[Kabar-indonesia] 15 oil/gas/mining reports: Pertamina US$500m Bond Sales; Oil Near 5-Mth Low
JoyoNews at aol.com
JoyoNews at aol.com
Tue Sep 12 18:32:53 MDT 2006
15 Reports:
- Indonesia Pertamina Plans US$500M
Bond Sales Abroad 1H '07
- BI: Electricity Tariff 2007 Suggested
be Raised by 12%
- Indonesia's VP Kalla says govt
not planning power tariff increase
next year
- Indonesian firm discovers 5,000
tons tin reserves [PT Timah]
- Bloomberg: Oil Trades Near Five-Month
Low After IEA Lowers Demand Forecast
- Indonesia's PLN halves power
reserve capacity to reduce fuel use
- EIA: OPEC-10 Aug Oil Output
27.72M B/D Vs 27.45M B/D July
- Indonesia to spend 2 billion dollars
on Java power transmission
- Indonesia to build nuclear power
plant in 2010
- Asia-Pacific Crude-Indonesia
provides support
- Platts: Pertamina buys 600,000
barrels of Chinese Wenchang
crude for Nov
- Bloomberg: BHP Billiton Declines
to Comment on Report of Bid
for Boliden
- Churchill Mining: Field Results
At Sendawar 'Encouraging'
- NYT: Chevron Could Avoid Huge
Royalties on New Field
- Petromindo Headlines,
Tuesday, September 12, 2006
Indonesia Pertamina Plans $500M Bond Sales Abroad 1H '07
JAKARTA, September 12 (Dow Jones)--Indonesia's state-owned oil and gas
company PT Pertamina (PTM.YY) plans to issue $500 million in bonds
overseas during the first half of next year, Chief Financial Officer
Ferederick Siahaan said Tuesday.
Siahaan told Dow Jones Newswires that the company will use the
proceeds to finance investment in downstream and upstream oil and gas
operations.
He said some of the proceeds will also be used to buy ships.
Siahaan didn't provide further details of the plan.
----------------------------------------------------------
Bisnis Indonesia
September 12, 2006
Electricity Tariff 2007 Suggested be Raised by 12%
JAKARTA: The government suggests an increase of 12% in electricity
tariff next year to reduce the amount of subsidy proposed in State
Budget Draft 2007 to IDR23.16 trillion from IDR25.8 trillion.
According to Director General of Electricity and Use of Energy at the
Department of Energy and Mineral Resources J. Purwono, the increase of
12% would raise the average electricity tariff to IDR695 per kWh from
the current IDR620 per kWh.
The scenario was revealed by Purwono and Minister of Energy and
Mineral Resources during the working meeting with the House Commission
VII last night.
If the scenario is approved, one electricity tariff hike in 2007 will
be enough to reduce the amount of subsidy to IDR23.16 trillion in
2007, to IDR10.9 trillion in 2008 and to IDR6.61 trillion in 2009.
By 2010, the State Electricity Company (PLN) was expected to book
IDR4.62 trillion in profit, informed Purwono.
He continued that if the electricity tariff was not raised next year,
the government had to continuously give subsidy to PLN until 2010.
However, member of the House Commission VII Tjatur Sapto Edy (the
National Mandate Party Faction) urged the government to report the
result of the audit on electricity losses before the House could
decide whether to approve the scenario or not. "We need the result of
the audit to calculate the amount of subsidy needed," he added.
In responding to the request, Minister of Energy and Mineral Resources
Purnomo Yusgiantoro said that the government had completed the audit,
so that the scenario could be held accountable for.
Unfortunately, in the scenario PLN only targets its electricity to
grow by 0.51% with the total sales volume of 110.82 terra watt hour
(Twh).
Meanwhile, Chairperson of the House Commission VII Agusman Effendi
calculated that to reach the economic growth of 6.3%, an electricity
growth rate of 12% was required. However, Purwono could only reply,
"PLN only has a capacity to reach the electricity growth of 0.51%."
Assumptions of State Budget Bill approved
In the meantime, the House Commission XI yesterday approved four
macro-economic assumptions in State Budget Bill 2007.
