PTT consolidation delayed
BANGKOK: PTT, Thailand’s top energy firm, said a consolidation of its downstream business, eagerly awaited by the stock market, would probably be completed in the first quarter of 2011 rather than the fourth quarter of this year.
The plan is widely expected to involve a merger of two affiliates, PTT Aromatics and Refining (PTTAR) and IRPC.
Aramco sets Yanbu bid date
KHOBAR: State oil firm Saudi Aramco has extended for the fourth time the date to submit bids to build a solids handling unit at its 400,000 barrels per day (bpd) Yanbu refinery, industry sources said.
The extension was made at the request of bidders, said one source who declined to be identified.
The deadline for bids for the unit, which will produce 6,300 metric tonnes per day of coke and 1,260 metric tonnes of sulphur, is now July 6, said the sources.
No impact from work: Exxon
HOUSTON: ExxonMobil said that planned flaring at its 150,000 barrel per day (bpd) Los Angeles-area refinery in Torrance, California, between June 10 and July 2 would be due to work on a storage tank and was not expected to affect production. The refinery warned California pollution regulators of flaring between those dates in a notice.
Aramco invites firms for Jizan
KHOBAR: State oil giant Saudi Aramco is looking for firms to manage the construction of the Jizan refinery, industry sources said.
Engineering firms will have to submit their prequalification documents, which also include the front-end engineering and design (Feed) and project management services (PMS) by June 12, sources said.
The refinery, with a planned capacity of 250,000-400,000 bpd is among new plants Saudi Arabia is planning to build as it looks to boost domestic refining capacity.
Canada oil output climbing
CALGARY: Canada’s oil output may climb as much as 43 per cent over the next decade, as oil sands projects deferred during the recession get back on track, the country’s largest industry association said.
The Canadian Association of Petroleum Producers 2010 forecast sees output climbing to as high as 3.88 million barrels a day by 2020. The report marks a break from the previous three, when the association lowered its estimates because of an industry slowdown.
Sinopec launches fuel oil arm
BEIJING: Sinopec, Asia’s top crude oil refiner, formally launched a fuel oil and bunker sales and marketing arm to consolidate its fuel oil businesses and tap China’s rapidly growing marine fuel market, confirming an earlier Reuters report.
Sinopec Fuel Oil Corp was responsible for selling all fuel oil production from its refineries, running fuel oil storage facilities and planning new storage sites, building a bunker supply network to reach all major ports in China, and expanding fuel oil trade in the international market, a company newspaper reported.
CNOOC’s deepwater rig soon
BEIJING: CNOOC, China largest offshore oil and gas producer, will begin operating its first deepwater drilling rig, Offshore Oil 981, in the fourth quarter of this year, a company executive said.
Chen Bi, executive vice president of CNOOC, confirmed the timeline when asked by reporters on the sidelines of an industry conference if the rig will be ready before end of the year.
CNOOC Ltd is a listed arm of CNOOC in charge of offshore oil and gas production.
Hokkaido CDU to undergo work
TOKYO: Idemitsu Kosan plans to suspend operations at a 140,000 barrels per day (bpd) crude distillation unit (CDU) at its Hokkaido refinery from around June 18 for 28 days, industry sources said, to offset weak demand.
An Idemitsu spokeswoman declined to comment on the exact dates of the shutdown saying only that the company has plans to shut the Hokkaido CDU located from mid-June for about one month.
The non-maintenance shutdown of the CDU marks the first such suspension in nearly a decade for Japan’s third-largest refiner and comes amid plans for the temporary stoppage of several units this year in a bid to reduce oil product stockpiles.
Japan ethylene output falls
TOKYO: Japanese ethylene production fell 3.7 per cent in May from the same month a year earlier due in part to increased maintenance shutdowns, government data showed.
Ethylene output totalled 560,900 tonnes last month, compared with 582,300 tonnes a year earlier, the Ministry of Economy, Trade and Industry said.
