Information – Oil Gas Future Energy
Venezuela wants two US oil firms to leave
Venezuela wants two US oil firms to leave
30 Aug, 2007, 1410 hrs IST, AGENCIES
CARACAS: The Venezuelan government wants two US oil giants that refuse to come under state control to leave and is not offering compensation, Energy Minister Rafael Ramirez said.
Exxon Mobil and Conoco Phillips have refused to fall in line with a law passed by President Hugo Chavez’s leftist government forcing multinationals to give at least 60 percent of the capital in their Venezuelan operations to the state-controlled Petroleos de Venezuela SA (PDVSA).
Venezuela is one of the world’s top 10 oil producers and a major supplier to the US, its biggest customer.
But Ramirez said late Wednesday, “We are negotiating with the companies that have not accepted our laws in order to finalize their departure from the country.”
The minister said that the era of “oil openness is over” and highlighted that no compensation would be given to the US companies.
“We have been very clear since last year: quite simply, it does not interest us to work with companies that do not accept our laws,” Ramirez said as he left a Venezuelan parliament debate on energy.
He added that those companies which do work with PDVSA would be allowed to stay in “the biggest oil reserve on the planet” for at least 25 years.
Venezuela is the only Latin-American member of OPEC, the main oil producers’ cartel. Officially it produces about three million barrels of oil per day but the International Energy Agency has given a figure of 2.6 million.
About half of the production goes to the US. There is an estimated 230 billion barrels of oil in Venezuela’s Orinoco field but 78 billion are proved.
Mubadala to develop Dh4.4b city in Malaysia
Mubadala to develop Dh4.4b city in Malaysia
Gulf News Report / Published: August 29, 2007, 23:58
Dubai: Mubadala Development Company, Abu Dhabi government’s investment arm, will lead a consortium of Gulf investors to develop a Dh4.4 billion ($1.2 billion integrated international city development in Malaysia’s the Iskandar Development Region (IDR).
The company yesterday signed a series of Memorandums of Understanding (MoU) with partners on the project, to be developed over 20 years.
“This landmark investment will represent the single largest foreign real estate development in Malaysia, one of the largest real estate developments in the region and one of the largest single foreign investments ever in Malaysia,” Mubadala said.
Growth strategy
Khaldoon Khalifa Al Mubarak, CEO and managing director of Mubadala, said, “We believe strongly that sustainable development built upon a solid infrastructure attracts global brands and pays continuing dividends. This is an integral part of our growth strategy in Abu Dhabi and beyond. Node 1 fits well with our vision and investment objectives and Mubadala is pleased to be part of this endeavour.”
Abu Dhabi-based developer Aldar Properties will act as its Master Development Manager for IDR, referred to as Node 1.
Aldar chairman Ahmad Al Sayegh, said, “Node 1 has the opportunity to be a showcase of new ideas and standards in development and Aldar is committed to its success.”
The conditional agreements entered by South Johor Investment Corporation Berhad (SJIC), through its subsidiary Rim City Sdn Bhd (RCSB) yesterday were with three leading consortiums, led by Mubadala, Kuwait Finance House and Millennium Development International Company.
The consortiums will invest more than $1.2 billion of initial investment for land and infrastructure to develop three clusters, namely the Lifestyle and Leisure cluster, the Cultural cluster and the Financial District. These three clusters will consist of nine distinctly themed zones.
Node 1 is a development spread over approximately 9.02 million square metres, located in the area of Nusajaya.
Taqa readies $4b buyout plan
Taqa readies $4b buyout plan
By Himendra Mohan Kumar, Staff Reporter/GULF NEWS Published: August 27, 2007, 23:06
Abu Dhabi: The Abu Dhabi National Energy Company (Taqa), plans to invest Dh14.68 billion ($4 billion) in new energy acquisitions over the next 12 months, the company’s chief executive said yesterday.
“We are looking at opportunities in Algeria, Libya, Tunisia, Norway, The Netherlands, UK, Canada and possibly, the US,” Peter Barker-Homek told Gulf News.
At present, Taqa has investments, assets and operations in 10 countries – UAE, Canada, Ghana, India, Morocco, The Netherlands, Russia, Saudi Arabia, the UK and the US.
Barker-Homek said Taqa’s latest upstream acquisition – Pioneer Canada – will go through the normal regulatory approval process and is expected to be completed “probably in November this year.”
Taqa said last week that it will acquire the Calgary-based upstream petroleum exploration company for $540 million from Pioneer’s parent – the US-based Pioneer Natural Resources Company.
