Petroleum Intelligence Weekly articles from June 2005

Petroleum Intelligence Weekly archives from June 2005

Debate heats up over twilight of Saudi oil.(Twilight in the Desert)(Book Review)
June 6, 2005... The debate over Saudi Arabia's future oil production potential is about to heat up again. Houston investment banker Matt Simmons has just published "Twilight in the Desert," a dark assessment of future petroleum prospects for the kingdom that...

Diesel driving US market, not gasoline.
June 6, 2005... The first week of the US summer driving season is hardly the moment when one would expect to see the heating oil contract on the New York Mercantile Exchange (Nymex) trading above the gasoline contract. Yet that's just what happened at times...

Russian oil patch appealing through it all.(OAO NK Yukos)
June 6, 2005... Few were surprised when judges in Moscow handed down a hefty nine-year sentence this week for Mikhail Khodorkovsky, ensuring that the core shareholder of fallen oil major Yukos and once Russia's richest man will not be walking free before the...

Going from bad to worse in Iraq oil industry.(State Oil Marketing Organization)
June 6, 2005... More than a year after the US Congress set aside $2 billion for reconstruction of Iraq's oil infrastructure, precious little has actually been done, leaving the oil-rich country unable to meet its production and export targets even on days when...

Qatar, Iran face limits at their mega gas field.
June 6, 2005... There may be limits to sustainable production growth not just in Saudi Arabia's oil fields (p1), but also in the world's largest gas field, known as the North Field by the Qatari holders of just over 60% of the estimated 1,400 trillion cubic...

Tough terms aren't scary in Libya, Algeria.
June 6, 2005... The results earlier this year of Libya's long-awaited first upstream tender under new Epsa-4 rules saw US companies welcomed back with open arms--but at the cost of large signature bonuses and some stunningly tough fiscal terms. Expectations...

Pundits up 2005 forecasts, split on 2006.(Petroleum price forecast)
June 6, 2005... Oil pundits have ratcheted up their forecasts yet again, as they--yet again--play catch-up with the crude price already on their screens. Oil may be plentiful now, but a majority of analysts surveyed by PIW still believe the market will be...

Twilight In The Desert--doubting Saudi potential.(Book Review)
June 6, 2005... Matthew Simmons, head of the specialized, Houston-based investment bank Simmons & Company International has just published "Twilight In The Desert," a book that pulls together his research into the oil production capabilities of Saudi Arabia....

Corporate--production costs rose at a double-digit pace for the top 50 oil and gas producers in the US last year, but profits increased even faster, according to an upstream performance review by research firm John S. Herold.(GENERAL)(Brief Article)
June 6, 2005... CORPORATE -- Production costs rose at a double-digit pace for the top 50 oil and gas producers in the US last year, but profits increased even faster, according to an upstream performance review by research firm John S. Herold. Production costs...

Formula prices--Mexico widened for June the discount in its pricing formula for US-bound cargoes of heavy, sour Maya in order to remain competitive with similar grades, including Ecuador's Napo.(GENERAL)(Brief Article)
June 6, 2005... FORMULA PRICES -- Mexico widened for June the discount in its pricing formula for US-bound cargoes of heavy, sour Maya in order to remain competitive with similar grades, including Ecuador's Napo. The discount for lighter Isthmus grade to the...

Industry restructing--UK-based International Power (IP) and partner Japan's Mitsui have acquired from US-based Calpine the 1,200 MW Saltend power plant in the UK for 500 million [pounds sterling] ($910 million).(GENERAL)
June 6, 2005... INDUSTRY RESTRUCTURING -- UK-based International Power (IP) and partner Japan's Mitsui have acquired from US-based Calpine the 1,200 MW Saltend power plant in the UK for 500 million [pounds sterling] ($910 million). Calgary-based oil sands...

