CHINA: CNOOC to pay US$1.02 billion for 50% stake in US shale developer Chesapeake Energy

(EnergyAsia, February 28 2013, Thursday) — Hours after CNOOC Ltd completed its US$15.1 billion purchase of Canada’s Nexen, another Chinese state Sinopec said it had agreed to pay more than US$1 billion for a 50% stake in US-based Cheaspeake Energy which is developing oil-rich shale fields in Texas, Colorado and Wyoming states.

The swoop will expand China’s growing reach into North America’s oilsands, shale and deepwater acreages in the Gulf of Mexico as well as the UK’s North Sea. It will also help China build up its technology base in developing and producing hydrocarbons from unconventional sources like shale and deepwater acreages.

With the part sale of its Mississippi Lime play in Oklahoma to Sinopec International Petroleum Exploration, Chesapeake, one of America’s leading unconventional gas developers, will reduce its heavy debt level of some US$16 billion. Cheapeaker said its Mississippi Lime and other formations held reserves of 140 million barrels of oil equivalent (BOE) and yielded a net production of 34,000 BOE per day in the fourth quarter of 2012.

By taking over Nexen, CNOOC Ltd is targeting to raise its oil and gas output by between six and 10% per year between 2011 and 2015.

To fuel China’s growing economy and appetite for natural resources, the government is encouraging its companies to use the country’s foreign exchange hoard of US$3.3 trillion to acquire producing assets and technology from abroad. China’s domestic oil production growth is slowing down as it its conventional fields are depleting rapidly.

 

 

MARKETS: OPEC boosts forecast for 2013 oil demand to 89.68 million b/d

(EnergyAsia, February 28 2013, Thursday) — Bowing to further evidence of a near-term global economic recovery, the Organisation of Petroleum Exporting Countries (OPEC) raised its forecast for 2013 world oil demand growth to 840,000 b/d after holding it unchanged at under 800,000 b/d the three previous months.

In its February report, OPEC said it expects world demand to reach 89.68 million b/d, revised sharply higher from its January forecast of 88.55 million b/d.

Led by China, the developing economies will add around 700,000 b/d of new consumption to account for the bulk of the world’s oil demand growth, said OPEC. In contrast, the developed economies will experience a 300,000 b/d contraction in oil demand to add to last year’s estimated 400,000 b/d decline.

After growing by 330,000 b/d last year, the cartel expects China’s oil demand to rise by 370,000 b/d to over 10.07 million b/d in 2013.

“Apparent Chinese oil demand in December 2012 grew strongly by almost 6% year-on-year, the largest monthly growth during 2012, to stand at 10.5 million b/d. Part of this increase was due to the stronger economic growth of 7.8% in the fourth quarter,” said OPEC.

“This has boosted demand of raw materials as well as consumption of fuel oil. At the same time, higher refinery throughput, which rose by 8.4% in December, also contributed to increasing apparent demand in China.”

The cartel expects the world economy to grow by 3.2% this year, up from with 3% in 2012, with China and India charging ahead to offset slower growth in the US and Japan. China’s economy is seen growing by 8.1% in 2013, compared with 7.8% last year, while India’s will expand by 6.1% versus 5.5% previously. US economic growth will slow to 1.8% from 2.2% while Japan’s is forecast at 0.7% compared with 2% in 2012. OPEC expects the Euro-zone economy to grow by 0.1% to reverse a 0.4% decline last year.

 

COMPANY: ExxonMobil to name chiefs of production, and gas and power marketing subsidiaries

(EnergyAsia, February 28 2013, Thursday) — Exxon Mobil Corporation said its board is expected to appoint Tom Walters as president of ExxonMobil Production Company and Rob Franklin as president of ExxonMobil Gas & Power Marketing Company from March 1.

Mr Walters, the president of ExxonMobil Gas & Power Marketing Company and a vice president of the corporation, succeeds Rich Kruger, who was appointed by the board of directors of Imperial Oil Limited as chairman, president and CEO.

An engineer, Mr Walters joined Exxon USA in 1978 in Los Angeles and has held a variety of technical and managerial positions in production, operations, development and global services.

Mr Franklin, president of ExxonMobil Upstream Ventures and a vice president of the corporation, joined Mobil North Sea Ltd in 1981 in Aberdeen, Scotland, and has held a variety of technical and managerial positions in exploration and production and gas marketing.

