Petroleum Intelligence Weekly articles from March 2006

Petroleum Intelligence Weekly archives from March 2006

Saudi attack exposes wider security worry.
March 6, 2006... The attack on Saudi Arabia's oil processing complex at Abqaiq gave the oil market a glimpse of its most dreaded scenario. Terrorists targeted a vital facility that treats some two-thirds of Saudi production before it is pumped to world markets....

Demand doubts are cloud on Opec horizon.
March 6, 2006... While the frequency of Opec meetings has increased, their impact has faded of late as oil markets dance to other tunes. Although there have been significant shifts in the market since ministers last met five weeks ago, Opec is unlikely to...

European utility M&A mania makes waves.
March 6, 2006... A wave of merger and acquisition activity has broken out in Europe's gas and power sector, with further consolidation likely as companies jostle for position in the region's fast changing energy market. But questions are being raised about the...

Indonesia's gas plans threaten LNG exports.
March 6, 2006... The future of Indonesia's LNG industry is being thrown into question. On top of embarrassing production shortfalls from LNG plants at Arun and Bontang, future exports could be stifled by a mix of rising resource nationalism and the drive to...

Patrons, funds fuel rapid rise of Russneft.
March 6, 2006... Independent oil company Russneft is the rising star of Russia's oil market. Since start-up three years ago, it has grown into a vertically integrated oil company with extensive assets: crude production of 300,000 barrels per day, 193,000 b/d of...

BP trials new take on carbon sequestration.
March 6, 2006... Supermajor BP is proposing innovative power generation projects in California and Scotland that look set to kill two birds with one stone. In both cases BP and its partners--Scottish and Southern Energy and Edison International--will produce...

Supply gains promise easier oil balances.
March 6, 2006... The comfort level associated with oil market conditions depends on three factors: the degree of geopolitical risk, the size and quality of Opec's spare crude oil production capacity, and the level of global inventories--both commercial and...

Industry restructuring--UK infrastructure group National Grid is adding to its US acquisitions with a friendly $7.3 billion cash takeover bid for US grid and utility group KeySpan.(GENERAL)
March 6, 2006... INDUSTRY RESTRUCTURING -- UK infrastructure group National Grid is adding to its US acquisitions with a friendly $7.3 billion cash takeover bid for US grid and utility group KeySpan. KeySpan is the largest distributor of natural gas in the US...

LNG--Suez LNG, the trading arm of the French utility giant, has become the third company to sign a memorandum of understanding with Nigeria's Brass LNG project to buy 2 million tons/yr of LNG (2.76 Bcm/yr) for 20 years, with first delivery due 2010 (p2).(GENERAL)
March 6, 2006... LNG -- Suez LNG, the trading arm of the French utility giant, has become the third company to sign a memorandum of understanding with Nigeria's Brass LNG project to buy 2 million tons/yr of LNG (2.76 Bcm/yr) for 20 years, with first delivery...

Australia--crude and condensate production will peak at around 557,000 b/d by 2008 but natural gas production will offset the subsequent decline, according to new government research.(COUNTRIES)
March 6, 2006... AUSTRALIA -- Crude and condensate production will peak at around 557,000 bid by 2008 but natural gas production will offset the subsequent decline, according to new government research. Liquids output is forecast to rise by 6% to 464,000 b/d in...

China--January crude imports leapt by a whopping 69.2% from one year ago to 3.13 million b/d as refiners ramped up operating rates before the lunar New Year.(COUNTRIES)
March 6, 2006... CHINA -- January crude imports leapt by a whopping 69.2% from one year ago to 3.13 million bid as refiners ramped up operating rates before the lunar New Year. Iran was the largest supplier with 447,000 b/d, 75% more than last year at this...

Egypt--Cairo is raising the stakes in the search for gas, saying that 120 Tcf could be added to the 67 Tcf already proven and further LNG trains could be added to expand exports.(COUNTRIES)
March 6, 2006... EGYPT -- Cairo is raising the stakes in the search for gas, saying that 120 Tcf could be added to the 67 Tcf already proven and further LNG trains could be added to expand exports. Until now, the official line was that reserves might grow to...

India--oil companies are being offered 55 oil and gas exploration blocks and 10 coalbed methane blocks in the latest licensing round.(COUNTRIES)
March 6, 2006... INDIA -- Oil companies are being offered 55 oil and gas exploration blocks and 10 coalbed methane blocks in the latest licensing round. The oil and gas acreage involves 24 deepwater blocks, including seven in the prolific Krishna-Godavari...

