July 24th, 2007:

By Robert Orr and Neil Hume
Published: July 24 2007 03:00 | Last updated: July 24 2007 03:00

Falkland Oil & Gas spearheaded a surge in shares of companies operating in and around the South Atlantic islands as the exploration group said it was near to a deal with a resource company. The potential partner remains unknown, although Shell of the UK and Brazil’s Petrobras have shown interest in the area.

While Falkland jumped 52 per cent to 123p, Borders & Southern Petroleum rose 22.5 per cent to 34p, Rockhopper Exploration added 15 per cent to 46p and Desire Petroleum gained 14.2 per cent to 32¼p. Falkland Islands, a holding company that owns a 16 per cent stake in Falkland, rose26.2 per cent to 385p. read more

By Ed Crooks
Published: July 24 2007 03:00 | Last updated: July 24 2007 03:00

BP, one of the three biggest western oil companies, is seeking more joint ventures with Russia and other resource-rich countries as a way to deliver growth.

The company today kicks off the reporting season for the international oil groups and is expected to report a drop of about 16 per cent in second-quarter profits, compared with the equivalent period of last year.

On Thursday, Royal Dutch Shell reports, with Citigroup expecting an 11 per cent rise in second quarter profits to about $6.75bn (£3.3bn), and ExxonMobil could post an increase in profits from last year’s $10.4bn second quarter record. However, Eni of Italy also reports on that day, and Citigroup is expecting a drop in its profits of 10 per cent. read more

EXTRACT: Shell last year set up a technology centre in India delivering high-end technical studies, projects and services for the group’s global businesses.

By Joe Leahy
Published: July 24 2007 03:00 | Last updated: July 24 2007 03:00

Most people know that India’s talent crunch is driving up the wage bills of the country’s computer services outsourcing companies. But less well-known is the impact the rapid growth of the IT industry is having on more traditional sectors in the country’s domestic economy. As India develops, its own demand for civil, mechanical, construction and other types of engineers is soaring. read more

By Ed Crooks
Published: July 24 2007 03:00 | Last updated: July 24 2007 03:00

Today’s half-year results for BP, presented by Tony Hayward for the first time since he took over as chief executive in May, are expected to be a stark reminder of the challenge the company faces.

Analysts think profits for the second quarter will be about $5bn (£2.4bn), roughly $1.5bn behind those of BP’s great rival Royal Dutch Shell, which reports on Thursday.

The company still has many strengths. It has good assets in places such as Angola and Azerbaijan and with the resolution of the dispute over the Kovykta gas field in eastern Siberia, it appears to have stabilised its position in Russia, albeit at the cost of losing control of the field at a knock-down price. The potentially significant exploration deal signed with Libya has raised hopes about BP’s future. read more

By Ed Crooks
Published: July 24 2007 03:00 | Last updated: July 24 2007 03:00

Tony Hayward faces the classic conundrum of all leaders promoted internally after a long period of dominance by their predecessor: how to signal change without denigrating the previous leadership.

In Mr Hayward’s case, the challenge is greater because – unlike Gordon Brown, for example – he has been unable to build much of an external profile.

When a US oil man famously dubbed Lord Browne “the Sun King” in an FT profile five years ago, he meant that like Louis XIV of France, Lord Browne was the source of all power and favour at BP. In that environment, it was hard for Mr Hayward to establish himself as his own man. read more

By Rebecca Bream
Published: July 24 2007 03:14 | Last updated: July 24 2007 03:14

BP’s plan to resume storage of petrol and diesel at the Buncefield oil depot in Hertfordshire has been met by stiff opposition from business and council leaders in the area.

The Buncefield depot near Hemel Hempstead was the site of the largest explosion in peacetime Europe in December 2005 when a leak of petrol vapour caught fire. The blast injured 43 people, forced 2,000 from their homes and shut dozens of businesses. read more

By Gareth Smyth in Tehran
Published: July 24 2007 04:47 | Last updated: July 24 2007 04:47

When angry motorists torched petrol stations as Tehran introduced rationing last month, Iran’s opponents scented success. Ehud Olmert, Israeli prime minister, said it showed “economic sanctions are working increasingly well”.

But after three weeks of rationing, riots have given way to grumbling. Tehran’s streets are less congested, its air more breathable, and the government says it is on target to reduce a bill for imported petrol that was due to hit $7bn this year. read more

Will help settle failure to consult first nations group over Mackenzie Valley pipeline project

DAVID EBNER
July 24, 2007

CALGARY — Ottawa will pay $25-million to help settle a court dispute over its failure to consult with aboriginals over the proposed Mackenzie Valley natural gas pipeline, and the lawyer who represents the native group said a similar issue is developing with another one over a proposed oil sands project.

