Energy Watch
Energy related news from UPI.
Mexico to invest billions to boost production
Mexico hopes to boost crude output, while reducing dependence on natural gas imports, but will need to invest nearly $20 billion annually over the next 20 years to reach its goal, BNAmericas, Latin American business news daily, reported.
Mexico aims to become a natural gas exporter over the next several years, Pemex CEO Luis Ramirez Corzo said at an event to commemorate the 68th anniversary of the country's oil expropriation.
Each year, Mexican state-owned Pemex invested $9.43 billon during Vicente Fox's administration from 2000-2005 in an effort to reverse declining crude oil and gas production, the official said.
The Mexican tax system is a large part of the problem.
Pemex registered the highest revenues of its history of $85.5 billion in 2005, while profits before taxes were $49.3 billion. But the company's government contributions were approximately $63.4 billion, according to Ramirez.
With Pemex's tax payments representing 110 percent of total operating profits in the last five years, net losses were generated coupled with a continuous financial deterioration, he said.
Mexico recently undertook changes in its tax policy, but this will not completely resolve Pemex's current financial problems. The change will only allow Pemex to maintain its short-term operational viability.
Fox submitted a bill to congress to allow private participation in sections of its hydrocarbon industry and downstream sector.
-0-
Middle East launches first energy-trading platform
The Middle East plans to establish its first dedicated energy trading platform -- the International Mercantile Exchange, or IMEX.
"Although the Middle East accounts for over 60 percent of the world's proven oil reserves and over 40 percent of the world's natural gas reserves, the region does not yet have a single energy trading platform," Esam Janahi, chairman of Gulf Energy, said.
The historic move was secured under a memorandum of understanding between Gulf Energy, Qatar Financial Centre Authority and the Qatar Financial Centre Regulatory Authority.
"With Qatar being on track to be the leading exporter of LNG by 2010 and an important exporter of oil, the introduction of IMEX fits well in the country's dedication to the energy sector and world-class finance," Sheik Mohammed bin Ahmed bin Jassem al-Thani, minister of economy and commerce in Qatar and the chairman of Qatar Financial Centre Authority, said.
IMEX will be situated in Gulf Energy's project Energy City Qatar to feature some of the most technologically advanced trading platforms in the world and be regulated by the QFCRA.
"The QFC Regulatory Authority is a modern, fully integrated financial services regulator, operating to the highest international standards, and ideally placed to regulate the Middle East's first energy trading platform," said Phillip Thorpe, chairman and CEO of the QFCRA.
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Oman to develop 18 small oil fields
The Petroleum Development Oman, or PDO, and MedcoEnergi International formally secured an agreement to develop a cluster of 18 small fields in the Nimr-Karim area of south Oman.
Under the Fields Service Contract, MedcoEnergi will receive a 10-year mandate to accelerate the development of a group of PDO's "small fields" while PDO concentrates on its portfolio of large fields, which amount for more than 80 percent of Oman's total oil production.
MedcoEnergi and its partners would be assigned to developing a program on budgeting and financing.
"This novel service contract will enable PDO to boost production from these previously marginal oil fields without affecting the more critical delivery of major enhanced oil recovery projects underway in other areas of Oman operated by PDO," said John Malcolm, managing director of PDO.
Medco Energi secured a joint operating agreement with Oman Oil Co. to assume a 25 percent stake in the service contract.
-0-
Kazakhstan eyes Azerbaijan oil transit deal
Kazakhstan hopes Azerbaijan will sign an agreement on oil transit through the Baku-Tbilisi-Ceyhan oil pipeline, Andar Shukputov, the Kazakh Ambassador to Azerbaijan, told reporters Thursday.
If the two sides could agree to sign the contract, the pipeline is a good source to export Kazakh oil to western markets.
The two sides last held talks on drafting an agreement in Astana in 2005.
"The sides have achieved some agreements, but the negotiations were held in the level of economic subjects such as the State Oil Company of Azerbaijan and Kazmunaygas," Shukputov.
"Now the draft agreement is due to be unified by other appropriate bodies and departments," the Ambassador stressed," he added.
Kazakhstan has been urging Azerbaijan to sign.
"It'll probably be signed soon, if Azerbaijan successfully carries out the procedure without any changes," he said.
Kazakhstan's Prime Minister Danial Ahmadov plans to visit Azerbaijan in May to continue negotiations.
