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Centurion Expected to Win Its Financial War
By Cyril Widdershoven
14 Oct 2006 at 12:36 PM EDT
AMSTERDAM (ResourceInvestor.com) -- Canadian oil and gas minnow Centurion Energy International [TSX:CUX; LSE:CUX] has been treading some difficult waters lately. Not only was the company threatened by a sharp financing of projects, but at the same time, new upstream projects in Egypt have fallen below expectations. At least, that has been the general assessment of financial analysts.
Negative market sentiment has cut the Canadian operator’s market capitalization to pieces, showing a fall of not only share price value but also confidence. Luckily, Centurion’s management team has not shown any strain; optimism has been the leading factor until now for its overall success story, supported by unexpected positive results.
Last week, Centurion reported that it had closed a new debt facility with French bank, BNP Paribas, worth around US$215 million. The deal will not only replace the existing deal with Standard Bank, worth US$100 million, but will be used to repay outstanding debt, invest in several new assets in Egypt and expand future exploration activities.
At the same time, Centurion reported that it has put in place a new condensate recovery strategy in Egypt, targeting improved oil recovery. Centurion Egypt has indicated that it has commissioned Phase 1 of the El Wastani Facilities Upgrade Project, which entails the installation of a Mechanical Refrigeration Unit to improve condensate recovery. Before the end of 2006, Centurion expects that Phase 2, the installation of the LPG plant, will be completed.
Analysts have indicated that the additional 3,600 barrels of LNG produced by the revamped and updated plant is necessary; not only to improve total production capacity but also to increase Centurion’s overall stock market standing. Centurion’s overall oil production in Egypt, including the new facility, will increase during the coming months from 32,000 bpd to upwards of 38,000 bpd by the end of 2006.
Significant progress is expected to be made on the Gelgel operation, based on the current Gelgel-13 well. The latter is of the utmost importance, as continuing success will give the company new access to producing assets which can be linked to the already existing South El Manzala field facilities. First results of Gelgel-13 have indicated that the El Wastani and Kafr El Sheikh formations have a combined net gas pay of 22 metres, with a production capacity of more than 800 barrels of oil equivalent per day.
More success is expected to come during 2007, when Centurion will continue its aggressive drilling campaign, entailing 10 exploration and appraisal wells and two development wells, all to be drilled on its Egyptian exploration and development leases. Most of the planned wells will be drilled in the West Manzala and West Qantara exploration blocks, with wells planned to test shallow (Abu Madi and Qawasim formations) and deeper (Sidi Salim and potentially Oligocene) reservoir targets.
A total of 12 prospects have been mapped to date and additional leads are being matured. Two of the Sidi Salim prospects have already been drilled, and represent potential drilling targets for 2007.
Increased reserves potential, combined with production increases and an overall debt reduction, will be necessary to support the company’s strategy to be recognized as a main player. Its joint-ventures with several majors, such as Shell [NYSE:RDS-B], are also an integral part of its future plans. The still one-line player, focused on mainly upstream operations, wants to become a downstream operator too. Egypt is already targeted as the breeding ground for this success.
Expansion outside of North Africa, where Centurion holds assets in Egypt and Tunisia, will increase the company’s market power. As one of the first independents, Centurion has been actively involved in the offshore deepwater Joint Development Zone, held by Nigeria and island state Sao Tome & Principe. In mid-August 2006, Centurion increased its stake in Block 4 in the JDZ to 9.5%, an increase of 2%. In order to acquire the additional interest, Arrata stated to the press that they would purchase a 25% equity holding in Hercules Petroleum Limited for a cash consideration of US$4.4 million, making Hercules a wholly owned subsidiary.
To support the above aggressive future strategy, Centurion also has increased the impact of its current management. The position of the founders, such as Said Arrata, is not being questioned internally, but financial sources have indicated that a broader management scope is necessary to attract new financial support. As one of the first steps to acquire this new market position, Centurion already has appointed two new members of the board, Carmine Falcone and Joe Darby. The first is former VP Oil Products Shell and Director Strategic Planning, well positioned to address downstream operations, while Joe Darby’s name is linked to famous independent Lasmo, where he has been the CEO and main backer of the independents success.
Centurion’s current situation looks very promising; its current market capitalization does not represent the potential of the company at all. Based on potential reserves and production increases coming online soon, a full upswing of its share price is to be expected. Taking into account Centurion’s management and project history through the past decade, investors can be ensured that the company has profit potential.
Floating Oil factories allow tankers to load at sea
OCTOBER 16, 2006
One More Reason Prices Are Falling
Floating oil factories allow tankers to load at sea, avoiding political instability and saving billions
Slide Show >>Nigeria is a rough place to do business. In the past year, rebels seeking a greater share of the country's energy wealth have bombed Royal Dutch Shell's pipelines and kidnapped its workers. The oil giant was forced to shut down half of its production there, most of which is situated in the Niger River Delta, a steamy swampland populated by farmers, fishermen, and angry militias.
Far out at sea, the situation is much safer. Since late last year, Shell has been extracting oil from its massive Bonga field, a $3.6 billion project located in 3,200 feet of water. The field now yields more than 200,000 barrels a day, thanks to a high-tech facility called a floating production, storage, and offloading vessel, or FPSO. It looks like an oil tanker and can hold up to 2 million barrels in its belly, but its primary purpose is to load up tankers out at sea, rather than piping the crude to an onshore terminal. The oil streaming in from Bonga and other deepwater sites like it helps explain why oil prices have settled down to under $60 from a July high of $78.
For the oil companies, benefits abound. FPSOs spare them billions of dollars in infrastructure costs, years of construction time, and in the case of Nigeria, the significant costs and setbacks associated with political instability. "The FPSO gives you a great deal of flexibility," says John Stubbs, the Shell executive who got the Bonga project up and running.
FPSOs are now pumping away off the coasts of Brazil, West Africa, and Southeast Asia, extracting more than 5million barrels per day, up from 1.5million barrels five years ago, according to oil industry researcher Wood Mackenzie.
Handling millions of barrels of crude far out at sea does open up the risk of oil spills and other types of contamination. But that's not likely to slow the proliferation of FPSOs. As more production has moved farther offshore in the past five years, the number of these immense vessels in uses has doubled to 113 worldwide, according to industry consultant Douglas-Westwood Ltd. An additional 83 will be launched by 2011, worth an anticipated $26billion in revenues to shipbuilders, most of them based in Korea and Japan.
Costing hundreds of millions of dollars apiece and measuring as much as three football fields in length, the platforms are towed from the manufacturer' shipyards and anchored at the richest oil fields. At sea, they're typically tended by some 100 crewmen who work a month on, a month off. "We call them superboats," says Michael Flynn, head of deepwater developments for Exxon Mobil Corp. XOM . "They're really like small cities."
ExxonMobil sometimes sends smaller FPSOs to jump-start production at fields until serious infrastructure can be built. Under a program it calls "design one, build three," the company ordered up three FPSOs for use at a series of fields in West Africa. It cost $10 billion to bring the fields online, but they produce a combined 700,000 barrels per day, nearly 1% of worldwide oil demand.
