State-owned GAIL (India) Ltd. has extended its existing gas sale and purchase agreement with Oil India Ltd. (OIL) for another 15 years. GAIL said in a media release that the deal came into effect on July 1, 2025. Under the extended agreement, 900,000 standard cubic meters per day (31.7 million standard cubic feet per day) of natural gas will be supplied from OIL’s Bakhri Tibba Block of Rajasthan, which covers the Dandewala, Tanot and Bagi Tibba fields. “This agreement highlights the dedication of both Maharatna central public sector enterprises in production, transportation, and distribution of natural gas available from domestic gas fields demonstrating their collaborative approach to enhancing energy security and accessibility”, GAIL said.  “The sourced gas will be supplied to the state-run power plant of Rajasthan Rajya Vidyut Utpadan Nigam”, it said. GAIL owns and operates a 16,421-kilometer (10,200 miles) network of natural gas pipelines across India, transmitting over 127 million standard cubic meters per day (4.4 billion cubic feet per day) in fiscal year 2024-25, GAIL said. GAIL added it is simultaneously executing multiple pipeline projects to broaden its reach. GAIL also owns and manages a gas-based petrochemical complex at Pata, with capacities of 810 kilotons per annum (KTA) at Pata and 280 KTA at its subsidiary Brahmaputra Cracker and Polymer Ltd. GAIL also owns a liquefied natural gas (LNG) portfolio totaling 16.56 million tons per annum, representing 61 percent of India’s total LNG imports. Additionally GAIL, through its units and joint ventures, holds a significant market share in city gas distribution and is venturing into renewable energy sectors such as solar, wind and biofuels, according to the company. To contact the author, email [email protected] What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is

Naftogaz Group has signed a strategic memorandum of understanding (MoU) with Baker Hughes Co. to strengthen Ukraine’s energy sector. Naftogaz said in a media release that the two companies would explore new technical, operational, and commercial opportunities in key energy segments, including oil and gas extraction, transportation, storage, and processing, as well as geothermal projects, carbon capture technologies, and electricity generation. “Naftogaz Group is building collaboration frameworks that help Ukraine overcome wartime challenges, implement modern energy solutions, and strengthen energy independence. Baker Hughes has global expertise across the energy value chain, and we see great potential in this cooperation”, Sergii Koretskyi, Chief Executive Officer of Naftogaz, said. The collaboration will encompass a range of services and equipment vital for drilling and well construction. Additionally, Naftogaz said the cooperation targets critical advancements in environmental sustainability, focusing on solutions for emission reduction, carbon capture projects, and the development of hydrogen and geothermal energy initiatives. The partnership will also extend to enhancing digital services, automation, and analytics within operations, as well as providing specialized equipment for subsurface activities and production processes and developing software for asset management and drilling optimization. Naftogaz said that Baker Hughes signed a separate MoU with Naftogaz’s JSC Ukrtransgaz to assess the potential to leverage Baker Hughes’ gas technology equipment portfolio for underground gas storage and power generation projects in Ukraine. “Baker Hughes is committed to supporting Naftogaz Group and companies in Ukraine with its energy technology solutions portfolio and expertise. The ultimate goal of our companies is to contribute to the energy security and decarbonization of Ukraine’s energy sector and support the eventual reconstruction of the country’s economy through reliable and modern energy solutions”, Paolo Noccioni, President of Baker Hughes’ Nuovo Pignone, said. To contact the author, email [email protected] What do you think? We’d love to hear from

CNOOC Ltd. said Wednesday it had achieved another “major breakthrough” in the exploration of buried hills in the South China Sea after drilling 3,362 meters (11,030.18 feet) deep in the Weizhou 10-5 South field. The field is in the Beibu Gulf, or the Gulf of Tonkin, in waters with an average depth of 37 meters, according to CNOOC Ltd., majority-owned by the state’s China National Offshore Oil Corp. Exploration well WZ10-5S-2d showed a 211-meter oil and gas pay zone. Tests yielded a production of 165,000 cubic feet of natural gas and 400 barrels of oil per day, CNOOC Ltd. said in a press release. The well “marks a major exploration breakthrough in the metamorphic sandstone and slate buried hills offshore China”, the announcement declared. “In recent years, CNOOC Ltd. has consistently intensified theoretical innovation and tackled key technology challenges in buried hills and deep plays exploration”, commented CNOOC Ltd. chief geologist Xu Changgui. “Breakthroughs have been achieved in the exploration of Paleozoic granite and Proterozoic metamorphic sandstone and slate buried hills within the Beibu Gulf Basin. “They demonstrate the vast exploration potential in buried hills formations, drive the secondary exploration process in mature areas, and mark the commencement of large-scale exploration of buried hills in the Beibu Gulf Basin”. CNOOC Ltd. chief executive Zhou Xinhuai added, “In the future, CNOOC Ltd. will continue to intensify research on key theories and technologies for deep play exploration, to enhance research and development capabilities, advance reserves and production growth, and to ensure stable supply of oil and gas”. In March CNOOC Ltd. claimed a breakthrough in the exploration of Paleozoic granite buried hills in the Beibu Gulf through an oil and gas discovery in the Weizhou 10-5 field. Drilled to a total depth of about 4,840 meters in an area with an average

