Oil & Gas News

Egypt looking at energy subsidies to cut deficit

According to Reuters, Egypt is looking for natural gas to help reducing energy subsidies that are eating up 20 percent of its state budget and are likely to continue growing if measures aren't taken soon.
For years, the government has resisted cutting subsidies for fear of igniting inflation and the wrath of its citizens. It is now under renewed pressure to tackle the issue as it negotiates a $3.2 billion emergency loan from the International Monetary Fund to avert a balance of payments crisis; the IMF is expected to require a commitment from Cairo to reform its finances.
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Egyptian gas supplies to Jordan will be back on next month

According to Petra of Amman, 28-4-2012, Egypt will restore natural gas supplies to Jordan next month after a series of blasts at the pipeline forced a halt to pumping over the past months, according to a government source.

The announcement revived hopes that the resumption of supplies would help to reduce losses that amounted to about JD1 billion last year as the Kingdom's power plants had to switch to heavy fuel and diesel oil for electricity generation.

The source said Cairo had told Ministry of Energy and Mineral resources officials that pumping would be restored at the rate of 100 million cubic meters a day that could be raised to 150 million later.

The main pipeline inside Egyptian territory that carries gas to Jordan had been the target of a total of 14 explosions in about a year, blamed by Egyptian authorities on "saboteurs." The blasts cut off supplies forcing Jordan to rely on alternative fuels that cost the treasury an estimated $5 million a day.

Petroleum Ministry to promote Egyptian oil companies in the Gulf

According to Egyptin dependent sources, The Egyptian Ministry of Petroleum will step up its promotion of Egyptian oil companies operating in foreign and Arab countries, especially in the Gulf region, to take advantage of increased global demand and the rising prices of oil.

Minister of Petroleum Abdullah Ghorab is considering a tour to Qatar and the Sultanate of Oman to promote Egyptian oil companies there, he told Al-Masry Al-Youm.

Egyptian public-sector oil companies won international bids put forward by 14 oil-producing countries in and outside of OPEC (the Organization of Petroleum Exporting Countries) with a total value of US$4.6 billion through the end of 2010, according to the Ministry of Petroleum.

Meanwhile, the Arab ministers of petroleum gathered in Cairo on Saturday for an OAPEC (the Organization of Arab Petroleum Exporting Countries) meeting, to approve the organization’s draft budget, discuss the appointment of new audit bureau members for 2012, and follow up on developments concerning the United Nations Framework Convention on Climate Change and the Kyoto Protocol.

The petroleum ministers of Bahrain, Algeria, Libya, United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Syria and Iraq participated in the conference.

UAE Oil Minister:
Crude oil prices "on the high side"

HE Mohamed al-Hamli, the oil minister for the United Arab Emirates, said at the International Energy Forum in Kuwait (12-14 March 2012) that he felt crude oil prices were "on the high side"

As oil slips towards $125, oil prices are near 9-month highs in part because of tensions with Iran. The Iranian government said it was halting crude oil shipments to some European countries and said it would close key oil shipping lanes in the Strait of Hormuz if pressured further by sanctions.

South Sudan to Export Crude by Truck

South Sudan's Minister of Petroleum and Mining Stephen Dhieu Dau declared that his country is trying to get its oil production flowing again through pipelines to ports in Kenya and Djibouti by trucks until the temporary underwater oil pipeline along the Nile River are complete.

This way will ensure carrying 30,000 bpd of crude to ports, which is a small portion (11%) of the country’s production of 350,000 bpd before shutting, and this will help adding some revenue to the country’s starving budget.

Kuwait Energy marks a new discovery in Egypt’s Western Desert

Kuwait Energy marked a new discovery in Abu Sennan Concession in Egypt’s Western Desert. The oil discovery was made with the drilling of the El Salmiya-1 well and marks the fourth success for Kuwait Energy on the concession. The well initial testing showed total oil rates of 2900 b/d and 17 Mmcf/d of gas. In barrels of oil equivalent the oil shows approximately 5,600 daily.

