Oil and Gas Newsletter – April 04 to 08, 2016

The oil marketing companies have increased the price of petrol by Rs.2.19 per litre, whereas they hiked the price of diesel by Rs.0.98 per litre.

April 08, 2016 5:01 IST | India Infoline News Service
Top News
Cairn Energy faces up to Rs. 10,247-cr penalty in India
Cairn Energy Plc faces up to Rs. 10,247-crore penalty over and above the INR 29,000 crore in tax and interest demand slapped on it by the I-T Department, reports a business daily.
In a circular to its shareholders, the company said that on 4th February it had received a final assessment order from the I-T Department seeking INR 10,247 crore, plus interest back dated to 2007, totaling Rs. 18,800 crore.Read more
Petrol price hiked by Rs.2.19/L
The oil marketing companies have increased the price of petrol by Rs.2.19 per litre while it hiked the price of diesel by Rs.0.98 per litre.
Indian Oil Corporation Ltd. has decided to effect the following price changes w.e.f midnight of 4th April / 5th April, 2016
Increase in Retail Selling Price of Petrol by Rs. 2.19/litre at Delhi (including State levies) with corresponding price revision in other States. With this change, the price of Petrol in Delhi will become Rs. 61.87/litre.
Increase in Retail Selling Price of Diesel by Rs. 0.98/litre at Delhi (including State levies) with corresponding price revision in other States. With this change, the price of Diesel in Delhi will become Rs. 49.31/litre.
Govt lines up disinvestment in 16 PSUs for FY17
Finance Ministry has made a list of 16 PSUs, including ONGC, Oil India and Coal India for achieving its disinvestment target of INR 40,000 crore in FY17.
The Union Budget has set a disinvestment target of rS. 56,500 crore for FY17.
The list includes NMDC, MOIL, MMTC, National Fertilisers, NHPC, NALCO and Bharat Electronics, reports a business daily. The list mostly contains PSUs which were up for stake sale in FY16 also but volatile market conditions forced the Centre to drop the plan, according to the paper.
Besides, the Cabinet approvals are also in place for some of these PSUs, it adds.
High oil prices can create problem: Arun Jaitley
Finance Minister Arun Jaitley reportedly said that even if oil prices move a little higher, they will not be negative for India, but “exceedingly high” rates create problems for the country.
“Certainly, the oil prices at the current level, create helpful environment as far as India is concerned, added FM.
Jaitley stated that the global conditions are not supporting India’s growth at the moment, but once it turn favourable it will push up further, says report.
Domestic News
ONGC gets green nod for drilling project in Gujarat
ONGC has received green nod for Rs. 350-crore project of drilling 22 exploratory wells in NELP-9 blocks located at Banaskantha, Gandhinagar and Ahmedabad districts of Gujarat, according to reports.
Report says that according to the proposal, wells would be drilled in blocks CB-CNN-2010/1, 6 and 9.
The petroleum exploratory licence to start the activities as per the production sharing contract (PSC) was granted in February 2013 and the initial contract period is seven years, says report.
Cairn seeks shareholders' nod for sale of balance Cairn India stake
Cairn Energy Plc, which holds a 9.82% stake in Cairn India Ltd, has called for an annual general meeting (AGM) of shareholders on 12th May to approve, among other things, the proposal to dispose its residual stake in Cairn India, reports a business daily.
A special resolution for the disposals by the Company or any subsidiary undertaking of the Company of any or all shares in Cairn India Ltd held by it at or as close as reasonably possible to the prevailing market price if and when the Company considers it appropriate and in the best interests of shareholders as a whole to make such disposals be approved” will be proposed during the AGM, says Cairn Energy.
Oil PSUs given free hand to formulate policies regarding import
The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval to replace the existing policy on crude oil import by Oil PSUs and vest the oil PSUs with the power to evolve their own policies. This will provide a more efficient, flexible and dynamic policy for crude procurement, eventually benefiting the consumers. 
International News
EMEA oil, gas, metals and mining companies face greatest liquidity pressure
The share of companies facing liquidity pressure in EMEA oil, gas, metals and mining speculative-grade sectors more than doubled to 23% in March 2016 from 11% a year ago according to Moody's EMEA Liquidity Stress Index, published today.
The liquidity stress index takes the total number of companies rated SGL-4, Moody's lowest speculative-grade liquidity rating on a scale of 1 to 4, and divides it by the total number of SGL-rated companies, resulting in the given index percentage.Read more

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