Petroleum Intelligence Weekly articles from January 2004

Petroleum Intelligence Weekly archives from January 2004

Russia leans closer to Opec goals.(russia joins Organization of Petroleum Exporting Countries' membership)
January 5, 2004... In a big change that will have profound implications for the oil market, look to Russia to act much more like an Opec member this year. The major changes in Russia over the last few months mean that the Kremlin is taking a much closer interest...

BP, Shell face uphill equity race.(British Petroleum Company PLC, Royal Dutch-Shell Group of Cos.)
January 5, 2004... Rising stock markets did little to help Europe's two biggest oil companies in 2003, and the fear for BP and Royal Dutch/Shell this year is that a sustained global recovery in equities will encourage investors to continue shunning defensive old...

Smaller German oil market tilts to diesel.
January 5, 2004... It still seems hard to fathom that energy demand in the world's third largest economy is shrinking. While niche sectors will retain their capacity to surprise, the outlook for Germany, Western Europe's largest oil consuming country, is for...

There are limits to China's oil demand.
January 5, 2004... Chinese oil demand is reckoned to have grown by 10% in 2003, adding around 500,000 barrels per day to global consumption. If China maintain--this rate, it will be consuming over 10 million b/d by 2010, boosting global oil demand by more than...

Russian oils aim for further expansion.
January 5, 2004... Russia's oil production growth spurt is going to slow down in 2004 but could still soar to a new post-Soviet record of 8.65 million barrels per day in the first quuarter of the year, if Energy Ministry forecasts prove to be accurate. Analysts...

South Africa's refiners run green gauntlet.
January 5, 2004... South Africa's oil refiners are braced for a difficult new year as they deal with the biggest ever shake up of the sector, sub-Saharan Africa's largest. Refiners face the challenge of upgrading plants to comply with new legislation to bring the...

Remote areas extend horizon in US Gulf.(petroleum exploration)
January 5, 2004... Eye-popping discoveries may not be as common as they were a few years ago, but deepwater exploration and development is still licking over at a healthy pace in the US Gulf of Mexico. The California-based duo of Unocal and Chevron Texaco grabbed...

Corporate -- Russia's Alfa Group is buying up to 50% of Germany's largest refining group Ruhr Oel from state Petroleos de Venezuela (PDV).(General)(Brief Article)
January 5, 2004... CORPORATE -- Russia's Alfa Group is buying up to 50% of Germany's largest refining group Ruhr Oel from state Petroleos de Venezuela (PDV). No financial terms were disclosed for the deal which analysts value at between $600 million and $900...

Corporate -- Royal Dutch/Shell expected proceeds from divestments in 2003 would top $4 billion in cash, well ahead of its initial forecast of around $2 billion.(General)(Royal Dutch-Shell Group of Cos.)(Brief Article)
January 5, 2004... CORPORATE -- Royal Dutch/Shell expected proceeds from divestments in 2003 would top $4 .billion in cash, well ahead of its initial forecast of around $2 billion. Its fourth quarter results would likely include a net charge of around $820...

Angola -- Royal Dutch/Shell is preparing to sell at least part of its 50% stake in the BP-led Greater Plutonio offshore development, industry sources tell PIW.(Countries)(Royal Dutch-Shell Group of Cos., Petroleum Intelligence Weekly)(Brief Article)
January 5, 2004... ANGOLA -- Royal Dutch/Shell is preparing to sell at least part of its 50% stake in the BP-led Greater Plutonio offshore development, industry sources tell PIW. Negotiations with state Sonangol to obtain final project approval for the Block 18...

China -- Royal Dutch/Shell is considering building a refinery to supply feedstock to its Nanhai petrochemicals plant being built in Guangdong province.(Countries)(Royal Dutch-Shell Group of Cos., China National Offshore Oil Corp. refinery contracts)(Brief Article)
January 5, 2004... CHINA -- Royal Dutch/Shell is considering building a refinery to supply feedstock to its Nanhai petrochemicals plant being built in Guangdong province. China National Offshore Oil Corp., the government-owned parent of CNOOC Ltd., invited Shell...

