By Ed Crooks in London and Catherine Belton in Moscow
Published: May 1 2007 03:00 | Last updated: May 1 2007 03:00

Urals Energy, the oil and gas company, has said it is confident it will not run into trouble with the Russian government, in spite of its report yesterday of a 400 per cent increase in its proven and probable reservesto 577m barrels of oilequivalent.

Russia’s environmental watchdog agency said yesterday it was waiting for the results of a probe by the FSB, the security service, into whether several London-listed companies operating in Russia, including Urals Energy, were misreporting their reserves.

A spokesman for the Rosprirodnadzor agency said the FSB was investigating whether figures reported by some small and mid-sized companies corresponded with reserves tallied in state files. “We shall know what type of company Urals Energy is in three weeks,” said Rinat Gizatullin, the spokesman.

The agency is run by Oleg Mitvol, the Russian official who led the state campaign over alleged ecological violations against Royal Dutch Shell’s Sakhalin-2 venture. Two weeks ago he accused Aim-listed Imperial Energy of misreporting its reserves.

However, Urals said yesterday that it did not expect to give the Russian authorities any cause for concern.

Even after the latest increase in its proven and probable reserves, it is re-porting a lower figure to investors than the estimate filed with the ministry using Russian standards.

Urals’ shares closed up 37½p at 425p.

Mr Mitvol said other companies being investigated included Celtic Resources Holding Company, Victoria Oil and Gas and Bema Gold.

Copyright The Financial Times Limited 2007

By Miranda Green, Financial Times
Published: May 01, 2007

When it comes to attracting those graduates who want to work in engineering, the traditionally glamorous areas of automobile, aerospace and defence still seem to hold the trump card.

“It’s the boys’ games,” says Oliver Viel of Trendence. “Aeroplanes, rockets and cars still interest them the most.” According to the researchers who conducted the survey, these companies attract potential recruits in their droves because of long-established brands.

BMW, for example, has consistently topped the employer rankings across Europe. “They have a phenomenal brand and because of that they are really spoiled when it comes to recruitment,” says Mr Viel. But results in the UK show interesting differences with graduates in other parts of Europe, because the British students who favour a career in engineering seem to have a wider view of where they might like to work.

Perhaps because of the traditional importance of the North Sea, UK graduates are also considering the oil industry - Shell and BP make it into the top ten, with Exxon Mobil not far behind. In the construction industry, Atkins and Arup make it into the survey’s top ten, with Balfour Beatty securing twelfth place.

Construction is buoyant, with the 2012 London Olympics and the Liverpool City of Culture 2008 projects bolstering demand. Major infrastructure developments in water, road, rail and energy have also led to predictions of growth during the next few years.

According to Stephen Hill, managing director of Hill McGlynn UK, a recruitment company specialising in construction, the fact that you can see the physical output of your work is what attracts many to the industry. “One of the great things is that you can drive past some great new building and say ‘I did that’.”

Mr Hill believes that a career in construction offers a lot of the things graduates tend to look for in their future working lives: variety - because most of the work is based on time-limited projects - travel, as well as responsibility and creativity. There is also a serious skill shortage, so the prospects are excellent for graduates - particularly once they have amassed a bit of experience.

A big effort is being made to engage with the education system and inform students of the benefits of working in a sector that has previously suffered from a poor image.

Alongside presentations on campuses, and schemes to sponsor students, some companies have even gone into schools to encourage pupils to choose science subjects for GCSE and A-levels.

Costain, for example, runs a programme called “Building Awareness”, which aims to motivate young people to consider construction. Meanwhile, the Royal Academy of Engineering runs several schemes to improve links between industry and the education system, including the London Engineering Project, a £4m partnership of local schools, colleges, industries and the government.

All of this activity is starting to have an effect. Figures from the University and Colleges Admissions Service show the number of students choosing engineering courses at university has started to rise. According to the Engineering Employers’ Federation this could be due to the introduction of higher university tuition fees, which are making students think more carefully about which degree will help them pay off their debts.

