Petroleum Intelligence Weekly articles from August 2004

Petroleum Intelligence Weekly archives from August 2004

Saudi output capacity needs to rise, soon.
August 2, 2004... The time has come for Saudi Arabia to move forward with a significant expansion of its oil production capacity. Such a move has been under consideration within the government and Saudi Aramco for some time, but there has been a reluctance to...

Russian risks rise, reserves remain cheap.
August 2, 2004... Western oil companies persist in casting covetous eyes on Russia's hydrocarbon reserves, seemingly unperturbed as the state-orchestrated takeover of oil giant Yukos gathers pace (p7). Any unease caused by the Yukos saga is clearly being quelled...

Nigeria idles on way to end gas flaring.
August 2, 2004... As Nigeria's 2008 deadline to end flaring of associated natural gas draws closer, Royal Dutch/Shell still faces many hurdles on the way to the finishing line. The supermajor has increased--rather than reduced--flaring during the past year, and...

Iran's terms are still a turn-off.
August 2, 2004... International off companies chasing upstream deals in Iran continue to be frustrated by a slow and often confusing decision-making process and an apparent reluctance by the off ministry to offer longer-term contracts that are a bit more...

Prices soar, yet oil supply outruns demand.
August 2, 2004... The incredibly strong crude market--prices hit a record high of $43.05 per barrel last week--is underpinned by worries about whether oil supply and worldwide refining capacity can keep up with surging global demand. Yet, for all the recent hype...

Mind the gap in US gas supply.
August 2, 2004... Riders of the London underground are cautioned before boarding and exiting carriages to "mind the gap." North American natural gas consumers could heed the same warning, as the outlook for the second half of the decade shows a yawning gap...

Corporate--Royal Dutch/Shell has agreed to pay penalties of around $150 million to settle investigations into this year's reserves downgrades by financial regulators in the US and the UK.(General)(Brief Article)
August 2, 2004... CORPORATE -- Royal Dutch/Shell has agreed to pay penalties of around $150 million to settle investigations into this year's reserves downgrades by financial regulators in the US and the UK. Neither settlement involves an admission of guilt,...

Industry restructuring--Australia's Origin Energy has struck a deal to buy Edison Mission Energy's 51.2% stake in Contact Energy, New Zealand's largest power company, for US$730 million.(General)(Brief Article)
August 2, 2004... INDUSTRY RESTRUCTURING -- Australia's Origin Energy has struck a deal to buy Edison Mission Energy's 51.2% stake in Contact Energy, New Zealand's largest power company, for US$730 million. Natural gas producer Chesapeake Energy has struck three...

LNG--top Spanish marketer Gas Natural (GN) plans to build twin LNG import terminals in Italy by 2009, while UK utility Centrica has announced plans to import LNG into the UK.(General)(Brief Article)
August 2, 2004... LNG--Top Spanish marketer Gas Natural (GN) plans to build twin LNG import terminals in Italy by 2009, while UK utility Centrica has announced plans to import LNG into the UK. GN plans two 8 Bcm/yr (774 MMcf/d) facilities, each costing $730...

Igor Sechin, a close associate of Russian President Vladimir Putin and deputy chief of staff at the Kremlin, was elected chairman of state-owned Rosneft.(General)(US' Commodity Futures Trading Commission)(Brief Article)
August 2, 2004... PEOPLE -- Igor Sechin, a close associate of Russian President Vladimir Putin and deputy chief of staff at the Kremlin, was elected chairman of state-owned Rosneft. Sharon Brown-Hruska has been appointed acting chair of the US' Commodity Futures...

Refining--surprisingly healthy gasoline stocks in the US have put the skids under soaring refining margins, which peaked at a record high average of $13.11/bbl in the week ended May 22.(General)(Brief Article)
August 2, 2004... REFINING -- Surprisingly healthy gasoline stocks in the US have put the skids under soaring refining margins, which peaked at a record high average of $13.11/bbl in the week ended May 22. Data from the US Energy Information Administration...