The one part of the world where the floating factories have yet to make an appearance is the Gulf of Mexico, since there is already an extensive pipeline infrastructure. But things may change. Devon Energy Corp. DVN , which announced a big discovery in the deepwater Gulf in late summer with Chevron Corp. CVX , is looking at FPSOs.
What about hurricanes? FPSOs operated by Conoco-Phillips off the coast of China and Vietnam are designed to turn in place, minimizing the impact of waves during typhoon season. They can also detach from the undersea wells and get towed away if conditions turn ominous. Built this way, facilities in the Gulf could endure foul weather better than the ones dependent on the pipelines that were battered so severely by hurricanes last year.
http://www.businessweek.com/magazine/content/06_42/b4005085.htm?chan=top+news_top+news+index_compani...
Floating oil factories allow tankers to load at sea
OCTOBER 16, 2006
http://www.businessweek.com/magazine/content/06_42/b4005085.htm?chan=top+news_top+news+index_compani...
One More Reason Prices Are Falling
Floating oil factories allow tankers to load at sea, avoiding political instability and saving billions
Slide Show >>Nigeria is a rough place to do business. In the past year, rebels seeking a greater share of the country's energy wealth have bombed Royal Dutch Shell's pipelines and kidnapped its workers. The oil giant was forced to shut down half of its production there, most of which is situated in the Niger River Delta, a steamy swampland populated by farmers, fishermen, and angry militias.
Far out at sea, the situation is much safer. Since late last year, Shell has been extracting oil from its massive Bonga field, a $3.6 billion project located in 3,200 feet of water. The field now yields more than 200,000 barrels a day, thanks to a high-tech facility called a floating production, storage, and offloading vessel, or FPSO. It looks like an oil tanker and can hold up to 2 million barrels in its belly, but its primary purpose is to load up tankers out at sea, rather than piping the crude to an onshore terminal. The oil streaming in from Bonga and other deepwater sites like it helps explain why oil prices have settled down to under $60 from a July high of $78.
For the oil companies, benefits abound. FPSOs spare them billions of dollars in infrastructure costs, years of construction time, and in the case of Nigeria, the significant costs and setbacks associated with political instability. "The FPSO gives you a great deal of flexibility," says John Stubbs, the Shell executive who got the Bonga project up and running.
FPSOs are now pumping away off the coasts of Brazil, West Africa, and Southeast Asia, extracting more than 5million barrels per day, up from 1.5million barrels five years ago, according to oil industry researcher Wood Mackenzie.
Handling millions of barrels of crude far out at sea does open up the risk of oil spills and other types of contamination. But that's not likely to slow the proliferation of FPSOs. As more production has moved farther offshore in the past five years, the number of these immense vessels in uses has doubled to 113 worldwide, according to industry consultant Douglas-Westwood Ltd. An additional 83 will be launched by 2011, worth an anticipated $26billion in revenues to shipbuilders, most of them based in Korea and Japan.
Costing hundreds of millions of dollars apiece and measuring as much as three football fields in length, the platforms are towed from the manufacturer' shipyards and anchored at the richest oil fields. At sea, they're typically tended by some 100 crewmen who work a month on, a month off. "We call them superboats," says Michael Flynn, head of deepwater developments for Exxon Mobil Corp. XOM . "They're really like small cities."
ExxonMobil sometimes sends smaller FPSOs to jump-start production at fields until serious infrastructure can be built. Under a program it calls "design one, build three," the company ordered up three FPSOs for use at a series of fields in West Africa. It cost $10 billion to bring the fields online, but they produce a combined 700,000 barrels per day, nearly 1% of worldwide oil demand.
The one part of the world where the floating factories have yet to make an appearance is the Gulf of Mexico, since there is already an extensive pipeline infrastructure. But things may change. Devon Energy Corp. DVN , which announced a big discovery in the deepwater Gulf in late summer with Chevron Corp. CVX , is looking at FPSOs.
What about hurricanes? FPSOs operated by Conoco-Phillips off the coast of China and Vietnam are designed to turn in place, minimizing the impact of waves during typhoon season. They can also detach from the undersea wells and get towed away if conditions turn ominous. Built this way, facilities in the Gulf could endure foul weather better than the ones dependent on the pipelines that were battered so severely by hurricanes last year.
READER COMMENTS
Sao Tome and Principe to produce 30,000 barrels of oil per day in 2013, IMF says [ 2006-10-12 ]
Washington, USA, 12 Oct – Sao Tome and Principe is expected to produce 30,000 barrels of oil per day in 2013, which will provide the country with US$92 million per year, the International Monetary Fund (IMF) said adding that this was a conservative estimate.
In a study of the Sao Tome economy published Wednesday, the IMF said that the oil production estimate was based on the conservative forecast that just two of the six blocs located in the joint development area (with Nigeria) will be commercially viable.
The projection is based on oil prices of US$30 a barrel, which many analysts see as very unlikely as oil is currently being sold at US$60.
The IMF said that if Sao Tome and Principe’s share of the joint area with Nigeria rose to 80,000 barrels per day revenues would triple.
In the study the IMF said that one of the challenges that Sao Tome and Principe is facing is “the need to administrate a potentially large oil income with weak institutional and absorption capabilities.”
According to the IMF “in the short and medium term one of the main tasks will be to develop institutions to ensure effective, transparent and responsible administration for oil income.” (macauhub)
Chevron to invest $6 bln in Indonesia gas fields
Reuters
Monday, October 9, 2006; 4:01 AM
JAKARTA (Reuters) - Chevron Corp. (CVX.N) plans to invest about $6 billion to develop gas fields off the coast of Borneo, aiming to crank up flagging Indonesian gas output, a senior official at the country's oil watchdog said on Monday.
Indonesia, the world's top liquefied natural gas (LNG) exporter, has failed to meet its contractual commitments to traditional buyers such as Japan, South Korea and Taiwan because of a slump in production.
"Chevron said it wanted to develop gas fields in East Kalimantan, including Gehem and Gendalo until 2012 with investment of about $6 billion," BPMIGAS chief Kardaya Warnika said via a telephone text message.
East Kalimantan is an Indonesian province on Borneo.
Warnika said Chevron had told an Indonesian delegation chaired by Vice President Jusuf Kalla during a U.S. trip last month it wanted to invest more in the energy sector in Southeast Asia's top economy.
Chevron Indonesia president director Suwito Anggoro confirmed that the firm would develop several gas fields offshore East Kalimantan.
"We will submit plans on development next year. If approved by BPMIGAS then we will develop those fields," Anggoro said.
Another BPMIGAS official, who declined to be identified, said the Gehem and Gendalo gas fields were seen as having the potential to boost gas production and help offset declining output from other gas fields in the province.
Chevron currently is supplying the Bontang LNG plant with about 200 million cubic feet per day of gas. Total (TOTF.PA) is supplying the plant in East Kalimantan with about 2.6 billion cubic feet per day, while Vico Indonesia supplies around 600 million cubic feet per day.
Vico's shareholders include BP Plc. (BP.L) and Italian energy group Eni SpA (ENI.MI).
