Petroleum Intelligence Weekly articles from August 2006

Petroleum Intelligence Weekly archives from August 2006

Shell retreats on financial transparency.
August 7, 2006... Big Oil has been big on transparency in recent years, coming clean on signature bonuses, the overstatement of reserves and executive compensation. Royal Dutch Shell has been especially forthright, working its way through a huge reserves crisis...

Majors still missing their output goals.
August 7, 2006... Major oil companies are still facing challenges to boost their output, underlined by their recent second-quarter figures. Production at BP was flat, Exxon Mobil is producing less than it did five years ago and Royal Dutch Shell's projected...

Big Oil spends more to ward off critics.
August 7, 2006... Second-quarter profit reports of the top Western oil companies showed them saying and doing the right things--at least for now--to quiet calls for a windfall profits tax and other types of punitive legislation. Companies will doubtless continue...

Market locks in contango for long haul.(prices of oil)
August 7, 2006... Although oil prices have risen by more than 85 % since December 2004, the futures curve on the New York Mercantile Exchange (Nymex) has been in a steep contango for almost the entire time--with prompt prices lower than deferred contracts--in a...

Real menace for Iran in sanctions threat.
August 7, 2006... The prospect of economic isolation beckons for Iran after the 4 million barrel per day producer last week rejected a UN Security Council resolution calling for it to suspend its nuclear activities by Aug. 31 or face the threat of sanctions. It...

PIW Scorecard: soft West lifts Asian premium.(petroleum prices)
August 7, 2006... Whenever crude oil markets in Europe and the US are well supplied, Mideast producers have to discount their cargoes to the West to remain competitive. But they can typically continue selling their crudes at a premium to Asia, which has fewer...

Risks, costs to Korea's new product push.(production capacity of petroleums)
August 7, 2006... South Korean refiners are scouting out product export markets to support a wave of capacity expansions in the next few years, targeting new regional markets and others farther afield. But the expansions also threaten to reduce Korea's recent...

Corporate--the Moscow Arbitration Court officially declared Yukos bankrupt on Aug. 1, putting Russian state-controlled Rosneft one step closer to devouring the former oil major's sizable remaining assets.(GENERAL)
August 7, 2006... CORPORATE -- The Moscow Arbitration Court officially declared Yukos bankrupt on Aug. 1, putting Russian state-controlled Rosneft one step closer to devouring the former oil major's sizable remaining assets (PIW Jun.12,p7). Rosneft is next in...

Futures--Dubai's first fuel oil futures contract looks set to be launched by the Dubai Multi Commodities Center (DMCC) in late October or early November instead of the previous target of September.(GENERAL)
August 7, 2006... FUTURES -- Dubai's first fuel oil futures contract looks set to be launched by the Dubai Multi Commodities Center (DMCC) in late October or early November instead of the previous target of September. DMCC last week also said it was in the...

Industry restructuring--French Total now owns directly 44.5% of Spain's second largest refiner Cepsa, following the conclusion of a dispute procedure with Spain's largest bank Santander.(GENERAL)
August 7, 2006... INDUSTRY RESTRUCTURING -- French Total now owns directly 44.5% of Spain's second largest refiner Cepsa, following the conclusion of a dispute procedure with Spain's largest bank Santander. The bank is due to transfer a further 4.35% to Total,...

LNG--Exxon Mobil and partners have given the official go-ahead for the 2 Bcf/d (15.6 million ton/yr) Golden Pass LNG receiving terminal to be located near Sabine Pass, Port Arthur, Texas.(GENERAL)
August 7, 2006... LNG -- Exxon Mobil and partners have given the official go-ahead for the 2 Bcf/d (15.6 million ton/yr) Golden Pass LNG receiving terminal to be located near Sabine Pass, Port Arthur, Texas. The Golden Pass joint venture of Qatar Petroleum (QP),...

Canada--in one of the most expensive capital projects in the history of the Canadian oil and gas industry, Shell Canada is proceeding with plans to expand the Athabasca oil sands project in northeastern Alberta (p1).(COUNTRIES)
August 7, 2006... CANADA--In one of the most expensive capital projects in the history of the Canadian oil and gas industry, Shell Canada is proceeding with plans to expand the Athabasca oil sands project in northeastern Alberta (p1). Despite a hike in estimated...

