Petroleum Intelligence Weekly articles from November 2003

Petroleum Intelligence Weekly archives from November 2003

Yukos saga spooks investors in Russia.(Seizure by prosecutors of a huge stake in YukosSibneft)
November 3, 2003... Last week's dramatic seizure by prosecutors of a huge stake in YukosSibneft, Russia's largest oil company, could be construed as the first step in the renationalization of Russia's privatized oil assets. The debacle certainly snuffed out any...

Urals makes first waves in Asia.
November 3, 2003... The flow of Russian Urals Blend crude oil to Asia is still paltry--at an estimated 55,000 barrels per day--but Saudi Arabia and other Mideast exporters are keeping a wary eye on this new contender in their eastern market. Russia is in the...

Explorers bet on oil in East Africa.
November 3, 2003... After decades of neglect, East Africa is at last attracting oil exploration. Two years ago, the region's offshore waters boasted just a handful of explorers and two gas projects, while onshore prospects were mostly dismissed. Now companies are...

Big oil upgrades its assumptions.(Top oil companies increase their "mid-cycle" oil price assumptions)
November 3, 2003... With oil prices hovering closer to $30 per barrel than $20/bbl for the better part of the past four years, signs are now emerging that top oil companies are finally increasing their "mid-cycle" oil price assumptions, around which they plan...

Don't blame funds for big price turns.
November 3, 2003... Managers of so-called "alternative investment funds"--namely hedge funds and managed futures funds--have taken a lot of heat lately for the ups and downs in crude oil prices. Non-commercial speculators on the New York Mercantile Exchange...

Petrobras turns into latin American leader.
November 3, 2003... Brazil's Petrobras is fast evolving from a purely national giant into the dominant oil company in Latin America. Buying control last year of Argentina's Pecom Energia lifted production past 2 million barrels per day, and brought with it stakes...

Saudi Aramco gets out the gas unaided.
November 3, 2003... The collapse of the original, ambitious Saudi gas initiative and its relaunch in a sharply reduced form has left Saudi Aramco to concentrate on harnessing its proven gas reserves to meet a sharp increase in domestic demand and to look at...

How much crude does Russia have to offer?
November 3, 2003... When the topic of Russia is raised today the issue really is: What levels of crude oil production might be, reached in the coming years, how much might be available for export, and how that oil might move to markets particularly markets outside...

Corporate--Hungary's Mol and Poland's PKN Orlen announced merger talks that could produce a major consolidation of Eastern and Central Europe's downstream. Finance ministers from Poland and Hungary will meet in mid-November to discuss a deal.(General)(Brief Article)
November 3, 2003... CORPORATE--Hungary's Mol and Poland's PKN Orlen announced merger talks that could produce a major consolidation of Eastern and Central Europe's downstream. Finance ministers from Poland and Hungary will meet in mid-November to discuss a deal. A...

Industry restructing--Switzerland-based industrial group ABB plans to sell off the majority of its upstream oil and gas business to a private investment group made up of JP Morgan, Candover Partners, and 31 Group. The preliminary deal is worth as much as $975 million.(General)(Brief Article)
November 3, 2003... INDUSTRY RESTRUCTING--Switzerland-based industrial group ABB plans to sell off the majority of its upstream oil and gas business to a private investment group made up of JP Morgan, Candover Partners, and 31 Group. The preliminary deal is worth...

LNG--Portugal's first LNG terminal at Sines has received its debut cargo.(General)(Brief Article)
November 3, 2003... LNG--Portugal's first LNG terminal at Sines has received its debut cargo. A Nigerian shipment on Oct. 26 means the EU state has direct access to global LNG for the first time. Portugal consumes 3 Bcm/yr (290 MMcf/d) of gas, 85% from Algeria by...

LNG--China agreed to pay a whopping A$30 billion (US$21 billion) for up to 100 million tons of LNG from Australia's Gorgon gas project over the next 25 years in the biggest export deal in Australian history.(General)(Brief Article)
November 3, 2003... LNG--China agreed to pay a whopping A$30 billion (US$21 billion) for up to 100 million tons of LNG from Australia's Gorgon gas project over the next 25 years in the biggest export deal in Australian history. As with its earlier pact to buy...