Indonesia has said it would favor domestic gas sales after major export contracts to Japan lapse, cutting back on a major hard currency export earner.
Indonesia has said an 8.4 million tonne-per-year (tpy) LNG contract with Japan expires in 2010 and another 3.6 million-tpy deal ends in 2011, equivalent to about two-thirds of Japan's total LNG imports from Indonesia.
Indonesia is pushing to increase natural gas as an alternative source of energy as global oil prices soar and its domestic crude reserves dwindle.
ONGC Mittal secures Nigerian oil block
Source: IRIS NEWS DIGEST (09 October 2006)
ONGC (Q, N,C,F)* Mittal Energy, the joint venture company floated by ONGC and Mittal Steel, has bagged a highly prospective oil block in Nigeria, reports Business Standard.
The joint venture company bid USD100 million for Nigeria`s OPL 246, after South Atlantic Petroleum`s (Sapetro) licence for the block was revoked.
ONGC Mittal outbid INC Natural Resources and BG-Sahara after Sapetro lost a legal challenge against a government decision to revoke the licence.
OPL 246 is the relinquished area of the billion-barrel Akpo oilfield of Sapetro, which is partly owned by Theophilus Danjuma, former defence minister of Nigeria.
ONGC lost the bid to acquire Sapetro`s 45% stake in Akpo to China`s CNOOC, after the Indian government disallowed the state-owned firm from proceeding with the transaction.
ONGC Mittal has to pay 25% of the USD100 million signature bonus committed for OPL 246 this week, failing which, it will lose the block to INC, which was designated as the reserved bidder.
In Nigeria, ONGC Mittal had recently secured licences for OPL 209 near ExxonMobil`s Erha project and OPL 285, where Statoil earlier struck hydrocarbon. ONGC, however, pulled out of two Nigerian deepwater blocks 323 and 321, following differences with majority stakeholder, Korean National Oil Co.
However, South Atlantic had asked a Nigerian court to review the government`s decision to revoke the remnant of OPL 246 after the giant Akpo oilfield was discovered.
The Akpo field, about 200 km off the Nigerian coast and operated by French energy giant Total, is expected to produce 225,000 barrels of oil a day when it comes on stream in the second half of 2008.
Motley Fool mentions Sao Tome... unimaginable wealth
Here's a key paragraph from article: "Another potential worry lies in the tiny African country of Sao Tome e Principe, which shares an offshore petroleum field with oil-producing basket case Nigeria. ChevronTexaco (NYSE: CVX) and ExxonMobil (NYSE: XOM), among others, have just recently begun drilling in the field, and if projections are to be believed, nearly unimaginable wealth is about to pour into this tiny island nation."
http://www.fool.com/news/commentary/2006/commentary06100621.htm
ND9
US Gives Radar System to Sao Tome and Principe
October 04, 2006
The U.S. military is giving the West African island nation of Sao Tome and Principe an $18 million system to help it keep track of activity in its territorial waters and nearby ocean areas. The military hopes the move will inspire other countries in the area to accept or develop similar capabilities in order to improve regional security.
The navy calls it a “Maritime Domain Awareness System.” It is a network of radar dishes, radio antennas and infra-red, high-powered binoculars, designed to detect unauthorized use of the sea.
Much of the U.S. military activity in Africa involves training local armies and navies to better control their territories. U.S. military officers say the goal is to ensure that what they call “ungoverned spaces” do not become safe havens for terrorists.
The science advisor to the U.S. Navy’s European Command, John Middleman, says the sea is the world’s largest “ungoverned space,” and the United States wants the coastal states of Africa to expand their ability to govern their part of that space.
“By creating capabilities in many countries to gather information, that gives them better awareness of their maritime domain, and then to share that, we hope to improve the overall maritime safety, security, economic well-being, [and] environmental protection of the area,” he said.
Middleman says the new system for Sao Tome and Principe will take two years to build, and American trainers will stay in the islands for an additional year to make sure local troops or civilians are fully qualified to operate it. He says most of the builders and trainers will be civilians, and when the project is finished, it will be entirely handed over to the local government.
The system includes a maritime radar component that can provide information about vessels within about 25 kilometers and large antennas that can detect signals broadcast by large ships as far as 150 kilometers away.
High-powered binoculars and infra-red sensors provide more information about what is in nearby areas of the sea. The goal is to detect boats involved in illegal activities, such as terrorism, smuggling people or goods, illegal fishing and the dumping of garbage and other pollutants.
Science adviser Middleman notes that, because most of the countries of West Africa have only short coastlines, a boat involved in such activities can cross the territorial waters of several countries in a short period of time.
He says that is why the United States would like to provide similar systems to other countries in the region, or for those countries to develop their own maritime awareness capabilities.
He says U.S. officials also hope the countries will share their data, to provide all of them with a regional view, but he says data sharing is not required, not even with the United States.
“We hope to demonstrate the power of regional information sharing, but there’s no burden for any country to share information they don’t want to,” he said.
The agreement to provide the Maritime Awareness System to Sao Tome and Principe comes as the U.S. military is considering establishing a separate command to handle its operations in Africa, which are now divided among three regional commands.
Senior officials are putting the final touches on a plan that is to be presented to Defense Secretary Donald Rumsfeld by the end of this month.
After meetings in Washington in September, Sao Tome and Principe’s President Fradique de Menezes was quoted by the Sapa news agency as saying the United States may put the future possible Africa Command in his country.
But Pentagon officials cannot confirm that, and say it is far too early to speculate on the location of a command that has not even been formally proposed yet. They also note that all but one of the existing regional commands are based in the United States.
source: voa
Condor1 - yes, you're right. There are so many messages at the end of the day, and I'm sure other posters are busy and scan the titles, so I had to come up with some key words that explains quickly what the article was about..... So the title, I chose those words......
As for the article not mentioning EO, you need to read it again. Did you see this phrase, "“The money was sent to Atiku and another associate, Emeka Offor and it involved about $180 million.”
Sure the article could be old but it was dated 10/4/06. If you go back and look at all my posts, 80% are articles I find and post. It's that simple.
ND9
I'm just posted articles last night that mentioned Emeka Offor. It's that simple. It's up to you to read them and draw your own conclusions.
I'm long and strong on ERHC.
ND9
Nigerian VP & Emeka Offor accused of taking $180M
Etete accuses Atiku, Fasawe of massive corruption
By Jide Ajani, Political Editor
Posted to the Web: Wednesday, October 04, 2006
ABUJA—CHIEF Dan Etete, Petroleum Resources Minister in the Sani Abacha regime yesterday accused Vice President Atiku Abubakar and his business associate, Otunba Johnson Oyewole Fasawe, of forcefully taking over Oil Prospecting Lease, OPL, 245, belonging to MALABU OIL, against laid down procedures, and engaging in massive corruption.
Malabu Oil used to be owned by Chief Etete until, according to him, the Vice President, Chief Fasawe and their Italian business partners seized 50% interest in the company.
Chief Etete spoke yesterday on the African Independent Television, AIT.
But in a swift reaction the Atiku Abubakar Campaign Organisation dismissed the charges of corruption against the Vice President and threatened to go to court.
