Petroleum Intelligence Weekly articles from January 2005

Petroleum Intelligence Weekly archives from January 2005

Sellers' market in oil returns after 20 years.
January 3, 2005... The biggest underlying change in oil markets over the last year was the slow but steady shift to a sellers' market, which can be defined as one in which demand exceeds supply, and sellers dictate prices. The gradual shift was initially...

Saudis respond to global capacity crunch.(Saudi Arabian Oil Co.)
January 3, 2005... With Saudi Aramco's inauguration last week of the giant Qatif and Abu Safah field development projects, attention is now turning to the oil giant's plans to further boost capacity. Saudi Oil Minister Ali Naimi has indicated that the kingdom...

South Korea boosts spending on upstream.
January 3, 2005... Sustained high oil prices and the perennial turbulence in the Mideast are prompting most of Asia's big oil importers to intensify the drive for more nationally owned equity oil production overseas. In pursuit of this, South Korea, whose...

Opec Cairo cuts may solve quota quandry.(Organization of Petroleum Exporting Countries)
January 3, 2005... On the face of it, Opec's tacit quota redistribution at its Cairo meeting on Dec. 10 may have solved one of the producer group's recurrent problems at a stroke. By taking a cut of roughly 5% all round, with the exception of those members that...

Moscow tightens its grip with Yukos auction.
January 3, 2005... Although some key issues are still unresolved, Moscow is well on its way to tightening its grip on the Russian oil industry by creating a new state controlled behemoth that can rival Saudi Aramco or Exxon Mobil. Acquisition of Yukos' major...

2005 spending likely to beat 'lowball' budgets.(petroleum industry)(Brief Article)
January 3, 2005... The outlook for upstream spending this year is probably quite a bit rosier than companies are currently suggesting, barring an unforeseen collapse in oil prices. Surveys by Citigroup Smith Barney and Lehman Brothers point to increases of 5.5%...

Opec spends more, invests less in US.(Organization of Petroleum Exporting Countries)
January 3, 2005... Although Opec producers netted another revenue windfall in 2004, the falling US dollar robbed them of some of the extra purchasing power they should have enjoyed (PIW Dec.6,pl). So what have they done about it? In terms of switching the pricing...

Indian Ocean--The hugely destructive tidal waves that surged across the Bay of Bengal, wiping out entire villages and tourist resorts in several Asian countries, left the region's refineries, oil production facilities and other energy infrastructure largely unscathed.(General)(Brief Article)
January 3, 2005... INDIAN OCEAN -- The hugely destructive tidal waves that surged across the Bay of Bengal, wiping out entire villages and tourist resorts in several Asian countries, left the region's refineries, oil production facilities and other energy...

West Africa--Final agreement has been reached to go ahead with construction of the West African Gas Pipeline, which will deliver Nigerian natural gas to Benin, Ghana and Togo, and reduce flaring.(General)(Takoradi Power)(Brief Article)
January 3, 2005... WEST AFRICA -- Final agreement has been reached to go ahead with construction of the West African Gas Pipeline, which will deliver Nigerian natural gas to Benin, Ghana and Togo, and reduce flaring. The $590 million project will transport gas...

LNG--US ConocoPhillips has signed a memorandum of understanding with Russia's Gazprom for joint studies of a possible LNG development of the Shtokmanovskoye gas field in the Barents Sea, above the Arctic circle.(General)(OAO Gazprom, Liquefied natural gas)(Brief Article)
January 3, 2005... LNG -- US ConocoPhillips has signed a memorandum of understanding with Russia's Gazprom for joint studies of a possible LNG development of the Shtokmanovskoye gas field in the Barents Sea, above the Arctic circle. The studies will focus on LNG...

Corporate--UK independent Cairn Energy received a body blow in late December when its shares slumped nearly 20% in a day on the back of bad news from appraisal drilling on its Rajasthan acreage in northwest India.(General)(Brief Article)
January 3, 2005... CORPORATE -- UK independent Cairn Energy received a body blow in late December when its shares slumped nearly 20% in a day on the back of bad news from appraisal drilling on its Rajasthan acreage in northwest India. A nine-well appraisal...

