Petroleum Intelligence Weekly articles from February 2003

Petroleum Intelligence Weekly archives from February 2003

PDV recovering but not to old self.(Petroleos de Venezuela)
February 3, 2003... With Venezuelan oil production rising to more than a third of pre-strike levels and signs of a possible negotiated settlement to the conflict developing, the new shape of the country's oil industry is starting to emerge--and it is not a pretty...

High oil prices warp size of market balance.
February 3, 2003... Oil is expensive. So expensive, in fact, that it is tempting to draw the quick conclusion that there are simply not enough barrels around. But a closer look at market trends and supply-demand data from EIG's Oil Market Intelligence defies such...

Lights flicker on third world power projects.(power plants for sale in emerging markets)
February 3, 2003... The cold light of disinvestment by US and, more recently, European energy merchants is dawning on the 1990s dream of well-to-wire gas and power projects across the developing world. An estimated $15 billion of commercial power plant assets in...

Supply pundits see strong non-Opec rise.
February 3, 2003... Non-Opec supply looks set to record another solid year of growth, according to forecasters surveyed by PIW. That, coupled with the accelerating, but still moderate, demand outlook these analysts share, could leave little room for Opec as a...

Caspian waves churned up by Tengiz spat.(ChevronTexaco conflict with Kazakhstan)
February 3, 2003... ChevronTexaco's spat with Kazakhstan over how to fund a $3 billion oil field expansion has been resolved, but it has left a stain on the region's record of financing its biggest projects. The two-month suspension of the Tengiz scheme had caused...

India finally moves to privatize oil.(Hindustan Petroleum, Bharat Petroleum)
February 3, 2003... In what could be a breakthrough in Indian oil sector deregulation, the government formally has agreed--after several months of strong bickering--to privatize state Hindustan Petroleum and Bharat Petroleum (PIW Nov.4,p2). The decision throws...

Anti-trust law fuels EU retail swap frenzy.
February 3, 2003... The normally sleepy market for Western European retail marketing assets has been buzzing with activity as ENI, Total Fina Elf, and others shuffle packages of service stations between their national networks, led by Italian major ENI with a...

Corporate--US integrated oil companies saw their fourth-quarter earnings increase in a range of 50% to 100% from year-earlier levels, spurred by higher oil and gas prices and a recovery in domestic refining margins. (General).(Brief Article)
February 3, 2003... CORPORATE--US integrated oil companies saw their fourth-quarter earnings increase in a range of 50% to 100% from year-earlier levels, spurred by higher oil and gas prices and a recovery in domestic refining margins. Most top companies,...

Corporate--US integrated firm Amerada Hess took a $530 million after-tax impairment charge against its fourth-quarter earnings to reflect a reduction in probable reserves and higher field development costs at its La Ceiba field offshore Equatorial Guinea. (General).(Brief Article)
February 3, 2003... CORPORATE--US integrated firm Amerada Hess took a $530 million after-tax impairment charge against its fourth-quarter earnings to reflect a reduction in probable reserves and higher field development costs at its La Ceiba field offshore...

Industry restructuring--BP and Amerada Hess have agreed to an asset swap. (General).(asset sale briefs)(Brief Article)
February 3, 2003... INDUSTRY RESTRUCTURING--BP and Amerada Hess have agreed to an asset swap. BP is exchanging its 25% interest in Block A-18 of the Malaysia Thailand Joint Development Area, for Amerada Hess' interests in Colombia. The Colombian interests include...

Abu Dhabi -- State oil company Adnoc has extended until Apr. 30 the target for deciding who will be awarded a 28% stake in Zakum Development Co. (Zadco), the operating company that currently produces around 500,000 b/d of crude from the offshore Upper Zakum field (PIW Nov.4,p1). (Countries).(Brief Article)
February 3, 2003... ABU DHABI -- State oil company Adnoc has extended until Apr. 30 the target for deciding who will be awarded a 28% stake in Zakum Development Co. (Zadco), the operating company that currently produces around 500,000 b/d of crude from the...

