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Ambani dispute overwhelms government: Most court battles, PMO and VIP

references concern RIL's D-6 gas block


Nov 22: It would appear that the majority of the court battles being waged by the
government of India at present with respect to E&P activities in the country are related to
the D-6 block being operated by Reliance Industries Ltd (RIL) in the Krishna-Godavari
Basin. In numerical terms, this translated into 11 court battles pertaining to the supply of
gas from the D-6 field out of a total of 25 court cases being fought by the Indian
government simultaneously. What is more, a large portion of the references from the
Prime Minister`s Office and VIPs for the perusal of the petroleum ministry also concern
the pricing and supply of natural gas from the D-6 field.
The website carries here, for reference purposes, comprehensive information on all the
legal cases being fought by the petroleum ministry at present, including the battle over
alleged excess cost recovery by the Ravva joint venture, liability of cess in the RJ-ON-
90/1 block and the prospective applicability of the investment multiple for the Lohar oilfield
being operated by Selan.
Our readers can also access a summary of all the references made by the Prime
Minister`s Office and other VIPs for the consideration of the petroleum ministry. This
includes references from Amar Singh on the D-6 gas block, a PMO reference on windfall
profit tax, a letter from Dharampal Saharwal on the NTPC-RIL case, a letter from MP
Tapan Sen on pricing of D-6 gas and a reference from Mulayam Singh Yadav on
deepwater rigs. (Click on Details for more information) Details

Reliance awards $25 million services contract to Norwegian firm in D-6 block
Nov 22: Reliance Industries Ltd (RIL) has awarded a major services contract for the MA
field development, located in its Krishna Godavari producing block KG-DWN-98/3, to the
Norwegian services provider Aker Solutions. Talking exclusively to Indian Petro News on
Friday (November 20, 2009) reliable company sources, based in Mumbai, revealed that
the $25 million contract was awarded to Aker Solutions of Norway last week after a
comprehensive bid process. The contract includes testing and maintenance of subsea
equipment around the MA crude discovery for a period of three years, sources added.
Aker has previously delivered subsea production systems to Reliance’s fast-track projects
in the KG basin.
Reliance has made a total of 19 discoveries in the deepwater block, out of which three
are under production. The MA oilfield in the block started oil production in September last
year and is currently producing between 10,500 and 11,000 barrels of oil per day from
three wells. By Sadiq Shaban Details

Naphtha Cracker and Downstream Polymer Project at Panipat: Finally, in pre-


commissioning mode
Nov 22: Indian Oil Corporation`s (IOC) maiden petrochemical venture, the Rs 14,457
crore Naphtha Cracker and Downstream Polymer Project at Panipat, is expected to
kickoff by end-March or early April, 2010. "The project has entered the commissioning
stage. A heater dryout exercise of the Naphtha Cracker Unit (NCU) -- being executed by
a consortium of Toyo Engineering and L&T -- will commence on November 25, 2009, and
the unit is expected to be commissioned between January 14-25, 2010," sources privy to
the project`s development revealed to Indian Petro News (November 21, 2009).
Subsequently, the refinery major will commission the polymer unit. "The polymer unit is
likely to be commissioned earliest by mid-March and latest by early April, 2010," sources
confirmed. Thereafter, IOC will be ready to supply products, such as ethylene, propylene
and benzene, from the plant. As of today, the project has achieved a physical progress of
97.34%.
The corporation has made all arrangements to ensure that the project`s current
commissioning schedule is not affected in any way. While there was a hold up in the
commencement of pre-commissioning activities of the naphtha cracker and other
downstream polymer units -- as there was a delay in commissioning of Module-2 of the
Captive Power Plant by L&T -- the company has now worked out an alternate
arrangement to ensure uninterrupted power supply to the project. "At present, we have
installed three Gas Turbines, one Utility Boiler and two Heat Recovery Steam Generator
(HRSG), which are more than sufficient to cater to the current power requirements of the
project," sources revealed.
Once operational, this naphtha cracker would be one of the largest and world-scale
capacity plants in India. IOC would process naphtha from its Panipat, Mathura and
Gujarat refineries to produce 857,000 TPA of ethylene and 650,000 TPA of propylene,
based on which, other downstream polymer units will be commissioned to produce Linear
Low Density Polyethylene (LLDPE), High Density Polyethylene (HDPE), Polypropylene
(PP) and Mono Ethylene Glycol (MEG). By Neeraj Dhankher Details

