Rigzone: Iraq Energy Panel Approves Gas Deal

A top Iraqi government energy committee has approved a deal with Royal Dutch Shell PLC (RDSA) to capture and exploit gas from its giant southern oil fields, the country's oil minister said Sunday.

The Iraqi oil ministry struck a deal in July with Shell and Japan's Mitsubishi Corp. (8058.TO, MSBHY) to develop gas production in southern Iraq. To become valid the deal needs approval from the Baghdad government.

"It was agreed upon by the energy committee and was sent to the cabinet for approval," Abdul Kareem Luaiby told Dow Jones Newswires on the sidelines of an Iraqi energy meeting in Amman, Jordan. The committee is chaired by the deputy prime minister for energy affairs, Hussein al-Shahristani, and its members include the ministers of oil, electricity and finance.

Luaiby declined to say when exactly the cabinet would approve the deal. The agreement must first be examined by the cabinet's legal and specialized offices, he said......Read the entire article.

Crude Oil Futures Extend Decline After Inventories Increase More Than Forecast

Oil declined for a second day after a government report yesterday showed a bigger than forecast inventory gain in the U.S., the world’s largest energy consumer. Oil dropped as the Energy Department said crude supplies rose 1.98 million barrels to 356.2 million last week. Stockpiles were expected to climb by 1.35 million barrels, according to a Bloomberg News analyst survey. Machinery orders in Japan, the world’s third largest oil user, unexpectedly fell in February.

“The report was bearish really any way you look at it,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “So there was a bit of heat coming out of the market but it’s OK since were trading on expectations on the economy. And the economy is going to be going in fits and starts.” Crude oil for May delivery fell as much as 39 cents, or 0.5 percent, to $85.49 a barrel and was at $85.74 in electronic trading on the New York Mercantile Exchange at 11:55 a.m. Singapore time. Yesterday, the contract declined 96 cents, or 1.1 percent, to settle at $85.88, dropping from an 18-month intraday high of $87.09 made April 6.

Orders for factory equipment and items such as power generators, an indicator of business investment in three to six months, declined 5.4 percent from January, the Cabinet Office said today in Tokyo. The median estimate of 31 economists surveyed by Bloomberg was for a 3.7 percent gain. “Oil was getting a little bit frothy and probably out of line with where the fundamentals are at the moment,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “We had a rise in crude stocks, which is not an isolated incident. It does seem that the supply overhang in the U.S. isn’t being properly addressed”.....Read the entire article.


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Crude Oil Climbs From Two Week Low on Speculation Energy Demand Recovering

Crude oil rose for the first time in four days on expectations fuel demand will increase as the global economic recovery gained momentum and receding concerns over Greece’s debt crisis bolstered the euro. Oil climbed in New York the dollar fell against the euro following the International Monetary Fund and European Union pledge to help Greece finance the 16 nation region’s largest debt. Investors buy commodities as the greenback declines to offset inflation concerns and as an alternative investment.

“This rescue plan settles down the fears about the Eurozone going into a double dip recession so that’s bullish for crude,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “People feel the dollar will continue to be weak because of the long term policy to keep interest rates low and the money supply high.” Crude oil for May delivery rose as much as 49 cents, or 0.6 percent, to $80.49 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $80.46 at 11:42 a.m. in Singapore.

The contract dropped 0.7 percent to $80 on March 26, the lowest close in almost two weeks, after a report showed the U.S. economy expanded less in the fourth quarter than analysts had estimated. Prices fell 1.2 percent for the week as U.S. crude stockpiles surged to a seven month high and the dollar rose against the euro on uncertainty over Greece’s debt problems.....Read the entire article.


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"Chevron Locked Into Contracts.......Also Trying To Unload Big Foot"

"Chevron, BP Locked Into $200 Million Oil Wells Amid Crude Price Declines"
Chevron Corp. other oil producers are locked into drilling offshore wells that cost as much as $200 million each because of rig contracts that were signed when crude was soaring above $140 a barrel....Complete Story

"Pemex May Weather Financial Crisis by Avoiding Marginal Projects, CEO Says"
Petroleos Mexicanos, the state owned oil company, is in better shape to weather the global financial crisis because it avoids marginal projects such as oil sands, Chief Executive Officer Jesus Reyes Heroles said....Complete Story

"Chevron Approaches Oil Cos over Big Foot Farm Out"
Chevron Corp. has approached rival oil producers about the possibility of acquiring part of its stake in the Big Foot oil field in the U.S. Gulf of Mexico....Complete Story

"Mitsubishi, Petrobras Team Up to Build $830MM Deepwater Drillship"
Mitsubishi Corp and Petrobras have agreed to jointly build an $830 million ultra-deepwater drillship, slated for delivery in June 2010....Complete Story