Exxon in CNPC supply talks
TOKYO: US oil giant ExxonMobil Corp has started talks to supply all natural gas produced at its project in Russia’s far east to China National Petroleum Corp (CNPC) via a pipeline, moving away from the Japanese market, the Nihon Keizai business newspaper said.
Deal struck
JOHANNESBURG: South African fuels producer Sasol has clinched a deal with Malaysia’s state oil company, Petronas, that forms the country’s biggest liquid fuels firm by merging their operations in Africa.
Egypt output falls
CAIRO: Egypt’s crude oil production fell in October to 603,968 barrels per day (bpd) from 604,667 bpd in September, an official from the Egyptian General Petroleum Corporation (EGPC) said.
Petrol price raised
HANOI: Vietnam, which imports most of its fuel needs, has raised petrol prices by about seven per cent due to high global oil prices, but vowed to hold electricity and coal prices unchanged to support its economic expansion, sources said.
Exports fall
LONDON: Iraqi exports of crude averaged about 1.76 million barrels per day (bpd) in October, slightly down from the previous month’s tally of 1.8 million bpd, shipping sources said.
Firm move
HONG KONG: Oil trading and transport firm Titan Petrochemicals Group Ltd has said that it would buy the oil trading business of its Singapore-based parent, Titan Oil Pte Ltd., for HK$195 million ($25 million), according to company sources.
Huangpu fuel oil imports up
BEIJING: Fuel oil imports into Huangpu, China’s largest terminal for the product, rose 17 per cent from September to nearly 1.4 million tonnes, but stocks remained low, Huangpu-based shipping and trading sources said.
Tender issued
SINGAPORE: Vietnam’s state-oil marketer, Petechim, has issued a tender to sell a minimum 910,000 barrels of sweet, medium-heavy Su Tu Den crude for lifting in the first half of next year, traders said.
Petechim move
HANOI: Vietnam’s state oil marketer, Petechim, has sold 500,000 barrels of mid-heavy sweet Bunga Kekwa crude to oil major ExxonMobil Corp for December 1-3 loading, a company source said.
Supplies resume
SINGAPORE: Japan’s major bunker supplier, Cosmo Oil Co, has resumed bunker supplies to Japanese ships, but still can’t meet demand from foreign shipowners due to tight stocks, a company official told Dow Jones Newswires.
Firm to import
JAKARTA: Indonesia’s state oil company, Pertamina, will import more oil products, especially diesel and gasoline, to expand its domestic reserves stockpile to meet demand, company officials said.
Sinopec buys
SINGAPORE: China’s oil giant, Sinopec Corp, has bought a second spot cargo of gas oil for loading in November, bringing its total monthly purchase to 60,000 tonnes, traders said.
Pertamina set
SINGAPORE: Indonesian state oil firm Pertamina is expected to issue its regular tender to buy sweet crudes for January arrival, a company source said.
Blocks to be reoffered
Abuja: Nigeria and Sao Tome have closed their first-ever joint oil licensing after awarding just one block, saying they would reoffer four of the offshore areas again in a second round by the end of the year.
Reserves rise
MOSCOW: Russian mid-tier oil firm Tatneft increased its proved oil reserves by 15.9 million tonnes in the first nine months of 2004, the company said.
Profits up
NEW YORK: Newfield Exploration Co said the third-quarter profit rose on higher oil and gas revenues.
Output rises
NEW DELHI: India’s crude output in September increased to 2.76 million tonnes compared with 2.71 million tonnes a year ago, the oil ministry said.
Nexen in deal
CALGARY: Canadian oil-and-gas concern Nexen Inc has signed an agreement to acquire EnCana Corp’s (ECA) UK subsidiary, EnCana (UK) Ltd for $2.1 billion.
Supply startup
AMSTERDAM: Energy giant Total will launch production at a new gas field in the Dutch sector of the North Sea at the end of 2005, its Dutch unit Total E&P Nederland said.
Demand slips
NEW YORK: Global offshore drilling rig demand fell from a three-year high recently, to 85.4 per cent from the previous 85.6 per cent, according to ODS-Petrodata Group’s weekly survey.
