Statoil to Resume N. Sea Project Following Tax Decision

- Statoil to Resume N. Sea Project Following Tax Decision

Tuesday, July 05, 2011
Dow Jones Newswires
LONDON
by Alexis Flynn

Statoil said it will resume development of the Mariner and Bressay field projects in the U.K. North Sea after the Treasury announced it would increase a tax allowance to companies investing in marginal fields.

"We welcome and are encouraged by the positive steps made by this announcement. The negative impact from the tax increase announced in March has been neutralized for the Mariner investment and the project is back on track," said Statoil spokesman Bard Glad Pedersen.

He added that the company is "working diligently with both the Mariner and Bressay projects toward a final investment decision. But it is with Mariner we expect the final investment decision by the end of 2012."

The U.K. government Tuesday offered a concession to the oil and gas industry by raising one tax allowance that applies to North Sea fields. The Ring Fence Expenditure Supplement will rise to 10%, from 6% previously, allowing companies to offset a greater amount of their expenses against their taxes and, "support investment in marginal fields," the U.K. Treasury said in a statement.

Statoil, Norway's largest oil producer, in March postponed development of the projects following the government's decision to raise to 32% from 20% the supplementary charge levied in addition to corporation tax on profits from U.K. oil and gas production.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Commodity Corner: Oil Up, Brent Falls on IEA's Decision

- Commodity Corner: Oil Up, Brent Falls on IEA's Decision

Friday, June 24, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures remained nearly flat Friday as investors weighed the IEA's decision to release an emergency supply of 60 million barrels of oil. Both NYMEX and Brent crude had seen a recent surge in prices due to Libya's civil war.

Light, sweet crude added 14 cents to settle at $91.16 a barrel. Oil prices fluctuated between $89.82 and $92.34 Friday. For the week, crude prices lost $1.85, or 2 percent.

While analysts and investors assess their position on the IEA's surprise decision, Brent prices plunged $2.14 Friday. Ending the week at $105.12 a barrel, Brent futures settled at their lowest since Feb. 18. Brent, which is used in many international blends, had rallied in the wake of the unrest in Libya.

Additionally, Europe's debt problems also pressured Brent to decline Friday. The euro dropped on uncertainty of whether Greece's parliament will approve additional bailout funds.

The intraday range for ICE Brent crude was $103.62 to $108.70 a barrel.

Meanwhile, front-month natural gas gained 3.6 cents Friday, settling at $4.23 per thousand cubic feet. Prices peaked at $4.25 and bottomed out at $4.17.

Reformulated gasoline for July delivery traded between $2.76 and $2.88 to end Friday's trading session at $2.78 a gallon.

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Inpex Briefs Final Investment Decision for Ruby Field

- Inpex Briefs Final Investment Decision for Ruby Field

Tuesday, June 21, 2011
Inpex Corp.

Inpex announced that through its wholly owned subsidiary, INPEX South Makassar, Ltd. the final investment decision was made for the Ruby gas field in the Sebuku Block. Upon this decision, development activities will start towards the commencement of gas production in the field in the second half of 2013.

The Block is located 300km south of the Offshore Mahakam Block, where TOTAL and INPEX are producing oil and gas since 1974. The Block covers 2,345km2 with a water depth ranging from 50m to 200m. With the Ruby gas field having obtained the approval of the plan of development from the Government of Indonesia in July 2008, and following this final investment decision, four development wells are planned to be drilled from an offshore platform. The gas production will flow to and be processed at the onshore production facilities of Offshore Mahakam Block with certain synergy effects expected. The gas production rate is estimated at 100MMscf per day with sales principally to a fertilizer plant located in North Bontang, East Kalimantan. The total capital investment is projected at 500MM US dollars.
Pearl Oil (Sebuku) Limited operates with a 70% participating interest, TOTAL and INPEX each holds a remaining 15% participating interest in the Block.

INPEX has been expanding its exploration and development activities in Indonesia as one of its international core business areas. INPEX is conducting production activity in the Offshore Mahakam Block with the largest gas production in Indonesia. INPEX is also in the process of developing the large scale Abadi LNG project in the Masela Block, the Arafura Sea, for which INPEX is now preparing for the Front End Engineering and Design (FEED) as the Operator. INPEX will further endeavor to explore for and develop oil and gas resources in Indonesia.

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BP: No Decision Taken to Sell Any of Its TNK-BP Shareholding

- BP: No Decision Taken to Sell Any of Its TNK-BP Shareholding

Tuesday, June 07, 2011
Dow Jones Newswires
by Alexis Flynn

BP said Tuesday it has no plans at present to divest any of its shareholding in TNK-BP Ltd.

BP's comments follow a report late Monday that the U.K. major was beginning preparations to sell part of its stake in the conflict-plaugued Russian venture to Rosneft in a bid to salvage a landmark cooperation deal with the Russian state oil company.

"BP has taken no decision to sell any of its shareholding in TNK-BP and there is no current intention to do so," a BP spokesman told Dow Jones Newswires.

Top BP executives notified the Russian billionaire shareholders in TNK-BP Monday that the U.K. company would soon send them a letter formally announcing the U.K. company's intention to sell down its 50% TNK-BP stake, the first step in such a sale, The Wall Street Journal reported Monday, citing people familiar with the situation.

Copyright (c) 2011 Dow Jones & Company, Inc.

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