Petroleum Intelligence Weekly articles from February 2006

Petroleum Intelligence Weekly archives from February 2006

US oil industry facing new political test.
February 6, 2006... The scale of the public image challenge facing major oil companies came into stark relief last week with US President George W. Bush, a conservative Republican from Texas and friend to the industry, announcing the US should break its...

Repsol hits raw nerve with reserve cuts.
February 6, 2006... Last month's huge reserves write-down by Repsol YPF won't have major repercussions for the rest of the oil industry, conventional wisdom suggests, because the issues involved are specific to countries where the Spanish company is by far the...

US LNG fortunes wane in '05 but outlook bright.
February 6, 2006... For the US LNG industry, 2005 was a decidedly lackluster year, as imports sagged 3.5% from 2004. That's particularly startling given that 2005 was supposed to be a breakout year, perhaps even trumping the 25% growth seen in 2004. Along with...

Opec rides the demand growth tiger.
February 6, 2006... Opec is increasingly confident of another blistering year for oil demand growth, so it's trying hard to neutralize crude supply as an upside risk to oil prices in 2006. The producer group met last week amid oil prices that were testing $70 per...

Algeria finds new playing field a challenge.
February 6, 2006... The oil and gas industry is playing on an entirely new field in Algeria since ratification last year of a new hydrocarbons law that removed responsibility for awarding and managing upstream contracts from state Sonatrach and gave it to a brand...

Gulf of Mexico M&A market bounces back.
February 6, 2006... Upstream asset deals in the US Gulf of Mexico have not suffered much fallout from the hammering that the region took at the hands of Hurricanes Katrina and Rita. In fact, the pace of merger and acquisition activity has been picking up. The...

Asia cool to threat of Iran crude stoppage.
February 6, 2006... The threat of a major disruption in Iran's crude exports may be sowing fear in oil futures markets, but it doesn't seem to have spooked the crude oil market in Asia. Iran sends most of its crude, over 1.3 million barrels per day, eastwards, but...

Alternative energy--Royal Dutch Shell is increasing its focus on biofuels for transportation and plans to make at least one other alternative energy--hydrogen, wind or next-generation solar technologies--a key business.(GENERAL)
February 6, 2006... ALTERNATIVE ENERGY -- Royal Dutch Shell is increasing its focus on biofuels for transportation and plans to make at least one other alternative energy--hydrogen, wind or next-generation solar technologies--a key business. Having already spent...

Industry restructuring--Petro-Canada has closed the sale of a 17% stake in Syria's Al-Furat Petroleum Co. to a joint venture of China National Petroleum Corp. and India's state-owned Oil and Natural Gas Corp.(GENERAL)
February 6, 2006... INDUSTRY RESTRUCTURING -- Petro-Canada has closed the sale of a 17% stake in Syria's Al-Furat Petroleum Co. to a joint venture of China National Petroleum Corp. and India's state-owned Oil and Natural Gas Corp. The deal was sealed despite US...

Refining--San Antonio-based Valero, the leading US independent refiner with 3.3 million b/d of capacity, reported record earnings for the 10th straight quarter last week.(GENERAL)
February 6, 2006... REFINING -- San Antonio-based Valero, the leading US independent refiner with 3.3 million b/d of capacity, reported record earnings for the 10th straight quarter last week. The high-margin environment led to not only another record quarter, but...

People--former Tourism Minister Hashem al-Hashemi has become Iraq's acting oil minister after Ibrahim Bahr al-Uloum stepped down.(GENERAL)
February 6, 2006... PEOPLE -- Former Tourism Minister Hashem al-Hashemi has become Iraq's acting oil minister after Ibrahim Bahr al-Uloum stepped down. In India, Oil Minister Mani Shankar Aiyar, who advanced the country's international energy strategy, was...

Canada--Devon Energy is drilling a potentially high-impact exploration well in the shallow waters of the Beaufort Sea in Arctic Canada, the first to be drilled in the area for 15 years.(COUNTRIES)
February 6, 2006... CANADA -- Devon Energy is drilling a potentially high-impact exploration well in the shallow waters of the Beaufort Sea in Arctic Canada, the first to be drilled in the area for 15 years. The well is targeting the Paktoa prospect, which has an...

