China battles large oil slick after pipeline blast

July 19 (Reuters) – Chinese authorities are battling to contain a 50 sq km oil slick after two crude oil pipelines exploded in the northeastern port of Dalian, state media reported on Monday.

Hundreds of firefighters battled for more than 15 hours to extinguish the blaze that started late on Friday when a pipe transporting crude oil from a ship to a storage tank blew up, causing a second pipeline nearby to explode. [ID:nTOE66G007]

There were no casualties, but state television said oil had contaminated the ocean off the port city in Liaoning Province.

The storage facility is jointly owned by Dalian port and China’s top oil company, China National Petroleum Corp (CNPC).

Workers are using skimmers and dispersants to break up the oil slick and stop it spreading, the official China Daily said. The pollution is concentrated about 100 km (62 miles) offshore.

“By Sunday evening, about 7,000 meters of floating booms had been set up and at least 20 oil skimmers were working to clean the spill,” the newspaper quoted local officials as saying.

There are no residents within 3 km (1.8 miles) of the affected site, and little “marine farming”, the report added.

The Xingang oil storage site, where the explosion happened, is home to one of the country’s first government-held emergency crude stockpiles.

It is also a transfer spot for two nearby major refineries, Dalian Petrochemical Corp and West Pacific Petrochemical Corp (WEPEC), both operated by PetroChina (0857.HK) with a combined crude processing capacity of 600,000 barrels per day.

It was not immediately clear if the spill caused suspensions of new cargo offloadings at the port, oil traders said.

The blast happened when a Liberian-flagged tanker was off-loading oil, the China Daily said.

The cause of the blast is under investigation, and CNPC, the parent of PetroChina (PTR.N)(0857.HK), said monitoring of the air and sea environment had been stepped up in the affected areas.

The incident has drawn the attention of top Chinese officials, including President Hu Jintao, Premier Wen Jiabao and security chief Zhou Yongkang, who all issued statements and instructions during the blaze. (Reporting by Ben Blanchard and Chen Aizhu, editing by Jonathan Thatcher)

China’s CNPC seeks to contain oil spill after pipe blast

(Reuters) – China’s largest oil company, China National Petroleum Corp (CNPC), sought to contain ocean pollution and other impacts from an explosion of two crude oil pipelines in the northeastern port of Dalian, state media reported on Sunday.

Hundreds of firefighters battled for more than 15 hours to extinguish the blaze that started late on Friday when a pipe transporting crude oil from a ship to a storage tank blew up, causing a second pipeline nearby to explode.

There were no casualties, but state television CCTV reported that oil had contaminated a 50 sq km area of the ocean off the port city in Liaoning Province.

Xinhua, citing company officials, said a valve had been closed and oil had stopped leaking into the sea, adding that the spill area had been “fenced off and contained.”

But it was not immediately clear how much oil had leaked into the sea.

Calls to the company on Sunday went unanswered.

CNPC, the parent of PetroChina, said that monitoring of the air and sea environment had been stepped up in the affected areas.

The incident drew the attention of top Chinese officials, including President Hu Jintao, Premier Wen Jiabao and security chief Zhou Yongkang, who all issued statements and instructions during the blaze.

The cause of the blast was under investigation.

(Reporting by Ken Wills; Editing by Jeremy Laurence)

China’s CNPC seeks to contain oil spill after pipe blast

July 18 (Reuters) – China’s largest oil company, China National Petroleum Corp (CNPC), sought to contain ocean pollution and other impacts from an explosion of two crude oil pipelines in the northeastern port of Dalian, state media reported on Sunday.

Hundreds of firefighters battled for more than 15 hours to extinguish the blaze that started late on Friday when a pipe transporting crude oil from a ship to a storage tank blew up, causing a second pipeline nearby to explode. [ID:nTOE66G007]

There were no casualties, but state television CCTV reported that oil had contaminated a 50 sq km area of the ocean off the port city in Liaoning Province.

Xinhua, citing company officials, said a valve had been closed and oil had stopped leaking into the sea, adding that the spill area had been “fenced off and contained”.

But it was not immediately clear how much oil had leaked into the sea.