Brazil--much of the $1.2 billion that Japanese banks tentatively agreed to lend state-controlled Petrobras through 2010 will go toward upgrading its roughly 2 million b/d of domestic refining capacity to take more of its heavy crude.(COUNTRIES)(Brief Article)
June 6, 2005... BRAZIL--Much of the $1.2 billion that Japanese banks tentatively agreed to lend state-controlled Petrobras through 2010 will go toward upgrading its roughly 2 million b/d of domestic refining capacity to take more of its heavy crude. The...

Canada--all three of China's state oil majors will have interests in Alberta's vast oil sands deposits after top refiner Sinopec completes the C$105 million (US$84 million) purchase of a 40% stake in the Northern Lights project from Calgary-based Synenco.(COUNTRIES)(Brief Article)
June 6, 2005... CANADA -- All three of China's state oil majors will have interests in Alberta's vast oil sands deposits after top refiner Sinopec completes the C$105 million (US$84 million) purchase of a 40% stake in the Northern Lights project from...

China--crude oil imports surged 22% to a record high of 2.99 million b/d in April, up 550,000 b/d from a year earlier, reversing a first-quarter slowing in import growth and underpinning signs that demand remains strong after all.(COUNTRIES)(Brief Article)
June 6, 2005... CHINA--Crude oil imports surged 22% to a record high of 2.99 million b/d in April, up 550,000 b/d from a year earlier, reversing a first-quarter slowing in import growth and underpinning signs that demand remains strong after all. Imports from...

Egypt--the country's second LNG export plant has started up, three months early, leaving six cargoes free for spot trade before a long-term contract kicks in.(COUNTRIES)(Brief Article)
June 6, 2005... EGYPT -- The country's second LNG export plant has started up, three months early, leaving six cargoes free for spot trade before a long-term contract kicks in. Malaysian state Petronas loaded the first cargo from Egyptian LNG (ELNG) at Idku,...

Japan--crude imports held static at 3.84 million bid in April ahead of refinery maintenance, with Saudi Arabia outpacing the UAE at boosting term contract volumes.(COUNTRIES)(Brief Article)
June 6, 2005... JAPAN -- Crude imports held static at 3.84 million bid in April ahead of refinery maintenance, with Saudi Arabia outpacing the UAE at boosting term contract volumes. April imports were down 0.3%, or 11,000 b/d, from a year ago. Imports from...

India--drilling successes in the western onshore and eastern offshore regions encouraged 26 foreign firms to bid in the fifth round of the New Exploration Licensing Policy (NELP-5), although many majors are still holding back.(COUNTRIES)(Brief Article)
June 6, 2005... INDIA--Drilling successes in the western onshore and eastern offshore regions encouraged 26 foreign firms to bid in the fifth round of the New Exploration Licensing Policy (NELP-5), although many majors are still holding back. The oil ministry...

Nigeria--as the government's 2008 deadline for the elimination of gas flaring looms, a survey by PIW sister publication World Gas Intelligence finds that most oil majors risk missing the target, although only Shell has admitted it will fail.(COUNTRIES)(Brief Article)
June 6, 2005... NIGERIA--As the government's 2008 deadline for the elimination of gas flaring looms, a survey by PIW sister publication World Gas Intelligence finds that most oil majors risk missing the target, although only Shell has admitted it will fail....

Russia--stagnating crude production and a massive tax hike are taking their toll on exports.(COUNTRIES)(Brief Article)
June 6, 2005... RUSSIA--Stagnating crude production and a massive tax hike are taking their toll on exports. Moscow slashed shipments by 129,000 bid from May levels in the June port loading programs. Local traders say the drop is mostly because oil producers...

Saudi Arabia--state Saudi Aramco has set the ball rolling for targeted development by 2009 of the estimated 1.2 million b/d, Arab Light-producing Khurais field, awarding the project management contract for the largest oil production project implemented in the Gulf since the 1950s to US' Foster Wheeler.(Brief Article)
June 6, 2005... SAUDI ARABIA--State Saudi Aramco has set the ball rolling for targeted development by 2009 of the estimated 1.2 million b/d, Arab Light-producing Khurais field, awarding the project management contract for the largest oil production project...