Japan--crude imports fell 10.9% to 3.48 million b/d in June, according to the Ministry of Economy, Trade and Industry.(COUNTRIES)
August 7, 2006... JAPAN--Crude imports fell 10.9% to 3.48 million b/d in June, according to the Ministry of Economy, Trade and Industry. The decline is the result of the refinery maintenance season and lower domestic product demand. Imports from Iran plunged...

Lithuania--a seemingly minor spill on Russia's main crude export pipeline has caused a major headache for Polish PKN Orlen, whose recent purchase--the local Mazeikiu Nafta (MN) refinery--now faces a termination of its normal Russian crude supplies.(COUNTRIES)
August 7, 2006... LITHUANIA--A seemingly minor spill on Russia's main crude export pipeline has caused a major headache for Polish PKN Orlen, whose recent purchase--the local Mazeikiu Nafta (MN) refinery--now faces a termination of its normal Russian crude...

Oman--state-controlled Petroleum Development Oman (PDO) has offered a new group of small oil fields for development by outside operators, following the award of its first "cluster" contract to Indonesian Medco early this year.(COUNTRIES)
August 7, 2006... OMAN--State-controlled Petroleum Development Oman (PDO) has offered a new group of small oil fields for development by outside operators, following the award of its first "cluster" contract to Indonesian Medco early this year (PIW Jan.30,p9)....

Sudan--China National Petroleum Corp. (CNPC) has enlarged its footprint with the launch of its new Dar Blend crude stream from Blocks 3 and 7 in the southeast near the Ethiopian border.(COUNTRIES)
August 7, 2006... SUDAN -- China National Petroleum Corp. (CNPC) has enlarged its footprint with the launch of its new Dar Blend crude stream from Blocks 3 and 7 in the southeast near the Ethiopian border. The development will eventually produce 200,000 b/d, a...

Turkey--a local developer has applied to build a refining and petrochemicals complex at the Mediterranean port of Ceyhan in what promises to become a flood of new energy projects in the area.(COUNTRIES)
August 7, 2006... TURKEY--A local developer has applied to build a refining and petrochemicals complex at the Mediterranean port of Ceyhan in what promises to become a flood of new energy projects in the area (PIW Jul.24,p3). Calik Enerji is proposing to build a...

UAE--Abu Dhabi has kicked off its planned upstream natural gas opening by sending letters to about 15 international oil companies inviting expressions of interest and applications to prequalify ahead of the official tendering of the sour gas development contracts.(COUNTRIES)
August 7, 2006... UAE--Abu Dhabi has kicked off its planned upstream natural gas opening by sending letters to about 15 international oil companies inviting expressions of interest and applications to prequalify ahead of the official tendering of the sour gas...

Vietnam--overseas assets acquired in 2002-03 by state Petrovietnam are starting to produce results, with the company's first international output due this month.(COUNTRIES)
August 7, 2006... VIETNAM -- Overseas assets acquired in 2002-03 by state Petrovietnam are starting to produce results, with the company's first international output due this month. The Cendor field in Malaysia's Block PM304--in which Petrovietnam holds 15%--is...

Output stumbles for majors, but profits are still way ahead in Q2.
August 7, 2006... There appears to be no limit to how high oil company profits can climb. In the second quarter, the top six Western oil majors tracked by PIW earned an eye-popping $37.2 billion, comfortably exceeding their combined first-quarter profit of $31.1...

Who's afraid of $100?(Marketview)
August 7, 2006... NEW YORK -- Goldman Sachs' forecast of a super-spike pushing oil prices to $105 per barrel met with unanimous derision in the oil market last year. But no one is laughing any more, as a majority of oil analysts now believe the question is not...

PIW market indicators.(statistical table)(Statistical table)
August 7, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $69.20 $68.60 $69.35 UK Brent (Dated) 76.09 73.77 74.03...

Updated Price Scorecard for key world grades.(Statistical table)
August 7, 2006... 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.(Statistical table)
August 7, 2006... 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...

Prudhoe Bay exposes wider industry worries.
August 14, 2006... A surge in oil prices was a predictable market reaction to BP's latest US setback, but the Prudhoe Bay problems raise questions about an array of issues confronting the industry. Alaska is not the only mature oil province where old...

