RPT-UPDATE 2-Russia to sell $29 bln state assets on market

MOSCOW, July 27 (Reuters) – Russia plans to sell $29 billion worth of assets on the open market, a senior government official said on Wednesday, allaying investors fears about the transparency of the biggest privatisation since the 1990s.

The planned asset sale is designed to fill budget holes that Russia is to battle for the next few years.

“We will sell significant stakes in state companies on the market. We plan to keep controlling stakes,” Finance Minister Alexei Kudrin told a press briefing ahead of a government meeting on Thursday, which will debate key budget parameters and privatisation plans.

“(Assets) will be valued publicly, in line with market prices and tenders will be open,” he said. “We are fully ruling out a situation when somebody sells something to someone at an artificially low price.”

He said the government wanted to earn around $10 billion next year from asset sales but did not name the companies that would be auctioned off. The government will meet on Thursday to approve draft budgets for 2011-2013 and asset sales.

If approved, the sale would become Russia’s most ambitious since President Boris Yeltsin’s era, when well-connected tycoons snapped up some of the biggest oil and metals firms at low prices.

Investors have applauded the plan to sell minority stakes in major state firms in the next three years but have said they are keen to see how transparent the process will be and whether foreigners will be allowed to bid.

The plan could help the Kremlin plug budget holes ahead of the 2012 presidential election, which will require the authorities to maintain high social spending to guarantee good approval ratings.

Sources told Reuters over the weekend the government wants to sell minority stakes in firms such as Russia’s biggest oil producer Rosneft (ROSN.MM), lender VTB (VTBR.MM) and oil pipeline monopoly Transneft (TRNF_p.MM). [ID:nLDE66P0S0]

The plan could offer the government an alternative to higher taxation in its battle to reduce budget deficits.

On Tuesday, Kudrin said Russia was unlikely to balance its budget deficit until 2015 and on Wednesday Prime Minister Vladimir Putin said Russia may not be able to reduce the deficit below 5 percent — or $80 billion — this year. [ID:nLDE66R1YA]

The plan ensures Russia will keep control of the firms in a clear signal the Kremlin is not moving away from the resource nationalism it has developed over the past decade of high commodity prices.

The sales plan would undergo a final review as part of budget debates on Sept 7, and then filed to parliament.

Speaking of taxes Kudrin said the government had approved a decision to increase mineral extraction taxes on gas producers by 61 percent from next year.

For a factbox on the proposed asset sales, please click on [ID:nLDE66P1DU]

(Reporting by Gleb Bryanski, writing by Dmitry Zhdannikov, Editing by Lidia Kelly, Ron Askew)

Yemen accuses rebels of kidnapping oil workers

July 10 (Reuters) – Yemen accused Shi’ite rebels on Saturday of kidnapping five oil workers this week and said it had foiled an attempt to blow up an oil pipeline.

Yemen is struggling to curb a separatist movement in the south and cement a ceasefire with Shi’ite rebels in the north, and is under pressure to combat a resurgent al Qaeda wing.

The Interior Ministry said that five employees of a state oil company were kidnapped by the rebels on Thursday.

“The Houthis captured five staff from an oil company in Marib along with their car when they were inspecting fuel stations in the directorate of Barat in al-Jouf province,” it said in a statement.

“The security forces … are using all measures to ensure their release.”

A Houthi source denied any link to the incident, saying the kidnap was a result of a tribal dispute.

In a separate statement, the government said security forces had foiled an attempt to sabotage an oil pipeline in Marib in the northeast of the country. The pipeline is used to transport oil to ports on the Red Sea.

It said that “unknown people” were forced to flee by security guards during the incident. (Reporting by Mohammed Ghobari; Writing by Jason Benham; Editing by Maria Golovnina)

UPDATE 1-Petronas says Newfield pipeline source of oil sheen

July 10 (Reuters) – A production pipeline belonging to the Malaysian unit of independent energy firm Newfield Exploration Co (NFX.N) was the source of an oil sheen spotted earlier off the country’s east coast, state oil company Petronas [PETR.UL] said on Saturday.

A report lodged by Newfield Peninsula Malaysia Inc with the Malaysian authorities had earlier shown it was checking for a possible oil leak off the coast.

Petronas had said on Friday it shut down pipelines at an oil platform after discovering an oil sheen near facilities it shared with Newfield and the Malaysian unit of Exxon Mobil (XOM.N). [ID:nSGE6680H5]

“Initial visual inspection results indicate the pipeline has been damaged by activities of an unidentified marine vessel unrelated to Newfield’s operations,” Petronas said in a statement on Saturday.

