Petroleum Intelligence Weekly articles from July 2002

Petroleum Intelligence Weekly archives from July 2002

Opec sits tight among marketshare thieves.(Brief Article)(Statistical Data Included)
July 1, 2002... While restraint continues to be the key word for now, Opec will be looking for evidence that it can afford to open the taps at its next ministerial meeting in September, ahead of an anticipated rise in oil demand in the Northern Hemisphere....

West gains on East in global LNG trade.(liquefied natural gas)(Brief Article)(Statistical Data Included)
July 1, 2002... Nearly 8 million tons per year of gas liquefaction capacity is believed to be lying idle in the eight Mideast and Pacific Basin countries that supply liquefied natural gas to what always been the world's LNG epicenter--Japan and South Korea. At...

Iraqi kickbacks, smuggling hurt sales--not UN.(Brief Article)
July 1, 2002... Playing on the generally accepted idea that the United Nations policy of retroactive pricing is hurting its oil export volumes, Iraq has gone on the offensive to bury the pricing system once and for all. At last week's Opec meeting, Iraq's Oil...

Putin pushes Rosneft into the limelight.(Brief Article)
July 1, 2002... Acting on Russian President Vladimir Putin's push for more prominent state presence in key sectors of the economy, state-owned Rosneft is coming to the fore of the Russian oil industry. In the latest development, the cabinet of Mikhail Kasyanov...

US refiners off-load assets in sector shake-up.(Brief Article)(Statistical Data Included)
July 1, 2002... Industry consolidation, a liquidity crisis in the energy merchant sector, and excessive investments required to upgrade refineries have conspired to force roughly 900,000 barrels per day of US refining capacity onto the sales block. This should...

Nymex-ICE tiff heats up after Enron meltdown.(New York Mercantile Exchange, International Petroleum Exchange of London)(Brief Article)(Statistical Data Included)
July 1, 2002... Traditional futures and options exchanges have escaped the post-Enron meltdown in over-the-counter (OTC) energy derivatives trading. Both the New York Mercantile Exchange (Nymex) and London's International Petroleum Exchange (IPE), now owned by...

Yemen hopes to find Eden in Gulf of Aden.(Brief Article)(Statistical Data Included)
July 1, 2002... As its main producing fields start to mature, Yemen is doling out a growing number of exploration blocks to small Western independents in a bid to replenish its reserves. So far, however, no major new oil deposits have been discovered, and the...

Rosneft chief extols company's advantages.(Interview)
July 1, 2002... Russia's Rosneft holds a unique position in the country's oil industry by being part of major oil and gas projects off the Far Eastern island of Sakhalin. In addition, the company's management recently initiated a much-debated idea of...

Industry Restructuring--BP Capital. (General).(seeks Penn Virginia)(Brief Article)
July 1, 2002... INDUSTRY RESTRUCTURING -- BP Capital, the Dallas-based private investment firm managed by corporate raider T. Boone Pickens, is making an unsolicited bid to buy US producer Penn Virginia for about $360 million. Once in jeopardy of falling...

Angola--Exxon Mobil announced Tuesday that it had started work on its second big oil-field development in deepwater block 15. (Countries).(Brief Article)(Statistical Data Included)
July 1, 2002... ANGOLA -- Exxon Mobil announced Tuesday that it had started work on its second big oil-field development in deepwater Block 15. The Xikomba project follows the Kizomba development, which Exxon kicked off last year after resolving a dispute with...

Australia--Phillips has tacitly decided to back Royal Dutch/Shell and Woodside Petroleum's proposal for a floating LNG project, in return for Woodside's agreement to review a domestic option for the US firm's Sunrise gas. (Countries).(Brief Article)
July 1, 2002... AUSTRALIA -- Phillips has tacitly decided to back Royal Dutch/Shell and Woodside Petroleum's proposal for a floating LNG project, in return for Woodside's agreement to review a domestic option for the US firm's Sunrise gas (PIW Jun.3,p5). Since...

China--the massive West-East gas pipeline project appears poised to make a breakthrough, with a final agreement expected to be signed as early as this week. (Countries).(Brief Article)
July 1, 2002... CHINA -- The massive West-East gas pipeline project appears poised to make a breakthrough, with a final agreement expected to be signed as early as this week. An official from project leader PetroChina says that talks with joint-venture partner...