Brunei -- Total Fina Elf has struck gas in Darussalam, in what it considers a significant gas and condensate discovery. (Countries).(Brief Article)
February 3, 2003... BRUNEI -- Total Fina Elf has struck gas in Darussalam, in what it considers a significant gas and condensate discovery. Exact reserve levels are as yet unavailable, but the discovery comes as a boost for Brunei's stuttering economy. Brunei...

Colombia -- State oil firm Ecopetrol is forecasting a decline in total 2003 crude oil production to 536,000 b/d, compared with 578,000 b/d in 2002, due to a natural decline in the country's fields. (Countries).(Brief Article)
February 3, 2003... COLOMBIA -- State oil firm Ecopetrol is forecasting a decline in total 2003 crude oil production to 536,000 b/d, compared with 578,000 b/d in 2002, due to a natural decline in the country's fields. The largest oil fields, BP-operated Cusiana...

Ecuador -- Continuing a practice of naming retired military personnel to key energy posts, the new administration of President Lucio Gutierrez named retired army captain and chemical engineer Guillermo Rosero as the president of state Petroecuador. (Countries).(Brief Article)
February 3, 2003... ECUADOR -- Continuing a practice of naming retired military personnel to key energy posts, the new administration of President Lucio Gutierrez named retired army captain and chemical engineer Guillermo Rosero as the president of state...

Iraq -- Crude oil exports in the week ended Jan. 24 dropped to 1.62 million b/d from 2.16 million b/d the previous week, latest United Nations data show. (Countries).(Brief Article)
February 3, 2003... IRAQ -- Crude oil exports in the week ended Jan. 24 dropped to 1.62 million b/d from 2.16 million b/d the previous week, latest United Nations data show. Sales from the Mideast Gulf port of Mina al-Bakr amounted to 6.32 million bbl, while the...

Japan -- Tokyo Commodity Exchange (Tocom) is building on its reputation as Asia's only successful center of exchange-traded energy futures contracts by announcing plans to list gas oil. (Countries).(Brief Article)
February 3, 2003... JAPAN -- Tokyo Commodity Exchange (Tocom) is building on its reputation as Asia's only successful center of exchange-traded energy futures contracts by announcing plans to list gas oil. A spokesman says the exchange will list a gas oil futures...

Korea (North) -- Malaysia's state-owned Petronas is understood to have signed an agreement to explore for oil offshore North Korea, near the maritime borders of Russia and China. (Countries).(Brief Article)
February 3, 2003... KOREA (NORTH) -- Malaysia's state-owned Petronas is understood to have signed an agreement to explore for oil offshore North Korea, near the maritime borders of Russia and China. The agreement was signed alter the North Koreans divulged in...

Russia -- Ever on the lookout for new outlets for its rising oil production, Russia has opened a new trading route by shipping crude across the Caspian Sea to Iran. (Countries).(Brief Article)
February 3, 2003... RUSSIA -- Ever on the lookout for new outlets for its rising oil production, Russia has opened a new trading route by shipping crude across the Caspian Sea to Iran. Shipments of Siberian Light by Lukoil are running at around 25,000 b/d, and...

Sao Tome -- After months of delays, Nigeria and Sao Tome aim to hold a licensing round in their joint deepwater zone in the second quarter of this year, and hope to cash the first signature bonuses in 2004. (Countries).(Brief Article)
February 3, 2003... SAO TOME -- After months of delays, Nigeria and Sao Tome aim to hold a licensing round in their joint deepwater zone in the second quarter of this year, and hope to cash the first signature bonuses in 2004. The Joint Development Authority...