China--crude imports climbed 3.5% last year to an average of 2.55 million b/d, as refiners cut runs to cope with domestic price imbalances and the demand spike subsided after the electricity supply crisis in 2004.(COUNTRIES)
February 6, 2006... CHINA -- Crude imports climbed 3.5% last year to an average of 2.55 million b/d, as refiners cut runs to cope with domestic price imbalances and the demand spike subsided after the electricity supply crisis in 2004 (PIW Jan.9, p3). Imports from...

Colombia--as part of its effort to boost oil production, the National Hydrocarbon Agency (ANH) has approved eight new exploration and production contracts and five preliminary contracts for $38 million.(COUNTRIES)
February 6, 2006... COLOMBIA -- As part of its effort to boost oil production, the National Hydrocarbon Agency (ANH) has approved eight new exploration and production contracts and five preliminary contracts for $38 million. Australia's BHP Billiton signed a $13...

Japan--crude imports edged 0.7% higher in 2005 to an average of 4.23 million b/d, with Saudi Arabia grabbing market share at the expense of the UAE and Iran.(COUNTRIES)
February 6, 2006... JAPAN -- Crude imports edged 0.7% higher in 2005 to an average of 4.23 million b/d, with Saudi Arabia grabbing market share at the expense of the UAE and Iran. Imports from Saudi Arabia surged by 200,000 b/d, or 19%, to an average of 1.23...

Lithuania--the number of bidders for downstream champion Mazeikiu Nafta (MN) has narrowed to three--Anglo-Russian joint venture TNK-BP, Poland's PKN Orlen and Kazakh state Kazmunaigas--after Russia's Lukoil pulled out.(COUNTRIES)
February 6, 2006... LITHUANIA -- The number of bidders for downstream champion Mazeikiu Nafta (MN) has narrowed to three-Anglo-Russian joint venture TNK-BP, Poland's PKN Orlen and Kazakh state Kazmunaigas--after Russia's Lukoil pulled out. Up for grabs is fallen...

Russia--Japanese shareholders Mitsubishi and Mitsui may reduce their stakes in the Royal Dutch Shell-led Sakhalin-2 consortium to make room for state-controlled gas giant Gazprom, which plans to join the Pacific shelf project this year.(COUNTRIES)
February 6, 2006... RUSSIA -- Japanese shareholders Mitsubishi and Mitsui may reduce their stakes in the Royal Dutch Shell-led Sakhalin-2 consortium to make room for state-controlled gas giant Gazprom, which plans to join the Pacific shelf project this year. The...

Russia--rising state-owned oil producer Rosneft is taking control of the country's crude exports via the Caspian Pipeline Consortium (CPC) pipeline, which picks up Russian oil on the way from Kazakhstan to terminals on the Black Sea.(COUNTRIES)
February 6, 2006... RUSSIA -- Rising state-owned oil producer Rosneft is taking control of the country's crude exports via the Caspian Pipeline Consortium (CPC) pipeline, which picks up Russian oil on the way from Kazakhstan to terminals on the Black Sea (p7). PIW...

Saudi Arabia--the Luksar joint venture, which is 80% owned by Russia's Lukoil and 20% owned by state Saudi Aramco, began drilling on Jan. 25 at the Tukhman structure in Area A, located south of the Ghawar oil field in the northern Rub al-Khali (Empty Quarter).(COUNTRIES)
February 6, 2006... SAUDI ARABIA--The Luksar joint venture, which is 80% owned by Russia's Lukoil and 20% owned by state Saudi Aramco, began drilling on Jan. 25 at the Tukhman structure in Area A, located south of the Ghawar oil field in the northern Rub al-Khali...

South Korea--the Ministry of Commerce, Industry and Energy says it expects oil demand to grow by a modest 1.1% this year to 769 million bbl (2.1 million b/d), compared with 1.2% in 2005.(COUNTRIES)
February 6, 2006... SOUTH KOREA -- The Ministry of Commerce, Industry and Energy says it expects oil demand to grow by a modest 1.1% this year to 769 million bbl (2.1 million b/d), compared with 1.2% in 2005. Crude imports are expected to rise by 4.8% to 884...

United Kingdom--Russia's appetite for acquisitions as it exports ever-larger volumes of natural gas to a growing list of European customers is shaking up markets across the continent.(COUNTRIES)
February 6, 2006... UNITED KINGDOM -- Russia's appetite for acquisitions as it exports ever-larger volumes of natural gas to a growing list of European customers is shaking up markets across the continent. Last week, shares in the UK's largest final energy...

