Petroleum Intelligence Weekly articles from July 2004

Petroleum Intelligence Weekly archives from July 2004

Yukos loses last round with the law.
July 5, 2004... With bailiffs beating a path to its door, Russia's Yukos is at the end of the road. However you cut it, Russia's biggest oil producer, once praised as a model of transparency and good governance in the post-Soviet era, is being dragged back...

US goes on guzzling, price no problem.
July 5, 2004... A recurrent question for oil market watchers is why high oil prices have yet to take a noticeable bite out of global demand growth. "Where's the price elasticity?" the economists ask. Part of the answer is that it is hidden under income...

Iraq explores limits of new freedom.
July 5, 2004... Last week's low-key transfer of power from the US-led occupying force to the Iraqi interim government heralds a new start for Iraq and gives the off-rich country a chance to stand on its own two feet. But progress will be almost impossible...

India breaks LNG price link to oil.(liquefied natural gas)
July 5, 2004... High crude oil prices are having a severe impact on the seemingly unrelated market for liquefied natural gas (LNG) in Asia. Buyers in Japan and South Korea whose LNG costs are linked to crude--with varying degrees of flexibility--have seen...

Deepwater starts to deliver output splash.
July 5, 2004... With much of the world's most promising onshore acreage reserved for national oil companies, deepwater exploration stands out as one of the most effective ways for other companies to make a meaningful impact on their reserves, production and...

Asian firms drill deeper into Sudan.
July 5, 2004... Just as the recent inking of a peace deal between Khartoum and southern rebels had begun to revive interest in Sudan's oil sector, the deadly conflict in Darfur province seems set to deter Western companies for some time to come. Their...

Brazil's next round is best yet.
July 5, 2004... State-controlled Petrobras did such a good job of snapping up the prime acreage in Brazil's five previous licensing rounds that international oil companies were mostly left with the scraps. Only Royal Dutch/Shell has struck it rich, with others...

Corporate--US oil services giant Halliburton will take $815 million in second-quarter charges, mostly for asbestos-related litigation but including $200 million for additional losses on its Barracuda-Caratinga deepwater drilling project for state-controlled Petrobras offshore Brazil.(General)(Brief Article)
July 5, 2004... CORPORATE--US oil services giant Halliburton will take $815 million in second-quarter charges, mostly for asbestos-related litigation but including $200 million for additional losses on its Barracuda-Caratinga deepwater drilling project for...

Industry restructuring--Royal Dutch/Shell sold a package of US Midcontinent pipelines and terminals to Pennsylvania-based Buckeye Partners for $530 million in cash.(General)(various mergers, acquisitions and divestments)(Brief Article)
July 5, 2004... INDUSTRY RESTRUCTURING--Royal Dutch/Shell sold a package of US Midcontinent pipelines and terminals to Pennsylvania-based Buckeye Partners for $530 million in cash. Australia's Woodside ended an agreement to sell its 30% interest in Block...

Jet fuel--shrinking margins are leading more large oil companies to back out of direct selling to the aviation fuel business.(General)(Brief Article)
July 5, 2004... JET FUEL--Shrinking margins are leading more large oil companies to back out of direct selling to the aviation fuel business. An annual survey of oil company jet fuel sales by PIW sister publication Jet Fuel Intelligence shows suppliers pulling...

LNG--Exxon Mobil and Qatar Petroleum (QP) last week stepped up penetration of Europe's gas market by signing a long-term capacity booking agreement with Fluxys in Belgium to use its Zeebrugge LNG import terminal from 2007, securing 4.5 Bcm (3.4 million metric tons) per year of regasification rights over a 20-year period.(General)(Brief Article)
July 5, 2004... LNG--Exxon Mobil and Qatar Petroleum (QP) last week stepped up penetration of Europe's gas market by signing a long-term capacity booking agreement with Fluxys in Belgium to use its Zeebrugge LNG import terminal from 2007, securing 4.5 Bcm (3.4...

