Thursday, 27 March 2014

RIL shutdown its Para Xylene units at Jamnagar for planned maintenance

Reliance Industries today said that it has shutdown its one out of three Para Xylene units at Jamnagar for planned maintenance. “This shut down will also be utilized to improve reliability and performance of the unit. The other two Para Xylene units will continue to operate normally,” the company said in the filing to the Bombay Stock Exchange. The total capacity of producing Para Xylene is 1.8 million MT per annum at Jamnagar.

Reliance Industries wins two offshore blocks in Myanmar

Mukesh Ambani-owned Reliance Industries on Wednesday announced it has been selected by the Ministry of Energy (MOE) of the Republic of the Union of Myanmar for two offshore blocks (M17 and M18) in Myanmar Offshore Block Bidding Round – 2013.
“Both the blocks are located offshore in the Moattama basin of Myanmar in water depths upto 3000 ft and together encompass an area of 27,600 sq. kms,” RIL said in a press release.
The 2013 Offshore Blocks Bidding Round saw participation from global E&P players. In all 36 companies submitted 64 proposals for the 30 offshore blocks on offer. RIL had submitted proposals for three offshore blocks.
As per the process, RIL or its affiliates will enter into Production Sharing Contracts (PSC) for the aforementioned offshore blocks. The PSC allows for an initial preparation and study periods before committing into Phase 1 of Exploration period.

Wednesday, 19 March 2014

BP, Niko to join RIL’s arbitration against govt

British energy giant BP and Niko Resources of Canada are likely to formally join their partner Reliance Industries' arbitration against government levying penalties for KG-D6 gas production falling short of target, reported PTI. Faced with a situation where the near double gas rate of USD 8 per million British thermal unit from next month not accruing to them, BP and Niko are said to be planning to formally issue a Notice of Arbitration (NoA). Media reports said the Cabinet had in December last year stipulated that the new gas rate will apply to all producers excepting eastern offshore KG-D6 block where the contractor, which is fighting government against levying penalties for output shortfall, will have to give bank guarantees equivalent to the incremental revenue it would get from the new rates. If it is proved that the company deliberately produced less gas from the D1&D3 fields in KG-D6, the bank guarantee will be encashed, depriving RIL of the incremental revenue.While RIL agreed to the condition, the Oil Ministry felt the bank guarantees cannot be taken from BP and Niko since they are not part of the arbitration, media reports said. In absence of BP-Niko not being part of arbitration, it was being mulled that their share of incremental revenues from the higher gas price can be put in an escrow account during the pendency of the arbitration. RIL, which is the operator of KG-D6 block with 60 per cent interest, will however get all the revenues after furnishing bank sureties. To break the impasse, BP and Niko, which together hold the remaining 40 per cent in KG-D6, separately wrote to the ministry. They said that RIL, in filing the arbitration notice, had acted as an operator representing the interests of all the KG-D6 constituents and they were part of the arbitration. BP and Niko further stated that as a contractor to the production sharing contract (PSC) they are party to the arbitration and RIL has represented them as per the PSC and JOA (Joint Operating Agreement), media reports said. Reports said since the ministry is not convinced by the mere letter, BP and Niko may now formally join the arbitration after dashing off a NoA. RIL and BP say the decline in current D1&D3 output to one-tenth of the previously projected 80 million standard cubic metres per day was purely because of unanticipated geological complexities such as a drop in reservoir pressure and ingress of water and sand. RIL had dragged the ministry to arbitration in 2012, saying the contract does not provide for levy of a USD 1.8 billion penalty for output not being in line with projected production profile. Also, BP and Niko had previously submitted that the decision of the tribunal on the gas output issue would be binding on both of them.