 

 

ASIA: IEA backs consuming nations’ call for change to LNG pricing system, cites Singapore’s potential role

(EnergyAsia, February 28 2013, Thursday) — To the delight of Asia’s energy-importing countries paying the world’s highest fuel prices, the International Energy Agency (IEA) has thrown its considerable weight behind the region’s growing call for reforms to pricing of the international natural gas trade. In a report, “Developing a Natural Gas Trading Hub in Asia”,…

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CHINA: CNOOC Limited completes acquisition of Canada’s Nexen Inc

(EnergyAsia, February 27 2013, Wednesday) — Seven months after launching its troubled takeover bid, Chinese state-owned CNOOC Limited said it has completed the US$15.1 billion acquisition of Canada’s upstream company Nexen Inc.

Operating as a wholly owned subsidiary of CNOOC Limited, Nexen will continue to be led by CEO, Kevin Reinhart, who has been with the company for over 18 years.

CNOOC Limited said its CEO, Li Fanrong, will also chair the new board comprising representatives of the Chinese firm, existing Nexen management and Canadian independent directors.

Mr Li said: “Nexen is a strong, diverse company with attractive growth prospects, a large resource and reserve base, high potential exploration prospects, and high quality talented employees capable of extracting the value of these assets. We will thoroughly utilize the platform it provides to further our overseas business. ”

Wang Yilin, CNOOC Limited chairman, said:

“The company is delighted to acquire a leading international platform through the acquisition of Nexen. We strongly believe that this acquisition is a good strategic fit for us and will create long-term value for our shareholders.”

When it announced its takeover bid last July, CNOOC paid C$27.50 a share for a hefty premium of more than 60% over Nexen’s last traded price on the Toronto Stock Exchange. The Chinese firm faced stiff political and public opposition from Canada which feared Nexen would be run by Beijing’s political establishment.

Ironically, the day that CNOOC completed the acquisition, Nexen which will be operated as a profit-driven entity, reported a C$6 million loss for the fourth quarter, reversing a gain of $43 million the same time the previous financial year.

 

AUSTRALIA: Caltex recovers from 2011 loss to report A$57 million profit for 2012

(EnergyAsia, February 27 2013, Wednesday) — Caltex Australia has returned to profitability reporting a A$57 million net gain last year to reverse the huge A$714 million loss for 2011. (US$1=A$0.97).

The country’s largest downstream company said its performance was helped by increased production at its two refineries and higher sales of gasoline, diesel and jet fuel. Caltex’s dismal performance in 2011 included a A$1.12 billion write-down on its ageing Kurnell refinery in Sydney which it has decided to shut down and convert into a storage terminal next year.

Its refining and supply operations delivered a significant turnaround with an A$88 million profit compared with a A$208 million loss in 2011.

“Improved refinery reliability, particularly through the second half, resulted in the highest production volumes since 2007. This allowed Caltex to take advantage of more favourable externalities, including a stronger refiner margin of US$11.83 per barrel compared with US$7.98 in 2011,” it said.

“The higher 2012 result is due to continued growth within Marketing & Distribution, a lower depreciation charge as a result of the 2011 refinery impairment, and improved refinery reliability and higher production volumes which allowed Caltex to capitalise on more favourable externalities, including strong second half refining margins,” said managing director and CEO Julian Segal.

Caltex, which is 50% owned by US major Chevron, will pay shareholders a A$0.23 dividend per share compared with A$0.28 the previous year.

 

IRAN: Oil products storage terminal starts up in Kerman city

(EnergyAsia, February 27 2013, Wednesday) — Iran has started up a new oil products storage terminal in the southeastern city of Kerman. The National Iranian Oil Products Distribution Company, a subsidiary of state NIOC, invested more than US$50 million to develop the 350,000-cubic metre terminal to store gasoline, jet fuel, kerosene and diesel. According to…

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ASIA: Canada must seize opportunity to export oil and gas to emerging markets, says former Cabinet minister Prentice

(EnergyAsia, February 27 2013, Wednesday) — Canada must capitalise on its numerous advantages to develop an industry exporting oil and gas to the fast-growing markets of Asia and reduce its traditional dependence on the US, said former Cabinet minister Jim Prentice.