US--President George W. Bush's promise in his State of the Union address to end the country's addiction to oil is longer on rhetoric than it is on policy measures.(COUNTRIES)
February 6, 2006... US -- President George W. Bush's promise in his State of the Union address to end the country's addiction to oil is longer on rhetoric than it is on policy measures. In terms of concrete steps to reduce dependence on imported oil, he proposes...

Putin's plan: market forces nationalization.(What's New Around the World)
February 6, 2006... President Vladimir Putin gave a sneak preview last week of his vision for Russia's fast changing oil and gas landscape. Putin's extended statement at an annual meeting with journalists in the Kremlin left little doubt--if there was any...

More exposure.(Marketview)
February 6, 2006... NEW YORK -- Apart from some exceptional volatility, the oil market seemed to show the usual pushing and pulling last week when it handed back the modest price gains from the previous week. But while the key market drivers--geopolitical tension...

US Rockies are soft underbelly of crude market.
February 6, 2006... Unlike the crude oil futures market, which is more sensitive to geopolitics and psychology, the US domestic spot crude market is showing much more weakness, responding to rising inventories and bearish fundamentals. Grade differentials are...

PIW market indicators.(petroleum intelligence weekly)(Illustration)
February 6, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $60.52 $60.12 $57.13 UK Brent (Dated) 65.26 63.87 ...

Saudi lead exposes Mideast Gulf laggards.
February 13, 2006... Saudi Arabia has copious upstream and downstream expansion projects, many of them launched in the past two years of tight global capacity. Saudi Oil Minister Ali Naimi says the issue is deliverability not availability. Yet while the kingdom is...

BP's poor Q4 shouldn't mask bright outlook.
February 13, 2006... The last three months of 2005 were not the greatest quarter ever for BP, as investors discovered last week in a disappointing set of financial results. The main letdowns were in headline earnings, which fell below market expectations, and in...

Economy, oil demand growth trends diverge.
February 13, 2006... Global oil demand growth had been steadily gathering pace since a surprise dip last October but it sprinted ahead again in January. Preliminary data show cold weather and a strong global economy driving demand to a year-on-year gain of 1.7%...

Crude fix for China's product price headache.
February 13, 2006... China's domestic energy pricing structure is a shambles. Last year, the combination of domestic products prices that are kept low by the state with soaring crude prices obliged Beijing to give top refiner Sinopec a $1.24 billion handout to...

Saudis, Exxon question Bush's oil vision.
February 13, 2006... US President George W. Bush's new energy plan doesn't make much sense to two of the biggest players in the global oil business. Bush's audacious proposal to wean the US off foreign sources of oil, particularly Mideast oil, may have won him warm...

Taxing Russian output to a standstill.
February 13, 2006... Russia's crude and condensate production growth could dip to 1.9% this year--down from 2.9% last year and a far cry from the 8% to 10% annual rates docked up regularly in 2000-04. Officials in Moscow, who see Russian output ranging between 9.5...

Pundits divided on oil price risks ahead.
February 13, 2006... Oil prices have gotten off to a blazing start this year, with US benchmark West Texas Intermediate (WTI) flirting with $70 per barrel and trading above $60/bbl consistently. This is reflected in the upward price adjustments for the first...

Formula prices--Saudi Arabia is changing its price terms for March crude exports by widening the discounts for deliveries to the US while tightening the discounts to Europe.(GENERAL)
February 13, 2006... FORMULA PRICES -- Saudi Arabia is changing its price terms for March crude exports by widening the discounts for deliveries to the US while tightening the discounts to Europe. Asian lifters are also having their discounts tightened for Arab...

Futures--the New York Mercantile Exchange (Nymex) is to start offering electronic trading alongside its traditional open-outcry floor trading during the second quarter of 2006, in the latest twist in what has become a protracted battle with its archrival, the IntercontinentalExchange (ICE).(GENERAL)
February 13, 2006... FUTURES -- The New York Mercantile Exchange (Nymex) is to start offering electronic trading alongside its traditional open-outcry floor trading during the second quarter of 2006, in the latest twist in what has become a protracted battle with...

Industry restructuring--the Spanish government approved the hostile $27 billion takeover by Gas Natural of the country's largest power group Endesa, subject to selected divestments.(GENERAL)
February 13, 2006... INDUSTRY RESTRUCTURING -- The Spanish government approved the hostile $27 billion takeover by Gas Natural of the country's largest power group Endesa, subject to selected divestments. Russian independent Russneft is buying 49% of Slovakian...

