BEIJING (XFN) – China has completed a 72-hour full mode test of its first-self designed gas-cooled nuclear reactor with a power generating capacity of 10 MW, the China Daily said. The newspaper said the nuclear power project has been listed as a priority project essential to China’s national energy strategy for the near future. It...

SINGAPORE (AFX-ASIA) – ING Financial Markets said it has downgraded its rating on Asia’s utilities sector to ‘underweight’ from ‘overweight’, seeing that the sector will be the “slowest” to benefit from a possible relief rally in the event of a resolution to the Iraq crisis. “Utilities have traditionally been viewed as a defensive sector and...

HONG KONG (AFX-ASIA) – Beijing Datang Power Generation Co Ltd executive director and chief operating officer Yang Hongming said the company will not be required to set aside further provisioning for a Mongolian unit, which resulted in a rise in its 2002 finance cost. Mr Yang said the company’s 2002 earnings were affected by a...

BEIJING (XFN) – China National Oil and Gas Exploration and Development Corp (CNODC) has signed an agreement with the Syrian Ministry of Petroleum & Mineral Resources and Syrian Petroleum Co (SPC) for CNODC to invest US$100 million to develop a Syrian oil field, the Shanghai-based International Finance News said. The newspaper said the two plan...

BEIJING (XFN) – The Shanghai government has agreed to co-operate with China’s three leading petroleum producers, in an aim to re-open the Shanghai oil exchange, the Beijing Youth Daily quoted sources with a Chinese national petroleum enterprise association as saying. The three petroleum companies are China Petroleum & Chemical Group (Sinopec Group), China National Petroleum...

BANGKOK (AFX-ASIA) – Bangkok Aviation Fuel Services (BAFS) plans to begin construction of a fuel storage facility for the New Bangkok International Airport (NBIA) in August, Businessday reported. Managing director Supadis Diskul said he expects BAFS to complete the construction of the storage facility by December 2004. BAFS has yet to decide on the most...

KUWAIT CITY (AFX) – US military forces and Arab Gulf states preparing for possible war against Iraq have taken steps to protect oilfields, refineries and tankers from an Iraqi counter-attack, or an Islamic militant bombing, a US Navy spokesman said. An armada of US and allied vessels is available to protect tankers, while the US...

Thailand’s upstream company PTT Exploration and Production Public Co., Ltd (PTTEP) has launched the issue of an inaugural, unsecured, unsubordinated 15-year maturity 2.5 billion baht bond. (US$1=43 baht). This is the company’s first 15-year bond issue. The lead arranger is Barclays Capital Securities (Thailand). The offer is scheduled for completion by the end of this...

General Electric Power Systems (GEPS) has signed several contracts with five Chinese power producers to supply them gas turbines worth some US$900 million. An additional contract will be signed shortly that, in total, will provide the producers with 13 GE 9FA gas turbine-based combined cycle systems. Jeff Immelt, GE chairman and CEO, said: “The agreement...

Australia’s North West Shelf JV recently finalised liquefied natural gas (LNG) sale and purchase agreements with Korea Gas Corporation (Kogas) and Japan’s Tohoku Electric Power Co Inc. The seven-year deal with Kogas, through a Letter of Intent signed on January 17, is the first with the Korean firm. The first delivery, on an ex-ship basis,...

Singapore Exchange-listed VibroPower Corporation Ltd, a leading regional specialist in power needs, has entered into an agreement with Volvo Penta to take over its generator set (genset) assembly and distribution business in Malaysia. In a joint statement, the two companies said that Swedish Volvo Penta Ð which recorded sales in Malaysia worth roughly RM 25...

Unocal Thailand Ltd and its partners said they expect to invest nearly US$300 million (12,600 million baht) on crude oil and natural gas projects in 2003 to support Thailand’s drive to reduce imported energy. “The Thai economy is strong, growing, and needs the continued expansion of domestic energy supplies and improvement in the efficient use...

