UK-based Cairn Energy said it has received approval from the Indian government for the farm-out of certain assets to Indian upstream company ONGC and its farm-in to two exploration exploration blocks belonging to ONGC. Approval was given by the Cabinet Committee on Economic Affairs. Cairn said completion of the transaction is subject to execution of...

The Asian Development Bank (ADB) has earmarked US$600 million over the next 3 years to kickstart the Afghanistan economy, including up to US$100 million for power transmission and distribution repairs. ADB has also approved a grant for US$750,000 to design an effective and independent regulatory system for the gas sector. There will be an independent...

Sri Lanka’s leading business chamber wants local fuel and electricity prices to rise to close the gap against international energy costs. The Ceylon Chamber of Commerce met recently to discuss the impact of rising international oil prices on the Sri Lankan economy. The Chamber wants “an immediate revision of gasoline, diesel and electricity prices in...

Marubeni Corp will enter into an agreement with FuelCell Energy, Inc. (FCEL) and Kawasaki Heavy Industries to become a packager of Direct FuelCell(R) power plants in Japan. Marubeni and Kawasaki are Japanese companies. Kawasaki will purchase a DFC300A power plant from Marubeni, to be installed at the Kawasaki Akashi Works near Osaka, Japan, where it...

Australia’s largest resources company BHP Billiton today said it has selected a site 4.5 km off the town of Onslow, in the Pilbara region of Western Australia state, as the location for a proposed liquefied natural gas (LNG) plant. It said the site was chosen after an extensive site selection study that incorporated a broad...

Japan’s Kansai Electric Power Co it has recently reactivated two nuclear power reactors after receiving a green light from Fukui prefecture governor Issei Nishikawa, according to the Japan Times. The reactors had been shut down following a non-radioactive accident at another reactor that killed five workers at the Mihama atomic plant in Fukui prefecture last...

China is undergoing its worst power crunch in two decades. Poor planning and booming economic growth have pushed demand for power beyond the capacity of China’s struggling generators. But even with measures designed to curb electricity usage, analysts predicts that there will still be power shortages in the second half of this year due to...

High energy prices and better-than-expected sales volume helped state Abu Dhabi Gas Liquefaction Ltd. (Adgas) surpass its sales and revenue targets for the year-to-date, the company said. “Actual year-to-date sales volume of four million metric tonnes is higher than the target of 3.71,” it said, according to the Khaleej Times. Year-to-date production stands at 4.07...

The Korean government will not lower oil taxes even though there is strong political pressure for cuts. According to the Korea Times, lawmakers from both the ruling Uri party and the main opposition party, the Grand National Party, have called for oil tax cuts as high oil prices are hurting overall spending and putting pressure...

The Indonesian Tangguh liquefied natural gas (LNG) project is set to be back on track following the signing of two major contracts. Early this month, BP and its partners signed a sale agreement for 600,000 metric tons of LNG a year for 20 years with K Power of South Korea. The contract to begin in...

Merger talks are rife in India’s oil sector these days. According to the Business Standard, the petroleum ministry is considering plans to merge Bharat Petroleum Corporation Ltd (BPCL) with Indian Oil Corporation and Oil India Ltd (OIL), and for Hindustan Petroleum Corporation Ltd (HPCL) to go with Oil and Natural Gas Corporation (ONGC) and Mangalore...

Dubai Electricity and Water Authority (DEWA) is aiming to install power capacity of 5,300MW by 2010 from 3,833MW now, which just about meets Dubai’s power needs. DEWA is actively expanding capacity to meet projected rising demand for power in the emirate. Its proposed Phase-II expansion in Jebel Ali is expected to have a 1,200MW capacity...

Hongkong Electric, the power flagship of tycoon Li Ka-shing, is in talks to enter Britain’s gas-distribution business for the first time by acquiring part of Cheung Kong Infrastructure’s (CKI) stake in a network of gas mains in the north of England. According to a report in the Hong Kong Standard, CKI holds 38.9% in Hongkong...

