Kuwaiti council approves board
KUWAIT: Kuwait’s Council of Ministers said it approved the new board of directors for Kuwait Petroleum Corp (KPC), nominated in a major reshuffle of the government body that runs the Opec-member state’s oil sector.
China plan
SYDNEY: China, the world’s second-biggest oil consumer, may begin filling a strategic oil stockpile in the next year as demand at home surges and concerns mount over global supply disruptions, a senior government official said.
Cargoes needed
JAKARTA: Indonesia will need 42 cargoes of LNG to make up for a shortfall in supplies this year from its Bontang plant, state oil firm Pertamina said.
Opec stance
SYDNEY: Opec may set a new target range for oil prices and would like to see crude down from current lofty levels closer to $30 per barrel, Opec president Purnomo Yusgiantoro said.
Gas Natural set
MADRID: Spanish gas transport firm Gas Natural said it had completed its first wholesale, direct sale of LNG to South Korea, part of a plan to expand in Asia.
Gas struck
KUALA LUMPUR: Malaysia’s Petronas and oil giant Royal Dutch/Shell Group have made a fresh discovery in an area shaping up to be a new gas province for the country, company officials said.
Repairs date
SINGAPORE: Beijing Yanhua Petrochemical Corp is planning a maintenance shutdown at its cracking unit in 2006, skipping any major works next year, a company official said.
Exports cut
SINGAPORE: Taiwan’s Formosa Petrochemical Corpmay cut spot kerosene exports during the peak demand season in winter due to reduced output to make way for production of ultra low sulphur diesel, traders said.
Kogas in talks
SEOUL: Korea Gas Corp (Kogas), the world’s top buyer of LNG, said it was in talks with four local shipping firms to set up an LNG carrier consortium in a bid to cut transport costs.
Gas oil import to rebound
SINGAPORE: China’s gas oil imports in September will rebound to around 150,000 tonnes from 40,000 tonnes in August, but are still below the average monthly imports in the first seven months, Chinese state oil traders said.
Offer accepted
SINGAPORE: Buyers have accepted an offer by Vietnam’s state oil marketer, Petechim, to set the Bach Ho official selling price (OSP) at $2.79 per barrel above Minas quotes for October 2004-March 2005 supplies, term lifters said.
OSP set
TOKYO: Malaysia’s official selling price (OSP) for Tapis crude in August is calculated at $47.60 per barrel, $6.48 higher than the July OSP.
Jakarta move
TOKYO: The official Indonesian crude price (ICP) for the country’s main grade, Minas, has been calculated at $41.42 per barrel for August, up $5.14 from July, an industry source said.
IOC pact
NEW DELHI: State-run Indian Oil Corp (IOC) has signed an agreement with Japanese trader Mitsui to swap 40,000 bpd of Nigerian term crude, IOC chairman M S Ramachandran said.
Philippines set
BEIJING: The Philippines bought 140 buses running on compressed natural gas from China as part of a programme to cut its dependence on imported oil, Energy Secretary Vincent Perez said.
Gasoline sought
SINGAPORE: Vietnam’s Saigon Petroleum is seeking via tender two 10,000-tonne parcels of 92-octane gasoline for delivery in October.
Tender issued
SINGAPORE: State utility Korea East-West Power Co (Kewpco) has issued a tender to buy two 72,000-tonne cargoes of medium-sulphur fuel oil (MSFO) for October delivery, sources said.
ONGC set to swap stakes
NEW DELHI: India’s Oil and Natural Gas Corp (ONGC) will acquire stakes in two exploration areas awarded to Cairn Energy and give the British company a share in two other blocks, Oil Minister Mani Shankar Aiyar said.
Units ready
OSLO: Three large refrigerating compressors for a gas liquefaction plant in northern Norway linked to the Snoehvit field are ready for delivery after a six-month delay, Norway’s oil group Statoil said.
Petro Tech plan
LIMA, Peru: US-based oil company Petro Tech will spend at least $22 million exploring for crude on Peru’s Pacific sea bed over the next seven years and could invest more than $250 million if it strikes oil, state energy company Perupetro said.
Kvaerner in deal
OSLO: Norwegian engineering and construction group Aker Kvaerner said that it had won a contract worth 4.3 billion Norwegian crowns ($627.2 million) for work on an onshore plant for the huge Ormen Lange gasfield.
Firm over
NEW DELHI: India’s Oil and Natural Gas Corp (ONGC) has agreed to buy a 30 per cent stake in an offshore exploration area in Ivory Coast from Vanco Energy Co, USA, state-run ONGC said.