France--Gaz de France has announced plans to build a second LNG terminal at the Mediterranean port of Fossur-Mer, in order to meet growing demand for gas in Europe. (Countries).(Brief Article)
July 1, 2002... FRANCE -- Gaz de France has announced plans to build a second LNG terminal at the Mediterranean port of Fossur-Mer, in order to meet growing demand for gas in Europe. The new terminal, to be commissioned by 2006, will have a capacity of 8.25...

India--Oil Minister Ram Naik is seeking cabinet approval to bypass red tape to award oil-rich Indian states half of the revenues paid by private oil companies, including non-Indian firms. (Countries).(Brief Article)
July 1, 2002... INDIA -- Oil Minister Ram Naik is seeking cabinet approval to bypass red tape to award oil-rich Indian states haft of the revenues paid by private oil companies, including non-Indian firms. The move is expected to encourage development of oil...

Iran--this week Iran expects to finally award a buyback deal for Phases 9 and 10 of its giant South Pars offshore gas field to South Korea's LG and two Iranian companies, OIEC and IOEC, Iranian Oil minister Bijan Zanganeh told reporters on the sidelines of Opec's ministerial conference in Vienna last week. (Countries).(Brief Article)
July 1, 2002... IRAN -- This week Iran expects to finally award a buyback deal for Phases 9 and 10 of its giant South Pars offshore gas field to South Korea's LG and two Iranian companies, OIEC and IOEC, Iranian Oil Minister Bijan Zanganeh told reporters on...

Korea--Royal Dutch/Shell is negotiating with Korea Gas Corp. (Kogas) to take equity in the state-run company and to sell Sakhalin gas to Korea. (Countries).(South Korea)(Brief Article)
July 1, 2002... KOREA -- Royal Dutch/Shell is negotiating with Korea Gas Corp. (Kogas) to take equity in the state-run company and to sell Sakhalin gas to Korea. But talks are hampered by Kogas' reluctance to enter into any long-term LNG purchase contracts...

Malaysia--state-owned Petronas will not exercise its right to buy Talisman's 25% stake in the Sudan, partly due to assurances made last month to heed the US embargo on Sudan when the company successfully raised $2.7 billion in bonds, mainly to expand overseas. (Countries).(Brief Article)
July 1, 2002... MALAYSIA -- State-owned Petronas will not exercise its right to buy Talisman's 25% stake in the Sudan, partly due to assurances made last month to heed the US embargo on Sudan when the company successfully raised $2.7 billion in bonds, mainly...

Qatar--State Qatar Petroleum (QP) has agreed to take up Exxon Mobil's proposal to supply Qatari LNG to the UK, first reported by EIG last month (PIW May27,p7). (Countries).(Brief Article)
July 1, 2002... QATAR -- State Qatar Petroleum (QP) has agreed to take up Exxon Mobil's proposal to supply Qatari LNG to the UK, first reported by EIG last month (PIW May27,p7). Under the terms of last week's Heads of Agreement, Qatari LNG shipments to the UK...

Russia--in an effort to prevent the further deterioration of Russia's main export blend Urals, the president of national pipeline operator Transneft, Semyon Vainshtok, says his company is ready to set up a crude quality bank. (Countries).(Brief Article)
July 1, 2002... RUSSIA -- In an effort to prevent the further deterioration of Russia's main export blend Urals, the president of national pipeline operator Transneft, Semyon Vainshtok, says his company is ready to set up a crude quality bank. The driving...

Russia--Lukoil has disappointed investors by reporting a one-third decline in its 2001 net profit from the previous year. (Countries).(Brief Article)
July 1, 2002... RUSSIA -- Lukoil has disappointed investors by reporting a one-third decline in its 2001 net profit from the previous year. The company raked in $2.109 billion last year in accounts prepared according to US GAAP standards, down from the 2000...

Saudi Arabia--negotiations on the kingdom's $20 billion-plus natural gas initiative are set to accelerate in coming weeks following a decision by Crown Prince Abdullah. (Countries).(Brief Article)
July 1, 2002... SAUDI ARABIA -- Negotiations on the kingdom's $20 billion-plus natural gas initiative are set to accelerate in coming weeks following a decision by Crown Prince Abdullah. After high-profile meetings last week with Exxon Mobil and Royal...

