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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (1155)	6/24/1999 11:48:00 AM
From: Tomas	Read Replies (1) \| Respond to of 2742

"Sudan, the least hopeful piece of China's overseas ventures turned out to be a big hit" China National Petroleum Corp (CNPC) plays down overseas oil investments CNPC has largely shelved its two largest overseas projects, a $1.2 billion product sharing agreement (PSA) with Iraq and a $3.5 billion pipeline project to move Kazakhstan oil to China. A senior CNPC official acknowledged that no serious work had been done in Iraq Al-Ahdab oilfield, which was estimated able to produce over six million barrels per day (bpd). "The political risk is way too high there. We could only wait till the UN sanction is lifted" said the official. Sources said CNPC has largely shelved its proposed 3,000 km pipeline project to move its equity oil from Kazakhstan to northwest China's Xinjiang province due to poor economics. "To a certain extent, it was a flop in decision-making," said the analyst. "Production costs is high in central Asia while the market is not ready there," he said. CNPC owns around 1.2 million tonnes of equity crude oil per year from oilfields in Kazakhstan but the company has failed to find a ready buyer in the home market. Xinjiang, China's western frontier rich in hydrocarbon resources, has surplus crude supply but has limited appetite for oil products due to its less developed economy. Refineries in Xinjiang could only consume less than half a million tonnes of Kazakhstan crude a year, which has a relatively high sulphur content of 0.6-0.9 percent. CNPC has also been tight-lipped over its investment in aged oilfields in Venezuela, Peru and Canada, where sources said CNPC's equity oil was almost negligible. Industry sources said the only project CNPC was proud of was Sudan, where CNPC owns 40 percent of a 150,000 bpd oilfield expected to begin exporting at the end of June, sources said. A 1,500 km pipeline was also scheduled to be completed to meet a June 30 target so that a first batch of crude could be moved to Sudan Port for export. CNPC was also in a joint venture with Sudan's energy ministry for a $600 million 50,000 bpd refinery slated for completion by the end of 1999. "Sudan, the least hopeful piece of its overseas ventures turned out to be a big hit," said the oil analyst. "For a beginner like CNPC in the world oil stage, the first few lessons they've learned are not that bad. You have to pay your tuition in order to learn," said the analyst. CNPC in 1997 had vowed to bring back home three to five million tonnes of crude from its overseas operations by 2000 to be followed by 10 to 15 million tonnes by 2010. Industry sources said it was on track to meet its targets.

To: Tomas who wrote (1155)	6/28/1999 9:10:00 PM
From: Tomas	Respond to of 2742

Papua New Guinea: Talks with ADB, Japan on gas project funding positive The National, June 29 By KEVIN PAMBA PORT MORESBY: Papua New Guinea will have to make a formal request to the Japanese Government for concessional funding assistance for the PNG-Queensland gas project. Petroleum an Energy Minister Sir Rabbie Namaliu said this yesterday when expressing satisfaction over the outcome of last week's talks with the ADB and Japan led by his department secretary, Joseph Gabut. Sir Rabbie said the ADB and Japan will send a mission to do a detailed assessment of the economics of the project. The minister did not give a date of when they would be in the country. The Minister said: "I am very pleased with the outcome of the discussions on the sourcing of concessional funds for the PNG-Queensland Gas Pipeline Project. "The delegation led by the Secretary for Petroleum and Energy, held very productive meetings with the Asian Development Bank as well as Japanese Government and financing institutions last week." He said "the ADB and Japanese officials understand the importance of the PNG-Queensland gas pipeline project but to assist them make detailed assessment of the project, they will send missions to PNG to study the economic and social impact of the project on the country". "A formal request is now required by the Japanese authorities and financing institutions in order for them to proceed with the detailed study and possible funding of the project," Sir Rabbie said. "The sourcing of concessional finance is very important to the project. Such funds will help improve the economics of the project, and more importantly, assist PNG companies like National Gas Corporation and Mineral Resources Development Company to participate in the ownership and operation of the project. "The Government is involved in helping to organise concessional finance in line with its policy to commercialise our natural gas resources. "The commercialisation of natural gas requires construction of infrastructure and therefore the gas project is the ideal opportunity for the Government to assist in establishing the infrastructure required to develop the many gas fields in this country. "This is a strategic piece of infrastructure in terms of future gas development so every effort should be made to ensure the infrastructure is built whilst we have the narrow window of market opportunity in Queensland." wr.com.au ________________________________________________ Funding talks for gas project 'going well' PostCourier, June 29 PETROLEUM and Energy Minister Sir Rabbi Namaliu has welcomed the outcome of talks over funding for the PNG/Queensland Gas pipeline project. A government delegation, led by Petroleum and Energy Secretary Joseph Gabut held ''very productive meetings'' with the Asian Development Bank, the Japanese government and financial institutions last week, he said. ''The ADB and Japanese officials understand the importance of the PNG/Queensland Gas pipeline project. But to to assist them make detailed assessment of the project, they will send missions to PNG to study the economic and social impact of the project on the country,'' Sir Rabbie said. ''A formal request is now required by the Japanese authorities and financing institutions in order for them to proceed with the detailed study and possible funding of the project. I hope this request can be made quickly because of the short time required to reach financial close and construction to begin,'' Sir Rabbie said. The Minister said the source of concessional finance was important to the gas pipeline project. The funds would help improve the economics of the project, and more importantly, assist PNG companies like National Gas Corporation and Mineral Resources Development Company to participate in the ownership and operation of the project. ''The Government is involved in helping to organise concessional finance in line with its policy to commercialise our natural gas resources. The commercialisation of natural gas requires construction of infrastructure and therefore the gas project is the ideal opportunity for the Government to assist in establishing the infrastructure required to develop the many gas fields in this country,'' he said. postcourier.com.pg