Iran--a big investment in new refineries is planned to fix the shortfall that has turned the world's fourth largest oil producer into a gasoline importer.(COUNTRIES)
March 6, 2006... IRAN -- A big investment in new refineries is planned to fix the shortfall that has turned the world's fourth largest oil producer into a gasoline importer. Plans call for building two new plants with a combined capacity of 520,000 b/d, at a...

Kazakhstan--Russian oil companies are eyeing prospects in the country in an effort to head off the surging Chinese incursion.(COUNTRIES)
March 6, 2006... KAZAKHSTAN -- Russian oil companies are eyeing prospects in the country in an effort to head off the surging Chinese incursion. Rosneft expects to add two or three blocks in the second half of the year, after exploratory drilling on the...

Mauritania--Australian operator Woodside Petroleum has begun pumping oil from the offshore Chinguetti field, launching the country as an oil producer.(COUNTRIES)
March 6, 2006... MAURITANIA -- Australian operator Woodside Petroleum has begun pumping oil from the offshore Chinguetti field, launching the country as an oil producer. Volumes at the $720 million development are due to hit a plateau of around 70,000 bid next...

Mexico--crude exports hit a two-year high of 2.05 million b/d in January, driven by a sharp rise in shipments of heavy Maya grade to the US.(COUNTRIES)
March 6, 2006... MEXICO -- Crude exports hit a two-year high of 2.05 million b/d in January, driven by a sharp rise in shipments of heavy Maya grade to the US. The 204,000 b/d monthly rise came despite a slight decline in oil and natural gas liquids output from...

Nigeria--having handed an earlier upstream deal to a Chinese rival, India's state Oil and Natural Gas Corp. (ONGC) could lose out in another because of delays in New Delhi and a sweetened offer from rival bidder Korea National Oil Corp. (KNOC).(COUNTRIES)
March 6, 2006... NIGERIA -- Having handed an earlier upstream deal to a Chinese rival, India's state Oil and Natural Gas Corp. (ONGC) could lose out in another because of delays in New Delhi and a sweetened offer from rival bidder Korea National Oil Corp....

Russia--as many as 10 contenders are in the running to buy TNK-BP's 120,000 b/d production unit Udmurtneft, suggesting a fierce bidding war lies ahead.(COUNTRIES)
March 6, 2006... RUSSIA -- As many as 10 contenders are in the running to buy TNK-BP's 120,000 bid production unit Udmurtneft, suggesting a fierce bidding war lies ahead. Analysts expect the price to top $3 billion, valuing Udmurtneft higher than 238,000 b/d...

United States--the Supreme Court rejected unanimously a suit that charged Royal Dutch Shell and Texaco had conspired to fix prices for their gasoline brands.(COUNTRIES)
March 6, 2006... UNITED STATES -- The Supreme Court rejected unanimously a suit that charged Royal Dutch Shell and Texaco had conspired to fix prices for their gasoline brands. The verdict was a setback for 23,000 gasoline retail station owners who sued the two...

United States--the Pentagon is to pay Halliburton subsidiary Kellogg Brown & Root (KBR) nearly all of the $263 million in disputed charges for oil-related work and fuel deliveries in Iraq that were part of a controversial $2.4 billion contract.(COUNTRIES)
March 6, 2006... UNITED STATES -- The Pentagon is to pay Halliburton subsidiary Kellogg Brown & Root (KBR) nearly all of the $263 million in disputed charges for oil-related work and fuel deliveries in Iraq that were part of a controversial $2.4 billion...

Venezuela--Spanish Repsol YPF, Japan's Teikoku Oil and French Perenco have returned oil fields rather than convert their operating service agreements (OSAs) into joint ventures with state Petroleos de Venezuela (PDV).(COUNTRIES)
March 6, 2006... VENEZUELA -- Spanish Repsol YPF, Japan's Teikoku Oil and French Perenco have returned oil fields rather than convert their operating service agreements (OSAs) into joint ventures with state Petroleos de Venezuela (PDV). The trio have returned...

Eni sets the pace on output growth.(What's New Around the World)(company sales and earnings)
March 6, 2006... Italy's Eni has been slowest of the leading international majors to report its 2005 earnings, but that appears to be the only sense in which it is bringing up the rear. The company is setting the pace in production growth, with oil and gas...

