Natural Gas : June , 2013 :

Natural Gas : June , 2013 :

NATURAL GAS:

INFORMATION AND UPDATES

After a successful inaugural issue of Natural Gas: Information and Updates, Alaya Legal is back with its second issue covering all the legal and market developments around the globe from the world of Natural Gas. In our earlier issue we had discussed about various countries across the globe which have been grouped into categories depending on the quantum of proven ‘natural gas’ reserves present in such countries. This issue covers developments in ‘high concentration’ areas and major developments in all other areas. Developments in the Republic of India are covered separately.
High Concentration Areas are Australia, Mexico, Venezuela, Columbia, Brazil, Argentina,
Bolivia, Trinidad and Tobago, Kazakhstan, Uzbekistan, Turkmenistan, China, Bangladesh, India, Pakistan, Brunei, Indonesia, Malaysia, Myanmar, East Timor, Thailand, Azerbaijan, Oman, Saudi Arabia, Algeria, Libya, Egypt, Nigeria, Romania, Ukraine, United Kingdoms, Italy, Germany, Netherlands

GLOBAL SCENARIO

Statistics

Saudi Arabia: Saudi Arabia had proven natural gas reserves of 288 trillion cubic feet (Tcf) at the end of 2012, fifth largest in the world behind Russia, Iran, Qatar, and the United States, according to U.S. Energy Information Administration (EIA) estimates. About 5 Tcf was added in 2012, and over the last decade, Saudi Arabia added over 60 Tcf of natural gas reserves. About 57 percent of Saudi Arabia’s proven natural gas reserves consists of associated gas at the giant onshore Ghawar field and the offshore Safaniya and Zuluf fields.

Venezuela: Venezuela has the second-largest natural gas
reserves in the western hemisphere. According to the Oil and Gas Journal (OGJ), Venezuela had 195 Tcf of proven natural gas reserves in 2012, the second largest in the western hemisphere behind the United States. In 2011, the country produced 1.1 Tcf of dry natural gas, while consuming nearly 1.2 Tcf.

Nigeria: Nigeria had an estimated 180 Tcf of proven natural gas reserves as of the end of 2011, according to the OGJ, making Nigeria the ninth largest natural gas reserve holder in the world and the largest in Africa. Despite holding a top 10 position for proven natural gas reserves, Nigeria produced about 1 Tcf of dry natural gas in 2011 and
ranked as the world’s 25th largest natural gas producer.

Algeria: Algeria produced 2.9 Tcf of dry natural gas in 2011. Production has steadily declined since 2005 as the country’s large and mature fields are depleting. According to OGJ, as of January 2013, Algeria had 159.1 Tcf of proven natural gas reserves, the ninth largest natural gas reserves in the world and the second largest in Africa after Nigeria. Algeria’s largest natural gas field, Hassi R’Mel, was discovered in 1956. Algeria also holds vast untapped shale gas resources. According to an EIA-sponsored study released in April 2011, Algeria has 231 Tcf of technically recoverable shale gas resources. The Ghadames Basin, located in eastern Algeria, southern Tunisia, and northwestern Libya, was identified as a major shale gas basin in the assessment.

Australia: According to OGJ, Australia had 110 Tcf of proven natural gas reserves as of January 2011, making Australia the twelfth largest holder of conventional natural gas reserves in the world. Australia also had 396 Tcf of technically recoverable shale gas reserves in 2009, according to an EIA study.
Iraq: Iraq was the fourth largest natural gas flaring country in the world in 2010. Iraq is taking steps to reduce flaring and to use its natural gas resources in power generation and for re-injection to increase oil recovery. Iraq’s proven natural gas reserves as of January 1, 2013 were the 12th largest in the world at 112 Tcf, according to the OGJ. Over 60 percent of these reserves lie in the south of Iraq. Three-fourths of Iraq’s natural gas resources are associated with oil.

