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					ASIA POWER UPDATES
(September -December 2005)

Afghanistan Australia Bangladesh Central Asia China India Indonesia Iran Japan Laos Malaysia Nepal Pacific Pakistan Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam Others

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Compiled by Violeta P. Corral, Public Services International Research Unit (PSIRU-Asia www.psiru.org); Unless otherwise cited, items are drawn from Energy Briefing - Asia Pulse.

AFGHANISTAN ADB STOPPED FROM BUILDING HYDROELECTRIC PLANT IN AFGHANISTAN SEPT 1, 2005 BAMYAN CITY - Authorities in the central Bamyan province stopped an Asian Development Bank (ADB) team from the unauthorised building a hydroelectricity plant at the famous Band-i-Amir (Amir Lake). Bamyan deputy governor Mohammad Ibrahim Akbari told Pajhwok Afghan News a 15-member group, including an Indian engineer and a Dutch woman, had started drilling the wall of the dam one week ago. GERMAN INVESTORS SHOW KEEN INTEREST IN AFGHAN POWER SECTOR SEPT 1, 2005 KABUL - German investors have evinced an interest in the power sector of Afghanistan and agreed to initiate projects for generating electricity by using cheaper sources like windmills and solar energy. This expressing of interest came at a meeting organised by the Afghan Investment Support Agency (AISA) was held here on Wednesday, attended by representatives of several private German companies. RISING FUEL PRICES WORRY KABUL TRADERS SEPT 6, 2005 KABUL - Rising fuel prices in Kabul have worried traders, who fear the rates may further soar. But the authorities say the price hike is linked to international market trends. Afghan Oil Company Director Khalilullah Ferozi Monday cited the Katrina tragedy in the US and higher oil demand in Central Asia as principal reasons for the increase in fuel prices. FUEL PRICES SHOOT UP IN KABUL SEPT 8, 2005 KABUL - Prices of daily commodities and bus route fares have shot up in Kabul with the sharp increase in fuel prices. The price of one litre diesel went up from 26 afghanis (60 US cents) to 32 afghanis (75 US cents), while petrol price increased from 27 to 30 Afghanis per litre. Similarly liquid petroleum gas price increased from 32 to 40 afghanis. AFGHANISTAN EYES POWER IMPORT FROM PAKISTAN SEPT 27, 2005 PESHAWAR - High-ranking Afghan government officials, seeking support from friendly countries, highlighted the progress achieved by the strife-torn nation since the Bonn Agreement at a seminar here on Monday. Addressing the day-long seminar arranged by the Afghan Consulate here, they referred to the Karzai-led government's achievements in political, economic, educational, reconstruction, health and security domains over the last four years. INDIA'S KEC INTL BAGS US$36 MLN ORDER FROM AFGHANISTAN GOV'T OCT 10, 2005 MUMBAI - KEC International Ltd on Friday said it has bagged two new orders worth US$36 million from the Ministry for Energy and Water, Government of Afghanistan. The contract is to supply and construct 220 KV double circuit transmission lines from Hairatan to Naibabad to Mazar-I-Sharif over a distance of 16 kms and Naibabad to Pul-E-Khumri over a distance of 165 kms. US SET TO EXTEND AFGHANISTAN ASSISTANCE IN POWER, IRRIGATION OCT 12, 2005 KABUL - The United States will provide Afghanistan assistance for power and irrigation projects, Agriculture and Food Minister Obaidullah Ramin announced on Tuesday. Speaking

to journalists at the Kabul airport on return from Washington D.C., Obaidullah Ramin claimed the US energy minister had promised to provide 150 megawatts of power to Kabul in the winter. NASA CONFIRMS GAS, MINIERAL RESERVES IN AFGHANISTAN NOV 15, 2005 KABUL - The US-based National Aeronautics and Space Administration (NASA) has confirmed the existence of gas reserves in northern and southwestern Afghan regions. The NASA also hinted at the existence of copper and gold reserves in the central Logar province and fuel reserves near Amo River, a senior official claimed on Monday. TURKMENISTAN-AFGHAN-PAKISTAN GAS PIPELINE PROJECT NOV 24, 2005, RASHID ASHRAF Business Recorder Global News Wire According to a senior Asian Development Bank's energy specialist, Dan Millison, reserves information from Turkmenistan released some time ago shows a lower than expected gas deliverability for a proposed $ 3.3-billion TAP (Turkmenistan- Afghanistan--Pakistan) pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. It may be remembered that ADB has been brokering the 1700 km pipeline project since 2002, promoting it as a win-win example of regional co-operation, a pioneering effort to link gasrich Central Asia with energy-deficient South Asia through Afghanistan. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing", said Millison. "They will need to find gas from other fields to meet pipeline design targets," he said. ADB also pointed out that with long-term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline. India already imports gas and the demand is expected to soar in the next decade, Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. Apart from financing the feasibility report for the Turkmen project, ADB financed a study for underground natural gas storage in Pakistan, where storage capacity would help meet local demand peaks in winter and counter possible supply disruptions. Earlier in its study issued in July 2005, ADB discussed that pipeline route would run from Daulatabad in Turkmenistan to Kandahar in Afghanistan to Loralai in Pakistan and then on to Multan. Although the route was not finalised because it is up to the investors to decide the route. Unfortunately, security concerns extend beyond Afghanistan. If the route through western Afghanistan emerges as the best option, the pipeline would cross Balochistan where attacks on oil and gas transmission lines are a common feature. If the alternative option is chosen, the pipeline would cross the North West Frontier Province (NWFP) of Pakistan, which includes the semi-autonomous tribal areas. These regions, most notably the tribal areas, are known for their fierce independence. However, the Pakistan official said that in case of sanctions against Iran for its nuclear plan, Pakistan will immediately move towards the other proposed TAP pipeline and Qatar-Pakistan pipeline. When asked as to which project Pakistan would like to initiate in case of sanctions against Iran, Secretary Petroleum and Natural Resources Ahmad Waqar said that Qatar pipeline is costly and Turkmenistan has so far failed to provide certificate about Daulatabad gas field. The construction of a natural gas export route from Turkmenistan to Pakistan, Russia, Kazakhstan, and Uzbekistan could eventually link in to the eastern gas line. The potential for demand growth in the Asian market is nearly unlimited at prices that both buyers can pay and suppliers can profit. This is in sharp contrast to routes to Europe where the regional producers would likely find intense competition among themselves for a limited market. Russia, Turkmenistan, Kazakhstan and Uzbekistan have all publicly noted their interest in working jointly toward an eastern corridor. In the first stage of development, Turkmenistan is likely to provide most or all of the gas, with incremental supplies coming later from other countries. Since Pakistan and India's demand for gas has nearly no ceiling - at prices around of $ 2 per mmBtu - several suppliers could be considered once Turkmenistan gets the

export ball rolling. However, there's no guarantee that Turkmenistan will not try to go it alone, leaving other suppliers with only small regional markets to tap. Blessed with vast gas reserves, Turkmenistan has been exploring for the last 13 years ways to diversity its gasexport options and to lessen its dependency on the northern export route through Russia. Turkmenistan's gas balance is such that its maximum possible production volume in the years ahead is estimated at approximately 100 billion-110 billion cubic meters per year. Domestic demand totals 15 billion-20 billion cubic meters, the maximum export volume to Iran is 10 billion-13 billion cubic meters, and the remainder is now contracted wholly to Russia. The project would bring clean fuel at competitive costs to India and Pakistan coupled with the much-needed transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Daulatabad gas field has gross reserves of 1.4 trillion cubic metres. However, production forecasts are lower than expected, causing analysts to doubt that it could meet the proposed target of piping 30 billion cubic metres (BCM) of gas annually to South Asia. This 2,700 km pipeline would cost more than double the Turkmenistan scheme but leaves out Afghanistan, where security concerns remain. As regard with the financing of the TAP project, there was a proposal to establish a consortium with the participation of the multilateral agencies. Leading US companies like UNICOL formed a consortium including Delta of Saudi Arabia Itochu of Japan, Inpex of Japan, Hyundai of South Korea and Crescent of Pakistan. Recently, the Russian gas giant Gazprom was also keen to join in. Reports emanating from press indicating the interest of Chinese company named China Petroleum Engineering and Construction (CPECC). It is said that Turkmenistan's gas reserves may be the greatest of the untapped oil and gas reserves in the Caspian region. What differs Turkmenistan from all other gas producers in the region is that it has a significant track record as a proven exporter of gas prior to the break-up of the Soviet Union and in recent years to Ukraine. Granted this export route, Russia has been closed off indefinitely, if not in perpetuity, by Gazprom, who has said on numerous occasions that the days of Turkmen gas transiting through the Russian system are over. But it does leave Turkmenistan with a significant amount of domestic infrastructure to take gas to its borders. Given the transportation difficulties encountered by many aspiring gas and oil exporters in this part of the world, this fact is not insignificant. Turkmenistan is largely a desert country, with proven recoverable natural gas reserves of 71 trillion cubic feet (TCF) (about two trillion cubic metres) and possible reserves of over 200 TCF (about six trillion cubic metres). It is one of the world's largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining. With large gas reserves and a small population, Turkmenistan's export potential is huge, though substantial investments are needed to increase production. Turkmenistan at present pipes most of its gas to Ukraine and Europe via Gazprom, the Russian utility, though it has also a small pipeline to Iran. Even if Turkmenistan settles for current gas prices with India and Pakistan, observers note that it should have some pricing leverage within five years when the project comes on stream. The question is whether Pakistan will choose TAP with so many questions surrounding the availability of sufficient gas reserves for the pipeline in Turkmenistan. The idea of the Trans-Afghan Pipeline was revived by the exhausting efforts of the Asian Development Bank after the defeat of the Taleban regime, but unrest in Afghanistan, the unpredictable behaviour of the Turkmen president, and Russia's total control over the Turkmen gas market render the idea quite unrealistic. ADB's recent report again creates doubts in the minds of many. The question is why Pakistan can't consider seeking new avenues for importing gas from Kazakhstan which has proven natural gas reserves of 65 trillion cubic feet (tcf). Besides that, Uzbekistan and Azerbaijan has 66 and 30 tcf respectively of proven natural gas reservoirs. With its 65 tcf of gas reserves, Kazakhstan certainly has the reserves to be a major gas exporter. More than 40% of the country's reserves are located in the giant Karachaganak field in the north-west. Karachaganak's gas processing is done north of the border at Russia's Orenburg facility, it is Karachaganak's