Ukraine -- eager to find export outlets for rising crude production, Russian oil companies have started using a new Ukrainian sea terminal and pipeline stretch (PIW Jan. 13,p1). (Countries).(Brief Article)
February 3, 2003... UKRAINE -- Eager to find export outlets for rising crude production, Russian oil companies have started using a new Ukrainian sea terminal and pipeline stretch (PIW Jan. 13,p1). Ukrainian state pipeline operator Ukrtransnafta will start pumping...

UAE -- Petroleum Geo-Services (PGS) has finally sealed a deal to unload its Atlantis upstream unit to Chinese trader Sinochem. (Countries).(Brief Article)
February 3, 2003... UAE -- Petroleum Geo-Services (PGS) has finally sealed a deal to unload its Atlantis upstream unit to Chinese trader Sinochem. However, the sale may be too little, too late for the hemorrhaging US-Norwegian marine seismic firm to avoid going...

United Kingdom -- The Financial Services Authority (FSA) has authorized Atlanta-based IntercontinentalExchange's (ICE) UK subsidiary to act as an "arranger of deals in investments"--a broker. (Countries).(Brief Article)
February 3, 2003... UNITED KINGDOM -- The Financial Services Authority (FSA) has authorized Atlanta-based IntercontinentalExchange's (ICE) UK subsidiary to act as an "arranger of deals in investments"--a broker. The new status will allow ICE to host trades between...

Asians apply Gulf War lessons--build stocks. (Countries).
February 3, 2003... With the US gearing up to invade Iraq, Asian refiners are carefully planning their responses, remembering what happened during the Gulf War 12 years ago, when oil prices rocketed briefly and they had to scramble for supplies to replace lost...

Disconnect. (Marketview).(physical, paper crude oil markets)
February 3, 2003... NEW YORK -- The disconnect between physical and paper crude oil markets is becoming increasingly apparent, with headline-driven futures prices bobbing on the waves of Venezuelan political developments and Iraqi war preparations. The spreads...

Workshop probes corruption in oil-producing states.
February 3, 2003... The UK is hosting an international workshop aimed at curbing corruption in oil- and mineral-producing states. The workshop, to be held in London on Feb. 11-12, is part of the international Extractive Industries Transparency Initiative (EITI)...

PIW market indicators.(crude prices, netbacks)(Illustration)
February 3, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $30.10 $30.78 $29.92 UK Brent (Dated) 30.54...

Asia is not fazed by Iraq war worries. (Eye On Iraq).(crude oil dependence)
February 10, 2003... Asia has the most to fear from a war in Iraq. It imports more crude from the Middle East than any other consuming region, and in percentage terms is by far the most reliant on Mideast supplies. Within the UN Security Council, regional...

BP acts to burnish its lost luster.(strategy review, investor relations)
February 10, 2003... BP will be hoping to draw a long, hard winter of self-assessment to a close this week when it presents the results of the strategy review it promised last October. After cutting output growth forecasts three times during eight embarrassing...

India's ONGC leads the race to integrate.(Oil & Natural Gas Corp. may bid for Hindustan Petroleum)
February 10, 2003... By the stable standards of the past, India's energy landscape is experiencing a seismic shift as privatization and deregulation spur the state-owned oil giants to radically rethink their strategies. As regulation unravels they are looking...

Global output swallows up Venezuela loss.(oil supply)
February 10, 2003... Global oil supply rebounded by nearly 1 million barrels per day in January to 78 million b/d, nearly matching demand and dispelling fears of a shortage due to Venezuela's strike. But this recovery, which was led by Saudi Arabia, provided scant...

Mexico faces moment of truth for upstream.(smaller oil fields need to take up slack from Cantarell)
February 10, 2003... It is ironic that just when Mexico could clean up in the US crude oil market because of the vacuum caused by Venezuela's strike and the uncertainty over a war in Iraq, the country is facing its own moment of truth. Mexico's prolific Cantarell...

Oil market looks ready for Iraq war.
February 10, 2003... Is the oil market ready for war? The answer appears to be yes, based on projected supply/demand balances for the months ahead. Latest PIW estimates suggest that, even with low inventories, relatively strong global oil demand growth, and no...