Canada--Technical problems and synthetics plant maintenance have cut into oil supply during the fourth quarter of 2004.(Countries)(Brief Article)
January 3, 2005... CANADA -- Technical problems and synthetics plant maintenance have cut into oil supply during the fourth quarter of 2004. Data from Statistics Canada show a 29,000 b/d monthly decline in October to 3.036 million b/d related to problems at all...

China--Not a moment too soon to ease energy shortages in eastern coastal cities, the giant 4,000 mile West-East gas pipeline has begun full commercial operations.(Countries)(PetroChina Company Ltd.)(Brief Article)
January 3, 2005... CHINA -- Not a moment too soon to ease energy shortages in eastern coastal cities, the giant 4,000 mile West-East gas pipeline has begun full commercial operations. Already Beijing is looking at expanding the capacity of the line by 50% from...

Egypt--Joining the ranks of liquefied natural gas (LNG) exporters for the first time, the country's 5 million ton/yr Spanish Egyptian Gas (Segas) venture at Damietta expects to load its first cargo around Jan. 3.(Countries)(Union Fenosa Gas contracts)(Brief Article)
January 3, 2005... EGYPT -- Joining the ranks of liquefied natural gas (LNG) exporters for the first time, the country's 5 million ton/yr Spanish Egyptian Gas (Segas) venture at Damietta expects to load its first cargo around Jan. 3. Union Fenosa Gas, a 50-50...

Indonesia--Jakarta's constitutional court added more uncertainty to the domestic petroleum scene by striking down as unconstitutional three articles of a 2001 law on oil and gas that was designed to deregulate upstream and downstream activities and strip state Pertamina of much of its responsibilities.(Countries)(Brief Article)
January 3, 2005... INDONESIA -- Jakarta's constitutional court added more uncertainty to the domestic petroleum scene by striking down as unconstitutional three articles of a 2001 law on oil and gas that was designed to deregulate upstream and downstream...

Iraq--Efforts to sell 7 million to 8 million bbl/month of Kirkuk crude on term contracts have been abandoned because it has become impossible to ensure deliveries to the Turkish port of Ceyhan due to deteriorating security.(Countries)(State Oil Marketing Organization)(Brief Article)
January 3, 2005... IRAQ -- Efforts to sell 7 million to 8 million bbl/month of Kirkuk crude on term contracts have been abandoned because it has become impossible to ensure deliveries to the Turkish port of Ceyhan due to deteriorating security. State Oil...

Mexico--Oil and natural gas production continued to follow an erratic pattern with a drop in November undoing gains in October (PIW Nov.22,p9).(Countries)(Brief Article)
January 3, 2005... MEXICO -- Oil and natural gas production continued to follow an erratic pattern with a drop in November undoing gains in October (PIW Nov.22,p9). The November declines of 87,000 b/d for crude, to 3.364 million b/d, and 44 MMcf/d for natural...

Russia--Expanding crude oil export outlets, Moscow has approved a 200,000 b/d (10 million ton/yr) increase in the capacity of the Baltic Pipeline System, which links West Siberia to the Baltic port of Primorsk (PIW Dec.20,p7).(Countries)(Brief Article)
January 3, 2005... RUSSIA -- Expanding crude oil export outlets, Moscow has approved a 200,000 b/d (10 million ton/yr) increase in the capacity of the Baltic Pipeline System, which links West Siberia to the Baltic port of Primorsk (PIW Dec.20,p7). Current...