Kuwait Energy is the operator of the concession and holds a 50% working interest. The remaining working interest is held by Dover Investments (28%) and Beach Petroleum – Egypt (22%).

Total to explore offshore Egypt and Libya during 2012

The French firm Total will drill one exploration well offshore Libya during 2012 and another offshore Egypt’s Nile Delta. The company plans to spend $20 billion in 2012 on its exploration program around the world, and hopes to increase its production by 2-3% over the year.

 

 

Egypt's Maridive profit drops 32% in 2011

According to Reuters, Egypt's Maridive and Oil Services, the biggest oil services company by fleet size in the Middle East, reported a 32% drop in net profit in 2011, when tough competition pushed industry prices lower. Maridive's net profit fell to $42.11 million, down from $61.77 million in the same period a year earlier, a report from the company's board said, without providing a reason for the drop.

The report also said that the company had one new contract in Brazil for $234 million and another for over $25 million to rent marine units for four years, which the company expects to receive by April 2012. In general, the industry has seen severe competition from other firms operating in the field because of the number of new units that came in with lower prices.

Maridive, which serves BP Plc, Kuwait Oil Company, Royal Dutch Shell Plc, Saudi Aramco, Qatargas, Total and other oil companies, owns over 60 marine units and had contracted to get about six vessels and one barge by 2012.

Iran discovers huge oil field in the south

Iran has discovered one of its biggest oil fields which have high quality huge crude reserves in a southern province. Iran had boosted its exploration activities in the absence of foreign companies, and its energy officials have announced exploration of new oil fields in various parts of the country.

In the course of the country's fifth five-year development program (2010-2015) now under way, Iran is looking to discover 2.5 billion barrels of recoverable oil and 23 trillion cubic feet of gas.

Iran, the world's fifth largest oil producer, has been hit by tightening international sanctions over its disputed nuclear program. The western countries say Tehran program is aiming to build bombs and Tehran denies saying it needs the nuclear technology to generate electricity.

Total eyes 200bn unfound oil barrels in Egypt, Libya

The Arabian Business has quoted a company official saying that Total SA is planning to explore for oil and natural gas off the coasts of Libya and Egypt, a region that may hold as much as 200bn barrels of oil equivalent.

The Paris-based company will drill one exploration well off Libya this year, and it will drill another well in Egyptian waters facing the Nile Delta, Senior Vice President for Exploration Marc Blaizot said recently in an interview in Bahrain’s capital city Manama.

The Middle East region might hold about 100bn to 200bn barrels of oil equivalents in undiscovered offshore and onshore areas, Total’s Blaizot said. The company’s output growth this year will rise 2 percent to 3 percent, depending on how production in Syria and Libya evolves. Total, Europe’s third-largest oil producer is also interested in searching for oil and gas off the coast of Lebanon and Syria, where Blaizot expects a great potential for discoveries.

The company is exploring in Yemen, he said, adding that there were many undiscovered offshore fields in the Gulf of Aden and Red Sea that need to be explored but his company is currently interested in onshore blocs.

Net investment will total US$20bn this year, compared with about US$22bn in 2011, with a 20 percent increase in funds set aside for “ambitious” exploration, the company said. Total is pushing to make big discoveries by drilling more frontier exploration wells. So far the strategy has paid off in Azerbaijan, Bolivia, French Guiana and Norway.

Most of the oil and gas in the region have been identified but there are areas that have not been explored like the Red Sea, the Gulf of Aden, the areas off Lebanon and Syria, and the transition zones in the Persian Gulf.

The 200bn-barrel estimate includes oil and gas that can be found in carbonate reservoirs in the region and in unconventional areas such as shale gas and oil shale.

Asked if these were the remaining crude resources that can be discovered in the region, “Most likely yes,” Blaizot said. He said these were his estimate and it needs to be backed by more seismic surveying.

