Oil & Gas Industry Archives - Page 2 Of 3

19Apr

By Pallab BhattacharyaNo Comments

Oil & Gas Industry

Gas Gamble in India’s Remote Northeast

Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL) have agreed to set up Arunachal Pradesh’s first state-wide City Gas Distribution (CGD) network, taking India’s natural gas expansion to one of its most sparsely populated and geographically difficult states. The licence, awarded under the 12th round of the Petroleum and Natural Gas Regulatory Board (PNGRB), covers the entire state rather than select districts, making it the first comprehensive CGD concession in India’s northeastern frontier. Structure and Infrastructure The venture will be operted as a 50:50 joint venture between the two state-run energy companies, with provision for the Arunachal Pradesh government to take up to 10 per cent equity. The network will include compressed natural gas (CNG) stations fo...

ONGC — earnings resilience, partnerships deepen

19Apr

By Newscript News NetworkNo Comments

Oil & Gas Industry

ONGC — earnings resilience, partnerships deepen

By Newscript News Network August 25, 2025 Oil and Natural Gas Corporation’s Q1 FY26 results showed resilience: net profit of ₹11,554 crore, up 18.2% year-on-year, even as revenues softened. The improvement reflected stronger subsidiary contributions and a better product mix. That bottom-line strength coincided with a credit upgrade. S&P Global Ratings lifted ONGC to BBB from BBB-, mirroring India’s sovereign rise. “The upgrade lowers funding costs at a time of elevated investment,” said a Delhi-based energy analyst. Strategically, ONGC is diversifying its acreage portfolio. It took the largest share in OALP-IX and signed joint operating agreements with Oil India Ltd on three blocks, formalised in August. These partnerships allow ONGC to spread financial and technical risk....

Traditional Energy’s Strategic Response: BPCL’s Andhra Pradesh Gambit

19Apr

By Newscript News NetworkNo Comments

News Update, Oil & Gas Industry

Traditional Energy’s Strategic Response: BPCL’s Andhra Pradesh Gambit

India’s transition policy has emphasised coexistence—scaling renewables while securing petroleum supply. BPCL’s proposed $6–7 billion refinery-petrochemical complex at Ramayapatnam, Andhra Pradesh, illustrates this balance. The project, financed through a 70:30 debt–equity structure, integrates refining with petrochemicals. Refining offers 5–8% margins, petrochemicals 15–20%, making the model resilient. Port proximity ensures export competitiveness to Southeast Asia, in line with India’s aspiration to become a regional energy hub. BPCL’s move aligns with government priorities: industrial competitiveness, energy security, and gradual diversification. “This is not a retreat by traditional energy—it is a repositioning,” said an energy analyst. Environmental scrutiny and ESG complianc...

India’s Offshore Gamble: ONGC, Reliance and BP Unite in Saurashtra

19Apr

By Pallab BhattacharyaNo Comments

Oil & Gas Industry

India’s Offshore Gamble: ONGC, Reliance and BP Unite in Saurashtra

India’s growing dependence on imported crude oil has become a defining challenge for its economy. The country now imports nearly 85% of its oil requirements, creating a $220bn annual burden. Against this backdrop, three very different players — ONGC (Oil and Natural Gas Corporation), Reliance Industries Ltd (RIL) and BP Exploration — have joined forces in a new consortium to explore the Saurashtra basin offshore block. The partnership, under the government’s Open Acreage Licensing Policy (OALP-IX), will focus on Block GS-OSHP-2022/2 off the coast of Gujarat. ONGC will serve as the operator with a 40 per cent stake, while Reliance and BP each hold 30 per cent. The project has been billed by the Ministry of Petroleum as a strategic collaboration to enhance India’s energy security. Join...

India plots dramatic gas surge to 15% of energy mix in fossil fuel pivot by 2030

19Apr

By Newscript News NetworkNo Comments

News Update, Oil & Gas Industry

India plots dramatic gas surge to 15% of energy mix in fossil fuel pivot by 2030

New Delhi has announced ambitious plans to increase natural gas’s contribution to India’s energy mix from current levels of approximately 6.5 per cent to 15 per cent by 2030, according to petroleum ministry officials. The target forms a cornerstone of India’s strategy to reduce coal dependence whilst maintaining energy security during the transition to renewable sources. The government’s natural gas promotion strategy encompasses expanding pipeline infrastructure, encouraging industrial fuel switching, and developing city gas distribution networks across urban centres. Current gas infrastructure constraints have limited adoption despite price competitiveness compared to liquid fuels in transportation and industrial applications. Petroleum ministry data indicates that achieving the 15...