“Repair work on the affected pipeline is in progress.”

It said production pipelines belonging to its exploration arm and Exxon Mobil had resumed operation since early Saturday.

In a July 9 report lodged with the Malaysian authorities, Newfield said the Belumut to Tinggi pipeline was shut in on July 6 due to a report of a possible pipeline leak well to the west of the location.

The oil sheen was spotted along the general line of the oil pipeline from Newfield’s East Belumut-A Platform to Tinggi Platform, it said.

“Pressure was observed to be static in pipeline but it was observed to decrease night 8/9 July 2010,” the report said.

The East Belumut field is off Malaysia’s eastern state of Terengganu. (Reporting by Liau Y-Sing; Editing by Alex Richardson/Ruth Pitchford)

CNPC to level ground for Yunnan refinery in October-media

July 9 (Reuters) – State-owned oil company China National Petroleum Corp (CNPC), parent of PetroChina (0857.HK) (601857.SS)(PTR.N), plans to begin leveling ground in October for its first refinery in southwestern Yunnan province, local media reported on Friday.

The proposed 200,000-barrel-per-day (bpd) refinery would be the first main facility to process crude oil from the China-Myanmar crude pipeline, construction of which was officially launched last month and is expected to be operational in 2012 amid a drive to diversify oil imports routes.

“CNPC plans to acquire land from farmers from September and start leveling ground from October,” the vice-mayor of Anning was quoted as saying by the Du Shi Times.

The project would be located in Anning, 32 km west of Kunming, capital of Yunnan province, the report said, adding that early-stage work of the 23 billion yuan ($3.39 billion) refinery was proceeding well.

The China-Myanmar oil pipeline, which helps cut oil cargos’ long detour through the congested Malacca Strait, will have a capacity of 240,000-bpd in its first phase. ($1=6.776 Yuan) (Reporting by Jim Bai and Aizhu Chen; Editing by Chris Lewis)

Chevron’s Utah refinery leaks oil

(Reuters) – Chevron Corp said on Sunday that operations at its 45,000 barrel per day (bpd) Salt Lake City refinery were unaffected by a crude pipeline shut on Saturday due to a leak into a creek that feeds Utah’s Great Salt Lake.

U.S.

The 10-inch (25-cm) pipeline, which carries mid-grade crude to the refinery north of Salt Lake City, was shut on Saturday morning after oil was discovered leaking from it into Red Butte Creek, which is part of a system of waterways feeding Utah’s Great Salt Lake, said a fire department spokesman.

“We’re estimating 500 barrels were spilled,” said Salt Lake City Fire Department spokesman Scott Freitag in a telephone interview.

Temporary dams were built along Red Butte Creek to prevent the crude spilled from spreading further, Freitag said.

Chevron said the pipeline has stopped leaking since it halted the flow of oil through the pipeline on Saturday morning until repairs can be made.

A Chevron spokesman said the company was working to determine the amount of oil released from the leak.

“We have no estimate on how long cleanup will take, but we won’t quit until the job is done,” said Chevron’s Sean Comey in a statement. “We have devoted the necessary resources and people to address the situation.”

(Reporting by Erwin Seba; Editing by Marguerita Choy)

Colonial Pipeline sees no supply problems after fire

June 13 (Reuters) – Colonial Pipeline said it does not expect the early morning fire at its Greensboro, North Carolina, facility to disrupt supplies along the nation’s largest refined oil products pipeline, a spokesman for the company said on Sunday.

“We do not think this incident will disrupt our supplies,” said Steve Baker, a company spokesman. (Reporting by Janet McGurty, editing by Maureen Bavdek)

Air strike kills Yemen mediator, tribes hit pipeline

An air strike in Yemen targetting al Qaeda missed its mark and killed a mediator, prompting members of his tribe to blow up an oil pipeline in clashes that followed, a provincial official said on Tuesday.

Separately, a Yemeni government official said a U.S. couple taken hostage by tribesmen were released on Tuesday, a day after they were seized near the capital Sanaa.

A Yemeni website aligned with the opposition said the strike was carried out by a drone, a weapon that Yemen is not believed to have. U.S. forces have used drones in the past in Yemen, but a U.S. diplomat declined to say if Washington was involved.

