21.06.2002 | FridayPetroChina, Shell to sign accord soon
Chinese oil major PetroChina is expected to sign a deal with a Shell-led consortium for a 0 billion gas pipeline this month and start construction in early July, industry officials said yesterday.
Новость: The agreement, aiming at setting up a joint venture between PetroChina and the consortium led by Royal/Dutch Shell to build a 4,000 km pipeline, would also include cooperation in production and sales, they said. The planned pipeline from the northwestern region of Xinjiang to the eastern city of Shanghai would move 12 billion cubic metres of gas a year. A PetroChina official said in May the Chinese firm had agreed in principle to let Shell operate the Kela-2 gas field and four other condensate fields in Xinjiang for the first two years of operation. The Shell consortium, which will take a 45 per cent stake in the pipeline project, also includes Russian firms Gazprom and Stroytransgaz and Hong Kong & China Gas Co Ltd. ExxonMobil was in talks with Shell to join the consortium and was likely to sign a pact soon, officials said. We hope to join the consortium as a equal status partner, a Exxonmobil official told Reuters. PetroChina began trial construction of the pipeline in February in delicate wetlands and on crossings for the Yangtze, Yellow and Huai rivers. The first gas is scheduled to arrive in Shanghai in early 2004 from the Changqing field in the northern province of Shaanxi. Changqing, Chinas largest gasfield, has proven gas reserves of the 750 billion cubic metres. (Gulf News)
20.06.2002 | ThursdayStatoil gas supply deal could foster more Norway-UK pipelines
A recently inked natural gas supply contract between Norways Statoil ASA and Centrica PLC unit British Gas Trading Ltd. could serve as a driver for the construction of additional gas transmission pipelines from Norway into the UK.
Новость: Earlier this month, Statoil and British Gas Trading signed a gas sales contract for the supply of 5 billion cu m/year of gas. The 10-year supply deal is set to commence in October 2005. The sale, which would mark Statoils biggest (based on annual volumes) since its Troll gas sales agreement in 1986, secures a good commercial outlet for Statoils gas and is therefore key to the future development of new gas fields off Norway to increase supplies into Europe, said Peter Mellbye, executive vice-president of the companys natural gas business segment. The deal is still pending approval by Statoils board. Presently, Mellbye noted, there is a single pipeline transporting gas from the gas supply infrastructure on the Norwegian Continental Shelf to the UK. Mellbye added that Statoil is currently evaluating several possibilities for more links to increase capacity for transporting gas into the UK. Statoil also supplies natural gas to continental Europe via five pipelines, Mellbye said. Last year, Statoil signed a similar gas supply contract for 15-years to supply BP PLC with 1.6 billion cu m/year of natural gas. The volumes of gas for this most recent deal will be delivered at the National Balancing Point, the UKs notional gas trading point, Statoil said. (Oil & Gas Journal)
18.06.2002 | TuesdaySTATOIL TO EXPAND METHANOL MARKET TO NORTH AMERICA
Norwegian oil company Statoil announced last week it will begin selling methanol to the U.S. and Canada, beginning in the fall.
Новость: The company, which has signed a long-term lease agreement with Vopak Terminals of Canada to provide methanol storage in Montreal and Shelton, Conn.-based Ameritx in the U.S., said it has increased output over the last several years and wanted to position itself to help the North American markets. The company is one of Europes largest methanol producers and marketers, producing 870,000 tons/yr at its Tjeldbergodden plant in mid-Norway. Jan Wahlqvist, company vice president for methanol marketing, assured that the plant can continue to supply its European markets, while expanding its North American market. (Hoover's Online)
17.06.2002 | MondayChina, Russia Makes Progress in Talks over Oil, Gas Projects
Ma Fucai, general manager of the China National Petroleum Corporation (CNPC), the countrys State-owned oil and gas giant, and Russian Deputy Prime Minister Viktor Borisovich Khristenko made progress in their talks on oil and gas projects, sources say.
Новость: The detailed talks covered joint oil and gas exploration and development in Russia, Russias involvement in Chinas gigantic project to transmit natural gas from Chinas west to its east, an oil pipeline project to transmit oil from Russias Angarsk to northeast Chinas Daqing, and a project to transmit gas from Siberia to northeast China. Both sides reached consensus on some key issues and conferred on specific and detailed matters. And the talks lasted about one hour. Some high-ranking Russian officials in charge of foreign trade and energy, representatives from two Russian oil and natural gas firms, and Chinese foreign trade officials were among those present at the talks. The CNPC controls all oil and gas fields, oil refineries and petrochemical enterprises in 12 provinces, autonomous region and municipalities mainly in northern and western China. (OIL)
14.06.2002 | FridayOil giants may bid for Greenland licences
A number of the worlds oil giants are expected to bid for licences in search for oil off the unexplored Greenland west coast.
Новость: One month ahead of the closing for bids, industry sources say that Shell and French TotalFinaElf have strong interests in the arctic island, which including the Canadian waters in Davis Strait is seen holding oil reserves equivalent to the North Sea. Both companies declined to comment. Houston-based Conoco Oil and a couple of middle-sized oil companies are also named as likely bidders. Greenland will grant new licences for oil exploration by the end of 2002 in a second licensing round after a failed attempt 10 years ago, hoping that future oil finds will make the island less dependent on income from halibuts and grants from the Danish state, under which it enjoys limited home rule. From what we know now, the regional geology allows the possibility of significant oil and gas accumulations, said Donald Gautier at U.S. Geological Survey. Exploration in the waters off the worlds largest island is an expensive and complicated task due to the arctic climate and extreme water depths. But myths of the danger of floating icebergs are exaggerated, experts say. In 2000, 60 icebergs were towed away from a security zone around a drilling vessel, causing a one day delay, while other technical problems postponed the drilling by 26 days. Oil exploration in Greenland started in the 1970s and so far seven drillings have taken place compared to more than 3,000 in the North Sea. Two have proved the presence of hydrocarbons. We scent a broad interest among oil companies. People call and ask technical questions, but we do not dare to guess about the number of applications, said head of Greenlands bureau of minerals and petroleum, Hans Kristian Schoenwandt. Greenlands coming three to five year oil strategy is expected to be concluded early next year and will be based on the outcome of the licensing round. Norways Statoil and Phillips are still looking at Greenland despite recent dry drillings on Greenlands offshore Fylla and Sisimiut licences, which were returned earlier this year. Greenland is still interesting, but at present our plate is full, Statoil spokesman Kaj Nielsen said. Phillips, planning to merge with Conoco Oil later this year, declined to comment. BHP Billiton and Italian Agip could join the party later. (Gulf News)
13.06.2002 | ThursdayStatoil Participates In Snohvit LNG Carrier Company
Two new companies have been created with Statoil participation to own and operate two liquefied natural gas carriers which will transport LNG from the groups Snohvit field in the Barents Sea.
Новость: Called Northern LNG Transport Co I Ltd and Northern LNG Transport Co II Ltd, these companies are owned with Japans Kawasaki Kisen Kaisa, Mitsui & Co Ltd and Iino Kaiun Kaisa Ltd. The vessels will be built at Mitsui Engineering and Shipbuilding and Kawasaki Heavy Industries, both in Japan, with delivery in November 2005 and April 2006 respectively. They have been chartered for 20 years by Statoil together with fellow Snohvit licensees Norsk Hydro, Amerada Hess, RWE-DEA, Svenska Petroleum and Petoro. Statoils share in the two new companies corresponds to its need for transport capacity to lift its share of Snohvit gas - in other words, about 32 percent. The group has previously exercised an option for a third carrier, in which it will have a similar stake. Its co-owners in this vessel are Leif Hoegh & Co Shipping of Norway and Mitsui OSK Lines. These holdings reflect our desire to follow the Snohvit gas along the value chain all the way to the customer, explains Otto Granli, vice president for gas sales and shipment in the project. (RIGZONE)
07.06.2002 | FridayNorsk Hydro Begins Production from Vale Field
The Vale gas condensate field in the Norwegian sector of the North Sea started producing in line with the Plan for Development and Operation approved by the authorities in spring 2001.
Новость: Vale has estimated reserves of approximately 2.5 billion cubic meters of natural gas and 21 million barrels of gas condensate. The plan calls for approximately 1.6 million cubic meters of gas and 2,600 cubic meters (16,500 barrels) of condensate to be produced daily via the nearby Heimdal Gas Center. Vale is a satellite field development and consists of a subsea template with well slots and a 16 kilometer long pipeline to the Heimdal Center. Total investments came to about NOK 800 million (US 00 million), including modifications on Heimdal, drilling, the subsea template and pipelines. Norsk Hydro is the operator and has a 28.53 percent stake in Vale. Other owners include Marathon (46.90 percent), TotalFinaElf (24.24 percent) and Ugland (0.32 percent). (RIGZONE)
05.06.2002 | WednesdayCampaigners promise Barents gas battle
Environmental campaigners are vowing to continue their fight against a major gas field development in the Barents Sea, which has won official approval.
Новость: Norways state-owned energy group Statoil has been given the go-ahead for the .8bn project, called Snow White. It will be the first commercial exploration of fossil fuel in the Barents region, and Europes first offshore liquefied natural gas (LNG) project. Snow White had been in danger of falling apart after environmental organisations last December said the project was benefiting from illegal state aid. The northernmost parts of Norway routinely enjoy tax breaks as part of a policy to maintain the districts. The European Free Trade Areas surveillance authority, ESA, forced the Norwegian Government to restrict the state aid so as not to break EFTA free trade regulations. But illegal tax breaks were not the main agenda of the environmental organisations. They have long sounded alarm bells against any exploration of fossil fuel in the Arctic, arguing the area is too fragile. (BBC News)
04.06.2002 | TuesdayRussias gas monopoly Gazprom appoints new chief of troubled chemical giant Sibur
Russias natural gas monopoly Gazprom on Monday appointed a top privatization official, Dmitry Mazepin, as president of its bankrupt petrochemical subsidiary Sibur, after his predecessor was charged with embezzlement.
Новость: Gazprom forced Sibur into bankruptcy to secure repayment of 20 billion rubles (dlrs 655 million) of debt it owed Gazprom, and to reassert managerial control. The former heads of Siburs management were arrested earlier this year pending investigations of fraud. Sibur owns a string of gas processing plants across Russia and controls many of the gateways to Russias gas pipeline system. It is a key part of the infrastructure of the Russian gas industry. Gazprom is Russias largest company and is 38-percent owned by the state. President Vladimir Putin installed ally Alexei Miller as Gazproms chief executive last year to clean up its finances amid reports of insider dealing and other alleged wrongdoing by its management. Mazepin is first deputy head of the governments Federal Property Fund. (Chemical Online)
30.05.2002 | ThursdayStatoil is Offering Interests in 32 Offshore Licenses
Interests in 32 Norwegian offshore licenses are to be sold or swapped by Statoil in order to concentrate the groups operations on its core areas.
Новость: Detailed information on the respective holdings will be made available to the market in June, with August 30th as the deadline for bids. Agreements are expected to be concluded by October 1st in this Pegasus exploration opportunities (Pegex) project, which covers interests in the North, Norwegian and Barents Seas. We acquired holdings in a number of licenses outside our core areas from the states direct financial interest, explains Henrik Carlsen, executive vice president for Exploration & Production Norway. At the same time, we have a relatively large stake in certain licenses. Selling or swapping some of these interests will achieve an adjustment to Statoils holdings which forms part of its overall commercial strategy, he explains. In addition to concentrating on existing core areas, well also work to establish new ones. The Norwegian and Barents Seas appear most promising in that context. Statoil currently has holdings in 123 Norwegian offshore licenses.(Rigzone)
23.05.2002 | ThursdaySpire Opens New Solar Plant
The U.S. solar power industry continued to advance this
Новость: Spire Corporation announced in early May the opening of its Spire Solar Chicago manufacturing plant, located in the new Chicago Center for Green Technology (CCGT). The 14,000- square-foot facility incorporates photovoltaic module manufacturing along with office space and will eventually employ about 55 people. Spire Solar Chicago has already installed about 500 kilowatts of solar power within the city, including a 38-kilowatt installation on Chicagos 911 Emergency Communications Center early this year. The company has also installed 35 kilowatts of solar power on the CCGT, and has signed a multi-year extension of its partnership with the City of Chicago. (EREN)
21.05.2002 | TuesdayRussia To End OPEC Deal To Curb Crude-Oil Exports
As President George W. Bush and Russian President Vladimir Putin prepare to meet in Moscow this week, Russia has offered a token gift to the U.S. by announcing it will abandon its deal with the Organization of Petroleum Exporting Countries to restrict
Новость: Moscows decision did little more than formalize its recent behavior, since analysts and traders say Russia has been ignoring its pledge to OPEC by shipping record volumes of crude-oil exports. Im not sure [the decision] makes any real fundamental difference to the oil market, said Stephen OSullivan, an analyst with United Financial Group in Moscow. Everyone looking at the market knows that Russia hasnt been sticking to its word. U.S. officials have lobbied for oil prices within a range of 8 to 5 a barrel (19.6 euros to 27.2 euros), saying higher prices could stall a recovery in the global economy. Mr. Putin has helped raise Russias political profile since Sept. 11 by promising to continue delivering steady supplies of Siberian oil to the West at a time of volatility in the Middle East. Russian oil companies, meanwhile, have sharply boosted production during the past two years and are keen to recapture the market share they lost when the Soviet oil sector collapsed in 1991. According to the International Energy Agency, exports from the former Soviet Union have been growing steadily for months, rising by an estimated 130,000 barrels a day in April to 5.36 million barrels a day. The IEA doesnt break out separate export numbers for Russia, but Russia is by far the biggest exporter in the former Soviet Union.(Free Realtime)
15.05.2002 | WednesdayTeton Petroleum reports Siberian production surpasses 4,000 b/d
Teton Petroleum Co., Steamboat Springs, Colo., announced its field production in western Siberia has increased to 4,080 b/d of oil, with 1,020 b/d net to Teton.
Новость: Teton has produced oil from Egurayk field since 1997. The company recently completed Well No. 600, which is flowing 730 b/d. Teton anticipates more production with the completion of three more wells expected within another month. Teton recently began pumping oil through its 40-km pipeline, enabling production year-round from the Eguryak license, 20 miles north of Samotlor supergiant oil field. Until the pipeline was operational, Teton had to truck oil in the winter and barge oil in the summer. It shut down oil production in the fall and spring because of weather conditions. Last November, Teton announced it had completed a 5 million financing package to build the line (OGJ Online, Nov. 8, 2000). The company conducts its active business solely through a 50% ownership interest in Goltech Petroleum LLC, a Texas limited liability company. Goltech operates through ownership of a 70.59% interest in Goloil, a Russian joint stock company. Goloil owns the Eguryak license in western Siberia. (Oil & Gas Journal)
13.05.2002 | MondayRussias Gazprom Nominates Auditor
Russian natural gas giant Gazprom said Monday that it would nominate PriceWaterhouseCoopers as auditor of its annual results for 2002, defying pressure from minority shareholders to dismiss the firm.
Новость: Gazprom said the internal commission overseeing the tender for this years audit had selected PriceWaterhouseCoopers over KPMG. The decision will now be presented to the Gazprom board of directors for approval, and shareholders can confirm or reject the appointment at the companys annual meeting June 28. The commissions decision deals a blow to a high-profile campaign by the fund manager Hermitage Capital Management to abandon PWC. Hermitage accuses the auditor of being lax in its inspections of Gazprom in the late 1990s and 2000, and has filed suit against PWC in a Moscow court for false and misleading audits. Substantial assets were transferred out of Gazprom at conspicuously low prices during that period, although new management has regained control over most of those assets since. Gazprom is the worlds largest gas company and Russias biggest taxpayer. The company, 38-percent owned by the government, has long been dogged by allegations of insider dealings and other dubious financial practices. Gazprom chief Alexei Miller has sought to clean up the companys reputation since his appointment by President Vladimir Putin last year. Other minority shareholders, led by United Financial Group head Boris Fyodorov, have argued that Hermitages course of action has been counterproductive. Hermitages chief executive William Browder is simultaneously campaigning for the position of minority shareholders representative on the Gazprom board, a position currently held by Fyodorov.(Newsday)
07.05.2002 | TuesdayRussia to Propose Natural Gas Pipeline Project to Japan
In a meeting Thursday with Minister of Economy, Trade and Industry Takeo Hiranuma, Russian Energy Minister Igor Yusufov said his nation plans to propose a major natural gas pipeline project linking Japan and a Siberian city.
Новость: Meeting on the sidelines of a Group of Eight ministers meeting on energy issues, Yusufov indicated that the project would involve the transport of natural gas from Nakhodka, Russia, which faces the Sea of Japan, to Japan via gas pipelines on the ocean floor. Yusufov did not disclose any specific details, such as the size of the project, funding or its scheduled start, but he said Russia intends to send written plans to Japan soon. The Ministry of Economy, Trade and Industry is maintaining a cautious approach as it takes the stance that private companies should be at the core of such a project. It also cites the fact that details of the project remain unclear. Currently, Exxon Mobil Corp. and others are in the process of planning gas pipeline operations to ship natural gas from offshore Sakhalin, Russia, to Japan.(PMA)
06.05.2002 | MondayStatoil sells Danish oil stakes for 20 mln
Norwegian energy group Statoil (Oslo:STL.OL - news) said on Monday it would sell its Danish oil and gas production business to Denmarks state-run DONG for 20 million to focus on core areas and explore new ones.
Новость: State-controlled Statoil said the sale, conditional on approval by Denmarks competition authorities, included 40 percent in the Siri and Stine fields and 18.8 percent in the Lulita field, with a combined output of 7,000 barrels per day. Denmark is not a core area for us. We want to concentrate our forces on bigger projects with more long-term prospects and with greater potential, Statoil director of information Wenche Skorge told Reuters. She said the company would focus on its core international areas for oil and gas -- the Caspian Sea, West Africa and Venezuela -- and look elsewhere to expand its energy business. We are looking at and evaluating the possibilities in Iran and Brazil and -- one a longer-term basis -- Mexico and Russia, Skorge said. Statoil, Norways biggest energy firm, said it would book an after-tax profit of 0 million from the sale, which would probably be included in accounts for the third quarter of this year. Shares in Statoil opened flat in Oslo at 72.5 Norwegian crowns (.74) at 0800 GMT, better than a 0.53 percent drop in the DJ Eurostoxx energy index (Zurich:^SXEP - news) and a 0.4 percent fall in Oslos benchmark (Oslo:^OSEBX - news). Statoil said the sale would not affect its international oil and gas production target of 80,000 barrels of oil equivalents per day (boed) in 2002 and 120,000 boed in 2004. The sale of the fields, located in the Northern area of the Danish North Sea, would be effective from July 1, 2002. (Yahoo Energy)
30.04.2002 | TuesdayOil firms accused of gouging
Although the petroleum industry often blames gasoline price spikes on market-driven shortages, a congressional investigation has found that some oil companies reduce supplies when markets are tight to force up prices and profits.
Новость: The investigation by a Senate subcommittee found that industry manipulation of gasoline supplies exacerbated tight fuel markets and helped produce some of the sharp price spikes over the last three years, especially in the Midwest. In a number of instances, refiners have sought to increase prices by reducing supplies, says the 396-page report released Monday by Sen. Carl Levin, D-Mich., chairman of the Senate Permanent Investigations Subcommittee. In the past three weeks, gasoline prices in Metro Detroit have been declining. Prices declined two cents from a week earlier to an average Monday of .37 a gallon for regular unleaded, according to AAA Michigan. Prices statewide also fell five cents to .38 a gallon after jumping a penny last week. Turmoil in the Middle East has led to instability in the oil markets, pushing prices higher since the end of February, when a gallon cost .10 in Metro Detroit and .15 statewide. The Senate committees investigation, Levin said, documents the actions by major oil companies to keep supplies tight and inventories low in order to increase prices and maximize profits. Levin plans a hearing on the report Tuesday, including testimony from oil industry representatives. An industry spokesman said the Senate panels report was still being reviewed. There have been numerous investigations into the pricing practices of the oil companies, and every investigative agency including the Federal Trade Commission has found zero indication of any illegal activity, said Mike Shanahan, a spokesman for the American Petroleum Institute, the trade group for the major oil companies. Levins report cited several internal memos, dating back to 1998, from major oil companies that outline a general strategy of using supplies to influence prices.(Detnews)
29.04.2002 | MondayHydros positive production
Norsk Hydro last week hit an average equity daily production rate of 509,000 barrels of oil equivalents per day.
Новость: These welcome figures demonstrate that our focus on operations is producing positive results. The acquisition of SDFI (States Direct Financial Interest) shares has also contributed to this milestone. Now its a matter of keeping the pressure on - regarding production and regularity, says Hydro Oil & Energy economic director Kjetil Solbraekke. Hydro Oil & Energi targets a yearly production increase of five percent. Hydros average equity daily production of oil and gas in 2001 was 421,000 barrels of oil equivalents per day (boe/d). Last weeks output rate is some 19 percent higher than the average daily output figure for 2001. Hydro produces petroleum in Angola, Canada, Libya, Norway and Russia - and has interesting prospects in Iran and the Gulf of Mexico. Hydro operates 15 oil and gas installations on 12 offshore fields with a combined production of more than 1.3 million boe/d - making it one of the leading offshore oil and gas production companies in the world.(World Oil)
23.04.2002 | TuesdayGas prices barely budge
Gasoline prices edged down a fraction of a cent over the past two weeks, despite tensions in oil-producing regions like the Middle East and South America. Friday's weighted price per gallon for all grades and taxes was about .46, down just over half
Новость: THE DECREASE - the first since Feb. 8 - could be a sign that gasoline prices, which generally spike during the summer months, may have peaked, said analyst Trilby Lundberg Sunday. 'At the very least the gasoline price hikes have been stalled,' Lundberg said. 'And this is despite dramatic headlines out of two key oil producing countries - Iraq and Venezuela.' Iraq has threatened to cut off oil shipments for a month to protest the Israeli military action in the West Bank. Venezuela's president, Hugo Chavez, survived a military coup attempt that lasted just one weekend. Despite some brief fluctuation, crude oil prices have remained steady, Lundberg said. 'The oil market ended up yawning at both those developments,' Lundberg said. 'The result is price stability at the pumps at least for now.' Advertisement Between Feb. 8 and April 7, gasoline prices jumped 32 cents. Prices remain more than 21 cents a gallon lower than they were at this time last year, when gas cost .67 per gallon. The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about .42 per gallon for regular, .52 for mid-grade and .61 for premium.(CNBC)
17.04.2002 | WednesdayShell Invites Russia Gazprom To Join Sakhalin II Project
Royal Dutch/Shell Group (RD) has invited Russian gas giant OAO Gazprom (R.GAZ) to take part in the Shell-led Sakhalin II natural gas and oil project in Russia s Far East, Shell Chairman Philip Watts said Tuesday.
Новость: We have so much to learn from each other. This is a case of one plus one equals three, Watts told a press conference after a meeting with Gazprom officials and Russian Prime Minister Mikhail Kasyanov. The Sakhalin II project comprises offshore oil and gas fields. Shell began commercial oil production there in 2000, bringing daily output to 90,000 barrels for six months of the year. Production is currently shut in due to the weather for the remainder of the year. The company plans to launch commercial production of gas in 2006, aiming to supply liquefied natural gas to Japan , Korea and possibly China . The investment required in Sakhalin II is put at billion to develop reserves of 140 million metric tons of oil and 408 billion cubic meters of gas. Shell officials declined to discuss the details Gazproms participation in the project, but hinted that Gazproms technical expertise and political clout might be its contribution. We are at a very early stage of our talks, said Rein Tamboezer, the Moscow - based President of Shell Exploration and Production Services (Russian Federation). In November 1997 , Shell and Gazprom formed a strategic alliance envisaging joint investments in energy projects in Russia and abroad. Shell also hopes to conclude talks on forming a joint venture with Gazprom to develop the deep sections of Zapolarnoye gas field in Russia s far north. This has been discussed for some time, and we shall see how it will develop, Tamboezer said, adding that the talks could go on for a few more weeks perhaps months. Zapolarnoyes reserves are estimated at around 750 million tons of oil equivalent. Shell hopes its Zapolarnoye partnership with Gazprom with allow the Dutch-U.K. company to supply western Europe. However, Watts said there have been no talks with Gazprom on buying gas directly from Russia for resale in western Europe, Watts said. We talked only about investments, he said.(Yahoo! News)
17.04.2002 | WednesdayRUSSIAN GOVT DECIDES TO RAISE PETROLEUM PRODUCT EXCISE BY 70%
The Russian government has approved a bill to increase excise on petroleum.
Новость: The Russian government has approved a bill to make changes to the second part of the tax code and other laws on taxes and fees to increase excise on petroleum products (gasoline, diesel and lubricants) by 70%, the government information department said in a press release. The bill will be submitted to the State Duma. The authors of the bill said that the increase would not cause a significant increase in prices at the pump. The draft federal budget for 2003 will include financing for the construction and maintenance of roads in the regions using the excise revenue. The increase in excise will be used as partial compensation the loss of revenue by regional budgets due to the elimination in 2003 of the road tax and tax on car owners. The excise on gasoline with octane levels up to 80 is currently 1,350 rubles per tonne and 1,850 rubles per tonne for higher-octane gasoline. Excise on diesel is 550 rubles per tonne and excise on motor oils is 1,500 rubles per tonne. (Interfax)
15.04.2002 | MondayNorway oil min confident on Snoehvit gas project
Norways oil and energy minister said last week he was confident the giant Snoehvit gas development in the Barents Sea would go ahead despite concerns that a tax amendment would derail the project in Brussels.