China:
According to OGJ, China held 107 Tcf of proven natural gas reserves as of January 2012, 27 Tcf higher than reserves estimated in 2009 and the second largest in the Asia-Pacific region. China’s natural gas production and demand have risen substantially in the past decade. In 2011, China produced 3.6 Tcf of natural

gas, up around 9 percent from 2010, while the country consumed 4.6 Tcf. China’s gas production more than tripled over the last decade. China became a net natural gas importer for the first time in almost two decades in 2007, and imports have increased dramatically in the past few years alongside China’s thirst for natural gas and rapidly developing infrastructure.

Indonesia: According to OGJ, Indonesia had 141 Tcf of proven natural gas reserves as of January 2012, making it the 14th largest holder of proven natural gas reserves in the world, and the third largest in the Asia-Pacific region. The country continues to be a major exporter of pipeline and LNG.

Kazakhstan: Most of Kazakhstan’s natural gas reserves comprise associated gas and are located in just four fields: Karachaganak, Tengiz, Imashevskoye, and Kashagan. In January 2012, OGJ estimated Kazakhstan’s proven natural gas reserves at 85 Tcf. Natural gas production in Kazakhstan is almost entirely associated gas.

Malaysia: Malaysia was the world’s third largest exporter of liquefied natural gas after Qatar and Indonesia in 2010. According to the OGJ, Malaysia held 83 Tcf of proven natural gas reserves as of January 2011, and was the fourth largest natural gas
reserves holder in the Asia-Pacific region. Most of the country’s natural gas reserves are in its eastern areas, predominantly offshore Sarawak.

Libya: Libyan natural gas production and exports increased considerably after 2003, with the development of offshore fields and opening of the Green stream pipeline to Europe, but were temporarily disrupted by the civil unrest of 2011. As of January 1, 2012, OGJ estimated that Libya’s proven natural gas reserves were 52.8 Tcf, a decline of almost 2 Tcf from the levels of a year before.

UAE: Rapid growth in domestic energy demand over the past few years has caused the UAE to become a net importer of natural gas. Beyond its vast oil reserves, the UAE has 215 (Tcf) of proved natural gas reserves, ranking it seventh in the world, according to Cedigaz. The UAE is a more prolific oil producer, but it was the 11th-largest producer of natural gas in the world in 2011 (2.91 Tcf).

Uzbekistan: Uzbekistan contains substantial natural gas reserves but is currently constrained by the lack of available foreign investment and natural gas export pipeline infrastructure. Uzbekistan also serves as a transit country for gas from Turkmenistan to Russia and

China. According to OGJ, Uzbekistan holds an estimated 65 Tcf of proven natural gas reserves as of 2012, ranking it the fourth highest in the Eurasia region and nineteenth in the world.

Kuwait: Kuwait has recently become a net importer of natural gas, leading the country to focus more on natural gas exploration and development for domestic
consumption. According to OGJ, as of January 2011, Kuwait had an estimated 63 Tcf of proven natural gas reserves. Kuwait’s reserves are not significant and this has spurred an extensive drive in natural gas exploration.

Egypt: According to OGJ estimates from January 2012, Egypt’s proven gas reserves registered at 77 Tcf, an increase from 2010 estimates
of 58.5 Tcf and the third highest in Africa, after Nigeria and Algeria. New discoveries offshore the Nile Delta and some finds in the Western Desert have led to the increase in proven reserves. Over 80 percent of Egypt’s natural gas reserves and 70 percent of its production is located in the Mediterranean and Nile Delta.

Market Update

Kulczyk Oil Ventures has declared the discovery of Natural Gas in K-7:
February 1, 2013: Natural gas has been discovered by Kulczyk Oil Ventures in the Krutogorovskoye-7(K-7) exploration well in Ukraine. The exploration well was drilled till 3,206 meters in November 2012, while the drilling was started in same year in September.

