Petroleum Intelligence Weekly articles from October 2006

Petroleum Intelligence Weekly archives from October 2006

Russia turns the screws on foreign PSAs.
October 2, 2006... In what appears to be a concerted attack on foreign interests in Russia, Moscow is sending a clear message to international oil companies: Russian companies must have a bigger say in all upstream developments and the material benefits to the...

Pertamina eyes upstream, aims to double output.
October 2, 2006... Faced with declining oil production, falling LNG exports and an industry that has seen better days, Indonesian state firm Pertamina is reinventing itself. The aim is to transform the company from a downstream giant in a tightly regulated market...

Goal posts keep moving at Kashagan.(oil production)
October 2, 2006... Crunch time beckons for the Eni-led consortium developing the supergiant Kashagan structure offshore Kazakhstan. The estimated costs of the project have risen from $10 billion to around $15 billion due to higher steel prices and the lower value...

Crude stumbles as gasoline, gas Swoon.
October 2, 2006... Crude oil prices have taken a beating in the past couple of months, but nothing like the near meltdown that has hit natural gas and gasoline. Heavier-than-normal liquidation among paper investors hurt both commodities while the natural gas...

Reform likely to elude Mexico, again.
October 2, 2006... One of the many surprises of Mexico's disputed presidential poll was the first promise of former Energy Minister Felipe Calderon after he was confirmed as president-elect. Instead of touting his proposed reform of the energy sector, Calderon...

Terms growing tougher across North Africa.
October 2, 2006... Growing resource nationalism, expanding layers of bureaucracy and tight exploration and development terms--these were the chief grumbles about doing business in North Africa voiced by oil and gas companies attending a conference in Madrid last...

Balancing the global oil equation 2005-20.(oil demand )
October 2, 2006... The following article comes from the presentation by Sadad al-Husseini, retired executive vice president, Saudi Aramco, at the Oil & Money conference in London, organized by Energy Intelligence and the International Herald Tribune. Al-Husseini...

Pertamina's Ari Soemarno: looking to learn.(Interview)
October 2, 2006... As its oil production has peaked, Indonesia has high hopes of turning the decline around by getting the government out of the business and giving Pertamina, the national oil and gas company, a freer hand both upstream and downstream. Reforms...

Corporate--Spanish contractors have waded into the country's utility sector and given Germany's E.On a nasty, expensive shock in its quest to acquire the country's largest power company (PIW Mar.6,p2).(GENERAL)
October 2, 2006... CORPORATE -- Spanish contractors have waded into the country's utility sector and given Germany's E.On a nasty, expensive shock in its quest to acquire the country's largest power company (PIW Mar.6,p2). As expected, the EU Commission has ruled...

Futures--the New York Mercantile Exchange (Nymex) plans to begin trading a futures contract for Russia's Urals crude on its round-the-clock electronic system by the end of the year, the latest step in the search for a sour benchmark.(GENERAL)
October 2, 2006... FUTURES -- The New York Mercantile Exchange (Nymex) plans to begin trading a futures contract for Russia's Urals crude on its round-the-clock electronic system by the end of the year, the latest step in the search for a sour benchmark. The...

Industry restructuring--US drilling contractor Nabors Industries has teamed up with a private equity firm First Reserve Corp. to create NFR Energy, an onshore-focused exploration and production company.(GENERAL)
October 2, 2006... INDUSTRY RESTRUCTURING -- US drilling contractor Nabors Industries has teamed up with a private equity firm First Reserve Corp. to create NFR Energy, an onshore-focused exploration and production company. Nabors, the largest land driller in the...

Enron's former Chief Financial Officer Andrew Fastow was sentenced to a six-year federal prison term for his part in the collapse of the energy trading company.(PEOPLE)
October 2, 2006... Enron's former Chief Financial Officer Andrew Fastow was sentenced to a six-year federal prison term for his part in the collapse of the energy trading company. Former Chief Executive Jeff Skilling is due to be sentenced on Oct. 23. His...

China--imports of crude in August rose by a dramatic 34.9% year-on-year, to nearly 2.8 million b/d.(COUNTRIES)
October 2, 2006... CHINA -- Imports of crude in August rose by a dramatic 34.9% year-on-year, to nearly 2.8 million b/d. For the first time this year, the world's largest exporter, Saudi Arabia, reclaimed the top spot from Angola, with exports 52.9% higher than a...

