19 May 2009 EUROPEWeek 20 Issue 02 O News IL Analysis & GAS M Intelligence ONITORPublished by NewsBase COMMENTARY 2 NEWS THIS WEEK… UK must ramp up gas storage capacity 2 Comic opera: Nabucco project threatens to descendTrouble in store into farce 3 MARKET COMMENTARY 5 The recent launch of the South Hook LNG terminal Oil prices hang on but political risks lurk was good news for the UK natural gas sector. But in background 5 PIPELINES & TRANSPORT 6 concerns remain about gas storage in the country, Russian officials deride EU’s Southern with low capacity threatening to undermine energy Corridor plan 6 security. Serbia enters South Stream map 7 to invest in new gas pipelines 7 The UK s total gas storage capacity is only 15 CNOOC and BG sign long-term LNG days, compared to 100 days for France and 120 supply deal 8 days for Germany. (Page 2) INVESTMENT 8 Sumitomo acquires stakes in six North A lack of storage capacity makes the UK Sea fields 8 increasingly dependent on potentially risky Iraq to award Nassiriya oilfield contract in suppliers like Russia for gas imports. (Page 2) June 9 POLICY 9 Securing financing for storage facilities is proving Arctic oil and gas reserves cause troublesome in the current economic climate. (Page 2) diplomatic stir 9 Netherlands aims to strengthen economic ties with Qatar 10 Comic opera Norway drops investigation into StatoilHydro’s Libyan affairs 11 The Nabucco project threatens to descend into PROJECTS & COMPANIES 11 farce, with Ankara denying claims made by Shell Ireland rejects alternative site for Brussels that it has dropped a condition allowing Corrib refinery 11 StatoilHydrofor it to buy gas from the pipeline. to drill Morvin development wells 12 New North Sea discovery announced by The Turkish government denied it had dropped its StatoilHydro 13 demand to be sold 15% of Nabucco s throughput TPAO breaks off talks with Chevron 13 at a discount rate. (Page 3) NEWS IN BRIEF 14 For analysis and commentary on these and other stories, plus the latest oil and gas developments, see inside… Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 2 COMMENTARY UK must ramp up gas storage capacity The UK s natural gas storage capacity is significantly lower than that of other European countries and poses a risk to the country s energy security By Nigel Hawkins The UK s gas storage capacity is 15 days, compared to 100 days for France and 120 days for Germany A lack of storage capacity makes the UK increasingly dependent on Russia for gas supplies The depletion of North Sea fields makes enhanced storage capacity and diversified supplies imperative The Queen opened the South Hook grow, there will be increasing reliance on especially in today s difficult credit Liquefied Natural Gas (LNG) terminal at Russian gas supplies with all their markets. Milford Haven in Wales last week. It is inherent risks. Centrica itself is planning to develop the largest and most advanced LNG Consequently, it is widely recognised the Baird gas field in the southern part of terminal in Europe. By the end of 2009 it that more gas storage capacity needs to the North Sea. It owns a 70% stake in should have five storage tanks. be added to the existing Centrica-owned this field and has recently begun early-This ambitious scheme has been Rough storage site, which currently stage engineering studies. realised through a joint venture, in which accounts for almost 80% of the UK s In terms of size, completion of the Qatar Petroleum, ExxonMobil and Total total capacity. Centrica acquired this Baird project would make a major have all been involved. depleted gas-field from Dynergy in 2002 difference to the UK s gas storage Once it is fully up and running, at least much of its storage capacity is now capacity. two LNG ships should be arriving at the auctioned off. Similar comments apply to another facility each week, thereby providing a There is also the much smaller North Sea gas storage project in the substantial boost to the UK s gas Hornsea salt cavern facility in operation, Hewett field. Leading Italian oil supplies. which is owned by Scottish and Southern company Eni paid Tullow Oil GBP210 Although this development is Energy (SSE). million (US$ million) for a 52% undoubtedly good news, the UK s gas As last week s interim management stake in this field. supply situation does not inspire total statement from Centrica confirmed, gas Undoubtedly, developing a storage confidence, especially since LNG ships storage demand remains strong, although facility in this gas field will be can easily be re-routed to lucrative its gas storage profitability is expected to technically very complex and expensive, markets in either the Far East or in the be lower this year. perhaps costing up to GBP1 billion US. (US$ billion). Risk In the case of both the Baird and Low storage capacity The concern for future UK energy Hewett projects, finance is likely to be In reality, the UK s gas storage capacity supplies lies in the real risk that very few forthcoming, assuming that the many remains very low, certainly when gas storage projects will actually technical issues can be resolved. After compared with the gas storage facilities materialise, partly because of prolonged all, both Centrica and Eni have ready in both France and Germany: the figures planning enquiries, but also owing to the access to the capital markets. there are 100 and 120 days respectively. difficulty in attracting sufficient finance UK capacity is a meagre 15 days. Financing issues The risks run by this low level of gas FoHowever, for many onshore gas storage r many onshore gas storage capacity have been heightened by projects, raising the requisite finance is the sharp downturn in gas production storage projects, raising expected to be a far more challenging from the North Sea since 2006 as well as task. Furthermore, the issue of planning the requisite finance is lower production from the Morecambe will certainly delay most projects, if not Bay gas fields, which have been the expected to be a actually prevent them going ahead at UK s swing producer for many years. all. Wchallenging task hilst Norwegian imports continue to Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 3 COMMENTARY The Portland salt cavern project has planning process as it seeks to get the go-raising the necessary finance and, been discussed for many years. It ahead for a GBP300 million (US$ especially in the case of onshore storage involves the storage of gas in deep million) gas storage project at Preessall facilities, also securing planning underground caverns in Dorset. in Lancashire. approval. Following its demerger from Egdon Uncertainties also hang over the Resources, Portland Gas is trying to drive Esmond project, from which Star Energy, Centrica s Rough storage facility the project forward. Irrespective of now owned by Malaysian-based above a gas reservoir planning issues, raising the finance in Petronas, has confirmed its today s very difficult credit markets will withdrawal. not be easy. Consequently, the remaining Finance is also being sought for the partner, EnCore Oil, will have to Gateway project, which is planning to decide how to proceed. Given a construct an offshore gas storage facility projected cost of around GBP1 at 750 metres below the seabed surface, billion (US$ billion), EnCore the location is around 15 miles (24 km) Oil may need to sign up another to the south west of Barrow-in-Furness. partner if this project which A projected GBP600 million (US$ could link into the Interconnector million) cost has been indicated, with to Bacton is to become a reality. completion currently planned for 2014. Whilst these and some other Also in the North West of England, gas storage projects may be Canatxx has been battling with the sound, the real difficulty will be Comic opera: Nabucco project threatens to descend into farce The Nabucco project threatens to descend into farce, with Turkey denying claims made by Brussels that it has dropped a condition allowing for it to buy gas from the pipeline By Tim Ferguson Ankara denied claims it had dropped its demand to be sold 15% of Nabucco s throughput at a discount Turkey is potentially facing a gas supply crunch The Nabucco project could face its own supply problems, with questions raised about Shah Deniz deliveries The European bureaucrats who in 2002 such obstacles looked likely to be Surprise chose to name their fledgling plan to overcome and an announcement by What did come as a surprise was last construct a natural gas pipeline to outgoing Turkish Energy Minister Hilmi week s revelation by the UK s Guardian connect Caspian gas fields with Guler two months ago that he expected newspaper that Turkey had arbitrarily European markets after Giuseppe Verdi s the agreements to be ready for signing in dropped its demands to be sold 15% of opera Nabucco, probably did not intend June came as little surprise. Under the 31 billion cubic metres per year of any direct reference to the story of war, Guler s guidance, Turkey still insisted gas Nabucco will carry at a discount. The exile, betrayal and sibling rivalry. that it be given the right to buy up to paper went on to say that with all The Brussels buffs would also 15% of the gas transported through the obstacles to the final agreements certainly not have expected the story of pipeline if it was available. But few removed, these would be ready to be their project to take on the form of the analysts viewed the condition as a major signed in Ankara on June 25. But the comic opera it increasingly appears to obstacle, given that Turkey s own gas report was quickly and comprehensively resemble. There have been a number of needs are growing rapidly and the line is denied by Turkish officials. hiccups in negotiations over the final expected to have significant excess inter-governmental agreements for the capacity at least during its first phase of pipeline over the past year. However, operation. Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 4 COMMENTARY The Guardian story included quotes correctly, it begs the question why the line s operation, a period which expired from European Commission Energy paper s version of events should differ so last July. Commissioner Andris Piebalgs, the markedly from Ankara s position. The With one of Turkey s three import Brussels official charged with ensuring implication is that either one side or the deals with Russia scheduled to end in that the Nabucco project is finally other has been less than forthright, or 2011, the failure to reach an agreement realised. But Turkish officials swiftly there has been a misunderstanding of with Baku would leave the country denied that final terms had been agreed unusually large proportions. facing a serious supply shortage. and also said that no date had been set for In either case, what remains Ankara also faces perennial problems the signing of the agreements. Ankara abundantly clear is that the EU still with gas supplies from Iran. Turkey has a claimed the documents would not be appears unaware of or disinterested in deal in place for the delivery of up to 10 signed before July at the very earliest. Turkey s own gas supply needs, despite bcm per year of Iranian gas. But supply More confusing still, the Turkish the fact the country remains an EU has been arbitrarily cut during three of government denied the Guardian s candidate state and that nearly half of the the past four winters. It is therefore little assertions that it wants the right to buy planned Nabucco line will be built on its wonder that Ankara would like the right 15% of the gas transported via the territory. to buy gas from Nabucco if it is pipeline at a discount. More worryingly still, EU officials available. Speaking to Europe Oil & Gas apparently fail to appreciate that the gas The ongoing problems would be Monitor, Turkey s new energy minister, with which they plan to begin filling farcical if the Nabucco line were a simple Taner Yildiz, confirmed that the Nabucco from the second phase of standalone project. But it is not, and the country s position had been seriously Azerbaijan s Shah Deniz field is still rival, Russia-backed, South Stream misrepresented. He explained that the not guaranteed. Baku responded to recent project is apparently now likely to be up option to buy up to 15% of the gas was news that Turkey would normalise and running by 2015 with a capacity of simply a right that would only be relations with Armenia with threats to up to 63 bcm per year, more than double applicable if there was excess gas that sell Shah Deniz II gas to Russia. that of Nabucco. (See: Russia puts Serbia European buyers did not want. on South Stream map, Page 7) Yildiz also said the pricing issue had Further complications A prospect that begs the question as to been equally muddied. He stated that Turkey s position in negotiations with whether the Nabucco pipeline might have Turkey s position was exactly in line Baku are further complicated by its need been better named after a tragic opera, with that of the European Commission to finalise a pricing agreement on its rather than one ending, as Verdi s does, and the Nabucco consortium, namely that existing gas purchase deal for bcm in the salvation of the main protagonists gas prices should be purely cost-based, per year, which allowed for gas to be and the vanquishing of evil and and reflect the cost of gas at source plus sold at a discount for the first year of the misunderstanding. the cost of transporting it through the pipeline. As such, he explained, any gas bought by Turkey should be at the price fixed by the European gas-pricing hub of Baumgarten, less the cost of transporting the gas from Turkey to Austria a cost which Turkey could hardly be expected to pay for gas which had never left its borders. Crossed lines Assuming that the Guardian has managed to quote commissioner Piebalgs and the other European Union officials cited Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 5 MARKET COMMENTARY Oil prices hang on but political risks lurk in background Oil s recent upward momentum has been bolstered by a steady climb in global equity markets. But questions have been raised as to whether such momentum is sustainable By David Flanagan Week 20 2009 has seen Brent crude oil companies, insurance providers and may be reflected in the strength of oil prices ebb and flow steadily. After the retailers. But these companies do not use prices. This could possibly become a key price rally in week 19, which was really much oil, so their improved fortunes influencing factor in the coming days and the culmination of a steady rise in the oil mean little for underlying energy weeks. During week 19, Brent crude price over the last month or so, the demand. prices sagged slightly towards the close market has been somewhat fickle about Oil is also a global market, while the of trading on May 15 as a result of profit-which path to follow. UK, French and German stock markets taking and adverse comments by OPEC Much of the momentum in oil prices are not, and can ignore problems such as on demand. during April and May has been provided diminishing demand in the Far East. So Very weak growth data from Spain and by a steady climb in the equity markets the market might recognise these facts Germany also reminded the market that of the US and Europe, rather than by any soon, and the link could disintegrate. real problems in the economy remain fundamental change in market sentiment present, and recession conditions show regarding underlying demand. Assuming Scaling down few signs of lifting. this climb continues, how much steam Another feature which has, perhaps, held But, after a big drop on May 15, crude the equity market has left in it, moving back the crude market in recent months moved substantially higher again on May into the usually quiet summer months in has been a possible tendency to scale 18. Brent crude futures for July closed at stock markets, is yet to become clear. But down market presence by some traders. US$ per barrel, posting a gain of has the steam run out? And is the link reported first quarter 2009 more than US$ on the day. June between the two sustainable? trading results recently. The group Gasoil was also up at US$ per Other critical questions are: Can the disclosed that its trading volumes in the tonne, but by more modest proportions stock market rally continue to fire up oil oil market through the subsidiary than crude. UK NBP gas prices remained prices? And will the US dollar weaken Energy Trading fell from 28 million stuck around the (US$) per further? tonnes in the first quarter of 2008 to 18 therm level. million tonnes in the first quarter of Oversold 2009. This compares with 100 million Political and economic forces The current link between equity markets tonnes of carbon allowances in Q1 2009, Balancing the continuing effects of the and the oil market may reflect the idea up from 29 million tonnes in Q1 2008. recession, political risks continue to prey that the two have one overriding feature The fall-off in oil trading activity at heavily on the market s mind. Nigeria, a in common, namely that both have been is obvious, and while oil is major exporter, often worries traders heavily oversold during the months since arguably not a core activity for the group, with its somewhat unpredictable the feverish aftermath of last autumn s if this is replicated elsewhere, there has situation. Whether attacks on Nigerian banking crisis. But even if they do share been far less interest in oil among some pipelines are a result of theft or terrorism, this feature, a link between equities and quarters of the market in recent weeks because they threaten the stability of oil oil looks unsustainable. than in competing markets, such as supply, they push crude in one direction. Oil s fortunes are more closely related carbon. Nigeria suffered again from the to fundamental economic conditions, Absence of some traders in the phenomenon over the weekend, with an most importantly industrial demand, and volumes that they used to trade may be attack on a gas pipeline helping to push there is little in the way of evidence that holding prices back. Foreign exchange prices higher. This phenomenon, if it this is improving, particularly in Europe. market conditions are also having an continues, has the strength to lift prices By contrast, equity markets may move effect. The US dollar has weakened rapidly in coming days, and the market higher to reflect better times for their steadily against the Euro and against will be watching developments here component sectors, namely banks and IT Sterling over the last month, and this carefully. Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 6 MARKET COMMENTARY Crude and Products market Projections for week 21 For the crude market, the equity system has been its real hope recently. However, this could hit the rocks quite soon. But the overall market perception appears to be that prices are on an upward trend. If the problems and instability affecting the Nigerian oil sector persist, to the extent that oil companies recall staff to more stable locations, this will certainly add to the upward pressure on Brent crude. Continued US dollar weakness will also be seen in higher oil prices. On balance, the combination of features suggest the underlying pressure on crude prices will continue to rise. On the products market, as the US driving season sees drivers take to the road for vacations and other seasonal travel, the market will be looking at petrol stocks (which are likely to be high) to assess the impact of the increased demand. Growth of prices could continue, although the pace of gains is likely to continue to be slower than crude. Price projection for July Brent crude futures for week 21: US$ – US$. Price Projection for front-month Gasoil futures for week 21: US$ – US$. PIPELINES & TRANSPORT Russian officials deride EU’s Southern Corridor plan Less than one week after the European nothing but a political undertaking. pipeline project, seen as a rival to EU-Union revealed an energy diversification Nesterenko pointed to what he called backed projects such as the Nabucco and plan, known as the Southern Corridor-the lack of commercial prospects for White Stream pipelines. Shmatko said New Silk Route, at a May 8 summit in the Southern Corridor. He explained this the economic justification for Nabucco Prague, top Russian officials questioned by emphasising the fact that was still not obvious, adding the the logic and goals of the new strategy. representatives of Turkmenistan, final price of gas to be delivered via The EU initiative calls for the Kazakhstan and Uzbekistan did not take this pipeline would be difficult to construction of new natural gas part in the signing of the [Prague] estimate. pipelines