Valero to finish Aruba in Sept
TORONTO: Valero Energy expects to begin planned work at its closed refinery in Aruba in the next week or so and to have it completed in early September, a company spokesman said.
The refinery, which was closed due to poor economics last July, has had ongoing maintenance for the past several months.
“We expect the turnaround to be complete around the first part of September,” said Bill Day, a spokesman for the company.
Britain to double rig inspections
LONDON: Britain will double annual inspections of offshore oil and gas drilling rigs in the wake of the “devastating” Gulf of Mexico oil spill, Energy Secretary Chris Huhne said.
Huhne said an urgent review had been carried out into the UK’s ability to prevent and respond to spills following the explosion and fire on the Deepwater Horizon rig licensed to BP, which has poured millions of gallons of crude oil into the sea off the US coast.
Essar Oil to raise up to $300m
MUMBAI: Indian refiner Essar Oil plans to raise up to $300 million by issuing foreign currency convertible bonds to founder Essar Energy Holdings, the company said in a notice to the National Stock Exchange.
India defers raising fuel prices
NEW DELHI: India’s government deferred till next week a decision on raising fuel prices, the second time in a year it has tripped on pushing politically- sensitive reform measures that could help trim a budget deficit.
The Congress-led government held off the decision after two powerful ministers from coalition parties stayed away from a ministerial panel meeting, signalling opposition to the move on fears of voter backlash ahead of local polls over the next year.
The panel was to review the possibility of freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas which could help reduce the fiscal deficit from the projected 5.5 per cent of 2010/11 GDP and free up revenues for other programmes.
Lupatech inks $779m deal
SAO PAULO: Brazilian oil equipment company Lupatech said it signed a $779-million contract with state oil company Petrobras for rental of semi-submersible platforms and related services.
Lupatech will lease two semi-submersible platforms to Petrobras that can operate in water depths of 1,100 to 2,500 meters (3,600 to 8,200 feet) and will install undersea equipment in areas Petrobras operates. Lupatech will invest close to $100 million in acquiring new equipment required to service the undersea wells.
Nighthawk initiates farm-out
LONDON: US-focused energy company Nighthawk Energy said it has appointed an adviser for a possible sale of part of the working interest in the Jolly Ranch project in Colorado.
Nighthawk and partner Running Foxes Petroleum, which both have a 50 per cent stake in the project, said Macquarie Tristone has been appointed to seek a purchaser for part of the working interest in the project.
“The per centage working interest to be divested, which is likely to be an equal amount from each of the two partners, will be determined during the marketing process,” Nighthawk said.
Oceaneering cuts outlook
NEW YORK: Oil field services provider Oceaneering International cut its full-year earnings outlook below market expectations, due to the US government’s decision to halt deepwater drilling activities in the Gulf of Mexico for six months.
The company now expects full year earnings to range between $2.80 and $3.10 per share. The company had earlier forecasted full year earnings of $3.25 to $3.55 a share.
Analysts, on average, were expecting 2010 earnings of $3.48 a share, excluding items, according to Thomson Reuters I/B/E/S.
Pemex sues BASF, others
MEXICO CITY: Pemex, Mexico’s state oil company, sued German chemical maker BASF and several oil trading companies, alleging they illegally profited from processing stolen oil.
The suit seeks to recover payments BASF made to several trading companies for deliveries of condensate, a mixture of very light, liquid hydrocarbons extracted from natural gas fields that is processed in petrochemical plants.
BASF, which operates a large petrochemical plant in Port Arthur, Texas, allegedly purchased at least $2.4 million worth of stolen condensate from other defendants named in the suit.
Petrobras finds 380 mbbl
SAO PAULO: Brazilian state-run oil giant Petrobras said it found as much as 380 million barrels (mbbl) of oil equivalent in a deep-water well in an offshore area, following a string of major offshore finds. Petrobras said it found light oil at a depth of 4,460 metres (2.77 miles) in the Campos Basin, where the company produces most of its oil.