A Ural mess.(Marketview)
March 6, 2006... LONDON -- A Russian crude oil futures contract is about to be launched. Maybe. In the latest chapter of a gestation that began more than 10 years ago in Budapest and since then has seen several aborted initiatives, the New York Mercantile...

PIW market indicators.(Petroleum Intelligence Weekly )(Illustration)
March 6, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $56.51 $55.73 $58.14 UK Brent...

Opec finds itself trapped in a price bubble.
March 13, 2006... Opec faces the paradox of having achieved an oil price beyond its wildest imaginings, while losing all ability to control it. This inability was on display again at last week's meeting in Vienna--the third in less than four months--which...

Muscat signals backing for Oman benchmark crude.
March 13, 2006... Asia's notoriously opaque crude oil market and its illiquid sour benchmark Dubai could be in for a radical change, if Oman's growing enthusiasm for spot trade and futures contracts is anything to go by. After nearly two years of private...

Indonesia gets serious about upstream revival.
March 13, 2006... Indonesian President Susilo Bambang Yudhoyono wants oil production to hit 1.3 million barrels per day by 2009. Indonesia still has prospective basins and plenty of gas, but attracting big upstream players takes more than lofty visions. New...

US military creating market for synfuels.
March 13, 2006... The US Defense Department is formulating a new policy for using synthetic jet fuel that could have spin-off effects for commercial aviation--and the synthetic fuels business--worldwide. The Pentagon's fuel purchasing arm, the Defense Energy...

Algerian gas sales rising, but how high?
March 13, 2006... Algeria looks virtually assured of meeting its 85 billion cubic meter per year (8.2 billion cubic foot per day) 2010 gas export target, up from some 62 Bcm/yr now. Two firm long-term sales contracts--for 1.6 Bcm/yr each to Spain's Cepsa and...

Soaring dayrates at last bring new rig orders.
March 13, 2006... Oil-prone deepwater basins around the world have become the hottest--and most expensive--places to drill a well. Rig costs have gone through the roof as cash-rich oil and gas companies scramble to get their hands on what semisubmersibles and...

Opec, non-Opec combine to drive supply higher.
March 13, 2006... Despite geopolitical anxieties about oil supply and serious export problems in Nigeria, February saw another sharp gain of over 700,000 barrels per day in global oil supplies to a record 85.65 million b/d, which was shared about equally between...

European Union--while Europe is riven by statist meddling in utilities, with Paris backing Gaz de France's merger with Suez, and Madrid sniping at German E.On's bid for Endesa, the EU Commission seeks to unite behind a long-term energy strategy of more diversified supplies and a tougher line with Russia.(GENERAL)
March 13, 2006... EUROPEAN UNION -- While Europe is riven by statist meddling in utilities, with Paris backing Gaz de France's merger with Suez, and Madrid sniping at German E.On's bid for Endesa, the EU Commission seeks to unite behind a long-term energy...

Formula prices--Saudi Arabia is adjusting its April term prices by easing the discounts for most exports to the US, Asia and to Europe.(GENERAL)
March 13, 2006... FORMULA PRICES -- Saudi Arabia is adjusting its April term prices by easing the discounts for most exports to the US, Asia and to Europe. By making those discounts wider, state-owned Saudi Aramco is bucking a trend that has seen most producers...

Industry restructuring--Canada's EnCana is selling its North American natural gas storage business to private equity firm Carlyle-Riverstone Global Energy and Power Fund for US$1.5 billion.(GENERAL)
March 13, 2006... INDUSTRY RESTRUCTURING -- Canada's EnCana is selling its North American natural gas storage business to private equity firm Carlyle-Riverstone Global Energy and Power Fund for US$1.5 billion. The sale is part of EnCana's plan to divest noncore...

Bolivia--the new government plans to transform state oil company YPFB by renationalizing three previously privatized oil and gas firms and putting them back under YPFB control.(COUNTRIES)
March 13, 2006... BOLIVIA -- The new government plans to transform state oil company YPFB by renationalizing three previously privatized oil and gas firms and putting them back under YPFB control. Under the plan, which has been approved by President Evo Morales,...

China--French Total has inked a production sharing contract with PetroChina to develop the Sulige gas field in the Ordos basin in Inner Mongolia.(COUNTRIES)
March 13, 2006... CHINA -- French Total has inked a production sharing contract with PetroChina to develop the Sulige gas field in the Ordos basin in Inner Mongolia. The deal gives Total a foothold in China's rapidly expanding gas market. Total aims to produce...

