Vedanta To Demerge Its Business Units Into Independent 'Pure Play' Companies

• Vedanta announces demerger of diversified businesses unlocking significant value
• To create world-class sector leading companies driving next phase of growth
• Capitalizes on India and the world’s growing demand for commodities, energy and technology

Vedanta Limited, India’s largest diversified natural resources company with a significant global footprint announces its plan to demerge its business units into independent “pure play” companies to unlock value and attract big ticket investment into the expansion and growth of each of the businesses. Vedanta is committed to best-in-class ESG practices and has a strong focus on metals critical for transition to green economy.

The announcement comes at a time when India is forecast to be the fastest growing major economy for the next several years. Indianweb2 reported about Vedanta Ltd considering to separately list all or some of its businesses, in late last month. More than ninety percent of Vedanta Ltd’s profits are derived in India. Demand for commodities is expected to rise exponentially as the country continues to build a world class infrastructure and strives to achieve aggressive targets for the energy transition which is highly mineral intensive. The Government of India’s emphasis on self-reliance will provide avenues for rapid growth for Indian companies in the commodities space.

Vedanta has a unique portfolio of assets among Indian and global companies with metals and minerals - zinc, silver, lead, aluminium, chromium, copper, nickel; oil and gas; a traditional ferrous vertical including iron ore and steel; and power, including coal and renewable energy; and is now foraying into manufacturing of semiconductors and display glass. Once demerged, each independent entity will have greater freedom to grow to its potential and true value via an independent management, capital allocation and niche strategies for growth. It will also give global and Indian investors potential to invest in their preferred vertical, broadening the investor base for Vedanta assets.

In pursuit of this goal, the Vedanta Limited Board approved a pure-play, asset-owner business model that will ultimately result in six separate listed companies, namely:

• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials
• Vedanta Base Metals
• Vedanta Limited

The de-merger is planned to be a simple vertical split, for every 1 share of Vedanta Limited, the shareholders will additionally receive 1 share of each of the 5 newly listed companies.

In addition to this, we note today’s announcement from Hindustan Zinc Limited (HZL, a subsidiary of Vedanta Limited), whereby their Board announced a comprehensive review of its corporate structure for unlocking potential value and intention to create separate legal entities for undertaking the Zinc & Lead, Silver and Recycling business of HZL.

The announcement is also available on the exchange website at www.bseindia.com and www.nseindia.com and HZL website at www.hzlindia.com.

Rationale for Demerger:

Simplifies Vedanta’s corporate structure with sector focussed independent businesses.

Provides opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India’s remarkable growth story through Vedanta’s world class assets.

With listed equity and self-driven management teams, these demergers provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles and end markets.

Enables to better highlight, and for the market to more easily value, the remarkable technological advances, environmental stewardship and robust growth stories within Vedanta’s family of companies.

Anil Agarwal, Chairman of Vedanta, stated:

“This is an exciting announcement for Vedanta, and India. Our country is on an unprecedented growth trajectory which will make us the third largest economy in the world before the end of this decade. The demand for minerals, metals, oil and gas and power is going to grow very rapidly and Vedanta’s businesses are uniquely positioned to service this rising demand and reduce reliance on imports. Vedanta is also foraying into semiconductors and display glass which are of great strategic significance to India.

By demerging our business units, we believe that will unlock value and potential for faster growth in each vertical. While they all come under the larger umbrella of natural resources, each has its own market, demand and supply trends, and potential to deploy technology to raise productivity.

In line with Vedanta’s ethos, each company will continue to retain a strong commitment to the well-being of our workforce, our communities and our planet. Even as we move to new ways of running our businesses, we will remain steadfast to transform for good.”

Vedanta values remain embedded in the new entities

Vedanta Limited ranks 6th among 216 global metal and mining companies in the S&P Global Corporate Sustainability Assessment 2022. The Company aims to ensure that Vedanta DNA and focus on ESG transformation remain embedded post the unbundling exercise. These include:

The new companies will remain committed to achieving net-zero carbon emissions by 2050 and net water positivity by 2030 with the aims to spend $5 billion over the next 10 years to accelerate this transition. In the process of transitioning to net zero we already secured 1.8 GW of Renewable Energy through power delivery agreement across our group companies.

