Lukoil to Invest $1B in Samara-Nafta in Next 5 Years

MOSCOW - OAO Lukoil Holdings, Russia's No. 2 oil producer, will invest $1 billion in the oil firm Samara-Nafta to increase production, Russian news agencies reported Monday, citing a company presentation.

Lukoil acquired Samara-Nafta from Hess Corp. this month for $2 billion as part of a strategy to stabilize and increase oil production. Lukoil has for years fought declining output at its main, Soviet-era fields in Western Siberia.

The investment in Samara-Nafta will increase production by between 5% and 7% over the next five years from 2.5 million metric tons a year, Prime news agency cited the company as saying.

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Egypt Says It Will Invest To Raise Oil Output

DUBAI - Cash-strapped Egypt will spend $18 billion over coming years to build new refineries and modify existing plants in a move to increase its annual fuel output, the country's oil minister said in an interview with Al Tahrir Television.

"There are some urgent measures to be taken this fiscal year to operate some refineries safely ... and there are measures in the next couple of years to lift the output of the existing refineries from the current 25-26 metric tons a year to more than 30 million tons," Osama Kamal told the Egyptian channel.

Overall "we have decided in November to invest $18 billion until 2017 to build new refineries and upgrade the existing refineries we have," he said.

Egypt has been paying hefty premiums for its crude deliveries for its refineries due to a weaker pound and difficulties in securing letters of credit for its transactions, while a shortage of state-subsided diesel has paralyzed transportation in many parts of the country.

Continuing unrest in the country since the ousting of former President Hosni Mubarak has led to a risky economic mix of dwindling foreign-exchange reserves, declining tourism revenue and costly price subsidies, economists said. To prop up the Egyptian currency, the central bank has gone through nearly two-thirds of its foreign-currency reserves, pushing the country to the brink of a liquidity crisis.

Egypt is trying to secure a $4.8 billion loan from the International Monetary Fund, a move viewed as critical to rescuing its economy and mending its reputation as a place to do business.

The IMF wants Egypt to reduce its subsidy spending, as part of a reform plan for the loan, say those close to the talks. But any subsidy changes would likely only enrage the legions of poor who rely on cheap fuel.

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Egypt Says It Will Invest To Raise Oil Output

DUBAI - Cash-strapped Egypt will spend $18 billion over coming years to build new refineries and modify existing plants in a move to increase its annual fuel output, the country's oil minister said in an interview with Al Tahrir Television.

"There are some urgent measures to be taken this fiscal year to operate some refineries safely ... and there are measures in the next couple of years to lift the output of the existing refineries from the current 25-26 metric tons a year to more than 30 million tons," Osama Kamal told the Egyptian channel.

Overall "we have decided in November to invest $18 billion until 2017 to build new refineries and upgrade the existing refineries we have," he said.

Egypt has been paying hefty premiums for its crude deliveries for its refineries due to a weaker pound and difficulties in securing letters of credit for its transactions, while a shortage of state-subsided diesel has paralyzed transportation in many parts of the country.

Continuing unrest in the country since the ousting of former President Hosni Mubarak has led to a risky economic mix of dwindling foreign-exchange reserves, declining tourism revenue and costly price subsidies, economists said. To prop up the Egyptian currency, the central bank has gone through nearly two-thirds of its foreign-currency reserves, pushing the country to the brink of a liquidity crisis.

Egypt is trying to secure a $4.8 billion loan from the International Monetary Fund, a move viewed as critical to rescuing its economy and mending its reputation as a place to do business.

The IMF wants Egypt to reduce its subsidy spending, as part of a reform plan for the loan, say those close to the talks. But any subsidy changes would likely only enrage the legions of poor who rely on cheap fuel.

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Mediafax: OMV Petrom to Invest in Suplacu Redevelopment by 2015

BUCHAREST - Romania's leading oil company OMV Petrom will invest around 200 million euros ($255.9 million) up to 2015 in redevelopment works at its Suplacu field in the northwestern locality of Barcau, the company said in a statement Friday, news agency Mediafax reports.

The works aim to unlock additional hydrocarbon reserves in the region, Petrom said.

