October 4th, 2006:

The struggle to wrest control of resources from western companies is the backdrop to tension in Russia and Africa

Tom Parfitt in Yuzhno-Sakhalinsk
Wednesday October 4, 2006

It was a face-off that seemed to encapsulate the growing conflict between a bullish Kremlin and the foreign oil companies working in Russia. On one side was Oleg Mitvol, 6ft 2in and dressed in a black coat, the Kremlin’s attack dog leading the charge against the vast Sakhalin-2 oil and gas development off Russia’s far east coast. Mr Mitvol has vowed to do “everything in his power” to stop the project and force an environmental clean-up. Against him: Mike D’Ardenne, 200lb bearded Australian oilman in a hard hat, representing the foreign consortium led by Shell which is running the $20bn (£11bn) project. read more

THE WALL STREET JOURNAL ONLINE
October 3, 2006 7:16 p.m.

Crude-oil futures tacked a 4% slide onto Monday’s 3% haircut, settling at less than $59 a barrel on the New York Mercantile Exchange for the first time since February. Rising global supplies, slack demand and a mild Atlantic hurricane season have contributed to oil’s steep decline. Here is Tuesday’s roundup of oil and energy news.

* * *
CHEMOIL PULLS IPO: Chemoil Energy Ltd. said its initial public offering of up to $374 million in stock, set to be Singapore’s second-largest share sale this year, has been withdrawn. Chemoil, a U.S.-based marine-fuel supplier half-owned by Itochu Corp. of Japan, said it pulled the IPO “due to considerations relating to valuation.” Some market participants have said the recent fall in oil prices resulted in potential investors demanding a less-expensive valuation. read more

Associated Press
October 3, 2006 7:20 p.m.

PORT HARCOURT, Nigeria — Security officials said militants kidnapped several foreign oil workers Tuesday in Nigeria’s oil-rich southern delta region, a day after 25 Nigerians were taken hostage in an attack on a military convoy escorting oil workers.

Police officers in the town of Ekit, outside the main city of Port Harcourt, said between four and seven foreigners were seized in the raid there, but they gave no details.

A top Nigerian security official confirmed the kidnapping, but also had no details. All the security officials spoke on condition of anonymity, citing prohibitions on speaking with the media. read more

Published: Oct 04, 2006

SECURITY problems in the Niger Delta have escalated after 25 Nigerian workers were abducted during an attack on a convoy of barges, writes Martyn Wingrove .

Local militants attacked the service barges in the Cawthorne Channel, killing up to 10 soldiers and capturing offshore contractors working for Royal Dutch Shell.

It is thought the attacks were orchestrated by friends of jailed tribal chief Mujahid Dokubo-Asari, but some also think it was aimed at stealing the fuel supplies from the barges. read more

Published: Oct 04, 2006

A LARGE contingent of gardai will again be on duty in north Mayo this morning to ensure construction workers can enter the controversial Shell terminal for the Corrib Gas pipeline.

Up to 170 gardai were drafted into the Bellanaboy area early yesterday morning to make sure work at the 200m site could resume after a delay of more than a year.

The project was halted in early summer last year after the jailing of the Rossport Five over their continued protest at the pipeline and terminal over health and safety concerns. read more

By: Lorna Siggins, Western Correspondent, in Erris, Co Mayo, Irish Times
Published: Oct 04, 2006

A large Garda contingent is expected to be on duty in north Mayo again today to escort Shell staff and contractors into the Corrib gas terminal site in Bellanaboy.

GardaI yesterday removed protesters and placed them behind crash-barriers. They also removed vehicles.

GardaI also confirmed that objectors had been filmed by them.

The Shell to Sea campaign says it will maintain its peaceful protest. It described the security operation initiated early yesterday as akin to “martial law”. read more

By: Michael Harrison, The Independent – United Kingdom
Published: Oct 04, 2006

Britain’s big energy suppliers came under renewed pressure to cut bills yesterday after wholesale gas prices fell below zero, forcing North Sea producers to pay customers to take supplies off their hands.

In a highly unusual development, spot prices fell to minus 5p a therm due to a combination of weak demand and excess supply in the system, catching out a number of big producers, including BG and Shell.

This is the first time in nine years that wholesale prices have fallen below zero. But domestic gas users failed to benefit because all the free gas was snapped up by power stations and large industrial consumers. This caused prices to rebound later in the day. read more

By Ed Crooks, Energy Editor
Published: October 4 2006 03:00 | Last updated: October 4 2006 03:00

While the big beasts of the energy world are being stalked by the Russian authorities, some of their tiny competitors are making a living in niches out of sight of the Kremlin.

Several Aim-listed companies are involved in Russian oil and gas, including Imperial Energy, Victoria Oil and Urals Energy.

The Russian moves against Shell and BP have unnerved investors in the smaller companies. Shares in Urals Energy, for example, an explorer and producer with operations in Sakhalin Island off Russia’s far eastern coast and across the country, fell by 17 per cent last month. read more

Tue Oct 3, 2006 8:04pm ET
By Tom Ashby

LAGOS, Oct 3 (Reuters) – Suspected militants invaded a residential compound for foreign oil workers in Nigeria on Tuesday, killing two guards and kidnapping at least five expatriates, oil industry sources said.

The workers — including three Britons and two Malaysians — were taken from the compound in Eket, close to the operational base of ExxonMobil (XOM.N: Quote, Profile, Research), which exports about 800,000 barrels a day from Africa’s top oil producer. read more