Queensland Favours Oil Shale Policy:
February 13, 2013: Queensland which is enriched with most of the oil shale resources of Australia came with its new oil shale policy putting tough environmental mechanism on industries. The authority allowed QER Limited, an oil shale operator to develop its trial plant at Gladstone.
The new oil shale policy would identify the tactical significance of oil shale to
contribute to energy security, and boost private sector investment in oil shale extracting technologies.

Construction of IRAN- PAKISTAN Pipeline Coming to Finish Line:

February 27, 2013: Construction of the Iran-Pakistan gas pipeline, which expands for 780 kilometers and costs $1.2-1.5 billion, is estimated to take 22 months. The pipeline is also known as the peace pipeline. The pipeline would facilitate e export of 21.5 million cubic meters of Iran’s natural gas to Pakistan on an everyday basis.
Iran Announced Discovery of $400bn worth of Hydrocarbons Last Year:
February 28, 2013: Iran announced that the Country has discovered hydrocarbon reserves worth more than $400 billion in the first 11 months of the current Iranian

calendar year starting from March 20, 2012. Iranian Central Oil Fields Company (ICOFC), a chief gas production company in the country, has the ability to produce 325 million cubic meters of gas and 200,000 barrels of oil on daily basis.
Beach Energy Drifts Gas from Halifax-1 Well:
February 28, 2013: Beach Energy, an operator with 60% stake at ATP 855 has started flowing gas from its Halifax-1 unconventional well, located in ATP 855 in Queensland, at the rate of 3.2 MMscfd. The well had touched a depth of 4,267 metres, after which a 14 stage fracture stimulation program was completed. Seven stages were completed in the deeper Patchawarra Formation, one in the Murteree Shale, two in the Epsilon Formation, two in the Roseneath Shale, one in the Daralingie Formation and one in the Toolachee Formation.

China National Petroleum Corp launches Two Shale Gas Fields:
March 16, 2013: Two shale gas fields with 23 wells, one at Changning-Weiyuan, Sichuan province and other at Zhaotong, Yunnan province was launched by China National Petroleum Corporation.

Titan Energy to Drill Perth Basin Well:
March 20, 2013: Titan Energy is expected to drill its Warradarge-1 exploration well to a total depth of 1,500 metres in the north Perth Basin which is expecting proven Cadda Formation and Cattamarra Coal.
Iran Plans to Rise Gas Storage Capacity:
March, 2013: Iran plans to upsurge its gas storage capacity by installing its second natural gas storage facility in Kashan.

The Israel Electric Corporation (IEC) annulled its natural gas purchase agreement with East Mediterranean Gas Company (EMG):

March 27, 2013: The Israel Electric Corporation (IEC) annulled its natural gas purchase agreement with East Mediterranean Gas Company (EMG) in February. The company is presently involved in an international arbitration against EMG and the Egyptian
Government gas companies, demanding compensation for the substantial damages sustained by the Company and subsequent damages from the continued violations.
Oman has entered into a deal with PetroTel for exploration of oil and natural gas:
March 27, 2013: Oman has entered into an agreement with PetroTel and thereby the under the company will explore for oil and natural gas in Blocks 39 & 67 which occupy 13,379 sq km in Dhofar Governorate.

US May Permits Shale Gas Exports to Japan:
March 28, 2013: The United States may approve shale gas exports to Japan. America’s Energy Department will give restrictive approval and then further examine Japanese companies and their shale gas export projects.

Iraq’s Basra Gas Company (BGC), a joint venture between South Gas Co., Royal Dutch Shell and Japan’s Mitsubishi, is processing around 400 million cubic feet per day (mcfd) of gas:

March 28, 2013: Iraq’s Basra Gas Company (BGC), a joint venture between South Gas Co., Royal Dutch Shell and Japan’s Mitsubishi, is processing around 400 million cubic feet per day (mcfd) of gas.

Chevron Corporation’s Australian subsidiaries have

entered in a long term sale and purchase agreement with Chubu Electric Power Company for liquefied natural gas from the Wheatstone Project in Western Australia:
March 28, 2013: Chevron Corporation’s Australian subsidiaries have entered into a long term sale and purchase agreement with Chubu Electric Power Company for liquefied natural gas from the Wheatstone Project in Western Australia. Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company, will supply Chubu with 1 million tons per annum of LNG for up to 20 years.

