Petroleum Intelligence Weekly articles from August 2005

Petroleum Intelligence Weekly archives from August 2005

Upstream M&A deals reach for new record.(mergers and acquisitions)
August 1, 2005... It's good to be a seller of oil and gas assets in North America. Although very expensive, companies continue to snap up properties at prices not seen in years. Cash-rich buyers aren't thinking twice about throwing money at properties in the US...

Win or lose, China's asset hunt goes on.(CNOOC Ltd. and Unocal Corp.'s merger)
August 1, 2005... The bid by CNOOC Ltd. for Unocal is being portrayed in the US and elsewhere as a core element of an aggressive Chinese strategy for securing scarce global oil and gas supplies. Just as Japan and South Korea did previously, China is seeking...

Shell US maps out route to recovery.(Shell Oil Co.)
August 1, 2005... Royal Dutch Shell's US unit has had a low profile in recent years as reserves accounting scandals and soaring project costs turned attention to other parts of the company. Asset sales and joint ventures further reduced Shell Oil's visibility...

US energy security still a pipe dream.
August 1, 2005... President George W. Bush is readying to sign long-awaited energy legislation that seeks to tap more domestic energy resources. But the White House and US lawmakers concede that the latest energy policy makeover will not bring about a dramatic...

Nymex natural gas, crude March in step.(New York Mercantile Exchange)
August 1, 2005... Natural gas prices have historically been determined by a cocktail of factors, including electricity demand, coal supply, heating and cooling degree days, storage levels and, more recently, the availability of liquefied natural gas (LNG). But...

Angola stays on track to double output.(petroleum production)
August 1, 2005... The recent start-up of Exxon Mobil's deepwater Kizomba B development has put Angola on track to be producing more than 1.5 million barrels per day next year, which is set to rise to 2.6 million b/d by the end of the decade. Prospects for the...

Iran builds energy bridges ever so slowly.(natural gas transmission plan)
August 1, 2005... Iran is promoting itself as the oil and gas transit hub of the Mideast Gulf and beyond by proposing a series of cross-border pipelines that are designed to build bridges with its mostly Arab neighbors. As well as the recent deal struck with...

Corporate--a Moscow court decision has cleared the way for a takeover of Sibneft, fueling speculation that a sale by controlling shareholders, led by Roman Abramovich, is imminent.(GENERAL)(Brief Article)
August 1, 2005... CORPORATE -- A Moscow court decision has cleared the way for a takeover of Sibneft, fueling speculation that a sale by controlling shareholders, led by Roman Abramovich, is imminent. The court unfroze a 14.4% stake in Sibneft held by Yukos,...

Corporate--in a sign of confidence in at least one Russian company, an offering in the country's largest independent gas producer was some 13 times oversubscribed, raising $878 million when 17.3% of Novatek went on sale in London and Moscow on Jul. 21.(GENERAL)(Brief Article)
August 1, 2005... CORPORATE -- In a sign of confidence in at least one Russian company, an offering in the country's largest independent gas producer was some 13 times oversubscribed, raising $878 million when 17.3% of Novatek went on sale in London and Moscow...

People--Jose Sergio Gabrielli de Azevedo has replaced Jose Eduardo Dutra as chief executive of Petrobras.(GENERAL)(Brief Article)
August 1, 2005... PEOPLE -- Jose Sergio Gabrielli de Azevedo has replaced Jose Eduardo Dutra as chief executive of Petrobras. He was previously chief financial officer at the state-controlled oil firm.

Australia--local companies have taken four of the eight new offshore oil and gas exploration permits recently awarded in the Carnarvon Basin off Western Australia and the Bass and Otway Basins off Tasmania.(COUNTRIES)(Brief Article)
August 1, 2005... AUSTRALIA -- Local companies have taken four of the eight new offshore oil and gas exploration permits recently awarded in the Carnarvon Basin off Western Australia and the Bass and Otway Basins off Tasmania. Although Royal Dutch Shell and...

China--the revaluation of the yuan and recent hikes in domestic fuel prices should improve weak refining margins.(COUNTRIES)(Brief Article)
August 1, 2005... CHINA -- The revaluation of the yuan and recent hikes in domestic fuel prices should improve weak refining margins. Analysts estimate Sinopec's complex refining margins improved to $3.30/bbl in July, up from an average of $2.50/bbl in June....

