Latest news with #OilandNaturalGasCorp
Mint
17-07-2025
- Business
- Mint
ONGC, bp tie up to drill stratigraphic wells in offshore sedimentary basins
New Delhi: State-run Oil and Natural Gas Corp. Ltd (ONGC) on Thursday signed a memorandum of understanding (MoU) with global energy major bp to collaborate on drilling stratigraphic wells in four offshore sedimentary basins in India—Andamans, Mahanadi, Saurashtra and Bengal. The MoU was signed during the second edition of Urja Varta 2025, a conclave on upstream oil and gas sectors organized by the Directorate General of Hydrocarbons. A stratigraphic well is drilled specifically to obtain geological information rather than for oil or gas production. "ONGC has signed a strategic Memorandum of Understanding (MoU) with bp_plc on 17 July 2025, to collaborate on drilling stratigraphic wells in India's Category II & III offshore sedimentary basins: Andaman, Mahanadi, Saurashtra, and Bengal. This partnership will enhance geological understanding and unlock untapped hydrocarbon potential, strengthening India's long-term energy security," ONGC said in a tweet. Commenting on the development Kartikeya Dube, head of country, bp India and senior vice president, bp group said: "We are excited to underpin our existing alliance with ONGC in this project of national and strategic significance. We believe drilling of new stratigraphic wells will be very valuable and can lead to a new understanding and potential." He added that bp's experience in deep water exploration supported by new seismic technologies would be of great assistance during the evaluation and subsequent drilling of stratigraphic wells. In the ninth round of auctions under Centre's Open Acreage Licensing Policy (OALP), ONGC tied up with Reliance Industries Ltd and bp plc for a block in the Saurashtra Basin. This marked the entry of London-headquartered bp into India's upstream exploration & production (E&P) space. In the ninth round ONGC secured 15 blocks—four in partnership with other players, and 11 independently. In February this year ONGC had signed an MoU with bp for collaboration in exploration and production of oil and gas, energy trading and other segments in the energy business both in India and internationally. The state-run energy major's shares on the BSE closed at ₹ 243.90 on Thursday, higher by 0.41% from its previous close.
Time of India
30-06-2025
- Business
- Time of India
July local natural gas price hits $6.75/MMBtu ceiling
Domestic natural gas price hit its ceiling of $6.75 per mmBtu in July, fuelled by a rise in global crude oil prices in June, to which it is linked. Crude prices surged in June after the Israel-Iran conflict stoked fears of supply disruption. It however erased all the gains following a ceasefire last week between the two countries. The government revises the Administered Price Mechanism (APM) rate every month based on the average crude price of the preceding month. The price is set at 10% of the Indian crude basket, subject to a ceiling of $6.75 per mmBtu. The gas price for July came to $6.89 per mmBtu based on the crude-linked formula but will be capped at $6.75, according to a notification by the oil ministry. This price is applicable to gas produced by state-run Oil and Natural Gas Corp (ONGC) and Oil India . Higher prices are likely to boost earnings of oil producers while eating into the margins of city gas distributors and other users of domestic gas. -Our Bureau Live Events
Hindustan Times
24-06-2025
- Business
- Hindustan Times
India seen cushioned on oil spike, for now
Rising international oil prices may not immediately result in an increase in petrol, diesel and cooking gas prices in India, and Indian consumers are unlikely to face supply disruptions even if Iran closes the Strait of Hormuz, government officials familiar with the matter claimed. India is less dependent on the Gulf region for crude oil. (HT Photo) India relies on diversified energy sourcing and could restrict exports of any refined petroleum product in case of domestic shortage, they added, asking not to be named. The price the Indian basket soared by about 19% to $77.34 a barrel (of crude oil) on Friday as compared to little over $65 per barrel before the Israel-Iran war -- and the US bombing of Iran is likely to push prices further north -- but India's average crude oil price in the month of June (as on June 23) was $69.78 a barrel, which is still manageable, the officials said. State-owned oil marketing companies (OMCs) did make some additional profits when average crude oil prices were low, so they may absorb increases in international crude rates up to $80, they added. Also Read | What is Strait of Hormuz that Iran may shut and how it will affect India India is less dependent on the Gulf region for crude oil, the officials said. India now sources large quantities of crude from about 30 countries, including Russia, the US, South America and African nations. To be sure, India still sources around 40% of the crude it imports from West Asia, and analysts say a closure of the strait could affect 40% of crude and 50-60% of LNG imports. India is the world's third largest crude oil consumer after the US and China. It imported 232.7 million tonnes of crude worth $157.5 billion in 2024-25 . The country imports over 88% of crude oil it processes and also exports various refined products. Being a refinery hub in the South Asian region, India also exports surplus petroleum products such as aviation turbine fuel, petrol and diesel. In FY25, it exported 61 million tonnes of petroleum products worth $57.3 billion. Also Read | Oil soars as Trump's attack on Iran ramps up risks to supplies 'If Iran closes the Strait of Hormuz, shortages could be met in the short-term through exports restriction,' one of the officials said. A longer closure could cause problems, though. On cooking gas (also known as domestic liquefied petroleum gas), a second official said state owned firms such as Oil and Natural Gas Corp (ONGC), Gail India, Indian Oil Corporation and Bharat Petroleum Corporation are producing enough to meet the domestic requirements. The second official acknowledged that India's LNG imports ' could be affected as about 60% of India's natural gas imports pass through Hormuz', but added that Iran was unlikely to close the strait because it would hit Iran's friends such as 'China, the most'. 'The impact would be largely on South Asia and Pacific regions such as China, Japan, India, Korea, Taiwan, Philippines and Singapore, who are major buyers of oil and LNG from West Asia' said SC Sharma, former officer on special duty at the erstwhile Planning Commission. He added that India also has about 80 days of oil and oil products stored in different types of storages to sustain short-term supply blips.