Drillsearch Energy has started a three well exploration drilling program in Western Cooper Wet Gas Project in PEL 106A:
March 28, 2013: Australia based Drillsearch Energy has initiated a three well exploration drilling program in conventional wet gas wells in Western Cooper Wet Gas Project in PEL 106A.

Tokyo Gas shown interest in US Shale Deal:

March 29, 2013: The Japanese company, Tokyo Gas has entered into a transaction to buy Quicksilver Resources’ in joint venture in US Barnett basin, Texas. The company will purchase 25% working interests of the business for $485 million through TG Barnett Resource, a wholly‐owned subsidiary of Tokyo Gas America Ltd.

Lack of Investment Impeding Iranian Gas Sector:

March 29, 2013: Despite having the world’s second largest reserves, Iran’s natural gas sector is underdeveloped and used mostly to meet domestic demand mainly due to lack of technology and foreign investment . A report published by EIA said, “In contrast to the decreasing oil production, natural gas development has been slowly expanding. Nonetheless, natural gas production has been lower than expected as a result of a lack of foreign investment and technology.”

Galkynysh Gas Field to begins Production by July, 2013:

April 1, 2013: Turkmenistan will probably start production at the Galkynysh natural gas field by July 2013. Country further plans to build two pipelines to transport gas from the field, one to Pakistan and India and the other crossing the Caspian Sea en route to the European Union.

Iran to Export 40 mcm of Gas to Iraq:

April 1, 2013: Iran will supply 40 million cubic meters (mcm) of natural gas to Iraq by this year. The two countries have reached an agreement based on which Iran’s natural gas will be delivered to the neighbouring Iraq via two separate routes.
Construction of the pipeline between Iran, Iraq and Syria has been initiated since 2012.

Armour Signs Deal With Halliburton for 2013 Drilling Program :

April 4, 2013: Armour Energy has signed a contract with Halliburton Energy Services for export of hydraulic stimulation services for the planned 2013 exploration and appraisal program in the company’s wholly owned ATP 1087 tenement in North Queensland, Australia.
Osaka Gas to Invest in Mozambique’s Gas Riches:
April 5, 2013: Japan’s Osaka Gas may make upstream investment in offshore Mozambique. The Osaka-based company is trying to cooperate with Tokyo Gas in buying liquefied natural gas (‘LNG’) from one of the many projects planned from resources offshore the east African nation.
Neon to Drill Vietnam Gas Block:
May 5, 2013: Neon Energy Limited has contracted the Ensco 107 jack-up rig to drill the Cua Lo prospect in offshore Vietnam Block 105-110/04 (Block 105). Drilling is scheduled to commence in June 2013.

Pertamina to Enter First Shale Gas Development Contract:

May 6, 2013: Indonesia’s Pertamina is expected to sign
a contract for development of shale gas.
Pakistan’s First Tight Gas is anticipated in July-August:

May 10, 2013: Pakistan is expected to start producing 30 Million Cubic Feet per day (MMCFD) of tight gas in July-August this year from Sajawal gas field located in the district of Dadu for the first time. Tight gas reserves of about 40 Trillion Cubic Feet are expected to be found in Pakistan.
Chevron Stretches Shale Operations in Romania:
May 10, 2013: Chevron is all set to start shale gas mining in another region of Romania. Permits have been granted for work in several blocks in the Constanta municipality in the south of the country.

Israel Discovers Gas Off the Coast of Nahariya:

May 15, 2013: Major natural gas deposits were found at the Karish 1 drilling platform, off the coast of Nahariya, Israel. Karish 1 is owned in part by business magnate Yitzhak Tshuva’s Delek Group.
Indonesia Opens Bidding for 21 Oil, Gas Blocks for Exploration:
May 16, 2013: Indonesia has offered 21 oil and gas blocks for exploration, four of which are unconventional gas blocks. The bidding is expected to begin next month. The unconventional gas blocks on offer are two shale gas blocks and two coal bed methane blocks.