Bina Refinery, Pipeline and Terminal: An Update


Nov 22: BPCL had originally planned to commission the Bina refinery and the attendant
pipeline and terminal at the same time, by December, 2009. However, while the Bina
despatch terminal, as well as the 257-km Bina-Kota pipeline, are on road to be completed
mechanically by December, 2009, work on the 6-MMTPA refinery at Bina has lagged
behind. The refinery is now expected to be completed by March, 2010. Following is an
update on these projects as of October 1, 2009:
Bina Refinery: The project achieved a progress of 96.4% as of October 1, 2009, as
against a target of 99.2%. A sum of Rs 8,527 crore has been spent on the project as of
October 1, 2009, as compared to an overall commitment of Rs 10,363 crore.
Bina-Kota Pipeline: As of October 1, 2009, 87% of the work has been completed on
the pipeline project, which is creditable, considering that a target of 82.3% had been set
for the month. A sum of Rs 230 crore has been incurred on the project as of October 1,
2009, as against a commitment of Rs 375 crore.
Bina Despatch Terminal: Work on the project is slightly behind schedule. As of
October 1, 2009, 93% of work has been completed on the terminal, as against a target of
94%. An amount of Rs 466 crore has been spent on various project activities as of
October 1, 2009, as against a commitment of Rs 589 crore. (Click on Details for more
information) Details

DGH misled country on CAG audit of D-6 development cost: Rajya Sabha MP Tapan
Sen
Nov 22: Communist Party Rajya Sabha MP Tapan Sen has raised the issue of the
Directorate General of Hydrocarbons` (DGH) alleged duplicity in declaring that the
Comptroller and Auditor General (CAG) had completed an audit of the cost expenditure in
Reliance Industries Ltd (RIL) D-6 block in the Krishna-Godavari Basin when, in fact, the
financial watchdog had not. The demand for an audit of D-6 had cropped up at the time
when allegations of "gold-plating" of the cost estimates for the $8.8 billion development
plan in the gas field had first been made by several public personalities, including Sen.
The CAG was engaged by the government to carry out the audit of the books of
accounts for the D-6 project during the years 2006-07 and 2007-08. It subsequently
refuted the DGH`s statement that the audit stood completed.
Sen has indicated that this contradiction was tantamount to misleading the country. He
pointed out that while the ministry did appoint experts for the purpose of examining the D-
6 development cost estimates -- namely Mustang Engineering of the USA and P.
Gopalakrishnan -- there were apprehensions of a conflict of interest, as both of these
parties had collaborated with RIL in formulating the development plan for the D-6 project
as well as earlier E&P projects.
Sen has also pointed out that the Committee of Secretaries that was formed to
examine the issue of KG gas pricing had specifically asked for a cost audit by the CAG
before fixation of the price of D-6 gas by an Empowered Group of Ministers. This was not
complied with and, allegedly for inexplicable reasons, the DGH had gone ahead to
declare that the audit had been carried out by the CAG.
Under these circumstances, Sen has urged Deora to ask the DGH to explain its
statement.
Comment: With the controversial departure of V.K. Sibal, Sen`s demand for a
clarification does carry any meaning.
(Click on Details for more information) Details

