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Cairn vs. Government: Rajasthan oil block dispute

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 Cairn India’s Rajasthan oil block license extension is stuck in a dispute over cost and the firm is surviving on monthly extensions by the government, sources said. 



The government had agreed in October 2018 to extend the contract by 10 years for Barmer fields in Rajasthan after the expiry of the initial 25-year contract period on May 14, 2020. The extension was subject to Vedanta Group firm agreeing to raise the share of the government’s profit from oil and gas produced from the block by 10 percent. 

While Cairn protested against the additional payout and took the government to court, the extension was subsequently held up due to the government claiming additional profit petroleum after re-allocating Rs 2,723 crore common cost between different fields in the block and disallowance of Rs 1,508 crore cost on a pipeline, sources privy to the development said. 

Now the government wants the company to clear the dues before the extension is granted, they said adding the company has disputed the demand and issued a notice of arbitration to resolve the differences. 

Pending resolution, the government first gave the company a three-month extension of the production sharing contract (PSC) for the Rajasthan block, which houses the prolific Mangla, Bhagyam and Aishwariya oilfields, till August 15, 2020. 

It subsequently extended the PSC by 15 days and then by a month till September 30, sources said. 

According to Hindustan Times, a company spokesperson said, “The Rajasthan PSC allows extension on the same terms for a period of 10 years in case of commercial gas production and we are accordingly eligible for the extension.” The block, it said, produces more than 20 percent of India’s crude oil production and has the potential to double this over the next 3 years. 

“This requires a reduction in fiscal levies and administrative support for timely approvals,” the spokesperson said. “We have referred a few matters to arbitration that we were not able to mutually resolve.” The company, however, didn’t provide details. 

“We are hopeful to see some positive outcomes, we are committed to producing in this block and contribute significantly towards a self-reliant economy,” the spokesperson added. 

Sources said the Directorate General of Hydrocarbons (DGH), the upstream nodal authority of the Oil Ministry, on October 26, 2018, granted its approval for a ten-year extension of the Production Sharing Contract (PSC) for the Rajasthan Block (RJ), with effect from May 15, 2020 subject to payment of additional profit petroleum.

~ Rishab Soni

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IOC planning a future in Hydrogen

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 “Indian oil corporation to deploy 50 buses around the capital powered by a blend of hydrogen and CNG”, Chairman Shrikant Madhav Vaidya said. The fleet is to serve the public and is planned to start as soon as this year, potentially creating a new market for producer trying to rebound from its first annual loss in at least 20 years. 



Hydrogen is versed as a fuel of the future and has been praised as a key to fight climate change by energy enthusiasts all over the world. “Hydrogen seems to be the most disruptive and has the potential to grow 10 times between now and 2050”, said Giovanni Serio, global head of research at Vitol Group. ”It could be the one to solve the problem of storing energy and also addressing later the demand from the transportation sector.” 

According to a report by BloombergNEF, nearly $11 trillion of investment in production, storage and transport infrastructure is needed for hydrogen to meet about a quarter of the world’s energy needs by 2050. 

Hydrogen is considered advantageous in many ways because of its high energy density, the flexibility of production sources, a wide range of applications, and no greenhouse emission, but there are some downsides as well. As the current production methods are polluting and the explosion of hydrogen tanks in South Korea and Norway last year have brought up safety concerns as well. 

That aside, IOC isn’t the only one to look hydrogen as the future, China-based, Sinopec will integrate hydrogen into its retail fuel stations around Beijing and Norway’s Equinor ASA is building a large carbon capture and storage facility that could be a source of hydrogen. So, it can be concluded that soon hydrogen is to be seen in the energy sector as a brand new commodity and will play a visible role in the transition of the energy sector. 


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SEE MORE: BHAVNAGAR, GUJARAT TO HOLD WORLD'S FIRST "cng" TERMINAL

Bhavnagar, Gujarat to hold World's first CNG Terminal

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In a recent press conference, CM of Gujarat Vijay Rupani shared the information about the ‘Mega Project’ that is to be developed in Bhavnagar. Gujarat has sanctioned a budget of ₹ 1,900 cr. for CNG Terminal merger project which is going to developed by the consortium of developers. The two names that comes in the front foot are Mumbai based Padmanabh Mafatlal Group and U.K. headquartered Foresight group. 



