Cairn Oil & Gas seeks bids for gas from Rajasthan block
The output is being ramped-up to greater than 5 mmscmd.
“The company invites Expression of Interest (EoI) from interested parties with proven capabilities and demonstrated presence in the natural gas business to participate in the national competitive e-auction process for the purchase of natural gas produced from our flagship block in Barmer, Rajasthan,” it mentioned.
It invited bids for 4.5 mmscmd of gas for two years from the RJ-ON-90/1 block.
The worth of gas will likely be decrease of the earlier month’s common of DES West India spot liquefied pure gas (LNG) costs or 14 per cent of the typical Brent crude oil worth.
Platts West India Marker (WIM) is the LNG worth evaluation for spot bodily cargoes of delivered ex-ship (DES) into ports in India and the Middle East area. The price presently is USD 6.2 per million British thermal unit.
Brent crude oil worth is over USD 63 and on the present price, the gas worth would come to USD 8.8 per mmBtu.
“The sales gas price for any month shall not be lower than the government of India declared gas price,” the discover mentioned.
The authorities each six months pronounces a worth for the gas produced by state-owned gas produces ONGC and Oil India Ltd. That price presently is USD 1.79 per mmBtu for the interval as much as March 31, 2021.
The gas gross sales worth of Platts LNG WIM for any month or common Brent worth will likely be unique of all relevant taxes, duties, transportation tariffs and advertising and marketing margin which can be payable by the client, the corporate mentioned.
This is the primary time a producer is in search of bids linked to the imported worth of LNG from the spot or present market. All earlier worth discoveries for gas produced throughout the nation have both been linked to crude oil or to a gas marker.
Reliance Industries and its accomplice BP Plc of UK earlier this month offered 7.5 mmscmd of gas from their KG-D6 block off the east coast, at a worth linked to JKM or Japan/Korea LNG import worth. The worth bid got here to JKM minus 0.18.
They had offered the primary 5 mmscmd of gas from the brand new discoveries within the block in November 0219 on the worth linked to Brent worth.
Essar Steel, Adani Group and state-owned GAIL had purchased the vast majority of the preliminary 5 mmscmd of gas deliberate to be produced from R-Series within the KG-D6 block by bidding between 8.5 and eight.6 per cent of dated Brent worth.
Reliance had in 2017 offered coal gas from its Sohagpur CBM block in Madhya Pradesh at a benchmarked price at 12.67 per cent of JCC, or Japan Customs-Cleared Crude, plus a set element.
Cairn Oil & Gas produced 132,174 barrels of oil and oil equal gas from the Rajasthan block within the October-December quarter, the corporate had mentioned final month. This was 9 per cent decrease than the output within the earlier 12 months.
Raageshwari – the gas area within the Barmer block – averaged 130.0 million commonplace cubic ft per day (mmscfd) in Q3 FY21, with gas gross sales put up captive consumption at 105.0 mmscfd, it had mentioned.