The Etete interview was broadcast twice yesterday first at 9am and again at 3pm.
Etete, alleged that Vice President Atiku and one Gabriel Volpi, identified as the Managing Director of Intels Services, Port Harcourt, and two other Italians first demanded 60% interest in the company otherwise the licence would be revoked.
He said the “first attempt crystalised when the trio of Volpi, Beruschi and Berger came to France, with the power of attorney to act on behalf of the Vice President to hold talks with me as a consultant for MALABU OIL.
“At that meeting, they told me that their outfit, based on instructions and acting on behalf of the Vice President, would want 60% of OPL 245.
“They also made it clear to me that that was the only way we could do business.
“But as consultant to MALABU OIL, and confronted with this vicious approach to business, MALABU OIL, decided to go for peace and we agreed to the 50% proposal.
“However, at some other point in time, we were confronted with some form of money transfer.
“At that time, MALABU OIL had the opportunity of paying in batches or on a pro rata basis and the company paid Two million and forty thousand Dollars.
“Because of the introduction of SHELL into the entire business, SHELL was expected to pay a sum of $17, 960,000.
“Unfortunately, and because of the way SHELL operates in so many countries of the world, the company paid that amount to the Directorate of Petroleum Resources, DPR, but for whatever reasons, the money was never paid into the bank.
“For a period of three months, the money was kept and was not paid into the bank. And after the three month period, the money was not cashable.It could not be cashed. “Now, what sort of company would pay such an amount of money and it can not be cashed.
“Even as we talk now, the matter is in court but SHELL has refused to pay the sum of $500 million which it had been ordered to pay.
“As for the Vice President, there was a time when a meeting was scheduled for the Vice President and myself somewhere in the south of France.
“We held the meeting on a yacht belonging to the former Yugoslav leader, Tito.
“Volpi, Atiku’s business partner and associate gave a very useful speech as a businessman.
“He then left Vice President |Abubakar and myself and I asked him pointedly whether his boss (President Obasanjo) was involved in all the deals we’re talking about and he said 'of course that how do I think all these would have happened if his boss was not involved.
“But it was a lie", Etete said, adding “for instance, Intels, where he said Vice President Abubakar has 20% stake, was alleged to have sold a waterfront property to some foreigners for $2million.
“There was another instance where some huge sums of monies were transferred to the Vice President. The documents are here and those who sent the documents to me, I’ve never met them before, they just sent it to me.
“The money was sent to Atiku and another associate, Emeka Offor and it involved about $180 million.”
Etete, who made it clear that he was ready for whatever was coming, however, charged that both Atiku and his associates, as well as SHELL should not do anything that would injure his person both socially and physically as he was ready to take on all comers.
Nigerian VP & Emeka Offor accused of taking $180M
Etete accuses Atiku, Fasawe of massive corruption
By Jide Ajani, Political Editor
Posted to the Web: Wednesday, October 04, 2006
ABUJA—CHIEF Dan Etete, Petroleum Resources Minister in the Sani Abacha regime yesterday accused Vice President Atiku Abubakar and his business associate, Otunba Johnson Oyewole Fasawe, of forcefully taking over Oil Prospecting Lease, OPL, 245, belonging to MALABU OIL, against laid down procedures, and engaging in massive corruption.
Malabu Oil used to be owned by Chief Etete until, according to him, the Vice President, Chief Fasawe and their Italian business partners seized 50% interest in the company.
Chief Etete spoke yesterday on the African Independent Television, AIT.
But in a swift reaction the Atiku Abubakar Campaign Organisation dismissed the charges of corruption against the Vice President and threatened to go to court.
The Etete interview was broadcast twice yesterday first at 9am and again at 3pm.
Etete, alleged that Vice President Atiku and one Gabriel Volpi, identified as the Managing Director of Intels Services, Port Harcourt, and two other Italians first demanded 60% interest in the company otherwise the licence would be revoked.
He said the “first attempt crystalised when the trio of Volpi, Beruschi and Berger came to France, with the power of attorney to act on behalf of the Vice President to hold talks with me as a consultant for MALABU OIL.
“At that meeting, they told me that their outfit, based on instructions and acting on behalf of the Vice President, would want 60% of OPL 245.
“They also made it clear to me that that was the only way we could do business.
“But as consultant to MALABU OIL, and confronted with this vicious approach to business, MALABU OIL, decided to go for peace and we agreed to the 50% proposal.
“However, at some other point in time, we were confronted with some form of money transfer.
“At that time, MALABU OIL had the opportunity of paying in batches or on a pro rata basis and the company paid Two million and forty thousand Dollars.
“Because of the introduction of SHELL into the entire business, SHELL was expected to pay a sum of $17, 960,000.
“Unfortunately, and because of the way SHELL operates in so many countries of the world, the company paid that amount to the Directorate of Petroleum Resources, DPR, but for whatever reasons, the money was never paid into the bank.
“For a period of three months, the money was kept and was not paid into the bank. And after the three month period, the money was not cashable.It could not be cashed. “Now, what sort of company would pay such an amount of money and it can not be cashed.
“Even as we talk now, the matter is in court but SHELL has refused to pay the sum of $500 million which it had been ordered to pay.
“As for the Vice President, there was a time when a meeting was scheduled for the Vice President and myself somewhere in the south of France.
“We held the meeting on a yacht belonging to the former Yugoslav leader, Tito.
“Volpi, Atiku’s business partner and associate gave a very useful speech as a businessman.
“He then left Vice President |Abubakar and myself and I asked him pointedly whether his boss (President Obasanjo) was involved in all the deals we’re talking about and he said 'of course that how do I think all these would have happened if his boss was not involved.
“But it was a lie", Etete said, adding “for instance, Intels, where he said Vice President Abubakar has 20% stake, was alleged to have sold a waterfront property to some foreigners for $2million.
“There was another instance where some huge sums of monies were transferred to the Vice President. The documents are here and those who sent the documents to me, I’ve never met them before, they just sent it to me.
“The money was sent to Atiku and another associate, Emeka Offor and it involved about $180 million.”
Etete, who made it clear that he was ready for whatever was coming, however, charged that both Atiku and his associates, as well as SHELL should not do anything that would injure his person both socially and physically as he was ready to take on all comers.
Emeka Offor & Chrome mentioned, article 10/4/06
Rohde& Schwarz, Choffan Sign MoU
From Onwuka Nzeshi in Abuja, 10.04.2006
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Information Communication Technology
Leading global manufacturer of electronic equipment and defence security systems, Rohde & Schwarz of Germany has signed a memorandum of understanding with Choffan Communications Nigeria Limited, a member of the Chrome Group, signalling the commencement of a new phase of business relationship between both firms.
Managing Director of Rhode &Schwarz (Middle East and Africa) Mr. Johannes Hofman endorsed the MoU on behalf of his firm while Chairman, Chrome Group, Sir Emeka Offor, signed on behalf of Choffan Communications Limited.
The pact, which was sealed at a ceremony in Munich, Germany, confers upon the Nigerian company the authority to represent Rhode & Schwarz in terms of product marketing and development in Nigeria.
