Petroleum Intelligence Weekly articles from October 2003

Petroleum Intelligence Weekly archives from October 2003

US gas faces costly, nervous winter market.
October 6, 2003... Six months after a cold US winter that sent natural gas prices spiking and drained storage to record lows, the US gas industry stands at the doorstep of another heating season--and anxiety is running high. Winter strip gas futures on the New...

Opec calls halt to non-Opec's free ride.
October 6, 2003... If Opec is about to launch a battle for market share with its non-Opec rivals, it is going about it in an odd way. Rather than demand non-Opec producers share the burden of propping up oil prices by supporting its 900,000 barrel per day cut...

Kuwait jet fuel hits new hurdle in Europe.
October 6, 2003... Kuwait is Europe's second largest supplier of jet fuel and last month's decision by the European Commission--to take Kuwait off its list of developing countries deserving preferential trading terms--could raise prices for northwest European...

Petronas set to crack Indonesia retail market.
October 6, 2003... With a population of 230 million and burgeoning demand for oil products, Indonesia represents a glittering--if uncertain--prize for foreign companies with downstream ambitions, particularly since the country now has only about 2,600 gas...

Shadows linger over Oman oil and gas.(Unexpectedly sharp decline in Oman's oil production)
October 6, 2003... The unexpectedly sharp decline in Oman's oil production--from a peak of nearly I million barrels per day five years ago to just over 700,000 b/d--hasn't slowed much (PIW Sep.23'02,p2). Leading producer Petroleum Development Oman (PDO) is aiming...

North Sea old soldiers fading away.
October 6, 2003... The "old soldiers" among North Sea oil fields are losing the strength to support current production, much less to help regional output rise. That burden has been progressively passed on to the next generation of fields, those started up between...

Ecuador's pipeline politics flare up again.(Politics over new privately run OCP crude oil pipeline)
October 6, 2003... Despite the completion of Ecuador's new privately run OCP crude oil pipeline this summer, the pipeline politics that have flared between the foreign companies that developed the line and the government of President Lucio Gutierrez are far from...

Formula prices--Mexico left discounts for Maya crude exports to the US Gulf Coast, Caribbean, and Europe unchanged, but lowered discounts for cargoes bound for the US West Coast.(General)(Brief Article)(Illustration)
October 6, 2003... FORMULA PRICES--Mexico left discounts for Maya crude exports to the US Gulf Coast, Caribbean, and Europe unchanged, but lowered discounts for cargoes bound for the US West Coast. Maya bound for the Western Hemisphere in November was unchanged...

Futures--the New York Mercantile Exchange (Nymex) is considering a merger with its archrival, the IntercontinentalExchange (ICE), amid mounting financial and technological pressures.(General)(Brief Article)
October 6, 2003... FUTURES--The New York Mercantile Exchange (Nymex) is considering a merger with its archrival, the IntercontinentalExchange (ICE), amid mounting financial and technological pressures (PIW May19,p8). Sources close to Nymex tell PIW that merger...

Industry restructuring--Bank Grupo Santander threw down the gauntlet to French oil major Total with a $1.4 billion bid for a 16% stake in Spanish oil firm Cepsa.(General)(Brief Article)
October 6, 2003... INDUSTRY RESTRUCTURING--Bank Grupo Santander threw down the gauntlet to French oil major Total with a $1.4 billion bid for a 16% stake in Spanish oil firm Cepsa. Total has long been thought likely to extend its 45% stake in Cepsa and take full...

Brazil--state-owned energy giant Petrobras said on Tuesday that a recently imposed state tax may jeopardize building plans for at least one of two 180,000 b/d deepwater production platforms tendered in September.(Countries)(Brief Article)
October 6, 2003... BRAZIL -- State-owned energy giant Petrobras said on Tuesday that a recently imposed state tax may jeopardize building plans for at least one of two 180,000 b/d deepwater production platforms tendered in September. Petrobras President Jose...