potential of producing 200,000 b/d of oil and condensate that has investors interested in the field. Currently Kazakhstan produces around 600-mmcf/d and imports another 450-mmcf/d, with no exports in the formula. Imports come into Almaty via Tashkent from eastern Turkmenistan, Kazakhstan has two separate pipeline grids; one that exports Karachaganak gas to Russia and one that import Turkmen gas for use in Almaty. Azerbaijan could play an important role in Caspian gas exports as a key transit point to Turkey. The US Department of State has been pushing the idea that a gas pipeline from Turkmenistan across the Caspian and through Azerbaijan and Armenia and/or Georgia is a viable alternative to the northern Iranian pipeline. Under the scheme, both Azerbaijan and Turkmenistan would sell their gas along the route. The question of political obstacles to such a route remains a serious problem. Uzbekistan is one of the 10 largest gas producers in the world. Since the fall of the Soviet Union, the country has made considerable headway in building its gas production from 4.1-bcf/d, in 1992 to almost 5-bcf/d in 1997. Taking short-term steps to increase production at existing fields, most gas production increases have come from fields in south-east Uzbekistan in older fields such as Shurtan and Kokdumalak, programs include conversion of cars and trucks to run on compressed gas instead of gasoline, and utilisation of gas for feedstock at a new $ 1 billion gas chemicals plant at the Shurtan gas field. FUEL PRICES RISE IN AFGHANISTAN AS WINTER SETS IN DEC 9, 2005 KABUL - The chill in the weather has led to 5 per cent increase in the price of firewood and liquefied petroleum gas (LPG), although diesel rates have fallen in Kabul. Hussain Ali, a wood dealer in the Serai Ghazni Market, said on Thursday that the price of per 280kg firewood had increased from 3,800 to 4,000 afghanis (US$88.90-US$93.50) during the week. Ghulam Rabbani, a shopkeeper in the Asamai LPG market, said the price of one kilogram of gas had jumped from 48 to 50 afghanis. AUSTRALIA WOODSIDE ENERGY ACQUIRES GRYPHON EXPLORATION SEPT 1, 2005 SYDNEY - Woodside Petroleum Ltd (ASX:WPL) subsidiary Woodside Energy has expanded its Gulf of Mexico interests by acquiring the Gryphon Exploration Company. Woodside paid $US282.7 million ($A378.6 million) for Gryphon, with the transaction to be immediately earnings and cashflow accretive. AUSTRALIA'S VIRGIN BLUE SAYS IT WON'T INCREASE FUEL SURCHARGE SEPT 2, 2005 MELBOURNE - Virgin Blue (ASX:VBA) says it won't be introducing an additional fuel surcharge at this stage but will look at its fare structure to see if some fares should be increased. The discount airline said it would hold back on making any change to its existing A$19 (US $14.50) fuel surcharge, but would review some of its fares. HURRICANE KATRINA TO HIT AUSTRALIAN ECONOMY, PETROL PRICES SEPT 2, 2005 CANBERRA - The damage caused in the US by Hurricane Katrina will hit the Australian economy and drive up petrol prices, the federal government warned today. Treasurer Peter Costello and Prime Minister John Howard both urged Australians to prepare for the economic fallout from Katrina which smashed into the United States Gulf of Mexico coastline earlier this week. JET FUEL SUPPLIES RETURN TO NORMAL AT SYDNEY AIRPORT SEPT 2, 2005

SYDNEY - Jet fuel supplies have returned to normal at Sydney Airport, ending a week of rationing caused by unusable stocks, the distributor says. Standard testing of the fuel last Friday revealed a significant portion was unusable, with low levels of an element ensuring there would be no static build-up when fuel was moved. AUSTRALIA'S STRAITS BOOSTS RESOURCE AT INDONESIAN COAL MINE SEPT 2, 2005 PERTH - Diversified miner Straits Resources Ltd (ASX:SRL) has bumped up the size of the resource at its coal mine in Indonesia and was now considering a higher production rate next year. Straits increased the resource at Sebuku to 24.9 million tonnes of coal, up from 18 million tonnes at the end of last year. AUSTRALIAN PM SAYS HURRICANE TO CAUSE SHORT-TERM OIL PRICE HIKE SEPT 2, 2005 CANBERRA - Prime Minister John Howard today warned Australians to brace themselves for a short term spike in the price of oil due to the devastating impact of Hurricane Katrina. Apart from its enormous death toll, Katrina has also wreaked havoc on oil-producing states in the US, halting 10 per cent of the US refining capacity and 25 per cent of crude oil output as it tore through Florida, Alabama, Mississippi and Louisiana. AUSTRALIA'S MONAX MINING CLOSES IPO OVERSUBSCRIBED SEPT 6, 2005 PERTH - Uranium explorer Monax Mining Ltd (ASX:MOX) has closed its A$5 million (US$3.8 million) initial public offer (IPO) oversubscribed, testament to the continuing popularity of uranium. After its successful, IPO Monax plans to list on the Australian Stock Exchange on September 21, with a market capitalisation $10 million. BABCOCK AND BROWN LOOKING AT OPTIONS FOR ITS WIND FARM INVESTMENTS SEPT 6, 2005 SYDNEY - Babcock and Brown Infrastructure Group (BBI) (ASX:BBI) says it is looking at a range of options for its wind farm investments, which may include spinning them off into a separate fund. BBI has a 50 per cent interest in Global Wind Partners, which has wind farms in Australia, Spain and Germany. OIL EXPORTERS MUST LIFT PRODUCTION: AUSTRALIAN TREASURER SEPT 6, 2005 JAKARTA - There was little the government could do to cut soaring petrol prices except pressure oil exporting nations to boost production, Australian Treasurer Peter Costello said. Mr Costello said he would be pushing nations such as Indonesia to boost production as one way of taking pressure off high prices. NUCLEAR POWER AN OPTION FOR AUSTRALIA: COSTELLO SEPT 6, 2005 JAKARTA - Australia should consider nuclear power and boost uranium exports to countries eager to increase their own nuclear energy stocks, Treasurer Peter Costello said. Entering the debate over whether Australia should go nuclear, Mr Costello said it was unlikely that uranium-fired power would be cheaper in Australia because of the nation's ample coal supplies. AUSTRALIAN FUEL STATIONS, FIRMS ACCUSED OF PROFITEERING SEPT 7, 2005 MELBOURNE - Fuel companies and service station operators have been accused of profiteering on the back of global oil woes, as city petrol prices surged to almost A$1.40

(US$1.07) a litre. The new top price for fuel paid by Australian motorists was reported in suburban Melbourne and Sydney Tuesday, where petrol was selling for just one-tenth of a cent below $1.40 a litre. GREAT ARTESIAN OIL & GAS STRIKES OIL IN SOUTH AUSTRALIA SEPT 7, 2005 SYDNEY - Great Artesian Oil and Gas Ltd (ASX:GOG) says its first oil discovery cements its position as a significant future player in the South Australian Cooper Basin. The company said that tests on its Kiana-1 well in the Cooper Basin showed it had found oil. AUSTRALIA'S ILUKA TO SELL COAL MINING LEASES TO XSTRATA SEPT 8, 2005 SYDNEY - Iluka Resources Ltd (ASX:ILU) will sell its Nardell colliery mining leases in the Hunter Valley to Xstrata Coal Pty Ltd for A$15.3 million (US$11.64 million). Newpac No.1 Colliery, formerly known as the Nardell Colliery is operated by Resource Pacific Ltd under a sublease agreement and the leases are held by Iluka subsidiary Ashton Coal Interests Pty Ltd. AUSTRALIAN PM RULES OUT CUT IN FUEL EXCISE SEPT 8, 2005 CANBERRA - Prime Minister John Howard has refused to cut fuel excise despite record world oil prices pushing petrol to almost A$1.40 (US$1.07) a litre. Motorists in Sydney, Melbourne and Canberra are paying as much as 139.9 cents a litre, while prices have reached 137.9 cents in Perth and 134 cents in Adelaide. AUSTRALIAN CONSUMERS SHUN NEW DEBT AS PETROL PRICES SOAR SEPT 9, 2005 SYDNEY - Australians consumers have entered an era of market conservatism, shunning new personal debt as petrol prices soared and the housing sector softened, economists said. The Australian Bureau of Statistics (ABS) today said total personal finance commitments fell 0.2 per cent in July, seasonally adjusted, to A$5.96 billion (US$4.54 billion) compared with a revised A$5.972 billion in June. AUSTRALIA HAS BECOME HOSTAGE TO OIL PRICE FROM MIDDLE EAST: ALP SEPT 9, 2005 SYDNEY - Australia has become hostage to the price of oil from the Middle East under the Howard government, federal Labor leader Kim Beazley says. Petrol prices have hit a record A $1.40 a litre as oil company profit margins soar. HOLDEN LAUNCHES CAR ABLE TO RUN ON LPG AND PETROL SEPT 9, 2005 ADELAIDE - As petrol prices soar, car maker Holden has launched a dual fuel version of the Commodore modified to run on liquefied petroleum gas (LPG). The company said the car featured a newly-developed version of its 3.6 litre V6 Alloytec engine. CENTENNIAL COAL REVIEW OF NSW MINE FINDS EXTRA RESERVES SEPT 9, 2005 SYDNEY - NSW coal miner Centennial Coal Co Ltd (ASX:CEY) has announced a big increase to the reserves at Tahmoor mine and a plan to raise A$100 million (US$76 million) to help further grow its operations. Managing director Bob Cameron said a review of Tahmoor as part of its integration into the Centennial group showed it had increased coal reserves from 47.5 million tonnes to 80.3 million tonnes.

AUSTRALIAN PM SEEKS TO PLACATE ANGER OVER HIGH FUEL PRICES SEPT 9, 2005 ADELAIDE - Prime Minister John Howard says he understands anger at spiralling petrol prices and may ask Australia's consumer watchdog to investigate. Australian Competition and Consumer Commission (ACCC) chairman Graeme Samuel says the commission only has an advisory role on petrol prices, but he's worried "something funny" is happening to refined fuel price margins. CALTEX SAYS IT WON'T BE ATTENDING AUSTRALIAN PETROL SUMMIT SEPT 12, 2005 SYDNEY - Caltex says it will not attend an emergency summit on rising fuel prices because the meeting won't reveal anything new on the issue. Caltex CEO Dave Reeves rejected claims that petrol companies were involved in price gouging, but said the company had benefited from recent high prices at the bowser. HIGH PETROL PRICES FORECAST TO HIT AUSTRALIAN SEPT RETAIL SALES SEPT 12, 2005 MELBOURNE - Sustained high petrol prices are expected to hit retailers this month as consumers cut back their spending to keep the family car on the road. According to investment house Citigroup, the spike at the bowser will lead to a weak September for retailers with sales likely to be down 3.1 per cent. NRMA URGES AUSTRALIAN GOVT TO CUT FUEL TAXES AS PRICES SURGE SEPT 12, 2005 SYDNEY - The federal and NSW governments should slash fuel taxes to ease the burden on families facing soaring fuel bills, the NRMA says. The world oil price has skyrocketed in recent weeks and the cost of unleaded fuel is predicted to reach A$1.45 (US$1.12) a litre in metropolitan Sydney this week. AUSTRALIAN WATCHDOG FREE TO PROBE HIGH PETROL PRICES: COSTELLO SEPT 12, 2005 CANBERRA - The nation's competition watchdog was free to investigate high petrol prices, Treasurer Peter Costello said today. But Mr Costello said the true cause of high petrol prices across Australia was the high price for world crude oil. SHELL AUSTRALIA FACING PROSECUTION OVER LICENCE BREACHES SEPT 12, 2005 MELBOURNE - Shell Australia is facing fresh prosecution over licence breaches at its Geelong refinery. Victoria's environment protection authority has criticised the poor environmental performance of the company's jetty operations, Melbourne's The Age newspaper says. AUSTRALIA'S AGL TO BUY 50% STAKE IN SYDNEY GAS SEPT 14, 2005 MELBOURNE - The Australian Gas Light Company (ASX:AGL) is to take a 50 per cent stake in the NSW coal seam methane assets of Sydney Gas Ltd (ASX:SGL). Under a new joint venture agreement, AGL will pay $42.25 million (US$32.5 million) for its half share in Sydney Gas' production leases and exploration licences, including the Camden Gas Project. AUSTRALIA'S LIVINGSTONE EXPLORATION MAKES STRONG ASX DEBUT SEPT 14, 2005 PERTH - New oil and gas explorer Livingstone Exploration Ltd (ASX:LPL) made a smooth entry into public life, listing on the Australian Stock Exchange at a premium after raising

