Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (43227)	4/26/1999 12:54:00 AM
From: The Ox	Respond to of 95453

I also think that the buying opportunities won't last very long. I think there will be plenty on the sidelines that will be waiting for the big dip that never happens. Slider quoted an analyst in one of his posts that basically said, UNOCAL is up 40% but nothing fundamental has happened to support such a move.......what about the 70% rise in crude prices? I would say that's pretty fundamental! But hey, WDIK? The market usually tries to fool the most people at the same time. I have a sneaking suspicion that this time, those waiting for a huge dip won't find one large enough.... A 10% drop in oil prices should not surprise anyone. Oil prices holding, or rising will surprise a bunch of folks... JMO,Michael

To: BigBull who wrote (43227)	4/26/1999 8:01:00 AM
From: diana g	Read Replies (2) \| Respond to of 95453

FOCUS-Kuwait MPs give cautious support to oilfields opening biz.yahoo.com Monday April 26, 5:27 am Eastern Time By Ashraf Fouad KUWAIT, April 26 (Reuters) - Kuwait's controversial plan to open oilfields to major foreign companies gained some support in principle in parliament but MPs warned against foul play in awarding deals and renewed foreign ''hegemony'' on their sole source of wealth. The debate in parliament of what MPs called an ''historical crossroad'' -- allowing majors to participate in oil production some 20 years after the tiny state completed the nationalisation of its oil sector -- is expected to resume on Saturday. Kuwait Oil Minister Sheikh Saud Nasser al-Sabah assured MPs in a four-hour debate on Saturday that the project did not violate constitutional clauses which ban foreign ownership of oil reserves, direct foreign investment in natural resources or creating a monopoly. ''I stress that there is no hegemony...because the era of hegemony has passed,'' Sheikh Saud responded in parliament to fears that foreign firms might use the new policy to control the country's huge oil wealth. He reminded MPs that oil giants like fellow OPEC members Saudi Arabia and Iran were opening up to majors. Kuwait holds just under 10 percent of proven world oil reserves which can last it more than 100 years at recent production levels of under two million barrels per day (bpd). Kuwait also boasts a low production cost of around $1 a barrel. Sheikh Saud repeatedly said in parliament that under the plan, which does not use a production sharing formula, foreign partners would not own any oil reserves but rather forge operational services agreements in return for ''specific fees.'' The ''Kuwait Project'' plan envisages a $7 billion first stage investment by foreign oil firms in Kuwait's northern fields to double their output to 900,000 bpd. The foreign partners would also be obliged to build an oil export terminal and a city close to the border with former occupier Iraq. But several MPs, including some who supported the general aims of the plan, urged Sheikh Saud to put an end to conflicting constitutional interpretations and present parliament with a draft law which would govern the entire process. Sheikh Saud later told reporters ''I have no serious problem with this. If they want it by legislation, then so be it. But we should not delay the project'' while parliament debates the plan which the minister feels does not need the passing of a new law. As exchanges heated up, pro-government MPs twice tried to stop the debate on Saturday by proposing to send the discussion behind the closed doors of the finance committee, but they narrowly lost the vote. ''I think the discussion on the whole was positive. The project was supported by many deputies but the issue of whether a law is needed or not appears to be the sticky one now,'' said a senior executive who followed the debate. Sheikh Saud told reporters Kuwait was ''pushing hard'' to send out requests for proposals for the project ''hopefully in the next 30 days, maximum 60 days....'' Kuwait has completed the pre-qualification stage. Some MPs rejected Sheikh Saud's argument that Kuwait could only develop northern fields as part of a plan to reach a production capacity of three million bpd by 2005 from a current 2.4 million by inviting foreign firms with advanced technology. Some stressed that awarding upstream deals should be well-governed under a strict tenders system and new measures should be approved to guarantee that Kuwaitis in general, not just a certain group of influential Kuwaitis, benefited by becoming local agents for the potential foreign oil partners. Kuwaiti officials have said that the presence of majors from world powers like the United States, Britain and France in areas close to the border with former occupier Iraq would further boost the interest in maintaining the tiny state's security. --------------------------------------------------------------------------------