INDIAN - IRANIAN GAS INVESTMENT
AOG - The Indian consortium led by the state-owned Oil and Natural Gas Corporation (ONGC) is willing to spend as much as $11bn to develop the giant Iranian natural gas field it discovered in 2008.
ONGC Videsh Ltd (OVL), the foreign E&P arm of ONGC, has offered to the build the infrastructure to export the gas, as long as Iran guarantees the consortium a "reasonable return" on the project.
OVL has offered to invest as much as $6bn on the Farzad-B field and spend the remaining amount to build a liquefied natural gas (LNG) export facility, according to Narendra Kumar Verma, OVL's managing director.
The consortium is seeking a return of about 18% and Indian companies are willing to buy all the gas exported from the project, Verma said.
"We have given our best offer to them. Now, it is up to them to agree or not agree," Verma told India's NDTV news network. "We have told the Iranian authorities very clearly that some basic returns are necessary."
As India, the world's fourth-largest LNG buyer, seeks to secure gas resources to meet growing demand and spur the use of cleaner-burning fuels, Iran is emerging from sanctions that stifled investment in its energy sector.
The two countries had aimed to conclude a deal by February on developing the field, which India has said holds reserves of almost 19tn cubic feet. The consortium, which includes Indian Oil Corp. and Oil India Ltd., has been trying to secure development rights to the Farzad-B gas field since at least 2009.
The delay over a final outcome has started hurting oil trade between the two countries. India, which bought Iranian crude even during the years of US-led sanctions against Tehran, has recently reduced purchases, leading to the withdrawal by Iran of some benefits on sales in retaliation, Bloomberg reported in April.
"We are ready to invest," Verma said. "Ultimately, that's positive for them."
India is promoting the cleaner-burning fuel to curb the use of more polluting alternatives such as coal and petroleum coke, an oil-refining by-product, to meet its pledge of slashing emissions by a third by 2030.
ONGC Videsh and Indian Oil each own 40% interest in the Farsi block that holds Farzad-B field, while Oil India has 20%.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.