Choffan Communications shall as part of the agreement operate exclusively with Rohde & Schwarz in obtaining contracts in areas such as radio communications, broadcasting and digital communications systems, air traffic control and navigational systems as well as security and defence gadgets.
Marketing Manager, Choffan Communications, Mr. Oseloka Okara said the new business pact would be an added impetus for his organisation to strengthen its market drive especially in telecommunications, military and aviation sectors. Okara disclosed that with the sole marketing rights granted his firm, the availability of superior technology products, with back up spares and after sales service would be guaranteed at all time.
Rohde & Schwarz holds a leading position in European market for automatic test and measurement systems, radio communications equipment, sound and video broadcast transmitters, radio monitoring and radiolocation gadgets as well as defence communications systems.
He remarked that at this stage of Nigeria’s development, the new partnership will not only be beneficial for the growing telecommunication and information technology industry but will help the country meet up the current challenges of air safety, adding that pilots and air traffic controllers must have effective communications and navigational systems to enhance safe take-off and landing at airports.
According to Okara, Rohde& Schwarz has been a pioneer in wireless communications for over seven decades.
“Its comprehensive line of test and measurement products for analog and digital mobile radio is unrivalled worldwide. The same holds true for its transmission, monitoring and testing equipment for sound and television broadcasting.
It is the only company in the world that is active in all sectors of radio communications being a key player in designing and implementing full-coverage radio-monitoring and frequency management systems. It also develops, produces and maintains high-tech aviation communications systems that are critical to air traffic safety and rescue services For us in Choffan, this is the beginning of a long lasting partnership and we look forward to introducing into the Nigerian market a full rang e of products backed by high quality service,” he stated.
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Ruby1100 - oh yes, I talk to them all the time. Yesterday, I flew into Nigeria, had lunch with SEO, and now I'm in China talking getting ready to talk with SNP - LOL. Oh, and I'm a multi-millionaire and own millions and millions of shares of ERHE - LOL. You see, I can make those claims too.
So I'm asking you for proof and of course, you have none. Oh, and if you're going to respond to me (again), try and have some proof or go find a dictionary and look the word up.
ND9
Ruby1100 - not fact, just your opinion. If fact, provide some proof.
ND9
BB - I never believed Electick and all his bs... He talked about his friendship with WB, dinner with BM, and how he and his friends owned millions of shares...... pleaaaaase.....
For legal reasons, I doubt WB would ever want or let a real friend talk about their relationship on a penny stock bulletin board..... for fear of perceived insider trading violations......
As for owning millions and millions of shares, yes, it always amazes me on how many multi-millionaires we have on this board - yet they spend all their time on a penny stock bulletin board - I'm sure Warren Buffett and Bill Gates do the same thing LOL LOL LOL - Ridiculous.
I'm long and strong on ERHC, will continue to accumulate, and don't make decisions based on people who imply they have "inside" sources. Pleeeeeeeease.
ND9
Chevron prepared to wait for partner
Jonathan Leff
Saturday, September 30, 2006
Chevron Corp, lagging its peers in China's downstream sector, may wait to find the right partner before breaking into the world's second-biggest oil market, as it did in India, a senior executive said.
Mike Wirth, Chevron's global head of refining, also said he believes the door is still open for foreign investment in the sector as China's shift toward strategic deals with oil-rich nations risked leaving it more exposed to disruptions.
"We've not found a larger opportunity that looks like the right one to us. A year ago, if you'd ask me about India, my answer would have been the same," he said.
"We continue to look at opportunities [in China]."
In April, Chevron paid US$300 million (HK$2.34 billion) for a 5 percent stake in a 580,000 barrels per day refinery being built by Reliance Industries, with an option to buy another 24 percent. It is the only major firm with a stake in an Indian refinery after BP pulled out of a different venture earlier.
"We've found a unique relationship with a premier partner [in India], and I would not underestimate how important that is in our view of the long haul." Reliance, India's top private firm, operates one of the world's most advanced refineries at Jamnagar, which will become the biggest refining complex in the world when the new plant is completed. It is oriented to the export market, avoiding India's regulated retail sector, where refiners sell some fuel at a loss.
Chevron's pact with the Indian firm was broadly drawn to leave room for exploring more co-operation in the future, including possible joint investments overseas, Wirth said.
"We believe this is not just a refining deal. We have not ruled a lot of things out as yet."
China's downstream sector is dominated by state-owned Sinopec and PetroChina, whose plants tend to be older and smaller-scale than Reliance's, while Beijing has made clear new projects should be focused on domestic supplies.
Beijing, anxious to keep inflation tame and its farmers happy, has also not allowed retail fuel prices to rise as fast as global crude costs, causing refiners to lose billions.
"It's really looking at the strategic fit, the environment, the partner, your alternatives at the time. It doesn't say we wouldn't do something with Sinopec or PetroChina either."
The major would also considering partnering CNOOC, which it defeated last year in the battle to acquire Unocal, he said.
CNOOC is building a new refinery in Huizhou by 2008.
Chevron says it was the first multinational oil firm to reestablish operations in China in 1979, but has not paced rivals in the downstream.
BP and Shell both own large stakes in major petrochemical plants that launched last year. Exxon Mobil is buying into a major refinery expansion in Fujian while Total owns a share in the export-oriented WEPEC plant.
By contrast, Chevron operates 94 Caltex-branded retail stations in Hong Kong and Macau, plus an LPG terminal, two lubricant-blending facilities and a small polystyrene plant.
REUTERS
Co-opting the dragon - India and China co-op
Even while competing aggressively, India and China are coming together in areas where co-operation is expedient
VIVEAT SUSAN PINTO & REEMA JOSE
Posted online: Saturday, September 30, 2006 at 0014 hours IST
They are the fastest growing economies in Asia with a gross domestic product growth in the region of about 8% and 10% respectively. Yet, Indian and Chinese firms have been somewhat slow in forging fruitful alliances and relationships. One reason for this is the arch-rivalry between the two economic giants. Both of them belong to the same region and compete with each other in a number of sectors. Nonetheless, there are signs today of this trend being reversed in at least a few areas.
In oil & gas, for instance, the Oil & Natural Gas Corporation’s international arm—ONGC Videsh Limited (OVL)—has been bidding for blocks abroad with the help of Chinese companies. So far two key projects one, in Syria, and the other in Colombia, have been acquired by OVL along with partners China National Petroleum Corporation (CNPC) and China Petroleum and Chemical Corporation (Sinopec) respectively. The total deal size is about $1,500 million for the two blocks. R S Butola, managing director, OVL, says, “CNPC is also a partner with us in the Greater Nile Oil Project in Sudan, while Sinopec partners us in one of the offshore blocks at Sao Tome and Principe, an island near the coast of West Africa.” Sinopec and OVL, for the record, are said to be working closely to acquire another block—Yadavaran oilfield in Iran. CNPC, of course, has signed a memorandum of understanding with OVL. So more partnerships could be on the cards, say observers.
