Oil India Plans to Invest $4B in Five Years to Raise Output

- Oil India Plans to Invest $4B in Five Years to Raise Output

Tuesday, September 13, 2011
Dow Jones Newswires
NEW DELHI
by Rakesh Sharma

Oil India plans to raise its capital expenditure 73% to about INR190 billion ($4 billion) in the five years starting April 2012 as the state-run explorer seeks to sharply raise oil and gas production, its finance director said.

"We are stepping up exploration and development of our blocks in India and overseas," T.K. Ananth Kumar told Dow Jones Newswires late Monday. "We are also seeking producing assets, so we have raised our capital expenditure plans."

The company's capital expenditure in the five years ending March 2012 is likely to be about INR110 billion. It accounted for a 10th of India's total oil output of 754,000 barrels a day and 4.5% of total gas output of 52.22 billion cubic meters in the last financial year. Kumar didn't say how much the company is aiming to produce.

Oil India will mainly fund its investments through internal accruals, but may raise debt, he said.

The company, which was listed on local stock exchanges in September 2009, has cash reserves of INR130 billion, he added.

Oil India and its bigger state-run rival Oil & Natural Gas Corp. need to boost capital spending to bring new fields into production amid falling output at their aging fields. India, which imports about four-fifths of its crude oil requirements, is encouraging explorers to ramp up exploration and production to meet surging demand for energy in the world's second-fastest growing major economy.

"We have been witnessing an increase in capex by oil and gas explorers in India for the past several years as energy security is a focus. This sort of high capex is quite achievable by Oil India considering they have more than INR120 billion of cash and have been generating a cash flow of about INR40 billion per year," Alok Deshpande, analyst with Elara Securities Ltd., said.

Oil India is seeking to acquire producing oil and gas assets in Australia, Russia, Kazakhstan and Canada, Kumar said.

"We have shifted our focus to acquiring producing assets, rather than going for exploration blocks, as we already have our hands full with existing exploratory blocks. Also, we have enough cash in hand and that would be the best use of it," Kumar said.

Oil India is in talks with French explorer Etablissements Maurel et Prom to buy a stake in its Gabon assets and plans to close the deal by March, Mint newspaper reported Monday. Kumar declined to comment on the report.

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

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Honda To Invest $800 Million In New Automobile Plant In Mexico

- Honda To Invest $800 Million In New Automobile Plant In Mexico



Aug 12, 2011

Honda de Mexico (NYSE:HMC), Honda's production and sales company in Mexico, announced that it will build an automobile plant for production of fuel-efficient subcompact vehicles for the Mexican and North American markets.

Honda will invest approximately $800 million to build the plant, which is scheduled to begin operation in 2014. The company is expected to hire 3,200 associates at its full annual capacity of 200,000 units; the plant will boost Honda's capital investment in its North American operations to nearly $21 billion.

Honda Motor (NYSE:HMC) has a potential upside of 37.5% based on a current price of $33.59 and an average consensus analyst price target of $46.2.

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Venezuela PdVSA to Invest $2B Into Tricolor Project

- Venezuela PdVSA to Invest $2B Into Tricolor Project

Friday, July 29, 2011
Dow Jones Newswires
CARACAS
by Kejal Vyas & Ernesto J. Tovar

Venezuelan oil giant Petroleos de Venezuela, or PdVSA, will invest $2 billion into its Tricolor Project in the Orinoco heavy oil belt this year, company officials said Thursday. The money will go toward raising output from 23,000 barrels a day to 146,000 barrels daily in the Junin, Carabobo and Ayacucho blocs by year's end, PdVSA Chief Rafael Ramirez and company Vice President Eulogio del Pino told reporters.

South America's largest oil producer is expected to invest around $18 billion this year and is counting on major advances in its Orinoco projects, where much money will be needed to convert the region's tar-like heavy oil into a usable and exportable commodity.

President Hugo Chavez relies on revenue from vast oil reserves to fund the major social programs that have supported his popularity, especially among the country's poor.

Still, Venezuela has struggled to increase output during his 12 years in office, which critics have partly attributed to insufficient investment into the sector. According to its audited 2010 annual report published earlier this week, PdVSA invested just over $13 billion into various projects last year.