In making this call yet again at a liquefied natural gas (LNG) conference in Vancouver on Monday, Mr Prentice, an ally of Prime Minister Stephen Harper who left government to become vice chairman of Canadian bank CIBC, has emerged as one of the strongest proponents for Canada to pursue closer energy ties with Asia.

In his speech at British Columbia’s first LNG conference, he said Canada has the advantages of having one of the shortest supply routes to Asia, a substantial resource base, supportive governments at the provincial and federal level, and a business-friendly environment that has attracted investments from many global companies.

The province is well positioned to develop a strong LNG industry that will create jobs and an export-focused competitive energy industry with long-term economic benefits for itself and Canada, said Mr Prentice.

“Everything is happening. Progress is being made on essential regulatory issues. Pipeline routes in from the gas fields are taking shape. Competition is mounting. Opportunity is emerging,” he said.

But as its oil industry, Canada must tap into new markets because gas production has declined significantly over the last several years and it should not be dependent on selling to the US.

“We’ve entered a critical period. We face the imperative to match up Canada’s resources with the needs of the Asian marketplace. We must access new and growing markets if we want to reinvigorate this important industry,” he said.

For Canada to build up a successful LNG industry, Mr Prentice said it must have a clear royalty regime, supply of skilled labour, strong environmental, health and safety management, security of electricity supply and understanding of the competitive challenge posed by the emerging gas industry in the US.

“Getting into liquefied natural gas represents a big financial bet,” said Mr Prentice.

“The stakes are high and the challenges are formidable. We need to be confident and aggressive – but we must also ensure that we resolve and bring across the finish line a number of key outstanding issues.”

Earlier this month, Mr Prentice was plain critical of what he calls Canada’s “complacent” attitude in managing its resource wealth.

Lulled by its long dependence on the US markets, he said Canada has failed to play the global energy game with skill, foresight or cohesiveness.

 

MARKETS: EIA projects world oil demand growth to accelerate in 2013 and 2014

(EnergyAsia, February 27 2013, Wednesday) — The US Energy Information Administration (EIA) has revised upwards its forecast for world oil demand growth for 2013 and 2014, reflecting improving economic conditions. In its February short-term energy outlook report, the agency said it expects world oil consumption, led by developing Asia, to rise by 1.18% to 90.21…

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INDIA: Indian Oil Corp reports 34% rise in net profit for Oct-Dec 2012 quarter, but losses surged for the year

(EnergyAsia, February 26 2013, Tuesday) — Citing increased production, sales of oil products and government compensation, state-owned Indian Oil Corporation (IOC) said its net profit for the October-December 2012 quarter rose 33.9% to 33,319.6 million rupees. (US$1=55 rupees).

India’s main refining and marketing company said government compensation amounting to 134,750 million rupee enabled it to partly recover losses from selling diesel, kerosene and liquefied petroleum gas to domestic consumers at heavily subsidised prices. For the same quarter in 2011, IOC reported net profit of 24,884.4 million rupees.

The surge, however, was not enough to save the company from reporting a bigger loss of 95,080-million rupee loss for the first nine months of the current 2012 financial year ending March 31 2013. IOC had a loss of 87,160 million rupees for the first nine months of the financial year 2011.

Commenting on the latest results, IOC chairman R.S. Butola, said its product sales volumes including exports rose by 419,000 tonnes to 19.706 million tonnes during the latest quarter compared to the corresponding quarter the previous financial year.

The company’s refining throughput edged up 42,000 million tonnes to 14.208 million tonnes for the quarter.

 

 

 

 

 

CHINA: Overseas oil production to double by 2015, predicts IEA

(EnergyAsia, February 26 2013, Tuesday) — China will double its overseas 2011 oil production to three million b/d by 2015, thanks to its relentless drive to invest in oil and gas assets in producing countries, said the International Energy Agency (IEA). By then, China’s overseas production place it in the world’s top 10 oil producers…

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MARKETS: Drewry predicts oil tanker overcapacity to “gradually ease” from next year

(EnergyAsia, February 26 2013, Tuesday) — The global oil tanker market could begin a slow recovery next year as the current glut eases up, predicts UK-based Drewry Maritime Research.

For 2013, the shipping intelligence firm said the industry faces “another tough year” as tanker owners continue to struggle under the pressure of overcapacity. A predicted 2.6% rise in tanker tonnage to 330 million dwt in 2013 will partly be offset by the delivery of 26.4 million dwt in new tonnage.

