldia

Petrochemicals arbitration - The Bengal

government scored a small victory when a

division bench of Calcutta High Court

stayed an arbitration proceeding initiated

by The Chatterjee Group, the privatepromoter of Haldia Petrochemicals Ltd

(HPL). TCG had taken HPL and the Bengal

government, one of the principal

promoters of the project, to the

International Court of Arbitration (ICA) in

Paris over the ownership issue.

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