In the first phase the ₹ 1,300 cr. will be invested by the consortium and the other ₹ 600 cr. will be invested in the second phase. 

In this project the terminal and existing port are going to get modified majorly, also the existing infrastructure will face several modifications according to the requirements. The project consists of dredging in the water channel of the port basin, construction of two lock gates, off-shore infrastructure for CNG transportation. Liquid cargo terminal, container terminal, and Ro-Ro (Roll-on Roll-off) ferry service would be developed. With this project, the Bhavnagar cargo capacity will increase to 9 MMTPA. 

After this project, Gujarat will be the only state in the country to have both LNG and CNG terminals. 

The project will also benefit the residents of Bhavnagar and its neighboring areas, vast employment opportunities will be generated. The scope of transportation and storage will increase. CNG based vehicles are expected to take a leap forward due to this project.


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FUTURE OF ROBOTIC PROCESS AUTOMATION

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In todays technology we could see automation anywhere these leads to reduce the time of workers and increase productivity of the organization efficiently. But there is an acquisition that due to automation many jobs were replaced by robots and artificial intelligence. But there is always wide range of job opportunities available in this era. Many organizations recruiting skill based workers everywhere. The recruiting process of IT and other domains have changed and they are expecting students to have good technical skills and they should be strong in any technology.

In this article we will address the future scope of RPA(Robotic process automation). RPA is advanced form of business process automation that is able to record tasks performed by a human on their computer, then perform those tasks without human intervention. As the name robotic process automation people intend to think that it’s a humanoid robot but the fact is that it is not that but it is a software robot that automates rules based actions performed on a computer.

WHY RPA IS NEEDED?

Three types of process can be adopted by RPA

1.Rule based tasks

2.Structured tasks

3.Repetative tasks

RPA is a technology that uses software robot to automate repetitive tasks and manual processes. This is suitable for IT and business organizations. By adapting RPA will enhance the work of the employees by interacting with websites, business and desktop applications. The benefits of RPA is used to improve the output accurately, it will increase the productivity of the business as it works effectively, it works 24/7 without any interferences, it maintains sales order, update clients information automatically. RPA is used to do repetitive works so that employees can engage in other creative works RPA frees employees to do higher valued tasks. The main usage is cost effective .RPA will also create new jobs as workers train for and move to new roles within their companies. also RPA automation will change jobs without eliminating them.

CAREER OPPORTUNITIES IN RPA

The growth of the industry and widespread adoption of RPA will drive job growth as well. Many types of jobs are available in RPA, including developer, project manager, business analyst, solution architect, and consultant, also you will find job posting for RPA tech writers, process designers, and production managers. It is a field with plenty of opportunities.

GETTING STARTED IN RPA

If you are interested in pursing a career in RPA then INTRODUCTION TO RPA is the place to start. There are plenty of you tube videos and website available and also there is a website guvi.in. you can log in to it and they are providing free course on RPA with certification there you can learn basics of RPA and they will teach you to install Ui Path studio there you can create software robots. In this quarantine you can use these days to spend time to learn this emerging RPA technology. The main advantage is that it can be studied by both IT and NON IT students as it doesn’t require any programming knowledge. Where you will be working with the software tools. The most widely used RPI tool is Ui Path it is one of the leaders of world RPI VENDOR whose founder is Daniel Dennis. There are so much opportunities available make smart choices and grab the best of it.

~ Sherin Sulthana

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Heat Exchangers

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Heat exchangers are predominantly used in both mechanical and petroleum industry. Heat exchanger is a system or equipment used to transfer heat between two or more fluids. It is used for cooling and heating purposes in industrial applications. Heat exchangers are of many types depending on the usage in industries such as direct contact, shell and tube heat exchangers etc. Heat exchangers works based on the principle of heat naturally flows from high temperature to low temperature. In heat exchangers the heat is transferred by the process of convection. A simple example will be a car radiator. It is designed to transfer heat from the hot coolant that flows through it to the air blown through it by the fan.

