09 Sept 2010;business-standard.com:Washington: "We were not about apportioning fault or blame," BP Plc's top safety official told reporters as the company released its internal investigation into the world's worst offshore oil spill. But lawyers involved in oil spill lawsuits say the 193-page report into the deadly April 20 explosion of the Deepwater Horizon rig in the Gulf of Mexico sets the stage for court battles between BP and its top contractors. "The finger pointing has just begun," said Louisiana attorney Richard Arsenault, who has brought numerous lawsuits against BP and its partners. The report sets out eight key findings, many of which are critical of work done by BP contractors Transocean Ltd and Halliburton Co. Mark Bly, BP's vice president for safety and operations, began the media briefing in a downtown hotel ballroom by saying his team was focused on preventing any similar accident in the future rather than finding fault. "Our work may be used for those reasons, but that's not what we've done." Although BP cited its own lapses in oversight of some rig operations, it specifically blamed rig operator Transocean at the briefing for failing to test the automatic shutoff system (AMF) on the Macondo well's blowout preventer (BOP). "There was no indication that the AMF system was tested at surface prior to deployment of the BOP on the Macondo well," a member of BP's investigative team, Fereidoun Abbassian, told reporters. Arsenault said the key to unraveling what he called the "blame game" will be following the contractual arrangements between the parties. Daniel Becnel, a Reserve, Louisiana lawyer who filed has filed numerous lawsuits related to the spill, said BP, Transocean and their partners should have already admitted liability and worked out the per centage of blame between them. "I would not get in to a court room and shoot each other. They're insane," Becnel said of the companies. Transocean spokesman Lou Colasuonno said the blowout preventer was "inspected, tested and went through a rigorous maintenance schedule prior to being placed on the Macondo well and was then tested weekly, right up until 72 hours prior to the blast." "Any statement to the contrary is false," he said. Transocean also is conducting an internal probe of the blast. But it said it would not be finished until all the facts were in, including an inspection of the just-retrieved blowout preventer. BP officials said oil services company Halliburton should have done more to test the cementing of the well and alerting BP to any problems. Halliburton joined Transocean in rejecting BP's findings, saying the report contained "substantial omissions and inaccuracies."
Tata Motors claims Nano a 'safe' car in advertisement
Wednesday, 08 September 2010
08 Sept 2010;deccanherald.com:New Delhi: Tata Motors has embarked on a new advertisement campaign on the 'safety' aspect for recommencing booking of small car Nano, which has been in the news for catching fire on a few occasions. "We've built a car in which safety is part of standard equipment," the company said. The Nano comes with safety features such as "monocoque chassis and crumple zones today", it added. The advertisement, which appeared in a national daily today for booking of the car, assumes significance in the wake of six incidents of Nanos catching fire across the country since its commercial launch in March, 2009. In the latest such incident, a Nano car caught fire in the capital on August 27. It prompted Tata Motors to say that it would look into the cause of the incident, which came three months after a company probe had declared the car "absolutely safe". The previous incidents were reported from across the country, including Mumbai, Lucknow and near Vadodara. The advertisement also said buyers can book the car with a down payment of Rs 21,424 and with a monthly installment of Rs 1,892. Dealer sources said booking has already re-started from this week and the cars are "almost ready" for deliveries. They were earlier offering the Nano off-the-shelf. However, when contacted, a Tata Motors spokesperson said: "Booking has not started yet... When to start the booking is still being decided." He said that the company is selling the car in the open market only in Kerala. Giving details about the payment process, the Tata Motors-published print campaign said: "EMI/down payment (is) calculated on 85 per cent of on-road price for Nano BSIV, Ex- (showroom) Delhi for a 7-year period." Although the company did not mention the price of the car, it will be costlier by 3-4 per cent as announced by the auto-maker earlier. Tata Motors had announced that it would increase the Nano price by 3-4 per cent, which translates into a hike ranging from Rs 3,700 to Rs 6,894 (based on ex-showroom, Delhi prices) once it completes delivery to the first one lakh customers. It had said the first one lakh customers are price- protected and they would get their cars at the announced price of Rs 1.23 lakh-Rs 1.72 lakh (ex-showroom, Delhi). The company had earlier last year selected 1.55 lakh customers for delivering the car in two phases. It is in the process of handing over the first one lakh cars, which will be completed by the end of this year. It has already delivered over 50,000 units.
India mulls importing gas from Iran via sea: report
Wednesday, 08 September 2010
09 Sept 2010;deccanherald.com: India is likely to resume negotiations for independently importing natural gas from Iran via a sea pipeline, according to a media report. "India has expressed willingness to restart negotiations through an international firm, to independently import natural gas from Iran via a sea pipeline," Iran Daily quoted Deputy Oil Minister and Managing Director of the National Iranian Gas Company (NIGC) Javad Owji as saying. "No exact date has been yet finalised for the gas talks between Iran and India but they are expected to start after the month of Ramadan," Owji said. He said that no decision has been yet taken on how to export Iran's gas to India. "Using a pipeline through Pakistan's soil or building a deepwater pipeline are the main possible options," he said. Iran's Oil Ministry has not yet responded to the report. Earlier this year, Iran and Pakistan signed a deal to build the pipeline under which Tehran agreed to deliver 21.2 million cubic meters (750 million cubic feet) of natural gas per day to Pakistan beginning in 2014. In August, Iran's deputy foreign minister Mohammad Ali Fathollahi had said that Iran welcomes the presence of India in a regional gas transfer project, which is known as the 'Peace Pipeline' project. "There is an article in the gas transfer deal between Iran and Pakistan, predicting the extension of the pipeline to India should the country be ready to join the project," Fathollahi said. Iranian Oil Ministry's gas exports authority, Asghar Soheilipour had earlier advised India to reconsider joining the 'Peace Pipeline' project. The official stressed that the Iran-Pakistan-India pipeline would be the most economical and efficient export route. Meanwhile, the report said that Bangladesh also has made a proposal to receive Iran's natural gas through the regional gas pipeline.
