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In Brief(Oil & Gas News Via Acquire Media NewsEdge) Halliburton wins Aramco contract NEW YORK: Halliburton has won a broad five-year oilfield service contract from Saudi Aramco to develop wells in the world's largest oil field, South Ghawar, the company said. Halliburton did not release the financial terms of the deal, which includes an option for a five-year extension. Described by analysts at Simmons & Co as a big win in a "zero-sum game" with the competition, the award lifted Halliburton shares 2 per cent, while Schlumberger slipped 0.7 per cent and Baker Hughes fell 2 per cent. | Pertamina plans big capex jump JAKARTA: Indonesia's state oil and gas firm Pertamina plans a 77 per cent increase in capital expenditure next year, in order to acquire more oil and gas blocks, finance director Ferederick Siahaan said. Pertamina wants to expand its upstream activities, as it needs to increase oil production following Indonesia's steady slide in overall oil output, and is also looking at several potential gas fields. "For capex, in 2010, we plan 39 trillion rupiah," or $4.15 billion, Siahaan told reporters. PTT sees $2.5bn spending BANGKOK: PTT, Thailand's biggest energy firm, said it expected higher revenue and net profit next year due to stronger demand and higher oil prices. The company planned to spend 82 billion baht ($2.5 billion) next year on investment in continuing projects, chief executive Prasert Bunsumpun told reporters. Bapco restructuring soon MANAMA: US consulting firm McKinsey and Company has been brought in to help boost productivity and reduce costs, Bahrain's Oil and Gas Minister Dr Abdul-Hussain Bin Ali Mirza confirmed .He said it could be months before plans take shape and added the final report was not due for a year. However, he reassured the 3,200 staff that it did not automatically mean job cuts."There should be no fear among employees on their losing their jobs," he said. Dragon investors reject bid LONDON: The largest minority investor in oil explorer Dragon Oil said it would reject a takeover bid from controlling shareholder Emirates National Oil Company that values Dragon at $3.9 billion. Baillie Gifford & Co said in a statement emailed that the 455 pence/share offer "materially understates the fundamental and strategic value" of Turkmenistan-focused Dragon. Sinochem to buy Kazakh firm BEIJING: China's Sinochem is near a $320 million deal to buy an independent oil company in Kazakhstan, industry sources told Reuters, deepening Chinese state investment in the central Asian nation's oil sector. "The deal will be concluded soon," said one source familiar with the talks, adding that the target firm, Sumbe, is currently producing about 4,000 barrels per day of oil. A second source familiar with the investment told Reuters that the Kazakh firm holds a remaining recoverable oil reserve of some 66 million barrels. A Sinochem media relations official declined to comment. CNOOC to buy stakes in Statoil HONG KONG/OSLO: CNOOC has agreed to buy a minority stake in four prospects in the Gulf of Mexico from Norway's Statoil, opening crude oil reserves in the US Gulf to China for the first time. CNOOC will have a 10 per cent to 20 per cent interest in the four exploration areas, CNOOC spokesman Xiao Zongwei told Reuters. But the production timetable could not be confirmed, as the areas would require a relatively long exploration period, he added. Statoil spokeswoman Mari Dotterud said CNNOC on October 29 had agreed to buy a 20 per cent stake in the Tucker lease, as well as 10 per cent in each of the Logan, Krakatoa and Cobra leases, while Statoil remained operator in all leases. Manila targets geothermal HONG KONG: The Philippine government aims to approve contracts to explore and develop the country's massive geothermal energy resources, which could attract over $2.5 billion in private investment, a department of energy official said. The Philippines, the world's second-largest developer of geothermal energy, plans to approve 19 deals in the next five months to allow foreign and domestic companies accesss to geothermal projects, the division chief for geothermal energy at the Philipine Energy Department, Alejandro Oanes, told Reuters. Philippine power producer Energy Development and Envent, a unit of Geysir Green Energy, one of Iceland's biggest geothermal energy companies, were among groups vying for contracts to tap the country's geothermal resources, he said. Idemitsu restarts CDU TOKYO: Idemitsu Kosan, Japan's third-largest refiner, said it has restarted a 120,000 barrels per day (bpd) crude distillation unit (CDU) at its Tokuyama refinery after an unplanned shutdown due to a problem. The restart came a few days earlier than the company's initial projection. It had said the CDU was likely to be shut for about 10 days. KNOC to get $1bn Kexim credit SEOUL: The Export-Import Bank of Korea (Kexim) will provide $1 billion in