Algeria -- After weeks of blockbuster gas deals in Qatar, the North African gas giant is quietly reasserting its role as a top global gas supplier (PIW Oct.27,p3).(Countries)(Brief Article)
November 3, 2003... Algeria -- After weeks of blockbuster gas deals in Qatar, the North African gas giant is quietly reasserting its role as a top global gas supplier (PIW Oct.27,p3). State Sonatrach believes total exports will reach 85 Bcm/yr (8.2 Bcf) by the end...

Gabon -- dallas-based independent pioneer natural resources is seeking a joint venture partner for its upcoming development of the offshore Olowi Block, which it operates with a 100% working interest.(Countries)(Brief Article)
November 3, 2003... Gabon -- dallas-based independent pioneer natural resources is seeking a joint venture partner for its upcoming development of the offshore Olowi Block, which it operates with a 100% working interest. Proposals are due in early December....

India -- True to form, state Oil & Natural Gas Corp. (ONGC) pocketed mast of the 21 oil and gas exploration blocks offered in the fourth round conducted under the New Exploration Licensing Policy (NELP).(Countries)(Brief Article)
November 3, 2003... INDIA -- True to form, state Oil & Natural Gas Corp. (ONGC) pocketed mast of the 21 oil and gas exploration blocks offered in the fourth round conducted under the New Exploration Licensing Policy (NELP). ONGC and its partners won 15 blocks....

Iraq -- Russian oil giant Lukoil is pulling out the stops to save its deal to develop the West Qurna oil field, signed with and later scrapped by the ousted regime of Saddam Hussein.(Countries)(Brief Article)
November 3, 2003... IRAQ -- Russian oil giant Lukoil is pulling out the stops to save its deal to develop the West Qurna oil field, signed with and later scrapped by the ousted regime of Saddam Hussein. Lukoil has hired US engineering firm Fluor to design a system...

Iraq -- State Oil Marketing Organization (Somo) has agreed a contract to supply Jordan with up to 2.6 million bbl of Basrah Light through the end of the year, equivalent to 50,000 bid.(Countries)
November 3, 2003... IRAQ -- State Oil Marketing Organization (Somo) has agreed a contract to supply Jordan with up to 2.6 million bbl of Basrah Light through the end of the year, equivalent to 50,000 bid. The crude will be shipped from the Mideast Gulf port of...

Iraq -- The US Army Corps of Engineers (USACE) delayed the award of two new contracts to repair and rehabilitate the oil sector, hat doubled their potential value to $2 billion after identifying more work and security costs, The maximum value of the contracts has been raised to $800 million for the northern oil fields and $1.2 billion for the southern fields.(Countries)(Brief Article)
November 3, 2003... IRAQ -- The US Army Corps of Engineers (USACE) delayed the award of two new contracts to repair and rehabilitate the oil sector, that doubled their potential value to $2 billion after identifying more work and security costs, The maximum value...

Kazakhstan -- Slovakian Nafta is putting up for sale its 81% stake in tiny producer Anako as a mini-clearout of local assets continues.(Countries)(Brief Article)
November 3, 2003... KAZAKHSTAN -- Slovakian Nafta is putting up for sale its 81% stake in tiny producer Anako as a mini-clearout of local assets continues. Russia's Yukas is showing greater interest in the upstream, after acquiring from US independent First...

Kazakhstan -- French Total's plan to farm into the Kurmangazy exploration block in the northern Caspian Sea could be derailed if Russia's state-owned Rosneft decides to preempt.(Countries)(Brief Article)
November 3, 2003... KAZAKHSTAN -- French Total's plan to farm into the Kurmangazy exploration block in the northern Caspian Sea could be derailed if Russia's state-owned Rosneft decides to preempt. Rosneft has rights to half of Russia's 50% share in the project...

Kuwait -- The government is closing ranks with Saudi Arabia to consider bringing development of the Dorra gas field under the umbrella of their offshore joint operations in the Neutral Zone.(Countries)(Brief Article)
November 3, 2003... KUWAIT -- The government is closing ranks with Saudi Arabia to consider bringing development of the Dorra gas field under the umbrella of their offshore joint operations in the Neutral Zone. This would annoy Iran, which also claims the field,...