Tension between CB-ON/3 partners-I: DGH calls for action on operator for drilling
unauthorised well
Nov 22: The Directorate General of Hydrocarbons (DGH) has asked the government to
formulate a course of action against the operator -- Essar Oil Ltd (EOL) -- of the CB-ON/3
onland pre-NELP block in the Cambay Basin for covertly drilling a well -- dubbed ESU-4 --
in without obtaining prior approval of the operating committee and management
committee of the acreage. Since this is allegedly a gross violation of the Production
Sharing Contract (PSC) for the acreage -- in which Essar has a 70% stake, while the
remaining 30% is held by the licensee, ONGC -- the DGH has asked the ministry to "take
a view on the issue, as deemed fit" .
The controversy has arisen because of serious differences between the partners in the
CB-ON/3 onland oil, gas and CBM field in Gujarat.
Skirmishes between the two over how to run the block had occurred frequently in the
past. Most recently, ONGC refused to consent to an EOL plan for enhancing the
recovery factor in the field on the ground that not enough information was supplied by the
private operator.
Given the impasse over EOL's unilateral field development activities in the block,
ONGC has disallowed drilling of new exploratory locations, permitting only a review of the
exploratory locations approved by both sides at the operating committee level.
ONGC has stonewalled discussions on the well that was covertly drilled. The
development and production budget for 2009-10 stands unapproved following ONGC's
tough stand.
(Click on Details for more information) Details

Tension between CB-ON/3 partners-II: War of words escalates after ONGC served
notice for defaulting on cash calls
Nov 22: ONGC has gotten into a war of words with Essar Oil Ltd (EOL), the operator of
the CB-ON/3 onland block in Gujarat, after being served a default notice for not
contributing towards its share of cash calls during development operations in the acreage.
Readers will note that oil and gas were discovered in this block by ONGC, prior to its
award to Essar under the Pre-NELP licensing regime.
Substantial quantities of coal bed methane gas have also been unearthed, though the
government is still deliberating over granting exploitation rights for this resource within the
same contract area.
Subsequent to the completion of initial exploration in the acreage, ONGC had acquired
a 30% stake in the block in its capacity as licensee, as per the stipulations of the
Production Sharing Contract (PSC), which left Essar with a 70% participating interest.
(Click on Details for more on the face-off between the two partners) Details

Relinquishment of RJ-ONN-2003/1: DGH sees no logic in forcing ENI-led


consortium to take up unfinished MWP in alternate block
Nov 22: The Directorate General of Hydrocarbons (DGH) has informed the petroleum
ministry that there is no precedent to the proposal for the ENI-led consortium operating
theto relinquish the RJ-ON-2003/1 onland block in Rajasthan without any penalty for non-
completion of the Minimum Work Programme (MWP) in return for taking up the unfinished
commitment in the AN-DWN-2003/2 block in the Andaman deepwater basin.
The Eni-led consortium operating the RJ-ONN-2003/1 block wants to relinquish the
acreage because more than half of the contracted area is covered by a desert national
part. The 1,335 sq km block was awarded on January 4, 2006, under NELP bidding to a
consortium of ENI (34% participating interest), ONGC (36%) and CEL (30%), with a
seven-year exploratory period up to January 3, 2013. Eni commenced with the first three-
year exploratory phase in the block on January 4, 2006, with the Minimum Work
Programme (MWP) involving 3D seismic API over the whole block area, as well as drilling
of four exploratory wells identified on the basis of the company's geological model.
Following the award of the block, the contractor commenced with operations to cover
the whole block area with 3D seismic API. But at this point, it was noticed that more than
50% of the block area was covered by the desert national park. Efforts to get permission
for survey and drilling work in the DNP area (690 sq km) from the Ministry of Environment
& Forests (MoEF) were futile even by the end of the exploratory phase on January 3,
2009, though Eni drilled one well in the area outside the desert national park.
Subsequently, the operator had approached the chairman of the National Wild Life
Board to intervene on its behalf. But the official advised the company to approach the
Supreme Court for redressal.
At this juncture, Eni and its partners came to the conclusion that a ruling by the
Supreme Court in its favour was unlikely, given its earlier orders that no mining activity
was permitted in national parks. Furthermore, the whole process would be time-
consuming.
Given the Ministry of Environment & Forests flat refusal to grant environmental
clearance and the Supreme Court's historic ruling, the operating consortium decided that
they would not proceed further. They had accordingly put forward the proposal to
relinquish the block at this stage, as completion of the MWP was beyond the control of
the contractor.
But the petroleum ministry had taken a view that acceding to the proposal would
involve dilution of the MWP commitments and given the fact that there was no provision in
the PSC for allowing the contractor to relinquish the block without completion of the MWP,
it could not be permitted unless the contractor gave an undertaking that it would take up
an equivalent MWP in another block. Nevertheless, it has left some leeway for the
contractor to wriggle out of the PSC commitment in light of similar dispensations in other
blocks, for which it has asked the DGH for details.
The DGH appears to have now put a spanner in the ministry's proposal to force ENI
and its partners to take up the unfinished MWP in RJ-ONN-2003/1 in another acreage by
citing the fact that there are no precedents for such a dispensation. The upstream
regulator has indicated that there was one similar case where Oil India Ltd (OIL), the
operator of the CY-OSN-97/2 shallow water offshore block in the Cauvery Basin, had
offered to spend the equivalent value of the committed work programme in the block in
another acreage, on account of the difficulty in obtaining security clearance for its
operations. But in this case, OIL was sole operator in both CY-OSN-97/2 as well as the
nomination block where they spent the money. (Click on Details for more information)
Details