The Federation says it is optimistic: “Last year, engineering graduates had a starting salary 7 per cent higher than average and the sector is now shedding its image as a sector of the past and becoming ever more attractive as a dynamic, modern sector at the cutting edge of science & technology.”

By Joe Leahy in Mumbai
Published: May 1 2007 03:00 | Last updated: May 1 2007 03:00

An attack by the fledgling air force of Sri Lanka’s Tamil Tiger separatists has thrown the island’s international airport into disarray, with foreign carriers suspending or altering flights for fear of being caught up in an escalating air war.

In a blow to the island’s tourism industry, Hong Kong’s Cathay Pacific Airways and Emirates Airlines suspended services to Col-ombo, while Singapore Airlines stopped night flights.

The attack, in which light aircraft flown by the Tigers dropped homemade bombs on a Shell oil storage facility near Colombo on Sunday, also drove the island’s stock market and rupee lower, as investors worried about the impact on the economy.

The raid, only the third by the Tigers since they unveiled their air wing little more than a month ago, caused relatively little damage. But the incidents mean the government - and the rest of the world - will have to start taking the Tigers’ air threat more seriously. They are now believed to be the only group officially designated as terrorists by the US and the European Union that has sea, ground and air military capabilities.

“Earlier they had a sea-going arm, they had a land arm, now we are seeing an air arm. So, however primitive it remains, this is the only non-state actor that is boasting of all this, including holding a mass of land area where they are running their own parallel administration,” says Iqbal Athas, a defence analyst in Colombo.

The air attacks come at a delicate time for Sri Lanka. The government and the Tigers, who have been fighting for two decades for a separate ethnic Tamil homeland in the north and east, have all but abandoned a ceasefire they signed in 2002.

Over the past year the government, with the help of a breakaway Tiger faction known as the Karuna group, has driven the rebels out of significant territory in the east. The rebels have responded with attacks on civilians and soldiers. But until the air attacks, the propaganda war had been going the government’s way. President Mahinda Raja-pakse was starting to convince a sceptical public that a military victory might be possible. In recent weeks he has tried to turn the air attacks to his advantage, describing the Tigers’ newfound air capabilities as a threat to Sri Lanka, India and the region.

But the boldness of the air sorties has left the government looking flat-footed. In the initial attack in March, the Tigers’ first air raid, they were able to fly undetected to the main air force base in Colombo, drop bombs and return home safely. On Sunday they took advantage of the nation’s preoccupation with the cricket World Cup final, in which their team was battling Australia, to launch their early-morning attack.

The air strategy has enabled the Tigers to add a new dimension to the war, Mr Athas said. The group, which some say was the first to make full tactical use of suicide bombing, have once again invented a way of unsettling a conventional opponent. “Every area that you can see - the residences of VIPs, the parliament complex, the ports or military installations - are all going to become military targets. Now the fear factor is in hand,” he said.

It has also provided them with a vital propaganda victory to shore up support at home and among their financial backers in the Tamil diaspora.

“They’ve re-established their reputation for daring. That is what psychologically they needed to do,” says Paikiasothy Saravanamuttu, the executive director of the Centre for Policy Alternatives in Colombo.

The air attacks are also worrying for the government because they indicate that the Tigers have been busy rearming during a ceasefire in which they have already set up their own police stations, courts and administrative offices in the north.

The Tigers are suspected of persuading foreign Tamils to help them speed up the development of the air wing, on which they originally began working in the 1990s. Foreign engineers are believed to have helped rig up basic electromagnetic systems to drop the bombs from single-engine Czech Zlin Z-143 trainers smuggled into the country in parts.

Others argue it would be wrong to overestimate the advantage the Tigers have won from the air attacks. The split with the Karuna rebel faction has cost the Tigers not only territory but probably also access to weapons supply networks in south-east Asia, which were run from the island’s east, says Robert Karniol, the Asia-Pacific editor of Jane’s Defence Weekly.

The Tigers remain as defiant as ever. “The Sri Lankan military, especially the air force, are adamantly trying to prove they will always seek a military solution,” a Tigers military spokesman told Reuters yesterday. “So we have no other way than to take our own measures.”

