Oil production likely to touch 38 million tonnes this fiscal

“The incremental oil production in recent years is largely from the Barmer fields in Rajasthan, and in case of gas, it is from Krishna Godavari basin,” oil minister S Jaipal Reddy said at the World Petroleum Congress in Doha

New Delhi: Helped by Cairn India’s prolific Rajasthan oilfields, India’s crude oil production is likely to touch 38 million tonnes (MT) this fiscal, reports PTI quoting oil minister S Jaipal Reddy.

Speaking at the World Petroleum Congress in Doha on Monday, he said natural gas output is expected to cross 50 billion cubic meters in 2011-12 fiscal.

“The incremental oil production in recent years is largely from the Barmer fields in Rajasthan, and in case of gas, it is from Krishna Godavari basin,” according to a copy of his speech released by the oil ministry here.

The balance recoverable reserves from the known oil and gas reservoirs are about 2,041 MT, he said.

“Our refinery sector has seen phenomenal growth in recent years. The installed capacity which was at 62 MT in 1998, has increased to 193 MT in 2011. This will be further increased to 232 MT by 2012,” he said.

The excess refinery capacity has made India an exporter of petroleum products. The nation exported 59 MT of fuel valued at $43 billion last fiscal.

“Our refineries have invested $7 billion in the last four years in processes to produce greener fuels with lower emissions,” he said.

India’s coal reserves, fourth largest in the world, are prognosticated to hold about 92 trillion cubic feet (TCF) of coal bed methane (CBM).

“Exploration and production of CBM has commenced in India. Among other unconventional sources of gas, we are exploring possibilities in shale gas and gas hydrates,” he added.

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Euro crisis to adversely impact export growth: CARE

“Though India is primarily a domestic economy, India’s exports are positively linked to the global economic growth. This is likely to adversely impact India’s export growth in the coming months,” CARE said in its report—‘Impact of Euro crisis and global slowdown on India’

New Delhi: Credit rating agency CARE on Monday said India’s exports growth is likely to be hit in the coming months due to Eurozone crisis, reports PTI. 

“Though India is primarily a domestic economy, India’s exports are positively linked to the global economic growth.

This is likely to adversely impact India’s export growth in the coming months,” CARE said in a report titled ‘Impact of Euro crisis and global slowdown on India’.

However, it said the growth will be only marginally affected by the slowdown in the euro region debt-stricken countries as our exposure is low.

“Average elasticity between India’s exports and the advanced nations or the euro region’s gross domestic product (GDP) is 0.18,” it said.

It is observed that in 2010-11, India’s exports to the European region and US moderated. However, the country’s exports to the Asian and the African region, which have a greater share in India’s exports, grew during this period, it said.

The report also said that the foreign direct investment (FDI) has not been significantly affected by the crisis while the foreign institutional investors (FIIs) are showing outflow in the last couple of months.

It, however, noted that the software services and other export oriented sectors would benefit from the rupee depreciation.

India’s earnings from the software sector have been increasing steadily over the years at 27.7%. In 2008-09, the world economic growth slowed to -0.7% but software services continued to increase, albeit at a slower rate, it said.

In the first 8 months of 2011, the rupee had been stable in the range of Rs44-45 per dollar. A depreciating trend became stark since August 2011.

The rupee has depreciated by 18% against the dollar and by around 9% against the euro since August 2011.

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Govt may award blocks under NELP IX by next March

The government had offered 34 blocks in NELP-IX last year. Oil minister S Jaipal Reddy had at the close of bidding on 28 March 2011, stated that the blocks would be awarded and contracts signed with winners in four months. The blocks are expected to be offered by next March, eight months behind schedule

New Delhi: The government is likely to award oil and gas blocks offered for bidding in 9th round of New Exploration Licensing Policy (NELP) by March next year, a good eight month behind schedule, reports PTI.

“Some blocks (offered in NELP-IX) were held up due to security issues. By March next year, most of the blocks will be awarded,” Sudhir Bhargava, additional secretary, ministry of petroleum and natural gas said here today.

The government had offered 34 blocks in NELP-IX last year. Oil minister S Jaipal Reddy had at the close of bidding on 28 March 2011, stated that the blocks would be awarded and contracts signed with winners in four months.

“We were looking at (signing PSCs) by December,” Mr Bhargava said pointing to defence ministry raising objections to offer of some blocks that fall in Naval exercise areas.

The government had in the previous eight rounds awarded 235 areas for exploration and production of oil and gas.

While Mr Bhargava did not say how many of the 33 blocks that were bid for in NELP-IX would be awarded, officials in his ministry stated that a high-level panel of secretaries has recommended awarding of only 14 areas.

Empowered Committee of Secretaries (ECS) recommended award of only 14 areas after three areas in Mahanadi basin off the Orissa coast had to be withdrawn as they fell in Naval firing/exercise areas and bids for several others had to be rejected due to various reasons.

The panel recommended award of two shallow water and two onland blocks to consortia led by ONGC. State-owned OIL-led consortia was adjudged winner for two onland blocks in the Assam-Arakan basin. Deep Energy walked away with two Cambay basin blocks while Focus Energy beat Reliance Industries to bag an area in Rajasthan.

The remaining five blocks were recommended for award to companies like Sankalp Oil and Natural Resources, Pratibha Oil and Natural Gas Pvt Ltd and Pan India Consultants.

The government had offered eight deep-sea blocks, seven shallow-water areas and 19 onland blocks for bidding in NELP-IX. One shallow water block did not receive any bid.

The ECS recommended rejection of single bids for eight blocks where profit petroleum offered to the government ranged between 6.6% and 6.7%.

It sought assessment of net worth of top bidder for three blocks in Cambay and Rajasthan before awarding them.

ECS suggested rejecting bids by RIL and state-owned Oil and Natural Gas Corporation (ONGC) for the Andaman sea block as they had offered ‘very low’ profit share to the government.

It also wanted the bid by a consortium of ONGC-OIL and GAIL for deep-sea block GS-DWN-2010/1 and that of ONGC-OIL-BPRL for Kerala-Konkan deepwater block KK-DWN-2010/1 also rejected as they offered very low profit share.

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