Spain--in a sign that neither financial collapse earlier this decade nor newer resource nationalism is scaring investors off Latin America, Repsol YPF last week disclosed plans to invest more than $10 billion over the next five years in South America's southern cone and the Caribbean.(COUNTRIES)(Brief Article)
June 6, 2005... SPAIN--In a sign that neither financial collapse earlier this decade nor newer resource nationalism is scaring investors off Latin America, Repsol YPF last week disclosed plans to invest more than $10 billion over the next five years in South...

United States--oil consumption grew by a strong 2.8% in March from year-ago levels, to 20.73 million b/d, but the main driver was "other products" instead of transportation fuels, the traditional engine of growth, according to monthly data from the Energy Information Administration (EIA) (p1).(COUNTRIES)
June 6, 2005... UNITED STATES -- Oil consumption grew by a strong 2.8% in March from year-ago levels, to 20.73 million b/d, but the main driver was "other products" instead of transportation fuels, the traditional engine of growth, according to monthly data...

Global oil supply keeps on coming.
June 6, 2005... Global supply ran even further ahead of demand in May, adding another 540,000 b/d, while demand looks to have slipped by as much as 1.2 million bid from April. The growing surplus briefly cooled oil prices in mid-May, before prices turned...

Oil on steroids.(Marketview)(New York Mercantile Exchange)
June 6, 2005... NEW YORK -- Fresh money found its way into energy markets last week, invigorating futures contracts and pumping up prices. Oil traders and refiners--the people with physical oil--stood by and watched paper traders push front-month crude oil in...

Critical challenges facing the upstream business.(Annual Oil & Money Conference, jointly )(Brief Article)
June 6, 2005... The 26th Annual Oil & Money Conference, jointly convened by Energy Intelligence and the International Herald Tribune. will take place on Sep. 20-21, 2005, at the Inter-Continental Hotel in London. The theme for this year's conference is The...

PIW market indicators.(Petroleum Intelligence Weekly)(Petroleum spot prices)(Illustration)
June 6, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $48.18 $45.97 $47.34 UK Brent (Dated) 50.02 48.59 48.51...

Opec faces the limits of influence.
June 13, 2005... Twelve months ago, a terrorist rampage in the Saudi oil town of Al-Khobar set the tone for the mid-year Opec meeting in Beirut. As Opec convenes again in Vienna this week, terrorism has slipped from oil market headlines. But other anxieties...

Sibneft's fate tied to Yukos' endgame.(Sibneft Oil)
June 13, 2005... What's in store for Russia's Sibneft, now that the former head of its erstwhile merger partner--Yukos--is to spend nine years behind bars? The two companies are still bound together by the 35% stake that Yukos holds in Sibneft--the fruit of an...

Skills shortage is a drag on development.
June 13, 2005... College graduates, especially the pragmatists with science and engineering degrees, generally go for the money their first years out of school. With $50 oil, a lot of money is available in the oil and gas industry, but positions for...

Dubai divides Asia's paper, physical markets.
June 13, 2005... Why has Asian benchmark Dubai grade remained in backwardation--the downward sloping price curve that is generally read as a sign of market tightness--months after Western markers, under the weight of ramped up Opec production, flipped into the...

Texas gas bonanza turns on shales.(Barnett Shale)
June 13, 2005... US natural gas plays don't come much hotter than the Barnett Shale of North Texas where output has jumped fivefold since 2000. Devon Energy currently rules the roost, with half of the play's production of 1.1 billion cubic feet per day. But...

OMV ramps up its role in East Europe.(market share)
June 13, 2005... The enlargement of the European Union last May was a catalyst for profound change for the 10 new members. Indeed, the eight incoming states in Central and Eastern Europe (CEE) have experienced a surge in energy demand during the run up to entry...