The need for equity participation and cooperation by oil companies from the two countries is borne out of a simple economic necessity—to control escalating costs. Both nations are on the lookout for energy assets in the world to feed growing domestic demand and by competing with each other for oil blocks they land up increasing the cost of acquisition significantly. “Which is why they’ve joined hands,” explains Raj Gandhi, research analyst, UTI Securities. “Cost of acquisition comes down and bargaining power goes up. “Also,” says D Datar, vice-president, corporate affairs, MAN Industries, a saw-pipe-maker for the oil & gas industry, “Risk in the project is shared between the partners.”
In fact, say observers, most downstream oil & gas companies keen to get into exploration & production abroad, are toying with the idea of tying up with Chinese companies to jointly bid for overseas projects. Others like Gas Authority of India Limited (GAIL) which has an equity stake of about 9% in China Gas Holding by virtue of which the company will partner the latter in its city gas distribution project in over 40 Chinese cities have a different model. The company, say officials, is also eyeing oil & gas exploration abroad besides plans to participate in the liquefied natural gas (LNG) sector for which partnership with Chinese firms will come in handy. Says B. S. Negi, director, business development, GAIL, “Who doesn’t want to tie-up with a Chinese firm?” This point is also reiterated by Butola of OVL. “Apart from the economics of the association, there is a knowledge and technology exchange as well. This is beneficial to both partners.”
Cooperation of another kind, mainly in the form of joint ventures can be found in the automobile sector, where companies have been increasingly looking at China as a manufacturing hub besides targeting it as a vantage point for their international operations. Mahindra & Mahindra, for instance, has an 80:20 joint venture with Ziangling Motor Co Group for the production of tractors, while Bharat Forge recently inked a JV with FAW Corporation for its forging business. One more company likely to make a beeline for China is Delhi-based Amtek Auto, which is said to be contemplating operations there. Though the current JVs are primarily focused on the Chinese market, exports of components and products to allied regions haven’t been ruled out altogether. “The domestic market in China is booming. It makes sense for players going there to focus on that segment,” says Amit Kasat, senior analyst, Motilal Oswal Securities.
Interestingly, the movement to China by Indian automotive players has been tad slow on account of copycat manufacturing practices adopted by Chinese firms, which makes Indian manufacturers wary of partnering with them, say analysts. “China is a bit of a black hole. And the efforts this far in terms of partnerships, joint ventures or even sourcing of components in the auto sector is at a nascent stage,” says Kasat.
Despite the Chinese threat to Indian manufacturing, makers here—such as consumer durable companies like Onida, Videocon and Godrej—are choosing to outsource their production requirements to firms in China, importing finished goods, which are subsequently branded and sold in the Indian market. By some estimates, Chinese products constitute over half of the Rs 20,000-crore Indian consumer durable industry. This could increase over time, say analysts, as manufacturers continue to outsource production to China. “Contract manufacturing is a visible trend in the sector,” says an industry source.
• Collaboration between Indian and Chinese firms is most visible in the oil & gas sector
• OVL and its Chinese counterparts have bid jointly and won blocks in Syria and Colombia
• Indian automakers have opted for joint ventures with Chinese firms
• Consumer durable giants and telecom operators prefer to source products from across the border
• IT majors are strengthening operations in China tapping into its vast talent pool
Consumer durable categories that chiefly sport the ‘Made in China’ tag include air conditioners, microwave ovens and refrigerators. Godrej, for instance, markets top-end split ACs manufactured by Chinese company Gree. Onida and Videocon, on the other hand, import about 20% and 40% of their products from China.
Even Indian telecom companies have been turning to Chinese equipment vendors and handset manufacturers to meet their requirements. Says R L Dubey, director, operations, Bharat Sanchar Nigam Limited; “There is a huge value proposition attached with Chinese makers. Their bids are low and they are comfortable to work with.” How strong this association is can be gauged from the number of orders bagged by Chinese vendors of late. For instance, ZTE has been hired by Reliance Communications to manage its data card business. Huawei does the same for Tata Teleservices. Equipment manufacturers such as Hysen and Xingpeng besides ZTE and Huawei are working closely with BSNL. Again, Tata Teleservices procures Kyocera and Haier handsets among other alternatives. Rivals are said to be doing the same too.
In fact, say observers, telecom service providers inclined to play the volume game in India are increasingly going for Chinese models. The niche handset market, on the other hand, continues to be out-of-bounds for most Chinese handset manufacturers.
Like consumer durable and telecom companies, IT majors such as Tata Consultancy Services (TCS), Infosys and Satyam Computer Services have been looking towards China, strengthening their operations there and converting it into an engineering and services hub. “There are three reasons for this,” says Siddharth Pai, partner at global business advisory TPI, “The Chinese government is making significant investments in the IT and BPO sectors. China has a pool of multinationals waiting to be tapped. In that sense, it is no more a mere offshore and outsourcing hub, and lastly, the supply and scale of Indian operations needs to be replicated elsewhere. China provides that opportunity.”
Small & medium enterprises in the IT and ITeS sectors are also crossing the border into China expanding into niche areas such as design and control systems. Says Ramesh Chandra, managing director, India of engineering services firm Ranal, “Like India, China is a huge market for global auto companies. These firms set up base to simultaneously serve both the domestic and export markets. As a result, there is a demand for suppliers of information technology and engineering services in this area.” Though, finding professionals proficient in English is an issue in China, the government there is said to be taking proactive measures to deal with the problem. “As such,” points a Bangalore-based IT consultant, “if you are dealing with local clients, the need for being proficient in English is eliminated.” With Indian and Chinese firms increasingly joining hands, seeing sense in economic cooperation rather than cut-throat competition, does it imply an end to the one- upmanship between the two?
BB - hard to believe that these millionaire ERHE shareholders (who own millions of shares of ERHE)" spend all their time on a penny stock bulletin board - LOL
Umbra, yes, you've mentioned your anti-USA feelings repeatedly on this Board. Not that I believe you are British but if you are, how quickly you've forgot about who saved you during World War II....
You talk with such authority, I guess you also forgot that you predicted we'd all (ERHC shareholders) be rich by Easter 2006. Hey, only 6 more months and maybe you can make another prediction for Easter 2007......
GO USA!
ND9
Nigeria: Govt to Withdraw Eight Oil Blocks
This Day (Lagos)
September 25, 2006
Posted to the web September 25, 2006
Crusoe Osagie
Lagos
The Federal Government has decided to retrieve a total of eight blocks left dormant by major oil companies and would offer them in a licensing round slated for next month, a senior official of the Department of Petroleum Resources (DPR), said at the weekend.
This development is coming just as the Nigerian National Petroleum Corporation (NNPC), disclosed that stakeholders have now approved the feasibility study of the Trans Sahara Gas Pipeline Project (TSGP), which will pipe Liquefied Natural Gas (LNG), from Nigeria to Europe.
The DPR official who pleaded anonymity said 15 blocks were retrieved last year and discussions were already on with oil majors over about half of last year's figure.
"Those days are gone when companies will take acreage from the government and they would not work the blocks, rather they just leave the block for many years without putting it into development.
"We have just concluded the review for 2006 and we are discussing that now with the partners concerned," the official said.
Though he did not name the affected blocks or the companies concerned, he however said the acreages to be considered for retrieval were those that had been left dormant for more than 10 years.