Total withdrew from Saudi Arabia’s South Rub al-Khali, or SRAK, joint venture with Royal Dutch Shell and Saudi Arabian Oil in 2008 because it failed to find gas.

An Upstream deal between ADNOC and CNPC

Abu Dhabi National Oil Company (ADNOC) has signed a deal with China National Petroleum Corporation (CNPC) to collaborate in upstream projects in undeveloped areas.

CNPC will conduct technical and economic studies in order to evaluate areas put forward for development by the UAE’s Supreme Petroleum Council (SPC).

The agreement, signed between SPC secretary-general Joan Salem Al Dhahiri and CNPC president Jian Jiemin, also aims at co-operating in areas of petrochemical development, technical services, and engineering and construction services.

Aramco Aims to raise its Refining Capacity to 8 Million B/D

After signing a $10 billion refinery deal with China's Sinopec Group, Khaled Al Faleh, Aramco CEO, has declared that Aramco aims to raise its refining capacity to 8 million barrels per day.
"While other companies are reducing exposure to the refining business, Aramco sees it as a growth industry, and the downstream remains an attractive and profitable business" he added.
Aramco and Chinese companies finalized an initial agreement signed last year to develop a 400,000 barrel per day refinery due to come on line in 2014 in Yanbu, on the kingdom's Red Sea coast. Aramco will hold a 62.5% stake in the joint venture formed to develop Yanbu Aramco Sinopec Refining Co (YASREF), and Sinopec will own the rest.
Other additions to capacity will involve Aramco's investments abroad, plans for new refineries in Jubail and Jizan and the revival of a plan to expand Ras Tanura, already the Middle East's largest refinery.
Falih also cited ambitious plans for expansion of its petrochemicals business. The Ras Tanura refinery expansion was to be integrated with a petrochemical complex now being developed in Jubail by Aramco and U.S. Dow Chemical.

Kuwait Energy Hits Oil and gas in Gulf of Suez

Kuwait Energy Egypt (KEE) made a recent oil discovery in its Area (A concession) in the Gulf of Suez with the drilling of the Ahmad-1X well. The Ahmad-1X discovery well was drilled to more than 2000 meters depth. The initial test recorded a flow rate of about 900 barrels of oil equivalent per day.

This discovery brings the total number of oil, gas and condensate discoveries made by KEE, since 2008, to 14 discoveries, three of which were made in Area A. KEE is the operator of Area A and holds a 70% working interest. Omani independent Petrogas E&P holds the remaining 30% interest.

Kuwait Energy deputy chairman and CEO, Sara Akbar, said: “The Ahmad-1X well is located in a potentially rich area and we look forward to continuing testing and development activities in the area to reach its maximum potential. This is a further contribution to the productive capacity of the Egyptian energy sector and we are glad to play a part in this success.”

OPEC to comply with the uncertain economic future

The Organization of the Petroleum Exporting Countries at its December meeting decided the crude production ceiling of 30 million barrels per day, considering the slow and volatile economy. The International Energy Agency Executive Director Maria van der Hoeven said: "OPEC took the right move, and we welcome OPEC's expressed commitment to making ample supplies available to the market. She added "This is particularly important given the fragile state of the world economy."

IEA expects Iraqi oil boom

Iraq is expecting to increase 1.87 million barrels per day during the period 2010-2016. This will raise its production to 4.36 million bpd. IEA expects that Iraq will provide 80% of the coming OPEC production increase by 2016. That will largely depends on growing political instability in Iraq after the departure of U.S. military forces its Iraqi territories. The IEA said also that the overall production capacity from OPEC members is forecast to increase from 2.33 million bpd to 3.81 million bpd by 2016.

Hormuz Strait - Hot Issue

Iranian threats to close Strait of Hormuz, became a strategic oil issue of global oil markets. Shutting down the 112-mile waterway will lead to cut off around some 15 million barrels of oil a day, most of them goes to Asian markets.

IEA Calls OPEC to stabilize oil production levels during 2012

The International Energy Agency (IEA) called on members of OPEC to keep production levels static through 2012 given unrest in the Middle East.