A$3 million (US$2.3 million) in its initial public offering (IPO). Livingstone issued 15 million shares at 20 cents each in its IPO, which opened at 35 cents. HIGH FUEL PRICES HIT AUSTRALIAN CONSUMER CONFIDENCE: LABOR SEPT 14, 2005 CANBERRA - A huge fall in consumer confidence is further evidence of the impact high petrol prices are having on the economy, Labor says. Opposition treasury spokesman Wayne Swan said the huge fall in the latest Westpac-Melbourne Institute consumer sentiment index was almost solely due to high fuel prices. AUSTRALIAN OFFSHORE PETROLEUM EXPLORATION RISES IN PAST 6 MONTHS SEPT 14, 2005 CANBERRA - Offshore petroleum exploration has surged in the past six months on the back of high oil prices, new figures from the Australian Bureau of Statistics show. The bureau's latest mineral exploration statistics showed the actual amount spent in the first half of the year on offshore petroleum exploration rose 22.4 per cent to more than A $426 million (US$328 million). VIRIDIS CLEAN ENERGY LISTS ON AUSTRALIAN MARKET AT A PREMIUM SEPT 14, 2005 MELBOURNE - Environmentally friendly power generator Viridis Clean Energy Group (ASX:VOR) listed on the Australian Stock Exchange today at a premium to its offer price. Shares in the group first traded at $1.04 at 1100 AEST, four cents above the offer price of $1. AUSTRALIA'S PURUS ENERGY LISTS ON ASX AT A PREMIUM SEPT 14, 2005 MELBOURNE - Coal seam gas explorer Purus Energy Ltd (ASX:PUR) has today listed on the Australian Stock Exchange at a premium to its offer price. Purus first traded at 23 cents at 1130 AEST, higher than the issue price of 20 cents. SANTOS SAYS GAS FLOWS FROM FIELD OFF W AUSTRALIA SEPT 15, 2005 MELBOURNE - Gas has started to flow from Santos Ltd's (ASX:STO) $A300 million ($US228.33 million) John Brookes field in the Carnarvon Basin off the coast of Western Australia. Santos said gas had begun to flow at a rate of about 60 to 80 terajoules a day (TJ/d) at the field, which is operated by its joint venture partner, the Houston-based Apache Corporation. AUSTRALIAN OIL EXPORTS TO RISE THIS FISCAL YEAR: ABARE SEPT 19, 2005 CANBERRA - Soaring demand will push up Australian oil exports to A$9 billion (US$6.8 billion) this financial year, the nation's chief commodities forecaster said today. The Australian Bureau of Agricultural and Resource Economics, in its latest commodities report, said crude oil production in Australia would grow seven per cent to 26.1 gigalitres. WOODSIDE PETROLEUM SETS ASIDE EXTRA FUNDS FOR MAURITANIA PROJECT SEPT 20, 2005 MELBOURNE - Oil and gas producer Woodside Petroleum (ASX:WPL) has set aside an extra $US45 million ($A59 million) to cover unplanned contingencies at its joint-venture offshore Chinguetti oil development in Mauritania. Woodside said the project remained on schedule to produce its first oil in February 2006 and was 88 per cent complete.

AUSTRALIANS SHOULD EXPECT HIGHER PETROL PRICES: FAT PROPHETS SEPT 20, 2005 SYDNEY - Australians should brace themselves to pay more for fuel and consumer goods because oil prices will continue their upwards trajectory. In the biggest one-day price jump ever, oil surged more than $US4 overnight, to $US67.39 for light sweet crude, amid fears tropical storm Rita will turn into a hurricane and disrupt US Gulf oil supply this week. AUSTRALIAN GOV'T ABANDONS PLANNED HIKE IN FUEL EXCISE SEPT 20, 2005 CANBERRA - A planned 0.06 per cent increase in the excise on petrol has been abandoned, Treasurer Peter Costello said today. In a statement, Mr Costello said the increase - which was to cover the introduction of tougher fuel standards - would now be financed directly out of the budget. OIL REFINERS MAY FACE PROFIT MARGIN PROBE BY AUSTRALIAN GOV'T SEPT 21, 2005 MELBOURNE - The federal government may directly check the profit margins of oil refining companies if Australia's competition watchdog fails to prevent profiteering in the industry, Prime Minister John Howard said. Mr Howard said his government would be prepared to check the margins of oil refining companies itself, as the French government is now doing. AUSTRALIAN GOV'T EXCISE BACKDOWN WON'T CURB FUEL PRICE SURGE SEPT 21, 2005 CANBERRA - Motorists have been warned petrol prices could rise above A$1.50 (US$1.15) despite a federal government decision to drop plans to increase the excise on fuel. The government had planned to raise the excise by 0.06 per cent in January 2006 to fund a scheme to promote environmentally friendly fuels. AUSTRALIAN GOVT TO CONVENE BIOFUELS FORUM SEPT 22, 2005 CANBERRA - The federal government will convene a meeting of oil companies and petrol retailers to pressure them to develop industry plans to increase the supply of biofuels, such as ethanol. Nationals leader Mark Vaile announced the plan as part of the government's response to Prime Minister John Howard's biofuels task force report, which is being released in Sydney today. STATES NOT TO BLAME FOR AUSTRALIAN FUEL PRICE RISES: OPPOSITION SEPT 23, 2005 CANBERRA - The federal government is gaining much more from fuel taxes than the states, Labor treasury spokesman Wayne Swan said today. Mr Swan said claims by the federal government that the states stood to benefit from higher fuel prices, via greater taxation revenue, ignored the money that flowed to Canberra. AUSTRALIAN OIL & GAS PRODUCERS EVACUATE STAFF IN GULF OF MEXICO SEPT 23, 2005 SYDNEY - Australian oil and gas producers have evacuated staff from Texas offices and Gulf of Mexico platforms as they shut down operations in the path of Hurricane Rita. Woodside Petroleum, BHP Billiton and Petsec Energy have operations or joint ventures in the oil and gas producing Gulf of Mexico where category four Hurricane Rita is bearing down on Texas. AUSTRALIAN TREASURER LAMENTS INABILITY TO CURB PETROL PRICE JUMP SEPT 23, 2005

MELBOURNE - Treasurer Peter Costello says the federal government has no power to allay rising petrol prices which depend on the world oil price. Mr Costello said consumers understood that petrol price rises were based on increasing world oil prices. AUSTRALIAN PM DEFENDS ETHANOL-BLENDED PETROL PUSH SEPT 23, 2005 CANBERRA - Prime Minister John Howard has defended his plan to allow ethanol-blended petrol to be sold without a label, as car makers warn of a possible consumer backlash to the move. After further vehicle testing, the government will allow petrol with a five per cent blend of ethanol (E5) to be sold without a label to boost uptake of cleaner, renewable fuels. OIL PRICE SURGE WON'T INFLATE AUSTRALIAN GOVT COFFERS: TREASURER SEPT 23, 2005 MELBOURNE - Treasurer Peter Costello says the government is not benefiting from the rising cost of petrol. Mr Costello said the Commonwealth excise on a litre of petrol is set at 38 cents and remains unchanged whatever the total cost might be for the consumer. AUSTRALIAN GOVT URGED TO MANDATE THE USE OF ETHANOL SEPT 23, 2005 CANBERRA - Australia's biggest ethanol producer has stepped up pressure on the government to mandate a 10 per cent blend of the additive in the nation's fuel supply. Manildra Group chairman Dick Honan said the government's current target for motorists to use 350 million litres of ethanol by 2010 was too low and left Australia lagging behind Europe and America in the use of cleaner, renewable fuels. FALLING PETROL PRICES EASE PRESSURE ON AUSTRALIAN MOTORISTS SEPT 26, 2005 CANBERRA - The national competition watchdog says motorists are benefiting at the bowser from falling global oil prices. The Australian Competition and Consumer Commission (ACCC) says refinery profit margins had halved in recent weeks. BHP, WOODSIDE UNSURE OF OIL INFRA DAMAGE FROM HURRICANE RITA SEPT 26, 2005 MELBOURNE - Australian oil and gas producers say it is too early to tell what damage may have been caused to oil production facilities in the Gulf of Mexico by Hurricane Rita. A spokeswoman for resources giant BHP Billiton Ltd (ASX:BHP) said damage assessments would wait until after the storm had passed, and the company's office in Houston, Texas, was closed until Monday. AUSTRALIANS NEED HELP WITH PETROL COSTS: OPPOSITION SEPT 26, 2005 CANBERRA - Labor is calling on the government to use some of its bumper A $13.6 billion (US$10.3 billion) surplus to give Australians income tax cuts to cope with the rising price of petrol. Strong company profits helped deliver the government a 2004/05 surplus of $13.6 billion, much better than the expected $9.2 billion. BHP REPORTS MAJOR DAMAGE TO GULF OF MEXICO OIL, GAS PLATFORM SEPT 27, 2005 MELBOURNE - BHP Billiton's (ASX:BHP) multi-million dollar Typhoon oil and gas platform has been ripped from its moorings in the Gulf of Mexico and severely damaged by Hurricane Rita. The platform, which can produce 40,000 barrels of oil and 60 million cubic feet of gas a day, was found floating in the Gulf yesterday miles from its usual position.

