Drawer of a tailor: Talking about of Strategic Industries ...: 2007/10

INDIA: Mittal may bid for oil and gas blocks under NELP

Steel czar Lakshmi N Mittal is mulling over bidding for oil and gas blocks on offer in forthcoming auction under NELP and said it will transfer the Kazakhstan oil assets he had acquired from Russia's Lukoil to his joint venture partner ONGC Videsh Ltd.

"We are interested in oil and gas exploration as well as refinery and petrochemical business in India. We haven't yet seen the blocks on offer in NELP-VII (but) we will certainly consider bidding," Arcelor-Mittal executive vice president Sudhir Maheshwari told reporters here.

Mittal Investment, the company that holds Mittal family's interest in Arcelor-Mittal, on Thursday signed an MoU to take a stake in Hindustan Petroleum Corp Ltd's proposed $6-billion refinery-cum-petrochemical project at Visakhapatnam. It had earlier picked 49 per cent in HPCL's Bhatinda refinery.

"We can do ourself," Maheshwari said when asked if the company would bid alone or with a partner in the NELP-VII round, which is to be announced next month. About 65 blocks are to be offered in the seventh bidding round under New Exploration Licensing Policy (NELP).

He said his company was committed to transferring the 50 per cent stake in Caspian Investments Resources which MI had acquired from Lukoil for $980-million.

The acquisition was to be done by ONGC Mittal Energy Ltd, the equal joint venture of OVL and Mittal Investment, but the India-born billionaire went ahead on his own citing opposition to OMEL from Lukoil. He has since been delaying transferring the assets to OMEL citing opposition by Kazakhstan government.

"We have made a commitment and it will be honoured soon. It may take a few months or even a year (for the transfer to take place)," he said.

Caspian Investment Resources has equity in five Kazakh oil fields - Alibekmola, Kozhasai, Northern Buzachi, Karakuduk and Arman - in the Aktyubinsk and Mangistau regions. Current production from the fields, which have total proven reserves of some 270 million barrels, is more than 40,000 barrels per day and is set to increase in the coming years.

Kazakhstan is one of the 10 countries Mittal had originally identified for exclusive pursuit of hydrocarbon opportunities in joint venture with Oil and Natural Gas Corp (ONGC).

Some in ONGC saw the acquisition as violation of the pact unless Mittal transfers the stake to the joint venture firm, OMEL.

"Mittal had promised us that the stake will be transferred to OMEL once the transaction is complete. He has done so till now. We formed a joint venture with him because of his clout with the governments in the Africa and Central Asia particularly Kazakhstan. Now, he can't walk out of the promise saying the Kazakhstan government is opposing the transfer," an ONGC executive said in New Delhi.

Mittal and ONGC had in July 2005 agreed to participate on an exclusive basis through OMEL in Angola, Azerbaijan, Congo Brazzaville, Democratic Republic of Congo, Indonesia, Kazakhstan, Romania, Trinidad and Tobago, Turkmenistan and Uzbekistan.

Mittal Investment and Lukoil now hold 50 per cent stake each in Caspian Investment Resources Ltd. Lukoil had used Caspian Investments Resources Ltd to buy Kazakh oil producer Nelson Resources Ltd for 2 billion dollars in 2005.

Initially, OVL was also looking at acquisition of Nelson Resources.

Via: India Economic Times

RUSSIA: Gazprom Goes to Iran for Talks

Gazprom held talks in Iran on Wednesday on expanding in the region, one day after President Vladimir Putin made his first visit to the country.

Deputy chief executive Valery Golubev is in negotiations with energy officials from Iran and Armenia on joint projects, Abubakir Shamuzov, head of Gazprom's Tehran office, said Wednesday.

Russia is seeking to expand its control of pipeline networks outside its borders. Moscow, via Gazprom, has used a combination of threats and incentives to increase its influence in neighboring markets. Gazprom agreed last year not to raise prices for Armenia until the end of 2008. The price, $110 per 1,000 cubic meters, is less than half what Gazprom charges customers in Western Europe.