Gulf Insider
05-05-2025
- Business
- Gulf Insider
Saudi Push Into Indian Refining Is Stalling Over Crude Supply
Saudi Arabia's progress in securing investment in two oil refineries in India is being held back by a lack of consensus around crude supply, according to people familiar with the matter. The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth. But the early-stage discussions have stalled as Saudi negotiators push to supply half of the crude needed by the processors at official selling prices that are often above market rates, the people said, declining to be named due to the sensitivity of the talks. India wants Saudi's share of supply to be closer to its desired 20% stake in the ventures — and at a discount to so-called OSPs, the people said. India's oil ministry and the local project partners — Bharat Petroleum Corp. Ltd. and Oil and Natural Gas Corp. — didn't reply to emails seeking comment. Saudi Aramco did not immediately respond to a request for comment. State-owned Saudi Aramco is looking to help set up multibillion-dollar refineries in high-growth nations including China and India, as well as in Southeast Asia, to secure demand for its crude and ensure stability during market volatility, according to its latest annual report. Its weighted average share in overseas processors in 2024 was 35% but it supplied an average 53% of the crude they used, according to the document. The exporter is also looking to claw back market share. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its position in the market decline as discounted imports from Russia increase. A failure to agree on the projects would also be a diplomatic blow. Saudi Crown Prince Mohammed bin Salman — who announced the ventures at a meeting with India's Prime Minister Narendra Modi in Jeddah — had in 2019 pledged $100 billion of investments in India, but just a 10th of that has materialized. A proposed $60 billion refinery planned by Aramco, Abu Dhabi National Oil Co. and India's state firms, didn't materialize due to land acquisition issues. Plans to buy a 20% stake in billionaire Mukesh Ambani's Reliance Industries also fell through. That has increased pressure on both sides to finalize the investments in the new processors — BPCL's proposed refinery and petrochemical complex on the east coast and ONGC's on the west coast in Gujarat, the people said. However, without an agreement on discounted supplies, the Indian refiners see little reason for the Saudis to take a stake, especially as they can easily raise debt from local banks, they said. Saudi Arabia is also proposing to take a stake of as much as 15% in Indian Oil Corp.'s Panipat refinery, one of the people said, a plan which the Indian government plans to study.
Time of India
05-05-2025
- Business
- Time of India
Saudi push into Indian refining is stalling over crude supply
Saudi Arabia's progress in securing investment in two oil refineries in India is being held back by a lack of consensus around crude supply, according to people familiar with the matter. The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth. But the early-stage discussions have stalled as Saudi negotiators push to supply half of the crude needed by the processors at official selling prices that are often above market rates, the people said, declining to be named due to the sensitivity of the talks. India wants Saudi's share of supply to be closer to its desired 20% stake in the ventures — and at a discount to so-called OSPs, the people said. India's oil ministry and the local project partners — Bharat Petroleum Corp. Ltd. and Oil and Natural Gas Corp . — didn't reply to emails seeking comment. Saudi Aramco did not immediately respond to a request for comment. State-owned Saudi Aramco is looking to help set up multibillion-dollar refineries in high-growth nations including China and India, as well as in Southeast Asia, to secure demand for its crude and ensure stability during market volatility, according to its latest annual report. Its weighted average share in overseas processors in 2024 was 35% but it supplied an average 53% of the crude they used, according to the document. The exporter is also looking to claw back market share. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its position in the market decline as discounted imports from Russia increase. A failure to agree on the projects would also be a diplomatic blow. Saudi Crown Prince Mohammed bin Salman — who announced the ventures at a meeting with India's Prime Minister Narendra Modi in Jeddah — had in 2019 pledged $100 billion of investments in India, but just a 10th of that has materialized. A proposed $60 billion refinery planned by Aramco, Abu Dhabi National Oil Co. and India's state firms, didn't materialize due to land acquisition issues. Plans to buy a 20% stake in billionaire Mukesh Ambani's Reliance Industries also fell through. That has increased pressure on both sides to finalize the investments in the new processors — BPCL's proposed refinery and petrochemical complex on the east coast and ONGC's on the west coast in Gujarat, the people said. However, without an agreement on discounted supplies, the Indian refiners see little reason for the Saudis to take a stake, especially as they can easily raise debt from local banks, they said. Saudi Arabia is also proposing to take a stake of as much as 15% in Indian Oil Corp .'s Panipat refinery, one of the people said, a plan which the Indian government plans to study.