Russia--Sibneft, the country's fifth-largest oil company, has made a few additions to its upstream arsenal, winning an auction for exploration and development rights to three fields--Yuzhno-Udmurtskoye, Chatylkinskoye and Khlmistoye--in the Yamal-Nenets Autonomous District in Western Siberia (PIW Oct.18,p7).(Countries)(Sibneft Oil)(Brief Article)
January 3, 2005... RUSSIA -- Sibneft, the country's fifth-largest oil company, has made a few additions to its upstream arsenal, winning an auction for exploration and development rights to three fields--Yuzhno-Udmurtskoye, Chatylkinskoye and Khlmistoye--in the...

South Korea--Crude imports jumped 12% in November, rising 321,000 bid to an average of 2.96 million b/d, according to data released by Korea National Oil Corp. (KNOC).(Countries)(Brief Article)
January 3, 2005... SOUTH KOREA -- Crude imports jumped 12% in November, rising 321,000 bid to an average of 2.96 million b/d, according to data released by Korea National Oil Corp. (KNOC). Imports from Saudi Arabia slipped a tad to 794,000 b/d, while the UAE,...

Sudan--French major Total has paved the way for an eventual return to the country by agreeing upon revised terms for a dormant production sharing agreement (PSA).(Countries)(TOTAL S.A.)(Brief Article)
January 3, 2005... SUDAN -- French major Total has paved the way for an eventual return to the country by agreeing upon revised terms for a dormant production sharing agreement (PSA). Total was active on 118,000 sq km exploration Block B from November 1980 until...

Syria--The oil ministry says that it plans to sign several new exploration contracts this year with international oil companies in order to stem the decline in domestic oil production.(Countries)(HPC International, Dove Energy)(Brief Article)
January 3, 2005... SYRIA -- The oil ministry says that it plans to sign several new exploration contracts this year with international oil companies in order to stem the decline in domestic oil production. The latest agreement was signed recently with HPC...

Trinidad & Tobago--Spanish Repsol YPF confirmed the significance of a recent offshore natural gas discovery by BP, declaring that it has reserves of around 360 million boe, or some 2 Tcf.(Countries)(British Petroleum Company PLC)(Brief Article)
January 3, 2005... TRINIDAD & TOBAGO -- Spanish Repsol YPF confirmed the significance of a recent offshore natural gas discovery by BP, declaring that it has reserves of around 360 million boe, or some 2 Tcf. The Chachalaca-1 discovery--in the offshore...

United States--Mexico led Canada by a nose as the largest crude oil supplier to the US in October.(Countries)(Brief Article)
January 3, 2005... UNITED STATES -- Mexico led Canada by a nose as the largest crude oil supplier to the US in October. One of these two countries will likely replace Saudi Arabia in the top spot for full year 2004, marking the first time since 1998 that the...

Correction.(Countries)(Correction Notice)
January 3, 2005... CORRECTION -- The Russian government owns 38.37% of Gazprom, not 73% as reported in the PIW Top 50 (PIW Dec.13,Supplement). This correction does not change Gazprom's position in the rankings. Peter Robertson of Chevron Texaco is vice...

A boisterous year.(Marketview)
January 3, 2005... WASHINGTON -- A boisterous last week of trading came as a fitting way to round out a very boisterous year in the oil market. US crude oil futures prices fell by almost $3/bbl early last week only to bounce back up sharply amid thin and nervous...

Tanker rates plunge as demand slows.(Marketview)(Brief Article)
January 3, 2005... After rising to record levels in late November, along with just about everything else, spot tanker freight rates have now dropped by almost half from their peaks. The steep plunge reflects reduced requirements for vessels--particularly from the...

PIW market indicators.(Petroleum Intelligence Weekly, petroleum prices )(Illustration)
January 3, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $35.50 $37.64 $34.21 UK Brent (Dated) 38.60 41.40 ...

Asian oil security comes at a price.
January 10, 2005... The "Asian premium" was at the heart of talks when Asia's biggest consumers of oil met their top Middle East suppliers in New Delhi last week. Asian complaints about the premium they usually pay for oil above the prices offered to Europe or the...

US Gulf bounces back from Ivan's bruising.
January 10, 2005... If the weather is willing, the coming year in the Gulf of Mexico will hopefully be best remembered for an important new discovery or the start-up of BP's giant Thunder Horse project. Last year, though, will forever bear the stamp of Hurricane...