India -- this year should see the sale by state oil and gas companies of equity that they hold in each other.(Countries)(Gaff)(Brief Article)
January 5, 2004... INDIA -- This year should see the sale by state oil and gas companies of equity that they hold in each other. At stake are cross shareholdings held by Indian Oil Corp. (IOC), Oil and Natural Gas Corp. (ONGC) and state gas transmission company...

Indonesia -- at the same time as the BP-led Tangguh LNG project bagged a new sales deal, the country's two existing LNG plants--at Aceh and Bontang--are struggling to produce enough LNG to meet their customer commitments.(Countries)(British Petroleum Company PLC)(Brief Article)
January 5, 2004... INDONESIA -- At the same time as the BP-led Tangguh LNG project bagged a new sales deal, the country's two existing LNG plants--at Aceh and Bontang--are struggling to produce enough LNG to meet their customer commitments. State Pertamina is...

Iraq -- Russia is dangling the prospect of debt forgiveness in exchange for reconstruction contracts in general, and a possible restoration of the Lukoil contract to expand the West Qurna field in particular.(Countries)(Brief Article)
January 5, 2004... IRAQ -- Russia is dancing the prospect of debt forgiveness in exchange for reconstruction contracts in general, and a possible restoration of the Lukoil contract to expand the West Qurna field in particular. Moscow could agree a significant...

Iraq -- the Oil Ministry struck agreements with Iran and Syria to exchange crude oil for imports of oil products.(Countries)(Brief Article)
January 5, 2004... IRAQ -- The Oil Ministry struck agreements with Iran and Syria to exchange crude oil for imports of oil products. Oil Minister Ibrahim Bahr al-Uloum said that 500,000 liters per day of gasoline would be coming from Syria and Iran would send 2...

Japan -- mild weather lowered crude imports in the latter part of 2003, but the year through November showed solid gains in import volumes.(Countries)(Brief Article)
January 5, 2004... Japan -- Mild weather lowered crude imports in the latter part of 2003, but the year through November showed solid gains in import volumes. November imports plunged 13.5% to an average of 3.72 million b/d, down 580,000 b/d from the same month...

Libya -- US companies can expect a warm welcome when they are able to return but must also be ready for keen competition from other international oil companies, Prime Minister Shukri Ghanem tells PIW.(Countries)(Petroleum Intelligence Weekly)(Brief Article)
January 5, 2004... Libya -- US companies can expect a warm welcome when they are able to return but must also be ready for keen competition from other international oil companies, Prime Minister Shukri Ghanem tells PIW. "We hope the [US] oil companies will he...

Mauritania -- a group of Australian companies prospecting offshore struck a 300 meter gross interval containing gas-filled sands and "good oil shows" with their latest exploration well--the Woodside-operated Pelican-1.(Counties)(Brief Article)
January 5, 2004... MAURITANIA -- A group of Australian companies prospecting offshore struck a 300 meter gross interval containing gas-filled sands and "good oil shows" with their latest exploration well--the Woodside-operated Pelican-1. Woodside, which is...

Mexico -- crude output fell for the third consecutive month in November, leaving state Pemex shy of its goal of 3.5 million b/d in 2003.(Countries)(Petroleos Mexicanos)(Brief Article)
January 5, 2004... MEXICO -- Crude output fell for the third consecutive month in November, leaving state Pemex shy of its goal of 3.5 million b/d in 2003. Production averaged 3.38 million b/d, while natural gas production averaged 4.526 Bcf/d, down from 3.398...

Nigeria -- the local unit of Royal Dutch/Shell restarted two more oil flow stations closed since ethnic violence in the Niger Delta in March.(Countries)(Royal Dutch-Shell Group of Cos.)(Brief Article)
January 5, 2004... NIGERIA -- The local unit of Royal Dutch/Shell restarted two more oil flow stations closed since ethnic violence in the Niger Delta in March. Shell resumed production at the oil platforms in Otumara and Escravus Beach but another facility at...