Norway--Italy's Eni is increasing its already substantial exposure to the deepwater by boosting its shareholding in two exploration blocks through separate deals with France's Total and Exxon Mobil.(COUNTRIES)
October 2, 2006... NORWAY -- Italy's Eni is increasing its already substantial exposure to the deepwater by boosting its shareholding in two exploration blocks through separate deals with France's Total and Exxon Mobil. As on the UK side of the North Sea, the aim...

Oman--the latest chance to develop tight gas reserves has drawn quite a crowd of international companies to a play they might have spurned as too complex or commercially marginal not so long ago.(COUNTRIES)
October 2, 2006... OMAN -- The latest chance to develop tight gas reserves has drawn quite a crowd of international companies to a play they might have spurned as too complex or commercially marginal not so long ago. Bids to develop reserves in the Khazzan and...

Russia--the giant Shtokman gas field in the Barents Sea could be tapped to supply natural gas to Europe via pipeline, dealing a blow to US companies' hopes of landing a role in the massive development's final consortium.(COUNTRIES)
October 2, 2006... RUSSIA -- The giant Shtokman gas field in the Barents Sea could be tapped to supply natural gas to Europe via pipeline, dealing a blow to US companies' hopes of landing a role in the massive development's final consortium. The field initially...

Russia--total oil production continued to grow at a steady clip in August to reach 9.78 million b/d (41.37 million tons).(COUNTRIES)
October 2, 2006... RUSSIA -- Total oil production continued to grow at a steady clip in August to reach 9.78 million b/d (41.37 million tons). Output was up 105,000 b/d from July and up 288,000 b/d, or 3%, from August 2005, according to statistics from the...

South Korea--crude oil imports averaged 2.54 million b/d in August, up 15.1% from a year previously.(COUNTRIES)
October 2, 2006... SOUTH KOREA -- Crude oil imports averaged 2.54 million b/d in August, up 15.1% from a year previously. Supplies from top source Saudi Arabia rose 14.6%, while Iranian volumes jumped 76.3%. Malaysia also showed a big jump in volumes, rising by...

United States--BP has restarted partial production in the eastern half of Alaska's Prudhoe Bay so that it can run further tests on the condition of the pipelines, amid hopes it will be able to get quick approval to restart full production.(COUNTRIES)
October 2, 2006... UNITED STATES -- BP has restarted partial production in the eastern half of Alaska's Prudhoe Bay so that it can run further tests on the condition of the pipelines, amid hopes it will be able to get quick approval to restart full production....

United States--Denmark's Maersk Oil has joined the flock of international companies targeting the US Gulf of Mexico, teaming up with US Hess to explore a hot deepwater play in the Lower Tertiary (PIW Sep.11,p1).(COUNTRIES)
October 2, 2006... UNITED STATES -- Denmark's Maersk Oil has joined the flock of international companies targeting the US Gulf of Mexico, teaming up with US Hess to explore a hot deepwater play in the Lower Tertiary (PIW Sep.11,p1). Maersk signed a farm-in...

Venezuela--production of the boiler fuel Orimulsion is to be scrapped as state Petroleos de Venezuela (PDV) looks at other ways to extract better value from its extra-heavy crude reserves.(COUNTRIES)
October 2, 2006... VENEZUELA -- Production of the boiler fuel Orimulsion is to be scrapped as state Petroleos de Venezuela (PDV) looks at other ways to extract better value from its extra-heavy crude reserves. As crude prices have soared, Caracas can earn more...

Risks rise as capacity investment spirals.(What's New Around the World)
October 2, 2006... There's no serious doubt that big investment is needed to meet future energy demand but a major conundrum facing decision-makers is whether we are seeing the end of cheap oil or merely the peak of the current cycle. Is there a risk of...

Floor play.
October 2, 2006... NEW YORK -- With oil hovering around $60/bbl last week in the wake of the biggest downward correction since 2004, the search is on for a new floor price. Where to look? For the past year or so Opec ministers have been coy about naming numbers...

PIW market indicators.(Marketview)(Statistical table)
October 2, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $55.56 $57.16 $63.18 UK Brent (Dated) 57.85 60.22 65.26...