Exploration of Bramhaputra River Bed-I: OIL trying to overcome public opposition


to seismic surveys by carrying out environmental impact studies
Nov 22: Oil India Ltd (OIL) has been trying to carry out seismic studies of the
Bramhaputra River Bed (BRB) since the year 2000, without any success. The BRB area
comprises portions of several PEL blocks in the states of Assam and Arunachal Pradesh
and demands special survey techniques, as the area involves different environments like
the river bed, marshy land, sand bars and transitional zones. OIL had accordingly firmed
up a survey contractor through global bidding to cover the area with 2D seismic surveys.
However, following the placement of a Letter of Intent, OIL's plan had to be abandoned
due to severe resistance from local NGOs and other public organisations, some of which
have filed PILs to prevent any activities taking place in the BRB. The main apprehensions
of these organisations is that during the course of seismic surveys, the ecological balance
of the river system might be lost and it might affect aquatic animals, particularly the
endangered river dolphins present in the Bramhaputra river.
However, the prospects of discovering valuable crude oil beneath the BRB are too
great for OIL to completely abandon its plans. OIL had already carried out extensive
exploration work in the southern part of the Bramhaputra river and the discovery of
commercial hydrocarbons during the early 90's from the reservoirs of the Eocene
Formation in the area had prompted the organisation to intensify its exploratory efforts
towards the northern bank of the river as well. OIL drilled five exploratory wells in the
north bank of the river during the 1997 to 2002 period and although there was no
commercial discovery, the wells provided valuable geoscientific data.
The exploration of the BRB has been given impetus by the recent discoveries in the
Baghjan and Chandmari fields, which are located near the southern part of the
Bramhaputra river bank and have shown thick development of the hydrocarbons
reservoirs with areal extent towards the BRB area. In this regard, the company has
claimed that its proposed river bed seismic survey is a practical necessity of paramount
importance.
Based on the advice of the MoEF, OIL is attempting to have a study implemented by a
Multi-Disciplinary Advisory Group (MDAG), which was constituted to look into the various
aspects of the possible adverse impact of the proposed seismic survey activities on the
river dolphin and other aquatic fauna of the river system. The MDAG is expected to
evolve a suitable environment management plan to be followed by OIL during the seismic
survey operations to mitigate the possible adverse effects.
However, the expiry of the Petroleum Exploration Licenses (PELs) for the nomination
blocks covering the BRB area has become a new stumbling block for OIL's grand plans.
(Click on Details for more information) Details

