WASHINGTON, March 29 (UPI) -- ChevronTexaco Global Marketing officials announced on March 26 that ChevronTexaco Petroleum Company subsidiary ChevronTexaco has signed an agreement to sell the company's 15 Texaco service stations in Colombia to Combustibles de Colombia, an investment group and service station retailer. The two companies signed a long-term supply agreement to retain the Texaco brand at these locations while working closely with ChevronTexaco Petroleum Company to develop additional growth opportunities. Under the agreement, ChevronTexaco Global Marketing aims to improve returns by focusing on areas of market and supply strength; the company will also look to enhance and manage three world-class brands -- Chevron, Texaco and Caltex. ChevronTexaco Global Marketing President Shariq Yosufzai said: "This new relationship with Combustibles de Colombia will allow us to concentrate our resources and capital investments on strengthening our retailer network, building on our strong Commercial and Industrial businesses, and maintaining our leading position in lubricants. Our customers in Colombia will continue to receive the same high quality fuel products they have come to expect from filling up at a Texaco-branded site."
Russian Federal Energy Agency (Rosenergo) Head Sergei Oganesyan announced in a speech on March 25 that the country's investments in its oil refining sector amounted to approximately $1 billion in 2004. Oganesyan emphasized that the country's investments in oil refining must reach $4.7 billion by 2010. The volume of oil refining reached 195 million tons in 2004; oil refining volume in 2005 is expected to reach 197 million tons. Oganesyan added that Russian oil companies, except for Bashneft, anticipate production increases. Russian oil exports in 2004 hit 189 million tons; the country expects to export approximately 332 million tons to meet its energy strategy by 2020. Russia intends to construct the Baltic pipeline system with a capacity of 60 million tons annually. In addition to planning on the construction of the Taishet-Nakhodka pipeline from eastern Siberia to 62 miles east of Vladivostok on the Sea of Japan, Russia is looking to construct the Burgas-Alexandroupolis oil pipeline with Bulgaria and Greece.
ExxonMobil plans to participate in India's Reliance Industries Limited (RIL) block D6 exploration project, which is located in the Krishna Godavari basin and has a capacity of 14 trillion cubic feet of gas. The two companies held preliminary talks on ExxonMobil's interest in acquiring 50 percent of the shares and on becoming operator of block KG-D6. An RIL spokesperson said: "RIL has received and continues to receive expressions of interest from many international companies for a possible participation in its Indian blocks. However, we cannot comment on any specific proposal at this juncture." RIL is currently looking to acquire new deep-sea exploration technology. The company also intends to begin natural gas production from the field by 2007-2008.
According to a statement made by State Oil Company of the Republic of Azerbaijan (SOCAR) President Natiq Aliyev on March 23, SOCAR continues to deny reports that workers involved in the construction of the Georgian section of the Baku-Tbilisi-Ceyhan (BTC) pipeline are on strike. Aliyev said: "I don't expect any strike in Georgia." Media reports, meanwhile, have indicated that workers were on strike. Aliyev emphasized: "The construction of the Georgian section is delayed due to poor weather conditions. However, the Georgian side makes every effort to complete construction operations by the end of April to receive the Azeri oil starting on 1 May."
Caspian Holdings looks to develop the company's Kazakh Zhengeldy oil field. According to Caspian Holdings Executive Chairman Michael Masterman, the company earned $4.43 million through its initial public offering, and is still in a strong position financially with over half of its flotation funds remaining. Caspian Holdings gradually increased production at the company's three wells and is currently undergoing production testing at a fourth. While the company intends to establish 15 wells with a projected production rate of 288 barrels per day from each well, Caspian Holdings also plans to acquire other fields in Kazakhstan.
Norway government officials announced on March 24 that the country intends to assist the Iraqi oil industry recover by providing a $3.3 million training and technology program. While aid could include training and education for Iraqi oil officials, Norway also plans to establish regulations for oil field operations and accounting. Norway is currently the world's third-largest oil exporter with a capacity of 3.2 million barrels per day.
Closing oil prices, March 29, 3 p.m. London
Brent crude oil: $52.92
West Texas intermediate crude oil: $54.20
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