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India Aims Big in Oil World: $40 Billion Refinery Complex and $6 billion BP & Reliance investment

Will be bigger than Jamnagar one?

By that time jamnagr shall grow even bigger than this one.

Doesn't make sense. Oil is tanked. There's so much over capacity across the world and countries are cutting production. Why spend so much money on something that's going down? Why not instead invest on alternatives/nuclear energy?

Exactly. Petroleum consumption is all set to down steeply in next 8 to 10 years. What shall we do with these refineries?

Spend the money in solar power instead. Tariff has come down to 2.54 paisa. If we install solar in big way, we can bring down the cost of electricity like anything.
 
British BP&Reliance Aims to Reign Indian Energy Market With $6Billion Investment

Energy-starved India witnessed another big bang investment as British firm BP and India’s Reliance Group agreed to invest $6 billion to develop deep water gas fields over the next three years.

New Delhi(Sputnik) — The two partners aim to capture a large chunk of the oil and gas market — both upstream and downstream- in India, which consumes four million barrels a day in oil products and is expected to grow by 5-7% per annum for a decade. India today consumes over 5 billion cubic feet a day of natural gas and aspires to double gas consumption by 2022. Under the agreement, they will award contracts to progress development of the ‘R-Series' deep water gas fields in Block KGD6 off the east coast of India. The R-Series (D34) project is a dry gas development in water-depths of more than 2,000 metres, approximately 70 km offshore.

"Development of the three projects, with total investment of $6 billion, is expected to bring a total 30-35 million cubic metres of gas a day new domestic gas production onstream, phased over 2020-2022," Reliance Industries Limited (RIL) said in a statement.

Earlier, India's Minister for Petroleum & Natural Gas Dharmendra Pradhan invited BP to begin sale of petrol and diesel in retail market as it has Indian government's approval of selling through 3,500 fuel retail stations. But BP has decided to go with Reliance in retail market as well.

"The two companies will jointly explore options to develop differentiated fuels, mobility and advanced low carbon energy businesses in India, as India transitions to a low carbon world. The companies expect to collaborate, in addition to the conventional transportation and aviation fuels retailing, on unconventional mobility solutions, addressing electrification, digitization and disruptive mobility trends," RIL & BP announced jointly.

"This strategic partnership not only strengthens the relationship between two global energy leaders, but is also in line with and supports the forward-looking policies and vision of the Government of India," RIL Chairman Mukesh Ambani said.

In 2011, BP took a 30% stake in multiple oil and gas blocks in India operated by RIL, including the producing Block KGD6 in a $7.2-billion deal. Since formation of this partnership in 2011, the two companies have invested over $1.6 billion in deepwater exploration and production in the period to May 2017.
 
$40 b on oil industry is not a good one. $40 b should have been invested into renewable and solar energy.
 
The investment is to meet the growing demand of upcoming economies. These companies have to invest not only new avenues, but also have to invest to keep satisfying the demands of there current core business. I am sure the investors of $40bn must have had some of the best brains of the industry working for them, unlike many keyboard warriors from PDF.
 
If all the four wheeler on the road be converted to Electric ones as per Govt. vision, then would be this a bad investment?
 
Russian Oil Giant Rosneft Plans Big Investment in Indian Retail Market
With India on the verge of seeing the world’s biggest oil companies set up fuel stations on its soil, India’s Minister for Petroleum and Natural Gas Dharmendra Pradhan said Russian oil giant Rosneft has planned to tap the retail fuel market in India.
New Delhi (Sputnik) – Last week, BP and India's Reliance Industries signed a $6 billion agreement to develop new gas fields and expanding business activities in India including selling gasoline and diesel via fuel stations across the country.

“Rosneft, the Russian oil major, who recently took over Essar Oil [Indian oil company], is planning in a big way to tap retail fuel market in India,” Pradhan said. His statement comes a few days after the country launched dynamic pricing i.e. daily price revision for gasoline and diesel.

Rosneft and Essar invested $13 billion in the Indian market in the last fiscal. “This was one of the biggest deals in the oil industry in the world,” Pradhan added. Rosneft is likely to enter the Indian retail market with 2,000 retail outlets owned by Essar.

The entry of a company like Rosneft will change the purchasing behavior and dynamics of India's retail sector, according to energy expert Narendra Taneja.

"Consumers will gain the most of these developments as new companies will bring new practices with highly efficient products into the retail sector," said Taneja.

Daily changes in prices will also provide a good deal to Rosneft as well as India’s pricing formula gives higher profit to retailers. India, one of the world’s fastest growing economies, consumes four million barrels a day in oil products and, according to an estimate by the International Energy Agency, oil consumption is expected to reach 10 million barrels per day by 2040. Last year, Indians purchased more than 24 million new vehicles. Looking at the current GDP growth rate, increased purchasing power may boost the sale of vehicles in the future.
 

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