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Modi wants all arms of government to sing in one tune: Saurabh Chandra writes to power secretary to correct anomaly

August 29: In line with Modi wanting all arms of the government to sing in one tune, the petroleum secretary, Saurabh Chandra has put out an official communication to the power secretary, P K Sinha to seek the power ministry's co-operation in responding to the Writ Petition no.1022 of 2013 filed by Federation of Farmers Association and Anr against the UoI and others in the Supreme Court of India.
8The petroleum and power ministries are the 1st and 2nd respondents, respectively in the abovementioned petition, where counter affidavit (CA) on behalf of the petroleum ministry has already been filed.
Notably, the central agency section of the Supreme Court has pointed out that the CA proposed to be filed by the MoP, which it is currently reviewing, is at variance with the CA filed by the petroleum ministry.
8Government departments, says Chandra, should not oppose each other before a court of law, and instead, differences, if any, should be brought for resolution to the cabinet secretariat
8Chandra has articulated the variances, specifically in paras 15, 18 and 20, in the letter sent out to Sinha.
Details of the variances
8MoPs counter affidavit mentions that its proposal to accord highest priority to power sector at par with fertilizer sector has not been agreed upon by EGoM in the meeting held on August 23, 2013. Chandra has pointed out that it is not appropriate to claim in the affidavit that its proposal was not accepted by EGoM, as MoP had been represented in the EGoM. Besides, EGoM decisions are collective decisions taken after due consultation with various stakeholders and arrived at after due consideration based on the facts and priorities of the government.
8Chandra has stated that MoPs claim in its affidavit that it is at priority no.3 for gas allocations to the sector is false and also, since gas is a natural resource, there cannot be geographical reservations for the use of gas, as mentioned in para 15 of the counter affidavit. Notably in the same meeting of the EGoM, in the case of NELP gas, the power sector has been accorded the highest priority for additional production of NELP gas after meeting the requirement of supply of 31.5 MMSCMD of domestic gas (including NELP, APM, non-APM and Pre-NELP) to the fertilizer sector. Hence, it is not third priority as claimed in the MoPs CA.
8Since domestic gas production is much lower than demand, any additional allocation to any particular sector will always be at the cost of other sectors. Chandra says that the power sector has always received due priority in allocations, and hence claiming more is not justified.

Amguri field-I: ACIL to submit BG to protect ONGC's investments and opportunity cost

August 29: Now that ONGC has decided to hold the 60% stake in the Amguri field in Assam -- which was forfeited by the government after Canoro Resources Ltd's (CRL) 60% PI was terminated for trying to sell its equity to a Chinese entity without the government's knowledge -- on behalf of the government, the E&P major has now got down to finalizing the modalities of the transfer.
First of all, to safeguard its investment in the Amguri field, the ONGC Board has asked Assam Company India Ltd (ACIL), which hold the remaining 40% stake in the block, to submit a Bank Guarantee for an amount equivalent to its (ONGC) share of investment plus opportunity cost (at 14%) on a yearly basis.
The PSC for the field will be amended accordingly to include the fresh BG provisions. In case, ACIL fails to submit the BG, within the given deadline, ONGC will have the right to encash the existing BG and the contract will be recommended for termination.
The amended PSC will also include modifications that will allow new investments in the field by ONGC on a pro-rata basis. Such investments will be recovered by the E&P major from the revenue accruing in the field on a priority basis till it recovers its full investment and opportunity cost. In other words, the unrecovered past costs will only be recovered by ACIL after the new investments are recovered by ONGC.
Then again, ACIL will indemnify ONGC against all past liabilities and claims raised by Canoro, or any third party, including pending statutory payments and penalties.
8It will be only after the submission of the requisite BG and execution of the Indemnity Agreement by ACIL, that an approval from the petroleum ministry will be sought for handing over of the field to the operator, ACIL.