Mauritania -- Australia's Woodside announced that its offshore Chinguetti 4 and Chinguetti 5 wells flowed at up to 15,680 b/d, "at the maximum flow we had hoped for.".(Countries)(Brief Article)
November 3, 2003... MAURITANIA -- Australia's Woodside announced that its offshore Chinguetti 4 and Chinguetti 5 wells flowed at up to 15,680 b/d, "at the maximum flow we had hoped for." Woodside, the operator, has a 35% stake in Chinguetti, the same as Italy's...

Mexico -- With the first multiple service contracts (MSCs) now being awarded to local and foreign companies, state Pemex is looking into ways that international oil companies could help develop deepwater oil and gas resources in the southern Gulf of Mexico (PIW Oct.27,pt).(Countries)(Brief Article)
November 3, 2003... MEXICO -- With the first multiple service contracts (MSCs) now being awarded to local and foreign companies, state Pemex is looking into ways that international oil companies could help develop deepwater oil and gas resources in the southern...

Nigeria -- Four producers have signed a heads of agreement for front-end engineering and design work to be completed next year on a new Brass LNG export venture that might start exports by 2008.(Countries)
November 3, 2003... NIGERIA -- Four producers have signed a heads of agreement for front-end engineering and design work to be completed next year on a new Brass LNG export venture that might start exports by 2008. The partners are state Nigerian National...

Russia -- Crude exports climbed by 39,000 b/d in September from the previous month and were 100,000 bid above year-ago levels.(Countries)(Brief Article)(Illustration)
November 3, 2003... RUSSIA -- Crude exports climbed by 39,000 b/d in September from the previous month and were 100,000 bid above year-ago levels. The Baltic Sea ports accounted for the entire rise, as Russia's Primorsk added new capacity. A 59,000 b/d drop in...

Russia -- Gas monopoly Gazprom does not plan to allow independent natural gas producers access to its export pipelines before 2008, as part of the second stage of gas market reforms (PIW Oct.27,p1).(Countries)(Brief Article)
November 3, 2003... RUSSIA -- Gas monopoly Gazprom does not plan to allow independent natural gas producers access to its export pipelines before 2008, as part of the second stage of gas market reforms (PIW Oct.27,p1). Exports would still move through Gazprom's...

Sao tome -- ChevronTexaco led the bidding for the hottest prospect among nine offshore oil blocks offered jointly with Nigeria in the prolific Gulf of Guinea, an area believed to hold at least 6 billion bbl of oil.(Countries)(Brief Article)
November 3, 2003... SAO TOME -- ChevronTexaco led the bidding for the hottest prospect among nine offshore oil blocks offered jointly with Nigeria in the prolific Gulf of Guinea, an area believed to hold at least 6 billion bbl of oil. The US major offered $123...

Saudi Arabia -- As it maintains sustainable oil production capacity at around 10.5 million b/d, Saudi Aramco is moving closer to unveiling a major new development at Qatif while ordering another 300,000 b/d expansion at the Ghawar field that is due for completion in 2006 (PIW Mar.10,p1).(Countries)(Brief Article)
November 3, 2003... SAUDI ARABIA -- As it maintains sustainable oil production capacity at around 10.5 million b/d, Saudi Aramco is moving closer to unveiling a major new development at Qatif while ordering another 300,000 b/d expansion at the Ghawar field that is...

United States -- Unocal announced a major hydrocarbon discovery in the remote Walker Ridge area of the Gulf of Mexico, encountering more than 450 net feet of oil pay on its St. Malo prospect with a well drilled to a depth of 29,066 feet in 6,900 feet of water.(Countries)(Brief Article)
November 3, 2003... UNITED STATES -- Unocal announced a major hydrocarbon discovery in the remote Walker Ridge area of the Gulf of Mexico, encountering more than 450 net feet of oil pay on its St. Malo prospect with a well drilled to a depth of 29,066 feet in...