credit to Korea National Oil Corp (KNOC) to finance the state-run energy developer's overseas asset acquisitions, the state-run bank said. Kexim said in a statement that the credit line was aimed at helping KNOC aggressively secure foreign resource assets to be among the world's 50 resource developers by 2012. Mitsubishi scraps derivatives unit TOKYO/DUBAI: Energy firm Petro-Diamond Risk Management said it will close its global derivatives operations, looking to end its role as market maker in the volatile oil trade hedging business. Mitsubishi, Japan's top trading house, and the firm's parent, decided to wind down the business, and soon after began notifying Petro-Diamond Risk clients it will honour all its deals through March 2012, said a London-based official with the unit, who is authorised to speak to the media. It has yet to decide how deals that mature after that date will be handled, the official told Reuters. They could be handled by other energy traders or separate Mitsubishi entities, depending on the client's preference, the official added. PTT Aromatics returns to profit BANGKOK: Thailand's PTT Aromatics and Refining reported a net profit in the third quarter, turning round from a net loss a year earlier, due to higher petrochemical income and an absence of inventory losses. PTTAR, the country's largest integrated aromatics refinery, posted a July-September net profit of 1.71 billion baht ($51.37 million), or 0.58 baht per share, versus a 3.4 billion baht loss in the same period last year. Profit was down from 4.21 billion baht in the previous quarter due to weaker refining margins. Showa Shell scales down runs TOKYO: Japan's Showa Shell Sekiyu plans to refine about 1 per cent less crude in October-December than a year ago, down from an earlier plan, reflecting expectations for a continued fall in domestic demand. The nation's fifth-largest oil refiner lowered the crude runs from an initial plan that would have kept crude production nearly flat for the quarter, as it revised down its projections for domestic refined product sales, a company spokesman said. Teton files for bankruptcy NEW YORK: Independent oil and gas exploration and production company Teton Energy said it plans to sell its assets to Rise Energy Partners II for $18.7 million through an auction supervised by a US bankruptcy court. In a Chapter 11 petition, Teton listed assets of $24.2 million and debt of $44.3 million. Under the proposed plan, Rise Energy Partners will give $11.7 million in cash while $7 million will be contributed in the form of a loan. The money will be used to pay off Teton's creditors. Shareholders of the Denver, Colorado-based company are expected to be wiped out completely unless the company gets a substantially higher and better offer at the auction, Teton said. Alon restarts SRU at Big Spring TORONTO: Alon USA was restarting the sulphur recovery unit 1 at its 70,000 barrel-per-day refinery in Big Spring, Texas, according to a filing made with state enviromental regulators over the weekend. In a filing made with the Texas Commission for Environmental Quality, the company said the unit was in a low charge rate during the start-up to minimize emissions. Mexico, Braskem sign pact MEXICO CITY: Mexico's state oil company Pemex said it signed a letter of intent with a consortium led by Brazil's Braskem to supply raw materials for a proposed petrochemicals plant the consortium may build in Mexico. Pemex said it would supply 66,000 barrels per day of ethane to the project which would allow the consortium to build a world-scale 1 million tonnes per year ethylene cracker on the coast of the Gulf of Mexico. Braskem will partner with privately-held Mexican petrochemicals firm Grupo Idesa in the proposed cracker. Canada steps up oil sands push CALGARY: Canada has mounted its biggest campaign yet to sell the United States on the energy security benefits of the oil sands as Washington debates new environmental policy, the country's energy minister said. Canadian Natural Resources Minister Lisa Raitt said she and her staff are lobbying interests in the United States at all levels, trying to send the message that the huge heavy-oil resource in Alberta is being developed responsibly and that US input on environmental fixes is welcome. Lukoil gets $300m loan MOSCOW: The European Bank for Reconstruction and Development (EBRD) has lent $300 million to Russia's largest privately-held oil company Lukoil, the bank said. The loan will be used to upgrade Lukoil's TGK-8 generating company, which is aiming to reduce greenhouse gases emissions, the bank said. Repsol mulls dividend cut MADRID: Spanish oil major Repsol said its board had discussed a possible cut to the dividend to be paid against 2009 earnings. Spanish media reported that Repsol chairman Antonio Brufau had suggested cutting the dividend to 0.85 euros a share, a 20 per cent cut on 2008. The main shareholder Sacyr had opposed the suggestion while