China--officials are preparing to launch a nationwide tax and duty crackdown on multinational companies later this year, and even oil and gas companies are at risk.(Countries)(Brief Article)
October 6, 2003... CHINA -- Officials are preparing to launch a nationwide tax and duty crackdown on multinational companies later this year, and even oil and gas companies are at risk. The government has ordered officials to collect $12 billion in fines and...

China--crude imports edged up 3.5% in August, or 54,000 b/d, on the same month last year, possibly signaling that the first-half flood of imports will not be sustained.(Countries)(Brief Article)
October 6, 2003... CHINA -- Crude imports edged up 3.5% in August, or 54,000 b/d, on the same month last year, possibly signaling that the first-half flood of imports will not be sustained. In China, year-to-date increases are explained by a hefty increase in...

Egypt--UK-based BG Group and its partners in the Egyptian LNG (ELNG) venture have signed a full sale and purchase agreement (SPA) for Train 2's entire output of 3.6 million tons/yr.(Countries)(Buyer is BG Gas Marketing)
October 6, 2003... EGYPT -- UK-based BG Group and its partners in the Egyptian LNG (ELNG) venture have signed a full sale and purchase agreement (SPA) for Train 2's entire output of 3.6 million tons/yr. The buyer is BG Gas Marketing, a subsidiary of BG. The...

Iraq--Baghdad is considering alternative routes for its oil exports to cope with increasing volumes in coming months, including the possibility of transits through Saudi Arabia via a long-dormant pipeline to the Red Sea coast, Iraqi Oil Minister Ibrahim Bahr al-Uloum was quoted as saying.(Countries)(Brief Article)
October 6, 2003... IRAQ -- Baghdad is considering alternative routes for its oil exports to cope with increasing volumes in coming months, including the possibility of transits through Saudi Arabia via a long-dormant pipeline to the Red Sea coast, Iraqi Oil...

Japan--the flood of crude imports in the first half of this year may not be sustained in the third quarter, let alone the fourth.(Countries)(Brief Article)
October 6, 2003... JAPAN -- The flood of crude imports in the first half of this year may not be sustained in the third quarter, let alone the fourth. Crude oil imports in Japan, the world's second-largest oil consumer, slipped in August to 3.89 million b/d, for...

Jordan--plans to build a crude oil pipeline to import Iraqi oil have been suspended and officials will focus instead on importing crude from Mideast Gulf states by sea, Jordanian Energy Minister Mohammad Batayneh tells PIW.(Countries)(Brief Article)
October 6, 2003... JORDAN -- Plans to build a crude oil pipeline to import Iraqi oil have been suspended and officials will focus instead on importing crude from Mideast Gulf states by sea, Jordanian Energy Minister Mohammad Batayneh tells PIW. Amman invited bids...

Peru--Dallas-based Hunt Oil and its partners are proceeding with plans to develop its LNG venture fed by production from the long-delayed Camisea field.(Countries)(Brief Article)
October 6, 2003... PERU -- Dallas-based Hunt Oil and its partners are proceeding with plans to develop its LNG venture fed by production from the long-delayed Camisea field. Hunt affiliate Peru LNG has signed a memorandum of understanding to sell 2.7 million...

Venezuela--the government plans to expand an agreement with Oil India sometime this month to provide technical assistance for exploration of heavy crude fields, which could lead to the creation of a joint venture to exploit India's heavy crude reserves in the Baghewala field, in the Rajasthan Desert near the border with Pakistan.(Countries)(Brief Article)
October 6, 2003... VENEZUELA -- The government plans to expand an agreement with Oil India sometime this month to provide technical assistance for exploration of heavy crude fields, which could lead to the creation of a joint venture to exploit India's heavy...

Port disputes threaten Russian export boost.(What's New Around the World)
October 6, 2003... Russia has set out to boost crude exports by 35,000 barrels per day in the October port loading programs, compared with September, but some last minute bickering could scupper these gains and could even trim next month's loadings by twice that...