Production from the Organization of the Petroleum Exporting Countries reached a three-year high by the end of 2012 at more than 30 million barrels per day. This increase came largely from raising output from Saudi Arabia and Libya.

The IEA warned, that stocks held by major economic countries fell because of market strains brought on by supply disruptions from Libya during the war, and asked OPEC to keep production at current levels to rebuild these inventories during 2012.

Oil demand was slow because of the recession of 2008 which reduced oil prices with $100/ bbl by then.

MOU between Egyptian and Iraqi Parties to establish a refinery in Mosul.

The Iraqi oil ministry signed an initial form of a memorandum of understanding with the KALAA Egyptian Company to build a refinery in Mosul with a power of 150 thousand barrel/ day.

Mr. Ahmed Al-Shamaa, the deputy minister of refining affairs shown that the memorandum of understanding provides the basics to build an investment refinery in MOSUL fed by heavy crude oil from Najma & Kayara oil fields, and to direct its production to cover part of local consumption.

Mr. Shamaa added that one of the privileges granted to the investor according to the amended investment law is the possibility of opening gas stations affiliated with the Ministry's commitment to take advantage of oil products to be produced at the refinery.

And assured that the agreement gave the company three years to put the studies and designs which will determine the possibility of the late construction according to the production peak of the two refineries. As well as Mr. Shamaa shown that the ministry took the decision of the refinery bulling because it is the best way to make use of the heavy oil of the two fields

Source : Iraqi oil ministry

EU lifts sanctions on Libyan NOC

The European Union announced the lifting of sanctions on Libya's National Oil Corp. following the fall of Col. Moammar Gadhafi last month, ending a key hurdle to the meaningful return of the country's oil exports to European consumers. Alsi, Eni has restarted production in fifteen Libyan wells in Abu-Attifel, located at 300 km south of Benghazi.

18 months span before Libyan production Recovery

Gerhard Roiss, chief executive officer at Austrian energy company OMV said that it might be as along ad 18 months before oil production in Libya returns to pre-conflict levels. Libya was producing around 1.3 million barrels of oil per day before the war, accounting for a substantial portion of OMV's production in 2010.

Italian ENI restarts production in Libya

Eni has restarted production in fifteen Libyan wells in Abu-Attifel, located at 300 km south of Benghazi.

$4 per a million BTU - a new price for exporting the Egyptian gas to Jordan

Sources in the Petroleum Ministry expect the beginning of the new agreement application regarding the prices of the Egyptian gas exported to Jordan with the resumption of gas exporting. After the completion of legislative procedures, this agreement is scheduled for approval of the Ministers Councils of the two countries.

The committees including experts from the two countries carry out bilateral meetings and mutual visits to finalize the agreement of amending export prices of the Egyptian gas to Jordan in preparation for approval.

What is expected is that the new price in the signed agreement between the two countries is $4 per a million BTUs. The agreement stipulates exporting 240 million cubic feet per day (2.5 billion cubic meters annually) to meet most of the needs of power stations in Jordan. Jordan is currently looking for other alternatives to secure its needs of fuel and energy, and the establishment of the first nuclear plant to generate electricity is expected to start in the coming February.

Twelve million pounds – the highest transit fees in the history of the Suez Canal

Egypt had obtained in September 2011the highest fee of crossing the Suez Canal since its opening before international navigation 142 years ago, where an Italian vessel had paid a transit fee exceeding two million dollars. The Suez Canal Authority says that the ship capacity was 59 thousand tons and was carrying parts of oil platforms coming from the Red Sea in a 16-hour voyage across the channel to reach the Mediterranean Sea. The transit fees include trailing fees, guiding the vessel during the voyage, locomotives' rental fees and speeds' tests before allowing it to enter the Canal waterway in addition to the Canal transit security fees which reach $100 thousand which the vessel retrieves after crossing the Canal.