The strike could heighten anti-U.S. sentiment and broaden al Qaeda’s appeal among powerful Yemeni tribes, threatening efforts to stabilise a country neighbouring oil power Saudi Arabia and busy international shipping lanes, analysts said.

The botched bombing of a U.S. airliner on Dec. 25, claimed by al Qaeda’s Yemen-based wing, spurred Washington to step up security help to President Ali Abdullah Saleh’s government, which faces grave challenges apart from militancy.

The mediator, seeking to persuade al Qaeda members to surrender, was killed in the pre-dawn strike on his car in the mountainous Maarib province that also killed three other people.

“Jaber al-Shabwani, the deputy governor of Maarib, was killed with a number of his relatives and travel companions in an air strike targeting the Wadi Obeida area, where al Qaeda elements are present,” the provincial official said.

U.S. COUPLE RELEASED

On Monday, armed tribesmen kidnapped two U.S. tourists near Sanaa and demanded the release of a relative jailed over a land dispute that was before the courts.

“The Americans have arrived at the interior ministry building in Sanaa,” a government official told Reuters.

Authorities had set up road blocks and arrested dozens of members of the kidnappers’ families to pressure the abductors.

Another official told Reuters that authorities had promised to look into the kidnappers’ demand.

The air strike provoked clashes between the army and members of Shabwani’s tribe, and the tribesmen attacked the pipeline that ferries crude oil from Maarib, east of the capital Sanaa, to the Red Sea coast, the official said.

Clashes with the mediator’s tribe spread from the countryside to Maarib town, where dozens of tribal gunmen opened fire on government buildings, a local official said.

Security officials said angry tribes blocked a main road to Sanaa, stopping trucks carrying cooking gas and petrol.

“Many of the tribes have become increasingly hostile to the Saleh government, and AQAP (al Qaeda in the Arabian Peninsula) have done a better job than some al Qaeda affiliates elsewhere in making inroads into the local population,” said Shadi Hamid, a deputy director at the Brookings Doha Center.

“There is more of an indigenous character to the group, more of a Yemeni character. So it would not be surprising if this incident feeds into more latent support for AQAP,” he added.

The United States and Saudi Arabia want Yemen, which is trying to end a conflict with Shi’ite rebels in the north while separatist sentiment bubbles over in the south, to focus its efforts on fighting al Qaeda, seen as a greater global threat.

Yemen declared war on al Qaeda after the failed December attack, stepping up air strikes on the group, which has vowed attacks against Western targets in the oil-exporting region.

A statement from a top Yemeni security body expressed sorrow for Shabwani’s death and called him a martyr, without saying who carried out the strike or what type of aircraft was used.

A U.S. diplomat would not discuss the attack. Washington backed Sanaa’s fight against al Qaeda by training Yemeni forces, sharing information and providing equipment, and recognised al Qaeda in Yemen was a threat to both countries, he said.

“So we are working together. The Yemeni forces always take the lead in operations carried out in Yemen using some of that support that we have provided for them through training and information sharing,” the diplomat said.

Asked directly if the United States was involved in the strike, he said: “If you want operation-specific details you need to contact the Yemeni government.”

Yemen and U.S. military targeted al Qaeda figures in Yemen, where Osama bin Laden’s father was born, after the September 11, 2001, attacks. A CIA drone fired a missile that killed al Qaeda’s leader in Yemen in 2002.

The latest strike had likely intended to hit Ayed al-Shabwani, an al Qaeda leader whose farm in Maarib province was the target of a strike in January, the provincial official said. Shabwani is a relative of the mediator who was killed.

Shipping companies said there was no impact on exports from the attack on the pipeline, which ferries crude to the Ras Isa offshore export terminal. Authorities could not immediately reach the affected area.

(Additional reporting by William Maclean in London, and Simon Webb and Luke Pachymuthu in Dubai; Writing by Cynthia Johnston and Firouz Sedarat; editing by Ralph Boulton)

Blast halts Iraq-Turkey oil pipeline flow

An explosion in Iraq’s northern province of Nineveh damaged the Iraq-Turkey oil pipeline and it may take as much as a week to restart exports, Iraqi officials said on Thursday.

Police blamed a bomb planted by suspected Sunni Islamist insurgents fighting to undermine the Shi’ite majority propelled into power after the 2003 fall of Sunni dictator Saddam Hussein.

While overall violence in Iraq has fallen sharply, sectarian tensions were stoked last month after an election that produced no outright winner.

