Page 9 - AsianOil Week 01 2021

AsianOil SOUTH ASIA AsianOil

Indian fuel prices soar

PERFORMANCE INDIAN gasoline prices climbed to an all-
time high this week amid improving domestic
demand and stronger international oil prices.
Oil marketing companies (OMCs) hiked gas-
oline prices in Delhi by INR0.23 on January 7
to INR84.2 ($1.15) per litre, while diesel prices
climbed by INR0.26 to INR74.38 ($1.02) per
litre. Delhi’s previous gasoline price high was
INR84 ($1.15) per litre on October 4, 2018, when
diesel sold for INR75.45 ($1.03).
Gasoline prices in Mumbai climbed to
INR90.83 ($1.24) on January 7, to INR86.96
($1.19) in Chennai and to INR85.68 ($1.17) in
Kolkata. Diesel prices reached INR81.07 ($1.11)
per litre, INR79.72 ($1.09) and INR77.97 ($1.07)
respectively.
India’s fuel prices have been responding to
both a resurgence in local demand in recent
months, which has seen refineries return to two sides reportedly locked horns over a produc-
100% capacity, as well as a rally in oil prices tion agreement, forcing negotiations to spill over
driven by OPEC+ decision-making this week into a second day.
over production cuts. Saudi’s commitment to production cuts
Saudi Arabia announced on January 5 that it helped Brent crude climb to $54.38 per barrel on
would to cut 1mn barrels per day (bpd) of its own January 7. While India’s OMCs have been trying
crude production in February and March. While to keep fuel prices stable during the pandemic,
most other OPEC+ countries will continue pro- rising international fuel and crude prices have
ducing at similar levels, Russia and Kazakhstan encouraged them to begin hiking prices.
will increase their output slightly. “The oil companies have kept the retail prices
Although Saudi Oil Minister Prince Abdu- a bit stable. The [crude] price has gone up a lot.
laziz bin Salman has described the move as a gift There is no cushion,” local financial daily Mint
“to support the market”, some observers have quoted an unnamed senior government official
speculated that it is more of a gift to Russia. The as saying on January 6. ™

SOUTHEAST ASIA

Petronas assumes control of E11 gas hub

PROJECTS & MALAYSIA’S Petronas has assumed operator- ashore to the Petronas LNG complex at Bintulu.
COMPANIES ship of the offshore E11 natural gas hub from In other upstream news, the company has
Royal Dutch Shell, the state major said on Jan- said it plans to fully resume crude production
uary 7. from its offshore Baram field in the third quar-
Petronas said its subsidiary, Petronas Carigali ter. Production was halted at the field after a ship
Sdn Bhd (PCSB), had taken over the hub, which collided with infrastructure on October 27, forc-
is located 130 km offshore Bintulu, Sarawak ing Petronas to declare force majeure at the Miri
State, on January 1. crude terminal on October 29.
Sarawak Shell Berhad (SSB) had operated “Rectification work is currently being carried
E11 since 1982, when it begun producing under out at the Baram facilities, which are expected
the MLNG production-sharing contract (PSC). to resume full production in Q3 2021,” the state
Petronas’ vice-president of Malaysia assets, major said.
Bacho Pilong said: “Today marks a significant Petronas added that Petrofac had declared a
milestone for PCSB as the operator of the E11 separate force majeure at the hub on December
hub, which is pivotal in ensuring reliable, stable 4, owing to a “technical malfunction”. Petrofac
and cleaner energy supply to the market, while operates the Cendor development in Block
continuing to develop Sarawak as a regional gas PM304, which is located offshore Peninsular
hub.” Malaysia.
The hub provides processing facilities for a Petronas added: “An investigation is ongoing
number of surrounding gas fields – including E8, and the Cendor terminal is currently on partial
F23, F5 and F13 – with production being piped production mode.”™

Week 01 07•January•2021 www. NEWSBASE .com P9