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ChevronTexaco Exits PNG

ChevronTexaco is to sell its interests and resign operatorships of its Papua New Guinea joint ventures.

The decision, announced April 10th, is part of the company's attempt to "focus on assets more aligned with strategic growth objectives" following the merger of Chevron and Texaco in October 2001, according to ChevronTexaco Vice Chairman, Peter Robertson.

Robertson said the offer for sale will include all the company's oil and gas production interests through its subsidiary Chevron Niugini Ltd (CNGL) in Kutubu, Moran, Gobe Main and South East Gobe oil fields in PNG's Southern Highlands Province.

"The decision to conclude our business in PNG was a very difficult one given the outstanding relationship the company has been privileged to enjoy over two decades with the people and government of Papua New Guinea", he said.

Robertson said ChevronTexaco believed the associated gas reserves from the operating oil fields made the sale particularly attractive to companies interested in future gas projects in PNG, in addition to the production of oil.

"We will leave an operation in the rainforests of PNG that we believe is unsurpassed in its environmental record and its approach to sustainable development", he said. "We've been delighted with the results achieved through our unique partnership with the World Wide Fund for Nature."

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Strong Opportunity For Chinese LNG Growth: ABARE

China's dynamic eastern coastal region could become a major market for Australia's LNG exports over the medium to longer term, according to the Executive Director of the Australian Bureau of Agriculture and Resource Economics (ABARE), Brian Fisher.

Fisher said the region was experiencing higher economic growth than elsewhere in China and required significant increases in energy to maintain its current level of growth. The region encompasses the provinces of Jiangsu, Shanghai, Zhejiang and Fujian, which lie to the north of Guangdong where China recently signed its first LNG import contract with Australia's North West Shelf joint venture

"Economic growth in this region, and in Guangdong, is higher than elsewhere in China and requires significant increases in energy to maintain its dynamism", Fisher said. "The region also has serious environmental problems, because of its traditional reliance on coal as an energy source."

Fisher said a new ABARE research report, Natural Gas in Eastern China: The Role of LNG, indicated demand for LNG imports to the region could reach around 11 - 14 MMt a year by 2015, compared to the current Guangdong contract of 3.3 MMt a year.

He said China's energy planners were actively promoting the use of gas in the region as a means of overcoming some of these energy constraints. "The west – east pipeline was expected to start delivering domestic gas to Shanghai in 2003-04. However, this would be unable to meet all the projected increase in demand for gas", he said.

"Imports of LNG would provide a much needed additional source of gas that could complement China's own resources. Competition to supply this market will be intense", he said, "But Australia's secure, reliable and high quality LNG industry would be well placed to compete in this market."

Meanwhile, the North West Shelf venture announced in March that Australia LNG Pty Ltd had changed its name to North West Shelf Australia LNG. John L. Banner was appointed as the President of the organisation after being seconded from ChevronTexaco. Banner replaced Arthur Dixon who returned to work with Shell. Dixon worked with Australia LNG for the past three and a half years.

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Greenpeace Seeks GoM Seismic Data

Greenpeace is trying to access information about seismic activities in the Gulf of Mexico from the US Government's Minerals Management Service.

International Association of Geophysical Contractors (IAGC) Vice President Special Projects, Alistair Fenwick, said the group is seeking detailed information through a Freedom of Information request on seismic activity, including the names of companies carrying out seismic/airgun testing, methods and locations of seismic activities.

Fenwick said it is also seeking information on permits for current and future seismic activities and documents related to the terms and conditions of a biological opinion on a recent continental shelf lease sale (184).

"The IAGC is checking to determine how the MMS plans to respond to the request", he said. "Greenpeace is known for its high profile 'direct action' protest initiatives that are generally designed to disrupt certain types of development initiatives."

"While we know of no plans to do so in this case, we wanted everyone to have an early awareness of this organisation's interest in our Gulf of Mexico operations."

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Investment Guru Buys Stake In Chinese Oil Giant

In a move that has puzzled many in the market place, investment guru and America's second richest man, Warren Buffet, has bought a stake in one of China's 'Big Three' oil companies.

Buffet's Berkshire Hathaway spent around $US50 MM in April buying a 13.35% interest in the Chinese government-controlled PetroChina, which produces around two-thirds of the nation's oil.

According to a report in the Australian Financial Review, the 'Sage of Omaha' told Berkshire shareholders that the company had been looking for opportunities in Asia to buy entire businesses, although not in China due to government restrictions.

"We want to buy them cheaper than the same kind of companies in the US", he said.

Many commentators believe the investment guru is betting against energy sector liberalisation in China and that he expects PetroChina to become the next BP or ExxonMobil.

Currently, China is the third largest importer of oil, after the United States and Japan.

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SMT Establishes European Subsidiary

Coming on the back of several big contract wins in the European market, software developer, Seismic Micro-Technology Inc. (SMT) has announced the formation of a London-based European subsidiary.

In addition to its European customer base, the SMT Europe office will also service clients in the Middle East and Africa.

Since founding in 1984, SMT has become one of the world's leading suppliers of PC interpretation software for geological, geophysical and engineering disciplines.

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