India’s leading oil and fuel producer ONGC is in search of a least price tag of USD 3.5-four for the organic fuel it options to make from coal seams in Jharkhand and a field in Tripura.
Oil and Pure Gas Corporation (ONGC) has issued individual tenders in search of purchasers of .02 million conventional cubic meters per working day of coal-mattress methane (CBM) it options to make from the North Karanpura CBM block in Jharkhand and .1 mmscmd from Khubal field in Tripura.
For the CBM fuel, it asked purchasers to quote a proportion equivalent to or greater than 8 per cent of Dated Brent Rate, according to the tender doc.
“Floor price tag shall be the greater of the USD four per million British thermal unit or Domestic Gas Rate notified by (government’s) PPAC for the period of time,” it stated.
The PPAC notified price tag for the six months commencing Oct 1 for fuel from fields given to ONGC and Oil India Ltd on a nomination foundation is USD two.nine per mmBtu.
ONGC has been complaining that the government-notified fuel price tag is way beneath price tag and the enterprise incurs a decline of output and sale of organic fuel from most of its fields. It claims its price tag of output ranges from USD four.5 to USD nine per mmBtu for fuel from unique resources/fields.
For fuel from Khubal field, it sought a mark-up over the domestic fuel price tag +(additionally) USD .5 per mmBtu. The floor or least price tag was established at USD 3.5 per mmBtu, according to the tender.
Earlier this yr in April, ONGC experienced sought bids for the sale of an original two mmscmd of fuel from its KG basin fields.
It experienced sought bids indexed to Brent crude oil for the fuel from the KG-DWN-98/two or KG-D5 block, which sits web to Reliance Industries Ltd (RIL)-BP Plc-operated KG-D6 fields in the Bay of Bengal.
Bids were sought at a least of ten.5 per cent of the a few-thirty day period regular Brent crude oil price tag. At Brent crude oil price tag of USD 70, the least price tag arrived to USD 7.35 per mmBtu.
The tender was however scrapped as shopper individuals went to courtroom towards the bidding course of action.
In the hottest tender, ONGC has pointed out a 3 to 5-yr sale tenure for CBM fuel, with supplies commencing with rapid effect.
ONGC owns fifty five per cent in the North Karanpura CBM block in the Ranchi district of Jharkhand. Indian Oil Corporation (IOC) holds twenty per cent and Prabha Energy Pvt Ltd the remaining 25 per cent.
For Khubal field, the fuel supplies are to begin from April 2024 and bids have been sought for 3 to 5 many years tenure.
Even though ONGC is in search of a price tag benchmarked to Brent crude oil, RIL-BP sold about 13 mmscmd of new fuel from KG-D6 at a price tag joined to Platts JKM (Japan Korea marker) – the liquefied organic fuel (LNG) benchmark price tag evaluation for place bodily cargoes.
That tender of RIL-BP mandated the lowest bid at JKM minus USD .3 per mmBtu. The highest acceptable bid was JKM additionally USD two.01 per mmBtu.