In return, Gazprom's Armenian venture, ArmRosgazprom, will acquire a gas pipeline to Iran and the new generating block of a thermal power plant, Gazprom said at the time. Armenia also agreed to let the Gazprom venture oversee building a second, 197-kilometer pipeline to Iran.

Armenia currently receives almost all its gas by pipeline from Russia across Georgia. Gazprom Neft, Gazprom's oil arm, has said it is considering building an oil refinery in Armenia.

Also Wednesday, RIA-Novosti reported that Putin invited his Iranian counterpart, Mahmoud Ahmadinejad, for talks in Moscow. No date was set for the meeting, the agency said.

Via: The Moscow Times
|GAZPROM|Putin,Valery Golubev,Mahmoud Ahmadinejad,Gazprom Neft,Georgia,Russia,Iran,Abubakir Shamuzov,Armenia,ArmRosgazprom,energyblog

TEXAS: Index Oil and Gas reports success on Outlar Well

Index Oil and Gas, Inc. says that initial test results for the Outlar 1 well ("Outlar") in the West Wharton prospect located in Wharton County, Texas, achieved test flow rates of approximately 1.6 million cubic feet of gas per day (mmcfpd) and 77 barrels of condensate per day (bcpd) using a 7/64ths choke.

It is anticipated that Outlar 1 will start production and begin flowing into the local pipeline grid during the 4th quarter 2007.

Outlar is the third well drilled from the Company's higher impact portfolio in the fiscal year ending March 31, 2008. Index has a 12.5% working interest for all costs associated with drilling the initial test well on the prospect to first production. It will thereafter have a 10.9375% working interest in this well and in any other wells drilled on the prospect before prospect payout. After payout of the prospect, Index's working interest will reduce to 9.375%.

Lyndon West, CEO of Index, stated, "This is a very pleasing result for Index and an important affirmation of our growth strategy. We anticipate that, subject to the performance and evaluation of this well, there will be additional follow-on wells in the project. The successes at Cason (announced September 18, 2007) and Outlar give us running room for additional wells which will in a success case add incremental volumes and production potential which has been a key objective for the 2008 portfolio."

Via: ScandOiL
Lyndon West,Texas,energyblog

MIDDLE EAST: Iran call over gas deals

France's Total and Royal Dutch Shell must finalise their gas deals with Iran by June or the giant South Pars project will go ahead without them, an Iranian official was quoted as saying.

Iran, with the world's second largest gas reserves after Russia, had previously warned the French energy major not to bow to political pressure to steer clear of the Islamic Republic.

French President Nicolas Sarkozy called last month for tougher international sanctions against Iran's disputed nuclear work and warned Total and gas firm Gaz de France to stop investing in Opec's second-biggest oil producer.

'Total and Shell have only until June 2008 to finalise their deals,' oil ministry web site Shana quoted the managing director of Pars Oil and Gas company, Ali Vakili, saying on Tuesday. Shana carried his comments on Wednesday.

'In the past few days and in order to finalize the deals ... we gave an ultimatum to Total and Shell and if we don't reach an agreement with them we will not extend the time for talks,' Vakili said.

Both Shell and Total have said rising industry costs had delayed their multi-billion dollar investments in Iran's first liquefied natural gas (LNG) project, which would be fed by the giant South pars gas field.

The Anglo-Dutch company has a preliminary deal to develop part of the South Pars gas field, despite Washington urging its allies not to invest in Iran because of nuclear work it suspects is aimed at building bombs. Tehran denies the charge.

Total agreed to take on the project to build Iran's first LNG export terminal in February 2004, with an initial start date of 2009 that has since been pushed back to 2011 after years of wrangling over terms.

Iran initially said the project was worth $2 billion, but construction costs have since spiralled throughout the energy sector.

Iran's caretaker Oil Minister Gholamhossein Nozari said in September a price in excess of $11 billion quoted by Total was too high for Iran and that his country could easily find replacements.

'We are having intensive negotiation with them (Total and Shell) in this regard,' Vakili said.