Calls to the company on Sunday went unanswered.

CNPC, the parent of PetroChina (PTR.N)(0857.HK), said that monitoring of the air and sea environment had been stepped up in the affected areas.

The incident drew the attention of top Chinese officials, including President Hu Jintao, Premier Wen Jiabao and security chief Zhou Yongkang, who all issued statements and instructions during the blaze.

The cause of the blast was under investigation.

(Reporting by Ken Wills; Editing by Jeremy Laurence)

Goldman cuts India’s HPCL to neutral

July 15 (Reuters) – Goldman Sachs said on Thursday it had downgraded Indian refiner Hindustan Petroleum Corp (HPCL.BO) to “neutral” from “buy”.

“Following a sharp rally in the state-owned oil stocks after commencement of fuel pricing reforms, we find the risk-reward for our conviction ideas less compelling than before,” it said in a note.

Goldman also removed Bharat Petroleum Corp (BPCL.BO), and Oil & Natural Gas Corp (ONGC.BO) from its conviction list, but retained a “buy” on these stocks. (Reporting by Ami Shah)

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)

GSPC plans overseas exploration arm – report

State-run Gujarat State Petroleum Corp (GSPC) plans to form an overseas exploration arm in the next two to three years, a Press Trust of India report in the Economic Times newspaper said on Monday.

“We are likely to start an upstream overseas arm in the next two to three years. The overseas arm will look after our international exploration activities within the group,” the news agency quoted GSPC Managing Director Tapan Ray as saying.

The report said the GSPC currently has 11 blocks in four countries.

(Writing by Mayank Bhardwaj)

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Kuwait sees $9 bln China refinery deal by year-end

DUBAI, March 1 (Reuters) – Kuwait expects to receive approval to develop a $9 billion refinery in China by the end of the year, a Kuwaiti oil executive said on Monday.

In remarks carried by state news agency KUNA, Kuwait Petroleum Corp’s (KPC) chief executive Saad Al-Shuwaib said the project’s investors were still hoping to commission the 300,000 barrels per day (bpd) refinery by 2013.

“We expect to obtain final approval … by the end of the year,” Shuwaib told KUNA.

The project has suffered years of delays. After initial approval in 2006, it has yet to receive Beijing’s final nod.

OPEC-member Kuwait said in September it hoped to get final approval from China in the first quarter, after which it would finalise the partners. [ID:nLS214007]

Kuwait will supply all the crude to the refinery and produce one million tonnes of ethylene per year.

State-owned KPC and Sinopec 60028.SS each hold a 50 percent stake in the joint venture, with KPC planning to give 20 percent of its share to international partners, it has said.

KPC was in talks with several international companies, Shuwaib said.

BP Plc (BP.L) was linked with the project in 2007, but in 2008 appeared to be out of the running when Kuwait shortlisted Royal Dutch Shell (RDSa.L) and Dow Chemical Co (DOW.N) as potential partners for refining and petrochemicals respectively. Kuwait said in September it had revived talks with BP. (Reporting by John Irish; editing by James Jukwey)

Gujarat plans to build 1460 km gas pipeline

Gandhinagar, June 30 (IANS) The Gujarat government is planning to build a 1,460-km pipeline for the transportation of gas from the Krishna-Godavari (KG) fields off the Andhra Pradesh coast to other parts of the country.

The state government has submitted a proposal in this regard to the Petroleum and Natural Gas Regulatory Board (PNGRB), a senior official in the department of energy here said.

The proposed pipeline, from Mallavaram in Andhra Pradesh and to Bhilwara in Rajasthan, will transport gas from the fields of Gujarat State Petroleum Corp Ltd (GSPCL).

The pipeline will pass through major cities like Warangal, Amaravati, Nagpur, Bhopal, Indore, Udaipur and Godhra in Gujarat, the official said.

GSPCL, which won the KG exploration block in 2003 through a competitive bidding, has so far drilled 15 wells, out of which 11 wells are discovery wells.

Three wells have shown no gas flow and one is yet to be tested, the official said.