Mauritania--in a spat that could cloud the start-up of the country's first oil production from the flagship Chinguetti oil field, the government has ratcheted up the rhetoric against its Australian-led developers over a series of contractual amendments agreed by a former oil minister who is now detained on corruption charges.(COUNTRIES)
February 13, 2006... MAURITANIA -- In a spat that could cloud the start-up of the country's first oil production from the flagship Chinguetti oil field, the government has ratcheted up the rhetoric against its Australian-led developers over a series of contractual...

Oman--state-controlled Petroleum Development Oman (PDO) has discovered four new oil fields--two in the north at Ufuq and Dafiq, and two in the southern Sakhiya-South West and Mamour areas.(COUNTRIES)
February 13, 2006... OMAN -- State-controlled Petroleum Development Oman (PDO) has discovered four new oil fields--two in the north at Ufuq and Dafiq, and two in the southern Sakhiya-South West and Mamour areas. A drilling campaign will see up to 16 wells drilled...

Russia--harsh winter conditions took a heavy toll on crude exports in January, lowering seaborne loadings from both the Baltic Sea and the Black Sea.(COUNTRIES)
February 13, 2006... RUSSIA -- Harsh winter conditions took a heavy toll on crude exports in January, lowering seaborne loadings from both the Baltic Sea and the Black Sea. Exports through the Transneft system fell 242,000 b/d from the previous month to 3.385...

Russia--the CFO of Rosneft was ousted last week, casting a pall over the proposed $15 billion IPO in the state-controlled oil producer later this year.(COUNTRIES)
February 13, 2006... RUSSIA -- The CFO of Rosneft was ousted last week, casting a pall over the proposed $15 billion IPO in the state-controlled oil producer later this year. The momentum behind the IPO had slowed recently amid talk of offering shares in two...

Sao Tome--the second licensing in the Joint Development Zone (JDZ) shared with Nigeria hung by a thread last week when US Pioneer Natural Resources became the third major company to pull out of a joint bid with US-listed, Nigerian-owned ERHC Energy.(Brief Article)
February 13, 2006... SAO TOME--The second licensing in the Joint Development Zone (JDZ) shared with Nigeria hung by a thread last week when US Pioneer Natural Resources became the third major company to pull out of a joint bid with US-listed, Nigerian-owned ERHC...

South Korea--refiner S-Oil is considering building a grassroots refinery at a new site that is well placed to serve the Chinese market, confirming the disclosure by Saudi Arabian Oil Minister Ali Naimi that Saudi Aramco--which owns 35% of S-Oil--is looking at the possibility.(COUNTRIES)
February 13, 2006... SOUTH KOREA--Refiner S-Oil is considering building a grassroots refinery at a new site that is well placed to serve the Chinese market, confirming the disclosure by Saudi Arabian Oil Minister Ali Naimi that Saudi Aramco--which owns 35% of...

United States--President George Bush expects $8 billion to be raised through Arctic National Wildlife Refuge (ANWR) bonus bids and lease sales.(COUNTRIES)
February 13, 2006... UNITED STATES--President George Bush expects $8 billion to be raised through Arctic National Wildlife Refuge (ANWR) bonus bids and lease sales. Undaunted by congressional rejection of drilling in ANWR as recently as December, Bush last week...

Vietnam--a major discovery at the Su Tu Trang field in offshore Block 15-1 in the southeast could hold up to 4 Tcf of recoverable wet gas and 300 million bbl of condensate, officials at Korea National Oil Corp. (KNOC) tell PIW.(COUNTRIES)
February 13, 2006... VIETNAM -- a major discovery at the Su Tu Trang field in offshore Block 15-1 in the southeast could hold up to 4 Tcf of recoverable wet gas and 300 million bbl of condensate, officials at Korea National Oil Corp. (KNOC) tell PIW. Discovered in...

Oil profits rise, but hurricanes put damper on Q4 earnings.(What's New Around the World)
February 13, 2006... The final quarter of 2005 was a good--but not outstanding--period for the world's top publicly traded oil companies. For the second quarter in a row, benchmark West Texas Intermediate crude averaged $60 per barrel, which served to boost...