India--state-owned Oil and Natural Gas Corp. (ONGC) and independent Reliance won most of the 18 exploration blocks in the fifth New Exploration and Licensing Policy (Nelp-5) round, while UK Cairn Energy secured three as operator.(Brief Article)
August 1, 2005... INDIA -- State-owned Oil and Natural Gas Corp. (ONGC) and independent Reliance won most of the 18 exploration blocks in the fifth New Exploration and Licensing Policy (Nelp-5) round, while UK Cairn Energy secured three as operator. Italy's Eni...

India--a fire on a major oil platform at the Mumbai High field off the west coast killed at least 10 people and knocked out production of 100,000 b/d.(accidents at Oil and Natural Gas Corporation Ltd.)(Brief Article)
August 1, 2005... INDIA -- A fire on a major oil platform at the Mumbai High field off the west coast killed at least 10 people and knocked out production of 100,000 b/d. Details of the dead and missing were sketchy at PIW press time but Oil Minister Mani...

India--accelerating the drive to win energy assets overseas, state Oil and Natural Gas Corp. (ONGC) is forging a global alliance with the UK-based Mittal steel group.(ONGC Mittal Energy and ONGC Mittal Energy Services formed)(Brief Article)
August 1, 2005... INDIA -- Accelerating the drive to win energy assets overseas, state Oil and Natural Gas Corp. (ONGC) is forging a global alliance with the UK-based Mittal steel group. The alliance will seek energy opportunities in countries such as Angola,...

Iran--Norway's Norsk Hydro and Russia's Lukoil Overseas have discovered oil in the Azar structure of the onshore Anaran Block.(COUNTRIES)
August 1, 2005... IRAN -- Norway's Norsk Hydro and Russia's Lukoil Overseas have discovered oil in the Azar structure of the onshore Anaran Block. If further well tests show the discovery to be commercial, the operator, Hydro, will start negotiations with state...

Iran--the Eni-led Darkovein field development was formally inaugurated on Jul. 23 and is on track to rise to its peak production of 160,000 b/d on completion of a second phase by the fourth quarter of 2006.(Brief Article)
August 1, 2005... IRAN -- The Eni-led Darkovein field development was formally inaugurated on Jul. 23 and is on track to rise to its peak production of 160,000 b/d on completion of a second phase by the fourth quarter of 2006. The first phase, which is producing...

Iraq--the recent slippage in crude exports appears to have been reversed in July, with both shipping and US government data indicating loadings of up to 1.7 million b/d during the month.(petroleum industry)(Brief Article)
August 1, 2005... IRAQ -- The recent slippage in crude exports appears to have been reversed in July, with both shipping and US government data indicating loadings of up to 1.7 million b/d during the month. More than 30 vessels may have sailed in July, including...

Libya--Occidental Petroleum looks set to finally return to its producing oil assets after announcing that it had reached an agreement with National Oil Corp. to resume operations.(Brief Article)
August 1, 2005... LIBYA -- Occidental Petroleum looks set to finally return to its producing oil assets after announcing that it had reached an agreement with National Oil Corp. to resume operations. "We expect formal approval from the Libyan government in the...

Lithuania--Kazakhstan is making a play to supply natural gas and trade light oil products in the country and could direct some of its crude exports to the underused Butinge oil terminal.(KazMunaiGas to acquire Mazeikiu Nafta)(Brief Article)
August 1, 2005... LITHUANIA--Kazakhstan is making a play to supply natural gas and trade light oil products in the country and could direct some of its crude exports to the underused Butinge oil terminal. Having recently joined the contest to acquire the 53.7%...

Nigeria--Royal Dutch Shell has made public two new deepwater discoveries at the same time as expectations have grown of further delays to the start-up of its massive 200,000 b/d Bonga project.(Royal Dutch-Shell Group of Cos.)(Brief Article)
August 1, 2005... NIGERIA--Royal Dutch Shell has made public two new deepwater discoveries at the same time as expectations have grown of further delays to the start-up of its massive 200,000 b/d Bonga project. The most recent find was in Block OPL 322, where...

South Africa--the main opposition party is demanding that the ruling African National Congress (ANC) explains how 11 million rand ($1.6 million) of funds from state-owned PetroSA, a gas-to-liquids (GTL) operator, ended up in the coffers of the ANC ahead of an election campaign.(beliefs of Democratic Alliance)(Brief Article)
August 1, 2005... SOUTH AFRICA--The main opposition party is demanding that the ruling African National Congress (ANC) explains how 11 million rand ($1.6 million) of funds from state-owned PetroSA, a gas-to-liquids (GTL) operator, ended up in the coffers of the...