Minister of State for Petroleum, Dr. Edmund Daukoru had last month disclosed that three of such blocks were retrieved from Chevron and ExxonMobil and that the government had also opened discussions with Royal Dutch/Shell and Italian firm Eni, to take back neglected blocks.
But the DPR official said the oil firms used the assets to grow their portfolio while Nigeria "loses its assets without converting it into value for everybody's benefit."
Government's decision to withdraw dormant blocks, the official disclosed, had made the oil firms sit up.
"Indeed, if you recall last year, we had 15 blocks which we retrieved. I hope that next year we would be discussing just about half of this year's retrievals, which would indicate the industry is making progress," he added.
Speaking on the new bidding round planned for October, he said companies would now be required to bid along with their chosen Nigerian indigenous partners.
This a departure from what obtained in the 2005 licensing round as well as the mini round held last May where the local companies were foisted on operators.
"Following the President's directive, it has been decided that we will not be imposing LCV (Local Content Vehicles) on companies. Investors will bring their own LCV. LCV will now become a bid-able parameter.
"Nigeria will auction a total of 50 blocks at the bid round, with 30 in the Niger Delta and deep waters on offer and 20 in the inland basins", the official said.
He added that the government hopes to earn about $1bn from the exercise, just about the same income earned from last year's block awards.
"For 2006 (bid round), we have to be conservative. We expect that we will get to the one billion dollar mark," he said.
Meanwhile, the Nigerian National Petroleum Corporation (NNPC), has said that international stakeholders have approved the feasibility study of the Trans Sahara Gas Pipeline Project (TSGP), which will pipe Liquefied Natural Gas (LNG) from Nigeria to Europe.
The feasibility, carried out by British Company, PENSPEN/IPA, was presented to key international stakeholders in the project including the Algerian Minister of Mines and Power, Mr Chakib Khelil, Niger's Mines and Power Minister, Mohamed Abodulahi, Nigeria's Minister of States for Petroleum Resources, Dr Edmund Daukoru and the Group Managing Director of NNPC, Engineer Funso Kupolokun, last Tuesday in Algeria.
According to the General Manager, Group Public Affairs of NNPC, Dr Levi Ajuonuma, following the review and endorsement of the feasibility study of the project, it is expected that in 10 years, the pipeline will transport the first batch of gas to Europe by the year 2015.
Ajuonuma said the project which has been judged to be economically viable has caught the interest of the World Bank, the International Monetary Fund (IMF), as well as several other international financial institutions who are willing to provide funding for the project.
"By the year 2015, the unit price of gas, which currently hovers around $4 will be higher and as such the economic viability of the project is not a question.
"The project will be leveraging on the experience of Algeria which began investment in LNG since 1964. It will also be taking advantage of Nigeria's potential, being the second largest LNG producer in the world after Qatar", he added.
The TSGP project is designed to transport natural gas from the LNG trains in Nigeria to Europe through Niger and Algeria.
It covers a distance of 4,218 km of which 1037km of the distance is on the Nigerian soil, 841 km on Niger soil and then 2,310 km on Algerian soil, would lead gas to Europe through the Mediterranean.
Relevant Links
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Nigeria
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Ajuonuma added that the project would also include the construction of more than 20 flow stations, saying "The pipeline is designed to transport between 20 and 30 million metric tones of gas annually round the European market".
He said the multimillion dollar project is to be undertaken by Sonatrach on behalf of Algeria and NNPC on behalf of Nigeria.
"The success of the project will give, without doubt, a serious boost to the economy and stimulate economic activities, therefore enhancing social progress for all the regions through which it would cross and will equally permit the feeding of natural gas not only for the regions involved in the project, but also neighbouring countries," Ajuonuma explained.
China to double trade with Portuguese-speaking nations by 2009
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Sep. 25, 2006 (China Knowledge) – China aims to increase trade with Portuguese-speaking countries by 2009 by using Macau as a platform.
Hua Jianmin, secretary general of China's State Council, said at a Ministerial Conference for Portuguese- speaking countries in Macau Sunday that trade between China and Portuguese-speaking countries including Portugal, Brazil, and Angola is expected to reach as much as US$50 billion this year.
China intends to double this figure from 2007 to 2009, Hua said.
Brazil is China's largest trading partner among all Portuguese-speaking countries, which include Portugal, Angola, Cape Verde, Guinea-Bissau, Mozambique, Sao Tome and Principe, and East Timor.
In order to establish better relations with these countries, China will pledge RMB 800 million in loans, although no details were given on how much each state will get.
Macau, a special administrative region of China, has had Portuguese influence for over 400 years. This characteristic makes it a suitable platform for trade between China and Portuguese-speaking countries.
Since returning to China’s control in 1999, Macau has played a role in China’s relations with the Portuguese-speaking world - in 2003, China signed in Macau a series of agreements on expanding trade, investment and economic cooperation with Portugal, Brazil, Angola, Mozambique, Cape Verde, Guinea-Bissau, and Timor-Leste.
In 2004, volume of two-way trade between China and Brazil increased by 780% from 1999; and Angola became one of China's largest crude oil suppliers. In the same year, Portuguese Telecom entered the Chinese market via Macau.
Copyright © 2006 www.chinaknowledge.com
China's Sinopec to invest 4.3 bln yuan in gas-oil facility in Chongqing - report
09.25.2006, 10:34 PM
BEIJING (XFN-ASIA) - China Petroleum & Chemical Group Corp (Sinopec), the country's largest refiner, is planning to invest 4.3 bln yuan to construct a plant in the southwest city of Chongqing converting natural gas into petroleum product equivalents, the China Business News reported.
The facility, the first of its kind in the country, is expected to start operations by 2008, producing two mln tons of fuel annually, the newspaper reported, citing officials at an industrial park where the plant will be located.
In June, Sinopec reported a natural gas find in the northeast of Sichuan Province near Chongqing, with reserves of about 500 bln cubic meters.
(1 usd = 8.00 yuan)
derek.jiang@xinhuafinance.com
Ibready - thanks - EOM.
Thanks Manti - EOM.
thanks!
That's funny - too bad you couldn't answer my question.
Oilphant, ONGC and SNP just acquired one Texas company. Now, maybe another?
thanks,
ND9
In a first acquisition jointly made, Oil and Natural Corporation (ONGC) in equal partnership with China's Sinopec has acquired Columbian oil firm Omimex de Columbia for $850 million. According to a statement issued here, ONGC said, "A 50:50 joint venture - comprising a subsidiary of ONGC Videsh Ltd and a subsidiary of Sinopec International Petroleum Exploration and Production Corporation (SIPC) - has acquired Omimex de Colombia Ltd (Omimex), from Texas-based Omimex Resources, Inc."
Sources told Business Line that the name of OVL's subsidiary would be ONGC Mansarovar. OVL, the overseas arm of ONGC, and a subsidiary of Sinopec will pay $425 million each for acquiring Omimex, sources added. OVL was advised by UBS Investment Bank, SIPC by Citigroup Global Markets Ltd and Omimex Resources, Inc by Scotia Waterous for the acquisition.