Vedanta’s digital-first approach and keen focus on advanced technologies has resulted in improved processes, strengthened cybersecurity, and easy access to information for effective decision making. Each of Vedanta's businesses has embarked on its own transformational journey towards digitalisation and innovation and these will continue.

Further information on the proposed new Entities:

Vedanta Aluminium

The Company’s Jharsuguda facility is the largest single-location aluminium smelting facility outside of China, and recently saw its capacity ramp up to 1.8 MTPA. It is accompanied by Bharat Aluminium Company Ltd. (BALCO, a 51% owned subsidiary of Vedanta Limited, taking total Group capacity to 2.4 MTPA).

In the most recent financial year ending – 31st March 2023, Vedanta Aluminium achieved its highest ever aluminium production of 2,291 kt, maintaining its place as the country’s largest supplier with c.41% market share in India among primary aluminium producers.

Vedanta Aluminium is on a path to grow production to 3 MTPA, whilst simultaneously improving its cost position to 1st quartile globally through full backward integration. Importantly, the business is growing production of green aluminium under the Restora and Restora Ultra brands and ranked 2nd in the Dow Jones sustainability index in 2022.

Vedanta Aluminium will be run by John Slaven, formerly of Alcoa and BHP.

Vedanta Oil & Gas

Vedanta’s Oil & Gas is the largest private oil, gas and sweet crude exploration and production company in India, accounting for more than a quarter of India’s domestic crude oil production. It is ideally suited to capitalise from India’s growing demand (c.50% growth anticipated by 2030). More broadly, the vision is to eventually contribute 50% to India’s total Oil and Gas production through diversifying its reserve and resources portfolio. The company’s footprint covers a total acreage of 65,000 square kilometres, with gross 2P and 2C resources in excess of 1.1 bn boe.

During FY 2023, the Company reported average gross operated production of 143 kboepd.

Vedanta Oil & Gas will be run by Steve Moore.

Vedanta Power

Vedanta Power will house the Independent Power Plants at Vedanta. Anchored by Talwandi Sabo Power Limited (TSPL, a wholly-owned subsidiary of Vedanta Limited), a 1980 MW plant based in Punjab, India, the business will also include the 600 MW Jharsugada power plant, the recently acquired 1200 MW Athena plant and the 1000 MW Meenakshi plant which is in the process of being acquired. Total capacity will therefore near 5GW post completion.

Vedanta Power is one of the largest private independent power players in India and backed by one of the world’s fastest growing power markets and a favourable political climate. 

Vedanta Power will be run by Vibhav Agarwal, currently CEO of TSPL.

Vedanta Steel and Ferrous Materials

Vedanta’s Iron Ore Business includes Iron Ore Goa, Iron Ore Karnataka, Liberia as well as VAB (Value Added Business). The company has aspirations to more than double annual iron ore production, from assets in India and Liberia to 13Mt by 2025.

This vertical will also include, ESL Steel Limited (ESL, a 95.49% owned subsidiary of Vedanta Limited), an Integrated Steel Producer, was incorporated in 2006 as a Public Limited Company with operations in Bokaro, Jharkhand, India. The company has set up a green field integrated manufacturing facility, which is currently commissioned at a capacity of 1.5 MT per annum, albeit with expansion to 3 MT per annum of hot metal capacity in progress (by mid 2024).

Vedanta Steel and Ferrous Materials will be run by Navin Jaju, currently CEO of Iron Ore.

Vedanta Base Metals

The proposed Vedanta Base Metals unit will contain a mix of strong international base metal production assets, growth projects and downstream businesses that feed directly into the supply chain for metals critical to global energy transition.

The Zinc International assets continued to ramp up production at Gamsberg mine in South Africa and achieved record production of 208kt in 2023. Black Mountain, also in South Africa, delivered significant production growth in FY23, generating 65kt on higher lead head grades and recoveries. Significant production growth is anticipated as Gamsberg Phase 2 ramps.