Новость: I cannot hide that this is a problematic situation, but still we hope to clarify the situation and we are convinced that this will get the green light, Einar Steensnaes told reporters. The Norwegian tax amendment gave partners in the project a break by cutting the depreciation period to three years from six even though the entire project was placed under a 78 percent onshore tax instead of a 28 percent offshore tax regime. Non-European Union member Norway holds a special European Economic Area agreement demanding that Norway sticks to the Unions competition rules, governed by the European Surveillance Authority (ESA). ESA is investigating to see whether operator Statoil and partners are getting unfair tax benefits. The 46 billion Norwegian crowns (.32 billion) Snoevhit field is due to come on stream by 2006 as a sub-sea tie-back off Norways northern tip with Europes first liquified natural gas (LNG) plant at Melkoya outside the city of Hammerfest. Operator Statoil, which has pushed back deadlines for all contracts relating to Snoehvit until the end of May following the ESA probe, has suspended work at Melkoeya and said the project is walking on a tightrope to meet the 2006 target. Obviously, this is a problem for the licencees as they have certain obligations, Steensnaes said. Partners at the giant Barents Sea natural gas field have signed contracts to deliver a total of 2.7 billion cubic metres (bcm) of gas to Spanish Iberdrola and El Paso from the United States. French partners Gaz de France and TotalFinaElf have additional contracts to buy a total 1.7 bcm of gas from Snoehvit and transport the gas on their own vessels. Statoil holds a 22.29 percent stake in Snoehvit, while the Norwegian state holds 30 percent, Norsk Hydro 10 percent, TotalFinaElf 18.40 percent, Gaz de France 12 percent, Amerada Hess 3.26 percent, RWE-DEA 2.81 percent and Svenska Petroleum 1.24 percent. RUSSIAN CONNECTION Earlier in the week, Steensnaes visited Moscow to sign a cooperation agrreement with Russia, which he said was partly aimed at developments above the Arctic Circle. One of the most important issues in the discussion was of course the situation in the Barents Sea, Steensnaes said. It is essential that if we are going further in developing the oil and gas resources, which could be of enormous dimensions, we approach this in such a way that we do not destroy the environment, he said. Steensnaes said studies showed the Arctic environment was extremely vulnerable, and Norway has put a ban on any new developments in the Barents Sea until an environmental impact study is put on the table.(Planet Ark)
12.04.2002 | FridayU.S. OKs Shared Drilling in Alaska Oil Reserve
The Interior Department on Thursday approved final rules to allow energy companies to share the costs and revenues from drilling for oil and natural gas on leased tracts in Alaskas National Petroleum Reserve.
Новость: By permitting development on leases without regard to property boundaries, the departments so-called unitization policy would reduce the number of wells that would have to be drilled in the reserve and leave more of the pristine wilderness undisturbed. The policy does not affect the nearby Arctic National Wildlife Refuge, which is closed to drilling, but the Senate will soon decide whether oil firms should have access to the area. The new rules take effect on June 10, according to a notice the department published in Thursdays Federal Register. The National Petroleum Reserve, set up in 1923 for the U.S. Navy (news - web sites), consists of 23 million acres. The Interior Department authorized leasing in October 1998 on up to 4 million acres in the northeast quadrant of the reserve near Barrow, Alaska, bordering the Arctic Ocean. Under the new policy, energy companies would also be given waivers or reductions in the federal royalties they pay on their oil and gas discoveries in the reserve, if the firms could demonstrate they would not be able to successfully operate the leases without the financial relief. The government requires firms to a pay a royalty fee generally ranging from 12.5 percent to 16.66 percent on the value of their oil finds. Firms would also have to lease tracts in the reserve for 10 years. Current regulations had allowed for a shorter lease term. The Interior Departments prior estimate said that if crude oil prices were in the 8 to 0 range -- compared with the current level of about 5 per barrel -- the northeast quadrant could profitably produce anywhere from 500 million barrels to 2.2 billion recoverable barrels of oil. The department had no estimate of the lands natural gas reserves. The department will release later this spring updated projections on the amount of oil and natural gas that could be recovered from the reserve. The size of the estimated reserves is expected to increase because of improved drilling technology.(Yahoo! News)
09.04.2002 | TuesdayNorway, Russia: Too Early to Up Oil Exports
Russia and Norway, both top non-OPEC oil exporters, said Monday they would stick to their oil output and export quotas but could revise them if growing violence in the Middle East pushed prices too high.
Новость: We see that political turmoil in an important oil-producing region could have consequences that would make us reconsider our decision. However, it is too early to go into reconsideration now, said Einar Steensnaes, Norways oil minister, on a visit to Moscow. Energy Minister Igor Yusufov said after talks with Steensnaes that Russia was currently sticking to oil export cuts but will base further decisions on the situation on world oil markets. Norway and Russia have joined the Organization of the Petroleum Exporting Countries and other independent producers in trimming oil supplies for the first six months, with Russia promising to cut oil exports by 150,000 barrels per day, while Norway cut its output by the same amount from Jan. 1. Russia said in March, after extending export cuts into the second quarter, that it may revise its decision if prices were high and the market stable. Deputy Prime Minister Viktor Khristenko said Friday the government may revise oil export targets as early as mid-May. Oil prices have almost fully recovered since their sharp fall following the Sept. 11 attacks on the United States and are now around 7 per barrel. Many analysts question Russias ability to fulfill its promises and curb shipments in tandem with OPEC as recent oil data show the country is continuing to boost its oil output and apparently ship more crude abroad. Russian data last week showed that the country exported 2.65 million bpd of crude in the first quarter of 2002, up from 2.54 million bpd in the fourth quarter of 2001. Yusufov and Steensnaes also signed on Monday an agreement to tighten cooperation on oil and environmental policies. Norway has offered to let us participate in oil projects. On our side we will encourage Norwegian oil firms already involved in projects in Russia, Yusufov said. He declined to name projects in Norway in which Russian firms might be involved. Norways Norsk Hydro holds 30 percent of the northern Timan-Pechora regions Kharyaga oil project, led by French TotalFinaElf, with output set to rise to 30,000 bpd by the end of 2002 from 10,000 bpd last year. Norsk Hydro is also involved together with Gazprom and other Western oil majors in gas exploration in the giant Shtokman gas deposit in the Barents Sea, which has estimated reserves of 3.2 trillion cubic meters.(The Moscow News)
02.04.2002 | TuesdayShell in big gas find in Norway
SHELL has made a gas discovery in the Norwegian Sea that
Новость: The Anglo-Dutch company is evaluating data from exploration wells drilled on the President structure, an offshore field where the Norwegian Petroleum Directorate confirmed the presence of hydrocarbons early in March. Persistent industry speculation has suggested it is a big find that could hold as much as one billion barrels of oil and an equivalent quantity of gas. Norway's state radio network, NRK, said: '(The President) is a major find, probably the second biggest gas find in Norway behind Troll.' The Troll gasfield, in which Shell has a substantial interest, is the crown jewel of Statoil, the Norwegian state oil company. The concrete structure that supported the Troll production platform and which was towed from a Norwegian fjord into position, was the largest man-made object ever to be transported, while the financing of the multibillion-dollar project was underpinned by the largest energy sales contracts. 'It is impossible to say anything certain about the size of the field, but we are satisfied with what we have seen so far,' Svein Ildgruben, a Shell spokesman, said. 'We have already said that there is a 50 per cent chance that the field is profitable and that has now been increased.' Shell has taken samples from the field and initial test results are to be received this week, with final results and an estimate of reserves in May. Shell and Petoro, the entity which manages the Norwegian state's direct ownership of oil and gas reserves, each own 30 per cent of President, while Statoil and TotalfinaElf have equal shares in the remaining 40 per cent.(Times Online)
24.03.2002 | TuesdayNorway to start emissions quota
OSLO - Norway will start a limited scheme by 2005 to
Новость: The main reason for introducing a quota-based emissions trading system at this early date is to stimulate further cost-effective action in Norway, Environment Minister Boerge Brende said in a statement. The proposal will allow companies currently exempt from a carbon dioxide (CO2) emissions tax to buy the right to emit CO2, a by-product of burning fossil fuels. Norway demands a CO2 emissions tax of 300 Norwegian crowns (4.34) a tonne, while analysts say the quotas will only cost between 75-150 Norwegian crowns per tonne of CO2. The CO2 tax would be continued until 2008 to avoid creating more pollution by companies taking advantage of cheap quotas, the ministry said. By 2008, the system will be expanded to all sectors as part of the U.N.-sponsored 1997 Kyoto protocol which calls for reductions in global emissions of greenhouse gases by an average 5.2 percent from 1990 levels by 2008-12. It will ensure that we really achieve cuts in emissions and give industries and the authorities useful experience of emissions trading, Brende said. The ministry also proposed that Norway should ratify the 1997 Kyoto protocol. (CICERO)
20.03.2002 | WednesdayПрезидент РТС - за ОПЕК
Россия не должна дистанцироваться от инициатив ОПЕК по сокращению
Новость: Как заявил С.Борисов на совете директоров РТС во вторник, для поддержания справедливых цен на нефть, России необходимо активно продолжать диалог с ОПЕК. Мы заинтересованы в стабильных ценах, поэтому глупо рубить сук, на котором сидишь, - сказал он. Между тем, добавил он, Россия также заинтересована в восстановлении утерянных позиций на мировом топливном рынке. С начала 90-х годов доля России в мировом экспорте сильно сократилась, и теперь нужно постепенно наверстывать упущенное, - сказал он. Наращивая добычу, Россия имеет возможность также создать госрезерв нефти объемом около 5 млн. тонн. При этом, считает президент РТС, при благоприятной мировой конъюнктуре, эти запасы можно будет выгодно реализовать. С.Борисов отметил, что в РФ отмечается кризис перепроизводства нефти, приведший к существенному падению цен на сырье внутри страны. В этой связи чрезвычайно важна позиция власти, которая к сожалению, пока до конца не ясна, - сказал он. Затягивание кризиса может привести к разорению мелких и средних добывающих предприятий, которые являются немаловажной составляющей российской экономики. В то же время если Россия запустит все свои экспортные возможности не исключено оголение внутреннего рынка и повторение дефицита топлива прошлых лет, - уточнил президент РТС. (NEFTEGAZ)
14.03.2002 | ThursdayCanada wont sign Kyoto
Robert Peterson, outgoing chairman and chief executive of Imperial Oil Ltd., said yesterday
Новость: Robert Peterson, outgoing chairman and chief executive of Imperial Oil Ltd., said yesterday Canada would not be able to meet its targets to reduce greenhouse gas emissions under the Kyoto accord without severe consequences and does not believe Ottawa will sign the pact. I am of the view they are going to rethink this and come to a conclusion that theres got to be a made-in-Canada solution, he told reporters in a wide-ranging interview. Mr. Peterson, who retires this summer from the Toronto-based energy giant, said in order to meet a 6% reduction in emissions by 2010, Canada would be required to reduce its energy consumption by 30%. The impact of the agreement would be a 3% to 5% hit to GDP. He said Kyoto, which is expected to be ratified this year, has less to do with the environment and more to do with trade. This is a wealth-transfer scheme between developed ... and its been couched and clothed in some kind of environmental movement, he said. Under Kyoto, energy producing countries would pay a hefty fee for emission credits from non-producing countries. The Canadian Association of Petroleum Producers believe the credits alone will cost Canadian industry .5-billion a year. Imperial Oil and its majority shareholder ExxonMobil Corp. have been among the most vocal opponents to the pact in the energy industry, along with other groups such as the Canadian Manufacturers and Exporters. That group estimates it would cost the economy 0-billion and 450,000 jobs. Ottawa disputes the figures, but has indicated in a framework plan that the biggest emitters --industrial plants, oilsands operations, petroleum refineries and electricity generators -- would bear the brunt of the costs by either having to curb emissions or by buying credits. Tim Hearn, who took over as president of Imperial Oil on Jan. 1, and is expected to replace Mr. Peterson as CEO, said Canada would likely take the biggest hit of any country because of its energy intensive economy. I just dont know why we would walk down this path. Its somewhat incomprehensible to me. Why would we create more unemployment and shrink our economy for ostensibly no real impact on the environment? Meanwhile, Mr. Hearn indicated that under his leadership Imperial Oil will continue along a similar path set out by his predecessors. He said he has no plans to move its head office from Toronto to Calgary, nor would he comment on any ongoing speculation of a merger with ExxonMobil. The two companies took steps to streamline some operations last year and are on track for a savings of slightly more than the 0-million a year first estimated. (CICERO)
27.02.2002 | WednesdayBush says US needs to drill for oil in
Facing tough odds in the U.S. Senate,
Новость: America is already using more energy than our domestic resources can provide, and unless we act to increase our energy independence, our reliance on foreign sources of energy will only increase, Bush said in his weekly radio address. The Senate in the coming week is to resume debate on energy legislation and at the moment it does not contain language to allow drilling in Alaskas Arctic National Wildlife Refuge (ANWR), believed to hold up to 16 billion barrels of crude. Republicans wants to amend the legislation to include ANWR drilling. The House included drilling in the refuge in its energy bill last August. A final Senate vote is not expected until March, and Senate Majority Leader Tom Daschle, a South Dakota Democrat, has said he has enough votes to block Republicans from adding language that would allow drilling in the Alaskan refuge. Bush said he stopped in Alaska a week ago on his way to Asia and met with many Alaskans, including native leaders who want to preserve the grandeur of their state while carefully developing the energy beneath a small fraction of it. New technology makes this possible. Our national security makes it urgent. Alaskans know firsthand that modern technology allows us to bring oil to the surface cleanly and safely, while protecting our environment and wildlife, Bush said. We should listen to Alaskans who support exploring ANWR in a safe and clean way. The Arctic refuge stretches over 19.6 million acres and is home to caribou, polar bears and other wildlife. Democrats and environmental groups oppose drilling in the refuge, preferring an energy policy that emphasizes more conservation and stricter fuel efficiency standards. Bush believes taking oil from the refuge would help reduce Americas dependence on crude oil imported from volatile Middle Eastern nations. Republicans say Alaskan drilling will create tens of thousands of jobs, and backers say the refuge could produce 1 million barrels of oil a day at peak production. The United States uses 19.5 million barrels a day, and imports account for 60 percent of that. Interior Secretary Gale Norton has said it is too early to say whether Bush would veto energy legislation that does not include ANWR drilling. Bush on Monday will underscore his support for conservation when he takes a look at three experimental energy-saving vehicles, including the Chrysler Town & Country Natrium minivan, which is fueled with sodium boro-hydride, a compound chemically related to borax, the naturally occurring substance used in laundry soap. The White House insists Bushs commitment to conservation, including tax credits for purchases of hybrid vehicles, has been overshadowed by the flap over ANWR. Conservation technology and renewables are important. Yet they alone cannot solve our energy problems. We must also reduce Americas dependence on foreign sources of oil by encouraging safe and clean exploration at home, Bush said. (REUTERS)
03.01.2002 | ThursdayCaspian Commission To Fix Sturgeon Catch, Export Quotas
Moscow -- Quotas for the catch and export of sturgeon fishes is to be fixed by the commission on the Caspian bioresources in Astrakhan on December 6-7. The commission includes the fishery chiefs of Russia, Azerbaijan, Turkmenistan, and Iran, an offici
Новость: Moscow -- Quotas for the catch and export of sturgeon fishes is to be fixed by the commission on the Caspian bioresources in Astrakhan on December 6-7. The commission includes the fishery chiefs of Russia, Azerbaijan, Turkmenistan, and Iran, an official at the Russian State Committee for Fisheries told Itar-Tass on Thursday. The Committee specialists said the issue concerning the state of the stocks of bioresources in the Caspian is now particularly acute in view of the tremendous scope of sturgeon poaching. Yet another problem has arisen: the propagation of comb-jelly (ctenophore). This jelly-fish variety, which has been brought into the Caspian in the ballast water of ships from the Sea of Azov. The comb-jelly destroys the staple feed of Caspian sprat (Clupeonella Delicatula caspia), thereby depleting the sprat stocks. The Caspian commission is to take decisions on universally admissible catches of bioresources and fix next years quotas for the catch and export of sturgeon fishes. (ITAR-TASS News Agency)
01.01.2002 | MondayНовость:
01.01.2002 | MondayНовость:
23.10.2001 | TuesdayBelgium says climate deal at risk if challenged
The Belgian European Union presidency cautioned this week that a landmark U.N. pact to limit global warming would be in jeopardy if countries sought to renegotiate key details at talks this month.
Новость: A deal is a deal. We wont renegotiate, Belgian Energy Minister Olivier Deleuze told a news conference ahead of the 180-nation talks in Marrakesh, Morocco, from October 29 to November 9 to agree final details of the Kyoto protocol. More than 180 countries, excluding the United States, agreed in July to carry out the Kyoto protocol on limiting greenhouse gas pollution blamed for blanketing the globe and for pushing up global temperatures. Deleuze, whose country holds the six-month rotating EU presidency, declined to say which countries he feared might be tempted to backtrack on the Bonn deal, aimed at preventing catastrophic long-term climate change. I dont want to be more precise because I have...contacts with people that should not be public, he told Reuters. These issues are bombs. Anyone who decides to launch such a bomb should know what he is doing...There are lots of ways to turn the Marrakesh conference into a failure, he said. Deleuze said sensitive issues agreed in Bonn included the exclusion of developing nations from emissions goals, a compromise allowing Japan to count a large part of its forests and farms as carbon-storing sinks and limits on nuclear power. And he said the Kyoto pact was still vital even though the worlds attention was on terrorism and U.S.-led strikes on Afghanistan after suicide airliner attacks on the United States on September 11. He said he expected Washington would drop plans to come up with rival proposals to combat global warming at Marrakesh after U.S. President George W. Bush called the Kyoto pact fatally flawed. I dont expect U.S. proposals - thats good for me, he said. The U.S. position will be the same as at Bonn. The Kyoto protocol aims to cut emissions of greenhouse gases to an average of five percent below 1990 levels by 2010. Other nations agreed to go ahead without the United States, which accounts for about 36 percent of carbon dioxide emissions. This week, the European Commission was due to consider new policies for implementing their share of the cuts. In Marrakesh, the nations also have to agree a few fine-tuning details of the Bonn deal, including about compliance, carbon sinks and implementation by East European nations. (PlanetArk)
18.10.2001 | ThursdayBP gets green light for UKs Clair oil, gas development
BP Wednesday said it has been given the green light from the UKs department of trade and industry for the phase one development of its west of Shetland Clair oil and gas field.
Новость: The development will focus on the fields central Core, Graben and Horst reservoirs which have estimated oil in place of 1.75-bil bbl, of which 250-mil bbl will be recovered. First output is slated for late 2004 and is expected to plateau at 60,000 b/d and 15-mil cubic feet of gas per day. Total investment in phase one is pegged at GBP650-mil (40-mil). Oil output will be via a pipeline running to Shetlands Sullom Voe terminal while produced gas will not be routinely flared but either exported to the Magnus Enhanced Oil Recovery western gas pipeline or re injected into the reservoir through a well. Clair covers five license blocks-206/7a, 206/12, 206/8, 206/13a and 206/9 and lies 75km to the west of the Shetland Islands, in 140 meters of water. It is currently the largest undeveloped resource on the UKCS. It was discovered in 1977 but its complex geology and fragmented structure has so far prevented access to overall reserves of 4-bil bbl. Im pleased to say that technology has advanced to the point where this difficult development is now viable, said Scott Urban, group vice president for BPs North Sea operations. The development represents a significant investment for all the co-venturers. It also shows that there are still opportunities to invest in the North Sea and Atlantic areas of the UKCS. I believe there will continue to be for many years to come. If the first phase is successful future satellites could tap outlying areas and significantly boost output and reserve recovery. It is planned to drill 15 producing wells, eight water injectors and one drill cuttings reinjection well while phase one will also comprise a single steel jacket and associated topside and integrated drilling facilities. Co-venturers in Clair are, BP (operator) 28.6%, Conoco 24%, Chevron 19.4%, Enterprise Oil 18.7%, Amerada Hess 9.3%. Between discovery and 1990, 10 appraisal wells were drilled, followed by a further five appraisal wells between 1990 and 1995. A 3D seismic survey was also carried out during this period. A further two appraisal wells were drilled in 1997 and an extended well test conducted. (Neftegas)
17.10.2001 | WednesdayEPA Launches Combined Heat and Power Partnership
The U.S. Environmental Protection Agency (EPA) announced on Monday the formation of a new government- industry partnership to encourage the use of combined heat and power (CHP).
Новость: The U.S. Environmental Protection Agency (EPA) announced on Monday the formation of a new government- industry partnership to encourage the use of combined heat and power (CHP). Also referred to as cogeneration, CHP systems make use of both the heat and the power that are generated by electric power plants. CHP can range from large industrial power plants to relatively small systems using fuel cells or microturbines. EPAs new CHP Partnership includes 17 Fortune 500 companies as well as a number of city and state governments and non-profit organizations. For its part, EPA will provide public recognition for CHP projects and will support the accelerated development of new projects through streamlined permitting.(EREN)
09.10.2001 | TuesdaySigyn contracts awarded
Statoil has signed contracts worth NOK 375 million for the development of the Sigyn gas and condensate field in the North Sea on behalf of the licensees.
Новость: ExxonMobil is operator for Sigyn, but through agreements between Statoil, ExxonMobil and Norsk Hydro, Statoil will execute drilling and subsea work at Sigyn, in addition to the topside modifications on Sleipner. ABB will carry out the alterations and modification work on the Sleipner A platform, which will be hooked up to the wellstream from Sigyn. The estimated value of this contract is NOK 200 million. Coflexip Stena Offshore (CSO) will install a seabed template, flowlines and control cable. CSO will also connect the flowlines and control cable to the platform. This contract has an estimated value of around NOK 175 million. Tor Torsшy, manager for the Sigyn development, reports that the template is planned to be installed in November. It has to be in place before drilling operations can begin. The Sigyn East and Sigyn West deposits will be produced by means of one and two production wells respectively, in the same template. Plans call for the wells to come on stream in the first quarter of 2003. The field has an estimated lifespan of 10 years. The licensees in Sigyn are ExxonMobil with 40 per cent, Norsk Hydro (10) and Statoil (50).(OILNET)
09.10.2001 | TuesdayEsso contract for Smedvig
Stavanger-based Smedvig has signed a letter of intent with Esso Norge for exploratory drilling in the Norwegian Sea, at a site west of Bodoe.
Новость: The contract is worth NOK 180 million, and includes the drilling of a deep-sea well to a depth of around 1350 metres. The deep-sea drilling vessel West Navion will be used for the project. Drilling will start in August next years, and the exploration is expected to take 3 months, NRK reports. (NRK)
25.09.2001 | TuesdayShell cuts target for production growth to 3%
Royal Dutch/Shell, the Anglo-Dutch oil giant, on Wednesday cut its forecasts for production growth, saying access to major sources of reserves was taking
Новость: Royal Dutch/Shell, the Anglo-Dutch oil giant, on Wednesday cut its forecasts for production growth, saying access to major sources of reserves was taking longer than expected. The group said it was reducing its targeted volume growth from an average 5 per cent a year over the five years to 2005 to 3 per cent a year. Some projects are taking longer to realise than first predicted and some of our more mature fields, in the UK and USA particularly, are declining faster than before, Walter van de Vijver, chief executive of exploration and production, told analysts in The Hague. Mr van der Vijver made it clear that the cuts did not take into account the impact of the terrorist attacks on the US last week. It is too soon and would be inappropriate to speculate on the consequences of these events for the global economy and the Shell group. All I can say is that the future will be more uncertain, he said. The possibility of lower volume growth had been expected following a warning by Philip Watts, Shell's new chairman, last month. Mr Watts said then that the economic downturn and the high oil price meant demand for oil was slowing and that member states of the Organisation of Petroleum Exporting Countries were under no pressure to allow western oil companies to develop reserves on their territory. Mr Watts said on Wednesday he was confident the group would continue to yield leading returns to shareholders, despite the cut in volume growth targets, by focusing on further cost reductions. Our proven track record of performance, the underlying strength of the asset portfolio and the team we have in place will continue to deliver, he added. Analysts said the impact on Shells net income would be limited to a fall of about 1 per cent. What Shell has highlighted must be affecting others in the industry but the fall in production growth will translate to a relatively minimal dip in profitability, all other things being equal, said one analyst. Shell's London listed shares immediately reacted to the statement, losing 18.5p in early trading to 490.5p. BP's shares were also pulled down 21p to 545p as traders anticipated the possibility of similar production growth cuts. TotalFinaElf, the French oil group, lost E3.20 to E150.20. BP has swept aside concerns that it will fail to meet its 5.5 per cent average annual volume growth target to 2005 while TotalFina has said it will lift production by 10 per cent next year. Lord Browne, BP chief executive, said last month that his company's figure was based on a more bullish view than Shell's of the effect of the economic downturn on demand and greater confidence that projects would come onstream as scheduled. Mr van der Vijver said Shell was likely to meet its target of lifting production to the equivalent of 3.8m barrels of oil a day by the end of the year, but that 2002 production would be flat. He cited delays to projects in Angola and Nigeria and hinted that the high-profile Kashagan project in the Caspian, expected to be the largest oil find for 20 years, could also face setbacks. Very complex projects like Kashagan will take longer than was assumed a year ago to bring through to production. There has to be a realisation of how to work in those types environments, he said. He added that the group was expected to continue to meet its target of a 15 per cent return on average capital employed at an assumed oil price of 4 a barrel and would maintain annual investment in the upstream business at -8bn a year. (FTP)
11.09.2001 | TuesdayViahirev has gone by bottom
Viahirev has carried on with the government of Poland negotiations on construction of a gas main through territory of this country around of Ukraine. As Poles do not agree on gasproms variant of route, It was necessary for Viahirev to resort to blackm
Новость: The basic consent of Poland to that the gas main on which export of the Russian gas to the Western Europe is carried out, has passed on its territory, was received in December of the last year. A problem in the friend: Gazprom and Poland can not coordinate a route on which there will pass a pipe. Gazprom offers the following variant: the gas main should pass from the Byelorussian city of Kobrina up to Slovak city of Velke Capushani. However the Polish government categorically does not arrange it. The official reason following: in this case the gas main will pass through two reserves that is inadmissible. Thus the Polish government refers not only to a public opinion, but also on ecological requirements of EU. Actually questions of ecology excite Warsaw not first of all. Poles have offered the route of a lining of a gas main. It passes through Poznan and is farther on territory of Czechia. Focus that in this case the length of the pipeline is increased in comparison with route Corbin-Velke Capushani by 400 kilometers. For Poland it means additional incomes for transit. Clearly, that such variant does not suit Russia. During the visit to Poland Рем Viahirev discussed with Polish vice-premier Janushem Shtejngoffom possible compromises. Apparently, the parties so to anything did not come. Yanush Shteffengoff has only confirmed, that Warsaw is interested in a lining of a new gas main on the territory. However he has not specified, on which route there should pass this line. In answer Viahirev has presented Poles the third, alternative variant of transportation of gas to Europe: the gas main should pass from Saint Petersburg in a bottom of Baltic sea directly to the Western Europe. In this case Poland in general appears outside of the project. Thus, Viahirev direct pressure upon Poles puts. As far as the alternative variant is real and economically justified, yet do not know even in Gazprom. The representative of concern in individual conversation has declared the correspondent Newspapers. Ru : On the one hand, the lining of a gas main in a bottom of Baltic sea is attractive that is not necessary to anybody to pay for transportation of gas. With another - it is obvious, that this construction will demand immeasurably big means, rather than a lining of a pipe through Poland. Our economists now consider, what from variants will be more favourable in long-term prospect . Gasprom economists consider easier, than Polish: for them are known not only expenses on gas on the Polish territory, but also its real cost price. (Газета.ru)
30.08.2001 | ThursdayLUKOIL and SOCAR to rehabilitate Govsany-Zykh Azeri oilfield
The contract on development and rehabilitation of Govsany-Zykh oilfield comes into force from September 1, 2001. This contract was signed between the Azeri State Oil Company (SOCAR) and Russian
Новость: The contract on development and rehabilitation of Govsany-Zykh oilfield comes into force from September 1, 2001. This contract was signed between the Azeri State Oil Company (SOCAR) and Russian LUKOIL on terms of Product Sharing Agreement (PSA) with equal shares for the both companies. Press service of the Russian oil company informed that the common investment volume totals USD 250 million. Contract area equals 128 square kilometers, of which 52 square kilometers need rehabilitation. Every day 250-280 tons of oil are extracted in Govsany-Zykh. Permanent supply of the field amounts to 20 million tons. LUKOIL press service informed that drilling of additional wells could bring to sizable increase of extraction volume (NefteGaz)
28.08.2001 | TuesdayFirm to let Alberta gas well fire burn self out
Firefighters say a burning gas well blowout is too dangerous to cap, so theyll sacrifice an estimated 500,000 barrels of ethane for safetys sake and let the blaze burn itself out.
