Coal India Ltd (CIL), the world’s largest coal-producing company, raised the prices of its high-grade (G2 to G10) non-coking coal by 8% for the first time since 2018. With effect from May 31, the revised coal prices will be applicable for all its subsidiaries as well. “The Board has approved the price increase of 8 per cent over the existing notified prices for high-grade coal of grade G2 to G10. This will be applicable to all subsidiaries of CIL, including NEC for regulated and non-regulated sectors”, CIL said in a regulatory filing. The state-owned company is expecting to earn an incremental revenue of Rs 2703 crore for the balance period of FY2023-24. Shares of CIL slipped 2% in early trade on May 31 after the announcement.
Govt proposes to sell 3% stake in Coal India worth around ₹4,400 crore
In a regulatory filing on May 31, Coal India Ltd (CIL) announced that the Indian government is proposing to sell up to a 3% stake in CIL at a floor price of 225 rupees per share. The Offer for Sale (OFS) which was open for retail and non-retail investors on June 1 and 2, aimed to offload 9.24 crore shares representing a stake of 1.5 per cent in the company. At the closing price of ₹241.20 apiece on BSE on May 31, the sale of a 3% stake in Coal India would be worth around ₹4,400 crore.
India’s imports of Russian crude oil hit a new record: Data
India’s imports of Russian crude oil in May hit an all-time high as buyers stepped up to profit from discounted supplies. According to data from energy cargo tracker Vortexa, India took in 1.96 million barrels per day (bpd) of crude from Russia, accounting for almost 42% of the country’s total oil imports during May. India imported more oil from Russia (higher than the 1.74 million bpd) than it did from Iraq, Saudi Arabia, the UAE, and the U.S. combined. An Indian agency has stepped in to provide safety certification for most of Gatik Ship Management’s fleet, a major player in Russian oil transport.
Shale producers can now double crude output with this new technology
U.S. shale producers have been struggling to ramp up production in 2023 but oil major ExxonMobil believes that producers can manage to double crude output from their existing wells with the novel fracking technology. As per a report, Exxon Chief Executive Officer Darren Woods says, “Fracking’s been around for a really long time, but the science of fracking is not well understood.” The oil giant is currently working on two specific areas to improve fracking: 1) to frack more precisely along the well so that more oil-soaked rock gets drained, and 2) ways to keep the fracked cracks open longer so as to boost the flow of oil.
TotalEnergies renews production license for deep offshore block in Nigeria
Global oil and gas major TotalEnergies, operator of OML130 in Nigeria, has renewed its production license for deep offshore block with an additional 20 years. The OML130 block contains Akpo and Egina fields, which came into production in 2009 and 2018 respectively. The renewal is believed to enable the firm to improve its contribution towards the development of the West African country’s hydrocarbon resources for energy security.
In related news, the company has announced a new oil and gas discovery off the Nigerian coast.
QatarEnergy signs 15-year LNG supply deal with PetroBangla
QatarEnergy’s LNG trading arm, QatarEnergy Trading has signed a 15-year supply deal for liquefied natural gas (LNG) with Bangladesh’s state-owned PetroBangla for 1.8 million tonnes per annum (MTPA) starting in 2026. It currently delivers more than 3.5 million tons per annum of LNG to Bangladesh. The expansion will raise Qatar’s liquefaction capacity to 126 million tonnes per year by 2027, from 77 million at present.
Saudi Arabia to make deep cuts to oil outputs in July
OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, was in discussion to consider oil production cuts. Saudi Arabia has said that it will make a deep cut to its output in July by one million barrels per day (bpd), in addition to a broader OPEC+ deal to limit supply to the end of 2024. The production cuts will be made in July to support the depleting cost of crude after two earlier production cuts by members failed to push prices higher. OPEC+ already had in place oil output cuts of 3.66 million barrels per day, amounting to 3.6% of global demand.
Turkmenistan accepts US help to clean up methane leaks
The revelations of huge methane emissions from Turkmenistan’s oil and gas infrastructure and the international indignation that has followed has persuaded the country to ascent to international assistance to modernise and clean up its ageing energy infrastructure. After a conversation with American climate envoy, John Kerry, Ashgabat now seems set to join the Global Methane Pledge, with reports suggesting that bilateral funding from the US is on the table. The development came less than a week after the creation of Turkmenistan’s Intersectoral Commission for the Reduction of Methane Emissions and a deal is expected to be wrapped up before COP28.