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ONGC not to share rigs with other exploration cos
2007-01-23 08:56 Source : Moneycontrol.com
The state-run ONGC will not share rigs with other exploration and production (E&P) companies working in India, for any of the scheduled exploration activities expected to continue till 2009-10.
ONGC currently holds exploration rights in 168 acreages in India and is likely to get 25 more under the latest round of New Exploration Licensing Policy (NELP). The company, however, is open to sharing rigs for "future exploration activities", especially, those in ultra deepwater.
ONGC has already chartered the largest number of 21 offshore rigs in India on a long-term basis from a number of global operators such as Transocean, Premier and Dolphin at comparatively lower rentals than the existing short-term rates.
Most of the rigs are chartered till 2009-10. This apart, the company owns a fleet of over 77 rigs, including 70 onshore and 7 offshore.
"We have a large number of exploration acreages secured till NELP-V and all the rigs at our disposal are already assigned to take up exploration activities in various parts of the country lined up during the next two years," the Director (Exploration)-ONGC, Mr D.K. Pande, told Business Line.
He, however, stated that the company was keen on joining other E&P companies to share rigs with other operators for fresh charters.
"In view of rising cost of chartering offshore rigs, it would be mutually beneficial for all of us, if we can commonly charter the rigs at a cheaper rate on a long-term basis and share the same as per a pre-determined work programme," Mr Pande said.
The Director-General of Hydrocarbons, Mr V.K. Sibal, told Business Line that all the operators have evinced keen interest in rig-sharing and would soon decide upon the tendering and other modalities.
It may be mentioned that ONGC had earlier explored the possibilities of sharing rigs with the private sector major Reliance for exploration activities in KG basin.
India offers Aramco stake in three oil refineries
NEW DELHI: India yesterday offered Saudi Aramco a stake in the country's three upcoming refineries at Bina, Bhatinda and Paradip in various states of the country.
At a meeting between India's Petroleum Minister Murli Deora and his Saudi counterpart Ali Al-Niami at Delhi yesterday, Saudi Aramco also invited Indian companies to invest in a refinery in the oil-rich kingdom, an official statement said.
While state-owned Indian Oil Corporation Ltd is setting up the Paradip refinery at eastern Indian state of Orissa, another state-owned Bharat Petroleum Corporation Limited is building the Bina refinery in Central Indian state of Madhya Pradesh.
State-owned Hindustan Petroleum Corporation Limited is putting up a refinery at Bhatinda in Northern Indian state of Punjab.
The Saudi oil minister is in Delhi to participate in International Petroleum Conference "Petrotech 2007" organised by the Indian Petroleum Ministry and state-owned Oil and Natural Gas Limited.
Saudi Arabia is also keen to provide all support to India's business houses to deepen bilateral trade and investment, Saudi Commerce and Industry Minister Hashim Bin Abdullah bin Hashim Al-Yamani said yesterday.
"This is a great time for forging a true partnership between the two countries and our government will provide the business community all kind of support for this," Al-Yamani said in his address at the second meeting of the India-Saudi Arabia Joint Business Council at Delhi.
"The relationship between the two countries is improving. There is a need to improve trade and investment flow by innovative initiatives," he said.
India and Saudi Arabia shared strong and historic ties and which would be strengthened through economic ties, he said.
"India is renewing itself and becoming a model for others in the world. It is a good omen for Saudi-India business relationship," the Saudi Industry Minister said.
Addressing the meeting, Habil Khorakiwala, president of the leading Indian business chamber Federation of Indian Chambers of Commerce and Industry, said India and Saudi Arabia can collaborate in future in education, health, processed plant equipment, petrochemicals, fertilisers, infrastructure, construction, machine tools, auto components and pharmaceutical sectors. - Kuna
Devon to Sell West Africa Assets
Associated Press 01.23.07, 5:29 PM ET
Oil and gas company Devon Energy Corp. on Tuesday said it plans to sell all its assets in West Africa and focus instead on North America, Brazil and China.
The Oklahoma City, Okla.-based company, which is one of the world's leading independent oil and gas producers, plans to use any proceeds to pay off debt and buy back stock.
The properties - including an interest in a field operated by Exxon Mobil Corp. in Equatorial Guinea - held estimated proved reserves of about 90 million barrels of oil equivalent as of Dec. 31, or about 4 percent of Devon's total proved reserves. "Proved reserves" refers to crude oil and natural gas that is "reasonably certain" to be commercially producible using current technology at current prices.
Devon said it expects production of about 11 million barrels of oil equivalent in 2007 from the properties, which are also in Gabon and Cote d'Ivoire on Africa's western coast.
The company sees greater opportunities in the Gulf of Mexico, where it is drilling 30,000 feet down to produce oil.
"The significant growth opportunities we have developed onshore in North America and in the deepwater Gulf of Mexico are providing compelling rationale for redeploying our financial and intellectual capital in these areas," President John Richels said.
"As a result of the West African divestitures, we will sharpen our focus in North America," he said. "At the same time we will be concentrating our international operations in Brazil and China, where we have established competitive advantages."
Company spokesman Chip Minty said political instability in West Africa did not factor into the divestiture decision.
Goldman Sachs & Co. and Scotia Waterous will manage the asset sales. Sale agreements are expected in the second half of the year.
Shares of Devon rose $2.15, or 3.2 percent, to close at $69.43 on the New York Stock Exchange.
IOC to buy stake in Nigeria refinery
BS Reporter / New Delhi January 17, 2007
Indian Oil Corporation (IOC), the country’s largest downstream company, has major plans for Nigeria, the world’s eighth largest exporter of crude oil.
The Fortune 500 company is in talks with the Nigerian government to buy a stake in the 6 million tonne per annum (mtpa) state-owned refinery at Port Harcourt in Nigeria, besides planning to set up a greenfield refinery in the country.
“IOC has always been interested in the downstream sector in Nigeria. We are considering a refinery proposal by them,” Nigerian Oil Minister Edmund Daukoru told reporters after meeting his Indian counterpart Murli Deora today.
Daukoru is also the president of the 10-member Oil Producing and Exporting Countries (Opec).
Nigeria had targeted to refine 40 per cent of its crude oil production domestically in 2007.
“That doesn’t seem like a realistic target now. Maybe by next year we can achieve that and then target refining 70 per cent of our production by 2010,” Daukoru said. IOC is looking to cash in on this target set by Nigeria.
Nigeria imports 30 per cent of its petroleum products requirements.
Daukoru said Nigeria was planning four greenfield refineries. “There is an entry window. Our production is not infinite and so we want Indian companies to take opportunity and get involved with refining oil,” he added.
IOC had previously proposed to set up a 6 mtpa refinery in Edo state of Nigeria, provided the company was allocated an oil block.
“Our proposal still stands and we would be interested in building one of the four new refineries being planned by Nigeria if we get an oil field,” IOC chairman Sarthak Behuria said.
Daukoru said Nigeria may consider allocating oil blocks on nomination basis, that is without going through the bidding process to an Indian company.