China--among a series of new energy policy initiatives, Beijing has for the first time designated energy efficiency as a key measure of economic growth, and the government is aiming to cut energy use per unit of GDP by 4% this year.(COUNTRIES)
March 13, 2006... CHINA--among a series of new energy policy initiatives, Beijing has for the first time designated energy efficiency as a key measure of economic growth, and the government is aiming to cut energy use per unit of GDP by 4% this year. It has...

India--Reliance Petroleum will issue 1.8 billion shares next month in an initial public offering (IPO) that is aimed at raising $1.1 billion-$1.3 billion to finance its $6 billion Jamnagar refining expansion project, making it the largest complex in the world.(COUNTRIES)
March 13, 2006... INDIA -- Reliance Petroleum will issue 1.8 billion shares next month in an initial public offering (IPO) that is aimed at raising $1.1 billion-$1.3 billion to finance its $6 billion Jamnagar refining expansion project, making it the largest...

Indonesia--the government has sacked state Pertamina president Widya Purnama, replacing him with the firm's former marketing chief, Ari Sumarno, amid sweeping managerial changes.(COUNTRIES)
March 13, 2006... INDONESIA -- The government has sacked state Pertamina president Widya Purnama, replacing him with the firm's former marketing chief, Ari Sumarno, amid sweeping managerial changes (p2). Sumarno's first official announcement focused on his...

Iraq--oil exports are likely to drop in March, with fewer loadings scheduled as a fight over control of key oil ministry positions continues and political turmoil escalates.(COUNTRIES)
March 13, 2006... IRAQ -- Oil exports are likely to drop in March, with fewer loadings scheduled as a fight over control of key oil ministry positions continues and political turmoil escalates. State Oil Marketing Organization (Somo) has scheduled Basrah Light...

Japan--crude oil imports slipped 1.3% in January to an average of 4.34 million b/d, down 59,000 b/d from a year ago, according to Ministry of Economy, Trade and Industry.(COUNTRIES)
March 13, 2006... JAPAN -- Crude oil imports slipped 1.3% in January to an average of 4.34 million b/d, down 59,000 b/d from a year ago, according to Ministry of Economy, Trade and Industry. Crude imports from Iran fell by over 100,000 b/d compared to a year...

Norway--Royal Dutch Shell and Statoil are proposing a $1.5 billion project that combines carbon sequestration with enhanced oil recovery (EOR) at two mature offshore fields.(COUNTRIES)
March 13, 2006... NORWAY -- Royal Dutch Shell and Statoil are proposing a $1.5 billion project that combines carbon sequestration with enhanced oil recovery (EOR) at two mature offshore fields (PIW Mar.6,p4). The scheme calls for construction of an 860 megawatt...

Kazakhstan--a newcomer to the oil business, China International Trust and Investment Corp. Resources Holdings (Citic), is joining the $2 billion-plus bidding contest for Nations Energy, the Canadian company that operates the Karazahanbas oil field.(COUNTRIES)
March 13, 2006... KAZAKHSTAN -- A newcomer to the oil business, China International Trust and Investment Corp. Resources Holdings (Citic), is joining the $2 billion-plus bidding contest for Nations Energy, the Canadian company that operates the Karazahanbas oil...

Russia--smoother weather resulted in a sharp rise in crude oil exports in February, as both seaborne loadings and pipeline shipments rebounded strongly from a slow January.(COUNTRIES)
March 13, 2006... RUSSIA -- Smoother weather resulted in a sharp rise in crude oil exports in February, as both seaborne loadings and pipeline shipments rebounded strongly from a slow January. February exports through the Transneft system jumped 182,000 bid from...

Russia--opening a new link to high-growth markets, Moscow has approved the feasibility study for the first stage of the East Siberia pipeline, which will haul crude to the Pacific coast for sales to Asia.(COUNTRIES)
March 13, 2006... RUSSIA -- Opening a new link to high-growth markets, Moscow has approved the feasibility study for the first stage of the East Siberia pipeline, which will haul crude to the Pacific coast for sales to Asia. The decision gives national pipeline...

South Korea--crude oil imports leapt by nearly 20% in January to an average of 2.39 million b/d, up a hefty 379,000 b/d on a year earlier, according to Korea National Oil Corp.(COUNTRIES)
March 13, 2006... SOUTH KOREA -- Crude oil imports leapt by nearly 20% in January to an average of 2.39 million bid, up a hefty 379,000 b/d on a year earlier, according to Korea National Oil Corp. Crude imports from Saudi Arabia jumped 21% from a year earlier to...