Iran nees 200 billion dollars investments for oil and gas projects

Nicosia, May 16 (ANI): Iranian First Vice President Parviz Davoudi has said that his country will need investments amounting to 200 billion dollars in its oil and gas sectors over the next five years, while total investments in the coming decade will total 500 billion dollars.

Speaking to a group of businessmen in Tanzania, Davoudi said that Iran’s political and economic stability has turned the country into an ideal destination for foreign investors.

He stressed that Iran is one of the most stable countries in the Middle East.he Iranian Vice-President has recently focused his attention to attracting foreign investments in Iran’s oil and gas industries in visits to a number of countries including China.

Speaking in China’s Hainan Province, Davoudi said that improving energy cooperation with China was one of Iran’s priorities, adding that the country’s huge oil and gas reserves would create great investment opportunities for Chinese firms.

China is already one of Iran’s major trade partners, while the trade volume between the two countries is estimated at 24 billion dollars. Iran currently provides 13 per cent of China’s oil needs and is a major supplier of liquefied natural gas (LNG) to China.

In the latest energy deal between the two countries, a consortium of three Chinese companies and the National Iranian Oil Company (NIOC) signed a 3.3 billion dollars deal in March to produce LNG in the Iranian South Pars gas field.

In January, the NIOC and China’s National Petroleum Corp (CNPC) signed a 1.7 billon dollars deal for the development of Iran’s North Azadegan oil field, which has estimated reserves of six billion barrels of oil.

In 2007, Iran signed a 2 billion dollars deal with China’s Sinopec to develop the Yadavaran oilfield. (ANI)

Singapore Hot Stocks-Singapore Petroleum falls on lower crude

SINGAPORE, April 21 (Reuters) – The benchmark Straits Times
Index .FTSTI fell 2.99 percent as of 0235 GMT on Tuesday.

The following stocks were on the move:

** SINGAPORE PETROLEUM CORP FALLS ON LOWER OIL PRICE **

Shares of Singapore Petroleum Corporation (SPC) (SPCS.SI)
fell as much as 7.8 percent on Tuesday as investors ignored its
better-than-expected quarterly earnings and sold the stock
after crude oil fell nearly 9 percent overnight to $46 a
barrel.

“SPC’s current share price implies overly-optimistic
refining margin assumptions, which we opine would be difficult
to achieve given the challenging outlook,” DMG and Partners said
in a report.

The Singapore refinery and oil exploration firm posted on
Monday a 44 percent drop in first quarter net profit to S$56
million ($37 million) due to losses from exploration, beating
consensus estimates for earnings of around S$34 million.

Oil rig builders Keppel Corp (KPLM.SI) and Sembcorp Marine
(SCMN.SI) were down 2.9 percent and 3.3 percent, respectively.

0235 GMT
(Reporting by Laurence Tan; Editing by Kevin Lim)

CNPC plans to issue China’s first dollar-bond

SHANGHAI, April 20 (Reuters) – China National Petroleum Corp plans to issue a $1 billion three-year floating-rate bond in the interbank market soon, the nation’s first dollar-denominated issue by a non-financial institution in China’s interbank market, several sources told Reuters on Monday.

CNPC, the parent of PetroChina (601857.SS)(0857.HK), has registered dollar-denominated bill issuances of up to $3 billion with the National Association of Financial Market Institutional Investors (NAFMII), the sources said.

“Once the registation process with the industry association has been completed, issuance in the interbank market will start very soon,” said one of the sources.

An official at NAFMII, who was contacted by telephone by Reuters, declined to comment on CNPC’s issue but said information related to all bond registrations would be posted on NAFMII’s website.

The state-run oil firm said on Friday it had entered a $5 billion financing deal with Kazakhstan’s state oil company. [ID:nPEK11166]

($1 = 6.83 yuan)

(Editing by Jacqueline Wong)

Great Offshore’s AHTS to earn $32 mln for 2 years

Great Offshore Ltd said on Thursday its anchor handling tug supply vessel (AHTS) will earn $32 million from Gujarat State Petroleum Corp under a contract for 2 years.

Since the vessel was bought, it has been operating in the spot markets in and around South East Asia, the company said in a statement to the Bombay Stock Exchange.