Page 148 - CW E-Magazine (7-5-2024)

Hydrocarbons Hydrocarbons

PRODUCTION TRENDS despite a 19% decrease from January’s second-largest supplier for most of the have contributed to the volatility in
Slight increase in output from overseas fi elds of oil PSUs $4.47-bn. The reduction in imports from past two years, slid to third place with crude oil markets, with prices briefl y
Russia follows a decline in the discounts February imports totalling $2.24-bn, surpassing the $90 per barrel mark.
offered, which have narrowed signifi - down 11.6% from $2.54-bn in January.
India’s state-run fi rms’ output from production had nearly halted for some countries, with Russia accounting for cantly from over $30 per barrel in 2022 Petroleum product consumption
overseas oil and gas fi elds marginally time following the exit of its operator the largest share of production for these to below $5 per barrel currently. The shift in India’s import dyna- Petroleum product consumption in
rose in 2023-24 after declining for four Exxon. fi rms. Big investments in Russian fi elds mics comes amid escalating tensions in India was reported at 19.75-mt in
straight years. The output, however, in 2015-16 helped boost Indian fi rms’ Saudi Arabia surpassed Iraq to West Asia, notably due to recent mis- February, a 1.3% decrease from January’s
remained a fi fth below the peak of 2018-19 Similarly, production at ONGC overseas output in the past decade. become India’s second-largest oil sile and drone attacks by Iran on Israel, 20.01-mr, according to the Petroleum
as producing fi elds matured and no Videsh’s two projects in South Sudan, India’s overseas output surged two and supplier, with imports jumping 67.5% raising concerns over the security of oil Planning and Analysis Cell (PPAC).
new overseas assets were acquired in which were shut by unprecedented a half times to 24.7-mmtoe in 2018-19 to $2.6-bn from $1.55-bn in January. supplies through the Strait of Hormuz, However, consumption rebounded in
recent years. The share of India’s state fl oods previously, resumed in 2023-24. from 9.9-mmtoe in 2014-15. The out- Meanwhile, Iraq, which had been the a crucial supply route. These tensions March to 21.09-mt.
companies in oil and gas production put started declining in 2019-20, falling
from overseas fi elds increased to 19.9-mt Voluntary production cuts by every year until 2022-23, as fields EXPANSION
of oil equivalent (mmtoe) in 2023-24 OPEC+ countries, led by Saudi Arabia matured. Indian fi rms also slowed down Reliance gets govt. nod for additional investment
from 19.5-mmtoe in the previous year. and Russia, also affect Indian fi rms’ on acquiring assets after the purchases
overseas output. Russia, UAE, Azer- in Russia and the UAE seven-eight to raise KG-D6 gas output
Production at Russia’s Sakhalin-1 baijan and South Sudan are members years ago. Some of the exploration and
project normalised during the fi nan- of OPEC+, a grouping of about two discovered assets they had acquired
cial year, after being badly affected in dozen oil-producing countries that previously haven’t started production. Reliance Industries Ltd. (RIL) has sets of discoveries, with MJ being the 188-mmscmd, with the difference
2022 following the launch of the Russia- jointly coordinate oil production and The giant gas fi eld in Mozambique, got government approval for making deepest, were made more than a decade being met through imports.
Ukraine war. ONGC Videsh, India’s have been producing less than their capa- where ONGC, BPCL and Oil India additional investments in developing back and have been progressively put
largest investor in overseas oil and gas city. Some of Indian fi rms’ key pro- have invested, is stuck due to the poor gas reserves in its KG-D6 block in the into production. Prior to that, they had “When we look at the (domestic)
fi elds, has a stake in Sakhalin-1, where ducing assets are located in these four law and order situation. Bay of Bengal that can add 4 to 5 million brought the R-Cluster fi eld to produc- production, we can see clearly there’s
standard cubic metres per day to the tion in December 2020 and the Satel- been a sharp increase in production
RENEWABLE ENERGY production, a company offi cial said. lite Cluster in April 2021. KG-D6 has since FY21. And although the overall
Gruner Renewable Energy bags order for CBG plants Reliance and its partner BP currently helped domestic production of natural domestic production, besides KG-D6,