Iraq rocks oman.(Marketview)(Next year's Iraqi exports of Basrah Light throw shadow over Asian trade in Mideast heavy sour crudes)
November 3, 2003... SINGAPORE -- Next year's Iraqi exports of Basrah Light are already throwing a shadow over Asian trade in Mideast heavy sour crudes. Expectations that increasingly large volumes of Basrah Light will flow east next year were instrumental in...

Poor weather props up med crude oil prices.(Marketview)(Brief Article)
November 3, 2003... Poor weather last week hampered exports of Russian crude from the Black Sea, helping to support crude oil prices in the Mediterranean market. Cargoes loading in mid-November were carrying a small premium, as refiners bought forward in the hope...

PIW Market Indicators.(Petroleum Intelligence Weekly)(Illustration)
November 3, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $27.82 $28.43 $28.19 UK Brent (Dated)...

Exxon's Raymond cites virtue of patience.(Exxon Mobil)
November 10, 2003... "Patience." That is the watchword for Exxon Mobil Chairman and Chief Executive Lee R. Raymond. And he has plenty of opportunities to have to exercise this particular virtue these days, for nothing seems to move very quickly at the world's...

Future Saudi oil is not cheap, or easy.(Saudi Aramco continues strategy of keeping sustainable production capacity at around 10.5 million barrels per day)
November 10, 2003... As it continues its strategy of keeping sustainable production capacity at around 10.5 million barrels per day, state Saudi Aramco appears to have little to worry about in the near term. But the need for extra gas and water reinjection to...

Ecuador investors spar ahead of Oriente tender.(Petroecuador offers association contracts to operate Auca, Culebra-Yulebra, Lago Agrio and Shushufindi fields)
November 10, 2003... Established companies and newcomers to Ecuador are jostling for position after State Petroecuador recently tendered four of its most bountiful fields in an attempt to revive them. Existing investors are far from happy with the terms, however....

Big Oil goes in search of a new metric.(Big Oil's capital spending rises as it struggles to replace reserves and develop long-term projects for decades ahead)
November 10, 2003... Big Oil's capital spending is rising as it struggles to replace reserves and develop long-term projects for the decades ahead. This is putting the companies' return on average capital employed (ROACE) under threat, much to the dismay of...

Supermajors stall on entry into China.
November 10, 2003... China has few peers as a magnet for foreign direct investment but the efforts in the energy sector are proving frustrating for the industry giants. Retail, refining, and pipeline projects involving BP, Exxon Mobil, and Royal Dutch/Shell have...

Citgo aims for closer ties to PDV.(Citgo Petroleum's parent is Petroleos de Venezuela )
November 10, 2003... The best way to avoid abandonment is to become indispensable. Citgo Petroleum, the sixth largest refiner in the US, is convinced that strengthening the ties that bind it with its parent company, state-owned Petroleos de Venezuela (PDV), is a...

Robust profits mask problems for Big Oil.(Large integrated oil companies posted 3rd-quarter profits that were, on average, about 40% more, vs year-ago levels)
November 10, 2003... It has been said that a rising tide lifts all ships. The same could be said for high commodity prices and oil company profits: Large integrated oil companies posted robust third-quarter profits that were, on average, about 40% higher compared...

Exxon's strategy: slow and steady wins the race.(Exxon Mobil)(Interview)
November 10, 2003... Nothing seems to move very fast for Exxon Mobil, the world's largest private oil and gas company, but when events do happen, they tend to be megascale, for only projects of that magnitude measure up to Exxon's standards. PIW spoke to Exxon...

Formula prices--anticipating a glut of oil in the US and Europe, Saudi Arabia widened the December differentials to these markets, but increased most prices to Asia. Saudi Aramco had to lower prices most into Europe.(General)(Illustration)
November 10, 2003... FORMULA PRICES--Anticipating a glut of oil in the US and Europe, Saudi Arabia widened the December differentials to these markets, but increased most prices to Asia. Saudi Aramco had to lower prices most into Europe. Demand in Asia is typically...

People--a former group managing director of Shell Nigeria, Edmund Daukoru, succeeded Rilwanu Lukman as presidential advisor on petroleum matters in Nigeria.(General)(Brief Article)
November 10, 2003... PEOPLE--A former group managing director of Shell Nigeria, Edmund Daukoru, succeeded Rilwanu Lukman as presidential advisor on petroleum matters in Nigeria. Funso Kupolokum became head of Nigeria National Petroleum Corp., replacing Jackson...