shareholders Criteria and Pemex, Mexico's state oil company, supported it, media said. "The dividend suggestion was a start to a discussion, not a formal proposal," a Repsol spokesman said. Shell to pay for violations OAKLAND: California was awarded $19.5 million in a settlement against Royal Dutch Shell's US unit for not storing fuel properly at filling stations in the state, Attorney General Jerry Brown said. "Shell Oil company disregarded the state's underground fuel storage and hazardous waste laws, committing hundreds of environmental violations at its gasoline stations across California," Brown said in a statement. The attorney general's office, along with the California State Water Resources Control Board, investigated more than 1,000 Shell stations. Sistema eyes oil firm Russneft MOSCOW: Russian oil-to-telecoms group Sistema is in talks to acquire mid-sized oil company Russneft from tycoon Oleg Deripaska after having bought an oil and refining hub in the Urals this year, a newspaper reported. Kommersant business daily said that Sistema chairman Vladimir Yevtushenkov had discussed the possibility of purchasing Russneft several times, but that the potential deal was complicated by Russneft's debt of around $6.65 billion. Snoehvit LNG output restarts OSLO: Norway's Statoil has restarted gas production at a liquefaction plant serving its Snoehvit gas field in the Arctic after a three-month maintenance shutdown, the company said. "Hammerfest LNG is expected to be capable of operating at full capacity after the turnaround, and this will be verified by a performance test at the end of the year," Statoil said. Carrizo Oil Q3 beats estimates NEW YORK: Independent oil and gas exploration company Carrizo Oil and Gas reported a third-quarter adjusted profit that beat analysts' expectations, helped by higher production, sending its shares up as much as 9 per cent. For the third quarter, net loss was $4.8 million, or 15 cents a share, compared with profit of $65.7 million, or $2.12 a share, last year. Excluding items, net income was 37 cents a share. Quarterly adjusted revenues from the sale of oil and natural gas production, which includes oil and gas revenues and realised hedge settlements, fell 20 per cent to $46 million. ConocoPhillips completes work TORONTO: ConocoPhillips said it completed planned work at its 247,000 barrel per day refinery in Sweeny, Texas. Several key units, including a gasoline-making catalytic cracking unit, were down for work which began in the third quarter. Ensco plans to rebase to UK SAN FRANCISCO: Ensco International is setting off on what is now a well-worn route to Europe for oil and gas drilling rig contractors, by laying out plans to relocate its corporate headquarters to the UK. Ensco said achieving a global effective tax rate comparable to rivals was one reason for the move, along with improved access to both European institutional investors and its clients outside the depressed North American drilling market. MarkWest Q3 profit lags Street NEW YORK: Oil and gas processor MarkWest Energy Partners posted third-quarter earnings that just missed estimates, hurt partly by lower commodity prices. For the quarter, the company posted net income of $8.3 million, or 13 cents a share, compared with net income of $186.5 million, or $3.24 a share, in the year-ago quarter. Revenue fell 62 per cent to $217.6 million. Analysts on an average expected earnings of 14 cents a share, on revenue of $194.4 million, according to Thomson Reuters I/B/E/S. Tesoro restarting HCU HOUSTON: Tesoro said a hydrocracking unit was restarting at its 100,000 barrel per day (bpd) Los Angeles-area refinery in Wilmington, California, after a planned overhaul. "The hydrocracker is restarting but will take several days to reach planned rates," said Tesoro spokesman Lynn Westfall. Tetra Technologies' strong Q3 BANGALORE: Tetra Technologies posted strong third-quarter results on increased repair work from damages caused by Hurricane Ike, and said it was beginning to see signs of deepwater activity increasing in the Gulf of Mexico, sending its shares to a new year-high. The oil and gas services company also expects to benefit as markets appear to have bottomed in its fluids segment, which manufactures and markets clear brine fluids to the oil and gas industry for use in well drilling and workover operations. Clean Energy posts Q3 loss NEW YORK: Natural gas provider Clean Energy Fuels reported a wider-than-expected quarterly loss, as a fall in natural gas prices weighed on revenue. However, gasoline gallon equivalents delivered during the quarter rose 58 per cent over last year. For the third quarter, the company reported a loss of $18.5 million, or 31 cents a share, compared with a loss of $12.1 million, or 27 cents a share, last year. Revenue at the Seal Beach, California-based company fell 8 per cent to $31.2 million. Crescent Point to buy TriAxon BANGALORE: Canada's Crescent Point Energy said