India aims to launch its next auction of oil and gas assets in the March quarter, Oil Minster Murli Deora said, and hopes falling exploration costs will trigger stronger interest from overseas outfits.
Upstream regulator V.K. Sibal said the next bidding round, India's eigth under its New Exploration and Licencing Policy, would be the largest ever, and added the collapse in the price of crude had had a knock on effect on the cost of exploration. "It is a good opportunity for them (bidders) to get huge acreage at low, cheap prices in a competitive environment," he Sibal said. BP's exploration director for South Asia, Jonathan Evans, said seismic rates had almost halved over the last six months to $5000 per square kilometre, but rig rates were yet to fall. "We have started seeing seismic acquisition rates going down but rig rates have not changed. Seismic contracts are short-term and rig contracts are for two to three years." An official at Reliance Industries , India's leading private sector exploration and refining company, said rig rates were expected to drop next year in line with the fall in crude. Overseas bidders were lukewarm to India's previous auction round, which closed in June when global crude prices were over $100 a barrel. But crude prices have since plummeted to under $40 a barrel. India received bids for 45 of 57 blocks in the previous round but signed contracts for just 41 as the federal cabinet did not allow the award of one block to lone bidder Cairn Energy while three winners have sought more time. "Contracts for the two blocks of GeoGlobal Resources and one awarded to Interlink will not be signed today. They have sought more time," said S.K. Srivastava, deputy director general at the upstream regulator, the Directorate General of Hydrocarbons. At home, falling crude prices have pressured Oil and Natural Gas Corporation's margins, and the government has responded with the promise of a new mechanism to ease the burden from compensating state-run fuel retailers by selling them cheap crude. "Oil prices have gone down so much that ability of oil upstream firms (to offer discounted crude) envisaged in June has gone down, so the oil companies asked us to look into it ... the matter is under consideration," said Oil Secretary R. S. Pandey. ONGC chairman R.S. Sharma said crude prices of $75 a barrel were reasonable levels at which upstream companies could keep investing and Ongc would review its spending plans if crude stays at current rates for a prolonged period, reported Reuters.
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Tuesday, December 23, 2008
HPH and NYK enter share swap agreement for European terminals
Tokyo: Hutchison Port Holdings (HPH) and Nippon Yusen Kabushiki Kaisha (NYK) have signed a share-swapping agreement through which HPH will become the majority shareholder of Amsterdam-based Ceres Container Terminals Europe in the Netherlands.
In exchange for the majority stake in CTE, NYK will have a minority stake in Europe Container Terminals in Rotterdam. Commenting on the agreement, John Meredith, HPH group md, said, “The investment in CTE will help strengthen HPH’s presence in Northern Europe through the addition of extra container-handling capacity. CTE’s strategic location allows it to attract deep-sea and feeder traffic as well as inland traffic.”NYK chairman Takao Kusakari said, “This agreement gives us the opportunity to enhance our cooperation with HPH while further tapping into HPH’s network of Northern European ports.” CTE is a holding company of two wholly owned subsidiaries, Ceres Paragon Terminals (CPT) and Ceres Amsterdam Marine Terminals (CAMT). CPT is made up of three berths – one 400-by-57-mtr indented berth and two conventional berths with a combined length of 615 mtrs and a depth alongside of 15 mtrs. CPT also has an excellent on-dock rail facility with three 700-mtr-long tracks that reach out towards the edge of the quay deck for the fast and efficient handling of containers. CAMT is a Ro-Ro terminal that performs stevedoring activities for automobile carriers and has a number of warehouses for the storage of cocoa.
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In exchange for the majority stake in CTE, NYK will have a minority stake in Europe Container Terminals in Rotterdam. Commenting on the agreement, John Meredith, HPH group md, said, “The investment in CTE will help strengthen HPH’s presence in Northern Europe through the addition of extra container-handling capacity. CTE’s strategic location allows it to attract deep-sea and feeder traffic as well as inland traffic.”NYK chairman Takao Kusakari said, “This agreement gives us the opportunity to enhance our cooperation with HPH while further tapping into HPH’s network of Northern European ports.” CTE is a holding company of two wholly owned subsidiaries, Ceres Paragon Terminals (CPT) and Ceres Amsterdam Marine Terminals (CAMT). CPT is made up of three berths – one 400-by-57-mtr indented berth and two conventional berths with a combined length of 615 mtrs and a depth alongside of 15 mtrs. CPT also has an excellent on-dock rail facility with three 700-mtr-long tracks that reach out towards the edge of the quay deck for the fast and efficient handling of containers. CAMT is a Ro-Ro terminal that performs stevedoring activities for automobile carriers and has a number of warehouses for the storage of cocoa.
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Dry bulk market loses steam
After a brief rally, the past three sessions of the Dry Bulk Index (BDI), which tracks rates for shipping commodities, like iron ore and coal, turned back to negative.