“We are sure now that it was sabotage not a technical failure… The time frame to fix the pipeline and resume pumping oil is about a week,” an official at state-run North Oil Co told Reuters on condition of anonymity. “The pipeline was attacked.”

Nineveh, on the frontline of a potentially explosive dispute over oil, land and power between Kurds in their semi-autonomous northern enclave and Iraq’s majority Arabs, remains a stronghold of insurgent activity, including al Qaeda.

The pipeline from the Kirkuk oilfields to the Turkish port of Ceyhan, which carries around a quarter of Iraq’s exports, was last attacked in December. Technical problems halted the flow of oil in January for several hours.

Iraq’s oil infrastructure is dilapidated after decades of war, sanctions and underinvestment and the U.S. military has in the past said it found no evidence of sabotage, only of metal fatigue, after explosions Iraqi officials blamed on bomb blasts.

COMPLETE STOPPAGE

Iraqi oil in storage at Ceyhan was about 650,000 barrels, a Turkey-based source said on condition of anonymity. Another shipping source put stores at 300,000 barrels.

One shipping source in Ceyhan said the flow of oil stopped completely at 0400 (0100 GMT) on Thursday, adding that there was one vessel waiting to load 1 million barrels of Iraqi crude.

“There have been technical problems at pump stations on the Turkish side of the pipeline. The flow has been intermittent for a while… I’ve no idea when it will start again,” the source said.

The blast, which occurred south of Mosul in al-Hadhar district, 280 km (175 miles) north of Baghdad, made a hole in the pipeline, a police source told Reuters.

The pipeline has a capacity of 1.6 million barrels per day and typically pumps 500,000 bpd.

Iraq’s oil exports fell in March to 1.79 million bpd from 2.083 million bpd the month before, including an average of 1.380 million bpd from the southern oil hub of Basra and 410,000 bpd from the northern oilfields around Kirkuk.

Iraq’s oil infrastructure has come under attack frequently since 2003, hampering Iraqi efforts to boost lacklustre oil production and exports above pre-invasion levels. The attacks have eased considerably, however, as the sectarian bloodshed receded, in particular in the Shi’ite south where most of Iraq’s crude is produced.

Iraq is now on the verge of a major expansion of its oil industry after signing 10 deals with international oil firms to develop some of its biggest oilfields, and boost its capacity to Saudi levels of 12 million bpd from 2.5 million bpd now.

(Additional reporting by Mustafa Mahmoud in Kirkuk, Suadad al-Salhy in Baghdad, Ayla Jean Yackley in Istanbul and Simon Webb in Dubai; Writing by Rania El Gamal and Mike Christie; Editing by Keiron Henderson)

Kazakhstan and China leaders pledge stronger cooperation

Beijing – Kazakhstan President Nursultan Nazarbayev met with China’s top legislator Wu Banguo Thursday, pledging to step up bilateral cooperation, state media reported.

Wu, chairman of the Standing Committee of China’s National People’s Congress, said relations between the two countries were at an all-time high and that China would work with Kazakhstan to enhance cooperation in fields such as energy, transportation, mineral resources development and infrastructure construction, the Xinhua news agency reported.

Nazarbayev, who kicked off a five-day visit to China Wednesday, also met with Chinese Vice Premier Wang Qishan.

“With the global financial crisis still spreading, the two countries should work jointly to tackle challenges,” Wang said.

Nazarbayev responded by saying that Kazakhstan is supportive of entrepreneurs carrying out projects beneficial to both countries and business cooperation would also prove a push for improved state-to-state relations.

Nazarbayev also reaffirmed a commitment to fight terrorism in the region, China Radio International reported.

Kazakhstan and China share a border of more than 1,700 kilometres and have previously cooperated on a Kazakhstan-China oil pipeline, which is already in operation, and a natural gas pipeline still under construction.

Nazarbayev is to attend a regional economic summit, the Bo’ao Forum for Asia, in Hainan from Sunday through Tuesday.(dpa)

Shell shuts flowstations after fire in south Nigeria

LAGOS, April 12 (Reuters) – Royal Dutch Shell (RDSa.L) said on Sunday it had shut down flowstations feeding into its Trans-Niger oil pipeline in southern Nigeria as a precautionary measure after a fire at the Bomu manifold.

“We have shut down all flowstations that feed into the pipeline. It is a long stretch of pipeline that conveys production from (Shell’s Nigerian joint venture) SPDC and third parties,” Shell spokesman Precious Okolobo said.

He said he could not immediately confirm whether production had been affected. The cause of the fire was not known.

