Page 8 - AsianOil Week 13 2022

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India picks up cheap Russian oil

INVESTMENT INDIA is reported to be taking advantage of is also expected to take advantage of lower
discounts on Russian Urals crude, paying $25- Russian crude oil prices. Neither India nor
30 per barrel less than the market price set for China have condemned Moscow for the war
Brent, which has hit $100 per barrel and higher in Ukraine.
in recent weeks. India, which imports up to 85% With the exception of Japan and South Korea,
of its oil requirements, usually buys crude from most Asian countries have not become involved
the Persian Gulf states, the US and Nigeria. Last with the international sanctions imposed against
year it imported about 12mn barrels in total from Russia.
Russia, but during March and April this year, it Speaking to CNBC earlier this week, Daniel
is expected to receive 6mn barrels, according to Yergin, vice chairman of S&P Global, said that it
media reports, and it is likely that this could be looks like “Asia would be the default market for
the start of a trend. barrels of Russian oil that would have normally
Since Russia invaded Ukraine on February gone to Europe”.
24, it has seen demand for its oil nosedive. While “There is a lot of self-sanctioning that’s going
most Western countries have yet to impose on that’s simply people not picking up oil, banks
sanctions against importing Russian oil and gas, not providing letters of credit, shippers not
as other sanctions mount, and solidarity with showing up and, indeed, people in some ports
Ukraine hits businesses, Russia has offered its not receiving Russian oil,” Yergin said.
crude at record discounts. “I would have said five weeks ago [that] Rus-
This situation has provided India with an sia is an energy superpower,” Yergin added. “I
opportunity to address the cost of meeting its think it’s still going to be an important player, but
oil demand, which before the pandemic aver- it’s going to be a reduced energy power compared
aged nearly 5mn barrels per day (bpd). China to where it was before.”™

ONGC advances exploration plans, moves

to commercialise Vindhyan Basin

PROJECTS & INDIA’S state-owned Oil and Natural Gas that ONGC had decided to commercialise gas
COMPANIES Corp. (ONGC) is advancing plans for new off- production in the Vindhyan Basin in Madhya
shore exploration. The company announced on Pradesh. This came after the company estab-
March 30 that it would carry out 2D seismic sur- lished the area’s potential through the drilling of
veying of previously unappraised areas of India’s the Hatta#3 exploration well.
Exclusive Economic Zone (EEZ). This follows “On testing, the well-produced over 62,044
a decision by India’s Ministry of Petroleum and cubic metres per day gas, thus confirming
Natural Gas to accelerate offshore exploration by the production potential of [the] Proterozoic
national oil companies (NOCs). Basin for the first time in India,” the company
In a short statement, ONGC said it had been stated.
approved by the Indian Directorate General of The well is located in the Son Valley, and
Hydrocarbon (DGH), the industry regulator, ONGC noted it had drilled 26 wells across the
to carry out acquisition, processing and inter- Son and Chambal valley sector of the Vindhya
pretation (API) of 70,000 line km of 2D seismic Basin over 25 years. However, it said 14 of the
data across the Western, Eastern and Andaman wells in the Son Valley had yielded sub-commer-
offshore areas within two years. Under approved cial gas flows.
plans, the company will be reimbursed for this “Finally, continued efforts have now paid off
work by the DGH. – the Vindhyan Basin is close to becoming the
ONGC said it had already begun prepara- ninth producing basin of India. ONGC is fully
tions for fast-tracking efforts to acquire the seis- geared to consolidate this development. With
mic data. A meeting with prospective marine belief in prospectivity, it has already acquired
seismic data acquisition companies had been five blocks under OALP [Open Acreage Licens-
scheduled for April 1. The company said it would ing Policy] rounds on the same play trend,” the
launch a tender for the work following discus- company said.
sions with vendors. ONGC added that it was considering various
Separately, local media reported on March 31 monetisation options for the gas.™

P8 www. NEWSBASE .com Week 13 01•April•2022