Energy Market Outlook: January 2000

Strategic Insights -

Asia's oil market is expected to remain firm at $19 to $23 a barrel in 2000, according to Indonesia's Mines and Energy Minister Susilo Bambang Yudhoyono. Meanwhile, India faces a significant investment of $57.54 billion in its oil refining sector over the next 25 years to meet petroleum product demands. Australia's Woodside Petroleum has acquired interests in the Gulf of Mexico, and Samsung Corporation has won a $55 million hydroelectric dam project in India.

Key Takeaways:

  • Indonesia's oil price is expected to remain firm at $19 to $23 a barrel in 2000, with a budget assumption of $17 to $18 a barrel.
  • India requires $57.54 billion in investment over 25 years to meet petroleum product demands, with a current foreign direct investment (FDI) ceiling of 49 percent for oil refining.
  • The Indian task force on 'India Hydrocarbon Vision 2025' recommends raising the FDI ceiling to 74 percent to meet investment needs.
  • Woodside Petroleum has acquired interests in deepwater exploration acreage blocks in the Gulf of Mexico for $25.6 million.
  • Samsung Corporation will jointly build a 280-megawatt hydroelectric dam in India with an Indian construction firm for $55 million, with a scheduled completion date of 2004.
  • India's hydroelectric dam project is part of a four-stage initiative that will require significant investment and infrastructure development.

Statistics:

  • Oil price expectation in Indonesia: $19 to $23 a barrel in 2000.
  • Budget assumption for oil price in Indonesia: $17 to $18 a barrel.
  • Investment required by India's oil refining sector: $57.54 billion over 25 years.
  • Current FDI ceiling for oil refining in India: 49 percent.
  • Recommended FDI ceiling for India's oil refining sector: 74 percent.
  • Acquisition cost of interests in deepwater exploration acreage blocks in the Gulf of Mexico: $25.6 million.
  • Value of Samsung Corporation's hydroelectric dam project in India: $55 million.
  • Scheduled completion date of Samsung Corporation's hydroelectric dam project: 2004.
  • Capacity of the hydroelectric dam in India: 280 megawatts.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Indonesian Mines and Energy Minister Susilo Bambang Yudhoyono
  • Indian task force on 'India Hydrocarbon Vision 2025'
  • Woodside Petroleum Ltd
  • Samsung Corporation (KSE: 00830)
  • US-based Marathon Oil Company
  • Indian construction firm (unspecified)