United Kingdom--Centrica, which covers 40% of UK natural gas demand, has signed its second big long-term deal with a mainland European supplier. (Countries).(Brief Article)
July 1, 2002... UNITED KINGDOM -- Centrica, which covers 40% of UK natural gas demand, has signed its second big long-term deal with a mainland European supplier. Dutch Gasunie will deliver 2.82 Tcf of gas over a 10-year period, starting as early as 2005, if a...

Royalty law renews optimism in Colombian oil sector.(Brief Article)
July 1, 2002... To the relief of foreign investors, the Colombian legislature has finally sanctioned a sliding-scale royalty bill deemed crucial for the future of the domestic upstream sector. The new law eliminates the flat 20% royalty in favor of a sliding...

Go West, young barrel! (Marketview).(United States gasoline market)(Brief Article)
July 1, 2002... NEW YORK -- Any lingering potential for a rally in this year's US gasoline market hinges on relatively buoyant consumer demand, but still-comfortable stock levels in most of the country and massive volumes of imports--1.5 million tons in...

PIW market indicators.(crude oil prices)(Brief Article)(Statistical Data Included)
July 1, 2002... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $24.60 $23.96 $23.36 UK Brent (Dated) 25.14 24.56 23.33 UK...

China pipeline team in place, payoff in doubt.(Brief Article)
July 8, 2002... The fog has finally cleared from the race to win a stake in China's monolithic West-East natural gas pipeline: Exxon Mobil, Royal Dutch/Shell, and Russia's Gazprom will each get a 15% share of the $18 billion project, with Chinese champions...

Big Iraqi fields slip away from foreign players.(Brief Article)
July 8, 2002... The huge undeveloped Iraqi oil fields promised to French, Russian, and Chinese oil companies in the late 1990s are starting to slip through the fingers of these firms. The problem is that UN sanctions have prevented the companies from...

Can West Africa replace Mideast supplies to US?(Brief Article)
July 8, 2002... As the Bush administration reviews national energy security in the aftermath of Sep. 11 and anxieties about Mideast supplies, a campaign to boost West Africa as a key alternative source of crude is under way in Washington. A group backed by...

No signs yet of anticipated demand growth.(Brief Article)(Statistical Data Included)
July 8, 2002... Despite Opec's own forecast of 1 million barrels per day of demand growth in the fourth quarter relative to last year, inaction at its most recent meeting suggests the producer group is not quite ready to gamble on a swift turnaround in global...

Mexico ups oil output, gas deficit looms.(Brief Article)(Statistical Data Included)
July 8, 2002... Blessed with a massive budget of $9.5 billion for this year, up from $4.5 billion in 2001, Mexico's state Pemex is starting to deliver results. Most attention is being devoted to the hunt for non-associated gas in the Burgos Basin and the...

Mideast, Asia fill gaps on US West Coast.(Brief Article)(Statistical Data Included)
July 8, 2002... Growing demand and falling output in Alaska and California are making the US West Coast increasingly dependent on the Middle East for imports of crude oil--and on Asia for products. Traditionally an exporter of crude, the West Coast is now...

Corporate--Italy's ENI and German power firm EnBW are teaming up to buy 62.22% of southwest German gas firm GVS. (General).(Brief Article)
July 8, 2002... CORPORATE -- Italy's ENI and German power firm EnBW are teaming up to buy 62.22% of southwest German gas firm GVS, with a further 33.4% to follow, valuing GVS at some $712 million. If approved by regulators, ENI/EnBW will gain a strategic...

E-commerce--pricing service Platts is poised to launch its long-awaited PlattsDirect online trading exchange in Singapore. (General).(Brief Article)
July 8, 2002... E-COMMERCE -- Pricing service Platts is poised to launch its long-awaited PlattsDirect online trading exchange in Singapore. The system will replace Platts' existing Page 190 system, but only for fuel oil, within three weeks. The system is...