Sudan--a new report by the Brussels-based International Crisis Group (ICG) warns that recent oil deals by the Sudan People's Liberation Movement (SPLM) that allocate previously awarded acreage to third parties are of doubtful legality and could also ruin the January peace agreement.(COUNTRIES)
August 1, 2005... SUDAN -- A new report by the Brussels-based International Crisis Group (ICG) warns that recent oil deals by the Sudan People's Liberation Movement (SPLM) that allocate previously awarded acreage to third parties are of doubtful legality and...

Thailand--though it expanded at a slower rate than the 7.7% clip seen in the same period last year, oil and gas demand grew by an average of 5.8% in the first five months of 2005 to 1.189 million boe/d.(Brief Article)
August 1, 2005... THAILAND -- Though it expanded at a slower rate than the 7.7% clip seen in the same period last year, oil and gas demand grew by an average of 5.8% in the first five months of 2005 to 1.189 million boe/d. Refined oil products consumption was up...

Ukraine--not long out of a feud with Kiev over gasoline prices, Russia's Lukoil and Anglo-Russian TNK-BP are ramping up their investments in their local refineries to tap neighboring markets for EU-standard fuels.(European Union)(Brief Article)
August 1, 2005... UKRAINE -- Not long out of a feud with Kiev over gasoline prices, Russia's Lukoil and Anglo-Russian TNK-BP are ramping up their investments in their local refineries to tap neighboring markets for EU-standard fuels. Lukoil announced last week...

Venezuela--US oil and gas producer Harvest Natural Resources has become the latest foreign operator to receive a surprise income tax bill--for $85 million for the 2001-04 period.(Brief Article)
August 1, 2005... VENEZUELA -- US oil and gas producer Harvest Natural Resources has become the latest foreign operator to receive a surprise income tax bill--for $85 million for the 2001-04 period. Failure to pay could result in fines of up to 125% of the...

Correction.(Correction Notice)
August 1, 2005... Norway's Statoil recently acquired EnCana's Gulf of Mexico assets, not Norsk Hydro as was stated last week (PIW Jul.25,p8).

Winter watch.(Marketview)(petroleum industry)
August 1, 2005... NEW YORK -- In the midst of summer, with the US driving season in full swing, gasoline has become more expensive than diesel in the US spot market. Not so much because the US is having any difficulty meeting record gasoline demand--although...

Europe's carbon dioxide trades feel the heat.(natural gas industry prices)(Brief Article)
August 1, 2005... Natural gas prices have emerged as a key driver in the pricing of C[O.sub.2] allowances traded in Amsterdam, which are known as EUAs. This is attributed to generators favoring coal in view of high gas prices--an average coal plant emits roughly...

PIW market indicators.(Petroleum Intelligence Weekly)(petroleum industry prices)(Illustration)
August 1, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $52.54 $52.02 $53.90 UK Brent (Dated) 58.23 56.53 ...

Saudi Arabia will defend price gains.
August 8, 2005... Saudi Arabia's new king is not about to spring any surprises on the oil market. Having already led the country for nearly 10 years during his half-brother's incapacity, King Abdullah presided over the recovery from the price crash of 1998 and...

Oil sands prompt heavy M&A action.(mergers and acquisitions)
August 8, 2005... The already permeable border between Canadian and US oil and gas infrastructure opened further last week when US integrated pipeline giant Kinder Morgan (KMI) and Canadian oil pipeline and gas distributor Terasen agreed to combine in a US$5.6...

PIW scorecard: relative gains in a bull market.
August 8, 2005... With all producers with the exception Saudi Arabia pumping flat out to profit from $60 per barrel oil, spot and term contract prices have been jumping all over the place. But as surging prices reflect the bullish mood of the moment, there are...

Spending jumps, buybacks persist for big oil.
August 8, 2005... Once investors got past the huge upstream profits and strong refining earnings posted by integrated oil companies in the second quarter, they likely noticed that exploration spending--finally--is moving higher. Oil companies have been hesitant...

China digs deeper into Indonesia.(petroleum industry deals)
August 8, 2005... Just as CNOOC Ltd. withdraws its pioneering bid to buy a US oil giant, compatriot company Sinopec is demonstrating China's tried and tested method for securing foreign oil deals (p6). As part of a large government-to-government package of...

