China plans overseas joint ventures with BP, including 3,000-mile gas pipeline

BP plans to joint-venture international oil and gas development projects with Chinese companies, company chairman John Browne has told Dow Jones Newswires. Chinese premier Wen Jiabao mentioned a co-investment strategy when he visited BP's headquarters in London during a recent official visit to Europe.

China wants to increase its influence in world oil markets but also reduce risks in overseas venture by teaming with one of the world's largest oil companies, industry analaysts say. BP is now working with China National Petroleum Corp. on a 3,000-mile natural gas pipeline from East Siberia to Northeast China and Korea.

BP continues with impressive gains

LONDON - There is an old saying that goes: "Turnover is vanity, profit is sanity, but cash is king." In fact, cash has always been king and never more so than in these troubled times.

That also seems to be the view of broker Teather & Greenwood, which says the rate of cash being generated by BP, Britain's biggest company, remains impressive. The sum is made all that much more impressive when taking into account the group's higher-than-expected capital expenditure program and the fact the price of oil is likely to remain above $30 a barrel for some time to come, which will lead to higher valuations.

Dr. Zac Phillips, oil and gas analyst at Teather & Greenwood, continues to tip BP as a buy. "Oil prices are gripped by the intangible fears that supply will be hard to come by. China has been the focal point but the real danger is that the Middle East spirals out of control. For consumers, at least, $50 a barrel will then seem like a dream rather than a nightmare," he said.

- KRT Business News

South Korea reduces reliance on imports with domestic gas production

South Korea now has domestic natural gas production, reducing its reliance on imported liquefied natural gas, or LNG. The Tonghae-1 gas field, 35 miles southeast of Ulsam, is owned by Korea National Oil Corp. Pilot production started in July, according to Dow Jones News Wire. Completion of an LNG plant at the field will allow KNOC to produce 400,000 tons of LNG a year for Korea's domestic market.

Korea is one of the Asian markets where supports of an Alaska LNG project hope to place orders.

Exxon looks to market Sakhalin gas in Russia

Exxon Mobil Corp. said it is considering a plan to market natural gas from its Sakhalin 1 project in Russia's Far East in the form of liquefield natural gas, or LNG. Previously the company's plan was to build a pipeline from Sakhalin to northern Japan to market the gas. A consortium led by Shell is now building an LNG plant in the southern part of Sakhalin.

Key energy bill still on table for House, Senate

WASHINGTON, D.C. - Congress meets next week to finish "must-pass" legislation in the wake of Republican election gains, but some GOP-sponsored bills of importance to the oil and gas industry likely will remain in limbo.

The long-stalled energy bill appears just as gridlocked as before the re-election of President Bush and increases in GOP majorities in both lawmaking chambers. Republicans said a measure more to their liking will be resurrected after a new House and Senate convene early next year.

Republicans, in a stronger negotiating stance after last week's elections, said they will make fresh starts next year on major bills such as energy legislation, which includes tax breaks for oil and gas exploration.

The larger majorities in the House and Senate next year will likely revive provisions that would let private companies search for oil, coal and natural gas on restricted federal lands such as Alaska's Arctic National Wildlife Refuge.

- KRT Business News