Via: Reuters

SAUDI ARABIA: Aramco to shut Rabigh refinery for a month

Saudi Aramco will shut down its 400,000 barrels per day (bpd) Rabigh refinery for at least a month for a planned turnaround from early next week, industry sources said on Wednesday.

The shutdown could last longer than a month because it also includes tying-up works that will link the plant to its new $10 billion joint-venture petrochemical complex with Japan's Sumitomo Chemical.

Via: Trade Arabia

NORTH AMERICA: Canada-Mexico Energy Deal Signals Deeper Bilateral Ties

Long restricted in their ability to do business in the Latin American country, foreign firms are taking new interest.

A new agreement between a Calgary-based oil and gas firm and Mexico's state-run energy company is being hailed as a significant deal that could signal the beginning of a shift in what defines the Canada-Mexico relationship.

Canadian company Nexen Inc. and Mexico's Pemex signed a memorandum of understanding earlier this month in which the two sides agreed to collaborate in exploration and production activities, and share technology, research and expertise.

This comes seven months after Alberta signed a co-operation agreement with the Mexican energy ministry, in which the provincial government made a point of highlighting the vast potential the Latin American country holds for Canadian investors.

Mexico has more than 12 billion barrels of proven oil reserves and more than 14.5 trillion cubic feet of proven natural gas reserves. The Alberta government says at least 25 companies from the province are operating in Mexico in a variety of areas, including the pipeline, drilling and service, and electricity sectors.

Experts agree that agriculture and mining remain the two sectors that really define the Canada-Mexico relationship–there are more than 300 Canadian mining firms in the country.

But since Mexican President Felipe Calderon's bilateral visit to Ottawa last year as president-elect when he reiterated his commitment to energy reform, the sector has garnered special attention.

When Mr. Calderon and Prime Minister Stephen Harper spent a weekend together in Quebec in August during the Mexican president's second visit to Canada in less than a year, the two topics for discussion were climate change and energy.

"Especially with declining [oil] production that we have in Mexico," Mexican Ambassador to Canada Emilio Goicoechea said last week. "It was a big issue between them and they agreed on many, many things.

"There is something happening now," he said.

In 2004, then-prime minister Paul Martin and then-president Vicente Fox established the Canada-Mexico Partnership, which set up a number of working groups that would focus on a number of areas, and foster closer working relations between the two countries.

A working group on energy was established the following year, and some projects have begun. There is also a trilateral energy working group that includes the United States in the North America Security and Prosperity Partnership.

However, Mexico's constitution places severe restrictions on outside involvement in the country's energy sector, which has all but prevented foreign companies from paying much attention to the country–until now.

With the Mexican government using Pemex as a cash cow, taking money to pay for government programs and failing to re-invest in the company, production within the country has been steadily declining.

This has prompted a search for not only ways in which new capital can be put back in into Pemex, but also an effort to modernize the company's operations, which is where foreign companies see new potential.

At the same time, the deal between Nexen and Pemex, which is similar to agreements already in place between Pemex and other foreign companies like BP, Shell and Brazil's Petrobras, focuses on sharing expertise and technology.

"I think Canadian companies, when they saw they were unable to commercialize the oil, they said they were not going to Mexico," Mr. Goicoechea said. "But now, they're seeing there's a lot of money there, there's a lot of profits."

All of this comes at a time when energy reform is being hotly debated within the Mexican political system, which Mr. Goicoechea predicted would bring about some major changes in the near future.

"This has been debated in congress and the senate for many years," Mr. Goicoechea said. "Both commissions of energy in congress and senate are studying the way to do it. I'm sure something is going to come in the next few years.

"So I think we're in the right spot. It takes time, but we're going in the right direction right now."

Nexen vice-president Dwain Lingenfelter said his company is positioning itself to take advantage not only of the short-term opportunities, but also has its foot in the door in the event energy reform in Mexico is attained.

"Ending the monopolies in that area is a matter of time, not a question of whether it will happen or not," he said.