it agreed to acquire privately held TriAxon Resources for about C$231.4 million ($220.4 million), mainly to expand its asset base in Bakken and Viking light oil resource plays in Saskatchewan. The Calgary-based oil explorer said it would offer 0.18 of its shares for each TriAxon share and assume about C$17.3 million of TriAxon's net debt. Frontier sees run rates down TORONTO: Frontier Oil said it estimates runs at its El Dorado, Kansas refinery to be 81,500 barrels per day (bpd) as work continues on the gasoline-making fluid catalytic cracker and gofiner. The refinery, which is rated at 130,000 bpd, ran at 62,300 bpd in October due to the onset of the maintenance. Runs are estimated to be 43,100 bpd at the Cheyenne, Wyoming refinery, which can run at 52,000 bpd. Quicksilver Q3 profit rises NEW YORK: Oil and natural gas company Quicksilver Resources reported a third-quarter adjusted profit that beat market estimates, helped by higher production and lower expenses, sending its shares up 7 per cent. For the quarter, average production rose 12 per cent to 311 million cubic feet equivalent per day (mmcfed), mainly due to a 14 per cent growth at the company's Fort Worth Basin properties, chief financial officer Philip Cook said on a conference call. Tesoro profit down 87pc HOUSTON: Tesoro said it cut its dividend in half as weak demand for fuel hurt margins and contributed to an 87 per cent slide in the US refiner's third-quarter profit. The results topped Wall Street expectations, but analysts said investors were more focused on the dividend cut, and the company's shares fell 3.5 per cent. Aramco revives talks FUZHOU: Saudi Aramco is in revived discussions with Sinopec to invest in the Chinese refiner's 200,000 barrel-per-day (bpd) Qingdao refinery in east China, Saudi Aramco's chief executive Khalid Al-Falih said. Sinopec said that it was hopeful the two sides would reach a deal in what would be Aramco's second refinery investment in China after a $5 billion refinery and petrochemical venture in southeast Fujian province that started up earlier this year. Saudi adopts ASCI RABIGH: Saudi Aramco said its decision to adopt the Argus Sour Crude Index (ASCI) was due to "wild" variations in the barrels traded on the US Gulf Coast and those priced of West Texas Intermediate (WTI). "We were finding every month there were wild variations between the sour crudes that were traded on the spot market for lifting in the US Gulf Coast ... and the Nymex or WTI priced (cargoes) at Cushing, Oklahoma," Aramco's chief executive Khalid Al-Falih told Reuters on the sidelines of an inauguration event. Iran, Russia in talks TEHRAN: Iran's oil ministry said it was in talks with a Russian oil company to develop three oilfields in the Islamic state, the semi-official Mehr news agency reported. Iran, the world's fifth-largest crude exporter, has struggled to attract the money and technology to develop its oil and gas fields as international sanctions and political pressures have kept foreign firms away. "We are negotiating with ... a Russian company to develop the three oil fields in southwestern Iran," said Alireza Zeighami, managing director of Iran's Central Oilfields Company, Mehr reported. Saudi shipments up TOKYO/SINGAPORE: Saudi Arabia has increased supply to oil firms with global systems, while one Asian customer expected to receive full contracted volume for the first time in a year, industry sources said. But other lifters of crude from the world's biggest oil exporter expected steady supplies for December compared with November and most were still receiving much less than maximum levels. "It's between 5 and 10 per cent more," one source said, with reference to supplies to global firms for December compared with November. Aramco plans gas boost RIYADH: Saudi Aramco plans to raise its daily gas supplies by 30 per cent within five years to 8 billion cubic feet, Al-Hayat newspaper quoted its chief executive Khalid Al-Falih as saying. Aramco will also increase its daily supplies in ethane to 1 billion cubic feet and those of liquefied natural gas (LNG) to 850,000 barrels, Al-Hayat quoted him as saying. "Such increases will support the creation of many petrochemical industries," he said. Demand for gas in the kingdom for power and industry is soaring due to an economic boom fuelled by the oil price rally of 2002-2008. Saudi to finalise plant RABIGH: Saudi Arabia will shortly finalise plans to build the largest ever gas plant in the kingdom to supply utilities and some industries, Saudi Aramco's chief executive, Khalid Al-Falih said. The new gas plant is expected to process more than 1.8 billion cubic feet per day (cfd) of gas, Falih told Reuters during an interview. This plant (Wasit) will be the biggest gas plant we have ever built ... and this will go a long way to meet rising demand for utilities,' Falih said. (c) 2009 Al Hilal Publishing & Marketing Group Provided by Syndigate.info an Albawaba.com company |