MAY’ 24 VOLUME 9

OIL & GAS SECTOR

NAYARA ANNOUNCES FORAY INTO ETHANOL PRODUCTION WITH INVESTMENT OF ₹600 CR
Nayara Energy Ltd, backed by Rosneft, is investing ₹600 crore to build two
ethanol plants in Andhra Pradesh and Madhya Pradesh, each capable of
producing 200 kilolitres per day. This investment aligns with the government's
2025 ethanol-blending target and will facilitate Nayara's vertical integration
strategy. The company has secured land for the plants in both states, aiming
to enhance ethanol supply reliability and support India's goal of achieving a
20% blending target by the end of fiscal year 2025-2026, according to CEO
Alessandro des Dorides.
https://www.livemint.com/companies/news/nayara-announces-foray-into-ethanol-production-with-investment-of-600-cr-11715687046794.html

INDIAN OIL COMPLETES MERCATOR INDIAN OIL SIGNS SECOND LONG-TERM

ACQUISITION LNG DEAL WITH FRANCE'S TOTALENERGIES
Indian Oil Corp Ltd (IOCL)
completed its Rs 148 crore
acquisition of Mercator
Petroleum, marking its
inaugural purchase through the
insolvency and bankruptcy
code (IBC). India's top refiner secures long-term LNG deals with
ADNOC and TotalEnergies during PM Modi's visits to
The deal, representing a 31% recovery for total admitted France and UAE, starting in 2026. ADNOC to supply 1.2
dues of Rs 482 crore, saw secured creditors receiving Rs million tpy of LNG for 14 years; TotalEnergies to supply
135 crore and operational creditors, including employees 0.8 million tpy for 10 years, marking India's first deal
and vendors, receiving Rs 5.40 crore. Additionally, IOCL with ADNOC. Indian firms invest in gas infrastructure,
will cover the process cost of Rs 8.7 crore, with complete aiming to raise gas share in energy mix to 15% by 2030,
takeover expected in the coming week pending procedural following similar moves by Asian importers like
formalities. Bangladesh, China, and Thailand.
https://economictimes.indiatimes.com/industry/energy/oil-gas/indian-oil-completes-mercator- https://www.livemint.com/companies/news/indian-oil-signs-second-long-term-lng-deal-with-
acquisition/articleshow/110198200.cms?from=mdr frances-totalenergies-11715945414620.html

RELIANCE ACQUIRES STEP-DOWN

SUBSIDIARY FOR INR 314 CR ONGC TARGETS TO INCREASE OIL & GAS
PRODUCTION BY 20% BY FY27
Reliance Industries Ltd
Oil and Natural Gas Corp plans to
announced the acquisition of
increase its cumulative production
its step-down subsidiary,
of crude oil and natural gas by 20%
Reliance Chemicals and
to 47 MMtoe, comprising 21.8 MMT
Materials Ltd (RCML),
of crude oil and 25.5 BCM of gas
engaged in petrochemical
from the current 39.45 MMtoe, over
and hydrogen manufacturing,
the next three years.
for Rs 314.48 crore.
The company aims to ramp up oil production from the
RCML, incorporated on November 2, 2022, focuses on KG-98/2 block to 20,000 barrels per day (bpd) in Q3FY25
various products including petrochemicals, vinyls, and 45,000 bpd in Q4FY25, expecting its KG block to
hydrogen, and carbon fiber. The transaction involved produce 10 mmscmd of gas by the end of FY25. ONGC's
acquiring a 100% equity stake of RCML from Reliance crude oil production in Q4FY24 increased by 2.4% to
Projects & Property Management Services Ltd, 5.359 million tonnes, while gas production decreased by
constituting a related party transaction conducted at 3%. Additionally, ONGC intends to monetize 8-10
arm's length basis, without the need for governmental or discoveries in FY25, setting a capital expenditure target
regulatory approvals. of Rs 33,000-35,000 crore against Rs 37,000 crore spent
https://economictimes.indiatimes.com/industry/renewables/reliance-acquires-step-down- in FY24.
subsidiary-for-rs-314-cr/articleshow/109955665.cms?from=mdr https://www.msn.com/en-in/news/other/ongc-targets-to-increase-oil-gas-production-by-
20-by-fy27/ar-BB1mNWpy?ocid=BingNewsSearch