Amguri field-II: ACIL submits a composite development plan

August 29: To take forward the work in the Amguri field, the operator, Assam Company India Ltd (ACIL), has submitted a composite development plan for the field.
The composite plan includes drilling of six wells, setting up of a gas compression project and installation of a water disposal plant.
The six wells are: Amguri-5, Amguri-6, 10B, 11 Main, 11 Mid and Amguri-14
The composite plan comprises of two scenarios (Plan A and Plan B) with corresponding budgets. Under the first scenario, a gas price of $4.2.Mcf and an oil price of $90/barrel has been taken while under the second scenario, the gas price has been pegged at $5/Mcf and oil price at $100/barrel.
The NPV at 12% discount, under both the scenarios, works out to $10.56 million and $18.63 million, with an IRR of 20.1% and 26.31%, respectively.
As the composite development plan is currently being reviewed by ONGC, a decision on which plan to go forward with, has not yet been taken.
The field being non-operative for the last three years, will require substantial amount of capex to bring it back to production.
8ACIL is already carrying forward an amount of around $37 million as Canoro's share of past cost out of the total unrecovered past cost of $61.4 million, which it plans to recover from future production from the field.

Petroleum secretary monitors OIL's performance on weekly basis: Company takes measures to raise output

August 29: OIL's production target for Assam and Arunachal Pradesh for the first quarter of 2014-15 was set at 8,54,349 MT. However, as against the assigned target, the achievement during the quarter was 8,33,035 MT (97.5% achievement). Keeping in mind the fact that the petroleum secretary has started monitoring oil PSUs performance on a weekly basis, OIL has taken up the following measures to improve production:
8Application of technology, developed by FOROIL, for reviving production from 22 sick wells in the Tengakhat field in Assam
 8Production of High Pour Point (HPP) high viscous oil as a pilot case in one of its well.
 8Hydraulic Fracturing (HF) to be carried out in five wells in different reservoirs starting Q3, 2014-15
 8Carrying out of matrix acidization jobs in wells having poor inflow and poor productivity due to skin damage
 8Carrying out radial drilling for revival of 10 wells which are shut-in due to poor inflow and productivity.

Four John Energy work-over rigs get eight-month extension-I: Rigs from fresh tender will be available only from March, 2015

August 29:  ONGC has decided to extend its contract with Focus Energy -- under which it had hired four work-over rigs -- for a period of another eight months to fill the gap for the time till the new rigs hired under a fresh tender are mobilized.
8All the four contracts were originally signed for a period of three years but were later granted extensions for another six months.
8The four rigs -- John-50-IV, John-50-V, John-50-VI and John-50-VII -- have been hired under four separate contracts. The extended contracts for two of the four rigs have already expired in July 2014, and the remaining two will expire in September and October 2014.
8Accordingly, the fresh eight-month extensions will be granted from the respective de-hiring of the four rigs starting from July upto October 2014.
8As the new rigs from the fresh tender are expected only by March 2015, a need was felt to fill the gap till the new rigs get mobilized.
8The eight-month extension period will take care of the interim period starting from July 2014, upto March 2015.
8As it was necessary to get the rigs for uninterrupted operations, the extensions have been granted on a nomination basis.
8The total value of the extended contract works out to Rs 9.38 crore, including service tax (12.36%).

Four John Energy work-over rigs get eight-month extension-II: Costing details

August 29:  The eight-month extensions have been granted at the following rates (including 12.36% service tax):
8Mobilization fee (lumpsum): Nil
8Operating day rate (ODR): Rs 83,146.40
8Non-operating day rate (NODR): Rs 74,831.76
8Equipment breakdown day rate (EBDR): Rs 41,573.20
8Inter-location movement (ILM) charge (lumpsum) upto 10 kms: Rs 4,49,440
8ILM charge per extra km (if distance is more than 10 km): Rs 2,247.20
8De-mobilization fee (lumpsum): Nil

Four John Energy work-over rigs get eight-month extension-III: Why ONGC can't time new orders with the expiry of earlier contracts?