Previously, it had allocated two blocks to ONGC-Mittal Energy on nomination basis and may extend the same dispensation to either IOC or Oil India.
He added the IOC-OIL consortium had also expressed interest in bidding for the next round of auction of around 60 oil blocks that will be offered by the end of February 2007.
Besides, IOC is also in talks with Nigeria to set up liquefied natural gas (LNG) plants. Nigeria is also looking at Indian participation in laying pipelines and setting up fertiliser plants there.
Nigeria is also considering increasing term contract to sell crude oil to IOC to 3 mtpa from the current 2 mtpa.
Nigeria: Indian Firm Gets Two Oilfields in Nigeria
Daily Trust (Abuja)
January 18, 2007
Posted to the web January 18, 2007
State-run Indian Oil Corporation (IOC) said yesterday that Nigeria has offered it two proven oil fields in exchange for setting up a 6 million tons per annum refinery here. IOC has been discussing the project with Nigeria since 2004.
IOC's investment in Nigeria may go up substantially with in the country considering the offer of an additional oil field to the India's oil giant in case it invested in liquefied natural gas project, an IOC spokesman said. The issue was taken up in a meeting in New Delhi between Indian Petroleum and Natural Gas Minister Murli Deora and visiting Nigerian Oil Minister Edmund Daukoru.
IOC said it might have to spend $2 billion to acquire a substantial stake in the two Nigerian oil fields. The two offered fields are estimated to produce 200,000 barrels of oil per day and has reserves of 1,000 billion barrels over the 15-20 year period, The Financial Express newspaper reported Wednesday.
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The spokesman said an arrangement was being worked out between Nigeria's Edo State and the IOC, adding revenue earned from the sale of crude would be invested in the construction of the refinery.
Meanwhile, oil companies operating in Nigeria are facing an escalation in expatriate salaries and security costs following the death of a Dutch oil worker during an attack by armed gunmen on Tuesday.
The worker from Hyundai, the South Korean industrial group which has a Nigerian oil service unit, was shot dead late on Tuesday in an attack on a vessel transporting Nigerian and Korean workers near a major oil and gas export terminal in the oil producing but turbulent Niger Delta region. At least one Nigerian was also killed.
Global oil majors gung-ho on India
Rakteem Katakey / New Delhi January 22, 2007
International players eye stake, domestic firms invited overseas to set up refineries.
Six deals-in-the-making were unveiled in the last seven days in the downstream sector.
Even as international companies are looking for a share in the fast-growing refinery sector in the country, domestic oil companies have been invited by countries such as Yemen, Nigeria and Saudi Arabia to pick up stake in existing refineries and also set up greenfield units.
The trend is obvious — “India is on its way to becoming the world’s refiner,” Indian Oil Corporation’s Director (Refineries) B N Bankapur said.
PASSAGE TO INDIA
International majors looking at India...
Global player Prospective
partner Refinery
project
Saudi Aramco IOC Paradeep
Total HPCL Vizag
PDVSA (Venezuela) ONGC RPL
In India, investments needed for setting up refineries is much lower, as is the cost of operation.
“Construction work in our Paradeep refinery involves around 25,000-30,000 people. Nowhere else in the world would that kind of numbers be easily available, and at competitive costs,” Bankapur said.
AIMING BIG
And Indian majors looking overseas
Indian company Destination
ONGC Yemen
RIL Yemen
IOC Nigeria
An analyst says another reason why global players are flocking to India is because the country is logistically well placed for refineries.
Besides being a major market for crude oil and petroleum products, it is in close proximity to major demand centres such as China. Also crude oil from West Asia can easily be brought to refineries in India.
The analyst adds that overseas oil companies are keen on India, as it is not easy to set up refineries in Europe and the US any more due to stringent environmental norms.
International oil majors are therefore keen to get exposure in this sector in India. Saudi Arabian company Saudi Aramco is keen to pick up a 26 per cent stake in IOC’s Paradeep refinery, while steel magnate L N Mittal is reported to be in talks with Hindustan Petroleum Corporation (HPCL) to pick up a stake in the 9 million tonne per annum upcoming refinery in Bathinda.
HPCL is also likely to offer 50 per cent stake in a new 9 million tonne refinery in Vishakapatnam to French company Total.
Total will pick up the stake in collaboration with Kuwait Petroleum, which was earlier offered equity participation in IOC’s Paradeep refinery and the naphtha cracker plant in Panipat.
“If a global player is interested in participating in our refineries, we would definitely welcome them,” Bankapur said.
Venezuelan state-owned company Petroleos de Venezuela is also interested in a stake in Mangalore Refinery and Petrochemicals.
The company’s Vice-President (exploration and production) Luis F Vierma recently said Venezuela would start exporting crude oil to India and they were keen on participating in the refinery segment in the country.
Indian oil companies too are keen on exploring foreign shores. The country’s three major oil companies – Oil and Natural Gas Corporation (ONGC), IOC and Reliance Industries – have been invited by Yemen and Nigeria to set up refineries overseas.
Yemen has invited ONGC to build a 1,00,000 barrels-per-day refinery on its Arabian Sea coast at an investment of $1 billion. Reliance too is likely to would set up a 50,000 barrels per day refinery in the West Asian country, and is also reportedly looking at utilising its expertise in refinery operations in countries such as Russia.
IOC too is planning to set up a 200,000 barrels per day greenfield refinery in Nigeria. Besides, the Fortune 500 company will bid for a state-run refinery at Port Harcourt for equity participation in the oil-rich country.
However, these refineries will only come up if the companies are given stakes in oil blocks in the countries. “We are keen on investing overseas. But we will consider a refinery in Nigeria only if substantial quantities of equity oil is made available to us,” Bankapur said.
ONGC too will set up a refinery in Yemen only if it is allotted oil blocks in the country. However, HPCL Chairman and Managing Director Mahesh Lal is the only one singing a different tune.
“When global companies are coming to India, we should attempt to cash in on the huge opportunities. We don’t need to go overseas, when the market is here,” Lal told Business Standard during Petrotech 2007.
Tryoty, you really don't know - these are just your opinions. I think I'll continue to look at this investment from all the different angles, whether good or bad. You're just assuming SEO is great today and after the elections he will be great and ERHC will soar. Well, that may be a bad assumption and so before I invest more money, I want to think about it and analyze this from all angles.
Of course, when I went back to read some of your old posts, you said that you couldn't buy anymore ERHC stock because ou didn't have the money to buy more stock. That's not good, when you don't have any money, none, or are so fully invested you can't buy a 40 cent stock.
I think I'll stick to my way of making decisions on this stock, rather than rely or yours.
ND9
Tryoty.... Looking at my ERHC investment, and SEO, and the Nigerian Presidential race, and the Nigerian corruption from many different angles isn't what I would call being paranoid. It's what I call being smart.
ND9
Walldog0, yeah, you would think that. However, how do you explain the recent Starcrest Addax deal? Look at all the immense internal scrutiny that followed in Nigeria. Surely he had to know that would happen. Yet SEO did it anyway.