Новость: Firefighters say a burning gas well blowout is too dangerous to cap, so theyll sacrifice an estimated 500,000 barrels of ethane for safetys sake and let the blaze burn itself out. The huge fire has been burning since Sunday morning when leaking gas at a natural gas liquids plant ignited into a giant fireball - pouring thick, black smoke into the sky and shooting flames as high as a 15-storey building. The plant, owned by BP Canada Energy Co., is just outside Fort Saskatchewan, a small city about 30 kilometres northeast of Edmonton that is home to several large energy and chemical plants. The blaze was too big and too hot for firefighters to get close enough to assess Sunday. Plant superintendent Larry Jardine said Monday firefighters had stabilized it with a steady stream of water, and the decision was made to let it burn. Theres no danger of this spreading anywhere off-site; its being contained right here, he said. If we try to cap the well or anything, then youve got the problem of the (toxic, flammable) gas being released without being burned right at the wellhead. But nearby residents had mixed opinions. I think they should cap it if they can, said Terry Letwin, who has lived in the community for 22 years. They have plenty of experts to handle this kind of thing. They work with oil fires all over the place. Anne Traviss, who has lived in Fort Saskatchewan for more than 20 years, said shes wary but trusts the officials. Ill admit Im nervous about it exploding because that would be goodbye Fort Saskatchewan, she said. If they decided its safer to let it burn rather than cap it and risk the release of gas that may be toxic, I say let it burn. On Monday flames were still shooting from two wellheads less than 20 metres apart. The companys own fire experts and Firemasters, a Red Deer company that specializes in oilfield fires, were brought in to help, but Jardine said the fires too tricky. Its much easier to cap a single wellhead, using an explosion to snuff the flames and then moving in to cap the source of the leak, he said. Theres the proximity of the two wellheads, he said. What happens if you get one and not the other one? Theres just too much risk to entertain it at this time. Ethane gas is toxic, but is rendered harmless if its burned. Jardine wouldnt say how long it will take to burn, but when he was asked if its a matter of days or weeks, he replied: Were talking a longer time; its not going to be completed in the next day or two. The ethane was being stored in a liquid form in a cavern 1,800 metres underground. Officials said Sunday the cavern could hold about a million barrels and that it was half-full. It isnt considered a threat to explode underground, because there is no oxygen there. Jardine said the only thing that could make them change their plan is if the fire becomes a greater risk to the public. James Clark, the emergency services co-ordinator with Fort Saskatchewan, said the primary job for firefighters was to keep the burning equipment cool. They were shooting water from a nearby reservoir, tanker trucks and running a hose from a nearby Dow Chemical plant. Im in 100 per cent agreement with letting it burn, said Clark, adding the fire is extremely hot. Pretty much all of the water thats hitting the surrounding area is being evaporated. Officials from the company scheduled a community meeting in Fort Saskatchewan to discuss the situation Monday night. Some residents were angry they werent notified directly by the company about the situation until Sunday evening. Anne Brown, who lives within two kilometres of the plant, said thats not good enough. Its kind of a nightmare come true. Here we have a big incident that happened, people are afraid and (theres) no information, she said. Youre totally left on your own. Brown is a member of the Heartland Citizens Coalition, which was formed to try to put limits on industrial expansion in the area. The company has a system to notify area residents of emergencies, called Comm-Alert, but it didnt begin automatically dialing people until 7 p.m. Jardine said the decision not to activate Comm-Alert was made with police and fire officials. He regrets how long the company took to issue an alert, but added no one was in danger and they didnt want to create a panic. We could have let them know sooner. Ill take responsibility for that. (thestar.com)
27.08.2001 | MondayChevron says decision on 2nd well in Absheron gas field delayed to 2002
Baku, August 24, 2001. A decision on whether to drill a second exploratory well in Azerbaijans Absheron offshore natural gas field has been postponed until summer next year, Chevron Corp said.
Новость: Baku, August 24, 2001. A decision on whether to drill a second exploratory well in Azerbaijans Absheron offshore natural gas field has been postponed until summer next year, Chevron Corp said. AFX reports that the future of the field has been in doubt since initial exploratory drilling in July failed to find commercially-viable reserves. John Connor, general manager of Chevrons Azeri operations, said geologists will need to carry out an an evaluation of the remaining potential there, which will take many months to do. The risk we initially had was very low but the risk now is very much higher, Connor said. The first well cost USD 78 million to drill, a record for hydrocarbon exploration in the Azeri sector of the Caspian Sea. Chevron has not discussed paying compensation to the Azeri government, which it would be required to do if it did not drill a second well as stipulated in its contract, he added. He said the Absheron consortium is under no pressure to take a decision because the rig needed to drill a second well will not become available until the second half of 2004. The consortium developing the field includes Chevron, which holds 30 pct, TotalFinaElf with 20 pct and the Azeri state oil company SOCAR with 50 pct. (caspian.ru)
26.08.2001 | SundayExplosion rips through Canadian gas storage plant
TORONTO, Aug 26 (Reuters) - An explosion at a natural gas storage facility sent fireballs into the sky over a small town in western Canada on Sunday, but no one was injured, emergency officials said.
Новость: TORONTO, Aug 26 (Reuters) - An explosion at a natural gas storage facility sent fireballs into the sky over a small town in western Canada on Sunday, but no one was injured, emergency officials said. The explosion at a BP Canada Energy pipeline processing plant in Fort Saskatchewan, Alberta, started when gas from a malfunctioning wellhead ignited, an emergency services spokesman said. BP Canada Energy is a subsidiary of British oil giant BP Plc. (quote from Yahoo! UK & Ireland: BP.L) (NYSE:BP - news) There were no reports of injuries, and emergency services said that early fears about the toxicity of the cloud of smoke sent up by the fire were unfounded. There are no environmental concerns at all at this time, said Fort Saskatchewan Emergency Services spokesman James Clark. Officials said the fire was located in an underground storage facility and was being allowed to burn itself out as it was too hot for firefighters to get close enough to tackle. (CICERO)
26.08.2001 | SundayOil Price On London Oil Market
The price of a barrel of Brent crude oil delivery in October on the London oil market was reported Dlrs 24.60 at 13.00 hours GMT today. The closing price for Brent crude oil on the
Новость: The price of a barrel of Brent crude oil delivery in October on the London oil market was reported Dlrs 24.60 at 13.00 hours GMT today. The closing price for Brent crude oil on the previous official day for October delivery, fluctuated between Dlrs 25.04 - 25.10 per barrel. The closing value of Dubai crude oil at London oil market on the previous official day was reported between Dlrs 24.81 - 24.87. (irna.com)
26.08.2001 | SundayNippon Mbishi Oil to transfer oil, gas development to unit
Nippon Mitsubishi Oil Corp. said Friday it will transfer its oil and natural gas development operations to a wholly owned subsidiary on Oct. 1. The transfer of 12 development operations t
Новость: Nippon Mitsubishi Oil Corp. said Friday it will transfer its oil and natural gas development operations to a wholly owned subsidiary on Oct. 1. The transfer of 12 development operations to Nippon Oil Exploration Ltd. is aimed at speeding up the groups decision-making in the development business. The groups oil and natural gas development has been conducted by Nippon Mitsubishi Oil itself and units the parent set up for each project, Nippon Mitsubishi Oil said. The transfer involves Nippon Mitsubishi Oil assets with a book value of 22.8 billion yen and debts worth 15.5 billion yen. They are to be swapped with new shares to be issued by Nippon Oil Exploration. The transfer will enable the subsidiary to own concessions for oil and natural gas fields in such countries as Vietnam, Canada, Britain and the United States. Nippon Mitsubishi Oil said the transfer will not affect its earnings (home.kyodo.co.jp)
26.08.2001 | SundayYou have an error in your SQL syntax near s economy last winter appear to have vanished like...
Sky-high natural gas prices that scorched Canadas economy last winter appear to have vanished like a bill. Since the winter crisis, the commodity price of natural gas has fallen by an astounding 75 per cent.
Новость: Sky-high natural gas prices that scorched Canadas economy last winter appear to have vanished like a bill. Since the winter crisis, the commodity price of natural gas has fallen by an astounding 75 per cent. The doom and gloom scenario of last winter has vanished, said Tom Adams, executive director of the watchdog group Energy Probe. (Last winter) was a totally unprecedented experience and the price had never been higher. Now we are back to normal. After hitting 52 cents per cubic metre in January, the average spot price of natural gas from Canadian pipelines fell to 13 cents per cubic metre this week. The spot price is the amount paid for immediate delivery. Frigid temperatures and short supply drove natural gas prices to record highs last winter. Household gas users cranked up the heat in November and December. Some manufacturing plants gave up natural gas in favour of cheaper oil by-products. Others stopped production completely. What happened was a perceived shortage, which drove prices up, explained Brian Prokop, an energy analyst with Peters & Co. Ltd. in Calgary. Its Economics 101. By comparison, mild weather earlier this year eased demand for natural gas. Drilling in Canada and the United States has in the meantime increased supply. Inventories are now 16 per cent above last years levels, including new finds such as British Columbias Ladyfern project. The commodity price of natural gas has softened accordingly. But the gas companies arent losing money, because natural gas is up six times in price from the 1980s, Prokop said. Its just very low compared to last year. Will household gas bills be trimmed? Not yet. There are two types of household gas users: those locked into long-term contracts with gas marketers and those who pay floating market rates to gas utilities such as Enbridge Consumers Gas and Union Gas. Some lucky consumers, who signed in 1999, locked into three-year and five-year contracts, paying as little as 15 to 17 cents per cubic metre for household natural gas. But most Ontarians deal with Enbridge or Union. They pay a rate that has been proposed by the company and approved by the Ontario Energy Board, based on a year-forward forecast of what natural gas rates are expected to be. Every three months, companies adjust the rates to better reflect prices in the commodity market. At the moment, the rate at Enbridge Consumers Gas is 32 cents per cubic metre and 31.3 cents per cubic metre at Union Gas even though market rates have sunk to 13 cents. (thestar.com)
25.08.2001 | FridayChinese businessmen to produce oil equipment for Kazakh oil fields
Astana, August 23, 2001. Hong Kong considers possible production of oil equipment for oil industry of Kazakhstan. The Chairman of Talented Dragon Investment company Bong Sing told after his meeting with Prime
Новость: Astana, August 23, 2001. Hong Kong considers possible production of oil equipment for oil industry of Kazakhstan. The Chairman of Talented Dragon Investment company Bong Sing told after his meeting with Prime Minister of Kazakhstan Kasimjomart Tokayev the sides discussed prospects on production of oil equipment as well as cooperation on textile and pharmaceutical industries. The Chairman added that businessmen from Hong Kong will visit oil fields of Kazakhstan for continuing the talks on production of oil equipment. The head of Chinese delegation said that according to official data the trade turnover between Hong Kong and Kazakhstan is too low and that this visit would lay a foundation for fruitful cooperation. The Chinese delegation will stay in Kazakhstan for a week and will meet with officials from economy and trade, energy, and mineral resources ministries as well will have talks in Kazakhoil national oil company caspian.ru
25.08.2001 | FridayShell, Gazprom yet to ink deal on China gas pipeline bid
Oil major Shell has yet to ink a formal agreement with Russias Gazprom on jointly bidding for the development of Chinas 4,200km gas pipeline as well as integrated upstream and downstream project, though both have
Новость: Oil major Shell has yet to ink a formal agreement with Russias Gazprom on jointly bidding for the development of Chinas 4,200km gas pipeline as well as integrated upstream and downstream project, though both have already reached a framework on the cooperation, a Shell (China) source said Friday. Weve already agreed on a cooperation framework. A formal agreement however has yet to be signed, she said. While Shell is still discussing with Gazprom on details of the cooperation, their joint expert team is already negotiating with PetroChina on the integrated pipeline project bid, she said. Meanwhile, PetroChina has already given its nod to a joint bid by Shell, Gazprom, and two other investors, Gazprom-controlled Stroitransgaz and town gas producer Hong Kong and China Gas Co, she added. PetroChina is expected to announce in September a foreign party that the Chinese sponsor will team up with in the development of the Yuan 150-bil (8-bil) massive, integrated energy project, industry sources said. In July, PetroChina signed memoranda of understanding with four different foreign bidders on cooperation and development of the gas project. The four are a consortium of BP Global Investments, Malaysias Petronas and Japans Nissho Iwai; a consortium of ExxonMobil China Gas Pipeline and CLP Enterprises; Gazprom and Stroitransgaz; and Shell, which is acting on behalf of Hong Kong and China Gas. First phase of the trunkline will move 12-bil cu m/year of gas from northwestern Xinjiangs Tarim basin to rapidly developing eastern seaboard region such as Shanghai, Zhejiang, Anhui, Jiangsu, and Henan. (platts.com)
25.08.2001 | FridayMexico Pemex sees oil exploration needs at 3 bln
Mexican state oil monopoly Petroleos Mexicanos must spend 3 billion in the next five years on exploration and production or it could see its crude output slide by one-third, the companys top official said on
Новость: Mexican state oil monopoly Petroleos Mexicanos must spend 3 billion in the next five years on exploration and production or it could see its crude output slide by one-third, the companys top official said on Thursday. Pemex Director Raul Munoz Leos said the 3 billion price tag for the 2002-2006 period would help lift Mexicos crude output level to around 3.8 million barrels per day (bpd) from the 3.5 million bpd average in the first half of this year. The investment would also help push natural gas output to 6 billion cubic feet per day (cfd) from the average 4.56 billion cfd pumped out between January and June, said Munoz, according to a Pemex statement. Munoz, who took the helm of Pemex in December after a long career in the private sector, recently said that sliding investment in oil and gas over the past 20 years has pushed Mexico to the brink of a crisis that could lead to falling output levels. On Thursday, Munoz said that while Mexicos output has not yet shown an overall drop, some regions and fields are already in enduring declines. And if Mexico were to maintain the investment pace of the past 10 years, oil output will fall by a third by 2006 and gas slightly less, Munoz said, according to the statement. Pemexs problems have been further compounded by rising production costs, according to Munoz. The oil giant last year paid an average cost of .63 per barrel -- up from around a barrel a few years ago -- because of rising investments at the peripheries of its fields and the need to switch where it is drilling. To meet the laundry list of problems, Munoz added that Pemex must find legal ways to bring in private investment to help meet the costs. Pemex serves as the Mexican governments cash cow, supplying more than a third of its overall revenues. Mexico is the worlds No. 7 oil producer and one of the top three oil exporters to the United States. (news.excite.com)
25.08.2001 | FridayKazakhstan and Russia leading in economic reforms in former USSR
Astana, August 23, 2001. Kazakhstan and Russia are the two states in former USSR, which are leading in reforms of national economic systems and in bringing them into accordance with the international financial standards.
Новость: Astana, August 23, 2001. Kazakhstan and Russia are the two states in former USSR, which are leading in reforms of national economic systems and in bringing them into accordance with the international financial standards. A CNA reporter informs that this conclusion was made by the British exerts from Economist Intelligence Unit. According to the experts' data, in the period 1996-2000 Russia took the 53 place in the rating of states with favorable business conditions. In 2001-2005 Russia moved to the 50 place, Kazakhstan accordingly moved from place 52 to 49. Among the other USSR states only Azerbaijan and Ukraine are listed in the rating, however these states do not meet world business standards. Economist Intelligence Unit is an authoritative agency specializing on interstate economic analyses. (www.neftegaz.ru)
24.08.2001 | FridayGasoline Futures Surge to Highest Level in More Than Two Months Ahead of Labor Day Weekend
NEW YORK (Dow Jones News) -- Gasoline prices leapt to their highest level in more than two months as supply concerns intensified ahead of the high-demand Labor Day weekend. The September gasoline futures contract on the New York Mercantile Exchange
Новость: NEW YORK (Dow Jones News) -- Gasoline prices leapt to their highest level in more than two months as supply concerns intensified ahead of the high-demand Labor Day weekend. The September gasoline futures contract on the New York Mercantile Exchange climbed 4.63 cents to 83.57 cents a gallon, the highest level since June 20. Trouble at several refineries, along with shrinking U.S. gasoline stockpiles and unusually high summer demand, powered the sharp increase in prices, traders and analysts said. Citgo Petroleum Corp., wholly owned unit of Venezuelas Petroleos de Venezuela SA, said Thursday that it expects its Lemont, Ill., refinery to remain shuttered for up to six months following a recent fire. The 160,000-barrel-a-day refinery is a major source of gasoline and diesel supply for the Chicago area. On the West Coast, Equilon Enterprises, a joint venture of Texaco Inc. (NYSE:TX - news), Royal Dutch/Shell and Saudi Aramco, shut a 73,000 barrel per day fluid catalytic cracker at its 155,000 barrel per day Martinez, Calif., refinery Wednesday, according to industry sources. By chance, the pain has been spread around the country, said Tim Evans, an analyst at IFR Pegasus in New York. The refinery snags have caused a frenetic scramble for gasoline supplies in California and Midwest cash markets, lifting wholesale prices sharply higher. Wholesale gasoline prices in Chicago jumped by about 13 cents Thursday and Friday and are about 35 cents higher since the month began, while prices in the so-called Group Three market outside Chicago rose by as much 26 cents. Group Three prices have soared about 50 cents since early August. In Los Angeles, wholesale gasoline prices jumped 10 cents to .15 a gallon. The price of Californias cleaner-burning gasoline has risen 30 cents in the past two weeks. The price spike has already brought an increase at the pump. Early reports Friday showed that Milwaukee-area prices were hovering between .73 and .79 a gallon. Chicago retail gasoline prices rose to between .80 and .89 a gallon, according to the American Automobile Association. The nationwide retail average for regular unleaded gasoline on Thursday was .44 a gallon, AAA said. Among other commodities, October crude futures rose 27 censt to 6.90 a barrel. September heating oil rose .88 cent to 74.60 cents a gallon, while September natural gas fell 10.5 cents to .706 per 1,000 cubic feet. Brent crude from the North Sea gained 35 cents to 5.95 on Londons International Petroleum Exchange. In other commodity markets: --December futures on the New York Cotton Exchange settled off their newly forged contract low of 38.57 cents on another proof of poor U.S. cotton consumption. December ended 0.02 cent lower at 38.82 cents per pound. The National Cotton Council said U.S. textile mills used cotton on a seasonally adjusted annual rate of 7.72 million 480-pound bales in July, slightly down from Junes downwardly revised figure of 7.76 million bales. People sold the market Tuesday, Wednesday and Thursday thinking that the market was going to get crushed on Friday because of a weak consumption report. Everybody was poised for this market to get clobbered, said Alan Feild, a cotton broker with Memphis-based brokerage STA Trading Services. But when nothing happened they bought all of their (shorts) back and that held the market fairly steady. --World raw sugar futures on the Coffee, Sugar & Cocoa Exchange settled sharply higher Friday, lifted by speculator-led buying in strong volumes. Large speculators are holding a heavy net-short position of sales made anticipating price declines, and when the active October contract broke through key resistance, those traders began to cover some of those positions, said brokers. The October contract finished up 0.20 cent at 8.29 cents, after touching a three-week intraday high of 8.32 cents a pound. (CICERO)
24.08.2001 | FridayLiberty Oil & Gas Ltd. Announces Continuous Growth For Q2 And For The First Six Months Of 2001
CALGARY, ALBERTA--Liberty Oil & Gas Ltd. (LBR - CDNX) announces its results for Q2 and the six-month period ended June 30, 2001.
