India's ONGC sees oil production rise 11% after east coast block starts output

India's Oil and Natural Gas Corp said it expected total oil output to climb 11% after its project off the country's east coast started producing oil, said Hydrocarbonprocessing.

The project will also likely increase ONGC's gas output by 15%, the company added.

The state-run company sees production from the rest of the oil and gas fields in the project by mid-2024 and is eyeing peak output of 45,000 barrels of per day and more than 10 million metric standard cubic meters per day of gas from the project.

The company currently contributes to 71% of India's domestic oil production, according to its official website.

Shares of ONGC were up as much as 2%, their highest since May 2015.

We remind, Motiva Enterprises is scheduled to shut the large CDU and large coker at its 626,000 bpd Port Arthur, Texas (U.S.). Motiva will shut the 350,000 bpd VPS-5 CDU and the 110,000-bpd DCU-2 coker for planned overhauls of the units expected to take 45 days to complete, said the three sources.

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Shell flagged impairment charges of up to $4.5 billion for the fourth quarter, mainly related to the Singapore refining and chemicals hub the oil major is looking to sell, said Reuters.

Ahead of fourth-quarter results on Feb. 1, the company also said gas trading would be significantly higher than the previous three-month period, while oil trading results were expected to be significantly lower over the same period.

Shell's liquefied natural gas (LNG) production volumes were expected to come in at 6.9 million to 7.3 million metric tons, a slightly higher range from its previous guidance. That comes after Shell restarted production late last month at its giant Prelude LNG facility offshore Australia following four months of maintenance.

Shell's upstream production is set to come in at 1.83 to 1.93 million barrels of oil equivalent per day in the fourth quarter. Meanwhile, its chemicals and products division is expected to post an adjusted earnings loss for the period, it added.

The changes led analysts at Barclays to lower Shell's forecast fourth-quarter adjusted operating result to $5.9 billion, down 11% from their previous estimates. Shell shares were down by 1.7% at 1242 GMT. Shell said it would take non-cash, post-tax impairments of $2.5 to $4.5 billion in the quarter.

We remind, Shell said it had agreed to sell its 37.5% stake in the PCK Schwedt oil refinery, which supplies most of Berlin's fuel, to Britain's Prax Group, attempting to draw a line under its co-ownership of an asset majority-owned by Russia's Rosneft.

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India's fuel consumption rose to a seven-month high in December to about 20.054 MMt, data from the Petroleum Planning and Analysis Cell of the oil ministry showed, said Hydrocarbonprocessing.

Total consumption, a proxy for oil demand, in December rose by 6.2% from 18.89 million tons in November. It was up around 2.6% compared with the same period a year earlier.

"Due to the festive season, demand has been growing at a rapid rate in recent month. Demand will continue to increase but the growth could be slower, as 2023 has been a strong year," said LSEG analyst Ehsan Ul Haq.

Sales of diesel, mainly used by trucks and commercially run passenger vehicles, rose by 0.9% month-on-month to 7.60 million tons. Sales of gasoline in December slipped 4.5% from the previous month to 2.99 million tons.

Sales of sports utility vehicles rose in December, while small car sales fell despite high discounts, data from Indian automakers showed last week. "Car sales remain strong, which does bode well for demand but new cars are fuel efficient. Some car travel restrictions might remain in the winter but the situation is likely to start improving in February," Ul Haq said.

Sales of bitumen, used for making roads, rose by 12.9% from November, while fuel oil use increased by 9.6% in December. Cooking gas, or liquefied petroleum gas, sales rose by 5.6% to 2.63 million tons, while naphtha sales jumped by 27.9% to about 1.33 million tons, the data showed.

We remind, Motiva Enterprises is scheduled to shut the large CDU and large coker at its 626,000 bpd Port Arthur, Texas (U.S.). Motiva will shut the 350,000 bpd VPS-5 CDU and the 110,000-bpd DCU-2 coker for planned overhauls of the units expected to take 45 days to complete, said the three sources.

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PT Chandra Asri Petrochemical Tbk has officially changed its Company's name to PT Chandra Asri Pacific Tbk (Chandra Asri Group) with the stock code TPIA, said the company.