(For full Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ )

(Reporting by Nick Tattersall; editing by Mike Nesbit)

Russia’s Putin defends budget priorities, including oil pipeline

Moscow – Russian Prime Minister Vladimir Putin outlined a list of 2009 budget priorities to the Duma, the lower house of parliament Monday, including plans for the completion of an oil pipeline to China this spring.

The pipeline, made possible in the midst of a financial crisis thanks to a 25-billion-dollar loan from China, is supposed to deliver 15 million tons of oil a year, for a total of 300 million tons from 2010 through 2030.

Until now, Russia has only been able to export 9 million tons of oil a year to China via railroad. Russia has stated several times that it wants to find new markets for its oil aside from the European Union.

During his statement, Putin also defended plans to boost spending on defence, interior security and economic development over the last year. The move comes as income is supposed to drop by 40 per cent due to a fall in the price of raw materials.

“We have to do more than just hold on to our key industries,” he said. “We have to speed up the move to innovative development.”

The budget states that any shortfalls will be made up out of foreign currency reserves

Russia’s Putin defends budget priorities, including oil pipeline

Moscow – Russian Prime Minister Vladimir Putin outlined a list of 2009 budget priorities to the Duma, the lower house of parliament Monday, including plans for the completion of an oil pipeline to China this spring.

The pipeline, made possible in the midst of a financial crisis thanks to a 25-billion-dollar loan from China, is supposed to deliver 15 million tons of oil a year, for a total of 300 million tons from 2010 through 2030.

Until now, Russia has only been able to export 9 million tons of oil a year to China via railroad. Russia has stated several times that it wants to find new markets for its oil aside from the European Union.

During his statement, Putin also defended plans to boost spending on defence, interior security and economic development over the last year. The move comes as income is supposed to drop by 40 per cent due to a fall in the price of raw materials.

“We have to do more than just hold on to our key industries,” he said. “We have to speed up the move to innovative development.”

The budget states that any shortfalls will be made up out of foreign currency reserves.

British delegation heads for Iraq to explore aid and investment

London – A British business delegation led by Business Secretary Peter Mandelson left for Iraq Monday to explore investment opportunities during a one-day trip to Baghdad and the southern port of Basra.

Mandelson and members of the 23-strong delegation were due to have talks with Iraqi Prime Minister Nuri al-Maliki, who is expected to visit Britain, France and Russia during a European tour later this month.

“Iraq today is a place of opportunity. Britain will stand by Iraq in peace as we have in conflict to help Iraqis realize that opportunity,” a statement released by the Department for Business and Enterprise in London said.

“British business expertise and skills can play an important role in the development of the Iraq economy and the UK Government will do all it can to make a positive contribution to the economic future of Iraq.”

The delegation includes representatives from the healthcare, construction, transport, energy, water, banking, and security sectors.

Mandelson is expected to announce that the British firm, Maritime and Underwater Security Consultants, has won a
200-million-dollar contract to clear and map the seabed off the Al Faw peninsula as part of a project to build an underwater oil pipeline.

The visit also coincides with the launch of a banking software system developed by the British company, B-Plan Information Systems, for Iraq’s biggest bank, the Rafidian Bank.

Sonia to dedicate country’s longest Mundra-Delhi oil pipeline to nation today

Jaipur, Feb 3 (ANI): Congress President Sonia Gandhi will dedicate the 1,054-km Mundra-Delhi oil pipeline to the nation at Bagru town near Jaipur today.

It is project of Hindustan Petroleum Corporation Ltd. (HPCL) and was built in just 36 months at a cost of 1,757 crore rupees. It is the country’s longest oil pipeline.
The pipeline passes through eleven districts spread over Gujarat, Rajasthan and Haryana.

The project will have tap-off points at Palanpur, Ajmer, Jaipur, Rewari and Delhi (Bahadurgarh).

The 316-km Mundra-Palanpur section of the pipeline will have a capacity of transporting 5.8 million tons of liquid products like petrol, diesel, kerosene and jet fuel per annum.

The 336-km Palanpur-Ajmer section will have 5.7 million tons per annum (mmtpa) capacity, 120-km Ajmer-Jaipur sector will have a capacity of 5.2 mmtpa, 171-km Jaipur-Rewari will have 4.6 mmtpa capacity and 65-km Rewari-Delhi section will have 4.2 mmtpa capacity.

The pipeline will save transportation cost as compared to other modes. (ANI)