Tonnage demand edged up 0.6% to 325 million dwt in the fourth quarter but supply expanded by 4.3 million dwt to exceed 412 million dwt, said Drewry.

The market has been weighed down by a “persistent weakness” in freight rates together with high bunker prices, limited availability of credit and very low earnings.

With such a poor outlook on earnings, Drewry said owners are reluctant to take deliveries resulting in delivery slippage hitting a high of 38% in 2012. Even the strategy of yards to attract owners by offering vessel designs with improved efficiency in the scenario of rising fuel cost does not seem to be working at this stage.

“Capacity expansion in the dirty tanker segment was faster than for clean tankers, at 3.4% compared with 2.5%. In both categories, almost all the additions took place in larger vessels segments such as VLCC, Suezmax and LR2,” it said.

“The fleet of smaller vessels shrank, suggesting that owners are being attracted to the economies of scale offered by larger vessels. Deliveries continue to outpace strong demolitions, which reached their second highest level for five years with over 11 million dwt demolished.”

Global oil consumption only managed a timid growth in the fourth quarter of 2012, with global crude oil loadings increasing by 0.6%.

OECD consumption shrank by 1.0%, despite US Gulf Coast refiners increasing imports of heavy crude from the Middle East Gulf by 2%. This contrasted with a 2.7% increase in non-OECD countries as weak US demand for light crude forced West African producers to export to eastern markets.

Drewry said the orderbook has now shrunk to a mere 12% of the existing fleet, which suggests that the pace of supply growth will lose some steam after 2013.

With less than 13 million dwt of tanker tonnage ordered in 2012, Drewry expects the tanker fleet to grow at relatively slower pace of about 3% CAGR during 2013-17, to 487 million dwt. This is down from 14.9 million dwt and 36 million dwt in 2011 and 2010 respectively.

The company expects a “good recovery” in tonnage demand from 2014 as a result of an improving global economy and rising oil demand driven by Asia, the Middle East and Latin America.

For the period from 2013 to 2017, it expects tanker demand to rise steadily by about 5% a year to reach 405 million dwt.

 

JAPAN: Saudi Arabia agrees to guarantee stable oil supply, says minister Motegi

(EnergyAsia, February 26 2013, Tuesday) — Energy-short Japan is convinced that Saudi Arabia will remain a reliable and stable supplier of crude oil in the event of production disruptions and emergencies, said Economy, Trade and Industry Minister Toshimitsu Motegi following his recent visit to the kingdom and Abu Dhabi. Japan is calling on old favours…

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CONFERENCE: Canada’s first international LNG event to be held in Vancouver Feb 25 and 26

(EnergyAsia, February 25 2013, Monday) — Canada’s first international conference focused on the rapidly expanding liquefied natural gas (LNG) industry will be held in Vancouver city in British Columbia province today and tomorrow.

British Columbia Premier Christy Clark will open the event at the Vancouver Convention Centre attended by global investors, domestic and international traders, government leaders, First Nations representatives, learning institutions, environmental groups, and members of the media to discuss issues facing the industry, in particular its development in the province.

Addressing “The Fuelling the Future: Global Opportunities for LNG” conference, expert speakers will discuss global market developments, supply-demand balances, pricing across regional markets, regulatory practices, environmental regulations, labour demand, pipeline construction and plans.

Some of the industry speakers invited by the province’s Ministry of Energy, Mines and Natural Gas, which is organising the conference, include Anders Ekvall, Vice President, LNG Americas, Shell Canada Services Ltd; Elizabeth Spomer, Senior VP, Global Business Development, BG Group; Mike Culbert, President and CEO, Progress Energy Canada Ltd; Luo Weizhong, Executive VP, CNOOC Gas and Power Group & President, CNOOC Gas & Power Trading & Marketing Ltd; Jeff Lehrmann, President, Chevron Canada Limited; Dave Montgomery , Senior Vice President, NERA Economic Consulting; Shinya Miyazaki, CEO, Diamond Gas Management Canada Ltd, a wholly-owned subsidiary of Mitsubishi Corporation, and Shuhei Miyamoto, Senior VP of the Americas & Africa, INPEX.

The British Columbia government is planning for investors to build and operate three export-oriented LNG facilities by 2020. The construction of the three projects and connecting pipelines could create up to 1,400 jobs along with many indirect jobs to support long-term operations.

