October 22nd, 2007:

City & Business
Briefing: WEEK AHEAD
Monday 22 October 2007

OIL majors BP and Royal Dutch Shell are expected to report sharp falls in third-quarter profits this week. Both have suffered problems, with costs rising, output falling, a weaker dollar and tighter profit margins in refining overcoming the positive effect of soaring oil prices.

BP chief executive Tony Hayward has teed the City up for gloom. In a leaked memo to staff he warned results would be dreadful. Shell’s performance is expected to have been only a little better. read more

Daily Champion (Lagos)
22 October 2007
Napoleon Ehiremen
Warri

SHELL Petroleum Development Company (SPDC), has declared that there may be imminent power outage in the country following the shutting down of its gas plant at Utorogun, Ughelli South local government area of Delta State due to pipeline fire allegedly by vandals.

SPDC raised this alarm at the weekend in Warri as another fire disaster was experienced at the Utorogun less than one week after a similar incident caused by a third party interference.
 
Last weekend’s fire outbreak would be the second in a week at Utorogun community, forcing the company to shut down operations at its major gas plant which contributes largely to power supply to the National Grid. read more

By REUTERS
Published: October 22, 2007
Filed at 1:25 p.m. ET

ABUJA (Reuters) – All seven foreign hostages seized by gunmen from an offshore Nigerian oil field were released on Monday after two days in captivity, a state government spokesman said.

The attack on Shell’s EA field was the first big raid on an oil facility since President Umaru Yar’Adua took office in May and authorities are working hard to ensure it does not derail a nascent peace initiative in Africa’s top oil producing region. read more

Monday, October 22, 2007

WASHINGTON — The U.S. military has reported that Iran has smuggled advanced surface-to-air missiles into Iraq for the purpose of downing U.S. combat aircraft.

Officials said Iran has transported man-portable SAM systems to Shi’ite allies in Iraq. They said some of the missiles have already been fired at U.S. Army helicopters.

“It’s a real concern, and it’s something that we’re dealing with,” U.S. Army Col. Daniel Shanahan said. “Right now we’ve got the best systems in the world, and we’ve got technology behind us.” read more

By LAUREN VILLAGRAN
The Associated Press
Saturday, October 20, 2007; 6:49 AM

NEW YORK — While Americans gape wide-eyed as oil passes $90 a barrel, countries with stronger currencies haven’t felt the same sticker shock: the rapidly falling dollar has provided a de facto discount.

Or it did. That was until oil’s 30 percent surge since late August eroded what small benefit holders of euros, British pounds, Indian rupees and other currencies enjoyed from the dollar’s decline over the same period. read more

22 Oct 2007 | 07:47 AM ET

LONDON (Thomson Financial) – Oil was trading lower midday as the market continued to correct from last week’s highs, with investors largely opting to cash in their gains amid a decline in the European equity markets this morning. Fears that slowing economic growth could cut demand for oil are also weighing on the market after the IMF said this weekend that recent turmoil in the financial markets could moderate expansion. Traders shrugged off news that the conflict between Turkey and Kurdish rebels in northern Iraq had escalated into violence over the weekend, with tensions in the region already largely priced into the market. However the spat, plus continued weakness in the US dollar — in which oil futures are denominated — and fears supply will fail to keep up with demand over the winter are putting a floor in prices, analysts said. read more

Mon Oct 22, 2007 10:01am BST 

MOSCOW, Oct 22 (Reuters) – Russia-focused, London-listed oil company Sibir Energy Plc (SBE.L: Quote, Profile, Research) said on Monday its joint venture with Royal Dutch Shell (RDSa.L: Quote, Profile, Research) in west Siberia exceeded a landmark production level of 100,000 barrels per day.

“Today’s announced 100,000 bpd production rate at Salym, a month ahead of schedule, represents… a major milestone for the project,” Sibir’s CEO Henry Cameron said in a statement. read more

22 October 2007

Shell has been playing a prominent role at the World Energy Chemicals Exhibition and Conference now being held in Kuwait, one of the largest energy forums in the Middle East.

