Posts Tagged: bp
Reliance Industries will relinquish its Krishna Godavari basin gas discovery block, KG-D3, mainly because of operational restrictions placed by the Defence Ministry.
Reliance Industries, which had made four consecutive gas discoveries with close to 500 billion cubic feet of in-place reserves in block, proposed immediate relinquishment, its minority partner Hardy Oil and Gas plc of UK said today.
Hardy said the block oversight panel headed by upstream regulator DGH yesterday considered Reliance Industries proposal.
Without stating what the Management Committee (MC) decided, Hardy in a statement said the firm has agreed to the relinquishment proposed by the operator, Reliance Industries.
Hardy holds 10 per cent stake in the block which is operated by Reliance Industries with 60 per cent interest. BP of UK has the remaining 30 per cent stake. >> Read More
The six-month rout in oil prices is casting a pall over the credit ratings of energy companies BP, Royal Dutch Shell and Total, agency Standard & Poor’s warned on Monday.
The almost 50 per cent decline in crude since the end of June has reverberated through financial markets, precipitated an economic crisis in Russia and has forced oil producers to scale back their ambitions.
The rating agency said:
We have revised to negative our outlooks on three oil majors, while affirming the credit ratings on these companies to reflect that we will further evaluate management’s actions in reducing negative free cash flow by cutting costs and gradually reducing capital expenditures (capex).
BP had its outlook cut to negative from stable.
Royal Dutch Shell had its outlook reduced to negative
Total also had its outlook trimmed to negative >> Read More
Reuters reports that a pipeline from the El Sharara field has been closed. The reason for the closure is unclear.
In the past week, even mildly bullish news has sparked some oil price squeezes.
Update: Now the report is that production was shut down because the pipeline was blocked.
BP Plc today wrote down the value of its $7.2-billion investment in India’s oil and gas fields made in February 2011 by a little over 10 per cent.
Unveiling its third-quarter results on Tuesday, BP said it had written down the value of its investment in KG-D6 — the deep-water field operated by Reliance Industries in Krishna Godavari basin — by $770 million.
The oil behemoth attributed the charge to the “uncertainty in the future long-term gas price outlook following the introduction of a new formula for Indian gas prices”.
On October 18, the Narendra Modi-government approved a new formula that capped the gas price from deep-water fields at $5.61 per million British thermal unit (mBtu).
The new gas price will come into effect from November 1 but it won’t apply to Reliance Industries, which has filed for arbitration in a dispute with the government over the admissibility of certain cost recoveries on account of the huge shortfall in gas production from KG-D6 gas field. >> Read More
BP Faces $18 Billion Fine For “Gross Negligence” In Gulf Of Mexico Spill.Mkt Cap Down by $ 7bn ,Stock Down 5%04 September 2014 - 21:36 pm
U.S. District Judge Carl Barbier in New Orleans ruled today that BP was “grossly negligent” in the 2010 Deepwater Horizon rig explosion and may face up to $18 billion in civil penalties, according to The WSJ. In addition, Transocean and Halliburton were found ‘negligent’ – a lessor offense – (fines up to $1,100 per barrel for ‘negligence’, $4,300 for ‘gross negligence’). This result comes 2 years after BP agreed to accept criminal responsibility for the disaster and to pay $4.5 billion in fines and restitution. BP quickly issued a statement that it will appeal the decision and believes the findings “are not supported by evidence at trial.”
As Bloomberg reports,
In a turning point after four years of legal wrangling over responsibility, U.S. District Judge Carl Barbier’s ruling laid the bulk of the blame on BP for the explosion, which killed 11 men and caused the largest offshore oil spill in U.S. history.
Oil exploration and production companies such as Reliance Industries and ONGC are expecting policy clarity and tax benefits from the first budget of the Modi government.
Most domestic upstream companies invested more in exploration overseas than in India because of the ambiguity over gas price and policy paralysis during the previous UPA government’s rule.
The explorers expect the tax holiday under Section 80-IB (9) of the income tax act to be extended to 10 years from seven years, from the year of commercial production.
This move, industry sources said, will encourage oil and gas exploration that requires heavy investments and involves risks as well as reduces the import bill.
Analysts said “in the initial few years there is hardly any profit to take advantage of the tax holiday. In the initial years, undertakings have larger expenditure to set off and, hence, the actual benefit of tax holiday does not flow to them”. >> Read More