Unconventional gas is emerging as new norm.
January 10, 2005... As far as unconventional natural gas supplies go, the future is now. Geological plays such as tight sands gas, coalbed methane (CBM) and gas shales that not long ago were touted as resources of the future have moved into the conventional...

Andean producers turn around output decline.
January 10, 2005... The Andean region's oil producers--Colombia, Ecuador and Peru--have been scrambling to improve their troubled reputation for falling output, shrinking reserves, endless exploration delays and chronic political instability. Did they finally turn...

The failure of US oil strategy.
January 10, 2005... Thirty years after the launch of "Project Independence" to lessen its reliance on foreign petroleum, the US last year imported record volumes and consumed more oil than ever, paying historically high prices for the privilege. Back in 1975, in...

PSCs pinching majors, but not that much.(production sharing contracts)
January 10, 2005... If oil prices stay high in 2005, major oil companies are again likely to feel pinched by reduced volumes from production sharing contracts (PSCs), designed to offer protection when oil prices are low, but less rewarding when prices rise. The...

Global supply surge starts to slow.
January 10, 2005... Global oil supply grew by an impressive 3.6 million barrels per day in 2004, with about one-third of the increment coming from non-Opec producers and the rest reflecting higher Opec crude and other oil production. With 2004 demand growth...

Corporate--oil shares followed commodity prices lower in the final month of 2004 but gains over the full year outpaced gains in the broader market.(General)(Brief Article)
January 10, 2005... CORPORATE -- Oil shares followed commodity prices lower in the final month of 2004 but gains over the full year outpaced gains in the broader market. Exxon Mobil was up 24.8% in 2004, while rivals BP, ChevronTexaco and ConocoPhillips posted...

Corporate--the turbulent life of once-vaunted energy merchant Enron came to an end late last year with barely a whimper after the sale of its remaining US natural gas pipelines to a joint venture of General Electric and Southern Union, a gas utility and pipeline holding company, and the close of its bankruptcy case.(Brief Article)
January 10, 2005... CORPORATE -- The turbulent life of once-vaunted energy merchant Enron came to an end late last year with barely a whimper after the sale of its remaining US natural gas pipelines to a joint venture of General Electric and Southern Union, a gas...

Formula prices--Saudi Arabia narrowed the discounts in its formula prices for its medium and heavy grades in February to most markets but either increased the discounts on its two lighter grades or left them unchanged from January.(General)(Brief Article)
January 10, 2005... FORMULA PRICES -- Saudi Arabia narrowed the discounts in its formula prices for its medium and heavy grades in February to most markets but either increased the discounts on its two lighter grades or left them unchanged from January. The new...

Industry restructuring--Singapore's government investment fund, Temasek Holdings, has called off plans to pay about $245 million for a 44.9% stake in holding company New Links Energy Resources which has an 85.5% share in Indonesia's Medco Energia.(General)
January 10, 2005... INDUSTRY RESTRUCTURING -- Singapore's government investment fund, Temasek Holdings, has called off plans to pay about $245 million for a 44.9% stake in holding company New Links Energy Resources which has an 85.5% share in Indonesia's Medco...

Refining--refineries added 354,000 b/d of capacity worldwide in 2004 for a record 82.055 million b/d, according to the annual global refining survey published by the Oil & Gas Journal.(General)(Brief Article)
January 10, 2005... REFINING -- Refineries added 354,000 b/d of capacity worldwide in 2004 for a record 82.055 million b/d, according to the annual global refining survey published by the Oil & Gas Journal. Refining capacity increased by 657,000 b/d in Asia, by...

