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Chaotic U.S. election up for grabs

In the closest, most protracted contest in over 100 years, neither Vice President Al Gore (Democrat) nor Texas Gov. George W. Bush (Republican) had been declared winner of the U.S. presidential election at press time. Gore won a less-than-1% plurality of the popular vote, but the result boiled down to which candidate could gain a majority of the 538-member Electoral College. Linked to the popular vote, the Electoral College members actually choose the president – the candidate winning a state’s popular vote also takes its electoral votes. Result of the November 7 contest hinged on Florida’s 25 electoral votes, which initially were projected for Gore but later appeared to be won by Bush. However, Bush’s popular vote margin was too small to be conclusive, triggering a recount of votes mandated by state law. At press time, recount results were being challenged legally, and additional lawsuits were underway to have the voting results in Palm Beach County thrown out. Depending on the winner, U.S. energy policy could move in radically different directions.

U.S. House grants heating-oil reserve bill

After many controversial debates sparked by the likelihood of high prices and low heating-oil supplies again this winter, Congress finally approved a permanent, 2-million-bbl, heating-oil stockpile for the Northeast. Lawmakers also restored the President’s authority to tap into the Strategic Petroleum Reserve (SPR). The bill re-authorizes, through the end of fiscal 2003, the SPR’s mandate as a 600-million-bbl stockpile in Texas and Louisiana that is set aside for energy emergencies. The legislation allows the energy secretary to draw from the stockpile when a regional supply crisis and significantly high prices exist. Rep. Edward Markey (D-Massachusetts), said home heating-oil stocks are down 70%, and costs are up $140 per home from last winter.

Canadian Oxy gets new name

As a final act, Canadian Occidental Petroleum Ltd. completed its transition from an affiliate of a U.S. oil and gas company to an independent, global E&P firm by changing its name. The new corporate name – Nexen Inc. – was approved by a majority of shareholders at a special meeting last month. The name Nexen provides a great platform for building recognition and support for business activities, said President and CEO Victor Zaleschuk. Nexen’s common share symbol on the Toronto Stock Exchange and the American Stock Exchange is now NXY, and the listing has been moved to the New York Stock Exchange.

Nicaragua launches licensing round

The Nicaraguan General Hydrocarbons Directorate (DGH) launched its E&P licensing round last month, said DGH Petroleum Development Director Mauricio Darce. About 130,000 sq km were offered for exploration. Four additional companies registered for the round despite talks of postponing it because of environmental regulatory concerns. DGH opened a data room in mid-November, with information pertaining to the round and various blocks’ geology.

New oil output online in Yemen

TransGlobe Energy Corp. reported that Nexen-operated Tasour field began producing on Block 32 in the Republic of Yemen. Initial output for Tasour 1 was about 4,000 bopd. Tasour 3 and 4 subsequently were brought onstream, with an expected rise in output to 10,000 bopd. Additionally, TransGlobe also holds a 25% working interest in Block S-1 in Yemen, where it has participated in three new discoveries.

NIDC privatization halted, Japan gets rights

Following many protests and the threat of governmental inquiries, Iran has terminated plans to privatize the National Iranian Drilling Co., worth about 20 trillion rials ($2.4 billion), said newspaper reports. "The company (NIDC) will continue to operate as in the past," company Director Heydar Bahmani reportedly said. Prior to this decision, parliament agreed to send a mission to Iran’s oil-rich southwest. The ministry planned to sell off the company for only three trillion rials. Drilling company employees opposed the privatization plan, claiming it would only lead to windfall profits for some officials of the state-run company.

   Meanwhile, Iran gave Japan negotiating rights to develop part of one of the Middle East’s largest oil fields, with claimed reserves of more than 26 billion bbl. The preferential deal between National Iranian Oil Co. and Japanese oil companies allows a Japanese consortium to negotiate acquisition of developing and operating rights for Azadegan field in southwestern Iran. This deal will be Japan’s biggest oil development project.

Kerr-McGee gains offshore tracts

Kerr-McGee Offshore Canada Ltd., won three deepwater licenses offshore Nova Scotia. The winning bids (subject to Canadian federal and provincial governments’ approval) are for parcels 1, 2 and 7. Kerr-McGee (100%) will operate the roughly 1.8 million combined acres that lie in water depths ranging from 350 ft to 10,000 ft. Kerr-McGee now operates seven licenses of more than three million acres in the deepwater Scotian Shelf.

Upstream acquisition frenzy continues

In a C$2.3-billion (US$1.5-billion) deal that more than doubled Gulf Canada Resources’ gas production in the U.S., the firm has purchased all of Crestar Energy Inc.’s outstanding common shares and associated rights. Gulf paid $177 million in cash and issued about 181 million shares for Crestar stock. Meanwhile, Amerada Hess Corp. acquired LASMO plc on a cash and share offer worth $3.5 billion. Hess issued 17.1 million shares of its common stock and paid $2.4 billion in cash. The firm also assumed $1.6 billion of LASMO’s debt. Meanwhile, Murphy Oil Corp. completed its acquisition of Beau Canada Exploration Ltd., first announced on October 12, 2000.