Baghdad, Kurds are set on collision course.
October 9, 2006... While officials from the Kurdistan Regional Government (KRG) exchange barbs with their counterparts in Baghdad over control and development of the region's oil resources--estimated by the KRG at 45 billion barrels of oil, 25 billion bbl of them...

Gazprom's reach expands into Europe, Atlantic.
October 9, 2006... While Russia's efforts to boost state-run Gazprom's leverage in the Sakhalin-2 and Kovykta projects have grabbed attention recently, a deal in Austria shows the Russian gas giant is continuing to extend its reach deeper into Europe's downstream...

Refining champ Marathon swims upstream.
October 9, 2006... Until Marathon Oil begins delivering on its promise of upstream growth, investors will likely continue viewing the Houston-based integrated oil firm as a refining play. Being branded as a refiner--and widely viewed as the top performer in the...

Global balances loosen as supply outstrips demand.
October 9, 2006... Global oil balances loosened again in September, with demand entering its shoulder period between the summer driving season and the Northern Hemisphere winter, while supply bounced back from August maintenance. Preliminary soundings show supply...

E&P firms adjust to low gas prices.
October 9, 2006... The freefall in North American natural gas prices is forcing producers to make the kind of decision they haven't faced for several years. With benchmark Henry Hub gas prices dipping to barely $4 per million Btu late last month--continuing what...

Jet fuels India's oil product demand.
October 9, 2006... Diwali, the Hindu festival of light, comes around this month, and India's oil sector is hoping the recent fall in oil prices will add some sparkle to its recent dull performance. For, despite a soaring economy, India's petroleum consumption is...

Corporate--ConocoPhillips last week became the first oil major to warn its third-quarter results would suffer from a combination of lower production, shrinking refining margins and special charges related to changes in tax regimes and acquisition costs.(GENERAL)
October 9, 2006... CORPORATE -- ConocoPhillips last week became the first oil major to warn its third-quarter results would suffer from a combination of lower production, shrinking refining margins and special charges related to changes in tax regimes and...

Formula prices--Saudi Arabia adjusted its term prices for October by easing the differentials for the US, while slightly tightening most differentials to Europe.(GENERAL)(Brief article)
October 9, 2006... FORMULA PRICES -- Saudi Arabia adjusted its term prices for October by easing the differentials for the US, while slightly tightening most differentials to Europe. Asian differentials were mixed. The US changes, which effectively give customers...

Industry restructuring--ConocoPhillips and EnCana have struck an innovative deal in which the US major will swap a 50% stake in two of its US refineries for a 50% stake in two of the Canadian independent's upstream oil sands projects.(GENERAL)
October 9, 2006... INDUSTRY RESTRUCTURING -- ConocoPhillips and EnCana have struck an innovative deal in which the US major will swap a 50% stake in two of its US refineries for a 50% stake in two of the Canadian independent's upstream oil sands projects. Russian...

Adolf Lundin.(PEOPLE)
October 9, 2006... Adolf Lundin, the founder of Swedish independent Lundin Petroleum has died at the age of 73.

Canada--Petro-Canada has outlined plans for trebling its oil sands production by 2012 as it develops a big chunk of its estimated 10 billion bbl of oil sands resources, which it reckons are roughly equal to those of supermajors Royal Dutch Shell and Exxon Mobil--and are surpassed only by Calgary-based rival Suncor.(COUNTRIES)
October 9, 2006... CANADA -- Petro-Canada has outlined plans for trebling its oil sands production by 2012 as it develops a big chunk of its estimated 10 billion bbl of oil sands resources, which it reckons are roughly equal to those of supermajors Royal Dutch...

Iran--after months of fruitless negotiations, Japan's Inpex appears to have finally lost the lead role in a $2 billion contract signed in early 2004 to develop the giant onshore Azadegan structure.(COUNTRIES)
October 9, 2006... IRAN -- After months of fruitless negotiations, Japan's Inpex appears to have finally lost the lead role in a $2 billion contract signed in early 2004 to develop the giant onshore Azadegan structure (PIW Sep.11,p1). Inpex has been "removed"...

Japan--crude imports declined to 4.06 million b/d in August, down 4% from the previous year.(COUNTRIES)
October 9, 2006... JAPAN -- Crude imports declined to 4.06 million b/d in August, down 4% from the previous year. The lower figure continues the trend of weaker year-on-year volumes that began in May. Saudi Arabia edged ahead of last year to 1.2 million b/d,...