Reserves--stakeholders have taken radically different views of the scale of reserves in Norway's giant Ormen Lange natural gas field, sparking fresh confusion over the oil industry's approach to booking reserves.(General)(Brief Article)
July 5, 2004... RESERVES--Stakeholders have taken radically different views of the scale of reserves in Norway's giant Ormen Lange natural gas field, sparking fresh confusion over the oil industry's approach to booking reserves. Norway's Norsk Hydro has...

OPEC--revenue is on track to be $55 billion higher than previously expected this year because of higher prices and higher exports, according to fresh calculations by the US Energy Information Administration (EIA).(General)(Brief Article)
July 5, 2004... OPEC--Revenue is on track to be $55 billion higher than previously expected this year because of higher prices and higher exports, according to fresh calculations by the US Energy Information Administration (EIA). Updating its January forecast,...

Indonesia--foreign oil companies are skeptical about the offer of sweeter terms for 10 new blocks in remote areas that were tendered last week.(Countries)(Brief Article)
July 5, 2004... INDONESIA -- Foreign oil companies are skeptical about the offer of sweeter terms for 10 new blocks in remote areas that were tendered last week. The latest attempt to attract investors offers developers a production share of 35% for oil and...

Iraq--in a deal that is sure to stir controversy, Norwegian independent DNO has entered into an agreement with the Kurdistan regional government to explore for and develop oil and gas in the northern region.(Countries)(Brief Article)
July 5, 2004... IRAQ -- In a deal that is sure to stir controversy, Norwegian independent DNO has entered into an agreement with the Kurdistan regional government to explore for and develop oil and gas in the northern region. Any Kurdish claim to the...

Norway--Statoil has been issued a penalty notice by Okokrim, an economic crime unit, for 20 million kroner ($2.9 million) for illegal trading in influence in relation to its controversial Horton Investment contract in Iran.(Countries)(Brief Article)
July 5, 2004... NORWAY -- Statoil has been issued a penalty notice by Okokrim, an economic crime unit, for 20 million kroner ($2.9 million) for illegal trading in influence in relation to its controversial Horton Investment contract in Iran. Okokrim also...

Norway--a strike by two oil workers' unions took an estimated 100,000 b/d off the expected June monthly average for oil production, primarily from Statoil's Snorre field.(Countries)(Brief Article)
July 5, 2004... NORWAY -- A strike by two oil workers' unions took an estimated 100,000 b/d off the expected June monthly average for oil production, primarily from Statoil's Snorre field (PIW Jun.14,p1). Although the strike lasted longer than most previous...

Russia--bowing to relentless pressure from its neighbors, Moscow will prohibit single-hulled tankers from carrying fuel oil in its waters from Apr. 5, 2005, to coincide with a global ban.(Countries)(Brief Article)
July 5, 2004... RUSSIA -- Bowing to relentless pressure from its neighbors, Moscow will prohibit single-hulled tankers from carrying fuel oil in its waters from Apr. 5, 2005, to coincide with a global ban. Shippers say that the move will have little impact, as...

Russia--crude production continued to grow in May, reaching 9.08 million b/d (38.42 million metric tons), up 9.6% from a year ago and 70,400 b/d more than in April.(Countries)(Brief Article)
July 5, 2004... RUSSIA -- Crude production continued to grow in May, reaching 9.08 million b/d (38.42 million metric tons), up 9.6% from a year ago and 70,400 b/d more than in April. However, a record high tariff on crude exports--set to soar to $70/ton...

United States--Canada was the top crude supplier to the US in the first half of 2004, with four of the top five showing increases from the first half of 2003, while Saudi Arabia has sent considerably less to the US so far this year.(Countries)(Brief Article)
July 5, 2004... UNITED STATES -- Canada was the top crude supplier to the US in the first half of 2004, with four of the top five showing increases from the first half of 2003, while Saudi Arabia has sent considerably less to the US so far this year, according...