Hindustan's Mahesh B. Lal pushes for growth.(Hindustan Petroleum)(Interview)
February 10, 2003... Since he became chairman and managing director of Hindustan Petroleum (HPCL) in June, Mahesh B. Lal has pressed ahead with modernization of India's second largest refiner and advanced plans to build a new refinery at Bhatinda in Punjab. After...

ONGC's Raha leads upstream giant downstream.(Oil and Natural Gas Corporation Ltd., chairman and managing director, Subir Raha interview )(Interview)
February 10, 2003... As it struggles to boost recovery rates at its main Mumbai High field, India's Oil & Natural Gas Corp. (ONGC) is also embarking on a program of intensified domestic exploration, international expansion and downstream integration. ONGC Chairman...

Corporate--Royal Dutch/Shell posted headline earnings for the fourth quarter of last year of $2.87 billion, up 46% from $1.91 billion a year earlier but slightly below analysts' expectations. (General).(Royal Dutch-Shell Group of Cos.)(Brief Article)
February 10, 2003... CORPORATE -- Royal Dutch/Shell posted headline earnings for the fourth quarter of last year of $2.87 billion, up 46% from $1.91 billion a year earlier but slightly below analysts' expectations. Higher commodity prices and higher production...

E-commerce--energy companies' enthusiastic embrace of internet-based software solutions in recent years has not come without its risks, and the sector suffers a higher rate of attacks on its computer systems than any other industry, according to a report from computer security specialists Symantec. (General).(Symantec Corp.)(Brief Article)
February 10, 2003... E-COMMERCE -- Energy companies' enthusiastic embrace of internet-based software solutions in recent years has not come without its risks, and the sector suffers a higher rate of attacks on its computer systems than any other industry, according...

Industry Restructuring--portfolio rationalization continued at EnCana, as North America's largest independent producer opted to sell its stake in the cost-burdened Syncrude oil sands venture to Canadian Oil Sands Trust for US$700 million. (General).(EnCana Corp., Syncrude Canada Ltd.)(Brief Article)
February 10, 2003... INDUSTRY RESTRUCTURING -- Portfolio rationalization continued at EnCana, as North America's largest independent producer opted to sell its stake in the cost-burdened Syncrude oil sands venture to Canadian Oil Sands Trust for US$700 million....

North Sea--the UK and Norway will publish the main principles for a bilateral treaty on cross-border pipelines and field developments late next month, with the preferred route for a new gas pipeline from the 14.1 Tcf Ormen Lange field off mid-Norway to the UK likely to be unveiled soon afterwards. (General).(Brief Article)
February 10, 2003... NORTH SEA -- The UK and Norway will publish the main principles for a bilateral treaty on cross-border pipelines and field developments late next month, with the preferred route for a new gas pipeline from the 14.1 Tcf Ormen Lange field off...

Opec--the producer group has reopened a divisive internal debate about how to fairly distribute production quotas. (General).(Brief Article)
February 10, 2003... OPEC -- The producer group has reopened a divisive internal debate about how to fairly distribute production quotas. Technical experts came up with a possible framework for quota allocations at talks in Vienna last week that will go before a...

Brazil--in a move that should reassure investors, state-controlled Petrobras has tapped long-term staffers in a shake-up of its executive board that follows the recent election of President Luiz Inacio "Lula" da Silva. (Countries).(Brief Article)
February 10, 2003... BRAZIL -- In a move that should reassure investors, state-controlled Petrobras has tapped long-term staffers in a shake-up of its executive board that follows the recent election of President Luiz Inacio "Lula" da Silva. Despite their technical...

China--defying most expectations, total crude production climbed last year, with a hike in offshore output offsetting declines from mature areas onshore. (Countries).(Brief Article)
February 10, 2003... CHINA -- Defying most expectations, total crude production climbed last year, with a hike in offshore output offsetting declines from mature areas onshore. Total crude production hit 3.393 million b/d, up from 3.297 million b/d in 2001, driven...