Industry restructuring--US Varco is buying virtually all of rival ICO's oilfield services business for approximately $136.7 million. (General).(Brief Article)(Statistical Data Included)
July 8, 2002... INDUSTRY RESTRUCTURING -- US Varco is buying virtually all of rival ICO's oilfield services business for approximately $136.7 million, plus the assumption of trade payables and certain other accrued operating expenses. ICO's oilfield services...

Algeria--last week's seven upstream awards were a twin track success, with both new entrants--including Germany's RWE, Italy's Edison, and PetroVietnam--and new acreage taken up beyond the prolific Hassi Berkine Basin. (Countries).(Brief Article)
July 8, 2002... ALGERIA -- Last week's seven upstream awards were a twin track success, with both new entrants--including Germany's RWE, Italy's Edison, and PetroVietnam--and new acreage taken up beyond the prolific Hassi Berkine Basin, where the bulk of...

Brazil--defying bearish market trends, state-controlled Petrobras has reaffirmed plans to spend a hefty $7.3 billion on investments abroad over the next five years. (Countries).(Brief Article)
July 8, 2002... BRAZIL -- Defying bearish market trends, state-controlled Petrobras has reaffirmed plans to spend a hefty $7.3 billion on investments abroad over the next five years. Petrobras still hopes to reach an overseas production goal of 300,000 boe/d...

China--Exxon Mobil's plans to expand capacity at Sinopec's Guangzhou refinery have received the go-ahead, suggesting that the supermajor has secured a quid-pro-quo for its investment in the West-East gas pipeline. (Countries).(Brief Article)
July 8, 2002... CHINA -- Exxon Mobil's plans to expand capacity at Sinopec's Guangzhou refinery have received the go-ahead, suggesting that the supermajor has secured a quid-pro-quo for its investment in the West-East gas pipeline (p1). Exxon and Guangzhou...

Egypt--Apache Corp. last week chalked up its seventh discovery so far this year. (Countries).(gas find)(Brief Article)
July 8, 2002... EGYPT -- Apache Corp. last week chalked up its seventh discovery so far this year. Its deepwater Al Bahig-1X well was the second gas find in its West Mediterranean concession in the Nile Delta; in May the Abu Sir-1X well tested at 17.4 MMcf/d....

Japan--there's no reprise in sight yet for oil demand, down 5.5% in May by latest estimates. (Countries).(Brief Article)
July 8, 2002... JAPAN -- There's no reprise in sight yet for oil demand, down 5.5% in May by latest estimates. Gasoline demand was the one bright spot last month, climbing 1.4% on the year to over 1 million b/d. Not surprisingly, imports have followed a...

Kazakstan--after a two-year appraisal, the Kashagan field in the north Caspian Sea has been confirmed as one of the biggest discoveries for decades, with a declaration of commerciality pegging recoverable reserves at 7 billion-9 billion bbl of oil, and total reserves at 38 billion bbl. (Countries).(Brief Article)
July 8, 2002... KAZAKSTAN -- After a two-year appraisal, the Kashagan field in the north Caspian Sea has been confirmed as one of the biggest discoveries for decades, with a declaration of commerciality pegging recoverable reserves at 7 billion-9 billion bbl...

Qatar--Exxon Mobil and state Qatar Petroleum are thinking big in their latest plan for LNG exports to the UK. (Countries).(Brief Article)
July 8, 2002... QATAR -- Exxon Mobil and state Qatar Petroleum are thinking big in their latest plan for LNG exports to the UK. Their newly announced Qatargas-2 envisages the construction of two trains with capacity of up to 7 million tons/yr each (PIW...

Russia--crude oil exports totaled 2.354 million b/d in June, down by 148,000 b/d from the previous month, but just 52,000 b/d below year-ago levels. (Countries).(Brief Article)(Statistical Data Included)
July 8, 2002... RUSSIA -- Crude oil exports totaled 2.354 million b/d in June, down by 148,000 b/d from the previous month, but just 52,000 b/d below year-ago levels. Part of the slowdown was due to the massive floods that hit southern Russia at the end of...