New gas Discovery in Iran

Deputy Iranian Oil Minister announced in August 2011 the discovery of gas field which contains 495 billion cubic meters with an estimated value of $ 133 billion.

The field which called "madar" is located east of the coastal city of Assalouyeh and contains 1.5 billion barrels of gas condensates, of which 658 million barrels are recoverable.

Iran, the fifth-largest oil producer in the world, estimates its reserves of oil and gas at about 155 billion barrels and 1165 trillion cubic feet respectively. Iran hopes to discover 2.5 billion barrels of recoverable oil and 23 trillion cubic feet of gas through its program for the development of a five years until 2015.

Iran holds the second largest natural gas reserves in the world after Russia, but international sanctions imposed on it led to the reluctance of western companies with money and technology to invest in it.

Kurdistan Government to stop exporting oil

The Iraqi Oil Minister Abdul-Karim Luaibi declared that the government of Kurdistan has stopped exporting crude oil from its territories as of September 11, 2011 without giving reasons. He added that "this is a great loss for the Iraqi economy, and the Kurds and Iraqis in general".

An official at Iraq’s North Oil Co. confirmed the suspension of crude exports from the Kurdish region to the Mediterranean port of Ceyhan in Turkey.

Falah al-Amri, Chairman of the State Oil Marketing Organization, said that Iraq has exported a total of 2.19 million barrels of crude a day in August.

The crude oil production in Kurdistan has fallen recently from 150 to approximately 55 thousand barrels per day given the unsolved differences between Baghdad and Erbil regarding the oil contracts of Kurdistan with foreign companies.

Iraq, the third-biggest producer in OPEC after Saudi Arabia and Iran, is struggling to boost oil exports, its main source of revenue for rebuilding an economy crippled by years of conflict and sanctions.

High oil prices leads to 5% growth rate for Middle East in 2011

The International Monetary Fund expected that the growth in the economies of the Middle East and North African oil exporters will witness a significant acceleration in 2011 in parallel with the increasing pace of crude oil production to about 26 million barrels per day in 2011 compared to 25 million barrels in 2010, which in turn will support the economies of the Gulf States. In its forecast for the region, the report added that the GDP in these countries (oil exporters) will grow by 5% in 2011, compared to about 3.8% in the previous year, 2010, and 1.1% in 2009.

Masood Ahmed, the Director of the Middle East and Central Asia region in the Fund has expected that most of the economies of the countries in the region grow at a faster pace in 2010 and 2011 than it was in 2009. The Fund estimates show that the total surplus of the current account of the economics of the oil exporting countries in the region will rise by about $80 billion between 2009 and 2011, based on the current oil prices, of which $50 billion is the surplus of the Gulf States. Besides, the IMF predicted the growth of the Saudi economy, the largest Arab economy, by about 3.4% in 2010, and around 4.5% in 2011, while the Fund expected the growth of the UAE economy by 2.4% in 2010 and 3.2% for the year 2011.

Poll surveys: $90/B for 2011

Poll surveys of the expectations of dozens of experts and analysts point out that there is a consensus that oil prices will rise; expectations range of what the price will be, but the general average is about $90 a barrel for 2011. Experts explain that this number is a result of some factors that will prevent the price further rise above that figure; these factors include the presence of a production capacity in the "OPEC" states exceeding five million barrels per day, which, in turn, will cast its shadows on oil prices and prevent them from soaring. Moreover, the factors include the continuation of the debt crisis in some European countries, the low rates of economic growth in the region, the continued weakness of the U.S. economy, the fear of the negative effects of the Chinese fiscal and monetary policies on the Chinese economy, the fear of the consumers' reaction if oil prices rose significantly in the same time where the unemployment rate in the United States reaches 9 percent, and the erosion of the effects of the "quantitative easing" and tax incentives on the economy with the passage of time.

Oil prices amid danger zone

International Energy Agency chief economist "Fatih Birol" said: oil prices were in the danger zone. He said they could rise further if turmoil continued in the Middle East and that may slow the recovery from the global economic crisis.

