Oil and Gas Press

Industry Newsbite for w/e 20 July

> Ghana to receive 30 million cubic metres of gas for power generation
Accra, July 17, GNA - Ghana will soon receive 30 million cubic metres of gas from Nigeria for power generation. Mr Musiliu O. Obanikoro, Nigeria’s Ambassador to Ghana, announced this when he paid a courtesy call on the Minister of Energy to discuss issues on the West African Gas Pipeline project and strengthening ties between the two countries. He said the West African Gas Pipeline project was essential to improve power supply in the sub-region, adding that the government of Nigeria had set up a committee to fast track the process, which meant that the Nigerian government was committed to the success of the project.

Mr Obanikoro said his government recognized the delay in meeting its side of the agreement it had signed with Ghana. The project aims to transport Nigerian natural gas to Benin, Togo and Ghana to generate electricity. He also touched on criminal activities of some Nigerians in Ghana that could destroy the harmony between the two countries.
Mr Obanikoro gave the assurance that he would do everything within his power to ensure that such practices were dealt with. Mr Felix Owusu-Adjepong, Energy Minister, commended the Nigerian government for the proposed gas supply. GNA TMA/REA 17 July 08

> Venezuelan President Hugo Chavez has said his country will link with Ecuador to build the biggest oil refinery on South America’s Pacific Coast.
As a means of weaning Venezuelan crude away from US refineries, he said the two countries should establish refineries in their own geopolitical region.
Chavez launched the project together with Ecuadoran President Rafael Correa, in an agreement which will see US$6.6 billion being spent on refinery infrastructure to eventually refine 300,000 barrels of crude a day.
Ecuador says the project will save it US$3 billion dollars in oil imports a year.
The refinery will go up in El Aromo, in Ecuador’s coastal province of Manabi, and should be ready in 2013.- Arab Herald

>>Fourteen nationals of Philippines  allegedly arrested while engaged in illegal oil bunkering off the Bayelsa coast in the Niger Delta were yesterday paraded by the security Joint Task Force (JTF) at its headquarters in Warri, Delta State. The 14 Filipinos paraded before newsmen in Warri yesterday include Ray P. Chavez who is the Captain of the vessel, Nelso Corpin, Antonio Norgino, Tirso Olaviar, Jerome Competente, Joselin Gabion and Rexy Aldovino. Others are Rito Bajoyo, Jun Garcenila, Judel Garcenila, Eugeno Mediano, Mark Jordan Dimaano, Jose Evelito Palimero and Louis Givesania. “The suspects were arrested by JTF at about midnight on July 10, 2008 following an information we received at about 11 p.m. that there was illegal bunkering going on around Akassa community in Bayelsa State”, the JTF spokesman, Major Omale Ochagwuba said.There were, however, counter-claims yesterday regarding the manner of arrest of the suspects.
http://www.thisdayonline.com/nview.php?id=117153

>Kuwait is considering importing gas from Iran and Iraq to help meet rising demand. It is also negotiating to import gas from Qatar. Record oil export income is fuelling an economic boom across the Gulf, with power plants and industry requiring more energy input.Despite sitting on huge gas reserves, the world’s largest oil exporting region is short of gas supplies to feed its own growth. It aims to boost gas output from its own fields to a billion cubic feet per day by 2015.
> Shareholders in French groups GDF and Suez have approved a tie-up of the two companies.Shareholders in both companies, in separate general assemblies, have endorsed the merger.In the process a global energy giant has emerged despite domestic political opposition and misgivings by EU officials.In the merger of Gaz de France, a public enterprise and privately held Suez, which has energy, water and waste treatment operations, the French government hopes to win energy business in the European and international arena.

>>Russian state energy company Gazprom has agreed to help Iran further develop its oil and natural gas fields.The two sides signed the agreement Sunday during a visit to Tehran by a Gazprom delegation, led by chief executive Alexei Miller. In the agreement, Gazprom expressed interest in further developing Iran’s South Pars gas field and in cooperating on oil projects in Iran’s Azadegan region and the Caspian Sea. Gazprom also said it may help build a pipeline to deliver Iranian gas to India and Pakistan. Tehran has been seeking Russian energy investment to compensate for Western companies pulling out of Iran under pressure from Western governments.
Source: http://www.voanews.com/english/2008-07-14-voa4.cfm
> The Financial Times reported Russia’s state-controlled gas company announced that it is in talks to buy Libya’s oil and gas exports

>CNOOC announced that production began at its Kenli well in South China’s Bohai Bay, and after testing the well is estimated to be able to produce about 980 barrels of oil and about 100,000 cubic feet of natural gas.