Ecuador stalls on the road to recovery.
August 8, 2005... How do you boost inward investment into a developing oil sector, which producers are deserting, if at the same time you reduce rewards for investors because you need more cash to invest in social programs? That's the challenge facing Ecuador's...

Downstream upturn in Nigeria falling short.
August 8, 2005... Nigeria's upstream is a major cash generator, but the downstream is a financial drain, marked by underperforming refineries, high imports and corrupt marketing practices. Product imports cost $2 billion last year while retail subsidies are...

Corporate--China's CNOOC Ltd. has formally withdrawn its bid for Unocal under the withering heat of US political objections.(Brief Article)
August 8, 2005... CORPORATE--China's CNOOC Ltd. has formally withdrawn its bid for Unocal under the withering heat of US political objections. "CNOOC has given active consideration to further improving the terms of its offer, and would have done so but for the...

Formula prices--Saudi Arabia is giving its US and Asian term customers another break in September by easing price adjustments on its crude sales, while narrowing discounts for shipments to Europe.
August 8, 2005... FORMULA PRICES--Saudi Arabia is giving its US and Asian term customers another break in September by easing price adjustments on its crude sales, while narrowing discounts for shipments to Europe. The price adjustments reflect a depressed sour...

Industry restructuring--US integrated pipeline giant Kinder Morgan (KMI) has agreed a US$5.6 billion merger with Canadian oil pipeline and gas distributor Terasen.(GENERAL)
August 8, 2005... US integrated pipeline giant Kinder Morgan (KMI) has agreed a US$5.6 billion merger with Canadian oil pipeline and gas distributor Terasen (p1). Houston-based Targa Resources has agreed to acquire Dynegy's midstream natural gas business for...

Rex W. Tillerson is to succeed Lee R. Raymond as chairman of the board and chief executive officer of Exxon Mobil when Raymond retires at the end of the year.(PEOPLE)
August 8, 2005... Rex W. Tillerson is to succeed Lee R. Raymond as chairman of the board and chief executive officer of Exxon Mobil when Raymond retires at the end of the year. Jorma OIlila, chief executive of Finland's Nokia, will succeed Aad Jacobs as...

China--Crude imports held steady in June at an average of 2.75 million b/d, virtually unchanged from a year earlier, while first-half growth was more robust.(COUNTRIES)(Brief Article)
August 8, 2005... CHINA -- Crude imports held steady in June at an average of 2.75 million b/d, virtually unchanged from a year earlier, while first-half growth was more robust. Saudi Arabia supplied an average of 503,000 b/d, up by nearly 52% on last June,...

Japan--Crude imports jumped by 8% in June to an average of 3.9 million b/d, up by 294,000 b/d on a year earlier, but first half figures show much weaker growth in Asia's biggest crude importer.(COUNTRIES)(Brief Article)
August 8, 2005... JAPAN -- Crude imports jumped by 8% in June to an average of 3.9 million b/d, up by 294,000 b/d on a year earlier, but first half figures show much weaker growth in Asia's biggest crude importer. Imports from Saudi Arabia soared by just under...

Nigeria--French Total is awaiting final government approval to start development of the deepwater Usan field following the recent completion of two appraisal wells that confirmed an eastern extension of the field.(Brief Article)
August 8, 2005... NIGERIA -- French Total is awaiting final government approval to start development of the deepwater Usan field following the recent completion of two appraisal wells that confirmed an eastern extension of the field. The development plan...

Updated price scorecard for key world grades.
August 8, 2005... PIW's Price Scorecard is designed to sort through the complexities of crude oil pricing under term contracts, allowing a deeper understanding of market trends than is possible from tracking only spot grades. The scorecard aims to put all...

How term-contract prices are calculated.
August 8, 2005... Term-contract formulas generally have four basic components: the point of sale, a market-related benchmark, an adjustment factor for differences related to crude oil quality and point of sale, and a timing mechanism stipulating when the value...

Russia--Activity on the Sakhalin-5 project off the Pacific shelf is picking up with partners BP and state Rosneft starting to drill a second exploration well in the Kaigansky-Vasukansky license area.(British Petroleum Company PLC)
August 8, 2005... RUSSIA -- Activity on the Sakhalin-5 project off the Pacific shelf is picking up with partners BP and state Rosneft starting to drill a second exploration well in the Kaigansky-Vasukansky license area. The operators also plan to perform seismic...