and for boosting oil export summit s final joint declaration. By contrast, South Stream will enable routes from the Caspian region to On May 18, Russian Energy Minister Russia s Gazprom to sell gas according Europe. However, it does not mention Sergei Shmatko spoke about the to the conditions comparable to current any Russian role. Russian-backed South Stream gas shipments of gas to Europe, Shmatko Russian Foreign Ministry spokesman said. Andrei Nesterenko was one of the first Prime Minister Vladimir Putin also Kremlin officials to speak about the commented on Nabucco. On May 15, Southern Corridor. He said at a May 14 the Moscow Times quoted him as press conference that plans for saying: [Before] putting billions of establishing a so-called southern dollars in a pipeline, burying the money energy corridor to Europe were in the ground, they [the Nabucco counterproductive. Nesterenko said any supporters] need to understand where project that does not take into account the gas will come from for this the interests of the leading energy pipeline. supplier [to] Europe Russia is Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 7 PIPELINES & TRANSPORT Serbia enters South Stream map Russia has signed a deal with Serbia to The pipeline will be finished by the end Greece and Bulgaria. Hungary inked a include the Balkan country in its gas of 2015, he said. deal in March, while Austria and link to Europe. (See map page 4) Bajatovic also put the cost of building Slovenia are still in talks with Russia on The agreement, signed on May 15, the Serbian section of the pipeline at 700 joining the project. provides for Moscow and Belgrade to million euros (US$ million). He South Stream will follow a route from set up a 51:49 joint venture that will added, though, that the full financial Russia across the Black Sea to Bulgaria build and operate the South Stream details of the deal would be revealed and then split into a southern branch natural gas pipeline in Serbia. According after the St. Petersburg International leading to Greece and southern Italy and to Dusan Bajatovic, the general manager Economic Forum on June 4-6. a northern branch leading to Serbia, of Serbia s state-owned gas company South Stream is planned for Hungary, Austria and northern Italy. Srbijagas, the joint venture will be commissioning by December 31, 2015, Plans for construction of the Serbian registered in Switzerland within the next but the pipeline could become section of the pipeline were part of an 15 days. operational even sooner, according to oil and gas pact that Moscow and Serbia s stretch of South Stream will Gazprom s CEO, Alexei Miller, who Belgrade signed in January 2008. be up to 450 km long, Bajatovic said signed the agreement on Russia s behalf. Gazprom s oil arm, Gazprom Neft, has after signing the agreement on behalf of The deal was inked in Russia s Black already acquired a 51% stake in Serbia s Serbia. He noted that the link would be Sea resort of Sochi as part of a state-owned oil company Naftna able to carry more than 20 billion cubic ceremony during which the Russian Industrija Srbije (NIS) for 400 million metres per year of gas, up from the energy giant and Italy s Eni agreed to euros (US$ million) under the originally planned 10 bcm per year. double the pipeline s planned capacity deal. The Russian company is also due A feasibility study for extending to 63 bcm per year. to help Serbia complete the construction South Stream into Serbia will be On the same day, Russia signed South of an underground gas storage completed by the end of 2009, he noted. Stream joint venture agreements with facility. to invest in new gas pipelines Gastransport has announced it results by taking into account network investments we are making an important will invest 400 million euros (US$542 efficiency, enhancement of the national contribution to security of supply for million) in new and improved gas and European pipeline system and hence Germany and Europe, said pipeline networks in Germany and security of supply. Gastransport s CEO, Stephan neighbouring countries between now The majority of the work will aim to Kamphues. But he also criticised the and 2012. The company said the eliminate a perceived north-south Federal Network Agency, the German decision had been made based on the bottleneck by increasing the capacity for regulatory office for privatised results of its Open Season procedure, a transporting large volumes of gas from industries including gas, saying its Gas market analysis of network expansion north to south Germany, and via Austria Network Fees Ordinance made it requirements that was launched in 2008. to Southeast Europe. The need for difficult for the company to guarantee Germany s leading gas transmission improving this route became evident sufficient return on its equity. It is all company, Gastransport, is a earlier this year when supplies to the harder to understand why, even for subsidiary of Ruhrgas, the Eastern Europe were severely disrupted major construction projects, the Federal country s largest natural gas importer. by the dispute between Russia and the Network Agency does not allow The money the company plans to invest Ukraine. To address this issue, a network operators to recoup the will be used to expand transmission pipeline will be extended from Sannerz specified cost of capital, he said. capacity in what it sees as problem areas in the German state of Hesse, to Rimpar Nevertheless, Gastransport s in its network. in Lower Franconia, and the MEGAL managing director, J rg Bergmann, The Open Season procedure was set pipeline system (which currently added: For the sake of our customers up to determine customer needs in a connects the Franco-German border and security of supply for Germany and non-discriminatory way, and to organise with the German-Czech and German-Europe, we are now starting these major the expansion programme as efficiently Austrian borders) will be extended into construction projects, despite the as possible. The company prioritised Austria. With the envisaged remaining regulatory uncertainties. Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 8 PIPELINES & TRANSPORT CNOOC and BG sign long-term LNG supply deal China National Offshore Oil Corp. ambition to secure reserves overseas at the project. The units will have a (CNOOC) and the UK s BG Group the bottom of the price cycle. combined capacity of around million signed a 20-year liquefied natural gas CNOOC will also take a 5% stake in tonnes per year of LNG, with shipments (LNG) supply deal on May 12, BG s interests in certain reserves and scheduled to begin from 2014. according to company statements. resources in the Walloons Fairway of Moreover, the two companies are to The companies revealed on May 13 the Surat Basin and 10% in one of the team up to build two LNG tankers in that under the terms of the deal, project s two liquefaction trains, which China that will be jointly owned. CNOOC would buy million tonnes form the initial development phase of BG said the agreement still required per year of LNG from the UK government and regulatory approval and company s planned US$6 billion the two companies hoped to complete Queensland Curtis LNG (QCLNG) negotiations in 2010. project in Australia. It is BG s first sales QCLNG is a coal-seam gas-to-LNG contract for gas produced by the project project that spans 400 km from gas and, while no price tag was revealed, fields in the Surat Basin west of analysts have pointed to a figure of Brisbane to Gladstone and the nearby US$600 million per year a total of Curtis Island. The project is being US$12 billion over two decades. developed by Queensland Gas Co., Gordon Kwan, an energy analyst at which BG bought in December 2008 for Mirae Asset Securities, told Bloomberg: US$ billion. A final investment The move by CNOOC reflects its decision (FID) is slated for next year. INVESTMENT Sumitomo acquires stakes in six North Sea fields A consortium of Japan s Sumitomo Dutch North Sea and Gabon. terms of reserves and the BP-operated Corp. and two European companies has The consortium of Sumitomo, Dyas Wytch Farm field, the Japanese bought 100% of Dutch oil and gas UK and ONH purchased all ONE shares company said. developer Oranje-Nassau Energie from Oranje-Nassau Groep (ONG), The acquisition of interests in the six (ONE) for 647 million euros (US$860 ONE s parent firm, which in turn is fields has given Sumitomo an estimated million). wholly-owned by Wendel, France s additional 7,000 barrels per day of oil Although the major Japanese trading largest investment company. equivalent in the North Sea. Sumitomo house did not reveal how much it had Dyas UK is a subsidiary of Dutch added that it expected long-term stable spent on the deal, Japanese media company SHV Holdings, while ONH is production from the fields until 2030. reports put Sumitomo s investment at a Dutch private investment company The Japanese firm said in a statement: about 30 billion yen (US$315 million). controlled by Marcel van Poecke. The UK North Sea is one of the core Sumitomo acquired all but one of Among the six producing and areas in our oil and gas exploration and ONE s interests in seven UK North Sea development fields in which Sumitomo production business We will continue fields. ONE s interest in the Buzzard acquired interests are the Total-operated to pursue the acquisition of quality field was excluded. The Dutch firm Elgin/Franklin field the third largest assets in the UK North Sea. owns assets in the UK North Sea, the oil and gas field in the UK North Sea in Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 9 INVESTMENT Iraq to award Nassiriya oilfield contract in June Iraq expects to award a contract for the The Nassiriya field s crude oil international oil companies. The country development of the giant Nassiriya reserves are estimated at around 4 aims to boost crude oil output to 6 oilfield to one of three competing billion barrels. If developed, the field million bpd in five years, up from the international companies in June, said the will produce an estimated 300,000 current level of million bpd. country s oil minister, Hussein al-barrels per day of oil. The Iraqi Oil Ministry wants to Shahristani. We hope that the contract [will] be develop the Nassiriya oilfield as quickly The award of the contract for the signed next month, Iraqi Oil Minister as possible and therefore is offering