Global crude oil price of Indian Basket was US$ 55.93 per bbl on 10.03.2015

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 55.93 per barrel (bbl) on 10.03.2015. This was lower than the price of US$ 57.40 per bbl on previous publishing day of 09.03.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3506.81 per bbl on 10.03.2015 as compared to Rs 3594.39 per bbl on 09.03.2015. Rupee closed weaker at Rs 62.70 per US$ on 10.03.2015 as against Rs 62.62 per US$ on 09.03.2015.

The table below gives details in this regard:

Daily Crude oil price- 11.03.2015

******************

Guidelines to Oil PSUs on Advertisements

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the year-wise amount spent on advertisements by oil PSUs during the last three years and the current year is given below:

(Rs. in crore)

* Excludes loyalty card expenses

Government has not issued any guidelines in this regard.

Oil PSUs choose the medium for advertising on the basis of their communication objective, their target audience, availability of budget etc.

***********

Impact of Fall in Crude Oil Prices on Subsidy

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the total subsidy incurred on the sale of regulated petroleum products i.e., Diesel (up to 18.10.2014), PDS Kerosene and Subsidized Domestic LPG during Financial Year 2013-14 and Financial Year 2014-15 (estimated) is Rs. 1,46,339 crore and Rs. 72,415 crore respectively.

In order to reduce the subsidy burden on the petroleum products, the Government has made the price of Diesel market determined effective 19th October 2014.

**************

Share of Domestic Production in Total Petroleum Products Required

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that against the consumption of petroleum products of 158.4 Million Metric Tonne(MMT) during 2013-14, there was production of 220.20 MMT. Therefore, the country is surplus in production of petroleum products. On the other hand share of net production of Natural Gas to consumption in the country is 66.70%.

During last three years refining capacity for production of petroleum products have been enhanced by 27.7 Million Metric Tonne Per Annum (MMTPA). It is projected that refining capacity of the country will reach upto 307.366 MMTPA by 2016-17.

In order to increase the domestic share of crude oil and natural gas, the Government has adopted following multi-pronged approach:

Enhance production from the existing field by adopting Improved Oil Recovery (IOR)/Enhanced Oil Recovery (EOR) measures using latest technology.

Bring into production new discoveries at the earliest. For this a policy framework for early monetization of hydrocarbon discoveries under PSC regime has been approved by the Government. This policy has addressed rigidities in the timelines of the PSC and has allowed the contractors to start production at the earliest.

Facilitate enhanced exploration activities through following measures:

(i) Appraisal of about 1.5 million sq km un-appraised area of the Indian Sedimentary Basins.

(ii) Re-assessment of Hydrocarbon Resources.

(iii) Setting up of National Data Repository.

(iv) Policy approved for exploration and exploitation of Shale Gas/Shale Oil resources by National Oil Companies under the nomination regime.

(v) Policy approved for exploration in the Mining Lease (ML) areas after the expiry of the exploration period.

(vi) Policy approved for Non-exclusive Multi-client Speculative Survey for assessment of unexplored sedimentary basins.

Revision of prices of domestic natural gas which is expected to incentivize production of natural gas in the country.

*****************

Losses Suffered by OMCs

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the details of under recoveries incurred by the Public Sector Oil Marketing Companies (OMCs) during the last three years and the current year and the cash assistance provided by the Government is given in Annexure.

Annexure

Details of under-recovery incurred by the OMCs on sale of regulated petroleum products

and cash assistance provided by the Government during the last three years and current year

(Rs. in crore)

*********

Setting Up of Speciality Petrochemical Plants by Oil Psus

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Oil Public Sector Undertakings(PSUs) have set up/proposed to set up petrochemical projects in the existing/new refineries as per details given under:-

Indian Oil Corporation Ltd. (IOCL)

(i) Set up Linear Alkyl Benzene (LAB) unit at Gujarat Refinery.

(ii) Set up Paraxylene (PX) unit and Purified Terephthalic Acid (PTA) at Panipat Refinery.

(iii) Set up Naphtha Cracker complex along with downstream polymer units in Panipat Refinery.

(iv) Setting up a new Polypropylene (PP) unit at Paradip Refinery.

Bharat Petroleum Corporation Ltd. (BPCL)

(i) Setting up of Petrochemical Complex as part of Integrated Refinery Expansion Project in its Kochi Refinery.

Hindustan Petroleum Corporation Ltd. (HPCL)

(i) Evaluating the feasibility to set up a Refinery-cum-Petrochemical Project in Andhra Pradesh.

(ii) Refinery-cum-Petrochemical Project in collaboration with Government of Rajasthan at Barmer in the State of Rajasthan approved.

Mangalore Refinery and Petrochemical Limited(MRPL)

(i) Setting up of Polypropylene Plant at the exiting refinery at Mangalore.

In addition, ONGC and GAIL are also setting up the following independent petrochemical plants:-

(i) A Petrochemical Plant by ONGC Petro Additions Limited (OPAL) for production of Polyethylene and Polypropylene at Dahej, Gujarat.

(ii) A Petrochemical Plant by ONGC Mangalore Petrochemicals Limited (OMPL) to produce Paraxylene and Benzene at Mangalore.

(iii) A Petrochemical Plant at Pata near Kanpur by Gail(India) Limited to produce Polyethylene.

(iv) A Petrochemical project by Gail (India) Limited through Joint Venture route viz. Brahmaputra Cracker & Polymer Limited (BCPL) in Assam to produce Polyethylene & Polypropylene.

******

Next Round of Bidding for Oil and Gas Blocks

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Directorate General of Hydrocarbons (DGH) has identified 52 exploration blocks for which in-principle necessary clearances have been obtained from all concerned Ministries/Departments, for offer under next round of bidding. A final decision on the regime under which new blocks would be awarded has not been taken by the Government.

***********