On the first day of the conference, which runs from 22-25th October, Shell was represented by two keynote speakers, Dr. John Barry, Vice President Unconventional and EOR and Dr. Zara Khatib, Manager for Technology Deployment in the Middle East region.

Both Dr. Barry and Dr. Khatib used the conference as a platform to discuss various approaches that Shell has undertaken to tackle world energy challenges. Dr. Barry illustrated the potential alternatives to energy resources and some of the solutions to extract these unconventional energy sources. Dr. Khatib gave a technical commentary on Shell’s experience to turn such challenges into opportunities is supported by Shell’s own global experience and success in the energy field. read more

By Benoit Faucon
Last Update: 5:20 AM ET Oct 22, 2007

LONDON (MarketWatch) — A Royal Dutch Shell PLC executive and bankers said this week that they had not been made aware of any current interest in BG Group PLC Group PLC undermining speculation that the Anglo-Dutch major wants to buy the U.K. gas producer.

BG shares have risen 7.2% since an Oct. 8 Brazilian press report said Brazil’s state-controlled oil company Petroleo Brasileiro SA or Petrobras, and Shell had held talks to buy the gas company. BG shares closed Friday in London at 879.5 pence, down 1.9%.
Though the report said the discussions had faltered, traders speculated this week that they were ongoing. All three companies have declined to comment. read more

By Fred Pals and Eduard Gismatullin

Oct. 22 (Bloomberg) — Exxon Mobil Corp., Royal Dutch Shell Plc and BP Plc may report the first profit decline in five years after natural gas prices and earnings from making gasoline dropped.

Exxon Mobil, the world’s biggest oil company, probably will say third-quarter net income fell 8.3 percent to $9.6 billion, based on the average of analyst estimates compiled by Bloomberg. Shell’s profit excluding one-time items dropped 21 percent to $5.58 billion, according to the median analyst estimate. BP’s earnings on the same basis may fall 12 percent to $3.98 billion. read more

The Associated Press
Published: October 22, 2007

ABUJA, Nigeria: Seven oil workers who were kidnapped from an offshore oil field in the Niger Delta were released Monday after two days in captivity, police said.

The workers — three foreigners and four Nigerians — were seized Saturday night after gunmen in more than 30 speedboats attacked EA field, operated by Royal Dutch Shell. It was the first major attack since the president began a peace process in the region five months ago.

“Yes, they have been released,” Bayelsa state police spokesman Inyebom Inidong told The Associated Press. He had no further details. read more

Contracts totalling more than US$ 10 billion have been awarded to Russian companies under the Sakhalin II Project, project operator Sakhalin Energy Investment Co Ltd announced this week. “This outstanding event clearly demonstrates the company’s adherence to the principle of high levels of involvement of Sakhalin, Far Eastern and Russian companies in the Project implementation,” a company press-release said.

The press-release added, “starting in 1996, the Russian Federation companies’ activities have totalled to 191 million man-hours, which is 80% of the total number spent on the Project, and 9.7 million tonnes of Russian materials, that equals 91% of the total volume of materials. At peak this year the project has employed some 20,000 Russians.” read more

By Upstream staff

ExxonMobil is blocking the expansion of the Kazakhstan’s share in the Kashagan oilfield, stalling talks between the Kazakh government and the Eni-led AgipKCO consortium which is developing the Caspian Sea field, according to Russian media reports.

The Interfax news agency quoted unidentified sources as saying all other foreign members of the AgipKCO consortium had agreed on a preliminary deal which would see Kazakh state-run company KazMunaiGaz raise its stake in the project from its current 8.33% holding. read more

VICTORIA THOMSON
 
A HEAVYWEIGHT week for corporate results will test the resolve of investors this week, with BP and GlaxoSmithKline among those due to provide updates.

Despite a run of record oil prices since mid-September, BP and Royal Dutch Shell are both expected to unveil lower profits after a tough quarter for the oil majors. They report after a warning from US oil giant Chevron, which said that third-quarter profits would slip from record levels achieved earlier this year.