Azerbaijan -- the International Finance Corp., the World Bank's private sector lending arm, has approved up to $310 million in funding for BP-led projects to produce oil from Caspian Sea oil fields and transport it to international markets.(Countries)
November 10, 2003... AZERBAIJAN -- The International Finance Corp., the World Bank's private sector lending arm, has approved up to $310 million in funding for BP-led projects to produce oil from Caspian Sea off fields and transport it to international markets. The...

China -- crude imports in the first three quarters of this year were an impressive 30% higher than a year ago, driven up by demand for jet fuel, kerosene, and fuel oil.(Countries)(Brief Article)(Illustration)
November 10, 2003... CHINA -- Crude imports in the first three quarters of this year were an impressive 30% higher than a year ago, driven up by demand for jet fuel, kerosene, and fuel oil. Imports were up 415,000 b/d to an average of 1.81 million bid through...

China -- China National Offshore Oil Corp. (CNOOC) signed a contract with Husky Oil China for the exploration of Block 04/35 in the East China Sea.(Countries)(Brief Article)
November 10, 2003... CHINA -- China National Offshore Oil Corp. (CNOOC) signed a contract with Husky Oil China for the exploration of Block 04/35 in the East China Sea (PIW Aug.25,p6). The contract is CNOOC's first with Husky in the East China Sea, but the sixth...

Egypt -- apache confirmed the Qasr field in the Western Desert as a major discovery with reserve potential of 1 Tcf-3 Tcf of gas and 20 milllon-70 million bbl of condensate.(Countries)(Brief Article)
November 10, 2003... EGYPT -- Apache confirmed the Qasr field in the Western Desert as a major discovery with reserve potential of 1 Tcf-3 Tcf of gas and 20 milllon-70 million bbl of condensate. The Houston-based independent announced the Qasr discovery in July,...

Egypt -- BP and German utility RWE found natural gas offshore at their Ruby 2 well in water depths of 764 meters that tested at approximately 254 MMcf/d.(Countries)(Brief Article)
November 10, 2003... EGYPT -- BP and German utility RWE found natural gas offshore at their Ruby 2 well in water depths of 764 meters that tested at approximately 254 MMcf/d. The block is 80% owned by BP and 20% by RWE. The drilling rig will be moved into the...

Kuwait -- although the three short-listed consortia submitted their development plans by the extended deadline of Oct. 29 for increasing oil production at the four oil fields open for investment, the legal fog surrounding the project is no clearer.(Countries)(Brief Article)
November 10, 2003... KUWAIT -- Although the three short-listed consortia submitted their development plans by the extended deadline of Oct. 29 for increasing oil production at the four oil fields open for investment, the legal fog surrounding the project is no...

Libya -- a revised upstream contract model--Exploration and Production Sharing Agreement (EPSA-4)--will be used early next year in place of direct negotiations with individual firms to revive competitive bidding for licenses, Prime Minister Shokri Ghanem told the Oil & Money conference in London last week.(Countries)(Brief Article)
November 10, 2003... LIBYA -- A revised upstream contract model--Exploration and Production Sharing Agreement (EPSA-4)--will be used early next year in place of direct negotiations with individual firms to revive competitive bidding for licenses, Prime Minister...

Mexico -- Pemex failed to attract any bids on its latest multiple service contract (MSC) for the Corindon-Pandura Block, one of the largest on offer.(Countries: what's new around the world)(Brief Article)
November 10, 2003... MEXICO -- Pemex failed to attract any bids on its latest multiple service contract (MSC) for the Corindon-Pandura Block, one of the largest on offer. Pemex valued the contract at about $3.5 billion over 20 years, to add 380 MMcf/d of gas to...

Russia -- crude exports via the Transneft national pipeline system dropped 106,000 b/d in October from the previous month but were still 231,000 b/d above October 2002 levels.(Countries)(Brief Article)(Illustration)
November 10, 2003... RUSSIA -- Crude exports via the Transneft national pipeline system dropped 106,000 h/d in October from the previous month but were still 231,000 b/d above October 2002 levels. The reduction was about evenly split between the Baltic and Black...

