KG-D6 field-I: MC approves development plan for four satellite gas discoveries, 10 MMSCMD of gas expected by 2016

Feb 7: There are a lots of things not going right with RIL's D-6 block.
 8The Management Committee (MC) of the block had recently put off the review of three discoveries -- D-29, D-30 and D-31 -- on the ground of absence of adequate data.
 8But there is now some light at the end of the tunnel.
 8The Management Committee has now approved an Optimized Field Development Plan (OFPD) for four other satellite gas discoveries -- D-2, D-6, D-19 and D-22 -- after sitting on the operator RIL`s proposal for a good two years.
 8The approval means that the country can expect 10 MMSCMD of gas annually from these four discoveries by 2016.
 8The capex for the development of the four satellite gas fields has been pegged at $1.52 billion.
 8As part of the approved optimised development plan, RIL will drill eight gas wells in the four fields which are estimated to have 1,343 BCF of (2P) gas initially in-place (GIIP)
 8The reserves (2P) are, however, pegged at 617 BCF over the eight-year period.
 8As per DGH estimates, the proposed OFDP is estimated to produce gas at a peak rate of 10.30 MMSCMD annually from the eight producer wells adding up to 617 BCF over the field life of eight years. However, RIL has pegged the cumulative gas production a little higher at 623 BCF.
 8The techno-economic analysis is carried out by DGH at a gas price of  $4.2/mmBtu with contractor`s proposed estimated capex of $1.52 billion.
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KG-D6 field-II: Capex brought down by 74%

Feb 7: RIL had to go through a long process before it got the Optimized Field Development Plan (OFDP) approved. In the process, the Management Committee (MC) was successful in bringing down the capex by around 74% from $5.91 billion to $1.52 billion.
 8Initially, the company had proposed to develop a total of nine satellite gas discoveries, namely D-2, D-4, D-6, D-7, D-8, D-16, D-19, D-22 and D-23. It also submitted a Field Development Plan (FDP) for the nine discoveries on July 14, 2008.
 8As per the proposed FDP, the contractor proposed an estimated capex of $5.91 billion for the development of the nine satellite gas discoveries.
 8The techno-economics was carried out by the DGH at a gas price of $4.2/mmBtu. While the projected total revenue was estimated at $6.52 billion, the Net Present Value (NPV) of the cash flow at 10% discount factor worked out to a negative $2.51 billion.
 8As the FDP was not found to be viable, the MC asked RIL on March 31, 2009, to convene a technical meeting to address the issue.
 8RIL, on November 17, 2009, informed the MC that instead of modifying the FDP, it would like to submit modified concepts of development of the discoveries.
 8Subsequently, it prepared an optimized field development plan (OFDP) taking only four discoveries -- D-2, D-6, D-19 and D-22 -- into consideration.
 8The OFDP was submitted to the MC for its review on December 29, 2009, which was finally approved on January 3, 2012.
 8The capex under the optimised plan was pegged at $1.52 billion, down 74.2% from the originally estimated $5.91 billion
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KG-D6 field-III: Four options were mooted

Feb 7: When the original FDP was not found to be viable by the MC, instead of submitting a modified FDP, RIL submitted four different options for development leaving it to the Management Committee (MC) to choose any one which it found to be the most suitable.
 Option-1:
 8Drilling of development gas wells with intelligent (sub-sea) completion
 8Installation of a satellite Deep Water Pipe Line End Manifold (DWPLEM)
 8Laying of a 24-inch pipeline
 8Installation of a Control-Cum-Riser Platform (CRP) and an onshore terminal (OT)
 Option-2:
 8Drilling of development gas wells with intelligent (sub-sea) completion
 8Installation of a satellite Deep Water Pipe Line End Manifold (DWPLEM)
 8Laying of a 24-inch pipeline
 8Using the existing Deep Water Pipe Line End Manifold (DWPLEM) of D-1 and D-3 fields
 8Installation of a CRP and an OT
 Option-3:
 8Drilling of development gas wells with intelligent (sub-sea) completion
 8Laying of pipelines to existing D-1 and D-3 manifolds
 8Laying of a 24-inch pipeline
 8Using the existing Deep Water Pipe Line End Manifold (DWPLEM) of D-1 and D-3 fields
 8Installation of a CRP and an OT
 Option-4:
 8Drilling of development gas wells with intelligent (sub-sea) completion
 8Installation of a satellite Deep Water Pipe Line End Manifold (DWPLEM)
 8Laying of a 24-inch pipeline
 8Installation of a second Deep Water Pipe Line End Manifold (DWPLEM) at D1 and D-3 fields
8Laying of two, 24-inch pipeline
 8Using the existing CRP and OT.
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KG-D6 field-IV: Intermixing of gases of different nature avoided