This change has officially received approval from the Ministry of Law and Human Rights of the Republic of Indonesia on January 03, 2024 that has received shareholder approval at the Extraordinary General Meeting of Shareholders (EGMS) on December 29, 2023.

This name change was implemented as part of a company’s transformation, in which it is currently intensively diversifying its business portfolio so that it is no longer focused only on the petrochemical sector, but has expanded its business to the chemical sector and infrastructure provision. Thus, changing the name to PT Chandra Asri Pacific Tbk is a strategic step to accommodate changes in broader business focus, strengthening the Company's reputation as a #YourGrowthPartner as the backbone for strategic sectors in the country.

Director of Human Resources and Corporate Affairs Chandra Asri Group, Suryandi, said "The change of the Company's name to PT Chandra Asri Pacific Tbk was implemented in line with the Company's efforts in diversifying its business to provide maximum benefits for all stakeholders. We thank all the Company's customers and partners for their consistent and neverending support which has enabled Chandra Asri Group to continue to grow and make positive contributions to Indonesia."

Chandra Asri Group is currently diversifying its business as an effort to strengthen the Company's performance. The Company acquired PT Krakatau Chandra Energi (formerly PT Krakatau Daya Electric) and Krakatau Tirta Industri in the infrastructure sector through its subsidiary, PT Chandra Daya Investment (CDI) in the beginning of 2023. Chandra Asri Group also planned to build a Chlor-Alkali and Ethylene Dichloride (CAA-EDC) Factory through its subsidiary, PT Chandra Asri Alkali to expand its chemical sector. Chandra Asri Group also continues its commitment to build a second global scale petrochemical complex (CAP2) to help Indonesia reduce the net imports.

Chandra Asri Group's Ciwandan plant, recipient of the 2023 Gold PROPER, has produced environmentally friendly products labeled under the Swadeklarasi Eco-label for HDPE and PP. The company has implemented innovations through Component Changes, enhancing production and supporting energy savings in the Polyethylene Plant reactor system. This has resulted in a reduction in Global Warming Potential (GWP) by 4,855,947.073 tons of CO2eq and an energy efficiency improvement of 12,470.40 GJ. Additionally, the company engaged in plastic waste recycling processes under the waste embedded scheme. In total, 8.94 tons of plastic pallet waste were utilized in the year 2022.

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ADNOC announced it has taken a 10.1% equity stake in Storegga to become a lead investor in the UK-based company that focuses on the development of global carbon capture and storage projects, said Hydrocarbonprocessing.

The strategic transaction represents ADNOC’s first international equity investment in carbon management and supports the company’s strategy to leverage carbon management partnerships and technology to advance global carbon capture and storage projects that can accelerate decarbonization. The investment is enabled by ADNOC’s initial allocation of $15 B to low-carbon solutions and decarbonization technologies.

ADNOC is targeting a carbon capture capacity of 10 Mtpa by 2030, equivalent to taking over 2 million internal combustion vehicles off the road.

Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “This strategic investment marks an important milestone in ADNOC’s decarbonization journey and highlights our commitment to work with partners across industries to deliver practical solutions to enable a net zero energy future. Carbon capture is an important tool to responsibly reduce carbon emissions and meet global climate goals and ADNOC will continue to scale-up this technology as we work towards net zero by 2045.”

ADNOC’s carbon management strategy aligns with the Intergovernmental Panel on Climate Change’s (IPCC) view that carbon capture and storage is a critical enabler for the world to achieve net zero by mid-century.

Nick Cooper, CEO, Storegga, said, “Strategic collaborations are crucial for a pragmatic, prompt and affordable transition to a low-carbon future. Storegga is therefore ready to stand alongside traditional energy suppliers to accelerate decarbonization by deploying cost-effective CCS globally.

ADNOC operates Al Reyadah, the world’s first commercial scale operation to capture and store CO2 from the steel industry, with a capacity of 800,000 tons of CO2 per year. Recently, ADNOC announced major carbon capture projects, taking its committed investment for carbon capture capacity to almost 4 mtpa. ADNOC is also one of 50 founding signatories of the Oil and Gas Decarbonization Charter (OGDC). Launched during COP28 in Dubai, the OGDC is a global commitment to speed up climate action across the industry.

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