UPI Energy Watch

China's CNOOC sees surging profits.

Like many other oil and gas companies, the record-high price of a barrel of oil has led to rapidly increasing profits for China National Offshore Oil Corp.

CNOOC is China's third-largest oil explorer, and in its second-quarter report the firm said its profit climbed 35 percent in the first six months of this year, the Middle East North Africa Financial Network reported.

The state-owned company's income reached $2.78 billion in the first half, and its sales increased by 48 percent to $15.6 billion, CNOOC said in a statement.

As a result of higher profits, the company has been able to increase its oil and natural gas production by 2.4 percent to 20.7 million tons of oil equivalent.

Like many other oil firms internationally, China National's listed unit, CNOOC Ltd., told MENAFN it has plans to increase its capital spending by 44 percent in an effort to further increase and diversify its oil and gas output.

In the first quarter of 2008 alone, CNOOC's crude oil and gas production increased 5 percent to 496,753 barrels of oil equivalent per day, but, according to the firm's chief executive, production must be further increased to meet the year-end goal.

Ghana formulates its own oil policy.

Following the lead of other developing nations, Ghana's Energy Minister Felix Owusu-Adjapong said leaders on the Oil and Gas Technical Committee have drafted a new policy to help the country use its oil and gas revenues effectively, The Statesman reported.

Owusu-Adjapong told the local newspaper that since the oil and gas industry there had become more successful, leaders had turned to the Oil for Development Program in Norway to help develop a policy.

He said Ghana's policy is based on the policy of other oil-producing countries. It reportedly includes guidelines for developing resources while managing the environment.

The draft policy has not been approved yet. The Statesman reported it still must be submitted to Ghana's cabinet.

High oil prices drive the Pakistani government to increase prices.

Pakistan's government, which had been controlling prices for its citizens, recently was forced by high oil prices to increase the prices of all petroleum products, the Pakistani newspaper Dawn reported.

The increase was reportedly the highest ever, between 10 percent and 18 percent, and the new prices went into effect immediately, Dawn reported.

According to a release from the Oil and Gas Regulatory Authority, the highest increase was in the price of kerosene at 17.4 percent. The second-highest increase was for light diesel oil at 15 percent.

The prices of petrol and high octane blending components increased 14.5 percent and 8 percent, respectively, Dawn reported. Jet fuel prices were also significantly increased.

This marks the seventh increase in petroleum prices since February. In just four months the prices of certain petroleum products have jumped as much as 73 percent.

China was forced to implement similar increases recently. Developing economies are struggling to provide enough affordable fuel and energy to continue their rapid pace of expansion.

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

Brent crude oil: $131.20

West Texas Intermediate crude oil: $130.81

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(e-mail: energy@upi.com)