UAE--Takreer, the refining division of state Abu Dhabi National Oil Co. (Adnoc), has awarded a $480 million contract to France's Technip-Coflexip to upgrade its 420,000 b/d Ruwais refinery. (Countries).(Brief Article)
July 8, 2002... UAE -- Takreer, the refining division of state Abu Dhabi National Oil Co. (Adnoc), has awarded a $480 million contract to France's Technip-Coflexip to upgrade its 420,000 b/d Ruwais refinery. The project, for completion in July 2005, involves...

BP for, Shell wary of Platts' Brent revolution.(Brief Article)
July 8, 2002... In the face of continued objections from Royal Dutch/Shell--the traditional guardian of North Sea trading--pricing service Platts is changing its methodology for assessing the crucial Brent market on Jul. 10. In sharp contrast to Shell, BP is...

Venezuela--with its own natural gas development projects still making only hesitant progress, state Petroleos de Venezuela is pursuing talks with Colombia's Ecopetrol for the supply of up to 200 MMcf/d of gas in a $150 million deal over three years to cover domestic needs. (Countries).(Brief Article)
July 8, 2002... VENEZUELA -- With its own natural gas development projects still making only hesitant progress, state Petroleos de Venezuela is pursuing talks with Colombia's Ecopetrol for the supply of up to 200 MMcf/d of gas in a $150 million deal over three...

Shunning Iraq. (Marketview).(Brief Article)(Statistical Data Included)
July 8, 2002... LONDON -- Iraqi loadings under the UN oil-for-food program were unchanged at 1.14 million b/d in the week to Jun. 28, roughly half of Iraq's true export potential. Baghdad blames the UN's retroactive pricing policy for the collapse,...

Norway review of rules shakes up licensing.(Brief Article)
July 8, 2002... Norway is revising its licensing regime to speed up exploration and development work in mature areas, while also moving forward on plans to reduce gas transport tariffs. Under the new roles, outlined in a late June White Paper, companies can...

PIW market indicators.(Brief Article)(Statistical Data Included)
July 8, 2002... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $24.89 $24.55 $22.86 UK Brent (Dated) 25.69 25.30 23.37 UK...

BP, Shell look to close Exxon valuation gap.(British Petroleum Company PLC, Shell Oil Co. and Exxon Mobil Co.)(Brief Article)(Statistical Data Included)
July 15, 2002... Since its inception in late 1999, Exxon Mobil has always garnered the highest valuation in equity markets of the three supermajors, topping European rivals BP and Royal Dutch/Shell, based largely on its superiority in asset management and...

Kashagan pumps new life into Caspian upstream.(petroleum industry)(Brief Article)(Statistical Data Included)
July 15, 2002... Confirming the growing conviction that the northern Caspian Sea is where the region's real oil riches lie, Kazakstan is in a whirl of upstream activity. After confirmation of a massive commercial discovery at the offshore Kashagan structure,...

Algeria sails, Libya struggles to lift output.(petroleum industry)(Brief Article)(Statistical Data Included)
July 15, 2002... When it comes to growing oil production capacity, North Africa's Opec neighbors Libya and Algeria are as different as chalk and cheese. While both are producing over their Opec quotas, the similarities end there. Algeria is steaming towards its...

Opec cedes market share in first half.(Organization of Petroleum Exporting Countries)(Brief Article)(Statistical Data Included)
July 15, 2002... The first half of 2002 saw a distinct deepening in the erosion of Opec's share of global oil supply, a pattern that shows no clear sign of letting up and seems sure to keep pressure on the 10 members bound by quotas (PIW Jul.1,p1). Despite a...

Exxon's African gambit faces Opec hurdles.(Exxon Mobil exploration projects in West Africa, Organization of Petroleum Exporting Countries)(Brief Article)(Statistical Data Included)
July 15, 2002... As US policy-makers scour the post-Sep. 11 world for alternatives to the Mideast for future US crude oil imports, they could do worse than to study the growth plans of the largest US oil company, Exxon Mobil. Russia and the Caspian top the...

Asian demand growth is set to disappoint.(petroleum demand forecast)(Brief Article)(Statistical Data Included)
July 15, 2002... The rosy forecasts of oil demand growth this year are strongly supported by firming economic recovery across Asia, but first-half demand was so weak that a massive turn-around in Asian oil consumption will be required in the second half if Opec...