Wednesday, 12 March 2014

Apex Court commences final hearing in natural gas pricing issue

Final hearing commenced in the Supreme Court on the pleas challenging the government decision to double the price of natural gas and seeking cancellation of Reliance Industries Ltd's contract for exploration of oil and gas from the Krishna-Godavari basin, reported PTI.
RIL refuted the allegation of extraneous consideration for the increase in the gas price from 4.2 dollar to 8.4 dollar per mmbtu for the gas taken from the existing fields like KG D-6 basin.
The bench is hearing the PILs filed by senior CPI MP Gurudas Dasgupta and the NGO, Common Cause, which has sought imposition of penalty on private parties for failure in adhering to commitments

Tuesday, 11 March 2014

Andhra Pradesh HC issue notices to RIL, CBI, AP govt, Centre & DGH on KG-basin issue

The Andhra Pradesh High Court issued notices to Reliance Industries Ltd (RIL), the CBI, Andhra Pradesh government, Centre and the Directorate General of Hydrocarbons on the issue of gas supplies from D-6 in KG-Basin, reported PTI.
The petitioner, Palem Srikanth Reddy, president of the Jana Palana Party, sought the court to order CBI probe into the whole issue and also requested the court to direct the Government to take appropriate steps to see that Andhra Pradesh gets gas allocation as the oil and gas field are located near the State.
"It is further prayed that this Hon'ble Court may be pleased to direct the respondent no. 14 (CBI) to conduct investigation under the direct supervision of the Court, as the respondent nos. 5 to 8 ( Telugu Desam Party, Indian National Congress, YSR Congress Party and Bharatiya Janata Party) are in active collusion with the respondent no. 11 (RIL) in not getting its due share, pending disposal of Writ Petition and be pleased to pass such other order/s as this Hon'ble Court may deem fit and proper in the circumstances of the case," Reddy requested in his petition.
As per the media report, he said due to short supply of gas to AP-based power plants, the government is forced to purchase the electricity at the cost of the public exchequer resulting exorbitant power bills to consumers.

Monday, 10 March 2014

RIL to close crude unit at Jamnagar for 3-4 weeks

Private sector company, Reliance Industries Limited (RIL) announced on Friday that it is planning to shut down one of its four crude distillation units at Jamnagar refinery complex for about three to four weeks from 20th March, 2014 for planned maintenance activities.
The company is hopeful that the shutdown of the unit at the Jamnagar refinery would give Reliance Industries Limited an opportunity to undertake necessary changes to improve the reliability and performance of the unit. “Reliance Industries Limited is planning to shut down one of its four crude distillation units, for Maintenance & Inspection (M&I) activities from 20th March 2014 for about 3.5 weeks. As a normal practice, opportunity would be utilized to carry out necessary modifications to improve the reliability and performance of the unit”, RIL said in a statement.
“This planned shutdown period will also be utilized for catalyst replacement of VGO and Naphtha hydrotreater. The rest of the Refinery will continue at normal levels of operations”, the company added.
The company owns and operates two refineries at Jamnagar with a total capacity of 62 million tons.

Monday, 3 February 2014

Market valuation of 7 top Sensex companies plunge Rs 47,050 cr

The combined market valuation of seven of the top-10 Sensex companies tumbled Rs 47,050 crore, with Reliance Industries and HDFC Bank taking the biggest hit in the worst week for the benchmark index in six months, reported PTI.
Reliance Industries plunged Rs 11,669 crore to a m-cap of Rs 2,68,502 crore and HDFC Bank's value dipped Rs 10,679 crore to Rs 1,50,704 crore. HDFC took a hit of Rs 5,738 crore to Rs 1,25,999 crore.
The m-cap of Coal India dropped Rs 6,569 crore to Rs 1,56,330 crore, while ONGC's worth declined by Rs 6,631 crore to Rs 2,35,703 crore.
The m-cap of Infosys declined by Rs 3,423 crore to Rs 2,12,435 crore and the value of TCS slipped Rs 2,341 crore to Rs 4,38,010 crore.
TCS continued to rule the domestic market capitalisation chart, followed by Reliance, ITC, ONGC, Infosys, Coal India, HDFC Bank, Wipro, HDFC and Bharti Airtel.
Last week, the benchmark BSE Sensex lost 619.71 points, or 2.93 per cent, to settle at 20,513.85 on Friday