BRIEFING - ASIA ENERGY - DEC 5, 2008

Dec 05, 2008 (AsiaPulse via COMTEX) -- XOM | Quote | Chart | News | PowerRating -- An executive briefing on energy for Dec 5, 2008, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.

INDONESIA'S PERTAMINA CHOOSES EXXONMOBIL AND SHELL

JAKARTA - Indonesian state-owned oil and gas company PT Pertamina has chosen ExxonMobil Corp. and Royal Dutch Shell plc for partners to develop the Natuna D-Alpha gas block in Riau, a report said.

The partnership will be officially announced toward the end of this month, the newspaper Investor Daily quoting sources as saying.

INDONESIA'S PERTAMINA POSTS 13.87% INCREASE IN INCOME

JAKARTA - State-owned oil and gas company Pertamina reported a 13.87 per cent increase in income to Rp444.31 trillion (US$37 billion) year-on-year in the first nine months of this year.

Vice President of Pertamina Iin Arifin Takhyan said domestic sales contributed the largest part of Rp282.72 trillion to the total income.

CALL FOR CONSTRUCTION OF AFFORDABLE HOUSING IN KYRGYZSTAN

BISHKEK - The Kyrgyzstan government should urgently enact measures to allow the construction of affordable accommodation, Askarbek Moldobayev, chairman of the Kyrgyz Builders Union, told a press conference in Bishkek.

"We are searching for ways to stimulate the construction of affordable housing for the country's less affluent population," he said.

INDIAN INFRASTRUCTURE FIRM WINS US$44 MLN CONTRACT FROM PGCIL

MUMBAI - Infrastructure development firm Maytas Infra (BSE:532907) said on Thursday it had bagged orders worth Rs 222 crore (US$44.9 million) from state-run Power Grid Corporation (PGCIL) (BSE: 532898) for rural electrification work in Orissa and West Bengal.

In a filing to the Bombay Stock Exchange, Maytas Infra said it had received contracts worth Rs 222.25 crore from PGCIL for rural electrification work under Rajeev Gandhi Grameen Vidyutikaran Yojana.

DEVELOPING COUNTRIES TO BENEFIT FROM WORLD OIL PRICE DROP: EXPERTS

MANILA - Developing countries like the Philippines will benefit from the ongoing oil price downtrend.

Paul Young, Platts executive oil pricing editor for Asia, said this as he confirmed that prices of crude in the world market are expected to drop further by year-end.

PETRONAS POISED FOR MORE INT'L EXPANSION: ANALYSTS

KUALA LUMPUR - Petroliam Nasional Bhd's (Petronas) current strong financial reserves will put it in a strong position to be more aggressive in mergers and acquisitions to expand its business internationally and further diversify its investment portfolio, according to Wood MacKenzie, an international company specialising in commercial analysis and insights on the energy industry.

Andrew Milburn-Stone, its vice president for the Indian sub-continent and South-East Asia, said Petronas, Malaysia's national petroleum company, has been the most active national oil company (NOC) in the last one year in terms of acquiring more assets.

PETRONAS HAS NO PLANS TO CUT BACK ON EXPLORATION

KUALA LUMPUR - Malaysia's national petroleum company, Petronas, has no plans to cut back on its exploration activities despite the current volatile economic environment.

"However, the oil and gas industry now needs to relook its business model," said Petronas president and chief executive officer Hassan Marican, when speaking to reporters on the sidelines of the Third International Petroleum Technology Conference here Wednesday.

BANGLADESH'S GAS OUTPUT TO FALL AFTER 2011 IF NO NEW WELL FOUND

DHAKA - Chief Advisor's Special Assistant for Power and Energy Ministry Dr.Tamim Thursday termed political understanding and consensus a major imperative for the development of the country's energy sector.

"If there is no political consensus, it would be very difficult for the next elected government to carry forward the energy sector," he said while addressing a roundtable discussion at CIRDAP auditorium in the city.

CHINA, US AGREE TO COOPERATE ON ENERGY, ENVIRONMENT

BEIJING - A senior Chinese official said here on Thursday that China and the United States had reached consensus in five major areas to step up energy and environmental protection cooperation during the on-going fifth round of the Strategic Economic Dialogue (SED).

Zhang Xiaoqiang, the vice minister in charge of the National Development and Reform Commission (NDRC), said the five areas were as follows.

JAPAN'S MIDSIZE MACHINERY COS ADD SOLAR CELL MAKING EQUIPMENT

TOKYO - Midsize producers of industrial machinery are broadening their businesses to include equipment for manufacturing solar cells, a market where demand is expanding even as the global economic slowdown reduces orders for other types of machinery.

