In fresh conditions, Iran wants India to pay more than triple the gas price for award of the coveted Farzad-B natural gas block to ONGC Videsh (OVL).
Iran wants India to buy all of the natural gas to be produced from the Persian Gulf block at a price equivalent to the rate Qatar charges for selling liquefied natural gas (LNG) to India under a long-term deal.
Qatar, as per a revised formula agreed upon in December 2015, sells 7.5 million tonnes a year of LNG to Petronet LNG Ltd — India’s biggest gas importer — at a price of $7-plus per million British thermal unit.
The rate being sought by Iran is triple of $2.3 per mmBtu rate OVL is willing to pay for the gas during low global oil prices. If global rates rise, OVL is willing to pay $4.3 per mmBtu, sources privy to the development said.
When oil prices move up, rates of LNG from Qatar would also rise.
Sources said that since the lifting of western sanctions, Iran is playing hardball over award of the field which was discovered by OVL — the overseas arm of state-owned Oil and Natural Gas Corp (ONGC).
Since 1955, Fortune Magazine has released an annual list of the highest revenue generating companies in the US – the Fortune 500. In 2016, the US Fortune 500 companies generated $12 trillion in combined revenue, accounting for over two-thirds of US GDP, and employed 27 million people worldwide.
In today’s dynamic economy, we know some companies and sectors are growing rapidly and others are struggling. We wanted to see which of the Fortune 500 are growing and shrinking the fastest, and which sectors.
In the Craft company database, we looked up revenue for these 500 companies over 2014-16*, and calculated the average annual growth rate in that 3 year period.
We found that only 62%, 309 companies, had positive revenue growth and 38%, saw their revenues decline. Healthcare was the fastest growing sector, perhaps benefiting from the regulatory environment, and Technology came in second, driven by relentless innovation in Silicon Valley. The Energy sector declined the most, matching a steep drop in the global oil price.
Here are the 50 fastest revenue growth companies in the US Fortune 500.
Brazilian oil output in February was 14.6 percent higher year-over-year, according to the latest data released by ANP, the South American country’s petroleum regulator.
February production touched 2.676 million barrels per day, an ANP statement said, adding that natural gas output also rose 9.2 percent compared to the same month last year.
Figures released earlier in March from the nation’s Trade Ministry said that oil exports had jumped 94 percent year-over-year in February at 45.7 million barrels – a figure that topped the January 2017 record by 12 percent.
he surge in oil exports was a function of higher production from the offshore areas in Brazilian waters, where huge oil finds were made in the pre-salt and sub-salt layers in the past few years.
A three-member arbitration panel has started hearing validity of the Government’s demand of $1.55 billion as compensation from Reliance Industries for “unfairly” producing ONGC’s gas. The panel, headed by Singapore-based arbitrator Prof Lawrence Boo, had its first hearing on March 3 where the timetable was drawn, sources privy to the development said.
RIL will first file its statement of claim, followed by a statement of defence by the Government. This will be followed by rejoinders, counter-rejoinders and oral hearing, sources said, adding that the panel plans to wind up the hearing in a year.
The Central Government has named former Supreme Court judge G S Singhvi as its nominee on the three-member arbitration panel while RIL and its partners BP Plc of the UK and Canada’s Niko Resources have named former UK High Court Judge Bernard Eder to the panel.
RIL-BP-Niko had slapped an arbitration notice on November 11 last year.
This was against the oil ministry’s November 3, 2016 notice to RIL, Niko and UK’s BP seeking $1.47 billion for producing about 338.332 million British thermal units of gas in the seven years ended March 31, 2016 that had seeped or migrated from the Oil and Natural Gas Corporation’s (ONGC) blocks into their adjoining KG-D6 in the Bay of Bengal.
Asian companies are increasing their presence in oil concessions in the United Arab Emirates.
Abu Dhabi National Oil Co. has solicited new bids for the onshore concessions held by the Abu Dhabi Co. for Onshore Petroleum Operations (ADCO), which expired in 2014. Four Western oil majors — BP, Total, Royal Dutch Shell and Exxon Mobil — each held a 9.5% of interest in the ADCO concessions, which produce 1.6 million barrels per day of oil.
Total became the first company to renew its interest in January 2015, followed by Japanese company Inpex’s 5% acquisition in April the same year. South Korea’s GS Energy then acquired a 3% interest in May 2015 and BP acquired 10% in December 2016.
