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Hi!I don't understand the meaning of the word "nominate" in the text below.OIL COMPANY A's nominated crude production fell by 1.0% YoY to 6.00MMT, but this was more than offset by a continuing increase in JV production, which grew by 80% YoY to 0.7MMT. The "OIL COMPANY A" is an Indian oil companyDoes it mean production solely achieved by the company (in comparison to JV)?In the table of production performance, the production is categorized into "JV" and "nominated block".I hope you can help me.Thank you!

Avangi · Accepted Answer

You may have to Google it. The question is, what is it nominated for?

I suspect it's a synonym for "designated" in this case - like the designated hitter in the American League. You have to specify in advance - name this person - name this oil production for some specific purpose.

It would relate to some rule or some law, in my opinion.

Anonymous · Answer

Thank you!

I actually googled (still am googling) a lot.. but I cannot be sure...

You said it could be a synonym for "designated" in this case. Can it be a synonym for "alloted"?

Avangi · Answer

Yes, absolutely.

Edit. I see what you mean about Google. Do you happen to have a URL for the original quote?

Edit Edit. Did you read this one??

http://business.rediff.com/interview/2010/jul/15/inter-petrol-price-deregulation-is-not-enough.htm

The C-series field has already started producing and we are working out something on the Daman offshore. We will be coming out with an announcement in the next couple of weeks.

This will be a new field from the nominated block. It is substantial but not very big.

Anonymous · Answer

Thank you very very much!

I can't give you the original quote because it is a company document which should not be made public.

But the table I mentioned is:
http://www.ongcindia.com/def1.asp?fold=headline&file=headline258.txt

(See the second table.)

If I am allow to add another question, I also want to know what "under recovery discount" means in the third table. I assume this is some kind of a subsidy?
I cannot be sure if this company is paying or being paid. (My guess is paying)

This is a company run by government.

Anonymous · Answer

I submitted my previous one before I read the "Edit Edit" part.

Thank you for the URL. So it sound right to assume "nominated" is "alloted".

The undercover part, I found
http://www.psuindia.in/psu-news/2409-omcs-losses-to-rise-on-higher-crude-oil-prices

(5th paragraph)
Companies fear the uptrend in price could add to loss incurred in selling diesel, LPG and kerosene below the market price. These losses, termed as underrecovery, have risen to Rs 1.79 a litre for diesel in the current fortnight from Rs 1.75 in the previous fortnight. For kerosene, it has increased to Rs 15 from Rs 14.83 a litre last month and Rs 188 a cylinder for LPG from Rs 158 in September.

So does it mean this company must sell crude oil cheaper than the market price because of the government regulation and the price difference is called underrecovery?

Then I'm not sure how this makes sense...
"Upstream firms had been directed to pay one-third of gross industry under-recoveries, which media reports put at ~Rs10bn. ONGC has given discounts of Rs30.2bn, which implies a share of 84% of total upstream subsidies, roughly in line with past trends."

Does the "upstream subsidies" mean the loss made by the upstream companies?

I'm confused..

Avangi · Answer

Hi, I'm still playing catch up here. I'm afraid the article I quoted doesn't really clear up the "nominated block" definition.
But I think it means that the company is allowed under some regulation to pick/choose/specifiy (nominate) some field (and/or) its production for some special treatment under the law.

I'll have to think about your other questions.

Edit.
Not being an oil man by any stretch of the imagination, I don't know if "recovery" refers to the success in obtaining the amount of oil estimated to be in the field - or something else. I don't think it could refer to the recovery of refined products from the crude.

If so, the expression "under recovery" could describe the shortfall from what was expected, using "under" as an adjective rather than a prepositon.

It's really hard to say what's being discounted. A discount is usually applied to a charge. I should think it might apply to a government tax, being discounted to compensate for the lower yield of the field. (They have to work harder to get the crude.)

I don't think a subsidy would be discounted (because of lower yield) on a per bbl basis. I'm really just guessing, but it seems backward.
Well, I guess your second ref. makes it clear that underrecovery refers to money and not oil.
I think most of these terms come under the heading of technical jargon. You can't necessarily figure them out by studying the dictionary definitions of the words used. You just have to become familiar with the way they're used in the industry.

If the upstream companies are subsidizing the losses of the drillers, those could be called "upstream subsidies."
Believe me, I'm more confused than you are. To me, the drillers are about as "upstream" as you can get. (unless the water flows upstream)

I wish I could be of more help. Clive is good at reading this sort of thing.

“We are sure that the government will try to subsidise the OMCs for underrecovery.

This quote shows how far off I've been! The OMC's have nothing to do with the field.

Anonymous · Answer

Thank you very much! Your view was very helpful!
I can't appreciate it enough!

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