August 29:  This is not the first time that ONGC has failed to hire rigs at a time which coincides with the expiry of the earlier contracts.
8This is a regular phenomenon and in this kind of a situation the company is left with no option then the get the existing rig contract extended on a nomination basis.
8The reasons for the delay in finalizing the contracts are many. Majority of the delays happen because of the time taken in finalizing the bid evaluation criteria (BEC) for the tender.
8The finalization of the BEC takes so much time that the ONGC's schedule for hiring of the rigs go haywire.
8There is lack of will, it seems. It is not that the E&P major cannot hire a rig if it really wants to. There have been instances when the company has been able to hire a rig in a record time through a fast track hiring process.
8Substantial time can be saved through a fast track methodology by doing away with processes like holding of a pre-bid conference.

Delay in grant of PML in block MN-OSN-97/3: DGH contests rejection by ministry

August 29:  The DGH has contested the ministry's rejection to restructure the exploration period in the Mahanadi block MN-OSN-97/3, saying that similar relaxations have been provided earlier in other blocks so why not this block be granted an extension on the same lines.
8While the effective date of the PEL approved by the ministry was April 12, 2000, the PEL was granted only on May 19, 2000.
8The DGH wants the ministry to change the effective date of the contract on account of the delay in the grant of PEL. It also wants the block to be granted 118 days as excusable delays on account of the delay.
8As the contractor is allowed to start exploration activities in the block only after getting the PEL, the effective date of the PSC should be from the date of grant of the PEL and not from the date on which the approval from the ministry has come, the DGH has argued.
 8The DGH has pointed out that similar extensions were granted by the ministry in blocks, KG-DWN-98/2, KG-DWN-98/5 and KG-OSN-97/1, so there is no reason to deny extension to this block.
 8In light of this, the DGH has requested the ministry to consider the effective date of the PSC with effect from September 14, 2000 (including excusable delays of 118 days) and not from April 12, 2000.

Diesel Hydrotreater Project at VR gets delayed

August 29: 8HPCL's Diesel Hydrotreater Project at its Vizag refinery gets delayed due to numerous reasons -- delay in reworking of process package, resitement of existing facilities for clearing project sites, environmental issues and poor performance by the contractor.
8Further, there have been delays in obtaining renewal of the Consent for Operation (CFO) for the refinery as well as for commissioning of DHT project, due to administrative and procedural delays at the office of the AP state government.
8Notably, the pre commissioning activity is in progress and the project is expected to be commissioned in September or October, 2014.
Rajasthan refinery project on hold; state government approval not yet through
8Although 4800 acres of land has already been allotted to the Rajasthan refinery project, the project is still under review by the cabinet sub-committee of the Rajasthan government since February, 2014, and the state support agreement is awaiting approval of the the Rajasthan government.
8And so, HPCL has put the project on hold.
Many projects delayed due to delay in forest clearance
8The ministry has stated that details of all projects delayed on account of delay in obtaining forest clearances should be forwarded to the petroleum ministry for facilitating closure on a case by case basis.
8The ministry has also suggested that since issues amongst OMCs are common, they could consider a collaborative representation to the ministry for facilitation.

HPCL projects get delayed: MHMSPL project, ASPL project and Bokaro railway depot work get delayed

August 29: Many large HPCL projects have been delayed due to delays in sanctions and approvals from regulatory authorities, forest clearances and new compliance requirements.
Details of Rs.100 crore and above projects that have been delayed and some of the key reasons for delay in other projects:
MHMSPL project gets delayed due to issues with ROU and land acquisition and forest clearance
8MHMSPL project gets delayed due to public resistance issues in opening of ROU and permanent land acquisition for Neriya Pump station and pending forest clearance
8Forest Diversion Stage II approval from the MOEF and /Karnataka State forest has been abnormally delayed and is still pending.
8Although efforts are on to get the necessary clearances, the project completion is expected to get delayed due to the need for a minimum 2 clear seasons for completing the 25 Km critical Western Ghat section
ASPL project commissioning delayed despite mechanical completion
8The commissioning of Awa-Salawas Pipeline (ASPL) project has been delayed due to CPCB moratorium in Salawas Village for new projects, because of which MOEF denied EC for additional MS tankage in existing Salawas Depot.
8This is, despite the mechanical completion of the project in June, 2014, which is well before the PNGRB defined target completion time of November 15, 2014.
8COE for realignment of existing tankages and associated. Salawas revamp project was obtained in December, 2013 after rigorous follow up with all the concerned agencies (PNGRB, MOP&NG, MOEF-EC/RSPCB)
8The scheduled completion of this project is now April, 2015.
Depot/Terminal projects delayed due to compliance requirement to new MB Lal committee recommendations
8Although some of HPCL's depot / terminal projects are mechanically completed, their commissioning has been been delayed due to new MB Lal committee recommendation compliance requirements.
8Efforts are being made to expedite all the projects, including railway depot work completion at Bokaro, to enable OISD inspection and commissioning.

