The Supreme Court of India on Monday appointed a former Australian chief justice as an arbitrator for resolution of the dispute between Reliance Industries Ltd (RIL) and the Indian government over issues related to KG basin gas field.
James Spigelman, former Chief Justice of New South Wales in Australia, is going to be the third arbitrator and the chairman of the arbitral tribunal that will try to settle the dispute between RIL and the government over recovery of cost for developing key natural gas field in KG basin.
The deferment of gas price hike will create uncertainty in the industry and send a very bad signal to foreign investors, experts have cautioned.
The Congress-led UPA government had approved a near doubling of prices for gas produced domestically from April 1, but the Election Commission (EC) asked the government to defer the gas price due to its potential influence on the upcoming elections.
The deferment created around gas prices as any increase in gas prices will now depend on the new government, which will take office after May this year.
While many political parties as well as consumer advocates have been criticizing the government for increasing the price of domestic gas, state-run Oil & Natural Gas Corporation (ONGC) has expressed concerns that even the increased price would not be able to make all gas discoveries viable.
The government has decided to increased domestic natural gas price to almost double, from current $4.2 per million British thermal units (mBtu) to $8 per mBtu from the April 1, 2014.
As per some estimates, ONGC will receive additional revenue of Rs 16,000 crore from gas price rising.
Essar Global Fund Ltd has made a possible offer of 70 pence per share for the remaining 22 per cent stake in its British subsidiary Essar Energy Plc that it doesn't own.
The proposal, which represents a modest premium to Essar Energy's Thursday share close of 60 pence on the London Stock Exchange (LSE), values the London-listed oil & energy firm at more than 900 million pounds.
Last Friday, Essar Global said that it could make a bid to acquire the remaining stake in Essar Energy on its own or as part of a consortium.
Prices of compressed natural gas (CNG) and piped natural gas (PNG) have significantly come down in Delhi, thanks to the oil ministry's decision to give gas distribution companies cheaper domestic gas to meet all their needs for CNG and PNG supplies in the national capital.
Price of CNG in the national capital has been slashed by Rs 14.90 per kg, while piped cooking gas' price has been slashed by Rs 5 per standard cubic meters (scm).
Gasoline prices have broken above the $3-per-gallon barrier in all U. S. states; even those that usually enjoy comparatively low rates due to their proximity to refineries and large oil fields.
Motorists in Ohio are now paying 5 cents more at pump pumps than last week. However, the statewide average of gas price is now at $3.31, a penny less than what motorists were paying at this time in January.
The proposal to hike the quota of subsidised LPG (cooking gas) cylinders from 9 to 12 per household per year has been readied and may be placed before the Cabinet Committee on Economic Affairs (CCEA) on Monday, a senior official from the ministry of petroleum has revealed.
Requesting anonymity, the official said that the note might either come up before the CCEA on Monday or sometime later this week before the Cabinet Committee on Political Affairs (CCPA).
Prime Minister Manmohan Singh on Sunday urged Indian as well as foreign oil explorers to buy blocks and drill in India to help the country meet its soaring demand for energy.
Speaking at the Petrotech 2014 Conference, Mr. Singh stressed that ensuring adequate energy supply at affordable rates was vital for the economic growth of the country.
Underlining that India is the world's fourth largest consumer of energy, Mr. Singh stressed on the special need of developing the hydrocarbon sector.
The government will not roll back its policy on reforms and state-run oil marketing companies (OMCs) will keep on hiking diesel price by 50 paise per litre per month, Petroleum Minister M Veerappa Moily declared on Friday.
Many analysts have been speculating that recent poll setbacks could force the Congress-led UPA government to roll back its policy on fuel price hikes to cut down subsidies.
The petroleum ministry will reportedly seek bank guarantees of up to $9 billion from Mukesh Ambani-led Reliance Industries Ltd (RIL) to allow the company to sell gas produced from its KG-D6 block at the increased price.
In June, the government had approved the Rangarajan-led committee's recommendation for doubling the price of domestically produced natural gas from $4.2 per mmBtu to $8.6 per mmBtu, from April 2014.