At the working meeting between the House Commission XI and the
Minister of Finance State Minister/Head of the National Development
Planning Agency (Bappenas), the BI Governor, and the Head of Central
Bureau of Statistics (BPS), the economic growth was assumed at 6.3%,
the rupiah exchange against the US dollar was assumed at IDR9,300, the
inflation rate at 6.5%, and the three-month central bank promissory
notes (SBI) interest rate at 8.5%. On the other hand, the assumptions
of oil price and production were left to the House Commission VII for
further deliberation.
According to Minister of Finance Sri Mulyani Indrawati, the economy in
2007 would be stable assuming the investment grew by 10% and the
export volume rose by 11.2%.
State Minister/Head of Bappenas Paskah Suzetta also hoped the new
Capital Investment Law could be applied soon.
BI Governor Burhanuddin Abdullah inserted that BI Rate could be
gradually lowered to one-digit level in the first quarter of 2007 as
the expectation for low inflation rate was high.
He hoped the rate cut policy would be responded by the banking
industry by lowering their loan interest rates and increasing their
credit allocation.
---------------------------------------------------------
Indonesia's VP Kalla says govt not planning power tariff increase next year
JAKARTA, September 11 (XFN-ASIA) - Vice President Jusuf Kalla said the
government's plan to pay a power subsidy of 25.8 trln rupiah next year
assumes that the power tariff would not be raised.
"No, because we will still pay the subsidy," he told reporters, in
response to a question as to whether or not the government is
contemplating a tariff hike next year.
The government subsidizes state-owned PT Perusahaan Listrik Negara
(PLN) for selling electricity below its commercial price.
For this year, the government has estimated the power subsidy to swell
to 32.2 trln rupiah from an initial forecast of 17 trln, as a result
of the decision to cancelled a proposed tariff hike.
The final amount of next year's power subsidy, as well as the fuel
subsidy, which is estimated at 68.6 trln rupiah, are still subject to
approval from the parliament.
---------------------------------------
Indonesian firm discovers 5,000 tons tin reserves
JAKARTA, September 12 (Xinhua) -- Indonesian mining firm PT Timah
has discovered 5,000 tons of tin reserves in Riau Islands Province,
the company said Tuesday.
The explorations in Singkep district found tin reserves of 0. 385 kg
per square meter, the company's corporate secretary Prasetyo Saksono
said in a report to the Jakarta Stock Exchange.
"The preliminary results until August 2006 suggested new (tin)
reserves of 5,000 tons with the content of 0.385 kg per square meter.
But definite results must wait for laboratory tests," he said.
The explorations cost the company 10.6 billion rupiah.
----------------------------------------
Oil Trades Near Five-Month Low After IEA Lowers Demand Forecast
By Gavin Evans
Sept. 13 (Bloomberg) -- Crude oil traded near a five-month low after falling
for a seventh day as the International Energy Agency lowered consumption
forecasts citing slowing demand growth in the U.S.
Global oil demand will average 84.7 million barrels a day this year, 100,000
barrels less than was forecast last month, the Paris-based IEA said yesterday.
An Energy Department report today will probably show crude oil stockpiles in
the U.S., the world's biggest consumer, are about 12 percent higher than the
seasonal average the past five years.
``We're going to see much more crude oil on the market'' in the next couple
of months, said Mark Waggoner, president of Excel Futures Inc. in Huntington
Beach, California. ``We're going to start seeing builds in crude and draws on
gasoline'' as refiners start pre-winter maintenance, he said.
Crude oil for October delivery was at $63.72 a barrel, down 4 cents, in
after-hours electronic trading on the New York Mercantile Exchange at 8:45 a.m. in
Sydney. Prices today are 1 percent higher than a year ago.
The contract fell $1.85, or 2.8 percent, to $63.76 yesterday, the lowest
close since March 22. Futures have declined for seven trading days, the longest
stretch since October 2003.
``We're in the midst of a tectonic change,'' Peter Beutel, president of
Cameron Hanover Inc., a New Canaan, Connecticut, energy consultant said yesterday.
``The rally that's lasted almost five years may be over. We keep seeing lower
demand estimates which show the impact of very high prices.''
Demand, Stockpiles
Oil demand in North America will average 25.5 million barrels a day in 2006,
the IEA said, down 100,000 barrels from the agency's forecast a month ago.
