Page 9 - AsianOil Week 01 2021
P. 9

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
   4   5   6   7   8   9   10   11   12   13   14