has been fl at, KG-D6 production is
produce around 30-mmscmd or about gas, which is used to generate electri-
30% of India’s gas production, from the city, make fertiliser or turned into almost 90% of the incremental domestic
Gruner Renewable Energy said it projects are strategically located across “By leveraging our current orders in
has bagged multiple projects worth various cities, including Ayodhya (Uttar hand, we aim to reduce India’s overall KG-D6 block. CNG for running automobiles or piped gas production,” Mr. Roy said. Reliance
to kitchens for cooking, touching a is the operator of the KG-D6 block
Rs. 1,500-crore for Compressed Biogas Pradesh), Satna (Madhya Pradesh), expenditure on crude oil imports by At an investors’ call announcing the multi-year high of 99-mmscmd. Total with a 66.67% stake and BP holds the
(CBG) plants across the country, within Balasore (Orissa), Navsari (Gujarat), Rs. 8-bn. Furthermore, our efforts aim fourth quarter earnings, Mr. Sanjay Roy, gas demand in the country is around remaining 33.33%.
the fi rst year of its incorporation. Gruner Yavatmal (Maharashtra), and Vijayawada & to benefi t farmers and generate employ- Senior Vice-President for exploration
secured 11 projects from India’s lead- Rajahmundry (Andhra Pradesh). ment in the energy industry, fostering and production at RIL, said the develop- ANNUAL PERFORMANCE
ing business conglomerate valued awareness and development. We aspire ment plan for incremental production CPCL posts fall in net profi t in FY24
Rs. 1,100-crore and 19 other projects, For smooth operations of these to play a pivotal role in India’s commit- has been approved by the Government.
worth Rs. 400-crore from individual projects, Gruner will add around 900 ment to becoming a net-zero economy “One good aspect of this quarter gone Chennai Petroleum Corporation in FY23. Revenue from operations was
business leaders, the company said. professionals and skilled labour, taking by 2070 through renewable energy,” by was that we had an incremental Ltd. (CPCL) has reported a signifi cant lower at Rs. 79,272-crore, as against
its workforce to a total of 2,500 emplo- Mr. Utkarsh Gupta, CEO, Gruner, said.
The fi rm will develop CBG plants, yees, including site workers, by next The company, which started its opera- development plan approved by the Govern drop in its net profi t for the March 2024 Rs. 90,908-crore.While the nameplate
which will collectively contribute to quarter. They will be deployed at vari- tions in February 2023, currently over- ment, which has the potential to deliver quarter and the full fi scal FY24 amid capacity of CPCL’s Manali refi nery is
10.5-mtpa, the company achieved a
incremental production of 4 to 5 million marginal improvement in physical per-
a production of over 88-ktpa of CBG ous locations including the corporate sees a portfolio comprising 30 on-going standard cubic meters (per day) in the formance. However, the board recom- crude throughput of 11.6-mt, the highest-
for the Indian market, it added. The offi ce in Noida, NCR. projects nationwide.
coming few years, which would aug- mended a preference dividend of 6.65% ever physical performance, when
ENERGY TRENDS ment the production that we have,” he on the outstanding preference shares compared with 11.3-mt in FY23.
February oil imports rise amid shifts in global market said. He, however, did not give details amounting to Rs. 33.25-crore for FY24 The average gross refi ning margin
of the investment approved.
and a fi nal equity dividend of Rs. 55 per
dynamics Reliance-BP produces some equity share, subject to approvals. stood at $8.64 per barrel in FY24 period,
compared with $11.91 per barrel in FY23.
India’s total oil import bill surged to month, despite a slight dip in domestic Russia continued to be the largest 30-mmscmd of gas from three sets The company’s standalone PAT EPS (earnings per share) decreased to
$13.25-bn in February, marking a 10% consumption, according to data from crude oil supplier to India, with ship- of discoveries in the deep-sea KG- declined to Rs. 2,711-crore in 2023-24 Rs. 182.07 in FY24 from Rs. 237.31 in
increase from $12.04-bn in the previous the ministry of commerce and industry. ments valued at $3.61-bn in February, DWN-98/3 or KG-D6 block. All three when compared with Rs. 3,534-crore FY23 as a result of subdued performance.

148 Chemical Weekly May 7, 2024 Chemical Weekly May 7, 2024 149

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