Asia – The New Middle East?

As demand for Oil and Gas imports in the U.S. falls, many are searching new horizons to export to, and many are turning towards the Asia – Pacific Market¹.

There is no denying that Asian oil consumption will continue to rise for years to come. China recently signed a contract for 400,000 Mcf/day gas from the deep-water Shwe project in the Bay of Bengal to be delivered via the Myanmar/China pipeline².

Energy demand is projected to almost double in the region by 2030, not only will Asia continue to import oil and gas, but also produce substantial quantities. Some would argue that Asia is beginning to overtake its less stable Middle East counterpart.

IOC's have been quick to snap up exploration blocks within the region. Indian Oil Ltd is currently exploring the available opportunities to expand into Asia³. Myanmar in particular offers a number of investment opportunities. Despite being one of the world's oldest oil producers, Myanmar's upstream sector is largely underdeveloped. Yet, with 10 million cubic feet of Natural gas to offer and another 50 million barrels of cruide oil, many IOCs are optimistic⁴. 

Myanmar frequently holds offshore licensing rounds, in April-June this year, 61 oil and gas companies pre-qualified. The list of pre-qualified companies included international majors such as ExxonMobil, ConocoPhillips, Shell, Total, Statoil, Eni and Repsol. A further 18 onshore blocks will be awarded in December 2013. It is clear that since US sanctions were lifted and President Thein Sein took power, investor opinion has improved considerably ⁵.

The latest investment opportunities will be examined at the Asia Oil &Gas Awards 2013 ceremony which will be hosted alongside the 2-day Asia Offshore Oil and Gas Summit and the Bay of Bengal & Andaman Sea Oil and Gas Summit 18-19 November 2013 in Bangkok. These two unique events will bring together some of the world's leading industry professionals, including Energy ministers, Senior Oil and Gas company representatives, Contractors, Service Companies and Solution Providers. A number of awards will recognise, for instance, Exploration & Production Company of the Year, Local Content Initiative of the Year, CSR Initiative of the Year, Drilling & Well Services Company of the Year and Oil & Gas Logistics Company of the Year.

Keynote speakers include: Dr. Pyasvasti Amranand, Former Minister of Energy and Mineral Resources of Thailand & Chairman of the Energy for Environment Foundation; Dr. Siri Jirapongphan, Executive Director, Petroleum Institute of Thailand (PTIT); Dr. Andrzej Bolesta, Economic Counsellor, Embassy of the Republic of Poland in Bangkok; Michael Mcwalte, Petroleum Advisor to Governments of Cambodia and Papua New Guinea; U Naing Maw Than, Vice President, Myanmar Geologists Society, Singapore (MGSS) and Chris Faulkner, CEO, Breitling Energy, plus many more!

1 http://www.theglobeandmail.com/report-on-business/breakthrough/the-race-to-ship-liquefied-natural-gas-to-asia/article13260357/

2http://blogs.platts.com/2013/08/05/china-gas/

3http://www.dnaindia.com/money/1870440/report-ioc-plans-to-expand-in-asia-africa-eyes-upstream-projects

4http://www.rigzone.com/news/oil_gas/a/127412/Myanmar_Prepares_Ground_to_Boost_Upstream_Oil_Gas_Investments/?pgNum=1

5http://www.platts.com/latest-news/natural-gas/singapore/myanmar-to-award-offshore-blocks-in-2014-onshore-27251698

Caribbean Oil-Rush

Since its implementation in 2005, the Caribbean region has benefited enormously from the Petrocaribe scheme. Under the initiative, member countries, such as Jamaica, Cuba, Antigua and Barbuda, Nicaragua and Honduras, were permitted to pay 40% of Venezuelan oil imports within 90 days and pay the remaining 60% at low annual interest rate of 1% over a 17-25 year period.

