UPI Energy Watch

Turkey will explore in Iraq.

Turkey's national oil and gas company TPAO, the Petroleum Pipeline Corporation of Turkey and Shell Energy Europe all signed a contract to explore in Iraq.

The contract includes terms for exploration, management, transport, including construction of pipelines, and marketing of natural gas and oil, Chinese news agency Xinhua reported. The agreement also allows for transportation of natural gas to Turkey and Europe after domestic demand is met in Iraq.

"The cooperation of these three companies would contribute to world energy supply safety as well as regional peace and stability," said Turkish Energy and Natural Resources Minister Hilmi Guler.

Guler said TPAO is knowledgeable about Iraq's geology and was invited to bid in the tenders to explore and manage eight Iraqi oil fields in Iraq.

In addition, TPAO is discussing the possibility of drilling for natural gas with Iraq, near Iraq's border with Syria.

Turkey also signed deals with Iran and ExxonMobil this week. On Monday a memorandum of understanding was signed with Iran to improve cooperation in natural gas, and Wednesday a cooperative agreement was signed with U.S.-based ExxonMobil to explore natural gas and oil in the Black Sea.

India awards 44 oil and gas blocks.

India's Cabinet Committee on Economic Affairs recently approved the awarding of 44 oil and gas blocks under the seventh round of the New Exploration Licensing Policy. Bids were opened on June 30, Daily News and Analysis India reported.

The Directorate General of Hydrocarbons reported receiving 181 bids from 95 companies for 45 of the 57 blocks being offered. Of the 45 blocks, 12 were deep-water blocks, seven were shallow-water and 26 were onshore.

"The production sharing contracts for 44 blocks under Nelp-VII are likely to be signed within a month," the committee said in a statement. "Total investment commitment for Phase I of exploration for these 44 blocks is about $1.5 billion."

The leases for the blocks drew about $3 billion.

Australia-based BHP Billiton won seven deep-water blocks, India's state-run Oil and Natural Gas Corp. won three deep-water blocks, U.K.-based BP won one block, and India's ONGC won 20 blocks.

GE, Sasol sign power deal.

Sasol, South Africa's largest oil and gas company, recently signed a 15-year service agreement with U.S.-based GE to monitor its newest power plant in Secunda.

Under the agreement, GE Energy will provide constant monitoring and diagnostics of the Secunda plant in an effort to ease South Africa's energy crisis.

South Africa has been experiencing severe power shortages and that has affected the nation's large aluminum smelters and forced gold and platinum mines to temporarily shut down, adversely impacting the economy.

The 280-megawatt power plant will feature the first installation in South Africa of GE Energy's Frame 9E gas turbines and will provide power for the production of synfuels. Excess electricity will be sold to South Africa's Eskom.

"We're very pleased to work with Sasol to help improve the energy supply in South Africa," said Mark Digby, GE Energy Africa region executive.

Natural gas will fuel the gas turbines, and, in addition to power, the plant will create jobs and boost the local economy.

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Closing oil prices, Nov. 21, 3 p.m., London

Brent Crude oil: $48.43

West Texas Intermediate crude oil: $53.64

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(e-mail: energy@upi.com)