HPCL's crude offtake April-June, 2014: Lower than projected

August 29: Crude oil purchased by HPCL during April to June, 2014 was about 74% of its planned prorated upliftment for the quarter, primarily on account of planned unit shutdown at its Mangalore and Vizag refineries.
8The company purchased a total of 3469 TMT of crude as against its prorated upliftment of 4697 TMT for the quarter.
8Indigenous crude purchased was 85% of the prorated upliftment (actual 1014 TMT; prorated upliftment 1192 TMT. This consisted of 905 TMT of MH crude as against target of 1117 TMT and CB crude of 109 TMT as against target of 75 TMT.
8Net imports were at 70% of the prorated upliftment (actual 2455 TMT; prorated upliftment 3505 TMT).
8The crude was purchased from Saudi Aramco, SOMO Iraq, Totsa Basrah Lt, ADNOC, Abu Dhabi and PETCO Malaysia in the quantities 682 TMT, 481 TMT, 429 TMT, 398 TMT and 85 TMT, respectively.
8The actual purchase from ADNOC was at 159% of the prorated upliftment due to economic parcel size.
8Purchases from TOTSA, SOMO and PETCO were short at about 86%, 59% and 34% of the prorated upliftment for the quarter.
8Additional 60 TMT of Kuwait crude was purchased from BPCL on high sea sale basis in the month of April due to delay in MR vessel arrival.
8However, no purchases was made from KPC and Brunei Shell during the quarter, since the purchases are based on requirements against optional quantities under the contracts.

HPCL Management Discussion and Analysis Report 2013-14: Details

August 29: The website carries here, for reference purposes, HPCL's Management Discussion and Analysis Report 2013-14, under the following heads:
8Developments in the economy and the oil sector
8Performance profile, in terms of gross sales, profit before tax, provision for taxation, profit after tax, depreciation and amortisation, borrowings, capital assets, investments, gross refining margins (GRMs), earnings per share and dividend
8Refineries, in terms of global scenario, crude oil imports, physical performance & initiatives and enhancement of refining capacity
8Marketing, in terms of retail, LPG, direct sales of lubes, direct sales (Industrial and consumer), aviation, natural gas, operations and distribution, pipeline and projects and innovations
8Research & development
8Quality assurance
8Health, safety & environment
8Exploration & production (E & P)
8Renewable energy
8Information systems, including information systems center, new initiatives and communication infrastructure and security

8Human resources, including leadership development, capability building, certified petroleum manager program, project sankalp - (Operation & distribution), ji haan samarth (LPG), samvad (LPG), talent sourcing and acquisition, performance management, improvement in industrial harmony, employee engagement initiatives, productivity enhancement initiatives
8Right to inormation (RTI)
8Corporate social responsibility
8Official language implementation
8Awards received
8Corporate governance
8Risk management
8Global compact
Joint ventures and Subsidiaries
8HPCL- Mittal energy ltd. (HMEL)
8South Asia LPG Company Pvt Ltd (SALPG)
8Prize Petroleum Company Ltd. (PPCL)
8Hindustan Colas Ltd. (HINCOL)
8HPCL Biofuels Ltd. (HBL)
8CREDA-HPCL Biofuel Ltd. (CHBL)
8Petronet MHB Ltd. (PMHBL)
8Bhagyanagar Gas Ltd. (BGL)
8Aavantika Gas Ltd. (AGL)
8GSPL India Gasnet Ltd (GIGL) and GSPL India Transco Ltd. (GITL)
8HPCL Shapoorji Energy Limited (HSEL)
8HPCL Rajasthan Refinery Limited (HRRL)
8Mangalore Refinery and Petrochemicals Ltd. (MRPL)