Receding fear premium.(Marketview)
March 13, 2006... WASHINGTON -- Atlantic Basin crude oil prices came down sharply last week in response to Opec's pledge to continue to pump all out and in reaction to another large weekly build in US inventories. US light, sweet benchmark West Texas...

Nymex versus ICE: electronic 2, outcry 0.
March 13, 2006... Admitting defeat, the New York Mercantile Exchange (Nymex) is halting open-outcry trading of Brent crude futures in London once it secures the necessary approvals, saying that market volumes do not justify retention of the floor. The move comes...

PIW market indicators.(Statistical data)
March 13, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $57.38 $56.77 $55.18 UK Brent (Dated) 59.95...

What goes up must surely come down.(shares trading of oil companies)
March 20, 2006... With the fundamentals looking progressively weaker, why are oil prices still well over $60 per barrel? One reason is that passive investors and hedge funds with a bias to the long side have poured billions of dollars into the futures market,...

Russia, China advance quest for gas deal.
March 20, 2006... Russia and China have been circling each other warily for years, trying to develop closer energy relations while failing to achieve much of real substance. Chinese officials complain they don't know who is in charge in Moscow while the Russians...

Indies gain ground with Asia's expansive NOCs.
March 20, 2006... Are the oil majors losing their edge in the critical area of building relations with Asia's fast-expanding national oil companies (NOCs)? The mid-sized independents operating in the region believe it is they who are now making the running,...

Caracas shakes down Orinoco projects again.(Orinoco Belt extra-heavy crude projects)(Tax policy)
March 20, 2006... Venezuela's constant rewriting of the investment rules is making the goal of doubling production to 5.8 million barrels per day within four years seem more fanciful by the day. The Orinoco Belt extra-heavy crude projects, which are by far the...

New players bring new life to Alaska.(Fuel oil industry)(Industry overview)
March 20, 2006... Alaska's current oil production is less than half its peak rate of almost 20 years ago, but that has not dampened the enthusiasm of a band of new players who still see plenty of promise in the region. In the last few years, independents such as...

Fewer options for North American.(Canadian gas output)
March 20, 2006... US expectations of being able to rely on Canada for consistent, if not growing, natural gas supplies are quickly evaporating as the outlook from north of the 49th parallel is becoming almost as pessimistic as forecasts for US production rates....

Gas-rich players contest Aramco's lead.
March 20, 2006... From a traditional oil perspective, Saudi Aramco's dominant upstream position seems unassailable, but the competition is actually much more intense when viewed in terms of combined oil and natural gas capabilities. While Aramco stands head and...

Oil prices: prolonged levitation, potential collapse.
March 20, 2006... The pressures contributing to the high oil price have become self-reinforcing, creating an unstoppable upward spiral as they play off each other. In this exclusive contribution to PIW, former Algerian oil minister Nordine Ait-Laoussine and...

IEA--oil demand is not expected to grow as fast as previously thought this year, but geopolitical uncertainties should keep the market from getting too comfortable, the International Energy Agency suggests in its latest monthly report.(GENERAL)
March 20, 2006... IEA -- Oil demand is not expected to grow as fast as previously thought this year, but geopolitical uncertainties should keep the market from getting too comfortable, the International Energy Agency suggests in its latest monthly report. The...

Industry restructuring--Austria's OMV is to acquire a 34% stake in leading Turkish fuel retailer Petrol Ofisi from Turkey's Dogan Holding for $1 billion.(GENERAL)
March 20, 2006... INDUSTRY RESTRUCTURING -- Austria's OMV is to acquire a 34% stake in leading Turkish fuel retailer Petrol Ofisi from Turkey's Dogan Holding for $1 billion. Private equity group General Atlantic has completed the purchase of a 10% stake in the...

Algeria--Spain's Repsol YPF and Gas Natural last week established a joint venture with state Sonatrach to build and operate a 4 million ton/year LNG terminal in Arzew as part of the integrated Gassi Touil project awarded to the Spanish duo in 2004.(COUNTRIES)
March 20, 2006... ALGERIA -- Spain's Repsol YPF and Gas Natural last week established a joint venture with state Sonatrach to build and operate a 4 million ton/year LNG terminal in Arzew as part of the integrated Gassi Touil project awarded to the Spanish duo in...