Russia -- in what could prove to be a fatal blow to the embattled oil company, the Tax Ministry has formally fined Yukos $3.3 billion for tax avoidance in 2000.(Countries)(YUKOS Oil Co.)(Brief Article)
January 5, 2004... RUSSIA -- In what could prove to be a fatal blow to the embattled oil company, the Tax Ministry has formally fined Yukos $3.3 billion for tax avoidance in 2000. Yukos will challenge the fine, or it may be able to pay the sum out of revenues....

Russia -- Moscow has penciled in an ambitious 185,000-b/d increase in the January port loading schedules from the previous month.(Countries)(Brief Article)
January 5, 2004... RUSSIA -- Moscow has penciled in an ambitious 185,000-bid increase in the January port loading schedules from the previous month. However, winter storms and bad congestion in the Turkish Straits will probably restrict loadings to last month's...

Russia -- Royal Dutch/Shell formally regained its share in the Upper Salym field in West Siberia, which has been developed for more than a year by local Evikhon on a sole risk basis.(Countries)(Shell Salym Development)(Brief Article)
January 5, 2004... RUSSIA -- Royal Dutch/Shell formally regained its share in the Upper Salym field in West Siberia, which has been developed for more than a year by local Evikhon on a sole risk basis. Evikhon, owned by UK-registered Sibir Energy and Shell's...

Saudi Arabia -- in a pioneering use of a development model that the government wants to see applied across the electricity sector.(Countries)(Brief Article)
January 5, 2004... SAUDI ARABIA -- In a pioneering use of a development model that the government wants to see applied across the electricity sector, Saudi Aramco signed agreements with the UK's International Power (IP) and local Saudi Oger to develop, own and...

South Korea -- the country's biggest refiner, SK Corp., and supermajor BP are to invest jointly in the country's first private power plant.(Countries)(British Petroleum Company PLC)(Brief Article)
January 5, 2004... SOUTH KOREA -- The country's biggest refiner, SK Corp., and supermajor BP are to invest jointly in the country's first private power plant. BP will buy new shares issued by unlisted SK Power Co., which will amount to a 35% stake in the plant....

South Korea -- crude imports jumped nearly 24% to 2.64 million b/d in November as refiners sought to maximize throughput ahead of the winter and before a 40% hike in the tax levied on imports comes into effect this month.(Countries)(Brief Article)
January 5, 2004... SOUTH KOREA -- Crude imports jumped nearly 24% to 2.64 million b/d in November as refiners sought to maximize throughput ahead of the winter and before a 40% hike in the tax levied on imports comes into effect this month. Imports were over...

Singapore swings.(Marketview)(fuel oil demand)
January 5, 2004... SINGAPORE -- Red-hot demand for fuel oil from China and Japan, surging Chinese intake of naphtha and a string of refinery closures around Asia pushed Singapore's complex refinery margins out to a seven-year high in 2003. But refiners in...

PIW market indicators.(Petroleum Intelligence Weekly)(Illustration)
January 5, 2004... Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $29.53 $29.81 $29.36 UK Brent (Dated) 29.70 29.51 30.14 UK B-wave ([dagger]) ...

China's hottest player catches a chill.
January 12, 2004... Emerging market darling China National Offshore Oil Company Ltd. (CNOOC) released a bundle of bad news over the Christmas holiday period, outlining production problems and cutting its output targets for 2004. After nearly three years of...

The myth of lost US gas demand.
January 12, 2004... For a second consecutive winter, North American natural gas markets are being whip-sawed by volatile price spikes, though most analysts are confounded as to what exactly is causing the panic. When prices were high a year ago the culprit was...

Comeback in Argentina still cautious.
January 12, 2004... Argentina may be on the mend financially, but activity in its energy sector is still marred by the legacy of the 2001 economic implosion. The largest oil and gas producer, Spanish Repsol YPF, is spending to keep production stable but cutting...

