Page 12 - AsianOil Week 41

AsianOil
NEWS IN BRIEF
AsianOil
SOUTH ASIA
ONGC, IOC sign maiden
Crude Oil Sales Agreement
for North East
Oil and Gas Corporation Ltd (ONGC) and Indian Oil Corp. (IOC) signed Crude Oil Sales Agreement (COSA) for North East (NE) on 1 October at New Delhi.
The COSA is with effect from 1 April, 2018 and for a term of 5 years with provision for extension of tenure by 3 years.
ONGC supplies crude oil from Borholla, Geleky, Lakwa-Lakhmani, Rudrasagar and other fields of Assam and Jorhat Assets, along with condensate from Tripura in the North East to IOCL’s Refineries – namely Guwahati Refinery and Bongaigaon Refinery – as mandated by the Ministry of Petroleum and Natural Gas.
From 2002-2004, ONGC had entered into a Memorandum of Understanding (MoU) with IOCL for sale of crude oil across India. Later on, Government intervention on pricing and transportation charges of NE crude dictated the terms and conditions of the supply.
ONGC entered COSA with all the PSU refiners’ w.e.f 2010. However, these COSAs excluded the crude oil produced in North East due to prevailing pricing and other orders of the MoPNG.
After several unsuccessful efforts to formalize the COSA in the past, fresh attempts were
resumed after the CPSE Conclave in April 2018, wherein the Director (Finance) of ONGC, IOCL, OIL and NRL agreed to formalize the COSA for North East Crude Oil.
With the guidance and impetus provided from senior Management of ONGC, the NE COSA could be successfully executed within the reasonable time, considering the complexities of NE COSA pricing, involvement of M/s OIL as crude oil pipeline transporter and balancing the needs of the Buyer-IOCL.
It may be noted that about 30% of the ONGC’s crude oil supply in North East is allocated annually by MoPNG to IOCL and the remaining 70% is allocated to M/s Numaligarh Refinery (NRL), which is a subsidiary of BPCL. ONGC supplies such crude oil through its own pipelines and through 1,400 kms long trunk pipeline of M/s OIL from Central Tank Farm (CTF) at Moran and Jorhat.
ONGC, October 9, 2019
Vaidya takes over as IOC’s refineries director
Shrikant Madhav Vaidya has taken over as the Director (Refineries) of IndianOil - India’s highest ranked Public Sector Enterprise
in ‘Fortune 500’ global listing. He is also a Director on the board of Chennai Petroleum Corporation Ltd. (CPCL) & the 60 MMTPA West Coast Refinery and Petrochemicals Project, the world’s largest grass root refinery project, coming up in Maharashtra.
Mr. Vaidya now spearheads the business & operations of nine refineries & petrochemical plants of IndianOil. With a robust Refineries Division, IndianOil (including its group companies) remains the nation’s top refiner with a group refining capacity of 80.7 million tonnes per annum/161.4 million barrels per day.
IOC, October 14, 2019
SOUTHEAST ASIA
Empyrean Energy updates
on Indonesian drilling
campaign
Empyrean Energy is pleased to provide an operational update in relation to the drilling campaign in the Duyung PSC in the West Natuna basin, offshore Indonesia, in which Empyrean holds an 8.5% interest.
The Tambak-2 well has been drilled to a TD of 1,650 feet TVDSS. The coring programme, wireline logging and pressure surveys have now been completed and confirm the well as a successful appraisal of the Mako gas field.
As previously reported, the Tambak-2 well spudded on the 4th of October and is designed as an appraisal of the southern area of the Mako gas field. An independent review by Gaffney Cline & Associates had previously ascribed gross 2C resources of 276 Bcf (48.78 MMboe) of recoverable dry gas in the Mako field with gross 3C resources of 392 Bcf (69.3 MMboe) representing additional field upside.
The next step in the campaign is an extensive Drill Stem Test (“DST”) programme, which will take place over the coming days and the market will be updated with results of this as appropriate.
Tom Kelly, Empyrean CEO commented, “The fact that we have confirmed good quality reservoir at a 13.5km step out from the Mako South-1 discovery well is an excellent step forward for this project. The wireline logs confirm excellent porosity and permeability and we look forward to the flow testing programme to commence. This is excellent news and progress so early on in our drilling campaign and, with a further well with additional high impact exploration potential to come, we look forward to updating our shareholders of further progress.”
EMPYREAN ENERGY, October 15, 2019
MHPS completes gas-fired power plant in Indonesia
Mitsubishi Hitachi Power Systems (MHPS) completed the installation and commissioning of the natural gas-fired gas turbine combined
P12
w w w . N E W S B A S E . c o m
Week 41 16•October•2019