The company aims to raise it's total crude production levels to 4 million barrels daily by 2015, from around 2.7 million.

In recent months, PdVSA has been on the receiving end of some good news as the International Energy Agency revised its accounting method for Venezuelan oil production, leading to an increase in the agency's estimates. Also, earlier this month the Organization of Petroleum Exporting Countries reported that Venezuela's proven crude-oil reserves surpassed those of Saudi Arabia in 2010, making the South American country the holder of the world's largest oil reserves.

Still, questions remain over how and when the country will be able to secure the nearly $80 billion it expects to need for developing the Orinoco projects.

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

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Ford to Invest $1 billion In Second Car Plant in India

- Ford to Invest $1 billion In Second Car Plant in India



Jul 27, 2011

Ford is planning to build a second car plant in India. According to a person briefed in the matter, Ford will invest $1 billion in the plant that will employ 5,000 people and begin producing cars in 2014.

The company said in the e-mailed reply to questions, "Ford continues to pursue an aggressive growth strategy in India to bring world class vehicles. As part of its plan to introduce eight new products by the middle of the decade Ford is significantly expanding its capacities in its existing facility in Tamil Nadu as well as exploring other options to meet the growing demand of consumers in India and export markets across the world."

Ford Motor (NYSE:F) has a potential upside of 59.3% based on a current price of $12.35 and an average consensus analyst price target of $19.67.

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Russia and Total to Invest $38B in Arctic Gas Production

- Russia and Total to Invest $38B in Arctic Gas Production

Wednesday, July 20, 2011
Deutsche Presse-Agentur (dpa)

Russia and the French energy giant Total will jointly invest 38 billion dollars in a liquefied natural gas project in the Arctic, Prime Minister Vladimir Putin said Wednesday.

The plan calls for the construction of an Arctic Sea terminal in Russia's Yamal Peninsula which would, once completed in 2018, allow France to receive annually 15.5 million tonnes of liquefied gas by tanker, Interfax reported.

"Thanks to the project Russia's presence in the market for liquefied natural gas (LNG) will expand," said Putin at a Moscow press conference.

Russia's government had previously approved Total's purchase of a 20.5 percent stake in Yamal SPG.

Yamal SPG is owned by Russia's largest private gas producer, Novatek. Total in April purchased a 12 percent stake of Novatek.

Novatek holds a production license to some of the richest gas fields in North West Siberia. The region according to estimates contains some 1.3 trillion cubic meters of gas and nearly 52 million tons of gas condensate.

The Yamal peninsula is a remote Arctic territory of permafrost, tundra, swamp and pine forest. Its remoteness and harsh conditions makes energy development costly.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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Taiwan's Oil Company to Invest $1.18B A Year

- Taiwan's Oil Company to Invest $1.18B A Year

Tuesday, July 19, 2011
Dow Jones Newswires
TAIPEI

Taiwan's state-run Taiwan's state-owned CPC, said Tuesday it will invest NT$34 billion ($1.18 billion) annually in the next five years to acquire and explore overseas energy resources.

CPC plans to spend NT$30 billion a year on acquiring oil and gas fields mainly in Africa and the Asia Pacific region while the rest will go on oil exploration, it said.

As a result, the company expects to be able to boost its daily crude output from 12,000 barrels daily at present to 27,000 barrels a day from 2012, a company official said.

The company is in talks to buy oil and gas fields in Africa and Australia, with expectations that deals can be concluded by late this year or early next year, she said.

CPC started exploring oil reserves abroad in the 1970s and its latest venture in Chad is estimated to have at least 100 million barrels in reserves.

CPC supplies about 700,000 barrels of crude oil a day or about 60% of Taiwan's daily usage, of which only 1% is produced by itself and the rest is imported.

Taiwan doesn't have any oil resources of its own and is dependent on imports mainly from the Middle East and Africa.

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Crosstex Energy, Apache to Jointly Invest in Permian Basin Facility

- Crosstex Energy, Apache to Jointly Invest in Permian Basin Facility

Tuesday, July 12, 2011
The Crosstex Energy Cos

The Crosstex Energy companies announced a partnership with Apache to jointly invest $85 million in a new-build natural gas processing facility in the Permian Basin in West Texas. The initial phase of the project will provide interim and long-term processing solutions, compression and residue gas takeaway for Apache's Deadwood development in Glasscock County. Crosstex and Apache will fund the processing project equally and each hold a 50 percent working interest. Separately, Crosstex will buy and upgrade a nearby rail terminal to provide transportation of natural gas liquids (NGL) to its Eunice fractionation facility in southern Louisiana.