US using SPR more freely, proactively.
August 14, 2006... Washington's decision to immediately offer oil from the Strategic Petroleum Reserve (SPR) in response to the shutdown of Alaska's 400,000 barrels per day Prudhoe Bay field by BP provides further confirmation of a highly significant shift in US...

Colombia wants to open up some more.
August 14, 2006... Colombia is the only oil-producing country in Latin America that has been going out of its way to sweeten its investment terms. These are by far the region's most attractive and include royalty rates as low as 8% and the possibility of 100%...

Residual fuel trade faces slow demise.
August 14, 2006... Is the residual fuel oil market dying? Some say it's already dead. That may be partly true in Europe and the US, but in Asia--where environmental regulations are more relaxed--it's still alive and kicking. However, since much of the excess from...

Total's slip reflects PSC pain, rising risk.
August 14, 2006... French Total performed worst among major oil companies in the second quarter, delivering a 10% decline in liquids production and a poor downstream performance as well. Coming after a 3.7% drop in output last year--worsted only by Royal Dutch...

Rosneft move raises Petronas' strategic game.
August 14, 2006... When Petronas bought a $1.1 billion stake in Russian Rosneft last month, many in the industry were left scratching their heads. The Malaysian state energy giant has no current assets in Russia and no interest in importing Russian oil or gas. It...

Fast growing economies spur oil demand.
August 14, 2006... Despite the warning signs flashing an economic slowdown, oil demand growth picked up pace again last month. Preliminary data shows global demand increased by 1.7% in July compared with last year, with all the growth coming from developing...

Corporate--industry giant Exxon Mobil posted a 9.4% rise in share value in July, placing it first among the 15 companies tracked by PIW sister publication International Petroleum Finance.(GENERAL)
August 14, 2006... CORPORATE -- Industry giant Exxon Mobil posted a 9.4% rise in share value in July, placing it first among the 15 companies tracked by PIW sister publication International Petroleum Finance. Marathon Oil was the second-biggest mover, climbing...

Industry restructuring--Occidental Petroleum has agreed to buy oil and gas assets in California and the Permian Basin of West Texas from Plains Exploration and Production for $865 million in cash.(GENERAL)
August 14, 2006... INDUSTRY RESTRUCTURING--Occidental Petroleum has agreed to buy oil and gas assets in California and the Permian Basin of West Texas from Plains Exploration and Production for $865 million in cash. The properties currently have net production of...

Formula prices--Saudi Arabia has adjusted its September formulas for term customers by tightening differentials almost across the board, offering Western customers smaller discounts to regional benchmarks.(GENERAL)
August 14, 2006... FORMULA PRICES--Saudi Arabia has adjusted its September formulas for term customers by tightening differentials almost across the board, offering Western customers smaller discounts to regional benchmarks. With no change to its discount, Extra...

Algeria--the UK's BG Group is teaming up with UK-based independent Gulf Keystone and state Sonatrach as a strategic partner in the Hassi Ba Hamou Block in the center of the country.(BG Group partnerships)(Brief article)
August 14, 2006... ALGERIA -- The UK's BG Group is teaming up with UK-based independent Gulf Keystone and state Sonatrach as a strategic partner in the Hassi Ba Hamou Block in the center of the country. BG will acquire 49% of Gulf Keystone's interest in the block...

Angola--sellers of Hungo crude could see further price hikes this week, when state Sonangol unveils its provisional loading program for October, thanks to BP's shut in of Alaska North Slope (ANS) output (p8).(COUNTRIES)
August 14, 2006... ANGOLA -- Sellers of Hungo crude could see further price hikes this week, when state Sonangol unveils its provisional loading program for October, thanks to BP's shut in of Alaska North Slope (ANS) output (p8). Bids for Hungo, which is a...

China--Canada's Husky added to its position in the deepwater South China Sea, signing up for a third block last week.(COUNTRIES)(Brief article)
August 14, 2006... China -- Canada's Husky added to its position in the deepwater South China Sea, signing up for a third block last week. Interest in the area has mounted since Husky in June said its Liwan 3-1-1 gas discovery in Block 29/26 could have reserves...

Iraq--the Kurdistan Regional Government (KRG) has published a draft petroleum act and a model production sharing contract for the Kurdistan region to be administered by the KRG and its Ministry of Natural Resources.(COUNTRIES)(Brief article)
August 14, 2006... IRAQ -- The Kurdistan Regional Government (KRG) has published a draft petroleum act and a model production sharing contract for the Kurdistan region to be administered by the KRG and its Ministry of Natural Resources. The KRG says the new...