Pioneer Canada, which has operations in the western Canadian sedimentary basin, would be Taqa’s fifth overseas acquisition since November 2006.
Post acquisition of Pioneer Canada, Taqa’s debt-to equity ratio would be 80 per cent debt and 20 per cent equity.
Talking about the company’s debts, he said: “We have $3.5 billion in bonds that we have issued to the global financial community. In addition, we have, through a syndication of banks, about $6.5 in project finance in our subsidiaries in the UAE.” Barker-Homek said Taqa’s assets are worth $16 billion.
Output
The combined output of Taqa’s upstream assets is currently a little more than 60,000 barrels of oil equivalent per day.
Even if there are no further acquisitions by the company, Taqa can sustain its current production level for several years, said Barker-Homek. “Right now, the average reserve life of our oil and gas properties is 12 years,” he said.
Barker-Homek said Taqa plans to invest $300 million in 2007 to boost output at its oil and natural gas producing assets. “Since January this year, we have invested about $200 million.”
Barker-Homek felt Taqa is grossly undervalued on the Abu Dhabi Securities Market.
“The earnings potential of the company is currently not reflected in the share price. I think the market is probably waiting to see if our acquisitions will add value to shareholders. We plan to maintain and increase the dividend that we established last year,” Barker-Homek added.
Gulf to Japan VLCC freight hits four-year low partly due to Opec cuts
Gulf to Japan VLCC freight hits four-year low partly due to Opec cuts Reuters Published: August 19, 2007, 23:05
London: The world’s main crude export route sank to a four-year low last Tuesday, hit by strong fleet supply, long-standing Opec cuts and refinery maintenance in Asia, according to brokers and analysts.
The Very Large Crude Carrier (VLCC) route from the Gulf to Japan struck W50 – its lowest level since October 2003, according to Reuters data.
The London Baltic Exchange confirmed the physical spot trade on the route at W49.97 – an average between single and double-hulled oil tankers on the long-haul voyage.
Japan is Asia’s biggest importer of crude oil, closely followed by China. More than two-thirds of the Gulf’s oil flows to Asia.
Brokers Simpson, Spence & Young cited a bout of refinery maintenance in Japan at the end of August and South Korea as a further reasons for the weakness.
Other core rates from the Gulf to the United States and out of the Atlantic Basin – West Africa and the North Sea – to the United States have already struck four-year lows.
Long-haul routes
Despite strong world crude demand and buoyant economic growth, major long-haul crude export routes – including those from top producers in the Gulf – have been hit hard by strong fleet growth and long-standing Opec cuts this year.
The Organisation of Petroleum Exporting Countries decided last year to lower output by 1.7 million barrels per day (bpd), equivalent to a VLCC’s worth a day from the market.
The group is meeting about 900,000 bpd of the promised reduction, according to a Reuters survey of July output.
High stocks in the United States and a backward dated Nymex crude futures market since mid-July have pressured export flows and correspondingly rates, as traders delay buying.
A heavy round of refinery maintenance in the world’s biggest consumer and unscheduled stoppages have also squeezed flows. “Oil tanker movements suggest oil in transit is well below seasonal norms, especially on westbound routes, and will remain so for several weeks,” the International Energy Agency said in a report last week. “In the Atlantic Basin, production outages and economic run cuts in Europe offer further downside to prospective crude vessel interest,” it said.
Sharp contrast
The slide on crude freight markets is in sharp contrast to ocean freight for dry commodities – a different sea freight sector – which continues to smash records. Some analysts said the new freight lows on crude were on a nominal basis only because the ‘real’ or dollar per tonne price was higher on a Time Charter Equivalent basis due to starkly higher ship fuel (bunker) costs this year.
Shell to provide services to 25 Qatar Gas LNG carriers
Shell to provide services to 25 Qatar Gas LNG carriers
BY A STAFF REPORTER /KHALEEJ TIMES 12 July 2007
DUBAI — Shell International Trading and Shipping Company Ltd has formally become the provider of shipping and marine services to some 25 newly built liquefied natural gas, or LNG, carriers of Qatar Gas Transport Company Ltd (Nakilat).
In a statement, the companies said they formalised in a ceremonial signing yesterday the master services agreement they had drawn up in November 2006. “A key element of the agreement is the commitment to the development of Nakilat’s shipping expertise, in support of its aspiration to become a fully integrated LNG shipping company,” it said.
Faisal Al Suwaidi, Vice-Chairman, Nakilat, cited the importance of having in place a world-claxx LNG shipping operation, saying that Qatar is the world’s leading producer of LNG. “With the signing of this agreement, we are setting the foundations for the development of all the necessary LNG shipping capabilities to meet our growing global requirements,” he said.