Correction.(General)(Correction Notice)
August 2, 2004... The Iraq Kirkuk price formula shown on p.4 of the July Price Scorecard is incorrect (PIW Jul.26,Supplement). No formula was in use, as all sales were by spot tender.

Algeria--eight out of the 10 blocks on offer in the fifth licensing round have been awarded, with signings expected later this month.(Countries)(Brief Article)
August 2, 2004... ALGERIA -- Eight out of the 10 blocks on offer in the fifth licensing round have been awarded, with signings expected later this month. Winners in the contest for a variety of onshore acreage scattered across several basins included US Amerada...

Bolivia--fresh from a successful referendum that endorsed the export of natural gas, the government is poised to review contracts with private oil and gas operators.(Countries)(Brief Article)
August 2, 2004... BOLIVIA -- Fresh from a successful referendum that endorsed the export of natural gas, the government is poised to review contracts with private oil and gas operators. A port in Peru is also likely to be favored over Chile as an export route...

Malaysia--US Murphy Oil continues to exceed expectations offshore Sabah, with a new discovery holding "substantial gas" in addition to the estimated 1 billion bbl of oil reserves.(Countries)(Brief Article)
August 2, 2004... MALAYSIA -- US Murphy Oil continues to exceed expectations offshore Sabah, with a new discovery holding "substantial gas" in addition to the estimated 1 billion bbl of oil reserves. Murphy plans to spud another well in offshore Block K this...

Norway--Statoil is to be jointly investigated by the US Justice Department and the US Attorney for the Southern District of New York in relation to its controversial Horton Investment contract in Iran.(Countries)(Brief Article)
August 2, 2004... NORWAY -- Statoil is to be jointly investigated by the US Justice Department and the US Attorney for the Southern District of New York in relation to its controversial Horton Investment contract in Iran. This is in addition to an ongoing US...

Russia--while the injunction threatening to halt its oil sales was lifted on Jul. 29, offering some relief to embattled shareholders and nervous oil markets, oil giant Yukos is still in deep trouble and may not be able to ward off bankruptcy.(Countries)(Brief Article)
August 2, 2004... RUSSIA -- While the injunction threatening to halt its oil sales was lifted on Jul. 29, offering some relief to embattled shareholders and nervous off markets, off giant Yukos is still in deep trouble and may not be able to ward off bankruptcy....

Russia--the surge in oil production may be running out of steam as oil companies trim their growth forecasts for the year, despite achieving record output of 9.26 million b/d in June, when they accounted for more than 11% of global supply.(Countries)(Brief Article)
August 2, 2004... RUSSIA -- The surge in oil production may be running out of steam as oil companies trim their growth forecasts for the year, despite achieving record output of 9.26 million b/d in June, when they accounted for more than 11% of global supply....

Russia--North America is emerging as the most likely next market for Sakhalin Energy, operator of the Royal Dutch/Shell-led Sakhalin-2 LNG project, which could sign a new gas sales contract within a month.(Countries)(Brief Article)
August 2, 2004... RUSSIA -- North America is emerging as the most likely next market for Sakhalin Energy, operator of the Royal Dutch/Shell-led Sakhalin-2 LNG project, which could sign a new gas sales contract within a month. Sakhalin Energy declined to name the...

South Korea--ChevronTexaco's joint venture refinery declared force majeure on exports as a strike interrupted processing at the 650,000 b/d Yosu plant.(Countries)(Brief Article)
August 2, 2004... SOUTH KOREA -- ChevronTexaco's joint venture refinery declared force majeure on exports as a strike interrupted processing at the 650,000 b/d Yosu plant. LG-Caltex, a 5050 joint venture between Chevron and South Korea's LG Group, was forced to...

Sudan--Malaysia's MMC has won a $65.6 million contract from the Petrodar consortium as it moves ahead with development of blocks 3 and 7 in the Melut Basin.(Countries)(Brief Article)
August 2, 2004... SUDAN -- Malaysia's MMC has won a $65.6 million contract from the Petrodar consortium as it moves ahead with development of blocks 3 and 7 in the Melut Basin. MMC is to work in tandem with China's Sinopec and Oman Construction Co. to lay a 490...

