International Petroleum Finance articles from May 2003

International Petroleum Finance archives from May 2003

Fat profits, thin pickings.(questions arise as to where oil companies are spending their profits)
May 1, 2003... The first quarter of 2003 provided a bumper crop of earnings for the world's major oil companies, but these growing profits point to a growing problem--how and where do oil companies spend all this money they're making? The industry...

Where Baghdad finds the billions.(a discussion of what must be done for Iraq to benefit from its oil reserves)
May 1, 2003... Iraq's enormous oil reserves create the false impression of immediate and natural wealth. The assumption that Iraq's 112.5 billion barrels of known reserves can parachute the country into prosperity ignores the truism that oil only has value...

Q1 delivers cash bonanza for big oil.(the petroleum industry reports strong earnings in the first quarter)(Industry Overview)
May 1, 2003... First-quarter earnings among the world's leading oil and gas companies have largely delivered what investors were expecting--robust profits and cash flow on the back of strong oil and gas prices and the striking year-on-year recovery in...

Lukoil plans response to YukosSibneft threat.(Lukoil faces a stiff challenge from YukosSibneft Oil Co.)
May 1, 2003... Lukoil is doomed to lose its position as Russia's biggest oil producer at least for a while, once the planned merger between Yukos and Sibneft has been finalized at the end of this year (see page 6). The merged YukosSibneft Oil Co. will have...

Yukos-Sibneft deal puts smile on BP's face.(BP expects to benefit from its joint venture with Tyumen Oil Co.)
May 1, 2003... The merger announced last month between Russian majors Yukos and Sibneft has in one fell swoop created a Russian giant to rival the western supermajors, and put a broad smile on the face of BP chief executive John Browne. The new combined...

Upstream the key for China's majors.(China's big three oil companies are all dependent on the upstream)
May 1, 2003... They may differ in size and strength, but China's big three oil companies are united by their dependence on the upstream. Even downstream-focused Sinopec, which enjoyed a surge in refining and marketing earnings last year, still saw its...

Regulator puts brakes on Spanish power shake-up.(Spain's energy regulator rejects Gas Natural's hostile bid for Iberdrola)
May 1, 2003... The Spanish energy regulator's rejection last month of Gas Natural's (GN) $17 billion hostile bid for electricity utility Iberdrola marks the end of the company's brave--some might say reckless--attempt to join, in a single bound, the premier...

Mexico uses oil dollars for financial housekeeping.
May 1, 2003... Strong oil prices in the first quarter have given Mexico a chance to put its financial house in order, but have brought more immediate benefit to the nation than to state oil company Petroleos Mexicanos (Pemex). During the quarter, Pemex cashed...

Better times ahead for marathon's upstream?(Marathon Oil could benefit from a reduction in upstream costs and improved exploration results)(Company Profile)
May 1, 2003... Could Marathon Oil, and its notoriously underperforming upstream business, finally be turning the corner? This is certainly the view among some US analysts, who points to the greater exploration success and reductions in upstream costs achieved...

Moody's cuts Hess rating.(Moody's reduces its senior long-term debt rating for Amerada Hess)(Brief Article)
May 1, 2003... Debt rating agency Moody's has cut its senior long-term debt rating for Amerada Hess from Baa2 to Baa3, leaving the company just one notch away from sub-investment or 'junk bond' status. Moody's had placed the Hess rating under review at the...

Petronas spending big abroad.(Brief Article)
May 1, 2003... Malaysia's state-owned Petronas has completed deals worth close to $2 billion, giving it stakes in upstream assets in Egypt, Sudan, and Indonesia. In the biggest deal, Petronas has agreed to pay Italy's Edison up to 1.6 billion euros ($1.75...

Smaller deals drive M&A surge.(Brief Article)
May 1, 2003... The total value of global upstream M&A activity spiked last quarter to its highest level since the fourth quarter of 2001, bolstered by Devon Energy's blockbuster acquisition of fellow US independent Ocean Energy and BP's massive equity...

Repsol YPF set for poll boost.(Brief Article)
May 1, 2003... With the most radical anti-business candidates eliminated from Argentina's presidential election, the May 18 run-off between expresident Carlos Menem and rival Nestor Kirchner could prompt an improvement in Spanish major Repsol YPF's credit...

Chevron faces Ecuador suit.(Brief Article)
May 1, 2003... ChevronTexaco has begun its defense in a costly legal battle in Ecuador against accusations that it has caused billions of dollars in damage by polluting portions of the country's Amazon region. The suit, which was brought by thousands of...

Rosneft buys Anglo-Siberian.(Brief Article)
May 1, 2003... Russia's state-owned Rosneft is paying around $74 million for UK-listed Anglo-Siberian Oil. The takeover deal, recommended by Anglo-Siberian's management, gives Rosneft an indirect 59% stake in the 900 million bbl Vankorskoye oil and gas field...

Zarubezhneft for sale.(Brief Article)
May 1, 2003... The Russian government has decided to move ahead with privatization of state-owned Zarubezhneft sooner than expected, and will look to sell a 50% stake in the company this year. The exact timing and terms of the sale have not yet been...

Woodside to name new boss.(Brief Article)
May 1, 2003... Australia's Woodside Petroleum has begun looking for a replacement for managing director John Akehurst, a full two years before his contract is due to expire. "The board believes it is appropriate for a new chief executive officer to join the...

Chevron to exit PNG.(Brief Article)
May 1, 2003... ChevronTexaco is pulling out of Papua New Guinea, citing the need to focus on assets "more aligned with strategic growth objectives." The decision means that Chevron is putting its PNG assets up for sale, including its interests in the Kutubu,...

Nexen's Yemen lament.(Brief Article)
May 1, 2003... Investor anxiety over Middle East exposure means Canadian producer Nexen's assets in Yemen are "worth nothing" in the eyes of analysts, according to the company's president Charles Fischer. Nexen holds 52% of the Masila project, which accounts...

BP wins Egyptian acreage.(Brief Article)
May 1, 2003... BP has been awarded four new exploration licenses in Egypt--three in the offshore Gulf of Suez, and one in the northern Red Sea. The Gulf of Suez concessions are for East el-Morgan Block 2, North Ghara Block 4, and East Warda Block 35, while...

Suncor buys US refinery.
May 1, 2003... Canada's Suncor has taken a key strategic step toward establishing markets for its expanding oil sands production with the $150 million purchase of ConocoPhillips' 62,000 b/d refinery in Denver, Colorado. The deal includes 43 Phillips-branded...

End to Iraq war spurs equity markets--but not oil shares. (Equity Markets).
May 1, 2003... The effective end to major combat operations in Iraq in April led to big gains for global equity markets; however, leading oil and gas shares were largely left out of the resurgence. A quick resolution to the conflict in Iraq finally...

Petrobras sets budget to fund output growth. (Emerging Markets).
May 1, 2003... The administrative council of Brazil's state-owned Petrobras has approved a capital budget of $34.5 billion for the 2003-07 period, up from the previous $31.7 billion budget for 2001-05. And the company's focus for the coming period will remain...