Yemen--Oil production averaged 414,000 b/d at the end of June and is expected to rise to 432,000 b/d by the end of this year, according to the state Petroleum Exploration and Production Authority (Pepa).(COUNTRIES)(Brief Article)
August 8, 2005... YEMEN -- Oil production averaged 414,000 b/d at the end of June and is expected to rise to 432,000 b/d by the end of this year, according to the state Petroleum Exploration and Production Authority (Pepa). Output is expected to rise further to...

Q2 Earnings stay high despite lower output at top oil companies.(Exxon Mobil Corp.)(Illustration)
August 8, 2005... With benchmark West Texas Intermediate oil prices again averaging over $50 per barrel, the second quarter was another blockbuster period for the world's top six publicly traded oil companies. The group turned in a combined second-quarter...

Talking $70.(petroleum crude futures, )
August 8, 2005... WASHINGTON -- Crude futures on the New York Mercantile Exchange (Nymex) hit a record high of $62.50 per barrel last week and European benchmark Brent passed the $61/bbl level for the first time before both experienced an overdue sell-off. The...

PIW market indicators.(petroleum intelligence weekly)(petroleum prices)(Illustration)
August 8, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Week Ago Ago Spot Crude Opec Basket $53.04 $52.54 $52.02 UK Brent...

Unocal makes Chevron a more potent player.
August 15, 2005... With the purchase of Unocal now a done deal--just four months after it was announced--Chevron has hit the ground running. Confident it was going to beat out rival bidder China's CNOOC Ltd., Chevron executives have been working since June to...

Crisis looms in US switch to ultra-low-sulfur.(United States )
August 15, 2005... It's still a good time to be a refiner. In the US, the independents--led by San Antonio-based Valero--continue to post robust earnings off the back of high utilization, wide differentials, strong margins and ongoing product demand growth. The...

Shell weighs hotter play on solar.(Royal Dutch-Shell Group of Cos.)
August 15, 2005... For all its short-term woes, Royal Dutch Shell is taking the long view on renewables, which it expects will meet anything from one-quarter to one-third of energy demand by 2050. Shell has pumped about $1 billion into wind and solar ventures in...

Asia's growth centers mop up Africa, Mideast.(growing demand of petroleum)
August 15, 2005... Despite recent slowdowns, China and India are still posting world-beating rates of oil demand growth. Unlike the mature economies of neighboring Japan and South Korea--which rely overwhelmingly on the Mideast--China and India are pulling in...

Kremlin cool to company tax complaints.(Russian crude production )
August 15, 2005... The sharp slowdown in Russian crude production growth this year at a time of record high oil prices has gotten the Kremlin thinking. A 2.7% rise in output of crude and condensates in the first six months of 2005 looks very meager after the...

US-led pact spells trouble for Kyoto.(United States on Protocol to the Framework Convention on Climate Change, 1997)
August 15, 2005... The recently inked six-nation Asia-Pacific pact on clean energy development, which focuses on technology to reduce greenhouse gas emissions, offers a substantially different approach to combating climate change from the Kyoto Protocol's...

Majors Grab slice of rockies gas action.(Rocky Mountains are the major producers)
August 15, 2005... With the US in the midst of a gas-drilling boom, few places are as busy as the Rocky Mountains right now and the supermajors are as keen as anybody else to grab a piece of the action. BP, the region's top producer, has plans to ramp up output...

Industry restructuring--French utility group Suez has launched a 11.2 billion [euro] offer ($13.85 billion) for the 49.9% of its subsidiary Electrabel that it does not already own.(GENERAL)
August 15, 2005... INDUSTRY RESTRUCTURING--French utility group Suez has launched a 11.2 billion [euro] offer ($13.85 billion) for the 49.9% of its subsidiary Electrabel that it does not already own. US independent Kerr-McGee has sold its entire upstream asset...

Opec--Responding to rising oil prices, the producer group issued an extraordinary statement on Aug. 9 reiterating its commitment to market stability and offering to pump more oil if necessary.(Organization of the Petroleum Exporting Countries)(Brief Article)
August 15, 2005... OPEC--Responding to rising oil prices, the producer group issued an extraordinary statement on Aug. 9 reiterating its commitment to market stability and offering to pump more oil if necessary. The organization's president, Kuwaiti Oil Minister...