the Nassiriya oilfield, located in the Shahristani said in an interview with field outside of the bidding process southern Iraqi province of Dhi Qar, was Dow Jones Newswires in the Jordanian under an engineering, procurement and expected to be made last month. The capital of Amman, where he was construction (EPC) contract, Shahristani three companies are Japan s Nippon Oil participating in the World Economic said in the interview. Corp., Italy s Eni and Spain s Repsol Forum on the Middle East. Iraq has the world s third largest oil YPF. We have accepted the technical bids reserves, after Saudi Arabia and Iran. Nippon Oil, Japan s largest oil refiner they submitted and we have opened the Despite its huge potential, however, the and wholesaler, has formed a commercial bids, Shahristani said. The country is relatively unexplored after consortium with two other Japanese three competing international companies years of sanctions and war. firms Inpex Corp. and JGC Corp. in will be invited by the Iraqi Oil Ministry Tokyo wants to acquire a significant a bid to win the Nassiriya oilfield for negotiations in order to discuss the share of Iraq s massive oil reserves. contract. Inpex is the nation s biggest oil model contract, he said. Japan imports almost all of its oil and is and gas developer with the Japanese Iraq has announced two oil bid rounds the world s third biggest oil consumer, government s strong backing, while in which Baghdad is offering 19 oil and after the US and China. JGC is Japan s largest engineering firm. gas fields for development to POLICY Arctic oil and gas reserves cause diplomatic stir Russia has warned of the potential for a security, the document read. Lawrence Cannon said that the future military conflict over the In a competition for resources it country s government would work ownership of sections of the Arctic cannot be ruled out that military force peacefully with its neighbours in the around its border regions. The could be used to resolve emerging Arctic region, but that it would not comments were made within the problems that would destroy the balance hesitate to defend Canadian Arctic country s new national security strategy, of forces near the borders of Russia and sovereignty. released last week, which identifies her allies. Canada has recently taken steps to potential security threats up to 2020. The US, Norway, Canada and bolster its military and marine The presence and potential escalation Denmark have previously challenged infrastructure. Speaking while on a of armed conflicts near Russia s national Russia s claim to a section of the Arctic diplomatic tour in Asia, Cannon said borders, pending border agreements Shelf, which is thought to contain that these measures will ensure that the between Russia and several billions of tonnes of oil and gas. Canadian Forces are prepared to address neighbouring nations, are the major In response to the comments, future challenges and respond to any threats to Russia s interests and border Canadian Foreign Affairs Minister emergency that unfolds. Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 10 POLICY This is the latest in a series of recent public exchanges regarding the disputed territory. In 2007 Russia fixed a titanium flag at the North Pole seabed in order to stake a specific claim to the Lomonosov Ridge which covers approximately million square km (465,000 square miles) of the Arctic, prompting international criticism. Danish scientists hope to prove that the ridge is an extension of Greenland, while Canada asserts that it is an extension of its own continental shelf. Last year, Russian Prime Minister Vladimir Putin accused the West of making inappropriate advances regarding Russia s energy resources: Many conflicts, foreign policy actions and diplomatic moves smell of oil and gas. Behind all that there often is a desire to enforce an unfair competition and ensure access to our resources. Netherlands aims to strengthen economic ties with Qatar Dutch Foreign Minister Maxime production of around 80 billion cubic construction of new infrastructure, said Verhagen wants the Netherlands to metres, accounting for around 15% of Verhagen. strengthen its trade links with Qatar. all the gas consumed within the As part of her trip, the minister visited Speaking following a two-day visit to European Union. More than half of the the new Ras Laffan industrial city, the gas-rich Gulf state, during which she remaining natural gas reserves in the EU where Shell is currently involved with met with Qatari Crown Prince Tamim are located in the country and under the the construction of Pearl GTL, the and Premier Hamad, the minister said Dutch sector of the North Sea. world s largest gas to liquids (GTL) the two countries were keen to enhance However, the country is aware of this plant. mutual co-operation in the spheres of being a finite resource, and it is keen to Earlier the same week, she also visited energy and economics. secure an alternative supplier for the Saudi Arabia for two days, during which Although no specific details were future. A deal with Qatar would go some time she had talks with the Saudi Oil revealed, Verhagen reiterated the way to achieving this, and would reduce Minister Ali al-Naimi Netherlands stated ambition to become dependence on potentially unreliable gas Meanwhile, Amsterdam has been a gateway for gas supplies to Northwest supplies from Russia. announced as the host city for Gastech Europe. The country believes its Qatar has the world s third biggest gas 2011, the 25th edition of the gas infrastructure makes it an attractive hub reserves after Russia and Iran, and industry s largest international for the importing, storage and invests a large percentage of the conference and expo. The Dutch capital distribution of gas throughout the revenues it receives from gas exports also hosted the first Gastech in 1974. region. back into developing its economy. As This year s event opens in Abu Dhabi The Netherlands is itself a major gas-such, this offers opportunities for on May 25. producing country, with an annual Dutch companies, for example in [the] Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 11 POLICY Norway drops investigation into StatoilHydro’s Libyan affairs The Norwegian investigation into grounds to proceed with investigations January 2000. These included a fixed fee allegations of misdeeds concerning the based on criminal law exist, and a performance bonus of US$ activities of Hydro Oil & Energy has StatoilHydro quoted Okokrim as saying. million, should Gammudi secure the come to an end, according to According to a statement from rights to Blocks A and B in Libya. StatoilHydro. Norway s Hydro, which is now focused Gammudi did so, but Hydro became Norway s National Authority for solely on aluminium: Okokrim was concerned over the manner in which this Investigation and Prosecution of presented with the results of an had been accomplished and so opted to Economic and Environmental Crime investigation carried out on behalf of try to sell Saga s Libyan assets. Between (Okokrim) began investigating the Hydro s board of directors in October 2000 and August 2001, Hydro paid company s activities in Libya in October 2008. The company said two law firms Gammudi US$ million. 2007, shortly after Hydro and Statoil Wiersholm, Mellbye & Bech and StatoilHydro s chairman, Svein merged. Shearman & Sterling had carried out Rennemo, said that co-operation with According to StatoilHydro s statement the investigation. Okokrim was important to the state-on May 15, Okokrim told the company According to the report compiled by owned company. Okokrim has had that there would be no investigation into the law companies, the deeds in question access to all documents desired from the the international work by Hydro. revolved around a series of payments external investigation. We look forward Any agreements or payments that made to Abdulrazzag Khalifa Gammudi to closing this matter, enabling us to might represent legal offences would in and Vexol, a company controlled by concentrate fully on the company s any case be statute-barred according to Gammudi. industrial and commercial tasks, he criminal law and regarding other Gammudi had a number of said. agreements or payments addressed by agreements in place with Saga the investigation s reports no reasonable Petroleum, which Hydro acquired in PROJECTS & COMPANIES Shell Ireland rejects alternative site for Corrib refinery Shell has released an engineering review the operation of the pipeline or route for the pipeline, which will rejecting an alternative landfall site for terminal, adding that it would be transport gas from the field off the coast its controversial Corrib gas project off technically difficult. of nearby Belmullet. the coast of County Mayo, Ireland. The report was released on the eve of The Corrib field, estimated to contain Glinsk and neighbouring an oral hearing by planning tribunal 1 trillion cubic feet (28 billion cubic Laghtmurragha, both situated on the Bord PleanÆla into a modified onshore metres) of gas, has been troubled by northwest Mayo coast, were initially protests and delays since its discovery in suggested as alternatives to the under-1996. construction Bellanaboy facility, which Plans to develop the area as a sub-sea is currently heavily guarded in light of production facility with onshore repeated protests from groups concerned processing have faced criticism from over the project s safety. groups such as Shell to Sea, who believe However, on May 13, the study the onshore high pressure pipeline poses carried out by contractor Arup rejected a significant risk to the safety of the the sites, saying they would make no local community and could pollute their measurable difference to public safety in water supply. Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 12 PROJECTS & COMPANIES Last month, the Bellanaboy site was attacked by masked men who used a digger to vandalise the facility, while on May 10 seven men were arrested for public order offences, including criminal damage, obstruction and possession of offensive weapons at the landfall location in nearby Glengad. In September, the Irish army made safe a small explosive device outside Shell s offices in Dublin. The Corrib gas field has an estimated lifespan of 15 years, and Shell has predicted that it will supply up to 60% of Ireland s gas needs at peak production. StatoilHydro to drill Morvin development wells StatoilHydro has been given the go-start in May 2009 and last for 200 days. Epsilon to carry out exploration drilling ahead by the Norwegian Petroleum The Morvin oil and gas field is said to of well 15/9-B-1 and at production wells Safety Authority (PSA) to commence be a typical middle-size project, 15/9-B-2 and 15/9-B-8 in the Sleipner production drilling in the Norwegian dependent on existing infrastructure. West area. Drilling will start in June and Sea on the Morvin oil and gas field. Knut Gjertsen, project manager for last until December 2010. The field is part of production licence Morvin told local media: Morvin is The PSA has also approved Shell s 134 B and was discovered in 2001. It is dependent on the existing infrastructure. plans for the drilling of appraisal well located at a depth of approximately 350 Without this alternative, we would not 6305/5-3 S in production licences 208, metres around 21 km north of Kristin have been able to develop the field. 209 and 250 in the Norwegian Sea, 100 and 15 km northwest of Asgard A. The The Norwegian company has also km offshore. Work is due to start wells to be drilled are: 6506/11-A-1 H, been given the go-ahead to use the West between May 20 and June 20. A-2 H, A-3 H and 6506/11-B-3 H. Sub-sea templates and tubings were installed last year as part of the offshore project s infrastructure and are to be tied into Asgard B by a 20-km pipeline. First oil is scheduled to be pumped by the end of next year and at its peak period a production rate of about 27,000 barrels of oil equivalent per day is expected, with StatoilHydro s share being 18,000 boepd. StatoilHydro will use the semi-submersible mobile drilling facility Transocean Leader, which was built by Hyundai Heavy Industries in Korea, to conduct development work, which will Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 13 PROJECTS & COMPANIES New North Sea discovery announced by StatoilHydro StatoilHydro has announced the Earlier this year, StatoilHydro and its finds at three to 10 billion cubic metres. discovery of more oil and gas at the partners in the field announced that they Noralf Steinsland, StatoilHydro s exploration well 16/2-5. It is the fourth had chosen a concept for the licence manager for the North Sea, told well to be drilled in the StatoilHydro-development of Gudrun. local media: This represents a new and operated production licence 265. Meanwhile, Grane, which came exciting play. It increases opportunities The discovery well was drilled from onstream in September 2003, is the first for further discoveries in a mature area the West Epsilon rig to a vertical depth heavy oilfield on the Norwegian where we have strengthened our of 2,324 metres beneath the sea surface, continental shelf and produces more position through new licences and farm-in waters 109 metres deep about 35 km than 220,000 barrels per day. Reserves ins. east of the Gudrun field in the North Sea are said to exceed 700 million barrels. However, the resources will need to and roughly 30 km south of the Grane The latest StatoilHydro discovery be evaluated by more detailed studies of field. The well s proximity to Gudrun represents the second such find in the collected well data to determine any and Grane augurs well for its future area. In late 2007, an exploration well further activity. StatoilHydro has a 40% commercial viability. proved gas and oil about km further interest in production licence 265. Its Gudrun, found in 1975 but so far north, in what the company believes is partners are Petoro with 30%, Det undeveloped, is estimated to hold about probably part of the same hydrocarbon Norske Oljeselskap with 20% and 85 million barrels of oil and 13 billion system. First estimates put total Talisman Energy Norway with 10%. cubic metres of gas. recoverable gas resources in these two TPAO breaks off talks with Chevron Turkey s state-owned upstream operator foreign partners to help with the TPAO and Chevron already have one TPAO announced it had broken off talks exploration of the difficult terrain of exploration joint venture, together with a with Chevron over a possible joint Turkey s Black Sea territorial waters, third partner, Perenco, in Silopi, close to venture in exploration blocks the former where water depths approach 2,000 Turkey s border with Iraq. The joint holds off Turkey s Black Sea coast. metres (6,561 feet). venture agreement was agreed in 2006. TPAO officials confirmed the two TPAO already has three joint ventures One well was drilled in 2007 but it was sides had reached an agreement in in place. The first with Toreador and found to be dry. A second well is principle for a joint venture but had Stratic has been producing gas from the planned. failed to agree on the details of the deal, Akcakoca field since 2007, while Separately, TPAO announced it had namely the relative percentages each exploration drilling continues on struck oil in a well drilled near company would hold and their precise adjacent structures in deeper water. Adiyaman in southwest Turkey the obligations. The second, with Brazil s Petrobras, same region where the bulk of the TPAO s chief, Mehmet Uysal, said he covers the offshore blocks of Kirklareli company s oil production is located. The expected the US company to come back at the western extreme of Turkey s company said it was planning to begin with further proposals. His deputy, Black Sea waters and Sinop, which drilling onshore in the Sakarya region Yurdal Oztas, told reporters that the lies in the middle. Drilling on the latter northwest of Istanbul, where it expects failure of the Chevron talks would not prospect began this year. to find oil in a structure thought to alter TPAO s strategy and that the A third joint venture with extend north from the Duzce region company was ready to consider offers ExxonMobil, to explore the eastern end where it has previously found oil from other potential partners. of TPAO s Black Sea prospects, was deposits. TPAO s strategy is to take on major announced last year. Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 14 NEWS IN BRIEF Omajor, it was the 15th year in a row that IL BP has been able to perform this feat. MOL reports first-BP, in fact, was the only in its class that quarter loss on Iceland gets two was able to boost its production during Forint weakness, b2008. Focusing on the company s past, ids curecession rrent and future offshore rig contracts The National Energy Authority (NEA) and activity, it is clear that the BP is MOL, Hungary s largest oil refiner, of Iceland received applications from committed to growth through both reported a third-consecutive quarterly Aker Exploration and a consortium of development and exploration, as well as loss on the weaker forint and as the Sagex Petroleum and Lindir Exploration to keeping costs down. recession cut demand for energy. in the First Licensing Round for the BP, May 18, 2009 The net loss was Ft billion northern Dreki area by the closing date (US$ million), or Ft 1,249 a share, of May 15. Two of the blocks are within MOL and OMV compared with profit of Ft 65 billion, or the area of the agreement of October 22, together in Iraqi E&P Ft 792 a share, a year ago, MOL said in 1981 between Norway and Iceland on project a stock exchange statement. The median the continental shelf between Iceland estimate of seven analysts surveyed by and Jan Mayen. The NEA said that Hungarian oil and gas company MOL Bloomberg was for a loss of Ft difficult conditions in the world and its Austrian sector peer OMV each billion. The forint weakened to a record economy as well as low oil prices have announced the purchase of 10% stakes against the euro and a seven-year low undoubtebly affected other parties that in Pearl Petroleum from the Crescent against the dollar in March, raising the were interested in the Licensing Round. Petroleum and Dana Gas PJSC. Pearl value of the company s foreign-currency NEA, May 16, 2009 holds all of the companies legal rights debt. Results are going to draw Oin Khor Mor and Chemchemal gas-attention to weak operating performance il & Gas UK meets condensate fields in the Kurdistan of refining activity and enormous losses shadow Chancellor Region of Iraq. on foreign- currency denominated loans OMV paid US$350 million for 10% in Industry advocacy group Oil & Gas UKin the aftermath of the severe Pearl and MOL paid million mdepreciation of the forint against the et the Shadow Chancellor, George shares for its 10% (equivalent to Ft . dollar and the euro, in particular, sborne MP, on a short stop-over in 11,900 (US$)/share, based on the AbAttila Vago, an analyst at Concorde erdeen and took the opportunity to cash price paid by OMV) and as a result Securities in Budapest, wrote in a note convey the vital importance of the UK Crescent Petroleum and Dana Gas will oto clients before the earnings were il and gas industry to the economy. each become 3% shareholders in MOL. Chreleased. MOL s performance compares ief executive Malcolm Webb, said he Currently gas is being produced from with a 40 million euro (US$54 million) told the Shadow Chancellor the vital the Khor Mor field and is fed into the profit at OMV, the Austrian refiner that importance of the UK oil and gas power stations at Erbil and Bazian. gave up a year-long trillion-forint industry and explained that cost Appraisal work on Chemchemal, the hostile bid for the Hungarian company escalation in recent years combined with second gas field, will start during 2009. last year. PKN Orlen, Poland s largest the collapse in oil and gas prices and the Further expansion of the facilities will drefiner, reported a billion-zloty rying up of debt and equity markets increase production substantially. Based w(US$331 million) loss for the quarter. as having a dramatic, dampening on the current assessment, production Most countries in Eastern Europe are in effect on capital and exploration could reach a level 500,000 boepd recession as the global economic crisis spending. With 20,000 jobs riding on around 2015. These volumes will shuts down credit and investment while every GBP1 billion of capital initially satisfy the requirements of local curbing demand for the region s exports. investment Oil & Gas UK is very industry with substantial quantities Of Mol s key markets, Hungary s and concerned about the potential impact on available