Exploration of Bramhaputra River Bed-II: OIL misses petroleum ministry deadline


for environmental clearance, asks for more time
Nov 22: Oil India Ltd's (OIL) proposal to carry out an environmental impact assessment
(EIA) study of the Bramhaputra River Bed (BRB) area has hit a speed bump, as the
deadline of March 31, 2009, fixed by the petroleum ministry for securing environmental
clearance from the Ministry of Environment and Forests (MoEF) for its E&P activities in
the BRB has expired. The BRB area comprises riverine parts of seven neighbouring PELs
-- namely Lakhimpur, Dibrugarh, Murkongselek-NF, Murkongselek-F, Tinsukia, Sadiya
and Pasighat PELs -- and adjoining areas. The PELs for these nomination blocks has
long since expired and were supposed to be relinquished. Due to the non-availability of
valid PELs for the BRB area, OIL is not permitted to carry out any activities in the BRB
area.
But before the PELs for the blocks expired, OIL had put in a request for carving out a
new PEL for the BRB area, wherein the applicable portions of the seven PELs and
adjoining areas would be combined to form a single block covering an area of
approximately 2,754 sq km. OIL had indicated that the grant of this new PEL for a
minimum period of four years would facilitate the acquisition of 1,700 LKM of 2D data in
the block, effective from the date of receipt of environmental clearance from the MoEF.
OIL had also stated that the grant of a PEL for the BRB area will facilitate the EIA study to
assess whether aquatic life in the Bramhaputra river would be harmed by its proposed
E&P activities, based on which seismic survey studies can be initiated to determine
whether there is potential to produce hydrocarbons from the Bramhaputra river bed.
But while the petroleum ministry had agreed to the proposal for creation of a new BRB
PEL, it declared that OIL would have to obtain environmental clearance for the applicable
area before March 31, 2009, failing which the proposal would lapse. However, even
though it has missed the deadline set by the ministry, OIL is adamant that it wants to
carry out a seismic survey of the BRB and has now asked for a relaxation of the ministry's
condition.
In support of its proposal, OIL has pointed out that considerable exploration time has
been lost by OIL due to the non-availability of statutory clearances for its proposed survey
in the BRB area. In this regard, OIL has indicated that the effective date of the extension
of proposed BRB PEL should be the date of receiving clearance from the MoEF and not
the date of approval of the PEL, as OIL has no control over these government processes.
What is more, OIL has pointed out that the Multi-Disciplinary Advisory Group (MDAG)
constituted by the MoEF for carrying out the EIA study of the Bramhaputra river plans to
carry out specialised studies, which will be time-consuming.
Accordingly, OIL has asked for an extension of the deadline for obtaining environmental
clearance for the block till its studies of the BRB area are completed and an
environmental clearance is received from the MoEF. In this regard, it is pertinent to note
that this might not take place before end-2010. (Click on Details for more information)
Details

NRL Briefs
Nov 22: Numaligarh Refinery Ltd (NRL) has operated its Assam-based refinery without
Loss Time Accident (LTA) since February 18, 2002. As on October 1, 2009, NRL`s
cumulative LTA free manhours reached 13 million.
Rail despatch of petroleum products from NRL`s Siliguri Marketing Terminal has
commenced with effect from June 10, 2009. The construction of the terminal was delayed
as also the product pipeline connected Numaligarh with the terminal because of technical
and contracting problems. At present, both the Numaligarh-Siliguri product pipe line as
well as the marketing terminal are operating smoothly.
The Diesel Quality Upgradation project being implemented at the Numaligarh Refinery
is progressing well and is expected to be completed by April, 2010. As on September 15,
2009, an overall progress of 44% was achieved on the project, as against a schedule of
49%. Further, 57, out of scheduled 59 milestones, have been achieved.
NRL has indicated that continuous follow up with the Assam government for withdrawal
of Entry Tax on crude has not yielded the desired results. On the other hand, the state
government issued an ordinance dated September 12, 2008, inserting a deeming
provision in the 2008 ET Act, making the 2008 ET Act applicable retrospectively from
October 1, 2001. Subsequently, the government issued a notice dated September 16,
2009, to NRL, proposing summary assessment of Entry Tax for the period between
November, 2006, to May, 2008. (Click on Details for more information) Details

