BEIJING (AFX-ASIA) – Sinopec Zhenhai Refining & Chemical Co Ltd (HK 1128), a unit of China’s largest oil refiner, China Petrochemical Corp (Sinopec Group), plans to process 14 million tons of crude oil in 2004, up 2.94% year-on-year, a company official told AFX-Asia. Zhenhai, with an annual refining capacity of 16 million tons, processed 13.6...
SYDNEY (AFX-ASIA) – Australia’s Takeovers Panel said it has decided not to make an interim order preventing Indonesia’s PT Medco Energi Internasional from sending a bidder’s statement to Novus Petroleum shareholders, after receiving submissions from both parties. Novus had sought an interim order preventing the dispatch of the bidder’s statement for seven days or until...
MANILA (AFX-ASIA) – Manila Electric Co (Meralco) is in talks with creditors to extend payment for maturing loans of close to 5.3 billion pesos by another six months, the Philippine Daily Inquirer reported, citing company president Jesus Francisco. (US$1=55 peso). The short-term loans are falling due this month. The company was already granted a 6-month...
BEIJING (AFX-ASIA) – China is being urged to spend US$10 billion to boost its shipping capacity which will enable Chinese fleets to transport half of the nation’s oil imports by 2005, rather than rely heavily on foreign ships, the China Daily reported, citing industry sources. The Ministry of Communications, along with major domestic shipping companies...
LONDON (AFX) – Benchmark oil prices are expected to fall back from recent highs during 2004 in currency-weighted terms, driven down by increased production from Iraq and non-OPEC countries, according to UK-based analysts. But analysts from the US and Japan disagree. UK-based analysts see Brent crude futures declining to the region of US$26-27 a barrel...
SINGAPORE (AFX-ASIA) – Conglomerate Keppel Corp said unit Singapore Petroleum Co (SPC) is to consider whether buying BP Plc’s retail operations in Singapore and Malaysia will fit into its expansion strategy. Last week, BP confirmed it is to sell its retail businesses in Malaysia and Singapore, consisting of 240 service stations in Malaysia and 30...
EnergyChina Holdings said it has been given in-principle approval by the “relevant government authority” to install an additional 180MW capacity to its Fuhuade power plant in Shenzhen. The company’s board said the expansion will be undertaken by its 70%-owned subsidiary Shenzhen Fuhuade Electricity Co Ltd. “Together with the existing generating units and the expansions already...
Thailand will take its first step towards becoming a regional energy centre when it officially unveils the Si Racha Hub free zone, located in the Si Racha and Si Chang Island districts in Chon Buri, for oil distribution and trading. Prime Minister Thaksin Shinawatra will preside over this month’s opening of the Eastern Seaboard zone,...
BEIJING (AFX-ASIA) – China will begin operating its regional northeastern power grid on a trial base from Jan 15, to test the feasibility of the project and to pave the way for final implementation of reforms, the country’s electricity industry regulator said. In a statement, the State Electricity Regulatory Commission said the reforms are aimed...
LONDON (AFX) – Goldman Sachs’ equity analysts have upgraded recommendations on BP PLC and Shell Transport & Trading Co PLC, and downgraded Total SA and ENI in a research note on the European oil sector, dealers said. The US broker moved to ‘outperform’ from ‘in-line’ on BP and Shell, along with its equivalent Royal Dutch...
BEIJING (AFX-ASIA) – China’s three futures exchanges have applied to the China Securities Regulatory Commission (CSRC) to launch fuel oil, cotton and corn futures, the Shanghai Securities News reported, citing the director of the China Futures Association. Tian Yuan was quoted by the newspaper as saying the CSRC is expected to approve the Shanghai Futures...
BANGKOK (AFX-ASIA) – ING Financial Markets said it has maintained a “buy” rating on Banpu with the target price under review after Banpu entered into a memorandum of understanding (MoU) with the Electricity Generating Authority of Thailand (EGAT) and CLP Power Projects (Thailand) Ltd (CLP) over the sale and purchase of power company shares. The...
