UPI Energy Watch

Pakistan's government will cancel inactive licenses

Pakistani officials have decided to revoke the licenses of oil and gas exploration companies that have not initiated exploration activities in Balochistan province, the Daily Times reported. The government said some areas have not been touched for more than 12 years.

A group of companies, including Nevtos and Pakistan Petroleum Ltd., were granted licenses to initiate exploration in 16 of Balochistan's gas fields, but they say deteriorating law and order in the province has kept them from starting their exploration projects.

At the urging of people living in the province and their leaders, the companies with licenses will be issued warnings before the end of the month that if they do not begin working immediately, they will have their licenses revoked.

During a recent meeting between the Ministry of Petroleum and Natural Resources and representatives of the Balochistan government, protests over the delays in exploration were heard, the Daily Times reported.

Balochistan officials told the ministry that since 1990, the province's gas production has dropped to 23 percent of its capacity from 53 percent, and they also told the ministry they have lost huge amounts of money in royalties.

Britain lectures Nigeria on oil deals

British Secretary of Energy Malcolm Wicks discussed with Nigerian officials what the necessary framework should be in order to have better working relationships with international oil and gas companies.

Lately, Nigeria's relationship with Royal Dutch Shell Petroleum has been on edge because of militant attacks and violence.

Wicks suggested ways Nigeria could increase its oil and natural gas production as well as tools the country's leaders might use to implement their master energy plan and how to promote the best use of oil and gas revenues, This Day reported.

He told Nigerian leaders during a meeting with Minister of State for Energy Odein Ajumogobia in Abuja that their country is rich in resources and would benefit greatly simply from better transparency and reformed regulations in their oil and gas sector.

Oil production in Nigeria peaked at more than 3 million barrels in the 1990s, but large output does mean the nation knows how to develop potentially beneficial relationships with international and independent oil companies, Wicks said. He suggested having strong regulations could be the first step in starting dialogue with oil companies.

China National Petroleum Co., Sinopec, bid for Petro-Tech Peruana

The two Chinese firms reportedly have made a $2.5 billion joint bid for the oil and gas assets of the Peruvian company, which has eight offshore drilling exploration licenses at the moment, covering 5 million acres. Petro-Tech Peruana is also credited with making the first offshore oil discovery in Peru, India's domain B business publication reported.

Petro-Tech is now owned by Houston-based Offshore International Group and is up for sale. Other than the joint bid from CNPC and Sinopec, Royal Dutch Shell reportedly expressed interest as well.

Petro-Tech's fields have estimated reserves of close to 1.2 trillion cubic feet of oil equivalent, but the company does not have the $120 million needed to develop the fields.

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Closing oil prices, Aug. 20, 3 p.m., London

Brent crude oil: $109.51

West Texas Intermediate crude oil: $112.71

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