United States--Exxon Mobil and state Qatar Petroleum (QP) have secured access to the fast-growing natural gas market in the southeast, signing a heads of agreement with FPL Group, parent of electric utility giant Florida Power & Light, to supply LNG from their RasGas-2 venture.(Countries)(Brief Article)
August 2, 2004... UNITED STATES -- Exxon Mobil and state Qatar Petroleum (QP) have secured access to the fast-growing natural gas market in the southeast, signing a heads of agreement with FPL Group, parent of electric utility giant Florida Power & Light, to...

Majors feel the heat in the Caspian.(What's New Around the World)(petroleum industry)
August 2, 2004... The demise of Yukos in Russia may be dominating the headlines, but the world's biggest oil companies are running into problems in other parts of the former Soviet Union, too. A BP consortium has had to halt work in Georgia on its crucial...

High roller.(Marketview)
August 2, 2004... LONDON/SINGAPORE -- Last week's record highs in futures put benchmarks Brent and West Texas Intermediate about 20% ahead of their end-June lows. The sudden ramp-up looked like an outburst of speculative mania but it round a strong echo in...

Singapore: oil hub looks at LNG prospects.(Liquefied Natural gas)(Brief Article)
August 2, 2004... Singapore is looking at the possibility of turning itself into an LNG trading hub that would complement its pivotal role in Asia's oil products and petrochemical trade. Singapore would like to have the option of LNG as a substitute for piped...

PIW market indicators.(Illustration)
August 2, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $37.41 $36.58 $35.35 UK Brent (Dated) 40.30 38.98...

Shareholders, not projects, get windfall.(oil comapanies spending)
August 9, 2004... With oil prices firmly above $40 per barrel and global capacity stretched to the limits, there has been some head scratching as to why oil companies aren't increasing exploration budgets in an attempt to get a quick bump in oil and gas output....

Yukos apart, Russian targets are slipping.
August 9, 2004... The immediate focus is on embattled Yukos and whether its oil production will be disrupted--and if so, how badly--but Russia's breathtaking surge in output is slowing down regardless. Despite producing a record 9.33 million barrels per day of...

Panama plans open up Latin LNG potential.(Liquefied natural gas)
August 9, 2004... The opening of the Panama Canal 90 years ago transformed world shipping. The canal itself may now be transformed, if the Panama Canal Authority endorses a plan to add a third set of locks--significantly trimming transit time, increasing the...

After Saudi, supermajors drop Chinese gas.
August 9, 2004... Much as Saudi Arabia's natural gas initiative could not offer what Big Oil demanded, so China's flagship gas project has also fizzled for the supermajors. In a brief note to Exxon Mobil, Royal Dutch/Shell and Russia's Gazprom last week,...

Kazakhs put their partners under pressure.(petroleum industry)
August 9, 2004... Buoyed by soaring oil prices and rising production, which is set to double to some 2 million barrels per day by 2010, Kazakhstan is flexing its muscles and demanding a greater role in the big-ticket production-sharing agreements (PSAs) that...

Latin American reforms may scare investors.
August 9, 2004... Latin American governments trying to revive defunct state-owned oil companies gaze enviously at Brazil's Petrobras. In the few years since it lost its monopoly and was part privatized, the state-controlled poster child has doubled oil...

Formula prices--Saudi Arabia raised its price terms for September crudes to Europe while lowering the price terms for heavy crudes to the US and Asia.(General)
August 9, 2004... FORMULA PRICES -- Saudi Arabia raised its price terms for September crudes to Europe while lowering the price terms for heavy crudes to the US and Asia. The sharpest increase was for Arab Extra Light to Europe, which rose by $1.40/bbl. The...