Kazakhstan--the first crude oil to be pumped via the Kazakhstan-China pipeline has finally reached its destination at the Dushanzi refinery, at least two months behind schedule.(COUNTRIES)
August 14, 2006... KAZAKHSTAN -- The first crude oil to be pumped via the Kazakhstan-China pipeline has finally reached its destination at the Dushanzi refinery, at least two months behind schedule. The 200,000 b/d pipeline has the distinction of being the first...

Lebanon--Israel's naval blockade has halted seaborne imports of fuel oil and diesel, leaving the country's power stations with less than one week's supply of fuel.(COUNTRIES)
August 14, 2006... LEBANON -- Israel's naval blockade has halted seaborne imports of fuel oil and diesel, leaving the country's power stations with less than one week's supply of fuel. Two tankers laden with 30,000 tons of fuel oil and 50,000 tons of diesel...

Myanmar--South Korea's Daewoo International says that its gas fields in Blocks A-1 and A-3 hold significantly more reserves than previously assumed and could be enough to justify LNG exports.(COUNTRIES)
August 14, 2006... MYANMAR -- South Korea's Daewoo International says that its gas fields in Blocks A-1 and A-3 hold significantly more reserves than previously assumed and could be enough to justify LNG exports. Reserves in both blocks have been certified at 5.7...

Nigeria--turmoil in the Niger Delta continued apace last week with five Nigerian employees of Royal Dutch Shell killed near the town of Egbema and 10 foreigners kidnapped in four separate incidents.(COUNTRIES)
August 14, 2006... NIGERIA -- Turmoil in the Niger Delta continued apace last week with five Nigerian employees of Royal Dutch Shell killed near the town of Egbema and 10 foreigners kidnapped in four separate incidents. The kidnapped foreigners included three...

Singapore--the government last week confirmed plans to build an LNG terminal by 2012, making clear it wants the project to play an energy security role and promising incentives to ensure it takes off.(COUNTRIES)
August 14, 2006... SINGAPORE -- The government last week confirmed plans to build an LNG terminal by 2012, making clear it wants the project to play an energy security role and promising incentives to ensure it takes off. Trade and Industry Minister Lim Hng Kiang...

UAE--the government of Dubai is to take over the offshore concession operated by ConocoPhillips in April 2007, five years ahead of schedule, following the breakdown of long-running talks to agree terms for an extension.(COUNTRIES)
August 14, 2006... UAE -- The government of Dubai is to take over the offshore concession operated by ConocoPhillips in April 2007, five years ahead of schedule, following the breakdown of long-running talks to agree terms for an extension. Conoco's concession to...

United States--BP was moving ahead last week with the phased shutdown of the giant Prudhoe Bay oil field in Alaska, cutting the flow of oil through the Trans-Alaska pipeline from 800,000 b/d to 600,000 b/d.(COUNTRIES)
August 14, 2006... UNITED STATES -- BP was moving ahead last week with the phased shutdown of the giant Prudhoe Bay oil field in Alaska, cutting the flow of oil through the Trans-Alaska pipeline from 800,000 b/d to 600,000 bid. While the work of mothballing more...

Global supply bounces back in July.
August 14, 2006... Global oil supply bounced back in July to 85.2 million b/d, as non-Opec producers such as Norway, Angola and Kazakhstan that had been hit by maintenance in June led a 520,000 b/d monthly rise in global production. Non-Opec gains accounted for...

No slack this summer.(Marketview)
August 14, 2006... LONDON -- Volatility creates trading opportunities, but there is such a thing as too much of a good thing. Some oil traders, looking forward to a long, lazy summer holiday, have instead been heading back to their desks, heads spinning from...

PIW market indicators.(crude oil prices compared)(Statistical table)
August 14, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $72.44 $70.35 $70.12 UK Brent (Dated) 78.36 76.26 ...

Investors must get used to budget trouble.(oil and gas prices)
August 21, 2006... Robust oil and gas prices continue to drive record earnings for Big Oil, but for many investors the more pressing issues are stalled volume growth and rising project costs. The fact is the majors are having to learn to manage a much more...