Feb 7: The DGH agreed to opt for Option-4 considering the following reasons:
 8Due to the difference in the production regimes of the four satellite discoveries and the gas from D-1 and D-3 fields, the mixing of these gases, upstream of the Control-Cum-Riser Platform (CRP), was not found to be desirable as there was a possibility that it might impact the deliverability of wells.
 8There was also a possibility that flow assurance issues could crop up in case of direct connections of satellite Deep Water Pipe Line End Manifold (DWPLEM) to the CRP due to intermixing of gas of different nature.
 8The 24-inch pipeline would lead to more capacity as against the 18-inch line approved in the Addendum to the Initial Development Plan (AIDP) of D1 and D3 fields.
 8An extra DWPLEM was proposed under this option taking the total number of DWPLEMs to two.
 8The delivery point for gas, however, will continue, as decided earlier under the D-1 and D-3 gas field development plans, that is, at the outlet flange of the delivery facility located at the Onshore Terminal at Gadimoga village, near Kakinada (Andhra Pradesh).
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KG-D6 field-V: Production to decline from second year onwards

Feb 7: As per DGH's estimates, the four satellite gas discoveries -- having eight producer wells -- are expected to produce gas at a peak rate of 10.30 MMSCMD annually adding up to 617 BCF over the field life of eight years.
8As part of the approved development plan, the four fields are estimated to have 1,343 BCF of (2P) gas initially in-place (GIIP) against the reserves (2P) of 617 BCF.
 8The eight wells are going to produce the maximum gas at 133.6 BCF in their first year of going on-stream.
 8After this they are expected to go on a decline from second year onwards. A total of 100.7 BCF is expected to be produced in the second year.
 8Subsequently, the eight wells will produce 92.7 BCF in the third year, 73.3 BCF in the fourth year, 66.1 BCF in fifth year, 59.9 BCF in sixth year, 54.6 BCF in seventh year and 36.5 BCF in the eighth year of operation.
 8Contrary to DGH's estimates of 617 BCF, RIL has pegged the reserves higher at 626 BCF over the eight-year period.
 8In RIL's case too, the production is slated to decline from second year (129 BCF) onwards starting from 133 BCF in the first year.
 8However, as per RIL's production profile, the number of producer wells are expected to come down to seven in the fourth year, six in the fifth year and three from sixth year onwards. These three wells will produce gas till the eight year.
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KG-D6 field-VI: Total development cost pegged at $1.52 billion

Feb 7: The capex for the development of the four satellite gas fields has been pegged at $1.52 billion. The break-up is as under:
 8G&G reservoir studies: $34.71 million
 8Drilling of development wells: $473.21 million
 8Geo-tech, geo-hazard and geo-mechanical studies: $14.05 million
 8Installation of manifolds: $27.54 million
 8Installation of DWPLEMs: $37.75 million
 8Installation of sub-sea control systems: $275.21 million
 8Laying of pipelines: $371.27 million
 8Commissioning support: $6.60 million
 8Installation of pipelines crossings, metrology and pipeline protection system: $18.80 million
 8Installation tooling: $5 million
 8Mobilization and de-mobilization: $141.24 million
 8Engineering works: $26.50 million
 8Project management: $70.67 million
 8Certification and Verification Agency (CVA) charges: $12.37 million
 8Eco-protection: $4 million
 8General and administrative costs: $9.12 million
 8Information Technology: $1 million
 8Total capital cost: $1529.05 million ($1.52 billion)
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KG-D6 field-VII: Development strategy