Singapore-listed Noble Group has bought an equity stake in Austral Coal which will consolidate the group’s expanding influence in the energy sector. The Hongkong-headquartered group said it paid U$11.5 million under a two tranche subscription for up to 8.93% of the company on a fully diluted basis — making Noble the largest single shareholder of...
China Petroleum and Chemical Corporation (Sinopec) and US-based Enventure Global Technology have successfully installed China’s first Solid Expandable Tubular (SETª) system for use in oil production. The effort resulted in the installation of a 107.95-mm Openhole Liner (OHLª) inside a139.7 mm base casing, and expansion out a 30 m long section milled in the base...
PARIS (AFX) – OPEC is not going to change its production levels before its next meeting on Feb 10 despite current high prices, a source close to the cartel said. Speaking from Vienna, the source also told Agence France-Presse that OPEC has “absolutely” no plans to make use of the informal mechanism whereby production can...
BEIJING (AFX-ASIA) – The government will approve a plan to build four major storage facilities in eastern China within the month to hold the country’s strategic oil reserve, the Beijing Morning Post reported, citing sources. Construction of the facilities will start later this year, the report said. The National Development Reform Commission (NDRC), which oversees...
Australian upstream company Carnarvon Petroleum has released the latest results from the Huai Phai exploration well, HP-1, in Thailand. It said HP-1, the first of three wells drilled in a campaign, was to test a potential oil bearing fault block 1.5 km to the west of the existing Wichian Buri oilfield. The next two wells...
Last week’s US oil figures sent a strongly bearish signal for prompt product-to-crude price spreads, said French investment bank SG. Stocks of key-seasonal-product distillate rose by an unexpectedly-huge 6.4 million barrels in Department of Energy (DOE) figures and an even-larger 7.6 million barrels according to the API – roughly seven times the expected build. Deliveries...
In his three years as President of Royal Vopak’s Asia division, John Paul Broeders has overseen the company’s emergence as a truly regional logistics player with expanded operations in the key markets of China, Japan, Australia, Malaysia, Thailand and Pakistan. The decision to purchase assets of former US logistics giant GATX in 2001 gave Vopak...
An unsolicited takeover bid by Indonesia’s Medco Energi Internasional for Australia’s Novus Petroleum sent the shares of both upstream companies higher last month. Analysts believe the shares of both companies could rise further. The full version of this story is available in the Jan 2004 issue of EnergyAsia Report. On December 22, Indonesia’s largest private...
TOKYO (AFX-ASIA) – LNG Japan Corp, a 50-50 liquefied natural gas (LNG) joint venture between Nissho Iwai Corp and Sumitomo Corp, is in talks with BG Group to acquire a stake in a gas field development project in the Indonesian region of Tangguh, according to a Nissho Iwai-Nichimen Holdings’s spokesman. The Nihon Keizai Shimbun reported...
BEIJING (AFX-ASIA) – China’s largest oilfield, Daqing, has cut its crude oil output to 48.4 million tons in 2003, after maintaining an annual output level of well above 50 million tons for nearly three decades, the People’s Daily reported, citing sources from the oilfield. It was the first time Daqing cut its annual crude oil...
Come New Year, the oil and gas stocks arose to their all-time high on January 2, 2004 gaining up to 12% in a single day, said an Infraline report. The sharp upmove has seen the market capitalisation of 10 major stocks from the sector soar to a whopping Rs 2,610 billion, which is about 20%...
BANGKOK (AFX-ASIA) – Banpu shares have been trading sharply higher on returning from suspension, after the disclosure of a sale and purchase agreement for stakes in power companies, dealers said. Banpu will sell 217.4 million Ratchaburi shares it holds to the Electricity Generating Authority of Thailand (EGAT) at 43.8589 baht per share, totalling 9.54 billion...
BEIJING (AFX-ASIA) – China is being urged to spend US$10 billion to boost its shipping capacity which will enable Chinese fleets to transport half of the nation’s oil imports by 2005, rather than rely heavily on foreign ships, the China Daily reported, citing industry sources. The Ministry of Communications, along with major domestic shipping companies...