Oil prices down-second day in a row
New York: Oil prices have fallen heavily for a second day, closing at their three-month low after news that US crude stocks have improved ahead of winter.

London Brent crude closed at $40.15 on Thursday - a drop of 5.1 per cent - having dived below $40 a barrel for the first time since mid-September.

US light crude, traded in New York, lost more than $2 to $43.25, its lowest close since September 10.

The price of both benchmark crudes has dropped 12 per cent in two days.
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IOC expresses interest in Nigerian refineries
New Delhi: The Indian Oil Corporation has submitted its Expression of Interest to buy stake in three refineries in Nigeria, according to a company official.

He said that besides looking for refinery turnaround jobs in African and West Asian countries, IOC is trying to acquire 51 per cent stake in Nigerian government-owned Port Harcourt, Warri and Kuduna refineries.

Since 1999, Nigeria has spent about 700 million dollars on refurbishing the refineries, with a combined 'nameplate capacity' of 445,000 barrels per day.

But the plants are operating well below capacity due to problems such as fire, sabotage, poor management, inter-ethnic violence and lack of 'turnaround maintenance'. The Chinese national oil company will be the IOC's competitor in the race to acquire Port Harcourt refinery and northern Kaduna plant. The official said a decision is likely by early next year.
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OVL fails to get stake in Angola oil block
New Delhi: Petroleum and natural gas minister Mani Shankar Aiyar said on Thursday that ONGC Videsh Ltd (OVL) had failed to get a fifty per cent stake in Angola's offshore Block 18 oilfield after the African country's national oil company, Sonangol, exercised its pre-emption rights.

Responding to a question in the Lok Sabha, Aiyar said OVL had entered into an agreement with Shell in April this year to acquire a 50 per cent stake in Angola's offshore Block 18 oilfield. "The acquisition was subject to the waiver of pre-emption rights by other partners in the block, British Petroleum and Sonangol, as well as consent from Angola's government," Aiyar said. "However, while BP gave its consent, Sonangol exercised its pre-emption rights-as a result of which, the deal could not be concluded."

Block 18, which will start production from 2007, is expected to yield in excess of 200,000 barrels of oil per day. A 50 per cent stake for OVL would have translated into 5 million tonne of crude.

OVL is the 100 per cent overseas exploration and production arm of Oil and Natural Gas Corporation Ltd. The company has oil and gas assets in countries such as Myanmar, Russia, Vietnam, Iran, Iraq, Syria, Libya, Sudan, Australia and Ivory Coast. OVL is also looking to acquire oil properties in the South American nations of Venezuela and Ecuador. While Venezuela has offered OVL five oil blocks, OVL has bid for oil blocks in Ecuador. OVL currently produces four million tonne of crude oil and oil equivalent gas.
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