Vedanta’s copper business is capable of producing more than a third of India’s copper, Vedanta Copper’s assets in India consist of custom smelter, a refinery, a phosphoric acid plant, a sulphuric acid plant and a copper rod plant. The Company forecasts a resumption of production in 2024.

Vedanta Base Metals will be run by Chris Griffith, former CEO of Gold Fields and previously at Anglo American. 

Vedanta Limited 

Vedanta Limited will remain as an exciting incubator for new businesses including Vedanta’s technology verticals buttressed by the strong financial earnings of the Tier-one Hindustan Zinc assets.

The company will provide investors with the opportunity to invest in some of the world’s leading zinc production assets with a clear capital allocation policy, while benefiting from these nascent technology companies until they too are ready to be released as independent, globally significant businesses. These include Vedanta’s interests in Semiconductors and Display (offering exposure to India’s fast-growing $140bn electronics market) and Stainless Steel (Ferrochrome and Nickel). For Display manufacturing, Vedanta has finalized a technology partnership with Taiwanese firm Innolux and is also close to finalize partnership for Semiconductor manufacturing.

Hindustan Zinc Limited (HZL), a subsidiary of Vedanta Limited) is the world’s 2nd largest integrated zinc producer with a 1st quartile cost position and R&R of 460MT and mine life of 25+ years. It is also the 5th largest silver producer globally.

In HZL’s journey to achieving 1.25 mtpa MIC expansion, the final project of RD Beneficiation plant revamp is under execution at RD Mines and is on track. For further phase of expansion of Mines and Smelters, studies are under progress and results are expected in FY24.

There is a steadily growing demand for Zinc & Lead in industrial usage; Silver is a metal of the future with extensive use in emerging technologies like solar panels and electric vehicles. Recycling of metals is key to meet the future demand. In a world committed to combating climate change, the demand for recycled 'green' metal will grow exponentially.

Vedanta Limited will be run by Arun Misra, currently CEO of HZL.

Asia’s 1st Subsea Research Lab Unveiled in India, Built By MIT-World Peace University

• MIT-World Peace University breaks new ground with Asia’s first Subsea Research Lab
• To foster multi-disciplinary talent for the global oil and gas industry

MIT-World Peace University, an esteemed institution of higher education in India with over 40 years of rich legacy has built the first-ever Subsea Research Lab in Asia, called the Centre for Subsea Engineering Research (CSER). This ground-breaking initiative, in partnership with Aker Solutions, showcases a working prototype of deep-water offshore petroleum operations, revolutionizing the way in which future workforce can be trained for the energy sector. The state-of-the-art laboratory is the brainchild of the Department of Petroleum Engineering (PE) at MIT-WPU, a pioneering institution in the field of energy and the second-oldest school engaged in imparting Petroleum Engineering education in India.

The Subsea laboratory has a vast range of applications, including hands-on academic curriculum experiments for petroleum engineering UG and PG students, joint professional training programs with industry experts in subsea and Industrial Safety and Health Engineering (ISHE), subsea engineering awareness programs and tours for college and school students as well as industry professionals. The facility also provides hands-on training using real-time drilling and well control systems for drilling and well control simulation experiments. It is an all-encompassing resource for those seeking to enhance their knowledge and skills in subsea engineering. The lab further intends to collaborate with industry and government, both on the national as well as international front, for initiating joint research projects, which can lead to knowledge generation and enhancing the energy security of our country.

MIT-WPU - Subsea Research Lab

Dr. Samarth Patwardhan serves as a Professor in Petroleum Engineering, as well as the Director of Research and Development at the university, also heads the lab. He commented, "At MIT World Peace University's School of Petroleum Engineering, we strive to empower our students with the knowledge and skills necessary to thrive in the energy industry. With the launch of the Subsea Research Lab, we are taking a significant step towards achieving our goal of providing real-world, cutting-edge training and education to our students. We are confident that this state-of-the-art facility will not only benefit our students, but also the industry as a whole, by producing highly skilled and competent professionals who are ready to tackle the challenges of tomorrow."