In mechanical industry, the heat exchanger is deployed in all type of power plant. The heat exchanger finds in use in power plant whether a coal powered power plant or a nuclear power plant. The nuclear power plant the heat from hot coolant from the reactor is used to boil the water into steam for energy generation with the use of heat exchanger.

In petroleum industry, the heat exchanger is used in fractional distillation process. The crude oil is heated with the help of furnace with the use of heat exchanger. The crude oil from the storage area is passed through a series of tube bundle which passes through the furnace. As the number of tubes increases the more the heat is transferred as the contact surface area is increased.

For a simple understanding of convection, let us imagine the phenomenon of melting of ice. During the process, Heat moves to the ice from the air. This causes the melting from a solid to liquid.


The mathematical formula for convection is given by


As it shows, the contact area is directly proportional to the heat flows. Therefore as contact area increases, heat flow increases. Here by the surface area of a heat exchanger is increased by increasing the number of tube bundles.

Heat exchangers are typically classified according to flow arrangement and type of construction. The simplest heat exchanger is one for which the hot and cold fluids move in the same or opposite directions. This heat exchanger consists of two concentric pipes of different diameters.

·        Parallel-flow arrangement. In the parallel-flow arrangement, the hot and cold fluids enter at the same end, flow in the same direction, and leave at the same end.

·        Counter-flow arrangement. In the counter-flow arrangement, the fluids enter at opposite ends, flow in opposite directions, and leave at opposite ends.


The heat transfer surface in heat exchangers can be arranged in several forms. Heat exchangers are therefore also classified as:

·        Double pipe heat exchangers

·        Shell and tube heat exchangers

·        Plate heat exchangers and etc

Heat exchangers are found to be efficient method of waste heat recovery. The waste heat can be recovered using various types of heat exchangers depending on the nature of environment put in use and can be used for heating and cooling purposes or any other industrial applications.



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JOURNEY OF DIGITAL TRANSFORMATION FROM UPSTREAM OF OIL & GAS TO PROCESSING FACILITIES

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Coronavirus has a serious impact on global oil demand and prices, with the WTI / Brent crude oil benchmarks plummeting since January 2020. Low prices, coupled with an unprecedented decline in demand, will be difficult for the upstream sector in the near term, particularly for regions with unfavourable economies of production. In the current scenario of a historically low-price environment, the debt-ridden US shale / tight oil industry will see the biggest hit, with drilling capital budgets cut, operations shortened, and production declining.     

       Digital Transformation in oil and gas picture representation

IIoT (Industrial Internet of Things), Digital Oilfield 4.0 and Industry 4.0 are some of the truly important terms describing digital transformation in today's oil and gas industry. It was no surprise that a recent survey pointed out that while most executives agreed that digital transformation would be an important source of growth for them over the next few years, they still lack a clear perspective on where and how to embark on the "right" digital journey to maximize the production the potential of their assets, particularly given the wide range of complex applications.

Comprehensive approach

Digital transformation is not just about technology. It offers a comprehensive approach to transforming operations – such as changes to existing workflows, operations and business models. For example, improving the process requires monitoring of key performance indicators (KPIs) and alerting stakeholders to any significant deviations from the targets. This requires an understanding of the process context for assessing the various options; taking a decision on the most appropriate corrective action; and finally ensuring that a decision is taken. An effective closed-loop performance management platform, combined with analytics, can help companies unlock additional millions of dollars of value.