Global demand will average 86.2 million barrels a day next year. The IEA cut
its forecast by 160,000 barrels citing lower demand in North America and in
Asia Pacific members of the Organization of Economic Cooperation and
Development.
U.S. oil stockpiles held 330.6 million barrels on Sept. 1, 12 percent more
than the five-year average for the period, according to the Energy Department.
Supplies probably fell 2 million barrels last week as refiners ran down
stocks before shutting units to prepare for winter fuel production, according to a
Bloomberg news survey of 14 analysts.
Gasoline supplies probably rose by 200,000 barrels. They held 206.9 million
barrels the week before, 4.2 percent more than the five-year average.
Iran, OPEC
Oil reached a record $78.40 a barrel on July 14. Prices have plunged 19
percent the past two months on signs demand growth is slowing and as the risk of
the United Nations Security Council imposing sanctions on Iran have eased.
``I don't see us going much further,'' Excel's Waggoner said. ``It's probably
going to consolidate around that $62.50, $62-even level.''
The Organization of Petroleum Exporting Countries, which pumps about 40
percent of the world's oil, is concerned by the pace of the decline in prices,
group president Edmund Daukoru said Sept. 11. OPEC agreed that day to keep its
output target unchanged at 28 million barrels a day.
Iran, the group's second-largest producer, will lobby for a cut in quotas if
prices fall below $60 a barrel, Kazem Vaziri- Hamaneh, the country's oil
minister, said yesterday.
-------------------------------------------
Indonesia's PLN halves power reserve capacity to reduce fuel use
JAKARTA, September 11 (XFN-ASIA) - State electricity firm PT
Perusahaan Listrik Negara (PLN) has cut its power reserve capacity to
300 megawatts (MW) from 600 MW, in a move to reduce fuel consumption,
company spokesman Mulyo Adji said.
He added that another reason for the cut is a reduction in targeted
power supplies from hydro and gas-fired power plants.
The reduction in capacity took effect at the end of August and will
last to December, he said.
Given the capacity cutback, if any of the firm's power plants
malfunction, PLN will have to implement rotational power cuts, Adji
said.
-------------------------------------
EIA: OPEC-10 Aug Oil Output 27.72M B/D Vs 27.45M B/D July
NEW YORK, Sept. 12 (Dow Jones)--Oil production by the 10 main members of the
Organization of Petroleum Exporting Countries averaged 27.72 million barrels a
day in August, up 270,000 barrels a day from a month earlier, but still below
the group's 28 million barrels a day output ceiling, the U.S. Energy
Information Administration said Tuesday.
Saudi Arabia, the de facto leader of the group and the world's largest oil
exporter, kept output steady at 9.3 million barrels a day in the month, above
its quota of 9.099 million barrels a day.
Increases in supply from Algeria, Kuwait, Nigeria, Qatar and Venezuela led to
the overall month-to-month gain.
Including Iraq, which doesn't have an OPEC output quota, total output was
29.92 million barrels a day, up from 29.65 million barrels a day a month earlier.
At total output of 27.72 million barrels a day, EIA estimates OPEC's spare
production capacity at 1.2-1.7 million barrels a day, all of it held by Saudi
Arabia. EIA said its capacity estimate is defined as the maximum production
volume that can be brought on-line within 30 days and sustained for at least 90
days.
EIA Estimates Of OPEC Output/Capacity
(figures in million barrels a day)
Aug 06 Jul 06 Quota Capacity
Algeria 1.38 1.36 0.894 1.38
Indonesia 0.89 0.89 1.451 0.89
Iran 3.75 3.75 4.110 3.75
Kuwait 2.60 2.55 2.247 2.60
Libya 1.70 1.70 1.500 1.70
Nigeria 2.20 2.20 2.306 2.20
Qatar 0.85 0.80 0.726 0.85
Saudi Arabia 9.30 9.30 9.099 10.5-11.0
UAE 2.60 2.60 2.444 2.60
Venezuela 2.45 2.40 3.223 2.45
OPEC 10 27.72 27.45 28.00 28.92-29.42
Iraq 2.20 2.20 n/a 2.20
OPEC Total 29.92 29.65 n/a 31.12-31.62
Saudi and Kuwait output figures include a half share each of output from the
neutral zone between the two countries. Saudi output also includes production
from the Abu Safa offshore field on behalf of Bahrain. Venezuela's capacity
and output figures exclude extra heavy oil used to make Orimulsion synthetic
fuel oil.