4
 MAY’ 24 VOLUME 9

MAJOR POLICY INITIATIVES TO BOOST THE PETROLEUM AND HYDROCARBON SECTOR

1. Uniform Licensing System: The new Hydrocarbon Exploration
Licensing Policy (HELP) offers a single license covering all
hydrocarbons, streamlining the licensing framework.
2. Revenue Sharing Model: Contracts will now be based on biddable
revenue sharing, replacing the previous profit-sharing model,
reducing government oversight and administrative delays.
3. Open Acreage Licensing: Bidders can propose exploration of
untapped blocks, with the government calling for competitive bids
after necessary clearances, accelerating exploration.
4. Concessional Royalty Regime: Reduced or zero royalties for
deepwater and ultra-deepwater areas for the first seven years; lower
rates for shallow water areas, incentivizing exploration in high-cost
regions.
5. Market and Pricing Freedom: New gas production from challenging
areas will have freedom in pricing and marketing, promoting fair
competition and efficiency.
https://www.pmindia.gov.in/en/news_updates/major-policy-initiatives-to-give-a-boost-to-petroleum-and-hydrocarbon-sector/

ADANI'S PETROCHEMICAL PLANT INCHES BPCL TO INVEST INR 1.7 LAKH CR IN CORE,
CLOSER TO GETTING A ₹17,000-CR LIFELINE NEW ENERGY BUSINESS
FROM SBI-LED CONSORTIUM

Adani Group's petrochemical plant in Mundra is on track BPCL aims to expand its fuel retailing infrastructure by
to receive a significant boost as the State Bank of India adding approximately 4,000 petrol pumps to its existing
plans to lend approximately ₹17,000 crore, covering 60- network of over 22,000 retail stations. Over the next five
70% of its capital expenditure. years, the company plans to invest ₹1.7 lakh crore, with
This funding, led by SBI and part of a consortium, is ₹75,000 crore earmarked for refining and
crucial for Adani Petrochemicals Ltd's coal-to-polyvinyl petrochemicals, and strategic pipeline projects worth
chloride project, slated to become India's largest PVC ₹8,000 crore already identified.
manufacturing facility. Despite a temporary halt last year Furthermore, BPCL intends to increase its renewable
due to financial uncertainties following allegations, the energy portfolio to 10 GW by 2040, including the
project resumed in July, with an estimated overall capex production of 30,000 tonnes per annum of green
ranging between ₹25,000-27,000 crore. hydrogen by 2030. This ambitious strategy aligns with
https://www.livemint.com/companies/sbiled-consortium-to-lend-rs-17-000-cr-for-adanis-
petchem-foray-11714707341629.html India's energy goals and BPCL's commitment to
meeting rising fuel demand while transitioning towards
GAIL MAY INVEST UP TO RS 50,000 CRORE cleaner energy sources.
IN 1.5 MILLION TON CAPACITY ETHANE https://auto.economictimes.indiatimes.com/news/industry/bpcl-to-invest-rs-1-7-lakh-cr-
in-core-new-energy-business/110009253
CRACKING PLANT
Gail (India) plans to invest up to ₹50,000 crore in a 1.5 million tonnes annual
ethane cracking complex in Sehore, Madhya Pradesh. By 2040, the need for
petrochemicals in the US is expected to nearly triple to $1 trillion, and the
new facility will help Gail meet this demand. The new facility will nearly
quadruple Gail's current 810 KTA petrochemicals complex in Pata, near
Kanpur, UP. In March, Gail signed an MoU with Shell Energy India and ONGC
to explore importing ethane and other hydrocarbons, including examining
evacuation facilities at the Shell Energy Terminal in Hazira.
https://www.indiainfoline.com/news/companies/gail-mulls-rs-50000-crore-investment-in-petrochemical-venture