Mr. Lingenfelter said officials in the Canadian and Mexican governments played a major role in helping get the deal through, and he credited the Canada-Mexico Partnership, as well as the added focus afforded by the Harper and Calderon governments.

"To the credit of the new government, they have continued to build upon the Canada-Mexico relationship," he said.

Mr. Lingenfelter said agriculture and mining remain the main industries that define the Canada-Mexico relationship, but energy ties are growing in number and influence.

"Energy is a newer one, but if you look at the one that is developing the quickest, it is probably on the energy side," he said, "although there is still a lot of work that needs to be done both on the regulation and legal side in order to make it flow freely."

Olga Abizaid, a Mexico expert at FOCAL, the Canadian Foundation for the Americas, said energy has been of mutual interest to the two countries since the early part of the decade, but has taken on added importance under Messrs. Calderon and Harper.

"There is a very strong push to work on this field," she said. "Obviously the Harper government has an interest in touching energy, and this was very clear when Felipe Calderon visited Canada as president-elect."

Ms. Abizaid said there is also interest in Mexico to study different economic models that govern energy sectors in different countries, and that Canada is one of those.

"It seems to be part of Pemex's strategy, to look at the different models and learn from what has been done in different parts of the world."

However, the fact that other countries are also looking at Mexico doesn't take away from the significance of the Nexen deal, she said, given that a number of other Canadian companies, notably Alberta electricity company Transalta and oil company EnCana are already in the country.

"This is perhaps moving into a deeper relationship," she said.

Ms. Abizaid said there may be some energy reforms on the way in Mexico, "but what the nature of this reform would be, we would have to look at it. I don't foresee any openings in upstream oil."

Joseph Doucette, an energy expert at the University of Alberta, described energy reform as "a very, very touchy subject in Mexico."

That, however, may give Canada an advantage if there are openings because of the perceived threat that American firms pose.

"I think that is part of the game here, and I think it provides us with a little bit of an advantage," he said, adding that this is inevitably what Nexen and other companies are hoping for.

"Firms like Nexen obviously have a very long-term focus," he said. "They don't just think of this year or five years from now. In that sense, you want to get your foot in the door, develop good relationships, and have good and contacts in case it should develop."

Mr. Doucette said the personal relationship between Messrs. Harper and Calderon has likely helped open Mexico's doors and create an environment in the southern country that favours co-operation with Canadian companies.

"I think the rapprochement, the relationship the prime minister and president have, might help, but again help more with respect to investment in Mexico than what Canadian firms do here."

MIDDLE EAST: Vladimir Putin suggests linking Caspian Sea to Black Sea

Russian President Vladimir Putin here on Tuesday suggested that a water channel be established to link Caspian Sea to the Black Sea.

He made the remarks in his speech at the second summit of the Caspian Sea littoral states.

"Such a measure will create a potential power for transit of goods through which the Caspian Sea states would receive more facilities," he added.

President Putin urged the Caspian Sea states to ratify materialization of North-South corridor.

Underscoring the need for implementation of infrastructural projects of the Caspian Sea littoral states, he said, "Today, the Caspian Sea has turned into one of main centers for exploitation and trade of oil and gas." He further criticized the inappropriate ecological status of the Caspian Sea.

Referring to importance of the Caspian Sea and its natural resources for its littoral states, President Putin called on his neighbors "to reach an agreement through dialogue and maintaining territorial integrity."

"As we cannot allow other countries to use our soil for any kind of military operation against any of the Caspian Sea littoral states, our position should be the same regarding the Caspian Sea," the Russian president reiterated.

Underscoring the importance of shipping in the Caspian Sea while bearing national flags as well as the principles of the Tehran declaration, he said Tehran declaration's principles can promote confidence building through which all other issues would be settled.

Via: Islamic Republic News Agency

MIDDLE EAST: Oil soars above $88 as Turkey threatens to strike in Iraq

Oil futures rose above $88 a barrel in trading Tuesday, their highest price ever, amid unrest in the Middle East.