Sasol merger has majors crying foul.(Engen Petroleum Ltd.)
June 13, 2005... Provisional approval last month by South Africa's Competition Commission for the merger of Sasol and Engen--owned by Malaysian state Petronas--clears the way for the biggest shake up in South Africa's fuel market since the end of apartheid. It...

Caspian--Russia seems to have won the day in the tussle over expansion of the Caspian Pipeline Consortium (CPC) pipeline, achieving most of its demands for increased influence in the group that manages CPC.(GENERAL)(Brief Article)
June 13, 2005... CASPIAN -- Russia seems to have won the day in the tussle over expansion of the Caspian Pipeline Consortium (CPC) pipeline, achieving most of its demands for increased influence in the group that manages CPC. If all goes well, approval for an...

Caspian--BP's Baku-Tbilisi-Ceyhan (BTC) pipeline should be carrying around 250,000 b/d of crude to world markets by the end of 2005 and will build steadily thereafter to its full capacity of 1 million b/d from 2008.(GENERAL)(Brief Article)
June 13, 2005... CASPIAN -- BP's Baku-Tbilisi-Ceyhan (BTC) pipeline should be carrying around 250,000 b/d of crude to world markets by the end of 2005 and will build steadily thereafter to its full capacity of 1 million b/d from 2008. The BP-operated Azerbaijan...

Corporate--smaller operators are raising their upstream spending more rapidly than their larger peers, according to a Smith Barney survey.(GENERAL)(Brief Article)
June 13, 2005... CORPORATE -- Smaller operators are raising their upstream spending more rapidly than their larger peers, according to a Smith Barney survey. Companies with budgets of less than $2 billion expect to grow spending by 28% while firms with large...

Corporate--Chevron's takeover of Unocal is not yet in the bag if China National Offshore Oil Corp.(GENERAL)(Brief Article)
June 13, 2005... CORPORATE -- Chevron's takeover of Unocal is not yet in the bag if China National Offshore Oil Corp. (CNOOC) is to be believed. In a statement last week, China's third largest oil company said it was "continuing to examine its options with...

Demand--global oil demand firmed up in May after a slow start to the year.(GENERAL)(Brief Article)
June 13, 2005... DEMAND -- Global oil demand firmed up in May after a slow start to the year. With most producers running flat out, oil inventories could have risen by as much as 3.3 million b/d last month, according to preliminary data gathered by PIW sister...

Electricity--a giant UK offshore wind farm project that could generate up to 1,000 MW has moved closer to development, after backers Royal Dutch/Shell, German E.On and UK-Danish joint venture Core submitted consents and planning applications.(GENERAL)(Brief Article)
June 13, 2005... ELECTRICITY -- A giant UK offshore wind farm project that could generate up to 1,000 MW has moved closer to development, after backers Royal Dutch/Shell, German E.On and UK-Danish joint venture Core submitted consents and planning applications....

Formula prices--Saudi Arabia tightened the discounts for July crude exports to term customers in the US and Europe, making Arab Heavy and Arab Medium more competitive with rival Mars from the US, whose price has risen recently.(GENERAL)(Brief Article)
June 13, 2005... FORMULA PRICES -- Saudi Arabia tightened the discounts for July crude exports to term customers in the US and Europe, making Arab Heavy and Arab Medium more competitive with rival Mars from the US, whose price has risen recently. Asian term...

Industry restructuring--US oil services firm Weatherford International paid US$2.3 billion in cash and stock for the international drilling and energy services division of Calgary-based Precision Drilling.(GENERAL)
June 13, 2005... INDUSTRY RESTRUCTURING -- US oil services firm Weatherford International paid US$2.3 billion in cash and stock for the international drilling and energy services division of Calgary-based Precision Drilling. Finland is selling 7.21% of energy...