Caspian faces long climb to the top.
January 12, 2004... When the president of Kazakhstan, Nursultan Nazarbaev, called recently for Caspian oil producers to create an organization to compete with Opec, he was signaling the enormous impact that the region could have on the world energy map. But while...

Canada's oil sands take aim at costs.
January 12, 2004... Less than a decade ago, Canada's oil sands still were viewed as a somewhat exotic form of hydrocarbon that might be useful at some far off date, when oil prices soared and conventional sources were depleted. Now, the oil sands of northern...

Global oil supply look very adequate.
January 12, 2004... Opec knows it has got a good thing going. Fearful of a spring thaw in prices, the producers' club is maintaining a relatively tight rein on production even though prices are well above the top end of the $22-$28 per barrel target range for its...

Corporate--shares in Calgary-based Canadian Natural Resources (CNR) hit a 52-week high last week on market rumors that French Total was considering a bid.(General)
January 12, 2004... CORPORATE--Shares in Calgary-based Canadian Natural Resources (CNR) hit a 52-week high last week on market rumors that French Total was considering a bid. Total and CNR aren't commenting, but analysts see a buyout or partnership fitting well...

Corporate--Medco of Indonesia is attempting to ramp up its gas production in that country and go international with a A$326 million (US$239 million) bid to acquire Australia's Novus Petroleum, which rejected the initial offer.(General)
January 12, 2004... CORPORATE--Medco of Indonesia is attempting to ramp up its gas production in that country and go international with a A$326 million (US$239 million) bid to acquire Australia's Novus Petroleum, which rejected the initial offer. Novus owns 25% of...

Formula prices--with the exception of lighter grades heading for the US, Saudi Arabia lowered its February formula prices for all grades to all destinations in anticipation of slower demand come the spring.(General)
January 12, 2004... FORMULA PRICES--With the exception of lighter grades heading for the US, Saudi Arabia lowered its February formula prices for all grades to all destinations in anticipation of slower demand come the spring. Cargoes lifted in February will...

Azerbaijan--Russia is flexing its muscles by demanding that the Azeris sign a 15-year contract to pump crude through the Baku-Novorossiysk pipeline in a transparent attempt to secure its role as a transit corridor for Caspian crude to world markets.(Countries)
January 12, 2004... AZERBAIJAN -- Russia is flexing its muscles by demanding that the Azeris sign a 15-year contract to pump crude through the Baku-Novorossiysk pipeline in a transparent attempt to secure its role as a transit corridor for Caspian crude to world...

Ecuador--Petroecuador plans to launch new Amazon tenders in January or February, and has pushed the deadline for its Oriente fields tender back two months to Mar. 23 as bidders want more time for technical and economic analysis, and further site visits (PIW Dec.15,p6).(Countries)
January 12, 2004... ECUADOR -- Petroecuador plans to launch new Amazon tenders in January or February, and has pushed the deadline for its Oriente fields tender back two months to Mar. 23 as bidders want more time for technical and economic analysis, and further...

Colombia--exploration activity picked up in 2003, although there was no big find to counter a persistent production slide.(Countries)
January 12, 2004... COLOMBIA -- Exploration activity picked up in 2003, although there was no big find to counter a persistent production slide. State firm Ecopetrol estimates that production will average 520,000 b/d in 2004, down from 545,421 b/d in the first...

Germany--gasoline sales in Western Europe's largest oil market fell by 5.5% to 598,500 b/d in 2003 and diesel was down by 2.9% to 571,000 b/d.(Countries)
January 12, 2004... GERMANY -- Gasoline sales in Western Europe's largest oil market fell by 5.5% to 598,500 b/d in 2003 and diesel was down by 2.9% to 571,000 b/d, according to provisional estimates from Exxon Mobil which show jet fuel sales up by 1.6% to 168,000...

Greece--Athens last month signed a final agreement to purchase 750 MMcm/yr (72.5 MMcf/d) of Azeri gas from Turkey over a 15-year period, building on a March 2002 memorandum of understanding with Ankara.(Countries)
January 12, 2004... GREECE -- Athens last month signed a final agreement to purchase 750 MMcm/yr (72.5 MMcf/d) of Azeri gas from Turkey over a 15-year period, building on a March 2002 memorandum of understanding with Ankara. Both countries aim to become transit...