---------------------------------------
Deutsche Presse-Agentur
September 12, 2006
Indonesia to spend 2 billion dollars on Java power transmission
Jakarta -- Indonesia's state-run power company will spend more than 2
billion dollars to upgrade its transmission network across Java, a
local report said Tuesday.
The upgrades are mandatory because the government plans to build
coal-fired plants that can produce up to 10,000 megawatts of new power
by 2009, in hopes of stopping rolling blackouts and handling
industrial activity across Java, the world's most-populated island,
The Jakarta Post reported.
"This is our priority as there's no use of new capacity if it's not
connected to the system," Herman Darnel Ibrahim, a vice president of
the state-run Listrik Negara, was quoted as saying.
Indonesia will need to spend around 27 billion dollars on new plants
and power lines by 2012 to meet expected demand, the paper reported,
citing the World Bank.
The Jakarta government is increasingly turning to coal-fired power
plants, as well as plants run on bio-fuels, to help cut dependence on
oil, which it must subsidize in the state budget.
Neglect and lack of new investment in infrastructure in Indonesia,
especially in power production, has led to social unrest from
residents continually without electricity, and made it harder to
attract new foreign investment.
----------------------------------------------------------
Indonesia to build nuclear power plant in 2010
JAKARTA, September 11 (Xinhua) -- The Indonesian government will begin
the construction of a nuclear power plant in 2010 or 2011 as part of
the country's energy diversification program, a senior official said
Monday.
"Accordingly, the tender for the nuclear power plant construction
should take place in 2008," Minister of Research and Technology
Koesmayanto Kadiman was quoted by the country's leading news website
Detikcom as saying.
"To materialize this project, the government has established
cooperation with countries that own nuclear reactors, such as the
United States, South Korea, Japan and Germany."
The nuclear power plant is expected to begin operations in 2016- 17,
he said in a hearing with legislators here.
--------------------------------------------------------------
Asia-Pacific Crude-Indonesia provides support
SINGAPORE, September 12 (Reuters) - The outlook for Asia-Pacific crude
brightened on Tuesday, with Indonesia buying its largest volume of
crude in four months, likely helping to clear remaining volumes for
October loading, traders said.
Indonesia's Pertamina has bought 2.9 millions barrels of light sweet
Asia-Pacific crude in its tender for November supplies, the highest
volume since it bought 3 million barrels for July arrival, a source
close to the discussions said [ID:nSP167104].
It was unclear if some Tapis crude sold was for October loading.
Malaysia's Petronas had been offering October volumes on Monday.
State oil company Petronas also had some October Labuan crude
available earlier this month.
Pertamina is a major buyer in the region, and its large purchase will
likely support the spot market, after its absence for two months and a
limited 1.8 million-barrel purchase last month added pressure on a
struggling light sweet crude market.
Trading activity was otherwise limited with November crude yet to be
discussed and heavy sweet crude still struggling to find buyers.
The fuel crack has sharply strengthened though, with the physical
crack at minus $16.10 on Tuesday, against an all-time low of minus
$20.00 a week ago.
New light sweet Sokol crude remained little discussed on the market
but India's ONGC, which has a stake in Sakhalin-1 where the crude is
produced, will take home its first 700,000-barrel cargo, likely for
October loading.
It may sell the following cargoes via tender, as transport to India
from Far East Russia makes little sense, traders said.
Dar Blend crude may not have been sold yet, traders said, with the
first cargo loaded at the end of August, and several cargoes planned
for this month.
ICE Brent <LCOc1> dropped 3 cents to $64.52 a barrel at 1142 GMT.
---------------------------------------------------------------
Platts Commodity News
September 12, 2006
Pertamina buys 600,000 barrels of Chinese Wenchang crude for Nov
Indonesia's Pertamina has bought 600,000 barrels of Chinese Wenchang
crude for November at around ICP Minas plus $2/barrel, market sources
said Tuesday.