Новость: ALGARY, ALBERTA--Liberty Oil & Gas Ltd. (LBR - CDNX) announces its results for Q2 and the six-month period ended June 30, 2001. HIGHLIGHTS FOR THE FIRST HALF OF 2001 * Cash flow for the six months of 2001 was ,645,507 compared to ,870,328 for the same period in 2000, an increase of 62%. * Average production for the six months of 2001 was 1,314 BOE/D (6:1) compared to 1,061 BOE/D for the same period in 2000, an increase of 24%. * The Company drilled 12 wells and re-completed 5 wells in Q1 and Q2 with an 82% success rate. * Established reserves additions for Q1 and Q2, evaluated by Gilbert Laustsen Jung Associates Ltd. at June 30, 2001, totaled 1,155,700 BOE (87% proven) and added 10% NPV of 6,714,000. * Undeveloped land holdings increased by 11,385 acres to 26,981 acres at June 30, 2001, an increase of 73% over year-end 2000 holdings. * Net Asset Value per share at June 30, 2001 is .76 basic and .64 fully diluted, compared to a year end 2000 NAV per share of .19 basic and .09 fully diluted. FINANCIAL Three Months Ended Six Months Ended June 30 June 30 Average Sales Volumes 2001 2000 %Change 2001 2000 %Change ---------------------------------------------------------------------- BOE/D (Natural Gas 6:1) Crude Oil & NGLs 840 607 38% 771 537 44% Natural Gas 586 468 25% 543 524 4% ---------------------------------------------------------------------- Total 1,426 1,075 33% 1,314 1,061 24% ---------------------------------------------------------------------- Average Product Prices Oil & NGLs $/Bbl 0.04 4.65 -13% 9.89 9.37 -24% Natural Gas $/Mcf .64 .86 37% .08 .00 102% Financial (sh00s) Oil and gas sales, net of royalties ,459 ,460 41% ,083 ,709 50% Cash flow ,121 ,501 41% ,646 ,870 62% Net income 27 04 80% ,796 29 93% Cash flow per share $ Basic sh.126 sh.112 13% sh.278 sh.215 29% Fully diluted sh.121 sh.109 11% sh.267 sh.209 28% Earnings per share $ Basic sh.043 sh.030 44% sh.107 sh.069 54% Fully diluted sh.042 sh.029 42% sh.103 sh.068 53% Net capital expenditures ,063 ,936 107% ,153 ,423 107% Net debt 5,840 8,596 84% 15,840 8,596 84% Weighted average number of shares outstanding Basic 16,768,106 25% 16,733,047 25% 13,373,805 13,369,634 Fully diluted 17,491,077 27% 17,390,487 27% 13,795,352 13,747,244 2001 DRILLING PROGRAM In Q1, the Company drilled 5 wells including Aerial (1), Utikuma (1), Herronton (1) and Fosterton (2). In addition, 4 wells were re-completed in the quarter in Aerial (3) and Viewfield (1). In Q2, the Company drilled 7 wells including Aerial (3), Hazlet (1), Weyburn (1), Warwick (1) and Workman (1) and re-completed a well in Viewfield (1). For the six-month period ended June 30, 2001, 12 wells were drilled and 5 wells were re-completed with an overall success rate of 82%. The drilling program for the balance of 2001 consists of drilling 6 wells in Q3 including Aerial (4) and Edson (2) and drilling 5 wells in Q4 including Aerial (2), Viewfield (2) and Utikuma (1), with a combined capital commitment of ,340,000. OUTLOOK FOR THE REMAINDER OF 2001 While natural gas prices have not performed at the levels anticipated by the oil and gas industry when 2001 forecasts were generated early in the year, it should be noted that current natural gas prices are still very attractive compared to historical rates. In spite of the current softer natural gas prices, Liberty firmly believes that the natural gas side of the business will continue to be solid for the foreseeable future, albeit at more moderate pricing levels, and the Company expects to continue the steady upward growth pattern it has established over the past 5 years. Liberty has revised its outlook for the balance of 2001 to conform to current oil and gas price levels. Using average commodity prices for Q3 and Q4 of .00/Mcf and 7.00 (U.S.)/Bbl WTI, Libertys cash flow for 2001 is expected to be 0,000,000 to 1,000,000 or sh.60 to sh.65 per share (basic), based on average production of 1600 to 1700 BOE/D. The revised 2001 cash flow forecast represents an increase in excess of 50% over the ,429,000 cash flow achieved in 2000. NOTE TO THE READER The information contained in this report may be considered to contain forward-looking statements. Such forward-looking statements address future events and conditions and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. There is no representation by Liberty that actual results will be the same in whole or in part as implied by the forward-looking statements provided. Liberty is an oil and gas exploration and production company based in Calgary with operations in Alberta and Saskatchewan. Liberty is listed on the Canadian Venture Exchange under the trading symbol LBR. The number of shares outstanding as of August 24, 2001 is 16,826,943. (Oil/energy news)
23.08.2001 | ThursdayNo firm date for commitment to PNG pipeline: ExxonMobil
ExxonMobil, the operator of the proposed .2-bil Papua New Guinea to Queensland gas pipeline project, has still not given any commitments on when a decision to proceed with the project might be made, a company
Новость: ExxonMobil, the operator of the proposed .2-bil Papua New Guinea to Queensland gas pipeline project, has still not given any commitments on when a decision to proceed with the project might be made, a company spokeswoman said Thursday. It depends on markets. We havent given any commitment on timing, she said. According to a report in PNG newspaper the Post-Courier, Moi Avei, the PNG minister in charge of the project, said the government expected the participants to make firm commitments to the project by the end of 2001, with gas agreements to be signed with the proponents the first quarter of next year. Meanwhile, The Australian newspaper said Japans Itochu Corp would Thursday sign an agreement to explore the provision of over 00-mil in funding for the PNG governments equity stake in the pipeline ( platts.com )
23.08.2001 | ThursdayUkrainian fuel company head denies problems with Turkmen gas supplies
There has been no reduction in the supply of Turkmen gas to Ukraine by the international company Itera, the head of the Ukrainian national oil and gas company Naftohaz Ukrayiny, Vadym Kopylov, said at a news
Новость: There has been no reduction in the supply of Turkmen gas to Ukraine by the international company Itera, the head of the Ukrainian national oil and gas company Naftohaz Ukrayiny, Vadym Kopylov, said at a news conference today. According to him, Itera itself has taken back the statement of its own press service on the matter. Kopylov said that today Naftohaz Ukrayiny does not owe anything to Itera and all payments for gas are made on time. Complaints that Itera every now and then makes about Ukraine are not quite justified because they have to do with contracts signed by Itera not with Naftohaz Ukrayiny but with other Ukrainian firms, in particular, with energy-generating companies. UNIAN reported before that the press service of the Itera company announced that the Kazakh company Intergaz Central Asia had officially informed the heads of Itera about a reduction in the amount of gas transit of Turkmen gas from 15 August through Kazakh territory to Ukraine to a level of 50m cu.m. a day. The reduction in gas transit was caused by the failure of the Ukrainian Fuel and Energy Ministry to fulfil its obligations, imposed by the state leaders, on the repayment of the 20m-dollar debts of Ukrainian energy generating companies to Itera company. Itera is an operator of the supply of 30bn cu.m. of gas to Ukraine from Turkmenistan in 2001. (www.neftegaz.ru)
22.08.2001 | WednesdayBenton Oil and Gas Company Completes Consent Solicitations
HOUSTON--(BUSINESS WIRE)--Aug. 22, 2001--Benton Oil and Gas Company (NYSE:BNO - news) today announced it has received the requisite consents relating to its solicitation of consents from holders of its 9 3/8% senior notes due 2007 to amend the indent
Новость: HOUSTON--(BUSINESS WIRE)--Aug. 22, 2001--Benton Oil and Gas Company (NYSE:BNO - news) today announced it has received the requisite consents relating to its solicitation of consents from holders of its 9 3/8% senior notes due 2007 to amend the indenture governing these notes, and a supplemental indenture with respect to the amendment has become operative. The Company also announced that the supplemental indenture with respect to the amendment to the indenture governing its 11 5/8% senior notes due 2003 has become operative. The Company previously announced receipt of the requisite consents relating to its solicitation of consents from holders of these notes. Benton Oil and Gas Company, headquartered in Houston, Texas, is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. This press release may contain Forward-Looking Statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts included in this release may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from the Companys expectations due to changes in operating performance, project schedules, oil and gas demands and prices, and other technical and economic factors. (CICERO)
22.08.2001 | WednesdayRussia ends suits against Sibneft
The Russian Prosecutors Office has closed investigations into charges of tax evasion by oil company Sibneft, saying no evidence of wrong-doing had been uncovered at the countrys six-largest oil producer.
Новость: The Russian Prosecutors Office has closed investigations into charges of tax evasion by oil company Sibneft, saying no evidence of wrong-doing had been uncovered at the countrys six-largest oil producer. A letter from the Prosecutors Office to Sibneft President Yevgeny Shvidler, which was obtained by Reuters, said the investigation had been closed earlier this month. Resolutions on stopping the legal cases were taken on August 1...because of the absence of any criminal elements in actions carried out by company management, the letter said. In May, the Prosecutors Office said it was investigating possible tax evasion by Sibneft, but the company said the charges were based on an old investigation that had already been resolved in its favour last year. (worldoil.com)
21.08.2001 | TuesdaySurge Petroleum Updates Progress
CALGARY, ALBERTA--Surge Petroleum Inc. has completed drilling the first of three horizontal oil wells in southeastern Saskatchewan.
Новость: CALGARY, ALBERTA--Surge Petroleum Inc. has completed drilling the first of three horizontal oil wells in southeastern Saskatchewan. The first well drilled was within the Companys Workman Unit. The horizontal leg encountered a 700 meter (2,200 feet) horizontal section of oil pay. The Workman Unit was put on water flood enhancement in the year 2000 and has been responding as planned. The new well, the first horizontal drilled within this unit, is producing at about 40 bopd and is expected to slowly increase as the re-pressurerization of the oil field proceeds. The Company holds a 15.3 percent working interest in 2,400 acres and has potential for six addition horizontal wells. The second and third horizontal wells are located within the Companys Lougheed oil field in southeastern Saskatchewan. One of the wells has commenced drilling and the other is expected to spud in September. The Company holds a 32 percent working interest in both these wells. Both wells are expected to be on production by November 2001. The three wells are part of Surges strategy to add value to its Canadian proven oil properties through the application of horizontal technology and water flood pressure enhancement. Surge is a public junior oil and gas exploration company with offices in Calgary, Alberta and Tulsa, Oklahoma. The Company trades on the Canadian Venture Exchange under the symbol SPY. (CICERO)
20.08.2001 | MondayProject for additional gas supply
The Sui Southern Gas Company Limited (SSGC) is implementing a project at a cost of Rs4.63 billion that will add an additional 350 million cubic feet per day (mmcfd) of gas to its supply by the year 2002-03.
Новость: The Sui Southern Gas Company Limited (SSGC) is implementing a project at a cost of Rs4.63 billion that will add an additional 350 million cubic feet per day (mmcfd) of gas to its supply by the year 2002-03. The project is part of an overall programme of the present government to develop the downstream gas sector, official sources told APP on Saturday. The additional gas will be utilized to meet the requirement of power generation plants, replacing imported furnace oil, and other consumer sectors. The Gas Infrastructure and Rehabilitation Project (GIRP), launched last year, is aimed at utilizing gas from new discoveries - Zamzama, Miano, Bhit, Sawan etc. The project entails relocation of compressor at Hyderabad, rehabilitation of ILBP and integration of gas from Bhit and Zamzama gas field at Dadu, sources said (dawn.com)
20.08.2001 | MondayKyrgyzstan can pay gas debt to Uzbeks only if bills paid says official
[Presenter] Kyrgyzstans debt to Uzbekistan for gas amounts to 1m dollars. This debt can be paid only if gas consumers pay their debts to Kyrgyzgaz [gas company]. The deputy head of the governments fuel and energy
Новость: [Presenter] Kyrgyzstans debt to Uzbekistan for gas amounts to 1m dollars. This debt can be paid only if gas consumers pay their debts to Kyrgyzgaz [gas company]. The deputy head of the governments fuel and energy department, Saparbek Baktybekov [phonetic], stated that gas consumers owe Kyrgyzgaz 140m [Kyrgyz] soms [exchange rate is 48 soms per dollar]. [Baktybekov] Under the agreement between the Kyrgyzgaz joint-stock company and the Uztransgaz [Uzbek gas supply company] joint-stock company, natural gas is supplied without interruption to Kyrgyzstan. I would like to point out that the Kyrgyzgaz joint-stock companys debt to the Uzbek company amounts to 1m dollars. We need to pay off the debt on time. If we do not pay on time we shall have some difficulties. I would like to say that Kyrgyz people owe the Kyrgyzgaz company 140m soms or 3m dollars for natural gas. That is why I am appealing to listeners: if every one pays for their gas on time, then we will be able to have gas during the winter. [Presenter] This was the deputy head of the governments department of fuel and energy, Saparbek Baktybekov. (hoovnews.hoovers.com)
20.08.2001 | MondayAzerbaijan: Japanese company to build gas pipeline in Azerbaijan
Japanese company NSC-Sumitomo won a tender to construct a gas pipeline for the Qaradag Hydroelectric Power Station Severnaya in Azerbaijan, Turan reports. The company will implement construction for a suggested price
Новость: Japanese company NSC-Sumitomo won a tender to construct a gas pipeline for the Qaradag Hydroelectric Power Station Severnaya in Azerbaijan, Turan reports. The company will implement construction for a suggested price of 14.025 billion yen. However, rumors of government officials involvement have angered a number of companies, which in turn refused to participate in the tender. The Japanese Bank of International Cooperation is financing the project with an 18.3 billion yen credit over 40 years with an interest rate of 0.75 percent. (Neftegaz.ru)
19.08.2001 | SundayBig Oil Faces Uphill Climb
HOUSTON (Reuters) - Its like a portly gent trying to run up the down escalator: big oil companies are failing to meet production growth targets because they are using up mature fields faster than they can find and develop big enough new ones to repla
Новость: HOUSTON (Reuters) - Its like a portly gent trying to run up the down escalator: big oil companies are failing to meet production growth targets because they are using up mature fields faster than they can find and develop big enough new ones to replace them, according to analysts. Industry giants Exxon Mobil Corp.(NYSE:XOM - news), Royal Dutch/Shell (quote from Yahoo! UK & Ireland: SHEL.L) and Chevron Corp. (NYSE:CHV - news) have all missed output targets, despite the incentive of two years of high oil prices. Recent history has shown that theres always some slippage in these numbers. Very seldom do we see a company exceed or even match its target, said ABN AMRO analyst Gene Nowak. Exxon Mobil, the worlds No. 1 oil company, adopted a 3 percent annual growth target last year but its output for the second quarter of 2001 was flat versus the same period of last year, largely because it suspended natural gas production in Indonesias Aceh province in response to security concerns. Shell, No. 2 in the world, reported that its second-quarter production grew by only one percent, well short of its 5 percent target. Chairman Phil Watts said Shell will review its growth target in the light of the uncertain outlook for global economic growth. RUNNING HARD JUST TO STAY PUT U.S. companies face a particular challenge as unilateral government sanctions keep them out of the race to develop big oil reserves in Iran and Libya -- projects that have been gratefully snapped up by their European and Asian rivals. But the struggle to prevent reserves running out faster than they can be replaced is common to all big oil companies. Depletion from existing oil fields runs at an average rate of about 5 percent per year, and that has to be replaced by an equivalent amount of new production just to keep output steady. The bigger the company, the tougher the task it faces. Small independent producers can post impressive growth rates from a low base; not so for the supermajors. To keep production flat is an achievement in itself because of their sheer size, said Fahnestock & Co. analyst Fadel Gheit. From 1998 to 2000 the six biggest publicly traded companies largely failed to replace the oil and gas they produced with new reserves, after stripping out the effect of acquisitions and revisions, according to the Andersen management consulting firm. London-based BP Plc (quote from Yahoo! UK & Ireland: BP.L) posted one of the best performances, replacing 201 percent of its natural gas production and 86 percent of its oil. Shell replaced only 42 percent of its gas and 55 percent of its oil, according to Andersen. BP SETS MOST AMBITIOUS TARGET BP has set itself the most ambitious production growth target -- 5.5 percent for this year and 5.5 to 7 percent for the longer term -- and recently said it is on track to meet this years target after a 4 percent increase in the second quarter. I wish them luck. So far theyre doing okay, but production growth is extremely difficult to sustain, said Gheit. Chevron, the No. 2 U.S.-based oil company, has an annual growth target of 4 to 4.5 percent for 1999 to 2004. But so far this year it has fallen short of its goal, with an increase of 3 percent for the first six months. ABN AMROs Nowak said investors would generally continue to favor companies that can deliver production growth. However, other performance yardsticks -- such as Shells target of a 14 percent return on capital, even if oil prices sink to 4 a barrel -- could be equally important, he argued. Oil companies continue to make big discoveries -- such as BPs billion-barrel Crazy Horse discovery in the Gulf of Mexico -- but Nowak says the pace of such discoveries and the long time it takes to develop them means non-OPEC oil output will probably lag growth of global oil demand in the next 4 to 5 years. Henry Groppe of Houston energy consulting firm Groppe Long & Littell, suspects that big oil companies have been holding back on their exploration and production because they are concerned that current high oil prices will not last. But Groppe says industry fundamentals have shifted, and sustained price strength will make companies change their tune. I think well see an acceleration of investment and activity and then well have a chance to see what kind of supply response there will be, he said. (Go.com)
17.08.2001 | FridayGazprom will fly
Russias natural gas monopoly Gazprom bought 50 helicopters Ka-226 from the Kamov helicopter company, the first deal made at this years air show MAKS-200.
Новость: Russias natural gas monopoly Gazprom bought 50 helicopters Ka-226 from the Kamov helicopter company, the first deal made at this years air show MAKS-200. Gazprom said it needs the helicopters to service oil and gas pipelines in the Far North, and will need more of them later as it steps up exploration in the Arctic. Kamov is also in talks to sell helicopters to the Ministry of Emergency Situations and to the Moscow government. Two factories, in Orenburg and in the Bashkir town of Kumertau, now assemble Ka- 226 helicopters. (CNN News)
17.08.2001 | FridayLUKoil still wants
Lukoil has enjoyed dramatic profits thanks to high world oil prices recently, and has been expanding internationally, becoming the first Russian oil major to break into the U.S. market with its purchase of Getty
Новость: Lukoil has enjoyed dramatic profits thanks to high world oil prices recently, and has been expanding internationally, becoming the first Russian oil major to break into the U.S. market with its purchase of Getty Petroleum last winter. Lukoil released long-awaited results audited to U.S. standards this week, showing that its net income tripled to .31 billion in 2000. First we will get (Lukoil stock) listed in London by the end of this year, but New York remains a goal, Vice President Leonid Fedun told a news conference. After repeated promises to sell American Depository Receipts in New York since 1999, Lukoil announced in June that it would switch its first planned foreign listing to London instead. Apparent reasons for the move were Lukoils delay in releasing financial results, and fears of U.S. government opposition over Lukoils Iraqi operations and criticism of its business practices. Critics say Lukoil, like many huge Russian companies, has flouted shareholder rights and kept questionable books, but some analysts say it is reforming as it reaches outside Russias borders. (Neftegaz.ru)
16.08.2001 | ThursdayRussia and China to conduct pipeline feasibility study
The pipeline accord was signed by officials from the Russian and Chinese governments and executives from Yukos, Transneft, and the China National Petroleum Corp.
Новость: The pipeline accord was signed by officials from the Russian and Chinese governments and executives from Yukos, Transneft, and the China National Petroleum Corp. The two sides also signed a 25-year oil supply agreement, Yukos said in a statement. Few details were provided, though the counter parties worked out forms of guarantee for oil deliveries and agreed delivery volumes and a price formula, Yukos said. The 2,400 km pipeline would run from the Siberian city of Angarsk in the Irkutsk region, where Yukos operates an oil refinery, to Datsin in north-eastern China. The pipeline could be completed as early as 2005 and ship 20 mm tpy of oil to China, rising to 30 mm tpy from 2010, Yukos said. It seems that the two sides will go their separate ways in the search for financing. The Chinese side expressed a desire to independently finance construction of the Chinese section of the pipeline, Yukos said. The signing of the pipeline and oil-delivery accords came on the penultimate day of a state visit by Chinese President Jiang Zemin. Chinese and Russian officials also discussed prospects for building a natural gas pipeline from Russia to China, Russian Energy Minister Igor Yusufov said, the Associated Press reported. The oil pipeline feasibility study should wind up next July, Yukos said. Russias share of the cost will be $ 30 mm. The move forward on the pipeline marks a victory for Yukos, after years of lobbying the Russian government to get behind its plan to build the countrys first export pipeline to Asian markets. Yukos currently ships oil from Angarsk to China aboard railroad tankers. The company is also developing a series of eastern Siberian oil fields that are distant from all markets apart from Chinas. ( Neftegaz.ru)
16.08.2001 | ThursdayCabot Oil & Gas Completes Merger With Cody Company
HOUSTON, Aug. 16 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG - news) today announced the completion of the merger with Cody Company, the parent company of Cody Energy LLC. Under the terms of the definitive merger agreement, the total consi
Новость: HOUSTON, Aug. 16 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG - news) today announced the completion of the merger with Cody Company, the parent company of Cody Energy LLC. Under the terms of the definitive merger agreement, the total consideration given to Cody shareholders was 81 million in cash and two million shares of Cabot Oil & Gas common stock, with a value per the agreement of 4.497 per share. Cody Company merged with a wholly- owned subsidiary of Cabot Oil & Gas Corporation. The cash portion of the purchase price was almost entirely funded through a private placement of debt that Cabot completed on July 26, 2001. Through the issuance of new notes, Cabot raised 70 million under similar terms and conditions as the Companys existing debt agreements. These new notes consist of three different series of obligations with maturities of 10, 12 and 15 years, and an overall average coupon rate of 7.33%. The addition of the Cody reserves further solidifies Cabots position in the Gulf Coast, said Ray Seegmiller, Chairman and Chief Executive Officer. During due diligence, we have identified multiple exploration opportunities that complement the significant level of development drilling which originally attracted us to these assets. The Gulf Coast drilling program now has a three-year inventory of exploration and development drilling prospects, balanced between south Texas and south Louisiana. Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains, Appalachia and Mid-Continent. For additional information, visit the Companys Internet homepage at www.cabotog.com . The statements regarding future financial performance and results and the other statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price (including regional basis differentials) of natural gas and oil, results of future drilling and marketing activity, future production and costs and other factors detailed in the Companys Securities and Exchange Commission filings. (CICER0)
12.08.2001 | SundayShell plans worlds first floating LNG plant
Royal Dutch Shell, Europes largest oil company, said it is planning to build the worlds first floating liquefied natural gas plant.
Новость: Royal Dutch Shell, Europes largest oil company, said it is planning to build the worlds first floating liquefied natural gas plant. The Anglo-Dutch company said the plant would be constructed in the Timor Sea, north of Australia. Shell is being forced into the move because a pipeline from East Timor to the eastern Australian city of Darwin has been cancelled. The LNG process makes gas into liquid so that it can be transported safely by tanker. It is then returned to gas form at its destination. Shell said its floating plant - which will be the length of four football pitches and the width of about one pitch - would process, liquefy and store the gas. The LNG would then be pumped on to tankers for transporting to the U.S. U.S. oil company Philips Petroleum (P: Research, Estimates) last week cancelled plans to build a pipeline from the gas- and oil-rich Timor Sea to Australia because of a dispute with the East Timor government over the tax and financial conditions of the project. The decision threatened to undermine Shells ?3.5 billion Greater Sunrise gas scheme, which would have shared the Philips pipeline. Shell (SHEL) said the floating LNG plant would cut development costs in the Timor project by up to 40 per cent, as well reducing the amount of greenhouse gas emissions. The floating plant solution may also be used at other remote gas fields run by Shell, the company said. We have been seeking a formula for the development of our gas resources in the Timor Sea which is commercially and environmentally sound, and with this package we believe we have found it, said Shell executive Alan Parsley. As well as manufacturing LNG, the floating plant will offer the option of compressing gas for delivery to Darwin by pipeline, should that project be resurrected by Philips Petroleum. (NefteGas)
12.08.2001 | SundaySibneft And Yukos Agree
Moscow, 9 August 2001; Sibneft and Yukos have agreed to set up a joint venture to study offshore zones in the Chukotka and East Siberian Seas off the coast of the Chukotka autonomous district.
Новость: Moscow, 9 August 2001; Sibneft and Yukos have agreed to set up a joint venture to study offshore zones in the Chukotka and East Siberian Seas off the coast of the Chukotka autonomous district. Initially, the partners will process existing seismic data from the area. They later intend to conduct further seismic studies, which may be followed by exploration drilling. Sibneft and Yukos will hold equal shares in the joint venture to be established in the third quarter, with financing and management to be shared equally by the two partners. Sibneft is currently drilling its first onshore exploration well in Chukotka from a site on Molchalivy island. The company is also preparing to develop the West Ozyornoye gas field. The geological structure of the East Siberian Sea and Chukotka Sea basins is believed to be similar to that of Alaska's North Slope, which harbors substantial oil and gas reserves. (NefteGas)
07.08.2001 | TuesdayRussian and Foreign Companies: Whos First to Market with Northern Caspian Oil?
Having lost interest in offshore reserves of Azerbaijan and Turkmenistan, both Russian and Western investors are shifting their aims to Northern Caspian reserves.
Новость: Having lost interest in offshore reserves of Azerbaijan and Turkmenistan, both Russian and Western investors are shifting their aims to Northern Caspian reserves. The consortium partners in OKIOC, which has been formed to explore and develop the Kazakh sector of the sea, are revving up their project. They are apparently afraid that Russian competitors operating in the neighborhood might start commercial production so fast that incremental volumes of Kazakh oil would face a problem finding a buyer.
06.08.2001 | MondayGas prices will rebound next year from nuclear outages, analysts say
Natural gas prices may rebound next year thanks to decreased nuclear power production, Raymond James & Associates said.
Новость: Nuclear power is headed for a cliff next spring as power plants go off line for planned maintenance outages, analysts said. Demand for natural gas will increase on the strength of reduced nuclear power generation. Lower nuclear generation should boost gas demand 1-1.5 bcfd by May 2002 to serve gas-fired generation, said Fred Schultz, analyst with Raymond James in Houston. He estimated nuclear power generation replaced 1.5-2.5 bcfd of gas demand in gas-fired electric generation this summer. That offset is expected to continue into the fall when gas prices will finally bottom out, Schultz predicted. By next spring, gas demand and prices should improve dramatically, Schultz said, creating an astounding 3.5 bcfd swing in gas demand. The nuclear power fleet has been run flat out for the last 2 years. Utilization for the fleet is running on average at an historic high of 97%. In 2002, repairs and refueling of the fleet should reduce utilization to 91%, Schultz estimated. Each additional unscheduled or forced outage furthers Raymond Jamess gas rebound story, as gas-fired electric generation would be the logical band-aid to bridge the gap of lost electric capacity, he said. Schultz predicts almost a 17% month-over-month switch from nuclear power to gas fired generation from April to May of 2002. Next year is shaping up to be a far more bullish year for gas, he said.(Oil and Gas Jornal)
03.08.2001 | FridayConservatives vow good terms with OPEC
Norways main opposition Conservative Party, leading the ruling Labor government in polls ahead of September elections, vowed Friday to have a good relationship with oil cartel OPEC should it win.
Новость: In general we are more in favor of free-market regulation (than Labor), but I dont think you will see any dramatic changes concerning Norwegian policy towards OPEC, Jan Tore Sanner, energy spokesman for the Conservatives, told Reuters. We will continue to have a good relationship with oil producing or petroleum producing countries, and that includes countries which are members of OPEC and other countries, he said. Norway, the worlds biggest non-OPEC oil exporter, has said it has no immediate plans to curb its 3.1 million barrels per day of oil output despite the Organization of the Petroleum Exporting Countries plans to make cuts from September 1. (Reuters)
27.07.2001 | FridayIran welcomes talks in Caspian dispute
Iran on Friday praised a call by neighboring Azerbaijan to hold talks on a dispute in the energy-rich Caspian Sea after Iran ordered foreign ships out of an area it sees as Iranian territory.
Новость: Foreign Minister Kamal Kharrazi ... welcomed the statements by Azeri President Haydar Aliyev to settle the Caspian Sea issue through peaceful negotiations, Irans news agency IRNA said. Kharrazi said the two countries should consider the Caspian as an area of friendship and peace but added that Iran would seriously protect its interests in the Caspian Sea, the news agency said. In Baku, Aliyevs press service said in a statement that the president met Irans ambassador Thursday to discuss Mondays incident, in which two survey vessels operated by British oil giant BP were ordered to retreat by an Iranian gunboat. They decided all issues with regard to the relationship between Azerbaijan and Iran should be resolved through negotiation, the statement said. Azerbaijan earlier protested to Iran over the incident. BP said it had suspended exploration in the area. A BP-led consortium has a license from the Azeri government to explore the area it calls the Araz-Alov-Sharg concession, which Iran calls the Alborz block. Iran has said the five coastal states, which also include Kazakhstan, Russia and Turkmenistan, should decide jointly on the Caspians energy riches or demanded a 20 percent area. (CNN)
26.07.2001 | ThursdayRussia Must Not Feed Crude Oil to China
On July 11, Slavneft arranged a public presentation of its activities and plans in Eastern Siberia.
Новость: On July 11, Slavneft arranged a public presentation of its activities and plans in Eastern Siberia. After five years of extensive exploration of Kuyumninsky and Tersko-Kamovsky blocks in the Yurubcheno-Tokhomskaya Zone, the company came to the conclusion that oil and gas riches of the area are comparable to those in Western Siberia. To put this huge potential to use, the federal governments assistance is required, Slavneft managers insist adding that China is not the best destination for selling Eastern Siberian crude. (RusEnergy)
25.07.2001 | WednesdayWaiting for Competition: Will Itera Retain Leadership on FSU Gas Market?
