Venezuela, Iran to Hold Talks; Seek to Boost Ties Within OPEC

- Venezuela, Iran to Hold Talks; Seek to Boost Ties Within OPEC

Wednesday, August 17, 2011
Dow Jones Newswires
CARACAS
by Kejal Vyas

Venezuela will host a summit for bilateral talks with Iran next month as the two member states of the Organization of Petroleum Exporting Countries look to strengthen their alliance.

In a statement, the Venezuelan Foreign Ministry said President Hugo Chavez spoke to Iran's President Mahmoud Ahmedinejad to organize the summit and "agreed on the need to boost the levels of coordination within OPEC" in a bid to combat "the adverse effects of the economic crisis faced by the world's dominant powers."

Chavez and Ahmedinejad also spoke on the implications of "imperial aggressions" against countries such as Libya and Syria, the ministry's statement said.

Both Venezuela and Iran are fierce critics of the U.S. and other western nations and have looked to strengthen political and economic ties in recent years.

In June, Iran and Venezuela, both known to be fierce oil-price hawks, worked together to block an OPEC agreement to raise oil output, while opponents, including Saudi Arabia, said they planned to increase production to meet higher demand.

Within Venezuela, Iran is helping with financing and construction of housing units, part of an initiative by Chavez as he prepared to bid for another six-year term in next year's elections.

Earlier this month, the two countries signed a $1 billion deal to build 10,000 houses in the South American country over the next 18 months but they didn't say how much each side would be contributing.

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Philippines Set to Seek Oil in South China Sea

- Philippines Set to Seek Oil in South China Sea

Tuesday, August 02, 2011
Dow Jones Newswires
MANILA

The Philippines plans to auction off areas of the South China Sea for oil exploration despite worsening disputes with China over the territory, an official said Tuesday.

Energy Undersecretary Jose Layug said several foreign firms, including China's state-owned CNOOC, had already expressed interest in drilling in waters off the western Philippine island of Palawan.

The areas set for exploration are far from the disputed Spratly islands and well within the Philippines' 200-nautical-mile exclusive economic zone, he said on the sidelines of an energy conference in Manila.

"These are not disputed areas. The area we are offering for bidding is definitely within the territory of the Republic of the Philippines."

However, China is known to claim most of the South China Sea, including areas the Philippines says are clearly Filipino territory.

Aside from CNOOC, two other Chinese firms are among those interested in contracts to drill in the area, Layug said without naming the other two.

The Philippines is to name the winning bidders next year, Layug said.

He expressed confidence the Chinese wouldn't try to harass Philippine-sanctioned oil exploration vessels there.

"These areas are near Palawan which means they (winning bidders) will have to come to the Philippines to do it," he said.

Tensions have risen in recent months, with countries in the region claiming China has been more aggressive in enforcing its claims on parts of the South China Sea.

China, the Philippines, Vietnam, Malaysia, Brunei and Taiwan have overlapping claims to all or parts of the sea, which is believed to be rich in oil and gas deposits.

Last February, two Chinese vessels allegedly harassed a Filipino-commissioned exploration vessel off Reed Bank, an islet north of the Spratlys.

The Philippines has also accused Chinese forces of shooting at Filipino fishermen and placing markers on some of the islets.

The Reed Bank, which Manila calls "Recto Bank" and is also claimed by China, is 273 kilometers from Palawan.

Philippine officials said Manila had previously authorized drilling in that area without any Chinese opposition.

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Shell Will Seek Kazakhstan Project Deadline Extension - Report

- Shell Will Seek Kazakhstan Project Deadline Extension - Report

Friday, July 01, 2011
Dow Jones Newswires
LONDON
by London Bureau

Shell and its partners are to ask the Kazakh government for an extension to the 2013 deadline for the first oil from their Kashagan field, U.K. newspaper The Daily Telegraph reports Friday, citing a person at an unnamed oil company in the city of Atyrau.

According to the paper, the consortium--which also includes Total, ExxonMobil, Eni and Kazakh state firm NC KazMunaiGas--rejected a plan to meet the deadline by pumping at least 50,000 barrels of oil a day directly onshore, bypassing an unfinished processing plant on an artificial island.

As a result, the consortium now has no choice but to ask for an extension, the newspaper reports, citing the person.

A spokesperson for the North Caspian Operating Co., which operates the project, said the consortium hadn't altered its plans to meet the 2013 target.

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