By Tsvetana Paraskova - Jan 05, 2024
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The world’s third-largest oil importer, India, has approved the signing of a cooperation agreement with the world’s newest oil exporter, Guyana, covering the entire value chain from crude supply to exploration offshore the South American country.
India’s government approved on Friday the signing of a Memorandum of Understanding (MoU) between India’s Ministry of Petroleum & Natural Gas and the Ministry of Natural Resources of Guyana on cooperation in the hydrocarbon sector.
“The proposed MoU covers the complete value chain of hydrocarbon sector including sourcing of crude oil from Guyana, participation of Indian companies in Exploration and Production (E&P) sector of Guyana,” among others, the Indian government said in a statement.
The agreement will be for an initial period of five years and will be renewed automatically if the two countries don’t object to its renewal.
The deal with Guyana will help India diversify its sources of crude oil, boosting India’s energy and supply security, said the cabinet of India, which imports around 85% of all the crude oil it consumes and which has been seeking to diversify supply and procure crude at the cheapest possible price.
Guyana, for its part, has a huge potential to boost its oil production and exports this decade.
It became the newest oil-producing country in the world in 2019 after ExxonMobil and its partner Hess Corp began production from the Stabroek block, where the companies have found more than 11 billion barrels of oil equivalent to date.
Currently, Guyana produces around 380,000 barrels per day (bpd) of crude oil, all from Exxon-operated wells. And it looks to triple that production and pump 1.2 million bpd by 2027.
Guyana, together with the United States and Brazil, is expected to lead oil production growth and capacity expansions from producers outside OPEC and the OPEC+ alliance this decade, the International Energy Agency (IEA) said in its annual Oil 2023 report with projections to 2028.
India Slashes Financial Support for State Oil Refiners' Green Goals
By Tsvetana Paraskova - Jan 05, 2024
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In a bid to reduce government deficit, India plans to halve the equity support to three state-held oil refiners to help them fund measures to meet their net-zero operations targets, Reuters reported exclusively on Friday, quoting industry and government sources.
The three state-owned refiners, Indian Oil Corp, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, were set to receive the equivalent of $3.6 billion, or 300 billion Indian rupees, in equity support for the fiscal year 2023/2024 to reach their goals to have net-zero emissions from operations in the 2040s.
But now, facing rising fiscal deficit, India will allocate half of the planned support, $1.8 billion, or 150 billion rupees, for the current fiscal year ending March 31, 2024, according to Reuters’ sources.
In the middle of last year, India’s government asked some of the biggest state oil refiners to launch rights issues with which the authorities plan to help fund the firms’ net-zero and energy transition goals.
The government will be seeking equity in Indian Oil Corp and Bharat Petroleum Corporation Limited (BPCL) via rights issues, and has asked Hindustan Petroleum Corporation Limited (HPCL) to issue preferential shares to the government. In exchange for the equity in the refiners, India plans to support their goals to achieve net-zero operational emissions in the 2040s.
Indian Oil, BPCL, and HPCL are looking to invest a combined up to $48.8 billion (4 trillion Indian rupees) to reach their net zero-emissions goals by 2040.
Indian Oil Corp, the country’s top refiner and fuel retailer, said in 2023 it would consolidate all its green energy businesses into a wholly-owned unit with the purpose of boosting its clean energy division.
India, the world’s third-largest carbon emitter after China and the U.S., has a net-zero target set for 2070, twenty years later than the 2050 target of most developed economies including the U.S.
By Tsvetana Paraskova for Oilprice.com
The world’s third-largest oil importer, India, has approved the signing of a cooperation agreement with the world’s newest oil exporter, Guyana, covering the entire value chain from crude supply to exploration offshore the South American country.
India’s government approved on Friday the signing of a Memorandum of Understanding (MoU) between India’s Ministry of Petroleum & Natural Gas and the Ministry of Natural Resources of Guyana on cooperation in the hydrocarbon sector.
“The proposed MoU covers the complete value chain of hydrocarbon sector including sourcing of crude oil from Guyana, participation of Indian companies in Exploration and Production (E&P) sector of Guyana,” among others, the Indian government said in a statement.
The agreement will be for an initial period of five years and will be renewed automatically if the two countries don’t object to its renewal.
The deal with Guyana will help India diversify its sources of crude oil, boosting India’s energy and supply security, said the cabinet of India, which imports around 85% of all the crude oil it consumes and which has been seeking to diversify supply and procure crude at the cheapest possible price.
Guyana, for its part, has a huge potential to boost its oil production and exports this decade.
It became the newest oil-producing country in the world in 2019 after ExxonMobil and its partner Hess Corp began production from the Stabroek block, where the companies have found more than 11 billion barrels of oil equivalent to date.
Currently, Guyana produces around 380,000 barrels per day (bpd) of crude oil, all from Exxon-operated wells. And it looks to triple that production and pump 1.2 million bpd by 2027.
Guyana, together with the United States and Brazil, is expected to lead oil production growth and capacity expansions from producers outside OPEC and the OPEC+ alliance this decade, the International Energy Agency (IEA) said in its annual Oil 2023 report with projections to 2028.
India Slashes Financial Support for State Oil Refiners' Green Goals
By Tsvetana Paraskova - Jan 05, 2024
In a bid to reduce government deficit, India plans to halve the equity support to three state-held oil refiners to help them fund measures to meet their net-zero operations targets, Reuters reported exclusively on Friday, quoting industry and government sources.
The three state-owned refiners, Indian Oil Corp, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, were set to receive the equivalent of $3.6 billion, or 300 billion Indian rupees, in equity support for the fiscal year 2023/2024 to reach their goals to have net-zero emissions from operations in the 2040s.
But now, facing rising fiscal deficit, India will allocate half of the planned support, $1.8 billion, or 150 billion rupees, for the current fiscal year ending March 31, 2024, according to Reuters’ sources.
In the middle of last year, India’s government asked some of the biggest state oil refiners to launch rights issues with which the authorities plan to help fund the firms’ net-zero and energy transition goals.
The government will be seeking equity in Indian Oil Corp and Bharat Petroleum Corporation Limited (BPCL) via rights issues, and has asked Hindustan Petroleum Corporation Limited (HPCL) to issue preferential shares to the government. In exchange for the equity in the refiners, India plans to support their goals to achieve net-zero operational emissions in the 2040s.
Indian Oil, BPCL, and HPCL are looking to invest a combined up to $48.8 billion (4 trillion Indian rupees) to reach their net zero-emissions goals by 2040.
Indian Oil Corp, the country’s top refiner and fuel retailer, said in 2023 it would consolidate all its green energy businesses into a wholly-owned unit with the purpose of boosting its clean energy division.
India, the world’s third-largest carbon emitter after China and the U.S., has a net-zero target set for 2070, twenty years later than the 2050 target of most developed economies including the U.S.
By Tsvetana Paraskova for Oilprice.com
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