United States--Shell Exploration & Production's Mars platform in the Gulf of Mexico, shut since May 22 after a small leak was discovered, was due back in normal production by the end of last week at 170 MMcf/d of natural gas and 150,000 b/d of oil.(Countries)(Brief Article)
July 5, 2004... UNITED STATES -- Shell Exploration & Production's Mars platform in the Gulf of Mexico, shut since May 22 after a small leak was discovered, was due back in normal production by the end of last week at 170 MMcf/d of natural gas and 150,000 b/d...

Kremlin turns up the heat on idle licenses.(What's New Around the World)
July 5, 2004... Russia's Ministry of Natural Resources is cracking down on license holders for major oil and gas projects, targeting companies dragging their feet on development. Royal Dutch/Shell, Lukoil and Yukos have all been summoned to the ministry to...

Venezuela--state oil giant Petroleos de Venezuela has offered to buy back up to $2.6 billion in external bonds maturing between 2006 and 2028 and wants to amend the terms and conditions of any notes outstanding after the offer closes on Jul. 26.(Countries)(Brief Article)
July 5, 2004... VENEZUELA -- State oil giant Petroleos de Venezuela has offered to buy back up to $2.6 billion in external bonds maturing between 2006 and 2028 and wants to amend the terms and conditions of any notes outstanding after the offer closes on Jul....

Settling down.(Marketview)
July 5, 2004... NEW YORK -- Oil prices ended June 12.5% lower than where they began the month, with the front month light, sweet crude oil futures contract on the New York Mercantile Exchange (Nymex) moving from a yearly high close of $42.33/bbl on Jun. 1 to...

PIW market indicators.(Illustration)
July 5, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $32.79 $34.55 $34.55 UK Brent (Dated) ...

Saudis buy their way into Japan.
July 12, 2004... At first blush, Saudi Aramco's deal to buy a 15% stake in Showa Shell Sekiyu does not look that attractive--a minority stake in Japan's smallest refining group, in a market notorious for weak margins and stagnant product demand. But Aramco has...

Baltic barrels reverse Urals price pattern.
July 12, 2004... Russia's massive boost in Baltic Sea crude exports is starting to erode the typical 5 cents-6 cents per barrel premium that Urals crude blend shipped out of Northwest Europe has usually enjoyed over Mediterranean cargoes. Analysis of weekly...

Small respite for Africa's old guard.
July 12, 2004... While West Africa's new oil producers hog the limelight with their dazzling growth prospects, the region's mature producers in Cameroon, Congo (Brazzaville) and Gabon are wrestling with terminal production decline. At least Gabon and Congo are...

Saudis lead supply gains in June.
July 12, 2004... Any worries about supply should be allayed by the surge in oil production registered in June. PIW's monthly output survey shows that global production including refinery gains rose to 82.6 million barrels per day last month, streaking ahead of...

High risks in PDV's low budget strategy.(Petroleos de Venezuela)
July 12, 2004... Tucked away in western Zulia state, the 1 billion barrel Tomoporo oil field is the poster child for Venezuela's campaign to expand production capacity. A deep pocket of medium grade 24[degrees] API gravity crude, Tomoporo today is only...

Midstream sales raise utility, partners' profiles.
July 12, 2004... Convergence was all the rage in the Enron era when the energy merchants led the rush towards business integration across the energy chain. Divergence is now the vogue as integrated oil companies shed businesses that don't deliver big enough...

Hopes rise from Angola's ultra deep.
July 12, 2004... Are Angola's ultra-deep waters about to bear their first fruit? Much depends on BP, which is preparing to make an investment decision on Block 31 amid talk among analysts of it being a potential 500,000 barrel per day gusher. If positive signs...

Formula prices--Saudi Arabia moved its price formulas for August to Europe and Asia lower while most price formulas to the US will rise slightly from July (PIW Jun. 14, p6).(General)
July 12, 2004... FORMULA PRICES--Saudi Arabia moved its price formulas for August to Europe and Asia lower while most price formulas to the US will rise slightly from July (PIW Jun.14,p6). The deepest cut was for Arab Heavy to Europe which fell by $1.30/bbl....

