Reliance Industries Ltd has firmed up investment plans to the tune of `10,000 crore in West Bengal. A part of these proposals are already under implementation, its Chairman Mukesh Ambani said. Aramco in talks with RIL to invest in India. The world’s largest oil exporter, Saudi Aram co, said it was in talks with Reliance Industries Ltd (RIL) and other companies to invest in India’s petrochemical and oil refinery sectors. This is in addition to the $44 billion Ratnagiri refinery in Maharashtra, for which Saudi Aramco and UAE’s Adnoc are partnering with Indian oil marketing companies (OMC) such as Indian oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. Mangalore Refinery and Petrochemicals reported a net loss of Rs 268 crore in December quarter 2018 after refinery margins turned negative. The company logged a profit of Rs 970 crore in October-December 2017-18, as per a company statement. HPCL receives Govt directive to recognize ONGC as PETCHEM BUZZ Issue: CPMA/014/2019 February 2019 Monthly Newsletter from 1 | February 2019 Crude oil futures stable as markets await US-China trade developments. Crude oil futures were largely stable as markets were waiting for latest developments around the US-China trade dispute, while bullish supply side data kept prices supported. Asia petrochemicals outlook with markets reopening this week after the Lunar New Year holidays, participants in most markets are anticipating restocking activity will spur a price uptick, although high inventory levels of some products could lead to pockets of selling interest. BPCL –Kochi Refinery’s second petrochemical project to start in 2022. The first petrochemical project of BPCL-KR constructed at a cost of Rs.5, 500 crore is all set to commence operations by the middle of the year. The Rs.11, 300-cr unit will produce polyols a raw material for a wide range of products. BPCL-Kochi Refinery is going ahead with its second petrochemical project to produce polyols at an investment of Rs.11, 300 crore. An import substitute polyols are used in the production of polyurethanes used in diverse products such as automotive seats, mattresses and shoe soles. Saudi Prince sees investments worth over $100 billion in India. Oil rich Saudi Arabia sees an investment opportunity of $100 billion in India in various sectors, said visiting Crown Prince Mohammed Bin Salman to India. Addressing the media along with Prime Minister Narendra Modi in New Delhi, the crown price said Saudi Arabia has already invested $44 billion in India since the visit of Modi in 2016 to the Gulf nation. “We understand that there are opportunities for more than $100 billion investment in India. We want to strengthen investment and economic ties to ensure useful returns for both countries.” Govt clears reform to enhance domestic oil & gas exploration. The Union Government decided to offer the private sector bigger oil and gas areas that belong to its companies Oil and Natural Gas Corporation and Oil India on relaxed conditions. To enhance production from existing nomination fields of ONGC and Oil, enhanced production profile will be prepared by both PSUs. For production enhancement, bringing new technology, and capital, national oil companies will be allowed to induct private sector partners, said a government press release. IOC inks $1.5bn deal to buy US crude oil. In the first ever deal by an Indian company, Indian oil corporation(IOC) said it has signed an annual deal worth $1.5 billion to import three million tonnes of crude oil in the financial year beginning April Industry Snippets continued on page 2 Member Companies in the News CPMA Q3 GDP growth numbers were announced on 28th Feb 2019. The media reported …. “India’s GDP growth has slipped to 6.6 per cent in the third quarter of FY19. The economy had grown 7.1% in the second quarter and 8.2% in the first quarter, logging 7.6% for the first half” Let’s look at the absolute numbers of GDP as published on MOSPI website. The GDP for last three quarters on the website is (In Rs lac Crs) is 34.16, 34.41 and 35.00 respectively. This gives quarterly growth as 8.02%, 6.96 % and 6.55 %. Minor variations are coming as there is some variation in quarterly numbers as reported at Q2 end vs Q3 end. 2018-19 GDP was Rs 1317 Lac crs. To achieve 7.2% growth (Govt Estimates) for 2019-19, India has to achieve GDP of Rs 37.71 Lac crs in Q4 which comes to 7.74 % growth for Q4. Commentary for the month Oil is showing some signs of easing after a round of disappointing economic data out from China and the US fuelled concerns about the outlook for the global economy and demand for crude this year. The sharp downward moves is after effect of China’s lower exports. China exports sank 20.7 per cent in February from a year earlier. The figure marks the steepest year-on-year decline in three years and underscores how Beijing’s ongoing trade war with Washington is taking its toll on the economy. This was followed by a US jobs report that showed hiring nearly grinding to a halt in February, in the latest sign that the world’s most important economy may be slowing down more quickly than anticipated. On top of this US continues to pump oil at a record pace. The country’s crude production hit a fresh record of 12.1m barrels a day last month and is on track to surpass 13m barrels a day in March 2020, according to the EIA. A comforting fact is that both Brent and WTI are up 20 per cent since the start of the year and remain comfortably above the nadir reached in the wake of the dramatic sell-off in the last three months of 2018. On the other hand OPEC is trying hold the crude oil prices by cutting of supplies. Crude oil exports from OPEC member countries are on course to fall to the lowest level for four years in February, helping propel oil prices back above $65 a barrel. continued on page 2