Oil fell as the dollar strengthened and traders doubted US President Donald Trump’s plan to pressure Moscow would disrupt Russian exports. West Texas Intermediate slid 0.7% to settle above $66, extending Monday’s losses. Trump told reporters the US will impose a 19% tariff on goods from Indonesia after teasing the deal earlier in the day. The dollar strengthened, making commodities priced in the currency less attractive. Trump’s plan to pressure Russia into a ceasefire with Ukraine that was released Monday didn’t directly target energy infrastructure, a decision that brought some bears off of the sidelines. The administration intends to impose 100% tariffs on Russia only if the hostilities don’t end with a deal in 50 days, allaying fears of near-term supply tightness. “Since the start of the Ukraine war, it has become evident that halting Russian oil trade by targeting Russian sellers or the numerous shippers and payment intermediaries is nearly impossible,” JPMorgan Chase & Co. analysts led by Natasha Kaneva wrote in a note. Prices briefly popped on comments by US Energy Secretary Chris Wright that the US is considering creative ways to refill the Strategic Petroleum Reserve, before resuming their decline. Futures also came under pressure as investors liquidated their positions in WTI’s so-called prompt spread ahead of the contract expiry. US crude’s prompt spread — the difference between its two nearest contracts — held steady at around $1.16 a barrel in backwardation. While that’s still a bullish pattern, with nearer-term prices above those further out, it’s notably lower than Monday’s peak of $1.49. The gauge is set to be closely followed as the market’s focus shifts back to supply. The Organization of the Petroleum Exporting Countries partly pushed back against an International Energy Agency report that Saudi Arabia’ crude production surged in June. The cartel’s figures show

Egypt is delaying some liquefied natural gas deliveries as its newest import facilities haven’t yet started operating. A small number of cargoes due to arrive in July are being rescheduled for next month, people familiar with the matter said, asking not to be identified discussing private information. The delay is not expected to be material or recurring, they said. The most populous Arab country has turned into a major LNG importer amid deteriorating domestic gas production and high consumption. Last month, Egyptian Natural Gas Holding Co. agreed on large LNG deals with suppliers including Saudi Aramco, Trafigura Group and Vitol Group, with contracts starting as soon as July and lasting as long as two and a half years. However, imports so far remain in line with recent months’ levels despite peak summer demand in the nation. Supplies have been coming in through the country’s only operational floating import terminal, the Hoegh Galleon vessel, ship-tracking data compiled by Bloomberg show.  Egypt has leased two more vessels for imports, Energos Power and Energos Eskimo. While the terminals have arrived in the country, and Egypt ordered expedited connection to the grid, they have not yet imported cargoes, according to the ship-tracking data. Both new terminals won’t be ready to receive LNG until the end of July, another person with knowledge of the matter said, as the onshore portion of the equipment is not ready yet. Egypt’s oil ministry didn’t respond to a request for comment. Egyptian Natural Gas Holding Co. declined to comment. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

China refined the most crude oil in nearly two years in June, as plants returned from seasonal maintenance to seize on better margins for fuels like diesel. Refining output rose to more than 15.2 million barrels a day, the strongest pace since September 2023, according to Bloomberg calculations based on figures released by the statistics bureau on Tuesday. Compared to June last year, volumes surged by 8.5 percent, reversing the declines seen in April and May. Improved margins and fewer idled units supported robust refining activity, with further strength expected this month as new plants come online, said Amy Sun, an analyst with GL Consulting, a think tank affiliated with Mysteel OilChem.  Diesel cracks, a measure of profitability, at independent refiners rose to nearly $18 a barrel at one point late last month, the highest since 2023, according to data tracked by consultant JLC International. Run rates at state-owned refineries soared to nearly 84 percent of capacity at end-June, the highest in more than three months, JLC’s data showed.  The refinery output is in line with the rise in crude purchases reported for June, which hit their highest level since August 2023 on a daily basis, according to Bloomberg calculations. Imports are expected to accelerate as the country adds as much as 140 million barrels of oil to replenish its Strategic Petroleum Reserves from later this year, Energy Aspects said in a note. What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.