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Oil Investment Review by London Commodity Markets


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

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Oil Investment Review by London Commodity Markets

  1. 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. 2. Oil investment on the riseTax Breaks Encourage Oil Investment in the UKAfter a decade or so of declining production, new tax incentives are set to boost levels of oilinvestment in the UK to a record of around £13 billion this year, reports the Wall StreetJournal."This year and next we expect record levels of oil investment and thats a relief when you lookat how much production has fallen. It will be a catch-up from a long period ofunderinvestment," said Mike Tholen, Oil & Gas UK economics and commercial director.Malcom Webb, Oil & Gas UK’s chief executive added “The UK continental shelf is nowbenefitting 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 governments 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 oilinvestment, Scottish firm Scopus Engineering, which uses laser technology to allow oil firms toproduce accurate models of assets, like drilling platforms, has raised £13 million in order tocapitalize on surging spending by oil and gas firms, which want to raise production to meetstrong demand for energy in places like China.Scopus has been enjoying rapid growth on the back of booming activity in the UKNorth Sea and overseas. With 180 employees, Scopus has offices in a range ofcountries, 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. Annualturnover for the current year is expected to reach £18 million.Abu Dhabi Oil Investment in MalaysiaAccording to reports from Reuters, Abu Dhabi is to make a US$6.75 billion oil investment inMalaysia’s Johor state for a petroleum storage facility. Malaysia is looking to develop the areaas an oil and gas hub, part of an ambitious economic development plan.Page | 2
  3. 3. Oil Investment in Ecuador IncreasesAccording to the Ministry of Nonrenewable Natural Resources, oil investment in Ecuador wasup by 6.6% in 2012 compared with the previous year, to around US$2.04 billion. The bulk ofthe investment came from state-run oil companies and was earmarked for exploration andproduction activities.Currently, Ecuador produces about 504,000 barrels of crude oil per day and expects to increasethe oil production by about 4% this year. Source: WSJIraq to make $173 billion oil investmentIraqi Oil Minister Abdelkarim al-Luaybi announced in a press conference this week plans for a 5year, US$173 billion oil investment program that will see oil revenues rise to US$600 billionover the same period.Currently, Iraq extracts 3.15 million barrels of oil per day, of which around 2.5 million barrelsare exported. Iraqs proven oil reserves hit 143.1 billion barrels. Source: TrendPetrobras Unveils Oil Investment PlansBrazilian state oil company Petrobras hasannounced plans to spend US$236.7 billionover the next 5 years to double its crude oiloutput. The figure represents an increaseover the company’s previous 5 year plan.The bulk of the investment is goingtowards existing projects, whilst somefunds are earmarked for projects still in theevaluation phase.The investment will be used for explorationand production, refining, transportationand distribution. Source:zeenews.india.comAzerbaijan Oil Investment DoublesOil investment in Azerbaijan soured in February, more than doubling the amount invested theprevious month. Oil investment now amounts to almost half of all direct investment in thecountry. According to the State Statistics Committee, around US$895 million was invested inthe oil sector during Jan-Feb 2013. Source: Azerbaijan Business CentrePage | 3
  4. 4. About London Commodity MarketsWith over a century of combined experience in the rare earth elements and alternative investmentsmarket, our team at London Commodity Markets have a proven track history of delivering excellentconsultation as well as an unrivalled service to all our clients.As a result of this unrivalled standard of service, quality advice and ethical approach to themarketplace, London Commodity Markets have become the globe’s fastest growing rare earthelements and alternative investments company. HEAD OFFICE Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001 Email: Home Counties Office Suite 1A, Park Street, Maidenhead, Berkshire SL6 1SL T: 00 44 (0) 203 393 3176Disclaimer:This document is issued by London Commodity Markets for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potentialproject and opportunity. The information in this document is general and informational only and is not intended to constitute professional or investment advice, or to beconstrued as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription orpurchase of securities. This document does not take into account the recipient’s particular investment objectives or financial situation. Before making any investmentdecision, the recipient should conduct its own investigation and analysis of the project, as well as any data, pricing and projections described herein. London CommodityMarkets does not give any warranty or representation as to the reliability or accuracy of the information contained herein, nor does it guarantee that the stated pricing andprojections will be available to the recipient.London Commodity Markets are neither registered nor regulated by the FSA, and are not authorised to carry out regulated activities. All markets relating to Rare EarthElements, Oxides and Metals are not regulated by the FSA, and as such anyone investing in these markets would not have access to the Financial Ombudsman Service (FOS) orFinancial Services Compensation Scheme (FSCS).The information contained herein is for information purposes only, and is not intended for trading purposes or deemed to be investment advice or constitute a service.London Commodity Markets, directors or any of its staff, agents, creators and administrators of website shall not be liable for any errors ordelays in the content of these pages, or for any actions taken in reliance thereon. As with any Investment there is a risk of losing money. Rare Earth Products are alternativeinvestments and such should be regarded as high risk.LONDON COMMODITY MARKETS IS NOT REGULATED BY THE FSA OR SEC.Page | 4