Brazil--oil and gas production at state-controlled Petrobras reached 2.3 million boe/d in February, for a 10.5% gain on the same month last year.(COUNTRIES)
March 20, 2006... BRAZIL -- Oil and gas production at state-controlled Petrobras reached 2.3 million boe/d in February, for a 10.5% gain on the same month last year. Domestic oil production accounted for 1.76 million b/d, up from 1.75 million b/d in January and...

India--UK independent Cairn Energy could launch an initial public offering (IPO) of its Indian upstream business on the Mumbai stock exchange.(COUNTRIES)
March 20, 2006... INDIA -- UK independent Cairn Energy could launch an initial public offering (IPO) of its Indian upstream business on the Mumbai stock exchange. The move follows two years of substantial discoveries on Cairn's onshore Rajasthan acreage, where...

Indonesia--after years of discord, state-run Pertamina and Exxon Mobil have finally hammered out a deal to develop the Cepu oil field offshore East Java.(COUNTRIES)
March 20, 2006... INDONESIA -- After years of discord, state-run Pertamina and Exxon Mobil have finally hammered out a deal to develop the Cepu oil field offshore East Java. Ari Soemarno, who had just taken over as the new head of Pertamina, said that the state...

Iran--Japanese refiner Nippon Oil is to cut its Iranian crude intake by 15% this year amid fears that the crisis over the country's nuclear program could disrupt oil supplies.(COUNTRIES)
March 20, 2006... IRAN -- Japanese refiner Nippon Oil is to cut its Iranian crude intake by 15% this year amid fears that the crisis over the country's nuclear program could disrupt oil supplies. Other buyers from Japan, which imported close to 580,000 b/d or...

Mexico--claims that the fourth deepwater well to be drilled in the Gulf of Mexico could hold potential reserves of 10 billion boe have been greeted with some skepticism, but they add to the high expectations for the deepwater.(COUNTRIES)
March 20, 2006... MEXICO -- Claims that the fourth deepwater well to be drilled in the Gulf of Mexico could hold potential reserves of 10 billion boe have been greeted with some skepticism, but they add to the high expectations for the deepwater. With a...

Mozambique--Anadarko of the US and Italy's Eni have won giant offshore exploration blocks in the lightly explored Rovuma Basin, following Norway's Norsk Hydro into a new oil and gas play.(COUNTRIES)
March 20, 2006... MOZAMBIQUE -- Anadarko of the US and Italy's Eni have won giant offshore exploration blocks in the lightly explored Rovuma Basin, following Norway's Norsk Hydro into a new oil and gas play. Anadarko will take on Area 1, a 10,685 sq km block...

Nigeria--in its first upstream foray in the country, South Korea has taken two hotly tipped deepwater blocks, while Indian interests suffered another setback and decided not to take a minority stake.(COUNTRIES)
March 20, 2006... NIGERIA -- In its first upstream foray in the country, South Korea has taken two hotly tipped deepwater blocks, while Indian interests suffered another setback and decided not to take a minority stake. Korea National Oil Corp. (KNOC) clinched...

Russia--the curtain is finally closing on Yukos after a consortium of creditors asked the Moscow Arbitration Court to declare the fallen major bankrupt.(COUNTRIES)
March 20, 2006... RUSSIA -- The curtain is finally closing on Yukos after a consortium of creditors asked the Moscow Arbitration Court to declare the fallen major bankrupt. Technically, this would enable creditors to retrieve the $480 million balance of a $1...

Sao Tome--three production sharing contracts agreed last week for deepwater exploration blocks in the joint development zone shared with Nigeria netted $201 million in signature bonuses, confirming the area's status as an exploration hotspot.(COUNTRIES)(Brief article)
March 20, 2006... SAO TOME -- Three production sharing contracts agreed last week for deepwater exploration blocks in the joint development zone shared with Nigeria netted $201 million in signature bonuses, confirming the area's status as an exploration hotspot....

UAE--desperate for much-needed natural gas, Abu Dhabi National Oil Co. (Adnoc) is embarking on the appraisal of gas in place in the Shah field near the border with Saudi Arabia.(COUNTRIES)
March 20, 2006... UAE -- Desperate for much-needed natural gas, Abu Dhabi National Oil Co. (Adnoc) is embarking on the appraisal of gas in place in the Shah field near the border with Saudi Arabia. Adnoc spudded the first well two weeks ago with the aim of...