Souring on Brent/BFO.(crude oil prices)
February 13, 2006... LONDON -- Some three years and eight months ago, pricing agency Platts changed its Brent assessment methodology to incorporate UK Forties and Norwegian Oseberg into a new Brent-Forties-Oseberg (BFO) bench mark to replace dated Brent, which...

Traders warm to ICE WTI offering.
February 13, 2006... The challenge by the IntercontinentalExchange (ICE) to the New York Mercantile Exchange (Nymex) for dominance of the West Texas Intermediate (WTI) light, sweet crude oil futures contract got off to a reasonable start, judging by the first few...

PIW market indicators.(prices of crude oil)(Illustration)
February 13, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $58.36 $60.25 $59.07 UK Dated Brent/BFO 61.71 64.30 63.64...

IOCs face paradox of plenty, Eni says.(international oil companies)
February 20, 2006... In a speech as remarkable for its candor as its content, Eni's new CEO Paolo Scaroni told London's Institute of Petroleum last week that, despite high profits, the private sector international oil companies (IOCs) are facing a daunting...

Korea's refining boom runs risk of excess.
February 20, 2006... Growing Asian demand and fat margins have lured S-Oil and Saudi Aramco into considering a new grassroots refinery at Daesan in South Korea. The project would enhance Aramco's crude sales, deepen the Saudis' market penetration in Korea and...

Syria is short of friends to help arrest decline.
February 20, 2006... Syria's oil industry has long been searching for help to reverse its flagging fortunes. It's a quest that hasn't been helped by the international uproar over its alleged involvement in the assassination of former Lebanese Prime Minister Rafiq...

Shine comes off "Golden Age" of refining.
February 20, 2006... Is the 'Golden Age' of refining losing its luster already? US refiners saw stellar earnings in 2005--thanks to downstream constraints that were magnified when Hurricanes Katrina and Rita sent product prices soaring. Their margins have since...

Mid-sized US integrateds set for growth spurt.
February 20, 2006... While US oil giants Chevron, ConocoPhillips and Exxon Mobil are bragging about output growth after years of, at best, flat volumes, the mid-tier of integrated US oil firms has also been quietly gathering steam. Occidental Petroleum is in...

Reserves ideas need to inform investors more.
February 20, 2006... In its recently released study of US reserves reporting policy, Cambridge Energy Research Associates (Cera) called on the US Securities and Exchange Commission (SEC) to adopt new definitions and guidelines that would reflect those already...

Offshore drilling plan draws Florida's ire.
February 20, 2006... President George W. Bush has been talking a lot lately about promoting alternative energy to reduce US dependence on imported oil, but he has not given up on efforts to open more domestic acreage to oil and gas exploration. In its most recent...

Eni's Scaroni: IOCs versus NOCs--a new game?
February 20, 2006... The CEO of Italy's Eni, Paolo Scaroni, sees much that divides international oil companies from newly assertive national oil companies, but also believes there is fertile ground for closer cooperation. This article is an edited version of an...

Drillibg--the sky is the limit for rig rates as Houston-based deepwater driller Transocean inches closer to receiving $500,000 per day for one of its high-end drilling rigs.(GENERAL)
February 20, 2006... DRILLING -- The sky is the limit for rig rates as Houston-based deepwater driller Transocean inches closer to receiving $500,000 per day for one of its high-end drilling rigs. Last week BP extended its contract for the Marianas semisubmersible...

Earnings--French major Total reported adjusted net income, excluding special items, of 3.05 billion [euro] ($3.62 billion) for the fourth quarter of 2005, up 16% from 2.63 billion [euro] for the same quarter in 2004, and toward the lower end of analysts' expectations, which had covered a 3 billion [euro]-3.3 billion [euro] range.(GENERAL)(Brief Article)
February 20, 2006... EARNINGS -- French major Total reported adjusted net income, excluding special items, of 3.05 billion [euro] ($3.62 billion) for the fourth quarter of 2005, up 16% from 2.63 billion [euro] for the same quarter in 2004, and toward the lower end...

Earnings--Australia's top independent producer Woodside Petroleum increased profits by of over 50% in 2005, lifted by its booming LNG business.(GENERAL)
February 20, 2006... EARNINGS -- Australia's top independent producer Woodside Petroleum increased profits by of over 50% in 2005, lifted by its booming LNG business. Net profit before special items--but after tax--came in at A$1.04 billion (US$770 million), 54.5%...