India--high oil prices and domestic deregulation have turned into an earnings bonanza for state oil companies (p6). (Countries).(Brief Article)
February 10, 2003... INDIA -- High oil prices and domestic deregulation have turned into an earnings bonanza for state oil companies (p6). Oil & Natural Gas Corp. (ONGC) recorded an 84% jump in net profits to $540 million for the last three months of 2002--the...

Iran--state-owned National Iranian Oil Co. (NIOC) is close to hooking two partners to turn its first LNG project into a reality. (Countries).(Brief Article)
February 10, 2003... IRAN -- State-owned National Iranian Oil Co. (NIOC) is close to hooking two partners to turn its first LNG project into a reality. BG and Italy's Enel are in advanced negotiations to join NIOC LNG, now 100% owned by NIOC, which aims to produce...

Japan--Royal Dutch/Shell's giant Sakhalin gas project is being marketed head-to-head with BP's Tangguh in the world's biggest market for LNG. (Countries).(Tokyo Gas to buy from Sakhalin-2 venture)(Brief Article)
February 10, 2003... JAPAN -- Royal Dutch/Shell's giant Sakhalin gas project is being marketed head-to-head with BP's Tangguh in the world's biggest market for LNG. Tokyo Gas, Japan's biggest gas utility, plans to buy up to 1 million tons/yr of LNG from the...

Japan--despite a rally late in the year, crude imports slumped by nearly 5% in 2002, reducing the intake by Asia's biggest oil consumer by 200,000 b/d. (Countries).
February 10, 2003... JAPAN -- Despite a rally late in the year, crude imports slumped by nearly 5% in 2002, reducing the intake by Asia's biggest oil consumer by 200,000 b/d. Total crude imports averaged 4.061 million b/d over the full year, latest figures from the...

Kazakhstan--Royal Dutch/Shell clearly has one eye on future crude exports in agreeing to fork out $165 million to buy the local assets of US independent Kerr-McGee Oryx. (Countries).(Brief Article)
February 10, 2003... KAZAKHSTAN -- Royal Dutch/Shell clearly has one eye on future crude exports in agreeing to fork out $165 million to buy the local assets of US independent Kerr-McGee Oryx. The key prize is Kerr-McGee's 1.75% stake in the Caspian Pipeline...

Russia--concerns about the impact of bad weather proved to be overblown as crude and oil products exports ramped up regardless last month. (Countries).(Illustration)
February 10, 2003... RUSSIA -- Concerns about the impact of bad weather proved to be overblown as crude and oil products exports ramped up regardless last month. Shipments were up out of the Black Sea ports, despite severe storm delays, as well as via the Druzhba...

Russia--in yet another blow to its ambitious overseas expansion plans, Lukoil's bid for a 23.17% stake in Greek state-controlled refiner Hellenic Petroleum has been rejected. (Countries).(Brief Article)
February 10, 2003... RUSSIA -- in yet another blow to its ambitious overseas expansion plans, Lukoil's bid for a 23.17% stake in Greek state-controlled refiner Hellenic Petroleum has been rejected. Athens spurned the bid as not "acceptable for the national...

South Korea--crude oil import taxes are to be slashed by 43% on Feb. 17 to counter the impact of high oil prices, and the government is urging the public to take voluntary steps to conserve energy. (Countries).(Brief Article)
February 10, 2003... SOUTH KOREA -- Crude oil import taxes are to be slashed by 43% on Feb. 17 to counter the impact of high oil prices, and the government is urging the public to take voluntary steps to conserve energy. Local taxes on oil products will be cut if...

Venezuela--President Hugo Chavez is starting to gloat over his apparent success in crushing the two-month-old strike. (Countries).(oil output rises)(Brief Article)
February 10, 2003... VENEZUELA -- President Hugo Chavez is starting to gloat over his apparent success in crushing the two-month-old strike. Oil production climbed back to a claimed 1.9 million b/d last week and exports reached 890,000 b/d. Despite the apparent...

