India again extends bid deadline for oil, gas blocks
India has again extended a deadline to 21 September for submitting bids for 28 upstream oil and gas blocks to be developed.
The deadline for the ninth bidding round under the Hydrocarbon Exploration and Licensing Policy's Open Acreage Licensing Programme has been repeatedly extended, with the latest extension because of the amendment of an existing law to enhance the ease of doing business in the exploration and production sector. The law will involve incorporating consequential investor-friendly changes in the model revenue-sharing contract for the current and subsequent rounds, the government said.
The law amendments propose to grant the petroleum lease on stable terms where its terms will not be altered to the disadvantage of the lessee during the period of the lease, while allowing sharing of production facilities and infrastructure.
The ninth bidding round was announced on 3 January with bids due by 29 February. It was then extended to 15 May and then to 31 August.
India has offered 136,596.45km² in 28 upstream oil and gas blocks in the ninth bidding round, with the previous extension to provide more granular data about the blocks to help upstream companies make a decision.
India also extended the deadline for bids for a special upstream bidding round to 13 September from 16 August. It had invited bids for two discovered small oil and gas fields located in the Mumbai offshore region and one coal-bed methane gas field in West Bengal, with the deadline initially set for 15 July.
India will offer a total of 25 oil and gas blocks in the tenth bidding round after the conclusion of the ninth round. The offer will cover 13 sedimentary basins, including six onshore blocks with an estimated area of 16,871km², six shallow water blocks covering 41,391km², one deepwater block of 9,991km² and 12 ultra deepwater blocks of 12,3733km².
India's upstream licensing has largely been dominated by domestic firms. State-controlled upstream firm ONGC in January secured seven of the 10 areas in exploration blocks offered under India's eighth open acreage licensing policy drilling round. A private-sector consortium of domestic conglomerate Reliance Industries and BP, state-controlled upstream firm Oil India and private-sector Sun Petrochemicals received one block each.
India's hydrocarbon exploration has been lacking because of slow policy implementation, limited discoveries, shrinking exploration capital and a complicated tax regime.
India produced 427,000 b/d of crude during April-July, 1pc lower from a year earlier, according to government data. India imported about 88.3pc of its crude requirements during April-July, up from 87.8pc a year earlier. The country has been trying to increase its domestic crude production and reduce its dependence on imports.
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London, 2 September (Argus) — The net long position of investment funds at the Dutch TTF gas hub has reached a record high of nearly 267TWh, according to the latest data released by the Ice exchange. The net long position had already reached a 2.5-year high of nearly 130TWh by mid-June . This position was roughly unchanged until late July. But there then came a sharp 61TWh jump between 26 July and 2 August, and a further 42TWh increase by 9 August. For the week ending 16 August, investment funds held a combined net long position of just under 266.6TWh, although it had edged down to 263.2TWh by the week ending 23 August, the most recent data show. Both of these figures surpass the previous record on 16 April 2021 of 262.6TWh ( see net position graph ). This first week of August was when prices in Europe shot up to a nine-month high following news of damage to the metering station at Sudzha, where the only functioning Russia-Ukraine gas border point is located. Such a large increase in investment funds' position over that period hints at their influence on overall price formation. The overall change in net position has been driven by both the opening of more long positions as well as the closing of short positions. Between 26 July and 23 August, investment funds' long positions increased by 79TWh to 465TWh. In the same period, their short positions dropped by just over 53TWh. Their short positions increased by 10TWh in the week of 16-23 August, just as TTF prices fell as market concerns around fighting near Sudzha subsided. Expectations of continued price volatility may have driven investment funds to build up their long positions. The future of Russian transit through Ukraine beyond this year is unlikely to be decided until late in the year, while significant Norwegian maintenance will drive down European supply this month and may continue to be adjusted at short notice. Investment funds typically make their money from price volatility, whereas utilities make most of their money from the margins on their sales to customers and associated services. The nearly 132TWh increase in investment funds' net long position between 26 July and 23 August is in sharp contrast to movements from other types of market participants. Commercial undertakings, defined as companies with retail portfolios, switched from a small net long position of 49TWh to a net short position of 40TWh. And investment and credit firms, which had already held sizable net short positions, increased them by a further 44TWh in this time to a total net short of 223TWh. Combining the total net short positions of commercial undertakings and investment and credit firms gives a total of around 263TWh, almost exactly matching investment funds' net long positions. Commercial undertakings' movements were largely driven by "risk reduction contracts", which more than tripled from a net short of 60TWh on 26 July to nearly 191TWh on 16 August, before falling to 177TWh on 23 August ( see commercial undertakings graph ). On aggregate this is the largest net short position on risk reduction contracts since the end of 2021. Firms have to hedge large physical long positions in the storage market, with EU storage sites already over 92pc full. At the same time, commercial undertakings' net long positions on contracts classified as "other" rose by around 30TWh to 138TWh, leaving a total net short position of 40TWh. By Brendan A'Hearn Ice TTF net positions 2018-present TWh Commercial undertakings' net positions 2018-present TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Opec+ unwinding to weigh on sour grades in Europe
