WASHINGTON, April 6 (UPI) -- Two Canadian PetroKazakhstan executives currently face criminal charges under Article 196 of Kazakhstan's anti-monopoly legislation. Ihor Wasylkiw, vice president of investor relations for PetroKazakhstan, announced on Apr. 4 that the country's Agency for the Struggle with Economic and Corruption Crimes, or financial police, has brought charges against Thomas Dvorak, president of PetroKazakhstan Kumkol Resources and PetroKazakhstan Oil Products (PKOP), and Clayton Clift, chief financial officer of those two subsidiaries. Wasylkiw said: "Everyone is aware of the ongoing scenario that we have with the anti-monopoly commission in that for the last two years it has been claiming we have been receiving unjustified revenues from the selling of our refined products." When asked if the two men will face a prison sentence, Wasylkiw said: "No, they won't, because that question has been put forward, the anti-monopoly commission doesn't have any intent of throwing them in jail but at the same time we take any criminal charges against our people very seriously." Wasylkiw also noted on why the government initiated the charges: "We've been negotiating a long time with the company but the company doesn't agree with us, so in order to speed up the process these criminal charges were brought forth." PetroKazakhstan has issued a press release in response to the allegations stating: "The Financial Police alleges that, in violation of Kazakhstan's antimonopoly legislation, a number of group distribution companies (LLPs) were organized, replacing the previous regional branches of PKOP, for the purpose of avoiding price ceilings established by Kazakhstan's Agency for Regulation of Natural Monopolies and Protection of Competition in August 2002." Company stock fell when Kazakhstan announced charges.
The Middle East looks to continue to be a major player and key supplier to growing Chinese energy demands, according to Hussain Sultan, group chief executive and board member for Emirates National Oil Company (Enoc). Hosting the Dubai Middle East Petroleum and Gas Conference on Apr. 4, Sultan said: "Oil demand is increasing all the time and the Middle East will continue to be a very important supplier. The Middle East is abundantly endowed with oil and gas reserves. Of the 1 billion barrels of proven crude oil reserves at the end of 2001, the Middle East and North Africa accounted for about 69 percent. In contrast, the region accounted for just about 31 percent of total world production, and about 50 percent of exports, which clearly demonstrates the importance of this region to the present and future of the global oil market." As demand is increasingly being fuelled by industrial development within China, Sultan added: "The International Energy Agency forecasts the global oil demand to increase to 120 million barrels a day in the year 2020 from the current 84 million barrels. By that time, demand in North America is projected to rise by nearly a third, China will double its oil imports and the European Union will import 92 percent of its oil. The sheer scale of the potential of the People's Republic - the fourth largest country in the world with a population exceeding 1.2 billion."
Kuwait looks to strengthen cooperation with China's oil industry. Kuwait Petroleum Corporation (KPC) official Jamal Al-Nouri said on Apr. 4 during the opening ceremony of KPC's office in Beijing: "We are talking with every one of China's big oil companies, including Sinopec, PetroChina and China National Offshore Oil Corp (CNOOC), on further co-operation, and this coming together is only a matter of months." The Middle East Corporation also intends to engage in the long-term development of China's oil industry by setting up joint ventures in refining, petrochemical and infrastructure. Al-Nouri further emphasized that KPC's presence in China will easily facilitate striking "long-term oil supply contracts with China and establish joint ventures." China's second-largest oil producer, Sinopec, and Kuwaiti officials are holding talks over establishing additional projects in upstream and downstream oil sectors, according to a KPC official. Under a long-term supply agreement, Sinopec has been importing crude oil from Kuwait since 1998. China's fourth largest oil company, Sinochem Corp, is also currently holding talks with the Middle East Corporation on how to further partnership opportunities, according Wang Wei, general manager of the company's crude oil department. Additional energy agreements are actively under way between China and Kuwait.
Omani Qalhat LNG signed a $688 agreement on Mar. 30 with 13 local and international banks and financing companies to finance the construction of a third gas liquefaction plant. Some of the signatories to the agreement were Ahmed bin Abdul-Nabi Macki, Oman's National Economy Minister and deputy chairman of the Financial Affairs and Energy Resources Council, Oil and Gas Minister Dr. Mohammed bin Hamad al-Rumhi, Sheikh Al-Fadhl bin Mohammed al-Harthy, development affairs undersecretary at the National Economy Ministry and chairman for Qalhat LNG Company, Harib bin Abdullah al-Kitani, executive president of Qalhat LNG company. Oman will hold 55.84 percent in the project; the Oman LNG Company will have 36.80 percent; Spanish Union Venosa will have 7.36 percent. The natural gas liquefaction complex in the Wilayat of Sur currently has two gas liquefaction trains belonging to the Oman LNG Company. Macki said that construction has reached advanced stages. According to Macki, Oman aims to achieve a diversified economy by 2020. The country's diversification projects include undertaking at certain ports such as the container handling facility in Salalah. Construction also began at the Sohar port in the Batinah region, the oil refinery and petrochemical factories.
As of April 5, oil tankers will undergo a revised phasing out schedule as well as abide by new regulation that bans the carriage of heavy oil in a single-hull oil tanker. Following the November 2002 sinking of the oil tanker Prestige off the Spanish coast, amendments were made to Annex I of the MARPOL Convention, the main international convention covering pollution prevention on the marine environment by ships from operational or accidental causes, in December 2003. The regulation was previously modified following the Erika incident off the coast of France in December 1999. Single hull tankers are to be phased out or converted to a "double hull" according to a schedule based on their year of delivery. Double hull requirements for oil tankers are principally designed to reduce the risk of oil spills from tankers involved in low energy collisions or groundings.
The Abu Dhabi Oil Refining Company (Takreer) in the United Arab Emirates has awarded a $400 million engineering, procurement and construction contract to Dodsal Pte Ltd for its Inter-Refineries Project (IRP). A company issued press release stated: "The project will secure the transfer of intermediate and final oil products between Takreer's Ruwais and Abu Dhabi refineries and the Mussafah terminal, fulfilling the vital local market products demand needs." Dodsal expects to complete the project at the end of 2007. The company also recently completed the Qatar Chemical Company ethylene plant. A company spokesperson said that 12 million work hours went into that project.
Closing oil prices, Apr. 6, 3 p.m. London
Brent crude oil: $54.92
West Texas intermediate crude oil: $55.55
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