Production to Processing - Application

Predictive analytics predicts the performance behaviour of operating assets and processes. These analyses leverage advanced pattern recognition, statistical models and machine learning technology to model the operating profile and processes of the asset and predict future performance, recommending appropriate, timely action to improve production uptime and optimize operating conditions. Some of the key areas in which analytics have been successfully deployed are:

  • Production Allocation & Planning: Advanced simulation and analytics tools can be used to model and predict the performance of producing wells, allowing proper production recording and planning and uncovering production potential in existing assets
  • Gas lift Optimization: Advanced analytics can be used to optimise the allocation of injection gas to boost production in oil field
  • Gathering Network: Analytics can be used to model fluid flow behaviours in pipeline- multi-phase or single-phase flow - to predict pipeline holdup and potential slugging in the network, optimizing the designs to reduce CAPEX, production and transportation costs
  • Asset Optimization: Predictive asset analytics have been gaining grounds in oil and gas operations to help reduce abrupted equipment failure that can cause costly production outages
  • Process Optimization: Process optimization analytics reconcile dynamic process data – such as pressure, flow rate, and temperature - in real-time and predict the optimum operating model based on thermodynamic laws and its physical properties

IEA - IMPACT OF COVID-19 IN OIL MARKET

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     Global demand for oil is expected to decline as a result of the global outbreak of COVID-19, limiting travel and broader economic activity. Here in this article we will address the major threats facing the oil sector according to the current oil market forecast by the International Energy Agency. The IEA published its medium-term outlook, examining the key issues in the global demand, supply, refining and trade till 2025.

File:International Energy Agency logo.svg - Wikimedia Commons


"The Corona Virus crisis is adding to the uncertainties the global oil industry faces as it contemplates new investments and business strategies. The pressures on companies are changing. They need to show that they can deliver not just the energy that economics rely on, but also the emissions reductions that the world needs to help tackle our climate challenge. - Dr. Birol"

The arrival of Corona Virus is shaking the global oil market that was already facing challenges. On the demand side, the growth of the oil market in 2019 was significantly weaker than expected and new vehicle efficiency measures began to weigh on transport fuels. Refining capacity additions in recent years have outstripped demand growth, bringing tough competition to an industry that is already challenged by tightening product specifications, in particular the new International Maritime Organization (IMO) bunker rules introduced at the beginning of 2020.

Geopolitics remains a wild card on the supply side. Production losses from Iran, Libya and Venezuela have increased to 3.5 mb/d since the beginning of 2018. Even before the outbreak of COVID-19, markets had been over-supplied, leading OPEC+ producers to reduce their output. Looking beyond the short term, the oil market appears to have been comfortably supplied through 2025.

Following the contraction in 2020 and the expected sharp rebound in 2021, global oil demand growth is set to decline as vehicle fuel consumption increases more slowly. Global oil demand is projected to grow at an average annual rate of just under 1 mb/d between 2019 and 2025. Petrochemicals are becoming increasingly important drivers, with naphtha, liquefied petroleum gas (LPG) and ethane responsible for half of all growth. Efforts to improve the sustainability of the plastics industry will be countered by a steady increase in consumer demand in developing countries. Bans on single-use plastics and recycling, even if fully implemented, will displace only a very small amount of oil demand. By 2025, global demand for oil has risen by a total of 5.7 mb/d, with China and India accounting for about half of growth.Iea


At the same time, the world's oil production capacity is expected to increase by 5.9 mb/d. Non-OPEC supplies will increase by 4.5 mb/d while OPEC builds another 1.4 mb/d of crude and natural gas liquid capacity. This assumes that there is no change to the sanctions imposed on Iran or Venezuela. The United States is leading the way as the largest source of new supplies. Given its enormous resource potential, it could produce even more if prices end up higher than expected in this report. Brazil, Guyana, Iraq and the United Arab Emirates are also making impressive gains.

Strong growth in Asian oil demand creates major opportunities for oil-producing countries that can boost exports. However, growth in non-OPEC production is set to lose momentum after a few years, indicating a greater role for OPEC+ countries. The pace of expansion in the US is slowing as independent producers cut spending and scale back drilling in response to investor pressure. Deceleration in the US and other non-OPEC growth since 2022 will allow OPEC producers in the Middle East to tap into the balance of the oil market, thus increasing their importance to oil-consuming countries.



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