Russia -- Norway's Statoil is interested in joining the project to develop the offshore 113 Tcf Shtokman field in the Arctic Barents Sea for LNG exports and has made a proposal to state gas monopoly Gazprom.(Countries)(Brief Article)
November 10, 2003... RUSSIA -- Norway's Statoil is interested in joining the project to develop the offshore 113 Tcf Shtokman field in the Arctic Barents Sea for LNG exports and has made a proposal to state gas monopoly Gazprom. Russian state Rosneft and Gazprom...

RUSSIA -- senior officials from BP, CbevronTexaco, Exxon Mobil, and other international oil companies reacted calmly to the arrest of Mikhail Khodorkovsky and his resignation as Yukos CEO (p1).(Countries)(Brief Article)
November 10, 2003... RUSSIA -- Senior officials from BP, CbevronTexaco, Exxon Mobil, and other international oil companies reacted calmly to the arrest of Mikhail Khodorkovsky and his resignation as Yukos CEO (pl). "We do not believe this case affects our project...

Higher price, strong US refining margins fuel strong Q3 profits.(What's New Around the World)
November 10, 2003... High worldwide crude oil and natural gas prices and robust US refining margins fueled strong earnings for top integrated oil companies in the third quarter. Profits excluding special items at Exxon Mobil, Royal Dutch/Shell, BP, and...

Flying high.(Marketview)(Steady US military demand for jet fuel in Iraq buoyed Mideast Gulf spot values)
November 10, 2003... LONDON/SINGAPORE -- Steady US military demand for jet fuel in Iraq has buoyed Mideast Gulf spot values and helped Saudi Arabia get significantly higher prices for its term exports next year. State Saudi Aramco last week finalized its 2004...

IEA puts a price on energy expansion.(Brief Article)
November 10, 2003... There may be enough money to fund the investments required to fuel the global economy over the next three decades but getting the money to countries that have the capability and desire to use it to increase capacity could be a daunting task,...

PIW market indicators.(Illustration)
November 10, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $27.15 $27.78 $29.80 UK Brent (Dated) 27.81 28.29...

Speculators push hedgers from Nymex to IPE.(New York Mercantile Exchange, International Petroleum Exchange; oil futures)
November 17, 2003... The New York Mercantile Exchange (Nymex) is in danger of becoming a victim of its own success. The historically good correlation between Nymex light, sweet crude oil futures and physical oil prices that attracted the speculative funds in the...

Russia's upside risks being overstated.(oil production, forecast)
November 17, 2003... Much is made of Russia's growing oil production, which recently overtook Saudi Arabia's. Russia is also catching up as an oil exporter, ranking second only to the kingdom. Underlying such comparisons lurks an expectation in some circles that a...

Retailers ignore India downstream sale fiasco.(petroleum industry, privatizations)
November 17, 2003... Privatization has been such an on-off affair in India that it was no great shock when the planned sale of two state refiners was recently delayed again. There is a significant difference this time though. Rather than wait for the sale of...

Europe's second tier oils set fast pace.(Total S.A., ENI, Repsol YPF; production)
November 17, 2003... Third-quarter earnings from Total, ENI, and Repsol YPF may have contained some disappointments, but Europe's second-tier oil companies are delivering stronger volume growth than their bigger rivals, while managing their finances in a...

Clean fuels can mess up US distribution.(petroleum products )
November 17, 2003... No stranger to price spikes, the US market for petroleum products is set to get even messier. Though next year's ban by three key states on methyl tertiary butyl ether (MTBE) as a gasoline additive promises to be disruptive, the introduction of...

China's interest in Latin America on the rise.
November 17, 2003... China is paying special attention to Latin America these days. State oil giants China National Petroleum Corp. (CNPC) and Sinopec now have a toehold in Mexico, Venezuela, Ecuador, and Peru, while China is now a top buyer of Latin American...

Opec cuts may need to go deeper.
November 17, 2003... If global supply data for October is anything to go by, Opec will have to withdraw a lot more than the 900,000 barrels per day it has pledged to shave from collective production beginning Nov. 1 to get anywhere near on quota this month. There...