Background

There are few examples of air power being used by guerrilla movements. In the Biafran war in 1969 rebel forces flew MFI-9s - tiny Swedish training aircraft equipped with light rockets - from bush airstrips, destroying several Nigerian jets on the ground. More recently, Hizbollah flew Iran-supplied drones armed with explosives from southern Lebanon into Israel.

Copyright The Financial Times Limited 2007

POSTED: 1841 GMT (0241 HKT), April 30, 2007

LONDON, England (Reuters) — European shares rose on Monday on a fresh wave of merger activity, including a proposed tie-up between Germany’s Deutsche Boerse and U.S. equity options market International Securities Exchange.

Cable & Wireless Plc — one of the top gainers among UK stocks — rose 4 percent although the British telecoms group played down reports it was considering a break-up, saying talk it was looking to spin off its businesses was premature. Oil stocks, including index heavyweights BP and Royal Dutch Shell, were some of the biggest percentage gainers as crude futures held just shy of $68 a barrel after rising 3.0 percent last week.

BP shares gained 0.7 percent, while Shell rose 0.8 percent, even with a 0.8 percent decline in London Brent crude futures, which held just below $68 a barrel.

The pan-European FTSEurofirst 300 index closed 0.16 percent higher at 1,570.18 points.

The index has gained 3.6 percent in April, making this its best month since Sept. 2006. The FTSEurofirst 300 has only posted two monthly declines in the last six months and is up almost 6 percent for the year to date.

“Strong liquidity and M&A are bullish factors for the market,” said Teun Draaisma, an equity strategist at Morgan Stanley.

Europe has emerged as the world’s biggest market for mergers and acquisitions so far in 2007, with deals valued at nearly $862 billion involving European targets, data from research firm Dealogic showed on Friday.

But the number for 2007 includes two rival bids for Dutch bank ABN AMRO.

Tempering gains somewhat on Monday, were soft data on business activity in the auto-intensive U.S. Midwest region in April, as well as benign inflation figures that reinforced the view that the U.S. economy is slowing.

Deutsche Boerse said it plans to offer $2.8 billion to buy the New York-based ISE, the largest U.S. equity options market.

Deutsche Boerse’s shares rallied 1.4 percent to 172.55 euros, making it the third-largest gainer on Frankfurt’s DAX.

The DAX ended 0.4 percent higher, while London’s FTSE 100 index rose 0.48 percent, aided by Cable and Wireless and BP, among others.

Paris’ CAC 40 gained 0.5 percent following a series of broker upgrades to French construction and materials companies.

French utility Suez and construction groups Lafarge and Saint Gobain rose after positive brokerage comments.

Analysts said equity markets looked attractive in the medium term, although there could be some blips in the near future.

“Our bullish target for Q2, for mid-year have been reached already in April in some cases,” said Gerhard Schwarz, head of global equity strategy at HVB.

“That clearly shows that there has been a very strong run and this over the shorter term probably invites some profit taking, markets are a little bit overbought,” he said, adding that there was “underlying strength” in equities.

Volumes were relatively thin ahead of a holiday in many markets in Europe on Tuesday.

Shares of Telecom Italia and Pirelli fell after Pirelli sold control of Italy’s largest phone group to a group of Italian investors and Spain’s Telefonica at a premium to market prices — but no offer to the public.

Telecom Italia shares shed 2.3 percent, while Pirelli dropped over 1.0 percent, reversing earlier gains.

Telefonica shares dropped 0.4 percent.

Copyright 2007 Reuters. All rights reserved.

Monday April 30, 6:17 PM

April 30 (Reuters) - Maritime disputes may hold up prospective energy developments in Asia for years or decades despite high oil and gas prices, but analysts say joint development is still on the cards.

Here is a factbox on some of the disputed areas.

GREATER SUNRISE — East Timor/Australia

The $5 billion development of the Greater Sunrise gas fields in the Timor Sea may begin soon, after East Timor’s parliament ratified a pact with Australia in February to evenly split royalties. The fields are estimated to hold 8 trillion cubic feet (Tcf) of gas and up to 300 million barrels of condensate.

Greater Sunrise was frozen in 2004 while waiting for Canberra and Dili to resolve their differences over the revenue split.