The find, located in the “subsalt” cluster which lies beneath a thick layer of salt deep below the ocean’s floor, is in the same concession area as the company’s Marlim field.
“Preliminary estimates point to potential recoverable around 380 million barrels of oil equivalent,” the company said in a statement.
Angle to buy Alberta assets
NEW York: Canada’s Angle Energy said it agreed to acquire certain oil and gas assets in the Edson area of Alberta for C$115 million ($108.3 million) and will raise about C$55.3 million through bought deal financing to fund the deal.
The Calgary-based oil and gas explorer said the assets were adjacent to its existing assets in the Edson area, where the company recently had drilling success. The company said the acquisition will add to its earnings per share on all key metrics.
Emissions at Citgo refinery
NEW YORK: Citgo Petroleum reported excess opacity at its Corpus Christi, Texas, refinery, according to state regulators. The excess emissions were due to “unknown reasons” and came from the gasoline-making fluid catalytic cracking (FCC) unit, according to a filing with Texas Commission for Environmental Quality. FCC unit operations were stable, according to Citgo.
Conoco reports flaring
NEW YORK: ConocoPhillips reported flaring from its 135,000-barrel-per-day (bpd) Rodeo, California, refinery, according to a filing with state regulators.
Shell wraps up work on project
CALGARY: Royal Dutch Shell said it has wrapped up 12 weeks of maintenance work at its 155,000 barrel per day (bpd) Athabasca oil sands project in northern Alberta and both its mine and upgrader are now back on line.
The company, which holds a 60 per cent stake in the project, said the maintenance turnaround was completed on budget, though the company did not say how much was spent. The work, which began in mid-March included replacing valves at its Scotford upgrader near Edmonton, and replacing a conveyor belt at its Muskeg River oil sands mine north of Fort McMurray.
Tesoro reports flaring
NEW YORK: Tesoro Petroleum reported flaring at its 100,000-barrel-per-day Wilmington, California, refinery, according to state regulators. The company also reported flaring after a hydrocracking unit tripped, according to filing the California Emergency Management Agency.
The most recent filing did not specify whether or not production at the refinery was affected.
Venezuela’s oil exports rise
CARACAS: Venezuelan oil exports rose by 3.9 per cent in May to an average of 2.45 million barrels per day (mbpd), according to data from the Opec nation’s oil ministry.
Venezuela’s foreign sales have been stagnant since early 2009 when it applied a 360,000 bpd cut in line with an Opec decision, but it says it hopes to gradually increase production to 3.04 million bpd (mbpd) by the end of this year.
BP restarts FCC; gasoline falls
HOUSTON: BP restarted a gasoline-producing fluidic catalytic cracker at its 265,000 barrel per day (bpd) Los Angeles-area refinery in Carson, California, triggering a drop in wholesale gasoline prices in the Los Angeles market, traders said.
BP restarted the FCCU over the weekend, said sources familiar with refinery operations. The unit was shut for unplanned repairs on May 26. Gasoline made to meet California’s strict environmental standards traded down to a 15-cent premium on the July Nymex RBOB gasoline contract. Wholesale gasoline finished at 25 cents per gallon over the Nymex.
Colonial Pipeline freezes gasoline
TORONTO: Colonial Pipeline said it was freezing allocations of gasoline for cycle 33 on the main line north of Collins, Mississippi effective as demand for space exceeds pipeline capacity, according to a note sent to shippers.
There will be no additional nominations accepted at this time. Shippers have until the close of business on June 8 to confirm or resubmit nominations, the note said.
Delek shuts down Tyler unit
TORONTO: Delek US Holdings said it shut down the Shell Claus Offgas Treating (Scot) unit at its 60,000 barrel per day (bpd) refinery in Tyler, Texas causing excess emissions of sulphur dioxide, according to a filing with state regulators.