Reserves--Denmark's state-owned Dong is expecting to book around 275 million boe of reserves from its newly acquired stake in Norway's Ormen Lange gas and condensate development, making Dong an even more aggressive booker of Ormen Lange's reserves than BP, from which it bought its 10.34% stake in the field in November for $1.2 billion (PIW Mar.29,p7).(General)(Brief Article)
January 10, 2005... RESERVES -- Denmark's state-owned Dong is expecting to book around 275 million hoe of reserves from its newly acquired stake in Norway's Ormen Lange gas and condensate development, making Dong an even more aggressive booker of Ormen Lange's...

People--London's International Petroleum Exchange appointed David Peniket as chief operating officer.(appointments)(Brief Article)
January 10, 2005... PEOPLE -- London's International Petroleum Exchange appointed David Peniket as chief operating officer. The director of Opec's research division, Adnan Shihab-Eldin, was appointed to represent the acting secretary-general in day-to-day...

Angola--ChevronTexaco is on track to produce an initial 30,000 b/d of oil by year-end at its $1.9 billion Sanha project offshore.(barrels per day)(Brief Article)
January 10, 2005... ANGOLA -- ChevronTexaco is on track to produce an initial 30,000 b/d of oil by year-end at its $1.9 billion Sanha project offshore. Condensate production is scheduled to start early in the first quarter and first LPG production from the Sanha...

China--crude imports leapt 46% to 2.72 million b/d in November, for a hefty 851,000 b/d year-on-year gain.(barrels per day)(Brief Article)
January 10, 2005... CHINA --crude imports leapt 46% to 2.72 million b/d in November, for a hefty 851,000 b/d year-on-year gain. Imports from Angola doubled to an average of 493,000 b/d, making the African country the top supplier for the second successive month...

India--some 20 oil and gas exploration blocks will be on the block in a fifth round of bidding under the New Exploration Licensing Policy (Nelp) to be launched this month, it was confirmed last week (PIW Dec. 6, p6).(Petroleum Intelligence Weekly )
January 10, 2005... INDIA -- Some 20 oil and gas exploration blocks will be on the block in a fifth round of bidding under the New Exploration Licensing Policy (Nelp) to be launched this month, it was confirmed last week (PIW Dec.6,p6). The 20 blocks cover an area...

India--Oil Minister Mani Shankar Aiyar managed to turn last week's Asian energy forum in New Delhi into a good news story for bilateral investments with Mideast oil suppliers (p1).(Brief Article)
January 10, 2005... INDIA -- Oil Minister Mani Shankar Aiyar managed to turn last week's Asian energy forum in New Delhi into a good news story for bilateral investments with Mideast oil suppliers (p1). In a meeting with Saudi counterpart Ali Naimi, Aiyar said he...

IRAN--a consortium of Norway's Aker Kvaerner and local contractors Sadra and Khatamolanbia have won a tender to implement Phases 15 and 16 of the giant South Pars gas development.(Brief Article)
January 10, 2005... IRAN -- A consortium of Norway's Aker Kvaerner and local contractors Sadra and Khatamolanbia have won a tender to implement Phases 15 and 16 of the giant South Pars gas development. A formal contract for the $2.6 billion project, which calls...

Iraq--an international consortium of UK engineering specialist Dynamic Processing Solutions (DPS), Turkey's Avrasya and the local Kar Group has won a contract worth $136 million to develop the Khurmala Dome in the north.(Countries)(Brief Article)
January 10, 2005... IRAQ -- an international consortium of UK engineering specialist Dynamic Processing Solutions (DPS), Turkey's Avrasya and the local Kar Group has won a contract worth $136 million to develop the Khurmala Dome in the north. The tender had...

Japan--crude imports soared by nearly 18% in November to 4.37 million b/d, coming in 650,000 b/d higher than the previous year.(barrels per day )(Brief Article)
January 10, 2005... JAPAN -- crude imports soared by nearly 18% in November to 4.37 million b/d, coming in 650,000 b/d higher than the previous year. A flood of oil from Saudi Arabia led the surge, rising 43% to an average of 1.26 million b/d, up 377,000 b/d on a...