UAE--the group of heavyweight oil companies bidding for a 28% slice of offshore producer Zakum Development Co. (Zadco) have been told they will have to wait until the end of the year, at the earliest, for a decision.(Countries)(Brief Article)
October 6, 2003... UAE -- The group of heavyweight oil companies bidding for a 28% slice of offshore producer Zakum Development Co. (Zadco) have been told they will have to wait until the end of the year, at the earliest, for a decision. This is at least the...

Low-calorie diet.(Marketview)(US imports of crude oil come down fast)
October 6, 2003... NEW YORK -- US imports of crude oil are coming down fast, dropping by 1.25 million b/d to 9.5 million b/d in the two weeks through Sep. 26, which is preventing commercial crude inventories from building and is also helping prop up crude oil...

Oil & Money conference 2003.(London on Nov. 4-5, 2003)(Brief Article)
October 6, 2003... Jointly convened with the International Herald Tribune, Oil and Money 2003 will take place at the inter-Continental Hotel in London on Nov. 4-5, 2003. The theme for this year will be Shaping a Course for a Fragile World and will feature...

PIW market indicators.(Illustration)
October 6, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $26.61 $25.35 $26.44 UK Brent (Dated) ...

Iraq ups oil sales, limits spot market.
October 13, 2003... Now that the security situation in southern Iraq is stabilizing, and crude oil exports from that region are set to increase to 1.3 million barrels per day in October, as the loading schedule suggests, Iraq's state oil marketing organization...

How Saudi gas contracts stack up.
October 13, 2003... After years of negotiation on the subject, making money from Saudi gas is still difficult--at least, that appears to be the lesson from the kingdom's first new foreign upstream contract, details of which have been obtained by PIW. The deal...

Oil investors find value in emerging markets.
October 13, 2003... While shares of top US and European oil companies continue to underperform a resurgent broader equity market, energy companies based in emerging markets are enjoying a banner year in 2003. Shares of leading oil and gas companies based in Latin...

Nymex problems spur merger talks with ICE.(New York Mercantile Exchange (Nymex) and its electronic rival, IntercontinentalExchange)
October 13, 2003... Whisperings about a merger between the New York Mercantile Exchange (Nymex) and its electronic rival, the IntercontinentalExchange (ICE), have grown louder in recent weeks. But whereas ICE was in trouble before--as liquidity collapsed in its...

Opec fights supply battle on three fronts.
October 13, 2003... Opec has been facing a supply battle on two fronts: returning Iraqi production and a relentless rise in non-Opec flows. Bubbling beneath the surface, however, is an internal struggle that the group has chosen to ignore, for now, but this...

Iran makes way toward Caspian hub status.
October 13, 2003... Iran is at last making progress in its drive to become a major hub for Caspian crude, unfazed by years of US opposition to the Mideast country becoming a transit route for Central Asian oil. Caspian crude is appearing in ever-greater quantities...

LNG slows GTL, but expansion continues.(Liquefied natural gas, natural gas-to-liquids )
October 13, 2003... When reports first broke some seven years ago that Exxon and Qatar Petroleum (QP) were negotiating a deal to construct a natural gas-to-liquids (GTL) plant to exploit Qatar's massive gas reserves, the deal was viewed as the first in an expected...

Corporate--Unocal said its third-quarter production win come in 3% to 5% below its earlier guidance of around 460,000 boe/d, due mainly in delays in the startup of its West Seno deepwater off and gas project offshore.(General)(Brief Article)
October 13, 2003... CORPORATE--Unocal said its third-quarter production win come in 3% to 5% below its earlier guidance of around 460,000 boe/d, due mainly in delays in the startup of its West Seno deepwater off and gas project offshore. The California-based...

Formula prices--Mexico raised prices for its Maya crude sold to Asia, but lowered premiums for Isthmus sent across the Pacific, in line with changes in Saudi Arabian crude differentials.(General)(Brief Article)(Illustration)
October 13, 2003... FORMULA PRICES--Mexico raised prices for its Maya crude sold to Asia, but lowered premiums for Isthmus sent across the Pacific, in line with changes in Saudi Arabian crude differentials. The discount for Maya crude was tightened to $2.40/bbl...

