China National Petroleum Corp. reorganized and changed its name to PetroChina Co. as it prepared for its US$7-billion initial public offering. Aiming to extend its title as the nation's top exploration and production company, PetroChina plans to devote more resources to marketing. Post-IPO, the company expects to introduce incentives similar to stock options to tie executive pay to the company's performance. Exxon Mobil Corp., Irving, Texas, through its Egyptian affiliate Esso Exploration & Production Egypt Ltd. has acquired interest in a producing property from Shell Egypt Deepwater BV. The acquired interest consists of 25% of the Egypt Northeast Mediterranean (Nemed) Block; Shell retains the remaining 75% interest in the block. The 10-million-acre block is in water of 2,600 to nearly 9,800 ft., encompassing the majority of the deepwater Nile Delta area of the eastern Mediterranean Sea. Bitech Petroleum Corp., Brampton, Ontario, and Fortum Oil & Gas Oy of Finland, through their 50-50 partnership Bitech Fortum Energy Co., will acquire BG Group subsidiary BG North Sea Holdings Ltd.'s 50% stake in CJSC KomiArcticOil for US$28 million. KAO's properties include the operatorship of the Upper Vozey Field in the Komi Republic of the Russian Federation. The field is producing 23,000 bbl. of oil per day and is estimated to have 70 million bbl. of proven and probable reserves. Canadian Occidental Petroleum Corp., Calgary, will acquire a 50% working interest in Block AC/RL3, in the Bonaparte Basin offshore northwest Australia, from BHP Petroleum Pty. Ltd. BHP will continue to hold the remaining 50% and operate. The block includes three small discoveries awaiting infrastructure plus several identified exploration prospects to be tested. Shell is reportedly in talks to sell a share of its giant deepwater Malampaya gas field project off the Philippines to state-owned Philippines National Oil Co. "I can confirm that we are in the process of negotiating with PNOC the possible consignment of an equity stake in SC 38," a Shell spokeswoman in London said. It is widely speculated that the discussion concerns a 10% stake in the property. Such a stake is valued at about US$200 million. Just two months ago, Shell sold a 45% share of the project to Texaco Inc. The project is on schedule to deliver first gas by the end of 2001, and achieve a production rate of 360 million cu. ft. per day by 2002. Italy's ENI SpA has acquired a 33.34% stake in Portuguese energy company Galp for US$975 million. As a result, ENI will become a strategic partner in Galp and participate in its management. Galp was established in April 1999 as the holding company for Portugal's oil and gas sector. It includes exploration and production company Petrogal, which has five permits in Angola, and Gas de Portugal (GDP), a company that has contracts for supplies of gas from Algerian state company Sonatrach. Portugal retains 34.8% of Galp, remaining the company's biggest shareholder. Petrobras will join Chevron Corp. and Coastal Corp. and two local Brazilian firms, Queiroz Galvao Perfuracoes and Petroserv, to produce and develop oil in two offshore blocks. With Chevron, Petrobras will carry out exploration and production projects in the rich Campos Basin, off the coast of Rio de Janeiro, and in the Cumuruxatiba Basin, in the northeastern state of Bahia. The Campos basin project is expected to need initial investments of US$48 million, while the Cumuruxatiba deal is estimated at US$38 million. Chevron will have a 50% stake in the projects. The deal with Coastal involves oil development in the southern state of Parana, with investments estimated at US$18 million. -Jennifer Blader
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