 

RUSSIA: Gazprom to proceed with Vladivostok LNG project

(EnergyAsia, February 25 2013, Monday) — Prodded by Russian President Vladimir Putin, state gas monopoly Gazprom said it has made a final investment decision to build a liquefied natural gas (LNG) project on the Pacific Coast targeting export to Asia. The company said it will build an export terminal along Perevoznaya Bay on the Lomonosov…

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AUSTRALIA: Kogas appoints advisers to sell stake in Gladstone LNG project

(EnergyAsia, February 25 2013, Monday) — State utility Korea Gas Corp (Kogas) said it has appointed Samsung Securities Co and Rothschild to advise on the potential sale of its stake in the Gladstone liquefied natural gas (GLNG) project in Australia’s Queensland state.

Kogas is looking to make a profit on the A$665 million that it paid for its 15% stake in the US$18.5 billion project in 2010. (US$1=A$0.96).

Kogas’s plan to exit the project could be of concern to consortium partners Australia’s Santos, Malaysia’s Petronas and France’s Total who, like the country’s other LNG investors, are struggling to contain rising business costs in addition to material and labour shortages. The Santos-operated project to convert coal seam gas to LNG for export to Asia was originally budgeted at US$16 billion.

The consortium is aiming to complete the two-train terminal with a total annual capacity of 7.8-million tons by next year.

Separately, Australia-listed upstream company Blue Energy said it has appointed Kogas executive Maeng Joo Ho to its board, replacing H.B. Lee who returned to South Korea upon completion of his term at Kogas Australia Pty Ltd since 2009. His successor, Mr Maeng, has extensive experience and contacts in the LNG industry, particularly in China, Japan and Australia.

“He also has over 10 years’ experience in the development of the projects such as Donggi Senoro LNG in Indonesia, LNG Canada, Prelude and GLNG at Gladstone,” said Blue Energy.

“ Mr Maeng has been involved from the start of the Prelude and GLNG projects. He has recently been appointed as a director of Kogas Australia, one of the four shareholders in the GLNG project.”

Blue Energy chairman, John Ellice-Flint, who praised Mr Lee’s contribution was managing director of Santos from December 2000 to March 2008.

JAPAN: Government to offer one trillion yen in loan guarantees for LNG investments

(EnergyAsia, February 25 2013, Monday) — Stunned by the country’s rising energy import bill, the Japanese government will soon offer one trillion yen in loan guarantees to back investments in liquefied natural gas (LNG) projects. Industry minister Toshimitsu Motegi announced the plan last week as Japan’s economy continues to struggle under the weight of an…

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ASIA: Wood Mackenzie tells LNG suppliers to focus on Southeast Asia instead of India

(EnergyAsia, February 22 2013, Friday) — Focus on Southeast Asia’s smaller but faster growing economies, and move India to the back row.

That’s the advice energy consultant Wood Mackenzie is giving liquefied natural gas (LNG) suppliers as it predicts the combined market of Indonesia, Thailand, Malaysia and Singapore offers far better returns.

By 2025, Southeast Asia’s LNG consumption will have risen 45 million tonnes/year to account for a third of Asia’s LNG demand growth, more than double India’s consumption increase of just 20 million tonnes/year.

“Recent developments in Indonesia and Thailand have helped strengthen the outlook for very strong Southeast Asian LNG demand growth,” said Wood Mackenzie’s senior gas market analyst, Nicholas Browne.

“In India, we are now seeing faltering domestic gas production and this is expected to limit the development of the gas market. Perhaps counter-intuitively to some, reduced gas production will also lower the rate of LNG market growth in India.”

He expects Indonesia to become a major LNG consumer to the point that demand will eventually outpace domestic supply.

“Early coal bed methane pilot well results in South Sumatra indicate that production will not meet previous expectations providing more headroom for LNG,” he said.

Mr Browne expects Thailand to consume more natural gas in favour of coal for power generation.

“This will drive LNG demand significantly post-2020 as indigenous gas and pipe imports will be unable to meet the demand,” he said.

India faces the prospect of declining domestic supply with production faltering at Reliance’s key D6 block, down from a peak of 20 billion cubic metres (bcm) in 2010 to 11 bcm in 2012. Wood Mackenzie forecasts production from D6 to continue falling, reducing the overall outlook for Indian gas production.

