A review of the latest news stories realting to oil investment, March 2013 - by London Commodity Markets

1. 2013
LCM Oil Investment
Review
March 2013
The LCM Oil Investment News Review is a monthly report
compiled for London Commodity Markets to provide a
snapshot of the state of the global oil industry.
March 2013
London Commodity Markets
3/19/2013

2. Oil investment on the rise
Tax Breaks Encourage Oil Investment in the UK
After a decade or so of declining production, new tax incentives are set to boost levels of oil
investment in the UK to a record of around £13 billion this year, reports the Wall Street
Journal.
"This year and next we expect record levels of oil investment and that's a relief when you look
at how much production has fallen. It will be a catch-up from a long period of
underinvestment," said Mike Tholen, Oil & Gas UK economics and commercial director.
Malcom Webb, Oil & Gas UK’s chief executive added “The UK continental shelf is now
benefitting from record investment in new developments and in existing assets and
infrastructure, the strongest for more than
three decades”.
"The recent introduction of targeted tax
allowances to promote the development of a
range of difficult projects, coupled with the
government's ground-breaking commitment to
provide certainty on decommissioning tax
relief, has prompted global companies and
independent businesses alike to take another
look at the UK as an investment destination,"
Mr Webb said.
In an example of the new trend towards oil
investment, Scottish firm Scopus Engineering, which uses laser technology to allow oil firms to
produce accurate models of assets, like drilling platforms, has raised £13 million in order to
capitalize on surging spending by oil and gas firms, which want to raise production to meet
strong demand for energy in places like China.
Scopus has been enjoying rapid growth on the back of booming activity in the UK
North Sea and overseas. With 180 employees, Scopus has offices in a range of
countries, including Abu Dhabi and Thailand and grew sales by 15% annually, to
£13.1m, in the year to April 30, 2012. UK revenues surged 50% to £8.5m. Annual
turnover for the current year is expected to reach £18 million.
Abu Dhabi Oil Investment in Malaysia
According to reports from Reuters, Abu Dhabi is to make a US$6.75 billion oil investment in
Malaysia’s Johor state for a petroleum storage facility. Malaysia is looking to develop the area
as an oil and gas hub, part of an ambitious economic development plan.
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3. Oil Investment in Ecuador Increases
According to the Ministry of Nonrenewable Natural Resources, oil investment in Ecuador was
up by 6.6% in 2012 compared with the previous year, to around US$2.04 billion. The bulk of
the investment came from state-run oil companies and was earmarked for exploration and
production activities.
Currently, Ecuador produces about 504,000 barrels of crude oil per day and expects to increase
the oil production by about 4% this year. Source: WSJ
Iraq to make $173 billion oil investment
Iraqi Oil Minister Abdelkarim al-Luaybi announced in a press conference this week plans for a 5
year, US$173 billion oil investment program that will see oil revenues rise to US$600 billion
over the same period.
Currently, Iraq extracts 3.15 million barrels of oil per day, of which around 2.5 million barrels
are exported. Iraq's proven oil reserves hit 143.1 billion barrels. Source: Trend
Petrobras Unveils Oil Investment Plans
Brazilian state oil company Petrobras has
announced plans to spend US$236.7 billion
over the next 5 years to double its crude oil
output. The figure represents an increase
over the company’s previous 5 year plan.
The bulk of the investment is going
towards existing projects, whilst some
funds are earmarked for projects still in the
evaluation phase.
The investment will be used for exploration
and production, refining, transportation
and distribution. Source:
zeenews.india.com
Azerbaijan Oil Investment Doubles
Oil investment in Azerbaijan soured in February, more than doubling the amount invested the
previous month. Oil investment now amounts to almost half of all direct investment in the
country. According to the State Statistics Committee, around US$895 million was invested in
the oil sector during Jan-Feb 2013. Source: Azerbaijan Business Centre
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