EnCana project
CALGARY, Alberta: EnCana Corp’s Deep Panuke natural gas project off the coast of Nova Scotia could end up on the block as the company cements its strategy to concentrate on onshore gas and oil sands, its chief executive said.
Petkim back in the black
ISTANBUL: Turkish state petrochemicals company Petkim achieved a net profit of 20.39 trillion lira ($13.8 million) in the first nine months of the year, returning to profit after a first-half loss.
Naphtha sold
SINGAPORE: India’s Oil and Natural Gas Corp Ltd (ONGC) has sold via tender a late-November naphtha parcel to Itochu Petroleum Co, the third cargo it has exported this month, trading sources said.
Tender issued
SINGAPORE: Indian Oil Corp (IOC) has issued a tender to sell 25,000 tonnes of 180-centistoke (cst) fuel oil, industry sources said.
Cracker to start
AMSTERDAM: Oil major Shell’s huge 900,000 tonnes per year naphtha-fed petrochemical cracker in the Netherlands will restart “at the earliest” after a technical problem forced the plant to be shut last month, the company said.
MRPL sells
SINGAPORE: India’s Mangalore Refinery & Petrochemicals Ltd (MRPL) has sold 30,000 tonnes of naphtha for late-November to Vitol at a lower premium compared to its last sale, traders said.
IOC stance
AHMEDABAD, India: State-run Indian Oil Corp (IOC) said it could take at least a month to restart the Fluidised Catalytic Cracking Unit (FCCU) of its 274,000 bpd Koyali refinery in the western state of Gujarat which was shut down due to an explosion.
Formosa move
SINGAPORE: Taiwan’s Formosa Petrochemical Corp has bought 50,000 tonnes of full-range naphtha for delivery in the first-half of January at about $8 per tonne below Japan spot quotes, traders have said.
EGPC offer
SINGAPORE: State-owned refiner Egyptian General Petroleum Corp (EGPC) has offered via tender two December cargoes of full range naphtha, traders said.
Pipe leaks at Balongan
SINGAPORE: A pipeline leak at Indonesia’s 125,000 barrel-per-day (bpd) Balongan refinery is putting pressure on spot premiums of Duri crude as more oil is released on the spot market, traders said.
Tender issued
SINGAPORE: State-owned Bangladesh Petroleum Corp (BPC) has issued a tender to buy 20,000 tonnes of 180-centistoke fuel oil, industry sources said.
ARC sells
SINGAPORE: Thailand’s Alliance Refining Co (ARC) has sold a 230,000-barrel cargo of low sulphur gas oil for early-November lifting via tender, traders said.
Fuel sold
SINGAPORE: India’s Mangalore Refinery & Petrochemicals Ltd has sold an 80,000-tonne parcel of 380-centistoke (cst) fuel oil to Chemoil, industry sources said.
Petron move
SINGAPORE:Philippine refiner Petron Corp has issued a tender to buy a 100,000-barrel cargo of low-sulphur fuel oil for December delivery, industry sources said.
Fuel purchased
SINGAPORE: Vietnam’s Petrolimex has bought two cargoes of high-sulphur fuel oil totalling 54,000 tonnes for end-November delivery, industry sources.
Hyundai plan
SINGAPORE: Hyundai Oilbank Corp is exporting about 120,000 tonnes of spot gas oil for liftings in November, but plans to cut exports to 80,000 tonnes next month, traders said.
Crude bought
SINGAPORE: Kenya’s 90,000 barrel-per-day (bpd) Mombasa refinery has bought one cargo of Abu Dhabi’s Murban crude oil for December-loading from European major Total SA in its latest tender, traders said.
Aramco hikes premiums
SINGAPORE: State-owned oil giant Saudi Aramco is offering term middle distillate supply for 2005 at much stronger premiums, which are likely to drive prospective buyers to secure more spot cargoes instead, traders have said.
OSP slashed
SINGAPORE: Yemen’s state-owned Yemen Oil and Gas (YOG) has slashed the official selling price (OSP) of its key Masila crude for November by $1.90 to a discount of $4.20 per barrel to benchmark dated Brent, traders said.