AUSTRALIA'S NEW HOPE CORP REPORTS HIGHER YR NET PROFIT SEPT 27, 2005 MELBOURNE - Queensland coal miner New Hope Corporation Ltd (ASX:NHC) says spot coal prices are likely to fall but its position remains strong as contract prices for thermal coal are set to remain firm. New Hope today posted a full year net profit of $A463.3 million ($US352.62 million), up from $A59.4 million ($US45.21 million) in the previous year. AUSTRALIA'S ACCC TO PROVIDE INFO ON FACTORS AFFECTING OIL PRICES SEPT 27, 2005 CANBERRA - Australia's consumer watchdog chief has vowed to publish regular information on factors affecting petrol prices to cut through what he calls a fog of misinformation. Australian Competition and Consumer Commission (ACCC) head Graeme Samuel at the same time urged hard-hit motorists to recognise that Australia was better off than most countries in the current high world price surge. AUSTRALIAN PM SEES NO RELIEF FOR MOTORISTS SEPT 28, 2005 SYDNEY - Ethanol will not magically solve the problem of soaring petrol prices, Prime Minister John Howard says. Mr Howard today met with representatives of four major oil companies in Sydney to discuss the government's ethanol target, but warned there was no relief in sight from high fuel costs. AUSTRALIA'S SANTOS CONFIRMS DISCOVERY OF NEW GAS FIELD SEPT 29, 2005 SYDNEY - Energy company Santos Ltd (ASX:STO) has confirmed the discovery of a new gas field, located offshore of the Northern Territory. Drilling of the Caldita 1 exploration well encountered a significant hydrocarbon column in a high quality reservoir interval, Santos said. AUSTRALIAN CONSUMER WATCHDOG RELEASES PETROL PRICE HIKE SNAPSHOT SEPT 30, 2005 CANBERRA - The consumer watchdog has released its first monthly snapshot of petrol prices to help explain to drivers why they are feeling the pinch at the bowser. The Australian Competition and Consumer Commission (ACCC) snapshot for September shows petrol rose from an average A$1.28 (97 US cents) a litre at the start of the month, spiked to $1.31 and then settled back to $1.25 yesterday. CSR SAYS AUSTRALIAN DEMAND FOR ETHANOL FUEL REMAINS SMALL SEPT 30, 2005 SYDNEY - CSR Ltd (ASX:CSR) says it doesn't expect to make any major new investments in ethanol fuel production in the near future, despite a key agreement by the oil industry to boost the usage of bio-fuels in Australia. The sugar, aluminium and building products company produces about 60 million litres of ethanol per year, but most is used in industrial applications. ANZON AUSTRALIA, BEACH REPORT OIL FLOW IN BASS STRAIT FIELD SEPT 30, 2005 MELBOURNE - Anzon Australia Ltd (ASX:AZA) and Beach Petroleum Ltd (ASX:BPT) have reported strong flow rates from the first stage of their $A260 million ($US197.89 million) Basker Manta Gammy oil field development in the Bass Strait. The companies said oil had flowed at a rate of 4,288 barrels of oil per day (bopd) and 5,060 bopd from the two intervals at its Basker-2 development well in the Gippsland Basin, off the Victorian coast.

SHARES IN AUSTRALIA'S SANTOS SURGE AFTER GAS FIND SEPT 30, 2005 MELBOURNE - Shares in Santos Ltd (ASX:STO) shot to fresh heights Thursday after the oil and gas producer announced the discovery of a new gas field off the coast of the Northern Territory. Santos said drilling at its Caldita 1 exploration well in 137 metres of water, 265 kilometres north of Darwin had encountered a "significant hydrocarbon column in a high quality reservoir interval". AUSTRALIA'S SOUL PATTINSON SAYS COAL TO SUPPORT FUTURE EARNINGS SEPT 30, 2005 SYDNEY - Investment house Washington H Soul Pattinson and Co Ltd (ASX:SOL) says booming coal prices will likely underpin continued solid earnings growth in 2005/06. Soul Pattinson - which invests in a wide range of industries from media to mining - reported a record $A421.4 million ($US320.73 million) net profit for the year ended 31 July, 2005 almost three times the $A155.9 million ($US118.66 million) profit in the previous year. PETROL MAY NEVER FALL BELOW A$1 A LITRE: AUSTRALIAN PM SEPT 26, 2005 SYDNEY - Petrol may never fall below $A1 ($US0.76) a litre again, Prime Minister John Howard says. "I think the whole community will have to accept, regrettably and unfortunately, that because the demand for fuel around the world has risen ahead of supply, petrol is going to be dearer than what it was, say, a year ago, and is likely to remain like that for some time," Mr Howard said today. AUSTRALIAN PM HOPES OIL FIRMS WILL HELP MEET BIOFUELS TARGET SEPT 28, 2005 CANBERRA - Prime Minister John Howard says he hopes a meeting with oil companies today will result in a renewed commitment to helping the government meet its ethanol target. Mr Howard's biofuels task force report, released last week, warns market resistance will probably see the government fail to meet its already modest target of 350 million litres of ethanol in the nation's fuel supply by 2010. SENATOR URGES AUSTRALIAN GOVT TO REDUCE PETROL EXCISE OCT 3, 2005 CANBERRA - The federal government should use its bumper budget surplus to cut 10 cents a litre from the fuel tax, Family First senator Steve Fielding says. The surplus for 2004-05 has come in at A $13.6 billion (US$10.32 billion), $4.4 billion higher than expected. AUSTRALIA'S SANTOS LADEN WITH GROWTH PROSPECTS: MD OCT 3, 2005 NEW YORK - Oil and gas producer Santos Ltd (ASX:STO) says it has a "full bucket" of growth opportunities in 2006 and beyond. Santos managing director John Ellice-Flint said the group had a number of future growth options beyond 2006. PREMIER SEES STRONG, LONG-TERM DEMAND FOR QUEENSLAND COAL OCT 4, 2005 ROCKHAMPTON - Queensland Premier Peter Beattie is supremely confident about the longterm demand for his state's coal even if China and India cut back their orders. Even nuclear power would not threaten the future of the state's coal industry, Mr Beattie said today as he announced that a proposed central Queensland coal terminal had been declared a "significant" project.

AUSTRALIAN GOV'T CALLED TO SLICE US$2.9 BLN FROM PETROL COSTS OCT 4, 2005 CANBERRA - The federal government is facing fresh calls to dip into its massive budget surplus and slice 10 cents a litre off soaring petrol prices. Family First senator Steve Fielding says it would only take A$3.8 billion (US$2.89 billion) from the government's A $13.6 billion surplus to pay for a year-long, 10-cent cut in commonwealth excise on petrol. BHP OPTS OUT OF USING GAS FROM PNG-AUSTRALIA PIPELINE OCT 7, 2005 MELBOURNE - The A$3.5 billion (US$2.65 billion) gas pipeline between Papua New Guinea and Australia suffered a setback with BHP Billiton (ASX:BHP) opting not to use the pipeline's gas for its Olympic Dam project. The mining giant had a conditional agreement to take between 12 and 30 petajoules per year (PJA) from the pipeline to develop a gas-fired power station at the Olympic Dam copper and uranium mine, which it acquired with its takeover of WMC Resources. AUSTRALIA'S OIL SEARCH BUYS PERMITS IN EGYPT OCT 7, 2005 PERTH - Oil and gas producer Oil Search Ltd (ASX:OSH) has acquired exploration and development permits in Egypt that could add materially to its production levels. Oil Search did not disclose the cost of the purchase but said it paid Geopetrol SA of France a "modest consideration reflecting some of Geopetrol's past costs". AUSTRALIA'S NOVERA ENERGY APPOINTS UK CHAIRMAN OCT 7, 2005 PERTH - Renewable energy producer Novera Energy (ASX:NVE) has reshuffled its board, including appointing a new chairman and chief executive officer, to reflect its migration to the United Kingdom. The current UK-based deputy chairman John Brown has been appointed chairman, succeeding Dr Don Stammer who will resign from the board. AUSTRALIAN OIL TO LIST ON ASX TOMORROW OCT 10, 2005 SYDNEY - The Australian Oil Company (ASX:AOC) will list on the ASX tomorrow after raising A$6 million (US$4.57 million) through its initial public offer. The oil and gas exploration company offered 30 million ordinary new shares at 20 cents, with one free attaching new option for each share. AUSTRALIA'S PETSEC DELAYS RESUMING PRODUCTION AT GULF RIGS OCT 11, 2005 PERTH - Petsec Energy Ltd (ASX:PSA) says it won't resume production at its Gulf of Mexico gas operations for at least two months as pipelines damaged by Hurricane Rita last month are still undergoing repairs. Petsec said repairs at its own operations were now complete with the Vermilion 258 and West Cameron 343/352 platforms receiving only minor damage. US$72.6 MLN WIND FARM TO BE BUILT IN AUSTRALIAN STATE OF NSW OCT 11, 2005 SYDNEY - A A$96 million (US $72.6 million) wind farm will be built in the NSW southern tablelands to boost the state's energy supply. The government has given the green light to the 25-tower wind farm, which will be built at Woodlawn, south of Goulburn, NSW Premier Morris Iemma says. W.AUSTRALIAN DELEGATION CALLS ON TAMIL NADU CHIEF MINISTER OCT 11, 2005

CHENNAI - Western Australia, rich in mineral resources like LNG, could work with Tamil Nadu in developing an LNG terminal at suburban Ennore port for supply of gas for power generation and industrial use, Tamil Nadu Chief Minister J Jayalalithaa said on Monday. The two sides could also work together in the area of tapping underground lignite to produce gas, she told a nine-member high level team, headed by Western Australian Premier Geoff Gallop, which called on her at the Secretariat here. SK E&P. REOPENING REFINERY WON'T EASE AUSTRALIAN PETROL PRICES: MOBIL OCT 12, 2005 ADELAIDE - Mobil says reopening its mothballed Port Stanvac oil refinery will do nothing to ease soaring petrol prices. Even if a decision was made tomorrow to reopen the southern Adelaide refinery, it would take years to resume operation and the amount of fuel produced would not be enough to impact on petrol prices, Mobil spokesman Alan Bailey said. AUSTRALIAN OIL COMPANY LISTS ON ASX AT A DISCOUNT OCT 12, 2005 SYDNEY - Australian Oil Company Ltd (AOC) (ASX:AOC) has listed on the Australian Stock Exchange at a discount, with its shares dropping ten per cent on opening. The company's initial public offer was for 30 million shares at 20 cents each, raising $A6 million ($US4.55 million). AUSTRALIA FORECAST TO OVERSHOOT BIOFUELS FORECAST OCT 13, 2005 CANBERRA - Australia should reach, and probably exceed, its biofuels target of 350 million litres by 2010, Industry Minister Ian Macfarlane says. After meeting ethanol and oil industry stakeholders in Canberra today, Mr Macfarlane said he was confident the 350 million litre target would be met. AUSTRALIAN GAS DEMAND SOON TO OUTSTRIP SUPPLY: REPORT OCT 13, 2005 CANBERRA - Most of Australia's long-term energy needs will be met by coal and oil but natural gas demand will soon outstrip supply, a new report says. The Australian Bureau of Agricultural and Resource Economics (ABARE) today released its outlook for the nation's energy consumption and production for the next 25 years. BHP EXPECTS LOWER OIL/GAS OUTPUT THIS FINANCIAL YEAR OCT 13, 2005 MELBOURNE - Resources giant BHP Billiton Ltd (ASX:BHP) expects its oil and gas production for this financial year to be up to 10 million barrels lower than previous market guidance, in large part due to damage to production in the Gulf of Mexico caused by the recent hurricanes. "For the current financial year, BHP Billiton's net oil and gas production is likely to be as much as 10 million boe (barrels of oil equivalent) lower than previous guidance," BHP said in a statement to the Australian Stock Exchange. FUEL COST THE KEY FACTOR IN THE YEAR AHEAD: QANTAS OCT 13, 2005 SYDNEY - Qantas (ASX:QAN) today said fuel was the key factor in the year ahead for the airline. Qantas chairman Margaret Jackson said fuel was a major issue for the airline and would be "the key factor in the year ahead". ANALYSTS REVISE DOWN EARNINGS FORECAST FOR BHP BILLITON OCT 14, 2005