Indonesia--Japanese Mitsui's plan to buy into the BP-led Tangguh LNG project is being preempted by existing shareholders.(Countries)
January 12, 2004... INDONESIA -- Japanese Mitsui's plan to buy into the BP-led Tangguh LNG project is being preempted by existing shareholders. LNG Japan, a joint venture of Sumitomo and Nissho Iwai, and China National Offshore Oil Corp. (CNOOC) are exercising...

Iran--Tehran is hoping for a swift conclusion to negotiations with Japan on the planned $2 billion development of part of the giant onshore Azadegan field, which looked to be on the point of collapse (PIW Dec.15,p2).(Countries)
January 12, 2004... IRAN -- Tehran is hoping for a swift conclusion to negotiations with Japan on the planned $2 billion development of part of the giant onshore Azadegan field, which looked to be on the point of collapse (PIW Dec.15,p2). The recent decision to...

Iraq--a US military fuel procurement agency will take over importing and distributing oil products, ending a controversial deal with oil service giant Halliburton's KBR subsidiary that was criticized for overcharging the US government.(Countries)
January 12, 2004... IRAQ -- A US military fuel procurement agency will take over importing and distributing oil products, ending a controversial deal with oil service giant Halliburton's KBR subsidiary that was criticized for overcharging the US government. The...

Iraq--affected by end-of-month weather delays, oil exports from the Basrah Oil Terminal in the Mideast Gulf edged up to 1.58 million b/d for the month of December from November's postwar record of 1.56 million b/d.(Countries)
January 12, 2004... IRAQ -- Affected by end-of-month weather delays, oil exports from the Basrah Oil Terminal in the Mideast Gulf edged up to 1.58 million b/d for the month of December from November's postwar record of 1.56 million b/d. A total of 31 cargoes,...

Libya--US President George W. Bush renewed US sanctions but held out hopes for improving relations that could enable US oil companies to return to the country.(Countries)
January 12, 2004... LIBYA -- US President George W. Bush renewed US sanctions but held out hopes for improving relations that could enable US oil companies to return to the country. The renewal was expected (PIW Jan.5,p6). Even as the US announced an agreement...

Malaysia--a partnership of state Petronas and Royal Dutch/Shell discovered 200 Bcf of gas in Block PM 301 offshore peninsular Malaysia, according to their joint venture company, CS Mutiara Petroleum.(Countries)
January 12, 2004... MALAYSIA -- A partnership of state Petronas and Royal Dutch/Shell discovered 200 Bcf of gas in Block PM 301 offshore peninsular Malaysia, according to their joint venture company, CS Mutiara Petroleum. The Bunga Kamelia-1 well, spudded in early...

Mauritania--Australia's Woodside and the UK's Premier Oil have declared the Chinguetti offshore oil field to be commercial and will shortly submit a development plan to the government.(Countries)
January 12, 2004... MAURITANIA -- Australia's Woodside and the UK's Premier Oil have declared the Chinguetti offshore oil field to be commercial and will shortly submit a development plan to the government. First oil is planned for late 2005 or early 2006....

Russia--Royal Dutch/Shell is planning to invest $3 billion in projects in 2004, reaffirming its confidence in operating without a strong local partner.(Countries)
January 12, 2004... RUSSIA -- Royal Dutch/Shell is planning to invest $3 billion in projects in 2004, reaffirming its confidence in operating without a strong local partner. Some $2.8 billion is to be plowed into Sakhalin-2 in the Russian Pacific shelf under the...

Singapore--BP is selling its retail networks in Singapore and Malaysia, possibly dangling them as a sweetener for a potential buyer of its one-third stake in Singapore Refining Co. (SRC).(Countries)
January 12, 2004... SINGAPORE -- BP is selling its retail networks in Singapore and Malaysia, possibly dangling them as a sweetener for a potential buyer of its one-third stake in Singapore Refining Co. (SRC). Up for grabs is 70% of BP Malaysia and 100% of BP...