The global economy is more fragile now than it was in 2008. The growth has been driven by stimulus packages and austerity measures, and it is not likely to be able to absorb a rise to $140 like it did two years ago.

Oil prices have rallied over 20% in the last month, mostly due to fear that the growing violence in the Middle East will spread to other major oil producing countries like Kuwait, United Arab Emirates, and, especially, Saudi Arabia.

Another point of view says that fears of the spread of the revolutions in the Arab countries and the possibilities of their impact on the shortage of supplies are not the main reason behind the high oil prices. The accelerated economic growth in some countries increases the global oil demand and thus the price increases. The Asian tigers, especially China, are still growing strongly, as is Brazil in Latin America; in Europe, Germany has recorded its best performance in the past twenty years.

Oil Supply and Demand

The global oil market is likely to soften further in 2011. Global oil demand is forecast to grow 1 million barrels per day to 87.6 million b/d in 2011, about half the incremental growth in 2010. Non-OPEC supply is expected to rise around 500,000 b/d to 50.2 million b/d, with Latin America and the FSU the major drivers.

6 million bpd surplus in OPEC production capacity

OPEC countries have a surplus in their crude oil production capacity which reaches 6 million bpd. The Saudi Arabia accounts for 60% of the total surplus. Therefore oil prices will not witness great bounds in the presence of these surpluses which provide a climate of trust in the abundance of supplies. But there are still doubts over the readiness of this surplus within ninety days or less when necessary to meet the needs of the global oil consumption crises.

More Natural Gas to Japan

The earthquake and tsunami disaster in Japan cause severe damage to Fukushima nuclear plant, and to compensate the inoperative nuclear power, an increase in demand for natural gas is expected to reach 5 billion in 2011, with increasing demand for gas by about 2 billion cubic meters compared to its level of 88 billion cubic meters before the earthquake.

China: Teaming Up With Majors

China's national oil companies are increasingly embracing alliances with international oil companies, to secure technology or political benefits. China National Offshore Oil Corporation () declared recently that its intensive exploration program in 2009 resulted in 19 discoveries at home and abroad, and that helped boost its reserves replacement rate to 163%.

Kuwait Passes Expansionary Budget

Kuwait's national assembly approved the 2010/11 budget. The budget increased total expenditure in the 12 months to April 2011 by more than 34% from the previous year's plan, producing a 7.56 billion Dinar deficit as the budget is based on a very conservative oil price projection.

Experts Sees Output Falling Far of Iraq Target

Iraq's plan to hike its oil production from 2.5 million barrels per day currently to 12 million b/d by 2017 is unrealistic and should not be taken seriously, according to a panel of experts. On the other hand, Baghdad now is in advanced talks with an international oil company for a deal to develop the northern Bai Hassan oil field, and interest has been shown in the giant East Baghdad field too.
Ghana may be one of oil producers

With the start-up of the 1.2 billion barrel Jubilee field, the West African state is on the verge of an oil bonanza. There are some encouraging signs,with government proposals to channel oil revenues into infrastructure and development, but a high risk to use GNPC as a tool for patronage. There's a big exploration buzz around much of the Gulf of Guinea.
New Gas Discoveries in Iran

Iran’s Oil Minister announced the discovery of two new natural gas fields. "Forouz gas field is located in the Persian Gulf near Kish island and has 700 billion cubic metres of gas reserves". When brought on stream, the field could produce around 70 million cubic metres of gas daily. The combined gas reserves of the two fields amount to around 800 billion cubic metres (28 trillion cubic feet), he told reporters.

Iraq Oil Reserves will last 3 centuries

Iraq’s proved reserves are estimated to 115 billion bbl, and its potential reserves exceed 215 billion bbl. These figures put Iraq on a distinguished rank with Saudi Arabia. It would take Iraq 300 years to deplete its reserves at the production rate of 3 million b/d. 