Industry restructuring--US ConocoPhillips moved forward with plans to divest the bulk of its huge US retail marketing network, agreeing to sell its Circle K assets to Canadian convenience store specialist Alimentation Couche-Tard for about US$830 million.(General)(Brief Article)
October 13, 2003... INDUSTRY RESTRUCTURING--US ConocoPhillips moved forward with plans to divest the bulk of its huge US retail marketing network, agreeing to sell its Circle K assets to Canadian convenience store specialist Alimentation Couche-Tard for about...

Natural gas--the European Union has settled a dispute with Italy's ENI and with Russian giant Gazprom over restrictive sales clauses in their existing contracts--a major step, it says, towards a fully competitive European gas market.(General)(Brief Article)
October 13, 2003... NATURAL GAS--The European Union has settled a dispute with Italy's ENI and with Russian giant Gazprom over restrictive sales clauses in their existing contracts--a major step, it says, towards a fully competitive European gas market. ENI will...

Canada -- oil and gas pipeline firm Enbridge plans to invest around US$3 billion in oil pipelines before the end of the decade to move heavy crude to markets in the US and Asia (PIW Sep.15,p4).(Countries)(Brief Article)
October 13, 2003... CANADA -- Oil and gas pipeline firm Enbridge plans to invest around US$3 billion in oil pipelines before the end of the decade to move heavy crude to markets in the US and Asia (PIW Sep.15,p4). Enbridge executives last week outlined the...

Iraq -- state oil company PetroVietnam hopes to resume operations at Amara oil field this year.(Countries)(Brief Article)
October 13, 2003... IRAQ -- State oil company PetroVietnam hopes to resume operations at Amara oil field this year. The company signed a $300 million development contract with former Iraqi leader Saddam Hussein's regime in March 2002 for the 80,000 b/d Amara...

Mexico -- mounting debt and the need for revenue threaten to undermine Pemex's expansion plans.(Countries)(Brief Article)
October 13, 2003... MEXICO -- Mounting debt and the need for revenue threaten to undermine Pemex's expansion plans. Moody's has put Pemex on a credit ratings review, citing concerns over its level of debt, its use of debt for higher-risk activities such as...

Romania -- the Energy Ministry has narrowed the number of companies selected to participate in the privatization of national off company Petrom (PIW Sep.29,p7).(Countries)(Brief Article)
October 13, 2003... ROMANIA -- The Energy Ministry has narrowed the number of companies selected to participate in the privatization of national off company Petrom (PIW Sep.29,p7). The 11 firms selected were US companies Alon, Occidental, and ConocoPhillips;...

Russia -- law enforcement agencies have stepped up their campaign against Yukos with a vengeance--just days after talks with US supermajor Exxon Mobil were confirmed and Yukos finalized its takeover of Sibneft.(Countries)(Brief Article)
October 13, 2003... RUSSIA -- Law enforcement agencies have stepped up their campaign against Yukos with a vengeance--just days after talks with US supermajor Exxon Mobil were confirmed and Yukos finalized its takeover of Sibneft. Police raided Yukos' headquarters...

Russia -- strengthening its presence in the region, Total has signed a joint venture agreement with state-owned Rosneft to explore and develop the Tuapse Depression in the Black Sea.(Countries)(Brief Article)
October 13, 2003... RUSSIA -- Strengthening its presence in the region, Total has signed a joint venture agreement with state-owned Rosneft to explore and develop the Tuapse Depression in the Black Sea. Under the accord, the two companies are setting up a 50-50...

Russia -- amid pressure to reverse the flow of the idle 180,000 b/d Odessa-Brody pipeline, Ukraine's state off company Ukrtransnafta has accepted an offer from TNK-BP to supply the line with its first large delivery of crude oil.(Countries)(Brief Article)
October 13, 2003... RUSSIA -- Amid pressure to reverse the flow of the idle 180,000 b/d Odessa-Brody pipeline, Ukraine's state off company Ukrtransnafta has accepted an offer from TNK-BP to supply the line with its first large delivery of crude oil. TNK-BP offered...