GTL--Qatar's plans to reach 400,000 b/d of gas-to-liquids capacity appear to be shaping up nicely (PIW Mar. 15, p6).(General)(Brief Article)
July 12, 2004... GTL--Qatar's plans to reach 400,000 b/d of gas-to-liquids capacity appear to be shaping up nicely (PIW Mar.15,p6). Royal Dutch/Shell and state Qatar Petroleum (QP) last week signed a development and production-sharing agreement setting out the...

Industry restructuring--US Williams is selling three natural gas processing plants in Western Canada to Calgary-based Inter Pipeline Fund for US$540 million.(General)(Brief Article)
July 12, 2004... INDUSTRY RESTRUCTURING--US Williams is selling three natural gas processing plants in Western Canada to Calgary-based Inter Pipeline Fund for US$540 million. Norway's Petroleum and Energy Ministry sold a further 4.6% stake in state oil giant...

People--Dhiaa al-Bakkaa replaced Shamkhi Faraj as director general of Iraq's State Oil Marketing Organization (Somo).(General)(Brief Article)
July 12, 2004... PEOPLE -- Dbiaa al-Bakkaa replaced Shamkhi Faraj as director general of Iraq's State Oil Marketing Organization (Somo). Faraj returns to his previous post as an adviser in the finance and economic department of the oil ministry. Al-Bakkaa was...

China--the offshore monopoly of China National Offshore Oil Corp. (CNOOC) is being challenged by new rules that will mean that Chinese oil companies no longer have to tie up with CNOOC to explore in Chinese deepwater areas.(Countries)(Brief Article)
July 12, 2004... CHINA -- The offshore monopoly of China National Offshore Oil Corp. (CNOOC) is being challenged by new rules that will mean that Chinese oil companies no longer have to tie up with CNOOC to explore in Chinese deepwater areas. Facing declining...

Egypt--Two agreements signed by BP last week with state Egyptian General Petroleum Corp. (EGPC) and Egyptian Natural Gas Holding Co. (Egas) have finally made the supermajor a player in the country's LNG scene (PIW Apr. 5, p8).(Countries)(Brief Article)
July 12, 2004... EGYPT -- Two agreements signed by BP last week with state Egyptian General Petroleum Corp. (EGPC) and Egyptian Natural Gas Holding Co. (Egas) have finally made the supermajor a player in the country's LNG scene (PIW Apr.5,p8). Under the first,...

India--Upstream giant Oil and Natural Gas Corp. (ONGC) has unveiled a $6.5 billion investment plan to establish an integrated business, which includes building power plants, acquiring ships, selling LNG and marketing petroleum products (PIW Jun. 14, p4).(Countries)
July 12, 2004... INDIA -- Upstream giant Oil and Natural Gas Corp. (ONGC) has unveiled a $6.5 billion investment plan to establish an integrated business, which includes building power plants, acquiring ships, selling LNG and marketing petroleum products (PIW...

Iraq--Crude oil export loadings returned to over 1.7 million b/d last week after being cut to close to 1 million b/d by further sabotage to pipelines in the south of the country on Jul. 3.(Countries)(Brief Article)
July 12, 2004... IRAQ -- Crude oil export loadings returned to over 1.7 million b/d last week after being cut to close to 1 million b/d by further sabotage to pipelines in the south of the country on Jul. 3. The pipeline sabotage--the third incident to disrupt...

Kazakhstan--the international consortium developing the giant Kashagan field has suffered another blow after a drilling rig working on the offshore field was seized by customs authorities because of alleged unpaid duties by the rig's owner, US-based Parker Drilling.(Countries)(Brief Article)
July 12, 2004... KAZAKHSTAN -- The international consortium developing the giant Kashagan field has suffered another blow after a drilling rig working on the offshore field was seized by customs authorities because of alleged unpaid duties by the rig's owner,...

