January 09, 2008
Volume: 12
Issue: 1
Top Stories
Petrobras to Spend 55 Billion Reais in 2008
EU Pushes 130 Grams/Kilometer Vehicle CO2 Limit
Bush Signs Energy Bill
API: U.S. Oil Production is Brisk Despite Flat Refined Products Demand
IEA: Relationship Between High Oil Prices and Global Demand Still Uncertain
EC Tightens Industrial Emissions, Proposes New Truck, Bus Limits
Australian Watchdog Gets Tough on Gasoline
News Briefs: Czech Power Company Buys Piece of MOL
Market Report
Brent
Gasoil
NYMEX Crude Price Climbs Back Above $96/bbl
News from Americas
Capacity of Cuban Refinery to Be Expanded to 109,000 b/d
Frontier Plans Refinery Expansion, Suffers Fire at Another Refinery
Report: Petrobras to Acquire Remainder of Texas Refinery
Repsol to Sell up to 25% of YPF to Argentina’s Grupo Petersen
Hyperion Refining Applies for Air Permit
Chrysler Rejects Media Reports Concerning Financial Woes
Petroperu Wants to Sell Shares on Lima Stock Exchange
ConocoPhillips Expects Q4 Margins to be Lower than Q3
Fluor Gets EPC Contract for Marathon Expansion
News Briefs from South America
News from Middle East / Asia
India’s Essar Oil Plans to Secure $6 Billion by February
Application for Turkish Refinery Rejected
One Chinese Refinery Completed, Another Delayed
ONGC Seeks Incentives for Kakinada Refinery
Report: U.A.E. Companies to Upgrade Libya Refinery
News Briefs: Sinopec Plans Expansion of Wuhan Refinery
News from Europe / Africa
Hellenic Petroleum Subsidiary Reaches Agreement with Macedonia
Aker Kvaerner Awarded Contract to Upgrade Netherlands Refinery
Helix Oil International Plans to Construct $6 Billion Refinery
Grupa Lotos to Provide Fuel to Shell Polska
Slovnaft Hit with $13 Million Fine
Mittal, HPCL Could Build Refineries in Africa

News from Americas

Capacity of Cuban Refinery to Be Expanded to 109,000 b/d

The capacity of the Soviet-era oil refinery in Cienfuegos, Cuba, which was reactivated last month, will be expanded to 109,000 b/d, slightly more than the previously thought 100,000 b/d, Bloomberg reported.

Full Story >>

Frontier Plans Refinery Expansion, Suffers Fire at Another Refinery

Frontier Oil, an independent oil refining and marketing company, is planning a 30-day maintenance and expansion project on a 110,000 b/d crude unit at its refinery in El Dorado, Kan., a company spokesman told Reuters.

Full Story >>

Report: Petrobras to Acquire Remainder of Texas Refinery

Brazilian state oil company Petrobras, which has been looking to expand its assets outside of Brazil, is set acquire Astra Oil’s stake in the Pasadena, Texas, refinery the companies jointly own, Gazeta Mercantil reported.

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Repsol to Sell up to 25% of YPF to Argentina’s Grupo Petersen

Spanish-Argentine oil company Repsol YPF announced recently it has reached an agreement to sell about 15% of YPF, the former state oil company of Argentina, to Grupo Petersen.

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Hyperion Refining Applies for Air Permit

Hyperion Refining, the developer of the planned Hyperion Energy Center or what it touts as the “cleanest oil refinery in the United States,” filed last month an application for an air permit with the South Dakota Department of Environment & Natural Resources.

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Chrysler Rejects Media Reports Concerning Financial Woes

Chrysler has responded to media reports concerning its financial status, stating that it is not only meeting, but exceeding financial goals approaching 2008.

Full Story >>

Petroperu Wants to Sell Shares on Lima Stock Exchange

Petroperu, Peru’s state oil company, plans to sell a 10% stake on the Lima Stock Exchange next year to increase funds for investment projects, CEO Cesar Gutierrez told Bloomberg.

Full Story >>

ConocoPhillips Expects Q4 Margins to be Lower than Q3

U.S. oil company ConocoPhillips expects its fourth quarter refining and marketing margins to be lower than they were in the previous quarter, the company said recently in its Fourth-Quarter 2007 Interim Update.

Full Story >>

Fluor Gets EPC Contract for Marathon Expansion

Texas-based Fluor Corp. announced recently it has been awarded an integrated engineering, procurement and construction contract for the planned expansion of Marathon’s Detroit refinery.

Full Story >>

News Briefs from South America

Nicaraguan state oil company Petronic is expected to sign a contract this month with ExxonMobil subsidiary Esso Standard Oil to lease Esso’s fuel storage tanks in Nicaragua’s Corinto port on the Pacific coast, Latin America News Digest reported.

Full Story >>

News from Middle East / Asia

India’s Essar Oil Plans to Secure $6 Billion by February

India’s Essar Oil will secure the entire $6 billion it says it needs to triple capacity at its Vadinar refinery to 34 million tons in 2010 by the end of January, The Economic Times of India reported.

“We will achieve financial closure for the about $6 billion dollar expansion plan by next month-end,” a company official reportedly said.

Full Story >>

Application for Turkish Refinery Rejected

Turkey energy regulator EPDK has rejected a license application from Cevahir Holding for a $6 billion, 10 million ton per year refinery at Yumurtalik on the country’s southern coast, local media reported.

Full Story >>

One Chinese Refinery Completed, Another Delayed

Chinese state oil company PetroChina has delayed the startup of a new 100,000 b/d refinery till year’s end, while fellow state oil company Sinopec has completed a 200,000 b/d facility.

