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Petroleum industry

Global Energy Market Developments: Key Takeaways

Strategic Insights

— 2 min read

The international energy market has witnessed significant developments, with multiple companies receiving clearance for major projects, announcing new partnerships, and reacting to changes in the market.

Key Takeaways:

  • Shell has received clearance from the New Zealand Commerce Commission for its proposed $1.63 billion takeover of Fletcher Challenge Energy (FCE), subject to Shell disposing of a 10% stake in the Maui field and other assets (WPA, 6 November, p10).
  • Shell has agreed to invest up to $300 million for a 20% stake in the initial public offering (IPO) of CNOOC Limited, a listing vehicle of Chinese state-owned offshore producer CNOOC (WPA, 20 November, p13).
  • The initial public offering (IPO) of CNOOC Limited is expected to raise $1.5 billion to $2 billion, with Texaco, ExxonMobil, and BP expressing interest in taking up strategic stakes (WPA, 20 November, p13).
  • State-owned Petroleum Authority of Thailand (PTT) is targeting a public listing in September next year, with plans to demerge upstream and gas pipeline operations (WPA, 20 November, p13).
  • South Korea has asked refiners to delay cash settlement for prompt crude imports to help support a weak won, a move that has been met with skepticism by analysts (WPA, 9 October, p10).
  • The United States-based Energy Development Company (EDC) is to develop the first ever shallow water and beachside oil development approved by China, alongside Chinese giant Sinopec (WPA, 18 September, p7).
  • Idemitsu, Japan's 800,000 b/d private-sector refiner, has issued shares worth ¥600 million ($5.8 million) to three Japanese banks and raised a total of ¥40 billion to help reduce its ¥1.15 trillion debt (WPA, 21 August, p11).
  • Australia's Petroz has recommended a A$127 million ($65.40 million) cash takeover bid by Italy's Eni, citing pressure to maintain its 8.25% minority interest in the Bayu-Undan liquids project (WPA, 9 October, p9).
  • India has partially rolled back a hike in kerosine and liquefied petroleum gas (LPG) prices, a move seen as a setback for the country's energy liberalisation programme (WPA, 2 October, p10).

Statistics:

  • Shell's proposed takeover of FCE is valued at $1.63 billion.
  • The IPO of CNOOC Limited is expected to raise $1.5 billion to $2 billion.
  • Idemitsu has raised a total of ¥40 billion to help reduce its ¥1.15 trillion debt.
  • Petroz has recommended a A$127 million ($65.40 million) cash takeover bid by Eni.
  • India aims to lift product subsidies on LPG, gasoline, gasoil, jet, and kerosine by April 2002.

Sources:

  • WPA (6 November, p10)
  • WPA (20 November, p13)
  • WPA (18 September, p7)
  • WPA (21 August, p11)
  • WPA (9 October, p9)
  • WPA (2 October, p10)

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