Early this year, gas flows operated by the Itera group of companies suffered a dramatic change. Itera lost access to gas volumes it used to buy from the administration of Yamal-Nenetsk A
Новость: Early this year, gas flows operated by the Itera group of companies suffered a dramatic change. Itera lost access to gas volumes it used to buy from the administration of Yamal-Nenetsk Autonomous District, about one-third of all gas it sold last year. This event inspired some analysts to suppose that Itera would be unable to fulfill its contracts of gas supplies to FSU nations. A thorough analysis of gas sources still available to the group shows that Itera has secured itself against such events by investing in gas production, and hopes to retain a solid position on its traditional markets.
20.07.2001 | FridayAlberta Energy boss says dropping natural gas prices are unsustainable
While falling natural gas costs have made most everyone forget the abyss of last winters sky-high prices, it doesnt signal a return to ultra cheap energy, the president of Alberta Energy Co. said Thursday. During
Новость: While falling natural gas costs have made most everyone forget the abyss of last winters sky-high prices, it doesnt signal a return to ultra cheap energy, the president of Alberta Energy Co. said Thursday. During an analysts call to explain AECs strong second quarter profits, Gwyn Morgan said his company still believes the future of natural gas is for extremely strong and sustainable growth. Only six months ago, natural gas prices hit an all-time high of about .79 US per thousand cubic feet. On Thursday, gas was selling for less than a third of that price at .94 US on the New York Mercantile Exchange after falling another 15 cents. Morgan said last winter, North America was reeling from the most serious shortfall of electricity and natural gas supplies in memory. Alberta Energy is one of North Americas largest gas producers and a major player in the Canadian energy industry. Morgan said the confluence of events that brought on the record-high gas prices made it very clear how close to the precipice the gas supply and demand balance had become. We saw the abyss, and everyone thought we were in for a continuing and extended crisis, said Morgan. Three months later, after a near opposite chain of events, many analysts are convinced the industry has returned to plentiful and cheap gas and energy. We believe that history will show that the extreme confluence of events of last winter were not sustainable on the upside and the current confluence of downside events are equally unsustainable. Morgan said anyone who believes that natural gas prices will stay low has to believe that there will be no hot summers and no cold winters, that the many new gas-fired power plants wont drive up demand, and that the North American economy will remain sluggish. And if you believe all of those things, what stock of what company would you invest in? Despite the drop in gas prices, AEC still managed to report a whopping 84 per cent increase in second-quarter profits, propelled along by increased production. The profit figures were well received by investors, who pushed up the companys shares 76 cents to 3.76 on the Toronto stock market Thursday. The oil and gas producer said it achieved record earnings of 15 million, or .23 per share for the second quarter, much higher than its 17.1 million profit for the same 2000 quarter. Cash flow from operations was 58 million, or .32 per share diluted, a 48 per cent increase over the same period last year. Quarterly gross revenues were .9 billion, up from .2 billion a year earlier. The earnings were driven by a 39-per-cent surge in natural gas production, which was at 1.5 billion cubic feet per day by the end of the quarter. AECs gas price averaged .14 per thousand cubic feet during the second quarter, up 47 per cent from an average price of .19 per thousand cubic feet during the second quarter of 2000. For the first six months of 2001, AEC said it had record earnings of 99 million, or .63 per share diluted, a 151 per cent increase, compared to 38 million, or .56 per share diluted, in 2000. The company expects its second half performance will be even stronger. We are targeting a further 24 per cent increase in total oil and gas sales to average 420,000 barrels of oil equivalent a day, Morgan said in a release. As well, unit operating costs are expected to drop as a result of the higher volumes and completion of scheduled maintenance at gas plants, Syncrude and in Ecuador during the second quarter. The new era for natural gas is just beginning and AECs shareholders are extremely well positioned to benefit from this. (vancouverprovince.com)
20.07.2001 | FridayCanadian scientists to study sea bottom along proposed gas pipeline route
Canadian scientists are about to begin environmental studies vital to a proposed natural gas pipeline off the Mackenzie Delta coastline.
Новость: Canadian scientists are about to begin environmental studies vital to a proposed natural gas pipeline off the Mackenzie Delta coastline. A coast guard ship is heading north this month to study the ice and sea bed of the frigid waters of the Beaufort Sea - research needed for the so-called over-the-top route for a proposed natural gas pipeline to bring Alaskan and Canadian natural gas to southern markets. Theres a general scientific interest in the western Arctic right now being elevated by the questions of climate change and oil and gas, said Martin Bergmann of the Department of Fisheries and Oceans. One of the two proposed routes for bringing the vast natural gas fields of Alaska to southern markets involves building an undersea pipeline from that states Prudhoe Bay to the Mackenzie Delta. That pipeline would then head south along the Mackenzie River, picking up Canadian gas along the way. The route has the enthusiastic backing of aboriginal and territorial leaders in the Northwest Territories. Analysts say it would also be shorter and cheaper than its main rival, a route along the Alaska Highway. But before engineers can design a pipeline, more information is needed about the sea bed in the area. They also need to know how thick the ice gets and how deeply pressure ridges force it to scour the sea bed. Those are questions the voyage of the CCGS Nahidik will begin to answer, said Jon Biggar of the Canadian Hydrographic Service. The thrust is to evaluate some newer equipment weve acquired and to get a better idea of the sea bottom, he said. N.W.T. Premier Stephen Kakfwi called the voyage of the Nahidik a welcome sign of support for a Mackenzie Valley pipeline from the federal government. Theyre checking it out, is my sense, he said. They dont want to look like theyre committed, but theyre very interested in supporting a Mackenzie Valley route. The Nahidik is scheduled to sail on July 30. During its nearly three-week cruise, it will ply the waters between Herschel Island near the Alaska-N.W.T. border and Tuktoyaktuk, on the eastern side of the Mackenzie Delta. Its new multi-beam sonar is expected to illuminate the sea bottom in much greater detail than anything before. The information generated will allow you to take a photograph of the bottom of the sea floor, said Bergmann. Its much, much better resolution than what we have right now. Although this summers cruise is only the start of a multi-year project, data is expected to be available by the spring of 2002. The most recent research on the area the pipeline would go through dates from the 1970s and 80s, the last time there was interest in the Norths energy reserves. Scientists found a shallow coastal shelf between five and 60 metres deep that stretches for kilometres off the shore. The bottom is generally sandy and silty. As well as hydrographic information, the Nahidik will collect a wide variety of biological and climatic data. Were not expecting that the multi-beam system is going to answer every question, but its going to be a good start, said Bergmann. (CICERO)
19.07.2001 | ThursdayCabot Oil & Gas Announces Record Second Quarter Results; Continued Strong Price Realizations Drive Significant Increase in Profits
Cabot Oil & Gas Corporation (NYSE: COG - news) today announced record second quarter profits. The Company reported second quarter net income available to common shareholders of 6.7 million, or $.56 per share, before a non-cash impact related to SF
Новость: Cabot Oil & Gas Corporation (NYSE: COG - news) today announced record second quarter profits. The Company reported second quarter net income available to common shareholders of 6.7 million, or $.56 per share, before a non-cash impact related to SFAS 133, Accounting for Derivative Instruments and Hedging Activities (see discussion below). Discretionary cash flow for the quarter was 6.8 million, or .92 per share. This compares with last years second quarter profits of .6 million, or $.10 per share, and discretionary cash flow of 0.9 million, or $.78 per share. Last years comparable results are before taking into account the net expense related to certain non-recurring items which included a gain from the repurchase of preferred stock, a field impairment and costs associated with an office closing. High realized prices for both natural gas and oil, along with increasing production, continue to drive quarterly results. For the quarter, natural gas prices improved 80% and oil prices improved 23% over the prior year period, with Cabot realizing an average price of .79 per Mcf and 7.86 per barrel in the second quarter of 2001. Our hedging program limited our exposure to falling gas prices during the quarter. If you recall, our position consists primarily of a series of costless collar arrangements that are in place through October (with approximately a .00 floor and .00 ceiling per Mmbtu) and currently cover over 50% of the Companys gas production, said Ray Seegmiller, Chairman and Chief Executive Officer. Cabot realized .4 million in cash through its derivative positions in the second quarter adding $.28 to the realized gas price. Production of 17,739 Mmcfe (194.9 Mmcfe per day) during the second quarter of 2001 was 11% above last years corresponding level. The increase resulted primarily from gas and oil production in the Gulf Coast region that more than offset production declines in Appalachia and the West. The primary reason for the increase in production has been our success in south Louisiana at the Etouffee prospect, as well as the Augen, Bon Ton and Krescent wells, commented Seegmiller. Because of the timing of our drilling program, second quarter production was slightly below the production in this years first quarter (17,862 Mmcfe). Several new wells were turned in-line during June which brought our exit rate for the quarter to 210 Mmcfe per day. In terms of cost comparisons between second quarters the increase in production reduced the Companys unit cost for production and pipeline operating expense, along with administrative expense, while the Company experienced incrementally higher production taxes and exploration expense. The increase in production taxes resulted from the significant increase in oil and natural gas prices. The higher exploration expense in the quarter was the result of four dry holes totaling million (three in the Gulf Coast and one in Appalachia), along with million of incremental investment in 3-D seismic. For 2001, we increased our overall exploration program due to the stronger natural gas price outlook by expanding the number of exploration wells in the program (which raises our exposure to dry holes) and investing in additional 3-D seismic. Through six months the exploration expenditures are consistent with our budget, added Seegmiller. Year-to-date For the six months ended June 30, 2001, Cabot Oil & Gas reported a record- setting profit of 1.9 million, or .76 per share, before the non-cash impact relating to SFAS 133, while discretionary cash flow was 32.3 million, or .50 per share. For comparison, last years first half results were a profit of .4 million, or $.21 per share, and discretionary cash flow of 3.1 million, or .68 per share, before non-recurring items. A 118% increase in the price of realized natural gas, a 26% increase in oil price realizations and a 10% increase in equivalent production were the primary drivers for the year-over-year improvement, partially offset by an increase in exploration expense. As of June 30, 2001, Cabot Oil & Gas had reduced its total debt to 87 million, a 2 million reduction since last quarter. In May we paid off our 10.18% Notes one year early utilizing existing borrowing capacity under our revolving credit agreement. The lower debt levels enabled us to make the strategic Cody Energy acquisition, the first benefits of which are expected to be realized upon closing which is scheduled during the third quarter, stated Seegmiller. SFAS 133 During the first quarter the Company recognized a non-cash gain relating to SFAS 133 of .2 million (.8 million after-tax). This unrealized gain resulted from changes in the market value of existing derivatives. As the derivatives expire, the unrealized gain reverses. Thus, the second quarter recognized a non-cash charge of .0 million (.1 million after-tax). For the six month year-to-date period, a .2 million ($.7 million after-tax) non- cash, unrealized gain remains. Listen in live to Cabot Oil & Gas Corporations second quarter earnings discussion with financial analysts on Friday, July 20, 2001, at 9:30 AM EDT at www.cabotog.com . A teleconference replay is also available at (800) 633-8284, reservation number 19126834. The audio webcast and teleconference replay will be available from July 20 to July 27, 2001. Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains, Appalachia and Mid-Continent. For additional information, visit the Companys Internet homepage at www.cabotog.com . The statements regarding future financial performance and results and the other statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price (including regional basis differentials) of natural gas and oil, results of future drilling and marketing activity, future production and costs and other factors detailed in the Companys Securities and Exchange Commission filings.
19.07.2001 | ThursdayВас здесь не стояло. Крупные российские компании проводят зачистку нефтяной промышленности от иностранцев
Российские нефтяные компании, накопившие деньги на высоких ценах на нефть, развернули наступление на небольшие независимые предприятия - как самостоятельные, так и действующие в составе СП.
Новость: Российские нефтяные компании, накопившие деньги на высоких ценах на нефть, развернули наступление на небольшие независимые предприятия - как самостоятельные, так и действующие в составе СП. В подтверждение этой тенденции ЛУКОЙЛ купил канадскую компанию Байтек (Bitech Petroleum), ТНК вытеснила канадскую же Norex Petroleum из СП Корпорация Югранефть, а Sibir Energy попыталась, правда, пока неудачно, купить Англо-Сибирскую нефтяную компанию. Не везет канадцам Процесс активного поглощения СП российскими компаниями начался три года тому назад. В 1998 году ТНК со скандалом вытеснила из СП Тура Петролеум канадского партнера - компанию Black Sea Energy. Через год массированное наступление на зарубежных совладельцев СП повел ЛУКОЙЛ, который, поглотив КомиТЭК, сразу же попытался перевести под свой контроль многочисленные СП, действовавшие в Республике Коми. В числе первых натиску напористых лукойловцев уступили крупные СП Нобель Ойл и КомиАрктикОйл. В остальных СП на территории Коми иностранные партнеры могли остаться только в том случае, если они соглашались на подчиненную роль, а управление предприятием полностью переходило к представителям ЛУКОЙЛа. Та же картина наблюдалась и в Перми. На базе компании ЛУКОЙЛ-Пермь произошла консолидация семи СП, в которых впоследствии иностранные доли были выкуплены российской компанией. Иностранное участие сохранилось только в Волгодеминойле (германская Wintershall), Пермьтексе (канадская Soco International) и ПермьТОТИнефть (эквадорская Totisa). Потом ЛУКОЙЛ попросил канадскую компанию Calgary Overseas из СП Ватойл, добывающего более 3 млн тонн нефти в год, и израильтян - из Лукойл-АИК. А после консолидации совместных предприятий, судя по объявленной сделке с Байтеком, настала очередь и самостоятельных иностранных компаний. Устраняя конкурентов Как полагают аналитики Объединенной финансовой группы, приобретение Байтек за 80 млн долларов является для ЛУКОЙЛа более выгодной альтернативой, чем инвестирование тех же средств в инструменты денежного рынка. Однако мы считаем, что ЛУКОЙЛ за счет инвестирования 80 млн долларов в свои уже существующие месторождения мог добиться аналогичного или даже большего увеличения добычи, чем в результате сделки с Bitech, - заявляют эксперты ОФГ. Они же подметили и другую выгоду, которую ЛУКОЙЛ извлекает из приобретения канадской фирмы. Сделка позволяет ЛУКОЙЛу усилить позиции в Тимано-Печоре, предотвратив возможное поглощение Байтека другими крупными российскими компаниями. Покупка одной из последних независимых нефтедобывающих компаний в Республике Коми делает угрозу возникновения конкуренции менее вероятной. Создается впечатление, что для некоторых российских нефтяных компаний - таких как ЛУКОЙЛ и ТНК - экспансия путем поглощения и приобретения активов в России и за границей на данном этапе приобрела самодовлеющее значение. В этот процесс вкладываются значительные средства, заработанные от экспорта нефти по нынешним высоким ценам. В условиях, когда наращивание добычи ограничено низким спросом на внутреннем рынке и практически не растущим спросом на традиционных европейских рынках, ЛУКОЙЛ, ТНК и другие российские компании предпочитают развиваться вширь, а не вглубь, наращивая активы внутри многочисленных дочек и внучек. Мишенью для захвата может стать любое СП. Список ушедших В середине 90-х годов база данных RusEnergy.com по совместным нефтяным предприятиям в России насчитывала больше сотни названий. Некоторые из учтенных в ней СП были к тому времени уже ликвидированы, некоторые бездействовали, но в целом можно было сказать, что компании с иностранным участием представляли собой значительный сегмент отрасли. В 1994 году заявки на регистрацию собственной добычи в Минтопэнерго подало 31 СП, и добыча эта составила 12,68 млн тонн в год, причем 95 процентов этого объема пошло на экспорт. С тех пор список иностранных инвесторов, бросивших свои СП в России, почти сравнялся по длине с перечнем действующих предприятий. Среди покинувших негостеприимную российскую землю были и большие, и маленькие компании: British Gas, OConnor & Young, Pennzoil, Phibro Energy, Anglo Suisse, Bechtel, Amoco, Glencore, Anderman/Smith, Bula Resources, Black Sea Energy, BHP и так далее: Часть своих проектов свернули Shell, BP и Occidental Petroleum. Примечательно, что число нефтедобывающих компаний, называющих себя совместными предприятиями, даже увеличилось до 45, а доля в российской добыче повысилась с 4 процентов в 1994 году до 7 процентов в прошлом. Однако при более пристальном рассмотрении выясняется, что многие СП могут называть себя предприятиями с иностранными инвестициями только весьма условно. Подались в иностранцы Во многих случаях в роли иностранного партнера в СП выступает зарегистрированная за границей дочка российской компании. Так, в СП АИК-ЛУКОЙЛ участвует компания Lukoil Israel, а совладельцем ирландской Aminex - партнера СП Амкоми и Идельойл - является Зарубежнефть. Такой заграничный партнер нескольких СП, как британская Sibir Petroleum, принадлежит предпринимателю Шалве Чигиринскому и его партнерам. Российских совладельцев имеют британская Farco Group (СП Нордгаз), швейцарская TB Com (СП Северная нефть), ирландская Dana Petroleum (СП Ёганойл) и другие. Даже Ассоциация предприятий с иностранными инвестициями в нефтедобыче и нефтепереработке, известная как АссоСПнефть, стала с недавних времен именоваться просто Ассонефть, поскольку многих ее членов уже невозможно зачислить в категорию СП. Почему российские предприниматели так любят выступать в роли иностранных учредителей СП? Причина проста: малые предприятия, включая СП, до сих пор получают более высокую квоту на экспорт, в процентном отношении к добыче, чем крупные российские компании. Если ЛУКОЙЛ полностью интегрирует свои СП в состав собственных подразделений, что сделать совсем несложно, то он лишится части своей экспортной выручки.
19.07.2001 | ThursdayDomestic Majors Purge Foreigners Out Of Russian Oil Industry
Russian companies use their earnings from high oil prices to wage an offensive campaign against small independent producers and foreign partners of various joint ventures
Новость: Russian companies use their earnings from high oil prices to wage an offensive campaign against small independent producers and foreign partners of various joint ventures. LUKOIL is buying Canadas Bitech Petroleum, Tyumen Oil is squeezing another Canadian company, Norex Petroleum, from Yugraneft Corporation JV, and Sibir Energy made an abortive attempt at taking over UK-registered Anglo-Siberian Oil Co.
19.07.2001 | ThursdayArmenia urges Iran to accelerate laying of gas pipeline
evan, July 18. Armenian President Robert Kocharian on Tuesday called on Iran to expedite the laying of a gas pipeline which would transfer Iranian gas to Armenia, IRNA reports. The gas pipeline should
Новость: Yerevan, July 18. Armenian President Robert Kocharian on Tuesday called on Iran to expedite the laying of a gas pipeline which would transfer Iranian gas to Armenia, IRNA reports. The gas pipeline should come on stream as soon as possible and Tehran should take more serious steps in this regard, Kocharian told the Iranian head of Supreme National Security Council Hassan Rouhani who is here on a regional tour. The 140-kilometer (48-mile) pipeline should cost some 138 million dollars and should be completed within months. Armenia will begin the construction by building a section of the pipeline between its southern towns of Megri and Kadzharan, a project worth some 26 million dollars. Iran has the worlds second largest reserves of natural gas after Russia. Kocharian said Tehran and Yeravan should make more joint ventures in a bid to broaden their economic relations. Iran plays an important role in the world energy market and it had better be present in the regional energy market, he said. As for the security issues, he said, Yerevan will never forget the ceaseless efforts made by Iran in establishment of a durable peace and security in the region. Armenia will rebuff any plan which may endanger Irans national security, he said. For his part, Rouhani said that the isolation of Armenia would estabilize the Caucasian region. Iran supports contribution of all Caucasian states in establishment of a durable peace and stability. Iran and Caucasia enjoy common interests and Iran is seeking to establish friendly ties with all Caucasian states, he said. Touching on the regional crises, he said that Iran is ready to help put an end to the Karabakh crisis. Rouhani dismissed presence of aliens as a solution to the Karabakh crisis, noting, only under cooperation of all regional countries can the crisis be solved. The Iranian official also said that Kocharians upcoming visit to Tehran would be a turning point in bilateral relations between the two countries. (caspian.ru)
18.07.2001 | ThursdayCenturion to buy stakes in two Egyptian E&P projects
Centurion Energy International, a Calgary-based E&P company, Tuesday said it has agreed to buy stakes in two Egyptian upstream ventures from TransAtlantic Petroleum Corp. Centurion would not disclose
Новость: Centurion Energy International, a Calgary-based E&P company, Tuesday said it has agreed to buy stakes in two Egyptian upstream ventures from TransAtlantic Petroleum Corp. Centurion would not disclose terms, an official said, because of pending talks on other stakes in the fields involved. Centurion said it has agreed to purchase a 30% interest in the onshore West Gharib Concession near the Gulf of Suez and a 25% working interest in the Central Sinai Concession in the Sinai Desert. The Hana Field, located within the West Gharib Concession (625,000 acres) is producing approximately 1,750 b/d from eight wells with additional undeveloped discoveries in the lower zones of the field, Centurion said. Proved reserves for the field are independently estimated to be 1.8-mil bbl, Centurion said. The Central Sinai Concession has a heavy oil discovery that is currently being evaluated and holds potential for a heavy oil development project. The deal is effective June 30 and subject to usual due diligence, Centurion said. The company also has a stake in Egypts El Wastani East and a venture in Tunisia. (platts.com)
18.07.2001 | WednesdayGas Leak Forces Evacuations in San Francisco
A gas leak in the Russian Hill neighborhood of San Francisco forced evacuations of four buildings.
Новость: A gas leak in the Russian Hill neighborhood of San Francisco forced evacuations of four buildings. A contractors backhoe apparently broke a two-inch gas main about 9:20am near the intersection of Union and Leavenworth. Twenty people in four buildings were evacuated as PG&E crews worked to cap the leak. There was no fire or explosion, and no injuries were reported. The leak was capped just after noon, and residents were allowed to return to their homes. (dailynews.yahoo.com)
18.07.2001 | Wednesdayakarta to award oil exploration rights this month
Indonesia said on Wednesday it planned to award oil exploration rights at the end of this month for up to nine blocks and would open new areas for tender in August.
Новость: Indonesia said on Wednesday it planned to award oil exploration rights at the end of this month for up to nine blocks and would open new areas for tender in August. We are currently still evaluating the bidders. There are several oil companies that are already operating in Indonesia, such as BP (quote from Yahoo! UK & Ireland: BP.L), Unocal (NYSE:UCL - news) and Total , involved in the bidding, Director-General of Oil and Gas Rachmat Sudibyo told reporters. We plan to announce the winner by the end of this month and we will open new areas for tender. Indonesia in February opened the tender for the nine oil and gas blocks, including six areas in the Makassar Strait, where California-based Unocal Corp recently found a large oil reserve. There are about two areas in Makassar Strait that seem to be less attractive for the oil firms. For those areas, the government will consider oil incentives, Sudibyo said without elaborating. He said about 14 new areas, including two in the sea off East Kalimantan and six in the Arafuru Sea off southeast Indonesia, would be tendered in August. We will open the new tender after we award the areas that were already tendered in February, Sudibyo said. Indonesia, the only Asian member of the OPEC cartel, was struggling to boost its oil production, including through opening new areas for exploration. The country produced 1.24 million barrels per day (bpd) of crude oil in June, compared with 1.23 million bpd in May. It also produced 130,000 bpd of condensates in June, compared with 120,000 bpd in May. Indonesias OPEC quota is 1.255 million bpd. (Platts)
17.07.2001 | TuesdayBaku Begs Disenchanted Foreign Operators to Keep On Drilling
Azerbaijani officials angrily criticize those foreign operators who abandon projects after the first dry well.
Новость: Azerbaijani officials angrily criticize those foreign operators who abandon projects after the first dry well. The principal argument of Baku is the fact that commercial discoveries on other parts of the world were often made after dozens of exploration wells failed to yield anything of value. This type of logic fails to persuade the operators, mostly because international investors have a plethora of places to choose from, where they can explore with less risks and less expenses than in Azerbaijan.
17.07.2001 | TuesdayStatoil ASA: Over-Allotment Option for Shares Partially Exercised
DnB Markets, Morgan Stanley and UBS Warburg, who are joint global coordinators acting on behalf of the underwriters, have partially exercised the over-allotment option to purchase additional ordinary shares in Statoil ASA (OSE:STO).