SYDNEY (AFX-ASIA) – Oil Search Ltd said its 2002 net profit rose almost 270% to A$87.2 million on an expanded production base from its merger with Orogen Minerals in April 2002 and higher prices for oil and gold. (US$1=A$1.65) The result was in line with the A$87.3 million market consensus according to Multex Global Estimates....

OSLO (AFX) – Statoil ASA said it has been named commercial operator for Azerbaijan’s Shah Deniz gas and condensate field in the Caspian. The project has an overall investment budget of US$3.2 billion, with Statoil’s share amounting to US$815 million, it said. Statoil said the field will increase the group’s booked reserves by 85 million...

BEIJING (XFN) – Guangdong Guangdian Power Grid Co, which runs power transmission and distribution networks in Guangdong province, has postponed its global public share offering because of its merger with three other poorer counterparts, bankers involved said. Guangdong Guangdian Power originally planned to raise up to US$1.5 billion through a dual listing in Hong Kong...

US energy consultants ESAI said the crude oil markets have been plagued by uncertainties that have elevated the role of market psychology in shaping prices. As a result, oil prices have been volatile and generally stronger than warranted. Looking forward, ESAI, in the latest edition of Pacific Basin Stockwatch, believes some of these uncertainties will...

SEOUL (AFX-ASIA) – Moody’s Investors Services said that the credit profiles of the state-owned power generation companies in South Korea will likely remain stable as moves by the government to reform the country’s electricity sector will occur in a gradual manner, ensuring supply stability and minimal price volatility for at least the next two years....

BEIJING (XFN) – China United Coalbed Methane Co Ltd (CUCBM) signed a production-sharing contract with Sino-American Energy Inc yesterday to jointly develop coalbed methane resources in the northern Chinese province of Shanxi, Xinhua news agency said. The agency quoted Huang Zhida, general manager of CUCBM, as saying the contracted block of 150.8 sq km is...

BEIJING (XFN) – The Shanghai government is planning to re-open the Shanghai oil exchange to revive oil futures trading in China in a bid to help Chinese companies hedge risks arising from international oil price hikes, Liu Xuemin, secretary general of a Chinese national petroleum enterprise association, said. He confirmed to XFN that Yang Jingmin,...

Japan’s Ministry of Economy, Trade and Industry said it is pushing ahead with plans to deregulate the country’s power and gas markets, and will soon submit bills to update the country’s electricity and gas laws. According to local media, the bills will favour greater competition and expand alternatives for users in line with a recommendation...

Following the announcement on 7 March that it would sell half its interest in the North Caspian Sea Production Sharing Agreement (PSA) to China’s CNOOC North Caspian Sea Ltd, BG Group said yesterday that it would sell its remaining interest in the PSA to another Chinese company, Sinopec International Petroleum Exploration and Production Corp for...

SYDNEY (AFX-ASIA) – Standard and Poor’s said it has raised its short term credit rating on Caltex Australia Ltd to ‘A-2’ from ‘A-3’ and revised its outlook to ‘stable’ from ‘negative’ following the company’s 2002 results, which showed improved performance and significant debt reduction. S&P has affirmed the company’s ‘BBB’ long-term rating. In a statement,...

The cost-effective high performance KFELS MOD V (B) premium jackup rig is poised to become the benchmark for deep-well drilling, said Singapore’s engineering group Keppel FELS. ENSCO International Incorporated, a leading offshore drilling contractor announced that one of its principal subsidiaries, ENSCO, has chosen Keppel FELS’ proprietary jackup (JU) design, the KFELS MOD V (B)...

MANILA (AFX-ASIA) – Energy Secretary Vicente Perez said the government should not consider divesting its 40% stake in Petron Corp at this time when oil supply security is a major concern. “We believe it’s a most inopportune time to be divesting (the government’s) stake in a major player like Petron given that oil security is...

BEIJING (XFN) – Several overseas power companies are targeting China’s power sector, with the industry set to see increased mergers and acquisitions activity in the coming years, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) said. MOFTEC said on its website that Shenzhen Energy Group Co has signed an agreement in Jan 2002 to...