REGULATORY & JUDICIAL DEVELOPMENT – INDIA
Alaya Legal presents its Twelfth Issue of the Oil & Gas E-Zine. This publication provides legal updates and market developments from the oil and gas sector, offering readers a structured overview of significant industry events and regulatory developments.
Reference Material
- Categories of proven oil and natural gas reserves across the globe.
- Overview of Upstream, Midstream and Downstream segments of the Oil & Natural Gas Industry.
PNGRB Directs GAIL to Cease Restrictive Practices and Allow Pipeline Access
August 30, 2016
Gujarat State Petroleum Corporation Limited filed a complaint against GAIL (India) Limited alleging restrictive trade practices relating to access to common carrier pipeline capacity.
The matter involved allegations that GAIL prevented market access by requiring capacity reservation only on a firm basis with ship-and-pay commitments.
Following investigations and judicial review, the Petroleum and Natural Gas Regulatory Board held that GAIL was subject to the Affiliate Code of Conduct and had engaged in discriminatory practices.
PNGRB directed GAIL to cease such practices, provide non-discriminatory access to pipeline capacity, and imposed a civil penalty of ₹1 lakh under the PNGRB Act.
MARKET DEVELOPMENT – GLOBAL
Schlumberger Executes Deepwater Seismic Survey Contract with PETRONAS
September 22, 2016
PETRONAS entered into an agreement with Schlumberger to license a significant portion of the WesternGeco Campeche wide-azimuth deepwater seismic survey in the Gulf of Mexico.
The project provides access to more than 80,000 square kilometres of newly imaged subsurface data and supports exploration opportunities in Mexico’s offshore basins.
Golar LNG and Schlumberger Form OneLNG Joint Venture
July 25, 2016
Golar LNG and Schlumberger established OneLNG, a joint venture designed to accelerate the development of low-cost gas reserves into LNG projects.
The collaboration combines Schlumberger’s technical expertise with Golar’s Floating LNG technology to improve project economics and resource development efficiency.
Chevron and ENN Sign Long-Term LNG Supply Agreement
August 29, 2016
Chevron U.S.A. Inc. signed a binding LNG Sales and Purchase Agreement with ENN LNG Trading Company Limited of China.
Under the agreement, ENN will receive up to 0.65 million metric tonnes of LNG annually over a ten-year period beginning in 2018 or 2019.
Oil India Signs Strategic MoU with University of Houston
October 5, 2016
Oil India Limited entered into a Memorandum of Understanding with the University of Houston to collaborate on enhanced oil recovery, reservoir characterization, drilling practices, and unconventional hydrocarbon studies.
The partnership aims to improve production efficiency and support India’s long-term energy security objectives.
Indian Consortium Completes Landmark Russian Oil Asset Acquisitions
October 5, 2016
A consortium led by Oil India Limited, together with Indian Oil Corporation and Bharat PetroResources, successfully acquired strategic stakes in Taas-Yuryakh and Vankorneft from Rosneft.
These acquisitions significantly strengthened India’s overseas energy portfolio and enhanced access to major producing oil and gas assets in Eastern Siberia.
FEATURE
Vessel Owner’s Limitation of Liability
Maritime law recognizes the right of vessel owners to limit their liability following maritime accidents. The burden of proving circumstances that defeat this protection lies upon the party challenging the limitation.
India is a signatory to the Convention on Limitation of Liability for Maritime Claims, 1976 and its 1996 Protocol. The Merchant Shipping Act, 1958 was amended in 2002 to incorporate several principles from the Convention.
The Bombay High Court examined these provisions in the case of Murmansk Shipping Company v Adani Power Rajasthan Ltd., addressing:
- Whether certain conduct could bar limitation of liability.
- Whether liability limits should be determined under the 1976 Convention or the 1996 Protocol.
The Court affirmed the strong protection available to vessel owners and clarified that amendments to the Convention would continue to influence the interpretation of Indian maritime law.
The judgment reinforced the principle that vessel owners possess a substantial right to limitation of liability, except in narrowly defined circumstances.
STOP PRESS
Glencore Acquires Strategic Stake in Rosneft
December 8, 2016
Commodity trader Glencore Plc and Qatar’s sovereign wealth fund agreed to acquire a significant stake in Rosneft PJSC, Russia’s largest oil producer.
The transaction was valued at approximately €10.2 billion and represented one of the largest foreign investments in Russia since the Ukraine crisis.
The acquisition provides long-term access to Russian crude supplies while strengthening Rosneft’s international investment profile.
DISCLAIMER
The information contained in this private circulation is not legal advice and should not be relied upon as such.
The content is sourced from publicly available information and is intended solely for private and non-commercial purposes.
No representation is made regarding the accuracy, completeness, or reliability of the information provided.
This disclaimer shall be governed by and construed in accordance with the laws of India, and any disputes shall be subject to the exclusive jurisdiction of Indian courts.
Doc ID: 12O&G16