Новость: DnB Markets, Morgan Stanley and UBS Warburg, who are joint global coordinators acting on behalf of the underwriters, have partially exercised the over-allotment option to purchase additional ordinary shares in Statoil ASA (OSE:STO). The Norwegian Ministry of Petroleum and Energy had granted the over-allotment option to the underwriters in connection with the listing of Statoils ordinary shares on June 18. 11,239,522 ordinary shares were sold under the over-allotment option at the price of NOK 69 per share. Statoils free float after the exercise of the option is 394,417,002 shares, or 18.2 percent. All proceeds from the partial exercise of this over-allotment option will go to the Norwegian Ministry of Petroleum and Energy. All proceeds from the partial exercise of this over-allotment option, NOK 776 million, will go to the Norwegian Ministry of Petroleum and Energy. This is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered or exempt from registration. A public offering of securities in the United States has been made by means of a Prospectus that may be obtained from Statoil or the Norwegian State and that contains detailed information about the company and management, as well as financial statements. Statoil and the Norwegian State have registered securities for sale in the United States. This announcement has been issued by, and is the sole responsibility of Statoil ASA and has been approved for the purposes of section 57 of the Financial Services Act 1986 of the United Kingdom by Morgan Stanley & Co. International Limited and UBS Warburg Ltd., each of which are regulated in the United Kingdom by The Securities and Futures Authority Limited. Morgan Stanley & Co. International Limited and UBS Warburg Ltd. are acting for Statoil ASA and the Norwegian Ministry of Petroleum and Energy and are not acting for any other person in connection with the offering of securities, and will not be responsible for providing to any other person the protections afforded to customers of Morgan Stanley & Co. International or of UBS Warburg Ltd. or for providing advice in relation to the offer. Stabilization/FSA. (IR@Statoil.com)
17.07.2001 | TuesdayAustralia limits MTBE in gasoline to 1% from Jan 1, 2004
The Australian refining industry Tuesday said it would have preferred an immediate ban on the use of MTBE in gasoline, rather than the 2004 timetable announced by the federal government. Australian federal
Новость: The Australian refining industry Tuesday said it would have preferred an immediate ban on the use of MTBE in gasoline, rather than the 2004 timetable announced by the federal government. Australian federal Environment Minister Robert Hill Jul 15 unveiled a new fuel standard limiting MTBE in gasoline to 1% by volume from Jan 1, 2004. The standard provides a reasonable timeframe for independent importers to source supplies of gasoline which meet the new requirements, Hill said. Under current federal legislation, gasoline containing up to 7% MTBE can be imported and sold in Australia. But the states of Queensland, Western Australia and South Australia have already banned the additive, Australian Institute of Petroleum executive director Bryan Nye said. New South Wales and Victoria--Australias most heavily populated states--have so far taken no action, prompting criticism from the AIP, which represents the four local refiner/marketers: BP, Caltex, Mobil and Shell. Local independent fuel importers such as Trafigura currently import gasoline containing MTBE from sources in Asia. The local refiners do not use MTBE and had lobbied the government to ban the additive on the grounds of the danger it poses to groundwater if spilled. Also on Jul 15, the government announced its standards for olefins in fuel. Likewise, importers may need to make new arrangements to meet the standards for olefins which have been limited to an 18% six-month pool average with a cap of 20% from Jan 1, 2004, Hill said. Hill added: Australias new fuel quality standards bring this country in line with the internationally best practice of Europe, and represent this governments commitment to facilitating the adoption of better, cleaner engine technology and emission control technology. They also take into account Australias circumstances, by addressing potential risks that widespread use of MTBE poses to our water resources. The MTBE and olefins standards complete Australias package of new clean fuels regulations, the other portion of which was unveiled in May. Hill said the reduction to the national health bill flowing from the introduction of the new standards was expected to be around A-bil (.5-bil) over the next 20 years. The unveiling of the MTBE and olefin standards means the local refining industry can now assess the capital investments required to meet the new regulations. We welcome the decision as we have finally got a benchmark to move forward on, Nye said. But we would have preferred the ban on MTBE to be immediate. The Australian refining industry comprises eight plants of around 100,000 b/d each. The refineries are estimated to require capital investments of over A00-mil (1-mil) each to enable them to meet the new standards. As a result, a shake-out is expected in which at least one plant is tipped to close. Mobils Port Stanvac refinery in South Australia is regarded as the most vulnerable, with Shells Clyde plant having last week been reprieved from planned closure in 2005-2006. (platts.com)
16.07.2001 | MondayRussian PM pledges reform at Gazprom
Russian Prime Minister Mikhail Kasyanov said yesterday sweeping reforms at gas monopoly Gazprom were one of his governments goals, including loosening the companys grip on gas transportation systems. In an
Новость: Russian Prime Minister Mikhail Kasyanov said yesterday sweeping reforms at gas monopoly Gazprom were one of his governments goals, including loosening the companys grip on gas transportation systems. In an interview with Reuters Television, Kasyanov said a restructuring plan would focus on splitting Gazproms production units from transportation and giving other gas producers access to the countrys pipeline network. Once we have full information and conduct an analysis, we can come up with a draft restructuring plan and we shall use the same approach as for other monopolies - that is, to divide transportation from production, Kasyanov said. The target is to make it more transparent and effective and to create proper access to any producer of associated gas to the gas transportation system, he added. Kasyanovs statements come just weeks after President Vladimir Putin forced the toppling of former powerful CEO Rem Vyakhirev and installed Putin ally Alexei Miller in his place. Analysts interpreted this as a sign the government would likely mount a campaign to clean up the vast but secretive monopoly, which accounts for a third of the worlds reserves and a quarter of its production. Putin later said enormous amounts of money had been lost at Gazprom during Vyakhirevs reign. Gazprom produced 523 billion cubic metres (bcm) of gas last year, exporting 120 bcm to Europe, but it also firmly controls domestic and export pipelines. Other firms wishing to get their gas to market must sell their output at a fixed low price. The government has also been under pressure from oil companies to open up access to Russias Soviet-era gas pipeline network. Russian oil producers every year flare enormous amounts of associated gas for want of sales outlets. Kasyanov promised the government would liberalise access. Every producer which has gas should be able to put its gas into the pipeline system and have clear, transparent access to the gas transportation system, he said. Kasyanov said the government wanted to make sure exactly what the cash flows were inside Gazprom. Some minority shareholders have alleged that Gazprom has surreptiously transferred assets to other companies, including independent gas producer Itera. However, audit checks have so far found no discrepancies and both firms deny any wrongdoing. Eric Kraus, chief strategist at NIKoil Investment Bank, said reforms were a pressing task at Gazprom, which has seen production fall by about seven percent annually in recent years because of under-investment. To open up gas transmission systems and liberalise (pipeline access) is a very important point and I am glad to see it (the idea) has been adopted, Kraus said. There has been lot of resistance within Gazprom to anyone but Itera impinging on their monopoly. ( CNN.com )
16.07.2001 | MondayAustralias Woodside follows up Thylacine gas find
Australian E&P company Woodside Petroleum Monday said it would shortly begin follow-up drilling as part of early development planning for its Thylacine gas discovery in the Otway basin off the southern state of
Новость: Australian E&P company Woodside Petroleum Monday said it would shortly begin follow-up drilling as part of early development planning for its Thylacine gas discovery in the Otway basin off the southern state of Victoria. The Thylacine-2 well is expected to spud in late July-early August and will appraise the discovery made in May at Thylacine-1. Initial estimates have put the finds potential size at over 1 Tcf. The field is in permit T/30P, which is held by Woodside, Origin Energy and Benaris International. Woodside also manages the neighboring VIC/P43 permit, which contains the Geographe gas discovery, drilled in June. The VIC/P43 joint venture, in which Woodsides partners are Origin and CalEnergy Gas (UK), is currently considering the early drilling of a follow-up well at Geographe. Thylacine and Geographe are ideally located to supply gas markets in South Australia and Victoria, and our commitment to rapid follow-up drilling is a demonstration of our drive to meet the needs of those markets, said Barry Adams, Woodsides general manager south east Australian gas. Together the fields could represent a substantial new alternative gas supply for the population and industrial centers in south eastern Australia. The region has historically been dependent on gas supplied from the Bass Strait fields owned by Esso and BHP or from the onshore Cooper basin, but deregulation of the local gas sector over recent years has sparked opportunities for new markets and projects. (platts.com)
16.07.2001 | Mondayenergy: Information, Analyses, Forecasts > Investment Rating Market Marks Sibneft As Doomed to Be Sold
The past week witnessed two sensational events, a real one and a fake.
Новость: The past week witnessed two sensational events, a real one and a fake. While Prime Minister Mikhail Kasyanovs statement on the imminent splitting Gazprom into producing and transportation structures madder a real splash, the rumored takeover of Sibneft by Surgutneftegaz turned out to be untrue. However, these two pieces of news may change places soon in their relationship with reality. Budding important, and mostly positive, changes in the oil and gas industry have pushed the overall index of long-term investment credibility slightly up, by 0.25% to 295.75. (Rusenergy)
15.07.2001 | SundayRussia manoeuvres to maintain maximum Caspian influence
Russia has to face the reality it can no longer control the Caspian region as it did in the past, but it is doing all it can diplomatically and economically to retain maximum influence, analysts say.
Новость: Russia has to face the reality it can no longer control the Caspian region as it did in the past, but it is doing all it can diplomatically and economically to retain maximum influence, analysts say. Its key task is to ensure it can dominate export routes for huge reserves of oil and gas in the Caspian Sea, estimated at equivalent to those of the North Sea. But it is also playing a subtle diplomatic game to retain influence over the other four nations around the landlocked waters and keep out the interloper, the United States. Russia has a natural firstcomers advantage at the moment, and although oil is always politics its also economics and economics seems to favour the existing routes, said Steven Dashevsky, an analyst at Aton brokerage. Russia has looked on anxiously as former Soviet subjects Azerbaijan and Kazakhstan have struck out on their own in energy terms, making deals with foreign oil companies to exploit and export their hydrocarbons. Russia has so far kept in the game and congratulated itself that the first major new pipeline to take oil west - the Caspian Pipeline Consortiums new mainline pipe - went from the Tengiz oilfield to its port of Novorossiisk. It also takes every opportunity to dismiss the idea that another, U.S.-backed pipe should be built from Azeri capital Baku to the Turkish port of Ceyhan, bypassing Russia altogther. Russia has always wanted to try and keep as many pipelines in Russia as possible and has never lost an opportunity to say how silly Baku-Ceyhan is, said Jonathan Stern, head of Gas Strategies in London. But theyve always known they couldnt help anything if the money started to come in, he said. From strong scepticism during the dark days of low oil prices in 1998, foreign firms have now begun to swing round to the idea of the Baku-Ceyhan link. Shareholders, led by BP, have approved a 50 million feasibility study of the project, expected to cost just under .0 billion. As well as touting itself as cheap and with an already existing infrastructure to export oil and gas, Russia has tried to maintain its presence in diplomatic terms. It has its own Caspian envoy, Deputy Foreign Minister and former Energy Minister Viktor Kalyuzhny, carrying out visits as the main intermediary in a dispute between Russia and the other four nations around the Caspian over how to divide the sea. Although no agreement has been reached and summits on settling the division of the sea have been put off, Kalyuzhnys role is clearly also that of showing that Russia is the major power broker in the region, whatever the United States thinks. Russia has been increasingly nervous over U.S. diplomatic shuttling in the region - Washington has its own Caspian envoy - and some nationalists have decried what they see as U.S. attempts to undermine Moscow in its own backyard. But Russia still has the edge, due to strong trade and diplomatic links with Kazakhstan, Azerbaijan and Turkmenistan, and a developing friendship with Iran, a pariah for Washington. This friendship was cemented by a visit to Moscow in March by Iranian President Mohadem Khatami, where arms sales as well as Caspian Sea politics were on the agenda. The five littoral countries have so far failed to reach agreement on the Caspians status -- exactly which chunks of the seabed belong to whom - or ownership of the surface itself. But this has not stopped initial production and exploration work. The bottom line now is the discussion of where crude exports will go in future - whether theyll go through Russia or Iran or Azerbaijan - the debate is ongoing, said James Henderson, oil and gas analyst at Renaissance Capital. The lake or sea issue is becoming more and more irrelevant as no one is not acting on the back of it. At this point, it is inconceivable the Caspian will be declared a lake, he added. Russias view point that the sea bed and its resources should be divided and the surface area remain international waters apart from coastal zones has been gaining in strength. However, Iran would like a partition of the sea bed and the waters into five sectoral zones, believing that otherwise it will miss out in resources and territory. (gulf-news.com)
14.07.2001 | FridayYUKOS Follows Through on July Supply Commitment to Mazeikiu Nafta
MAZEIKIAI - Mazeikiu Nafta has received the first shipments of crude oil committed to the companys refinery based on an agreement signed between the international unit of Williams (NYSE: WMB) and YUKOS.
Новость: MAZEIKIAI - Mazeikiu Nafta has received the first shipments of crude oil committed to the companys refinery based on an agreement signed between the international unit of Williams (NYSE: WMB) and YUKOS. According to the agreement, the Russian corporation committed to provide Mazeikiu Naftas refinery with 300,000 tons of crude oil in the month of July. According to Mazeikiu Nafta general manager Jim Scheel, As a sign of good faith, YUKOS agreed to provide Mazeikiu Nafta with at least 300,000 tons per month based on market prices until our agreements were finalized and approved. They have followed through fully on their commitment. Mazeikiu Nafta has received official confirmation cables for more than 300,000 tons of crude to be supplied to the refinery by YUKOS in July. Williams and Yukos signed an agreement on 14 June by which YUKOS pledged 50 million in investments and loans to Lithuanian oil company Mazeikiu Nafta, as well as a supply of close to 5 million tons of crude oil per year to the companys refinery. Upon close of the agreement, both Williams and Yukos would each hold 26.85 percent of Mazeikiu Nafta shares. The agreement has the support of Lithuanian President Valdas Adamkus, the government of former interim Prime Minister Eugenijus Gentvilas and the U.S. State Department. The main Russian crude oil export schedule for the third quarter foresees more than 3 million tons of oil to be supplied to Lithuania. According to the schedule, Russian producers will supply 1.69 million tons of oil to Mazeikiu Naftas refinery and will export 1.36 million tons of oil through the Butinge terminal. The main schedule for the second quarter of this year included 1.22 million tons of oil for Mazeikiu Naftas refinery and 0.9 million tons for Butinge. In the past, a clear majority Mazeikiu Naftas supplies was obtained through supplementary scheduling. Russias third quarter main export schedule includes the largest ever amount of oil to be shipped to Lithuania. However, we hope to further supplement these shipments with additional crude supplies depending on market developments, said Scheel. Mazeikiu Nafta refined almost 2.8 million tons and exported 2,2 million tons of crude oil during the first five months of this year. (Neftegaz.ru)
14.07.2001 | FridayThe Odessa File: Ukraine Strives To Become Europes Supplier of Caspian Crude
Two interesting events at once occurred recently around the Odessa-Brody oil pipeline project.
Новость: wo interesting events at once occurred recently around the Odessa-Brody oil pipeline project. First, Brown & Root completed a feasibility study for extension of this pipe to Plock in Poland, and second, the Ukrainians announced that they had obtained two formal requests for oil shipments along the future route. A closer look reveals that the project still faces a number of snags, but Russian exporters would do well treating the Ukrainian pipe as a real factor in their strategic European plans.
13.07.2001 | FridayRussia manoeuvres to maintain maximum Caspian influence
ussia has to face the reality it can no longer control the Caspian region as it did in the past, but it is doing all it can diplomatically and economically to retain maximum influence, analysts say.
Новость: Russia has to face the reality it can no longer control the Caspian region as it did in the past, but it is doing all it can diplomatically and economically to retain maximum influence, analysts say. Its key task is to ensure it can dominate export routes for huge reserves of oil and gas in the Caspian Sea, estimated at equivalent to those of the North Sea. But it is also playing a subtle diplomatic game to retain influence over the other four nations around the landlocked waters and keep out the interloper, the United States. Russia has a natural firstcomers advantage at the moment, and although oil is always politics its also economics and economics seems to favour the existing routes, said Steven Dashevsky, an analyst at Aton brokerage. Russia has looked on anxiously as former Soviet subjects Azerbaijan and Kazakhstan have struck out on their own in energy terms, making deals with foreign oil companies to exploit and export their hydrocarbons. Russia has so far kept in the game and congratulated itself that the first major new pipeline to take oil west - the Caspian Pipeline Consortiums new mainline pipe - went from the Tengiz oilfield to its port of Novorossiisk. It also takes every opportunity to dismiss the idea that another, U.S.-backed pipe should be built from Azeri capital Baku to the Turkish port of Ceyhan, bypassing Russia altogther. Russia has always wanted to try and keep as many pipelines in Russia as possible and has never lost an opportunity to say how silly Baku-Ceyhan is, said Jonathan Stern, head of Gas Strategies in London. But theyve always known they couldnt help anything if the money started to come in, he said. From strong scepticism during the dark days of low oil prices in 1998, foreign firms have now begun to swing round to the idea of the Baku-Ceyhan link. Shareholders, led by BP, have approved a 50 million feasibility study of the project, expected to cost just under .0 billion. As well as touting itself as cheap and with an already existing infrastructure to export oil and gas, Russia has tried to maintain its presence in diplomatic terms. It has its own Caspian envoy, Deputy Foreign Minister and former Energy Minister Viktor Kalyuzhny, carrying out visits as the main intermediary in a dispute between Russia and the other four nations around the Caspian over how to divide the sea. Although no agreement has been reached and summits on settling the division of the sea have been put off, Kalyuzhnys role is clearly also that of showing that Russia is the major power broker in the region, whatever the United States thinks. Russia has been increasingly nervous over U.S. diplomatic shuttling in the region - Washington has its own Caspian envoy - and some nationalists have decried what they see as U.S. attempts to undermine Moscow in its own backyard. But Russia still has the edge, due to strong trade and diplomatic links with Kazakhstan, Azerbaijan and Turkmenistan, and a developing friendship with Iran, a pariah for Washington. This friendship was cemented by a visit to Moscow in March by Iranian President Mohadem Khatami, where arms sales as well as Caspian Sea politics were on the agenda. The five littoral countries have so far failed to reach agreement on the Caspians status -- exactly which chunks of the seabed belong to whom - or ownership of the surface itself. But this has not stopped initial production and exploration work. The bottom line now is the discussion of where crude exports will go in future - whether theyll go through Russia or Iran or Azerbaijan - the debate is ongoing, said James Henderson, oil and gas analyst at Renaissance Capital. The lake or sea issue is becoming more and more irrelevant as no one is not acting on the back of it. At this point, it is inconceivable the Caspian will be declared a lake, he added. Russias view point that the sea bed and its resources should be divided and the surface area remain international waters apart from coastal zones has been gaining in strength. However, Iran would like a partition of the sea bed and the waters into five sectoral zones, believing that otherwise it will miss out in resources and territory. (gulf-news.com)
13.07.2001 | FridayAsian premiums for Gulf gas oil set to fall
Spot premiums for Middle East gas oil, which were buoyed in July by extra demand from South Africa, are likely to decline in the next few weeks, traders said yesterday.
Новость: Spot premiums for Middle East gas oil, which were buoyed in July by extra demand from South Africa, are likely to decline in the next few weeks, traders said yesterday. An easing of rare imports into South Africa and a shut arbitrage window to move cargoes to the West are likely to put the squeeze on premiums, they said. If the East-West spread stays narrow for another week or so, Middle East premiums will have to come off because people are not going to find any buying in the West, said a Singapore trader. Spot Middle East premium have hovered at .50-.60 a barrel over Middle East quotes for late-June to mid-July lifting cargoes. But heading into the August market, traders predicted prices to slip down to .20-.30, partly because South African demand was expected to ease. South Africa, a traditional exporter of gas oil, emerged as a buyer after a fire in early June wrecked a crude unit at a 95,000 barrel per day refinery owned by Sasol. Sasols outage coincided with a prolonged maintenance closure at a 104,000 bpd Engen plant in Durban, and created a shortage in the domestic market. Traders estimate that South Africa bought some 300,000 tonnes of Middle East product for end-June to end-July delivery to meet the shortfall. That extra buying took Middle East spot premiums from .20-.30 a barrel in May to current levels at .50-.60, which were still below peaks at .00-.20 earlier this year. Traders said the price gains were capped because there was ample product in the spot market to cover the extra demand. They said that South Africa would continue to have some spot requirements to cover Sasols outage, which is expected to last another three months. But the restart of Engens refinery last week would cover part of the local supply shortfall. Spot Middle East gas oil premiums are also likely to feel the heat from a recent crunch in the spread between European and Asian prices, making it uneconmical to move cargoes westwards. The spread between European and Asian gas oil prices, pegged at 4-5 a tonne two weeks ago, has narrowed to about .00. The arbitrage for Middle East cargoes to head westwards is considered attractive when the spread - the difference between gas oil futures on Londons International Petroleum Exchange (IPE) and Singapore spot levels - is above 3 a tonne. The arbitrage spread has narrowed due to a fall on IPE gas oil, while Asian prices have held relatively firm because of cuts to regional refinery operating rates and plant maintenance. Traders said if the arbitrage West stays closed for a month or more, Middle East sellers may seek alternative outlets in the East and dampen the Asian market. (Cicero)
12.07.2001 | ThursdayDynegy to build new Gulf Coast natural gas terminal
Houston-based independent power producer DynegyInc. (NYSE:DYN - news) said Thursday it would build a liquefied natural gas (LNG)terminal and regasification plant on the Gulf Coast in Louisiana to meet the increased demand for natural gas as a fuel
Новость: Houston-based independent power producer Dynegy Inc. (NYSE:DYN - news) said Thursday it would build a liquefied natural gas (LNG) terminal and regasification plant on the Gulf Coast in Louisiana to meet the increased demand for natural gas as a fuel for electrical generation. At the start, the plant, which was originally a liquid petroleum gas terminal and was bought by Dynegy in 1995, will be able to process 750 million cubic feet (mmcf) per day of gas when it opens commercially at the end of 2003, with full capacity of 1.5 billion cubic feet per day (bcf) reached in 2004. The terminal is easily accessible to the Gulf of Mexico and the Atlantic Basin as well as a number of natural gas pipelines that reach most major natural gas markets in the United States. Siting the new terminal and gasification plant at the Hackberry site with key infrastructure already in place, including a jetty, dock and ship berthing structure, is a tremendous advantage, said Steve Bergstrom, president and chief operating officer of Dynegy Inc. We will achieve significant project cost savings, and the facility will be operational two to three years sooner than it would if we had developed a greenfield project. Construction on the Hackberry LNG facility will create approximately 650 new construction jobs. After full commercial operation is achieved, the facility will employ 16 to 20 new permanent employees. Shares of Dynegy closed at 7.15 on Wednesday on the New York Stock Exchange.
12.07.2001 | ThursdayOil Prospects Darken For Azerbaijan
Azerbaijan is expected to suffer another blow to its position as the centre of Caspian oil and gas prospects when Chevron of the US announces the results of its drilling at its
Новость: Azerbaijan is expected to suffer another blow to its position as the centre of Caspian oil and gas prospects when Chevron of the US announces the results of its drilling at its offshore Absheron field this week. The US company has found only a very thin gas layer at the site believed to hold up to 1,000 billion cubic meters of gas, according to industry analysts quoted by the Financial Times Monday. The failure to find substantial hydrocarbon reserves would be the fourth in Azerbaijan this year. ExxonMobil of the US reported a dry well in the Oguz offshore concession last week. Italys Agip and TotalFinaElf of France have also announced similar results. The Financial Times quoted Thane Gustafson of the Cambridge Energy Research Associates suggesting there could be a northward shift in Caspian energy, following an immense find in Kazakhstans Kashagan offshore structure and two smaller discoveries in the Russian sector. Although Azerbaijan boasts such projects as the Azeri-Chirag- Guneshli oil fields and Shah Deniz gas structure, it has yet to strike oil since exploration in its offshore sector began three years ago, the daily pointed out. (irna.com)
11.07.2001 | ThursdayTime Works Against YUKOS in Lithuania
The Lithuanian parliament decided yesterday to postpone until the fall session deliberations on selling a stake in the national oil concern, Mazeikiu Nafta, to Russias YUKOS
Новость: The Lithuanian parliament decided yesterday to postpone until the fall session deliberations on selling a stake in the national oil concern, Mazeikiu Nafta, to Russias YUKOS. The deal would make YUKOS a 26.85-percent owner of Mazeikiu in return for 5 million in cash and long-term crude supplies guarantees. The Lithuanian lawmakers procrastination increases the chances of another Russian major, Tyumen Oil Company, to replace YUKOS in this arrangement, although the new head of the cabinet Algyrdas Brazauskas will make the final decision.
11.07.2001 | WednesdayСейм сомневается. Бразаускас выжидает. Время в Литве работает против ЮКОСа
Вчера литовский парламент решил не рассматривать до конца летней сессии, завершающейся 13 июля, поправки к законам, которые позволил
Новость: Вчера литовский парламент решил не рассматривать до конца летней сессии, завершающейся 13 июля, поправки к законам, которые позволили бы ЮКОСу стать совладельцем концерна Мажейкю Нафта (МН). Обсуждаемая сделка предусматривает передачу ЮКОСу 26,85 процентов МН за 75 млн долларов и гарантии долгосрочных поставок нефти. Решение сейма Литвы увеличивает шансы Тюменской нефтяной компании (ТНК) заменить ЮКОС в составе акционеров МН, хотя последнее слово остается за новым премьер-министром республики Альгирдасом Бразаускасом. (www.rusenergy)
10.07.2001 | TuesdayQuestar gets final ok to build Utah natgas pipeline
Questar Pipeline, a subsidiary of Questar Corp. (NYSE:STR - news), said on Tuesday it had received regulatory approval to build a 75-mile natural gas pipeline aimed at meeting increased gas demand in Utah and other parts of the U.S. West.
Новость: Questar Pipeline, a subsidiary of Questar Corp. (NYSE:STR - news), said on Tuesday it had received regulatory approval to build a 75-mile natural gas pipeline aimed at meeting increased gas demand in Utah and other parts of the U.S. West. Final approval of the estimated 0 million pipeline, granted Tuesday by the Bureau of Land Management and the U.S. Forest Service, will allow Questar to immediately begin building the pipeline and put it in commercial service as early as November, the company said in a statement. We are extremely pleased ... Not only will it (the pipeline) help meet the rapidly increasing energy needs of customers along the Wasatch Front (in Utah), it will also help other locations in the West, Nick Rose, Questar Pipeline president and CEO, said in a statement. On July 2, 2001, the Federal Energy Regulatory Commission granted a notice to proceed with construction, Salt Lake City, Utah-based Questar said. All of the roughly 272 million cubic feet a day of capacity on the new 24-inch diameter pipeline is under contract to shippers who need capacity for the coming winter season. The pipeline, whose capacity is more than enough to produce 1,500 megawatts of electricity, will start near Price, Utah, and run about 75 miles west to a proposed interconnect with Kern River Gas Transmission Co. near Elberta, Utah. It will run parallel to part of the companys Main Line No. 40, all of Main Line No. 41, then through a new 17-mile corridor from Payson west to the Kern River Pipeline interconnect, Questar said. Earlier Tuesday, Prudential Securities cut its rating on Questar Corp. to hold from buy because of weak natural gas prices. Questar warned late Monday it expected to earn about 31 to 35 cents in the second quarter. Analysts had been expecting 30 to 40 cents a share, compared with 33 cents a year earlier. In a research note, analyst Carol Coale cut her annual earnings estimates and target price to .95 a share this year, from .05, and to .05 a share in 2002, instead of .35. Coale lowered her 12-month target price to 8 from 7. Questar shares fell .58 to 2.55 on Tuesday, down around 6.5 percent. (DEN Denmark)
08.07.2001 | SundayEquatorial Guinea plans to renegotiate oil deals
BATA, Equatorial Guinea, July 8 (Reuters) - Equatorial Guinea plans to negotiate a better deal for offshore oil rights with foreign firms after the creation of a state oil company, President Obiang Nguema said.
