1. International

  2. News
  3. News

Oil & Gas Round Up - 06 May to 09 May, 2013

India Infoline News Service | Mumbai | May 09, 2013 19:46 IST

Cairn Energy PLC (Cairn) has announce a farm-in as Operator to two licences offshore West of Ireland in the Porcupine Basin, which contains the undeveloped Spanish Point gas condensate and Burren oil discoveries, and six adjacent licensing option blocks. The acreage covers an area of 2,753km2 with more than 500km2 of 3D seismic and will provide locations for Cairns frontier drilling programme.

Top Stories 

RIL plans to quit 3 oil, gas blocks: report

According to reports, Reliance Industries, along with its partner BP, is planning to give up three more oil and gas exploration blocks on the East Coast.

The total number of blocks it holds come down to seven from 10, media report said.

RIL is surrendering two blocks in Mahanadi Basin and one in Krishna Godavari Basin and he blocks are KG-WN-2004/4, MW-DWN-2004/1, and MW-DWN-2004/2.

The company reportedly said this was in keeping with the Reliance-BP policy of Where there is no prospect, exit.

In 2011, BP had bought 30 per cent stake for $7.2bn in 21 blocks of RIL.


Cairn Energy acquires 38% stake in 2 Irish oil blocks

Cairn Energy PLC (Cairn) has announce a farm-in as Operator to two licences offshore West of Ireland in the Porcupine Basin, which contains the undeveloped Spanish Point gas condensate and Burren oil discoveries, and six adjacent licensing option blocks.  The acreage covers an area of 2,753km2 with more than 500km2 of 3D seismic and will provide locations for Cairns frontier drilling programme.

The two licences FEL 2/04 (which includes the Spanish Point and Burren discoveries) and FEL 4/08, together cover an area of 1,242km2 are currently operated by Chrysaor (60% Working Interest (WI)) with Providence Resources (32% WI) and SOSINA Exploration Ltd (8% WI).  The six adjacent licensing option blocks, known as Licensing Option (LO) 11/2, cover an area of 1,511km2 and can be converted to a FEL from October 2013. Read more...


Domestic News

Centre nets over Rs. 190bn from addl excise duty on petrol, diesel in FY13

The Minister of State for Petroleum' Petroleum & Natural Gas Panabaaka Lakshmi informed the Rajya Sabha in a written reply that the total amount collected from Additional Excise Duty during the years 2012-13 (Provisional) is 19,333 crore. P. Lakshmi said that the amounts collected during 2011-12 and 2010-11 are Rs. 18,428 crore and Rs. 16,979 crore respectively. Stating this, she added that as informed by the Ministry of Finance, Department of Revenue, the State-wise information of Additional Excise Duty collected on Diesel and Petrol is not maintained.

Giving further details about collection and apportioning, the Minister said that the revenue from Additional Excise Duty is initially credited to the Consolidated Fund of India and thereafter, Parliament; by appropriation credit such proceeds after adjusting cost of collection to the Central Road Fund (CRF). The CRF is, thereafter, distributed by Planning Commission amongst three Ministries i.e. Ministry of Rural Development, Ministry of Railways and Ministry of Road Transport & Highways in the manner prescribed under section 10(viii) of the Central Road Fund Act, 2000. Read more...

India Ratings assigns HPCL at IND AAA

India Ratings & Research (Ind-Ra) has affirmed Hindustan Petroleum Corporation Limiteds (HPCL) Long-Term Issuer Rating at IND AAA. The Outlook is Stable. A list of additional rating actions is available at the end of this commentary.
 
Key Rating Drivers
The ratings reflect HPCL's majority ownership by the government of India (GoI), its position as one of the three public sector oil refining and marketing companies in India, its strong linkage with and strategic importance to the state and the dominant position occupied by public sector companies (PSC) in the national oil industry. Ind-Ra equates HPCL's ratings to those of India (51.11% shareholding in HPCL), reflecting the company's strong linkage with, and strategic importance to, the state.
 
The agency expects the state to continue to provide support to HPCL, given its role as the government's extended arm for policy implementation. GoI's policy has been to set tariffs for some refined oil products at levels lower than market prices, leading to under-recoveries. However, GoI has ensured that downstream PSCs' net annual under-recoveries are kept under control through financial support and direction to upstream PSCs to supply feedstock at a discount. The government compensates downstream PSCs through direct budgetary support. Read more










 

 
 
 
Recent Reports
News