Opec+ unwinding to weigh on sour grades in Europe
London, 2 September (Argus) — Sour crude prices in Europe could come under pressure if Opec+ unwinds its voluntary output cuts as planned, but a halt to Libyan exports might temper the effect. Eight members of the Opec+ alliance — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — plan to phase out 2.2mn b/d of extra cuts that were implemented in November last year in 12 monthly steps of about 180,000 b/d from October this year. But the plan carries a proviso that the unwinding is subject to "market conditions", leaving flexibility to the eight producers — and uncertainty to other market participants. The short-term demand outlook for medium and heavy grades in Europe has been gloomy. European refiners are taking some of their capacity off line for maintenance in September-November. And middle distillate crack spreads have been weak and deteriorating over the past two weeks, stoking expectations that crude runs will remain low even after the maintenance is completed. Saudi Aramco cut its official formula prices for September-loading supplies to European buyers by $2.65-2.75/bl. The Mideast Gulf giant is usually the first to publish official prices, and other regional producers tend to follow its adjustments when deciding their own prices. Some traders think subdued demand in Europe will predispose producers to cut their official prices again in October. The return of medium and heavy crude supply to the market, coupled with steady or lower official prices from Mideast Gulf producers, could weigh on differentials for spot supplies, market participants suggest. Some key grades are already under pressure. Norway's medium sour Johan Sverdrup, the single-largest grade of that quality in Europe, fell to a four-month low against benchmark North Sea Dated in late August, at a $1.10/bl discount. Several September-loading cargoes are still available, mostly in the second half of the month, when refiners would have largely secured their September supplies, and the October export plan has already been published. Brazilian medium sweet Buzios also dropped to a four-month low relative to North Sea Dated, while Iraqi Basrah Medium has been at a discount to its European formula price for most of August, down from a premium in July. Libyan halt At the same time, any spot crude price corrections are likely to be limited over the short to medium term, in light of a potential halt to crude exports from Libya, traders say. Libya's eastern-based government in late August ordered all crude production and exports from the country to cease, the latest manifestation of the long-standing political tensions in the country. While some cargoes were still loading in late August from stocks, the move will effectively remove 1mn b/d of supply, 85pc of which has been going to European refiners. Libya mostly produces light sweet crude and does not directly compete with Opec+ producers. The absence of exports from the country is mainly expected to boost prices for its key competitor Algerian Saharan Blend and also support prices for light sweet supplies from the US, North Sea, west Africa and the Russia-Caspian region. But both Libyan and Mideast Gulf grades are rich in middle distillates, even though Mideast Gulf grades are typically more sulphurous than Libyan crude. A prolonged 850,000 b/d supply gap would push refiners to adjust their slates and seek any replacements available, lifting crude prices across the board and essentially cancelling out the unwinding of the Opec+ cuts over the next few months — provided the process takes place as scheduled. By Lina Bulyk and Kuganiga Kuganeswaran Norwegian and Iraqi crude vs Dated Selected European imports by origin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Order ending Canadian rail work stoppage appealed
Order ending Canadian rail work stoppage appealed
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Libyan crude production slips below 600,000 b/d
Libyan crude production slips below 600,000 b/d
Dubai, 30 August (Argus) — Libya's crude output has fallen to below 600,000 b/d, less than half what the country was producing just a month ago, according to figures reported by state-owned oil company NOC. Production has plummeted in recent days after Libya's eastern-based administration announced a blockade on oil output and exports in response to moves by its rival, the Tripoli-based Presidential Council, to replace the central bank governor. Libya produced 591,024 bl on 28 August, NOC said, down from 783,422 bl on 27 August and 958,979 bl on 26 August, NOC said. Production is almost certain to have fallen further on 29-30 August. It represents a more than halving of output in the space of just a month. Production stood at 1.28mn bl on 20 July, NOC said, while Argus assessed the July average at 1.2mn b/d. Total losses over 26-28 August amounted to around 1.5mn bl, worth just over $120mn. NOC said. All of Libya's eastern oil terminals — Es Sider, Ras Lanuf, Zueitina, Marsa el Hariga and Marsa el Brega — received instructions to stop operations at 15:00 local time on 29 August, according to port agents in the country. Some tankers have managed to load crude since the blockade was announced at the start of the week. The New Amorgos and Ohio loaded at Zueitina and Es Sider, respectively, and have since sailed from the country. Five more tankers were scheduled to load crude in the country from today, according to Kpler tracking, four of them in the east. The clash between the rival east and west political factions in Libya had been brewing for over week before the blockade announcement. The eastern-based Libyan National Army (LNA) has imposed several politically motivated oil blockades in the past few years. The LNA ordered the shutdown of the El Sharara field earlier this month, resulting in the loss of around 250,000 b/d of output. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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