So it makes me wonder.
ND9
Tryoty, no, not kidding. Somedays I think that this stock is sitting on billions of barrels of oil and if I am patient, it will make make me alot of money. Thus, maybe I should buy more............
Others days, I go read recent and old Nigerian newspaper articles on all the corruption in Nigeria. Many of those articles reference the Nigerian President, VP, and SEO. The articles also say SEO is very close to the President. In May 2007, the President leaves office, and so I'm wondering what that means to SEO and ERHE. I also wonder if he will lose some of his political muscle soon, and have to make a bad deal soon, before May.......... that will screw my investment.
So no, not kidding. I'm concerned about what's going on in Nigeria and my investment. I would think other stockholdders would be concerned also. However, I've been long and strong on ERHC and not sold a single share. I just hope I'm right in the end.
ND9
Tryoty,
Because SEO doesn't own ~700M shares. We, the rest of the shareholders do. So if you were trying to screw the rest of us common shareholders, you could possibly cut a deal under the table with SEO.......... you might have to pay him alot of money but that would be much less than paying the rest of us for the ~ 300M shares he doesn't own.
Of course, this is all speculation on my part. However, it is something I'm greatly concerned about........ I struggle with it daily when I'm trying to decide on buying more shares or not.
ND9
Nigerian VP leaves USA, returns to Nigeria
ND9
*********************************************************
“I Am Not Afraid!” Atiku Declares As He Returns To Nigeria
BY Sunny Ofili
DATE : Friday, 19 January 2007
Vice President Atiku Abubakar this evening departed his Potomac, Maryland residence on his way back to Nigeria via a British Airways commercial flight after spending slightly over a month in the United States on vacation. The Vice President spent most of his time visiting US government officials and pressure groups “sensitizing them on the need to support democracy and a peaceful political transition in Nigeria.”
The Times of Nigeria, in an exclusive interview with the Vice President shortly before departing for the Dulles International airport to board his British Airways flight to Nigerian enroute London, said he has nothing to fear or be afraid of as he returns home to launch the final leg of the campaign he hopes will propel him to the nation’s apex position.
Vice President Atiku said he is more concerned with making sure that the forthcoming elections are free and fair and enjoined all Nigerians to ensure their votes count by defending it.
“We must make sure that elections are free and fair. This is the only way to guarantee our democracy.“
Contrary to the widely reported news in Nigeria that the Vice President will be travelling back to the country on a chartered flight, he returned back to Nigeria the same way he left – a British Airways commercial flight.
“I am not afraid of anything because I have not committed any crime. I love my country and I am going back home to continue to help develop our great nation.” He said.
“I have nothing to fear. I am entitled to freedom of association and nobody can take that away from me. I have a large support base in Nigeria and I am sure I will emerge victorious in all this.”
“I plan to launch my campaign my campaign across the country as soon as return to Nigeria. We have a lot of work to do.”
“I believe that I am the most qualified to be the president of the country because I have the experience. I have been involved in presidential campaigns since 1993. I have also been in governance since the 1999 as Vice President.”
The Vice President said he took the opportunity of his vacation to undergo a medical checkup with his doctors and he is happy that he has a clean bill of health.
He has been in the U.S. since last month after he picked the presidential ticket of the Action Congress (AC). His move to AC led to his expulsion by the ruling Peoples Democratic Party (PDP), which also declared his office vacant.
The Vice President has since scored several legal victories against the Presidency and the ruling Peoples Democratic Party.
In one of such victories last week, the Appeal Court early ruled in Abubakar's favor, saying he remained the Vice President of the country and asked the Federal Government to restore his privileges to him. This is after President Olusegun Obasanjo unilaterally declared his position vacant. The Presidency later reversed itself on the matters.
During his vacation in the U.S. the Vice President met several organizations and explained the political crisis in inn the country and his well-publicized dispute with President Olusegun Obasanjo.
However, President Obasanjo immediately sent the Minister of Aviation, Femi Fani-Kayode to present the government's position to the Americans.
Last Updated ( Friday, 19 January 2007 )
Chrome Oil Services
Hmmmm - "major E&P firms"
ND9
*******************************************************
Chrome Oil Services Limited recently acquired a site of approximately 200 acres, located along the Bonny River (within the Onne Oil and Gas Free Zone) with direct unrestricted access to the Atlantic Ocean. The acquisition is aimed at setting up world class fabrication/construction facilities to serve the entire Gulf of Guinea in the following areas among others....
There is a general consensus among global operators in the industry on the increasing importance of offshore West Africa; this is as a result of recent oil discoveries by the major E&P firms.
With this facility in Port-Harcourt, Chrome Oil Services Limited will, play a major role in the multi billion dollar field development activities of these firms.
http://www.chromeoil.com/offshore.html
BB - RAK's CEO worked at Shell.
ND9
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RAK Petroleum's Board of Directors discuss future strategy
RAK Petroleum's Board of Directors held a meeting in the company's new premises in Ras Al Khaimah where the newly appointed Chief Executive Officer, Philip Turberville and his management team presented the strategy and business development plans for the company.
United Arab Emirates: Saturday, September 30 - 2006 at 15:15 PRESS RELEASE
RAK Petroleum's Board of Directors consisting of Mr. Abdulaziz Al Ghurair - Chairman, and number of Directors, which include, Mr. Nasser Mohammed Alsharhan, Mr. Ali Samir Alshihabi, Mr. Hussain Sultan Aljunaidy, H.E. Sultan Saeed Almansoori, Sheikh Khalid Bin Saqer Alqassimi and Sheikh Saqer Bin Humaid surrounded by company's CEO Mr. Philip Turberville along with the company's staff and employees.
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'We have been evaluating many exciting business development opportunities here in the United Arab Emirates and internationally,' said Turberville. 'Now that we have a clear strategy endorsed by the board we are able to focus our resources and prioritise investment opportunities to maximize the returns to our shareholders.'
Turberville explained that several key investments will be announced in the near future, which will demonstrate clearly how the strategy is to be implemented. The CEO will also conduct a series of meetings with key shareholder groups over the next few weeks to explain and discuss the areas of focus and the opportunities that the company's strategy presents.
Turberville is a Scottish national who comes armed with a wealth of experience and qualifications, which he has gathered in the oil, gas and energy industries. Most of his prior experience has been gathered from working with Shell in the USA, Asia, Europe and the Middle East.
'I am delighted to be appointed to this position in the dynamic business environment prevalent in Ras Al Khaimah,' said Turberville. 'We are located here in the heartland of the most prolific oil and gas region in the world and the opportunities are enormous. I would like to thank the Board of Directors for honouring me with this prestigious role and the task of leading RAK Petroleum into the future.'
Turberville added that he has no doubts that the company will match the high expectations of its shareholders and in time even exceed them. He said that the young company is dedicated to maximizing the benefits of all its stakeholders.
Nigeria seeks more investment from India
Jan 16, 2007 - 8:17:43 PM
The minister said that they are looking at investments from various countries in exploration, refinery, power projects and railways among others.
