ONGC eastern offshore natural gas output all set to float to 2 mmscmd
23 Jan 2014 11:46 PM GMT
Ashok Varma, executive director (asset manager) Eastern Offshore, said the oil and gas major has chalked out a programme to take up drilling of 40 to 45 wells by 2019.
The eastern offshore wing of the PSU has also sent proposals to hire four more rigs to meet the requirements.
‘With these two wells, the total production from the eastern offshore will be about two million cubic meters gas.
These are gas fields. We get very little oil which is negligible. As of now we are getting 6.5 lakh cubic meters of gas and 50 cubic meters of oil from the eastern offshore wells per day,’ Varma said.
The additional gas production expects to give a fillip to the company's topline as C Rangarajan's gas pricing formula is expected to come into force from April.
Varma added that these two wells are located in G1 and S1 fields, which are situated around 28 km from the shore.
ONGC, which has 24 blocks in KG Basin, currently produces 840 tonnes of oil per day and 3.8 MMSCMD of gas from its onshore blocks, a senior official of ONGC had earlier said.
HC stays downstream oil watchdog’s order that tells Reliance co to let GMR Energy use pipeline
New Delhi: The Delhi High Court on Wednesday stayed the order of the Petroleum and Natural Gas Regulatory Board (PNGRB) directing Reliance Gas Transportation Infrastructure Ltd (RGTIL) to ensure access to GMR Energy Ltd to its pipeline for transportation of natural gas from west coast to its power plant in Andhra Pradesh.
A bench of Justice Manmohan stayed the 11 November, 2013 order of the Board after the Fertilizers Association of India (FAI), an association of 22 fertilizer units, moved a petition saying the order would result in burdening them with additional liability of about Rs 540 crores.
The petition said the order is only to benefit GMR and the decision of the board was taken without hearing the Centre or any other affected party, which is against principle of natural justice.
PNGRB had in its order last year directed RGTIL to provide within 40 days access to GMR Energy under the provisions of PNGRB (Access Code for Common or Contract Carrier Natural Gas Pipeline) Regulations, 2008. PNGRB had passed the order on the complaint of GMR Energy against RGTIL, which is operating a common carrier pipeline, in which it has said that RGTIL was not providing it open access to transport natural gas from west coast to its power plants in Andhra Pradesh. FAI said in its petition that the order of the board would ‘burden the fertilizer units with additional liability of about Rs 540 crore to exclusively benefit power units and irreparably prejudicing fertilizer units by covering central sales tax of two per cent being imposed upon such transactions to state sales tax at the rate of 14.5 per cent.’
It said ‘the board passed the order without hearing FAI or the Union of India significantly when the impugned directions do not make the said arrangement tax/revenue neutral and convert a Central Sales Tax arrangement to State VAT contrary to the guidelines of swapping natural gas issued by the ministry.’
The board had directed RGTIL to allow in 40 days to act upon its directions for virtually transporting RLNG from west coast to east coast (Andhra Pradesh) customers by physically delivering KD-D6 gas to customers inside the state and RLNG to customers outside the state which is a swapping transaction as defined under guidelines on swapping of natural gas issued by the Ministry of Petroleum and Natural Gas.
Reliance Industries Ltd and GAIL had entered a swap deal of Re-liquefied Natural Gas (RLNG) with natural gas to be fed into the grid pipeline in Andhra Pradesh for supply to the gas-starved plants. The petition by FAI has been filed against Department of Fertilizers, PNGRB, GMR Energy, seeking a direction to the board that swapping, if any, must protect their interests by ensuring excess levy is borne by the beneficiary. It also seeks a direction to the board to comply with the swapping guidelines.
The eastern offshore wing of the PSU has also sent proposals to hire four more rigs to meet the requirements.
‘With these two wells, the total production from the eastern offshore will be about two million cubic meters gas.
These are gas fields. We get very little oil which is negligible. As of now we are getting 6.5 lakh cubic meters of gas and 50 cubic meters of oil from the eastern offshore wells per day,’ Varma said.
The additional gas production expects to give a fillip to the company's topline as C Rangarajan's gas pricing formula is expected to come into force from April.
Varma added that these two wells are located in G1 and S1 fields, which are situated around 28 km from the shore.
ONGC, which has 24 blocks in KG Basin, currently produces 840 tonnes of oil per day and 3.8 MMSCMD of gas from its onshore blocks, a senior official of ONGC had earlier said.
HC stays downstream oil watchdog’s order that tells Reliance co to let GMR Energy use pipeline
New Delhi: The Delhi High Court on Wednesday stayed the order of the Petroleum and Natural Gas Regulatory Board (PNGRB) directing Reliance Gas Transportation Infrastructure Ltd (RGTIL) to ensure access to GMR Energy Ltd to its pipeline for transportation of natural gas from west coast to its power plant in Andhra Pradesh.
A bench of Justice Manmohan stayed the 11 November, 2013 order of the Board after the Fertilizers Association of India (FAI), an association of 22 fertilizer units, moved a petition saying the order would result in burdening them with additional liability of about Rs 540 crores.
The petition said the order is only to benefit GMR and the decision of the board was taken without hearing the Centre or any other affected party, which is against principle of natural justice.
PNGRB had in its order last year directed RGTIL to provide within 40 days access to GMR Energy under the provisions of PNGRB (Access Code for Common or Contract Carrier Natural Gas Pipeline) Regulations, 2008. PNGRB had passed the order on the complaint of GMR Energy against RGTIL, which is operating a common carrier pipeline, in which it has said that RGTIL was not providing it open access to transport natural gas from west coast to its power plants in Andhra Pradesh. FAI said in its petition that the order of the board would ‘burden the fertilizer units with additional liability of about Rs 540 crore to exclusively benefit power units and irreparably prejudicing fertilizer units by covering central sales tax of two per cent being imposed upon such transactions to state sales tax at the rate of 14.5 per cent.’
It said ‘the board passed the order without hearing FAI or the Union of India significantly when the impugned directions do not make the said arrangement tax/revenue neutral and convert a Central Sales Tax arrangement to State VAT contrary to the guidelines of swapping natural gas issued by the ministry.’
The board had directed RGTIL to allow in 40 days to act upon its directions for virtually transporting RLNG from west coast to east coast (Andhra Pradesh) customers by physically delivering KD-D6 gas to customers inside the state and RLNG to customers outside the state which is a swapping transaction as defined under guidelines on swapping of natural gas issued by the Ministry of Petroleum and Natural Gas.
Reliance Industries Ltd and GAIL had entered a swap deal of Re-liquefied Natural Gas (RLNG) with natural gas to be fed into the grid pipeline in Andhra Pradesh for supply to the gas-starved plants. The petition by FAI has been filed against Department of Fertilizers, PNGRB, GMR Energy, seeking a direction to the board that swapping, if any, must protect their interests by ensuring excess levy is borne by the beneficiary. It also seeks a direction to the board to comply with the swapping guidelines.
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