ONGC Begins Gas Sales from Chinnewala Tibba Field

19Apr

By Pallab BhattacharyaNo Comments

Oil & Gas Industry

ONGC Begins Gas Sales from Chinnewala Tibba Field

Oil and Natural Gas Corporation (ONGC) commenced natural gas sales from the Chinnewala Tibba field in Rajasthan on August 25, 2025, according to company statements. Newscript is founded by a retired executive director of ONGC. The state-owned company began supplying 1.0 lakh standard cubic meters of gas per day to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) at Ramgarh through ONGC’s Gamnewala Gas Collection Station. The Chinnewala Tibba block covers 73 square kilometers in western Rajasthan near the Indo-Pakistan border under the Rajasthan Kutch Onland Exploratory Asset (RKOEA). The field was developed under the Discovered Small Field (DSF-II) framework. ONGC Director (Strategy & Corporate Affairs) Arunangshu Sarkar and Director (Exploration) Om Prakash Sinha atte...

GST Hike Squeezes Oil Explorers as Tax Burden Climbs to 18%

19Apr

By Newscript News NetworkNo Comments

News Bulletin, Newsletter, Oil & Gas Industry

GST Hike Squeezes Oil Explorers as Tax Burden Climbs to 18%

Executive note India’s oil exploration sector faces a punishing fiscal blow after the GST Council’s decision to raise service taxes from 12% to 18%. The September 2025 hike will saddle upstream companies with billions in additional costs, squeezing ONGC, Oil India, Vedanta and Reliance at a time when commodity price volatility and currency pressures already challenge project economics across the energy sector. India’s upstream oil and gas industry has absorbed a significant fiscal shock following the Goods and Services Tax (GST) Council’s decision to increase rates on exploration and production services. The tax rate climbs to 18% from 12%, effective September 22, 2025, covering petroleum exploration, mining, drilling, and related support activities across the sector. Indu...

ONGC squeezes brownfields while scouting new offshore pools

19Apr

By Newscript News NetworkNo Comments

Oil & Gas Industry

ONGC squeezes brownfields while scouting new offshore pools

Oil and Natural Gas Corporation (ONGC) reported an 18% rise in consolidated profit in Q1 FY26, despite a 20% fall in realised crude prices to $66 per barrel. The story is one of disciplined engineering: smaller exploration finds in Mumbai Offshore, restart of the PY-3 field in the Cauvery Basin, and enhanced oil recovery projects at mature fields in Ahmedabad. Gas is becoming the strategic cushion. ONGC has brought coal-bed methane from North Karanpura to market and commenced supplies from Tripura into GAIL’s city-gas network. These incremental additions mirror international practices—Equinor in Norway and Petrobras in Brazil have likewise prioritised brownfields and small pools when prices soften. Safety remains under scrutiny after a recent fatal incident at subsidiary MRPL. Manage...

Indian Oil balances volatile margins with LNG hedges and Russian barrels

19Apr

By Newscript News NetworkNo Comments

Oil & Gas Industry

Indian Oil balances volatile margins with LNG hedges and Russian barrels

Indian Oil Corporation (IOC), India’s largest refiner, saw profit pressure in the June quarter as marketing margins fluctuated and inventory losses weighed. Revenues held near ₹2.22 trillion, but the numbers underlined how exposed state refiners remain to crack spreads and regulatory discipline. Operationally, IOC is leaning on term LNG contracts indexed to Henry Hub to hedge against volatile spot prices. Earlier this year it signed a five-year supply arrangement with Trafigura, ensuring baseload gas for its captive power and city-gas distribution. The company has also resumed purchases of discounted Russian oil as arbitrage widened, trimming feedstock costs at coastal refineries. Executives argue flexibility is key. “Securing a diverse crude basket is central to operational stabilit...

GAIL Builds the Gas Backbone While Planting Green Options

19Apr

By Newscript News NetworkNo Comments

News Update, Oil & Gas Industry

GAIL Builds the Gas Backbone While Planting Green Options

By Newscript News Network August 22, 2025 GAIL remains the spine of India’s gas economy even as it plants seeds in new energy. Q1 FY26 consolidated net sales stood at ₹35,310.68 crore (up 1.65% YoY). The board declared a ₹1/share final dividend, maintaining a yield near 4.22%, a signal of comfort with cash generation. Strategy remains anchored in transmission build‑out, petrochemicals scale‑up and early positions in renewables and green hydrogen. As LNG import capacity and city‑gas networks expand, GAIL’s blend of regulated and merchant earnings provides ballast. Pipeline expansion and petrochemical integration are designed to smooth cyclicality. The company’s ability to match long‑term LNG with downstream demand, while tapping spot dislocations when available, remains a differen...