In a filing with the Texas Commission for Environmental Quality, the company said that the excess emissions were from the sulphur recovery unit when the Scot unit was taken offline for maintenance on the amine regenerator.
Minor flare at Sunoco’s plant
TORONTO: Sunoco reported a minor flare outage at its 160,000 barrel-per-day (bpd) refinery in Toledo, Ohio, after severe storms swept through the region. The flare was out for about six minutes. The flare was relit and there were no other problems.
US refinery margins mixed
TORONTO: US refinery margins were mixed as higher crude prices outpaced product price gains in most regions, Credit Suisse said in a weekly report. However, West Coast margins gained the most again on refinery outages which increased prices.
“PADD V cracks experienced the largest week-on-week improvement mainly due to stronger gasoline prices which were up about 9 per cent week-on-week,” the report stated.
More oil from Hengan
TEHRAN: Iran hopes to pump 25,000 barrels per day (bpd) by the year’s end at the offshore Hengan oilfield which is shares with Oman, an energy official said..
Mahmoud Zirakchianzadeh, head of the state Iran Offshore Oil Company, said estimates for production by the end of the Iranian year in March 2011 had risen to 25,000 bpd from 16,000 bpd because ten new wells had been drilled.
He also told the semi-official Mehr news agency the field produced 4,000 barrels of oil daily at the beginning the Iranian year in March. He said the oil was fine quality light crude, giving an Iranian density measure equivalent to 42 degrees API.
KNPC-Daelim deal likely
KUWAIT: Kuwait’s state-run refining arm KNPC is close to signing a KD260 million ($892.8 million) with South Korea’s Daelim Industrial for a gas facility and pipeline, a KNPC spokesman said.
The facility would have capacity to treat 850 million cubic feet per day (mcfd) of natural gas, the spokesman said. The pipeline would pump liquefied petroleum gas (LPG) to Kuwait’s largest refinery, the 460,000 barrels per day (bpd) Mina Al-Ahmadi plant, the spokesman said.
Iraqi crude flow halted
BAGHDAD: Iraqi crude oil exports to the Mediterranean port of Ceyhan in Turkey halted due to a break in the pipeline, officials from Iraq’s state-run North Oil Company said.
There was no indication that the rupture was the result of sabotage. An engineer at the Kirkuk oilfields told Reuters: “Our technical team are working now to fix the crack and stop the crude leakage. We can’t confirm a sabotage act.”
The 960-km (600-mile) pipeline carries an average of 500,000 barrels of oil per day from Iraq to the Turkish port of Ceyhan, where it is loaded onto tankers for export. It was largely idled after the 2003 US invasion of Iraq because of technical problems and sabotage but came onstream again in 2007.
Kharafi in talks for plant
CAIRO: Kuwait’s Kharafi group is in discussions with Egypt’s Electricity Ministry to build a 750-megawatt (MW) power plant involving investment of about $1 billion, a newspaper reported.
The plant would be constructed on a build-own-operate (BOO) basis, and the price for each kilowatt could be set between 4.5 and 5 US cents, Al-Mal newspaper said, adding that discussions would be completed by the end of June.
Officials from the Egyptian ministry and Kharafi in Kuwait had no immediate comment.
Under the plan, construction of the plant would begin in 2011 and aimed to address a deficit in power generation capacity in Egypt that could reach 800 MW by 2011, the paper said.
Oman resumes exports
DUBAI/MUSCAT: Non-Opec producer Oman resumed crude exports from the Mina Fahal terminal, an Oman oil official said.
Oman exports around 730,000 barrels per day (bpd) of crude and condensate from the port. It exports most of its crude production to Asia.
The Gulf Arab state halted its oil and gas production after Cyclone Phet hit its coast.
Gas production operations at Oman LNG were restarted after being halted as a precautionary measure. Oman’s annual LNG production stands at around 8 million tonnes.