Omimex has oil and gas operations exclusively in Colombia, which include onshore production and exploration areas with gross proved reserves of more than 300 million barrels of oil and current production at approximately 20,000 barrels of oil per day.
Oilphant - thanks.
Ibready - you said, "If only 500 mill. are tendered then 73% of the tendered shrs. would be purchased"......
So then, what happens to the other 27% of the tendered shares. That is, if 500 million are tendered, and 73% (365M) are purchased at $6.12, what happens to the other 135M shares? What is the stock market price of those common shares?
I've never been through a merger, buy-in, buyout and I'm just trying to understand. I would hate for EO to make tons of money and the rest of us common shareholders get screwed.
thanks,
ND9
Doug C - good point, I was thinking the same thing EOM.
Brazil to help India with deep water exploration.... (probably posted before)
Brazilian, Indian Oil Companies Sign Cooperation Agreement
Deutsche Presse-Agentur (dpa)
Tuesday, September 12, 2006
Brazil's state oil company Petrobras signed an agreement on Tuesday with the Indian Oil and Natural Gas Corporation Ltd (ONGC), the Brazilian firm said.
The deal, signed during Indian Prime Minister Manmohan Singh's visit to Brazil, provides for cooperation in several areas, including production of oil and natural gas in deep water, Brazil, India and other countries, Petrobras said in a statement.
The agreement was signed by the chairman of the Brazilian company, Jose Sergio Gabrielli, and his ONGC counterpart, Radhey Shyam Sharma. It will be valid for two years and can be extended for a similar period of time.
The deal seeks to pool the Brazilian company's expertise in oil and natural gas production in deep water with ONGC's campaign to expand its deep water operations in India and abroad, Petrobras said.
During his visit to Brazil, Singh was expected to meet with President Luiz Inacio Lula da Silva on Tuesday. On Wednesday, both leaders are set to join South African President Thabo Mbeki for an India-Brazil-South Africa summit.
Singh and Mbeki are then expected to travel to Cuba for the Non- Aligned Movement summit on Friday and Saturday.
Copyright 2006 dpa Deutsche Presse-Agentur GmbH
New port and airport in Sao Tome need enhanced power supply [ 2006-09-21 ]
Sao Tome, Sao Tome and Principe, 21 Sept – Projects to build a deepwater port in Sao Tome and enlarge the islands’ main airport will require an increase in the current maximum energy production capacity by 15 MWatts, says the head of the country’s state power utility.
Julio Silva, recently appointed director general of EMAE, was cited by the daily Tela Nova as saying Sao Tome’s electricity generating capacity will be increased in coming months by 10 MWatts with two new projects aimed to ease the archipelago’s power shortages.
The first project is a new 6 MWatt thermal power plant being installed by a Nigerian company, scheduled to come on stream early 2007. This will be followed by the rehabilitation of the Guegue hydroelectric dam and the installation of new smaller hydos along the river powering this plant.
Silva said these hydro schemes would provide another 4 MWatts to Sao Tome’s national grid, adding that the county’s total generating capacity would need to be boosted further to satisfy demand from a new deepwater port and enlarged international airport. Work on the two projects is expected to start next year. (macauhub)
ERHClongtimer/BB - so if true, what would that mean for the common shareholder? That is, if SNP bought 37% from EO at $6.12 per share, what would happen to the rest of the common shares? Would our price go to $6.12 or stay at 40 cents?
All thoughts are appreciated.
thanks,
ND9
"If you want elephants, you go to Africa"......
I think I posted this article before but this is a different publication (I think - too lazy to go back and look).
ND9
******************************************
23 September 2006
First oil drilling imminent in new bigger-than-North-Sea West Africa oil prospect
The first drilling in a large new geopolitically-favourable West African oil prospect is imminent.
This maiden spud which will be offshore of Mauritania, but onshore of and extending across to neighbouring Mali is a whopping area under exploration that has created a “good old Texas stampede”, says Baraka Petroleum MD Max de Vietri.
He says that the region has become the most-talked-about oil frontier in the world.
“The old saying that, if you want elephants, you go to Africa, has proved correct,” De Vietri says. The available onshore acreage is so big that it cannot be replicated anywhere in the world today. It is larger than the North Sea, able to cover the entire Gulf of Mexico and a third the size of Texas. Baraka’s concession totals 272 300 km2 and is an extension of the high-yielding geology of neighbouring Algeria and Libya. “Our acreage’s footprint is so large it could be seen from space,” he quips.
He says that it holds the prospect of increasing gas exports to Europe and helping to meet US diversification ambitions, which stipulate that 25% of oil imports should come from Africa by 2015, he reports. Envisaged are exports of gas to Europe from Algiers and exports of oil to North America from Mauritania’s west coast, says De Vietri, who began his West African hydrocarbon search in Mauritania in 1994. First flow from Baraka’s offshore Block 20 concession is anticipated in four weeks. The Chinese National Petroleum Company is preparing to fast-track the operation. “The Chinese are very hungry for success,” says De Vietri. Baraka is simultaneouly exploring eight blocks in Mali and Mauritania, which are a continuation of the offshore geology, where the offshore Block 20 is about to produce.
Five of the blocks are in Mali and two in Mauritania, as part of the Taoudeni area, which is a virtually unexplored extension of successful Algerian and Libyan hydrocarbon fields.
The tenement is bigger than seven-billion-barrel-equivalent geology. Majors are now being attracted to partner Baraka in Mauritania and negotiations are under way for the prospects in Mali.
“We have created a good old Texas stampede,” says De Vietri. A million square kilometres of new concessions are now being taken up.
Baraka, which is listed on the Australian Stock Exchange, is the seventh-largest petroleum explorer in West Africa and the seventeenth-largest worldwide.
http://www.engineeringnews.co.za/eng/news/thisweek/?show=93648
Published: 2006/09/22 Printer friendly:
Author: Martin Creamer
Portfolio: Publishing Editor
E-mail: newsdesk@engineeringnews.co.za
Maybe CVX EOD .37 buys out ERHC
How about EO = Emeka Offor?
Brez63... did you see the Motley Fool article I posted on proven reserve valuations? It's post #73401. Not sure if you saw it but you might want to compare it against your numbers.
ND9
Motley Fool article on $ per proven reserves
COMPANY........Proven Reserves.....Market Value......Price per bbl p-rsvAnadarko (APC)....2.36 bbl..........$21.32 billion.......x9.03*Devon (DVN)......2.29 bbl..........$29.8................x13.01Occidental (OXY)..2.49 bbl..........$39.55...............x15.88Apache (APA)......1.90 bbl..........$21.32...............x11.22Encana (ECA)......2.6 bbl...........$40.65...............x15.63Kerr-McGee........1.22 bbl...Acquired by Apache for x13.11 bbl reserves* - Not counting anything recently discovered in GOM
Of the above, the average price per proven reserve = x12.98 proven bbl reserves.
http://www.fool.com/community/pod/2006/060915.htm?ref=foolwatch
Balance, it may have been posted before but I posted an article (post # 73137) the other night that I thought you might be interested in.
thanks,
ND9