New Delhi, May 16 (EPC News): The state owned ONGC’s foreign arm ONGC Videsh Ltd, has opted to abandon its second block in the Vietnam coast in the South China Sea due to logistic constraints.

"Considering previous experience and perceived risk-reward analysis, block 128 was found to be techno-commercially not viable and the Board of OVL has decided to relinquish the said block," Minister of State for Petroleum and Natural Gas R P N Singh said in a written reply to a question in Rajya Sabha.

"A well was drilled in Block 127 in 2009 and no hydro- carbon was found. After fulfillment of (contractual obligations), the Block was relinquished," Minister of State for Petroleum and Natural Gas R P N Singh said in a written reply to a question in Rajya Sabha.

"Efforts to drill a well in Block 128 was not successful due to severe logistic constraints in anchoring the rig on a hard sea bottom at the proposed drilling location, he added.

China had raised concerns on India's oil and gas exploration projects in the South China Sea off the coast of Vietnam. However, sovereignty over areas of the South China Sea is disputed between many countries in the region. India is not a party to this dispute," Singh expressed.

OVL continues to own 45% in Vietnam's offshore block 6.1. "OVL's share of production in fiscal 2011-12 was 2.023 billion cubic metres of gas and 0.036 million tons of condensate.

EPC News Bureau

Baghdad, May 14 (EPC News): Iraq, eyeing to double its oil output by 2015, may soon overtake Iran as the second largest oil producer by this year end, reports the Organization of Petroleum Exporting Countries (OPEC). 

As per the market report, Iraq produced 3.03 million barrels/day in April, marking a rise of 7.7% from its March production. Whereas, the Iranian production potential fell to 3.2 million barrels/day. Export shipments from Iraq surpassed those of Iran during the first quarter of the year, declared OPEC through its Performance Report. 

“Support from major foreign investors like Exxon Mobile Corporation and BP Plc has helped Iraq to develop new fields and rework on the older deposits. With all the investment coming in, with people developing new areas or trying to expand output at existing fields, it was a foregone conclusion that production would rise,” said ,” Harry Tchilinguirian, Head, Commodity-Markets Strategy at BNP Paribas. 

Outlining the country’s future targets, Asim Jihad, a spokesperson from the Iraq Oil Ministry said, “The country estimates to attain a production of 3.4 million/day this year and more than 4 million barrels in 2013. Exports will increase to 2.9 million barrels in 2013 from a current level of 2.5 million barrels, al-Luaibi.”

EPC News Bureau

Mumbai, May 09 (EPC News): Hindustan Petroleum Corporation Ltd (HPCL) may enter into a crude oil import agreement with the state-run oil company of Azerbaijan Republic (SOCAR). “The Azerbaijani company has come forward to supply crude and the proposal will be taken up with the HPCL Board,” said K Murali, Director Refineries, Hindustan Petroleum Corporation Ltd. 

HPCL’s plan to import crude oil from the CIS nation indicates the company’s decision to diversify its sources, by reducing its dependency from a particular region. 

Another state run major, Indian Oil Corporation, also imports crude oil from Azerbaijan. “Imports from Azerbaijan are in the range of 20,000 barrels a day,” informed an official from IOCL. 

EPC News Bureau

Norway, May 04 (EPC News): Total E&P has awarded NOK 470 million contract to Aker Solutions for supply of seven new subsea tree systems to the Dalia field located offshore Angola.  

Aker’s scope of work includes seven production subsea trees, seven wellhead systems and seven well jumper systems, and may include some contract options which will be delivered in 2013 and 2014..

While management and engineering of the subsea tree systems will be undertaken Aker Solutions' manufacturing centre in Tranby, Norway; procurement, manufacturing and assembly will take place in Port Klang, Malaysia, and Aberdeen, UK. 

EPC News Bureau

Mumbai, May 4 (EPC News): Kvaerner ASA announced that it will execute the engineering, procurement and construction (EPC) contract for the topside for the Edvard Grieg platform by using Aker Solutions as its sub-contractor.

According to the company, Aker Solutions will deliver design engineering and procurement services from the company's offices in Oslo, Norway and Mumbai, India, with support from Kvaerner.

"The combined strength of Kvaerner and Aker Solutions for a field development task like this on the Norwegian continental shelf is second to none. We will combine four decades of engineering, execution and fabrication experience to deliver this project," says Valborg Lundegaard, head of engineering in Aker Solutions.

The Edvard Grieg field is an oil field located in the North Sea. First production is expected in late 2015, with a forecast gross peak production of approximately 90,000 barrels of oil per day (bopd).

EPC News Bureau

Vishakapatnam, May, 03 (EPC News): Hindustan Petroleum Corp Ltd (HPCL) has postponed the maintenance works at its 60,000 barrels per day crude unit and 166,000 bpd fluid catalytic cracker in Vizag, Andhra Pradesh by six weeks.

The company had earlier proposed to shut the units from April to May for 45 days. The same has has been postponed to May-June, according to sources.

However, the exact dates of the maintenance period have not been fixed.

EPC News Bureau

Mumbai, May 03 (EPC News): Shiv-Vani Oil & Gas Exploration Services Ltd has bagged two years offshore drilling contract from Gulf of Suez Petroleum Company (GUPCO) in the Gulf of Suez.  

The drilling contract is extendable by one year. To execute the contract, Shiv-Vani has acquired Ocean Heritage, a jack up offshore drilling rig from Diamond Offshore Heritage LLC. 

The jack up rig has been acquired through the company’s 100% wholly owned subsidiary based in Singapore, will be deployed with GUPCO. Ocean Heritage has an outfitted maximum water depth capability of 300 ft and drilling depth capability of 20,000 ft. 

EPC News Bureau

Hyderabad, May 03 (EPC News): The Hyderabad-based Nagarjuna Oil Corporation (NOC) announced that the Rs12,000-crore expansion work of its oil refinery in Cuddalore, Tamil Nadu will commence in 2014. 

In the first phase, the total investment will be over Rs9,660 crore. And according to the officials, the expansion work will be completed in 2016. 

According to government sources, the government is planning to bring in investments of over Rs13,354 crore in infrastructure such as roads and utilities to support industrial development in this sector. This is expected to catalyse industrial investments of over Rs92,160 crore over the next ten years and generate 7.5 lakh jobs. 

The refinery project is a joint venture between the Hyderabad-based Nagarjuna Group and the Tamil Nadu Industrial Development Corporation Ltd, a State-run, industry promotion agency. 

EPC News Bureau