Industry restructuring--Italian energy group Edison has sold its natural gas transportation network to Italian private equity group Clessidra.(General)(Brief Article)
August 9, 2004... INDUSTRY RESTRUCTURING -- Italian energy group Edison has sold its natural gas transportation network to Italian private equity group Clessidra. The asset is valued at 195 million ($235 million), including debt. Australia Pipeline Trust signed...

Bolivia--a treaty with Peru has cleared the way to develop a pipeline route for exports of natural gas, even though the cost is expected to be much higher than a politically problematic alternative via Chile.(Countries)(Brief Article)
August 9, 2004... BOLIVIA -- A treaty with Peru has cleared the way to develop a pipeline route for exports of natural gas, even though the cost is expected to be much higher than a politically problematic alternative via Chile (PIW Jul.26,p3). President Carlos...

China--crude imports are up a massive 40% in the first half of this year to 2.45 million b/d, running nearly 700,000 b/d ahead of last year as refiners seek to supply strong domestic transport and industrial demand.(Countries)(Brief Article)
August 9, 2004... CHINA -- Crude imports are up a massive 40% in the first half of this year to 2.45 million b/d, running nearly 700,000 b/d ahead of last year as refiners seek to supply strong domestic transport and industrial demand. The negative effect of...

Equatorial Guinea--Amerada Hess has won official approval for a $1.1 billion development plan for the four reservoirs of its offshore northern Block G concession.(Countries)(Amerada Hess Corp.)(Brief Article)
August 9, 2004... EQUATORIAL GUINEA--Amerada Hess has won official approval for a $1.1 billion development plan for the four reservoirs of its offshore northern Block G concession (PIW Jun.28,p7). Production of 60,000 b/d is expected to begin in 2007, and will...

India--local independent Reliance Industries has struck more gas in deep water off the east coast in prolific D-6 Block, according to minority partner Niko of Canada.(Countries)(Brief Article)
August 9, 2004... INDIA -- Local independent Reliance Industries has struck more gas in deep water off the east coast in prolific D-6 Block, according to minority partner Niko of Canada. The M-1 exploration discovery well was drilled 19 km south-southeast of the...

Japan--in sharp contrast to the runaway growth in neighboring China, Tokyo's crude imports slumped 9% in the first half of this year to an average of 4.11 million b/d, settling back to more normal levels after last year's spike.(Countries)(Brief Article)(Illustration)
August 9, 2004... JAPAN -- In sharp contrast to the runaway growth in neighboring China, Tokyo's crude imports slumped 9% in the first half of this year to an average of 4.11 million b/d, settling back to more normal levels after last year's spike. The UAE...

Mexico--potential bidders for the second round of multiple service contracts are keeping a close eye on the progress of first-round contractors, who are facing unexpected financial claims from landowners.(Countries)(Brief Article)
August 9, 2004... MEXICO -- Potential bidders for the second round of multiple service contracts are keeping a close eye on the progress of first-round contractors, who are facing unexpected financial claims from landowners. Two rigs are already operating on...

Nigeria--Nigeria LNG (NLNG) is courting controversy by awarding the construction contract for its sixth train, thought to be worth about $1.6 billion, to a consortium that is under investigation in three different jurisdictions over allegations of corruption on deals to build the previous five trains.(Countries)(Brief Article)
August 9, 2004... NIGERIA -- Nigeria LNG (NLNG) is courting controversy by awarding the construction contract for its sixth train, thought to be worth about $1.6 billion, to a consortium that is under investigation in three different jurisdictions over...

Russia--ConocoPhillips has done nothing to discourage strong suggestions that it is targeting the 7.6% stake in Lukoil that the government plans to sell in September.(Countries)(Brief Article)
August 9, 2004... RUSSIA -- ConocoPhillips has done nothing to discourage strong suggestions that it is targeting the 7.6% stake in Lukoil that the government plans to sell in September. Taxed on the issue last week, James Mulva, president and chief executive of...

