Greenland Minister: Will Issue New Oil Exploration Licenses

COPENHAGEN - Greenland's new government has clarified its stance on allowing more offshore oil exploration with the small Arctic territory's new minister of industry and minerals saying that new licenses will be handed out as current licenses are turned in.

Jens-Erik Kirkegaard, in an interview at a conference in Copenhagen, said "we would like to stick to the current level of activity." He said more licenses will be handed out--including licenses for new areas--once current licenses are turned in, and more licenses will be granted after old ones are turned in 2013 and likely also in 2014.

The total level of exploration activity in Greenland isn't expected to increase or decline for the time being.

Mr. Kirkegaard's statements differ from the stance that the Social Democratic Siumut party--under newly installed Prime Minister Aleqa Hammond--was expected to take. In March, after her party took the largest number of seats in parliamentary elections, coalition agreements said that the government would be "reluctant" to offer more licenses and that existing licenses would be under more scrutiny.

The disclosure was greeted with optimism by environmental activists such as Greenpeace due to the impression that Greenland would halt exploration activities. Mr. Kirkegaard, however, sought to clarify the government's position.

Greenland technically belongs to the Kingdom of Denmark and relies on the Danes for massive subsidies needed to keep public finances afloat. However, Greenland operates under a self-rule regime and is looking to better develop its massive mineral and oil reserves so that it can become more financially independent from Denmark.

Among the companies holding licenses in Greenland are Royal Dutch Shell PLC, Statoil ASA and A.P. Moller-Maersk AS. The U.S. Geological Survey has estimated that the Greenlandic basin contains around 17 billion barrels of oil, but so far none has been extracted for export.

Dealing with Greenland's rich collection of resources will be atop Ms. Hammond's agenda after her Siumut Party collected 43% of the votes in a March election. The Inuit Ataqatigiit, or IA, previously ruled Greenland and, over the past four years, has worked to open up the secluded country to mining companies and others capable of advancing a variety of mining projects, including a plethora of rare-earth minerals, natural gas and other resources.

Ms. Hammond has vowed to put in place more-stringent financial requirements on foreign companies looking to eventually profit in Greenland. In March, she told The Wall Street Journal that she plans to demand royalties from companies as they set up exploitation activities.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Greenland Minister: Will Issue New Oil Exploration Licenses

COPENHAGEN - Greenland's new government has clarified its stance on allowing more offshore oil exploration with the small Arctic territory's new minister of industry and minerals saying that new licenses will be handed out as current licenses are turned in.

Jens-Erik Kirkegaard, in an interview at a conference in Copenhagen, said "we would like to stick to the current level of activity." He said more licenses will be handed out--including licenses for new areas--once current licenses are turned in, and more licenses will be granted after old ones are turned in 2013 and likely also in 2014.

The total level of exploration activity in Greenland isn't expected to increase or decline for the time being.

Mr. Kirkegaard's statements differ from the stance that the Social Democratic Siumut party--under newly installed Prime Minister Aleqa Hammond--was expected to take. In March, after her party took the largest number of seats in parliamentary elections, coalition agreements said that the government would be "reluctant" to offer more licenses and that existing licenses would be under more scrutiny.

The disclosure was greeted with optimism by environmental activists such as Greenpeace due to the impression that Greenland would halt exploration activities. Mr. Kirkegaard, however, sought to clarify the government's position.

Greenland technically belongs to the Kingdom of Denmark and relies on the Danes for massive subsidies needed to keep public finances afloat. However, Greenland operates under a self-rule regime and is looking to better develop its massive mineral and oil reserves so that it can become more financially independent from Denmark.

Among the companies holding licenses in Greenland are Royal Dutch Shell PLC, Statoil ASA and A.P. Moller-Maersk AS. The U.S. Geological Survey has estimated that the Greenlandic basin contains around 17 billion barrels of oil, but so far none has been extracted for export.

Dealing with Greenland's rich collection of resources will be atop Ms. Hammond's agenda after her Siumut Party collected 43% of the votes in a March election. The Inuit Ataqatigiit, or IA, previously ruled Greenland and, over the past four years, has worked to open up the secluded country to mining companies and others capable of advancing a variety of mining projects, including a plethora of rare-earth minerals, natural gas and other resources.