Feb 7: As part of the new optimised development plan, RIL will create the following facilities:
 8Drilling of eight development gas wells with intelligent (sub-sea) completion
 8Installation of four cluster manifolds
 8Installation of a satellite Deep Water Pipe Line End Manifold (DWPLEM)
 8Laying of an infield well flow pipeline
 8Laying of infield pipelines connecting the cluster DWPLEMs with the Pipeline End Terminations (PLET).
 8Laying of a gas evacuation pipeline (24-inch) from the DWPLEM to the Control-Cum-Riser Platform (CRP)
 8Laying of a 6-inch MEG pipeline
 8Gas evacuation from the CRP-OT will be through the existing evacuation pipeline (3x24-inch)
 8Tie-in provision to existing facilities will have to be kept to minimize capex and opex.
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KG-D6 field-VIII: Cost recovery to be on actual auditable expenditure

Feb 7: Here are some more details on the Optimized Field Development Plan (OFPD) approved by the Management Committee (MC).
 8The development area for the four satellite gas discoveries is 229 sq km for which the contractor will have to apply for the Petroleum Mining Lease (PML).
 8As per the PSC, the cost recovery for the development and production operations will be on the actual auditable expenditure made by the contractor.
 8These development and production operations will have to be in accordance with the annual Work Programme and Budget (WP&B) approved by the Management Committee (MC).
 8In accordance with Article 10.11 of the PSC, the contractor will have to submit its annual WP&B for the development and production operations not later than December 31, each year, in respect of the year immediately following.
 8In accordance with the Article 10.12 of the PSC, the contractor will also have to prepare an estimate of the potential production to be achieved for each of the three years, following the year to which the WP&B relates.
 8Overhead expenditure have been capped at 1% as per Section 2.6.2 of the Accounting Procedure.
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Dabhol-Bangalore Pipeline Project (Phase-I): GAIL on fast track mode

Feb 7: GAIL is implementing its Dabhol-Bangalore Pipeline Project on fast track. The gas major is running much ahead of target on the project, with a progress of 82% as on December 2011, as against target of 69.6%. The pipeline's construction progress, at 49.8%, is also well ahead of the target of 39%.
8As of December 2011, 93% of engineering has been completed and all delivery of 42 out of a total of 45 orders have been completed, out of which 38 have reached the project site. The balance items are expected to reach in February 2012.
8All 1,011 km pipe have been ordered and manufacturing and coating of all bare pipe have been completed. All 46 mainline ball valves and 147 station ball valves have reached the site, along with flow tees. As of December 2011, permission has been received for 579 out of a total of 581 obstacles.
8Out of a total scope of 992 km, the Right of User (RoU) has been handed over for 741 km as of December 2011, while trenching has been completed for 549 km, welding of 621 km, lowering of 499 km and backfilling of 454 km.
8The contract for 860-km bare line pipe has been awarded to PSL Ltd., JSW Steel, Jindal India, Welspun and Megha Engineering & Infrastructures Ltd, and for coated line pipe to Man Industries and China Petroleum.
8The project is faced with only one bottleneck that of acquiring permanent land for setting up pipeline stations.
8The Rs 4,994 crore project is being implemented in two phases. Under Phase 1A, pipeline will be laid for a distance of 250 km from Dabhol to Gokak, with spurlines to Goa, while under Phase- 1B, the pipeline will be laid from Gokak to Bangalore, for a distance of 498 km, with spurlines and feeder lines to Bangalore. Under Phase-II, spurlines will be laid to Bellary, Ratnagiri, Kolahpur and Devengere. The phase-I is scheduled to be commissioned by August 2012, and Phase-II by December 2012.
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MRPL's SPM facility off Mangalore coast: Construction way off target