UN--The official UN inquiry led by the former head of the US Federal Reserve Paul Voicker into the workings of the UN's oil-for-food program has called for the prosecution of officials who are alleged to have profited from "illicit activities.".(United Nations prosecute Benon Sevan former program head )(Brief Article)
August 15, 2005... UN--The official UN inquiry led by the former head of the US Federal Reserve Paul Voicker into the workings of the UN's oil-for-food program has called for the prosecution of officials who are alleged to have profited from "illicit activities."...

Angola--BP has announced an eighth discovery on ultra-deepwater Block 31 following the Plutao, Saturno, Marte, Venus, Ceres, Palas and Juno finds.(British Petroleum Company PLC)(Brief Article)
August 15, 2005... ANGOLA -- BP has announced an eighth discovery on ultra-deepwater Block 31 following the Plutao, Saturno, Marte, Venus, Ceres, Palas and Juno finds. The Astraea-1 oil discovery was in a water depth of 1,496 meters and reached a total depth of...

Australia--LNG specialist Woodside Petroleum is planning to use its offshore Pluto field in the Carnarvon Basin as the basis for construction of a new two-train liquefaction facility that would export 5 million to 7 million tons/yr of LNG.(COUNTRIES)
August 15, 2005... AUSTRALIA -- LNG specialist Woodside Petroleum is planning to use its offshore Pluto field in the Carnarvon Basin as the basis for construction of a new two-train liquefaction facility that would export 5 million to 7 million tons/yr of LNG....

Brazil--smaller independent oil and gas producers are the target audience for the next upstream licensing round, which is due in October.(Brief Article)
August 15, 2005... BRAZIL -- Smaller independent oil and gas producers are the target audience for the next upstream licensing round, which is due in October. Many of the blocks in the Oct.1718 bid round, the country's seventh, are onshore and in smaller parcels...

Canada--the high cost of developing oil sands is causing more trouble for Royal Dutch Shell on the expansion of its Athabasca development (PIW Jul.25,p1).(Shell Canada Ltd.)(Brief Article)
August 15, 2005... CANADA -- The high cost of developing oil sands is causing more trouble for Royal Dutch Shell on the expansion of its Athabasca development (PIW Jul.25,p1). The cost is now set to nearly double to about C$7.3 billion (US$6 billion) due to...

Iraq--Norwegian independent DNO is gearing up to drill its first exploration well in the Kurdish-controlled region in the north later this year.(Brief Article)
August 15, 2005... IRAQ -- Norwegian independent DNO is gearing up to drill its first exploration well in the Kurdish-controlled region in the north later this year. DNO secured a controversial upstream deal with the Kurdish regional government last year for an...

Iraq--a trickle of exports from the north via Turkey boosted volumes in July and the State Oil Marketing Organization (Somo) is shooting for higher exports in August, even though no northern sales are scheduled since the pipeline is again out of action after sabotage.(Brief Article)
August 15, 2005... IRAQ -- A trickle of exports from the north via Turkey boosted volumes in July and the State Oil Marketing Organization (Somo) is shooting for higher exports in August, even though no northern sales are scheduled since the pipeline is again out...

Kazakhstan--China National Petroleum Corp. (CNPC) has discovered an oil field in the eastern part of the Caspian depression in the Aktobe region, local reports say.(CNPC-Aktobemunajgaz)(Brief Article)
August 15, 2005... KAZAKHSTAN -- China National Petroleum Corp. (CNPC) has discovered an oil field in the eastern part of the Caspian depression in the Aktobe region, local reports say. The field is currently producing small volumes as further exploration...

Kyrgyzstan--western oil companies are showing a cautious renewal of interest in the Central Asian republic.(Santos in conditional agreement with Caspian Oil and Gas)(Brief Article)
August 15, 2005... KYRGYZSTAN -- Western oil companies are showing a cautious renewal of interest in the Central Asian republic. Australia's Santos is making its debut through a conditional agreement with another Australian outfit, Caspian Oil and Gas, to carry...

Mauritania--Australia's Woodside Petroleum has drilled a successful gas injection well at its Banda field in offshore PSC Area A as part of the Chinguetti development project, which is due to pump first oil by early next year.(Brief Article)
August 15, 2005... MAURITANIA -- Australia's Woodside Petroleum has drilled a successful gas injection well at its Banda field in offshore PSC Area A as part of the Chinguetti development project, which is due to pump first oil by early next year. Gas produced in...