MELBOURNE - Analysts have revised down earnings forecasts for BHP Billiton Ltd (ASX:BHP) after the company cut oil and gas production forecasts in the wake of Hurricane Katrina. BHP Billiton's Typhoon rig, a 50/50 joint venture with Chevron, was torn from its moorings in the Gulf of Mexico by Katrina, flipped upside down and found days later miles from its normal position having suffered extensive damage. MALAYSIA'S UMW TO ACQUIRE 60 PCT STAKE IN AUSTRALIAN CO OCT 14, 2005 KUALA LUMPUR - UMW Holdings Berhad said its wholly-owned subsidiary, UMW Petropipe (L) Ltd, has signed a Memorandum of Understanding (MOU) to acquire a 60 per cent stake in PFP Holdings Pty Ltd from Montague Holdings Int Pty Ltd. UMW's statement to Bursa Malaysia on Oct 13 did not provide financial details of the MOU. GAIL INDIA EXPLORES SOURCING LNG FROM AUSTRALIA, MALAYASIA OCT 17, 2005 KOCHI - GAIL (BSE:532155) was "actively exploring" sourcing LNG from five countries, including Australia, Abu Dhabi, Oman and Malaysia for its Dahej plant and proposed Kochi terminal. "We are looking at multiple sources. The situation is dynamic and we have assured Chief Minister Oommen Chandy that by September 2009 the Kochi LNG terminal will be completed and re-gasified LNG would flow from it," GAIL chairman and managing director Prashanto Banerjee told reporters here. AUSTRALIAN GAS LIGHT CO BENEFITS FROM EXTENDED WINTER OCT 18, 2005 SYDNEY - Favourable weather has led to a better-than-expected first quarter for energy retailer Australian Gas Light Company Ltd (ASX:AGL) in 2005/06. Managing director Greg Martin today said AGL had benefited from the extension of the winter heating season into September. AUSTRALIAN GAS LIGHT CO. SAYS PNG GAS LINE DECISION LIKELY IN 06 OCT 18, 2005 SYDNEY - Energy retailer The Australian Gas Light Company Ltd (ASX:AGL) today forecast that a decision to build a natural gas pipeline from Papua New Guinea to Australia is due in mid-2006. AGL chairman Mark Johnson said work on the pipeline had progressed well. AUSTRALIA UNDERMINING WORLD'S ANTI-NUCLEAR EFFORTS: ACF OCT 21, 2005 CANBERRA - Federal government moves to expand uranium exports are undermining global efforts to stop nuclear proliferation, the Australian Conservation Foundation (ACF) says. ACF spokesman David Noonan said all Australian uranium inevitably becomes nuclear waste and potentially fuels nuclear weapons. AUSTRALIAN PIPELINE TRUST SAYS PROFIT OUTLOOK ON TRACK MELBOURNE - Australian Pipeline Trust (ASX:APA) says volumes on its key gas pipeline are increasing and it is on track to maintain its current level of profitability. APA chairman George Bennett said the company's primary gas haulage contract on its key asset, the Moomba to Sydney Pipeline (MSP), would end in December and the company was negotiating new contracts with existing and new users of the pipeline. WIND FARM IN AUSTRALIA'S TASMANIA GRANTED FINAL APPROVAL OCT 21, 2005 HOBART - A A$230 million (US$173 million) wind farm in Tasmania's north-east has been given final environmental approvals. The Musselroe Wind Farm will be the state's largest

wind farm, supplying power to 50,000 homes and reducing greenhouse emissions by around 460,000 tonnes per year. AUSTRALIAN PM SAYS HIGH PETROL PRICES NOT YET INFLATION CONCERN OCT 21, 2005 CANBERRA - Prime Minister John Howard says soaring petrol prices are yet to spark any major inflation concerns, despite being the biggest generic threat to the economy. A new report from economic consultancy ACIL Tasman has found that more than half of all Australian companies have lifted their prices because of high petrol costs. AUSTRALIAN TREASURER WARNS FIRMS EYEING PROFITS FROM OIL HIKE OCT 26, 2005 MELBOURNE - Treasurer Peter Costello has warned Australian companies not to use rising petrol prices as an excuse to jack up prices on their own products. The consumer price index rose of 0.9 per cent for the September quarter and a three per cent increase for the year, according to the Australian Bureau of Statistics. AUSTRALIA'S SANTOS ON TRACK TO MEET PRODUCTION TARGET OCT 26, 2005 PERTH - Oil and gas producer Santos Ltd (ASX:STO) says it is on track to fulfill its upgraded production target for 2005 and is expecting a further 10 per cent increase in output in 2006. The company's operations generated revenue of A$764 million (US$581.48 million) in the September quarter, up 82 per cent on 2004s September quarter result. INDIA LOOKING AT AUSTRALIA AND QATAR FOR LNG SUPPLY OCT 27, 2005 NEW DELHI - Energy-hungry India has begun to look at alternative sources of natural gas as it anticipates delays in supply of gas from Iran which faces sanctions for its nuclear programme. "We are looking at Australia and Qatar to supplement the (LNG) deal already signed with Iran and gas imports through the proposed pipeline passing through Pakistan," a top petroleum ministry official said. BABCOCK & BROWN WIND PARTNERS LISTS ON ASX AT PREMIUM OCT 28, 2005 PERTH - Babcock & Brown's wind power spin-off listed on the Australian Stock Exchange at premium after raising $A396 million ($US301.4 million) in the initial public offer (IPO). Shares in the stapled security of Babcock & Brown Wind Partners Group (BBWP) opened up 20 cents at $1.60 at 1200 AEST. ENERGY RESOURCES OF AUSTRALIA BOOSTS URANIUM MINE LIFE OCT 28, 2005 MELBOURNE - Uranium miner Energy Resources of Australia Ltd (ERA) (ASX:ERA) has extended the life of its Ranger mine in the Northern Territory by three years after boosting its reserves by 14 per cent. ERA has increased its reserves at Ranger by 6,285 tonnes by reducing the grade at which it considers it is economic to process ore. AUSTRALIA'S AGL TO BUILD POWER PLANT IN TOWNSVILLE OCT 28, 2005 BRISBANE - Leading energy supplier and distributor Australian Gas Light Company (AGL) (ASX:AGL) plans to develop a A$350 million (US$266.38 million) gas-fired power station in Townsville in 2009. Queensland Premier Peter Beattie Thursday said the station would shore up north Queensland's energy needs into the future.

AUSTRALIAN PETROL PRICES COULD RISE FURTHER: TREASURER OCT 28, 2005 CANBERRA - Petrol prices could continue to rise before the end of the year, Treasurer Peter Costello says. He said petrol prices had averaged A $1.19 (US$0.91) a litre in the September quarter in Australia's capital cities but that price could continue to soar in the December quarter. CHEVRON AUSTRALIA SIGNS US$6.01 BLN DEAL WITH TOKYO GAS OCT 28, 2005 PERTH - Chevron Australia has signed an A$8 billion (US$6.09 billion) deal to supply gas to Tokyo Gas from the massive Gorgon project and is now considering selling part of the project to the Japanese company. The two companies have signed a heads of agreement for the sale of 1.2 million tonnes of liquefied natural gas (LNG) a year from the Western Australian project over a period of 25 years. VICTORIA'S TOURISM UNSCATHED BY SOARING PETROL PRICES OCT 31, 2005 MELBOURNE - Record-high petrol prices have not harmed Victoria's tourism industry, despite many businesses complaining that pump prices had increased costs and cut profits. New figures from the industry's peak body, the Victorian Tourism Industry Council (VTIC), indicate a moderate improvement in trading conditions over the past 12 months. FITCH PLACES AUSTRALIAN GAS LIGHT CO ON RATING WATCH NEGATIVE OCT 31, 2005 SYDNEY - Fitch Ratings today placed its A/F1 senior unsecured and short-term ratings on The Australian Gas Light Co Ltd (ASX:AGL) on rating watch negative. The move came after AGL said it would acquire Southern Hydro Ltd (SHL) for A$1.425 billion (US$1.08 billion). AUSTRALIA'S BIGGEST ENERGY RETAILER TO DEMERGE INTO TWO COS OCT 31, 2005 SYDNEY - Australia's biggest energy retailer Australian Gas Light Co Ltd (ASX:AGL) will demerge into two companies, splitting its retail and merchant energy assets from its infrastructure assets. The announcement today came as AGL boosted its power generation stable with the A$1.45 billion (US$1.1 billion) purchase of Meridian Energy Ltd's Australian hydro and wind electricity portfolio, Southern Hydro. QUEENSLAND ENCOURAGES GEOTHERMAL EXPLORATION NOV 1, 2005 BRISBANE - The Queensland government is opening up more than 6,000 square kilometres of the state to geothermal and petroleum exploration. Natural Resources and Mines Minister Henry Palaszczak Monday said the state government was taking tenders for petroleum exploration in four sites covering 2,500 square kilometres in central and southern Queensland. AUSTRALIAN GAS LIGHT CO UPBEAT PNG PIPELINE PJCT WILL GO AHEAD NOV 1, 2005 SYDNEY - Australia's biggest energy retailer The Australian Gas Light Co Ltd (ASX:AGL) is confident the $US3 billion ( $A3.94 billion) Papua New Guinea gas pipeline project will go ahead to meet a looming gas supply shortfall. As AGL announced a demerger, it reiterated its confidence in a long-delayed plan to build a 4,000km pipeline linking PNG gas with Australian markets via a pipeline down the Queensland coast to Gladstone.

