Page 6 - AsianOil Week 27

AsianOil SOUTH ASIA AsianOil

India’s state majors

plan $47.6bn investment

FINANCE & THE Indian government has said the country’s
INVESTMENT state-run oil and gas companies have pledged to
invest a combined INR3.57 trillion ($47.6bn)
across 859 new and existing projects.
The Indian Ministry of Petroleum and Natu-
ral Gas said on July 6 that more than INR600bn
($8bn) would be spent in fiscal year 2020-2021,
without providing a timeline for the rest of the
investment.
“As on July 1, work on 859 projects worth
about [INR3.57 trillion] involving in refinery,
exploration and production, marketing infra-
structure, pipelines, city gas distribution [CGD]
network and in the entire value chain of oil and
gas is going on in full swing,” it said. hammered by the coronavirus (COVID-19)
The ministry added that work related to the pandemic. The Ministry of Finance revealed
investments had generated 4.9mn labour days on July 6 that the International Monetary Fund
between April 29 and June 30, with INR13.95bn (IMF) had predicted that GDP would contract
($186mn) having been paid to workers. by 4.5% in 2020-2021.
“These oil and gas projects will further The central government called on the oil and
enhance energy accessibility, create new employ- gas sector last month to increase the amount of
ment opportunities, and give stimulus to eco- domestically manufactured steel used in future
nomic growth,” it added. projects. State-run Engineers India has projected
Ministry of Petroleum and Natural Gas that the oil and gas sector will consume 50mn
Dharmendra Pradhan was said to have urged tonnes of steel over the next 15 years and New
the state energy sector to expand the local Delhi wants the country’s steel manufacturers to
content in new projects and “strengthen benefit.
#MakeInIndia”. The energy sector is anticipated to invest
The government’s focus on local content is about $160bn in upstream, midstream and
aimed at helping to reboot a national economy downstream projects by 2025-2026.™

SOUTHEAST ASIA

Shell aims to exit major

Indonesian gas block

FINANCE & INDONESIAN upstream regulator SKK Migas Inpex is understood to be interested, but the
INVESTMENT has confirmed reports that Royal Dutch Shell sources said the Japanese developer was only
intends to divest its 35% stake in the giant Masela willing to pay around $400mn. Inpex Masela, in
gas block. which Inpex owns a 51.93% interest, operates the
SKK Migas’ operations deputy, Julius block with a 65% stake.
Wiratno, told The Jakarta Post on July 6 that low The acreage, located in the southeastern
oil prices and coronavirus (COVID-19) related Arafura sea, is the foundation for a planned 9.5mn
development delays had prompted the compa- tonne per year LNG terminal as well as another
ny’s exit plans. 1mn tpy of local gas supply and up to 35,000 barrels
The official’s comments follow an Asia Times per day (bpd) of condensate production. Masela is
report from June 25 that cited unnamed sources estimated to hold 10.7 trillion cubic feet (303.02bn
as saying the company was looking to raise $2bn cubic metres) of proven gas reserves.
from the sale of its stake in the block and the The Asia Times had reported that Shell was
associated Abadi liquefied natural gas (LNG) looking to exit the block owing to lingering dis-
terminal development. satisfaction over the government’s demand that

P6 www. NEWSBASE .com Week 27 09•July•2020