Mauritania--Australia's Woodside Petroleum has outlined plans for an ambitious offshore drilling campaign to start next month.(Countries)(Brief Article)
July 12, 2004... MAURITANIA -- Australia's Woodside Petroleum has outlined plans for an ambitious offshore drilling campaign to start next month. The operation will involve up to 21 exploration, appraisal and development wells across the promising Chinguetti,...

Namibia--UK independent Tullow Oil has given key backing to the offshore Kudu gas project, paving the way for one of southern Africa's largest gas-fired power developments.(Countries)(Brief Article)
July 12, 2004... NAMIBIA -- UK independent Tullow Oil has given key backing to the offshore Kudu gas project, paving the way for one of southern Africa's largest gas-fired power developments. Tullow's newly acquired Energy Africa unit, the National Petroleum...

Russia--As the midnight deadline passed Jul. 7 for oil giant Yukos to pony up its $3.4 billion tax bill, investors waited for either the shareholders to cut a deal with the Kremlin, or for the tax police to raid the company's offices and haul out property.(Countries)
July 12, 2004... RUSSIA -- As the midnight deadline passed Jul. 7 for oil giant Yukos to pony up its $3.4 billion tax bill, investors waited for either the shareholders to cut a deal with the Kremlin, or for the tax police to raid the company's offices and haul...

Ukraine--Kiev has caved in to Russian demands to reverse the flow of the Odessa-Brody crude pipeline, which would allow Russia to boost exports out of the Black Sea by 180,000 b/d.(Countries)(Brief Article)
July 12, 2004... UKRAINE -- Kiev has caved in to Russian demands to reverse the flow of the Odessa-Brody crude pipeline, which would allow Russia to boost exports out of the Black Sea by 180,000 b/d. The government is now considering a proposal from...

United States--the Federal Trade Commission (FTC) has reinstated antitrust charges against Unocal, alleging the company deceived California state regulators and illegally gained monopoly power to produce clean-burning gasoline.(Countries)(Brief Article)
July 12, 2004... UNITED STATES -- The Federal Trade Commission (FTC) has reinstated antitrust charges against Unocal, alleging the company deceived California state regulators and illegally gained monopoly power to produce clean-burning gasoline. FTC is also to...

Qatar: LNG race speeds up, Exxon digs in deeper.(What's New Around the World)(liquified natural gas)
July 12, 2004... The breakneck expansion of Qatar's LNG ventures reached a new milestone last week as the RasGas-2 LNG venture--70% owned by state Qatar Petroleum (QP) and 30% by Exxon Mobil--launched its planned fifth train, awarding a $1.5 billion onshore...

News junkies.(Marketview)
July 12, 2004... LONDON -- Markets reacted to headlines first and fundamentals second lust week--but at least fundamentals are finally starting to make an appearance in crude markets. The latest rally was initially triggered by Saudi Oil Minister Ali...

Nymex, ICE bicker after court rules on antitrust claims.(Brief Article)
July 12, 2004... The New York Mercantile Exchange (Nymex) said Jul. 8 that a New York judge had dismissed all three antitrust counterclaims filed against it by its archrival, the IntercontinentalExehange (ICE). Taken at face value, the judgment that Nymex "has...

PIW market indicators.
July 12, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $35.31 $33.26 $34.25 UK Brent (Dated) 36.19 34.01 ...

Opec runs out of instant options.(Organization of Petroleum Exporting Countries)
July 19, 2004... To avoid being dismissed as a mere bystander while oil prices buzz near $40 per barrel, Opec took the smart decision last week and canceled its planned Jul. 21 meeting. Why bother to meet when oil markets are being driven by the investment...

Exxon takes $25 billion bet on Qatar.(Exxon Mobil Corp.)
July 19, 2004... Exxon Mobil's $7 billion agreement last week to build a gas-to-liquids (GTL) plant in Qatar is yet more proof, if any were needed, of the blooming relationship between the US corporate giant and one of the world's smallest countries (PIW...