Oman--Muscat is offering exploration and production permits on five new blocks that it has created from acreage relinquished recently by state-controlled Petroleum Development Oman (PDO).(Petroleum Development Oman)(Brief Article)
August 15, 2005... OMAN -- Muscat is offering exploration and production permits on five new blocks that it has created from acreage relinquished recently by state-controlled Petroleum Development Oman (PDO). The Ministry of Oil and Gas is inviting offers for...

Russia--while Anglo-Russian TNK-BP looks to be off the hook over a large tax claim, it has come under fresh scrutiny for its practice of transfer pricing--whereby oil companies buy crude from production subsidiaries at a reduced price to lessen tax payments.(COUNTRIES)
August 15, 2005... RUSSIA -- While Anglo-Russian TNK-BP looks to be off the hook over a large tax claim, it has come under fresh scrutiny for its practice of transfer pricing--whereby oil companies buy crude from production subsidiaries at a reduced price to...

United Kingdom--crude oil output at BP's Schiehallion development will be suspended until the end of the month to allow for repairs after a fire on the field's FPSO.(British Petroleum Company PLC)(Brief Article)
August 15, 2005... UNITED KINGDOM -- Crude oil output at BP's Schiehallion development will be suspended until the end of the month to allow for repairs after a fire on the field's FPSO. BP has a 33% operating interest in the 120,000 b/d Schiehallion development,...

Venezuela--eight oil companies have opted to sign controversial transition accords with state Petroleos de Venezuela (PDV) as part of the process of converting operating service agreements (OSAs) into joint ventures with a state majority under the tougher terms of the 2001 Hydrocarbons Law.(Petroleos de Venezuela S.A.)(Brief Article)
August 15, 2005... VENEZUELA -- Eight oil companies have opted to sign controversial transition accords with state Petroleos de Venezuela (PDV) as part of the process of converting operating service agreements (OSAs) into joint ventures with a state majority...

Outsider tipped to take top oil job in Iran.(Ali Saeedlou as the favourite for to become oil minister)
August 15, 2005... As Iran gears up for a potential showdown at the UN Security Council over its controversial nuclear program, its new conservative president Mahmoud Ahmadinejad is pushing for a close ally with little knowledge of the industry to become the next...

Broken records.(West Texas Intermediate hits the all time high reports, International Energy Agency, Energy Information Administration )
August 15, 2005... WASHINGTON -- World oil markets reacted to a mixed bag of data from both the US Energy Information Administration (EIA) and the Paris-based watchdog the International Energy Agency (IEA) last week. The initial responses were mild sell-offs. But...

Backwardation makes a comeback.(Brief Article)
August 15, 2005... Brent's switch to backwardation is the first since mid-March, apart from an end-of-contract blip in mid-July. Some traders link it to Nymex gasoline futures, which have also flipped September into a backwardation versus October of about $1.50....

PIW market indications.(petroleum industry )(Illustration)
August 15, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $54.99 $52.51 $52.02 UK Brent (Dated) ...

Saudi Arabia puts expansion on fast forward.
August 22, 2005... Saudi Arabia has made much of its plans to expand oil production capacity, touting a proposed spend of around $50 billion over the next few years. Equally remarkable is the speed with which it has set the wheels in motion, leaving little doubt...

Nuclear rift rocks Iranian project hopes.
August 22, 2005... As concern grows in Europe and the US over Iran's ongoing nuclear program, could the group of Western oil companies chasing onshore acreage be thwarted by implementation of existing sanctions introduced almost 10 years ago to bar investment in...

Europe's utilities chase upstream gas assets.(mergers and acquisitions)
August 22, 2005... Western Europe's natural gas utilities are heading upstream. The rationale varies--from reducing reliance on a single source of gas to the replacement of a declining resource. But a common aim is to raise the share of gas needs secured from...

Non-Opec supply is stronger than some suspect.
August 22, 2005... The latest monthly report from the International Energy Agency (IEA) sent tremors around the market, in part because it downgraded second half 2005 non-Opec supply to just over 1 million barrels per day above the problem-plagued second half of...

Industry counts cost of steel price spike.
August 22, 2005... Oil companies are wrestling with rising upstream costs, as Royal Dutch Shell's recent budget difficulties in Russia and Canada have underlined. High oil and gas prices mean everyone has wells to drill and fields to develop, and services and raw...

Costs, demand color India's refining plans.
August 22, 2005... India's refiners are barely out of their last slump in fortunes due to a mix of excess capacity and stagnant demand. Yet, seemingly undeterred and inspired by strong refining margins, they are embarking on a fresh round of expansions and...