Since Hugo Chavez's death, however, the future is not so rosy. The present incumbent, Nicolás Maduro, recently increased the 1% interest rate to, in some cases, as high as 4% ¹. Venezuela is undoubtedly one of the region's largest creditor. Last year, Jamaica was estimated to owe Venezuela around $2.4 billion for oil. While, according to Bloomberg, some have estimated that 35% of external Caribbean debt will be owed to Venezuela by the year 2015².

In response, many Petrocaribe members have begun to look for alternative energy options on the home front, in the realisation that continued membership to the scheme would be unsustainable. Dr. Victorio Oxilia, The Executive Secretary of the Latin American Energy Organisation (OLADE), recently highlighted the issue, when he underscored the importance of Latin American and Caribbean beginning to import less and export more oil³. With many others also question the benefits of Petrocaribe and the economic dependence it forces upon its members, the selling of licensing rounds has seen a huge rise after a number of Oil and Gas finds in the area. Currently one of the world's main LNG exporters, Trinidad and Tobago are now looking to boost oil production, and have more than doubled their Oil and Gas activity since 2010. Zac Phillips, an analyst at Fox Davies, claims that Trinidad and Tobago have revitalised their energy industry much like Nigeria and the UK's industries⁴. Energy Minister, Kevin Ramnarine, plans to increase production from 90,000 barrels/day to 120,000 barrels/day by the end of next year, 2014⁵.

A number of international companies have expressed their interest in investing in the Caribbean Oil & Gas industry which holds 20% of the world's total oil reserves. This July, Repsol began negotiations for a contract with Nicaragua to begin exploration in Bluefields Bay. Whilst many multinationals, such as BP, Parex Resources, Niko Resources, Centrica and Noble Energy, have already invested heavily in the region. Lee Hunt, consultant and former president of the International Association of Drilling Contractors, was not wrong when he commented that:

'"What once was a trickle is fast becoming a stream in the Caribbean, with new announcements of expanding deep-water exploration lease offerings and drilling permits being issued"' ⁶.

In order to encourage and facilitate international investment, the 2-day Caribbean Oil, Gas & Power Summit in September 2013, will bring together some of the world's leading industry players, including Energy ministers, senior Oil and Gas company representatives, Contractors, Service Companies and Solution-providers, to discover the latest investment and business opportunities and strengthen industry ties.

1http://latino.foxnews.com/latino/money/2013/07/03/with-chavez-gone-caribbean-nations-no-longer-benefit-from-venezuela-cheap-oil/

2 http://www.bloomberg.com/news/2013-05-26/caribbean-should-trade-venezuelan-oil-for-homegrown-sun.html

3http://www.noticel.com/noticia/145227/latinoamerica-y-el-caribe-el-reto-de-importar-menos-derivados-de-petroleo.html

4http://www.caribbeannewsnow.com/topstory-Significant-increase-reported-in-Trinidad-oil-and-gas-industry-activity-15880.html

5 http://www.sharesmagazine.co.uk/articles/explorers-seek-treasure-in-the-caribbean-islands#.Ue0zdo0sk-o

6http://bigstory.ap.org/article/caribbean-nations-search-oil-amid-spill-fears-0

Russo-Asian Politics

Not only is Asia fast becoming a major player in the Oil & Gas industry, it is already a major consumer, and Russia is keen to increase its exports of coal, oil, gas, gold and copper from East Russia to the Asian market. In fact, so eager is the Russian government to encourage energy trade links with Asia, that it has begun to offer fiscal incentives to those companies involved in the development of infrastructure in east Russia to facilitate resource exports. 

Moreover, Russia will, for the first time, allow other Russian companies to export LNG to the Asian market, breaking Gazprom's monopoly. This will allow more Russian natural gas to be exported further, since natural gas in its liquid form no longer has to be transported by pipeline. Mr. Dvorkovich explained that although Russia would continue to deliver gas to Europe, Russia sees greater prospects in Asia. 

According to Russian officials, this pivot has resulted, in part, because of increased  regulatory pressures in the European market, combined with falling European demand. Having signed a number of gas supply deals with China, it is clear that for Russia, future successes lie in Asia. The biggest deal to date, estimated at around $270 billion, CNPC (China National Petroleum Corporation) made a pre-payment to Rosneft of around 70 billion in return for a supply of 365 million tons of oil over 25 years. 

