Page 9 - AsianOil Week 24 2022

AsianOil SOUTH ASIA AsianOil

India registers 24% rise in

y/y fuel demand in May

PERFORMANCE DATA released by India’s Petroleum Planning Meanwhile, Indian media reported this week
and Analysis Cell shows that the country’s year- that Russia is now the second-largest oil supplier
on-year consumption of petroleum products to India. Refiners in the country are reported to
jumped to 18.27mn tonnes in May this year. This be purchasing Russian oil at a 30% discount to
represents an increase of 23.8% on May 2021, international prices. New Delhi has not backed
when demand was put at 14.76mn tonnes. any of the sanctions imposed on Moscow by the
The increase was attributed to a rebound after European Union or the US.
demand for fuels and products was reduced in India, the world’s third-largest importer of
May 2021 owing to restrictions put in place to oil, is estimated to be buying 18% of Russia’s
address the coronavirus (COVID-19) pandemic. exported oil, compared to 1% before the start of
Diesel consumption during May this year the war in Ukraine.
totalled 7.29mn tonnes, against 5.53mn tonnes According to Bloomberg, India and China
in May 2021, and gasoline increased to 3.02mn are now purchasing 50% of Russia oil exports
tonnes in May 2022 from 1.99mn tonnes a year and in doing so are seen as propping up Russia’s
ago. war efforts in Ukraine. However, some of India’s
Current high oil prices are expected to curtail refined products are usually re-exported to US
demand in the weeks and months ahead. India and European markets.
has taken steps to get around high prices by pur- Purchases of crude by India and China have
chasing Russia crude oil at a discount since the enabled Russia to boost oil output by 5% so far
start of the Ukraine war, which has led many of during June, according to reports by Reuters and
Russia’s normal Western crude customers to stop Interfax. Seaborne exports are also up by 9.5%.
buying Russian oil in an attempt to force Moscow Russian output averaged 1.46mn tonnes per day
to remove its troops from Ukraine. during the first 13 days of June, the news agen-
Like elsewhere, India is struggling to keep cies said, an increase of around 68,000 barrels
inflation under control. per day (bpd).™

SOUTHEAST ASIA

Sapura wins six contracts worth $613mn

PROJECTS & MALAYSIAN contractor Sapura Energy, its asset utilisation rate from the current eight
COMPANIES through its subsidiaries and joint venture, has rigs in operation to 11 rigs by the end of the 2023
won six contracts worth a combined MYR2.7bn financial year.
($613mn). Sapura’s joint venture company con- “Sapura Drilling Asia Ltd has showed its
tributed MYR176mn ($40mn) of this, according ability to deliver in Thailand when it was
to a filing with Bursa Malaysia. awarded three new long-term contracts for its
The company described the awards as “major offshore tender-assist drilling rigs,” the com-
contract wins”, covering work in the Asia-Pacific pany said.
and Atlantic region. Sapura attributed the wins News of the contracts comes after Sapura
to its Reset plan, which is aimed at improving entered into a memorandum of agreement
the debt-ridden company’s long-term sustaina- (MoA) at the end of May to sell its Sapura 3000
bility. The plan is focused on bolstering Sapura’s pipelaying and crane vessel to Abu Dhabi’s
liquidity position, streamlining its operating Safeen Feeders for $71.5mn. Cash generated
model and providing greater flexibility for future from the sale, which is due to be completed by
growth. mid-July, will be used for working capital and to
The Reset plan also includes a shift in the reduce Sapura’s borrowings.
company’s bid strategy to focus on areas where it The sale is also thought to be part of Sapu-
is highly competitive. The contracts suggests that ra’s Reset plan. Separately, the company said
this approach may already be paying off. recently that it was actively working to secure
Sapura said its drilling business segment con- new sources of funding to ensure it has sufficient
tinues to secure new contracts under the current capital to execute its turnaround plan. It added
market conditions, and is expected to increase that this included the sale of non-core assets.™

Week 24 17•June•2022 www. NEWSBASE .com P9