HPCL Briefs

August 29: 8HPCL includes 32 additional pensioners under the ex-gratia scheme: HPCL includes 32 additional pensioners under the ex-gratia scheme consequent to increase in the ex-gratia entitlement.
 --The company currently has 1173 pensioners who are availing the ex-gratia benefit, and consequent gradewise ex-gratia revision, 32 pensioners who were unaware of the scheme earlier and those who have become eligible now have made their applications.
 --The additional financial implication on account of inclusion of these 32 pensioners is approximately Rs.1.12 lakh per month.
8HPCL re-introduces early retirement scheme: The company has recently approved the re-introduction of Early Retirement Scheme (ERS), which will enable management and non-management employees who wish to separate form the services of the company to do so.
 --The scheme is essentially meant to provide an exit option to employees who may not be interested in continuing with the company due to various reasons, but are compelled to do so as they do not want to be deprived of post retirement benefits like medical insurance and also forfeit accumulation towards Defined Contributory Scheme (DCS) which has been effective since January 1, 2007.
 --Notably, these benefits are not available on resignation.

Tender Briefs

August 29:  8GSPC floats tender for procurement of lubricants for its Gujarat onshore block: GSPC has floated a tender for procurement of lubricants, which include oil and grease, for its Ahmedabad, Tarapur and Ankleshwar assets in Gujarat.
 --The due date for submission of bids is October 13, 2014 (upto 16:00 hrs)
 --Click here for more information
8More tenders: Some more tenders floated by oil and gas companies are:
 --Supply of guided wave radar type level transmitters, Mangalore [MRPL] Details
 --Shutdown maintenance jobs of furnace column vessel reactors, Haldia refinery [IOCL] Details
 --Hydro-testing of air vessels and testing of pressure safety valves, Assam [OIL] Details
 --Balance pipeline laying and terminal works, Vijaipur-Kota pipeline project [GAIL] Details

News Briefs-I

August 29:  8OIL carries out heath assessment of its pipeline network: After the gas pipeline blast in Andhra Pradesh, instructions have been sent to all public sector companies to spruce up safety. As per the instructions, OIL carried out a heath assessment of its pipeline network and informed the following:
--The average life of the company`s pipelines is around 25 years
 --The company conducts an internal check after 10 years of life of the pipeline. However, health checks are conducted at regular intervals.
 --The company is replacing old pipelines in a phased manner.
 --Efforts are made to ensure the completion of replacement of old pipeline at the earliest
 8OIL renews consultancy services contract with Gartner for two more years: OIL has renewed its advisory and consultancy services contract with Gartner Industry Advisory Services for two more years.
 --This is a premium service that OIL has been using to leverage technology and improve business outcomes.
 --Gartner has helped OIL in attaining its objectives in critical projects like SAP upgrade, RFID, ERP CCC and processing of information in SAP.
 --OIL`s IT department has also been deriving immense benefit from Gartner`s services in terms of IT related technologies, vendor information as well as benchmarking and technical evaluation of offers.

News Briefs-II

August 29: 8HPCL imports Rs.1,790 crore and exports Rs.1,187 crore worth products during Q1 2014-15:  HPCL imports products worth Rs.1,790 crore (368.44 TMT) and exports products worth Rs.1,187 crore (282.61 TMT) during the period April to June, 2014.
 --Notably, exports for the month have jumped up to a whopping 243% of the exports of the corresponding period of the previous year, while imports have increased to 123% of Q1 2013-14.
 --Q1 2014-15 saw exports of naphtha, fuel oil, MS and lubes/LOBS of 129.83 TMT, 61.31 TMT, 91.43 TMT and 0.014 TMT, respectively, valued at Rs.123.66 crore, Rs.35.14 crore, Rs.90.76 crore and Rs.0.04 crore, respectively.
 --Imports for the quarter consisted of 339.90 TMT LPG worth Rs.1,672.64 crore and 28.55 LFSO worth Rs.116.79 crore.