"We operate very mature fields and over the last years we have been able to reduce the production decline rate to roughly 1% per year. Field redevelopment projects are and will be essential to keep production stable," said Mariana Gheorghe, chief executive of Petrom.

She said Petrom currently supplies approximately 40% of the oil and gas demand in Romania.

Suplacu is a mature oil field, which has been in production for over 50 years. Its daily production is 10% of the total oil production of OMV Petrom in Romania.

The redevelopment works will comprise the drilling of an additional 105 wells, the implementation of state-of-the-art technology to increase hydrocarbon recovery rates, as well as the construction of a new water treatment plant and upgrades to the company's gas combustion and air compression systems.

Petrom plans to redevelop six to eight oil fields by 2015, including the Suplacu project. Total investment in the projects, which are slated to unlock additional 70 million barrels of oil equivalent, is estimated at EUR400 million.

The company's average reserve recovery rate for its 238 fields operated locally stands at 25% for oil and around 49% for gas, the company said.

Petrom is majority owned by Austria's OMV, with a 51% stake. Romania's Economy Ministry and investment fund Fondul Proprietatea hold 20.63% and 20.11% in Petrom, respectively, while the remaining shares are traded on the Bucharest bourse.

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Japan Firms Plan to Invest in Brazil FPSO

TOKYO - Four Japanese companies announced a plan Friday to invest in a floating vessel which is used by the offshore oil and gas industry to be deployed in an oil field near Brazil.

Mitsui & Co., Mitsui OSK Lines Ltd., Marubeni Corp. and MODEC Inc. will invest in a 20-year charter project of a floating production, storage and offloading system operated by MODEC for use in the Iracema Norte block of a pre-salt oil field off the coast of Brazil owned by Petroleo Brasileiro SA, the companies said in a statement.

Mitsui, Mitsui OSK Lines and Marubeni will own 32.4%, 20.6% and 17.6% of the project respectively, while MODEC will own the remaining 29.4%, the statement said.

The FPSO for the Iracema Norte block will start operations in the fourth quarter of 2015, and has the capacity to produce 150,000 barrels a day of crude oil and 280 million cubic feet of natural gas, it said.

This will be the second FPSO project the four Japanese companies are jointly investing in. The one serving the nearby Iracema Sul block was the first.

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Iraq Plans to Invest $130B in Oil, Gas Over 5 Years

Iraq plans to invest some $130 billion over the next five years in order to triple the country's output, which is currently stood at 3.25 million barrels a day, the country's oil minister said Saturday.

Abdul Kareem Luaiby said that his country would allocate $18 billion to raise natural gas output and $25 billion to upgrade refinery capacity. Iraq expects to earn some $600 billion in revenue from these oil expansion plans, Mr. Luaiby told an energy conference held in Basra.

Iraq has boosted its crude oil production last year by 24%, thanks to several oil deals Iraq signed with international oil companies such as Royal Dutch Shell PLC, BP PLC, Exxon Mobil Corp., Eni SpA, OAO Lukoil Holdings and China National Petroleum Corp.

Iraq's crude oil exports have, over the last few months, surpassed those of Iran and became the Organization of the Petroleum Exporting Countries' second-largest producer.

Iraq's crude oil exports in February rose by 7.5%, to 2.536 million barrels a day on month, compared with 2.359 million barrels a day in January, according to figures released by the State Oil Marketing Organization, or SOMO. Iraq plans to raise exports to 2.9 million barrels a day this year.

Production from Iraq's super-giant Majnoon oil field, which is being developed by Shell, will reach 100,000 barrels a day in May and 200,000 barrels a day by the end of the year, Luaiby told the conference.

Last year, the Paris-based International Energy Agency estimated that Iraq would be able to pump up to 6.1 million barrels a day in 2020 and 8.3 million barrels a day in 2035. Iraq said it would be able to reach 8 million to 9 million barrels a day in 2020.

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Total, Wintershall to Invest $2.1B in Argentina Natural-Gas Production

BUENOS AIRES - France's Total SA and Germany's Wintershall AG will each invest about one billion U.S. dollars in Argentina over the next five years to boost natural-gas production, the Argentine government said in a statement Friday.