Parag Paranajape, Manager Systems Engineering, Aker Solutions, further added, “As we witness the steady growth of subsea oil and gas development on a global scale, there is an urgent need for skilled professionals who can meet the demand of this dynamic industry. Our partnership with MIT-WPU is a significant step towards addressing this skill gap and nurturing diverse skill sets across multiple disciplines to support the needs of the global oil and gas industry. By introducing subsea engineering as a subject and supporting the development of subsea knowledge and skills, we are confident that we can make a meaningful contribution to the growth and success of this industry."

Aker Solutions has supported MIT-WPU on this project from concept to completion including the laboratory's design, procurement, fabrication, installations, assembly, and equipment testing. Aker Solutions is also actively involved in the commissioning of the project and its working modules. A combined group of MIT-WPU faculty members, students, and Aker Solutions engineers have conceptualized the laboratory's experiments on well performance and remote operating vehicles.

About MIT-WPU

With a rich legacy of 40 years in fostering world-class academic excellence and over 1,00,000+ alumni across the globe, MIT-WPU is one of the premier institutions of higher learning in India that offers over 150 programmes at undergraduate, postgraduate, diploma and PhD levels. It is also known for its prolific placements and career support provided to the students. Spread over 65 acres, MIT-WPU is equipped with state-of-the-art infrastructure and facilities. Over 8,000 students enrol every year for different courses, across the 11+ Schools & 30+ departments of MIT-WPU.

To know more, visit: https://bit.ly/3XQN2Gn

Why You Should Compare Business Gas Prices Regularly

Ensuring a smooth-running business requires the careful management of finances. For business owners, maintaining operational costs at a minimal amount can be challenging while remaining profitable. One factor contributing to these expenses is the cost of gas. Gas is essential for businesses that rely on vehicles, machinery, or heat to operate. As a result, it's crucial for business owners to keep an eye on their gas expenses to save money and remain competitive. Comparing business gas prices regularly is not just a smart financial move but an essential one. Failure to do so can result in higher expenses and a reduction in profits.

In this blog post, we'll discuss why you should compare business gas prices regularly and the benefits it offers. For more on gas price comparison, read more here...

1. To ensure you are getting the best possible gas rate

One key reason why you should compare business gas prices regularly is to ensure you are getting the best possible gas rate for your company. By taking the time to research and compare gas rates from different providers, you can make an informed decision about which supplier is offering the most competitive prices for your business. Additionally, gas rates can fluctuate over time, so it’s important to regularly check for any changes that could impact your business’s bottom line. By regularly comparing gas prices, you can stay ahead of these fluctuations and secure the best possible rate for your business.

2. To ensure you are not overpaying for gas

One of the top reasons why you should compare business gas prices regularly is to ensure that you are not overpaying for your gas bills. Gas prices can fluctuate frequently, and what seemed like a good deal last year may not be the best option now. By regularly comparing prices and switching to a supplier with a better deal, you can easily save money on your gas bills over time. This is especially important for businesses that use a significant amount of gas, as even small savings can quickly add up to significant amounts on an annual basis.

3. To identify the best deals available

Gas prices can fluctuate frequently, and suppliers often offer differing rates, making it essential for businesses to stay informed about the current market prices. By using a comparison service, businesses can quickly and easily compare prices from multiple suppliers, enabling them to identify the best deals on offer. This can save businesses a significant amount of money in the long term by ensuring they obtain the most competitive rates for their gas supply. Moreover, regularly comparing prices can help businesses stay ahead of the curve and ensure they are not paying more than they need to for their gas supply requirements.

4. To adjust your budget accordingly

Utility prices, including gas prices, are subject to volatility and can fluctuate throughout the year, affecting your business’s bottom line. By staying up-to-date on gas prices and comparing them to your current rates and usage, you can make informed decisions about your budget and potentially switch to a better deal if one is available. This can ultimately help you save money and improve your overall financial stability.