Feb 7: Slow construction progress is proving to be MRPL's nemesis while setting up single point mooring (SPM) facilities off Mangalore coast. The Rs 1,043 crore project registered a construction progress of a mere 34.2% as of December 2011, as against a target of 80%.
8MRPL has now asked the contractor to submit a catch-up plan to plug the slippage but only time will tell if such an initiative will actually be of any use or not.
8As of December 2011, the project was reported to be running behind schedule, with a progress of 63.4% as against the target of 84.7%.
8MRPL is also keeping a close eye on the delivery schedule for booster pumps and control valves. These items are scheduled to reach the site in March 2012 and any delay in delivery is likely to affect the installation process, which the company can ill afford at this juncture.
8The project is scheduled to be completed by July 2012, three months over the original completion schedule of April 2012.
8The project's completion deadline has been revised primarily on account of a delay in award of contract for composite works. The contract for composite works was originally scheduled to be awarded by March 2011, but the same was awarded only in July 2011. As per the contract -- awarded to ESP (Asia) Pvt Ltd on July 28, 2011 -- all mechanical works are to be completed in a period of 10 months from the date of award, while commissioning activities are scheduled to be completed in a period of one and a half months thereafter.
8The project involves setting up of SPM with submarine pipeline along with coastal booster pumping facilities and an onshore pipeline from ISPRL's Mangalore cavern to the Mangalore Refinery. In addition, the company will lay a 16-km pipeline from the proposed coastal booster pumping station to ISPRL's Mangalore cavern.
8The contract for the SPM system has been awarded on SBM Offshore Services, Switzerland, and for civil, structural and associated work on URC Construction. Furthermore, the contract for pump-centrifugal horizontal has been awarded on Flowserve India Control Pvt. Ltd., for booster pump on Pump System International, USA, for surge relief valves on Daniel Measurement and Control, Singapore, for carbon steel line pipe on Man Industries (India) Ltd., insulating joints on Nuova Giungas S.R.L., Italy, for scraper traps, pig signalers and quick opening end on Glapwell Contracting Services Ltd.
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Development of SB-14 fields: Well platform contract awarded to Abu Dhabi-based NPCC

Feb 7: ONGC has awarded a contract for installation of a well-head platform for the development of SB-14 fields to Abu Dhabi-based National Petroleum Construction Company (NPCC).
 8It is pertinent to note that the contract for the development of SB-14 fields was split into two tenders, one for the installation of a well-head platform (Tender-I) and the other for the laying of pipelines (Tender-II).
 8The contract for the laying of pipeline was earlier awarded to a consortium of Punj Lloyd and PT Sempec, Indonesia.
 8The total cost of the project -- which envisages a production of 0.197 MMm3 of condensate and 1.641 BCM of gas by 2025 -- is estimated at Rs 410.44 crore.
 8The well-head platform tender had to be re-invited after the L-1 bidder, the consortium of SEW Infrastructure Ltd and Ramunia Fabricators (Malaysia), did not agree to ONGC's terms and conditions during negotiations.
 8Subsequently, the tender was re-floated with the same bid package where NPCC emerged as the L-1 bidder. ONGC issued a Notification of Award (NOA) to NPCC on December 21, 2011.
 8Readers will recall that the pipeline tender (Tender-II) was awarded to the consortium of Punj Lloyd and PT Sempec Indonesia in November 2011. The scope of work of this tender includes laying of well-fluid pipelines, including sub-sea pipeline tie-in for WO-16 cluster fields and SB-14 project (WO-16-PLP).
 8The revised completion deadline for the project is May 2013, while the original scheduled completion date was November 27, 2012.
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Neelam Reconstruction Project: ONGC pressurizes Essar-IOEC combine to finish on time

Feb 7: ONGC, under whose aegis the Neelam Reconstruction project is being executed, is pressurizing the consortium of Essar and the Iranian Offshore Exploration Company (IOEC), the contractors of the project, to complete the balance activities as soon as possible so that the project is completed by the revised deadline of March 2012.
8The project is already behind schedule by 11 months as against the original completion date of April 30, 2011.
8The contract was awarded to the Essar-IOEC combine on January 31, 2009. 
8However, due to a delay in finalization of long-lead items by the contractor, the project got delayed.
8As of December 2011, the overall project was approximately 97% complete with physical progress being 96.8% and construction progress being 93.7%. The manufacturing progress was, however, 100% completed.
8The financial progress was 91.5% with an expenditure of Rs 279.30 crore incurred out of the approved cost of Rs 305.08 crores.
8The project envisages revamping of high pressure and low pressure (HP&LP) separators, the Waste Heat Recovery Unit (WHRU), the Hot Oil System (HOS), the Gas Conditioning System, the Flare System at the NLP Platform and the Sea Water Lift Pump at the NLW Platform. It also includes replacement of the Sump Caisson, the Potable Water Treatment Plant, the Skimmer System, the Glycol Circulation System at the NLW platform.
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Spurlines for GAIL's Bawana-Nangal Pipeline: Completion of Phase-I delayed by a month

