Oil and Gas Press

Abu Dhabi favours low equity in oil investments

Abu Dhabi said it remains committed to long-term projects in its overseas oil investments but would favour low equity in the targeted ventures. The International Petroleum Investment Company (Ipic), the government’s downstream investment arm, said it avoids getting involved in direct management of the companies it invests in as it is pushing ahead with a major drive to expand its assets in the UAE and other countries.
The company, which was created 24 years ago to utilise Abu Dhabi’s massive oil wealth in downstream projects abroad, said its investment portfolio has grown to 10 major ventures but did not specify their value.
“Ipic operates on commercial principles, with the objective of maximising the long run shareholder value of the company. This is achieved by Ipic’s vigorous participation in the board of directors and other strategy making bodies for every company in Ipic’s investment portfolio,” it said on its newly-launched website.
“As a primarily financial investor, Ipic does not typically participate in the day-to-day management of investee firms, except in exceptional circumstances. Though Ipic has 65 to 70 per cent controlling shares in its largest investments, it typically targets a significant minority equity participation level of 25 to 40 per cent, accompanied by appropriate minority shareholder protections.”
The figures showed the company, founded in Abu Dhabi in1984, has between two and 70 per cent in 10 major ventures in Spain, Austria, Portugal, Japan, Pakistan, South Korea, the UAE and other countries.
Its largest percentage stakes include its 70 per cent shareholding in Hyundai Oilbank Ltd and 65 per cent in the petrochemicals producer Borealis OMV.
One of its oldest investments is Ipic’s 9.5 per cent shareholding in Spain’s Cepsa, which allowed the emirate to market more than 60,000 barrels per day of its crude in Europe when it initiated that stake more than 20 years ago.
http://uaeinteract.com/docs/Abu_Dhabi_favours_low_equity_in_oil_investments/32189.htm

>>Texaco: Contempt Proceedings Begin against Chevron
•As US oil giant sells West Africa retail outlets, negotiates with workers
 
A Federal High Court in Lagos yesterday fixed October 23, 2008 to hear the application for contempt proceedings brought against Chevron Oil Nigeria Plc by Zenon Petroleum and Gas Limited over the sale of Texaco to Corlay Global S.A. despite a court order.
However, striking senior workers of the oil company revealed yesterday that they had started negotiations over their severance package which has been at dispute.
It has also emerged that the sale of Texaco in Nigeria is part of Chevron’s overall business decision to sell several of its West African marketing outlets in order to reduce its operations in the downstream sector.
In his ruling yesterday, the presiding judge, Justice Lambo Akanbi, held that it was a settled case in court proceedings that when an issue as important as contempt of court is raised in any matter, such issue be treated first above every other consideration.
Justice Akanbi stated that it was also to ensure that the orders of the court are properly carried out and the integrity, reputation and dignity of the court are protected.
The judge, who simply upheld the argument of Mr. Kehinde Aina, counsel to Zenon, added that this was imperative in order to avoid bringing the court to ridicule, disrepute and odium.
Earlier, Aina had argued that where there are two applications before a court bordering on jurisdiction and committal, the application for committal ought to have been taken first because there lie the dignity, integrity and reputation of the court.
Aina, who cited the case of John Ebhodaghe and Mike Okoyo to support his argument, also submitted that that was the only way justice would be seen to have been done.
Aina’s argument was consequent upon an application for contempt proceedings filed by Zenon against Chevron Group for disobeying the interim orders of the court.
But counsel to Chevron Oil Nigeria Plc, Mr. Yele Delana (SAN) stated that the issue was not ripe for hearing since the application for contempt was only served on him yesterday and therefore he needed at least two days to respond to it.
The court had July 31, 2008, granted an interim injunction restraining the Chevron Group from divesting 60 per cent of its stake from Texaco Nigeria Plc. Zenon Petroleum and Gas Limited currently owns 19 per cent equity stake in Texaco Plc.

Nigeria

In a bid to address the perennial gas crisis, the Federal Government has mandated all major oil companies operating in the country to submit a detailed plan for domestic gas supply before the end of October.
Also yesterday, the Exe-cutive Secretary of the Petro-leum Products Pricing Regu-latory Agency (PPPRA), Dr. Oluwole Oluleye, was sent on compulsory leave over alleged irregularities in the disbursement of funds for the Petroleum Equalisation Fund (PEF) and Petroleum Support Fund (PSF). Oluleye, THISDAY learnt, will have to step aside pending the completion of investigation into the allegation.
Minister of State for Gas, Mr. Emmanuel Odusina, who handed down the directive on gas in Abuja also said the International Oil Companies (IOCs) in the short term should further look deep into their respective operations and expedite the processing of about 280 to 350 million square cubic feet of gas between now and the end of the year.
He said the Nigerian National Petroleum Corporation (NNPC) would lead efforts with all the IOCs to firm up the plans for the realisation of the 280 to 350 mscft of gas per day with a view to having the report on October 2, 2008 for onward submission to President Umaru Musa Yar’Adua latest by October 6, 2008. http://www.thisdayonline.com/nview.php?id=123529

ADNOC announces oil prices for September 2008
The Abu Dhabi National Oil Company (ADNOC) has announced the prices of its crude oil for last month, September.
According to a press release from the company, Murban has been pegged at US$98.05 per barrel, Lower Zakum at US$98.05, Umm Al Sheif at US$97.15 and Upper Zakum at US$94.35 per barrel. – Emirates News Agency, WAM

>Russian energy giant Gazprom and oil producer LUKoil were ranked as the top two companies in Russia based on total revenue, a report said Monday.
The Russian rating Expert 400 put Gazprom at the top of the list with a total 2007 sales revenue of about $9.1 billion and LUKoil second with $6.5 billion, the Russian daily Kommersant said.
The British merger TNK-BP and Surgutneftegaz, a Russian oil and gas firm, were among other majors that made the top 10 Russian firms.
>Kazakhstan signed a memorandum of understanding with Arab and Western firms to develop gas fields in the Caspian Sea, government reports said.
The Kazakh government said in a statement Kazakh Prime Minister Karim Massimov witnessed the signing of the measure with ConocoPhillips, Mubadala Development Co. of the United Arab Emirates and the state-owned KazMunaiGas.

>The British-Russian oil firm TNK-BP said it plans to deliver supplies from the Siberian Verkhnechonsk oil field through a major pipeline network in October.
Viktor Vekselberg, vice president of TNK-BP, said the first stage of the Verkhnechonsk project will connect to the East Siberian Pacific Ocean pipeline this month, the Russian daily Kommersant reported.
Data available from TNK-BP show the proven recoverable reserves at the Verkhnechonsk field top 1.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.

Tags: Abu Dhabi, ADNOC, Chevron Group, domestic gas, Emirates News Agency, KazMunaiGas, NIGERIA, Texaco Plc., WAM, ZENON PETROLEUM