Most of Iraqi oil reserves concentrates in its seven largest fields (Rumaila South and North, Kirkuk, East Baghdad, Majnoon, West Qurna, and Zubair) contain about two thirds of total reserves.                      

Iraq’s reserves shall provide the global energy market with huge amounts of reserves which will defers the setting in of peak oil when world oil production starts declining. Such contribution to the global energy market is imminent.
Russia to Offer More Incentives for Industry

Russia is steadily moving closer to introducing a new tax system designed to help oil and gas producers develop new fields and compensate them for plummeting production at older ones. But parameters of the new system, as well as its time frame, remain vague.

US to encourage Ethanol for Newer Cars

 The US Environmental Protection Agency (EPA) granted a waiver that will allow cars and light trucks from model year 2007 or later to run on gasoline blended with up to 15% ethanol. The limit on ethanol content was previously set at10% for all such vehicles.

The Russian Oil Industry Roadmap

Russian crude oil output will not rise significantly in the next 10 years, with some 100 of the country's output resting on existing rather than new fields. Russia will invest heavily in upgrading and expanding its pipeline network, and strengthen its downstream sector.

Russia

Big Problems in Oil Sector Russia sits on a privileged position among the oil, which share the first and second place in the production of oil with Saudi Arabia, and is ranked second after the United States in terms of refining capacity.
In recent years the problems rumination on the oil sector, including the lack of investments, the obsolescence of the means of production techniques, and the lack of exploration of new fields, and the failure to resolve the problems associated with the basic structure of production, and poor control of the State sector. And that economic growth depends on the development of the oil sector and the elimination of the problems that could impede the normal functioning, the problems of the sector remain unresolved Christolh of an essential factor for the growth to an obstacle to economic development.
The decision of the government to lift customs duties on oil exports to the oil companies to $ 140 per ton from 1/8/2005 to reduce the profits of these companies. Because the local market is governed by large companies monopoly control to the rate of 65% of the market (including companies Yukos and Lukoil) have resorted to these companies to offset losses by raising the prices of petrol in the local market. The rise of fuel prices in the local market a negative impact on the performance of other sectors, as well as a key factor behind the high inflation rates. And now trying to combat the monopoly in Russia to address what it considers violations of trade in petroleum products because of the agreement between Russian companies conspiratory.
Although the increase in world oil prices last year contributed to an increase in oil revenues for Russia, but the returns are not good for employment in the service of the oil sector, development and modernization, or to advance the development in Russia in general. According to the energy strategy for the period up to 2020 on the employment of 24 billion dollars annually in the oil sector, while the actual investment amounting to half of that figure due to weak rule of law and the absence of tax incentives and applied by many countries of the world to stimulate investment in the exploration of oil.

Venezuela

Model for dealing with the oil wealth Venezuela is considered one of the first countries to open their doors to foreign investment. Having dealt with the recent oil wealth rational manner worthy of attention from the spirit of full awareness that the depleted oil wealth, and that oil revenues will not be eternal and they are vulnerable to the vagaries of global markets and therefore to cope with setbacks up to the borders of disasters. Therefore taken a serie

s of decisions involving the use of a wise and massive revenues for oil wealth to solve the current problems of domestic waste before the current opportunity that came with the increases in oil prices.
Venezuela has 80 billion barrels of crude oil are 8.8% of OPEC reserves and about 6% of the world, also has 152.4 trillion cubic feet of natural gas constitutes 4.8% of the reserves of OPEC, and about 2.5% of the world's total.

JV refinery developments Between UAE & Libyan firms

After signing initial agreements last year on improving the 220,000-bpd Ras Lanuf plant, LIBYA National Oil Company and the UAE Trusta recently signed an agreement to set up a joint venture to develop the mentioned oil refinery in Libya. The agreement was signed by Dr Shukri Ghanem, Chairman of the NOC and Isa Abdullah Al Ghurair, Deputy Chairman of Trusta. The new joint venture company, named Lirco, will be established at a paid up capital of US$375mn. NOC and Trusa will own 50 per cent each in the new company.