Новость: BATA, Equatorial Guinea, July 8 (Reuters) - Equatorial Guinea plans to negotiate a better deal for offshore oil rights with foreign firms after the creation of a state oil company, President Obiang Nguema said. We think the company is going to keep negotiating with the (foreign) companies to increase the percentage of royalties, the percentage of participation in the crude oil and, why not also, the percentage as a shareholder, he said. We can ask the companies for 20 percent, 30 percent, 40 percent. We can even reach up to 50 percent, 51 percent so as to be the owner of these companies, the president told a news conference on Friday (eds. correct). The central African country of less than half a million people is in the throes of an offshore oil boom that has sent economic growth soaring and made it one of the high spots for exploration in the Gulf of Guinea. Oil production began in 1996 from ExxonMobil Corp (NYSE:XOM - news)s Zafiro field and is now over 200,000 barrels per day. Equatorial Guinea has already made modifications to the initial production sharing contracts, which Obiang said were too favourable to the foreign firms. We have acquired a minimum percentage...but that still does not satisfy us. That is why we created the national company Petroguinea, he said, adding that neighbouring countries got a bigger share of their oil wealth than Equatorial Guinea. Obiang did not give a timescale for modifications to deals under the state oil firm, which the government agreed to set up earlier this year but which has yet to begin functioning fully. Nor did he say if or how the country would pay for a stake in the oil production ventures. ExxonMobil, U.S.-based Triton Energy (NYSE:OIL - news) and CMS Energy (NYSE:CMS - news) are currently the only firms operating producing concessions, but many others have stakes in blocks that are still at the exploration stage. (Energyland)
07.07.2001 | FridayOil groups plan to supply Bolivian gas to US
A consortium of oil companies including Repsol YPF of Spain, TotalFinaElf of France and BP of the UK is expected to meet the Bolivian government on Thursday to present plans to export Bolivian gas to the US west coast.
Новость: A consortium of oil companies including Repsol YPF of Spain, TotalFinaElf of France and BP of the UK is expected to meet the Bolivian government on Thursday to present plans to export Bolivian gas to the US west coast. The groups are seeking political support for a second-phase study of the scheme after initial feasibility studies carried out separately by Total and Repsol found it would be economically viable. Other members of the consortium include BG, the UK gas exploration and production company, and Yacimientos Petrolн feros Fiscales Bolivianos, the Bolivian oil group. Bolivia has gas reserves of about 6,000bn cu ft, second only in South America to Venezuela. California and other parts of the western states, meanwhile, have suffered intense upward pressure on wholesale electricity prices, partly because of a shortage of gas to fuel power generation stations. Bolivian ministers are understood to support the project in principal and are expected to meet Dick Cheney, the US vice-president, later this month to discuss it. The scheme would invlolve building a pipeline through the Andes to the Chilean coast, where gas would be processed and liquefied at a new terminal. The liquefied gas would then be shipped to Baja California in Mexico, where it would be re-gasified and piped up the US west coast. Sources close to the project said it was too early to establish how much investment would be involved, but confirmed that there was enough gas to justify the construction of three or four liquefied natural gas trains. Analysts have estimated the total cost of the scheme at -5bn but have said the price of US gas would have to remain above per million cubic feet for the project to go ahead. Prices are currently around /mcf after rocketing in the last year but are expected to ease in the second half of the year. Total and Repsol operate gas fields relatively close to each other and the two are understood to have decided to use the same infrastructure as a way of lowering costs. (news.ft.com)
07.07.2001 | FridayFreeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
Freeport-McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS) announced that for the month of May 2001 the Trusts Gross Proceeds exceeded the Class A costs by 65,044. As a result of the above, the Class A cost
Новость: Freeport-McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS) announced that for the month of May 2001 the Trusts Gross Proceeds exceeded the Class A costs by 65,044. As a result of the above, the Class A cost carry-forward has decreased to 5,025,532. In addition, net current month Trust administrative expenses of 2,565 were paid from the Trust administrative reserve resulting in 75,639 remaining in the expense reserve. For the month, Gross Proceeds included oil and condensate revenues of approximately 73,712 and gas revenues of approximately 05,057 from sales volumes of 16,865 barrels and 58,632 mcf, respectively, net to the Trusts interest. Class A costs included 11,497 in operating and transportation costs and ,786 in capital expenditure related to workover activities on West Cameron 498, net to the Trusts interest. Class A costs also included 7,441 in interest charges related to the Class A cost carry-forward. (stockhouse.com)
05.07.2001 | ThursdayGoodrich Petroleum announces discovery at West Delta 83 on Marciano Prospect
Goodrich Petroleum announces discovery at West Delta 83 on Marciano Prospect 7/2/2001 Goodrich Petroleum Corporation (Houston) today announced a new discovery on its Marciano Prospect at West Delta 83 Field
Новость: Goodrich Petroleum announces discovery at West Delta 83 on Marciano Prospect 7/2/2001 Goodrich Petroleum Corporation (Houston) today announced a new discovery on its Marciano Prospect at West Delta 83 Field in Plaquemines Parish, Louisiana. The company announced today that it has drilled and logged 64 of net pay in five separate zones in its Marciano Prospect at West Delta 83 Field. The Goodrich Petroleum Company-USA 5 No. 4 well was drilled and logged to a total depth of 10,110 and encountered pay in the CP-3, CP-4, 9600, 10100 and 10100 E sands. The company has taken sidewall cores and formation tests and will be completing the well during July. Additional information on the well will be released upon commencement of production. The company owns a 95% working interest in the well. Goodrich Petroleum is an independent exploration and production company listed on the New York Stock Exchange. The majority of its oil and gas properties are in Louisiana and Texas. (www.nefteghaz.ru)
04.07.2001 | WednesdayChina aims for gas deal with Shell, Unocal
SINGAPORE, July 4 (Reuters) - Chinas Sinopec Corp and CNOOC are hoping to clinch a deal by the end of this year with Royal Dutch/Shell and Unocal Corp (NYSE:UCL - news) to jointly explore and develop gas reserves offshore east China, industry officia
Новость: SINGAPORE, July 4 (Reuters) - Chinas Sinopec Corp and CNOOC are hoping to clinch a deal by the end of this year with Royal Dutch/Shell and Unocal Corp (NYSE:UCL - news) to jointly explore and develop gas reserves offshore east China, industry officials said on Wednesday. The Chinese state-run companies will soon start delineating blocks in the Xihu Trough -- where Sinopec (NYSE:SNP - news) made one of the Chinas biggest gas finds -- ready for cooperation with the foreign oil firms, they said. The Chinese majors are likely to hold a 30 percent stake each in the planned entity with Shell and Unocal taking up to 20 percent each, industry sources said. But, they said, the equity split had yet to be finalised and would depend on how much of the exploration risk the foreign partners were willing to shoulder. If the foreign parties wish to assume all the exploration risks, they might be the operator, said one Beijing-based official. Sinopec and CNOOC (NYSE:CEO - news) reached an agreement in June to each take a 50 percent working interest in the project with CNOOC as operator. The Chunxiao gas discovery in the Xihu Basin is estimated to be one of Chinas largest gas deposits. Sinopec has put proven reserves at about 54 billion cubic metres. The company has previously said it would develop Chunxiao to produce up to three bcm annually by 2005 to supply the booming east China market. Shell was given an option to participate in exploration and production in the East China Sea after it ploughed about 00 million into the global stock issues of both Sinopec and CNOOC.
03.07.2001 | TuesdayPacific Gas and Electric Company Files for Extension of Exclusivity for Plan of Reorganization
Pacific Gas and Electric Company today filed a request with the U.S. Bankruptcy Court to extend until December 6, 2001, the period during which the Company has the exclusive right to file a plan of reorganization in its Chapter 11 case. Under the cu
Новость: Pacific Gas and Electric Company today filed a request with the U.S. Bankruptcy Court to extend until December 6, 2001, the period during which the Company has the exclusive right to file a plan of reorganization in its Chapter 11 case. Under the current timeline, the exclusivity period is set to end on August 6, 120 days after the Companys April 6 Chapter 11 filing. The Company made the following statement regarding its request: Developing and filing a sound, comprehensive and feasible plan of reorganization is the most important step we can take toward completing the Chapter 11 process as expeditiously as possible. Our request for an extension is intended to allow us the time necessary to ensure that the plan we present is the appropriate blueprint for meeting our obligations to creditors and emerging from Chapter 11 with our financial strength reaffirmed. The development of this plan is a top priority and our objective is to file it as soon as practicable. We are well under way with this effort and are engaged in productive discussions with creditors that are helping to inform our development of the most feasible plan of reorganization. In the event further analysis is needed or additional meetings with our creditors are desired in order to ensure that the plan we file has their support, this extension provides extra time for these efforts. We look forward to continuing our progress toward this goal and to working with the creditors to reach resolution as soon as possible.
01.07.2001 | SundayMexico says oil, gas reserves in state of crisis
After decades of sliding investment, Mexicos oil and gas reserves are now in the throes of a full-blown crisis and could lead to falling crude exports if new investment does not come soon, said a top official on Thursday.
Новость: After decades of sliding investment, Mexicos oil and gas reserves are now in the throes of a full-blown crisis and could lead to falling crude exports if new investment does not come soon, said a top official on Thursday. Raul Munoz, director of giant state oil monopoly Petroleos Mexicanos (Pemex), said investment in Mexicos bountiful oil and gas deposits fell by nearly a two-thirds between 1981 and 2000. This has provoked a crisis in oil reserves that has already extended to production and should not be allowed to go on any longer, Munoz told reporters. Production declines are already a reality at some oil fields. The revelation is doubly troubling for Mexico, the worlds No. 7 oil producer. Not only does the government rely on oil for one-third of its overall revenues, but any decline in output would jeopardize Mexicos share of the U.S. market, the crown jewel of world energy markets. Munoz, an engineer and longtime private sector executive who took the helm of Pemex in December, has long said that Pemex desperately needs new sources of investment to beef up reserves. But the chief Pemex official has never sounded a call of alarm over Mexicos reserve levels. A bigger crisis in reserves and production could mean ... the risk of running out of natural gas, and further down the road, a drop in oil exports, Munoz said. Pemex, the worlds seventh-biggest oil company, said in March that proven reserves posted a 4 percent decline in 2000 to 32.614 billion barrels, while probable reserves rose slightly in 2000 from the year before to 12.196 billion barrels. Munoz noted a further sign of Pemexs faltering on the reserves front. After a spate of discoveries in the 1970s and early 1980s, Pemex did not make a significant new find until the offshore Sihil field was found in 1999. CASH COW STATUS The key culprit in Mexicos failure to invest in its subsoil resources is Pemexs status as the governments cash cow. Each year the behemoth sends nearly all its revenues to the government, which then parcels out cash to Pemex as part of the annual budget. President Vicente Fox had vowed to change this scheme by increasing overall tax revenues and reducing the onus on Pemex, but legislators have so far violently opposed his proposed plan to slap value-added taxes on food and medicine. This means that Pemex must find new ways to beef up its reserves under existing laws, which have been on the books since Mexico nationalized its oil wells in 1938 and gave Pemex the exclusive right to explore and produce oil and gas. Munoz said one possibility is for Pemex to undertake more effective service contracts with outside companies, like the one it has with Canadas Precision Drilling Corp. (Toronto:PD.TO - news) at the Burgos natural gas field, but did not elaborate. Pemex can also legally bring in private investment in areas such as gas imports, transport and distribution and petrochemicals, which would free up some of Pemexs cash to use for other areas, said Munoz. Pemex will need to invest about billion a year in coming years in all of its lines of business, said Munoz. Of this, more than two thirds will be spent on oil and gas exploration and production. (biz.yahoo.com)
25.06.2001 | MondayПоследний резерв России. Правительство готовится принять Федеральную программу освоения нефтегазовых ресурсов
Минэнерго РФ одобрило проект Федеральной программы по комплексному освоению нефтегазовых ресурсов Тимано-Печорской провинции и в пон
Новость: Минэнерго РФ одобрило проект Федеральной программы по комплексному освоению нефтегазовых ресурсов Тимано-Печорской провинции и в понедельник планирует передать его в Минэкономразвития. В результате осуществления программы Тимано-Печорский бассейн - последний крупный практически нетронутый резерв на севере европейской части России - должен превратиться в новый центр добычи нефти с уровнем в 38,3 млн тонн в 2010 году. Случится ли это на самом деле, зависит от того, сумеет ли федеральная власть преодолеть противодействие регионов, которые предпочитают осваивать ресурсы Тимано-Печоры в рамках мелких коммерческих проектов. (RusEnergy)
25.06.2001 | MondayRussias Last Reserve: Government To Adopt Timan-Pechora Federal Program
The Ministry of Energy has approved a draft Federal Program of Comprehensive Oil and Gas Resources Development in Timan-Pechora, and is to submit it on Monday to the Ministry of Economic
Новость: The Ministry of Energy has approved a draft Federal Program of Comprehensive Oil and Gas Resources Development in Timan-Pechora, and is to submit it on Monday to the Ministry of Economic Development and Trade. If the program is carried out, Russias last untapped onshore hydrocarbon province will become a new national producing center yielding 36.7 million tons of oil a year by 2010. The success of the program hangs on whether the federal government impose their will on local administers who prefer to develop Timan-Pechora by small locally-controlled projects. (RusEnergy)
19.06.2001 | TuesdayThe Mazeikiai Maze: YUKOS Outwitted LUKOIL in Lithuania, but Local Conflict Is Unlikely to Spread
YUKOS has invaded Lithuania.
Новость: YUKOS has invaded Lithuania. Theoretically, this event would have increased the long-term investment credibility of YUKOS at the cost of LUKOILs rating. However, industry watchers are in no hurry announcing the defeat of LUKOIL. Most of them believe that YUKOS would have never thrown a gauntlet to Russias biggest oil company without first making some kind of a deal with it. As a result, the rating of LUKOIL has not suffered because of this, and the overall industry index grew by 0.08% reaching 295,18. (RusEnergy)
15.06.2001 | FridayRussia Must Coordinate Gas Exports to China
RUSIA Petroleums Kovykta project does not miss the pages of business media even for a day, but the reason of this popularity is not a spectacular success.
Новость: RUSIA Petroleums Kovykta project does not miss the pages of business media even for a day, but the reason of this popularity is not a spectacular success. Since the early 1990s, when the idea of building a gas export pipeline from Irkutsk to China hit Russia for the first time, this project has been beating about two bushes at once, the fluid composition of RUSIA Petroleum owners group, and the unhurried attitude of China, the main potential consumer of that gas. (RusEnergy)
13.06.2001 | WednesdayJapan wants U.S. back in Kyoto plan alternative rejected CLIMATE CHANGE
The European Union yesterday sharply criticised US proposals for a science-based response to climate change, insisting instead that industrialised countries should ratify the Kyoto agre
Новость: The European Union yesterday sharply criticised US proposals for a science-based response to climate change, insisting instead that industrialised countries should ratify the Kyoto agreement for cutting greenhouse gas emissions. Margot Wallstrom, the environment commissioner, said Mondays speech by President Bush on climate change was short of action to actually reduce emissions. Representing the EU presidency, Kjell Larsson, Swedish environment minister, warned that Mr Bushs continued rejection of the Kyoto protocol would mean postponing international action to combat climate change for years - and we are already late. Climate change is due to be discussed between Mr Bush and EU leaders over lunch tomorrow at the EU-US summit in Gothenburg, Sweden. Although EU officials said the EU would look with good will at the new US ideas, a statement issued yesterday made no secret of the Commissions scepticism of the strategy outlined by Mr Bush. The Commission said the US focus on research and technological innovation fell short of action to reduce greenhouse gas emissions. Furthermore recent scientific evidence, including a US National Academy of Science report, was solid enough to warrant concrete and urgent action the Commission said. It added that many US ideas on research and monitoring appeared to build on existing commitments rather than involve new steps. Arguing that industrialised countries should take the lead in reducing emissions with clear targets and timetables in line with the Kyoto agreement, the Commission said it was neither realistic nor fair for the US to expect developing countries to match industrialised countries in greenhouse gas reduction. We cannot expect that developing countries do something that many industrialised countries in the world, with all their research and technological capabilities, have not been able to do, it said. (The Financial Times)
07.06.2001 | ThursdayRussia to Export Helium to China as Component of Natural Gas
None of the existing project of hydrocarbons exports from Eastern Siberia to China provides for preliminary extraction of helium, a priced strategic component of local natural gas.
Новость: None of the existing project of hydrocarbons exports from Eastern Siberia to China provides for preliminary extraction of helium, a priced strategic component of local natural gas. While Russian officials insist that the non-separated gas mix will be exported only at the initial stage, they are not preparing any practical plans for Siberian helium production. It seems that China will receive from Russia, free of charge, something more than just fuel for power stations, and Russia will suffer a loss. (RusEnergy)
06.06.2001 | WednesdayTransneft Management Irked With COP Competition
The recent exchange of criticism between managers of Transneft and Caspian Pipeline Consortium is Russias first, but apparently not the last, manifestation of rivalry of oil transportation companies.
Новость: The recent exchange of criticism between managers of Transneft and Caspian Pipeline Consortium is Russias first, but apparently not the last, manifestation of rivalry of oil transportation companies. Before CPC, nothing disturbed the reign of the pipeline monopoly, but even the initial stage of competition is showing that Transneft is ill prepared for dealing with new alternative routes of oil exports. (RusEnergy)
05.06.2001 | TuesdayThe recent exchange of criticism between managers of Transneft and Caspian Pipeline Consortium is Russias first, but apparently not the last, manifestation of rivalry of oil transportation companies. Before CPC, nothing
Tyumen Oil Company (TNK) is trying to break out of Tyumen and diversify the locations of its upstream projects. In addition to promising oilfields in Eastern Siberia
Новость: Tyumen Oil Company (TNK) is trying to break out of Tyumen and diversify the locations of its upstream projects. In addition to promising oilfields in Eastern Siberia, the company is poised for a leap into Kazakhstan. TNK intends to form a JV with Chinese-Kazakh CNPC-Aktobemunaigaz and channel its oil production toward its own Orsk refinery. However, conflicting long-term goals of the future partners, piled upon political problems in Kazakhstan, may complicate the life of the planned JV. (Rusenergy)
01.06.2001 | FridayThe End Is Near: Russia Is Almost Devoid of Unlicensed Commercially Attractive Oil Reserves
This year, each large tender for oil and gas development licenses is accompanied by outbursts of scandal and court cases.
Новость: This year, each large tender for oil and gas development licenses is accompanied by outbursts of scandal and court cases. The reason of these overheated passions in the Russian oil industry is simple. The Gamburtsev Val and Talakan oilfields are about the last relatively large deposits that had not been licensed. The scarce reserves remaining in the governments pocket are inferior in size and quality compared to the licensed wealth. (RusEnergy)
01.06.2001 | FridayKyapaz or Serdar? Disputed Caspian Oilfields Fuel Diplomatic Warfare Between Azerbaijan and Turkmenistan
Azerbaijan and Turkmenistan are exchanging accusations that may lead to severed diplomatic relations.
Новость: Azerbaijan and Turkmenistan are exchanging accusations that may lead to severed diplomatic relations. The conflict focuses on the disputed Kyapaz/Serdar offshore block, one of a very few unlicensed promising acreages in the Caspian Sea. Turkmenistans tactic consists of sabotaging the efforts aimed at determination of the Caspian legal status, and scaring investors away from the southern offshore area. The goal is to make Azerbaijan agree to a compromise on disputed fields. (RusEnergy)
31.05.2001 | ThursdayRussian Petrochemical Boom May Be Short-Lived
While the federal government is busily trying to squeeze as much as possible out of Russian oil producers export super profits, a neighbor industry is quickly gaining weight on high revenues,
Новость: While the federal government is busily trying to squeeze as much as possible out of Russian oil producers export super profits, a neighbor industry is quickly gaining weight on high revenues, which are currently as enticing as in the oil sector. Petrochemical production has been on the rise for several years, although its further progress is influenced by both Russian companies and competition from adjacent nations. (RusEnergy)
31.05.2001 | ThursdayBP expects to find more oil in the North
The oil company BP believes that a development of the oil and gas field Skarv, off the coast of Helgeland, at a cost of NOK 8-14 billion will be worth while.
Новость: Up to now, there has been doubt that there is enough oil and gas at Skarv to pay for the development. However, new test drillings have shown that development of the field will be profitable, according to NRK. Skarv may therefore become still further evidence that that it is in the waters off the coast of Central and Northern Norway where the most promising areas for future exploration for gas and oil are to be found, experts say. Skarv is located 200 km off the coast, west of Broennoeysund. The development of the field, with its own production platform is estimated to cost NOK 8-14 billion NRK reports. (The Norway Post)
30.05.2001 | WednesdayРоссийское оружие прокладывает путь в Алжир отечественным нефтегазовым компаниям
В воскресенье делегация представителей ЛУКОЙЛа, Газпрома, Роснефти и Стройтрансгаза вернулась из Алжира, где прове
Новость: В воскресенье делегация представителей ЛУКОЙЛа, Газпрома, Роснефти и Стройтрансгаза вернулась из Алжира, где провела переговоры об участии в разработке углеводородных ресурсов этой страны. В сравнении с другими государствами, в которых пытаются закрепиться российские нефтегазовые компании, - Ираком, Ираном, Суданом - Алжир выглядит предпочтительнее. Но и входной билет в эту североафриканскую страну обойдется нашим нефтяникам недешево. (RusEnergy)
30.05.2001 | WednesdayRussian Weapons Pave Road to Algeria for Oil and Gas Companies
On Sunday, a delegation of top managers from LUKOIL, Gazprom, Rosneft and Stroitransgaz returned to Moscow from Algeria.
Новость: On Sunday, a delegation of top managers from LUKOIL, Gazprom, Rosneft and Stroitransgaz returned to Moscow from Algeria. During the visit the Russians negotiated possibilities of their companies participation in oil and gas projects in Northern Africa. Compared with other nations where Russian companies are trying to expand to, such as Iraq, Iran or Sudan, Algeria looks much more attractive, but the entrance fee there is not cheap. (RusEnergy)
30.05.2001 | WednesdayNorway to stop sales through the Gas Negotiating Committee
HOUSTON, May 30 -- The Norwegian government Monday said it would discontinue marketing of offshore gas through the Gas Negotiating Committee (GFU) and proposed to abolish it.
Новость: HOUSTON, May 30 -- The Norwegian government Monday said it would discontinue marketing of offshore gas through the Gas Negotiating Committee (GFU) and proposed to abolish it. The Ministry of Petroleum and Energy said the marketing of Norwegian North Sea gas through the GFU will be discontinued June 1 and the GFU will be abolished Jan. 1, if the Storting approves. GFU, dominated by Norwegian majors, negotiated gas sales contracts on behalf of offshore operators. The ministry said, As part of the ongoing restructuring of the Norwegian gas activities, for some time (the government) has considered a change in the Norwegian resource management system, including the abolishment of the GFU. Important considerations are the increased maturity of the Norwegian Continental Shelf, the opening of the gas markets in Europe, and changes in company structures along the gas value chain. In these circumstances the producers on the Norwegian Continental Shelf should have increased freedom to act commercially. The ministry said ending the GFU would require legal changes that will take some time, and temporary arrangements will be necessary pending the formal abolishment of GFU. It said the government will instruct offshore producers to initiate the adaptation of contracts and other agreements between themselves, in order for the companies to be able to market their gas on an individual basis from now on. (Oil and Gas Jornal)
29.05.2001 | TuesdayRussian Weapons Pave Road to Algeria for Oil and Gas Companies
News reports about the practically unknown to anyone but industry watchers Caspian Oil Company (KNK) rarely reach the media.
Новость: News reports about the practically unknown to anyone but industry watchers Caspian Oil Company (KNK) rarely reach the media. However, when this companys CEO Alexander Porokhnin said recently at an international oil and gas conference in Astrakhan that KNK was going to produce 10 million tons of crude by 2007, it made a splash. A closer look at KNK shows that its potential prowess deserves special attention for years to come.
25.05.2001 | FridayCPC Oil Quality Bank Under Fire
For the first time in the FSU, an oil quality bank is to be introduced by the Caspian Pipeline Consortium.
Новость: For the first time in the FSU, an oil quality bank is to be introduced by the Caspian Pipeline Consortium. While suppliers of expensive sorts of crude welcome this novelty, many oil companies in Russia are unhappy. Most of them will have to pay fines for supplying cheap crude sorts below the quality standard to be exported from Novorossiysk starting this fall as the CPC Blend. (RusEnergy)
24.05.2001 | ThursdayEU threatens Hydro and Statoil with heavy fines
The EU Commission is threatening to fine Norsk Hydro and Statoil NOK billions for alleged illegal cooperation in the sale of natural gas.
Новость: The EU Commission has for some time been looking into the co-ordinated sale of Norwegian natural gas through the so-called Gas Negotiating Board (GFU). The EU looks upon this as an illegal cartel agreement. According to Dagens Naeringsliv, both Statoil and Hydro claim that it is unreasonable that they be punished for a cooperation ordered by the Norwegian authorities. The EU Gas Marketing Directive, which Norway was to have adopted last August will make it impossible to continue the GFU system. (The Norway Post)
23.05.2001 | WednesdayEni in Astrakhan: Another Over-Hyped Caspian Venture
Russian media depicts the agreement of Italys Eni to invest a modest sum in exploration of the North-Astrakhansky block close to the Caspian shores as a smashing success for Astrakhan-ba
Новость: Russian media depicts the agreement of Italys Eni to invest a modest sum in exploration of the North-Astrakhansky block close to the Caspian shores as a smashing success for Astrakhan-based producers. It is really so, considering the fact that over a dozen foreign majors have already decided against participation in the same project. However, the strategy of the Italians who seem to be grabbing, without discrimination, all available projects around the Caspian Sea, may focus in fact on making Eni more attractive in terms of reserves and market capitalization before selling its through some sort of merger. (RusEnergy)
23.05.2001 | WednesdayAgreement on new tax system for the oil industry
Labour, the Conservatives and the three Centrist parties have agreed on a new tax system for the oil industry.