El Paso managers face a last stand.(Brief Article)
February 10, 2003... El Paso is fighting for survival of not only the company itself, but also for the future of the incumbent management and directors who face a proxy fight led by dissident shareholders. The company's credit rating is "junk," and the value of its...

Politics, products, and Powell. (Marketview).(oil prices rally, Colin Powell reports to UN on Iraq)
February 10, 2003... LONDON -- For months, oil prices have been held hostage by the fear that war in the Middle East might disrupt supplies, send prices soaring and the world economy into a tail spin. But on Feb. 5, politics was relegated to a supportive role while...

Record figures take the heat off ICE.(IntercontinentalExchange)(Brief Article)
February 10, 2003... The IntercontinentalExchange (ICE) sought to silence its critics last week by announcing record transactions, revenues, and profits for 2002 on the same day its International Petroleum Exchange (IPE) subsidiary confirmed it would move...

PIW market indicators.(crude prices, netbacks)(Illustration)
February 10, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $30.26 $30.29 $30.28 UK Brent (Dated) 30.88 31.10 ...

BP gamble takes it deep into Russia.
February 17, 2003... BP is taking a big gamble by sharply stepping up its investment in Russia hand-in-hand with the same Russian partners who took it to the cleaners only a few years ago. But the UK major's $6.75 billion purchase of a 50% stake in a new joint...

Gulf War II is less of a worry for oil. (Eye On Iraq).(Industry Overview)
February 17, 2003... How will oil markets respond to a war on Iraq? Will oil prices fall by $10 per barrel in one day, as they did in 1991 when the allies ousted Iraqi forces from Kuwait with lightning speed? In many respects, the market backdrop is much tighter...

Mideast Gulf braced to secure its oil. (Eye On Iraq).
February 17, 2003... Mindful of what happened during the last Gulf War in 1991, Mideast Gulf producers are tightening security at their oil installations ahead of what seems an almost certain US-led attack on Iraq. Kuwait, which still bears the psychological scars...

BP, Chevron regroup after target debacle.(financial and operating targets missed)
February 17, 2003... Failure to deliver on various financial and operating targets has led two of the world's largest publicly traded oil companies to do away with them almost entirely, leading investors to ponder whether the business models of BP and ChevronTexaco...

Nigeria wrestles to balance Opec, deepwater plans.
February 17, 2003... As Exxon Mobil, Royal Dutch/Shell, and ENI bring on three virgin fields this year, Nigeria is speeding towards production capacity in excess of 3 million barrels per day. That target will not he reached until 2006 but capacity is already around...

Coalbed methane emerges as new gas source.
February 17, 2003... Natural gas held in coal seams--coalbed methane (CBM)--has emerged as an important source of US gas supply over the last decade, prompting other countries to follow suit. The US, where coalbed methane already accounts for about 8% of total gas...

Japan takes the axe to its LNG costs.
February 17, 2003... Japanese energy demand may be stuck on a downward spiral after years of economic stagnation but it is emboldening Asia's biggest oil and gas buyer to try to cut the cost of its imports. Tokyo is taking particular aim at the formula that...

IEA's Mandil ready for `massive' release--if necessary.(interview with new International Energy Agency head Claude Mandil)(Interview)
February 17, 2003... Claude Mandil, most recently head of the Institut Francais du Petrol (IFP) and a former senior French government energy official, took over as executive director of the International Energy Agency (IEA) from Robert Priddle on Feb. 1, just as US...

Corporate--the continuing shakeout in the European downstream sector passed another milestone, with Austria's OMV snapping up a further bunch of assets in a $405 million purchase from BP (PIW Jan.6,p5). (General).(Brief Article)
February 17, 2003... CORPORATE--The continuing shakeout in the European downstream sector passed another milestone, with Austria's OMV snapping up a further bunch of assets in a $405 million purchase from BP (PIW Jan.6,p5). The package comprises 45% of the...