for export to destinations UKRomania s economies both contracted employment levels in the industry, primarily Turkey and Europe via the % in the first quarter from a year as capital investment may fall by GBP2 planned Nabucco pipeline. bearlier, Slovakia s shrank % and illion or more over this year and next. The key point of the co-operation is the OAustria s declined %. In the first IL & GAS UK, May 16, 2009 boost of production volumes in the quarter of 2009, the global recession BPKurdistan gas fields, from where they blows its trumpet became more severe, with weakened want to transport gas to Iraq, Turkey and refining and petrochemical margins and BP successfully replaced 121% of its possibly to the Nabucco pipeline later volatile currency movements, MOL reserves in 2008, adding billion new on," commented Budapest s Cashine Chairman and Chief Executive Officer barrels of oil to the company s portfolio. Securities. Zsolt Hernadi said in the statement. Proving why it is considered a , May 18, 2009 BLOOMBERG, May 19, 2009 Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 15 NEWS IN BRIEF oil reserves behind Saudi Arabia. Equity for Ascent Norway approves BLOOMBERG, May 18, 2009 Ascent Resources has entered into an new operator agreement with GEM GStatoilHydro to be lobal Yield The Ministry of Petroleum and Energy Fund Limited whereby GEM has made (MPE‘flexible’ on gas ) has pre-qualified Spring Energy available to the company an equity line as an operator on the Norwegian output as demand of credit of up to GBP5 million. The Continental Shelf (NCS). The pre-wanes facility will be used to assist in funding qualification as operator is an important the Company s exploration projects noStatoilHydro, the world s largest t milestone for Spring Energy and a covered by producoffshore oil and gas operator, plans to be tion revenue, and if recognition by the authorities that appropriate, to finance flexible on production of natural gas investments in Spring Energy is capable to take on additional exploration projecas the warming spring weather in ts that are more responsibility as an active and outside the investment profile of the comEurope and slowing economies curbs petent player on the NCS. Ascent/San Severina asset management SPRING ENERGYdemand. , May 18, 2009 If we now get very low demand going joint venture announced in October 2008. The company saforward and we see the opportunity to id the facility will Christian Democrats enable it to pursue further exploration urge StatoilHydroget higher prices at a later period, then to projects not considered underthat s a tool we would consider, said our agreemenJens Oekland, a senior vice president for t with San Sevdrop oil sands erina, at a time where there are distinct oppornatural gas, when asked about tunities of Norway s Christian Democratic party acquiring distressed assets. urged the governmenproduction cuts, in an interview Oslo t to back a proposal ASCENT, May 14, 2009 from Greenpeaceyesterday. We have flexible contracts. for StatoilHydro to Eabandon its Canadian oAnd not least we have flexible fields, so il sands project. ndeavour closes The oppoone can to a certain extent regulate sition party, which got % in sale of Norwegian the 2005 election, said it s disappointedproduction. subsidiary oveOil demand will post its biggest decline r the government s support for the poin almost three decades this year lluting oil sands project in Canada, Endeavour International Corporation has according to a statemenbecause of simultaneous recessions in t on its Web site. closed the sale of its Norwegian The governmenEurope, the . and parts of Asia, the t has a golden subsidiary, Endeavour Energy Norge oppoInternational Energy Agency forecasts. rtunity at StatoilHydro s general AS, to VNG- Verbundnetz Gas AG, for assembly on TuesdayNatural gas prices in the ., Europe s to back up its US$150 million. In conjunction with the concern over the environmenbiggest market for the fuel, slumped t, the party closing, Endeavour paid down 52% this year, following a drop in crude said. approximately US$27 million in debt, Greenpeaceand declining sales. s Norwegian chapter has reducing total net debt to approximately submitted a proposal to StatoilHydStavanger-based StatoilHydro this week ro s US$50 million. These proceeds will be annual shareholders meekept its forecast for oil and gas output of ting tomorrow directed toward supplementing cash million barrels of oil equivalent a r the company to drop its plans to flow from operations to fund three major develop Canadian oil sands. Theday in 2009. Falling gas demand in field developments in the United goveEurope has increased the risk of not rnment, which is led by the Labor Kingdom as well as exploration and new Party and owns 67% of StatoilHydromeeting that target, Eldar Saetre, the , business development opportunities in hacompany s chief financial officer, said s said it won t vote for the proposal. the North Sea and United States. WGreenpeace haon a conference call on May 11. s held events across illiam L. Transier, chairman and chief Norway this month to highligh Gas demand in Europe has already t executive officer, said the proceeds of Sslowed down, Saetre said after the tatoilHydro s involvement in oil sands, the sale will accelerate the development whichcompany posted a 77% drop in first- the group says will lead to very of the Rochelle, Cygnus and Columbus large greenhouse gas emquarter profit. This is a typical seasonal issions. fields that will serve as the foundation The company in 2007 bought closelypattern for the second or third quarters for our future production growth as well heof the year, but we expect the slowdown ld North American Oil Sands Corp. as fund shorter-cycle time and lower for about US$2 billion to developwill be more distinct due to the oil cost opportunities in the United States recession. sands and counter dwindling output at that complement the core business in the home. The oil sands area, abouBLOOMBERG, May 15, 2009 t 750 UK. kilometers (466 miles) northeast of ENDEAVOUR, May 14, 2009 C algary, is estimated to hold the largest Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 16 NEWS IN BRIEF cubic feet of gas during April, similar to Talisman plans March. The final stage of its field Overgas to cut gas follow-up well stimulation programme is rehabilitating prices by 30% as of all wells with the first major cleanout Talisman Energy Norge, operator of July and perforation re-opening programme production licence 038, has found oil at in 20 years. A 100% improvement in Bulgarian natural gas distribution wildcat well 15/12-21, 16 km north of production is targeted at completion of company Overgas plans to lower its gas the Varg field and 15 km south of the this stage with improved productivity prices by 30% as of July, following a Sleipner st field in the North Sea. A from the existing open perforations and decision by the State Energy and Water 133-metre oil column was encountered the re-opening of currently blocked Regulatory Commission. The in Middle Jurassic and Upper Triassic zones. The Peneszlek Gas field, % company s consumers will pay some reservoir rocks, and an appraisal well owned by LGO, in eastern Hungary, BGN 196 per 1 000 cubic metres less. will be drilled to determine the size of resumed production on April 29, 2009 Bulgarian households will pay BGN the oil discovery. If profitable resources with completion of the Pen-104a 0,081 per kWh of electricity. are proven, the discovery could be tied sidetrack, which targeted a higher part SOFIA NEWS AGENCY, May 12, in to the Varg field. The well was drilled of the structure to maximise recoverable 2009 by the M rsk Guardian facility in 86 mreserves. Stabilised production of 3 etres of water. mmscEni secures Russian fd gross was reported on May 5, TALISMAN, May 18, 2009 2009. Production net to LGO totalled deals million cubic feet of gas and no lp Energia takes Both Russia s Prime Minister Vladimir macondensate during the month. The gas jor credit line Putin and Italy s Prime Minister Silvio field produces no oil. The production Berlusconi were present when Gazprom Galp Energia has signed a 700 million schedule of ZalaGasCo Kft,% Chairman Alexey Miller and Eni CEO euro credit facility in the form of owned by LGO, in western Hungary Paolo Scaroni signed a new Floating Rate Notes with a final will be announced later. understanding on the South Stream maturity of four years with attractive LENI GAS & OIL, May 15, 2009 project. Eni and Enel also signed an terms and conditions, the company said. The facGASagreement to assign Gazprom 51% of ility was arranged in a club deal SeverEnergia, the holding company of format and was participated by 14 domestic and international banks, being Rthe Arcticgaz, Urengoil and ussia criticises Neftegaztechnologia exploration and coordinated by CaixaBI and Santander Southern Corridor production license, and the development GBM. Joint Lead Managers are Banco Santander TottaRof the Siberian fields. The understanding ussia has said that a European Union , ., Caixa Banco de on South Stream will allow an increase Invesplan to create a Southern Corridor timento, ., Banco Espirito in transport capacity from 31 to 47 Sandesigned to reduce the bloc s to de Investimento, ., Banco BPI, billion cubic metres per year. Gazprom Sdependence on Russian gas was .A., Banco Bilbao Vizcaya Argentaria will pay billion dollars for the (Portugal)counterproductive and commercially , ., BNP Paribas and Caixa d Estalvis y Pensiones de Barcequestionable. A spokesmpurchase of SeverEnergia (whose an for the lona (la Caixa). Co-lead ManagersRclosing is set for the end of June 2009). ussian Foreign Ministry, Andrei are Caixa EconomNThe payment will be made in two esterenko, stressed that Moscow ica Montepio Geral, Banco tranches during 2009/2010. Mneeded to be part of any solution to the illennium BCP Investimento, ., ENI AND ENEL, May 15, 2009 BBEU s energy problems. The comments Securities Ltd. (Banco do Brasil), The Bank of Tokyo-Mitsubishi UFJcame in response to last week s summit , Eni takes stake in Lin Prague where the . tried to build td, Banco Itau Europa, . Sucursal Financeira Internacional, Merrill Lynchsupport foTexas Quicksilver r a key part of the plan the InNabucco pipeline but failed to win the Resources ternational and Societe Generale. GALP ENERGIA, May 14, 2009backing of three key Central Asian Quicksilver Resources is selling % nations. The EU has been pushing of its 13,000 leased net acres in the Leni’s cleanout set Nabucco, an ambitious 3,300-kilometre Alliance area in Tarrant and Denton topipeline taking gas from the Caspian boost output counties to Italian oil giant Eni for region through Turkey towards Austria US$280 million in cash, which Leni Gas & Oil said that its Ayoluengo that would bypass Russia, as a way to OQuicksilver will use to pay down ilfield in northern Spain produced reduce its dependence on Russian gas. DOWdebt. 