IEA--the International Energy Agency says in its latest monthly Oil Market Report that lower-trending product inventories have the "potential to support prices through to the second half of the year.".(general)
February 20, 2006... IEA -- The International Energy Agency says in its latest monthly Oil Market Report that lower-trending product inventories have the "potential to support prices through to the second half of the year." Product stocks are near the bottom of the...

Mergers & acquisitions--in a reshuffling of North American natural gas gathering, processing and transmission assets, Oneok, Northern Border Partners and TransCanada have restructured the ownership of Northern Border Pipeline in a complex set of deals valued at nearly $3.5 billion.(GENERAL)
February 20, 2006... MERGERS & ACQUISTIONS -- In a reshuffling of North American natural gas gathering, processing and transmission assets, Oneok, Northern Border Partners and TransCanada have restructured the ownership of Northern Border Pipeline in a complex set...

Industry restructuring--last year saw a near record number of transactions in the global downstream sector, with 97 deals worth a combined $61.7 billion, according to data from John S. Herold.(general)(Brief Article)
February 20, 2006... INDUSTRY RESTRUCTURING -- Last year saw a near record number of transactions in the global downstream sector, with 97 deals worth a combined $61.7 billion, according to data from John S. Herold. Activity was heaviest in refining and...

People--Sufian Alaw, formerly a deputy minister of electricity, was appointed oil minister of Syria, replacing Ibrahim Haddad (p2). In Yemen, Khaled Mahfoudh Bahaj has replaced Rashid Baraba as oil minister.(GENERAL)
February 20, 2006... PEOPLE -- Sufian Alaw, formerly a deputy minister of electricity, was appointed oil minister of Syria, replacing Ibrahim Haddad (p2). In Yemen, Khaled Mahfoudh Bahaj has replaced Rashid Baraba as oil minister. Raymond Wilcox is to become...

Bolivia--the threat of nationalization hanging over international oil companies operating in the country has not deterred Brazilian state Petrobras from announcing plans to invest about $5 billion.(COUNTRIES)
February 20, 2006... BOLIVIA -- The threat of nationalization hanging over international oil companies operating in the country has not deterred Brazilian state Petrobras from announcing plans to invest about $5 billion. Petrobras said the investment program would...

Chile--the UK's BG Group won a bid to build and supply an LNG receiving plant, a project that is expected to change the country's energy matrix.(COUNTRIES)
February 20, 2006... CHILE -- The UK's BG Group won a bid to build and supply an LNG receiving plant, a project that is expected to change the country's energy matrix. It currently imports 90% of its gas consumption--some 775 MMcf/d--from Argentina. But in the past...

China--the future is green if plans to boost the role of renewables to 20% of energy consumption by 2020 from 7% currently can be met.(COUNTRIES)
February 20, 2006... CHINA -- The future is green if plans to boost the role of renewables to 20% of energy consumption by 2020 from 7% currently can be met. The National Development and Reform Commission (NDRC) is targeting coal gas and renewables such as biomass...

Libya--a consortium led by Spanish Repsol YPF has made its seventh consecutive oil discovery in Block NC 186 in the Murzuq Basin.(COUNTRIES)
February 20, 2006... LIBYA -- A consortium led by Spanish Repsol YPF has made its seventh consecutive oil discovery in Block NC 186 in the Murzuq Basin. The latest well pumped around 2,300 boe/d during tests and is close to two previous finds in the block that had...

Lithuania--Moscow is playing hardball to ensure that a Russian company wins the battle to take over local oil company Mazeikiu Nafta (MN).(COUNTRIES)
February 20, 2006... LITHUANIA -- Moscow is playing hardball to ensure that a Russian company wins the battle to take over local oil company Mazeikiu Nafta (MN). In the latest twist, Russia's national pipeline operator Transneft has rejected a request from...

Nigeria--Chevron is pulling out of the planned Brass LNG project, industry sources confirm to PIW, leaving ConocoPhillips, Italy's Eni and state Nigerian National Petroleum Corp. (NNPC) as partners in the proposed 10 million ton/yr (1.35 Bcf/d) venture.(COUNTRIES)
February 20, 2006... NIGERIA -- Chevron is pulling out of the planned Brass LNG project, industry sources confirm to PIW, leaving ConocoPhillips, Italy's Eni and state Nigerian National Petroleum Corp. (NNPC) as partners in the proposed 10 million ton/yr (1.35...