There is still debate on whether to transport the gas to Darwin in northern Australia, process it at sea at an offshore plant, or bring it via pipeline to East Timor for export from an onshore liquefied natural gas (LNG) facility. 

The project involves Woodside , Royal Dutch/Shell and Japan’s Osaka Gas Co. Ltd. .

SPRATLY ISLANDS — China/Vietnam/Taiwan/Malaysia/Philippines

The national oil companies of China, the Philippines, and Vietnam signed a three-year joint-seismic accord in 2005, to cooperatively assess oil and gas deposits.

Their proximity to nearby oil and gas-producing fields, discovered in the 1960s, bolstered the belief that they harbour rich untapped reserves of oil and gas.

Modern disputes date back to the 1930s, with claims bolstered by references to historical maps and literature. In 1988, China and Vietnam fought a brief naval battle near the Spratly reefs, in which more than 70 Vietnamese sailors died.

PATTANI TROUGH — Thailand/Cambodia

The Gulf of Thailand is already a gas-producing zone but 27,000 sq km (10,430 sq mile) is disputed between Thailand and Cambodia. It involves no territory.

Thailand produces natural gas but still relies on imports, which make up about 27 percent of consumption running at 565,854 barrels of oil equivalent per day (boepd).

Cambodia, which relies on foreign aid, hopes to begin pumping oil from offshore fields in the Gulf of Thailand by 2009.

JAPAN/CHINA

China’s CNOOC Ltd. said in April it had begun producing gas at the Tianwaitian field in the East China Sea despite Japan’s objections to development. It is also ready to begin producing from the nearby and larger Chunxiao field as soon as Beijing gives it the go-ahead, a source told Reuters.

A Japanese government official quoted Chinese Premier Wen Jiabao, on a visit to Tokyo in April, as proposing that high-level talks about the dispute could be held next month.

Beijing and Tokyo disagree over the boundary between their exclusive marine economic zones and Japan objects to Chinese development of gas fields near the border, although they are in an undisputed area. Tokyo fears drilling there could inadvertently drain Japanese gas through a honeycomb of seabed rocks.

The amount of fuel found so far, in a cluster of fields in the Xihu trough and nearby Pinghu field, is relatively small. CNOOC’s gas output from the Tianwaitian field last year was equivalent to a relatively modest 4 million cubic feet per day. But an industry source said actual output was now running at 500,000 cubic metres a day (17.65 million cubic feet), and when Chunxiao comes on line, annual production at the two fields could reach 600 million cubic metres a year.

Chunxiao has by far the biggest net gas reserves, and operator CNOOC Ltd. puts these at just 4.8 billion cubic metres — enough to meet a month of last year’s demand.

VIETNAM/CHINA

China has disputed Vietnam’s right to a $2 billion pipeline project, in which BP aims to carry gas nearly 400 km (249 miles) from two new offshore fields to Vietnam’s south coast.

The two fields, Moc Tinh, located in Block 05.3, and Hai Thach, in Block 05.2, are near the Nam Con Son gas project, Vietnam’s biggest, where BP works with Petrovietnam, India’s Oil & Natural Gas and ConocoPhillips to supply about 13.2 million cubic metres per day of gas.

The two countries agreed last year to increase joint oil and gas exploration efforts in the Gulf of Tonkin and continue talks about disputed maritime areas further south.

China seized the Paracel Islands, a set of islets just north of the Spratly group, in 1974 and has occupied them since despite Vietnamese protests.

MALAYSIA/BRUNEI

Malaysia and Brunei said last year they would speed up efforts to resolve a dispute over the ownership of two large oil exploration blocks off the northwest of Borneo in the South China Sea. The row has stopped deepwater exploration in the area.

In 2003, Malaysian state-owned Petronas [PETR.UL] awarded deepwater blocks L and M to Murphy Oil . But Brunei awarded a production-sharing contract (PSC) to France’s Total for Block J and was negotiating PSC terms with Shell for adjacent Block K.

Murphy made a sizeable discovery in a Malaysian block near the disputed area in 2003, with oil from the Kikeh field expected to start flowing by this September from reserves at between 400 million and 700 million barrels.

