Oil falls 60% in '08

Oil slid below $37 a barrel on Wednesday, heading for a fall of 60% in 2008 as the global economic slowdown bit deep into energy demand.

Crude oil hit an all-time high of more than $147 in July but prices have collapsed in the last six months as the credit crisis has pushed the industrialized world into recession. Dismal data from the United States on Tuesday added to pessimism that oil demand will suffer further in 2009, countering any support from Middle East tensions and hopes for another Saudi output cut. Analysts forecast an average of $49 a barrel for U.S. crude in the first quarter, and an average of $58.48 for next year, down $14 from their previous forecasts, the latest Reuters poll showed.U.S. crude oil futures for February dropped to a low of $36.94 per barrel, down $2.09, before recovering slightly. By 6:30 ET, the contract was at $37.53, down $150.

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Russia set to cut Ukraine gas flows

Russia was preparing to turn off gas deliveries to neighbouring Ukraine today, raising the spectre of disruptions to EU supplies, after contract talks for 2009 broke down.

European states are anxious to avoid a repeat of what happened in January 2006 when, during a similar row, Moscow cut off supplies to Ukraine, causing a fall in gas supplies passing via Ukraine to the rest of Europe. Moscow says it will honour its contracts to supply European customers with gas, and these have enough reserves to manage without Russian supplies for days, but not weeks.

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Sonterra tests Matagorda wells

HOUSTON: Sonterra Resources and STO Operating Co., a subsidiary of South Texas Oil Co., have completed and tested the State Tract 127-1 Unit Well in Matagorda Bay offshore Texas, and plans to bring it on line in the Nodosaria-1 formation at 11,700 feet (3,556 m) by the end of January.

The well reached a total depth of 12,464 feet (3,799 m) in August 2008. Well log analysis indicated multiple oil and gas pay zones in the Bolmex and Nodosaria-1 formations between 8,500 feet (2,591 m) and 11,700 feet (3,556 m).Sonterra Resources' Matagorda Bay State Tract 150-1 ST No. 1 well, a sidetrack development well, has reached total depth of 10,246 feet (3,122 m) and been cased and cemented. Well log analysis indicates multiple gas and condensate pay zones in the Bolmex formation at depths between 9,300 feet (2,834 m) and 10,000 feet (3,048 m). The well tested 785 Mcf/d of gas, 120 b/d of condensate and 67 b/d of completion fluid water. Sonterra Resources expects to bring the well on line in early January at 9,950 feet (3,032 m).

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TOP Ships Announces Termination of Interest Rate Derivative Contract

TOP Ships Inc. announced yesterday that it has entered into a termination agreement in respect of an interest rate derivative contract for a termination payment of $5.0 million.

The Company had entered into this derivative contract in November 2007, under which the Company has received an upfront payment of $8.5 million and would pay five annual interest payments on a notional amount of $85.0 million. The counterparty's assets and liabilities have been under bankruptcy administration since September 15, 2008. TOP Ships Inc., formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and drybulk transportation services.

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Indian Government tightens coastline surveillance

Mumbai: India’s The Union Ministry of Shipping plans to develop a low cost satellite to monitor ships and vessels operating in Indian coastal waters. The move comes as the country’s financial capital is recovering from the horrific terrorist attacks by individuals said to have arrived in the country via sea.

According to a report by the Business Standard, the ministry's department is in talks with Indian Space Research Organisation (ISRO) to develop the satellite, which would watch vessel movements, especially tracking small and fishing vessels that operate in the Indian waters. The ministry is also said to be planning to create a new commando force exclusively for ports that would respond to any maritime threats.

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Enterprise repairs High Island Offshore System

Houston: Enterprise Products Partners has completed repairs to its High Island Offshore System pipeline in the Gulf of Mexico after the pipeline was severed during Hurricane Ike in September.

Federal regulators have approved Enterprise's inspection and start-up procedures and authorized Enterprise to resume full service on the pipeline. The 42-inch diameter section of pipe damaged during the storm was located in around 130 feet (39.6 m) of water. Now repaired, the pipeline system has the capacity to transport up to 1.8 Bcf/d of natural gas. The High Island Offshore System consists of a 291-mile (468.3-km) pipeline system that transports natural gas from fields in the Galveston, Garden Banks, West Cameron, High Island and East Breaks areas of the Gulf of Mexico to various third-party pipeline systems. The system also includes eight pipeline junction and service platforms. Enterprise President and CEO Michael A. Creel said, "Customers and investors alike can feel confident that our personnel expedited the repair process and managed the asset following the storm as professionally and efficiently as possible”.

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MPA defers rise in port dues

The Maritime Port Authority of Singapore has announced plans to delay the scheduled increase in port dues on old bunker tankers to help shipping companies through the current financial crisis.

The deferment will help more than 100 bunker tankers MPA said. As part of an effort to grow a younger, more efficient and greener fleet of tankers in Singapore's port, in March this year, MPA intended to introduce a 5% increase in the duties on tankers that have been in operation for 16 years or more to 15% - originally intended to take effect from 1 Jan 2009. This duty increase is aimed at discouraging the operation of older tankers on the premise that they are a higher risk to the marine environment and also less efficient. This has now been deferred a year to Jan 1, 2010. 'We hope this deferment will contribute towards helping the industry adjust to the changing business climate,' MPA's group director (Hub Port) Captain M Segar said.

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