Energy

OPEC 'stays the course', hopes for high prices

OPEC ministers on Thursday decided to "stay the course" and keep output steady as they bet on a strengthening economy and tentative signs of increased demand to boost oil prices. Some members of the 12-member Organization of the Petroleum Exporting Countries voiced concern high levels of inventory could depress prices, but Naimi said demand was rising and would drain away excess supplies.

Kuwait may start light naphtha exports from end-yr

Kuwait Petroleum Corp (KPC) will export for the first time light naphtha, used mainly for producing ethylene and gasoline, after its new aromatics plant starts up around the end of this year, traders said. The plant, which has a nameplate capacity of 830,000 tonnes per year (tpy) of paraxylene and nearly 400,000 tpy of benzene, can produce up to 1 million tpy of light naphtha, all of which would be exported via term contracts.

Iraq oil revenue rises in April

Iraq boosted revenue from oil exports by 8.1 percent in April as the oil-wealthy nation sold crude at a higher price, official figures showed. Revenue rose to 2.69 billion dollars last month from 2.49 billion dollars in March, according to data published on the oil ministry website. Iraq shipped less oil last month -- 54.7 million barrels compared to 56.3 million in March -- but secured an average price per barrel of 49.21 dollars, up five dollars over the previous month.

Energy investment 'essential' despite crisis: G8 ministers

Investment in energy projects is "essential" and must go forward despite the global financial crisis, Group of Eight energy ministers said. "The current financial and economic crisis must not delay investments and programmed energy projects which are essential to economic recovery," the ministers said in a joint statement. We urge governments and energy companies to adopt a long-term view in planning their investments in energy infrastructures," the ministers said.

Circle Oil discovers oil and gas in Egypt

Oil and gas exploration and production company Circle Oil has discovered oil and gas in the Geyad-1X exploration well on the North West Gemsa Concession in Egypt. The company has said that the discovery is in the Kareem Formation sandstones with the well testing oil and gas at a sustained average combined rate from two pay zones of 2,809 barrels of oil per day and 3.04 million standard cubic feet per day on a 64/64-inch choke.

Iraq to slap foreign oil firms with 35 pct corporate tax

Iraq's cabinet has approved a bill that will slap foreign oil firms with a minimum 35 percent corporate tax in a bid to boost revenues, government spokesman Ali al-Dabbagh said. "The Council of Ministers decided to approve the draft law on income tax on foreign oil companies based on the provisions of two constitutional articles," he said in a statement. "This agreement on the draft law will guarantee Iraq's rights in imposing taxes on companies contracted to extract oil, and it will ensure that these taxes will be used for the national income," Dabbagh said

Kuwait May Re-tender $8B Refinery Project

Kuwait National Petroleum Co., or KNPC, may re-tender a delayed $8.3 billion project to build a refinery after the election of a new parliament could clear political objections to the plant, a senior executive said. "This is a strategic project and it has to go through," said Asaad Al Saad, deputy chairman of KNPC, in a recent interview. "The problem is, will we continue with the same people or re-tender? It looks more like we will re-tender it, unfortunately, because of the politics involved."

Axial Vector Energy Corporation JV Partner, Petrosonics LLC, awarded patent in Russia

Axial Vector Energy Corporation ("AVEC") announced that its PETRO AVEC JV partner, Petrosonics LLC, was recently awarded a Russian patent (Russian Patent Application 2006108527), protecting the process by which sulfur and nitrogen bearing compounds are removed from diesel oil, FCC cycle oil, FCC slurry oil, light gas oil, heavy gas oil and coker gas oil fractions through the use of sonic energy and oxidation. The patent will remain in effect for 20 years with the possibility of an additional five year extension.

Oman: Harnessing the Sun

In an effort to spur economic development and reduce its dependence on hydrocarbons as a source of energy, Oman's government has announced plans for an international tender early next year for the country's first large-scale solar power plant. "If the feasibility of a large solar plant is confirmed, and I am confident it will be, PAEW's advisers will prepare tender documentation for the Oman Power and Water Procurement Company to initiate in 2010 a fair and transparent competition to build, own and operate Oman's first large-scale solar plant," Mohammed Nasser Al Khasibi, the secretary-general of the Ministry of National Economy, said.

Dana says in advanced gas city talks with Egypt

The Egyptian unit of Abu Dhabi-listed Dana Gas said it is in advanced negotiations with Egypt to build a "gas city" that will attract over $20 billion in investments over the long term. "Gas cities" are large, gas-fed industrial complexes housing petrochemical and heavy manufacturing plants. "We are in advanced stages of discussion with the government to build a gas city in Egypt," the firm's President Hany Elsharkawi said.

Iraqi government OKs Kurds' crude oil expor

Iraq's central government has approved Kurdish plans to export crude from the northern region, officials said, a step that could pave the way to ease tensions between Arab-led government and Kurds mainly over how to control oil resources. Oil Ministry spokesman Assem Jihad stated that the oil would be marketed by the government-owned State Oil Marketing Organization and shipped through pipeline to the Turkish Mediterranean port of Ceyhan. Oil revenues will be deposited in the federal account, he said. "All produced oil in any part of Iraq must be sent and handed over to the Oil Ministry to be marketed by SOMO and not other side," he said. The move - marking approval for the first official oil exports by the Kurds - comes at a critical time for Iraq.

Qatar starts work on 3.9-billion-dollar power plant

Gas-rich Qatar announced the start of work on a 3.9-billion-dollar power plant which it said would be the largest in the Middle East. The Ras Girtas Power and Water Project is due to go online in April 2011.It will have a production capacity of 2,730 megawatts of electricity per hour as well as 63 million gallons (286 million litres) of desalinated water a day, said the project's chief, Saad al-Kaabi.

Heritage Oil says makes big Iraq find, shares soar

British oil explorer Heritage Oil announced that it has discovered up to 4.2 billion barrels of oil in the Kurdish autonomous region of Iraq, sending its shares soaring 18 percent, despite doubts about the legality of Kurdish oil contracts. Heritage said in a statement that its Miran West field could be producing 10,000 to 15,000 barrels of oil per day by the end of the year, with plans to truck out the oil until a connection to Iraq's export pipelines can be built. Analysts roundly applauded the find and lifted their price targets for Heritage's shares.