New Delhi: Crude oil price crash in the midst of the coronavirus pandemic has further hit the finances of the state governments as it has badly depleted yet another source of revenue in this difficult period.States having oil and gas exploration and production blocks get hefty royalty on production of the hydrocarbons with rates varying from 7.5 per cent to 12.5 per cent depending on whether a block is on loans or in shallow water. Totality rates are lower for deep way and ultra deep water blocks. The COVID-19 pandemic and destruction of demand for oil had resulted in an oil price crash that resulted in crude falling to $15-18 a barrel level in April, around $30 in May and close to $ 40 a barrel in June. This has substantially dented the earnings particularly of three states, Rajasthan , Gujarat and Assam that have the bulk on inland oil blocks and also affected royalty earnings of Andhra Pradesh, Tamil Nadu, Assam for gas blocks. Sources said that Rajasthan, which has the richest … [Read more...] about Crude oil crash adds to financial stress of states
Chinese vessels continue blocking vietnamese ships in oil rig site
NEW YORK: If action is not taken to deal with a deteriorating oil tanker stranded off the coast of war-torn Yemen there is a risk it could spill four times as much oil as the 1989 Exxon Valdez disaster near Alaska, the United Nations warned on Wednesday.The Safer tanker is carrying 1.1 million barrels of crude oil and has been stranded off Yemen's Red Sea oil terminal of Ras Issa for more than five years. On May 27 water began leaking into the engine room, threatening to destabilize it, U.N. aid chief Mark Lowcock told a Security Council meeting on the issue.While divers from the Safer Corporation were able to fix the leak, Lowcock - who has mentioned the plight of the tanker during monthly council briefings on Yemen for more than a year - warned that "it is impossible to say how long it might hold.""The Safer is carrying 1.1 million barrels of oil. That's about four times as much oil as was discharged in the Exxon Valdez disaster - a spill the world still talks about thirty years … [Read more...] about Tanker off Yemen risks spilling four times as much oil as Exxon Valdez – U.N.
oil marketing companies decided to keep the pump prices of the two petroleum products unchanged on Thursday.Accordingly, diesel continues to be priced at Rs 81.18 per litre in the capital, while petrol has maintained steady levels at Rs 80.43 a litre. Oil companies had raised diesel prices marginally by 13 paisa on Wednesday while keeping petrol prices unchanged. Petrol prices had maintained the same level of Rs 80.43 a litre since June 29 when it's pump price rose marginally by 5 paisa over previous days price.Unexpected rise in diesel prices despite slower demand has put the transport sector at a big disadvantage as rising fuel cost has further shrunk its margins.With the hikes in diesel prices, the gap between the two auto fuels has further widened in the national capital. Last month, diesel prices overtook that of petrol in the national capital, in an unprecedented development.Along with the Capital, petrol and diesel prices also remained unchanged in other metro cities as well.Oil … [Read more...] about Oil companies hold diesel, petrol prices again
Why not rescue the abandoned FSO Safer oil tanker in Yemen? If the oil leaks into the environment, it will create a disaster for the entire Red Sea ecosystem and a humanitarian disaster because Hodeida port will no longer be usable. pic.twitter.com/e0LxaXKcow … [Read more...] about Decaying Oil Tanker in Red Sea Could Unleash Environmental, Humanitarian Catastrophe, Warns UN
Addressing a UN Security Council teleconference on the situation of FSO Safer on July 15, Quy urged Houthi rebels to provide practical support for UN experts and ensure they can work on board the oil tanker until their tasks are completed. The Vietnamese ambassador also called for cooperation and dialogues between the related parties to solve differences in using the money collected from the selling of oil on the tanker. FSO Safer, officially owned by the Government of Yemen, has been controlled by Houthi rebels since 2015. It is loaded with more than 1.1 million barrels of crude oil has not been under maintenance or repair for the past five years. The one-time supertanker, built in Japan in 1974, is deteriorating daily, upping the risk of an oil spill that would wreck ecosystems and livelihoods for decades. It sprung a leak on May 27, flooding its engine room with seawater and threatening to destabilise the vessel and spill its cargo If the oil spill occurs, it can cause … [Read more...] about Vietnam urges Houthi rebels to cooperate with UN in oil tanker issue