For big oil, rewards exceed risks in Russia.
July 19, 2004... Russia is a risky place to do business, but not risky enough, it seems, to deter Big Oil. Despite the Kremlin's campaign against Yukos, rows over contract terms, and hiccups in the banking sector, analysts and investors believe that Russia,...

US firms push at Libya's door.(petroleum industries in Libya)
July 19, 2004... Negotiations by US oil companies ConocoPhillips, Marathon and Amerada Hess--all of the Oasis Group--and Occidental to return to operate their assets in Libya are shaping up to be a test case of the country's grand reopening. Indications so far...

PetroChina: more desperate than daring?(PetroChina Company Ltd.)(Brief Article)
July 19, 2004... PetroChina this month secured new rights to explore for oil and gas offshore China, until now the almost exclusive preserve of rival China National Offshore Oil Corp. (CNOOC). While it might be construed as a bold new strategic initiative, it...

Devon shifts from shopping to exploration.(Devon Energy Corp.)
July 19, 2004... After swallowing up other companies at a rapid rate for much of the past decade, Oklahoma-based Devon Energy has been giving more attention to exploration of late. Since acquiring Ocean Energy last year, the company has also been working to...

Coal-fueled GTL makes first waves.(gas-to-liquids)
July 19, 2004... As Qatar advances plans on the second and third of five to six proposed natural gas-to-liquids (GTL) facilities using various versions of the Fischer-Tropsch (FT) technology, ventures are also moving closer to reality in the US and China to...

Devon Energy's Nichols looks beyond acquisitions.(Larry Nichols interview)(Interview)
July 19, 2004... US independent Devon Energy is perhaps best known for a series of acquisitions that mainly served to beef up its onshore gas business in North America. The purchase of Ocean Energy broke that pattern by giving it an offshore exploration...

Earnings--double-digit percentage gains in profits are expected when the large integrated oil companies begin reporting their second-quarter financial results later this month.(General)(Brief Article)
July 19, 2004... EARNINGS--Double-digit percentage gains in profits are expected when the large integrated oil companies begin reporting their second-quarter financial results later this month. Analysts expect the aggregate second-quarter earnings for large...

GTL--the Mideast Gulf state of Qatar has taken the biggest step yet in its goal of becoming the world's natural gas-to-liquids center, as state Qatar Petroleum and Exxon Mobil last week agreed to build and operate the world's largest GTL plant at Ras Laffan.(gas-to-liquids center)(Brief Article)
July 19, 2004... GTL--The Mideast Gulf state of Qatar has taken the biggest step yet in its goal of becoming the world's natural gas-to-liquids center, as state Qatar Petroleum and Exxon Mobil last week agreed to build and operate the world's largest GTL plant...

IEA--the Paris-based agency's first forecasts for 2005 show continued robust demand growth and adequate supplies.(General)(Brief Article)
July 19, 2004... IEA--The Paris-based agency's first forecasts for 2005 show continued robust demand growth and adequate supplies. The "call on Opec oil plus stock change" rises to 27.4 million b/d next year from 27.2 million b/d expected this year, according...

Industry restructuring--Romania has agreed to sell Austria's OMV a 51% stake in its state-owned oil and gas group Petrom, for a total of 1.4 billion [euro] ($1.7 billion).(General)(Brief Article)
July 19, 2004... INDUSTRY RESTRUCTURING--Romania has agreed to sell Austria's OMV a 51% stake in its state-owned oil and gas group Petrom, for a total of 1.4 billion [euro] ($1.7 billion). OMV will have to divest its 25.1% stake in Rompetrol, currently the...