Driller in pact
OSLO: Norwegian oil driller Ocean Rig has won an order from Britain’s BP for two Angola offshore wells and options on two additional wells off the west African country, the firm said.
Samir set
RABAT: Morocco’s sole oil refiner Samir will start drilling an exploration well at its inshore Sidi Kacem block this month, the company said.
Showa rules out repairs
TOKYO: Japanese chemical and hard disk maker Showa Denko K K has no plans for maintenance at its 653,000 tonne-per-year naphtha cracker in western Japan next year, a company spokesman said.
Ethylene sold
SINGAPORE: Japanese trader Mitsui Oil Asia has sold about 3,000 tonnes of ethylene at $1,250 per tonne on a cost-and-freight basis to a buyer in Indonesia, trade sources said.
Naphtha bought
SINGAPORE: India’s Haldia Petrochemicals Ltd has bought via tender 75,000 tonnes of high paraffinic naphtha for September and October deliveries at stronger premiums compared to its last tender, sources said.
ONGC move
SINGAPORE: India’s Oil and Natural Gas Corporation Ltd. (ONGC) has sold via tender 35,000 tonnes of aromatic-rich naphtha for loading in mid-September, traders said.
PDC buys
SINGAPORE: Vietnam’s PDC has bought via tender 10,000 tonnes of 90-octane gasoline from China’s Sinopec Corp for delivery in early September, traders said.
IOC move
LONDON: India’s IOC bought two very large crude carriers, or about four million barrels, of late October or November-loading Nigerian crude oil in a tender, trading sources said.
BPCL tender
SINGAPORE: India’s state-run refiner Bharat Petroleum Corp (BPCL) has issued a tender to buy sweet crude and Yemeni Masila crude for October to December-lifting, traders said.
Fuel oil bought
SINGAPORE: Taiwan’s Chinese Petroleum Corp (CPC) has bought by tender 38,000 tonnes of low-sulphur fuel oil for September 21 and October 15 delivery, at a lower-than-expected price from Japan’s Mitsui Oil Asia, industry sources said.
Maintenance set
LONDON: Algeria’s state-owned oil company Sonatrach will shut its 56,000 barrels per day Arzew refinery for scheduled maintenance in September, a source said.
Showa rules out repairs
TOKYO: Japanese chemical and hard disk maker Showa Denko K K has no plans for maintenance at its 653,000 tonne-per-year naphtha cracker in western Japan next year, a company spokesman said.
Ethylene sold
SINGAPORE: Japanese trader Mitsui Oil Asia has sold about 3,000 tonnes of ethylene at $1,250 per tonne on a cost-and-freight basis to a buyer in Indonesia, trade sources said.
Naphtha bought
SINGAPORE: India’s Haldia Petrochemicals Ltd has bought via tender 75,000 tonnes of high paraffinic naphtha for September and October deliveries at stronger premiums compared to its last tender, sources said.
ONGC move
SINGAPORE: India’s Oil and Natural Gas Corporation Ltd. (ONGC) has sold via tender 35,000 tonnes of aromatic-rich naphtha for loading in mid-September, traders said.
PDC buys
SINGAPORE: Vietnam’s PDC has bought via tender 10,000 tonnes of 90-octane gasoline from China’s Sinopec Corp for delivery in early September, traders said.
IOC move
LONDON: India’s IOC bought two very large crude carriers, or about four million barrels, of late October or November-loading Nigerian crude oil in a tender, trading sources said.
BPCL tender
SINGAPORE: India’s state-run refiner Bharat Petroleum Corp (BPCL) has issued a tender to buy sweet crude and Yemeni Masila crude for October to December-lifting, traders said.
Fuel oil bought
SINGAPORE: Taiwan’s Chinese Petroleum Corp (CPC) has bought by tender 38,000 tonnes of low-sulphur fuel oil for September 21 and October 15 delivery, at a lower-than-expected price from Japan’s Mitsui Oil Asia, industry sources said.
Maintenance set
LONDON: Algeria’s state-owned oil company Sonatrach will shut its 56,000 barrels per day Arzew refinery for scheduled maintenance in September, a source said.
Shell shuts gasoline unit
LONDON: Shell has shut a gasoline production unit at its 80,000 barrels per day Berre refinery in southern France for unscheduled work due to a problem, oil products traders said.
Fuel oil sold
SINGAPORE: Thailand’s Alliance Refining Co (ARC) has sold 30,000 tonnes of high sulphur fuel oil at a discount of $3-$4 per tonne to Singapore 380-centistoke (cst) quotes, traders said.
Petron move
SINGAPORE: The Philippines’ Petron Corp has tendered to buy two cargoes of fuel oil cargoes for early-October delivery, industry sources said.