Full Story >>

ONGC Seeks Incentives for Kakinada Refinery

India’s state Oil and Natural Gas Corp. (ONGC) is seeking up to Rs 16,000 crore in incentives from the government of Andhra Pradesh for the company’s planned 15 million ton per year refinery at Kakinada, which studies have found to be economically unviable.

ONGC is seeking incentives over an eight-year period, India’s Business Standard reported.

Full Story >>

Report: U.A.E. Companies to Upgrade Libya Refinery

U.A.E. companies TransAsia Gas International and Star Petro Energy have signed a joint venture agreement with Libya’s National Oil Co. for an upgrade of the 220,000 b/d Ras Lanuf refinery in Libya, Reuters reported.

Full Story >>

News Briefs: Sinopec Plans Expansion of Wuhan Refinery

China state oil company Sinopec has completed a new vacuum distillation unit at its Wuhan refinery, which will increase the refinery’s capacity 30% to about 130,000 b/d, according to a MarketWatch report.

Full Story >>

News from Europe / Africa

Hellenic Petroleum Subsidiary Reaches Agreement with Macedonia

The Balkan subsidiary of Greece’s Hellenic Petroleum will receive $40 million from the government of Macedonia under a compromise reached regarding a crude supply agreement between the two parties.

Full Story >>

Aker Kvaerner Awarded Contract to Upgrade Netherlands Refinery

Norway’s Aker Kvaerner, a global engineering and construction services provider, was granted a contract by Koch HC Partnership to upgrade its refinery in the Netherlands.

Full Story >>

Helix Oil International Plans to Construct $6 Billion Refinery

Helix Oil International, a marine contractor and operator of offshore oil and gas properties, is planning to construct a $6 billion refinery in Nigeria, Roland Enang, managing director told Dow Jones this week.

Full Story >>

Grupa Lotos to Provide Fuel to Shell Polska

Polish oil company Grupa Lotos announced recently it has reached an agreement to provide liquid fuels to Shell Polska this year.

Full Story >>

Slovnaft Hit with $13 Million Fine

Slovakia’s Council of the Antimonopoly Office announced recently it has confirmed a fine of SKK 300 million (U.S. $13.1 million) for Slovak refiner Slovnaft for abusing its market position.

Full Story >>

Mittal, HPCL Could Build Refineries in Africa

Steel magnate Lakshmi Mittal and Indian state oil company Hindustan Petroleum (HPCL) could join on two refineries in Africa, Press Trust of India reported.

Full Story >>

Top Stories

Petrobras to Spend 55 Billion Reais in 2008

Brazilian state oil company Petrobras announced recently its spending plans for next year.

Petrobras will spend 55 billion reais (U.S. $30.5 billion) in 2008 – 87.6% of which will be spent in Brazil and 12.4% internationally.

Full Story >>

EU Pushes 130 Grams/Kilometer Vehicle CO2 Limit

On the same day that U.S. President George Bush signed a law forcing dramatic reductions in vehicle CO2 via biofuels and corporate average fuel economy (CAFE) mandates, the European Commission on Dec. 19 proposed a 130 grams/kilometer limit on vehicle (CO2) emissions starting in 2012.

“The proposed legislation is the cornerstone of the EU’s strategy to improve the fuel economy of cars, which account for about 12% of the European Union’s carbon emissions,” the Commission announced. “The proposal further underlines the EU’s leadership and determination to deliver on its greenhouse gas commitments under the Kyoto Protocol and beyond.”

Full Story >>

Bush Signs Energy Bill

As expected, U.S. President George W. Bush last month signed the energy bill that U.S. Congress passed.

Full Story >>

API: U.S. Oil Production is Brisk Despite Flat Refined Products Demand

Despite a flat demand for refined products, U.S. crude oil production in November “maintained its record-breaking pace,” the American Petroleum Institute (API) said in its monthly statistical report.

Full Story >>

IEA: Relationship Between High Oil Prices and Global Demand Still Uncertain

Although the high price of oil has somewhat lessened global oil demand, the depth of its impact remains to be seen, said the International Energy Agency (IEA) in its latest Oil Market Report, which monitors the supply and demand of oil for member and non-member countries of the Organisation for Economic Co-operation and Development (OECD).

Full Story >>

EC Tightens Industrial Emissions, Proposes New Truck, Bus Limits

The European Commission recently announced it has adopted new legislation to strengthen and revamp its regulation of industrial emissions and proposed tighter nitrogen oxide and particulate matter emissions from trucks and buses.

The Commission said the new industrial emissions legislation is aimed at shortcomings in the current legislation.

Full Story >>

Australian Watchdog Gets Tough on Gasoline

The Australian Competition and Consumer Commission, the country’s competition watchdog, has taken several actions recently aimed at the country’s high gasoline prices.

In the past several days, the Commission has commenced monitoring of unleaded gasoline prices and has written the country’s major oil companies seeking an explanation for the prices.

Full Story >>

News Briefs: Czech Power Company Buys Piece of MOL

Czech power company CEZ has purchased a 7% interest in Hungarian oil company MOL as part of a strategic alliance announced by the companies.

Full Story >>

Market Report

Brent

Full Story >>

Gasoil

Full Story >>

NYMEX Crude Price Climbs Back Above $96/bbl

The price of the front-month crude oil futures contract on NYMEX ended its three-day decline yesterday, adding 1.3%, to $96.33/bbl.

Full Story >>