By IANS, [RxPG] New Delhi, Jan 16 - Nigeria is looking for more investments from India and wants to partner with the country for its various exploration projects and infrastructure building.
'So far we have received a commitment of $6 billion from OMEL - and we have awarded them two blocks which will have an estimated assured production of 600,000 barrels per day,' Nigerian Oil Minister Edmund Daukoru said at the seventh Petrotech 2007 here Tuesday.
'From our part we have done our share and we are considering more proposals from India,' he added.
Daukoru, a former president of the Organisation of Petroleum Exporting Countries -, said Nigeria will offer 50-60 more exploration blocks for bidding by end of next month and hopes Indian companies will participate in it.
'These blocks will be a mix of newly carved blocks and revoked exploration licenses,' he said.
He also hinted that one more Indian national oil company could be considered for receiving exploration block under nomination.
'The treatment we have extended to China, South Korea and OMEL ... could be extended to an Indian company with a national face,' he stated.
The Nigerian minister said that talks were on with Indian Oil Corporation -, which has expressed desire to bid for a Nigerian refinery in which the government is planning to dilute its stake.
According to him, the Nigerian government is looking to set up four more refineries, each with a capacity of 200,000 barrels per day, in the country for which it has welcomed investments from India.
With these refineries Nigeria hopes to meet the target of refining 70 percent of crude production within the country that will help meet the total domestic requirement and also exports.
He said IOC has expressed desire for equity investment in new projects.
'We have asked them to be in talks with some private companies. Investment in the LNG projects would be $4-6 billion,' Daukoru said.
He also pointed out that Indian Oil's request for enhancing the term contract for crude to over 3 million tones from 2 million tones 'may not be possible'.
Daukoru indicated that discussions were on with India's power major, National Power Thermal Corporation Ltd, to set up power projects in Nigeria in return for supply of LNG.
He, however, made it clear that it would not be a swap arrangement but a cash deal.
'We are looking at long-term investments,' he said.
The minister said that they are looking at investments from various countries in exploration, refinery, power projects and railways among others.
Daukoru held talks with India's Petroleum and Natural Gas Minister Murli Deora.
IOC offered 2 proven oil fields by Nigeria
Indian Oil, in turn, will set up a 6 million tonne refinery
ANUPAMA AIRY
Posted online: Wednesday, January 17, 2007 at 0120 hours IST
NEW DELHI, JAN 16: Oil-rich Nigeria has agreed in principle to lease two proven oil fields to Indian Oil Corporation (IOC) in exchange for setting up a 6-million tonnes per annum (mtpa) grassroots refinery project in Edo state. The project has been under discussion since 2004.
IOC’s investment in the West African country may go up substantially with Nigeria considering the offer of an additional oil field to the Indian oil major if it invested in an LNG project. This was discussed at a meeting between petroleum minister Murli Deora and Nigerian oil minister Edmund Daukoru on Tuesday.
IOC executives disclosed that the company might have to shell out nearly $2 billion to acquire a substantial stake in the two oil fields offered by Edo state. These fields are estimated to produce 2 lakh barrels of oil a day, with reserves of 1,000 billion barrels over the 15-20 year life of the two wells.
An exclusive arrangement is being worked out between Edo state and IOC. Company sources said revenue accruing from the sale of crude from the two fields would be used to set up the refinery. IOC executives and Edo state officials held detailed talks on the time frame and management of the fields earlier on Tuesday.
The LNG project, an IOC executive said, is the latest offer in exchange for yet another oil field. “There is a proposal to join a consortium of NNPC, Shell and Connoco in an LNG project. A senior-level delegation will shortly leave for Nigeria to take the talks further,” he added.
Later at a press conference, Daukoru said IOC was also keen to bid for Port Hartog, a state-owned refinery in Nigeria put up for sale. When asked if Nigeria was open to offering blocks to India on a nomination basis, he said, “As a very special case, we will accommodate one serious investor from India in lieu of investments in Nigeria’s refining and LNG projects.”
Nigeria was also seeking investment from Indian companies in exploration and invited companies like Oil India Ltd and GAIL India Ltd to participate in the bidding for about 55 oil blocks.
Oil minister in Nigerian drill
OUR SPECIAL CORRESPONDENT
Petroleum minister Murli Deora with his Nigerian counterpart, Edmund Daukoru, in New Delhi on Tuesday. (PTI)
New Delhi, Jan. 16: Petroleum minister Murli Deora today informed his Nigerian counterpart of IOC’s willingness to set up a refinery in Nigeria. Deora also sought from Edmund Daukoru, the energy minister of Nigeria, higher crude from the African nation.
India wants import of high quality Bonny light crude from Nigeria under a term contract be raised to 3 million tonnes (mt) a year from 2 mt.
Deora discussed the possibility of Indian companies investing in liquefied natural gas (LNG) projects in Nigeria and conveyed the interest of Indian oil companies in exploration and production projects in the country.
The consortium of Oil India and Indian Oil Corporation (IOC) had participated in the last round of bidding for exploration of blocks in 2005. The joint venture of ONGC and the Mittal Group was awarded two blocks in 2005.
The Nigerian side said they were willing to let IOC invest in the downstream oil sector. They said IOC could set up new refineries or buy stakes in state-owned refineries.
Daukoru also invited IOC to invest in LNG projects. He said Nigeria would enhance crude output which offered an opportunity to increase exports under the term contract supplies to India.
Reliance in Yemen
Reliance Industries Ltd (RIL) will set up a refinery in Yemen in a joint venture with Yemenese company Hood Oil.
Yemen oil minister Khaled Mahfoudh Bahah said the refinery would initially process 50,000 barrels of oil daily and the capacity could be ramped up later.
Talking to journalists on the sidelines of the Petrotech conference here today, Petroleum minister Murli Deora said work would start this year and completed in three years.
Bahah said the products of the refinery must be sold in the domestic market for the first five months, after which exports may be permitted.
Saudi Aramco plans
With Petrotech going into full swing, West Asian companies, such as Saudi Aramco, were sniffing business opportunities. The company is scouting for Indian experts in the upstream sector.
Petrotech starts
External affairs minister Pranab Mukherjee today touted India as a hot hydrocarbon destination.
The minister threw an open invitation to the 140 companies attending the Petrotech conference to invest in the country as the “bulk of oil and gas potential remains locked up in its basins.”
China oil imports hit record
15/01/2007 13:39
Beijing - China imported a record 145.18 million tons of crude oil in 2006, up 14.5% over the previous year, despite booming oil prices, state press reported on Monday.
The world's third largest oil importing nation also imported 36.4 million tons of oil products, up 15.7% over 2005, the Beijing News reported, citing custom statistics.
China spent $81.9bn in 2006 on its oil imports, $15.2bn more than in 2005 as oil prices skyrocketed throughout the year, it said.
According to the customs statistics the price of imported crude oil stood at $457 per ton last year, up $81 from the year earlier.
