House Panel Passes Bill to Streamline Issuance of Air Permits for Oil Drill

- House Panel Passes Bill to Streamline Issuance of Air Permits for Oil Drill

Thursday, June 02, 2011
Dow Jones Newswires
by Tennille Tracy

A bill to streamline the issuance of clean-air permits for offshore oil drilling cleared an important hurdle Thursday, with the Republican-controlled U.S. House energy committee voting to approve the measure.

The legislation aims to address challenges that Shell faced in securing air permits for exploratory drilling projects off the coast of Alaska. It also marks the latest effort by Republicans to expand or expedite offshore oil production.

The bill was approved by the House Energy and Commerce Committee by a vote of 34 to 14, with the majority of Democrats voting against the measure. Democrats said the bill would strip the Environmental Protection Agency of the ability to ensure clean-air standards would be met.

Thursday's committee vote clears the way for a vote on the floor of the House. While the bill would have a decent chance of passing the House, its fate in the Democrat-controlled Senate would be much more uncertain.

The legislation, introduced by Rep. Cory Gardner (R., Colo.), imposes a six-month deadline on the EPA to either approve or deny clean-air permits being sought. It also forces opponents to object to proposed drilling projects in federal court.

Unlike drilling projects in parts of the Gulf of Mexico, where the Interior Department is responsible for granting air permits, Arctic projects require approval from the EPA.

The EPA's process for approving Clean Air Act permits for offshore drilling came into focus after Shell struggled to secure clean-air permits for drilling projects in the Beaufort and Chukchi seas off Alaska. Shell has spent about $3.5 billion to explore and prepare for those projects, but legal challenges and regulatory hurdles have prevented the company from obtaining necessary approvals.

"It's time to either give the permits now or stop altogether," said Rep. Fred Upton (R., Mich.), chairman of the energy committee.

In May, the EPA's assistant administrator for air and radiation, Gina McCarthy, said the agency was "very close" to issuing three permits to Shell.

No exploratory drilling is currently being done off the coast of Alaska, although there are existing wells producing oil.

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

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OGX Briefs on Issuance of $2.563B Senior Unsecured Notes

- OGX Briefs on Issuance of $2.563B Senior Unsecured Notes

Friday, May 27, 2011
OGX S.A.

OGX in compliance with the Instruction of Comissão de Valores Mobiliários (CVM) announced the issuance of Senior Unsecured Notes totaling US $2.563 billion. The Notes issued on May 26, 2011 are due and payable by the Company on June 1, 2018 and will accrue interest at rate of 8.5% per annum, payable semi-annually, in June and December.

The Notes will be offered to qualified institutional buyers (QIBs), resident and domiciled in the United States, in accordance with the provisions of "Rule 144A" of the Securities Act of 1933, as amended, and in other countries except the United States and Brazil, based on "Regulation S".

When added to OGX’s current cash position of approximately US $2.5 billion (as of March 31, 2011), the net proceeds from the issuance Notes provide a liquidity of approximately US $5.063 billion, at a level which is sufficient for OGX to support the exploratory campaign and the production development of the discoveries made until the Company becomes self-funded by its own cash flow generation.

"This funding provides the necessary capital for the development of OGX's sizable discoveries that were made in an unprecedented time frame for the oil and gas sector. OGX now has the natural, financial, human and physical resources to implement its business plan," declared Paulo Mendonça, General Executive Officer and Exploration Officer for OGX.

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