Ancap buys
NEW YORK: Uruguay’s state oil company, Ancap, bought one million barrels of Iranian crude oil in its monthly tender, traders said.
Selling price up
SINGAPORE: Oman’s Ministry of Oil and Gas has retroactively raised its official selling price (OSP) for October term crude supply to Asia to a 95-cents-per-barrel premium to benchmark Dubai, up 45 cents per barrel from the September OSP, traders said.
Crude price cut
LONDON: Syrian state oil marketer Sytrol has cut the November official selling price for its heavy crude by $3 per barrel versus October, trading sources said.
Iraq allocates
BAGHDAD: Iraq’s interim government has allocated $1.2 billion for investment in the upstream oil sector with the aim of boosting the country’s oil production to 3.2 million barrels per day, Oil Minister Thamer Al Ghadhban said.
Exports normal
BAGHDAD: Iraq’s oil exports were running normally at 1.8 million barrels per day (bpd), oil officials and shipping agents said.
Adnoc plan
SINGAPORE: Abu Dhabi National Oil Co (Adnoc) will likely start negotiations for its naphtha term exports for 2005 in a few weeks time, traders in Asia said, adding Adnoc is expected to seek higher term premiums, in line with those set by Kuwait Petroleum Corp (KPC).
Bidding opens
WASHINGTON: Iraq’s finance ministry has opened bidding on a contract to audit the country’s oil export sales since June, when the US handed over power to an interim Iraqi government, sources said.
Aramco hikes premiums
SINGAPORE: State-owned oil giant Saudi Aramco is offering term middle distillate supply for 2005 at much stronger premiums, which are likely to drive prospective buyers to secure more spot cargoes instead, traders have said.
OSP slashed
SINGAPORE: Yemen’s state-owned Yemen Oil and Gas (YOG) has slashed the official selling price (OSP) of its key Masila crude for November by $1.90 to a discount of $4.20 per barrel to benchmark dated Brent, traders said.
Ancap buys
NEW YORK: Uruguay’s state oil company, Ancap, bought one million barrels of Iranian crude oil in its monthly tender, traders said.
Selling price up
SINGAPORE: Oman’s Ministry of Oil and Gas has retroactively raised its official selling price (OSP) for October term crude supply to Asia to a 95-cents-per-barrel premium to benchmark Dubai, up 45 cents per barrel from the September OSP, traders said.
Crude price cut
LONDON: Syrian state oil marketer Sytrol has cut the November official selling price for its heavy crude by $3 per barrel versus October, trading sources said.
Iraq allocates
BAGHDAD: Iraq’s interim government has allocated $1.2 billion for investment in the upstream oil sector with the aim of boosting the country’s oil production to 3.2 million barrels per day, Oil Minister Thamer Al Ghadhban said.
Exports normal
BAGHDAD: Iraq’s oil exports were running normally at 1.8 million barrels per day (bpd), oil officials and shipping agents said.
Adnoc plan
SINGAPORE: Abu Dhabi National Oil Co (Adnoc) will likely start negotiations for its naphtha term exports for 2005 in a few weeks time, traders in Asia said, adding Adnoc is expected to seek higher term premiums, in line with those set by Kuwait Petroleum Corp (KPC).
Bidding opens
WASHINGTON: Iraq’s finance ministry has opened bidding on a contract to audit the country’s oil export sales since June, when the US handed over power to an interim Iraqi government, sources said.
COMPANY NEWS
Kerr-McGee setback over higher charges
NEW YORK: Oil and gas producer Kerr-McGee Corp has reported a fall in quarterly profit, citing a writedown related to a pigment plant and higher environmental charges.
Revenue and earnings excluding items surged in the period due to record oil production and prices, and the Oklahoma City-based company forecast an increase in production in the fourth quarter and 2005.
Net income in the third quarter fell to $7.4 million, or 5 cents per share, from $28.8 million, or 29 cents per share, in the year-earlier period.
Income from continuing operations was $1.17 per share in the quarter, an increase of nearly 50 per cent due to record production and prices.