Russia have also signed a new deal with Japanese Sakhalin Oil and Gas Development Company and the Japanese trading firm Marubeni. The Diplomat hails this as the start of energyand political relationship between the two nations. 

Asia - Still Going Up...

With such rich resources to be found in areas such as the Bay of Bengal and the Andaman Sea, it is no surprise that Asia is quickly becoming a key player in the oil and gas industry. As more Oil & Gas blocks go up for tender, investors are moving in quickly, keen to invest in the underdeveloped, energy-rich area. Foreign investment is being actively encouraged. Fiscal incentives for foreign investors is just one such example. Some of the largest international energy players have begun to invest in the region's largely untapped resources and oil and gas is fast becoming a critical element to the economic future of the region.

On 18-19 November 2013, national and international industry leaders will be meeting in Bangkok for the Asia Offshore Oil and Gas Summit. The 2-day event, co-hosted with the Bay of Bengal & Andaman Sea Oil and Gas Summit, will bring together some of the world's leading industry players, including Energy ministers, Senior Oil and Gas company representatives, Contractors, Service Companies and Solution Providers. 

http://asiaoilandgassummit.com/

Recent fears over the future of Venezuelan Petrocaribe aid have sparked a huge surge of interest in the Oil, Gas and Power industries in the Caribbean region.

Recent developments in the Venezuelan political landscape have encouraged the Caribbean region to question their position within the Oil, Gas & Power industry. Lee Hunt, consultant and former president of the International Association of Drilling Contractors, commented that:

'"What once was a trickle is fast becoming a stream in the Caribbean, with new announcements of expanding deep-water exploration lease offerings and drilling permits being issued"'.

Just seven miles from the Venezuelan coast, which holds the largest proven oil reserves, Trinidad and Tobago holds the majority of the Caribbean region's oil production and is a major exporter of liquefied natural gas. The minister of Energy and Energy affairs, Senator Kevin Ramnarine, recently noted that:

“'The level of drilling and workover activity in the oil and gas industry has significantly increased in the last two years. We expect this trend to continue in the medium term. [...] In the last two years we have applied a progressive policy with regard to the fiscal regime that has seen Trinidad and Tobago’s upstream sector become more competitive.'"

Industry professionals will have a chance to discover the latest investment opportunities at the 2-day Caribbean Oil, Gas & Power Summit in September 2013. The event aims to bring together some of the world's leading industry players, including Energy ministers, senior Oil and Gas company representatives, Contractors, Service Companies and Solution-providers, to  strengthen industry ties and seek out new business opportunities. Speakers will be addressing the Caribbean energy industry's most topical issues, including: Trinidad and Tobago licensing rounds, Exploration and Production updates, Investment and Financing Energy Projects, Small Scale LNG, Inter-Connectivity and Power Grids, the Role of Renewables in Power Generation, Rejuvenating Mature Oil Fields and a series of Case studies.

Delegates will have the chance to attend a Multi-Streamed Conference, Networking Evening, and 40 booth interactive exhibition, all in the comfort of the five-star venue, The Atlantis Hotel. A Business Match-Making Service will also be on offer to arrange one-on-one meetings between delegates.

Khalid M. Hassanali, President, Petroleum Company of Trinidad and Tobago LTD; Vernon Paltoo, President, National Energy Corporation Trinidad and Tobago; Simon Potter, CEO, Bahamas Petroleum Company and Neil Ritson, CEO, Leni Gas And Oil PLC are just some of the industry experts that will be speaking at the event.