Russia -- the Ministry of Natural Resources and Royal Dutch/Shell have reached a truce over development of the Salym fields in Western Siberia.(Countries)(Brief Article)
October 13, 2003... RUSSIA -- The Ministry of Natural Resources and Royal Dutch/Shell have reached a truce over development of the Salym fields in Western Siberia. Under the agreement, Shell will withdraw lawsuits it filed protesting the ministry's threat to...

Taiwan -- Chinese Petroleum Corp. (CPC) and China National Offshore Oil Corp. finally began drilling their inaugural well last week, 18 months after signing a landmark joint exploration agreement.(Countries)
October 13, 2003... TAIWAN -- Chinese Petroleum Corp. (CPC) and China National Offshore Oil Corp. finally began drilling their inaugural well last week, 18 months after signing a landmark joint exploration agreement. The May 2002 agreement was the first of its...

Lukman resignation ends era for Nigeria.(What's New Around the World)(Rilwanu Lukman)
October 13, 2003... Rilwanu Lukman, special oil adviser to Nigeria's President Olusegun Obasanjo, chairman of state Nigerian National Petroleum Corp. (NNPC), and the face of Nigerian oil for nearly two decades, resigned last week. His departure signals further...

United Kingdom -- ministers and executives say this month's deal with Norway, while hot a full treaty, will expedite final investment decisions on the Britpipe project from Norsk Hydro's Ormen Lange field and another dry-gas pipeline.(Countries)
October 13, 2003... UNITED KINGDOM -- Ministers and executives say this month's deal with Norway, while hot a full treaty, will expedite final investment decisions on the Britpipe project from Norsk Hydro's Ormen Lange field and another dry-gas pipeline. The...

Freight fright.(Marketview)
October 13, 2003... SINGAPORE--Falling freight rates on shipments from the Middle East to Asia could spur new demand for heavy sour grades in December, which otherwise would have faced stiff competition from inbound West African arbitrage cargoes. Fears that...

Pertamina's influence diminishes.(Pertamina Humas P.T.)
October 13, 2003... The Indonesian government has ordered Pertamina to relinquish its domestic retail monopoly, a major concession in a growing market with 230 million people (PIW Oct.6, p3). The new entrant, Malaysia's Petronas, will operate a retail network in...

PIW market indicators.(Petroleum Intelligence Weekly)(Illustration)
October 13, 2003... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $28.10 $26.78 $25.48 UK Brent (Dated) 29.41 ...

Shell lights a new gas fire in Qatar.
October 20, 2003... Lest anyone forget that Royal Dutch/Shell Group continues to consider itself the only global natural gas company, the Anglo-Dutch giant is expected to disclose advances on several liquefied natural gas (LNG) endeavors in the next few weeks as...

Iraqi sales strategy angers some lifters.(State Oil Marketing Organization (Somo) is forging ahead with increasing its exports )
October 20, 2003... Iraq's State Oil Marketing Organization (Somo) is forging ahead with increasing its exports but its hope of developing a term contract market for Iraqi oil and squelching the growth of a spot market appears to be in tatters. Market sources...

Unusual drilling technique opens more reserves.
October 20, 2003... Which oil company does twice as much unconventional drilling as its large major and super-major rivals combined? Royal Dutch/Shell reckons that it leads the field by a wide margin. Shell's use of underbalanced drilling--which flouts one of the...

Kazakhs play hard ball with investors.(Kazakhstan intends to become one of the world's biggest oil producers)
October 20, 2003... Kazakhstan has served notice that it intends to become one of the world's biggest oil producers, with Chevron Texaco estimating that the Central Asian country's output could ultimately reach 5 million barrels per day, more than most Opec...

Doubts remain on Russian equity deals.(Russia has been the investment story of the year for the oil and gas industry)
October 20, 2003... Russia's return to investment grade status in the eyes of debt ratings agency Moody's appears to have capped a stunning year for the country. With Iraq in turmoil and Saudi Arabia's original gas opening collapsing, Russia has been the...