Kazakhstan--Russia's Lukoil has upped the ante in its standoff with its Canadian partner PetroKazakhstan in the Turgai Petroleum joint venture that has led to nearly 75,000 b/d of production being shut in.(Countries)(Brief Article)
January 10, 2005... KAZAKHSTAN -- Russia's Lukoil has upped the ante in its standoff with its Canadian partner PetroKazakhstan in the Turgai Petroleum joint venture that has led to nearly 75,000 bid of production being shut in. Lukoil has presented PetroKazakhstan...

Russia--two decisions that will add 1.8 million b/d of new oil export capacity have been taken by Moscow.(barrels per day)(Brief Article)
January 10, 2005... RUSSIA -- Two decisions that will add 1.8 million b/d of new oil export capacity have been taken by Moscow. In a move to exploit the oil riches of Eastern Siberia and nurture new markets in Asia, the go-ahead was given for construction of a 1.6...

Spring is in the air.(fuel market overview)
January 10, 2005... NEW YORK -- It may be January, with US crude oil futures prices jumping back over $45 per barrel and markets preoccupied by weather and heating oil, but there are also signs of spring. Market attention is starting to shift toward gasoline, and...

China starts to cut transport fuel prices.(Marketview)(Brief Article)
January 10, 2005... China's largest state refiner Sinopec has lowered its ex-refinery prices for gasoline and diesel for the second time in a month to reflect lower crude prices. "Both Sinopec and PetroChina are adjusting prices down because we are expecting the...

PIW market indicators.(Petroleum Intelligence Weekly)(Illustration)
January 10, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $36.19 $35.72 $35.04 UK Brent (Dated) 39.28 39.02 38.86...

Russia poses threat to Mideast pricing in Asia.
January 17, 2005... Russia's decision to build a giant pipeline to deliver crude to China, Japan and South Korea--given the nod by Moscow late last year--offers Asia the chance to dilute its reliance on Middle East oil, and will erode the infamous premium paid by...

Iran's new Asian tilt is a tall order.(deal with India for oil and gas supply)
January 17, 2005... A landmark deal signed by Iran and India in New Delhi that lays the foundations of a strategic long-term energy alliance looks good on paper, but, upon closer scrutiny, raises more questions than it answers. The same skepticism applies to a...

Oil investors hope for repeat of 2004.
January 17, 2005... Coming off a stellar 2004, oil shares stumbled early in the New Year, dipping 3% in the first week of January. Oil investors, however, have become used to a January slip in share values. But how much longer can the bull run continue? Was 2004...

Gulf Opec gains fall short of 2004.(Organization of Petroleum Exporting Countries)
January 17, 2005... After a turbulent year in which soaring oil demand stretched global capacity and sent prices to record highs, 2005 is starting on a slightly more sober note. But capacity is still fight and the intensifying insurgency in Iraq is pushing supply...

US LNG intake set for another surge.(liquefied natural gas)
January 17, 2005... The US appetite for liquefied natural gas (LNG) imports continues to grow, despite a recent buildup of gas storage volumes. Throughout 2004, US terminals imported an average 1.8 billion cubic feet per day, or a total of 653 Bcf, racking up a...

Carbon trading gets moving in earnest.
January 17, 2005... The European Union's new mandatory emissions trading system (ETS), which officially started Jan. 1, presents a fresh set of challenges for energy companies operating in Europe to control their greenhouse gas emissions, but also offers new...

Non-Opec supply bounce coming in 2005.(Organization of Petroleum Exporting Countries)
January 17, 2005... Non-Opec oil supply is poised for a significant spurt this year after several years of mediocre growth, according to a preliminary assessment by PIW's sister publication Oil Market Intelligence. Annual average oil production from non-Opec...

Corporate--China National Offshore Oil Corp. (CNOOC) last week poured cold water on reports it was considering a bid for US Unocal.(General)(Brief Article)
January 17, 2005... CORPORATE--China National Offshore Oil Corp. (CNOOC) last week poured cold water on reports it was considering a bid for US Unocal, which is very active in Southeast Asia (PIW Mar. 29, p4). Analysts cautioned that CNOOC is just one of several...