In chaotic times, Statoil sticks to its global strategy.(Interview)
November 17, 2003... The Horton Investments scandal that rocked Norway's state-controlled Statoil in September claimed the scalps of international exploration and production chief Richard Hubbard, Chairman Leif Terje Loddesol, and Chief Executive Olav Fjell. It...

EnCana's Morgan: targeted exploration pays off.(Interview)
November 17, 2003... With a solid reserve base at home in Western Canada and fast-developing production from Ecuador and the North Sea, super-independent EnCana has been a confident performer. In this PIW interview, conducted at the 24th annual Oil & Money...

Industry restructuring--Lundin is purchasing the UK and Irish oil and gas interests of Norway's DNO, as well as the majority of its Norwegian assets, for $165 million.(General)(Brief Article)
November 17, 2003... INDUSTRY RESTRUCTURING--Lundin is purchasing the UK and Irish oil and gas interests of Norway's DNO, as well as the majority of its Norwegian assets, for $165 million. The proven and probable reserves of 65 million boe currently produce more...

LNG--BG last week announced new strands to its Atlantic basin LNG growth strategy, including plans to bring cargoes to the UK from 2007.(General)(Brief Article)
November 17, 2003... LNG--BG last week announced new strands to its Atlantic basin LNG growth strategy, including plans to bring cargoes to the UK from 2007. Under a new memo of understanding jointly to develop and operate the Dutch Petroplus import terminal at...

Azerbaijan--matching funds from the European Bank for Reconstruction and Development (EBRD) completed the multilateral funding for the Baku-Tbilisi-Ceyhan pipeline.(Countries)(Brief Article)
November 17, 2003... AZERBAIJAN--Matching funds from the European Bank for Reconstruction and Development (EBRD) completed the multilateral funding for the Baku-Tbilisi-Ceyhan pipeline. The $250 million loan approved last week came one week after the World Bank...

Azerbaijan -- Exxon Mobil started drilling the first exploration well under a production sharing agreement (PSA) for the Zafar Mashal Block in the Caspian Sea.(Countries)
November 17, 2003... AZERBAIJAN -- Exxon Mobil started drilling the first exploration well under a production sharing agreement (PSA) for the Zafar Mashal Block in the Caspian Sea. The well will be watched with interest after a succession of dry holes in the Azeri...

China -- natural gas prices are becoming more segmented while the formula for oil products is about to get less flexible as Beijing struggles to link domestic prices with the international market.(Countries)
November 17, 2003... CHINA -- Natural gas prices are becoming more segmented while the formula for oil products is about to get less flexible as Beijing struggles to link domestic prices with the international market. PetroChina's first firm contract for natural...

Ecuador -- October crude production exceeded the previous record set in September, as private upstream producers increased output to take advantage of new pipeline capacity (PIW Nov.10,p2).(Countries)
November 17, 2003... ECUADOR -- October crude production exceeded the previous record set in September, as private upstream producers increased output to take advantage of new pipeline capacity (PIW Nov.10,p2). Production averaged 493,476 b/d, compared with 484,806...

France -- three former executives of oil major Elf, now part of Total were sentenced to jail and ordered to pay large fines in the country's biggest-ever corporate corruption case.(Countries)
November 17, 2003... FRANCE -- Three former executives of oil major Elf, now part of Total were sentenced to jail and ordered to pay large fines in the country's biggest-ever corporate corruption case. Former chairman Loik Le Floch-Prigent and his deputy Alfred...

Mexico -- state oil giant Pemex will export 1.959 million b/d, at an average price of $20/bbl in 2004, according to federal budget projections submitted to Congress.(Countries)
November 17, 2003... MEXICO -- State oil giant Pemex will export 1.959 million b/d, at an average price of $20/bbl in 2004, according to federal budget projections submitted to Congress. Average crude production for 2004 is budgeted at 3.5 million b/d, a level...

Mexico -- the latest multiple service contract (MSC) once again failed to attract any bids last week, despite tender documents being acquired by Exxon Mobil and Total, among others (PIW Nov.10,p9).(Countries)
November 17, 2003... MEXICO -- The latest multiple service contract (MSC) once again failed to attract any bids last week, despite tender documents being acquired by Exxon Mobil and Total, among others (PIW Nov.10,p9). The failure to let the 2,983 sq km Ricos...