Indonesia, China spur moves in Asian refining.
October 20, 2003... Overcapacity in Asian refining is a familiar strategic challenge for supermajors and regional oil companies alike, as they struggle to keep loss-making plants in business while waiting for regional demand to catch up with a capacity glut left...

Balances data backs Opec caution.(Illustration)
October 20, 2003... Opec actions at its Sep. 24 meeting are so far being vindicated not only by subsequent price gains, but also by the latest soundings on global supply and demand conditions. Global supply ran 2.3 million barrels per day ahead of demand in...

Corporate--France's Total has asked the Netherlands Arbitration Institute in The Hague to mediate in a dispute with Spanish bank Santander Central Hispano (SCH) over the two companies' shareholdings in Spain's Cepsa.(General)(Brief Article)
October 20, 2003... CORPORATE--France's Total has asked the Netherlands Arbitration Institute in The Hague to mediate in a dispute with Spanish bank Santander Central Hispano (SCH) over the two companies' shareholdings in Spain's Cepsa. The row follows the bank's...

Formula prices--Saudi Arabia made all grades to the US more expensive by tightening the November differentials, anticipating that its Opec-orchestrated supply cuts will warrant a 30 cents-35 cents increase.(General)(Brief Article)(Illustration)
October 20, 2003... FORMULA PRICES--Saudi Arabia made all grades to the US more expensive by tightening the November differentials, anticipating that its Opec-orchestrated supply cuts will warrant a 30 cents-35 cents increase. But differentials widened for Europe,...

IEA--Oil demand has nowhere to go but up in the fourth quarter after a relatively sluggish third quarter.(General)(Brief Article)
October 20, 2003... IEA--Oil demand has nowhere to go but up in the fourth quarter after a relatively sluggish third quarter. Combined with Opec's decision to keep supply tight, prices should remain firm for much of the winter. In its monthly Oil Market Report,...

Industry restructing--African exploration specialist Fusion Oil & Gas plans to actively pursue a better deal to counter a $65 million takeover bid by UK-listed Sterling Energy.(General)(Brief Article)
October 20, 2003... INDUSTRY RESTRUCTURING--African exploration specialist Fusion Oil & Gas plans to actively pursue a better deal to counter a $65 million takeover bid by UK-listed Sterling Energy. Supermajor BP completed the sale of its 50% stake in Indonesian...

Australia -- local oil company Santos is going ahead with development of the offshore Mutineer-Exeter oil fields in the Carnarvon Basin.(Countries)(Brief Article)
October 20, 2003... AUSTRALIA -- Local oil company Santos is going ahead with development of the offshore Mutineer-Exeter oil fields in the Carnarvon Basin. Production is expected to start in mid-2005, with initial production of 43[degrees] API crude forecast at...

Bolivia -- controversial plans by the Pacific LNG consortium to export gas to Mexico and the US have been put on hold due to an upsurge in violent protests, apparently orchestrated by opponents of President Gonzalo Sanchez de Lozada.(Countries)(Brief Article)
October 20, 2003... BOLIVIA--Controversial plans by the Pacific LNG consortium to export gas to Mexico and the US have been put on hold due to an upsurge in violent protests, apparently orchestrated by opponents of President Gonzalo Sanchez de Lozada. Spanish...

Brazil -- platform maintenance cut into Petrobras' oil output in September, although new processing facilities allowed gas output to rise.(Countries)(Brief Article)
October 20, 2003... BRAZIL -- Platform maintenance cut into Petrobras' oil output in September, although new processing facilities allowed gas output to rise. State-controlled Petrobras produced 1.728 million b/d of oil, and 2.096 Bcf/d of gas, compared with 1.75...

Canada -- TransCanada PipeLines and Gaz Metropolitain, the natural gas utility serving Montreal, Quebec, and surrounding areas, are looking at a site 120 miles northeast of Quebec City for a possible LNG import terminal, though they are not saying whether they are pursuing the opportunity jointly or independently.(Countries)(Brief Article)
October 20, 2003... CANADA -- TransCanada PipeLines and Gaz Metropolitain, the natural gas utility serving Montreal, Quebec, and surrounding areas, are looking at a site 120 miles northeast of Quebec City for a possible LNG import terminal, though they are not...