Russia--first it was Royal Dutch/Shell on Sakhalin-2 facing runaway costs--now Exxon Mobil has admitted that early costs at its Sakhalin-1 project on the Pacific shelf are running over budget.(Countries)(Brief Article)
August 9, 2004... RUSSIA -- First it was Royal Dutch/Shell on Sakhalin-2 facing runaway costs--now Exxon Mobil has admitted that early costs at its Sakhalin-1 project on the Pacific shelf are running over budget. Exxon has blamed "currency exchange rates, higher...

Russia--at the same time as its crackdown on Yukos has helped drive world oil prices to record highs, the government is set to benefit from tax hikes that came into effect on Aug. 1.(Countries)(Brief Article)
August 9, 2004... RUSSIA -- At the same time as its crackdown on Yukos has helped drive world oil prices to record highs, the government is set to benefit from tax hikes that came into effect on Aug. 1 (p1). Crude oil export duty skyrocketed to $9.54/bbl, up...

Money train keeps rolling for big oil in Q2.(global oil prices continue to increase)
August 9, 2004... The world's biggest publicly traded oil companies kept the profits flowing in the second quarter, as global oil prices continued to march higher during the period and US refining margins soared as the summer driving season got under way. In the...

Fear on demand.(Marketview)
August 9, 2004... NEW YORK--Underscoring fears that have been haunting the oil market over Opec's inability to restrain prices, no other than Opec President Purnomo Yusgiantoro pushed oil prices to record-highs last week when he said that Opec had no spare...

Shanghai launches fuel oil futures contract.(Brief Article)
August 9, 2004... The Shanghai Futures Exchange will begin offering fuel oil futures contracts on Aug. 25 in the hopes of providing a hedging tool for China's most crucial oil product (PIW Jul.26,p4). China uses fuel oil mainly as a feedstock for its...

PIW market indicators.(Illustration)
August 9, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $39.19 $37.40 $35.88 UK Brent (Dated) 42.36 40.76 37.88...

Running near empty on $45 crude oil.
August 16, 2004... It's like a car running on empty: Everyone knows that when the fuel gauge shows empty, there's still a gallon or so left in the tank, good for maybe 20 or 30 miles. But equally, everyone knows that the last gallon is not really there to be...

Toxic brew keeps prices on the boil.(petroleum industry)
August 16, 2004... In the midst of the ongoing crude oil price rally, there is little risk that prices will drop substantially. While the roots of the rally can be traced back to the oil workers' strike in Venezuela in December 2002, a cocktail of factors is...

UK Indies ride high in India, Africa.(petroleum industry)
August 16, 2004... The good news keeps on rolling for UK exploration and production success stories Tullow Oil and Cairn Energy as they reinvent themselves far from home. Cairn's share price continues to rocket on the back of repeated drilling success in India,...

Asian demand trend is double edged.(energy policy)
August 16, 2004... Giant leaps in Chinese oil demand and equally striking slumps in Japanese consumption paint very different pictures of overall Asian demand growth so far this year. The headline demand numbers in both countries are being skewed by comparisons...

Majors step lightly around Iraqi opening.
August 16, 2004... The chaos spreading across Iraq is keeping all the major international oil companies away from a country with huge untapped potential and mouthwatering reserves. But the majors are exploring other ways of securing an upstream niche, however...

Liquids exports pay Peru's gas bills.
August 16, 2004... "Camisea, Uniting Peru" read the billboards in Lima, and to a certain extent it's true. Peru's biggest infrastructure project to date has spanned the Andes Mountains, five governments, at least three regions, and the competing interests of oil...

IEA--Interest was piqued by upward revisions in the International Energy Agency's annual update of historical non-OECD supply and demand information last week, which ratcheted up forecasts for this year and next.(General)(Brief Article)
August 16, 2004... IEA--Interest was piqued by upward revisions in the International Energy Agency's annual update of historical non-OECD supply and demand information last week, which ratcheted up forecasts for this year and next. Non-OECD demand data for 2002...