Initially, Crosstex and Apache will install a refrigeration plant with a capacity of 20 million cubic feet (MMcf) per day as an interim gas processing solution, compression and takeaway, all of which are expected to be operational by the fourth-quarter 2011. A cryogenic gas processing facility with a capacity of 50 MMcf per day is expected to be operational in the second-quarter 2012. Crosstex will manage construction and operate the facilities.

"Crosstex is excited to embark on this joint interest project with Apache, a premier independent energy company that has operated in the Permian Basin in West Texas for nearly 20 years and is one of the largest producers in the region with an active drilling program. We are extremely pleased Crosstex can provide Apache with creative midstream solutions for their gas and NGL products," said Barry E. Davis, Crosstex President and Chief Executive Officer. "We look forward to continuing our long-term working relationship with Apache.

"This transaction provides Crosstex with a significant footprint for future growth in the Permian Basin area where we will pursue additional business opportunities," Davis added.

Additionally, Crosstex will purchase and upgrade the abandoned Patriot Fractionator in Midland County. The facility will be upgraded and refurbished to initially serve as a rail terminal for Apache raw make NGL. Crosstex will transport NGL via rail to its Eunice fractionation facility in south central Louisiana for fractionation and sales. Product will be delivered to the Mesquite terminal via existing NGL pipelines or by trucks. Crosstex will invest $12 million in the project, which is scheduled to be completed and operational in the fourth-quarter 2011. This facility will provide NGL takeaway for the constrained Permian infrastructure until a long term pipeline solution becomes available.

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TNK-BP to Invest $1.8B in Ukraine Shale Gas by 2017-18

- TNK-BP to Invest $1.8B in Ukraine Shale Gas by 2017-18

Friday, June 24, 2011
Dow Jones Newswires
MOSCOW
by Jacob Gronholt-Pedersen

BP's Russian joint venture TNK-BP Ltd. plans to invest $1.8 billion in unconventional gas projects in Ukraine over the next six to seven years, the company's vice president for gas and power supply Mikhail Slobodin said.

Investing $1.8 billion into six Ukrainian shale deposits until 2017 or 2018 will allow TNK-BP to produce up to 3 billion cubic meters of gas a year, with initial production lower than that, Slobodin told Dow Jones Newswires.

Unconventional gas sources such as shale gas, which has shaken up the U.S. gas market in the past two years, have caught the interest of major players on the European market. U.S. oil major Chevron has recently acquired shale gas acreage in Poland and Romania.

"Even though they had success with shale gas in the United States, it doesn't mean we will have the same success in Ukraine or Poland," Slobodin said. "No-one really knows."

Ukraine's eastern Donetsk region may hold considerable shale deposits, an unconventional source of natural gas produced by a method known as hydraulic fracturing.

TNK-BP, a joint venture between U.K. oil major BP and a group of Soviet-born billionaire investors, is targeting six licenses containing unconventional tight gas in Ukraine.

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India's ONGC to Invest $7.7B in Gas Field

- India's ONGC to Invest $7.7B in Gas Field

Tuesday, June 21, 2011
Deutsche Presse-Agentur (dpa)

India's state-run Oil and Natural Gas Corporation plans to invest 7.7 billion dollars to develop one of the country's largest gas fields off the eastern coast, officials said Tuesday.

ONGC was planning to drill eight additional wells in the block in the Krishna-Godavari (KG) basin and had sought permission from the Directorate General of Hydrocarbons, a company spokesperson said.

"A total life-cycle cost as per the proposal for Declaration of Commerciality (DoC) is of the order of 7.7 billion dollars," the official said.

The gas field could produce upto 30 million cubic meters a day in five years, according to the report in the Economic Times daily.

The oil major is also looking for tie-ups with international partners to maximize the output from the deep-sea field.

The KG basin is India's most prolific gas basin and home to some of India's biggest natural gas discoveries in recent years.