Kazakhstan -- BG and ENI, joint operators of the Karachaganak field, are expected by the end of the week to have selected one of several options to evacuate the sub-quality condensate from the field's new pipeline that has held up the launch of exports via the Caspian Pipeline Consortium (CPC) route.(Countries)(Brief Article)
October 20, 2003... KAZAKHSTAN -- BG and ENI, joint operators of the Karachaganak field, are expected by the end of the week to have selected one of several options to evacuate the sub-quality condensate from the field's new pipeline that has held up the launch of...

Mexico -- Spanish Repsol YPF bid $2.437 billion for the 20-year contract to develop natural gas from the Reynosa-Monterrey block, the first multiple service contract (MSC) to be tendered.(Countries)(Brief Article)
October 20, 2003... MEXICO -- Spanish Repsol YPF bid $2.437 billion for the 20-year contract to develop natural gas from the Reynosa-Monterrey block, the first multiple service contract (MSC) to be tendered. The bid came in a silver below the reference price....

Nigeria -- Nigeria LNG (NLNG) has signed a firm sales and purchase agreement with the UK's BG Group for the supply of 3.5 Bcm/yr of LNG starting in 2005.(Countries)(Brief Article)
October 20, 2003... NIGERIA -- Nigeria LNG (NLNG) has signed a firm sales and purchase agreement with the UK's BG Group for the supply of 3.5 Bcm/yr of LNG starting in 2005. BG will supply the LNG from the NLNG Plus project to the US' Lake Charles import terminal...

Nigeria -- a third appraisal well on the deepwater Usan field has proved successful, confirming the presence of commercial quantifies of oil, as well as additional potential in previously untested reservoirs.(Countries)(Brief Article)
October 20, 2003... NIGERIA -- A third appraisal well on the deepwater Usan field has proved successful, confirming the presence of commercial quantifies of oil, as well as additional potential in previously untested reservoirs. France's Total has made a...

Qatar -- Exxon Mobil and state Qatar Petroleum (QP) last week signed the largest LNG deal in the industry's 35-year history, forming RasGas-3, a "full-chain" LNG venture, to be owned 70% by QP and 30% by Exxon, to supply 26 Tcf of natural gas to the US over 25 years (p1).(Countries)(Brief Article)
October 20, 2003... QATAR -- Exxon Mobil and state Qatar Petroleum (QP) last week signed the largest LNG deal in the industry's 35-year history, forming RasGas-3, a "full-chain" LNG venture, to be owned 70% by QP and 30% by Exxon, to supply 26 Tcf of natural gas...

Russia -- Lukoil is raising its overseas spending and plans to drill one exploration well each in Iran, Colombia, offshore Azerbaijan, and offshore Kazakhstan in 2004.(Countries)(Brief Article)
October 20, 2003... RUSSIA -- Lukoil is raising its overseas spending and plans to drill one exploration well each in Iran, Colombia, offshore Azerbaijan, and offshore Kazakhstan in 2004. The company is interested in a host of upstream projects in Iran but is...

United States -- August crude imports were a record for the month and the fourth-highest monthly imports ever despite a sharp drop in supplies from Saudi Arabia, which fell by 360,000 b/d from July to 1.475 million b/d.(Countries)(Brief Article)(Illustration)
October 20, 2003... UNITED STATES -- August crude imports were a record for the month and the fourth-highest monthly imports ever despite a sharp drop in supplies from Saudi Arabia, which fell by 360,000 b/d from July to 1.475 million b/d. Mexico was the top crude...

Vietnam -- state-run Korea National Oil Corp. (KNOC) is planning a $300 million investment to build oil and gas extraction facilities off the south coast early next year.(Countries)(Brief Article)
October 20, 2003... VIETNAM -- State-run Korea National Oil Corp. (KNOC) is planning a $300 million investment to build oil and gas extraction facilities off the south coast early next year. The investment will be in Block 11-2, in the gas-rich Nam Con Son basin,...