The statement said the 25-year deal calls for Shell to provide Nakilat a full range of shipping services including staff recruitment, training and operational management of the vessels. It added that the operations management of the ships has to be transferred to Nakilat within 12 years of the delivery of the last vessel.
Linda Cook, executive director, Royal Dutch Shell, said the company has added another dimension to its growing partnership with Qatar, noting Shell’s 40-year experience in transporting LNG around the world safely and reliably.
“We have already begun to recruit and train the required personnel to make the partnership a success,” Cood said.
The statement said Nakilat’s fleet of LNG vessels will be put into service over the next four years
Qatar Petroleum and Shell incorporate Qatargas 4
Qatar Petroleum and Shell incorporate Qatargas 4
BY A STAFF REPORTER /KHALEEJ TIMES 12 July 2007
DUBAI — Qatar Petroleum (QP) and Royal Dutch Shell yesterday announced the incorporation of their joint venture, Qatar Liquefied Gas Company Limited (Qatargas 4), in which an affiliate of the former holds a 70 per cent share while Shell’s affiliate owns the remaining 30 per cent.
In a statement, the companies said the joint venture would own both the onshore and offshore assets of Qatargas 4, one of Qatar’s major LNG (liquefied natural gas) projects.
“The event marks the conclusion of all major commercial agreements for the Qatargas 4 project,” said Abdullah bin Hamad Al Attiyah, Qatar Deputy Premier and Minister of Energy and Industry. “This impressive undertaking will further cement Qatar’s position as the world’s leading producer of LNG and help us meet our production target of 77 million tonnes per annum.”
The newly-formed joint company also signed a sale and purchase agreement (SPA) with a Shell affiliate as buyer of all the LNG volume produced by Qatargas 4 project.
The project comprises upstream gas production facilities to produce some 1.4 billion cubic feet per day of natural gas from Qatar’s North Field over the 25-year life of the project. It also includes a liquefaction plant with a capacity of 7.8-million tonnes per annum, and the required LNG shipping capability.
The statement said the main engineering, procurement and construction contract for onshore facilities was awarded in December 2005, and construction works are progressing well in Ras Laffan. The first LNG cargoes are set for delivery by end-2010.
It said Qatargas 4 LNG volumes are intended primarily for the natural gas markets in the US
Dolphin loads its first cargo of condensate produced in Ras Laffan
Dolphin loads its first cargo of condensate produced in Ras Laffan
By Himendra Mohan Kumar, Staff Reporter/GULF NEWS Published: August 12, 2007, 23:00
Abu Dubai: Dolphin Energy Limited, a joint venture company comprising Abu Dhabi government’s investment arm, Mubadala Development Company, Total of France and Occidental Petroleum of the United States, yesterday said it had successfully loaded its first-ever cargo of 500,000 barrels of condensate, produced from its natural gas processing plant at Ras Laffan, Qatar.
Dolphin Energy, however, did not disclose where the cargo was headed.
“Our customers are all signed up. When we reach full production early next year, we will be transporting two billion standard cubic feet of gas per day to the UAE,” a Dolphin Energy official told Gulf News. However, the official declined to provide the company’s current gas production figures.
“Two additional cargoes will follow in August. About six similar-sized cargoes of condensate are expected to be exported every month once full production is reached,” Dolphin Energy said in a statement.
Massive initiative
The Dolphin gas project is the largest single energy initiative ever undertaken in the Middle East.
Dolphin gas, a source of clean energy for the Southern Gulf, involves the production and processing of natural gas from Qatar’s North Field, and transportation of the dry gas by sub-sea export pipeline from Qatar to the UAE.
Through its supply of natural gas from Qatar, it will also bring together the UAE, Qatar and Oman in a regional energy network for the first time.
Long-term customers for the gas from Qatar are Abu Dhabi Water & Electricity Authority, Union Water & Electricity Authority, Dubai Supply Authority and, from 2008 onwards, Oman Oil Company. Each of these have signed gas supply agreements with Dolphin Energy for 25 years.
Dolphin Energy is owned 51 per cent by Mubadala Development Company, on behalf of the Government of Abu Dhabi, and 24.5 per cent each by Total and Occidental.
Dolphin Energy was created with the aim of developing substantial energy projects throughout the GCC and supporting the development of long-term industries throughout the region. It is expected to create wealth, economic growth and employment opportunities for the citizens and residents of the region.
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