Kazakhstan--putting a brave face on inconclusive negotiations, Almaty is expecting to sign a number of Caspian offshore production sharing agreements (PSAs) from 2007 onward, even though recent drilling results have been disappointing.(COUNTRIES)
October 9, 2006... KAZAKHSTAN -- Putting a brave face on inconclusive negotiations, Almaty is expecting to sign a number of Caspian offshore production sharing agreements (PSAs) from 2007 onward, even though recent drilling results have been disappointing....

Mexico--August crude production rose by just 19,000 b/d but a 200 MMcf/d jump carried natural gas output to a new record of 5.23 Bcf/d, according to state Pemex.(COUNTRIES)
October 9, 2006... MEXICO -- August crude production rose by just 19,000 b/d but a 200 MMcf/d jump carried natural gas output to a new record of 5.23 Bcf/d, according to state Pemex. Exports rose strongly to 1.78 million b/d with Maya sales to the US leading the...

New Zealand--permission is to be sought to develop the country's first LNG terminal, to be sited at Port Taranaki.(COUNTRIES)
October 9, 2006... NEW ZEALAND -- Permission is to be sought to develop the country's first LNG terminal, to be sited at Port Taranaki. The country is facing a possible gas crunch as the Maui field--source of 80% of its gas for the past two decades--is maturing...

Norway--natural gas exports in the latest 12-month period have achieved a new record for foreign sales from the Norwegian Continental Shelf of 86.6 Bcm (3.06 Tcf).(COUNTRIES)
October 9, 2006... NORWAY -- Natural gas exports in the latest 12-month period have achieved a new record for foreign sales from the Norwegian Continental Shelf of 86.6 Bcm (3.06 Tcf). Subsea pipe system operator Gassco attributed this to the start-up of the...

Russia--facing the onset of winter, Moscow is easing its dependence on the Baltic port of Primorsk to maintain the country's seaborne crude exports, which are scheduled to drop 85,000 b/d this month from 2.788 million b/d (11.791 million metric tons) in September.(COUNTRIES)
October 9, 2006... RUSSIA -- Facing the onset of winter, Moscow is easing its dependence on the Baltic port of Primorsk to maintain the country's seaborne crude exports, which are scheduled to drop 85,000 b/d this month from 2.788 million b/d (11.791 million...

Saudi Arabia--Enirepsa Gas--a consortium of Italy's Eni, Spain's Repsol YPF and state Saudi Aramco--has spudded its first well on its 52,000 sq km block in the southeast.(COUNTRIES)
October 9, 2006... SAUDI ARABIA -- Enirepsa Gas--a consortium of Italy's Eni, Spain's Repsol YPF and state Saudi Aramco--has spudded its first well on its 52,000 sq km block in the southeast. The well was spudded on Sep. 10 in the southern part of Area C, awarded...

United Kingdom--giving new meaning to the term "price crash," spot natural gas prices plunged into negative territory last week, with sellers paying customers to take gas in order to avoid paying balancing penalties.(COUNTRIES)
October 9, 2006... UNITED KINGDOM -- Giving new meaning to the term "price crash," spot natural gas prices plunged into negative territory last week, with sellers paying customers to take gas in order to avoid paying balancing penalties. With storage already full...

Saudi expansion picks up, turns heavy with Manifa.(What's New Around the World)
October 9, 2006... Saudi Aramco is on track to begin construction work on the 900,000 b/d Manifa heavy oil field development in the first quarter of next year, the state oil giant said last week. The project is due for completion in 2011 and comes on top of the...

Bearing the technicals.(Marketview)
October 9, 2006... WASHINGTON -- New York Mercantile Exchange (Nymex) crude futures tumbled early last week, falling by more than $4.23 in two sessions and trading as low as $57.75/bbl on Oct. 4. Brimming inventories for crude and products and a seasonal decline...

ICE reports record month.(Marketview)(IntercontinentalExchange)(Brief article)
October 9, 2006... Electronic energy marketplace IntercontinentalExchange (ICE) saw record activity during September, the ninth consecutive record month for ICE Futures. Average daily volume for the London-based regulated futures subsidiary totaled 447,795...

PIW market indicators.(Marketview)(Statistical table)
October 9, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $55.56 $56.35 $59.53 UK Brent (Dated) 57.36 58.68 ...