AMBALAT — Malaysia/Indonesia.

Indonesia urged Italy’s Eni in March to explore for oil and gas in the Ambalat block, though an official at its foreign ministry has said Indonesia and Malaysia are still in talks over the border of the two countries, including Ambalat.

Eni operates the Ambalat block under a PSC with the Indonesian government signed in 1999. Some parts of the block overlap with Malaysia claims and both sides have handed out contracts to major foreigns firms in the area.

In March 2005, Indonesia sent warships and fighter jets to the area, after Malaysia struck an exploration deal early in 2005 with Royal Dutch Shell Plc and Petronas. Source: Reuters

Jiffy Lube and Pennzoil Offer Drivers Free Oil Change in First-Time Buy-One-Get-One-Free Promotion

HOUSTON, April 30 /PRNewswire/ — As the busy summer driving season approaches, Jiffy Lube(R) and Pennzoil(R) are giving drivers an easier way to make an important change — to their motor oil. Between April 29 and June 4, 2007, drivers who visit any participating Jiffy Lube service center and purchase a Jiffy Lube Signature Service(R) Oil Change with any conventional, specialty or synthetic Pennzoil or Quaker State(R) product can get the next one free.

“Our customers will be seeing double this summer,” said Lisa Carlson, global director of marketing for Jiffy Lube International. “A Jiffy Lube Signature Service Oil Change is an easy way to care for your vehicle. This buy-one-get-one-free promotion gives people another great reason to visit the preventive maintenance experts at Jiffy Lube and prepare their vehicles for summer with top-quality Pennzoil motor oils.”

Through June 4th, customers who take advantage of this buy-one-get-one- free promotion will receive a will receive a mail-in form for a coupon that is redeemable through the end of September 2007.

“Summer driving can put extra stress on a vehicle,” said Troy Chapman, Pennzoil marketing team leader. “Many vehicle manufacturers recommend changing motor oil and adhering to the routine maintenance schedule for severe driving under these conditions. Additionally, a well-maintained vehicle, protected by a quality motor oil such as Pennzoil, may work more efficiently, sometimes resulting in improved gas mileage.”

    A Jiffy Lube Signature Service Oil Change includes:

    * Up to five (5) quarts of quality motor oil
    * Replacing the oil filter
    * Visually inspecting the antifreeze/coolant reservoir levels, engine air
      filtration system, serpentine belts, brake fluid level in transparent
      reservoirs, wiper blades, and exterior lights
    * Vacuuming interior floors
    * Cleaning exterior windows
    * Lubricating the chassis (when applicable)
    * Checking tire pressure
    * Checking and topping off transmission/transaxle fluid, differential
      fluid, power steering fluid, windshield washer fluid, and battery water
      (excluding sealed batteries)
    * Free top-offs on motor oil and other vital fluids for up to 3,000 miles
      between service visits
    * A service review which includes providing the vehicle manufacturer’s
      severe-service recommendations based on the vehicle’s current mileage
Jiffy Lube has more than 2,200 convenient locations throughout North America. To find a nearby Jiffy Lube service center or learn more about the buy-one-get-one-free promotion, visit http://www.jiffylube.com .

About Jiffy Lube

Jiffy Lube, with more than 2,200 service centers in North America, serves approximately 27.5 million customers each year. Jiffy Lube pioneered the fast oil change industry in 1979 by establishing the first drive-through service bay, providing customers with fast professional service for their vehicles. Headquartered in Houston, Jiffy Lube International is a wholly owned, indirect subsidiary of Shell Oil Company. Visit http://www.jiffylube.com to learn more about Jiffy Lube and vehicle care.