The average price for refined oil products was up nearly $96 per tonne in 2006 compared with the 2005 figure, it said.
China is the world's second largest oil consumer after the United States and the third largest importer after the United States and Japan.
Oil: Mittal and Addax Join the Fray
2007-01-14
African Business
By Ford, Neil
NIGERIA
With an increasing number of Indian and Chinese firms challenging the Western majors for exploration rights, the face of Nigeria's downstream investment has changed forever. Neil Ford reports on the latest developments
Even as the Nigerian government prepared its latest exploration- related licensing round, massive new investment in recently licensed acreage was being agreed. International oil firm Addax Petroleum and Indian firm ONGC Mittal Energy have both secured new licences, helping to sustain growth in a sector that is already rapidly growing.
Nigerian national oil production capacity is expected to hit 4m barrels a day (b/d) within five years but sustained investment in exploration today should ensure that new discoveries are made and brought on stream over the next decade and beyond.
ONGC Mittal beat oil competition from BG Sahara and INC Natural Resources for the portion of OPL 246 block that was separated from the main block after the Akpo Held was spun oil. It has agreed to pay the government $100m for the licence, which was relinquished by South Atlantic Petroleum Company (Sapetro). In November, the Indian company revealed that it plans to invest N221bn ($1.7bn) in upstream projects in Nigeria. This money is expected to be invested on OPL 246 but also on other assets that it has secure.This multi-billion dollar Indian investment comes hot on the heels of a series of large financial commitments in the African oil and gas sector by Chinese companies, indicating that the pool of potential upstream investors is growing.
In the past, the majors and Western independents had dominated African hydrocarbons but Petronas of Malaysia was the first to really challenge the established order.
Now that Chinese companies, such as China National Petroleum Corporation, Sinopec and China National Offshore Oil Corporation (CNOOC), plus ONGC Mittal and ONGC Videsh of India have begun to invest in the continent, the face of the African upstream sector has been changed forever.
ONGC Mittal is a joint venture between UK-based Indian steel magnate Lakshmi Mittal and Indian oil and gas company ONGC Videsh. At present, the company is one of many Asian companies investing in a handful of African upstream blocks, but with Mittal's billions, it has the potential to become something much bigger. The firm has already secured equity on two other blocks: OPL 285 and OPL 209. The latter is located adjacent to the ExxonMobil-operated Erha scheme.
For rest of article, see link:http://www.blackenterprise.com/yb/ybopen.asp?section=ybbf&story_id=102146145&ID=blackenterpr...
"We have had a flood of investors from Asia who are interested in our downstream sector, so far as we give them opportunity in the upstream and this is forcing us to increase the number of blocs on tender ... from 50 blocs initially announced to 60," Chukwueke had said.
Nigeria offers Abu Dhabi a $400m telecommunications licence
MENAFN - 13/01/2007
(MENAFN) Reuters reported that Nigeria has offered the Abu Dhabi government investment agency a unified telecommunications licence for $400m, the telephone regulator of Africa's top oil producer said.
The Nigerian Communications Commission said Mubadala Development Company would have to pay the licence fee by January 19 or forfeit the offer.
The Mubadala offer, which includes a GSM (Global System Mobile Communication) licence, is part of a bilateral agreement between Nigeria and the United Arab Emirates, the NCC said.
Mubadala, which owns stakes in companies in the United States and Europe, including luxury sports car-maker Ferrari, said last month that it plans to also invest in the growing economies of China and Russia.
Nigeria, Africa's fastest-growing telecoms market with over 20 million telephone users, introduced the unified licence system last February at the end of a five-year exclusivity deal given to three GSM firms in 2001 to operate nationwide mobile networks, for which they paid $285m each.
India govt rejects ONGC's tie-up plan with BP, BG for KG Basin -report
AFX News Limited
01.12.07, 2:56 AM ET
LONDON (AFX) - The Indian government rejected state-run ONGC's proposals for strategic exploration tie-ups with BG Group PLC and BP PLC for three blocks in the Krishna-Godavari basin, off the southern Indian state of Andhra Pradesh coast, and another block in the Gujarat-Kutch basin, reported The Economic Times without naming its source.
ONGC received exploration licences for the three blocks in the KG basin in 2000 which will expire in May 2007, but has not been successful in exploring hydrocarbon there, and the government is now planning to put the licences up for sale in the seventh round of the New Exploration Licensing Policy.
The licensing round is expected to run April-May 2007.
The report said the petroleum ministry rejected the proposal despite last-minute appeals by the British Prime Minister Tony Blair to his Indian counterpart Manmohan Singh.
newsdesk@afxnews.com
ssa/lam
BB - you're welcome and thank you also for all your DD.
ND9
Qatar unaware of emergency Opec meet
Reuters
Published: 14/01/2007 12:00 AM (UAE)
Paris: Qatar's Oil Minister Abdullah Al Attiyah said on Friday he had not been informed of any emergency Opec meeting to discuss action to stem a 15 per cent price drop since the start of the year.
Earlier on Friday, the Dow Jones news service quoted a senior Opec delegate saying the producer group is discussing whether to hold an emergency meeting around January 20-21.
"I did not receive anything...and I've had my phone on all day. I talked to the Opec President a few days ago and we discussed the whole oil situation," Attiyah told Reuters. "I cannot jump to the conclusion there should be a meeting."
Mohammad Bin Dha'en Al Hamili, UAE minister of energy, said on Thursday Opec was deeply concerned by the price drop and stood ready if necessary to bolster the world market.
Mild weather so far this winter has curbed oil demand and pressured prices, blunting the impact of Opec's planned 500,000 barrels per day cut in supply from February 1 that added to a 1.2 million bpd reduction last year.
"Opec will act to stabilise the market if needed. We need to see the (price) trend and how the market factors the projected cut," said Al Hamili.
The Qatari minister said consultations with the president and other members of the Opec were continuing.
"We will support whatever the president decides," Al Attiyah said.
Anadarko Sets Year-End 2006 Earnings Conference Call for Feb. 6
HOUSTON--(BUSINESS WIRE)--
Anadarko Petroleum Corporation (NYSE:APC):
2006 Results
Tuesday, Feb. 6, 2007
9 a.m. CST (10 a.m. EST)
Dial-in number: 913.981.5523
Confirmation number: 4471952
Anadarko Petroleum Corporation (NYSE:APC) will host a conference call on Feb. 6, 2007, at 9 a.m. CST (10 a.m. EST) to discuss fourth-quarter and full-year 2006 financial and operating results, as well as the outlook for 2007. Earnings will be released the afternoon of Feb. 5. The full text of the release will be available on the Internet at www.anadarko.com.
To actively participate and ask questions during the conference call, please use the dial-in number. About 15 minutes before the scheduled conference time, dial 913.981.5523 and provide the confirmation number 4471952 to be connected to the conference call.
Those who wish to listen only to the live audio web cast may do so via the Internet at www.anadarko.com. The accompanying PowerPoint presentation also will be available on the Internet.