Russia oils US capital markets with Urals sales.(Brief Article)(Statistical Data Included)
July 15, 2002... Russian oil companies are wasting no time exploiting the new strategic energy relationship with the US, with this month's delivery of a cargo of Russian Urals to Galveston, Texas, set to be the first of many. While Russian companies appear...

Corporate--German energy giant E.On won approval to take over Ruhrgas, Germany's largest gas supplier and pipeline owner and a 5.3% owner of Russian Gazprom. (General).(Brief Article)(Statistical Data Included)
July 15, 2002... CORPORATE -- German energy giant E.On won approval to take over Ruhrgas, Germany's largest gas supplier and pipeline owner and a 5.3% owner of Russian Gazprom. The $6 billion deal got ministerial blessing, despite contrary advice from two...

Formula prices--Saudi Arabia has hardened terms for August barrels bound for the US for its Arab Extra Light, Light, and Medium grades, while keeping terms for Arab Heavy unchanged. (General).(Brief Article)(Statistical Data Included)
July 15, 2002... FORMULA PRICES -- Saudi Arabia has hardened terms for August barrels bound for the US for its Arab Extra Light, Light, and Medium grades, while keeping terms for Arab Heavy unchanged. Extra Light saw the greatest tightening to US benchmark...

Angola--ChevronTexaco could breath a sigh of relief last week when state Sonangol extended its drilling and production rights in the 450,000 b/d Cabinda field for 20 years to 2030, concluding a tortuous negotiation process and securing future investments. (Countries).(Brief Article)(Statistical Data Included)
July 15, 2002... ANGOLA -- ChevronTexaco could breath a sigh of relief last week when state Sonangol extended its drilling and production rights in the 450,000 b/d Cabinda field for 20 years to 2030, concluding a tortuous negotiation process and securing future...

Colombia--president-elect Alvaro Uribe appointed a former board member of Ecopetrol to the helm of the state oil company, assuring policy continuity. (Countries).(Brief Article)
July 15, 2002... COLOMBIA -- President-elect Alvaro Uribe appointed a former board member of Ecopetrol to the helm of the state oil company, assuring policy continuity. Isaac Yanovich will take over as president on Aug. 7, when Uribe assumes the presidency. He...

CUBA--Venezuela looks likely to suspend an attractive crude oil supply deal to Havana, following the recommendation of Caracas' prosecutor general. (Countries).(Brief Article)
July 15, 2002... CUBA -- Venezuela looks likely to suspend an attractive crude oil supply deal to Havana, following the recommendation of Caracas' prosecutor general. Venezuelan President Chavez--a staunch Castro ally--is being investigated for squandering...

Falkland Islands--a consortium led by Australia's Global Petroleum has picked up the first exploration licenses awarded offshore the Falkland Islands since 1996--10 adjoining exploration licenses covering 57,000 sq km to the south and east of the islands. (Countries).(Brief Article)(Statistical Data Included)
July 15, 2002... FALKLAND ISLANDS -- A consortium led by Australia's Global Petroleum has picked up the first exploration licenses awarded offshore the Falkland Islands since 1996--10 adjoining exploration licenses covering 57,000 sq km to the south and east of...

India--Oil & Natural Gas Corp. (ONGC) plans to invest more than $2 billion to acquire stakes in oil fields overseas but is still not sure whether to import the crude to India, sell it abroad, or swap it mid-way (PIW Jan.28,p5). (Countries).(Brief Article)
July 15, 2002... INDIA -- Oil & Natural Gas Corp. (ONGC) plans to invest more than $2 billion to acquire stakes in oil fields overseas but is still not sure whether to import the crude to India, sell it abroad, or swap it mid-way (PIW Jan.28,p5). The state oil...

Iraq--India plans to renew a crude oil term contract and continue to pursue a stake in the Tuba oilfield, despite having stopped lifting oil cargoes recently became of demands to pay kickbacks, according to state Indian Oil Co. (Countries).(Brief Article)
July 15, 2002... IRAQ -- India plans to renew a crude oil term contract and continue to pursue a stake in the Tuba oilfield, despite having stopped lifting oil cargoes recently became of demands to pay kickbacks, according to state Indian Oil Co. (PIW...

