Photo of Jatinder Cheema

Partner in the Projects, Energy and Natural Resources practice at the Delhi office of Cyril Amarchand Mangaldas. Jatinder has extensive experience of more than 20 years in advising project developers, investors, lenders, regulators and suppliers & contractors on diverse commercial/ transactional, litigation and arbitration issues. Jatinder is qualified to practice law in multiple jurisdictions, i.e. India, Canada and Africa. He can be reached at jay.cheema@cyrilshroff.com.

 

Fractional Deregulation - Spurring The Nuclear Doctrinaire

India is yet to come of age as far as the nuclear sector is concerned due to sustained lack of support from the International Atomic Energy Agency (“IAEA”), and exclusion from the Nuclear Non-Proliferation Treaty (“NPT”) and Nuclear Suppliers Group (“NSG”). In 2014, a few nuclear reactors like Narora, Kudankulam and Kakrapar were brought under the IAEA safeguards. However, the Additional Protocol of 2014 allowed the IAEA enhanced access to India’s facilities, but this was limited to only the reactors included under the safeguards. As a result, a majority of nuclear power plants in the country are still untapped, which has led to a bearish curve in the investment inflows in the country, on account of lack of both financial commitments and savvy technology.

Globally, the United States of America (“US”), France, Russia, South Korea and China are also among the biggest nuclear power generating countries[1]. Out of their energy pool, nuclear energy comprises of one-fifth of the energy usage for US and Russia, seventy five percent for France, thirty percent for South Korea and four percent for China.[2] For India, nuclear energy consists of three percent of its energy pool, and is predicted to rise to six percent by 2030[3].
Continue Reading Fractional Deregulation: Spurring The Nuclear Doctrinaire

Prevention of Air Pollution from Ships

The International Maritime Organization (IMO) developed the International Convention for the Prevention of Pollution from Ships (MARPOL Convention) with the aim of preventing pollution of the marine environment by ships. Regulations for the Prevention of Air Pollution from Ships are provided for in Annexure VI to the MARPOL Convention and they seek to control airborne emissions from ships by prescribing limits on emissions.

Today, the shipping sector accounts for 12% of global sulphur dioxide emissions, 13% of global nitrogen oxide emissions and 3% of global carbon emissions.[1] Shipping fuel constitutes 7% of the global transport oil demand – however, global shipping emissions account for 90% of the transport sector’s sulphur emissions.
Continue Reading Laundered Air on the High Seas- IMO 2020

City Gas Distribution Bidding - Oil and Gas Laws

In part one of this two-part blog series, we looked at the challenges and new approaches that are being devised to increase the share of natural gas in India’s energy market, including some of the challenges faced in effectively implementing the “Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks – Amendment Regulations, 2018” (2018 Amendment Regulations).

In this piece, the second part of this two-part blog, we look into how the 2018 Amendment regulations will work in practice, to provide a balance between expansion of the natural gas industry and consumer interest – while also supporting the development of the right infrastructure to ensure the smooth supply of gas.
Continue Reading City Gas Distribution: Creating Demand for India’s Energy Future – The Balancing Act

City Gas Distribution bidding - CNG

Just as the bidding closed on the 10th Round of the City Gas Distribution (CGD)[1], fundamental changes have been made to the bidding criterion to create a regime that strikes a balance between the for-profit enterprises, and public interest and accountability.

In this first part of a two-part blog series, we assess these changes and the challenges faced in meeting targets to increase the share of natural gas in India’s energy market.
Continue Reading City Gas Distribution: Creating Demand for India’s Energy Future – Changes to Support the Shift to a Gas Economy

DECOMMISSIONING OF OIL AND GAS PRODUCTION FIELDS ON HIGH SEAS

The Exploration and Production (E&P) basins usually mature in about 20-30 years. What is left after the prolonged E&P phase are the abandoned installations and wells (onland), sub-sea infrastructure, platforms, and wells (offshore). Once the hydrocarbon resources are exhausted or it becomes unviable to extract them further, the E&P project moves to an abandonment phase, and the project is decommissioned. Decommissioning ensures that the E&P installations and infrastructure are removed subsequent to their abandonment and the site is restored in an environmentally sustainable way.


Continue Reading Decommissioning Of Oil and Gas Production Fields on High Seas

LNG as transport fuel in heavy vehicles India

According to World Health Organization (WHO), seven cities in India are positioned among the most polluted cities in the world. In these circumstances, the need of the hour, among other solutions, is to switch to a cleaner and more sustainable fossil fuel, for instance, liquefied natural gas (LNG). The combustion of natural gas does not emit soot, dust or fumes, and thus it makes it one of the cleanest fossil fuels with high energy to carbon ratio.
Continue Reading LNG as Transport Fuel in India

Through this short post, we seek to examine the current downtrend in oil prices, and what it means from an Indian context. As in any downtrend, the intent ought to be to maximise opportunities and isolate effects of any threats and the author accordingly seeks to analyse how these threats may be turned into opportunities. This short piece further examines how, despite the usual market rhetoric, India could position itself to take advantage of the current downturn.

 Global Response

In the wake of the downtrend, the immediate response of global exploration and production (E&P) companies was to hold off large capital investments in new projects and capital-intensive exploration activities. These decisions now stand vindicated as barrel prices have hovered around the US$45-50 mark. Several of the big companies made retrenchments and streamlined costs across the supply chain.
Continue Reading Opportunities for India in Current Downtrend of Oil Prices

The regulatory regime governing the exploration and production of hydrocarbons in India is a complex one that has undergone a plethora of change in recent times. This post examines the many developments as well as the past discourse that has set the context for change. .

Brief Background of the Regulatory Regime Governing the Hydrocarbon Sector

In post-1991 India, regulatory reforms in the hydrocarbon sector were implemented through a royalty-cost recovery regime initially under a set of Production Sharing Contracts (PSCs) (Pre-NELP PSCs) and thereafter under the New Exploration Licensing Policy (NELP). Both regimes presented challenges for contractors as well as the Government. Cost recovery meant that the contractor would spend money upfront to explore and recover the same from the revenue generated from the block, then sharing any balance revenue, i.e. “profit”, with the Government.


Continue Reading The Search for Hydrocarbons – A Regulatory Conundrum