Mr Browne said: “This will constrain gas availability to the market, mainly impacting the power sector in the medium term. In the longer term, reduced production will preclude the development of greenfield fertiliser production as it is not economical to develop facilities purely based on LNG imports.

“In addition, LNG demand growth in other industrial sectors is further limited by reduced economic growth expectations.”

Overall, Asia’s LNG demand will remain strong with China expanding its LNG import infrastructure, and Japan and Taiwan moving to reduce their dependence on nuclear power.

 

AUSTRALIA: Estimated cost of APLNG project raised 7.4% to A$24.7 billion

(EnergyAsia, February 22 2013, Friday) — The estimated cost of yet another proposed export-oriented liquefied natural gas (LNG) project in Australia has been raised. Due to increased community consultations and worries over water contamination, operator Origin Energy Limited said it and its partners now estimate it would cost A$24.7 billion to build the Australia Pacific…

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AUSTRALIA: Foster Wheeler awarded contract to supply steam generators for LNG export terminal near Darwin

(EnergyAsia, February 22 2013, Friday)– Foster Wheeler AG said a subsidiary of its Global Power Group has been awarded a contract to design and supply three utility package steam generators for the onshore liquefied natural gas (LNG) facilities located near Darwin in Australia’s Northern Territory.

The contract was awarded by the joint venture comprising CH2M HILL Australia Pty Ltd and UGL Engineering Pty Ltd, two key engineering firms working on the Blaydin Point facilities that are part of the project to produce and export natural gas from the offshore Ichthys field.

Foster Wheeler said it has received a full notice to proceed on the contract, but declined to disclose its value.

The Zug, Switzerland-based firm said it will design and supply the package steam generators along with the auxiliary equipment to enable the facilities to burn both low pressure natural gas and liquid iso-pentane while meeting applicable environmental regulatory requirements. The three steam generators will be designed to generate a total of 278 tonnes per hour of high-pressure superheated steam which will be fed to the customer’s steam header.

“Our package steam generators have been an integral part of our steam generator product range for over 60 years,” said Byron Roth, CEO of Foster Wheeler North America Corp., which will be executing the contract.

Japan’s Inpex is leading a consortium to develop the US$34 billion Ichthys project that could supply as much as 10% of the country’s future LNG demand when it starts up in the fourth quarter of 2016. The consortium’s other shareholders are France’s Total and Tokyo Gas, Osaka Gas, Chubu Electric and Toho Gas.

 

 

 

UPSTREAM: Investors demand oil and gas companies to reduce and report risks from fracking operations

(EnergyAsia, February 22 2013, Friday) — Citing concerns over water management, toxic chemical disclosure, greenhouse gas emissions and other community impacts, some investors in the US are demanding oil and gas companies to disclose critical information about the ways they are managing and measuring the risks associated with hydraulic fracturing, or “fracking,” operations and shale…

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THAILAND: Upstream firm PTTEP reports record 2012 profit on higher output and oil prices

(EnergyAsia, February 21 2013, Thursday) — Bouyed by increased production and higher oil and gas prices in 2012, Thailand’s leading upstream company PTT Exploration & Production Pcl (PTTEP), said profit surged 28% to a record 57.32 billion baht from 44.75 billion baht in 2011. (US$1=29.9 baht).

Revenue was up 25.8% to 218.14 billion baht while cost rose 26.9% to 118.85 billion baht to yield a 21.68% return on shareholder’s equity.

President and CEO Tevin Vongvanich said the board has approved paying a second half dividend of three baht per share for a full-year total of 5.80 baht per share.

The company said it sold its production at an average price of US$64.86 per barrel of oil equivalent (BOE), up sharply from US$55.49 per BOE in 2011. Its sales volume were also up, by 4.1%, to 275,923 barrel of oil equivalent per day (BOED) compared with 265,047 BOED in 2011, thanks to increased sales of oil and gas from its holdings in Thailand’s offshore Bongkot South and onshore S1 fields, and the 16-1 project in Vietnam.

PTTEP said crude and condensate comprised 71% of its 901 million barrels of oil equivalent (MMBOE) of proved reserves at the end of 2012, and natural gas the remaining 29%. The total reserves, however, do not include the company’s holdings in two gas fields in Vietnam as it has not signed any sales agreement yet on their output.

PTTEP said its assets were worth a total of 601.51 billion baht at the end of 2012, up 34.3% from 447.84 billion baht in2011.