Exxon Mobil: softer style, same strategy.
August 21, 2006... Exxon Mobil may have a new chief at the helm, but Rex Tillerson has no plans to deviate far from the business model and ethic set by Standard Oil founder John D. Rockefeller almost 125 years ago and continued by almost every chief executive...

Qatar takes lead in Exxon LNG play.
August 21, 2006... Qatar Petroleum (QP) and strategic partner Exxon Mobil are finally moving ahead with the 2 billion cubic feet per day (15.6 million tons per year) Golden Pass receiving terminal near Port Arthur, Texas, setting the stage for what promises to be...

Project Kuwait struggles again for momentum.(parliamentary politics)
August 21, 2006... After years and years of painfully slow progress, has Kuwait's upstream opening finally hit the skids? Despite the determined efforts of former Oil Minister Sheikh Ahmad al-Fahd al-Sabah to push through Project Kuwait last year, the scheme...

Goldman Sachs sends gasoline into a spin.
August 21, 2006... There are sweeping ramifications to the decision by investment bank Goldman Sachs not to roll the gasoline portion of its massive Goldman Sachs Commodity Index (GSCI) into the newly established reformulated blendstock for oxygenate blending...

China's demand rebounds as economy soars.
August 21, 2006... Chinese oil demand--a leading driver of the bull market of recent years--is proving resilient in the face of high international oil prices and domestic retail price hikes, as burgeoning economic growth and soaring vehicle ownership continue to...

Exxon's Rex Tillerson: why we are exceptional.(Interview)
August 21, 2006... Since Rex Tillerson took over as chairman and chief executive at Dallas-based Exxon Mobil at the start of the year oil prices have hit new highs and the leading supermajor has rung up record quarterly earnings. Last week, Tillerson spoke with...

Corporate--shareholders have filed a lawsuit against BP charging that executive directors and board members knew about the deteriorating pipelines at Prudhoe Bay but did not act to correct the problem.(GENERAL)
August 21, 2006... CORPORATE--Shareholders have filed a lawsuit against BP charging that executive directors and board members knew about the deteriorating pipelines at Prudhoe Bay but did not act to correct the problem (p10). The lawsuit, which seeks unspecified...

Formula prices--in contrast to Sandi Arabia, which narrowed its discounts, Mexico kept its discount unchanged at--$11.00 for September on its heavy, sour Maya crude bound for the US West Coast, despite prospects for tighter supplies following the phased shutdown of BP's giant Prudhoe Bay field in Alaska (PIW Aug.14,p6).(GENERAL)
August 21, 2006... FORMULA PRICES--In contrast to Sandi Arabia, which narrowed its discounts, Mexico kept its discount unchanged at--$11.00 for September on its heavy, sour Maya crude bound for the US West Coast, despite prospects for tighter supplies following...

IEA--though there is enough oil to cover current outages, the International Energy Agency said in its latest monthly report that "in the current refinery-constrained environment, crude quality issues are more of a concern than volumetric outages," by way of reference to a lack of global refinery upgrading and coking capacity to process sour grades.(GENERAL)
August 21, 2006... IEA--Though there is enough oil to cover current outages, the International Energy Agency said in its latest monthly report that "in the current refinery-constrained environment, crude quality issues are more of a concern than volumetric...

Industry restructuring--Anadarko Petroleum plans to sell assets worth around $10 billion after completing the acquisition of Kerr-McGee.(GENERAL)
August 21, 2006... INDUSTRY RESTRUCTURING--Anadarko Petroleum plans to sell assets worth around $10 billion after completing the acquisition of Kerr-McGee. They include Anadarko's Canadian unit, estimated to be worth at least $4.5 billion, for which Talisman...

Australia--Natural field declines and a bad cyclone season contributed to a 20% decline in crude oil and condensate production in the first half of 2006, with total liquids output in the year to end-June tumbling to 356,000 b/d, compared to 444,000 b/d during the same period of 2005.(COUNTRIES)
August 21, 2006... AUSTRALIA -- Natural field declines and a bad cyclone season contributed to a 20% decline in crude oil and condensate production in the first half of 2006, with total liquids output in the year to end-June tumbling to 356,000 b/d, compared to...

Bolivia--Yacimientos Petroliferos Fiscales de Bolivia (YPFB) is so short of cash that it has asked the central bank for a loan, casting doubt on the state-owned oil company's ability to take the lead role in the renationalization of the oil and gas sector.(COUNTRIES)
August 21, 2006... BOLIVIA -- Yacimientos Petroliferos Fiscales de Bolivia (YPFB) is so short of cash that it has asked the central bank for a loan, casting doubt on the state-owned oil company's ability to take the lead role in the renationalization of the oil...