If you are unable to participate in the live call, you can hear a rebroadcast and view the presentation at www.anadarko.com.
ERHC lawyer opens office in China.
ND9
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Akin Gump ditches Brussels to focus on China
In a radical overhaul of its international strategy, US firm Akin Gump Strauss Hauer & Feld has pulled out of Brussels and opened its first mainland China office in Beijing.
The moves are the result of a two-year strategic review. Chairman Bruce McLean said: “We decided our international offices needed to reflect our core practice areas of energy, political lobbying and hedge funds.”
It is unclear whether Brussels was profitable as the firm does not officially account for profit on an office-by-office basis. Firmwide finances have been stagnant: in 2005 (the most recent statistics available), revenue rose by only $6m (£3.1m).
McLean said: “The Brussels office was a drain on resources in that it was a deflection of management attention. It was a small office and we thought that if it wasn’t successful, we should just close.”
Akin Gump entered Brussels, its first overseas office, in 1989. Ten years ago the office had 30 lawyers but by October 2006, it had just seven, working on EU law and policy, international law, and transactions.
Meanwhile, the Beijing office will house three partners and an associate and will be headed by public law partner Eliot Cutler.
The office will concentrate on corporate work both for foreign and Chinese companies.
Akin Gump has strong relationships with Chinese clients, including the Chinese National Offshore Oil Corporation (CNOOC), for whom it lobbied when CNOOC made its controversial $18bn (£9.3bn) bid for Unocal in 2005.
In addition to Taipei and Beijing, Akin Gump has international offices in Moscow, Dubai and London.
Nigeria: President relinquishes oil title
Posted on : Sat, 13 Jan 2007 04:01:01 GMT | Author : Energy News Editor
ABUJA, Nigeria, Jan. 12 In a mass Cabinet shuffle, Nigerian President Olusegun Obasanjo relinquished his oil minister title in favor of Edmund Daukoru.
Obasanjo did not explain why Daukoru, who was minister of state for petroleum resources, was made the new energy minister, the Vanguard newspaper reported.
The new energy minister recently ended his one-year tenure as the head of OPEC.
Nigeria is the world's eighth-largest producer of oil. However, during the last year, increasing violence associated with militancy has been blamed for reducing Nigerian oil production by 20 percent, according to a 2006 report.
Some officials in Abuja, however, claim that production is down by as much as 50 percent.
The Movement for the Emancipation of the Niger Delta, or MEND, have systematically kidnapped oil workers and other foreigners. Residents of the Niger Delta region, where most of Nigeria's oil is located, are extremely poor.
They have started organizing and taking action against what they view as unfair circumstances, where the government and oil companies are getting rich on the oil from their region.
Copyright 2007 by UPI
Oilphant vs Umbra (double standard)?
When Oilphant says we're going over 50 cents, he gets criticized. Or if he says we're getting a rig announcemnt, he gets criticized. Yet Umbra says ERHC will be worth 3 figures and I hear nothing from the "Board Experts?.
ND9
ERHC worth three figure share price????????
Umbra, if you are right and someday, ERHC will be worth a three figure pps, wouldn't XOM, Chevron, India, & China also know this? If ERHC was going to be worth this much, I think XOM would have already purchased ERHC. Last time I checked, XOM had about $30B cash.
ND9
Thanks Oilphant. Please keep posting. EOM.
Oilman57 how do "those that make false predictions and proclimations harm a person's investment"?
I'm long and strong on ERHC so I don't see how any of these false predictions and proclimations harm my investment.
Would you please elaborate?
thanks,
ND9
Drilling for Deals in the Oil Patch
Stocks in the News January 8, 2007, 11:34AM EST text size: TT
Drilling for Deals in the Oil Patch
The Forest Oil-Houston Exploration and GE-Vetco Gray acquisitions signal a continued strong pace of sector consolidation.
As oil prices have retreated from record levels, companies in the red hot energy industry are getting cheaper and consolidation activity is sizzling. Two more deals hit the news on Jan. 8.
The Denver natural gas producer Forest Oil (FST) said it's planning to buy its Texan rival Houston Exploration (THX) for around $1.5 billion plus around $100 million of debt. On the same day the Fairfield (Conn.)-based diversified industrial conglomerate General Electric (GE) announced an agreement to acquire the drilling equipment supplier Vetco Gray for $1.9 billion from Candover, 3i & JP Morgan Partners.
The energy industry has seen a number of deals recently. Oil companies, flush with cash from their recent years of heady profits during the high price environment of recent years, have been trying to grow their reserves by buying rivals. Meanwhile private equity buyers have been shopping for various and sundry, including those in the energy sector.
The energy sector had 2,678 merger and acquisition deals worldwide in 2006, 14% more compared to 2005, according to Thomson Financial. Those transactions collectively amounted to $572.3 billion, or 33% more than last yearl. And the value of the deals inked has grown significantly since around late August, when only 1,625 deals had amounted to $355.5 billion.
Oil prices have been falling from their soaring heights recently, as investors weigh the effects of abnormally mild winter weather on heating-fuel demand. Light sweet crude for October delivery ended last week down in value by almost 10% at $56.31 per barrel, after prices dropped at their fastest pace in two years on Jan. 4 (see BusinessWeek.com, 1/8/07, "Oil: Next Stop, $45?").
That in turn has pushed down the prices of stocks that make money from business involved with black gold. Forest Oil's stock has declined 23.6% from its high of the year on April 19, for example. Houston Exploration Company's shares have fallen 23% since their high on Aug. 3.
Industry experts had long bet that merger and acquisition activity would heat up in a falling oil price environment. Evan Smith, co-portfolio manager of the Texas-based U.S. Global Investors, for example, had pointed out in August that lower stock prices would make companies cheaper to buy. Meanwhile if oil prices were to fall to around $60 per barrel this year, most companies would continue generating tremendous cash flow from their production, he said (see BusinessWeek.com, 8/28/06, "A Gusher of Energy Deals").
Vetco, a case in point, had estimated sales of over $1.6 billion in 2006, with 5,000 employees in over 30 countries. "We view the transaction (with Vetco Gray,) which would boost GE's oil & gas revenues by about 40% as positive, given our expectation of continued high levels of capital spending by oil & gas producers," said Standard & Poor's equity analyst Richard Tortoriello in a research note. "We believe GE's management continues to position the company well within markets with strong long-term growth potential."
Investors didn't react strongly to the news. GE's stock price slipped 0.6% to to $37.35 per share in early trading on the New York Stock Exchange.
GE isn't the only one looking for growth in the industry. Forest Oil is aiming to expand its oil and natural gas assets in Texas by buying The Houston Exploration Company. "We are undertaking this significant acquisition to further strengthen our onshore North American asset base and to add drilling inventory for our proven acquire and exploit strategy," Forest's CEO H. Craig Clark said in a press release Jan. 8. He expects to the deal to get him 3,200 more drillsites that are located in gas sand basins where you can use new drilling technology to produce more of the commodity.