About Pennzoil(R)

Pennzoil(R) is the #1-selling motor oil and one of the most trusted brands in America. The Pennzoil line of quality products meet or exceed industry specifications to offer exceptional engine protection, and include Pennzoil Platinum(R) Full Synthetic motor oil, Pennzoil(R) Advanced Protection motor oil, Pennzoil(R) SUV, Truck & Minivan motor oil, Pennzoil High Mileage Vehicle(R) motor oil, and Pennzoil Marine(R) engine oil. For more information about Pennzoil products, please visit http://www.pennzoil.com

Pennzoil is produced and marketed by Shell Lubricants. The term ‘Shell Lubricants’ collectively refers to the companies of the Shell Group engaged in the lubricants business. Shell lubricants companies are global leaders in lubricants and operate in approximately 120 countries worldwide. They manufacture and blend products for use in a range of applications from consumer motoring to food processing and heavy industry to commercial transport. The Shell portfolio of top quality lubricant brands includes Pennzoil(R), Quaker State(R), FormulaShell(R), Shell Tellus(R), Shell Cassida(R), Shell ROTELLA(R) T, Shell Spirax(R) and a portfolio of car care products and Jiffy Lube(R) services.

Disclaimer statement:

This announcement contains forward-looking statements that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a variety of variables which could cause actual results, trends or reserves replacement to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, risks associated with the identification of suitable potential acquisition properties and targets and the successful negotiation and consummation of transactions, the risk of doing business in developing countries, legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Please refer to the Annual Report on Form 20-F for the year ended December 31, 2004 (as amended) for a description of certain important factors, risks and uncertainties that may affect the Shell Group’s businesses. Neither Royal Dutch Shell plc nor any member of the Shell Group undertakes any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or other information.

Cautionary Note to US Investors:

The United States Securities and Exchange Commission (’SEC’) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “expected producible resources” and “amount of reserves we expect to produce”, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

Web site: http://www.jiffylube.com/ http://www.pennzoil.com/

© 2007 PR Newswire. All Rights Reserved.

Disclaimer: Information contained on this page is provided by companies featured through PR Newswire. PR Newswire, WorldNow and this Station cannot confirm the accuracy of this information and make no warranties or representations in connection therewith.

April 30 (Reuters) - AmeriGas Partners L.P. said its operating partnership has agreed to acquire U.S. propane distribution business of Royal Dutch Shell.

The terms of the deal were not disclosed

The sale is expected to occur during the second quarter. The business, Shell Gas (LPG) USA, sells over 13 million gallons of propane annually to nearly 20,000 customers from twelve locations in Michigan.

(Reporting by Neetha Mahadevan in Bangalore)

© Reuters 2007. All Rights Reserved

Kamarul Yunus,
Published: Apr 30, 2007

PETROLIAM Nasional Bhd (Petronas) is interested to participate in the development of infrastructure for liquefied natural gas (LNG) and gas storage projects in the Netherlands.

The national oil company signed a memorandum of understanding (MoU) with N.V. Nederlandse Gasunie (Gasunie) recently that will pave the way for future collaboration between the two companies in LNG and gas storage projects.

The signing was held on the sidelines of the LNG15 Summit in Barcelona, Spain last Wednesday.

A spokesman at Gasunie, Hansch van der Velden, said both Petronas and Gasunie are looking at developing the LNG infrastructure in the Netherlands.

“Gasunie, together with N.V. Vopak, the largest independent tank terminal operator in the world, is developing a new LNG receiving terminal near Rotterdam.

“Petronas could have a role in this project. The final investment decision on the project called the Gate terminal is expected later this year,” he told Business Times.

The Gate terminal will have an annual capacity of between eight billion and 12 billion cubic metres (bcm) of gas and aims to supply north-western Europe to help meet the continent’s growing energy needs.

Royal Dutch Shell will be the largest capacity user at the terminal, with up to 4 bcm a year, while German utility RWE and France’s EDF have secured three bcm each.

The terminal, which already has eight customers, is now waiting for them to arrange LNG supplies, probably from the Middle East and the Mediterranean region, before taking a final investment decision by mid-2007.

Petronas, meanwhile, is currently undertaking the Dragon LNG project in Britain, with cooperation from UK’s BG Group. The terminal is expected to be ready by the end of this year.

Asked whether Petronas would be offered a stake in the Gate terminal project, Velden said it is too early to comment on the matter.

Besides the LNG infrastructure, he said through the MOU, both Petronas and Gasunie would be able to exchange their experience in the development of LNG and natural g