Market Development – Global
Alaya Legal presents its fifteenth issue of the Oil and Gas: Ezine to its Readers. Web-links are provided for ready access to certain reference material. The contents are presented with a view to allow comprehensive update in a systematic manner, from the legal perspective.
Reference material
- Categories of proven reserves of oil and natural gas across the globe may be accessed at link
- Explanation with respect to broad categorisation in the Oil and Natural Gas Industry may be accessed at link
China National Offshore Oil Company’s BD Gas Field in Indonesia Commences Production
Date: August 1, 2017
CNOOC Limited holds 40% in Husky-CNOOC Madura Limited (HCML), operator of the Product Sharing Contract of the BD gas field along with Husky (40%) and Samudra Energy (20%). The gas field, located in Madura Strait at a water depth of ~55 meters currently has 2 wells in production and its gas and condensate sales production is ~7,200 barrels oil equivalent per day, expected to reach ~25,500 BOE/day in 2018.
Essar Oil Limited sold to Rosneft and Trafigura-UCP Consortium
Date: August 21, 2017
The controlling shareholders of Essar Oil Limited (EOL) — Essar Energy Holdings Limited and Oil Bidco (Mauritius) Limited — have announced the sale of 98.26% of EOL. Rosneft (through Petrol Complex Pte. Ltd) acquired 49.13%, and Trafigura-UCP consortium acquired 49.13%. Remaining 1.74% continues to be held by retail shareholders.
IndianOil’s first domestic gas & condensate field starts production
Date: August 29, 2017
On August 26, 2017, IndianOil commenced production of gas and condensate from Dirok field in its Pre-NELP block AAP-ON-94/1. IndianOil holds 29.03%, along with HOEC (26.88%, Operator) and Oil India Limited (44.08%, Licensee). Initial Phase-I production is ~10 MMSCFD gas and 120-140 bopd condensate from Dirok-1, 2 & 4 wells.
ONGC Videsh Limited’s ACG PSA with the Azerbaijan Government extended till 2049
Date: September 18, 2017
ONGC Videsh Limited and Consortium partners of the giant ACG Fields in Azerbaijan entered into an agreement with Azerbaijan Government and SOCAR to extend the Production Sharing Agreement (PSA) for Azeri-Chirag-Deep water portion of Gunashli (ACG) oil fields until Dec 31, 2049. Partners include BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO, ITOCHU. ONGC Videsh holds a participating interest in ACG fields in Azerbaijan Sector of Caspian Sea.
Procedural update on Cairns dispute with Government of India under the UK-India Bilateral Investment Treaty
Date: September 20, 2017
Arbitration proceedings in the tax dispute between Cairn and Government of India are well advanced. Tribunal and parties agreed on process and timetable for finalizing document production, submissions, and hearings. Final hearing scheduled for August 2018.
First crude oil cargo from the US received at Paradip – IndianOil
Date: October 2, 2017
The first US crude oil cargo of 1.6 million barrels bought by IndianOil from the US was received at Paradip Port on October 2, 2017. IndianOil has placed a cumulative order of 3.9 million barrels from the US.
Asia’s largest single mounded LPG storage facility inaugurated at Kochi Refinery
Date: October 4, 2017
BPCL inaugurated Asia’s largest single mounded LPG storage facility at its Kochi Refinery. Each bullet is 8 m dia × 80 m length, with design capacity 4270 m³, total mound area ~1.4 acre, housing six bullets. Four bullets designed for storing propylene. Total storage capacity 12 TMT.
Chevron Achieves First LNG Production at Wheatstone
Date: October 8, 2017
Chevron started LNG production at Wheatstone Project in Western Australia. Partners: Chevron (64.14%), KUFPEC (13.4%), Woodside (13%), Kyushu Electric (1.46%), PE Wheatstone Pty Ltd (JERA 8%). Chevron operator with 80.2% interest. LNG facility processes gas from Wheatstone & Iago fields; supply ~8.9 million metric tons/year to Asia. Located 7.5 miles west of Onslow.
Schlumberger, and Torxen Energy sign Agreement to Purchase Palliser Block in Canada from Cenovus Energy
Date: October 19, 2017
Schlumberger and Torxen Energy agreed to purchase Palliser Block in Alberta, Canada from Cenovus Energy for ~USD 1 billion. The Palliser Block consists of wells, surface facilities, pipeline network, ~800,000 acres of oil and gas rights. Current production ~54,000 BOE/d.
Adani Transmission Limited attains 8500 ckt kms transmission lines in operation
Date: November 1, 2017
ATL completed acquisition of 100% stake of Western Region Transmission Maharashtra & Gujarat (~3063 ckt kms). Cumulative network ~11,350 ckt kms (9000 in operation, 2350 under construction), 28 substations with >16,200 MVA transformation capacity.
Ingenious ‘Top Divided Wall Column’ at BPCL Mumbai Refinery
Date: November 16, 2017
BPCL Mumbai Refinery produces stringent quality hexane as byproduct along with isomerate from its Isomerization unit. First in India to produce with divided wall column.
IndianOil launches first charging station for electric vehicles at Company-owned fuel station in Nagpur
Date: November 19, 2017
IndianOil, in collaboration with Ola, launched the country’s first EV charging station at a petrol/diesel station in Nagpur to address vehicular pollution and air quality.
ONGC Videsh to acquire 15% interest in Petroleum Exploration License 0030, Offshore Namibia
Date: November 21, 2017
ONGC Videsh through OVVL signed agreements with Tullow Namibia Limited to acquire 15% interest in Namibia Petroleum Exploration License 0030 for Block 2012A from Tullow’s 25% stake. License under First Renewal Exploration Period; partners carrying out data evaluation for drill prospect.
Regulatory & Judicial Development – India
Energy Pvt. Ltd. as ‘Complainant’ v. IndianOil Corporation Limited as ‘Respondent’
Date: August 9, 2017
The Complainant lodged complaint against Respondents for violating PNGRB statutory and regulatory provisions while setting up the Paradip-Balasur-Haldia-Kalyani-Durgapur-Patna-Muzzafarpur LNG Pipeline without submitting an expression of interest to PNGRB. The Board ordered both parties to file responses within 4 weeks.
| An estimated 15 trillion watts of power are being used across our planet at any one time – that is equivalent to powering ten billion 100-watt light bulbs simultaneously. Smarter energy technologies and renewable energy growth will offset increases due to population growth. |
Next Issue
April 2018
In-house contributors
- Alak Desai, Oil & Gas Team
Sources
- Norwegian Petroleum Directorate
- S. Energy Information Administration
- The International Energy Agency
- Organisation of the Petroleum Exporting Countries
- The Oil and Gas Journal
- Official websites of various oil & gas companies
- Petroleum and Natural Gas Regulatory Board
- Directorate General of Hydrocarbon
- Ministry of Petroleum and Natural Gas
Disclaimer
The information in this private circulation is not legal advice and should not be treated as such. Information is taken from public domain and is purely for private and non-commercial purposes. We do not represent that the information is correct, accurate, complete, or non-misleading. This disclaimer is governed by Indian law; disputes subject to courts of India.
Doc ID: 15O&G17