Industry Restructuring.(General)(Brief Article)
August 16, 2004... INDUSTRY RESTRUCTURING--US independent Newfield Exploration is paying $575 million for Inland Resources, a private producer with oil assets in the Rocky Mountain region. Oil services firm National-Oilwell is buying rival Varco International for...

LNG--Malaysian state Petronas has signed a 15-year LNG contract to supply Centrica in the UK with some 3 Bcm/yr of gas starting 2007-08.(General)(Brief Article)
August 16, 2004... LNG--Malaysian state Petronas has signed a 15-year LNG contract to supply Centrica in the UK with some 3 Bcm/yr of gas starting 2007-08, delivered to a Milford Haven, Wales, terminal partly owned by Petronas. Centrica, which covers 40% of UK...

People--Widya Purnama, the former head of state telecommunications firm Indosat, replaced Ariffi Nawawi as the head of Indonesia's state Pertamina.(General)(Brief Article)
August 16, 2004... PEOPLE--Widya Purnama, the former head of state telecommunications firm Indosat, replaced Ariffi Nawawi as the head of Indonesia's state Pertamina. Hani Hussain, current head of Kuwait National Petroleum Co., is set to succeed Nader Sultan as...

Refining--Robust gasoline stocks are putting further downward pressure on US refining margins, with crack spreads falling to below $6/bbl, less than half their peak rate in May.(General)(Brief Article)
August 16, 2004... REFINING--Robust gasoline stocks are putting further downward pressure on US refining margins, with crack spreads falling to below $6/bbl, less than half their peak rate in May (PIW Aug.2,p7). In the week to Aug. 7 average US refining margins...

Canada -- Husky Energy has drilled four wells--one producing and three for water injection--as part of its White Rose project offshore Newfoundland, which it is preparing to bring into production by late 2005 or early 2006, with output reaching an eventual peak of 100,000 b/d.(Countries)(Floating Production Storage and Off-loading )(Brief Article)
August 16, 2004... CANADA -- Husky Energy has drilled four wells--one producing and three for water injection--as part of its White Rose project offshore Newfoundland, which it is preparing to bring into production by late 2005 or early 2006, with output reaching...

China -- Kuwait Petroleum Corp. (KPC) is targeting a stake in state Sinopec's planned 200,000 b/d Qingdao refinery in Shandong Province as a way of breaking into the wholesale distribution of oil products, which is to be liberalized in 2007.(Countries)(Brief Article)
August 16, 2004... CHINA -- Kuwait Petroleum Corp. (KPC) is targeting a stake in state Sinopec's planned 200,000 b/d Qingdao refinery in Shandong Province as a way of breaking into the wholesale distribution of oil products, which is to be liberalized in 2007....

Egypt -- BP signed up to two more exploration blocks--North Shadwan and West Morgan--in the Gulf of Suez following another gas find on the West Mediterranean Deep Water (WDMW) block it operates with Germany's RWE Dea--for a total of seven new concessions and three natural gas discoveries in Egypt so far this year.(Countries)(Brief Article)
August 16, 2004... EGYPT -- BP signed up to two more exploration blocks--North Shadwan and West Morgan--in the Gulf of Suez following another gas find on the West Mediterranean Deep Water (WDMW) block it operates with Germany's RWE Dea--for a total of seven new...

India -- Cairn Energy has made a fourth oil discovery in the Rajasthan Basin, continuing a run of positive exploration results.(Countries)(Brief Article)
August 16, 2004... INDIA -- Cairn Energy has made a fourth oil discovery in the Rajasthan Basin, continuing a run of positive exploration results (p2). The UK independent said its latest exploration well, N-V-l, encountered an oil column of 62 meters with an...

Indonesia -- ConocoPhillips struck a multibillion-dollar gas sales agreement with PT Perusahaan Gas Negara (PGN), the state-gas transportation company, to supply gas for the industrial market in West Java and Jakarta.(Countries)(Brief Article)
August 16, 2004... INDONESIA -- ConocoPhillips struck a multibillion-dollar gas sales agreement with PT Perusahaan Gas Negara (PGN), the state-gas transportation company, to supply gas for the industrial market in West Java and Jakarta. The deal is for the supply...

