Shell fears production shortfall if investment ceases
Royal Dutch Shell warned that production would fall rapidly if investment in the Nigerian oil fields were discontinued because of the escalating Niger Delta crisis, Jeroen van der Veer, the company's chief executive, said.
But the company would continue to invest in Nigeria notwithstanding the current tense situation in the oil-rich region provided its employees can work there safely, he was cited as saying in This Day.
"Nigeria is very rich in oil and gas, onshore and offshore. If you look at the long term, i.e. over decades, these reserves will indeed be produced. We can and want to participate in this, but only if our people can work safely there," he said.
In an interview published in Shell's Dutch in-house magazine, the Shell boss also spoke on the current rising crude oil prices, saying the developments are slowing down new projects because governments are taking longer to negotiate their slice of revenues.
"It is evident that active government interest is delaying projects. Government negotiations for their share of the revenues are lengthier than in the past," van der Veer said even as he refuted the idea that higher oil prices would actually accelerate decision-making, saying "in reality the opposite is true."
India concerned over high oil prices
Indian Prime Minister Manmohan Singh expressed concern Monday over the rise in international oil prices and said that all possible options, including a fuel price hike and duty cuts, will be considered to deal with the situation, zeenews.com reported.
"We have to look at all possibilities existing. I would not like to comment on it," he told reporters when asked if petrol and diesel prices are set to be raised.
"Steep rise in crude oil prices is a cause of concern. We have to look at various options open to us," he said after new CAG (Comptroller and Auditor General) Vinod Rai took oath of office at Rashtrapati Bhawan (President's House).
A Group of Ministers on fuel prices headed by External Affairs Minister Pranab Mukherjee will meet Jan. 17, the first ever meeting after its constitution by the prime minister in November 2007, to consider a response to crude prices touching $100 a barrel.
Syria inks deal to buy Iranian gas via Turkey
The Syrian Gas Co. and the Iranian National Company for Gas Export signed yesterday an initial principles agreement to purchase the Iranian gas, the Syrian Times reported.
The agreement was signed by Ali Abbas, director general of the SGC, and Hussein Nakrah Shirazi, deputy Iranian minister of oil.
The agreement included the basic principles for preparing a deal on natural gas purchase from Iran. It will come into effect by the end of 2009 when the Aleppo-Kiles pipeline is completed and connected with the Turkish gas network.
The quantity of imported gas will start at the rate of 3 million cubic meters per day and will steadily increase to 9 million cubic meters a day after three years from the start.
Minister of Oil and Mineral Resources Sufian al-Allaw said that the agreement aims to define the conditions for the Iranian gas transport into Syria via Turkey.
"The Syrian and Turkish sides are thoroughly working on implementing the remained part of a pipeline link between the two countries," Allaw said.
Allaw said he hopes that the projects will be completed on time.
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Closing oil prices, Jan. 9, 3 p.m. London
Brent crude oil: $95.15
West Texas Intermediate crude oil: $96.66
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