Feb 7: Nothing seems to be going as per plan for GAIL with regard to laying of spurlines for the Bawana-Nangal Pipeline, with the completion of Phase-I of the project now delayed by another month, from June to July 2012. Cumulatively, work on Phase-I of the project has encountered a delay of six months over January 2012.
8The Rs 541 crore project involves laying a 64-km spurline from Saharanpur to Haridwar, a 74.5-km spurline from Haridwar to Dehra Dun and Rishikesh, a 16-km spurline to connect BHEL and Sidcul industrial estate in Haridwar, a 20-km spurline to connect customers in Haridwar, Rishikesh, Dehra Dun, Saharanpur and Roorkee. In addition, an 84-km spurline will be laid from the Ludhiana Tap Off POint to Jalandhar and another 20-km spurline for customer connectivity in Ludhiana and Jalandhar.
8The project's construction, however, has been split in two phases. Under Phase-I, spurlines to Haridwar and Jalandhar will be laid, while under Phase-II, spurlines to Dehradun and Rishikesh will be taken up. Phase-II of the project is expected to be completed by December 2012.
8The contract for pipeline laying under Phase-I has been awarded to Kalpatru Power Transmission Limited for the Ludhiana-Jalandhar section and to Avinash Em Projects Private Limited for the Haridwar section.
8The project is currently facing a host of issues. The construction of spurline in the Ludhiana-Jalandhar section has been affected for more than 90 days as farmers have not allowed the work to progress due to standing crop. The construction work resumed in November 2011 and the gas major is trying hard to complete work on this section by March 2012.
8Then again, pipeline laying through the Rajaji National Park in Uttarakhand has been affected due to non-receipt of permission from the National Highway Authority of India (NHAI).
8Work on the Saharanpur-Haridwar section is also affected due to steep compensation demand staged by famers in Saharanpur for opening of the Right of User (RoU).
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GAIL's Bawana-Nangal Pipeline (Phase-II): Project heading for yet another delay

Feb 7: GAIL's efforts to press for an early resolution to the dispute over opening of the Right of User (RoU) in certain sections of the pipeline in the states of Uttar Pradesh and Haryana seems to have gone in vain as the Rs 1,816 crore Bawana-Nangal Pipeline project (Phase-II) is expected to be delayed yet again.
8The project has been stuck in the mud due to a prolonged delay in opening of RoU in the districts of Baghpat, Saharanpur and Muzaffarnagar, where farmers have been arm-twisting GAIL for providing a steep compensation in return. As against a prevailing rate of Rs 15-20 per sq metre in these regions, the gas major has been forced to pay an astronomical rate of Rs 265 per sq metre in Saharanpur and Rs 468 per sq metre in Muzaffarnagar as land compensation to farmers.
8The situation has run amok in Baghpat where the compensation demand has skyrocketed to a whopping Rs 1,500 per square metre. An intense negotiation process is underway between the gas major and the farmers to arrive at a solution.
8Barring the RoU dispute, all other work on the project is complete. All plots have been registered and all statutory approvals have been obtained for all sections. Furthermore, placement of order for line pipe, its manufacturing and delivery have been completed.
8It may be recalled that the contract for line pipe coating was awarded to Welspun Corp Ltd and Jindal (India) Ltd, for pipeline laying to TJCC Ltd, Corrtech International (P) Ltd and Ace Pipeline Contracts Pvt. Ltd.
8According to EIL's monitoring report, the project registered a progress of 93% as on December 2011, as against the target of 96%, while the construction progress was even worse, at 90%, in relation to a target of 98%. The project's completion schedule has already been revised twice, from October 2010 to December 2011, and then to March 2012.
8Phase-I of the project -- which involved laying a 498-km pipeline from Vijaipur to Dadri -- has already been completed. In the second phase, the gas major is laying a 295-km pipeline from Bawana to Nangal.
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Compressor stations at Kailaras and Chainsa: Slow going for GAIL

