Opec loses influence in the oil market

The third summit of the Organization of Petroleum Exporting Countries (Opec) is to be held in Riyadh, Saudi Arabia tomorrow.

The summit comes at a critical time; against the backdrop of increasing oil prices and heightened tension in the Gulf region. Oil is likely to break the $100 per barrel mark, over the next few weeks- a price that would further increase the revenues of the producing countries but will also put extra burden on the consuming nation economies. The Opec summit will discuss the price issue and its impact on the world economy and will discover instantly that it has little power to moderate the prices in the international market. The reliable flow of oil from the Gulf region has always been the key factor for a stable oil market and a vital interest for the United States and to the whole world. The increase in oil prices is not linked to a shortage of supplies, but is the direct effect of the stand –off between Iran and the US.
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Expansion through IPO

China's shipbuilders are advancing steadily towards global expansion, with at least seven major shipping companies putting IPO plans in the pipeline.

As the Baltic Dry Index that measures dry bulk shipping rates has more than doubled over the past years, China's shipping industry is approaching an all-time high. China Shipbuilding Industry (CSIC) is one of the key players in taking this initiative. Established in July 1999, the state-owned enterprise is China's largest in design, manufacturing and trading of military and civil ships, marine engineering and marine equipment. CSIC also specializes in investment and capital management and is targeting to raise US$900 million on the Ashare market. In addition, China State Shipbuilding Corporation (CSSC), another state-owned shipbuilder also founded in 1999, is planning to list on the Hong Kong market. Jiangsu Rongsheng Heavy Industries, Sinopacific, Mingde Nantong, Yantai Raffles Shipbuilding and JES International are the other companies to consider selling equity.
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Shell puts Ursa back in action

Shell restarts its Ursa platform in the US Gulf of Mexico after an extended outage for repairs.

Ursa, which feeds into the Mars pipeline system, was designed to produce up to 150,000 barrels of oil per day and 400 million cubic feet of gas per day. Shell is starting to bring the Ursa platform back online. On 3 November, the nearby Mars platform was shut for planned work but its outage was extended after a small export pipeline leak was discovered. An exact date for the shutdown of Ursa was not disclosed but they pointed out that unrelated maintenance was performed on it and as a result the shutdown was extended to several days. The Mars crude oil pipeline system transports approximately 300,000 barrels per day of deepwater sour crudes to the Louisiana Offshore Oil Port.
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Vyborg Shipyard invest RUR 400 million for expansion and modernization by 2009

Vyborg Shipyard OJSC plans to invest some RUR 400 million into capacity expansion and production modernization by 2009.

Mr. Vladimir Ruskin, Production Director of the yard quotes that the investments are to be used for introduction of a new metal cutting line in order to raise annual cutting by 48% - to 20,000 tonnes and for expansion of painting facilities to raise the volume of painting by 40-50%. Vyborg Shipyard OJSC specializes in construction of sea platforms for development of the fields at the self as well as in construction of small and average capacity vessels.
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China Shipping To Expand Global Presence

China Shipping Group, the world's sixth largest shipping conglomerate by capacity, is seeking diversification to expand its global presence into the cargo terminal business through domestic and international acquisitions.

The shipping conglomerate set to sign another co- operation agreement later this month with a container terminal in Egypt's Mediterranean port of Damietta following a deal sealed with Yingkou Port Group. It plans to take a 20 percent stake in the terminal. The group is eager to increase its presence in the port business globally and will inject assets acquired into CSCL, the group's cargo shipping spin- off. The president of China Shipping Group, Mr. Li Shaode says that they not only consider Yingkou Port as one of the most profitable ports in China but they are also heeding the 17th Communist Party Congress call to help build and strengthen related industry in northern China, which can benefit their business at the same time. China Shipping Group intends to go ahead with CSCL's A-share listing and the proceeds will be used to build more ships and acquire ports.
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Karoon enters into new agreement for Timor acreage

Karoon Gas of Australia has entered into agreement with Woodside Energy to buy its 66.67% interest in permit AC-P8 in the Timor Sea for A$1 million (US$900,238).

The permit offers good exploration potential due to its location in an existing oil and gas producing area and its close proximity to several large oilfields, including the Woodside-operated Laminara and Corralina fields. The AC-P8 permit contains two prospects and at least three leads that need to be further defined prior to any drilling decision, said Karoon. The purchase is conditional on approval from the current partner in the acreage Talisman Oil & Gas and the extension of the permit for a further five-year term which will be sought post completion, both of which Karoon expects to be satisfied.
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GE Marine Turbine to Power Turkish Navy Corvette

GE Marine will supply MTU Friedrichshafen GmbH, Friedrichshafen, Germany, with one LM2500 gas turbine.

MTU will incorporate the LM2500 into a Combined Diesel and Gas turbine (CODAG) configuration to power the Turkish Navy’s new MILGEM multi-purpose corvette. The new MILGEM corvette will have an overall length of 99 meters with a displacement of 2,000 tons. The corvette’s CODAG system will feature one LM2500 gas turbine and two MTU diesel engines for total propulsion power of 30,000 kilowatts. Maximum ship speed will be 29 knots. The gas turbine will be manufactured at GE’s Evendale, Ohio facility, and will be delivered to MTU Friedrichshafen in late 2007 for integration into the CODAG propulsion system. Construction of the first MILGEM class corvette is currently in progress at the Turkish Naval Forces Istanbul Naval Shipyard.