For further information, just click here: http://www.thecaribbeansummit.com/ 

References:

http://www.caribbeannewsnow.com/topstory-Significant-increase-reported-in-Trinidad-oil-and-gas-industry-activity-15880.html

http://www.miamiherald.com/2013/04/04/3323947/venezuelan-oil-program-uncertainty.html

http://bigstory.ap.org/article/caribbean-nations-search-oil-amid-spill-fears-0 

Change is a comin'

Since the start of the economic crises, an increasing number of the former colonial powers, the United Kingdom, France and even the world's superpowers, the United States and China have turned to Africa to seek new business opportunities. According to US Senator Chris Coons, "'Foreign direct investment in the past 10 years has gone from $15 billion to close to $50 billion today'". The IMF's forecast that the region will grow around 5% this year has boosted already high interest in a region that has seen a significant number of oil and gas discoveries, particularly across East Africa. Under-explored in the last decade, things are certainly set to change.  

In a recent survey by PriceWaterHouseCoopers, Africa's oil reserves have been estimated to hold a staggering 132.4 trillion barrels, 8% of the world supply, satisfying 12% of the world's oil demands. African natural gas reserves ares estimate at 513 trillion cubic feet. Despite a number of obstacles that have hindered the industry's development, "poor infrastructure and an uncertain regulatory framework", being identified by many as the largest, many investors have seen the light. Companies and governments have increased investment in areas such as infrastructure and education to combat these challenges. The annual international Africa & Middle East Oil and Gas Summit and the likewise annual Southern Africa Oil & Gas Summit, held in September 2013 and October 2013,  are just two indicators that change is a comin', as international and national industry professionals and government energy ministers meet to discuss investment opportunities, network with key industry players from across the continents and discover new solutions to circumvent the industry obstacles. 

The Smart-Metering El Dorado

The Smart-Metering El Dorado

Africa is increasingly seen as the new El Dorado, the place to invest. Whether in oil, gas, infrastructure; the list is endless, and Smart-Metering is its newest addition. According to Navigant Research, Smart-Metering will total $461 billion in accumulative revenue in just the next seven years, reaching $73 billion in annual revenue by the close of 2020.

It is easy to see why. African nations, like Nigeria with a population of over 167 million, offer a huge consumer market. And the North African region is one of the leading emerging markets in smart grid development. Furthermore, not only does Smart-Metering in Africa make business sense, it grants African countries a chance to modernise their infrastructure.

On 26-27 September this year, national and international business leaders will be meeting in Cape Town, South Africa, for the Utilities, Smart-Metering & Grids Africa Summit. The 2-day event will allow industry professionals of the Electricity, Gas and Water Metering sectors to strengthen industry ties and seek out new business opportunities with a 2-day multi-streamed Conference, Exhibition, Networking Party and one-on-one Business Match-Making Service. Keynote speakers will discuss the most topical issues and the future of African metering. News of the latest opportunities, a wide-range of case studies on the latest developments in metering, billing and customer management presented by African Utilities, and case studies of the UAE, Kenya, South Sudan and Madagascar, amongst others, will also be available.

In recognition of excellence, Utility Awards and Solution-Providers Awards will be presented for Water Utility of the Year, Electricity Utility of the Year, Best roll-out award, Prepaid Meter Award and Versatility Innovation Award amongst others, judged by a panel of 6 Smart-Metering experts from from Utilities, Municipalities, Regulators and Government Organisations throughout Africa.

Sicelo Xulu, Managing Director, City Power (South Africa), Rojas Manyame, General Manager: Regulation, Electricity Control Board (Namibia) and Sam Amadi, Chairman, Nigerian Electricity Regulatory Commission (Nigeria) are just some of the top-level speakers that will be presenting at the event.

For further information on the 2013 Africa Utilities, Smart Metering & Grids Summit, 26-27 September, Cape Town, click here: http://www.smartmeteringafrica.com/

References:

http://www.commodities-now.com/reports/power-and-energy/14701-smart-grid-technology-market-to-reach-73bn-in-2020.html

http://www.businesswire.com/news/home/20130605006345/en/Research-Markets-Middle-East-North-Africa-Smart

World Oil and Gas Industry Leaders to Assemble in Azerbaijan, the Birthplace of Oil and Gas, to Discuss the Latest Developments and Opportunities in the Azerbaijan and Caspian Region.