Yemen -- US Vintage and Canada's TransGlobe have submitted a development plan for their Block S-1 joint venture, which focuses on the An Nagyah light oil pool.(Countries)(Brief Article)
October 20, 2003... YEMEN -- US Vintage and Canada's TransGlobe have submitted a development plan for their Block S-1 joint venture, which focuses on the An Nagyah light oil pool. The plan provides for early production of up to 2,500 b/d from the first quarter of...

TNK-BP recognizes risks, rates them worth taking.(Plans and aspirations for $7 billion TNK-BP joint venture with Alfa Group and Access Renova )
October 20, 2003... BP offered a tantalizing glimpse of what the future could hold for Exxon Mobil and other potential western investors in Russia, as it outlined plans and aspirations for its $7 billion TNK-BP joint venture with Alfa Group and Access Renova...

Corn or carcinogen.(Marketview)(Can ethanol replace methyl tertiary butyl ether as an additive to make US gasoline burn cleaner)
October 20, 2003... Can ethanol replace methyl tertiary butyl ether, better known as MTBE, as an additive to make US gasoline burn cleaner, without disrupting already fragile fuel supplies and adding to price volatility? The experts don't know. But the issue...

German tanks build despite low Rhine.(German household fuel tanks built 70,000 b/d in September despite Rhine river level falling to just 40 centimeters at Kaub in southern Germany)(Brief Article)
October 20, 2003... Fears that chronically low water levels on the fiver Rhine would leave Germany short of heating oil this winter are proving unfounded (PIW Aug.18,p8). German household fuel tanks managed to build 70,000 b/d in September despite the river...

PIW market indicators.(Illustration)
October 20, 2003... ZI-0IKL-2003-OCT20-IDSI-8-3.JPG 3 PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Baket $29.73 28.19 ...

Russia, Qatar vie for gas supremacy.(Russia should have Asian LNG sales to complement its European pipeline flows within 4 years)
October 27, 2003... International supply of natural gas has to date been a largely regional affair. Mideast shipments to Japan or South Korea and the occasional off-season sale of an Asian spot liquefied natural gas (LNG) cargo to the US constitute the outer...

Majors hang back, minnows think big in Iraq.(Oil majors are unanimous that now is not time to seek work in Iraq)
October 27, 2003... The oil majors are unanimous that now is not the time to seek work in Iraq: With a legitimate elected government unlikely for two years, potential guerrilla action against employees and assets, and a minefield of local and international...

Tighter specs challenge Africa's refiners.
October 27, 2003... The tighter product specifications that are taxing the resources of refiners in Europe and the US are threatening to cause far greater convulsions among refiners in sub-Saharan Africa. With the exception of South Africa, government and private...

Qatar leads global LNG into new era.
October 27, 2003... Future historians seeking to locate when liquefied natural gas (LNG) came into its own as a world-scale energy delivery system are likely to pinpoint October 2003, with Qatar now on track to become the world's largest supplier and the...

Scorecard: Asia pays more; US takes more.
October 27, 2003... Mideast producers lowered their crude oil prices for buyers in the US and Europe in the third quarter to remain competitive and protect their sales volumes to these regions, but they managed to maintain the traditionally higher price levels in...

Pipelines pose Asia problems for Opec.
October 27, 2003... A long neglected pipeline across Israel has become the latest conduit for Russian crude flows into Asia. Though the volumes are small so far, the Trans-Israel Pipeline (Tipline) has the potential to grow from an opportunistic arbitrage trade...

Costs, politics hobble Iran's big ambitions.(Pursues twin-track strategy of developing huge onshore oilfields and reversing decline at producing fields by drilling more wells and increasing gas reinjection)
October 27, 2003... Iran faces an uphill task as it pursues a twin-track strategy of developing huge onshore oilfields and reversing the decline at producing fields by drilling more wells and increasing gas reinjection. The task will be that much harder without...