WASHINGTON, March 10 (UPI) -- Jersey Central Power & Light's (JCP&L) President Steve Morgan said March 2 that the company is looking to meet with a union representing striking workers but remains in doubt about further talks leading to a settlement. Morgan emphasized during a meeting with reporters in Morristown: "I believe that we will get back together and talk; whether you would characterize that as negotiations is hard to say. I am not optimistic that an agreed-upon settlement is going to happen." The International Brotherhood of Electrical Workers represents some 1,350 employees. Workers went on strike since Dec. 8 after contract negotiations fell apart; on Feb. 18, JCP&L made a "one-time" offer, which was voted down soon thereafter. JCP&L witnessed a decrease in net profit since 2002 because the utility industry was hit hard by state regulators in 2003. Morgan said JCP&L had a $252 million net income drop in 2002 and a decrease of $68 million in 2003 after state regulators cut the utility's rate of return on equity to 9.5 percent and disallowed $180 million in costs. Profits increased to $112 million in 2004. Acting New Jersey Governor Richard J. Codey said on Mar. 8 that he intends to dispatch the state's labor commissioner to jump-start stalled talks. Codey wrote a letter to Morgan stating: "It is time to end this dispute." Further talks are scheduled for Mar. 16.
Indian Petroleum Minister Mani Shankar Aiyar announced on Mar. 4 that the country is looking to acquire stakes in Venezuelan oil and gas fields. Aiyar said: "The Venezuelan president said block San Cristobal can be made available to us. We have shown our interest and want the joint cooperation agreement; the two sides are to sign on Mar. 5, to reflect Venezuela's commitment. Venezuela is our arrowhead in Latin America. The Venezuelan president informed (us) that our perception that the crude they produce is mostly heavy (high in sulphur) is incorrect. They have other grades. Mangalore refinery can process Venezuelan crude and we will assess if other grades of Venezuelan crude oil can be processed at other refineries. Venezuela looks upon India as an important upcoming partner in (the) hydrocarbon sector and we want to strengthen ties with mutual investments." Although the deal with India's ONGC Videsh Ltd did not materialize, Aiyar stresses the importance of continuing joint cooperation in the oil industry. ONGC currently has stakes in projects involving several countries to include Russia, Vietnam, Sudan, Libya, Syria, Iran, Iraq, Ivory Coast, Egypt, Myanmar and Australia. The company is looking to produce 400,000 bpd from the company's overseas petroleum assets by 2010-2011.
According to Polish Prime Minister Marek Belka and Ukrainian Prime Minister Yulia Tymoshenko, the two countries intend to create a working group to deal with the issues involving the development and operation of the Odessa-Brody oil pipeline. Tymoshenko said that Poland has agreed to the extension of the pipeline from the Ukrainian-Polish border in the town of Brody to the Polish Gdansk port. The pipeline's flow would also reverse to east-west flow to transport Caspian oil to European markets, and cease to pump Russian oil. While in Kiev on Mar. 4, the two officials also held talks on Ukraine's supply of electricity to Poland. Tymoshenko noted that the two countries intend to launch a joint project which is designed to develop the Ukrainian electrical power network, and construct a special relay station for this network that would make it possible to send electricity to Poland.
According to a statement made by Armenian Energy Minister Armen Movsisyan on March 3, Armenian-Russian gas company HayRusgasard has won a tender to construct the Armenian section of the Iran-Armenia gas pipeline from Megri to Kadzharan. Movsisyan did not disclose the cost of the project but did note that the 20-year agreement was signed so the two countries may begin construction on the section of the pipeline, which is expected to start at the end of March. Iran meanwhile has allocated $30 million in loans for the construction of the 25.5 miles long Megri-Kadzharan section of the pipeline. Under the agreement, the construction of the gas pipeline is expected to be completed by January 2007. In the pipeline's first stage, Iran will deliver 1.4 billion cubic yards of natural gas to Armenia annually. In 2019, Iran will deliver 3 billion cubic yards.
The European Bank for Reconstruction and Development (EBRD) Representative Sergey Bubnov said the bank intends to allocate $300 million in credits to Russian energy companies in 2005. While he did not identify company names who will receive such loans, Bubnov said EBRD is looking to sign several agreements by the end of the 2005. Bubnov did emphasize that the Russian energy industry needs investments due to current reforms in the industry.
Venezuelan Foreign Minister Ali Rodriguez said on Mar. 9 that the country intends to invest $40 billion within the next five years in an effort to increase crude oil production to 5 million barrels per day. Venezuela is looking to meet the increasing petroleum demands of the United States and other countries to include China. Rodriguez said that Venezuela is currently producing over 3 million bpd.
Closing oil prices, Mar. 10, 3 p.m. London
Brent crude oil: $52.98
West Texas intermediate crude oil: $54.30