Kaijo Corp., which produces ultrasonic cleaning equipment for the semiconductor industry, plans to modify its technology to develop a cleaning device for the silicon wafers on which solar cells are fabricated. The company expects to price the machine at around 2 million yen and will target sales not only at the solar cell makers themselves, but also at firms that assemble the integrated production lines for solar cells.

CHINA MAY KICK IN FUEL TAX, OIL PRICING REFORMS IN JANUARY

BEIJING - China's long-awaited fuel tax reform may start as early as January, along with the country's government-controlled oil pricing reforms, a senior official said Thursday.

"I personally think Jan. 1 is a good time to introduce the fuel tax," Zhang Xiaoqiang, vice minister of the National Development and Reform Commission (NDRC), said during participating in the fifth China-U.S. Strategic Economic Dialogue (SED) held in Beijing.

EUROPEAN DEMAND BOOSTS JULY-SEPT SOLAR CELL SHIPMENTS BY 44%

TOKYO - Japan's shipments of solar cells during the July-September quarter grew 44 per cent on the year in power capacity terms to reach 304,500kw, according to statistics reported by the Japan Photovoltaic Energy Association.

Europe accounted for 60 per cent of all shipments, with exports to the Continent rising 53 per cent from the same period last year, serving as the main engine for overall growth.

INDONESIA'S BEI ASKS BUMI NOT TO USE MTN FOR SHARES BUYBACK

JAKARTA - The Indonesian Stock Exchange (BEI) has called on publicly listed PT Bumi Resources (JSX:BUMI) not to use a medium-term note (MTN) instrument in buying back its shares worth Rp8.246 trillion (US$709.2 million).

"We have held talks with them and the bourse asked them not to issue MNTs," BEI President Director Erry Firmansyah said here on Thursday.

BG GROUP COMPULSORILY ACQUIRES AUSTRALIAN GAS CO

PERTH - Britain's third largest oil and gas producer BG Group plc is mopping up shares it does not already own in its takeover target Queensland Gas Company Ltd (ASX:QGC) by moving to compulsory acquisition.

As of Thursday, BG had amassed a 96.62 per cent stake in QGC.

BG GROUP COMPULSORILY ACQUIRES AUSTRALIAN GAS CO

PERTH - Britain's third largest oil and gas producer BG Group plc is mopping up shares it does not already own in its takeover target Queensland Gas Company Ltd (ASX:QGC) by moving to compulsory acquisition.

As of Thursday, BG had amassed a 96.62 per cent stake in QGC.

PNG GAS PROJECT BEST EVER IN THE REGION: GOLDMAN SACHS EXECUTIVE

SYDNEY - The gas project that could double the wealth of Papua New Guinea is better than any other venture of its type in the region, an investment banker says, reports Post Courier.

Ross Kelly, a senior executive with the Goldman Sachs JB Were firm of Australia, said this to a reporter after speaking on investment opportunities at the PNG Petroleum and Mining Industry conference yesterday.

PALAU PRES-ELECT SAYS OUTGOING GOVT NEEDS TO PAY ITS BILLS

KOROR - Palau President-elect Johnson Toribiong says the outgoing Remengesau administration should not use a special loan fund to pay off US$2 million in delinquent utility charges.

Palaus finance minister Elbuchel Sadang last week asked the House of delegates to amend legislation to allow the government to tap a US$3 million fuel subsidy authorisation to pay the long overdue bills to the Palau Public Utilities Corporation.

SRI LANKA EXPORTER RUNS BOILERS ON COCONUT SHELLS

COLOMBO - Sri Lankan coconut products exporter Coco Lanka said it has achieved energy efficiencies by converting boilers from furnace oil to coconut shells, a by-product.

The firm, part of the Renuka Group, said consolidated net profit in the September quarter shot up 163 per cent to 43 million rupees (US$395,944) from a year ago, according to a statement and accounts released by the company.

INDIA'S PUNJ LLOYD SIGNS PACT WITH US-BASED THORIUM POWER

MUMBAI - Indian engineering and construction firm Punj Lloyd (BSE:532693) on Thursday said it has entered into an agreement with US-based Thorium Power for consulting activities in the development of nuclear power generation in India, South Asia and other territories.

The company has signed a memorandum of understanding with Thorium Power to expand consulting activities for the development of nuclear power generation regionally and worldwide, Punj Lloyd said in a filing to the Bombay Stock Exchange.