Monday’s session, in reality followed the trend set at the end of the past week, with the BDI shedding 17 points, ending down at 801 points. It seems that the rebound of the past 10 days proved short-lived and the market has to endure freight levels close to all-time lows for quite some time. Dahlman Rose’s morning report indicated that it all comes down to steel demand, which in turn directly affects commodities demand like iron ore. According to steel production data for November, “global production stood at 89 million tons, which represents a 10 million ton sequential decrease, and a 30 million ton decrease from the peak month of July” said Dahlman. As a result, the 23 capesize iron ore cargoes fixed for China delivery last week (versus 22 cargoes the week before), don’t seem enough to support current freight levels, with both Australia and Brazil iron ore export activity slowing down considerably. This was reflected on Monday’s Capesize Index (BCI), which was down by a significant 50 points, at 1373, losing some of the previous gains. The Panamax index kept its momentum, being the only one recording gains during yesterday’s session, ending at 583 points, up by 8. Commenting on the BCI’s trend, Barry Rogliano Salles (BRS) in its latest weekly report said that “there are now fears that rates could drift as operators head into Christmas and the holiday period. Despite this, there was some period business to report: two modern 170,000 tonners were fixed for approximately one year at US$20,000/day and US$21,000/day respectively, with prompt delivery between December – February”. On a similar pace, explaining the recent upsurge of the panamax market, BRS said that “the real situation is that there is an increase in activity prior to the Christmas break, and we still have yet to see a change in the underlying fundamentals”.
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Monday’s session, in reality followed the trend set at the end of the past week, with the BDI shedding 17 points, ending down at 801 points. It seems that the rebound of the past 10 days proved short-lived and the market has to endure freight levels close to all-time lows for quite some time. Dahlman Rose’s morning report indicated that it all comes down to steel demand, which in turn directly affects commodities demand like iron ore. According to steel production data for November, “global production stood at 89 million tons, which represents a 10 million ton sequential decrease, and a 30 million ton decrease from the peak month of July” said Dahlman. As a result, the 23 capesize iron ore cargoes fixed for China delivery last week (versus 22 cargoes the week before), don’t seem enough to support current freight levels, with both Australia and Brazil iron ore export activity slowing down considerably. This was reflected on Monday’s Capesize Index (BCI), which was down by a significant 50 points, at 1373, losing some of the previous gains. The Panamax index kept its momentum, being the only one recording gains during yesterday’s session, ending at 583 points, up by 8. Commenting on the BCI’s trend, Barry Rogliano Salles (BRS) in its latest weekly report said that “there are now fears that rates could drift as operators head into Christmas and the holiday period. Despite this, there was some period business to report: two modern 170,000 tonners were fixed for approximately one year at US$20,000/day and US$21,000/day respectively, with prompt delivery between December – February”. On a similar pace, explaining the recent upsurge of the panamax market, BRS said that “the real situation is that there is an increase in activity prior to the Christmas break, and we still have yet to see a change in the underlying fundamentals”.
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Moscow oversees signing of 'gas Opec'
Russia will oversee the creation of a more formal group of gas exporting states, further unsettling energy consumers worried by Moscow's clash with Kiev over gas and by its closer ties with oil body Opec.
Russia will host a meeting of energy ministers from at least 11 gas exporting countries such as Iran, Qatar and Venezuela -- members of an informal club called the Gas Exporting Countries Forum (GECF) that Moscow has sought to strengthen. Although Russia said this so-called "gas Opec" is not meant to emulate Opec's policies in setting output quotas, tomorrow's gathering will be closely watched by consuming nations. Russian officials said the members would agree on a charter that would make GECF a more formal organisation with a headquarters in St Petersburg, although the body would keep the same name. Russia's Prime Minister Vladimir Putin will attend the forum while President Dmitry Medvedev will host a dinner at the Kremlin tomorrow evening. The global credit crisis has heightened Russia's dependence on revenues from oil and gas as the rouble slides and the government spends its cash pile to support the economy, so Moscow wants to increase its political clout on energy markets. Medvedev said earlier this month Russia is considering all options including joining Opec to defend its national interests, although ir offered no cuts or special deals to Opec at a meeting in Algeria last week. The forum's country members include Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Trinidad and Tobago, UAE, Qatar, Russia, Venezuela and two observer members -- Equatorial Guinea and Norway.
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Russia will host a meeting of energy ministers from at least 11 gas exporting countries such as Iran, Qatar and Venezuela -- members of an informal club called the Gas Exporting Countries Forum (GECF) that Moscow has sought to strengthen. Although Russia said this so-called "gas Opec" is not meant to emulate Opec's policies in setting output quotas, tomorrow's gathering will be closely watched by consuming nations. Russian officials said the members would agree on a charter that would make GECF a more formal organisation with a headquarters in St Petersburg, although the body would keep the same name. Russia's Prime Minister Vladimir Putin will attend the forum while President Dmitry Medvedev will host a dinner at the Kremlin tomorrow evening. The global credit crisis has heightened Russia's dependence on revenues from oil and gas as the rouble slides and the government spends its cash pile to support the economy, so Moscow wants to increase its political clout on energy markets. Medvedev said earlier this month Russia is considering all options including joining Opec to defend its national interests, although ir offered no cuts or special deals to Opec at a meeting in Algeria last week. The forum's country members include Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Trinidad and Tobago, UAE, Qatar, Russia, Venezuela and two observer members -- Equatorial Guinea and Norway.
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