People--Mussab al-Dujayli has replaced Dhia al-Bakaa as head of Iraq's State Oil Marketing Organization (Somo).(GENERAL)(appointments)(Brief Article)
June 13, 2005... PEOPLE -- Mussab al-Dujayli has replaced Dhia al-Bakaa as head of Iraq's State Oil Marketing Organization (Somo). Libya's Opec governor Hamouda al-Aswad has been appointed to head Tamoil, the European downstream arm of state-owned Oilinvest.

Algeria--the energy ministry is already recruiting personnel for two new agencies--Alnaft and the Hydrocarbons Regulatory Authority (AHR)--that are to take over state Sonatrach's regulatory role under the recently passed new hydrocarbons law (PIW Apr. 18,p5).(COUNTRIES)(Brief Article)
June 13, 2005... ALGERIA -- The energy ministry is already recruiting personnel for two new agencies--Alnaft and the Hydrocarbons Regulatory Authority (AHR)--that are to take over state Sonatrach's regulatory role under the recently passed new hydrocarbons law...

Angola--French Total has notched up a fourth oil discovery on offshore Block 32 in a further boost for ultra-deep exploration efforts.(COUNTRIES)
June 13, 2005... ANGOLA -- French Total has notched up a fourth oil discovery on offshore Block 32 in a further boost for ultra-deep exploration efforts. Drilled in water depths of 1,703 meters, the Gengibre-1 well tested at 4,724 b/d of oil from a single...

Bolivia--last week's resignation of President Carlos Mesa in the face of street protests demanding the nationalization of the country's hydrocarbons resources has plunged the sector into deeper uncertainty.(COUNTRIES)(Brief Article)
June 13, 2005... BOLIVIA -- Last week's resignation of President Carlos Mesa in the face of street protests demanding the nationalization of the country's hydrocarbons resources has plunged the sector into deeper uncertainty. Protests flared after passage of...

Equatorial Guinea--Japanese trading houses Mitsui and Marubeni are farming into US Marathon's LNG project in a deal that will add financial and marketing muscle to the venture.(COUNTRIES)
June 13, 2005... EQUATORIAL GUINEA -- Japanese trading houses Mitsui and Marubeni are farming into US Marathon's LNG project in a deal that will add financial and marketing muscle to the venture. Located on Bioko Island, the 3.4 million ton/yr EGLNG project is...

Russia--oil production and exports rebounded in May after a stagnant period in the early part of the year.(COUNTRIES)
June 13, 2005... RUSSIA -- Oil production and exports rebounded in May after a stagnant period in the early part of the year. Crude output edged up by 31,200 b/d from the previous month to 9.33 million b/d, while exports raced ahead by 386,000 bid to 3.697...

Singapore--tight fundamentals will deliver complex refining margins of $8.80/bbl and $9/bbl for 2005 and 2006, respectively, according to new calculations from investment bank Merrill Lynch.(COUNTRIES)(Brief Article)
June 13, 2005... SINGAPORE -- Tight fundamentals will deliver complex refining margins of $8.80/bbl and $9/bbl for 2005 and 2006, respectively, according to new calculations from investment bank Merrill Lynch. Margins are expected to fall in 2007 to a...

South Korea--energy demand is back on a growth spurt, stimulated by differential pricing in the transport sector and a hike in natural gas consumption by domestic users and power generators.(COUNTRIES)(Brief Article)
June 13, 2005... SOUTH KOREA -- Energy demand is back on a growth spurt, stimulated by differential pricing in the transport sector and a hike in natural gas consumption by domestic users and power generators. In a revised forecast, the Korea Energy Economics...

Yemen--US Hunt Oil is battling to defend its right to operate the Marib-Jawf block through 2010, after the government in April bowed to Parliament and spiked the deal it had signed in January 2004 granting Hunt a five-year extension to Nov 14, 2010.(COUNTRIES)
June 13, 2005... YEMEN -- US Hunt Oil is battling to defend its right to operate the Marib-Jawf block through 2010, after the government in April bowed to Parliament and spiked the deal it had signed in January 2004 granting Hunt a five-year extension to Nov....