Israel--BG of the UK is in line to become the final partner in the much-delayed and restructured natural gas grid following the April exit of prospective 60% grid owner Tractebel over security concerns. (Countries).(Brief Article)(Statistical Data Included)
July 15, 2002... ISRAEL -- BG of the UK is in line to become the final partner in the much-delayed and restructured natural gas grid following the April exit of prospective 60% grid owner Tractebel over security concerns. BG had until Jul. 14 to decide whether...

Norway--companies operating in mature offshore areas are rejigging their platforms to process an increasing amount of natural gas for commercial use and are looking to develop smaller oil fields and satellites, as well as incremental oil projects in existing fields (PIW Feb.4,p4). (Countries).(Brief Article)
July 15, 2002... NORWAY -- Companies operating in mature offshore areas are rejigging their platforms to process an increasing amount of natural gas for commercial use and are looking to develop smaller oil fields and satellites, as well as incremental oil...

Poland--the privatization of the Gdansk refinery is up in the air again after Russia's biggest oil company, Lukoil, failed to meet a Jul. 9 bid deadline. (Countries).(Brief Article)
July 15, 2002... POLAND -- The privatization of the Gdansk refmery is up in the air again after Russia's biggest oil company, Lukoil, failed to meet a Jul. 9 bid deadline. Lukoil was unable to reach agreement with UK independent Rotch Energy on setting up a...

Russia--gas oil exports could be squeezed when export tariffs are jacked up by 10 [euro]/ton to 35 [euro]/ton ($34.60/ton) on Aug. 1. (Countries).(Brief Article)(Statistical Data Included)
July 15, 2002... RUSSIA -- Gas oil exports could be squeezed when export tariffs are jacked up by 10/ton [euro] to 35/ton [euro] ($34.60/ton) on Aug. 1. Exports fell by 8% in June to 558,000 b/d, from 605,000 b/d the month before, but were still way above June...

Russia--in a further boost to the Sakhalin projects in the Far East, a five-year exploration license for part of the offshore Sakhalin-5 block has gone to state Rosneft, which will operate in alliance with BP. (Countries).(Brief Article)
July 15, 2002... RUSSIA -- In a further boost to the Sakhalin projects in the Far East, a five-year exploration license for part of the offshore Sakhalin-5 block has gone to state Rosneft, which will operate in alliance with BP. The gem in Sakhalin-5 is the...

UK launches new pricing plan for Iraqi crude.(United Kingdom)(Brief Article)
July 15, 2002... In a bid to overhaul the controversial retroactive pricing system for Iraqi crude oil exports, the UK is proposing that the UN set crude prices under the oil-for-food program before cargoes load. In return, it wants only companies with...

United States--after peaking at about 800 MMcf/d a month ago, gas send-out from the key Lake Charles, Louisiana, spot LNG import terminal has plummeted to around 135 MMcf/d recently. (Countries).(liquid natural gas)(Brief Article)(Statistical Data Included)
July 15, 2002... UNITED STATES -- After peaking at about 800 MMcf/d a month ago, gas send-out from the key Lake Charles, Louisiana, spot LNG import terminal has plummeted to around 135 MMcf/d recently. But, the drop-off is expected to be brief as interest...

Making waves. (Marketview).(Platts' new Brent Index method)(Brief Article)(Statistical Data Included)
July 15, 2002... LONDON -- Pricing service Platts' much-heralded new method for assessing the Brent market got off to a bumpy start on Jul. 10: Many in the target audience were thoroughly confused--and some booed vehemently. BP, Norsk Hydro, and Statoil--all...

Has Tangguh LNG priced itself out of China?(liquid natural gas and China National Offshore Oil Corp.)(Brief Article)(Statistical Data Included)
July 15, 2002... Why is China National Offshore Oil Corp. (CNOOC) taking so long to announce who will supply its new Guangzhou plant with $10 billion worth of LNG? It has long been thought that the BP-led Indonesian Tangguh bid, supported by state Pertamina,...

PIW market indicators.(Petroleum Intelligence Weekly)(Brief Article)(Statistical Data Included)
July 15, 2002... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $24.69 $25.07 $23.96 UK Brent (Dated) 25.17 25.77 24.56 UK B-wave...