Opec fiddles while market languishes.
October 16, 2006... It is hard to tell whether the events of the past two weeks mark the birth pangs of a new Opec or the death throes of the old one. The clumsy handling of a proposed production cut has exposed disunity, confused a jumpy market and left Opec...

Caspian mixes high hopes, hard times.
October 16, 2006... It's been a long time coming, but the opening up of the Caspian Sea off Kazkahstan is finally gathering pace. The discovery of the Kashagan field, the world's largest find for over 30 years, whetted appetites for a piece of the action, and from...

Azadegan Saga hastens Iran's capacity crunch.
October 16, 2006... Iran's oil industry is at a critical fork in the road. As its mature fields decline at a rate of up to 300,000 barrels per day and recently developed new production from offshore fields such as Dorood and Nowruz-Soroosh is now largely on...

Overhang not as scary as it appears.
October 16, 2006... On the face of it there seems no urgent need for Opec to tighten the taps. Global supply and demand balances are about to start tightening as winter oil demand comes into play and fourth-quarter supply is expected to outrun demand by only...

Refining ripples from Japan's falling demand.
October 16, 2006... Even wealthy Japan--the world's third largest oil consumer as well as being Asia's largest economy and oil importer--is exhibiting the long-term strains of high oil prices. Having been flat for years, Japanese domestic product sales (excluding...

US refiners lap up rising oil sands.
October 16, 2006... Canada's growing importance as a supplier of crude oil to the US could hardly have been demonstrated more emphatically than by the recent exchange of assets between ConocoPhillips and EnCana. As a result of the deal, an additional 500,000...

Corporate--Austrian OMV is hoping for an agreement on the Nabucco natural gas pipeline by next year and reckons Russia's Lukoil is now its main competitor in Central and Eastern Europe.(GENERAL)
October 16, 2006... CORPORATE--Austrian OMV is hoping for an agreement on the Nabucco natural gas pipeline by next year and reckons Russia's Lukoil is now its main competitor in Central and Eastern Europe. At a briefing last week, Chairman Wolfgang Ruttenstorfer...

Formula prices--Mexico kept most discounts on its heavy, sour Maya crude for November unchanged--Asia-Pacific was the sole exception--but narrowed the discount for European deliveries of the lighter Isthmus.(GENERAL)
October 16, 2006... FORMULA PRICES--Mexico kept most discounts on its heavy, sour Maya crude for November unchanged--Asia-Pacific was the sole exception--but narrowed the discount for European deliveries of the lighter Isthmus. The premium for extra-light Olmeca...

IEA--the International Energy Agency's latest monthly Oil Market Report takes the position that recent price weakness is not cause for an Opec production cut.(GENERAL)
October 16, 2006... IEA--The International Energy Agency's latest monthly Oil Market Report takes the position that recent price weakness is not cause for an Opec production cut. "With or without rumored Opec output cuts, the short-term price risks seem skewed to...

Industry restructuring--Arcapita, the Bahrain-based fund formerly known as First Islamic Investment Bank, is paying 1.6 billion [pounds sterling] ($3 billion) for Viridian Group, an electricity generator in Ireland and the regulated electricity supplier to Northern Ireland.(GENERAL)
October 16, 2006... INDUSTRY RESTRUCTURING--Arcapita, the Bahrain-based fund formerly known as First Islamic Investment Bank, is paying 1.6 billion [pounds sterling] ($3 billion) for Viridian Group, an electricity generator in Ireland and the regulated electricity...

LNG--US imports dropped sharply in the third quarter, as a relatively cool summer and record levels of natural gas in storage depressed demand, keeping netbacks low.(GENERAL)
October 16, 2006... LNG--US imports dropped sharply in the third quarter, as a relatively cool summer and record levels of natural gas in storage depressed demand, keeping netbacks low. The average quarterly intake of 1.7 Bcf/d (3.2 million tons of LNG) was down...

Correction--due to a production error the table and commentary on the formula price for crude exports from Saudi Arabia that appeared in the printed version of PIW last week was incorrect.(GENERAL)(Correction notice)
October 16, 2006... CORRECTION--Due to a production error the table and commentary on the formula price for crude exports from Saudi Arabia that appeared in the printed version of PIW last week was incorrect. Electronic subscribers received the correct version....