Ms. Hammond has vowed to put in place more-stringent financial requirements on foreign companies looking to eventually profit in Greenland. In March, she told The Wall Street Journal that she plans to demand royalties from companies as they set up exploitation activities.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Canada Minister Sees Better Prospect of Change to EU Oil-Sands Law

OTTAWA - Canadian Natural Resources Minister Joe Oliver said the possibility of changes to a proposed European Union law that seeks to treat Canadian oil-sands crude as dirtier than conventional fuel have improved, because the law would increase costs and threaten the competitiveness of European refineries at a time when the continent's economy is struggling.

The European Commission, the EU's executive body, is considering singling out crude from Alberta's oil sands as being dirtier than other fuel types in a revision to its Fuel Quality Directive, or FQD, a law designed to lower carbon emissions from transportation fuels.

"We believe that the prospects for an improvement--for fundamental change here--are better than they were a year ago," Mr. Oliver told reporters on a conference call from the U.K., adding that "the issue of competitiveness, including in the refinery industry "are really very much top of mind."

He said Ottawa would consider taking action against the EU at the World Trade Organization as a "very last resort."

Canadian officials, who have long lobbied against the proposed law, say it discriminates against oil-sands crude and isn't based on science. The issue was re-ignited recently as Canada and the EU try to conclude a free-trade agreement that's been four years in the making. Officials from both side have repeatedly said the FQD and trade negotiations are being kept separate. A decision on the FQD is expected later this year.

Mr. Oliver said oil-sands opponents are unrealistic in lobbying for a world powered by alternative energy, and their message could "hurt the economy in a significant way." He said Canada wants its approach to climate change "to be based on reality" and will focus on reducing greenhouse gas emissions while continuing to invest in green energy and technology.

Meanwhile, Mr. Oliver said opponents of TransCanada Corp.'s proposed Keystone XL pipeline are getting "desperate," as U.S. decision on the controversial project nears, hence "the shrillness of their arguments, the hyperbole and the exaggeration that we're hearing from some sources."

Mr. Oliver said the project would be "very positive" for Canada and the U.S, creating jobs on both sides and contribute to economic growth.

The Obama administration is expected to make a decision on Keystone later this year.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Venezuela Oil Minister: Contracts Could Be Canceled if Output Demands Not M

CARACAS--Venezuela's government could revoke contracts of 10 small partner companies in the nationalized oil industry if they fail to meet the state's demands to increase production, Oil Minister Rafael Ramirez told reporters Friday.

The government, which has laid out ambitious plans to raise production capacity over the next several years, wrote to all of its partners in November 2010 calling on them to boost output.

"At this moment we have identified 10 companies with problems, four of which are very critical," Mr. Ramirez said. "I'm going to make the call again. If they don't complete the plans then I will have to go to the National Assembly and say that these companies are not fulfilling what they promised," he said, warning that those not meeting their targets could have their contracts canceled.

The minister declined to name the companies but said that "they are very small" and include some that produce no more than 30 barrels a day.

"Time is up. I hope that the companies come and talk to us," Mr. Ramirez said.

He added that large partners like U.S. oil major Chevron Corp. (CVX) and China National Petroleum Corp. (CNPC.YY) have already responded to the government's demands and now he is waiting for the smaller companies to follow suit.

Under late President Hugo Chavez, who died in March, Venezuela's government revised contract terms with its oil partners to give the state a larger claim on oil projects. Some companies like ConocoPhillips (COP) and Exxon Mobil Corp. (XOM) rejected the new terms and are now seeking billions in compensation from Venezuela through international arbitration courts.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ecuador's Minister of Nonrenewable Natural Resources Resigns

QUITO, Ecuador - Wilson Pastor, Ecuador's minister of nonrenewable natural resources, has tendered his resignation to President Rafael Correa and will be replaced by Pedro Merizalde as part of a cabinet reshuffle as Mr. Correa prepares for a third four-year term, senior government officials told Dow Jones Newswires on Wednesday.

The ministry is key for Ecuador's public-policy making, as it sets and supervises policy for the oil and mining sectors.