Saudi Arabia--state oil giant Saudi Aramco has chosen France's Total as its proposed partner in a planned new export refinery at Jubail, sources tell PIW (p1).(COUNTRIES)
February 20, 2006... SAUDI ARABIA -- State oil giant Saudi Aramco has chosen France's Total as its proposed partner in a planned new export refinery at Jubail, sources tell PIW (p1). Total was chosen from a shortlist for two new refineries--at Yanbu and...

United Kingdom--Calgary-based Talisman Energy is in talks with Royal Dutch Shell and Exxon Mobil to purchase their combined interests in two mature producing fields in the central North Sea.(COUNTRIES)
February 20, 2006... UNITED KINGDOM--Calgary-based Talisman Energy is in talks with Royal Dutch Shell and Exxon Mobil to purchase their combined interests in two mature producing fields in the central North Sea. Talisman would pick up the remaining 85.8% interest...

Global oil supply continues to climb.(What's New Around the World)
February 20, 2006... Despite Opec output easing off and a weather-related stumble in production from the former Soviet Union, global oil supply hit nearly 85.6 million b/d in January, according to soundings by PIW (PIW Jan.16,p5). Opec crude production slipped by...

Skewed crude.(Marketview)
February 20, 2006... SINGAPORE -- Asia's refiners are struggling to come to grips with a set of strong fundamental and technical forces that are twisting crude values out of shape. Asia is about to launch into a heavy round of refinery maintenance, weakening...

J&S rides out the storm in Poland.
February 20, 2006... J&S, the trading group that accounts for over 50% of Poland's crude oil imports and 30% of its oil product imports, says it has nothing to fear after dozens of Polish security officials entered its offices in Warsaw last week and seized...

PIW market indicators.(Petroleum Intelligence Weekly)(Illustration)
February 20, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $55.51 $58.14 $60.12 UK Brent (Dated) 58.36 61.22 63.87...

ROACE just part of problem for big oil.(return on average capital employed)
February 27, 2006... This month's IP Week speech by Eni chief executive Paolo Scaroni garnered attention for its conclusion that an obsession with short-term financial targets--particularly return on average capital employed (ROACE)--was to blame for the oil...

Parent power takes CNOOC downstream.
February 27, 2006... The parent company of China's listed upstream explorer CNOOC Ltd. is expanding downstream and diversifying in a dramatic fashion--not just into oil refining but into retail, petrochemicals, natural gas distribution and power generation as well....

Qatar shakes up its gas sales practice.
February 27, 2006... Qatar is in the advanced stages of creating an independent marketing entity to oversee sales of petroleum and gas-related products. Initially, it is to take over from state Qatar Petroleum (QP) the rights to market all products from the...

Merged giants get stuck on upstream ladder.(Chevron Corp., ConocoPhillips)
February 27, 2006... After examining their lack of success in growing oil and gas reserves internally, it's not hard to see why US majors Chevron and ConocoPhillips opted to make expensive upstream acquisitions recently. The two companies became industry giants in...

Biofuel will grow, but it's no panacea.
February 27, 2006... High oil prices, concerns about supply security and for some, environmental considerations, look set to fuel a boom in the use of biofuels such as ethanol and biodiesel in the coming decade, with double-digit annual global demand growth...

Woodside aims to dominate Australian LNG.
February 27, 2006... By 2015 Australia could have seven separate LNG projects up and running, fed by massive natural gas deposits off its northwestern coast and in the Timor Sea. The majority of these ventures will be operated not by a supermajor but by Woodside...

Front exposure loses appeal to back curves.
February 27, 2006... Have the long-only commodity funds become the victims of their own success? Their heavy presence in the front contracts on regulated energy markets, such as the New York Mercantile Exchange (Nymex), leads some observers to think so. These...

Dissecting crude oil prices: a layered approach.
February 27, 2006... The unprecedented rise in oil prices over the last couple of years has provoked all manner of explanations. But there have been few attempts to analyze or attribute relative weight to the multiple drivers behind it. In this contribution to PIW,...

Corporate--the board of directors at Russia's Rosneft last week approved the company's share listing in Moscow, putting the state producer's initial public offering back on track.(GENERAL)
February 27, 2006... CORPORATE--The board of directors at Russia's Rosneft last week approved the company's share listing in Moscow, putting the state producer's initial public offering back on track. Rosneft has completed the prospectus for its $20 billion IPO and...