INDIA APPROVED $3 BLN
According to WSJ, India's federal cabinet on Wednesday approved two deals worth about $3 billion that will allow a consortium of Indian state-run oil companies to buy stakes in two Russian oil fields, a top government official said.
A consortium of Oil India Ltd., Indian Oil Corp. Ltd. and Bharat Petro Resources Ltd., which is the exploration and production arm of Bharat Petroleum Corporation Ltd., had in March agreed with Russian state-run oil company Rosneft to buy a 23.9% stake in its Vankor oil fields. The deal, worth about $2.02 billion, was approved by the cabinet Wednesday, said an official, who didn't wish to be named.
The cabinet also approved another deal worth $1.24 billion reached by the three companies earlier this year to acquire a 29.9% stake in Russia's Taas-Yuryakh oil field, the official added.
The deals reflect India's growing interest in snapping up cheap offshore assets amid the tumble in global crude-oil prices.
India is the world's third-largest energy consumer and imports roughly 75% of its oil. Oil prices fell to nearly 12-year lows this year under pressure from a deepening supply glut and signs of economic weakness in China, the world's second-biggest oil consumer.
With lower crude prices making investments in energy development abroad more affordable, India has asked state enterprises to look for deals with resource-rich nations such as Russia, Saudi Arabia, the United Arab Emirates and, now that international sanctions have lifted, Iran.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.