5. To take advantage of seasonal variations in pricing

One of the top reasons why businesses should compare gas prices regularly is to take advantage of seasonal variations in pricing. Gas prices tend to fluctuate based on the time of year, with prices often rising during peak demand seasons such as winter. By keeping an eye on these seasonal changes and adjusting your energy contracts accordingly, you can save money on your business's energy bills. For example, locking in a low fixed-rate contract during the summer months can help you avoid the higher prices that are often charged during the winter heating season. Similarly, renegotiating your contract when prices drop can help you secure a competitive rate and potentially save your business hundreds or thousands of dollars in energy costs throughout the year.

6. To plan for future gas needs

One key reason that businesses should regularly compare gas prices is to plan for their future gas needs. By keeping a close eye on gas prices and fluctuations in the market, companies can strategically plan when to purchase gas for their operations. This not only helps them avoid unexpected spikes in prices, but also allows them to budget and allocate resources more effectively. Moreover, regularly comparing prices reduces the risk of being caught off guard by sudden demand increases, unexpected weather-related shortages or geopolitical events that can greatly impact prices.

7. To maximize your savings

Comparing business gas prices regularly is essential to maximize your savings. Gas prices are not static, they fluctuate based on a variety of factors such as market conditions, seasonality, and geopolitical events. Sticking with the same provider means that you may not be getting the most competitive rates available on the market. By comparing business gas prices regularly, you can identify the suppliers that offer the most cost-effective rates for your needs. You can also evaluate various options and select a provider that provides the best value for money. Additionally, switching to a new supplier can also lead to exclusive discounts or special offers, which can result in significant savings over the long run.

8. To ensure you are getting the highest quality of service for the best rate

Comparing business gas prices regularly can ultimately help you ensure that you are getting the highest quality of service for the best rate. With so many gas providers in the market offering varying rates, it can be hard to know which provider is offering the most competitive deals. By regularly comparing gas prices and switching providers when necessary, businesses can save a significant amount of money over time. This can help companies to free up cash flow to invest in other areas of their business. In addition to saving money, businesses can also benefit from improved customer service, with many providers offering additional support and services to retain their customers.

In conclusion, comparing business gas prices regularly should be a top priority for any business owner who wants to save money and remain competitive. Conducting regular price comparisons can help you identify cheaper suppliers, negotiate better deals with your current provider, and ensure that you're not overpaying for gas. By taking the time to shop around, you can lower your energy bills and free up funds for other business priorities. So don't hesitate to start comparing prices today and make sure you're getting the best deal possible on your business gas.

Seros Group Forays into Energy Sector with the Launch of Seros Energy

Seros Energy intends to make Oil and Gas Industry Atmanirbhar

Seros has been providing world class services in diverse fields. They have recently announced its foray into the Energy sector with Seros Energy. This marks the company’s expansion and diversification into another sector after successfully establishing its footprints in Maritime, Offshore and Logistics.

Seros Energy will be recognized as one of the largest home grown contract drilling services providers in India that enables Oil & Gas discovery and production enhancement, owning and operating a diversified fleet of Rigs. It has an extensive presence across the nation with a growing list of oil majors, PSUs and private players as its clients. The company owns and operates a diversified fleet of Land Rigs & Mobile Rigs with capacities ranging from 250 HP to 2000 HP.

Delighted with the announcement, Ashish Agarwal, MD of Seros Energy said, “We are thrilled to have achieved this milestone of launching another pillar of success. With years of experience and expertise, we have a combined vision of taking Seros to reach new heights. We are excited to work on new business opportunities with Seros Energy and look forward to contributing towards our Nation’s effort to achieve Energy independence. I am proud that Seros is able to contribute to The Hon. PM’s vision of #AtmanirbharBharat. The journey has just begun, exciting times ahead!