Russia -- Ramped up Black Sea loadings and increased pumping down the Druzhba pipeline to Central Europe sent crude exports up a further 31,000 b/d in July, for a whopping 670,000 b/d increase on July 2003 levels.(Countries)(Brief Article)
August 16, 2004... RUSSIA -- Ramped up Black Sea loadings and increased pumping down the Druzhba pipeline to Central Europe sent crude exports up a further 31,000 b/d in July, for a whopping 670,000 b/d increase on July 2003 levels. Higher loadings out of the...

Russia -- The Justice Ministry has hired investment bank Dresdner Kleinwort Wasserstein (DKRW) to value Yukos' main production unit Yuganskneftegas, easing fears it would be sold at a knockdown price.(Countries)(Brief Article)
August 16, 2004... RUSSIA -- The Justice Ministry has hired investment bank Dresdner Kleinwort Wasserstein (DKRW) to value Yukos' main production unit Yuganskneftegas, easing fears it would be sold at a knockdown price. Bailiffs seized the shares of the...

United Kingdom -- Canadian junior Stratic Energy has farmed out a 30% interest in two North Sea exploration blocks to US independent Noble Energy.(Countries)(Stratic Energy)(Brief Article)
August 16, 2004... UNITED KINGDOM -- Canadian junior Stratic Energy has farmed out a 30% interest in two North Sea exploration blocks to US independent Noble Energy. Noble will earn the interest in license P1093, covering blocks 16/11 and 16/16, by reprocessing...

United States -- Energy services and construction giant Halliburton is denying claims in a Pentagon report that it failed to account for more than $1.8 billion in work performed for the military in Iraq and Kuwait.(Countries)(Brief Article)
August 16, 2004... UNITED STATES -- Energy services and construction giant Halliburton is denying claims in a Pentagon report that it failed to account for more than $1.8 billion in work performed for the military in Iraq and Kuwait. The figure represents about...

United States -- ConocoPhillips and BP plan to increase output from Alaska's West Sak heavy crude field to 45,000 b/d by 2007 from around 10,000 b/d at present.(Countries)(Brief Article)
August 16, 2004... UNITED STATES -- ConocoPhillips and BP plan to increase output from Alaska's West Sak heavy crude field to 45,000 b/d by 2007 from around 10,000 b/d at present (PIW Mar.15,p2). The development of West Sak, a heavy oil accumulation that overlies...

Venezuela -- ChevronTexaco is proposing to build a new $6 billion heavy crude upgrading project for Orinoco Belt extra heavy crude in what could be biggest deal to be struck under the tougher terms of the 2001 Hydrocarbons Law, which mandates a 51% state share and 20%-30% royalty payments on all upstream crude production.(Countries)(Brief Article)
August 16, 2004... VENEZUELA -- ChevronTexaco is proposing to build a new $6 billion heavy crude upgrading project for Orinoco Belt extra heavy crude in what could be biggest deal to be struck under the tougher terms of the 2001 Hydrocarbons Law, which mandates a...

Opec adds supply, prices stay high.(What's New Around the World)(Organization of Petroleum Exporting Countries)(Illustration)
August 16, 2004... Opec keeps adding to global oil supplies and prices continue to rise anyway, while non-Opec output remains relatively steady. Global oil output topped 83.3 million b/d in July according to soundings taken by PIW, a rise of 405,000 b/d from the...

Physical differences.(Marketview)
August 16, 2004... LONDON -- The markets last week were caught in a firestorm of contradictory and often incomprehensible statistics and claims concerning world oil demand, supply and production capacity and their likely combined effect on "the price of oil." But...

Oil world is being misled by poor data.
August 23, 2004... Is the oil industry getting the data it needs or deserves? This month's sweeping revisions by the International Energy Agency (IEA)--hiking historical, current and future demand estimates by roughly 750,000 barrels per day--suggest not. True,...