Brazil--Oil and gas production at state-controlled Petrobras recovered in July to 2.3 million boe/d, from 2.2 million boe/d in June when production fell due to the scheduled shutdown of seven crude production platforms at home.(COUNTRIES)
August 21, 2006... BRAZIL -- Oil and gas production at state-controlled Petrobras recovered in July to 2.3 million boe/d, from 2.2 million boe/d in June when production fell due to the scheduled shutdown of seven crude production platforms at home. July's total...

Brazil--Petrobras has boosted its position in the US Gulf of Mexico by acquiring further stakes in two deepwater oil fields.(COUNTRIES)
August 21, 2006... BRAZIL -- Petrobras has boosted its position in the US Gulf of Mexico by acquiring further stakes in two deepwater oil fields (p8). The state controlled company raised its stake in the Chinook field to 71.67% by buying a 26.67% interest from...

China--The report on June crude oil imports used a nonstandard rate for converting metric tons to barrels (PIW Jul.31,p6).(COUNTRIES)
August 21, 2006... CHINA -- The report on June crude oil imports used a nonstandard rate for converting metric tons to barrels (PIW Jul.31,p6). The corrected version below uses the industry standard rate of 7.33. The rankings are not affected. We apologize for...

Colombia--India's Oil and Natural Gas Corp. (ONGC) and China's Sinopec have teamed up to acquire a 50% stake in Omimex de Colombia, a subsidiary of US Omimex Resources.(COUNTRIES)
August 21, 2006... COLOMBIA -- India's Oil and Natural Gas Corp. (ONGC) and China's Sinopec have teamed up to acquire a 50% stake in Omimex de Colombia, a subsidiary of US Omimex Resources. Each will pay $400 million for a 25% stake in the company. Omimex de...

India--Heavy flooding has disrupted natural gas production in Gujarat, leading to the closure of gas-fired power plants and petrochemical plants in the prosperous western state.(COUNTRIES)
August 21, 2006... INDIA -- Heavy flooding has disrupted natural gas production in Gujarat, leading to the closure of gas-fired power plants and petrochemical plants in the prosperous western state. Oil & Natural Gas Corp. (ONGC) closed a gas processing unit and...

Indonesia--Asia-Pacific's only Opec member was a net importer of crude oil for the third month in a row in July because of falling oil output and higher processing by domestic refineries.(COUNTRIES)
August 21, 2006... INDONESIA -- Asia-Pacific's only Opec member was a net importer of crude oil for the third month in a row in July because of falling oil output and higher processing by domestic refineries. Crude oil output dropped to 887,000 b/d in July--a...

Iraq--Oil Minister Hussein al-Sharistani has signed a memorandum of understanding (MOU) to swap Basrah crude for Iranian refined products, the second such deal since July 2005.(COUNTRIES)
August 21, 2006... IRAQ -- Oil Minister Hussein al-Sharistani has signed a memorandum of understanding (MOU) to swap Basrah crude for Iranian refined products, the second such deal since July 2005. The two sides also agreed to develop jointly oil fields that...

Mauritania--Production from the Chinguetti oil field remains "steady" at around 35,000 b/d, after technical problems prevented it reaching a planned peak of 75,000 b/d, operator Australia's Woodside said last week.(COUNTRIES)(Brief article)
August 21, 2006... MAURITANIA -- Production from the Chinguetti oil field remains "steady" at around 35,000 b/d, after technical problems prevented it reaching a planned peak of 75,000 b/d, operator Australia's Woodside said last week. More drilling is expected...

Sao Tome--Calgary-based Centurion has taken a further 2% interest in Block 4 in the joint development zone (JDZ) with Nigera, boosting its holding in the block to 9.5%.(COUNTRIES)(Hercules Petroleum Limited merge with Centurion)(Brief article)
August 21, 2006... SAO TOME -- Calgary-based Centurion has taken a further 2% interest in Block 4 in the joint development zone (JDZ) with Nigera, boosting its holding in the block to 9.5%. Centurion will pay $4.4 million in cash to purchase a 25% holding in...