Australian upstream company Amity Oil Limited has unveiled a set of sterling results for the year to June 30. The company said its operating profit for the year to June 30 rose 32% to A$14.7 million while sales revenues were up by a third to A$20.6 million. (US$1=A$1.4) Gas production increased by 67% over the...

Papua New Guinea’s Oil Search has reported record half-year after-tax profit of US$60.1 million, 65% higher than same period last year. Core profit after tax (excluding exploration write-offs and non-recurring capital items) rose 29% from US$40.2 million to US$52.1 million over the same period. The company said the improved performance was due largely to higher...

Thailand’s Ministry of Energy has asked the Cabinet to approve its proposal to raise the retail price of diesel by three baht per litre to better reflect higher oil prices on the world markets. The diesel price is to be deregulated next year. According to the Business Day, Metta Bantherngsuk, director-general of the Energy Policy...

Oman Oil Company (OOC) has promoted deputy CEO Ahmed bin Salim Al Wahaibi to CEO, succeeding David C Douglas who resigned recently. His appointment was announced by Commerce and Industry Ministry Maqbool bin Ali Sultan, who is also OOC chairman. Mr Wahaibi was deputy CEO for four years before his promotion. Mulham Al Jarf is...

Malaysian integrated oil and gas services company Petra Perdana Bhd (Petra) has won a contract from Sarawak Shell Bhd (SSB) to provide on-shore fabrication and installation work for the MLNG Bintulu Stabilisation 1 and 2 Plant (BSTAB) at the Bintulu crude oil terminal in Sarawak state. The contract is worth RM11 million. (US$1=RM3.8). Petra Perdana...

BP’s much-respected annual “Statistical Review of World Energy” has come under fire from the Association of Peak Oil and Gas (ASPO) who charge that the energy major uses world oil reserves data from sources that do not comply with Securities Exchange rulings and differ sharply from ASPO’s own estimates. ASPO, a grouping of noted former...

The Korea Institute of Public Finance (KIPF) has recommended the government to gradually raise diesel prices from next year on environmental and economic grounds. According to the Korea Herald, Kwon O-sung, a reseach head at the institute said the government should start raising diesel fuel prices from July 2005, eventually bringing it to about 85%...

Alinta is expected to become 20%-owner and operator of Australia’s biggest gas transmission system, the Dampier-to-Bunbury natural gas pipeline, reported the The Australian newspaper. The company will become a member of a consortium that includes Alcoa (also 20%) and the recently listed Diversified Utilities Energy Trust, backed by Macquarie Bank and AMP Capital, holding the...

Shell International Gas Ltd (Shell) and Shanghai Pudong Bus Transportation Co., Ltd. have jointly launched a road trial of Shell’s clean gas-to-liquids (GTL) fuel in China’s Shanghai city. Buses from Pudong Bus Transportation Co., Ltd. will be fuelled by a blend of GTL Fuel and standard diesel over a two-month period on a route through...

PTT Exploration and Production Plc, Thailand’s second-largest oil producer, said it wants to sell off its 40% stake in Indonesia’s upstream company Medco Energi as it is not satisfied with the returns on investments. “PTTEP has a policy to invest directly in each overseas oilfield in order to be able to manage the business instead...

Bouyed by increased profits, Australian Pipeline Trust (APA) said it is expanding its existing pipelines and seeking acquisitions, said the Sydney Morning Herald. For the year to June 30, Australia’s biggest owner of gas pipelines reported a net profit of A$121.292 million, nearly three times the A$41.046 million it earned the previous year. (US$1=A$1.4). Total...

Indonesia’s state gas distribution firm Perusahaan Gas Negara (PGN) said foreign exchange losses caused its first half net income to drop by 82% from the same period last year. According to the Jakarta Post, PGN’s corporate secretary, Widyatmoko Bapang, said net income in the first half ending June 30 was Rp 76 billion compared to...