Wenchang has an API of 35.10 and sulphur content of 0.11%.
Separately, China's Nanhai crude, Malaysia's Tapis and Labuan,
Australian Cossack and Papua New Guinea's Kutubu crudes are being
offered into Pertamina's November tender. The tender is due to be
awarded on September 13.
--------------------------------------
BHP Billiton Declines to Comment on Report of Bid for Boliden
By Claudia Carpenter
Sept. 12 (Bloomberg) -- BHP Billiton Plc, the world's biggest mining company,
declined to comment on a newspaper report that it offered 205 kronor ($28.09)
a share for Boliden AB, Scandinavia's only copper producer.
Melbourne-based BHP made the offer to Boliden's board through its investment
bank Goldman, Sachs & Co., newspaper Dagens Industri said today on its Web
site, citing unidentified people familiar with the matter. Shares of Boliden rose
10 kronor, or 7.5 percent, to close at 143 kronor in Stockholm, valuing the
company at 41.4 billion kronor ($5.67 billion).
Ulf Soderstrom, a spokesman for Boliden in Stockholm, declined to confirm or
deny the report. BHP spokesman Illtud Harri in London also declined to confirm
or deny the report.
Record prices for metals including copper and zinc have spurred more than
$100 billion of mining-industry takeover offers this year, data compiled by
Bloomberg show. BHP Chief Executive Officer Charles ``Chip'' Goodyear told CNBC
television in a Sept. 7 interview that producers will continue acquiring assets
as they use profits from a rally in commodity prices to boost reserves.
BHP had record net income of $6.1 billion in the six months ended June 30.
Boliden's profit soared 10-fold to a record 1.74 billion kronor in the second
quarter, benefiting from record prices for copper and zinc.
------------------------------------
Churchill Mining: Field Results At Sendawar 'Encouraging'
Edited Press Release
LONDON, September 12 (Dow Jones)--Churchill Mining said Tuesday that
recent geological field results at the Sendawar thermal coal project
in Kalimantan, Indonesia, have been particularly encouraging and that,
as a result, the commissioning of a second drill rig has been brought
forward to accelerate the exploration programme.
The Company expects its drilling contractor, PT Maxidrill Indonesia,
to complete building the rig at its Jakarta workshop within two weeks,
ready for field commissioning at the end of the month.
Churchill already has a drill rig at site which has completed four
stratagraphic holes necessary to aid in the geological understanding
of the Sendawar project before the drilling of actual coal targets
begins. This rig has now been relocated and Churchill's geologists
have begun the drilling of specific coal outcrop areas, the company
said.
Shortly, Churchill's geological advisors shall decide whether the
newly commissioned drill rig will be deployed either to expand
drilling on the current coal outcrop targets or be moved to drill in
the north of the Sendawar project, it said.
----------------------------------------------------------------
The New York Times
September 12, 2006
Chevron Could Avoid Huge Royalties on New Field
By EDMUND L. ANDREWS
WASHINGTON, Sept. 11 - A group of oil companies led by Chevron, which said
last week that they had discovered a huge new oil field in the Gulf of Mexico,
could avoid more than $1 billion in royalty payments to the federal government
for the oil.
The potential bonus to Chevron and its partners stems from a mistake the
Interior Department made in signing offshore leases in the late 1990's for
drilling in federal waters. The magnitude of the oil discovery - estimated in a range
of 3 billion to 15 billion barrels - is likely to intensify a battle in
Congress over incentives for drilling in publicly owned waters.
Under pressure from lawmakers, Chevron and other big producers have said that
they would renegotiate their leases. But they have not said how much they are
willing to give up, and the Interior Department has virtually no bargaining
power under current law.
Chevron and its partners, Devon Energy and Statoil ASA of Norway, have six
leases in the Jack oil field, about 175 miles off the coast of Louisiana. Two of
the leases allow the companies to avoid royalties on as much as 87.5 million
barrels of oil per lease.
The benefit, known as royalty relief, was supposed to be halted if the price
of oil climbed above $36 a barrel. But that restriction was omitted on all
leases signed in 1998 and 1999, including the two held by Chevron and its
partners.