8Economic division in petroleum ministry works on a road map to reduce import dependency: The economic division in petroleum ministry has begun working on a new road map to reduce India`s import dependency.
 --To take its initiative forward, the division has sent out a detailed questionnaire across various departments in the ministry, DGH and OIDB to enable evaluation and assessment of development in the oil and gas sector and performance of various programs and projects during the last 7-8 year.
 --Essentially this covers the 11th five year plan (FYP) and the first two years of the 12th FYP, as well as the projections for the remaining three years of the 12th FYP, that is 2014-15, 2015-16 and 2016-17.
 --The data asked for covers information on targets and achievements and reasons for variation against various physical as well as financial parameters.
 --The department has also asked for a 3-4 pages input on the issues needing detailed appraisal and corrective measures.

Changes in CBM policy-I: Background paper calls for doing away with relinquishment clause

August 28: All kinds of background papers circulate around the petroleum ministry. Some of them are unsolicited while others are not. Not all such background papers can be dismissed as frivolous or fake as this website has often noticed that content from such notes do find their way into policy decisions. The whole process underscores the need for a transparent methodology for collection of information from stakeholders and public for incorporation in public policy. The veil of secrecy must be lifted.
For reference purposes, the website carried here a paper recommending a series of changes in the CBM policy for future rounds of bidding.
 Among the changes proposed are:

8Articles 4 on Relinquishment: The recommendation is that it should be removed or should be at the discretion of the contractor. Since there is no Cost Recovery in the CBM contract, it is in the best interest of the contractor to use the entire block for monetising the CBM resources. If the area does not have the potential, then it will be in the interest of the contractor not to drill and to give it back to the government.
8Article 6 on Steering Committees: The following Rights of the SC should be deleted: (a) Appointment of auditors, approval and adoption of accounts, (b) Annual Budget for development & production operations, (c) Approval of Development Plan and corresponding budget, (d) Retention of more than eighty percent (80%) of the Contract area at the end of Phase II and (e) Any proposed mortgage, charge or encumbrance on CBM assets, CBM reserves or production of CBM
 8Article 9.1 on Government Assistance: A new sub-clause 9.1 (d) should be added "Government will coordinate with the concerned department at the Central and State level to provide the adequate CISF cover for the important establishments of CBM operator"
 8Article 10 on Production of CBM in Phase I and II: During this period, the operators generally resort to technical flaring of gas. However, the incidentally produced gas from Phase I & II can be easily sold in local market (Clause 10.9). However, the clause requires further clarity in terms of PEL-ML conversion, income tax holiday consideration. From an Income Tax holiday perspective, the Operator may also be given an option to choose the desired 7 year holiday period. Pricing should be on arm`s length market determined pricing.
 8Article 1.37 and Article 11 on Definition of Effective Date
and CBM Mining Lease: Entire clause should be deleted and instead following should be written: "Contractor will get the deemed approval for issuance of Petroleum Exploration License (PEL)/ Mining Lease by the State Government at the time of signing of CBM contract with the Government of India"