After the news, Forest Oil's stock sank 3.1% to $30.25 per share on Jan. 8. Houston Exploration Company's shares gained 4.3% to $50.80 per share.
The recent activity follows major deals in the energy industry last year. In August Houston's Kinder Morgan, which operates 43,000 miles of oil and gas pipeline in North America, agreed to be taken private by a group led by the company's founder, Richard Kinder, for $22 billion. In another example, Anadarko Petroleum announced a plan in June to pay $21.1 billion in cash for rivals Kerr-McGee of Oklahoma City and Western Gas Resources of Denver.
China's Citic tops up its tank with $2.4bn Kazakh oil buy
Andrew Yeh, Beijing
January 03, 2007
CITIC Group, the Chinese state investment arm, has completed a $US1.9 billion ($2.4 billion) deal to buy oil assets in Kazakhstan from Nations Energy, dispelling speculation that the purchase might be blocked by Kazakh authorities.
The acquisition was finalised at the weekend after months of negotiations, a person involved in the transaction said, and marked Citic's largest investment in the energy sector.
The group is considering further oil and gas acquisitions in central Asia and Africa, the source said.
Citic first announced in October last year that it was buying the rights to develop the Karazhanbas field, which has proven reserves of about 340 million barrels of oil and now produces more than 50,000 barrels a day.
But rumours emerged that there were Kazakh officials who opposed the deal over concerns that Chinese companies were playing too big a role in developing the country's energy assets.
In October 2005, China National Petroleum Corporation took over Toronto-listed Petrokazakhstan for $US4.2 billion, giving it access to 12 oil fields in Kazakhstan. CNPC is also funding a $US750 million pipeline from Atasu in Kazakhstan to China's frontier.
Citic's deal with Nations Energy, among the largest ever by a Chinese company, was unusual in that it did not involve the three Beijing-backed oil groups - CNPC, Sinopec and CNOOC.
CNOOC, China's main offshore oil company, previously had been interested in the assets, but Beijing probably prevented the state-run companies from competing with each other.
Citic Group, parent of Hong Kong-listed Citic Resources Holdings, has previously only dabbled in relatively small energy-related investments abroad. It is a powerful conglomerate that is also active in finance, real estate and other industries.
Nations Energy is an Indonesian-owned Canadian company that has close ties to the former Indonesian president Suharto.
A large percentage of China's oil imports now come from underdeveloped economies, most notably Angola. Central Asia is appealing to Beijing as a source of energy for its fast-developing economy because of its geographical proximity.
Some industry experts point out that Chinese companies are now often trying to extract oil from overseas fields with challenging geological conditions.
A Beijing-based energy analyst said a key consideration for Chinese oil groups in the near future was whether they could acquire - or develop - necessary extraction and refining technology.
China's 2006 oil imports expected up by 10.2%
2007/1/9
BEIJING, AP
China's oil imports last year are forecast to have risen 10.2 percent as the booming economy's reliance on foreign energy grew, a state news agency reported Monday.
Imports of 980 million barrels last year are believed to have supplied 48 percent of China's oil needs, up from 43 percent in 2005, the Xinhua News Agency said.
Total demand in 2006 is estimated at just over 2 billion barrels, the report said, citing Liang Shuhe, deputy director of the ministry's Foreign Trade Department.
The report did not say when official figures would be released.
China's oil imports from January to November last year were up 15.6 percent from the same period of 2005, according to customs data.
The Xinhua report did not explain the sharp drop from that growth rate to the full-year rate given by Liang.
China's reliance on imported oil and gas has grown as development of new domestic sources has lagged behind soaring demand.
Governor of central bank of Sao Tome and Principe forecasts good prospects for 2007 [ 2007-01-08 ]
Sao Tome, Sao Tome and Principe, 8 Jan – The new governor of the Central Bank of Sao Tome and Principe, Arlindo Carvalho, has projected “good prospects for the 2007 financial year,” and said the country’s economy should grow around 7 percent.
Carvalho made the projections in a speech on the annual macroeconomic climate and the growth prospects for the next 12 months.
The governor said that one of the strong points for economic growth in 2007 was the entry into the state coffers of US$27 million from the sale of oil blocs in the joint exploration area with Nigeria.
According to Carvalho, oil revenue “will clearly have a multiplying effect on improving the economic confidence indicators, with increased employment and exchange rate stability.”
For 2007 he forecast inflation of 13.5 percent against the 22.8 percent total for between January and November 2006.
Carvalho also said he expected the country’s debt of over US$300 million to be pardoned in the first quarter of 2007n, as part of a macroeconomic program set up with the World Bank and the International Monetary Fund (IMF) for Highly Indebted Poor Countries (HIPC).
The governor also said that 2006 had been marked by the relative reduction of foreign aid, reduced cocoa exports (the basis of the economy), and devaluation of the currency against the dollar and the euro. (macauhub)
U.S. gasoline prices to $5 or $6 a gallon??????
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By David Helwig
SooToday.com
Monday, January 08, 2007
In an exclusive report this afternoon, ABC News quotes a Nigerian terror group as threatening "more ruthless" attacks on U.S. and European oil assets.
The threatened attacks would include "burning workers alive on offshore oil rigs," the network says.
ABC is quoting security experts as saying that such activity could push U.S. gasoline prices to $5 or $6 a gallon.
Congress Targets Oil-Drilling Subsidies
By John J. Fialka
Word Count: 1,004 | Companies Featured in This Article: BP, ConocoPhillips, Marathon Oil, Royal Dutch Shell, Chevron
WASHINGTON -- With Democrats controlling Congress, the oil industry is in for a rough ride. So is the agency that collects royalties for oil and gas drilling on federal lands.
Democrats and some Republicans have complained for months that the Interior Department's Minerals Management Service -- whose motto is "securing ocean energy and economic value for America" -- has mishandled the royalty program. The issue will hit the spotlight Jan. 18, when the House takes up energy legislation targeting oil-industry subsidies.
One goal: untangling a legal mess that could allow companies to escape paying at least $10 billion in future ...
Chevron and partners record success in Uge-
By Yemie Adeoye
Posted to the Web: Tuesday, January 09, 2007
CHEVRON Nigeria deepwater B Limited and its partners have recorded another deepwater success following the announcement of a first oil discovery in Oil Prospecting Licence (OPL) 214 approximately 113 kilometres offshore Nigeria, just as the Agbami project rose above the safety tides by surpassing 1,200,000 man hours (1.2 mm hrs) in 2006.
The oil well, known as -Uge- 1 has a total depth of 16,831 feet (5,130 metres) and has encountered more than 300 net feet (100 metres) of oil.
John Watson, President of Chevron International Exploration and Production, in a recent reaction stated that the discovery is a further demonstration of how we are achieving superior success from a focused and high impact exploration programme. While the Chairman/ Managing Director Nigeria/Mid Africa Business Unit (NMABU), Mr. Fred Nelson, in his own reaction said that the company is pleased with the success of the well and believes the discovery will help enhance its already strong position in Nigeria and West Africa.