In a short span Seros has also developed a portfolio of Well Services - providing an array of services including Cementing, Coiled Tubing and Nitrogen Services & Hydro fracturing

For a long time hydraulic fracturing & Coiled tubing technologies have been dominated by international companies. We are proud to share that Seros became the first Indian service provider to deploy and execute hydraulic fracturing, Nitrogen and Coiled Tubing services for a rapid operation.

Devashish Marwah, CEO well services said “This is a significant achievement in the history of the Indian oil & gas sector. We are committed to developing the capability of providing the complete array of well services. We are an agile organisation having the flexibility to associate with direct operators as well as major service players in the industry to add value to their operations”

The company aims to become a dependable IPM contractor and work with Oil Majors across.

About Seros Energy

Seros Energy is a contract drilling services provider. With an international presence, it provides customized drilling solutions to an esteemed list of clients that include international oil majors, PSUs, and private players. The company owns and operates diversified feet of Land Rigs with capacities ranging from 250 HP to 2000 HP.

Adani Gas Reduces Prices of CNG and Domestic PNG w.e.f. 09th April 2020

Adani Gas Ltd. (AGL), the city gas distribution business of the Adani Group, is pleased to announce the reduction in the prices of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (PNG) across its various geographical areas with effect from 09th April 2020

The reduction in CNG prices is Rs 3.60 per kg in Mahendragarh geographical area in Haryana. In Faridabad and Khurja areas the reduction is Rs 2.75 Rs per kg, whereas reduction in Ahmedabad/ Vadodara areas in Gujarat is Rs 2.25 per kg. 

The reduction in Domestic PNG prices is Rs 1.0 per SCM across all our Geographical Areas. 

The details regarding the quantum of reduction in the CNG and Domestic PNG prices as well as our revised prices are given in the following table. All prices mentioned are inclusive of taxes. 

In addition to the reduction in the Domestic PNG prices, our consumers shall continue to have better convenience, increased digital payment facilities, safety, reliability of uninterrupted PNG supplies on 24*7 basis.



With the reduction in our already attractive CNG prices, our consumers shall now accrue much higher savings as compared to petrol and diesel (up to 50 % savings over petrol in some Geographical Areas). This will encourage all residents in our geographical areas to convert their vehicles to environmentally friendly CNG and contribute to reducing our carbon footprint. 

We hope that you continue to stay safe and healthy and enjoy contact-less Domestic PNG services of Adani Gas Limited with superior convenience and reliability even in these challenging times. 

About Adani Gas

Adani Gas Ltd is developing and operating City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to industrial, commercial and domestic (residential) customers and Compressed Natural Gas (CNG) to the transport sector. Natural Gas is a convenient, reliable and environment friendly fuel that allows consumers to enjoy a highlevel of safety, convenience and economic efficiency. Headquartered in Ahmedabad, India, the company has already set up city gas distribution networks in Ahmedabad, Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh.  Additionally, AGL has commenced Commercial Operations in several GA’s allotted under the 9thand 10thROUND of CGD Bidding by the PNGRB namely Porbandar, Kheda, Surendranagar, Barwala, Navsari in Gujarat, Udaipur in Rajasthan, Bhind in Madhya Pradesh, Jhansi in Uttar Pradesh  and Palwal in Haryana.

In addition, our joint venture company IOAGPL has already commenced its Commercial operations in the cities of Prayagraj, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, Udhamsingh Nagar and Bulandsahar.

Bharat Petroleum Develops Novel Technology to Test Crude Oil Quality

The country's second largest national oil marketer Bharat Petroleum Corp Ltd has developed a novel technology to test the quality of crude oil at a fraction of the cost and time that it takes now through the lengthy lab tests.

The technology, which has a number of patents including those from the US and the EU, is a 'crude horoscope predictor tool' called BPMarrk, which can optimise varied properties from the crude.

The company is also in talks with leading international players in the crude assaying industry like Aspen, the largest in the segment, Honeywell, and Emerson, R Ramachandran, Director (Refineries), at BPCL said.

"The traditional way of assaying takes 30-45 days for a complete testing and the cost averages at Rs 25 lakh. But the BPMarrk takes around 30 minutes for a four-stage test. We can offer it at a fraction of the present cost but we haven't decided on the pricing part yet," he told PTI.

