Page 6 - Oil Companies
Covid-19 drives oil companies to raise record debt to boost cash reserves
Benchmark Brent crude averaged below $30 a barrel in the second quarter when it hit the lowest in two decades
Assam oil well fire continues, OIL says production getting affected
The well no. 5 at Baghjan in Tinsukia district has been spewing gas uncontrollably for the last 22 days and it caught fire on June 9, killing two of OIL's firefighters at the site
 "Assam oil well fire continues, OIL says production getting affected")
Petrol up by 57 paise per litre, diesel by 59 paise in 6th consecutive hike
Rates have been increased across the country and vary in each state depending on the incidence of local sales tax or value-added tax
 "Petrol up by 57 paise per litre, diesel by 59 paise in 6th consecutive hike")
How US could use taxpayer dollars to save oil and energy companies
The US federal government could use some of the $2.6 trillion coronavirus rescue legislation, or other options to help the industry
 "How US could use taxpayer dollars to save oil and energy companies")
Oil companies seek mechanism to pass through BSVI upgrade cost
BPCL will roll out BS-VI fuels at all its outlets from March
Oil companies defer decision to suspend fuel supplies to Air India
The decision was taken after Air India made a written request and also promised regular payments to clear over Rs 5,000 crore in overdue fuel bills.
 "Oil companies defer decision to suspend fuel supplies to Air India")
Oil cos say Air India not paying Rs 100 cr a month, threaten to snap supply
The monthly payment was besides the airline being put on cash-and-carry where it was given fuel only against cash payment
 "Oil cos say Air India not paying Rs 100 cr a month, threaten to snap supply")
OMCs flag roadblocks in govt's plan of rationalising taxes on jet fuel
Currently, airlines have to pay taxes for certain services, such as 'throughput charges', 'into-plane charges' and 'fuel-infrastructure charges' when they take the ATF at any airport for their planes
 "OMCs flag roadblocks in govt's plan of rationalising taxes on jet fuel")
Govt to offer six oil & gas blocks in unexplored Vindhyan, Bengal basins
The government sees this as a milestone in the country's hydrocarbon sector, as investments so far were limited to only seven of the 26 sedimentary basins in the country
 "Govt to offer six oil & gas blocks in unexplored Vindhyan, Bengal basins")
State oil cos recover as oil prices drop, but that's not helping consumers
In October, companies were told to gradually recover the reduction in the margins if crude prices fell, two finance ministry officials said
 "State oil cos recover as oil prices drop, but that's not helping consumers")
India opens Padur strategic reserves for foreign oil companies
The SPR facility at Padur is an underground rock cavern with a total capacity of 2.5 million tonnes (MT) having four compartments of 0.625 MT each
 "India opens Padur strategic reserves for foreign oil companies")
Fuel price cut may dent EBITDA of IOCL, HPCL, BPCL by Rs 65 bn: Moody's
These three OMCs account for about 95 per cent of the country's retail fuel sales
 "Fuel price cut may dent EBITDA of IOCL, HPCL, BPCL by Rs 65 bn: Moody's")
When it comes to paychecks, oil firms looks like best bet for US workers
Is it time to move over Wall Street titans and Silicon Valley giants, when it comes to doling out America's fattest paychecks?
 "When it comes to paychecks, oil firms looks like best bet for US workers")
Govt may ask oil firms to share LPG, kerosene subsidy burden: India Ratings
India Ratings said ONGC's acquisition of Hindustan Petroleum Corp Ltd (HPCL) will be credit neutral for ratings of HPCL
 "Govt may ask oil firms to share LPG, kerosene subsidy burden: India Ratings")
Oil companies likely to use improved cash flows to expand asset base: S&P
Indian oil and gas companies are likely use their improved cash flows from market-linked fuel prices to expand their asset base and enhance operational quality, S&P Global Ratings said today. They are expected to step up investments in upgrading refineries to meet cleaner fuel standards, improve yields and create flexible refinery configurations in product pipeline and gas infrastructure capacities, it said. "The combination of reform-driven improvements in financial health, lower crude oil prices, and forecasts of mid-single-digit demand growth for petroleum products puts Indian oil companies in a sweet spot to invest in growth," S&P Global Ratings credit analyst Vishal Kulkarni said. "We expect the fuel-price reforms in India since late 2014 to continue and enhance business and financial prospects for the oil and gas companies. Making fuel prices market linked has improved oil marketing companies' profitability, bolstered cash flows, and lowered their debt."
 "Oil companies likely to use improved cash flows to expand asset base: S&P")
Worries around OMCs appear to be overdone?
In sync with historical trends, govt may look to reduce excise duty to curtail impact of rising crude oil prices, believe analysts
 "Worries around OMCs appear to be overdone?")
Petronet chief wants oil, gas firms to jointly acquire assets abroad
The new model can involve floating either a consortium or an SPV that will scout for opportunities abroad
 "Petronet chief wants oil, gas firms to jointly acquire assets abroad")