Environment--the world's first commercial hydrogen filling station is to open in the Icelandic capital of Reykjavik on Apr. 24. (General).(Brief Article)
February 17, 2003... ENVIRONMENT--The world's first commercial hydrogen filling station is to open in the Icelandic capital of Reykjavik on Apr. 24. Run by Icelandic New Energy, the project will be erected at an existing Shell station, using Norsk Hydro...

Formula prices--in the buildup to a possible war in Iraq, Saudi Arabia has lowered its prices sharply for March cargoes to the US and Europe--Asian customers are to pay more for some grades--while making available full term contract volumes to customers. (General).(Illustration)
February 17, 2003... FORMULA PRICES--In the buildup to a possible war in Iraq, Saudi Arabia has lowered its prices sharply for March cargoes to the US and Europe--Asian customers are to pay more for some grades--while making available full term contract volumes to...

IEA--the International Energy Agency's latest monthly Oil Market Report warns that oil markets are probably in for more volatility as a possible war on Iraq, political turmoil in Nigeria, and the lingering effects of the Venezuelan strike could further stretch a global supply system. (General).(Brief Article)
February 17, 2003... IEA--the International Energy Agency's latest monthly Oil Market Report warns that oil markets are probably in for more volatility as a possible war on Iraq, political turmoil in Nigeria, and the lingering effects of the Venezuelan strike could...

Industry restructuring--as part of a massive rationalization plan, BP is selling a package of southern North Sea natural gas assets to France's Perenco for $162 million in cash. (General).(Brief Article)
February 17, 2003... INDUSTRY RESTRUCTURING--As part of a massive rationalization plan, BP is selling a package of southern North Sea natural gas assets to France's Perenco for $162 million in cash (p3). The sale includes BP's share in 14 operated gas fields, of...

Bolivia -- despite reserves of more than 47 Tcf of natural gas and some strong development partners, the search for gas markets is proving elusive. (Countries).(Brief Article)
February 17, 2003... BOLIVIA -- Despite reserves of more than 47 Tcf of natural gas and some strong development partners, the search for gas markets is proving elusive. The latest blow comes from Brazilian state Petrobras which wants to reduce the volumes it...

Iraq -- Russia's Lukoil has lost its battle to keep the West Qurna development contract, though other Russian companies will be given special consideration in finding a replacement. (Countries).(Brief Article)
February 17, 2003... IRAQ -- Russia's Lukoil has lost its battle to keep the West Qurna development contract, though other Russian companies will be given special consideration in finding a replacement. "This issue is closed. Since the company did not fulfill its...

Russia -- the government appears to be backing a compromise between rival oil pipeline schemes that should break the deadlock over developing a major new export route to China (PIW Dec.9,p1). (Countries).(Brief Article)
February 17, 2003... RUSSIA -- The government appears to be backing a compromise between rival oil pipeline schemes that should break the deadlock over developing a major new export route to China (PIW Dec.9,p1). Oil producer Yukos originally promoted a $1.7...

South Korea -- undeterred by repeated failures to establish a crude futures contract in Asia over the last decade, and in a bid to provide refiners with an extra tool to deal with volatile prices, the Korea Futures Exchange (Kofex) is hatching plans to offer its first crude futures contract by the end of this year. (Countries).(Brief Article)
February 17, 2003... SOUTH KOREA -- Undeterred by repeated failures to establish a crude futures contract in Asia over the last decade, and in a bid to provide refiners with an extra tool to deal with volatile prices, the Korea Futures Exchange (Kofex) is hatching...