United States--BP has joined the push to explore the remote Alaminos Canyon area of the deepwater US Gulf of Mexico, filing plans to drill up to five wells on its Diamondback prospect.(Countries)
January 12, 2004... UNITED STATES -- BP has joined the push to explore the remote Alaminos Canyon area of the deepwater US Gulf of Mexico, filing plans to drill up to five wells on its Diamondback prospect. Diamondback lies some 45 miles east of Great White, a...

Stocks and sensibility.(Marketview)
January 12, 2004... NEW YORK -- Another, albeit small, crude oil stockdraw in the US last week pulled commercial inventories down to 269 million bbl, their lowest level since 1975. A spooked petroleum futures market labeled this of major psychological...

IPE hits new highs, still cool on ICE.(International Petroleum Exchange)
January 12, 2004... London's International Petroleum Exchange (IPE) saw record trading volumes for the sixth successive year in 2003, with oil and gas contract volumes up 9.5% to 33.34 million lots. The news revived speculation that IPE shareholders--unhappy with...

PIW market indicators.(Illustration)
January 12, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $30.14 $29.53 $30.26 UK Brent (Dated) 31.21 29.67 30.72 UK...

Is Shell really the only sinner?
January 19, 2004... Royal Dutch/Shell's bombshell announcement on Jan. 9 that it overbooked proven reserves by 3.9 billion barrels of oil equivalent does not necessarily imply that other oil companies are guilty of the same sin. It's, possible then are other...

PDV plans to go it alone.(Petroleos de Venezuela)
January 19, 2004... State oil giant Petroleos de Venezuela (PDV) is promising capital investment of a whopping $35.4 billion from 2004-09 but keeping mum about the details for the moment. What is clear is that foreign investors are unlikely to see much of the...

US Apache in fine fettle at 50.
January 19, 2004... Houston-based Apache Corp. is in fine fettle as it celebrates its 50th year in the oil and gas business. The company's stock underwent a two-for-one split last week after surging 42% in 2003, a performance that far surpassed that of most other...

Supermajors lag in corporate governance.
January 19, 2004... Supermajors Exxon Mobil, BP and Royal Dutch/Shell may have a clear commercial lead over their peers but their performance in terms of best practice in corporate governance is less stellar. The surprise finding of a survey of the 20 largest...

India offers hope to LNG pioneers.
January 19, 2004... India has proved a fickle and frustrating market for natural gas developers, who have revised down or scrapped countless big schemes over the years. Times look to be changing at long last. This month will see the start of liquefied natural gas...

Rising output cuts cost of oil sands.
January 19, 2004... Canadian oil sands expansion and newbuild projects over the past couple of years have taught some very expensive lessons. Massive cost overruns on the expansions of Suncor and Syncrude and the newly built Royal Dutch/Shell Group-led...

CEO Farris extends US Apache's global reach.(Steve Farris)(Interview)
January 19, 2004... Until the early 1990s Apache's operations were limited to the US. Since then the Houston-based independent has established strong footholds in Western Australia, Egypt and Canada. The UK North Sea followed last year as the result of a $630...

Corporate--BP is netting a profit, including past dividends, of just over $1.2 billion from the sale of its 2% stake in PetroChina.(General)
January 19, 2004... CORPORATE--BP is netting a profit, including past dividends, of just over $1.2 billion from the sale of its 2% stake in PetroChina. BP could have sold out at the top of the market. PetroChina's share price almost tripled last year, hiking its...

Industry restructuring--Motiva Enterprises, the US refining venture of Royal Dutch/Shell and Saudi Aramco, is selling its 180,000 b/d Delaware City refinery to US independent refiner Premcor.(General)
January 19, 2004... INDUSTRY RESTRUCTURING--Motiva Enterprises, the US refining venture of Royal Dutch/Shell and Saudi Aramco, is selling its 180,000 b/d Delaware City refinery to US independent refiner Premcor. The deal is priced at around $800 million, plus...