Captive allocation of 12.42 MMSCMD gas to RIL-I: Mulayam Singh wants allocation
to be revoked
Nov 22: The Member of Parliament and the Chairman of the Standing Committee on
Energy Mulayam Singh Yadav, has written a letter to the Prime minister Manmohan
Singh seeking cancellation of the captive allocation of 12.42 MMSCMD of gas to Reliance
Industries Ltd (RIL) by the petroleum ministry. He has also sought an explanation from
the ministry for its decision to allocate gas to RIL for captive use in the absence of a
policy for captive consumption by the contractor.
Yadav claims that this allocation is in violation of the terms of the Production Sharing
Contract (PSC) and the monetary benefit of this unjustified allocation to RIL works over
Rs 20,000 crore. It is pertinent to note that, the petroleum ministry, while deciding on the
additional allocation of 50 MMSCMD of KG D-6 gas, on October 27, 2009, granted
around 12.42 MMSCMD gas to various units of RIL including the company's captive
power plants.
The MP pointed out that, as per the PSC between RIL and the government, all sales
are required to be at arms length prices and there cannot be an arms length pricing
possible for captive use by the contractor (RIL itself). Hence any captive consumption by
contractor is in violation of the PSC.
Furthermore, the Gas Utilization Policy (approved by the EGoM) has not framed any
policy for captive consumption by the contractor. In the approved policy, captive power
plants, petrochemicals and refineries figured quite low in the priority list as decided by the
EGoM. In light of this, it was surprising that the petroleum ministry has chosen to allocate
gas to these sectors rather than allocating it to the much needed power and fertilizer
sectors. (Click on Details for more information) Details

Captive allocation of 12.42 MMSCMD gas to RIL-II: Mulayam wants EGoM to fix gas
price at $10/mmBtu for non-priority sectors
Nov 22: The Chairman of the Standing Committee on Energy and MP Mulayam Singh
Yadav in his letter to the Prime Minister has asked him to direct the empowered Group of
Ministers (EGoM) to immediately examine the gas price and valuation for all captive
consumption and non-priority sectors like petrochemicals and refineries and keep it
equivalent to cost of alternate fuels at $10/ mmBtu. This would increase government
revenues by over Rs 10,000 crore -- which was more than what the government was
attempting to raise by divesting shares in Navratna companies such as NTPC and NHPC
-- in next five years from royalty, taxes and profit petroleum.
Yadav argued that, in light of the fact that the EGoM has taken no decision on the sale
price and valuation for captive use by the contractor, selling KG basin gas to these non-
priority sectors at the same price as power sector, that is, $4.2 / mmBtu makes no
economic rationale. He pointed out that it was a long standing policy of the government
that differential gas pricing for priority (power and fertilizer) and non-priority sectors
(petrochemicals, captive power and refineries) would be followed. Currently, domestic gas
prices -- under the APM -- for power and fertilizer consumers are fixed at $2.06 /mmBtu,
while all other sectors pay more than twice that rate.
He further argued that this differential pricing was a sensible decision, which has
survived many years, as it is logical that non-priority sectors should pay gas prices
equivalent to cost of alternate fuel for a resource which is domestically in short supply.
He also raised concern that another adverse impact of this decision would be on the
public sector undertaking, Petronet LNG Ltd (PLL) which would suffer huge losses as RIL
and others would not be using their facilities in future. (Click on Details for more
information) Details