India depends on imports for about 70 percent of its oil and gas needs.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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ONGC, GAIL, Petronet May Invest INR155B in Russia Gas Project - Report

- ONGC, GAIL, Petronet May Invest INR155B in Russia Gas Project - Report

Monday, May 30, 2011
Dow Jones Newswires

Oil & Natural Gas Corp. (ONGC), GAIL and Petronet LNG may form a consortium to invest INR155 billion for a 15% stake in a liquefied natural gas project in Russia, the Hindustan Times reported Friday.

The consortium may buy a stake in the $30 billion LNG project of Russia's biggest independent natural gas producer, OAO Novatek (NVTK.RS), in the Yamal peninsula, the report said, citing an unidentified executive at one of the Indian companies.

A non-binding indicative bid is underway and the stake would be split between ONGC Videsh Ltd., GAIL and Petronet as 7.5%, 5% and 2.5%, respectively, the report said.

ONGC Videsh is the overseas investment arm of state-run explorer Oil & Natural Gas.

"We are not aware of any such bid," Petronet Chief Executive A.K. Balyan told Dow Jones Newswires. ONGC Chairman A.K. Hazarika declined to comment while GAIL's chairman wasn't immediately reachable for comment.

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Indonesia Official: BP to Invest $10B More over 10 Years

- Indonesia Official: BP to Invest $10B More over 10 Years

Friday, May 27, 2011
Dow Jones Newswires
by Joko Hariyanto

BP is committed to investing $10 billion more in Indonesia over the next 10 years, Gita Wirjawan, Indonesia's investment agency chief, said Friday.

"They will soon start exploration in Kalimantan and further develop the Tangguh project in Papua," Wirjawan told reporters.

BP Chief Executive Robert Dudley confirmed the commitment after a meeting with Indonesian President Susilo Bambang Yudhoyono.

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Petrobras to Invest $27B in Brazil Exploration through 2014

- Petrobras to Invest $27B in Brazil Exploration through 2014

Thursday, May 26, 2011
Dow Jones Newswires
by Jeff Fick

Petrobras will invest $27 billion on domestic exploration through 2014, the company's area manager for exploration and production said Thursday.

"In the near future, we will drill 573 wells," Petrobras Hugo Repsold said during a presentation at the Latin Oil Week conference. The wells will be primarily focused in provinces in the southeast part of Brazil, Repsold said.

Petrobras could boost crude oil output to 3 million barrels a day by 2014, with natural gas production of about 75 million cubic meters a day as new projects come on line, Repsold said.

The federal oil company is still evaluating its full five-year investment plan that will cover the 2011-2015 period, which is expected to include the first investments in areas that were part of an oil-for-shares swap with the government last year. But the company's board of directors earlier this month asked that the investment plan be reviewed, causing a delay in its release.

Petrobras' previous investment plan, covering the 2010-2014 period, envisioned total investments of $224 billion.

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SunPower Receives Loan Guarantee From The Department of Energy

SunPower Receives Loan Guarantee From The Department of Energy



SunPower Corp (NASDAQ:SPWRA) received a conditional commitment Tuesday from the U.S. Department of Energy for a $1.187 billion loan guarantee to finance its 250-megawatt solar power plant in central California, according to a Reuters report.

The company's California Valley Solar Ranch in San Luis Obispo County will generate enough electricity to power 100,000 homes and will be one of the largest photovoltaic solar power plants in the world.

SunPower will design and build, as well as initially operate and maintain the solar plant, which it plans to then sell to NRG Energy (NYSE:NRG).

NRG Solar, a subsidiary of NRG Energy, will assume all ownership and financing responsibilities for the project, subject to certain conditions.

Construction is expected to begin in the second half of 2011, contingent on permitting and financing, with some of the project beginning operations by the end of this year, and the rest coming on line in 2012 and 2013.

SunPower is trading down 0.73% to $16.27 per share.

Blackstone, Alta Invest up to $1B to Jointly Develop N. America Assets

Blackstone, Alta Invest up to $1B to Jointly Develop N. America Assets

Tuesday, April 12, 2011
The Blackstone Group

Alta and Blackstone announced the formation of Alta Energy Partners, and a concurrent commitment to invest up to $1 billion via this entity to acquire and develop unconventional oil and gas assets in North America.