Giving an update of the company’s main projects, Mr Tevin said the S1 Project produced an average 28,000 b/d of crude oil while Bongkot yielded 596 million standard cubic feet/day (MMSCFD).

On the international front, Mr Tevin said he expected the offshore Zawtika in Myanmar to begin gas production next year with development work more than 63% completed.

PTTEP is also working on developing projects in Australia’s Montara field and Mozambique’s Rovuma area which could be producing liquefied natural gas from 2019.

It expects to start production in some of its Algerian oil fields next year while raising oil sands production in Canada from 15,700 b/d in 2012 to 40,000 b/d.

Mr Tevin said he expects PTTEP, which is working on 44 projects worldwide, to have a “very high” chance of making discoveries this year to follow on last year’s successful find rate of 34 out of 54 exploration and appraisal wells.

In an earlier announcement, he said PTTEP is planning to invest a total of US$25 billion over the next five years to develop its upstream assets in Australia East Africa, North America and Southeast Asia, setting the stage for production to at least double to 600,000 BOED by 2020. Last December, the company raised US$3 billion in Thailand’s largest ever equity offering to pay for its acquisition of UK’s Cove Energy Plc, which is developing oil and gas reserves in Mozambique.

The company’s parent, PTT, is looking to invest in liquefied natural gas (LNG) and shale gas projects in North America.

 

CHINA: Russia’s Rosneft could double crude export to 600,000 b/d as part of new oil-for-loan deal

(EnergyAsia, February 21 2013, Thursday) — Russia’s leading crude producer, Rosneft, could double its 300,000 b/d crude exports to China as part of a new ageement to raise at least US$30 billion to fund upstream projects in the Arctic and Siberian regions. Rosneft, which recently announced an upstream tie-up with ExxonMobil, has targeted to develop…

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UAE: Crescent Group to focus on expanding Russia ties in 2013

(EnergyAsia, February 21 2013, Thursday) — UAE’s Crescent Group said it plans to expand its cooperation with Russian companies this year, starting with two port and logistics investments.

The group will undertake these projects through its two subsidiaries, Crescent Petroleum, the oldest private oil company in the Middle East, and non-energy firm, Crescent Enterprises, which controls the world’s largest privately owned ports operator Gulftainer.

Sharjah-based Crescent Group said it has established strong Russian links over the past five years that includes a close working partnership with the country’s leading oil company, Rosneft, which is producing more than 2.6 million of b/d of oil.

In 2010, the two companies signed an agreement to jointly pursue upstream projects in the Middle East, with Rosneft joining Crescent Petroleum in exploring a 1,250 sq km onshore Sharjah gas concession.

The partners drilled their first exploration well in November 2011, and are planning a second well in coming months after completing an extensive and state-of-the-art 3-D seismic survey.

Separately, Gulftainer is investing more than US$300 million to increase its port coverage in the Baltic and the Black Sea areas in addition to plans to expand in the Ust-Luga port in Leningrad Oblast, 110 kilometres from St. Petersburg. The company is aiming to handle 7.5 million twenty-foot-equivalent (TEU) of cargo and more than 2.5 million TEU containers capacity at these ports.

Gulftainer will also develop its provision of services to include inland container depots, facilities and road delivery throughout the country while using rail services, to transfer significant volumes and improve the competitiveness of its land transport performance.

The company said it is holding advanced discussions with potential Russian partners to prepare for “consistent double-digit growth” in the country.

Describing the UAE and Russia as natural partners, Badr Jafar, Crescent Group’s managing director and CEO of Crescent Enterprises, said:

“Together, these two countries account for 36% of world oil production and 29% of world gas production. We are only just beginning to realise the full potential of this bilateral relationship.”

Crescent Petroleum is focusing its efforts on developing joint energy ties, working together with its Russian counterparts to identify new opportunities in upstream and midstream natural gas as well as power in the Middle East and North Africa.

 

 

 

CHINA: Companies raised refined fuel and foreign crude oil output in 2012

(EnergyAsia, February 21 2013, Thursday) — Chinese companies raised their production of refined products at home and crude oil from abroad last year. Responding to rising domestic consumption, Chinese refiners processed 467.91 million tons of crude oil in 2012 for a 3.7% increase over the previous year, said the National Development and Reform Commission. The…

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