Mr. Merizalde, a 61-year-old oil engineer, is the current chief executive of the Refineria del Pacifico project, the $10 billion venture of Ecuador's state-run oil company Petroecuador, which holds a 51% stake in the refinery, and Venezuela's state-run oil firm Petroleos de Venezuela, owner of the remaining 49%.

Both Mr. Merizalde and Mr. Pastor declined to comment.

President Correa has said he plans some changes to his cabinet, as part of an effort to deepen his "citizen's revolution" during his third term, which begins on May 24.

Mr. Correa was re-elected on Feb. 17 for a four-year term.

Mr. Pastor took office as nonrenewable natural resources minister in April 2010 and played a key role to change oil contracts for private companies operating in the country, setting fees based on output, instead of granting ownership of the barrels that private companies extract.

In the last months Mr. Pastor has been promoting the 11th oil licensing round, which was launched in November.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ecuador's Minister of Nonrenewable Natural Resources Resigns

QUITO, Ecuador - Wilson Pastor, Ecuador's minister of nonrenewable natural resources, has tendered his resignation to President Rafael Correa and will be replaced by Pedro Merizalde as part of a cabinet reshuffle as Mr. Correa prepares for a third four-year term, senior government officials told Dow Jones Newswires on Wednesday.

The ministry is key for Ecuador's public-policy making, as it sets and supervises policy for the oil and mining sectors.

Mr. Merizalde, a 61-year-old oil engineer, is the current chief executive of the Refineria del Pacifico project, the $10 billion venture of Ecuador's state-run oil company Petroecuador, which holds a 51% stake in the refinery, and Venezuela's state-run oil firm Petroleos de Venezuela, owner of the remaining 49%.

Both Mr. Merizalde and Mr. Pastor declined to comment.

President Correa has said he plans some changes to his cabinet, as part of an effort to deepen his "citizen's revolution" during his third term, which begins on May 24.

Mr. Correa was re-elected on Feb. 17 for a four-year term.

Mr. Pastor took office as nonrenewable natural resources minister in April 2010 and played a key role to change oil contracts for private companies operating in the country, setting fees based on output, instead of granting ownership of the barrels that private companies extract.

In the last months Mr. Pastor has been promoting the 11th oil licensing round, which was launched in November.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

New Energy Minister Faces Australian Cost Challenge

Gary Gray, a former Woodside Petroleum Ltd. corporate affairs chief, has been named Australia's new Minister for Resources and Energy following a cabinet reshuffle of the country's governing Labor Party.

The West Australian replaces Martin Ferguson in the role.

Industry bodies have welcomed Gray to the position, but warned he would be challenged by Australia's ongoing issue of the rising cost of doing business in the country.

The Australian Petroleum Production and Exploration Association (APPEA) believed Gray's appointment, while a positive move for the industry, came at a crucial time in its history.

David Byers, APPEA chief executive, said the industry was presently investing $208 billion (AUD $200 billion) in new projects, including seven major liquefied natural gas (LNG) ventures.

He added the industry was at a turning point, with numerous new projects on the drawing board, but not yet committed.

"Australian oil and gas project costs are among the highest in the world and there are several critical policy areas that require genuine reform if hurdles that currently hinder the local industry's ability to compete internationally are to be removed," he said.

"Most important of these is the need for a stable, predictable and competitive taxation regime that encourages exploration and development investments.

"The oil and gas industry's long-term projects need long-term stability. Yet over the past five years the industry has been confronted with a range of disruptive changes to the taxation regime, affecting the company and resources taxation settings."

The Chamber of Minerals and Energy of Western Australia (CME) also applauded Gray's appointment to the portfolio.

Reg Howard-Smith, CME chief executive officer, said it was good news the important portfolio had been given to a Western Australian, given the state's resources sector accounted for 46 percent of Australia's export income.

"Policy initiatives that focus on reducing costs, duplication and red tape will deliver ongoing economic benefits to all Western Australians," Howard-Smith said.

"Unfortunately we are becoming a less attractive place to develop resources projects when compared with global resource rich nations and investment may be driven to other lower cost regions because of additional layers of taxation and charges, which are continuing to drive up cost for doing business."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

New Energy Minister Faces Australian Cost Challenge

Gary Gray, a former Woodside Petroleum Ltd. corporate affairs chief, has been named Australia's new Minister for Resources and Energy following a cabinet reshuffle of the country's governing Labor Party.