Clarification.(COUNTRIES)(Correction Notice)
June 13, 2005... CLARIFICATION -- BP says Chief Executive John Browne has not commented on the possible future entry of Gazprom into TNK-BP via a share purchase (PIW Jun.6,p2).

Confusion.(Marketview)(petroleum industry)
June 13, 2005... WASHINGTON -- A large decline in US crude inventories boosted New York Mercantile Exchange (Nymex) crude prices to $55 per barrel on Jun. 8, but they later dropped to $52.45/bbl in the same session. Prices whipsawed for the entire day after the...

Nymex to urgently review its options.(New York Mercantile Exchange)(Brief Article)
June 13, 2005... It's getting close to midnight for the New York Mercantile Exchange (Nymex), which has set up a special committee to consider its future that will report in 60 days. Options on the table are an initial public offering (IPO), the possible sale...

PIW market indicators.(Illustration)
June 13, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $50.71 $48.57 $45.20 UK Brent (Dated) ...

Opec symbolism lends fodder to price bulls.
June 20, 2005... Having set out to calm oil markets, Opec last week ended up lending support to the bulls betting on prices heading higher. This paradox is partly a reflection of Opec's inability to do more on the supply side and partly due to the group's new...

Oil market looks ever tighter in coming years.
June 20, 2005... As Opec members fret over near-term oil market issues, the more distant oil market looks set to put them squarely in the driver's seat, according to a new study released this month by Energy Intelligence Research. The next five years look...

US oil statistics can be patchy, heavily revised.
June 20, 2005... Is the quality of oil data getting any better? Most would suggest not. The rising importance of emerging economies in the demand equation poses a major challenge, as statistics from such countries tend to be less immediate and complete--but...

London market bubble bursts with regal aid.
June 20, 2005... Oil prices remain high, but for one part of the industry, the bubble seems already to have burst. Oil and gas companies listed on London's Alternative Investment Market (AIM) have seen their value plunge by almost 27% in the past three months,...

China's upstream land deal shows challenges abroad.
June 20, 2005... As Western oil companies struggle to find big new fields, they're increasingly looking to acquisitions of whole companies to boost their sagging reserves replacement ratios. PetroChina is taking an even easier route and buying oil and gas...

Oman's dash for gas sees demand outpace supply.
June 20, 2005... Oman has no shortage of plans for industries built on natural gas reserves--but in its dash to diversify, the sultanate risks letting demand race ahead of supply. With future gas supplies soaked up by a new liquefied natural gas train due next...

Ideology spurs Latin America's state alliances.
June 20, 2005... After a bout of deregulation in the 1990s, Latin American politics are veering leftward toward more government-controlled policies. In the energy sector, the shift has translated into growing alliances among state-owned companies across...

European Union--the European Commission closed its final probe into Russian gas contracts but said inquiries also begun four years ago into Algerian state Sonatrach's practices remain open.(GENERAL)(Brief Article)
June 20, 2005... EUROPEAN UNION -- The European Commission closed its final probe into Russian gas contracts but said inquiries also begun four years ago into Algerian state Sonatrach's practices remain open. Brussels also formally launched a new yearlong...

IEA--the International Energy Agency in its latest monthly Oil Market Report credits "unexpected demand" for strengthening oil prices over the last year and a half.(GENERAL)(Brief Article)
June 20, 2005... IEA -- The International Energy Agency in its latest monthly Oil Market Report credits "unexpected demand" for strengthening oil prices over the last year and a half. Chinese demand growth was "the big market story of 2004," the IEA said. But...

Industry restructuring--shares in Canadian independent First Calgary Petroleums continued to slide after it terminated discussions with Spain's Repsol YPF for a joint venture in Algeria, and pledged to continue with gas developments on its own.(GENERAL)(Brief Article)
June 20, 2005... INDUSTRY RESTRUCTURING -- Shares in Canadian independent First Calgary Petroleums continued to slide after it terminated discussions with Spain's Repsol YPF for a joint venture in Algeria, and pledged to continue with gas developments on its...