Pertamina to Finance $7.8bn in Sumatra Shale Block:

May 16, 2013: Pertamina plans to invest up to $7.8 billion to develop the Sumbagut shale gas block in North Sumatra, Indonesia. With this kind of investments Sumbagut block was expected to go from about 40 million standard cubic feet per day (mmscfd) to 100 mmscfd by 2020.

Turkey to Transport 2 bcm of Iranian Gas to Europe :

May 16, 2013: Turkey is expected to transport two billion cubic meters of Iranian gas per year to Europe. The pricing and other terms and conditions are under discussion. Iran has world’s second-largest natural gas reserves after Russia and plans to increase its natural gas exports as a way to reduce its dependence on crude sales.

Green Dragon to Sell Wholesale Gas Business:

May 21, 2013: Chinese Company, Green Dragon Gas has decided to sell its 29% effective interest in Beijing Huayou United Gas Development Co. Ltd, the downstream wholesale gas distribution business in Beijing and will devote to higher margin upstream business.
Daewoo International to Trade Gas to China:
May 23. 2013: Daewoo International, South Korea’s POSCO will sell its natural gas, to be produced from June in from its two offshore gas blocks in Myanmar, to China. The two offshore blocks A1 and A3 has been in exploration since 2000 with the Korean firm having 51 percent stake. The produced gas will be sold to the China National Petroleum Corporation (CNPC) and the gas will be transferred to inland China from Myanmar through a 800km-long pipeline.

Essar Projects catches $80 mn contract with Abu Dhabi refiner:

May 25, 2013: Essar Projects (EPL) has bagged three new orders totalling USD 80 million (93 million dirhams) in Abu Dhabi supporting its presence in the Middle East market. EPL is presently executing USD 400 million works at Jurong Aromatics Complex in Singapore for Jurong Aromatics Corporation (JAC) and Merichem Process Technologies, Houston is the technology partner for the project.

Grant of Shale Oil License to Northern Petroleum Acquires in Otway Basin:

May 29, 2013: Government of South Australia has granted Northern Petroleum 100% of Petroleum Exploration Licence

629 in Otway Basin covering an area of 5,800 km square with shale oil prospectivity.

Inpex, Rosneft to Discover for Oil, Gas in Sea of Okhotsk:

May 29, 2013: Japan’s Inpex Corporation and Russia’s Rosneft have signed a deal to develop oil and gas blocks in Sea of Okhotsk. The two companies will jointly explore and develop the exploration blocks, Magadan 2 and 3 blocks offshore Magadan city of Russian Federation.

Qatar’s Gas Reserves to End in 160 Years:

May 28, 2013: Qatar’s proven gas reserves projected at 885 tn cubic feet (tcf) will end around 160 years at the 2011 production rates, according to a report by Qatar National Bank (QNB).
Eni Will Lessen Gas Purchase from Algeria:
May 28, 2013: Italy’s energy firm Eni will slow down the quantity of gas it purchases from Algeria under the existing gas contract for 2013 and 2014.
Indonesia’s ENRG Signed an Agreement to Divest Stake in Masela PSC:

May 29, 2013: Energi Mega Persada (ENRG) ‘s subsidiary, EMP Energi Indonesia, has signed an agreement to divest its 10% stake in the Masela PSC block (Abadi LNG project) to INPEX Masela and Shell Upstream Overseas Services.

REPUBLIC OF INDIA

India Scheduling Special Agency to Map Shale Resources:

Mar 09, 2013: India’s oil ministry is scheduling to have a specialised agency to map its shale gas resources. The agency will have the command to map the presence of shale gas across several states in the Gangetic plain, Assam, Rajasthan and many coastal areas.