Chad--in an another sign of the shifting balance of power between oil companies and host countries, the government says Chevron and Petronas have agreed to pay more than $280 million in extra taxes.(COUNTRIES)
October 16, 2006... CHAD -- In an another sign of the shifting balance of power between oil companies and host countries, the government says Chevron and Petronas have agreed to pay more than $280 million in extra taxes. The deal settles a dispute that began when...

China--Beijing has started filling the strategic stockpile with a mix of local and imported crude, with some 3 million bbl shipped from Russia since August, according to reports last week.(COUNTRIES)
October 16, 2006... CHINA--Beijing has started filling the strategic stockpile with a mix of local and imported crude, with some 3 million bbl shipped from Russia since August, according to reports last week. The Russian crude has been pumped to the...

Indonesia--Exxon Mobil's contract to operate the giant Natuna project has been declared void by Energy Minister Purnomo Yusgiantoro, adding to growing concerns that rough tactics may spook foreign investors.(COUNTRIES)
October 16, 2006... INDONESIA -- Exxon Mobil's contract to operate the giant Natuna project has been declared void by Energy Minister Purnomo Yusgiantoro, adding to growing concerns that rough tactics may spook foreign investors. Purnomo announced that Exxon's...

Iraq--after earlier signs of recovery, crude exports are falling again, with October crude volumes expected to be lower than September, which in turn was 6% below August levels.(COUNTRIES)
October 16, 2006... IRAQ -- After earlier signs of recovery, crude exports are falling again, with October crude volumes expected to be lower than September, which in turn was 6% below August levels. The latest shipping data shows State Oil Marketing Organization...

Mexico--state oil monopoly Pemex has given an optimistic assessment of its largest enhanced oil recovery project, which is currently underway on the offshore Ku-Maloob-Zaap field.(COUNTRIES)
October 16, 2006... MEXICO -- State oil monopoly Pemex has given an optimistic assessment of its largest enhanced oil recovery project, which is currently underway on the offshore Ku-Maloob-Zaap field. Pemex says output from the field is running at 426,000 b/d and...

Nigeria--India's ONGC is on the final stretch to nab coveted deepwater Oil Prospecting License (OPL) 246, after making a $25 million down payment to cover 25% of the signature bonus.(COUNTRIES)
October 16, 2006... NIGERIA--India's ONGC is on the final stretch to nab coveted deepwater Oil Prospecting License (OPL) 246, after making a $25 million down payment to cover 25% of the signature bonus. However, it faces another hurdle: The original licensee,...

Russia--French Total has taken another mauling, with state-controlled Rosneft claiming victory in a ruling that dismissed Total's claims to a 52% share in the Vankor oil field in East Siberia.(COUNTRIES)
October 16, 2006... RUSSIA -- French Total has taken another mauling, with state-controlled Rosneft claiming victory in a ruling that dismissed Total's claims to a 52% share in the Vankor oil field in East Siberia. The UN Commission on International Trade rejected...

Russia--against the background of official fury over the doubling of costs at the Sakhalin-2 project, Exxon Mobil has indicated that budget overruns on its nearby Sakhalin-1 oil and gas venture will be much smaller than expected.(COUNTRIES)
October 16, 2006... RUSSIA -- Against the background of official fury over the doubling of costs at the Sakhalin-2 project, Exxon Mobil has indicated that budget overruns on its nearby Sakhalin-1 oil and gas venture will be much smaller than expected. Last week...

Venezuela--Caracas could bill private oil firms up to $326 million for taxes that went unpaid last year, according to the Seniat, or tax agency.(COUNTRIES)
October 16, 2006... VENEZUELA -- Caracas could bill private oil firms up to $326 million for taxes that went unpaid last year, according to the Seniat, or tax agency. The claims affect some 22 companies with oil service agreements dating from the 1990s--since...

Russia drops LNG, partners at Shtokman.(What's New Around the World)
October 16, 2006... Russia's Gazprom has ditched plans to develop the giant Shtokman natural gas field in the Barents Sea as a LNG project and will pipe the gas to the European market instead--without the expected participation of Western companies. The...

Falling knives.
October 16, 2006... WASHINGTON -- As Opec struggles to figure out what exactly to do regarding production cuts, market players are focusing on the sloppy fundamentals, which have weakened US benchmark West Texas Intermediate (WTI) to the lowest close of the year....