The surge this week is being fueled by the threat of a Turkish military incursion in northern Iraq. The renewed tensions in the highly volatile region raised new concerns about further instability in the oil-rich Middle East. Iraq is the third-largest holder of known oil reserves, after Saudi Arabia and Iran. Turkey is a major passage for oil exports from Iraq and the Caspian Sea.

"Markets hate uncertainty," said Lawrence Goldstein, an economist at the Energy Policy Research Foundation. "The fundamentals are very supportive of high oil prices. But the majority of the latest run-up has nothing to do with the fundamentals of the markets but has to do with fear."

Despite the rally of the past week, the Organization of Petroleum Exporting Countries ruled out an emergency release of oil supplies. At its last meeting in Vienna, in September, the oil cartel agreed to a modest increase of 500,000 barrels a day in supplies.

The secretary general of OPEC, Abdalla Salem El-Badri, said in an e-mail message Tuesday that the cartel was concerned with rising prices. But he pointedly added, "There has been no interruption in crude supplies."

"While the Organization does not favor oil prices at this level, it strongly believes that fundamentals are not supporting current high prices and that the market is very well supplied," El-Badri wrote. "The rising oil prices which we are currently witnessing are, however, largely being driven by market speculators."

Crude oil for November delivery touched $88.20 a barrel on the New York Mercantile Exchange during midday trading after jumping nearly 3 percent Monday to $86.13. In late trading, oil retreated somewhat, to $87.78, up $1.65.

Oil futures, which have gained $9 in the past six trading sessions, are up more than 43 percent this year.

On an inflation-adjusted basis, oil is close to the record highs reached in the early 1980s when an energy crisis and the Iranian revolution pushed the price to about $100 in current money.

On Monday, the Turkish cabinet asked Parliament for permission to attack Kurdish separatists in northern Iraq. Analysts noted that since the U.S. invasion of Iraq in 2003, oil exports from the northern part of the country through Turkey have been sporadic because of frequent bombings of the main pipeline in the area.

But as oil producers are straining to meet the global growth in oil demand, commodity traders are focused on anything that might affect energy supplies.

Investors, commodity index funds, and other hedge funds have recently returned to the energy sector, analysts said, increasing investments in oil and other commodities and contributing to the rising prices.

Also, many investors are buying into oil to hedge against the decline in the value of the dollar. Since the beginning of the year, the dollar has declined nearly 8 percent against the euro. The euro recently traded close to its record high of more than $1.42.

Commodity markets also seem to have discounted the risks of a recession in the United States, the world's biggest oil market, after the U.S. Federal Reserve cut interest rates last month. A slowdown in the United States would reduce global oil demand, and depress prices.

Despite the high prices, global oil consumption is rising, especially in China and the Middle East.

But not everyone is convinced that demand will grow as strongly as was suggested by the International Energy Agency, an energy adviser to industrialized countries. In a monthly report released last week, the energy agency said it expected global demand to jump by 2.4 percent next year, to 88 million barrels a day.

Some analysts said this figure was unrealistically high given the slowdown in global growth. Oil demand is expected to grow by 1.5 percent to 85.9 million barrels a day in 2007.

"There is a perception that fundamentals are more bullish than they actually are," said Roger Diwan of PFC Energy, an oil consultancy. He called the forecast by the energy agency "unrealistic."

Via: IHT by Jad Mouawad
fotolog|fotolog|www.BajaeNergyBLOG.com|International Energy Agency,New York Mercantile Exchange,Roger Diwan,Lawrence Goldstein,Iraq,Caspian Sea,Saudi Arabia,PFC Energy,OPEC,Abdalla El-Badri,NYMEX,China,FED,oil futures,Turkish,Iran,energyblog

EUROASIA: Tough Caspian Talks Ahead in Iran

President Vladimir Putin was due to fly to Tehran on Tuesday for talks with Iran and other Caspian littoral states on two tough issues -- the long-running dispute on dividing the energy-rich Caspian Sea and Iran's controversial nuclear program.

On Monday in Wiesbaden, Germany, after talks with German Chancellor Angela Merkel, Putin dismissed reports of an assassination attempt planned on him during his Iran trip.