ONGC, Oil India Ltd. Bid for Mozambique Gas Field Stake:

March 15, 2013: ONGC, through its overseas arm ONGC Videsh, and Oil India Ltd have bid for Anadarko Petroleum and Videocon’s 20 percent stake in a Mozambique gas field.

ONGC Invites Private Players to Develop Marginal Gas Fields:

Mar 29, 2013: ONGC is inviting more private players to exploit marginal gas fields in the KG Basin.

RIL’s Gas Pipeline Co. to Lease Out 25% Space:
March 29, 2013: Reliance Gas Transportation Infrastructure Limited (RGTIL) will lease out 25 percent of space on its East-West Gas Pipeline to third parties. This pipeline, with a common capacity of 21.25 mmscmd, ferries natural gas found in Reliance Industries Limited ‘s KG-D6
basins from Kakinada in Andhra Pradesh to Bharuch in Gujarat.

RIL Plans to Invest Over $5 bn in KG Basin:

May 9, 2013: Reliance Industries is planning to invest over $5 billion to recover gas from KG-D6 fields, offshore eastern India.

ONGC, Shell Plan to Bid for Overseas Oil, Gas Assets:

May 9, 2013: Oil and Natural Gas Corporation and Shell are contemplating joint venture to bid for global oil and gas assets. Economic Times reports that this move follows up on their discussions for a partnership in India’s upstream and downstream sectors.

BP Surrenders 12 Oil, Gas Blocks in India:

May 10, 2013: BP Plc has surrendered 12 out of the 21 oil and gas blocks where it had bought 30 per cent stake from India’s Reliance Industries Ltd (RIL) for $7.2 billion, due to poor hydrocarbon prospects. The British energy firm had taken the stake in 2011.

RIL, BP, Niko Find Huge Gas Reservior in KG Basin:
May 24, 2013: Reliance Industries Limited (RIL) and its partners BP and Niko have announced discovery of huge gas and condensate reservoir

in the KG Basin offshore India’s east coast. The KGD6-MJ1 well was drilled to a total depth of 4,509 metre to search the prospectivity of a Mesozoic Synrift Clastic reservoir lying over 2,000 metres in the D1-D3 gas fields.

HPCL to bargin to 40,000 barrels per day of Basra light oil from Total:

May 23, 2013: Hindustan Petroleum Corp is planning to buy 40,000 barrels per day (bpd) of Basra light oil from France’s Total at a discount .The Company is also approaching to bargain 60,000 bpd from Iraq’s State Oil Marketing Organisation (SOMO) compared to 40,000 bpd last year. The company is cutting its import from Saudi Arabia.

Indian Oil Corp achieves technological revolution:
May 20, 2013: State-owned Indian Oil Corporation Limited (IOC) has advanced technology which will help in use of non-edible oil extracted from plants like Jatropha (bio-diesel) in auto fuels. It is a effectively developed and commercialised technology to co-process non-edible vegetable oil in the existing Diesel Hydrotreating (DHDT) units of a petroleum refinery to make bio-diesel. This is first time in India, when Jatropha oil has been used for co-processing in a petroleum refinery. Grant of Conditional

Authorisation to India by US Gas Exports:
May 18, 2013: The United States has granted conditional authorization to export domestically produced liquefied natural gas (LNG) to nations that do not have Free Trade Agreement (FTA) with it. This liberal policy of US is beneficial for India, as it opens door for export of US shale gas to India.
HPCL plans to recover Rs 50,000 cr refinery/petrochem plant :
May 29, 2013: State-owned Hindustan Petroleum Corporation Limited (HPCL) is recovering a INR 50,000 crore refinery-cum- petrochemical project near Vizag in Andhra Pradesh to meet local fuel demand.

