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Timipre Sylva, the minister of state for petro- State-run Oil and Natural Gas Corp.
leum resources, has said that Nigeria’s govern- (ONGC), India’s largest gas producer, has com-
ment must support the project by developing a plained that such prices make it uneconomical
new domestic gas tariff regime that is agreeable to develop a large portion of its existing reserves.
to both producers and consumers. In addition to the pricing reform, Pradhan
Meanwhile, Botswana is dipping into its state said the international energy price crash had
fuel reserves and looking for new suppliers in shored up the government’s commitment to
response to a slowdown in petroleum product privatising Bharat Petroleum Corp. Ltd (BPCL).
deliveries from South Africa. The government has The minister noted, however, that the timetable
been asked to help cover the cost of transportation, of the state-run refiner’s privatisation had been
which are likely to rise if the country starts import- handed to the Ministry of Finance.
ing fuel from Namibia and Mozambique. While some are looking to divest in the wake
of the price slump, others are using the oppor-
If you’d like to read more about the key events shaping tunity to expand while assets are attractive.
Africa’s oil and gas sector then please click here for Following the recent announcement from Thai-
NewsBase’s AfrOil Monitor . land’s state-run PTT Exploration and Produc-
tion (PTTEP) that it was looking to cash in on
Asian-Pacific markets adapting the industry downturn and expand its upstream
The Asia-Pacific oil and gas market is showing portfolio, Singapore’s Jadestone Energy has fol-
signs of adaptation to the new low-price envi- lowed suit, announcing an upstream acquisition
ronment, with governments unveiling reforms of its own.
and investors snapping up cheap assets. The Asia-Pacific focused independent has
India has finally bowed to pressure from agreed to acquire a 90% operated stake in the
its state-run developers, announcing plans to Lemang production-sharing contract (PSC)
slowly dismantle the country’s natural gas pric- onshore Indonesia from Mandala Energy
ing mechanism. The mechanism has long been a Lemang for $12mn..
bugbear for domestic developers, who argue that
it leads to unrealistically low pricing for locally If you’d like to read more about the key events shaping
produced gas. Asia’s oil and gas sector then please click here for
Indian Minister for Petroleum and Natural NewsBase’s AsianOil Monitor .
Gas Dharmendra Pradhan said on June 25 that
the country would begin to transition towards Downstream: UAE pipeline deal
market pricing. His announcement comes At a time when investment in oil and gas is at
after the launch of Indian Gas Exchange (IGX) unprecedented lows, the UAE’s Abu Dhabi
in mid-June, which has demonstrated that the National Oil Co. (ADNOC) raised $10.1bn from
market is willing to pay much a higher price for the transfer of a near-half stake in its gas pipeline
gas than that set by the government. business last week.
Under the current system, the central gov- The investors in question were the US enti-
ernment sets prices for local production every ties Global Infrastructure Partners and Brook-
six months using the weighted average price of field Asset Management, Singapore’s sovereign
gas in hubs in the US, Canada, the UK and Rus- wealth fund GIC, Canada’s Ontario Teachers’
sia. New Delhi slashed prices for conventional Pension Plan Board, South Korea’s NH Invest-
gas production to $2.39 per mmBtu ($66.11 ment & Securities and the Italian pipeline oper-
per 1,000 cubic metres) for the six months from ator Snam. The deal is expected to be closed in
April 1. July.

P6 www. NEWSBASE .com Week 26 01•July•2020