October 17, 2011   12 notes

UPDATE 1-Emerge Oil cuts 2011 output view, to drill fewer wells

The company expects to drill 40-43 heavy oil wells during 2011, compared to a planned 65-70 wells earlier.The oil and gas company expects third-quarter output to average 5,400-5,500 boe/d, while it continues to expect total capital expenditures of C$70-C$75 million for 2011.The company’s 2011 exit target is 9-12 percent short of last year.

October 14, 2011   112 notes

UPDATE 1-Bank of Canada chief says ready to head G20 board

* Canada says support building for BoC’s CarneyOct 14 (Reuters) - Canada’s central bank chief says he is ready to serve as head of the Financial Stability Board, the regulatory task force of the Group of 20 leading nations, if the G20 wants him to do the job.”If I’m asked to do it I would serve,” Bank of Canada Governor Mark Carney said in an interview on CBC Television.The FSB role would be on top of his day job at the Bank of Canada, he added in the interview, which CBC is broadcasting on Friday evening.CBC said the interview was conducted on Thursday.The FSB, currently headed by Bank of Italy Governor Mario Draghi, is charged with making sure bank regulations are strong enough to prevent financial crises of the type that triggered the economic problems of 2008 and after.Canadian Finance Minister Jim Flaherty said Canada’s lobbying on behalf of Carney appeared to be paying off.”I think we’re making progress (in winning support for Carney),” he told reporters in Paris where he and Carney are both attending a G20 finance ministers’ meeting.Carney is a former Goldman Sachs banker who has won widespread respect for his handling of the financial crisis and general praise for his grasp of markets.At a bankers’ meeting in Washington last month, he was at the butt end of a verbal attack by JPMorgan Chase Chief Executive Jamie Dimon for plans by global regulators to impose new capital surcharges and other regulations on the world’s most influential banks.Carney has headed the Bank of Canada since 2008. He also chairs the Committee on the Global Financial System, a group within the Bank for International Settlements (BIS) in Switzerland, that seeks to detect and respond to threats of instability in the global financial system.Switzerland’s Philipp Hildebrand has also been mooted as a candidate to head the FSB.A decision is to be announced at the Nov. 3-4 G20 summit.

October 11, 2011   43 notes

Russia says close to final stage on China gas deal

A deal to supply the world’s second biggest economy with up to 68 billion cubic meters of Russian gas a year over 30 years has long been delayed over pricing disagreements.”We are nearing the final stage of work on gas supplies,” Putin said during a visit to Beijing,” said Russian Prime Minister Vladimir Putin, on his first overseas trip since announcing he was ready to reclaim the Russian presidency.Putin is hoping his two-day visit will help broaden trade with China, which he expects to grow to $200 billion in 2020 from $59.3 billion last year.Earlier, his Deputy Prime Minister Igor Sechin said that there had been “significant” progress in the gas talks with Chinese Vice Premier Wang Qishan.A senior Russian official had said before Putin’s arrival that Moscow did not expect a breakthrough in the gas talks.Sechin also that the two sides had resolved their differences over China’s debts for Russian oil exports.”This question has been settled and removed from the agenda,” said Sechin.Putin had earlier appeared to suggest that more give-and-take was needed before the gas could begin flowing.”Our talks a taking place in a business-like atmosphere, with the mutual desire to find compromise on difficult questions which inevitably arise given the sheer volume of our relationship,” Putin told Premier Wen Jiabao in the Great Hall of People, a cavernous official building in central Beijing.”As far as the as the economy and trade are concerned, issues of practical nature are being resolved, and this is good,” Putin added in remarks made at the start of his talks with Wen that reporters were allowed to see.”Those who sell always want to sell at a higher price, while those who buy, want to buy at a lower price. We need to reach a compromise which will satisfy both sides,” said Putin, who did not directly mention the gas issue.China’s Xinhua state news agency praised Putin’s visit as one that “will mark ever-deepening China-Russia cooperation.” But the two giant neighbors have so far failed to seal a huge gas deal that has been negotiated for five years.Russian state bank VEB and the China Development Bank (CDB) signed a deal for the Chinese bank to invest $1.5 billion in building the first stage of UC RUSAL’s 750,000-tonne Taishet aluminum smelter.As well, the China Investment Corp agreed to invest $1 billion in a joint Russia-China Investment Fund set up in partnership with a Russian state-backed vehicle to promote direct investment.The tortuous gas negotiations have been a reminder that, despite frequent professions of brotherly goodwill between Moscow and Beijing, relations are held back by mutual distrust, especially on the Russian side, extending back to the Cold War, when border disputes almost erupted in full-fledged war.But the two neighbors have found common ground in opposing what both see as excessive meddling and pressure on the international stage by the United States and its allies.Russia and China joined forces last week to veto a European-drafted U.N. Security Council resolution condemning Syria for its bloody crackdown on protesters.Putin has brought an army of Russian executives including the CEOs of state-controlled energy firms Gazprom and Rosneft and aluminum producer UC RUSAL, all eager to exchange their wares for Chinese cash.Wednesday, Putin will meet Chinese President Hu Jintao.