The government announced yesterday it was paying the Dene Tha First Nation after the Federal Court ruled last November that it had not properly consulted with the Dene Tha over their concerns about the pipeline, which would carry gas south from the Arctic and terminate on their traditional lands in northern Alberta. read more

Bloomberg News
July 24, 2007

Shares of Noble Corp. and other oil and gas drillers rose after news broke of the Transocean and GlobalSantaFe deal, raising speculation that the merger will spur more takeovers in the industry.

Noble, based near Houston, climbed $3.82 to close at $106.28 on the New York Stock Exchange. Dallas-based Ensco International Inc. closed at $65.90, up $2.64, and Diamond Offshore Drilling Inc. of Houston jumped $4.64 to $113.04. “The drillers have had a tremendous boom the last several quarters,” said Scott Keller, president of New York-based Dealanalytics.com, which provides data to institutional investors. “Behemoths like Transocean are trying to fill in niches in their portfolios.” read more

EXTRACT: Looming large over all this speculation on Western’s future are the company’s two partners on the Athabasca project; Royal Dutch Shell and Chevron. Both are seen as potential buyers, with little reason to commit their money unless another outside bidder makes a play for Western.

THE ARTICLE

STREETWISE
ANDREW WILLIS

July 24, 2007

There’s a new variation on one of the oil patch’s favourite rumours, as perennial takeover target Western Oil Sands is expected to gussy itself up by spinning off a portion of its controversial Iraq oil properties. read more

By Emma Amaize & Emma Arubi
Posted to the Web: Tuesday, July 24, 2007

WARRI — death toll in the kerosine fire explosion in Delta State rose yesterday as another victim gave up the ghost, bringing the total number of deaths to 11.

Vanguard learnt that the killer kerosine is condensate stolen by pipeline vandals and sold to roadside retailers of the product.

The Shell Petroleum Development Company (SPDC) recently raised an alarm on the activities of the illegal condensate bunkerers, while the Joint Task Force on the Niger Delta arrested no fewer than eight suspects with five tankers used in siphoning condensate from oil pipelines. read more

By Richard Blackden
Last Updated: 7:48am BST 24/07/2007

A decline in production has hit profits at oil giant BP despite an increase in crude oil prices during the second quarter.

Profits dropped to $6.08bn in the second quarter from $6.11bn in the same period in 2006.

BP, whose results kick off the reporting season for the oil majors, lost production capacity at plants in Indiana and Texas. Production was also disrupted at its refinery in Whiting, the largest in the midwest of America, because of maintenance work. read more

By CRAIG KARMIN
July 24, 2007; Page A3

With states around the country working on bills to force their public pension funds to unload shares of foreign companies doing business in Iran, a coalition of large public funds has begun pressuring companies to reconsider their ties to that nation.

The coalition is composed of pension funds in California, New York, Illinois and North Carolina. It collectively controls $570 billion in assets — or nearly a fifth of all public pension fund assets nationwide — including $3.7 billion invested in energy companies doing business in Iran. read more

By Jörg Victor
24 July 2007

Despite growing popular opposition, the Dutch government coalition of the Christian Democrats (CDA), Social Democrats (PvdA) and Christian Union (CU), under Christian Democratic Prime Minister Jan Pieter Balkenende, continues to provide military support to US imperialism in the Middle East and Central Asia.

One of the greatest beneficiaries of this support for American militarism is the oil multinational Royal Dutch Shell. The company was driven out of Iraq by the nationalisation of the oil industry in the 1970s under Saddam Hussein. Now, this Anglo-Dutch company is again preparing to exploit the most profitable oil fields in Iraq. read more

EXTRACT: Shell’s $353 million settlement with non-U.S. shareholders was good for both the company and investors, Hess and lawyers for the plaintiffs say. If the Hague-based Shell can settle with European shareholders, the oil company may avoid the risk of a worldwide action brought before a U.S. jury with the power to award even more money, Hess said.

By Caroline Byrne and Cary O’Reilly
 
July 24 (Bloomberg) — French President Nicolas Sarkozy, Deutsche Telekom AG shareholders and American lawyers are laying the groundwork to make Europe the next battleground for U.S-style class-action lawsuits. read more