LNG--in what may be a snub to Russia, which has still to decide whether to supply Kovykta gas into northeast China, three Chinese companies have signed preliminary agreements to import LNG from Indonesia to supply the region (PIW Jun.21,p3).(General)(Liquefied natural gas)(Brief Article)
July 19, 2004... LNG--In what may be a snub to Russia, which has still to decide whether to supply Kovykta gas into northeast China, three Chinese companies have signed preliminary agreements to import LNG from Indonesia to supply the region (PIW Jun.21,p3)....

North Sea -- UK Department of Trade and Industry (DTI) has given Total the go-ahead to develop the Glenelg field, making it the 300th acreage to receive development consent in the UK Continental Shelf.(General)(Brief Article)
July 19, 2004... NORTH SEA--UK Department of Trade and Industry (DTI) has given Total the go-ahead to develop the Glenelg field, making it the 300th acreage to receive development consent in the UK Continental Shelf. Glenelg, discovered in 1999, is a complex...

People--Petronas chairman Azizan Zainul Abidin has died.(General)(Brief Article)
July 19, 2004... PEOPLE--Petronas chairman Azizan Zainul Abidin has died. The Malaysian state oil and gas firm has yet to name a successor. The New York Mercantile Exchange (Nymex) announced that James Newsome, the former chairman of market regulator the...

Algeria--some 35 international companies are said to have lined up to bid for the 10 exploration blocks on offer in the country's fifth licensing round, which opened in April.(Countries)(Brief Article)
July 19, 2004... ALGERIA -- Some 35 international companies are said to have lined up to bid for the 10 exploration blocks on offer in the country's fifth licensing round, which opened in April. Bids are due and will be opened on Jul. 28, and state oil company...

Brazil--crude and natural gas production by state-controlled Petrobras recovered in June, as an FPSO began operations in the offshore Marlim Sul field.(Countries)(Petroleo Brasileiro S.A.)(Brief Article)
July 19, 2004... BRAZIL -- Crude and natural gas production by state-controlled Petrobras recovered in June, as an FPSO began operations in the offshore Marlim Sul field. Petrobras produced 1.661 million b/d of crude and 2.184 Bcf/d of natural gas from its...

Iran--oil Minister Bijan Zanganeh has ruled out signing production sharing agreements (PSAs) with international oil companies, and vowed to stick to the existing "buyback" system, which companies chasing upstream deals say is not conducive to long-term investment.(Countries)(Brief Article)
July 19, 2004... IRAN -- Oil Minister Bijan Zanganeh has ruled out signing production sharing agreements (PSAs) with international oil companies, and vowed to stick to the existing "buyback" system, which companies chasing upstream deals say is not conducive to...

Italy--the antitrust authority will drop a two-year enquiry into Eni's natural gas market dominance if the firm launches the country's first gas release by October.(Countries)(Brief Article)
July 19, 2004... ITALY -- The antitrust authority will drop a two-year enquiry into Eni's natural gas market dominance if the firm launches the country's first gas release by October. Eni must auction 2.3 Bcm/yr (222 MMcf/d)--3% of Italy's total demand over...

Kazakhstan--a 50-50 Kazakh and Chinese state joint venture has been set up to own and operate a 988 km pipeline running east from the central town of Atasu to Druzhba-Alashenkou on the Chinese border.(Countries)(Brief Article)
July 19, 2004... KAZAKHSTAN -- A 50-50 Kazakh and Chinese state joint venture has been set up to own and operate a 988 km pipeline running east from the central town of Atasu to Druzhba-Alashenkou on the Chinese border. The pipeline, which will have an initial...

Russia--law enforcement agencies are going after Yukos' oilfields as bailiffs seized shares in the embattled oil company's major producing subsidiaries--Yuganskneftegas and Samaraneftegas--acting on a court ruling that demanded payment of Yukos' $3.4 billion tax bill for 2000.(Countries)(Brief Article)
July 19, 2004... RUSSIA -- Law enforcement agencies are going after Yukos' oilfields as bailiffs seized shares in the embattled oil company's major producing subsidiaries--Yuganskneftegas and Samaraneftegas--acting on a court ruling that demanded payment of...