The exact value of the potential break on federal payments will depend both
on the price of oil and how much of it comes from the two leases. At $70 a
barrel, the Chevron group could save about $1.5 billion in royalties if the
government agreed that both leases were contributing to Chevron's production.
But the actual savings would be much lower if oil prices slumped to $40 a
barrel. And the savings would disappear if the government insisted that none of
Chevron's output was coming from the two leases, but from the four not eligible
for the break.
A spokesman for Chevron, Don Campbell, said Monday that "any conjecture about
forgone royalties" would be "pure speculation and an academic exercise."
The Chevron leases are the biggest, but hardly the only leases that allow oil
companies to avoid royalties regardless of how high energy prices climb.
Even before Chevron and its partners confirmed the discovery last week, the
Government Accountability Office, the investigative arm of Congress, had
estimated that the Treasury could lose as much as $20 billion over the next 25 years.
On Wednesday, the House Committee on Government Reform will begin two days of
hearings on how the original calculation came to be. Republicans have been
eager to blame the Clinton administration, which was in office when the leases
were signed.
But the Interior Department's inspector general is expected to testify that
the Bush administration may be in danger of making exactly the same move on new
leases.
According to Congressional aides, the inspector general has uncovered
evidence that midlevel Interior Department officials warned as recently as July that
a new batch of leases could cost the government billions of dollars beyond the
original misstep.
Republican lawmakers are also angry about the Interior Department's response
to the problem, which was first disclosed by The New York Times in March.
Representative Thomas M. Davis III of Virginia, chairman of the Committee on
Government Reform, complained of "systematic delays" and said the Interior
Department had withheld large volumes of "critical information" from
Congressional investigators.
Chevron's huge potential savings highlight a dispute about how to remedy the
leases signed in the late 1990's. The Bush administration and many Republican
leaders argue that those leases are binding contracts that cannot be changed
except through an agreement by the companies.
Democrats acknowledge that the contracts are binding, but support a measure
that would punish companies that refuse to renegotiate their contracts by
prohibiting them from acquiring additional oil and gas leases.
The House passed the Democratic proposal, over objections from Republican
leaders, as an amendment to the Interior Department's spending bill. The Senate
Appropriations Committee attached a similar measure to its bill, but the
overall measure has been stalled for months.
The hearings this week are expected to focus on how the Interior Department
blundered on the leases. The inspector general, Earl E. Devaney, has concluded
that the leases were a mistake rather than a result of any collusion with
industry.
But Mr. Devaney is also expected to say that the Interior Department
continues to suffer from a "lack of accountability." Investigators have combed through
5,000 e-mail messages and are believed to have found some written as recently
as this summer in which frustrated midlevel officials warned that the
Interior Department had not fixed the bureaucratic and procedural problems that led
to the original mistake.
Representative Davis and Representative Darrell Issa, Republican of
California and chairman of the Government Reform energy and resources subcommittee,
accused the Interior Department in August of deliberately obstructing their
investigation.
"We are deeply concerned that the department may have intentionally withheld
critical information from the subcommittee," the two lawmakers wrote in a
letter on Aug. 3 to Dirk Kempthorne, the new Interior secretary. "If this is the
case, then it has intentionally impeded this duly authorized Congressional
investigation."
---------------------------------------
Petromindo Headlines,
Tuesday, September 12, 2006
Oil/Gas:
- Total's workers drop strike plan
- Itochu to invest US$90 million for ethanol plants
- Pertamina, PLN in talks over gas supply to
W. Java power plant
- Regional LNG: Sinopec to operate LNG terminal
in 2008
- OPEC crude output rises 220,000 b/d in August
- Govt takes over handling of Lapindo's mudflow
problem
Mining:
- Churchill Mining accelerates drilling at E. Kalimantan
coal project
- North Barito proposes central govt to revoke idle
mining permits
- Suralaya expects first shipment of Kalimantan
coal Sept.
Power:
- Suralaya expects first shipment of Kalimantan
coal Sept. [also in mining headlines]
- Government will guarantee power projects:
Vice President
- Pertamina, PLN in talks over gas supply to
W. Java power plant
------------------------------------------
Joyo Indonesia News Service
------------------------------------------
More information about the Kabar-Indonesia
mailing list