Новость: The National Oil Industry Federation (OLF) characterizes the increase as substantial, while the spokesman for the Conservatives calls the increase moderate. The agreement is on the whole in line with the Governmants proposal to Parliament. The main aim has been to create more predictable terms for the future, and to make it impossible to deduct expenses incurred on activity outside the Norwegian Shelf against income in Norway, according to NRK. ( The Norway Post)
22.05.2001 | TuesdayVerkhne-Chonskoye: Oilfield as Battlefield
The Verkhne-Chonskoye oilfield in the Irkutsk region in Eastern Siberia will probably witness a spectacular battle for the license to its 200-million-ton reserves soon.
Новость: The Verkhne-Chonskoye oilfield in the Irkutsk region in Eastern Siberia will probably witness a spectacular battle for the license to its 200-million-ton reserves soon. The main contenders are TNK, which currently holds a stake in the field through participation in the current licenseholder RUSIA Petroleum, and YUKOS. The latter has a chance to dramatically improve the economics of its Talakan project some 100 km way by merging it with Verkhne-Chonskoye. (RusEnergy)
22.05.2001 | TuesdayNorwegian oil exports trebled in value
The value of Norwegian oil exports has nearly trebled over the past two years.
Новость: In April, the export of crude oil and natural gas was worth NOK 25.7 billion, 24.6 per cent more than at the same time last year. The exports of traditional goods for April was valued at NOK 16.7 billion, an increase of 3.2 per cent from the same period in 2000. So far this year, the increase has been 10 per cent. The export to EU nations at NOK 52 billion, showed an increase of 9.6 per cent, while the export to the Asian markets, at NOK 7 billion, showed an increase of 20 per cent. (NRK)
18.05.2001 | FridaySU energy: Information, Analyses, Forecasts > Caspian All in the Family: Kazakh Oil & Gas Industry under Nazarbayev
Kazakhstan is witnessing a blitzkrieg centralization of power and ownership in the oil and gas industry.
Новость: Kazakhstan is witnessing a blitzkrieg centralization of power and ownership in the oil and gas industry. The most influential figure in this sector is now Timur Kulibayev, chairman of the new Oil & Gas Transport monopoly and President Nursultan Nazarbayevs son-in-law, who is rapidly gaining control over many companies, be they private or state-owned, domestic or foreign. This concentration of power in the hands of one clan may lead to stricter business rules and, among other things, to higher oil and gas transportation tariffs. (RusEnergy)
18.05.2001 | FridayHostile reaction to Bush energy plan
There has been widespread criticism of US President George W Bushs plans for meeting the future energy needs of the country by increasing reliance on fossil fuels and nuclear power.
Новость: There has been widespread criticism of US President George W Bushs plans for meeting the future energy needs of the country by increasing reliance on fossil fuels and nuclear power. Mr Bush said his national energy plan would light the way to a brighter future for the US, and tackle a decade of neglect in the energy sector. But the head of United Nations Forum on Climate Change, Jan Pronk, called the plan a disastrous development because it would fail to cut emission of greenhouse gases. Mr Bushs plan would encourage more oil exploration and greater use of coal and nuclear energy, while offering incentives for conservation and renewable energy sources. With American households facing high petrol prices and California braced for rolling blackouts this summer, Mr Bush has made overhauling the nations energy policies a priority. (BBC)
16.05.2001 | WednesdayCheap Gas Is Expensive: Itera To Increase Investments in Gas Production But Not on Charity Terms
tera international group of companies has invested about 00 million in the development of the East-Tarkosale field in the Yamal-Nenetsk Autonomous District.
Новость: Itera international group of companies has invested about 00 million in the development of the East-Tarkosale field in the Yamal-Nenetsk Autonomous District. Payback, however, is dubious because the preferences the government promised to independent gas producers remain on paper only. If such projects enjoyed a more benevolent attitude of the government, Russia could easily ratchet up gas production and exports. (RusEnergy)
16.05.2001 | WednesdayKAZAKH OIL FACES A DIFFICULT PASSAGE THROUGH TURKISH WATERS
The imminent prospect of a three-fold increase in the volume of oil passing through the Turkish straits has heightened concerns in Turkey about the wisdom of shipping so much hazardous liquid through the center o
Новость: The imminent prospect of a three-fold increase in the volume of oil passing through the Turkish straits has heightened concerns in Turkey about the wisdom of shipping so much hazardous liquid through the center of Istanbul, a city of 15 million people. The newly completed pipeline linking Kazakhstans Tengiz oilfields with the Russian Black Sea port of Novorossisk began pumping oil at the end of March, and the first tankers are due to make their way through the straits as early as June. But the environmental and safety issues are caught up in a wider debate about the geopolitics of Caspian oil. The dangers to shipping posed by the Bosphorus, as it snakes its way through Istanbul, linking the Black Sea with the Sea of Marmara, even found their way into classical mythology. According to legend, Jason and the Argonauts were forced to negotiate the lethal Clashing Rocks at the mouth of the strait. Today the Bosphorus is still one of the trickiest -- and busiest -- navigable waterways in the world. To try and publicize the dangers, the Turkish environmentalist group Peace With Nature has publicized a nightmare scenario, in which a collision between tankers in mid passage turns the Istanbul strait into a river of fire that engulfs the city, causing massive loss of life and destroying historic monuments. Thats not so far-fetched, says the groups Yuksel Ustun, recalling the Nassia disaster in 1994, when a Cypriot-registered tanker collided with a freighter, drifted and foundered ashore -- not far, ironically, from the mythical site of the Clashing Rocks at the Black Sea entrance to the strait. The Nassias cargo of 19 million gallons of crude oil burned for a week, and 28 sailors were killed. If the accident had occurred just a few hundred meters further downstream, the currents would have carried the burning ship straight into the center of the city. Despite the potential hazard, Ustuns appeal to the residents of Istanbul to physically stop the tanker traffic if necessary is unlikely to elicit more than a token response. Most Turks are too preoccupied with the effects of an economic crisis, and civil protest on environmental issues is still in its infancy. Neither is the government in a position to do much, even if it wanted to, since the 1936 Montreux Convention explicitly guarantees the free passage of shipping through the Turkish straits. Critics point out that when the treaty was drawn up, an average of 17 ships a day passed through the Bosphorus, and supertankers did not even exist. The Turkish Maritime Pilots Association calculates that nearly 5,000 tankers completed the passage last year, over 2,000 of them longer than 200 meters. Shipping Minister Ramazan Mirzaoglu has said, however, that Turkey could invoke concessions wrested from the International Maritime Organization (IMO) in 1994 to try to regulate a rise in shipping traffic arising from Kazakh oil, perhaps by staggering the number of passages. Better piloting procedures and a new radar tracking system are also due to be introduced shortly. The Turkish straits are at the saturation point, Mirzaoglu warned at the end of March, foreseeing gridlock if the Kazakh oil is shipped to international markets by sea. That statement dismayed Russia, which has accused Turkey of trying to block the maritime shipment of Kazakh oil in a bid to promote the alternative Baku-Ceyhan pipeline project. Experts detect an element of truth in that assessment, as far as it goes. Turkey may benefit from alternative pipelines being built, said an oil industry analyst, but it has no need to exaggerate the dangers of a shipping disaster in Istanbul. They are plain for all to see. Nevertheless, Russian influence over the future of Caspian oil has never been greater. As Tengiz-Novorossisk looks set to flourish and Baku-Ceyhan continues to flounder, tensions between Turkey and Russia, and possibly even Kazakhstan, could mount. Turkish politicians would do well to remember that at the summit of Turkic-speaking nations, held at the Ciragan Palace on the Bosphorus at the end of April, the lingua franca was not Turkish, but Russian. (EurasiaNet)
15.05.2001 | TuesdayWillams Prepares For Alekperovs Visit to Lithiania
The Lithuanian government does not even attempt to hide its dissatisfaction with the financial performance of the national oil company Mazeikiu Nafta and demands that its US operator, Wi
Новость: The Lithuanian government does not even attempt to hide its dissatisfaction with the financial performance of the national oil company Mazeikiu Nafta and demands that its US operator, Williams International, improve the situation immediately. As to Williams, it blames LUKOIL for all the trouble but fails to make the jeremiads convincing enough. In these circumstances, the approaching visit of LUKOIL chief Vagit Alekperov to Lithuania might result is strengthening of the Russian oil companys position in that country. (RusEnergy)
14.05.2001 | MondayStatoil shares made attractive at a discount
Norwegians will be enticed into buying Statoil shares by attractive discounts.
Новость: Akselsen thinks it will become easier to market the shares to the big investors, if it is pointed out that many Norwegians also own Statoil shares. The listing of Statoil on the stock exchange will probably take place on June 18th, but the Norwegian public will be offered the shares before that date. This is confirmed by Oil and Energy Minister Olav Akselsen, in a statement to NRK. (the Norway Post)
10.05.2001 | ThursdayGas Exports to China: Go-Slow in Kovykta, Red Carpet in Altai
Gazprom and PetroChina managers are discussing possibilities of bi-directional Russian gas deliveries from Yamal to Xinjian and from Yakutia to Harbin-ambitious but
Новость: Gazprom and PetroChina managers are discussing possibilities of bi-directional Russian gas deliveries from Yamal to Xinjian and from Yakutia to Harbin-ambitious but hard-to-accomplish projects. Simultaneously, the Chinese are putting off another, much more realistic, project of gas imports from Kovykta in the Irkutsk region. Beijing seems to be intentionally provoking competition between Russian gas export projects to be able to dictate the terms of supply as the sole buyer. (RusEnergy)
08.05.2001 | TuesdayENI poised for Russian oil deal
ENI, the Italian oil and gas company, expects to sign agreements with Russias Gazprom within two months to produce oil and gas in the Caspian region.
Новость: ENI, the Italian oil and gas company, expects to sign agreements with Russias Gazprom within two months to produce oil and gas in the Caspian region. It would be the first foreign oil company to extract oil in Russia. A production accord could also pave the way for ENI to take a small stake in Gazprom. The two companies agreed in 1999 to such a scenario; ENI invested up to Dollars 500m following an accord to jointly build a gas pipeline connecting Russia and Turkey via the Black Sea. The only foreign company with a small stake in Gazprom is Ruhrgas, the German gas group. Although other oil companies have won licences in recent years to extract oil in Russia, none has been able to do so for technical and legal reasons. ENI believes that it can overcome such hurdles if it teams up with Gazprom. These are land-based fields which could be fairly important, but at this point we are still in discussions, said Vittorio Mincato, ENI chief executive. He declined to comment about any stake in Gazprom. The fields could have reserves of about 1bn barrels, ENI executives said. That is large by oil industry standards but pales in comparison with the Kashagan field in Kazakhstan which ENI three weeks ago won the right to operate. The Kazakhstan government has said Kashagan, in the Caspian Sea, could have reserves of up to 50bn barrels, making it among the worlds top three fields and the largest discovered in the past 40 years. ENI and the eight other companies that own rights to the field are more cautious, but engineers say it is likely to have reserves totalling at least 20bn-30bn barrels. ENI has promised that production will start by the end of 2005, although full capacity will probably not be reached before 2010. Kazakhstan wants the oil to flow through a pipeline that would run through Iran, whereas the US wants the oil to go straight from the sea through Azerbaijan and Turkey. Russia wants a pipeline of its own from the former Soviet republic. ENI executives say two or three pipelines could branch off in different directions, but that a decision does not need to be made for at least another year. Economically, Russia and Iran probably make the most sense. US companies would agree, if they could admit it, said Julian Lee, senior analyst at the Centre for Global Energy Studies. Chevron Texaco, the US oil company, would like a pipeline to run into Iran from a Kazakh field it operates, but US sanctions against Iran have blocked it. (NevteGas)
08.05.2001 | TuesdayOil & Gas: Record earnings for Norwegian refinery
A shortage of gasoline in the US has resulted in higher oil prices, and record earnings for Norways largest refinery at Mongstad.
Новость: The shortage of gasoline in the US has also led to higher gas prices in Europe, and in Norway the price has gone up by NOK 0.60 this last month alone. -There is no lack of crude oil on the world market, but a shortage of production capacity at the US refineries, says Statoils Information Director, Kristin Bremer Nebben. (The Norway Post)
07.05.2001 | MondayPipeline from Kazakhstan to Persian Gulf: Dream Comes True?
There are reasons to believe that Kazakhstan is becoming serious about building an oil pipeline via Turkmenistan and Iran to export terminals in the Persian Gulf.
Новость: There are reasons to believe that Kazakhstan is becoming serious about building an oil pipeline via Turkmenistan and Iran to export terminals in the Persian Gulf. A task force has been formed in Astana to study the project and some foreign investors may support this project, defying political pressures from the US administration. There are still lost of snags, but the recent discovery of immense oil reserves in Northern Caspian might be an excellent stimulus for pushing the Iranian option ahead. (RusEnergy)
07.05.2001 | MondayA new state oil and gas company exist in Norway.
Norwigion government is forming state Joint-stock company. It will control oil and gas resources of the government of Norway after the sell of 21,5 percent of the actives to Statoil and other companies
Новость: Norwigion government is forming state Joint-stock company. It will control oil and gas resources of the government of Norway after the sell of 21,5 percent of the actives to Statoil and other companies. The regional press says that Tore I. Sandvold is appointed the head of the company. He had had leading positions in the Department of Oil and Energy of Norway since 1974. The new company would be called Petoro AS.
27.04.2001 | FridayOur Answer To Halliburton. Domestic Oil and Gas Equipment Suppliers Oppose Lower Import Tax
n mid-April, the Russian Oil Exporters Union sent a proposal to Ministry Economic Development and Trade to cut down the import tax on oil and gas equipment, which is not manufactured domestically.
Новость: In mid-April, the Russian Oil Exporters Union sent a proposal to Ministry Economic Development and Trade to cut down the import tax on oil and gas equipment, which is not manufactured domestically. The list, already approved by the Ministry of Energy and containing over 100 items, has been also sent to the State Customs Committee. In September it will probably reach the governmental Commission for Foreign Protective Measures for final approval. (RusEnergy)
26.04.2001 | MondayThe Pariah: Foreign Investors Tend to Avoid Russias Oil and Gas Industry
During the past six years Russias position in the oil and gas investment credibility rating has dropped down from the nineteenth place to the thirty-seventh.
Новость: During the past six years Russias position in the oil and gas investment credibility rating has dropped down from the nineteenth place to the thirty-seventh. This sad fact has been registered through interviews with executives from 85 international energy companies, who evaluated the comparative attractiveness of 146 nations for oil and gas investments. And it seems that Russia has not reached its bottom yet. Industry watchers sometimes feel that Russian government is pursuing a strategy of squeezing foreigners out to make room for domestic players. (RusEnergy)
25.04.2001 | WednesdayOPEC aims to keep market well supplied at 5/bbl: Naimi
OPECs objective is to keep world markets adequately supplied with crude at prices of 5/bbl for the OPEC basket, Saudi Arabias oil minister Ali Naimi said Wednesday.
Новость: OPECs objective is to keep world markets adequately supplied with crude at prices of 5/bbl for the OPEC basket, Saudi Arabias oil minister Ali Naimi said Wednesday. Our aim is to keep the market well supplied with prices at an average 5/bbl for the OPEC basket, he said. Naimi said the oil price collapse of 1998 affirmed the necessity of a stable market, adding that OPECs production cuts earlier this year fell within the organizations efforts to keep world markets balanced. Naimi said however there was still a state of petrophobia in the industrialized countries. Certain countries, he said, without giving any names, preach the doctrine of free trade but impose excessive petroleum taxation and regulation. Naimi said these measures were pursued vigorously although oil accounts for relatively small amounts of GDP. (Platts)
24.04.2001 | TuesdayNorway Needs Gas-Fired Power Plants Urgently, Says Energy Minister
Norwegian Oil and Energy Minister Olav Akselsen has reportedly said that Norway needs to build gas-fired power plants soon to meet the growing need for electricity in the country.
Новость: Norwegian Oil and Energy Minister Olav Akselsen has reportedly said that Norway needs to build gas-fired power plants soon to meet the growing need for electricity in the country. Akselsen said that the situation in Norway was serious and that more drastic efforts were needed to ensure enough electric power in the country. The minister wants to prepare the ground for the building of gas-fired plants, with restrictions similar to those found abroad, reported The Norway Post.
24.04.2001 | TuesdaySlavneft in Sudan: Test of Strength
Slavneft, a Russian-Belarusan major, has reached an agreement with the Sudanese government on oil and gas exploration in that war-torn country.
Новость: Slavneft, a Russian-Belarusan major, has reached an agreement with the Sudanese government on oil and gas exploration in that war-torn country. While the actual beginning of field operations depends on evaluation of geological and geophysical data for two blocks, the company is determined to go much farther in Sudan and buy a controlling interest in an ongoing oil project there. It seems that neither the sad reputation of the Sudanese regime nor its boycott by the world community are going to stop Slavneft in its expansion in Africa. RusEnergy
20.04.2001 | FridayTNK Shareholders To Consider Introduction Of Single Shares
Shareholders of the Tyumen Oil Company (TNK) will hold a special meeting today, a source in the company reported to RBC.
Новость: Shareholders of the Tyumen Oil Company (TNK) will hold a special meeting today, a source in the company reported to RBC. They will consider an increase in the TNK authorized capital to almost 800m rubles (7.68m) and the introduction of single shares. In addition, shareholder are expected to approve a transaction with the US ExImbank, who guarantees credits for updating the Ryazansky oil refinery, a subsidiary of TNK, and for the reconstruction of the Samotlorsky oil deposit. (RBC)
18.04.2001 | WednesdayBashneft Oil Company To Begin Exploring Sakhalin Oil Shelf
The Bashneft oil company will begin exploring oil fields of the Sakhalin shelf in the beginning of May this year, Bashkirian officials reported to RosBusinessConsulting. A general agreement was signed between the
Новость: The Bashneft oil company will begin exploring oil fields of the Sakhalin shelf in the beginning of May this year, Bashkirian officials reported to RosBusinessConsulting. A general agreement was signed between the Republic of Bashkiria and the Alfa-Eko company several days ago devoted to the expansion of collaboration in the sphere of oil production and gas condensate supplies. This document ensures the beginning of the exploration works. According to experts, the exploration of the new oil fields will bring .5bn over the next five years. No decision was made so far concerning the distribution of this money. However, it is clear that the volume of profits will fully depend on the volume of investments. According to preliminary information, the new Sakhalin shelf contains 250m tons of oil. (RBC)
17.04.2001 | MondayBrent surges after blast
Oil prices rose sharply on supply concerns after a blast at a Conoco refinery on the east coast of Britain on Monday.
Новость: Oil prices rose sharply on supply concerns after a blast at a Conoco refinery on the east coast of Britain on Monday. The Brent crude futures contract for June delivery spurted 83 U.S. cents to 8.20 in early trade on the International Petroleum Exchange in London. Conoco, which produces some 230,000 barrel a day at the Killingholme refinery in Lincolnshire, had sought to reassure the market on Monday by saying it had enough products in storage to meet customers near-term needs. Also weighing on oil prices was talk that Exxon Mobils 130,000 barrel a day Beaumont, Texas plant was down for unplanned maintenance after a problem was discovered, Lawrence Eagles, analyst at GNI Research, wrote in his daily oil report. About 60 percent of products from Conocos damaged UK plant are exported, and Eagles wrote that traders said some 35,000 barrels a day are sent to New York Harbour. The Conoco refinery produces a wide range of products including gasoline and liquefied petroleum gas as well as heating oil, diesel and aviation jet fuel. Refinery units associated with the saturate gas plant, where the explosion and fire occurred, were shut down immediately after the incident, Conoco said. Traders will also be looking for direction from the American Petroleum Institutes report later on Tuesday. (CNN)
13.04.2001 | FridayRussian oil product exports up 81% to .9 bln in Jan-Feb
Russia exported .905 billion worth of oil products in January-February 2001, which was 81% (55.9 million) more than in the same period last year, a source close to the cu
Новость: Russia exported .905 billion worth of oil products in January-February 2001, which was 81% (55.9 million) more than in the same period last year, a source close to the customs authorities. According to the source, Russia exported 735,000 tonnes of various types of gasoline in the first two months - worth 60.6 million, in addition to 4.93 million tonnes of diesel (.058 billion), 4.96 million tonnes of fuel oil (77.1 million) and 109,850 tonnes of lubricating oil (8.9 million). Most of the gasoline was exported to Holland (206,000 tonnes) and Sweden (191,200 tonnes), with diesel going to Holland (874,000 tonnes) and lubricating oil - to Holland (11,950 tonnes) and Poland (24,000 tonnes). Exports of oil products in February 2001 amounted to 19.6 million.(Interfax)
12.04.2001 | ThursdayFederal Energy Commission Suggests Ways Out Of Energy Crisis In Russia
An effective method of coping with the energy crisis in Russia over the next ten years is to complete the construction of nuclear reactors that are almost ready for operation.
Новость: An effective method of coping with the energy crisis in Russia over the next ten years is to complete the construction of nuclear reactors that are almost ready for operation. This information was reported by chairman of the Federal Energy Commission Georgy Kutovoy at the conference The problem of the year 2003 today. The problem is that about 50 per cent of all equipment at Russian energy producing enterprises is outdated. The official stressed that Russia is already in a state of a deep crisis and one should not wait until this crisis gets deeper. He noted Russia should consolidate its assets and finish the construction of about 5 or 6 nuclear reactors. Other possible ways out, such as a rise in the volume of coal supplies to the central regions of Russia, are more expensive, Kutovoy said. (RBC)
11.04.2001 | WednesdayThin films of oil lap the white crystal sands of a Gulf beach near the Omani capital of Muscat, where a dozen birds lie motionless in small dark pools.
Residents and officials are quick to blame oil tankers, always visible on the horizon as they ply the Strait of Hormuz, one of the worlds busiest shipping routes. They say the vessels clean their tanks and flush
Новость: Residents and officials are quick to blame oil tankers, always visible on the horizon as they ply the Strait of Hormuz, one of the worlds busiest shipping routes. They say the vessels clean their tanks and flush waste oil out into the water off the Omani coast before they sail north to load crude from such big producers as Saudi Arabia, Iran, Kuwait and the United Arab Emirates (UAE). Tankers do their illegal activities at night, when it is hard to detect them, Ali bin Amer al-Kiyumi, director of nature conservation at Omans Environment Ministry, told Reuters. Tests show that marine life and beaches are affected by the waste coming from vessels cleaning their tanks, he said. The Gulf region contains more than half the worlds known oil reserves and pumps around 16 million barrels a day, or two thirds of the worlds traded oil. An official from the Kuwait-based Regional Organization for the Protection of the Maritime Environment (ROPME) estimated that up to 30,000 barrels of crude are leaked into the Gulf every day from ballast tanks by vessels loading and from offshore rigs.
10.04.2001 | TuesdayGazprom And Ruhrgas AG Sign Partnership Program For 2001
Representatives of Russian gas monopolist Gazprom and German Ruhrgas AG signed a program of scientific and technical partnership for 200
Новость: The press service of Gazprom informed RBC that the two companies are going to implement a number of projects aimed at the settlement of technical, industrial, economical and ecological problems. In addition, Gazprom and Ruhrgas are going to implement joint projects on registration, measuring, distribution and usage of natural gas in the Vladimir and Tver regions of Russia. The two gas companies will also conduct joint research on the protection of pipelines from corrosion, ecology of gas and so on. (RBC)
09.04.2001 | MondayYukos Representative Leads In Regional Governor Elections
According to preliminary data, Boris Zolotaryov, an official from the Yukos oil company, won in the local governor elections in the Evenki autonomous region of Russia.
Новость: According to preliminary data, Boris Zolotaryov, an official from the Yukos oil company, won in the local governor elections in the Evenki autonomous region of Russia. He mustered about 17 per cent more votes than his rival Yevgeny Vasilyev. All in all, there were six candidates for the post of the regional governor. About 8,000 local residents took part in the voting.(RBC)
09.04.2001 | MondaySlavneft To Float Bonds Worth 5M
Russian oil company Slavneft will start the floatation of the first issue of loan bonds worth 1bn rubles (about 5m) today
Новость: Russian oil company Slavneft will start the floatation of the first issue of loan bonds worth 1bn rubles (about 5m) today. The term of circulation will amount to 1 year. These bonds will be floated in three tranches, whose amounts will be determined later. The profitability of Slavneft bonds is expected to be 2-2.5 per cent more than the profitability of similar federal loan bonds. The bonds are expected to be bought not only by large Russian banks but also by small investors. Troika-Dialog will act as an underwriter and consultant for this issue. As reported earlier, companies within Slavneft are expected to receive net profit in the amount of 61m in 2000. The profit of Slavneft amounted to 51m in 1999 but it suffered losses of 62m in 1998.(RBC)
09.04.2001 | MondayArmenia Owes 2M To Itera Gas Company
The total volume of indebtedness of Armenia for natural gas supplies of the Itera energy company reached 2m, Deputy Head of the press service of the Itera-Holding company Yevgeny Alexandrov reported to SNARK in
Новость: The total volume of indebtedness of Armenia for natural gas supplies of the Itera energy company reached 2m, Deputy Head of the press service of the Itera-Holding company Yevgeny Alexandrov reported to SNARK information agency. He noted that this amount includes old and new debts. A possibility of restructuring the debt was discussed during negotiations between Itera officials and the Energy Ministry of Armenia. Alexandrov was quoted as saying that the negotiations will continue as no document has been signed so far. However, the energy company will further supply the republic with gas. In 2001, Armenia plans to receive 1.5bn cubic meters of natural gas, with 1bn cubic meters to be consumed by the energy industry of Armenia.(RBC)