T urkey, Cyprus in oil spat
Turkey asked Cyprus Thursday to cancel its tender for oil exploration and drilling rights off the Mediterranean island.
The Greek Cypriot administration launched the first round of tenders for oil exploration and drilling rights off the divided island.
"We expect Greek Cyprus to end its initiatives to launch international tenders which violate the joint rights of the island 's two communities and amount to a fait-accompli," Levent Bilman, spokesman for the Turkish foreign ministry, said in a statement.
"Continuation of the tender process will adversely affect peace and stability on the island of Cyprus," he said.
According to local media reports, the first round of licensing involves 11 offshore blocks covering a total of approximately 23,000 square miles to the south of Cyprus.
Ankara says it has "legitimate and legal rights and interests" in the oil-and-gas exploration area where Cyprus wants to begin drilling.
Ankara says it wants Turkish Cypriots to have a say in the island's oil and gas rights.
Cyprus was divided in 1974 when Turkey militarily intervened and occupied the north of Cyprus following a coup by a group of Greek officers.
The Republic of Cyprus joined the European Union in the name of the whole island.
Exxon announces 2006 reserves replacement
Exxon Mobil Corp. said Friday it added a total of 1.95 billion oil-equivalent barrels in 2006, excluding the effects of using single-day, year-end pricing, from its worldwide proven oil and gas reserves.
Production reached 1.6 billion oil-equivalent barrels in 2006, with 976 million barrels of liquids and 3.7 trillion cubic feet of gas produced.
Exxon managed to replace 122 percent of production including property sales and 129 percent excluding property sales.
"With a 5-year average replacement ratio of 114 percent, ExxonMobil has continued to replace annual production with new quality opportunities," said Rex Tillerson, chief executive and chairman of Exxon Mobil Corp.
"This performance is a reflection of our disciplined investment strategy and strong project portfolio and execution capabilities, which enable the corporation to continue to develop its globally diverse resource base to help meet the world's growing energy needs," he said. "The annual reporting of proved reserves is the product of our long-standing, rigorous process that ensures consistency and management accountability with respect to all reserves bookings."
Ashgabat confirms gas deliveries to Russia
Turkmenistan said Thursday it has agreed to deliver gas supplies to Russia until 2028, according to a statement from Russian gas giant Gazprom.
In August 2003, Gazprom and the government of Turkmenistan secured a 25-year gas supply contract where Ashgabat agreed to deliver 60 billion to 70 billion cubic meters of gas in 2007, increasing the amount to anywhere from 63 bcm to 73 bcm in 2008.
Under the latest agreement, Turkmen President Gurbanguly Berdymukhammedov and Gazprom Chief Executive Officer Alexei Miller agreed to put third parties out of the running hoping for access to Turkmen gas supplies.
But, despite its assurances of cheap gas supplies, Turkmenistan delivered only 42 bcm of gas to Russia last year, while 50 bcm is planned for this year, at a price of $100 per 1,000 cubic meters, Valery Nesterov, oil and gas analyst at Troika Dialog, was cited as saying by the Moscow Times.
It is also unlikely that Turkmenistan will be able to deliver 80 bcm of gas to Russia in 2009, as required by the agreement, Nesterov said. Without reform and foreign investment it will be difficult for Turkmenistan to fulfill this obligation.
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Closing oil prices, Feb. 16, 3 p.m. London
Brent crude oil: $56.15
West Texas Intermediate crude oil: $57.46
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