--
Closing oil prices, March 24, 3 p.m. London
Brent crude oil: $62.57
West Texas Intermediate crude oil: $63.56
Mexico to invest billions to boost production
Mexico hopes to boost crude output, while reducing dependence on natural gas imports, but will need to invest nearly $20 billion annually over the next 20 years to reach its goal, BNAmericas, Latin American business news daily, reported.
Mexico aims to become a natural gas exporter over the next several years, Pemex CEO Luis Ramirez Corzo said at an event to commemorate the 68th anniversary of the country's oil expropriation.
Each year, Mexican state-owned Pemex invested $9.43 billon during Vicente Fox's administration from 2000-2005 in an effort to reverse declining crude oil and gas production, the official said.
The Mexican tax system is a large part of the problem.
Pemex registered the highest revenues of its history of $85.5 billion in 2005, while profits before taxes were $49.3 billion. But the company's government contributions were approximately $63.4 billion, according to Ramirez.
With Pemex's tax payments representing 110 percent of total operating profits in the last five years, net losses were generated coupled with a continuous financial deterioration, he said.
Mexico recently undertook changes in its tax policy, but this will not completely resolve Pemex's current financial problems. The change will only allow Pemex to maintain its short-term operational viability.
Fox submitted a bill to congress to allow private participation in sections of its hydrocarbon industry and downstream sector.
-0-
Middle East launches first energy-trading platform
The Middle East plans to establish its first dedicated energy trading platform -- the International Mercantile Exchange, or IMEX.
"Although the Middle East accounts for over 60 percent of the world's proven oil reserves and over 40 percent of the world's natural gas reserves, the region does not yet have a single energy trading platform," Esam Janahi, chairman of Gulf Energy, said.
The historic move was secured under a memorandum of understanding between Gulf Energy, Qatar Financial Centre Authority and the Qatar Financial Centre Regulatory Authority.
"With Qatar being on track to be the leading exporter of LNG by 2010 and an important exporter of oil, the introduction of IMEX fits well in the country's dedication to the energy sector and world-class finance," Sheik Mohammed bin Ahmed bin Jassem al-Thani, minister of economy and commerce in Qatar and the chairman of Qatar Financial Centre Authority, said.
IMEX will be situated in Gulf Energy's project Energy City Qatar to feature some of the most technologically advanced trading platforms in the world and be regulated by the QFCRA.
"The QFC Regulatory Authority is a modern, fully integrated financial services regulator, operating to the highest international standards, and ideally placed to regulate the Middle East's first energy trading platform," said Phillip Thorpe, chairman and CEO of the QFCRA.
-0-
Oman to develop 18 small oil fields
The Petroleum Development Oman, or PDO, and MedcoEnergi International formally secured an agreement to develop a cluster of 18 small fields in the Nimr-Karim area of south Oman.
Under the Fields Service Contract, MedcoEnergi will receive a 10-year mandate to accelerate the development of a group of PDO's "small fields" while PDO concentrates on its portfolio of large fields, which amount for more than 80 percent of Oman's total oil production.
MedcoEnergi and its partners would be assigned to developing a program on budgeting and financing.
"This novel service contract will enable PDO to boost production from these previously marginal oil fields without affecting the more critical delivery of major enhanced oil recovery projects underway in other areas of Oman operated by PDO," said John Malcolm, managing director of PDO.
Medco Energi secured a joint operating agreement with Oman Oil Co. to assume a 25 percent stake in the service contract.
-0-
Kazakhstan eyes Azerbaijan oil transit deal
Kazakhstan hopes Azerbaijan will sign an agreement on oil transit through the Baku-Tbilisi-Ceyhan oil pipeline, Andar Shukputov, the Kazakh Ambassador to Azerbaijan, told reporters Thursday.
If the two sides could agree to sign the contract, the pipeline is a good source to export Kazakh oil to western markets.
The two sides last held talks on drafting an agreement in Astana in 2005.
"The sides have achieved some agreements, but the negotiations were held in the level of economic subjects such as the State Oil Company of Azerbaijan and Kazmunaygas," Shukputov.
"Now the draft agreement is due to be unified by other appropriate bodies and departments," the Ambassador stressed," he added.
Kazakhstan has been urging Azerbaijan to sign.
"It'll probably be signed soon, if Azerbaijan successfully carries out the procedure without any changes," he said.
Kazakhstan's Prime Minister Danial Ahmadov plans to visit Azerbaijan in May to continue negotiations.
--
Closing oil prices, March 24, 3 p.m. London
Brent crude oil: $62.57
West Texas Intermediate crude oil: $63.56
posted by Marko at 3/27/2006 10:28:00 AM
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