Cairn Energy to pay up to $1.1bn in taxes on Vedanta deal
Wednesday, 08 September 2010
08 Sept 2010;timesofindia.indiatimes.com:NEW DELHI: While UK's Vodafone Group fights its tax liability in courts, British firm Cairn Energy Plc today said it will pay all taxes due, both in India and the United Kingdom, on the USD 8.48 billion sale of a majority stake in its Indian arm to Vedanta Resources. Cairn Energy is selling between a 40 and 51 per cent stake in Cairn India — the operator of the nation's largest onland oilfield — to London-listed Vedanta for USD 6.65 billion to USD 8.48 billion. "Tax will be paid in both India and UK," a Cairn Energy spokesperson said. "Averaged across both countries on the gross proceeds, it will be in the low teens. What is paid will be determined eventually by the final proceeds." The spokesperson did not elaborate, but analysts said the 'low teens' being referred to in the statement may be the 13- 14 per cent tax liability on gross proceeds of the sale. If Cairn Energy was to eventually sell only 40 per cent out of its 62.38 per cent stake in Cairn India for USD 6.65 billion, the combined tax liability in India and UK would be around USD 868 million. But if it was to sell 51 per cent for USD 8.48 billion, the tax liability would be USD 1.1 billion. Vedanta is to acquire a 40 per cent stake from Cairn Energy and make an open offer for an additional 20 per cent to minority shareholders of Cairn India. In case the open offer is not fully subscribed, Cairn Energy will sell the additional shares, but with cap of 51 per cent, to make up for shortfall. Vodafone Group Plc is likely to appeal in the Supreme Court against the Bombay High Court ruling that dismissed the company's challenge against a tax claim exceeding USD 2 billion. The court today ruled that the Income Tax department has the jurisdiction to seek taxes from Vodafone on its 2007 purchase of Hutchison Whampoa Ltd's wireless mobile operations in India. The I-T department had argued that the world's biggest mobile phone company failed to deduct tax at source on its acquisition of Hutchison's stake in Hutchison Essar Ltd.
08 Sept 2010;timesofindia.indiatimes.com:NEW DELHI: Petrol and diesel prices will increase marginally owing to the government revising dealer margins. Petrol price will rise by approximately 10 paise and diesel by 8 paise a litre. Accordingly, from midnight Tuesday, petrol in Delhi will cost Rs 51.53 a litre and diesel Rs 40.18. In Mumbai, petrol will cost Rs 55.98 and diesel Rs 42.06. In Kolkata, petrol will sell for Rs 55.42 and diesel Rs 40.02 per litre. In Chennai, the prices will be Rs 55.02 and Rs 40.15 for petrol and diesel respectively. The oil ministry on Tuesday cleared a proposal to raise dealer commision from Rs 1,125 per kilolitre to Rs 1,218. Similarly, dealer commission on diesel has been raised from Rs 673 a kilolitre to Rs 757. The dealers have threatened to go on an indefinite strike from September 20 demanding an upward revision and a formula for setting their commission in line with full deregulation of petrol prices and partial freeing of diesel. The government had in June raised petrol prices by Rs 3.50 a litre, diesel by Rs 2, kerosene by Rs 3 and cooking gas by Rs 35 a cylinder. While deciding on the increase, the ministerial panel on fuels had also freed up petrol pricing and said diesel prices too would be linked to market in phases.
07 Sept 2010;business-standard.com:Chennai/New Delhi: The petroleum ministry has approved part-sale of government’s stake in Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), a move that could fetch the government over Rs 24,000 crore this financial year. “The oil ministry has taken an in-principle decision. We have to go to the cabinet now,” petroleum secretary S Sundareshan told reporters today. IOC is to the first to be disinvested, where alongside the 10 per cent stake sale by the government, the company will do a follow-on public offer (FPO) of 10 per cent of expanded equity to raise close to Rs 9,000 crore for part-financing its capital expenditure. The government’s sale of its 10 per cent stake or 190 millione share in IOC will help it raise Rs 10,321 crore at today’s closing price of Rs 425.10 per share. The ONGC issue, in which the government would offload five per cent stake or 106 million shares through an FPO, will help the government raise Rs 14,438 crore at today’s closing price of Rs 1,350.10 per share. Following the stake sale, the government’s shareholding in ONGC will reduce from 74.14 to 69.14 per cent. In IOC, the twin divestment and stake sale would bring down the government holding from 78.92 per cent to 64.57 per cent. IOC chairman B M Bansal told reporters in Chennai today that, “We welcome the FPO and would like to dilute up to 10 per cent equity. The money will help our ongoing capex programme, without relying much on debt.” He said the company planned to invest around Rs 50,000 crore over the next five years towards expanding its refining and petrochemical capacities. The share prices of both these companies had appreciated in the recent past due to positive moves by the government. IOC gained due to the June 25 move to decontrol petrol prices and raise those of diesel, kerosene and LPG. For ONGC, the driving factor has been an increase in APM (administered price mechanism) gas price.
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