INDIA'S BHEL BAGS ORDER FROM OMAN TO SUPPLY GAS TURBINES

NEW DELHI - India's state-run Bharat Heavy Electricals Ltd (BSE:500103) on Thursday said it has bagged an order from Oman to supply 126 MW gas turbine generator packages.

"BHEL has won a contract for supply of 126 MW gas turbine generator packages from Oman," a company statement said on Thursday.

AUSTRALIAN COAL MINER FELIX CONFIRMS TAKEOVER INTEREST

SYDNEY - Felix Resources Ltd (ASX:FLX) has confirmed there is takeover interest in the coal miner.

The company issued a statement to the Australian stock exchange confirming takeover speculation in a media report today.

CHINA FUEL TAX SCHEME TO BE RELEASED THIS WEEK SAY INSIDERS

BEIJING - China's long-awaited fuel tax scheme is possibly to be publicized for seeking public opinions within this week at the earliest, Xinhua-run China Securities Journal quoted unnamed insiders as saying.

The judgment was made following an earlier revealed timetable saying the fuel tax would be levied as from Jan. 1 of 2009 after soliciting public opinions for about 15 days.

CHINA EARMARKS US$364 MLN FOR ENERGY SAVING AND ENVIRONMENT

BEIJING - China has earmarked additional 2.5 billion yuan (US$364 million) from its 100 billion yuan package of the central government to spur economic growth for major energy saving, circular economy and river pollution control projects.

The National Development and Reform Commission (NDRC), the country's top planner, said that it has completed the arrangement of the 2.5 billion yuan from the central budget in the end of November.

INDONESIAN GOVT TO ASK INPEX TO REVISE MASELA INVESTMENT PLAN

JAKARTA - The Indonesian government said it will ask Inpex Ltd, the operator the Masela gas block off Arafura in southern Maluku, to revise its entire development plan, an official said.

Oil and Gas Director General Evita Herawati Legowo said the government could not yet approve the development plan proposed by Inpex as it still needs further discussion.

NORWAY'S STATOIL EYES JV WITH PERTAMINA FOR NATUNA GAS BLOCK

JAKARTA - Statoil Hydro Norway said it wants to team up with state oil and gas company Pertamina to develop the Natuna D-Alpha gas block in Riau.

Statoil has the technology and experience in deep sea exploration and development of gas reserve having high content of carbon dioxide (CO2), President of the Norway's oil company Helge Lund said.

INDONESIAN GAS DISTRIBUTOR PGN TO BUILD CNG STATION IN KARAWANG

JAKARTA - State-owned gas distributor PT Perusahaan Gas Negara (PGN) (JSX:PGAS) said it will build a compressed natural gas (CNG) station with an investment of Rp60 billion (US$6 million) next year.

The CNG station to be built in Karawang, West Java, is to be operational in 2011, a PGN director Bambang Banyudono said.

SCIC IN FUNDING DEAL WITH ELECTRICITY OF VIETNAM

HANOI -operation between the State Capital Investment Corporation (SCIC) and the Electricity of Vietnam (EVN) was signed in Hanoi on December 2.

Signatories were SCIC general director Tran Van Ta and EVN general director Pham Le Thanh.

BROADBAND NETWORK TENDER PROCESS TO COST ANOTHER A$10 MLN

CANBERRA - Costs associated with the tender process for the Australian national broadband network have blown out by A$10 million (US$6.48 million).

The government allocated A$9.4 million over five years in the May budget for costs associated with the establishment of an expert panel and specialist advisers to oversee the tender process.

FUEL TAX REFORM FAVORABLE TO CHINA'S AUTO INDUSTRY: SAIC CHIEF

SHANGHAI - China's fuel tax reform will cut down driving costs, and is to take effect soon, according to Hu Maoyuan, president of Shanghai Automotive Industry Corp, at the launch ceremony of Shanghai GM's new Buick Regal on Monday.

Analysts took it good news as it is able to boost confidence of Chinese automakers.

ARBITRATION HEARING ON PETROBANGLA-CHEVRON DISPUTE DEFERRED

DHAKA - The hearing on the dispute between the state-owned Petrobangla and US oil company Chevron over 4 per cent wheeling charge has been deferred by five months.

According to official sources, hearing will now be held on May 18 next year at the World Bank's international arbitration court in Washington. The hearing deferred on request by the Chevron to the arbitration court - International Centre for Settlement of Investment Dispute (ICSID) in Hague.

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