Nymex, Moscow move to boost urals futures.(Marketview)
October 16, 2006... The New York Mercantile Exchange (Nymex) is to launch a new Russian export blend crude oil (Rebco) futures contract on the CME Globex electronic trading platform on Oct. 22. The contract will feature physical delivery of Rebco on an f.o.b basis...

PIW market indicators.(Marketview)(Statistical table)
October 16, 2006... PIW Market Indicators Last 2 Weeks 4 Weeks Spot Crude Week Ago Ago Opec Basket $55.03 $55.33 $57.16 UK Brent (Dated) 58.34 57.42 60.22...

Opec signals new $55/bbl price floor.
October 23, 2006... Although Opec ministers were meeting in Qatar last week about production levels, the most important outcome of the meeting is what this agreement says about prices. With the unambiguous leadership of Saudi Arabia, Opec is effectively endorsing...

Lukoil targets big league of supermajors.
October 23, 2006... Armed with an ambitious new strategy for accelerated growth, Russia's Lukoil aims to become a player in the major leagues of the global oil industry by 2016. Under a 10-year plan involving new investment of up to $112 billion, the company has...

Vietnam tilts toward gas as oil pushes on.(plan to build petroleum industry)
October 23, 2006... After only 20 years as a crude producer, Vietnam is joining its neighbors in shifting its upstream priorities to natural gas. Faced with the demands of a thriving economy, the government aims to raise gas production to 1 billion cubic feet by...

Azeri crude ramps up fast in Med.
October 23, 2006... European refiners are bracing themselves for a flood of Azeri crude oil in the coming months as the 1,768 kilometer Baku-Tbilisi-Ceyhan (BTC) pipeline, which runs from the BP-operated Azeri-Chirag-Guneshli (ACG) crude complex to the Turkish...

Oil bribery pays ... and doesn't pay.
October 23, 2006... When a report about clamping down on oil industry corruption singles out Nigeria and Azerbaijan for praise, you know this business sector has a long way to go before shaking off its--not entirely undeserved--reputation for greed and dishonesty....

LNG for USA: what works; what doesn't.
October 23, 2006... The map of North American liquefied natural gas (LNG) terminals is developing quite differently than expected only a few years ago. Not only will many fewer projects be built than initially proposed, those built will be concentrated along the...

China sees Venezuela's softer side.
October 23, 2006... Even Venezuela's tough brand of resource nationalism has a softer side, at least for favored partners such as China National Petroleum Corp. (CNPC). While no foreign operator was spared the blows when Venezuela hit international oil companies...

Corporate--Deutsche Bank's Russian subsidiary has shown interest in buying a controlling stake in bankrupt oil firm Yukos in what is seen as a front for state-controlled natural gas giant Gazprom.(GENERAL)
October 23, 2006... CORPORATE -- Deutsche Bank's Russian subsidiary has shown interest in buying a controlling stake in bankrupt oil firm Yukos in what is seen as a front for state-controlled natural gas giant Gazprom. Yukos' liquidation manager, Eduard Rebgun,...

Corporate--US oil and gas producer Energy Partners has dropped its plans to acquire Gulf of Mexico producer Stone Energy (PIW Sep.25,p8).(GENERAL)
October 23, 2006... CORPORATE -- US oil and gas producer Energy Partners has dropped its plans to acquire Gulf of Mexico producer Stone Energy (PIW Sep.25,p8). Instead, Energy Partners has put itself up for sale. Energy Partners' decision has been welcomed by...

Industry restructuring--Spain's Repsol YPF is believed to be planning a sale of up to 30% of its Argentine subsidiary YPF.(divestments)
October 23, 2006... INDUSTRY RESTRUCTURING -- Spain's Repsol YPF is believed to be planning a sale of up to 30% of its Argentine subsidiary YPF. Repsol's valuation of YPF is reportedly $15 billion-$ 19 billion, plus some $2.5 billion-$3.7 billion from the...

Joint ventures--Russia's Rosneft and China National Petroleum Corp. (CNPC) have set up Vostok Energy, a joint venture to explore and develop resources in Russia.(GENERAL)
October 23, 2006... JOINT VENTURES -- Russia's Rosneft and China National Petroleum Corp. (CNPC) have set up Vostok Energy, a joint venture to explore and develop resources in Russia. Rosneft will hold a 51% stake in the company, with the power to appoint three...