Hargreaves Lansdown equities analyst Keith Bowman said: “Profit margins in the refining arena have been under pressure, whilst movements in currency markets have also proved unhelpful.” read more

Vanguard (Lagos)
22 October 2007

By Emma Amaize, Hector Igbikiowubo, Samuel Oyadongha & Emma Arubi
Warri

No fewer than 300 militants, armed with sub-machine guns, explosives and other sophisticated guns, and moving in about 30 speedboats, Saturday night, invaded the EA oil field, a Shell Petroleum Development Company (SPDC) facility at Amatu, Ekeremor Local Government Area of Bayelsa State, overpowered the military men watching over and abducted four Nigerian and three expatriate oil workers – an American, Croatian and a Russian. read more

By Peter Marsh
Published: October 22 2007 03:00 | Last updated: October 22 2007 03:00

Craig Venter, the DNA researcher, has lofty ambitions for Synthetic Genomics, the US company he set up two years ago on the back of a scientific career in which he helped decipher the human genome.

“Within the next five years we are aiming to create products with trillion-dollar markets that use a series of novel biochemical processes to replace the products of the petrochemical industry,” he says.

Mr Venter is a leader in the field of synthetic biology, in which genetic fragments of plant or animal cells are manipulated to develop new materials. read more

By MATT CHAMBERS
October 22, 2007; Page C6

The wagering over $100 oil has begun in earnest.

Oil prices, which rose briefly above $90 a barrel Friday, are more likely to head toward $100 than $80 in the next month, according to the number of bets placed by options traders on the New York Mercantile Exchange.

The large number of options held to buy crude at $100 a barrel could also act as a pull on prices toward that level.
 
A breach of $100, long deemed a far-fetched notion, would bring the price of oil toward $101.70, its inflation-adjusted cash-market peak hit in April 1980, when the Iranian revolution and the outbreak of the Iran-Iraq war sent oil prices soaring. read more

Associated Press
October 21, 2007 12:38 p.m.

LEESBURG, Va. — The U.S. and other nations will not allow Iran to obtain a nuclear weapon, Vice President Dick Cheney said Sunday.

“Our country, and the entire international community, cannot stand by as a terror-supporting state fulfills its grandest ambitions,” Mr. Cheney said in a speech to the Washington Institute for Near East Studies.
 
He said Iran’s efforts to pursue technology that would allow it to build a nuclear weapon are obvious and that “the regime continues to practice delay and deceit in an obvious effort to buy time.” read more

Associated Press
October 22, 2007

LAGOS, Nigeria — Gunmen in speedboats attacked an offshore oil field in the Niger Delta, kidnapping three foreign workers and four Nigerians, according to Royal Dutch Shell PLC officials.

The men were taken after a three-hour gunfight at the EA field, operated by Shell, based in The Hague, a company spokesman in Nigeria said.

The foreigners are a Briton, a Croat and a Russian.

The EA field has been closed since February 2006 but had been due to resume operations by the middle of next year. read more

Last Updated: 1:19am BST 22/10/2007

A guide to company results and meetings, and economic statistics

Tuesday October 23

• BP is expected to report a more than 30pc fall in third- quarter earnings due to a decline in production and weak gas prices. Analysts forecast BP, which kicks off the quarterly earnings season for the European oil sector, to publish a clean net profit, which strips out non-operating items, of between $3.64bn and $4.22bn. But analysts believe this quarter will mark a low point in BP’s operational and financial performance, with 2008 seen as a period of solid recovery following the reforms being introduced by Tony Hayward, the new chief executive. read more

Mon 22 Oct 2007
RUSSELL JACKSON
 
A BRITISH man has been kidnapped in Nigeria, the Foreign Office confirmed yesterday.

A spokesman said it was aware of an incident but had no more details at present.

Reports from the west African state said gunmen in speedboats attacked an offshore oil field in the volatile Niger Delta.

Seven people – four Nigerians and three foreign workers, including the Briton – were kidnapped.

Olav Ljosne, a spokesman for Shell in Nigeria, said the men were taken after a three-hour gunfight at the EA field, operated by Royal Dutch Shell. read more