June 3rd, 2006:

Turmoil in South America and other regions sharpens focus on remote ‘discovered and secure’ northern frontier resources

Gary Park

For Petroleum News

The tsunami washing over some of the least predictable oil and gas regions on the planet has managed to lap at the shores of Canada’s Arctic Islands.

The unexpected hostile run Petro-Canada is taking at minnow Canada Southern Petroleum has been directly tied to the turmoil over how far countries such as Venezuela, Ecuador, Bolivia, Peru, Russia, Kazakhstan and various nations in Africa and the Middle East are prepared to go in nationalizing their resources or extracting greater economic “rent.” read more

U.S, Russia trade political shots; Gazprom again delays Shtokman gas project

Ray Tyson

Russia appears to be using its giant Shtokman gas project in the Barents Sea as a bargaining chip to gain U.S. support for its bid to become a member of the World Trade Organization. Caught in the middle of the brouhaha are Shtokman hopefuls and U.S.-based majors ConocoPhillips and Chevron.

ConocoPhillips and Chevron were said to be on the short list of companies being considered to partner up on Shtokman with Russia’s gas monopoly Gazprom. The project includes field development and construction of a gas liquefaction terminal in northern Russia. Other contenders for the Shtokman job are Norway’s Statoil and Norsk Hydro and France’s Total. read more

By CHIP CUMMINS
June 3, 2006; Page A5

Unidentified gunmen kidnapped eight foreign workers from an oil platform about 40 miles off Nigeria’s coast, raising fresh security challenges for the handful of international oil companies working in the region.

Pipeline sabotage, smuggling and militant attacks against oil installations have become commonplace onshore and in the swamps of the country’s oil-rich Niger Delta. But many oil-company executives have said they believe their installations offshore — miles from the restive coast — were more insulated from attack. read more

By REUTERS

NEW YORK (Reuters) – Oil climbed back to $72 a barrel on Friday, reversing a two-day slide, as problems at a handful of U.S. refineries and the kidnapping of foreign oil workers in Nigeria renewed concern about risks to supply.

U.S. crude oil rose $1.71 to $72.05 a barrel by 1810 GMT, having reached as high as $72.14. London Brent gained $1.33 to $70.72 a barrel.

Five oil refineries in Texas and Delaware reported outages since Thursday, most of them due to the impact of foul weather and lightning strikes — ramping up concerns over gasoline supply at the start of the summer driving season. read more

A California state appeals court ruled in favor of the Electronic Frontier Foundation’s (EFF’s) petition on behalf of three online journalists Friday, holding that the online journalists have the same right to protect the confidentiality of their sources as offline reporters do. “Today’s decision is a victory for the rights of journalists, whether online or offline, and for the public at large,” said EFF Staff Attorney Kurt Opsahl, who argued the case before the appeals court last month. “The court has upheld the strong protections for the free flow of information to the press, and from the press to the public.”
Full story, For the full decision in the case [PDF], For more on Apple v. Does read more

By Christine Seib

THE US Government is putting Britain’s £1 billion annual trade with Iran at risk by pressing European banks to withdraw from the country, The Times has learnt.

The Middle East Association (MEA), which represents 75 per cent of British businesses that trade in the region, accused American officials of “mucking up British business”.

Michael Thomas, the director-general of the MEA, said: “The banks are coming under pressure from the US Government and it’s irritating that the Americans are taking this stance because, as far as the UK is concerned, it’s still perfectly legal to trade with Iran and Iran is a major buyer of UK goods. read more

By Percy Zvomuya 

“If Shell have the guts to come to the Ijaws’ land, we won’t just kidnap their workers, now they will disappear,” threatened Joseph Evah, coordinator of the Ijaw Monitoring Group, in the wake of a court judgement against oil giant Shell.

The judgement, which Shell has appealed, ordered the company to pay $1,5-billion to the Ijaw community in the Niger region of Nigeria for environmental damage in the region.

The Ijaw took the case to court after Shell snubbed an order in 2000 by the Nigerian Parliament to pay the community, who have been campaigning against the company’s environmentally unfriendly operations in the oil-rich region. read more

LAGOS (Reuters) – Gunmen abducted eight foreign workers in a night-time raid on an oil rig off the coast of Nigeria on Friday, raising new security fears after a series of militant attacks that cut output from Africa’s top oil producer.

Some 20 to 30 attackers fired shots as they boarded the rig from four speed boats but no one was injured, security sources familiar with the situation said.

“Some unknown persons boarded the rig at 3 a.m.and took eight workers. They are six from the UK, one Canadian and one from the U.S.,” said an executive from one of the companies that operate the Bulford Dolphin rig. He denied reports that eight Nigerians were also abducted in the attack. read more