In Tehran, Putin will hold talks with Iranian President Mahmoud Ahmadinejad and the leaders of Kazakhstan, Turkmenistan and Azerbaijan to try to hammer out a solution on a Caspian border dispute that has impeded the development of several potentially lucrative offshore energy fields. A settlement could open the way for a pipeline under the Caspian that would take Central Asian gas to Europe, bypassing Russia.

But experts warned that the talks would likely produce no breakthrough on the issue, which has clouded relations among the five countries since the Soviet breakup in 1991.

Putin's visit could signal, however, how Moscow will proceed in its efforts to get Iran to stop uranium enrichment. Tehran has rejected Moscow's offer to enrich uranium in Russia, rather than in Iran, where the Bushehr nuclear reactor is being built.

Putin reiterated Monday that Moscow remained opposed to tougher sanctions on Tehran.

The international community must exercise patience and diplomacy to persuade Iran to halt uranium enrichment, Putin said. "It is pointless to frighten someone, Iran's leadership or Iran's people,'' Putin said. "They aren't afraid."

At Monday's talks in Germany, Merkel disagreed with Putin over responses to Iran's nuclear program. She said Iran had to fulfill the United Nations Security Council's demands over its nuclear program or face "a new round of sanctions.''

The Caspian dispute dates back to the Soviet era, when Iran, whose coastline is 13 percent of the Caspian shore, controlled the part of the sea on its side of the land border with the Soviet Union.

Leaders of the five countries first

held a summit to discuss the problem in 2002 in Ashgabat, Turkmenistan. Iran offered to split the sea equally among the countries, with each getting 20 percent.

Russia, Kazakhstan and Azerbaijan proposed a different arrangement, which would split up the sea in proportion to the size of each country's shoreline. Under this proposal, Kazakhstan would emerge the biggest winner, with 27 percent, while Iran would get the smallest portion, just 13 percent. Russia would receive 19 percent, Turkmenistan 23 percent and Azerbaijan 18 percent.

Under the late President Saparmurat Niyazov, Turkmenistan was often the unknown factor in the talks, as he periodically appeared to favor one side or the other.

In contrast to the mercurial Niyazov, Turkmenistan's new president, Gurbanguly Berdymukhammedov, has welcomed foreign investors back into his country, raising hopes of a breakthrough that could see long-disputed Caspian fields finally being developed.

Under Berdymukhammedov, Turkmenistan is likely to push vigorously for a solution, said Radzhab Safarov, director of the Moscow-based Center for the Study of Contemporary Iran. Turkmenistan could invite massive Western investment into its sector of the Caspian if the water border were settled, Safarov said.

But Iran will most likely stand firm on refusing a 13 percent share of the sea, Safarov said. Russia could attempt to win Iran over by giving security guarantees, a renewed commitment to complete the stalled Bushehr reactor project and promises to sell it more sophisticated weapons systems, Safarov said.

"In return, Iran would probably consider agreeing," he said, adding that there would still be only a small chance of a deal.

But a deal on the Caspian issue would not be in Russia's short-term interests, as it would give Kazakhstan and Turkmenistan the option to build a pipeline under the Caspian to Azerbaijan that would get their gas to Europe without going through Russia, said Chris Weafer, chief strategist at UralSib.

Russia wants to keep a tight grip on the European Union in terms of gas supplies while it negotiates a new strategic partnership agreement and is eager to maximize Gazprom's opportunities to invest there, he said.

Safarov said the Caspian Sea summit was only a pretext for Putin to meet with Ahmadinejad. "If it weren't for this format, Putin wouldn't be able to make the visit," Safarov said. "It would infuriate the Western states that view any cooperation with Iran as questionable."

Kazakh President Nursultan Nazarbayev arrived in Tehran ahead of Putin on Monday for discussions with Ahmadinejad. A statement from the Kazakh president did not say whether the two countries had reached an agreement on the Caspian, Interfax reported.