AUSTRALIAN GOVT APPROVES 7 NEW PETROLEUM EXPLORATION PERMITS NOV 2, 2005 CANBERRA - Seven new petroleum exploration permits for the next six years were today approved by the federal government. Industry Minister Ian Macfarlane said up to A$180 million (US $133 million) would be invested in exploration by a range of companies that have been granted the permits. AUSTRALIA'S SANTOS WINS EXPLORATION PERMIT IN THE TIMOR SEA NOV 2, 2005 MELBOURNE - Oil and gas producer Santos Ltd (ASX:STO) has won an exploration permit in the Timor Sea next door to the new gas field it discovered off the coast of the Northern Territory earlier this year. Santos announced in September that drilling at its Caldita 1 exploration well had uncovered the new field, which lies in 137 metres of water, 265 kilometres north of Darwin. AUSTRALIA'S PETSEC RESUMES PRODUCTION IN GULF OF MEXICO NOV 3, 2005 MELBOURNE - Petsec Energy (ASX:PSA) has begun production in the Gulf of Mexico for the first time since Hurricane Rita damaged gas pipelines and platforms in late September. The oil and gas junior's two platforms in the Gulf were not seriously damaged by the storm but some of the downstream gas pipelines they fed into were. AUSTRALIA SHOULD OPEN UP ITS URANIUM INDUSTRY: SUMMIT RESOURCES NOV 3, 2005 CANBERRA - Australia needs to open up its uranium industry on environmental and economic grounds, a parliamentary inquiry has heard. Summit Resources (ASX:SMM) managing director Alan Eggers told the standing committee on industry and resources that exporting uranium to developing countries for power production would help ease the impact of global warming. BHP BILLITON SEES GROWING GLOBAL DEMAND FOR NUCLEAR POWER NOV 3, 2005 CANBERRA - BHP Billiton (ASX:BHP) expects growing global demand for nuclear power will ensure viability for a proposed A$5 billion (US$3.72 billion) upgrade at its Olympic Dam copper-uranium mine. The project would see uranium production ramped up four-fold at the world's biggest uranium deposit, in South Australia, from 2013. COAL INDIA EYES MINES IN AFRICA, AUSTRALIA, INDONESIA NOV 4, 2005 NEW DELHI - World's largest coal producer, Coal India Ltd (CIL) is looking at acquisition of mines in Africa, Australia and Indonesia to cut import of high grade, low ash content coal into the country. Coal Videsh Ltd, CIL's 100 per cent subsidiary, wants to acquire stakes in either running coal mines or a coal block in South Africa, Australia, Indonesia, Zimbawbe and Mozambique capable of producing metullargical coal (used for manufacturing steel) and low ash, non-coking coal (used for producing power), CIL chairman and managing director Shashi Kumar told reporters here. AUSTRALIA'S EXCEL COAL SAYS PROFIT MAY BE HIT BY PROJECT DELAY NOV 4, 2005 SYDNEY - Miner Excel Coal Ltd (ASX:EXL) says its fiscal 2006 profit guidance may be impacted by a delay in commissioning its Millennium Mine. Excel previously forecast a 2005/06 net profit of $A150 million ($US111.28 million).

AUSTRALIA'S ENVESTRA SAYS GAS INDUSTRY STILL WAITING FOR REFORM NOV 4, 2005 MELBOURNE - Australia's largest distributor of natural gas, Envestra Ltd (ASX:ENV), has hit out at federal and state governments over the slow pace of reform of gas industry regulation. Envestra chairman John Allpass said the industry was still waiting for the Ministerial Council on Energy (MCE) to respond to the Productivity Commission's review of the Gas Access Code released in August 2004. SINGAPORE POWER LAUNCHES US$1.17 BLN IPO OF AUSTRALIAN ASSETS NOV 7, 2005 MELBOURNE - Singapore Power plans to raise A$1.6 billion (US$1.17 billion) through the initial public offering of almost half the stake in its Australian gas and electricity distribution business, SP AusNet. Under the offer, due to open on November 15, Australian investors will be able to subscribe for shares in SP AusNet at A$1.57 a share. OIL SHOCK ON INFLATION LESS THAN BEFORE: AUST CENTRAL BANK NOV 7, 2005 SYDNEY - The Reserve Bank of Australia (RBA) says sharp rises in petrol prices should represent less of an economic shock to inflation than previous global events. In its quarterly statement on monetary policy released today, the central bank said increases in petrol prices had a direct impact on the consumer price index in the September quarter. NEW ELECTRICITY TARIFFS TO APPLY IN QUEENSLAND FROM NOV 14 NOV 7, 2005 BRISBANE - New electricity tariffs designed to give Queenslanders a "simpler and fairer system" will take effect within two weeks, the state government says. A flat rate will replace the present "declining block" tariff system, which rewards consumers with lower prices if they use more power. ADELAIDE ENERGY SECURES MAJOR GAS EXPLORATION CONTRACT NOV 8, 2005 MELBOURNE - The South Australian government has awarded the rights to a major gas exploration block in the Cooper Basin to the unlisted explorer Adelaide Energy Pty Ltd. The 1,600 quare kilometre block, known as CO2005-A, is the last major block to be released under a state government initiative launched in 1998 to attract explorers to the South Australian section of the Cooper Basin. LOWER OIL PRICES EASE INFLATION CONCERNS: AUSTRALIAN TREASURER NOV 9, 2005 CANBERRA - Petrol prices were unlikely to push up inflation in the December quarter if they remained around their current level, Treasurer Peter Costello said today. Commenting on the latest Westpac-Melbourne Institute consumer sentiment index, which improved in November, Mr Costello said consumers were probably more upbeat because oil prices had come back slightly. HIGH OIL PRICES TO WEIGH ON AUSTRALIAN FARMERS NOV 9, 2005 CANBERRA - Soaring fuel prices are set to take the gloss off a drought-beating grain harvest, eventually stripping hundreds of millions of dollars from Australian farmers' incomes. After years of drought and depleted yields, this season's winter crop is expected to be the second biggest since 2001.

INDIA'S INFOTECH TO PROVIDE DATA SERVICES FOR AUSTRALIA'S AUSNET NOV 10, 2005 MUMBAI - Infotech Enterprises, a geospatial and engineering design service provider, on Thursday said it has been selected by Australian SP AusNet to provide geospatial data maintenance services for their gas and electricity network assets under a two-year contract. Infotech operates the data maintenance centre for SP AusNet from its facilities in Melbourne, Australia and has been meeting the performance criteria set down by SP AusNet in the initial months of project execution, it informed the National Stock Exchange. SHARES IN PO VALLEY ENERGY SURGE ON ASX AS ITALIAN OPS ADVANCE NOV 14, 2005 MELBOURNE - Shares in Po Valley Energy Ltd (ASX:PVE) shot up today after the junior gas explorer said a A$8.75 million (US$6.4 million) cash injection from a US investment fund would speed up its Italian operations. Po Valley said it was stepping up exploration and development at its four sites in northern Italy after the placement of 12.5 million ordinary shares with US fund manager Harbert Management Corporation at 70 cents a share, giving the fund a 15 per cent stake in the company. AUSTRALIA'S TRANSFIELD WINS US$512 MLN CONTRACT FROM WOODSIDE NOV 14, 2005 SYDNEY - Industrial services company Transfield Services Ltd (ASX:TSE) has been awarded a three-year, A$700 million (US$511.91 million) engineering and maintenance services contract with oil producer Woodside Petroleum Ltd (ASX:WPL). Transfield and joint venture partner Worley Parsons today announced that they had won the contract for engineering, project management, procurement, construction, maintenance and shutdown services at Woodside's Australian-owned and operated assets. AUSTRALIA'S CENTENNIAL COAL PRIMED FOR STRONG NET PROFIT NOV 15, 2005 SYDNEY - Centennial Coal Company Ltd (ASX:CEY) says it is expecting a significant rise in net profit this financial year despite forecasting a substantially lower first half result. The mining firm has had production issues at its Newstan mine caused by intersecting fault lines, which will see production reduced to around 2.4 million tonnes of raw coal this year. AUSTRALIAN GAS LIGHT CO. TO BUILD GAS-FIRED POWER PLANT IN NSW NOV 15, 2005 PERTH - The Australian Gas Light Company (ASX:AGL) says it will construct a gas-fired power station in NSW, which will be partly powered by gas from a new joint venture with Sydney Gas Ltd (ASX:SGL). AGL has paid A$42.25 million (US$30.7 million) to acquire a half share in Sydney Gas' leases and exploration licences, including the Camden Gas project. AUSTRALIA'S LOY YANG POWER REFINANCES DEBT FACILITIES NOV 15, 2005 MELBOURNE - Loy Yang Power has taken advantage of a competitive corporate finance environment to win savings by refinancing its A$2.1 billion (US$1.54 billion) debt facilities. The new debt package sees the company cut the number of institutions it borrows from down to 10 from 38 and chief executive Ian Nethercote says it will result in significant savings. AUSTRALIA'S WOODSIDE PETROLEUM UPGRADES OUTPUT FORECAST NOV 16, 2005 MELBOURNE - Oil and gas producer Woodside Petroleum Ltd (ASX:WPL) has boosted its production forecast for the year and says its string of new projects are set to boost cash

flow. Woodside chief executive Don Voelte said the company now expected to produce at least 59 million barrels of oil equivalent (mmboe) for calendar 2005, up from the previous forecast of 58 mmboe. AUSTRALIA PREDICTS RECORD NUMBER OF MINING PROJECTS NOV 17, 2005 CANBERRA - A record number of mineral and energy projects should pave the way for substantial exports in coming years, a new report has found. Almost $A30 billion ( $US21.92 billion) worth of development is at an advanced stage, the Australian Bureau of Agricultural and Resource Economics said in its latest major development projects report. QUEENSLAND GAS COMPANY LTD SEES CONTINUED GROWTH NOV 21, 2005 PERTH - Coal bed methane (CBM) company Queensland Gas Company Ltd (QGC) (ASX:QGC) says an increasing demand for clean energy will underpin continued growth of the company. Chairman Robert Bryan said growing concern about global warming was encouraging the use of clean energy for both commercial uses and for electricity generation more generally. CHEVRON AUSTRALIA SIGNS GORGON LNG DEAL WITH JAPAN'S CHUBU ELECTRIC NOV 22, 2005 SYDNEY - Chevron Australia has signed a deal to supply gas to Japanese power company Chubu Electric Co Inc from the massive Gorgon project. The two companies have signed a heads of agreement for the sale of 1.5 million tonnes of liquefied natural gas (LNG) per annum from the West Australian project over a period of 25 years, beginning in 2010. AUSTRALIAN URANIUM EXPLORER LISTS AT PAR ON ASX NOV 22, 2005 MELBOURNE - Uranium Exploration Australia Ltd (UXA) (ASX:UXA) is to begin exploration in South Australia after its shares listed in line with the issue price on the Australian Stock Exchange today. UXA shares opened at 1100 AEDT at 20 Australian cents, on par with the issue price, but had fallen back five cents to 15 cents by 1221 AEDT. AUSTRALIAN ELECTRICITY UTILITIES LOOKING TO PROVIDE BROADBAND NOV 23, 2005 SYDNEY - A massive telecommunications project run by a consortium of Australian electricity utilities is targeting a new way of delivering broadband services to consumers in regional Australia. Eleven of the country's electricity utilities have joined together to form a group known as UtiliTel, which is investigating ways to create added value to their infrastructure. BHP BILLITON APPROVES HUGE NEW OILFIELD DEVELOPMENT NOV 24, 2005 MELBOURNE - BHP Billiton (ASX:BHP) has approved its share of the development of the $A800 million ($US589.36 million) Stybarrow oil field off the north west Australian coast. The mining giant today said it had approved its 50 per cent share of the $US600 million ( $A814.44 million) oil field, which is located about 65 kilometres from Exmouth in Western Australia. CHINA'S COSL SIGNS DRILLING CONTRACTS IN MYANMAR, AUSTRALIA NOV 28, 2005 BEIJING - China Oilfield Services Limited (COSL), a subsidiary of China National Offshore Oil Corporation (CNOOC), has secured two drilling contracts in Myanmar and Australia, said