Analysts on average had expected the company to earn 95 cents per share in the quarter.
Revenue jumped 36 per cent in the quarter to $1.4 billion.
Kerr McGee averaged 341,600 barrels of oil equivalent per day in the period, a 33 per cent increase from the 2003 third quarter.
Amerada gains rise
NEW YORK: Amerada Hess Corp reported higher quarterly profit, spurred by record oil and gas prices. Net income in the third quarter rose to $178 million, or $1.74 per share, from $146 million, or $1.64 a share, in the year-earlier period.
Analysts on average had expected the company to report earnings of $2.08 cents a share, according to Reuters Estimates. The company’s oil and gas production fell five per cent from the year-earlier quarter to 323,000 barrels of oil equivalent per day.
Strictly business...
• Russian oil major Yukos lost the latest in a series of appeals against its crippling tax bill, when a court confirmed a $193 million bailiff charge for 2001, Interfax news agency reported.
The Moscow arbitration court dismissed the company’s appeal that the 5.55- billion rouble charge be annulled.
Yukos faces tax demands of almost $8 billion, of which over $6 billion has been upheld by the courts. It said it would complete the payment of a $3.4 billion back tax bill for 2000 within days.
• SAN FRANCISCO: Natural gas distributor Nicor Gas said it would ask the Illinois Commerce Commission to raise customer gas rates by about $83 million, or 16.5 per cent. The company, a unit of Naperville, Illinois-based Nicor Inc, said it will file the rate case in early November and new rates, if approved, would be effective in October 2005.
• RIO DE JANEIRO, Brazil: Brazilian state oil company Petrobras, hoping to avoid a costly strike, has sweetened the terms of a wage offer that had been previously rejected by its employees.
ENVIRONMENTAL EYE
Deadline on cleaner diesel fuel may be extended
NEW YORK: A looming deadline requiring a lubricating additive to lower sulphur diesel fuels might be pushed back as the oil industry scrambles to find ways to execute the plan.
The American Society of Testing and Materials is a collection of technicians and scientists who set standards for fuels, among other products. The group will vote on whether to push back the deadline at its December 5-8 convention in Tampa.
The standard for a cleaner-burning diesel fuel was set to be implemented on January 1, 2005. Twenty-one states directly adopt ASTM standards and other states use the standards as a guide for their own laws.
Lower sulfur diesel fuels cause less pollution, but lowering sulphur content in fuels also lowers its lubricating properties in engines.
A plan to add the lubricant to lower sulphur diesel fuels at refineries went off track when tests conducted by Colonial Pipeline found the additive fouled aviation jet fuel sent through the same lines. Colonial banned the additive on October 15.
Colonial, like most other oil product pipeline companies, uses the same pipe to ship different types of distillate fuels. Its tests show that some lubricant “trailed back” into other batches of fuel, including high-performance aviation fuel.
A solution is to add the lubricant at product terminals so as to not mix with aviation fuel, according to Ed Murphy of the petroleum industry group American Petroleum Institute.
But Colonial and the API say this solution can’t be in place in two months. It would require new storage tanks and/or injection and testing equipment at 1,000 oil product terminals.
“We have asked the ASTM to put a hold on the standard,” said Murphy, adding that the API wants to delay the additive requirement to January 1, 2006.
IOC plan
SINGAPORE: State-owned refiner Indian Oil Corp (IOC) will start selling low sulphur diesel in India’s key metropolitan cities by the end of December or early January 2005, three months ahead a government deadline.
But the switch to cleaner diesel won’t have a significant impact on India’s gasoil trade as refineries are already geared up for the change and key regional importers such as Sri Lanka and the Mediterranean countries are still using relatively higher sulphur grades of 0.25 per cent and 0.2 per cent.
Under the government’s timetable, major Indian cities such as New Delhi, Mangalore, Chennai and Mumbai are to switch to Euro III specifications fuel beginning April 1 next year. This standard means fuel suppliers will need to cut the maximum sulphur content of diesel to 350 parts per million, or 0.035 per cent, from the current 500 ppm.