>>UAE oil consumption grew 7.7% in 2007, says BP

The UAE posted one of the Middle East’s highest oil consumption growth rates in 2007, according to a new report. The 7.7 per cent increase to 450,000 barrels per day (bpd) – significantly above the 10-year average – reflects the country’s continued strong economic growth, says the 2008 BP Statistical Review of World Energy. The jump mirrors a worldwide trend of rising demand from emerging markets. The UAE was the GCC’s second largest oil producer in 2007, with output averaging 2.9 million bpd – equivalent to 3.5 per cent of total global production. The country’s proved oil reserves of 97.8 billion barrels make up 7.9 per cent of the world’s total and at current production levels will last 92 years. On a regional level, Middle East oil production fell by 1.8 per cent to 25.2 million bpd on the back of OPEC (Organisation of the Petroleum Exporting Countries) cutbacks in late 2006 and early 2007. “This year’s review shows the world’s energy markets continue to deliver reliable energy supplies despite high and volatile energy prices,” said Mark Finley, General Manager, BP Global Energy Markets and US Economics. “Continued weakness in oil supply and increasing emerging market demand highlight the challenges the industry faces in maintaining secure energy supplies.”

The numbers:
2.9 - In million bpd was the average oil output of the UAE in 2007
1.8% - Fall in Middle East oil production. – Emirates Business 24|7

>>Gas prices go up in Dubai

A hike of up to 20 per cent in the prices of liquefied petroleum gas (LPG) cylinders, which came into effect last month, has added extra burden on the family budget of many. The price of the 22kg cylinder, which was Dh98 last month, has now shot up to Dh105, residents said. An official of the Emirates Gas, a leading supplier of LPG cylinders in the region, told Khaleej Times that the rising prices of crude oil, transportation costs and a hike in the DEWA (Dubai Electricity and Water Authority) tariffs have forced them to increase the LPG prices. An official of the Dubai-based Oasis Gas Agency added that the prices were now up by almost 15 to 20 per cent. “The price of an 11 kg LPG cylinder was Dh53. Now, it is priced at Dh65. Similarly, the price of the 22kg cylinder, which was Dh98 till last month, now costs Dh105. The price of a 44kg cylinder has gone up to Dh216 from Dh187,” the official said. Similarly, the agencies in Sharjah too said that there was a rise in prices of the LPG cylinders last month. “The price of an 11kg cylinder has shot up to Dh55 from Dh45 last month. The 22kg cylinder is priced at Dh100 now, up from Dh95. And the price of the 44kg cylinder now is Dh195 in place of Dh185,” said an official of the Ajmer Gas Agency in Sharjah. According to the Emirates Gas officials, the price rise was unprecedented.

“In the summer months, the prices of the LPG cylinders generally come down. But this time, the situation is different. The prices of crude oil and diesel are on a record high. Locally, the transportation costs and the charges of electricity and water have also gone up. As a result, we have been forced to increase the prices. The market is being closely monitored at the moment and the prices would drop if the situation changes,” said an official on condition of anonymity.
“The prices of the LPG cylinders have been shooting up since May this year. The fluctuating state of the global market economy is one of the major reasons for this. At present, there is little way by which the prices can be controlled,” said a source in a gas distribution agency in Dubai. The increase in prices has come as a shock to many. – Khaleej Times

> Nigerian National Petroleum Corporation (NNPC) insisted that the Fiscal Incentives, Guarantees and Assurances given to the Nigeria Liquefied Natural Gas (NLNG) for the development of liquefied natural gas should be amended so as to ensure that they comply with the laws of the land.
Chief Sena Anthony of NNPC who was speaking yesterday at the resumed hearing of the House of Representatives Committee on Gas   proposed an amendment to the NLNG Act. He explained that the fiscal terms had been devised by the Federal Government in order to monetize Nigerian gas resources. “The NLNG Act of 1990 was the first major project specific legislation enacted by Government to give incentives to the development of LNG,” he said.
On its part, Shell Petroleum Development Company(SPDC) on behalf of Shell Gas BV , the shareholder in the Nigeria LNG project also reiterated that it would encourage the committee to recommend no alteration to the NLNG Act as it believes this Act adequately provides a fiscal regime for NLNG both during and after the income tax relief period.
Mr. Phil Blackler, a Senior Shell official, said though they are commending the House Committee on Gas for the bold initiative “the Shell shareholder in the Nigeria LNG project, Shell Gas B.V has now reviewed its previous submission and believes that the submission  SPDC made on its behalf on 30th May, 2008, properly reflects its position.”

 http://www.thisdayonline.com/nview.php?id=117146

Tags: BP, Dubai, Gas prices, Ghana, grew 7.7% in 2007, Nigerian National Petroleum Corporation (NNPC), oil consumption, UAE