sources with CNOOC, China's largest offshore oil producer Friday. The parties entering into the contracts with COSL are Daewoo International Corporation and Australia-based Woodside Energy Ltd. COSL's semi-submersibles NH II and NH VI won the biddings and will commence their drilling services respectively in the respective seas, said the sources. ODYSSEY ENERGY LISTS AT PREMIUM ON AUSTRALIAN BOURSE NOV 30, 2005 MELBOURNE - Junior gas explorer Odyssey Energy Ltd (ASX:ODY) today listed on the Australian Stock Exchange, with its shares trading at a premium to their issue price. Odyssey shares first traded at 1300 AEDT at 28 cents, eight cents or 40 per cent higher than the issue price. AUSTRALIA'S BASS STRAIT OIL COMPANY TARGETS HIGHER SHARE PRICE NOV 30, 2005 MELBOURNE - Oil explorer the Bass Strait Oil Company Ltd (ASX:BAS) says it is hopeful it can turn around its sagging share price as it pushes on with its exploration programs. The company's shares have twice been sold off this year after it announced that its drilling programs in the Gippsland Basin off the coast of Victoria had failed to turn up any oil. AUSTRALIAN FINANCIAL MAJOR ADOPTS GREEN FUEL DEC 2, 2005 BRISBANE - Queensland's largest company, Suncorp-Metway Ltd (ASX:SUN), has become one of Australia's first major institutions to adopt ethanol for its corporate fleet. Suncorp chief executive officer John Mulcahy said the finance giant's ethanol policy from today required its 600 vehicles to use E10, an ethanol-blended fuel, where possible. AUSTRALIA'S PRE-CHRISTMAS SPLURGE HIT BY TRIPLE WHAMMY: ANALYST DEC 2, 2005 SYDNEY - The traditional pre-Christmas spending splurge is being hit by a triple whammy of high petrol prices, the end of the housing boom and uncertainty over interest rates, an industry analyst says. But IBISWorld says there could be a glimmer of hope for retailers facing one of their most difficult trading periods in recent times, predicting fuel prices may ease by Christmas. HARDMAN MAY BECOME TAKEOVER TARGET IF WOODSIDE EXITS DEC 2, 2005 PERTH - Woodside Petroleum Ltd's (ASX:WPL) possible exit from the share registry of Hardman Resources Ltd (ASX:HDR) will leave it vulnerable to takeovers. Hardman shares were placed in a trading halt Thursday as Woodside considered whether to sell its 10.24 per cent stake in the oil and gas explorer. TIMBER-FUELLED POWER STATION TO POWER 45,000 W. AUSTRALIAN HOMES DEC 2, 2005 PERTH - A timber-fuelled power station will cut greenhouse gas emissions and offer power to 45,000 West Australian homes, its developers say. Two WA companies, Perth BioEnergy Holdings Pty Ltd (PBH) and Perpetual's Diversified Infrastructure Fund (PDIF), announced Thursday it had signed an agreement to build a 45,000 megawatt power station at Neerabup, north of Perth. WOODSIDE PETROLEUM WELCOMES TIMOR SEA CARVE UP DEC 2, 2005 PERTH - Woodside Petroleum Ltd (ASX:WPL) has welcomed an agreement on how to carve up the Timor Sea energy reserves but is yet to give the green light to its Sunrise Gas

project in the area. Australia and East Timor struck the agreement, which is yet to be signed, after more than a year of negotiations. AUSTRALIAN GAS LIGHT CO BEGINS NATIVE TITLE TALKS IN PNG DEC 5, 2005 BRISBANE - Australia's biggest energy retailer the Australian Gas Light Co Ltd (ASX:AGL) has started native title negotiations with indigenous groups for the US$3 billion (A$4.02 billion) Papua New Guinea gas pipeline project. AGL managing director Greg Martin said dialogue has begun with 50 indigenous landowner groups and four representative bodies for the project's Australian pipeline section. ENVIROMISSION AUSTRALIA SEEKS NEW CONTRACTOR FOR SOLAR TOWER DEC 5, 2005 MELBOURNE - EnviroMission Australia (ASX:EVM) is in negotiations with a new contractor to engineer its world-first solar tower electricity generator, after parting ways with Leighton Contractors (ASX:LEI). The Melbourne-based company and Leighton have agreed to terminate the deal they made in 2002 for the construction company to design the giant solar tower. ENERGY PROVIDER JACKGREEN TO SUPPLY GREEN POWER TO 25,000 DEC 5, 2005 MELBOURNE - Environmentally friendly energy provider Jackgreen Ltd (ASX:JGL) says it is on track to be supplying green electricity to 25,000 customers in early 2006. The Sydneybased company announced it had signed 10,000 customers in NSW and was ready to move into the next stage of expansion. WOODSIDE SAYS NORTH ASIAN CUSTOMERS KEEN ON W. AUSTRALIAN GAS DEC 6, 2005 MELBOURNE - Woodside Petroleum Ltd (ASX:WPL) says it is close to signing sales agreements for gas from its Pluto field that will take the multi-billion dollar project a step closer to development. The oil and gas producer said it had agreed key commercial terms with North Asian customers to sell between 3.5 and four million tonnes of liquefied natural gas (LNG) a year for 15 years from the Pluto field from the end of 2010, with an option to extend for a further five years. AUSTRALIAN BIODIESEL GROUP TO LIST ON ASX DEC 6, 2005 SYDNEY - Alternative fuels producer Australian Biodiesel Group Ltd has raised A$20 million (US$15.0 million) ahead of listing on the Australian Stock Exchange (ASX) to fund construction of a second plant and the acquisition of a cooking oil aggregator. Australian Biodiesel's initial public offer (IPO) today closed oversubscribed after raising 20 million shares at one dollar each. BHP BILLITON AND EXXONMOBIL BOOST GIPPSLAND GAS RESOURCE DEC 7, 2005 MELBOURNE - Gas reserves at the Bass Strait operations of BHP Billiton Ltd (ASX:BHP) and Esso Australia Resources have been boosted by 700 billion cubic feet, further extending the life of the long-running project. The new find adds to the estimated six trillion cubic feet of gas remaining at the Gippsland Basin joint venture between BHP Billiton and Esso Australia Resources, a subsidiary of ExxonMobil. NSW POWER BILLS TO RISE TO FUND US$1.2 BLN ELECTRICITY UPGRADE DEC 7, 2005

SYDNEY - Power bills will increase by $10 a year to fund a A$1.6 billion (US$1.2 billion) rewiring of NSW's electricity network. It was believed the upgrade of the network prompted by blackouts last summer due to overloads, had been submitted to the state's energy regulators for final approval, The Daily Telegraph reported today. SP AUSNET ASX FLOAT VALUED AT US$1.04 BLN DEC 8, 2005 MELBOURNE - The float of SP AusNet has been two times oversubscribed and is now valued at A$1.4 billion (US$1.04 billion), confounding sceptics who said the market had lost its appetite for infrastructure offers. All eyes will now be on the other big electricity utility float currently underway, Spark Infrastructure, which has been competing with SP AusNet for attention and dollars. AUSTRALIA'S NIDO PETROLEUM TO RAISE FUNDS VIA SHARE ISSUE DEC 8, 2005 SYDNEY - Nido Petroleum (ASX:NDO) said today it will raise A$19,050,000 (US$14.34 million) before costs via the issue of 127 million shares at a price of $0.15 per share. Perth-based Nido will initially issue 95,257,000 shares under its 15 per cent placement facility with the balance being issued subject to shareholder approval. GIANT POWER FLOATS ENTER FINAL STAGES IN AUSTRALIA DEC 8, 2005 MELBOURNE - SP AusNet (ASX:SPN) and Spark Infrastructure say their competing billion dollar share offers have been well supported as they enter their final stages. The two foreign-owned electricity infrastructure companies have similar assets and are going headto-head as they compete for investor dollars. CHEVRON AUSTRALIA SELLS REMAINING SHARE OF GORGON GAS DEC 9, 2005 PERTH - Global oil company Chevron Australia has now completely sold its share of gas from the giant Gorgon gas joint venture after signing its third multi-billion deal in as many months. The latest deal is with Japan's Osaka Gas and is worth A$10 billion (US$7.49 billion), taking the total value of Chevron's three supply deals to $28 billion MINERALS & ENERGY TO PUSH AUST COMMODITY EXPORTS UP 22%: ABARE DEC 12, 2005 CANBERRA - A booming minerals and energy sector is expected to boost earnings from Australia's commodity exports by 22 per cent to A$120 billion (US$90.2 billion) this financial year. In its latest forecasts, the Australian Bureau of Agricultural and Resource Economics said the value of exports from the nation's mines and petroleum operations will reach A$90.3 billion in 2005/06, up almost 32 per cent from last year. SP AUSNET LISTS AT DISCOUNT ON ASX DEC 14, 2005 MELBOURNE - Electricity utility SP AusNET (ASX:SPN) has listed at a 5.8 per cent discount to its initial public offer price, after raising A$1.4 billion (US$1.05 billion) in one of the biggest floats of the year. The utility began trading at A$1.30 on the Australian Stock Exchange (ASX) at 1200 AEDT, below the offer price of A$1.38. AUSTRALIA'S BEACH PETROLEUM UPS JV STAKE TO 50 PCT DEC 15, 2005 MELBOURNE - Beach Petroleum Ltd (ASX:BPT) has paid A$50 million (US$37.7 million) to boost its stake in the Basker Manta Gummy (BMG) oil and gas project in the Bass Strait to