Founded in 1999 by Joseph G. Greenberg, its President and CEO, Alta Resources has been a leader in the development of shale gas assets from the Fayetteville shale basin in Arkansas to the Marcellus shale field in Pennsylvania. George P. Mitchell, a partner in Alta Resources, is widely regarded as the father of shale gas for his pioneering role in developing the Barnett shale in Texas.

Alta Resources and Blackstone have worked together recently to evaluate joint investments in unconventional oil & gas assets and have identified a number of potentially attractive investment opportunities to lease or acquire acreage in emerging and developed shale basins in North America.

Mr. Greenberg said, "I am delighted that Blackstone has chosen to partner with Alta Resources. Millions of acres are currently leased for North American shale oil and gas, requiring extraordinary amounts of capital to develop. We believe the combination of Alta's experienced shale gas technical team with Blackstone's strong capital base, network, and industry knowledge will allow Alta Energy Partners to stand apart as the partner of choice for companies seeking joint ventures or exits for their shale oil and gas assets."

David I. Foley, a Senior Managing Director at Blackstone and head of Blackstone's private equity investment activities in the energy and natural resources sector, commented, "Identifying and partnering with exceptional management talent is a fundamental element of Blackstone's investment philosophy and we are very pleased to have the opportunity to back Joe Greenberg and his team in this investment. This management team has worked together successfully for a number of years, has very strong geological and technical skills and a track record of generating outstanding returns for their investors."

Oil Companies to Invest $1.38B in Ecuador

Oil Companies to Invest $1.38B in Ecuador

Friday, April 08, 2011
Dow Jones Newswires

by  Mercedes Alvaro

Oil companies and consortiums operating in Ecuador under service provider contracts will invest $1.38 billion in the Andean country during the 2011 to 2025 period, the Ministry of Nonrenewable Natural Resources said Friday.

Companies investing in the oil sector include China's Andes Petroleum and PetroOriental, Italy's Eni, Spain's Repsol, and Chilean state oil and gas company Empresa Nacional del Petroleo, or Enap.

The investments will be made in 14 oil fields, with about $1.1 billion going into production while the rest will be invested in exploration. On its website, the ministry said of the total figure, 87% will be invested up to 2014.

For this year oil companies are seen investing $468 million, of which $409 million will be invested in production activities and $59 million in exploration.

In January Ecuador's government concluded almost three years of negotiations aimed at gaining more control over its natural resources and increasing its oil revenue by replacing production-sharing deals with services contracts.

The services contracts turn the companies into service providers for the exploration and extraction of hydrocarbons. Companies will receive a fee rather than sharing profits.

Oiltanking Partners Files For $200 Million IPO (OTLP)

Oiltanking Partners Files For $200 Million IPO (OTLP)



Oiltanking Partners LP plans to offer up to $200 million in common units in an initial public offering.

The limited partnership was formed in March, and will serve as a growth vehicle in the U.S. for the Hamburg, Germany based Oiltanking GmbH, the indirect owner of the company's general partner, according to the company's filing with the SEC.

Oiltanking GmbH is the world's second largest independent storage provider for crude, refined products, and liquid chemicals and gases. Oiltanking Partners has terminating, storage, and pipeline operations in Texas and the upper Gulf Coast.

Oiltanking Partners plans to apply to list on the New York Stock Exchange under the symbol OTLP.

Ford's March Sales Outpace GM's (F,GM)

Ford's March Sales Outpace GM's (F,GM)



Ford Motor Co (NYSE:F) posted a 19% increase in vehicle sales for the month of March, driven by strong growth for its Fiesta, Fusion, Escape, and Explorer, as well as the F-Series, which saw year-over-year sales growth of 25%.

Ford's monthly total of 212,777 surpassed that of General Motors (NYSE:GM), which reported selling 206,621 vehicles in the month, though GM outsold Ford for the quarter, 592,545 to 496,720.

Ken Czubay, vice president of Ford U.S. marketing, sales and service, said, "With gasoline prices eclipsing $3.50 a gallon, consumers are placing a high priority on fuel efficiency in every size and kind of vehicle. Customers are rewarding Ford for our investment in new products as well as more efficient engines and transmissions, which save them money at the pump whether they drive Fiestas or F-Series trucks."