CPC offer
SINGAPORE: Taiwan’s Chinese Petroleum Corp (CPC) has offered via tender 30,000 tonnes of gasoline for October for lifting from Kaohsiung on a free-on-board basis, traders said.
Tenders issued
SINGAPORE: Vietnam’s oil importers have issued tenders seeking nearly 100,000 tonnes of high-sulphur gas oil for deliveries between late September and October, traders said.
Fuel bought
SINGAPORE: China Aviation Oil, has bought via tender 630,000 tonnes of jet fuel for October to December, traders said, raising its total annual volume by 30.2 per cent from last year.
Reliance wins
SINGAPORE: India’s Reliance Industries Ltd has won a tender to supply Sri Lanka’s Ceylon Petroleum Corp. (Ceypetco) 180,000 barrels of gas oil and 120,000 barrels of gasoline for late September, a source said.
Firm buys
SINGAPORE: Taiwan’s Chinese Petroleum Corp (CPC) has bought three Very Large Crude Carriers (VLCCs) of West African crude for October loading in its tender for sweet crude, traders said.
Shell shuts gasoline unit
LONDON: Shell has shut a gasoline production unit at its 80,000 barrels per day Berre refinery in southern France for unscheduled work due to a problem, oil products traders said.
Fuel oil sold
SINGAPORE: Thailand’s Alliance Refining Co (ARC) has sold 30,000 tonnes of high sulphur fuel oil at a discount of $3-$4 per tonne to Singapore 380-centistoke (cst) quotes, traders said.
Petron move
SINGAPORE: The Philippines’ Petron Corp has tendered to buy two cargoes of fuel oil cargoes for early-October delivery, industry sources said.
CPC offer
SINGAPORE: Taiwan’s Chinese Petroleum Corp (CPC) has offered via tender 30,000 tonnes of gasoline for October for lifting from Kaohsiung on a free-on-board basis, traders said.
Tenders issued
SINGAPORE: Vietnam’s oil importers have issued tenders seeking nearly 100,000 tonnes of high-sulphur gas oil for deliveries between late September and October, traders said.
Fuel bought
SINGAPORE: China Aviation Oil, has bought via tender 630,000 tonnes of jet fuel for October to December, traders said, raising its total annual volume by 30.2 per cent from last year.
Reliance wins
SINGAPORE: India’s Reliance Industries Ltd has won a tender to supply Sri Lanka’s Ceylon Petroleum Corp. (Ceypetco) 180,000 barrels of gas oil and 120,000 barrels of gasoline for late September, a source said.
Firm buys
SINGAPORE: Taiwan’s Chinese Petroleum Corp (CPC) has bought three Very Large Crude Carriers (VLCCs) of West African crude for October loading in its tender for sweet crude, traders said.
Saudi cuts crude prices
LONDON: Saudi Arabia has slashed prices for October-loading crude to both the United States and Europe in an effort to shift the big volumes Opec’s top producer is offering to cool oil’s blistering rally.
Production up
CAIRO: Egypt’s crude oil production rose in August to 596,129 barrels a day (bpd) from 594,548 bpd in July, an official from the Egyptian General Petroleum Corporation (EGPC) said.
Qatar move
SINGAPORE: Qatar has set the August official selling price (OSP) for its Land crude at $2.03 per barrel over the Oman OSP and for its Marine grade at parity to Oman, traders said.
Adnoc plan
ABU DHABI: Abu Dhabi National Oil Company (Adnoc) said it had raised August retroactive selling prices for its crude oils by $3.9-$4.2 per barrel.
Oman hike
TOKYO: Oman has raised the retroactive official selling price (OSP) for its August crude oil to $39.00 a barrel, setting it at a 45 cents per barrel premium to the Dubai average of $38.55, traders said.
OSP slashed
LONDON: State oil firm Egyptian General Petroleum Corporation (EGPC) has cut September official selling prices (OSPs) for its crudes by between $1.85 and $2.75 per barrel, trade sources said.
Cargo bought
SINGAPORE: Western trading house Vitol has bought its fourth September-loading high-sulphur fuel oil cargo from Saudi Aramco, bringing their total to 220,000 tonnes, sources said.
Riyadh stand
RIYADH: Saudi Arabia will use a windfall in oil revenue this year to reduce its public debt, with a portion going towards developing poor areas, Crown Prince Abdullah said.
EGPC bid
SINGAPORE: State-owned Egyptian General Petroleum Corp (EGPC) has tendered to buy two high-sulphur fuel oil cargoes for delivery in September and October, industry sources said.