In nuclear talks, Putin is in a strong position to influence the Iranian leadership, which under Ahmadinejad has grown increasingly isolated outside the Islamic world, said Vladimir Sotnikov, an analyst at the Russian Academy of Sciences' Institute of Oriental Studies.

Putin and Ahmadinejad have met face-to-face at least twice before -- at the UN and during the Shanghai Cooperation Organization summit in Kyrgyzstan last year.

"The real Russian position on Iran is somewhat closer to the U.S. position than many think," said Clifford Kupchan, a senior analyst at the Eurasia Group, a Washington-based risk consultancy. "Putin will make a real effort to promote a solution."

Kupchan argued that while the chances for a breakthrough were slight because there were no signs that the Iranians would stop their nuclear program, Putin's efforts at diplomacy might improve his strained ties with the United States.

"Whatever he does will not go unnoticed by Washington," Kupchan said.

Via: The Moscow Times | by Anatoly Medetsky and Nikolaus von Twickel
fotolog|fotolog|www.BajaeNergyBLOG.com|

LONDON: Seventh International Petroleum Geology Conference launched

This week the Geological Society (GeolSoc), Energy Institute (EI) and Petroleum Exploration Society of Great Britain (PESGB) will be jointly hosting an evening reception to launch the seventh in their series of Petroleum Geology Conferences (PGCVII). Held Thursday 18 October at The Geological Society, Burlington House, Piccadilly, London, this reception will formally launch PGCVII and issue a call for papers.

For the last 30 years, the PGC conferences have traditionally focused on the petroleum geology of northwest Europe and are widely regarded for being at the forefront of petroleum geoscience. This time the remit is truly international. At this launch reception, Bernie Vining, PGCVII Technical Chairman, and Richard Hardman, Fundraising Committee Chairman, will provide further details of the conference’s innovative programme, which will include debates on ‘Geocontroversies’, and virtual field trips to consider structural, stratigraphic, clastic and carbonate phenomena.

PGCVII will bring together the world’s petroleum geoscientists to share the scientific issues of the day from a global perspective. The deadline for abstracts is 30 May 2008, and the organisers are looking for papers under four specific regional areas:

Europe; Russia, the Former Soviet Union and the Circum Artic; North Africa and the Middle East; and Passive Margins of the Gulf of Mexico, Atlantic and Indian Oceans.

PGCVII will be held at the QEII Conference Centre in London, 31 March – 2 April 2009.

Via: Scandinacian Oil & Gas
fotolog|fotolog|CONFERENCIA|QEII Conference Centre,PGCVII,Geological Society,Energy Institute,Petroleum Exploration Society,GeolSoc,PESGB,Gulf of Mexico,Russia,Soviet Union,europe,energyblog

UKRAINE: Timoshenko puts blame for gas explosion in Dnepropetrovsk upon Russian Vekselber

Leader of BYT, born in Dnepropetrovsk, Yulia Timoshenko puts the blame for explosion of gas at an apartment block in the city of Dnepropetrovsk upon owners of Dneprogaz Company, a REGNUM correspondent quotes as saying it to reporters yesterday.

“The government is to blame by 300%. Those are to blame as well who own the city gas company, Dneprogaz. And they will be taken to the account,” she said. According to Timoshenko, Dneprogaz has recently reduced its technical equipment and staff.

Yulia Timoshenko also informed that today, apart from rendering urgent assistance to people, it is necessary either to return such companies to the state ownership, or to establish such technical procedure legally that would not allow private owners of the companies economizing on the hardware. The BYT leader informed that the law would be prepared “exactly from tomorrow.”

Dneprogaz is not a state-run company; it was privatized as early as in mid-90s. The company is controlled by Complex Energy Systems Company (Russia) belonging to Russian Viktor Vekselberg.

Via: REGNUM
Dneprogaz,Yulia Timoshenko,Complex Energy Systems Company,Dnepropetrovsk,BYT,Ukraine,energyblog

EUROASIA: Ukraine turns to be owing $2 billion to Gazprom

Russian Prime Minister Viktor Zubkov said that the debt of Ukrainian companies for the Russian gas to Gazprom is $ 2 billion, and offered to settle the debt in the amount of $1,2 billion by transferring ownership of the gas, which is now in the underground storage facilities of RosUkrEnergo, to the Russian gas monopoly.