Norway -- output of crude and condensate is expected to soar to a projected 3.7 million b/d in December as new fields start up and production is raised from some established ones.(Countries)
November 17, 2003... NORWAY -- Output of crude and condensate is expected to soar to a projected 3.7 million b/d in December as new fields start up and production is raised from some established ones. Data from the Norwegian Petroleum Directorate (NPD) showed...

Russia -- in its quest for pipeline capacity expansions, Moscow is cranking up the pressure on Ukraine to reverse the flow of the Odessa-Brody pipeline.(Countries)
November 17, 2003... RUSSIA -- In its quest for pipeline capacity expansions, Moscow is cranking up the pressure on Ukraine to reverse the flow of the Odessa-Brody pipeline. The largest step has been to reroute some 90,000 b/d of Russian oil that usually goes to...

Russia -- BP's mammoth Kovykta project to pump gas to China and South Korea could end up costing a lot more than originally planned.(Countries)
November 17, 2003... RUSSIA -- BP's mammoth Kovykta project to pump gas to China and South Korea could end up costing a lot more than originally planned. Working groups from Russia, China, and South Korea signed off on Nov. 12 in Irkutsk on an international...

Russia -- new YukosSibneft CEO Simon Kukes does not believe a partnership with a Western major would be a "super deal" that would give any strategic advantages, casting further doubt on the prospects of a large equity acquisition in Yukos by the likes of Exxon Mobil or ChevronTexaco (PIW Nov.3,p1).(Countries)(Brief Article)
November 17, 2003... RUSSIA -- New YukosSibneft CEO Simon Kukes does not believe a partnership with a Western major would be a "super deal" that would give any strategic advantages, casting further doubt on the prospects of a large equity acquisition in Yukos by...

Russia -- Lukoil is pretty much ruling out an equity sale to a strategic partner while targeting 2.2 million b/d of crude production and 33 Bcm/yr of gas (3.2 Bcf/d) by 2010-12, assuming that adequate transportation infrastructure is developed (PIW Nov.3,p1).(Countries)(Brief Article)
November 17, 2003... RUSSIA -- Lukoil is pretty much ruling out an equity sale to a strategic partner while targeting 2.2 million b/d of crude production and 33 Bcm/yr of gas (3.2 Bcf/d) by 2010-12, assuming that adequate transportation infrastructure is developed...

Saudi Arabia -- the joint venture agreement for the exploration and production of non-associated natural gas that brings together Royal Dutch/Shell, Total, and state Saudi Aramco was due to be signed on Nov. 15 after it secured final cabinet approval.(Countries)(Brief Article)
November 17, 2003... SAUDI ARABIA -- The joint venture agreement for the exploration and production of non-associated natural gas that brings together Royal Dutch/Shell, Total, and state Saudi Aramco was due to be signed on Nov. 15 after it secured final cabinet...

United States -- results of an appraisal well drilled by BHP Billiton in the Gulf of Mexico indicate that last year's Shenzi deepwater discovery is much bigger than the original exploration well suggested.(Countries)(Brief Article)
November 17, 2003... UNITED STATES -- Results of a appraisal well drilled by BHP Billiton in the Gulf of Mexico indicate that last year's Shenzi deepwater discovery is much bigger than the original exploration well suggested. The appraisal well encountered about...

Iraqi oil minister shakes up the management.
November 17, 2003... Iraq's interim oil minister, Ibrahim Bahr al-Uloum, has been keeping himself busy reshuffling key posts at the Oil Ministry and various state owned organizations that it controls. He has taken on three advisors--a fourth appointment is...

Sour ending.(Marketview)(High futures prices and soaring freight rates hit end-user demand and undermined spot crude differentials in US cash markets)
November 17, 2003... WASHINGTON/LONDON -- Stubbornly high futures prices and soaring freight rates have hit end-user demand and undermined spot crude differentials in US cash markets. Signs that Opec is disinclined fully to implement pledged production cuts while...