Australia--work will begin next month on a Train 5 expansion at the Woodside-operated North West Shelf LNG complex, after a final investment decision by the six equal partners.(COUNTRIES)(Brief Article)
June 20, 2005... AUSTRALIA -- Work will begin next month on a Train 5 expansion at the Woodside-operated North West Shelf LNG complex, after a final investment decision by the six equal partners. The approval covers a train with 4.2 million tons (5.8 Bcm) per...

Ecuador--President Alfredo Palacio named Ivan Rodriguez, a US trained electrical engineer, to replace Fausto Cordovez as the country's energy minister.(COUNTRIES)(Brief Article)
June 20, 2005... ECUADOR -- President Alfredo Palacio named Ivan Rodriguez, a US trained electrical engineer, to replace Fausto Cordovez as the country's energy minister. Carlos Pareja also takes over from Robert Pinzon as president of state-owned Petroecuador....

Iran--Tehran has boosted its bid to launch sales of LNG by signing a 25-year deal with India for the sale of an initial 5 million tons/yr fed from the giant South Pars gas field.(COUNTRIES)(Brief Article)
June 20, 2005... IRAN -- Tehran has boosted its bid to launch sales of LNG by signing a 25-year deal with India for the sale of an initial 5 million tons/yr fed from the giant South Pars gas field. The agreement, signed in Tehran during a visit by India's Oil...

Iraq--new Oil Minister Ibrahim Bahr al-Uloum put on a brave face at Opec's Vienna meeting, saying the country would hike exports later this year as planned.(COUNTRIES)(Brief Article)
June 20, 2005... IRAQ -- New Oil Minister Ibrahim Bahr al-Uloum put on a brave face at Opec's Vienna meeting, saying the country would hike exports later this year as planned. "Exports are at around 1.5 million b/d, but we will be increasing this by the end of...

Niger--Algerian state Sonatrach signed an exploration contract for the Kafra Block, which covers 23,737 sq km.(COUNTRIES)(Brief Article)
June 20, 2005... NIGER -- Algerian state Sonatrach signed an exploration contract for the Kafra Block, which covers 23,737 sq km. Sonatrach plans to invest $6 million during an initial four-ear period, during which it will gather 1,000 sq km of 2-D seismic. It...

Oman--the oil ministry is gearing up to announce a new bidding round when Petroleum Development Oman (PDO) relinquishes 10% of its Block 6 on Jul. 1.(COUNTRIES)(Brief Article)
June 20, 2005... OMAN -- The oil ministry is gearing up to announce a new bidding round when Petroleum Development Oman (PDO) relinquishes 10% of its Block 6 on Jul. 1. The total area released will be 11,000 sq km, with details announced after the...

Russia--Gazprom outlined plans to secure long-coveted access to reserves in Russia's far eastern Sakhalin Island, through an asset swap with Sakhalin-2 LNG project leader Royal Dutch/Shell, plus a possible purchase of state Rosneft's 20% stake in the Sakhalin-1 oil and prospective gas pipeline project led by Exxon Mobil.(COUNTRIES)
June 20, 2005... RUSSIA -- Gazprom outlined plans to secure long-coveted access to reserves in Russia's far eastern Sakhalin Island, through an asset swap with Sakhalin-2 LNG project leader Royal Dutch/Shell, plus a possible purchase of state Rosneft's 20%...

Russia--Moscow is planning to slash crude exports by 126,000 bid in the third quarter, aggravating market fears that Russian output growth cannot keep pace with rising demand.(COUNTRIES)(Brief Article)
June 20, 2005... RUSSIA -- Moscow is planning to slash crude exports by 126,000 bid in the third quarter, aggravating market fears that Russian output growth cannot keep pace with rising demand. Most of the cuts are slated for the Black Sea port of...

