22 C
Georgetown
Thursday, May 13, 2021

India’s pandemic crisis won’t kill long-term oil demand, Liza Crude still on country’s radar

Must Read

Chevron shuts in Tamar gas platform offshore Israel as violence escalates

(S&P Global Platts) US major Chevron has shut in the Tamar gas platform offshore Israel amid an escalation of...

Giant Yellowtail FPSO will produce up to 7.5 million barrels of oil per month during early stage of operations

The offshore developments in Guyana are growing both in number and capacity, with the fourth proposed project at Yellowtail...

Fabrication of topsides for Guyana’s 3rd oil production vessel underway in Singapore

Work on Guyana’s 3rd oil production vessel is progressing on schedule in Singapore, SBM Offshore said in its Q1...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

India has witnessed more than 300,000 new coronavirus cases per day for nearly two weeks in what is a growing humanitarian crisis that could see the outlook for oil consumption worsening in the short term, before rebounding later this year.

“Looking at the situation now, it could take a couple of months to stabilize,” Malhotra said. “This quarter will be not so good for oil as regional lockdowns have restricted many activities. And there is more to come,” R.K. Malhotra, Federation of Indian Petroleum Industry (FIPI) Director General told Platts in an interview.

Indian Prime Minister Narendra Modi has urged leaders of the various states to focus on micro containment zones and use lockdowns only as a last resort. But many provinces are planning to implement regional lockdowns amid fears the situation could get worse.

S&P Global Platts Analytics has said that India would witness a year-on-year oil demand growth of 400,000 b/d in 2021, revised down from an earlier growth estimate of 440,000 b/d, as the country grapples with record COVID-19 cases.

Chris Midgley, global head of analytics at Platts, said last week that those numbers could possibly be revised down by another 20,000 b/d, but any further revision would depend on how the situation develops over the next few weeks.

But Midgley added that India would continue to reap the benefits of a robust world economy as industrial activity picks up across the globe. Oil demand could slow in the near term but there were enough conditions to believe that consumption would stage a robust recovery in the second half of 2021.

The world’s third-largest crude consumer and importer has expressed interest in buying Guyana’s Liza Crude as part of a long-term deal with the Guyanese government. The country is interested in working with authorities as well as commercial entities to forge an agreement that would facilitate these exports. OilNOW understands that no firm decision has yet been made by the Guyana government on crude exports to India. Natural Resources Minister, Vickram Bharrat, has told OilNOW the government’s primary objective is to sell its share of crude at market price where it will be able to maximise returns for the country.

The South American country is positioned to become a major oil producer in the Latin America region with output set to surpass the 1 million barrels per day mark by 2027.

India’s oil & gas demand is expected to increase nearly 3-fold from 229 million metric tons in 2018 to 607 million metric tons in 2040.

- Advertisement -
- Advertisement -

OilNOW TV

Latest News

Chevron shuts in Tamar gas platform offshore Israel as violence escalates

(S&P Global Platts) US major Chevron has shut in the Tamar gas platform offshore Israel amid an escalation of...

Giant Yellowtail FPSO will produce up to 7.5 million barrels of oil per month during early stage of operations

The offshore developments in Guyana are growing both in number and capacity, with the fourth proposed project at Yellowtail being designed to utilize a...

Fabrication of topsides for Guyana’s 3rd oil production vessel underway in Singapore

Work on Guyana’s 3rd oil production vessel is progressing on schedule in Singapore, SBM Offshore said in its Q1 trading update on Wednesday. The...

Proposed, sanctioned offshore developments to deliver over 800,000 bpd by 2025

Guyana has gone from having no known oil resources just 6 years ago to now holding over 9 billion barrels of oil equivalent. The...

Mærsk Developer to drill additional appraisal well for Total in Suriname

Total E&P Suriname, Suriname Branch has exercised an option to add the drilling of one additional appraisal well in Suriname’s Block 58 to the...

More Articles Like This