Changes in CBM policy-II: Other radical amendments suggested

August 28: The background paper has also suggested other radical changes, including: 
8Article 14 on Protection of the Environment: The background paper in circulation in the petroleum ministry has recommended that the contractor should get the deemed approval for Environmental clearance from the Ministry of Environment & Forest and Consent to Establish and Consent to operate from the State Pollution Control Board.
 8Article 11.2 on Commercial Assessment Area extends beyond the Contract Area: This article deals with allocation of areas adjacent to the CBM contract area in which the CBM Reservoir or Commercial Assessment Area extends beyond the Contract Area, on terms and conditions as decided by the Central Government, provided that such area is not subject to a license or lease granted to any other person, not the subject of negotiations/bidding and available for licensing and not subject to litigation or arbitration. In many cases it is found that most of such contiguous areas have been identified for captive coal mining by CIL for future. Thus an application for allocation of such areas by the operator has been objected by Ministry of Coal citing no guidelines by MoPNG for simultaneous Coal and CBM exploitation. At the same time the MoC has unilaterally been carving out coal blocks within CBM awarded blocks and some of them have even been awarded.
 8Article 15.4 on Deductions from PLP and Royalty in lieu of infrastructure investment: Since CBM reserves are found in traditional coal belts and often in remote areas they have no inherent infrastructure (viz. water network, pipeline) set-up. As a result, operators have to initially divert huge capital in terms of building such infrastructure.
Infrastructure and compression cost should be deducted from delivered price to compute Royalty and PLP payable to the government. The CBM contract has no clause in the PSC that makes it mandatory to seek government approval before claiming any such deductions.
 8Article 16 on Customs Duties: There should be specific mention of exemption of Excise Duty to the Contractor as it is a "deemed export". If we import the same product there is no excise but if it is bought locally there is an additional burden.
Further no Essentiality certificate / approval of the government should be required for claiming exemption from the custom duties.
 8Article 22 on Records, Reports, Accounts and Audit: Auditor should not be appointed with the approval of the SC and further the annual accounts to be submitted with the SC only for its perusal.
 8Article 24.4 and 24.7 on Title to CBM Data and Assets: The government should not have any right for vesting of assets, acquired or owned by the contractor for use in the CBM operations.
Assets can be sold by contractor as per operational requirement.
 8Article 26.1 on Financial and Performance Guarantees: It should be clearly mentioned that Bank Guarantee needs to be submitted only after the Contractor`s gets full right and unrestricted access to the entire CBM block.

Changes in CBM policy-III: Same operator should do simultaneous mining and E&P work

August 28: Among the other recommendations made in the background paper are:
8Simultaneous activities of CBM with other hydrocarbons and CMM/AMM

If, simultaneous mining should at all be allowed, this should only be for future blocks and should be announced at the time of bidding. Further, the same operator should carry out both the activities, i.e. CBM E&P and mining, in order to address safety concerns and improve the efficiency.

8Approval process for surface facilities
Statutary bodies such as DGMS follow the Oil Mine Regulations (OMR) for conventional Oil and Gas which is also applicable for CBM. Further, DGH has safety standards drawn in from Oil Industry Safety Directorate (OISD). On the contrary, most of the other countries involved in CBM adopt to the American Petroleum Institute (API) guidelines which are reasonable and based on sound technical basis, same should be done in India. This would avoid current pre-requisites of large foot-prints required to establish the surface facilities leading to massive surface facilities for CBM. Also, at present permissions are required to be taken from various statutory bodies which take a lot of time. Single statutory body will be helpful to avoid delay in development of project.

Data on City Gas Distribution in India

August 28: The website carries here, for reference purposes, comprehensive data on city gas distribution in India, under the following heads:
 8Percentage share of taxes being included in CNG / PNG price
Domestic PNG price is comparable with the price of 14.2 Kg domestic LPG cylinder in Delhi
Details of ifferent taxes and duties that are included in the prices of PNG & CNG
Geographical areas covered by various entities and their authorization status by PNGRB
State-wise details of LPG connections surrendered till date as against the PNG connections provided
Company-wise details of the connections provided and LPG connections surrendered. Steps taken by the govenment  to ensure surrender of LPG connections
Details of CNG stations operating in the country; also state wise and entity wise details of such stations
Details of CGD JVs formed by GAIL
Sector wise consumption of natural gas in the country during 2013-14
State wise and sector wise consumption of natural gas during 2013-14
Order of preference adopted for allocation of gas to various sectors
Projected production of indigenous gas in the coming 5 years
Projected demand for natural gas in the country in coming years
Sate wise consumption of natural gas in CNG and Domestic PNG segments during 2013 -14
Efforts made by the government to increase production of natural gas in the country
8Steps taken by the government, to increase city gas infrastructure in the country
 Click on Details for more




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