Russia--pressure to restrict international oil companies' access to oil and natural gas reserves is mounting. Deputies of the State Duma, or lower house of parliament, are preparing an amendment that would limit foreign oil company participation in auctions to develop the country's natural resources.(Countries)
July 19, 2004... RUSSIA -- Pressure to restrict international oil companies' access to oil and natural gas reserves is mounting. Deputies of the State Duma, or lower house of parliament, are preparing an amendment that would limit foreign oil company...

Mexico launches new MSC round.(multiple service contracts)
July 19, 2004... Mexico's state Pemex is moving with more confidence as it prepares a new tender round for multiple service contracts (MSC) to produce unassociated natural gas from the Burgos Basin. Pemex will tender three blocks, carved out of two that...

Europe's refinery crunch.(Marketview)
July 19, 2004... LONDON -- The adequacy of European--rather than US--refining capacity could become an issue later this year as producers in the south of the region race against the clock to prepare their 6.5 million b/d capacity for new European Union clean...

Russia ramps up the rates on products exports.(Brief Article)
July 19, 2004... Moscow is further raising the tax burden on Russian oil producers, this time by hiking export duties on oil products. Export duties on products exports are to go up to $45.40/metric ton, or 65% of the export duty on crude, with effect from Aug....

PIW market indicators.(Petroleum intelligence weekly)(Illustration)
July 19, 2004... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $35.58 $35.35 $34.55 UK Brent (Dated) ...

PIW scorecard: Opec prices at 24-year peak.(Petroleum Intelligence Weekly )
July 26, 2004... Underscoring the strength of global oil markets, Opec producers are selling more crude at higher prices than at any time in the last 24 years, all without any significant easing of their term contract pricing formulas. While the peaks of...

Shell seeks relief through E&P upgrade.(Royal Dutch-Shell Group of Cos., exploration and production)
July 26, 2004... Royal Dutch/Shell is set to announce a substantial rise in quarterly earnings this week, but investors are likely to be more interested in what progress the group is making to recover from this year's reserves downgrades, and improve the...

Litigants are forcing corporates to come clean.
July 26, 2004... The spectacle of Enron's Kenneth Lay in handcuffs, Mikhail Khodorkovsky of Yukos behind bars in a Moscow court and ousted Royal Dutch/Shell chief Phil Watts fleeing TV cameras speaks volumes about how far some of the stars of global energy have...

Bolivia's big vote is small step for gas.
July 26, 2004... While the political buzz from Bolivia's Jul. 18 referendum on energy strategy is mostly positive, the practical consequences are less clear. The vote has rekindled faded hopes of finding a way to develop for export the dirt-poor country's...

Fuel oil is the joker in Chinese demand.
July 26, 2004... Middle distillate transport fuels and naphtha for petrochemicals plants are leading China's staggering 16% year-on-year growth in oil consumption and both will continue to be the main drivers of demand. But the electricity crisis now gripping...

Exxon harbors no doubts on size appeal.(Exxon Mobil Corp.)
July 26, 2004... Exxon Mobil has a reputation for moving slowly and cautiously when approaching any new endeavor, but when it moves, the earth tends to shift on its axis. The recently signed heads of agreement with the Mideast Gulf state of Qatar for a $7...

Why Qatar means so much to Exxon Mobil.(Interview)
July 26, 2004... Exxon Executive Vice President Harry Longwell talked to PIW last week about the company's huge plans for developing the vast gas resources of tiny Qatar, following the signing of an agreement to build and operate the world's largest...

People--Dale Laurance will step down as president of Occidental Petroleum on Dec. 31 for health reasons.(General)(Ray Irani )(Brief Article)
July 26, 2004... PEOPLE -- Dale Laurance will step down as president of Occidental Petroleum on Dec. 31 for health reasons. Chairman Ray Irani will assume the additional title of president on Jan. 1, 2005. Last week Stephen Chazen was promoted to senior...