Thought to be the oldest oil-producing region in the world, it is unsurprising that

“Today, offshore Caspian has become one of the world's leading hydrocarbon provinces”.

Just 120km off the coast of Azerbaijan, the Azeri-Chirag-Gunashli (ACG) field contains 5.4 billion barrels of recoverable oil. In January 2012, Azerbaijan was estimated to hold proven crude oil reserves of around 7 billion barrels and 30 trillion cubic feet of natural gas as of January 2011.

Regional investment of pipelines and the offshore oil and gas fields has led to economic and social development across the region. Yet, not only are there clear socio-economic benefits, but political advantages too. The region's energy potential has resulted in increased co-operation between the Caspian nations. From Ukraine and Azerbaijan, Azerbaijan and Russia and Turkey and Azerbaijan, political ties are being strengthened.

International investors have been quick to note the region's potential. BP has major investments in the Caspian and is part of the AIOC (Azerbaijan International Operating Company).

“The total amount of foreign capital in Azerbaijan in direct investments hit $1.4 billion in January-March 2013. The share of the oil and gas sector stood at 83.2 percent.”

In the same period,

“In January-March 2013, Azerbaijan exported $7.4 billion worth of petroleum products. The share of refined oil products totalled $0.4 billion, while oil exported by the country was worth $7 billion.”

Azerbaijan is not the only nation to exploits its rich resources. Its neighbours have followed suit. By 30 June this year, Turkmenistan, which holds the world's fourth largest natural gas reserves, hopes to begin production at the second-largest gas field worldwide, Galkynysh. Cline & Associates estimates Galkynysh reserves to hold between 13.1 trillion to 21.2 trillion cubic metres. If successful, Turkmenistan's increased exports would help Europe to lesson its energy dependence on Russia.

These matters and much more will be discussed in the 3-day Azerbaijan and Caspian Sea Oil & Gas Week 2013. This Summit aims to bring together some of the world's leading industry players to discover the latest investment opportunities and strengthen industry ties. Delegates will include Energy ministers, senior Oil and Gas company representatives, Contractors, Service Companies and Solution-providers, and is therefore an event not to be missed. Speakers will be addressing the Caspian energy industry's most topical issues, including: Current Pipeline and Infrastructure Projects, Future Gas Storage and Pipeline Projects, Exploration and Production Developments in the Shah Deniz Field and Underwater and Deep-Sea Technology Focus as well as a series of Case studies.

Furthermore, delegates will have the chance to attend a Multi-Streamed Conference, Networking Evening, and 40 booth interactive exhibition, all in the comfort of the five-star venue in Baku. A Business Match-Making Service will also be on offer to arrange one-on-one meetings between delegates.

Christian Giudicelli, General Manager, Total E&P Azerbaijan; Okan Yardimci, Energy Expert, Energy Market Regulatory Authority Turkey (EMRA); Gulmira Rzayeva, Leading Research Fellow, Energy Related Issues, Center for Strategic Studies under the President of the Republic of Azerbaijan; Vadim Ceban, Interim Head of Energy Department, The Ministry of Economy Commerce (Moldova) and a Senior Representative, European Bank of Reconstruction & Development (Azerbaijan), are just some of the industry experts that will be speaking at the event.

For further information just click here:http://www.azerbaijansummit.com/

References:

http://www.azerb.com/az-oil.html

http://www.bp.com/en/global/corporate/about-bp/bp-worldwide/bp-in-azerbaijan.html

http://www.offshore-technology.com/projects/acg/

http://www.eia.gov/cabs/azerbaijan/pdf.pdf

http://www.oilandgaseurasia.com/news/socars-5-billion-turkey-refinery-seen-online-mid-2017

http://www.news.az/articles/economy/80490

http://www.themoscowtimes.com/news/article/azerbaijan-ready-to-discuss-new-oil-transit-deal-with-russia/480150.html

http://www.azernews.az/business/55375.html

http://www.oilandgaseurasia.com/news/turkmenistan-has-high-hopes-giant-gas-field-nears-output