United States--half a dozen deepwater blocks drew monster bids of $20 million or more at the latest Gulf of Mexico lease sale in New Orleans last week, making it the strongest such sale in eight years.(COUNTRIES)
March 20, 2006... UNITED STATES -- Half a dozen deepwater blocks drew monster bids of $20 million or more at the latest Gulf of Mexico lease sale in New Orleans last week, making it the strongest such sale in eight years. Despite the devastation wrought by...

United States--warning that energy is the albatross of US national security, Senate Foreign Relations Committee Chairman Richard Lugar (R-Ind.) last week outlined bold legislative proposals to promote alternative fuels, including new mandates on oil companies, and to enhance international preparedness for major oil supply disruptions.(COUNTRIES)
March 20, 2006... UNITED STATES -- Warning that energy is the albatross of US national security, Senate Foreign Relations Committee Chairman Richard Lugar (R-Ind.) last week outlined bold legislative proposals to promote alternative fuels, including new mandates...

Conflicting signals.(Marketview)
March 20, 2006... LONDON -- Crude oil prices are being pressured to the downside by Opec's decision to rollover its 28 million barrel per day production ceiling, high stocks of both crude and products and a particularly severe round of refinery maintenance that...

PIW market indicators.(Statistical data)
March 20, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $57.47 $57.39 $55.36 UK Brent (Dated) ...

Western spice added to China-Russia gas deal.(OAO Gazprom)(China National Petroleum Corp.)
March 27, 2006... The accord between Gazprom and China National Petroleum Corp. (CNPC) on Russian natural gas supplies to China that bolstered the broader and less specific joint intergovernmental oil and gas declaration signed by Russian President Vladimir...

India aims for role as region's refining hub.(India on its petroleum industry forecasts)
March 27, 2006... After years of hesitation, India has got a downstream investment boom on its hands. The expansions will turn India into a global refining hub as they exceed the projections for domestic demand growth. Some 1.6 million barrels per day of new...

Nigeria unrest has muted impact on crude premiums.
March 27, 2006... Escalating unrest in Nigeria's Niger Delta has now forced the shut-in of more than 600,000 barrels per day--over 20%--of the Opec producer's crude output. Yet the impact on Nigerian crude premiums over dated Brent and on trading patterns in...

Three years later, Iraq's oil sector remains in crisis.
March 27, 2006... Three years on from the start of the US-led invasion that swept aside the former Baathist regime, Iraq's oil industry lurches from crisis to crisis. Production, which was running at 2.8 million barrels per day before the war, has plunged below...

Contango fuels firms to keep building storage.(petroleum industries on storage of fuels to avoid inflation)
March 27, 2006... With US tanks brimming as oil inventories near all-time record levels, conventional wisdom suggests that the surging supply should push prices substantially lower. But that will only occur when and if companies stop buying oil as they run out...

Prices slow oil demand growth, but not GDP.
March 27, 2006... A $60 per barrel plus oil price does hurt a bit: Global demand growth looks to be on a slower trajectory in 2006 than might be expected, given blazing global economic expansion. However, it apparently doesn't hurt enough to cure the problem by...

Black Sea--the Black Sea could have the same oil and gas potential as the Caspian Sea, according to Anadarko Petroleum, which recently completed a deepwater well off Turkey and is preparing to drill off Georgia.(GENERAL)
March 27, 2006... BLACK SEA -- The Black Sea could have the same oil and gas potential as the Caspian Sea, according to Anadarko Petroleum, which recently completed a deepwater well off Turkey and is preparing to drill off Georgia. To date, only three deepwater...

Industry restructuring--investment bank Morgan Stanley has made an unsolicited offer to purchase US midstream firm TransMontaigne for $379 million.(GENERAL)
March 27, 2006... INDUSTRY RESTRUCTURING -- Investment bank Morgan Stanley has made an unsolicited offer to purchase US midstream firm TransMontaigne for $379 million. Morgan Stanley already owns 10.07% of the midstream company. Russian oil services firm Integra...

Angola--US independent Devon Energy is re-evaluating its exploration activities after three unsuccessful wells and may exit the country altogether.(COUNTRIES)
March 27, 2006... ANGOLA -- US independent Devon Energy is re-evaluating its exploration activities after three unsuccessful wells and may exit the country altogether. The company has already taken a $170 million impairment charge after drilling dry holes last...