Total will invest $1.1 billion, while Wintershall will invest $1 billion in projects that will increase the country's annual natural-gas output by 3.1% between 2013 and 2017, according to the statement. Increased output from the investments is expected to total 12 million cubic meters per day.

Argentina is on a big push to try and attract investment in its energy sector to boost output.

Oil-and-gas production has declined in recent years while has demand soared, turning Argentina into a net energy importer and forcing the government to spend billions each year on gas and fuel imports. In 2011, Argentina spent more than $9 billion on imported energy.

Last year, the government nationalized a controlling stake in the country's leading oil-and-gas company from YPF SA from Spain's Repsol SA, accusing the company of bleeding YPF dry with dividends and failing to invest. Now, the government is pouring billions into expanding YPF's production.

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Total, Wintershall to Invest $2.1B in Argentina Natural-Gas Production

BUENOS AIRES - France's Total SA and Germany's Wintershall AG will each invest about one billion U.S. dollars in Argentina over the next five years to boost natural-gas production, the Argentine government said in a statement Friday.

Total will invest $1.1 billion, while Wintershall will invest $1 billion in projects that will increase the country's annual natural-gas output by 3.1% between 2013 and 2017, according to the statement. Increased output from the investments is expected to total 12 million cubic meters per day.

Argentina is on a big push to try and attract investment in its energy sector to boost output.

Oil-and-gas production has declined in recent years while has demand soared, turning Argentina into a net energy importer and forcing the government to spend billions each year on gas and fuel imports. In 2011, Argentina spent more than $9 billion on imported energy.

Last year, the government nationalized a controlling stake in the country's leading oil-and-gas company from YPF SA from Spain's Repsol SA, accusing the company of bleeding YPF dry with dividends and failing to invest. Now, the government is pouring billions into expanding YPF's production.

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Israel Firms Invest In US Energy Search Off Cyprus

NISCOSIA - Israeli firms Delek and Avner signed an agreement on Monday to acquire a 30% stake in exploration rights for gas and oil off Cyprus's southern shore carried out by U.S. company Noble Energy.

Commerce Minister Neoclis Sylikiotis told reporters that the signing provided a "new era of Cyprus-Israeli strategic cooperation which includes economic and political dimensions."

Noble Energy Inc was the first to drill when awarded block 12 after Cyprus launched its energy search in 2007.

In December 2011, Noble said it had discovered gas reserves of up to 226 billion cubic meters, with an estimated value of 100 billion euros.

This would satisfy domestic needs for decades and could enable Cyprus to become a regional player by exporting gas to Europe from 2019.

Delek Drilling and Avner Oil and Gas Exploration own majority rights in Israel's own large gas finds in the nearby Leviathan and Tamar fields.

The latest deal move comes less than a week after Cyprus signed an agreement with French energy giant Total to conduct exploratory drilling for gas and oil in two blocks off its southern shore.

Cyprus aspires to become a regional energy hub with the prospect of oil as well as natural gas being tapped beneath the sea bed.

Total signed a deal to exploit blocks 10 and 11 that are adjacent to a large natural gas find in block 12 and said it seeks to proceed in drilling for oil as well as gas reserves.

Turkey has protested strongly against Nicosia's energy search, branding it illegal and beginning its own exploratory drilling off the breakaway north of the island.

Ankara has warned that companies involved in the Cyprus process could be shut out of Turkey's energy investment.

Sylikiotis said that having countries such as France, the United States, Israel and Italy involved in the island's hydrocarbon exploration acted as a "political shield" against Turkish threats.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied its northern third in response to an Athens-engineered coup in Nicosia aimed at union with Greece.

It is estimated that there could be around 60 trillion cubic feet of gas lying in the 13 blocks that make up Cyprus's 51,000 square kilometer exclusive economic zone.

Cyprus is banking on its energy bonanza to eventually rescue it from recession as it seeks a European Union bailout. It plans to bring gas onshore in 2018 and to build a liquefied natural gas plant.

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