3,885 barrels of oil and 974 million JONES, May 14, 2009 Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 17 NEWS IN BRIEF In addition, the two companies are by Canamens Limited that it intends to permitting and construction of the forming a strategic alliance to acquire withdraw from participating in the pipeline and facilities to connect the and develop other Barnett Shale natural Siekierki project in Poland. The precise Sroda-4, Kromolice-1 and Kromolice-2 gas properties over about 270,000 acres terms of the withdrawal of Canamens wells. Planning and permitting work is surrounding Quicksilver s Alliance from the project are the subject of underway. First gas deliveries are properties. The expectation is that continuing discussions. Canamens have expected in the fourth quarter of 2010. A Quicksilver will acquire and operate stated that their intended withdrawal spokesman at the company s Warsaw additional leases while cutting Eni in on should not be taken as an indication of office said that the firm is pleased that the action. The companies hope to any change in their view of the POGC has placed the Company in benefit from a mutual technical considerable attractions and potential of charge of bringing these wells online. exchange ... particularly in drilling and the Siekierki project which had led to They will add significantly to FX completion technologies and their initial involvement. The estimated Energy s production base. geophysics, Quicksilver said. The gas in place is now believed to be FX ENERGY, May 12, 2009 Barnett Shale exemplifies an considerably higher whilst the unconventional play because energy contingent resources have also increased Roszkow to be companies use horizontal drilling and significantly. After the withdrawal, completed in June fracturing techniques to recover gas Aurelian s shareholding in the project wFX Energy has reported that the from tight reservoirs more than a mile ill revert to 90%, with the balance of 10%production facility at Roszkow is deep. Before those technological continuing to be held by Avobone NVexpected to be completed in June. advances, the Barnett and other natural . gas shales were considered AURELIAN, May 18, 2009However, due to delays in obtaining permits the pipeline will not be uneconomical to drill. FORT WORTH STAR-FX Energy to start operational until later this year. We are TELEGRAM, May 19, 2009 Podisappointed about this delay, said lish drilling David Pierce president of FX Energy. Second Dana well FX Energy said that the Ostrowiec well We intend to match our big capital pin western Poland is scheduled to begin expenditures to the timing of our roves commercial drilling in about two weeks. The well production and revenue. However, we potential will be drilled by Pila Drilling, a wholly are optimistic that drilling at Ostrowiec Dana Petroleum has announcedowned subsidiary of the Polish Oil and and other potential farmout activity will the successful appraisal of the Fulla gasGas Company (POGC). The well is supplement our own operational activity condensaoperated and owned 51% by FX Energy. over the next few months. te field through the drilling of a second Fulla well 30/11-7A, just 10 kmPOGC owns 49%. Under terms of the FX ENERGY, May 12, 2009 north east of the Frigg Fieldfarmout agreement, POGC will pay in the North Sea100% of the drilling costs of the well. British Gas . The purpose of this well was to prove petroleum in the middle JurassicThe Ostrowiec well will test a Ca2 welcomes Qatar role Brenbuild-up at a depth of 4,100 metres. It t group reservoir rocks. In February in South Hook will also test sub-Zechstein rocks with this year, the first Fulla well made a discoverypotential for Rotliegend sands. The British Gas has welcomed the opening in the lower part of the Brent group in well 30/11-7, located onnearest fields are located approximately of the Qatar partnerships South Hook the same25 kilometres south of the Ostrowiec liquefied Natural Gas (LNG) terminal, prospect, close to the abandoned Lille Frigg field. Proven volumes for thelocation. Richard Hardman, Senior and has outlined the important role Technical Advisor for FX Energy said it Qatar will play in supplying liquefied two wells are currently estimated at between 60 and 105 million barrels ofis a high risk well, but the company is natural gas (LNG) to the UK. British oexcited about the potential at Ostrowiec. Gas supplies gas and electricity for il equivalent. The Fulla discovery is thought likely to be commerciaFX ENERGY, May 13, 2009 16mn UK consumers and businesses and l and a is owned by the UK energy company development by tie-back to nearby inFX wins pipeline Centrica. frastructure is being considered. DANA, May 19, 2009 deal for Sroda-4, Centrica operates the UK s largest fleet Kof gas fired power stations and also has Canamens geromolice-1 and 2 tting ouWgrowing energy businesses in North ells America and across Europe. t of Poland FX Energy said that the Company has Aurelian Oil & Gas has been informed been designated operator for the Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 18 NEWS IN BRIEF The South Hook terminal in Milford Energy for the sale of the assets for Haven is Qatar s first involvement in the US$ million. However, last week an SERVICES UK gas industry and follows the issue was identified concerning that opening of the Qatargas 2 LNG transaction about which the companies ATR Group builds on gasification plant in Qatar last month. were unable to agree. The deal with GUK growth through as from Qatargas 2 will be unloaded at Silverstone is subject to completion of South Hook and go directly into theinvestment formal documentation and the approvals UK s gas network. of the various joint venture participants ATR Group is expanding into new Qatargas 2 has the capability of meeting as well as the UK government. markets throughout the UK, including a 20% of the UK s natural gas needs, OFFSHORE, May 15, 2009 push into the downstream oil and gas which will provide a secure and reliable sector as well as marine operations, after energy supply to the country. Shetland gas studies investing GBP2 million in new plant and GULF TIMES, May 13, 2009 underway equipment. RWEThe North Sea tool rental market-leader, Dea farm-in to Total E&P UK has started basic headquartered in Aberdeen, is securing Faengineering studies for its Laggan-irfield Energy’s its position in the UK by extending its Clipper STormore project west of Shetland. outh gas The Lgeographical reach into central Scotland aggan and Tormore fields provide and working to grow its business in field one of the UK s largest undeveloped gas England. RWresources. Total s project will establish E Dea AG has reached an agreement wmATR chief executive, Robert Skidmore, ajor new subsea pipeline and onshore ith Fairfield Energy to farm-in to the said: The strength of ATR Group has gas processing infrastructure in the undeveloped gas field Clipper South in been in our approach to the marketplace region. A joint venture of Doris the Southern British North Sea. RWE particularly in the challenging DEngineering and its 50% owned ea will acquire 50% equity in part of economic climate which continues to subsidiary in London, Offshore Design blocks 48/19a, 48/19c and 48/20a. The CEaffect British business. We have ngineering (ODE) are managing the lipper South Field is located in the invested more than GBP2 million in new basic engineering program. The scope Sole Pit Basin in the Southern North Sea plant and equipment including wcovers the overall development ithin the Rotliegend tight-gas play generators, compressors and zone rated facilities, including subsea production fairway. RWE Dea UK will take equipment, as well as consumable stock, equipment, flowlines, umbilicals, the operatorship to develop the field holding to ensure that our fleet meets the needs onshore treatment plant, and the export a total gas volume estimated to be about of a growing and demanding rental pipeline. Laggan and Tormore are 125 12 billion cubic metres. The field is market. The addition of downstream km ( miles) west of the Shetlands located northeast of the Anglia Field in facilities including land-based refineries, wIslands in 600 m (1,968 ft) water depth. hich RWE Dea holds a non-operating The gas wsuch as St Fergus and Mossmorran, to ill be developed via up to interest of %. For the field our portfolio of clients along with eight subsea wells and two subsea development up to 6 horizontal multi-production systems, around 16 kminvolvement in the north-east England ( fractured wells from a single platform mregion where a high volume of iles) apart. The wells will be linked via are planned. First gas is expected in twdownstream work originates, completes o 125-km, 18-in. (-cm) 2011. the circle in terms of our work with the RWEproduction flowlines to the new gas , May 13, 2009 oil and gas industry we have been processing plant on mainland Shetland. Norwest to seThere will also be a 125-km mheavily involved in the offshore stage of ethanol ll the process since our inception. Noinjection line and control umbilical. rth Sea assets to T ATR Group is also continuing to work reated gas will be exported through a Silverstone with customers in machinery purchase new 234-km (145-mile) trunkline to an and re-rental at this time, which is Auoffshore tie-in point close to Total s stralian Norwest has agreed to sell its another area of growth as contractors Norecently decommissioned MCP01 rth Sea assets to Silverstone Energy continue to streamline their business and platform and the Frigg UK pipeline. for US$ million. The assets comprise a 25% intereThereafter it will head southwreduce capital expenditure costs by est st in the Cobra gas selling owned equipment and renting it dthrough the Frigg system to the St iscovery and Norwest s interest