Formula prices--Mexico narrowed marginally its February discount for US-bound heavy sour Maya.(General)(Brief Article)
January 17, 2005... FORMULA PRICES--Mexico narrowed marginally its February discount for US-bound heavy sour Maya, a change that comes after indications from Opec producers that they are acting on their December pledge to trim their mostly sour production by 1...

Industry restructuring--US independent XTO Energy is acquiring private Texas gas producer Antero Resources for $685 million in cash and stock.(Brief Article)
January 17, 2005... INDUSTRY RESTRUCTURING--US independent XTO Energy is acquiring private Texas gas producer Antero Resources for $685 million in cash and stock. The deal makes XTO the No. 2 producer in the prolific Barnett Shale gas play of North Texas. Plains...

Correction.(Correction Notice)
January 17, 2005... CORRECTION--This revised table replaces the one published last week in the Global Supply story (PIW Jan. 10,p5) Global Oil Supply Chg. vs. 1,000 b/d Dec.'04...

India--after a recent reserves down-grade, UK independent Cairn Energy received a boost from a new gas discovery at the Raageshwari field in the southern part of its prolific Rajasthan Block.(Brief Article)
January 17, 2005... INDIA -- After a recent reserves down-grade, UK independent Cairn Energy received a boost from a new gas discovery at the Raageshwari field in the southern part of its prolific Rajasthan Block (PIW Jan. 3, p6). The Raageshwari-5 well, around 75...

Iraq--State Oil Marketing Organization (Somo) has cut its export commitments to customers by about 160,000 b/d from next month as it struggles to sustain its production from southern oil fields.(Countries)(Brief Article)
January 17, 2005... IRAQ -- State Oil Marketing Organization (Somo) has cut its export commitments to customers by about 160,000 b/d from next month as it struggles to sustain its production from southern oil fields. South Oil Co. has been facing problems with its...

Libya--bids are finally due to be submitted on Jan. 29 for 15 exploration areas on offer in the country's first open bid licensing round, known as Epsa-4, after a string of extensions to deadlines.(Brief Article)
January 17, 2005... LIBYA -- Bids are finally due to be submitted on Jan. 29 for 15 exploration areas on offer in the country's first open bid licensing round, known as Epsa-4, after a string of extensions to deadlines. The shifting dates mostly reflect the large...

Mauritania--Australia's Woodside Petroleum and its partners have drilled another successful appraisal well, Tiof-6, in deepwater Block 4.(Countries)(Brief Article)
January 17, 2005... MAURITANIA -- Australia's Woodside Petroleum and its partners have drilled another successful appraisal well, Tiof-6, in deepwater Block 4. The well was drilled to 2,696 meters and preliminary analysis indicated the presence of an oil column,...

Niger--Malaysian state Petronas struck oil with its Jaoruo-1 exploration well in the Termit Basin on the Agadem Block 1 permit, about 1,000 km east of the capital Niamey.(Countries)(Brief Article)
January 17, 2005... NIGER -- Malaysian state Petronas struck oil with its Jaoruo-1 exploration well in the Termit Basin on the Agadem Block 1 permit, about 1,000 km east of the capital Niamey. The well was drilled to a depth of 2,462 meters and production tests...

Norway--stormy winter weather continued to disrupt production last week after high winds had forced Royal Dutch/Shell and Statoil to keep shut down about 345,000 b/d of oil production in the first week of January.(Royal Dutch-Shell Group of Cos.)(barrels per day)(Brief Article)
January 17, 2005... NORWAY -- Stormy winter weather continued to disrupt production last week after high winds had forced Royal Dutch/Shell and Statoil to keep shut down about 345,000 bid of oil production in the first week of January. Repairs to loading equipment...