Gasoline sold
SINGAPORE: Western trader Trafigura has sold 35,000 tonnes of spot 95-octane gasoline to Nafitran Intertrade Co for delivery to Iran in mid-September, trade sources said.
Vitol awarded
SingaporE: Kuwait Petroleum Corp (KPC) has awarded its early September gasoline sell tender to Vitol, traders said.
COMPANY NEWS
PGS rejects $900m offer for seismic unit
OSLO: Norwegian Petroleum Geo-Services ASA (PGS) said it was not aiming to elicit a higher bid when it rejected a $900 million offer for its seismic unit from France’s Compagnie Generale de Geophysique (CGG).
PGS, which rejected CGG’s cash-and-stock offer for its seismic survey operations, repeated that the bid for its main unit was wholly unacceptable.
Asked whether the rejection was an attempt to draw a higher bid, PGS chief executive Svein Rennemo said: “That is not how we are thinking; our answer is no.
“The value that has been suggested is entirely, entirely inadequate,” Rennemo said. He declined to say what would be an adequate value for the business.
PGS has said it would be willing to consider bringing partners into its small oil-producing subsidiary Pertra AS.
But Rennemo said there was good reason for optimism about the seismic services sector.
“Everyone agrees that we are facing an upturn in this industry,” he said.
Naftogaz in profit
KIEV: Ukraine’s state oil and gas company Naftogaz Ukrainy posted a net profit for the first half and said it had launched a roadshow to present a debut eurobond.
Naftogaz said net profit was 415.3 million hryvnias ($78.2 million) for the six months ended June compared with a loss of 42.2 million a year ago.
The company did not give a reason for its success, but firms in the sector have been helped by surging prices for their products, in part due to instability in Iraq.
Chairman Yuri Boiko said the company would meet investors in Western Europe to launch the eurobonds worth about $700 million.
Strictly business ...
•MOSCOW: Minority shareholders of Russian oil firm TNK-BP’s subsidiaries will get offers to sell or swap their shares against the stock of TNK-BP itself by the first quarter of 2005, the Vedomosti business daily said.
•LONDON: Oil exploration and production consultancy IHS Energy has bought Cambridge Energy Research Associates (CERA), the energy analysis firm run by Daniel Yergin, the companies said.
•NEW YORK: Parker Drilling Co said some of its subsidiaries have been named in lawsuits claiming that products containing asbestos were used in drilling operations and drilling equipment, according to a regulatory filing.
•NEW YORK: Williams Cos Inc has bought back about $793 million of debt and will take a quarterly charge as a result, the natural gas company said.
ENVIRONMENTAL EYE
Refinery on course to meet benzene regulation
Singapore: The New Zealand Refinery Co (NZRC) is on schedule with building a 28,000 barrels per day (bpd) benzene saturation unit and anticipates no problem in meeting the country’s regulation of lower benzene specification in unleaded gasoline by January 1, 2006, a trader said.
The new unit is coming up at the company’s 105,000 bpd Whangarei refinery at Marsden Point.
Government regulations require NZRC to reduce the benzene level in unleaded gasoline from the current three per cent by volume (which came into force on January 1, 2004) to one per cent by volume by January 1, 2006.
Construction work began in early January this year and the refiner expects the new BSU to be ready by August 2005, with a lead time of around four months for system testing and delivery of the tighter spec gasoline before the deadline.
Once completed, the unit will be connected to the refinery’s existing 28,000 bpd catalytic platformer.
The main function of the BSU is to reduce the benzene in the refiner’s gasoline production through chemically converting the product to a more harmless component, cyclohexane.
Units blamed
NEW ORLEANS: A pair of units designed to remove sulphur from gasoline at a New Orleans-area refinery are being blamed for creating sulphur-tainted gasoline in May.
The bad gasoline damaged more than 80,000 fuel gauges in cars and trucks in Louisiana and Florida.
Shell Oil products spokesman Shawn Frederick says the units began operating about two weeks before motorists started reported fuel gauge problems.
The units were installed at the Motiva refinery in Norco to meet new federal environmental regulations that limit sulphur levels in gasoline to 30 parts per million, down from the current standard of 300 parts per million.
The new rules go into effect January 1.
Shell now says the tainted fuel also contained hydrogen sulphide, an extremely corrosive compound that occurs naturally in unrefined crude oil.
More than 200 gas stations, mostly operating under the Shell, Texaco and Chevron brands, sold the bad fuel in the New Orleans area and portions of Florida in May.
Frederick says Shell has processed about 53,000 broken fuel gauge claims in Louisiana and about 28,000 in Florida. There’s no word on how much it cost the company to repair the gauges.
Frederick says it’s unknown why the units malfunctioned.