The West Australian replaces Martin Ferguson in the role.

Industry bodies have welcomed Gray to the position, but warned he would be challenged by Australia's ongoing issue of the rising cost of doing business in the country.

The Australian Petroleum Production and Exploration Association (APPEA) believed Gray's appointment, while a positive move for the industry, came at a crucial time in its history.

David Byers, APPEA chief executive, said the industry was presently investing $208 billion (AUD $200 billion) in new projects, including seven major liquefied natural gas (LNG) ventures.

He added the industry was at a turning point, with numerous new projects on the drawing board, but not yet committed.

"Australian oil and gas project costs are among the highest in the world and there are several critical policy areas that require genuine reform if hurdles that currently hinder the local industry's ability to compete internationally are to be removed," he said.

"Most important of these is the need for a stable, predictable and competitive taxation regime that encourages exploration and development investments.

"The oil and gas industry's long-term projects need long-term stability. Yet over the past five years the industry has been confronted with a range of disruptive changes to the taxation regime, affecting the company and resources taxation settings."

The Chamber of Minerals and Energy of Western Australia (CME) also applauded Gray's appointment to the portfolio.

Reg Howard-Smith, CME chief executive officer, said it was good news the important portfolio had been given to a Western Australian, given the state's resources sector accounted for 46 percent of Australia's export income.

"Policy initiatives that focus on reducing costs, duplication and red tape will deliver ongoing economic benefits to all Western Australians," Howard-Smith said.

"Unfortunately we are becoming a less attractive place to develop resources projects when compared with global resource rich nations and investment may be driven to other lower cost regions because of additional layers of taxation and charges, which are continuing to drive up cost for doing business."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Kuwait Minister: US Shale Oil Bonanza is No Threat

DUBAI - Growing production from U.S. shale deposits is not a threat to Kuwait due to its higher costs, the country's oil minister Hani Hussein said in remarks published late Monday.

"There is no effect on Gulf crudes from shale oil in the United States as it will take a long time for this crude to have an impact because of its high cost," Mr. Hussein said, according to the official Kuwait News Agency, or KUNA.

"Gulf countries have huge reserves that can be produced at simple costs," he added.

Analysts have previously said that producing oil from U.S. shale is estimated to cost around $50-75 a barrel, while in the Gulf production costs are often less than $20.

Earlier this month, Sami al-Rushaid, the chairman and managing director of state-owned Kuwait Oil Co., said that shale production may lead to a fall in crude oil prices as it cuts into demand, but that prices are likely to stay at about $100 a barrel.

Kuwait, an Organization of the Petroleum Exporting Countries member, has previously said it has begun a study to assess its shale-oil deposits.

In November, the International Energy Agency, which represents key oil consumers, predicted the U.S. would overtake Saudi Arabia as the world's largest oil producer by 2020 thanks to shale output, a forecast which the OPEC secretary general said could undermine its members' spending plans.

OPEC said Tuesday that demand for its members' oil in 2013 will be 100,000 barrels a day lower than previously forecast, as growing output from non-member countries, particularly North American shale oil, eats into its market share.

If the scaled-back forecast proves correct, OPEC could be on track to have its lowest share of the global oil market in more than 10 years. OPEC's move comes as industry experts question whether the producers' group, which has had a decisive influence on the oil market since the 1970s, can maintain its position amid a boom in U.S. oil production resulting from shale-rock drilling technology.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Indonesian Minister in Iraq to Snap Up Exxon Field

JAKARTA - An Indonesian minister said Wednesday he was visiting Iraq later on in the day to help state-owned oil and gas company PT Pertamina acquire a stake in an oil block and also secure an additional 65,000 barrels of Basra light crude.

Indonesia's Coordinating Minister for the Economy Hatta Rajasa said Pertamina is eyeing up to a 20% stake in the West Tuba block in Iraq, which is owned by Exxon Mobil Corp.

"Exxon has got a new oil field in another part of Iraq and because of that it has to sell its stake in the West Tuba as required by the regulation set by the government of Iraq," Mr. Rajasa told reporters.

Pertamina has been seeking to buy oil blocks outside Indonesia to help secure its energy supply, but its attempts haven't been very successful.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here