Viktor Zubkov made the statement at joint briefing and with Ukrainian Prime Minister Viktor Yanukovich in Moscow yesterday, reports a REGNUM correspondent.

“These reserves will be sent to implementing of Gazprom export obligations as well,” Zubkov added.

He also said that under the agreement, the remaining $929 million of the debt would be repaid through own capital of UkrGazEnergo and Ukraine. The head of the Russian government stressed that he expected full repayment of the Ukrainian debt for gas to NaftogazGazprom till November 1, fully provided with adequate control by the Ukrainian authorities.

Earlier, Gazprom said the amount of the debt was $1.3 billion.

Via: REGNUM

MIDDLE EAST: Iran in search of new gas reserves

The National Iranian Oil Company has launched a major gas exploration operation in two of the country's northeastern provinces.

The company has kicked off its new exploration project in the provinces of Northern Khorasan and Khorasan Razavi, with the aim of finding new gas reserves in the region.

According to recent reports, extensive research has been carried out in the area, including two-dimensional seismic surveys and non-seismic geophysical studies.

If successful, the operation will lead to the drilling activities in the region, an expert said. Up to 7,700,000 Euros have been invested in the project, he added.

At the moment, around 89 thousand families in the province of Northern Khorasan benefit from household gas.

Via: PressTV

IRAN: Iranian issues permit for temporary gasoline imports

Iran's acting oil minister, Gholam-Hossein Nozari, has issued the permit for importing gasoline temporarily, a senior official said Monday.

The National Iranian Oil Products Refining and Distribution Co (NIOPRDC) managing director, Mohammad-Reza Nematzadeh, added that Nozari, the Oil Ministry's caretaker and National Iranian Oil Co (NIOC) managing director, gave the go-ahead as the 2.5 billion dollar budget ran out.

The NIOPRDC chief was quoted by PIN as saying that the NIOC would provide the currency needed for imports of the commodity.

Based on the permit, he added, 14 to 15 million liters of gasoline would be imported per day.

Iran began rationing gasoline from June 22 and the Oil Ministry has allocated each private car 100 liters per month at about 10 cents per liter for regular and 15 cents for premium gasoline. Under the plan, gasoline is only supplied through smart card, an initiative taken by President Mahmoud Ahmadinejad to stop lavish fuel consumption by over seven million cars nationwide.

Gasoline rationing would help the government save over three billion dollars until March, Oil Ministry's director for
international affairs said.

Hojatollah Ghanimifard added that gasoline consumption had currently reached 15 million liters per day from 35-36 million liters per day before the rationing plan came into effect in June.

The Islamic Republic spent about seven billion dollars annually on gasoline imports, he said, adding the figure would be decreased to four billion dollars in the near future.

Via: Islamic Republic News Agency
Hojatollah Ghanimifard,Iran,Mahmoud Ahmadinejad,NIOC,Gholam-Hossein Nozari,Mohammad-Reza Nematzadeh,NIOPRDC,energyblog

MIDDLE EAST: First SP refinery overhauled, to go on stream soon

South Pars Technical Repair and Maintenance Company (TMC) managing director, Mohammad-Kazem Bahmani, said the first refinery of South Pars (SP) field has been overhauled and would become operational in the near future.

The refinery of the first phase of SP field has undergone a 14 day overhaul and is ready for operation at full capacity, PIN quoted Bahmani as saying.

He added the offshore platform and refinery of the first phase were overhauled by the TMC engineers in Assalouyeh, southern province of Bushehr.

"The pipeline of the first phase faces no problem for transferring gas from the offshore platform to the refinery," said the official, adding all safety valves were transferred from the offshore platform and repaired.

The refinery of SP Phase one was put into operation in late October 2004, producing 25 million cubic meters of natural gas, 40,000 barrels of gas condensates, and 200 tons of sulfur per day.

Via: Islamic Republic News Agency
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