in back, or discussing rental at the outset Fergus reception complex, north of several exploration licenses in the Inner MorayArather than purchasing high-end, berdeen. First gas is scheduled to flow Firth. expensive equipment which they may Noin 2013/14. rwest had previously reached a conditional agreement wOFFSHOREonly need short-term. , May 18, 2009 ith Fairfield OILVOICE, May 18 Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 19 NEWS IN BRIEF Bcatering and hotel services across a by private equity groups: Lansdowne P charters Leander number of Technip vessels in West Capital and Claver Capital, as a vehicle for Gulf of Mexico Africa, Brazil, North Sea and other to develop a leading worldwide rental regions. The company said the marine business, focused on the needs of BP plans to book a supertanker to move market requires flexibility and its strong topside activities in the oil services North Sea Forties crude oil to the . market position provides this within a sector. Its initial moves included buying Gulf of Mexico, traders and shipping robust framework that has resulted in the two specialist offshore container rental brokers said on Thursday, May 17. contract and sales companies; Containental The very large crude carrier Leander ESS, May 12, 2009 Offshore, in Aberdeen, and London-will load from Hound Point, Scotland on Mbased Offshore Containers Limited for ay 24-25, to the . Gulf at a freight Neste Jacobs signs approximately GBP10 million. rate of Worldscale , with an option framework OFFSHORE CONTAINERS, May for one to three months of storage at 12, 2009 $32,500 a day, shipping brokers said. agreement BP is also understood to be interested in Neste Jacobs has signed a long-term Saipem wins order chartering the Suezmax Hellespont framework agreement with Abu Dhabi Triumph for Mfor Kashagan field ay 20 loading from the National Chemicals Company North Sea to the . Gulf at a freight (ChemaWEwork yaat) covering engineering rate of W60, but the crude to be carried services for construction of one of the Saipem, the biggest European oil- field is unclear, they said. The Leander, world s largest chemicals industrial services provider by market value, won chartered by Royal Dutch Shell PLC cities. The first complex to be built in a US$1 billion contract for work at (RDSA), has been moored off the ChemaWEyaat Industrial City Kazakhstan s Kashagan field. Southwold, England, for Forties storage (Madeenat ChemaWEyaat) in the Saipem will work with Norway s Aker for more than five months. Khalifa Industrial Zone at Taweelah in Solutions to build and connect offshore DOW JONES, May 14, 2009 Abu Dhabi, will include an ethylene facilities, the Milan-based company said CGGVecracker, a reformer, and various polymer today in an e-mailed statement. ritas reports wand chemicals processing units. Saipem s portion of the contract is eakening demand ChemaWEyaat is planning to build a valued at approximately US$1 billion, CGGVenumber of similar complexes in it said, adding that it will also conduct ritas announced its non-audited Madeenat ChemaWEyaat. Under the onshore work. first quarter 2009 consolidated accounts, saying it had a solid quarter despframework agreement, Neste Jacobs Eni, the Italian oil producer that controls ite weakening demand. Group revenuecould be commissioned to carry out Saipem, is part of an international group significant front-end engineering work. developing the Kashagan field. including Wavefield was relatively stable at US$851 million whNESTE OIL CORPORATION, Development will cost an estimated ile Group operating margin was 15% and neMay 13, 2009 US$36 billion before the first oil starts t income margin of 8%. TOflowing in 2012, according to the ffshore Containers heKazakh government. company took rigorous cost reduction programmes including a plan Group in acquisition BLOOMBERG, May 18, 2009 to remove three 3D vessels and one 2D of Aberdeen vessel from the market in 2009. companieStingray s However, R&D spending levels have Geophysical been maAberdeen-based Offshore Containers intained together with an completes “listening has entered into agreements on the terms increased focus on advanced technology with light” stage CGCGVERITAS, May 14, 2009of its third and fourth acquisitions since its formation one year ago. The Stingray Geophysical Limited said it has ESS wins contract proposed deals, to acquire Aberdeen-completed its 30-month Listening with forbased businesses Vertec Engineering Light stage-gate development project to Technip’s fleet Limited and the hire division of Labtech commercialise its unique fibreoptic ESS Support Services Worldwide, the Systems Limited, each from Sovereign sensing technology for Permanent Aberdeen-based, offshore catering and Oilfield Group PLC, remain subject to Seismic Reservoir Monitoring. facilities management services, has the approval of the sellers shareholders signed a three-year contract worth in a General Meeting to be held shortly. GBP12m with Technip UK Limited. Offshore Containers was formed in 2008 The contract means ESS will provide Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 page 20 NEWS IN BRIEF With the support of funding by the for the next wave of expansion in the he expects the company to be profitable Technology Strategy Board and carried subsea sector, Subsea UK says skills and this year. out jointly with manufacturing partner, training must continue to be top priority. We hope that the main decline has Atlas Elektronik UK Limited, the SUBSEA, May 18, 2009 already happened and we expect the qualification test programme culminated contraction not to exceed 15% in all of in the successful demonstration of TMK is in talks with 2009 from 2008, Shmatovich said. Stingray s Fosar system to oil EBRD on loan The pipemaker doesn t intend any companies in offshore Norway sea trials significant dividend at all, he said. Russia s TMK, the world s second-at the end of 2008. Stingray s Fosar Luxembourg-based Tenaris SA is the largest pipemaker for the oil and gas system consists of a passive, fully fibre-largest maker of steel tubes for optic array of Optical Sindustry, is in talks with the European ensor Units pipelines. (OSUBank for Reconstruction and s) connected by armoured fibre-BLOOMBERG, May 16, 2009 Development on a loan accord to service optic cable. Requiring minimal debt, board member Vladimir lightweight connections to surface Safety for fishermen Shmatovich said. recording equipment, the compact The company is also talking to RussFLTC Services Limited said that it has ian interrogation unit receives and decodes lenders Sberbankmade significant progress in several , VTB and the returning signals to provide full-wGazprombank, Shmatovichprojects to inform fishermen of seabed told ave seismic imaging data for detailed reporters on the sidelines of the EBRDstructures and equipment related to oil reservoir characterisation and mannual meeting in London today. Theand gas activities on the UK continental onitoring. STINGRAY, May 14, 2009company needsshelf (UKCS) and as a result, improve to refinance US$1 billion this year, he satheir safety. The oil and gas industry is id. Subsea capermitted by law to leave some oil and lls for co- We do carry a significant debt, oShmatovich saidgas related infrastructure on the seabed . To service the debt rdinated training we are working with the banks andfollowing the completion of an approved the approach EBRDdecommissioning programme but it , we are also developing a cost cutting programrecognises that this can potentially affect Indus. try body Subsea UK is calling for a radical overhaul of nationaTMKthe fishing industry. With financial help s net debt more than doubled to l training and competencyUS$ billion by Jan. 1 this year, fromfrom Shell, FLTC Services has built an bodies to create clearer career development pathwaysUS$1international web portal providing .35 billion a year earlier, the and ensure the UK retains a secure footingcompany said earlier. It spent more thanfishermen and other mariners from the onUS$1UK and other countries with enhanced .3 billion on North American and the global engineering and manufacturing stage. Subsea saidKazakh assets last year to diversify salesinformation about the location of oil and that there are too many organizaougas companies operations in UK waters. tside Russia. tions at both a national and regional level whichTMK plans to announce the deal withThe site will make this deal winformation available in French, the EBRD within two months, ith skills, training and associated certification. This has led to careerShmatovich said. He declinedGerman, Dutch and Norwegian as well to devecomment on the size of the loanas English. . lopment becoming confused and complicatedDemandFLTC, May 13, 2009 for Russian oil and gas with patchy, at best, guidance for individuals on what roupipelines contracted between 10-15% in te the first quarter, Shmatovich said. Still, to take. With planning already underway Copyright ' 2009 NewsBase Ltd. Edited by Ryan Stevenson All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents
Europe Oil & Gas Monitor 19 May 2009, Week 20 Back Page NEWSBASE INFORMATION HEADLINES FROM A SELECTION OF NEWSBASE MONITORS THIS WEEK CUSTOMERS INCLUDE Oil and Gas Sector Afroil Hostilities in the Niger Delta have flared up again, with militants seizing vessels and sabotaging pipelines. Asia Oil & Gas Monitor Pertamina aims to become more like fellow Southeast Asian players PTT and Petronas. China Oil & Gas Monitor ChQuickTime and aina has finally revealed details of the fuel pricing decompressorare needed to see this picture. system it implemented at the turn of the year. FSU Oil & Gas Mon itor Eni is at odds with Gazprom over the terms for participation in the South Stream gas pipeline project. Global LNG Monitor Fluxys LNG s proposed second jetty at Zeebrugge could handle both standard tankers and regasification vessels. LatAmOil Ecuador s auction of oil seized from France s Perenco has fa iled to attract any offers. Middle East Oil & Gas Monitor GE Oil & Gas has won a US$200 million services and maintenance contract with Oman LNG. NorthAmOil The US should curb its demand for oil via an excise tax, according to a report from the RAND Corporation. For further details on the stories above and NewsBase s entire product range: tel: +44 (0) 131 478 7000 e-mail: news@ Copyright ' 2009 NewsBase Ltd.