Russia--State Rosneft signed a preliminary agreement with China's Sinopec on cooperation, signaling a small step forward in Beijing's bid to enter the Russian oil and gas sector.(COUNTRIES)(Brief Article)
June 20, 2005... RUSSIA -- State Rosneft signed a preliminary agreement with China's Sinopec on cooperation, signaling a small step forward in Beijing's bid to enter the Russian oil and gas sector. Although the two sides gave few details, Sinopec said the...

Saudi Arabia--Interior Minister Prince Nayef bin Abdul-Aziz discussed a revised border agreement during a visit to Abu Dhabi.(COUNTRIES)(Brief Article)
June 20, 2005... SAUDI ARABIA -- Interior Minister Prince Nayef bin Abdul-Aziz discussed a revised border agreement during a visit to Abu Dhabi. Such a deal would ease the way to further Saudi development of the light Shaybah oil field, which straddles the...

Singapore--the High Court approved the debt restructuring plan of Chinese jet fuel importer China Aviation Oil (Singapore), which will ensure a 56.6% payout to creditors, based on a total outstanding debt of US$486 million.(COUNTRIES)(Brief Article)
June 20, 2005... SINGAPORE -- The High Court approved the debt restructuring plan of Chinese jet fuel importer China Aviation Oil (Singapore), which will ensure a 56.6% payout to creditors, based on a total outstanding debt of US$486 million. Following the...

Thailand--state-owned PTT and Chevron agreed to merge their stakes in two refineries into a joint venture that they would take public later this year.(COUNTRIES)(Brief Article)
June 20, 2005... THAILAND -- State-owned PTT and Chevron agreed to merge their stakes in two refineries into a joint venture that they would take public later this year. PTT will extend its stake into four of the country's seven refineries, gaining a net...

United Kingdom--applications for the 23rd offshore licensing round hit a 30-year high, with firms applying for a record 279 blocks.(COUNTRIES)(Brief Article)
June 20, 2005... UNITED KINGDOM -- Applications for the 23rd offshore licensing round hit a 30-year high, with firms applying for a record 279 blocks. This was 115 more than in the previous round and the largest number since 1972 (PIW Feb.28,p3). A total of 134...

China drives demand to new high: BP.(What's New Around The World)
June 20, 2005... World energy consumption increased by 4.3% in 2004, the highest annual percentage growth since 1984 and double the 10-year average rate, according to the new 2005 BP Statistical Review of World Energy. And one country, China, helped fuel a...

King of the castle.(Marketview)
June 20, 2005... LONDON -- Prices are set at the margin and the margins are changing--in more ways than one. Last year's exploding crude prices were led by tight light, sweet crude supplies. The current price strength, however, is products-led and the middle of...

PIW market indicators.(Illustration)
June 20, 2005... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $51.68 $50.73 $45.97 UK Brent (Dated) 53.51 52.02 48.59...

Opec optimism on supply is a stretch.(Organization of the Petroleum Exporting Countries)
June 27, 2005... To hear Opec tell it, there will be no problem meeting oil demand in the fourth quarter, when Opec forecasts the call on its supply and stocks could hit 30.6 million barrels per day. That level of demand exceeds the estimated sustainable...

Reserve adds get harder as deepwater peaks.
June 27, 2005... International oil companies appear to be poised for modest production growth over the next few years as they pluck the fruits of past exploration success, notably in the deepwater. But the pace of deepwater discoveries has slowed down in recent...

Diesel surge changes taste for crudes.
June 27, 2005... In the second half of last year, oil prices were driven by a seemingly insatiable thirst for light, sweet crudes with high gasoline yields, while anything heavier or sourer was disdained. This year the focus has clearly shifted to crudes with...

China leans more on Opec, Mideast crudes.(Organization of the Petroleum Exporting Countries)
June 27, 2005... China accounted for 36% of global oil demand growth last year, virtually all of it supplied by imports of crude and products. With domestic output flat-lining and refining capacity rising, future increases in Chinese crude demand must also be...