BP, Shell spar over revised Brent marker.(Royal Dutch/Shell)(Brief Article)
July 22, 2002... It was clear from the first charged discussions in February that adding other grades to the ailing trade in benchmark Brent was not going to deliver instantly the cure that pricing service Platts was seeking. Open strife is now apparent....

Asian ghost returns to haunt Opec.(Organization of Petroleum Exporting Countries)(Brief Article)(Statistical Data Included)
July 22, 2002... If Opec should opt to meet in Japan in September, as was mooted last week, it will do so against a backdrop that closely resembles the last time it met in Asia--with disastrous consequences--in Jakarta in November 1997. Back then, Asia's...

Freight rates buoyed, but not for long.(Brief Article)
July 22, 2002... Freight rates for very large crude carriers (VLCCs) loading in the Mideast Gulf shot to six-week highs last week. Sadly for the depressed tanker industry, the uplift probably does not signal the start of a sustained recovery. With a slew of...

Latin American woes are drag on Petrobras.(Brief Article)
July 22, 2002... Brazil's state-controlled Petrobras is a rare bright spot in Latin America's economic and political gloom. Its oil production is booming, cash reserves are strong, and its share price has defied the downturn on the Brazilian stock market. But...

Gas links lift regional cooperation.(Southeast Asia and Middle East pipelines)(Brief Article)
July 22, 2002... Is the eternal talk of closer energy cooperation so beloved of developing nations finally bearing fruit? It is starting to look that way, driven by the growing use of natural gas, and the need for pipelines to move it to markets. In the Mideast...

Gasoline brings US refiners only brief relief.(supply and demand)(Brief Article)(Statistical Data Included)
July 22, 2002... After struggling for most of the year so far, US refining margins are at last getting a boost from a brisk start to the summer driving season. Perky gasoline demand and falling gasoline inventories have given refiners some relief from bottom of...

Corporate--a legal challenge to E.On's proposed takeover of Ruhrgas could delay the $9.97 billion deal for months, although it is unlikely to derail it. (General).(Brief Article)
July 22, 2002... CORPORATE -- A legal challenge to E.On's proposed takeover of Ruhrgas could delay the $9.97 billion deal for months, although it is unlikely to derail it. A temporary injunction last week blocked the merger following complaints from energy...

European Union--the Competition Commission last week took another step towards eliminating destination clauses--which block the resale of natural gas to third parties--from long-term gas supply contracts to EU member states. (General).(Brief Article)
July 22, 2002... EUROPEAN UNION -- The Competition Commission last week took another step towards eliminating destination clauses--which block the resale of natural gas to third parties--from long-term gas supply contracts to EU member states. Russian gas giant...

Industry restructuring--deepwater drilling specialist Transocean is to sell a portion of its Gulf of Mexico shallow and inland water business unit through an initial public offering (IPO) later this year or in early 2003. (General).(includes industry news)(Brief Article)
July 22, 2002... INDUSTRY RESTRUCTURING -- Deepwater drilling specialist Transocean is to sell a portion of its Gulf of Mexico shallow and inland water business unit through an initial public offering (IPO) later this year or in early 2003. The 28-rig unit is...

LNG--a pioneering three-way swap deal between gas buyers Distrigas in Belgium and Tractebel in the US--both affiliates of France's Suez--and Spain's Gas Natural has been suspended indefinitely, potentially setting the stage for a new trading pattern to emerge in trans-Atlantic LNG. (General).(Brief Article)
July 22, 2002... LNG -- A pioneering three-way swap deal between gas buyers Distrigas in Belgium and Tractebel in the US--both affiliates of France's Suez--and Spain's Gas Natural has been suspended indefinitely, potentially setting the stage for a new trading...

People--Venezuela appointed Rafael Ramirez as oil minister to replace Alvaro Silva who is to become secretary general of Opec, where he succeeds the new head of state Petroleos de Venezuela, Ali Rodriguez. (General).(Brief Article)
July 22, 2002... PEOPLE -- Venezuela appointed Rafael Ramirez as oil minister to replace Alvaro Silva who is to become secretary general of Opec, where he succeeds the new head of state Petroleos de Venezuela, Ali Rodriguez. Ramirez, a 38-year-old mechanical...