Angola -- State oil company Sonangol broke laws requiring it to deposit all oil revenues with the central bank and passed more than $2 billion through "other" accounts, according to a new study by Human Rights Watch.(Countries)
January 19, 2004... ANGOLA -- State oil company Sonangol broke laws requiring it to deposit all oil revenues with the central bank and passed more than $2 billion through "other" accounts, according to a new study by Human Rights Watch. Among a catalog of...

Austria -- following a $255 million upgrade, OMV's Schwechat refinery near Vienna began supplying only sulfur-free motor fuels at the New Year.(Countries)
January 19, 2004... AUSTRIA -- Following a $255 million upgrade, OMV's Schwechat refinery near Vienna began supplying only sulfur-free motor fuels at the New Year. OMV is the first company to supply all its local filling stations with sulfur-free (less than 10...

Brazil -- Domestic crude production by state-controlled Petrobras rose 2.3% in 2003, averaging 1.54 million b/d, slightly off its goal of 1.55 million bid.(Countries)
January 19, 2004... BRAZIL -- Domestic crude production by state-controlled Petrobras rose 2.3% in 2003, averaging 1.54 million b/d, slightly off its goal of 1.55 million bid. Domestic gas production fell 0.5% on year to 1.5 Bcf/d. A June outage at the Marlim...

Canada -- falling natural gas production is adding to the fire under US gas prices as rising domestic demand cuts into the exportable surplus (PIW Jan.12,p1).(Countries)
January 19, 2004... CANADA -- Falling natural gas production is adding to the fire under US gas prices as rising domestic demand cuts into the exportable surplus (PIW Jan.12,pl). Gas output in October, although advancing from September, was 9.3% below October...

China -- the deadly natural gas explosion near Chongqing late last month could claim the head of the top executive at China National Petroleum Corp. (CNPC), the country's biggest oil company.(Countries)
January 19, 2004... CHINA -- The deadly natural gas explosion near Chongqing late last month could claim the head of the top executive at China National Petroleum Corp. (CNPC), the country's biggest oil company. CNPC is being blamed for the accident that claimed...

Iraq -- the US Army requires some 8.3 million bbl of gasoline and other petroleum products between Apr. 1 and Jun. 30 for local civilian distribution, according to a presolicitation notice from the Defense Energy Support Center (DESC).(Countries)
January 19, 2004... IRAQ -- The US Army requires some 8.3 million bbl of gasoline and other petroleum products between Apr. 1 and Jun. 30 for local civilian distribution, according to a presolicitation notice from the Defense Energy Support Center (DESC). The need...

Kazakhstan -- crude production broke through the 1 million b/d mark for the first time in 2003, as the Central Asian republic's oil and gas industry enjoyed a bumper year.(Countries)
January 19, 2004... KAZAKHSTAN -- Crude production broke through the 1 million b/d mark for the first time in 2003, as the Central Asian republic's oil and gas industry enjoyed a bumper year. Crude oil and condensate production rose 8.6% to 1.03 million b/d from...

Norway -- oil production in 2003 fell to 2.86 million bid from 3 million b/d in 2002, but higher gas output boosted total hydrocarbons output to a new record, according to the Norwegian Petroleum Directorate.(Countries)
January 19, 2004... NORWAY -- Oil production in 2003 fell to 2.86 million bid from 3 million bid in 2002, but higher gas output boosted total hydrocarbons output to a new record, according to the Norwegian Petroleum Directorate. Natural gas sales rose 10% from the...

Qatar -- Spain's Gas Natural struck a deal to buy 2 Bcm/yr (1.45 million tons/yr) of LNG over 20 years from Qatargas.(Countries)
January 19, 2004... QATAR -- Spain's Gas Natural struck a deal to buy 2 Bcm/yr (1.45 million tons/yr) of LNG over 20 years from Qatargas. Deliveries will start in January 2005. The two companies also agreed to extend two existing medium-term deals expiring in 2007...

