Energy & Power

WORLD WATCH

Nepal Leaders Against Petro Price Hike

Leaders of eight Nepalese political parties have said that the price of petroleum products should not be increased before demonstrating reforms in the management of Nepal Oil Corporation (NOC) to the people at large.

Speaking at an interaction on “Present Situation of Supplies of Petro Products: Problems and Challenges,” the leaders said that the NOC should be subjected to extensive internal reforms and private sector should also be involved in its transactions in a competitive manner.

Binaya Dhoj Chand, leader of Nepali Congress (NC), was quoted by nepalnews as saying that the option of price hike could be counterproductive if it is not preceded by demonstrated reforms within NOC.

UML leader and former minister Rajendra Pandey said that any decision to hike the petro price at this point could affect the Constituent Assembly (CA) elections as it was likely to trigger street unrest. He urged the NOC to clarify what improvements it has registered in its management in recent times.

Likewise, Sunil Prajapati, leader of Nepal Workers and Peasants Party (NWPP), said that options like importing cheaper fuel from China should be explored. Keshav Nepal of Maoists stressed on rooting out corruption within the corporation.

Turkmenistan invites Chevron to work Caspian oil fields

Turkmenistan's new President has invited U.S.-based Chevron Corp. to work in the country's section of the energy-rich Caspian Sea, official media said, as international competition intensifies for access to one of Central Asia's biggest energy producers.

President Gurbanguli Berdymukhamedov made the proposal at a meeting with visiting Chevron executives, the reports said. It may signal a change from the policy of his predecessor, Saparmurat Niyazov, who allowed only limited foreign access to his country's vast oil and gas deposits.

Just two major foreign companies now operate in the Turkmen sector of the Caspian shelf, Malaysia's national oil company, Petronas, and the United Arab Emirates' Dragon Oil. Petronas began commercial production at an offshore Caspian field last year.

Pak Govt. Under Fire in Senate on Power Tariff Hike

The opposition in the Pakistan Senate criticized the government for the recent hike in power tariff, which they said, had dealt a blow to the already fragile economy of the country.

Federal Minister for Water and Power Liaquat Ali Jatoi, however, said that power tariff had been increased after almost four years because of increased cost of power production due to an unprecedented increase in oil and gas prices.

Raza Muhammad Raza interrupted Jatoi during his speech, accusing him of telling lies on the floor of the house. “The entire country has plunged into darkness and the minister is making tall claims,” he said.

“The sudden 10 percent increase in power tariff has jolted the country’s economy by increasing the cost of production in both agriculture and industrial sectors,” said Prof Khurshid in his opening speech on an adjournment motion concerning the increase in power tariff.

Kamran Murtaza said that the government had blamed the high power tariff on certain individuals by signing contracts with the independent power producers (IPPs) but it did nothing in this regard.

Liaquat Ali Jatoi said that the government had increased tariff by 10 percent once in four years, while the previous governments had increased tariff 19 times between 1998 and 1999.

India Mulls Pool For Oil, Gas Exploration

India has proposed forming a rig pool for state-run oil companies to avoid delays in oil and gas exploration. An adequate number of rigs could be considered for purchase and government-owned companies would pool in money for them.

The Petroleum and Natural Gas Ministry worked out the proposal on the basis of recommendations of the parliamentary standing committee attached to the ministry. The ministry said the pool would serve the purpose of all state-owned companies and reduce the financial burden of individually owning the rigs.

The standing committee report said that in view of the increasing cost of chartering offshore rigs, the oil companies can commonly charter rigs at cheaper rates on a long-term basis and share the rigs among themselves as per a pre-determined work program.

India's gas major Oil and Natural Gas Corp. was able to drill only 88 wells against 138 exploratory wells in the current year, which triggered the ministry to explore the option of a common pool.

The ministry said oil companies have faced problems both in shallow and deep-water explorations due to a shortage of rigs.

The Directorate General of Hydrocarbons has suggested that oil companies form four consortiums -- one on each coast -- to hire rigs and save money.

China, India to Lead Luring Green Projects by 2012

China and India will become the most attractive countries for investment in renewable energy projects by 2012, according to accounting firm Ernst & Young.

Global accounting firm Ernst & Young ranks countries for investment in all forms of renewable energy and by individual types including wind, solar and biomass.

Ernst & Young's 25-country index had five newcomers of whom Poland ranked the highest at 19. Brazil, Japan, New Zealand and Turkey, which have developed its own renewable energy industries, were the other newcomers.

In its quarterly 'renewable energy country attractiveness' rankings, the report said the two Asian countries are expected to share the top three spots along with the US on its overall 'all renewables index' within the next five years.

Saudi Assures Asian Consumers on Oil Supplies

The world's top oil exporter Saudi Arabia assured East Asian consumers they can depend on the Middle East for sustained and secure supplies of crude. "I would like to assure you that the importing Asian nations can depend on West Asia for future security of oil supply," Saudi Oil Minister Ali al-Nuaimi told the opening of an energy roundtable of Asian ministers held in Riyadh.

"After all, the majority of world supply and reserves are concentrated in only a few countries, and most of them are represented at this roundtable," the Saudi minister said at the one-day event.

Energy ministers from 17 Asian nations, including the oil-rich Gulf Cooperation Council states and major consumers like China, Japan, India and South Korea, took part.