Chevron Nigeria Deepwater B, has a 20 percent interest in the Block, while ESSO Exploration and Production Nigeria Deepwater West Limited is the operator of OPL 214 with a 20 percent working interest. Other working interest owners are Philips Deepwater Exploration (a subsidiary of Conocco Philips) at 20 percent , while Nigerian Petroleum Development Company has a 15 percent stake and Sasol Exploration and Production Nigeria owns a 5 percent stake. The Nigerian National Petroleum Corporation (NNPC) is the concessionaire.
Chevron still continues to hold a very large portfolio acreage in Nigeria with a deepwater contractor equity in about ten deepwater blocks offshore Nigeria.
According to a statement issued recently, the company has begun the development of the giant Agbami field with approximately 900 million barrels of recoverable oil. Chevron has also made successful discoveries in Aparo, Nsan and Nsiko oil fields.
Agbami
In a similar development, CNL and its partners have also recorded a high safety rate as it surpasses 1,200,000 man hours without a Lost Time Injury (LTI) in the in-country design and fabrication activities of the project.
Part of the activities that consumed the 1.2 million man-hours includes the design scope performed at NETCO, and the on-going fabrication activities at Daewoo Nigeria Limited, Nigerdock Lagos, Grinaker LTA Portharcourt amidst others.
Lanre Alabi, Director, Agbami project said, “it is a remarkable achievement considering the poor safety culture prevalent at some of the Yards when we commenced the project.” He also noted the relentless effort and focus on safety at the fabrication yards by the in-country fabrication teams adding that “we have full time safety professionals at each yard, and all yard personnel working on the Agbami project have been immersed in the four-hours Incident Injury Free (IIF) programme, while all new workers are required to go through the IIF induction prior to work start,” he said. The total Nigerian Content Man-hours projected for the Agbami project is 2.7 million.
Note that he says oil prices will rise - EOM
Global Markets Face `Severe Correction,' Faber Says (Update4)
By Ian C. Sayson and Pimm Fox
Jan. 8 (Bloomberg) -- Marc Faber, who predicted the U.S. stock market crash in 1987, said global assets are poised for a ``severe correction'' and it's time to sell.
``In the next few months, we could get a severe correction in all asset markets,'' Faber said in an interview with Bloomberg Television in New York. ``In a selling panic you should buy, but in the buying mania that we have now the wisest course of action is to liquidate.''
Faber, founder and managing director of Hong Kong-based Marc Faber Ltd., advised investors to buy gold in 2001, which has since more than doubled. His company manages about $300 million in assets.
The bullish outlook of traders in everything from bonds, equities and commodities to real estate and art suggests valuations are peaking, Faber said. Last year, the Morgan Stanley Capital International World Index of developed stock markets jumped 18 percent, while a survey of Wall Street's biggest bond- trading firms predicted U.S. Treasuries will post the best gains in five years during 2007.
``I am not a great buyer of assets now,'' Faber said. ``We may be in a situation where consumer-price inflation comes back and will have a negative impact on the valuation of assets.''
Faber, publisher of the Gloom, Boom & Doom Report, does have some favorites. Singapore and Vietnam are his top picks in Asia because stocks in Singapore aren't ``terribly expensive compared with interest rates'' in the city-state, while Vietnam's equities have ``incredible potential in the long run.''
Vietnam, Singapore
Vietnam's Ho Chi Minh Stock Index more than doubled last year and was Asia's best-performing benchmark. Singapore's Straits Times Index climbed 27 percent, beating a 15 percent increase in the Morgan Stanley Capital International Asia-Pacific Index.
So far in 2007, Vietnam's index has surged 10 percent, again leading gains in the region, and Singapore's is up 0.6 percent. The MSCI has dropped 1 percent.
Faber recommends investors steer clear of shares in the world's biggest developing economies after the emerging markets in 2006 outperformed their developed counterparts for a fifth straight year.
``Emerging markets could get kicked in the next three months so I'd be careful of buying Russian shares,'' Faber said. ``I'd also be careful of buying China and India shares now.''
Russia's dollar-denominated RTS Index surged 75 percent last year, while the Hang Seng China Enterprise Index, which tracks Hong Kong-listed shares of Chinese companies, jumped 94 percent. India's Sensex Index, which more than quadrupled in the past five years, is valued at 25 times estimated earnings.
Thailand, Japan
Faber also advises investors stay away from shares in Thailand, where he and his family are based. The nation's SET Index has been the world's worst-performing benchmark in the past month, sliding 15 percent as currency controls introduced by the central bank and bombs in Bangkok spooked investors.
``Valuations in Thailand are very inexpensive but I wouldn't buy tomorrow,'' said Faber. `` We have some political problems in Thailand right now. I'd wait for a couple of months.''
The SET is valued at 10 times estimated earnings, the lowest among 14 Asia-Pacific markets tracked by Bloomberg. MSCI's regional index is valued at 18 times.
On a more positive note, Japanese stocks may prove good bets this year, Faber said. The Nikkei 225 Stock Average climbed 6.9 percent in 2006 and the broader Topix index added 1.9 percent, the smallest gains among benchmarks for the world's 10 biggest markets.
U.S. Strategists
The U.S. outpaced Japan last year, with the Standard & Poor's 500 Index climbing 14 percent and the Dow Jones Industrial Average surging 16 percent.
Strategists at 14 of the biggest Wall Street firms all estimate that U.S. stocks will advance this year. The last time they were in agreement was for 2001, when the S&P 500 dropped 13 percent.
``It's going to have to be something unexpected and somewhat dramatic'' to spur the type of pullback that Faber predicts, according to Wayne Wicker, chief investment officer at Vantagepoint Funds in Washington, which has about $28 billion in assets. ``Given the current environment we see today, I don't see anything imminent, other than a huge amount of money chasing deals, as a real negative.''
Last year saw a record $3.68 trillion in takeovers, led by AT&T Inc.'s $86 billion purchase of BellSouth Corp., according to data from Bloomberg. Mergers and acquisitions will rise by at least 10 percent this year, analysts at Deutsche Bank AG, JPMorgan Chase & Co. and Bank of America Corp. forecast.
Gold, Oil
Faber said gold should rally further on expectations that supply of the precious metal will decline and demand for it will increase to hedge against inflation. Gold climbed 23 percent last year, its sixth year of gains.
``The price of gold will continue to go up and probably very substantially,'' Faber said. ``In the long run, it's very clear that central banks are basically increasing the supply of money and the supply of gold is obviously very limited.''
Oil prices are also tipped to rise as political instability in the Middle East and other petroleum-producing areas threatens supply and global demand increases. Crude oil in New York added less than 0.1 percent to $61.05 a barrel in 2006, after tripling in the previous four years.
``Everyday the world is burning more oil than new reserves are added,'' Faber said. ``You wont see $12 dollars again'' for every barrel of oil. ``The trend is likely more to be upside because demand in Asia is going to double over time.''
To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.net and Pimm Fox in New York at at Pfox11@bloomberg.net
Last Updated: January 8, 2007 10:58 EST