A couple of critical data points are about to drop on the energy market, based on reports this week.
The most immediate is in the natural gas space. Where officials in India said they are set to announce pricing reforms for domestic natural gas “any day”.
The announcement comes after India’s government said previously that it is planning to reform natgas pricing in the country. Raising sales prices to encourage production.
Officials have said they will increase pricing for gas produced from “difficult fields”. Which could include deepwater offshore production, or reservoirs characterized by high pressure or temperature.
The announcement over the next few days is expected to specify exactly what sort of terms such producers will receive. Which should provide a major boost in profitability for at least some E&Ps in this part of the world.
It will be particularly interesting to see whether shale gas is included in this category and given preferential pricing. India has lately been pushing hard to advance shale exploration — and a boost in prices could make this unexpected locale one of the more attractive destinations going for shale drilling.
At the same time, the market also got some more news on another emerging oil and gas hotspot: Iran. With officials in that country finalizing a date for announcing their new and more profitable petroleum contact structure.
The new contracts will be unveiled in December at a conference in London, according to reports from local Iranian news this week. With the event expected to clarify details such as percentage ownership, production sharing, and investment regimes for new oil and gas projects.
The new contracts could be a major trigger for project activity in Iran. With the revised agreements already reportedly attracting interest from Shell, Total, BP and Eni.
Keep an eye on both of these spaces over the coming days and months.
Here’s to energizing things,
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