Chavez victory looks positive to investors.
August 23, 2004... With President Hugo Chavez confirmed in office by the Aug. 15 referendum, oil investors eyeing Venezuela are weighing their options. One certainty is that the controversial Hydrocarbons Law of 2001, which gave state-owned Petroleos de Venezuela...

Time out in East Europe's asset battle.
August 23, 2004... As the latest round of privatizations in Central and Eastern Europe (CEE) comes to a close, regional players are fighting to take advantage of a unique period of reform and opportunity in the lucrative downstream. Recent months have seen...

Pundits again ramp up price targets.
August 23, 2004... Oil market realities have obliged pundits to hike their oil price forecasts again and again. As prices soar almost daily to new all-time nominal highs, forecasters are busy revising upwards their predictions, catching up with a price climb...

US indies mimic majors, spend carefully.(petroleum industry)
August 23, 2004... US independents are behaving a lot like the majors and super majors these days, in particular by keeping a tight rein on their exploration and development spending (PIW Aug. 9, p1). Strong oil and gas prices have led some companies to announce...

Recent knocks don't worry US refiners.
August 23, 2004... Top independent US refiner Valero Energy earned a record $622 million in 2003. An impressive result, for sure, but pale in comparison to its performance this year when it earned $633 million in the second quarter alone. With earnings over a...

Saudi Arabia tests limits of influence.
August 23, 2004... As US oil prices creep towards $50 per barrel, there seems little that Opec lynchpin Saudi Arabia can do to ease runaway markets. The kingdom's trump card of spare sustainable capacity, which in recent years has fluctuated in the 1.5 million-2...

Industry restructuring--Russia's embattled Yukos raised $357 million through the sale of its 56% interest in Siberian gas producer Rospan International to the venture's partner, TNK-BP.(General)(Satya Capital)(Brief Article)
August 23, 2004... INDUSTRY RESTRUCTURING--Russia's embattled Yukos raised $357 million through the sale of its 56% interest in Siberian gas producer Rospan International to the venture's partner, TNK-BP. China's dominant jet fuel importer, China Aviation Oil...

PKN Orlen.(People)(Janusz Wisniewski appointed)(Brief Article)
August 23, 2004... The recently appointed chief executive of Polish refiner PKN Orlen, Jacek Walczykowski, was dismissed by the supervisory board. Janusz Wisniewski from the management beard has taken over as caretaker (p2).

Argentina--a key move was made last week to fix the country's growing natural gas shortage with the launch of the bidding process for a $1 billion pipeline to bring gas from Bolivia into the north-eastern region.(Countries)(Brief Article)
August 23, 2004... ARGENTINA -- A key move was made last week to fix the country's growing natural gas shortage with the launch of the bidding process for a $1 billion pipeline to bring gas from Bolivia into the north-eastern region (PIW Apr. 12, p2). The roughly...

Brazil--foreign players made a strong showing in the annual licensing round held on Aug. 17-18, with US' Devon Energy and Kerr McGee, Norway's Statoil and Royal Dutch/Shell among the noteworthy winners, although state-controlled Petrobras assumed its customary dominant position.(Countries)(Brief Article)
August 23, 2004... BRAZIL -- Foreign players made a strong showing in the annual licensing round held on Aug. 17-18, with US' Devon Energy and Kerr McGee, Norway's Statoil and Royal Dutch/Shell among the noteworthy winners, although state-controlled Petrobras...

Brazil--production by state-controlled Petrobras rose to 1.688 million b/d of crude and 2.228 Bcf/d of natural gas in July from its domestic and international operations, a 1.7% gain from 1.661 million b/d of crude and 2.184 Bcf/d of gas in June.(Countries)(Petroleo Brasileiro S.A.)(Brief Article)
August 23, 2004... BRAZIL -- Production by state-controlled Petrobras rose to 1.688 million b/d of crude and 2.228 Bcf/d of natural gas in July from its domestic and international operations, a 1.7% gain from 1.661 million b/d of crude and 2.184 Bcf/d of gas in...