South Korea--ConocoPhillips may emerge as the third foreign oil major with a presence in Korean refining if it concludes a deal to buy a stake in refiner Hyundai Oilbank from Abu Dhabi's International Petroleum Investment Co.(COUNTRIES)
August 21, 2006... SOUTH KOREA -- ConocoPhillips may emerge as the third foreign oil major with a presence in Korean refining if it concludes a deal to buy a stake in refiner Hyundai Oilbank from Abu Dhabi's International Petroleum Investment Co. (Ipic). Ipic is...

United States--After surviving a legal challenge, the latest Gulf of Mexico lease sale went ahead in New Orleans last week and raised $341 million, making it the strongest sale in the Western Gulf since 1998.(COUNTRIES)
August 21, 2006... UNITED STATES -- After surviving a legal challenge, the latest Gulf of Mexico lease sale went ahead in New Orleans last week and raised $341 million, making it the strongest sale in the Western Gulf since 1998. Deepwater blocks in the Keathley...

United States--The Alaska legislature has approved a new tax regime for oil and gas production that marks an important step in efforts to sign a major natural gas development deal with Exxon Mobil, ConocoPhillips and BP that is expected to lead to construction of a pipeline from Alaska's North Slope to Alberta, Canada.(COUNTRIES)
August 21, 2006... UNITED STATES -- The Alaska legislature has approved a new tax regime for oil and gas production that marks an important step in efforts to sign a major natural gas development deal with Exxon Mobil, ConocoPhillips and BP that is expected to...

Covering Alaska.(Marketview)
August 21, 2006... SINGAPORE/NEW YORK -- Just as water finds its own level, so oil markets calmed down in the wake of BP's initial decision to shut down 400,000 barrels per day of Alaska North Slope (ANS) crude production at Prudhoe Bay. First, the problem turned...

PIW market indicators.(Spot Crude)(Statistical table)
August 21, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $69.23 $71.72 $68.60 UK Brent (Dated) 73.28 77.30 ...

Costs, access remain biggest worries in E&P.
August 28, 2006... The oil industry may be benefiting from $70 oil, but that hasn't assuaged growing concerns about finding new exploration prospects or containing rapidly rising upstream development costs. Discussions at last week's Offshore Northern Seas...

Opec to face test from next year's oil balance.
August 28, 2006... Next year's global oil balance is likely to present a much different picture than those of the last few years--and of future years beyond--with a repeat of 2006's modest growth in global demand coupled with a surge in non-Opec supply. The 2007...

Transparency and trading mix like oil and water.
August 28, 2006... Judging by the number of oil companies who say they want to boost transparency to help reduce corruption in producing countries, one would expect the industry to be more open. Yet a glance at developments in West Africa suggests that while...

Nymex and ICE play to a draw--for now.
August 28, 2006... The outcome in the contest between the InterncontinentalExchange (ICE) and the New York Mercantile Exchange (Nymex) could be deemed a draw, or even a win-win situation--for now. The archrival futures trading exchanges are coexisting and,...

Russian output growth shifts to state sector.
August 28, 2006... In contrast to recent years, when private sector oil companies led Russian production growth rates to double-digits, growth in the first seven months of this year was a meager 2.4%, with a much-expanded state player, Rosneft, leading the way...

Gazprom goes global with LNG game plan.
August 28, 2006... A preliminary agreement between Russian Gazprom and Algerian Sonatrach on future cooperation drew an outcry in Europe earlier this month, as the region feared its two largest natural gas suppliers were in cahoots to create a gas cartel....

China expands motley crude import flow.
August 28, 2006... While big Asian consumers such as Japan and South Korea rely heavily on the Middle East for roughly 80% of their crude oil supplies, China has maintained a far more diverse slate, limiting Mideast suppliers to a 45%-50% slice of its imports pie...

The dangerous myth of oil security.
August 28, 2006... The security of Mideast oil supplies remains a primary concern for world oil markets. The following article challenges many prevailing views of supply security. It is excerpted from the final chapter of the recently published book, The Age Of...

Corporate--exploration and production spending in 2006 is on pace to surpass 2005 expenditures significantly.(survey report)(Brief article)
August 28, 2006... CORPORATE--Exploration and production spending in 2006 is on pace to surpass 2005 expenditures significantly. A survey of 48 North American E&P companies found that first-half upstream spending totaled $20.6 billion, according to investment...