United States -- two deepwater Gulf of Mexico fields promise to be more prolific than expected after an upgrade of reserve estimates for Atlantis and indications from Royal Dutch/Shell that its Great White is large enough to be developed on a standalone basis (PIW Jan.6, p1). (Countries).
February 17, 2003... UNITED STATES -- Two deepwater Gulf of Mexico fields promise to be more prolific than expected after an upgrade of reserve estimates for Atlantis and indications from Royal Dutch/Shell that its Great White is large enough to be developed on a...

Venezuela -- foes of President Hugo Chavez were enraged by the government's handling of the process that last week awarded private licenses for development of the $3.8 billion offshore Plataforma Deltana gas project to ChevronTexaco and Norway's Statoil. (Countries).
February 17, 2003... VENEZUELA -- Foes of President Hugo Chavez were enraged by the government's handling of the process that last week awarded private licenses for development of the $3.8 billion offshore Plataforma Deltana gas project to ChevronTexaco and...

Big oil profits jump 50% in Q4 as prices soar.
February 17, 2003... Five of the world's leading publicly traded oil companies posted fourth-quarter earnings that were nearly 50% higher than in the year-earlier period, due largely to higher oil and gas prices and a recovery in downstream margins. Exxon Mobil,...

Residual issue. (Marketview).(Residual fuel oil prices are high)(Industry Overview)
February 17, 2003... NEW YORK -- Residual fuel oil prices are high in the US--particularly in the Northeast--but not as high as they could be, given the cards dealt to the heavy heating fuel this winter. For starters, fuel oil stocks are flirting with 50-year lows...

Jet fuel buyers brushed aside for US military in Kuwait.(Brief Article)
February 17, 2003... Kuwait Petroleum Corp. (KPC) has asked its term lifters to delay jet fuel loadings by six to seven days to accommodate incremental local US military demand, as US and UK troops gather in the country ahead of an expected assault on Iraq. ...

PIW market indicators.(Petroleum Intelligence Weekly)(Illustration)
February 17, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $31.34 $30.42 $30.78 UK Brent (Dated) 32.26 31.53 31.55...

"War premium" could sink deeper roots.(oil prices, possible war with Iraq)
February 24, 2003... How long will the `war premium' last? The received wisdom is that once an Iraq war gets under way, a short price spike will be followed by a crash, perhaps to more normal levels of around $18 for Brent and $20 for West Texas Intermediate...

Political tension further sours Saudi gas deal.(Exxon Mobil, Royal Dutch/Shell consortium; gas projects in Saudi Arabia)
February 24, 2003... It would be going too far to say that the three-year-long struggle by Exxon Mobil and Royal Dutch/Shell-led consortia to nail down a $20 billion-plus investment in integrated gas projects in Saudi Arabia has ended in defeat, but there is not...

North Sea magic show nears its final act.(North Sea oil production, statistics; Norway)
February 24, 2003... North Sea oil production may pull yet another rabbit out of the hat with a modest increase this year, but deeper signs of the maturity of the upstream province suggest the magic act can't last much longer. New fields are getting fewer and...

Majors start big sale of smaller fields.(industry restructuring, asset sales)
February 24, 2003... With several top oil companies planning to "high-grade" their asset portfolios in an effort to enhance financial returns, the industry appears to be on the cusp of the biggest restructuring since the era of the mega-merger in the late 1990s....

EnCana to rely on strength in North America.(10% multi-year growth target )
February 24, 2003... At a time when companies like BP and Royal Dutch/Shell are backing away from volume growth targets, Calgary-based EnCana is sticking its neck out with a 10% multi-year growth target and insists it will have no problem in delivering the goods....

China's growing oil demand to eclipse Japan's.
February 24, 2003... In a historic structural shift for oil demand, China could topple Japan from its perch this year to become Asia's top oil consumer. If bullish current forecasts are borne out, Chinese oil demand could top 5 million barrels per day for the first...

Canada's crystal ball proves murky.
February 24, 2003... Canadian officials gazing deep into their crystal balls are not too concerned about long-term prospects for oil production. Natural gas, however, is a different matter, with Canada essentially expected to stand still over the next two decades....