Reliance Industries Ltd , plans to shut a vacuum gas oil (VGO) hydrotreater:
May 31, 2013: Reliance Industries Ltd, owner of the world’s biggest refining complex in western India, plans to shut a vacuum gas oil (VGO) hydrotreater at its 580,000 barrels per day (bpd) refinery in July. The refinery, adjacent to an older 660,000 bpd refinery at Jamnagar in Gujarat, has two VGO hydrotreaters of 110,000 bpd capacity each. Cairn India has requested the Oil Ministry for rights to explore for unconventional shale gas in its prolific Rajasthan block:

May 31, 2013: Cairn India has requested the Oil Ministry for rights to explore for unconventional shale gas in its prolific Rajasthan block.

ONGC plans to enter into fuel retail business:
May 31, 2013: ONGC plans to try its hand into fuel retail business. The Company is keeping its eyes open and waiting for complete deregulation of diesel prices.

New Gas Findings

Ukraine. On February 1, 2013 Kulczyk Oil Ventures has found natural gas in the Krutogorovskoye-7 exploration well in Ukraine. The production is expected to begin in the third quarter of 2013 after the construction of 1.7 kilometre of new pipeline.

India. On April 30, 2013 ONGC has said three “substantial new oil and gas discoveries”, two in the prolific Krishna-Godavari basin blocks and one in a western offshore block. Discoveries are made in deep water blocks KG-DWN-2005/1 and KG-DWN-98/2 and the Kutch offshore block, GK- 28.

Pakistan. Pakistan’s petroleum ministry has announced on May 31, 2013, , discovery of new gas reserves in Sindh province of Pakistan.

Iran. National Iranian Oil Company has found on May 7, 2013 , a gas field with around 260 bcf of in-situ reserve, of which 175bcf can be recovered in Ilam, Tehran.
Egypt. May 7, 2013: Apache Corporation has discovered
three new oil and gas reserves in Egypt’s Western Desert.

Qatar. March 11, 2013: Qatar has discovered a natural gas field at 4-North offshore block near Qatar’s North Field.

Sydney.
May 15, 2013: Senex Energy has announced discovery of gas field near to Moomba-Sydney gas pipeline.
Indonesia. May 26, 2013: Salamander Energy has found Bedug-1 exploration well in the Bontang PSC, East Kalimantan, Indonesia.

Legal Developments

Algeria’s new hydrocarbon law

Algeria’s new hydrocarbon law has come into force on March 9, 2013. The new law is aimed to attract more foreign investments to increase oil and gas output, featuring a set of tax incentive measures that encourage exploration and exploitation in rugged areas. The law maintains the 51/49 rule, which gives state-owned energy giant Sonatrach the majority stake in investment project with foreign partners.

A.P. (DIR Series) Circular No. 99 dated April 23, 2013 issued by the Reserve Bank of India, Foreign Exchange
Department regarding ‘Investment by Navratna Public Sector Undertakings (PSUs), OVL and OIL in unincorporated entities in oil sector abroad’:

Vide notification no. FEMA.120/RB-2004 dated July 7, 2004 (the Notification), as amended from time to time, and A.P. (DIR Series) Circular No. 59 dated May 18, 2007 and para 3(i) of A.P. (DIR Series) Circular No. 48 dated June 03, 2008, Navratna Public Sector Undertakings (‘PSUs’), ONGC Videsh Ltd (‘OVL’) and Oil India Ltd (‘OIL’) were

allowed to invest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas, etc.), which were duly approved by the Government of India, without any limits under the automatic route. It has now been decided that such facility is also extended to the overseas investments in the incorporated JV / WOS in oil sector (for exploration and drilling for oil and natural gas, etc.) by the PSUs, OVL and OIL, which are duly approved by the Government of India, without any limits under the automatic route.

Sources

• Norwegian Petroleum Directorate
• U.S Energy Information Administration
• The International Energy Agency
• Economic Times
• Natural Gas Asia and Europe

The first natural gas utility was founded in Baltimore in 1816 by Rembrandt Peale, a painter. Peale became captivated by the energy source when he used it to light an exhibit at his museum and gallery. By most accounts, the public was more enthused about Peale’s gaslight than it was about his artwork

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