Earlier this year, ADNOC awarded concessions to two Chinese companies. On Feb. 19, it signed an agreement with state-owned China National Petroleum Corp. for an 8% interest. The next day, it struck a deal with private energy company CEFC China Energy for a 4% interest. The agreements cover a 40-year term backdated to January 2015.
“Our agreement with CNPC strengthens and deepens the strategic and economic relationship between the United Arab Emirates and China,” ADNOC chief executive Sultan al-Jaber said. To enter into the concession, CNPC contributed a sign-up bonus of 6.5 billion dirhams ($1.76 billion), according to ADNOC. CEFC paid 3.3 billion dirhams.
Natural gas price in India is likely to be hiked by 8 per cent from April 1 driven by an increase in rates in reference markets including US Henry Hub. Price of natural gas, used for generating power and making fertiliser and petrochemicals as well as CNG for automobiles, is likely to rise to USD 2.7 per million British thermal unit for the period from April 1, 2017 to September 30, 2017 from current USD 2.5 per mmBtu, industry sources said. This will be the first increase in domestic gas prices in two years. Rates may further rise to USD 3.1 per mmBtu in second half of 2017-18 fiscal (April to March). As per the mechanism approved in October 2014, the price of domestically produced natural gas is to be revised every six months — April 1 and October 1 — using weighted average or rates prevalent in gas-surplus economies at Henry Hub of US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter. So, the rates for April 1, 2017 to September 30, 2017 period will be based on average price at the international hubs during January 1, 2016 to December 31, 2016.
Sources said prices in the reference markets for 2016 are known and so the rates in first half of fiscal year beginning April 1 can be calculated. Rates were last changed on October 1, 2016 when they were cut by 18 per cent to USD 2.5 per mmBtu from USD 3.06. This was the fourth six-monthly reduction.
A rate hike will provide relief to upstream gas producers who have been getting rates below the cost of production. But at the same time, an increase in natural gas prices would mean higher raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG) and would translate into hike in retail prices.
Even as Reliance Industries is creating ripples in the telecom industry, the net worth of Mukesh Ambani owned, Reliance Gas and Transportation Infrastructure Ltd (RGTIL) has eroded by a massive Rs 7,966 crore as on September 2016 as low gas supply from RIL’s Krishna Godavari basin hit the pipeline company’s financials. The company owns and operates a 1400 kilometers gas pipeline connecting Krishna Godavari basin to Gujarat and depends on gas production from RIL’s KG basin to earn revenues.
According to Reliance Gas filings, for the financial year 2016 its net worth was negative Rs 2,641 crore (see chart). Reliance Gas said the net worth erosion statement is prepared in compliance with Indian accounting standards and is subject to further transition adjustment as may be required under the Ministry of Corporate Affairs’ guidelines and interpretations.
Reliance Gas, which made profit only once since 2010, said it plans to Rs 4,000 crore by issuing Cumulative Optionally Convertible Preference Shares, the company said on October 25th filings with the stock exchanges.
The oil ministers of Iran and Qatar have suggested that OPEC’s production cut agreement may have to be extended beyond the June deadline, despite an almost 100-percent compliance rate.
The comments come a day after the American Petroleum Institute reported the second-largest crude oil inventory increase in history, at 14.227 million barrels, which added fuel to worries that production cut efforts are not enough to rebalance the market.
Saudi Arabia’s oil minister has said President Donald Trump’s election will be good for the oil industry, playing down concerns over the impact of his “America First” policies for the export-reliant kingdom.
Khalid al-Falih said Saudi Arabia is considering increasing its investment in the US encouraged by the new White House administration’s pro-industry and pro-oil and gas stance.
The minister, a former head of Saudi’s state oil company Aramco, said in an interview with BBC, the Trump administration looked like adopting policies “which are good for the oil industry” while steering “away from excessively anti fossil fuel, unrealistic policies by some well intentioned environment proponents”.
He dismissed as over exaggerated the worries Mr Trump’s policy statements during the campaign and “America First” claims would hurt Saudi Arabia’s export reliant energy-based economy.
But Mr al-Falih said what the US wanted was a “mixed energy portfolio that includes oil, gas, renewables and make sure that the American economy is competitive. We want the same in Saudi Arabia”.