Ramachandran also said the company is planning to use the technology as an advance control product for product optimisation and is going to apply for patents for this as well.

On talks with American bodies, he said, "we have made presentations to Aspen, Emerson and Honeywell but no deal has been finalised yet".

BPCL has been developing the technology since FY16 and reached commercial production stage two years ago.

Since then, it has made a detailed presentation to the American Petroleum Institute which is the global body that codifies the testing standards for the industry. The institute was keen to develop this tool as an alternate standard, provided BPCL shared the entire details, but the company refused, a source at the company said.

A salient and industry-friendly use of the tool is that it can help update the crude assays of oil wells wherein the properties get changed with ageing, according to Ramachandran.

"Gone are the days of lengthy laboratory tests called assaying for crude. The R&D team of Bharat Petroleum has developed a crude horoscope predictor tool called 'BPMarrk' to correctly predict crude oil properties," he said.

Describing their innovation as a game-changer, Ramachandran said BPMarrk can predict around 500 properties of any crude using four parameters and can help generate the output within an hour compared to the other conventional processes which require three-four weeks of laboratory testing.

The tool has been built by testing more than 100 types of crudes from different regions.

This universal tool can be used by multiple stakeholders across the crude value-chain for fast business and operational decisions related to crude buying/ booking and price negotiations.

BPMarrk can also enable oil suppliers, international trades and supply-chain optimisation for advanced planning, crude selection and also for process engineers for unit-level optimisation of refinery operations.

BPCL is in the process of partnering with a leading international consultant for real-time optimisation.

The development could be highly useful for small downstream players like domestic companies and standalone refiners, given the fact that industry majors like Aramco, Exxon, Shell, Total or BP would have their own independent tools to do faster assaying as they are all into the entire value chain of the oil and gas sector, say analysts. PTI BEN

ONGC Launches Rs 100 Cr Startup Fund to Ignite New Ideas

Oil and Natural Gas Corporation Limited (ONGC) has launched a Rs 100 crore Start-up fund on its Diamond Jubilee year to foster, nurture and incubate new ideas related to oil and gas sector. The initiative, christened as ‘ONGC Start-up’, is in line with the Govt. of India’s initiative ‘Start-up India’.

As part of this initiative, ONGC will provide the entire support chain for start-ups including seed capital, hand-holding, mentoring, market linkage and follow-ups. The aim of ‘ONGC Start-up’ is to increase the contribution of fresh implementable ideas in the oil and gas sector. ONGC is setting up a dedicated website to take this initiative forward.

After launching this initiative on 14 August 2016 at Dehradun, ONGC CMD Mr. Dinesh K Sarraf, said that this initiative will promote entrepreneurship among the younger Indians by creating an ecosystem that is conducive for growth of Start-ups in the oil & gas sector, which has a huge potential for technology-enabled ideas.

He added that the Oil & Gas sector is contributing enormously to the growth of economy. Currently, the sector faces various critical challenges and new ideas are required to mitigate those challenges.

To encourage its own employees to innovate, ONGC is also giving away awards to its three young officers for their innovative ideas. Rajendra Bhambhu and Deepak Naik have developed an innovative Safety Device for rigs that facilitates setting up of emergency brake to augment safety mechanism on drilling rigs. Prajesh Chopra has innovated a unique Dual SIM Cellular Router System that provides Data Connectivity at Work-over Rigs. This system curtails the hassle of frequent dismantling and reinstallation during rig transportation, thus saving time and money.

According to data released by the Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted FDI worth $6.67 billion between April 2000 and March 2016. The oil and gas sector is among the six core industries in India and accounts for 5.5% of the total global trade. The country’s gas production is expected to touch 90 billion Cubic Metres (BCM) in 2040 from 35 BCM in 2013.

In March 2016, ONGC Videsh Ltd (OVL), the foreign arm of ONGC, planned to acquire up to 15% stake in CSJC Vankorneft, which owns Russia’s second-largest oil and gas field.