By ANDREA R. MIHAILESCU
UPI Energy Correspondent
Tehran to build oil refineries in Asia
Iran is holding talks to construct five refinery projects in Asian countries with a total capacity of 1.1 million barrels per day.
Seyed Kazem Vaziri Hamaneh, Iranian petroleum minister, said there is no timeline for when the projects are expected to be completed.
Iranian firms are planning to construct five refineries in four countries: Indonesia, Malaysia, Singapore and China, the New Straits Times of Malaysia reported.
Seyed Kazem said some of the project details have been finalized, while others are still being discussed.
“There is no specific timetable,” he told reporters after delivering a keynote address on the political and economic scenario facing the energy industry at the 12th Annual Asia Oil & Gas Conference in Kuala Lumpur Monday.
He said the partnerships are “to bring to the Asian countries the synergy for mutual relationships as we provide them with the crude oil.”
The contracts are worth billions. In Indonesia, for example, PT Pertamina and the National Iranian Oil Refinery & Distribution Co. are reportedly proposing to build a $5.3 billion refinery with a 300,000 bpd capacity, the report said.
BP moves forward Gulf of Mexico project
BP is moving forward on the development of its latest deepwater Gulf of Mexico oil and gas discovery Isabela with a subsea tieback to the nearby Na Kika floating production platform, according to media reports.
Transocean’s semi-submersible Deepwater Horizon discovered oil and gas in 6,500 feet of water in Mississippi Canyon block 562.
Because the discovery already lies near the BP-operated Na Kika platform, BP is planning to install subsea lines from Isabela to the Na Kika platform to start production before the end of 2009.
“Isabela is an excellent addition to our portfolio of discoveries in the Gulf of Mexico,” said Dave Rainey, BP’s vice president of Gulf of Mexico exploration.
“It is likely to be tied back to our Na Kika production platform, helping to maximize the value of that infrastructure,” he said.
Argentina denies talks to buy YPF unit
Argentina’s Ministry of Planning said state-owned companies are not holding talks with Spain’s Repsol for the purchase of its Argentinean unit YPF, as reported in the local media.
Repsol is looking for a local partner to buy a stake in YPF. The ministry said the operation is subject to government approval, since Argentina retained a “golden share” when YPF was privatized in the 1990s, and estimated that the deal will be closed in five weeks.
The Spanish oil company wants to sell 25 percent of YPF to an Argentinean investor and another 20 percent in a new share issue on Buenos Aires Stock Exchange.
According to the press, Repsol may plan to consolidate all of its Latin American assets and operations under the YPF division. This would comprise oil and gas fields and refineries in Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador and Venezuela.
Repsol YPF is engaged in exploration and production of oil, natural gas and derivates in Latin America, where it concentrates 50 percent of its assets.
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Closing oil prices, June 12, 3 p.m. London
Brent crude oil: $69.16
West Texas Intermediate crude oil: $65.77
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(e-mail: AMihailescu@upi.com)