Russia -- in a coup for Russian producers seeking downstream outlets for their crude exports, Tatneft won a tender for a 65.76% stake in Turkish refiner Tupras.(Countries)
January 19, 2004... RUSSIA -- In a coup for Russian producers seeking downstream outlets for their crude exports, Tatneft won a tender for a 65.76% stake in Turkish refiner Tupras. Tatneft and Turkish partner Zorlu Holding bid $1.3 billion on Jan. 13, despite...

Sudan -- India's Oil and Natural Gas Corp. (ONGC) is offering state Sudapet small equity stakes in two blocks for no charge, as payback for its earlier assistance in securing upstream interests.(Countries)
January 19, 2004... SUDAN -- India's Oil and Natural Gas Corp. (ONGC) is offering state Sudapet small equity stakes in two blocks for no charge, as payback for its earlier assistance in securing upstream interests. ONGC is offering 2.5% stakes in each of Blocks 5A...

UAE -- Dolphin Energy Ltd. (DEL), the Abu Dhabi-led joint venture that includes Total and Occidental, has awarded Japan's JGC a $1.6 billion contract for the engineering and construction of a natural gas processing and compression plant at Ras Laffan in Qatar which is a key part of its $3.5 billion project to import up to 2 Bcf/d of Qatari gas from 2006.(Countries)
January 19, 2004... UAE -- Dolphin Energy Ltd. (DEL), the Abu Dhabi-led joint venture that includes Total and Occidental, has awarded Japan's JGC a $1.6 billion contract for the engineering and construction of a natural gas processing and compression plant at Ras...

United States -- BP and its partners BHP Billiton and Unocal appear to have made a large deepwater oil discovery in an area of the Gulf of Mexico that is favorable for a fast-track development.(Countries)
January 19, 2004... UNITED STATES -- BP and its partners BHP Billiton and Unocal appear to have made a large deepwater oil discovery in an area of the Gulf of Mexico that is favorable for a fast-track development. Unlike some other recent discoveries, the Puma...

US LNG imports doubled in 2003.(What's New Around the World)(liquefied natural gas)
January 19, 2004... Easing concerns that the US might remain the world's LNG customer of last resort for some while longer, LNG imports to US terminals more than doubled in 2003, according to Energy Intelligence estimates. The US pull in world LNG markets is...

It's the stocks, stupid.(Marketview)
January 19, 2004... WASHINGTON -- US crude futures soared above $35/bbl last week as the second Arctic blast of the New Year sent some temperatures in the US Northeast to their lowest levels in 20 years. It was a week for the record books. Wholesale natural gas...

Kuwaiti blackout cuts into term product sales.(Marketview)
January 19, 2004... A blackout shut all three of Kuwait's refineries late on Jan. 12, forcing state Kuwait Petroleum Corp (KPC) to cut term loadings of gas oil, jet-kerosene and naphtha for the rest of this month. Problems at the Shuaiba power plant halted...

PIW market indicators.(Petroelum Intelligence Weekly)(Illustration)
January 19, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $30.86 $30.11 $29.81 UK Brent (Dated) 32.17 31.43...

Competition in Europe hot: PIW scorecard.
January 26, 2004... Europe, and especially the Mediterranean, now appears to be the world's most competitive regional crude oil market--even with Iraq's Kirkuk crude exports still out. More Russian Urals and Tengiz from Kazakhstan are flowing in, adding to...

Exxon plays LNG game on own terms.
January 26, 2004... The tragic accident at Algeria's Skikda natural gas liquefaction plant last week won't deter Exxon Mobil's aggressive plans to bring liquefied natural gas (LNG) to the US, the UK, Italy and elsewhere by the end of the decade. The company...

PetroChina struggles to measure up.
January 26, 2004... With a market capitalization of around $84 billion, PetroChina is the fourth-largest energy firm traded on the New York Stock Exchange. But in other respects it doesn't look or feel much like its supermajor peers. Despite early expectations of...