Oman--state-controlled Petroleum Development Oman (PDO) announced last week that it would proceed with its first full-scale enhanced oil recovery (EOR) project the $600 million Harweel 2A/B field development--as part of its five-year program to stabilize oil output.(Brief Article)
January 17, 2005... OMAN -- State-controlled Petroleum Development Oman (PDO) announced last week that it would proceed with its first full-scale enhanced oil recovery (EOR) project the $600 million Harweel 2A/B field development--as part of its five-year program...

Sudan--a peace deal signed by the government and southern rebels has raised hopes that oil exploration and development activity will pick up.(Countries)(Brief Article)
January 17, 2005... SUDAN -- A peace deal signed by the government and southern rebels has raised hopes that oil exploration and development activity will pick up. Current production of some 300,000 barrels per day is expected to increase by up to 200,000 b/d when...

Trinidad and Tobago--Australia's BHP Billiton announced last week the start-up of its Greater Angostura project at an initial rate of 60,000 b/d.(Countries)(Brief Article)
January 17, 2005... Australia's BHP Billiton announced last week the start-up of its Greater Angostura project at an initial rate of 60,000 b/d. The shallow water field came into production just 40 months after the Kairi-1 discovery well in 2001. The facilities...

United States--Royal Dutch/Shell has found a buyer for its 70,000 b/d Bakersfield, California refinery, lifting the threat that the facility would close down.(Royal Dutch-Shell Group of Cos.)(barrels per day)(Brief Article)
January 17, 2005... UNITED STATES -- Royal Dutch/Shell has found a buyer for its 70,000 b/d Bakersfield, California refinery, lifting the threat that the facility would close down. Shell is to sell the facility to Flying J, a retail distributor of diesel fuel, for...

Moscow courts China, India with Yukos asset.
January 17, 2005... Russia's Rosneft is wooing China and India to participate as investors in Yuganskneftegas, the Yukos production arm that was sold last month. In order to not complicate or delay the mega-merger between state-controlled Rosneft and Gazprom, the...

Marketview: tight spot.
January 17, 2005... WASHINGTON -- Benchmarks West Texas Intermediate (WTI) and Brent showed extraordinary strength last week on support from supply outages, forecasts for cold weather in the US Northeast, plus new uncertainties about Iraq and Opec's intentions....

PIW market indicators.(Petroleum Intelligence weekly)(Illustration)
January 17, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Week Ago Ago Spot Crude Opec Basket $39.79 $36.90 $35.05 UK Brent (Dated) ...

Price spike puts Opec on the spot.
January 24, 2005... Opec will be walking a tightrope when ministers meet yet again on Jan. 30. While second-quarter demand forecasts create space for a possible supply cut, sky-high oil prices and tight inventories speak for more oil, not less. But some ministers...

Get used to Chinese oil demand growth.
January 24, 2005... Chinese oil demand growth is here to stay. Beijing's attempts to cool the economy have left the oil sector essentially unscathed, and there is little reason to believe demand from China's industrial and transport sectors will slow down any time...

Rush to deep water sends rig rates soaring.
January 24, 2005... As dictated by the law of supply and demand, increased levels of upstream spending have led to a gradual tightening of the market for deepwater drilling rigs. Daily rental rates for rigs capable of drilling in at least 5,000 feet of water have...

Shell close to target for new downgrade.
January 24, 2005... Royal Dutch/Shell is putting the finishing touches to a new downgrade of its oil and gas reserves, and looks likely to reduce its proven volumes by a little under 900 million barrels of oil equivalent, broadly in line with guidance given to...

Russia set for slower growth in 2005.
January 24, 2005... After years of blockbuster growth, Russia is set to slow down its crude production growth in 2005. Though there is still huge growth potential, infrastructure constraints, an onerous tax burden and aggressive state consolidation of the sector...

Iraqi oil is down, but far from out.
January 24, 2005... Iraq is struggling to prevent chaos engulfing its oil sector as it gears up for end-January elections, which, among other things, are intended to pave the way for a constitution and legal framework for foreign oil companies to invest in the...