Feb 7: GAIL continues to play catch up while setting up compressor stations at Kailaras and Chainsa. The Rs 1,167 crore project continues to be behind schedule, with a progress of 89.3% as of December 2011, as against a target of 96.5%. At such a pace, the project's completion by the scheduled deadline of March 2012 remains an uphill task.
8The construction progress continues to be a cause for worry, with only 75.3% of the work completed as of December 2011, as against a target of 100%.
8GAIL has blame the slippage on the slow progress by contractors for civil, structural, mechanical, electrical and instrumentation works.
8The gas major has reasons for doing so as progress on these fronts is well short of target.
8For example, as against a 100% target, progress of work stood at 76.3% and at 71.9% for civil and structural works at Kailaras and Chainsa compressor station, at 59.6% and 81.3% for mechanical works at Kailaras and Chainsa and at 66.9% and 54.6% for electrical works at Kailaras and Chainsa, respectively.
8In such a scenario, it appears highly unlikely that the project will be able to be completed by March 2012.
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GAIL's Karanpur-Moradabad-Kashipur-Rudrapur pipeline project: Completion deadline for Phase-I revised to June 2012

Feb 7: The completion of Phase-I of GAIL's Karanpur-Moradabad-Kashipur-Rudrapur (KMKR) pipeline project has been delayed by another two months. The Rs 252 crore project is now scheduled to be completed by May 2012 as against the original deadline of January 2012. Cumulatively, the project now stands delayed by four months over the original completion deadline of January 2012.
8The project is being implemented in two phases. In the first phase, the gas major will lay a 54-km pipeline from Karanpur to Moradabad and a 51-km pipeline from Moradabad TOP to Pantanagar City Gate Station (CGS). In Phase-II, a 54-km pipeline will be laid from IGL spurline TOP to Pantnagar CGS.
8According to EIL's  latest monitoring report, the progress on Phase-I of the project stood at 93.5% as of December 2011, as against a target of 99.3%. The construction progress is an even bigger area of concern, with a progress of only 84% as opposed to a target of 98% for Phase-I.
8Work under the first phase is running behind schedule due to obstructions created on account of acquisition of the Right of User (RoU) in the Kashipur belt of Uttarakhand. Notably, famers and land owners have been staging demand for re-routing the pipeline in Kashipur area as the compensation provided by GAIL for acquiring RoU is not acceptable to the farmers.
8Other work under Phase-I is on track. All statutory permissions have been received and ordering completed. Furthermore, line pipe, line materials and material skids have arrived at the site.
8The contract for laying of pipeline under Phase-I has been awarded to Kirloskar Constructions and Engineers Ltd and to Corrtech International (P) Ltd for Phase-II.
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GAIL's Vijaipur-Kota pipeline upgradation: Delay in grant of forest clearance slows down progress

Feb 7: Work on GAIL's Vijaipur-Kota pipeline upgradation project has fallen behind schedule due to a delay in grant of forest clearance for the Kota-Kanda section where pipeline is to be laid through the Chambal Wildlife Sanctuary.
8Laying of spurline through the Chambal Wildlife Sanctuary requires the permission of the Supreme Court. The permission from the apex court came through in July 2011. Thereafter, a public hearing was been conducted for Kota and Bundi district in October 2011 and for Bhilwara district in December 2011.
8The gas major is now expected to obtain the forest clearance by end of February 2012.
8The Rs 463 crore project has also run into trouble over non-availability of Right of User (RoU) for 142 km out of the total pipeline length of 278 km. The company is striving hard to expedite the release of the balance RoU.
8According to EIL's monitoring report, the project registered a progress of 77.6% as on December 2011, as against the target of 86.3%. The project's completion schedule has already been revised twice, from June 2011 to March 2012 and then to September 2012.
8The pipeline laying and composite works are being carried out by different contractors. Part-A and B of the contract has been awarded to PLL, Part-C to Ace Pipeline Contracts Pvt. Ltd., and Part-D and E to Avinash Em Projects Private Limited . The cathodic protection work is being executed by Corrosion Control Services Ltd.
8The project involves laying 2 MMSCMD capacity spurlines from the existing VKPL to Bhilwara and Chittorgarh in Rajasthan. This comprises a 110-km loopline from Vijaipur to Borrari, a 128-km spurline from Kota to Bhilwara and a 40-km spurline from the Chittorgarh Tap-Off Point (TOP) to Chittorgarh. 
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BPCL Briefs-I