News Briefs
Nov 22: Jindal Drilling gets five-year firm order for charter hire of drilling unit
'Noble Ed-holt' from ONGC: Jindal Drilling & Industries Ltd has been awarded a firm
order for charter hire of a drilling unit -- dubbed Noble Ed-Holt -- from ONGC for a period
of five years. The total estimated value of the contract has been pegged at Rs 635 crore.
This rig is likely to get deployed in the month of December 2009.
--With this, the total number of company's operational rigs will remain at five.
--The number of directional drilling equipment is 22.
--The total order book as on date, stands at Rs 2,850 crore approximately.
SAAG RR allots 48.6 lakh shares to three foreign companies: SAAG RR Infra Ltd,
which is apparently facing a financial crunch, has -- pursuant to the approval of the
shareholders for issue of 4.86 million equity shares of Rs 10 each at a premium of Rs
9.90 per share -- allotted 48.6 lakh equity shares at a price of Rs 19.90 per share to the
following investors on November 16, 2009:
--Lynhurst View Investments Ltd (Foreign company); Equity shares allotted: 16,20,000
--Efficient Premium Investments Ltd (Foreign company); Equity shares allotted: 16,20,000
--Perfect Assets International Ltd (Foreign company); Equity shares allotted: 16,20,000
Aban Offshore: Aban Offshore Ltd -- in respect of issue of equity shares of face value
of Rs 2 each to Qualified Institutional Buyers (QIBs) under Qualified Institutions
Placement -- has decided to close the bid period, and approved the issuance of up to
5,697,135 equity shares at a price of Rs 1224.30 per equity share (including a premium of
Rs 1222.30 per equity share), aggregating to Rs 697 crore.
--Furthermore, the company has informed that the floor price in respect of the aforesaid
Qualified Institutions Placement, based on the pricing formula as prescribed under
Regulation 85 of Chapter VIII of the SEBI ICDR Regulations, is Rs 1224.28 per equity
share. Details

RIL and Essar's refining cost: Details


Nov 22: Reliance Industries Ltd has informed the petroleum ministry that the company's
refining cost worked out to Rs 958/MT of crude for 2008-09. While Essar Oil Ltd's refining
cost was a tad lower at Rs 943.4/MT. These costs include the cost of chemicals and
catalysts, repairs and maintenance, power and fuel, salaries and wages as well as
depreciation.
The private sector E&P majors replied this in response to a set of question asked by
the ministry which were:
--The estimated refining cost of the crude oil in the public sector oil companies at present.
--Whether refining cost of crude oil of the public sector oil companies is more than the
private sector companies?
--If so, the details and reasons.
--The steps taken by the government to reduce the refining cost of crude oil in public
sector oil companies?
Both the company's remained silent on the other three questions and threw them back
to the government's court.
The break-up of Essar's refining cost is as under:
--Chemicals and catalysts: Rs 57.82
--Repairs and maintenance: Rs 61.85
--Power and fuel: Rs 158.35
--Salary and wages: Rs 43.65
--Depreciation: Rs 621.72
(Click on Details for more information) Details

Indo American Synergy seeks 5 MMSCMD of natural gas for its upcoming 1000 MW
power project
Nov 22: Indo American Synergy Limited (IASL), a part of the Densons Group, has sought
an allocation of 5 MMSCMD of gas on a top priority for setting up of a 1000 MW power
project. The company is in the construction and contracting business but is expanding
and diversifying into gas based power
The company plans to setup a natural gas based 1000 MW Open Cycle or Combined
Cycle Power Plant (CCPP) with two Gas Turbine Generators (GTGs) of 500 MW each at
any feasible location in India. The company is planning to set up the power plant at any
suitable location near the trunk-pipelines (24" to 60") so that it is easy to source
uninterrupted supply of natural gas. However, the preferred states are Punjab, Haryana,
Delhi, U P, Rajasthan, M P. Gujarat and Karnataka.
IASL will initially complete a 500 MW unit, It is scheduled to go April 2013. The second
unit for the additional 500 MW is planned for commencement by mid-2014.
The power generated from the plant will be fed into the national grid.
The company has also obtained a letter of comfort from GAIL -- the bulk carrier and
transporter of natural gas -- for supply of natural gas. The company has made similar
requests to Reliance Gas Transportation Infrastructure Ltd(RGTIL) and Gujarat State
Petronet Ltd (GSPL).
(Click on Details for more information) Details

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