World Mining Exploration News

Why BHP Billiton could stand between the world’s leading mining industry. The answer is because it can find a lower debt balance with surprise $ 5.6 billion despite a large universe of operating and capital recession and challenging exploration program of $ 10.7 billion proposed for the current year.

After getting the sector lower gearing of 12.1 percent, BHP, which also announced that the 2008-09 results of the other day, and a very proud boast a healthy EBIT margin of 40.1 percent and 24.6 percent return on investment.

Avoid the pain in the form of increased debt that Rio Tinto’s acquisition will lead to, BHP enjoy financial strength, unmatched in the industry, which it is to use for “mergers and acquisitions opportunistic” and targeted “tier-I assets” exceptional quality, low cost and given to long-term exploitation. No doubt, BHP has a balance sheet that provides distinct competitive advantage against its counterparts in the mining industry.

Unlike people like Rio and Anglo American, BHP draw much strength from the hydrocarbon asset ownership. When he discovered the benefits of expanding the capacity of iron ore in the existing mine site, also remained strong in the pursuit to expand oil and gas affected. (more…)

The civil suit was brought by relatives of Mr. Saro-Wiwa and other victims of Nigeria’s former military regime, who are taking advantage of a Supreme Court decision that gives foreign victims of human rights abuses a measure of access to American courts.

The suit asserts that in the early 1990s, Shell became worried about Mr. Siro-Wiwa’s campaign to protestthe impact of oil production throughout the Nigeria Delta. The suit assert that Shell feared Mr. Saro-Wiwa’s activities would disrupt its operations and tarnish its image abroad, and “sought to eliminate that threat, through a systematic campaign of human rights violations.”

Shell said the allegations were “false and without merit.” In a statement, Stan Mays, a company spokesman, said : Shell in no way encouraged or advocated any act of violance,” and in fact, “attempted to persuade that government to grant clemency.”

The case could have global repercussions for the oil industry, said Arvind Ganesan, the head of the business and human rights practice at Human Rights Watch. (more…)

Repsol has been awarded exploration rights in Canada’s Newfoundland and Labrador Offshore Area, allowing the company to move forward with its plans to increase oil and gas finds and production in the Organization for Economic Co-operation and Development countries.

Repsol has successfully bid for three blocks, two in the Central Ridge/Flemish Pass and one in the Jeanne d’Arc Basin. The company was partnered by Husky Oil and Petro-Canada in the winning bids.

Over the period of the 2008-2012 strategic plan, Repsol aims to spend E9.3 billion on its upstream business, of which E4.8 billion will be spent on identifying and developing new exploratory areas.
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North Carolina should consider whether it would receive money from oil exploration off its coast and how it would balance an oil industry with its coastal tourism economy, speakers at a conference said today.

Carteret County commissioners recently passed a resolution supporting oil and gas exploration off North Carolina’s coast, prompting local economic development officials to hold a conference on the topic to get further information.

“If states like North Carolina decide to do this, make sure you’re going to get revenue,” said Sidney Coffee, a former coastal adviser to Louisiana’s governor. Currently states receive 50 percent of the revenue from mineral leases on land but typically do not receive any payments for offshore drilling. Under current federal law, North Carolina would not receive any share of the lease revenues for drilling in federal waters.
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Marathon Oil Corporation today announced the completion of the sale of its non-operated interests in the Heimdal infrastructure, related producing fields and associated undeveloped acreage offshore Norway. Centrica plc, the parent company of British Gas, acquired the interests for a total value of $416 million, which includes a $375 million purchase price and $41 million in associated Norwegian asset tax pools, with an effective date of Jan. 1, 2008.

The sale of these non-core Norwegian assets is part of Marathon’s ongoing review of its global asset portfolio and the Company’s goal to achieve $2 – $4 billion in gross proceeds by mid-year 2009.

Under the terms of the sale, Centrica acquired Marathon’s 23.8 percent interest in the Heimdal field, as well as its 46.9 percent interest in the Vale field; a 20 percent interest in the Byggve field; a 20 percent interest in the Skirne field; and a 50 and 20 percent interest in the Peik and Heimdal East discoveries, respectively. (more…)

The development of deepwater oil fields off the coast of Brazil may be delayed as the credit crisis makes it harder to finance projects, OPEC President Chakib Khelil said.

Developing Brazil’s offshore fields may involve investing $100 billion, for which financing from foreign banks is needed, Khelil, who is also Algeria’s oil minister, told reporters in Vienna today. Petroleo Brasileiro SA Chief Executive Officer Jose Sergio Gabrielli on Oct. 20 said some of the company’s projects may be delayed because of the international credit crunch.

“Lots of companies are not going to get any financing for developing fields,” Khelil said. Crude oil prices have more than halved since rising to a record $147.27 on July 11 and that drop may also affect some projects. Canadian oil-sands projects require prices of $90 a barrel and ultra-deepwater drilling needs oil at $70 a barrel to be viable, according to Khelil. (more…)

Venezuelan President Hugo Chavez agreed Friday to give broad access to his country’s oil riches to five Russian companies, Russian Energy Minister Sergei Shmatko said.

The deal came after a meeting between President Dmitry Medvedev and Chavez in Orenburg, where the Venezuelan leader reiterated his support for Russia’s actions in last month’s military conflict with Georgia.

It also came a day after the announcement of a $1 billion loan for Venezuela to buy Russian military hardware.

State-controlled Gazprom and Rosneft, as well as private companies Lukoil, TNK-BP and Surgutneftegaz, plan to pour “tens of billions of dollars” of investment into Venezuela, Shmatko said.
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Democrats in Congress gave up their attempt to maintain the current prohibition on exploration for oil and gas in federal waters off the East and West coasts and much of the Gulf of Mexico.

That’s no guarantee of sensible policy next year, when the Democrats expect to control Congress again. They already are boasting that they will renew the drilling moratorium. With enough senators – and that’s still a big if – Republicans can filibuster a renewal attempt and thus maintain momentum.

The drilling ban was supported for a quarter-century by members of both parties who saw it as politically popular. President George H.W. Bush reinforced it with an executive order (rescinded by his son) prohibiting exploration leases in the affected waters. When Republicans controlled the House from 1995 to 2007, they made no attempt to ditch the moratorium. Funny how months of $4 gasoline can change minds. (more…)