Feb 7: 8BPCL imported 10 TMT each of Euro-III and Euro-IV MS from Vitol Asia Pte Ltd, during November 12-15, 2011, at an expected cash outflow of Rs 155.17 crore. The gasoline was imported at a price of the average of five mean quotations as published in Plats AP/AG market scan for FOB Singapore for Mogas 92 RON UNL, plus a premium of $5.88 per barrel for Euro-III and $6.88 per barrel for Euro-IV MS. The total quantity was imported on CFR Kandla basis.
8BPCL has placed an annual rate contract for the supply of Cetane Improver for its Kochi and Numaligarh refineries on Krishna Anti Oxidant. As per the contract, the corporation will procure 100 MT of cetane improver in ISO tank for its Kochi Refinery for Rs 1.29 crore with a warehouse cost of Rs 1.58 crore, and another 600 MT of cetane improver for the Numaligarh Refinery for Rs 7.77 crore with Rs 10.07 crore as warehouse cost.
8BPCL has placed a repeat order for procuring an additional 1,045 submersible turbine pumps on the US-based Veedor Root Company to meet the requirement of its retail Strategic Business Units (SBU) for the year, 2011-12. The pumps will be purchased at a cost of Rs 6.38 crore.
8BPCL exported 35 TMT (-10% Buyer's Option) of naphtha during November 12-14, 2011 to Shell International Trading Middle East Ltd., at a cost of Rs 147.48 crore. The naphtha was exported ex-Mumbai, at a price of the average of five mean quotations as published in Plats AP/AG market scan for FOB AG naphtha, plus a premium of $11.48 per MT.

BPCL Briefs-II

Feb 7: 8BPCL imported 120 TMT of LPG mix from SHV Gas Supply and Risk Management during November 2011, at an expected cash outflow of Rs 559.31 crore. The quantity was imported at a price of Saudi CP for the nominated delivery month as applicable for propane and butane in the fixed ratio of 40% of propane and 60% butane, plus a premium of $83 per MT. The LPG-mix was purchased on DES Tuticorin basis.
8BPCL has awarded the Basic Design Engineering Package (BDEP) for the CDU-4 (Crude distillation Unit) project at its Mumbai Refinery to Engineers India Ltd (EIL) on a nomination basis at a lump sum cost of Rs 8 crore. The contract has been awarded at a per diem rate of Rs 30,000 upto March, 2012 and a fixed escalation of 8% per annum compounded annually thereafter.
8BPCL exported 11 TMT  (+/-10% Buyer's Option) of naphtha to Vitol Asia Pte Ltd during November, 2011, for Rs 44.48 crore. The naphtha was exported ex-Haldia at a price of average of  five mean quotations as published in Plats AP/AG market scan for FOB AG naphtha, minus a discount of $23 per MT.
8BPCL has placed a repeat order for procuring an additional 798 Multi Product Dispensers (MPDs) along with an AMC for seven years, on Gilbarco Veeder-Root India Pvt Ltd, at an estimated cash outflow of Rs 26.42 crore. The order was placed on "lowest quote on total cost of ownership" basis.

BPCL Briefs-III

Feb 7: 8BPCL has procured 16,000 MT of non-fertilizer naphtha from Numaligarh Refinery at a cost of Rs 77.84 crore. The non-fertilizer naphtha will be sold to HPCL-Mittal Energy Ltd for the start up operations of their Bhatinda Refinery at a cost of Rs 80.90 crore. The naphtha will be sold ex-Mathura.
8BPCL imported 12 TMT  (+/-10% Seller's Option) of reformate-blend stock from Shell International Trading Middle East Ltd., during December 3-8, 2011, at an expected cash outflow of Rs 74.20 crore. The quantity was imported at a price of average of five mean quotations as published in Plats AP/AG market scan for FOB Singapore for Mogas 92 RON UNL, at a premium of $26 per barrel.
8BPCL will procure 400 KL of refrigeration oil heavy (ROH) from Panama Petrochem for a period of six months. The ROH will be procured on single offer basis, at an estimated cash outflow of Rs 3.13 crore.
8BPCL has extended the insurance coverage for its import facilities at Uran LPG plant for another three months upto March 2012. The company will pay a premium of Rs 7,10,183 to the National Insurance Company towards extension of the insurance coverage.

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