50 per cent. The project is now a 50/05 joint venture between Beach and Anzon Australia Ltd (ASX:AZA), with Anzon still the project operator. VICTORIA WON'T SELL ITS SNOWY HYDRO SHARES: TREASURER DEC 16, 2005 MELBOURNE - The Victorian state government won't consider selling off its share in the Snowy Hydro scheme without adequate protection of the state's water rights, Treasurer John Brumby says. His comments follow the New South Wales (NSW) state government's decision to sell its 58 per cent share in the scheme, allowing the public to purchase shares in the Australian icon. WOODSIDE'S US$1.2 BLN ANGEL PROJECT ABOUT TO KICK-START DEC 16, 2005 SYDNEY - Woodside Petroleum Ltd (ASX:WPL) says development is due to begin immediately at the A$1.6 billion (US$1.2 billion) Angel gas project on the North West Shelf. "The NWS Venture participant companies are excited to proceed with this new field development, which will underpin current current gas contracts and future sales," Woodside Petroleum director of North West Shelf Ventures, Jack Hamilton, said. NSW GOVT TO SELL ITS STAKE IN SNOWY HYDRO SCHEME VIA IPO DEC 16, 2005 SYDNEY - The NSW government is to sell its 58 per cent stake in the Snowy Hydro scheme through a "mums and dads" float on the Australian Stock Exchange, Premier Morris Iemma has announced. Mr Iemma said proceeds of the sale would be used to further pay down debt and be re-invested in NSW infrastructure. SPARK LISTS AT DISCOUNT ON AUSTRALIAN BOURSE DEC 16, 2005 MELBOURNE - Shares in electricity distributor Spark Infrastructure Holdings Ltd (ASX:SKICA) have listed on the Australian Stock Exchange at a 7.5 per cent discount to their issue price. Spark raised $A1.64 billion ($US1.23 billion) in its initial public offer with investors paying $A1.80 ($US1.35) for shares in two instalments - a first of $A1.26 ($US.94) and second of 54 cents to be paid in March 2007. BABCOCK & BROWN BUY INTO EUROPE'S RENEWABLE ENERGY MKT DEC 19, 2005 SYDNEY - Investment firm Babcock & Brown Ltd (ASX:BNB) is set to buy one of the biggest independent renewable energy companies in Europe, Enersis II SGPS SA, for 490 million euros (US$584.23 million). "The (Enersis) portfolio generates strong operating cashflow as well as providing growth potential through a development pipeline," Babcock & Brown Global Infrastructure and Project Finance head Peter Hofbauer said. BEACH PETROLEUM PROFITS 180 PCT ON ANZON AUSTRALIA SHARE SALE DEC 20, 2005 MELBOURNE - Beach Petroleum (ASX:BPT) has sold most of its 9.6 per cent stake in Anzon Australia Ltd (ASX:AZA) with the funds to be used to boost its stake in the Basker Manta Gummy (BMG) oil and gas project. The sale will net Beach A$28 million (US$20.71 million), a 180 per cent net profit on the A$10 million it paid for the shares in Anzon's initial public offer in 2004. AUSTRALIAN BIODIESEL GROUP'S TECHNOLOGY LICENCED IN CANADA DEC 20, 2005

SYDNEY - Australian Biodiesel Group Ltd (ABG) (ASX:ABJ) has reached an A$8 million (US$5.92 million) agreement to licence its production technology with the Calgary Biodiesel Centre in Canada. ABC will licence a 20,000 tonne per annum plant at Rockyview, Calgary, which will use a combination of used cooking oil, new vegetable oil and tallow as the feedstock material. CUTTING PETROL EXCISE NOT BEST USE OF SURPLUS: AUSTRALIAN PM DEC 20, 2005 CANBERRA - Australian Prime Minister John Howard has given the thumbs down to a proposal to use the nation's bumper budget surplus to cut petrol excise by 10 cents a litre. Mr Howard said that idea would cost about A$3 billion (US$2.22 billion) on the basis that cutting excise by a cent a litre cost A$300 million. AUSTRALIA'S UNITED INFRASTRUCTURE WINS US$146 MLN IN CONTRACTS DEC 21, 2005 SYDNEY - Industrial services company United Group Ltd (ASX:UGL) has won more than A$200 million ($US146.62 million) in power and infrastructure contracts in Australia, New Zealand and Thailand. Managing director Richard Leupen today said that United's infrastructure business was benefiting from increased demand for water, power and other essential infrastructure services. BHP BILLITON JV STRIKES OIL IN THE GULF OF MEXICO DEC 21, 2005 MELBOURNE - BHP Billiton Ltd (ASX:BHP) says it has made a new oil discovery in deep water in the Gulf of Mexico. Drilling at the Knotty Head exploration well about 270 kilometres south east of New Orleans has encountered more than 500 feet of net oil pay. BIOFUELS TARGET WILL BE EXCEEDED: AUSTRALIAN MINISTER DEC 22, 2005 CANBERRA - A federal government target of 350 megalitres of biofuel production by 2010 would not only be met but exceeded under a new action plan, Industry Minister Ian Macfarlane said today. The government announced it had received action plans from the major oil companies, members of the Independent Petroleum Group and the major retailers on the take-up of biofuels. MELBOURNE UNI RESEARCHERS TALK UP DOMESTIC NUCLEAR POWER DEC 22, 2005 CANBERRA - Nuclear power is a cheaper and more environmentally friendly option in Australia than has been previously thought, researchers say. A group of scientists from the University of Melbourne, led by Associate Professor of Physics Martin Sevior, Wednesday released a study of the energy problems confronting Australia in the future. ERGON LAUNCHES US$75 MLN OFFER FOR AUSTRALIAN ENERGY DEC 23, 2005 MELBOURNE - Junior electricity retailer Australian Energy Ltd (ASX:AEN) appears set to be taken over by the Queensland government-owned Ergon Energy after directors recommended a A$103 million (US$75.29 million) offer. Ergon today launched an offer at A$1.95 a share, which Australian Energy said represented a 16.1 per cent premium to the closing price of A$1.68 on the day prior to the recent trading halt. AUSTRALIA'S ENEABBA GAS TO RAISE US$7.3 MLN IN IPO DEC 29, 2005

SYDNEY - Energy company Eneabba Gas Ltd, which plans to build a power station in Western Australia, is now seeking to raise A$10 million (US$7.3 million) in an initial public offer (IPO). Eneabba intends to use the funds raised to complete a feasibility study on its proposed 168 megawatt gas turbine power station near Dongara in Western Australia. ANALYSIS - OIL PRICES TO REMAIN HIGH IN 2006 DEC 28, 2005 PERTH - The record high oil prices of 2005 won't be repeated in 2006 but prices will stay high enough to keep oil companies in the black and motorists grumbling. Oil prices soared to record highs in 2005, touching the $US70 a barrel mark as the weather and political events erratically unfolded. BANGLADESH NEW BANGLADESH POWER PLANT LIKELY TO START UP BY YEAR-END SEPT 1, 2005 DHAKA - With the commissioning of two units of 250 MW coal-based power plant at Barapukuria in Dinajpur by the year-end, the total capacity of the national grid is likely to reach 3,750 MW reducing power shortage in the country. Finance Minister M Saifur Rahman Wednesday told reporters that the installation of the first unit of the plant is expected to be completed by November while the second unit will be ready in January next year. 229 FIRMS SEEK TO INSTALL SMALL POWER PLANTS SEP 2, 2005, Unb, Dhaka URL:http://www.thedailystar.net/2005/09/02/d50902050351.htm A total of 229 local firms submitted initial proposals for setting up the proposed 23 small power plants (SPPs) across the country. Wednesday was the last date for submitting initial proposals for building 23 SPPs. Of these, 14 will be set up on the sites belonging to the Power Development Board (PDB). Eight plants will be installed on the sites of the Rural Electrification Board (REB) and one in the area of the Dhaka Electric Supply Company (Desco). Officials said a total of 335 firms collected the Expression of Interest (EoI) forms from different power-supply agencies such as the PDB, the REB and the Desco. Each EoI form cost Tk 10,000. Of the collected EoIs, 179 firms collected EoI from the PDB, but finally 106 firms submitted their EoIs. On the other hand, 109 EoIs were dropped to vie for building the proposed eight SPPs of the REB. The Desco sold 26 EoIs for its one project at Bashundhara. However, 14 firms finally submitted EoI for the project. Capacity of each of the proposed plants will range from 10 to 50 megawatts. Installation cost of a 10-MW project is estimated Tk 30 crore. B'DESH MAY BARTER WITH INDIA ON GAS PIPELINE FOR ROUTE TO NEPAL SEPT 6, 2005 DHAKA - Bangladesh modified its preconditions for allowing the planned tri-nation gas pipeline through its territory, apparently offering a tradeoff for transit to Nepal through India. As per the new stance, Bangladesh wants to resolve two issues: export to Nepal through Indian Corridor and the import of hydropower from Nepal through Indian territory, in one package to barter for the tri-nation gas-pipeline project. INDIA, BANGLADESH AGREE ON TRI-NATION GAS PIPELINE PROJECT SEPT 7, 2005 NEW DELHI - India and Bangladesh have in principle agreed on a US$1 billion tri-nation gas pipeline project that would allow New Delhi to bring natural gas from Myanmar. "It looks as if we have resolved outstanding issues, clearing way for signing of a memorandum of understanding," Petroleum Minister Mani Shankar Aiyar, who returned from Dhaka early Tuesday, told reporters here.

ADB TO SUPPORT SETTING UP OF SMALL POWER PROJECTS IN B'DESH SEPT 7, 2005 DHAKA - Asian Development Bank (ABD) is likely to support setting up of small power projects in Chittagong Hill Tracts (CHT) to mitigate electricity problem in rural areas of the region. ADB Country Director in Bangladesh Hua Da responded positively when Deputy Minister for CHT Affairs Moni Sapawan Dewan at a meeting here today (Monday) sought the bank's help to adopt small projects in this regard. BANGLADESH'S PDB SET TO IMPLEMENT POWER PROJECT SEPT 12, 2005 DHAKA - In the wake of countrywide power crisis, Power Development Board (PDB) is set to strike a deal Monday with China-based Harbin Power Engineering Company (HPE) to set up a second unit 90-MW plant at Fenchuganj, Sylhet. The project, Sylhet 90 MW Combined Cycle Power Plant (second unit), will be implemented at a cost of US$84.58 million. GAIL INDIA OFFERS HELP TO PETROBANGLA RETRIEVE STRANDED GAS SEPT 13, 2005 NEW DELHI - State-owned gas utility GAIL India Ltd (BSE:532155) has offered to assist Petrobangla (Bangladesh Oil, Gas and Minerals Corporation) for monetization of stranded gas from Kutubdia offshore gas field in south east Bangladesh. "The issue was discussed at the meetings between GAIL and Petrobangla during the recent visit of GAIL chairman and managing director Proshanto Banerjee to Dhaka," the company said in a statement here. WB SUGGESTS ACCELERATED REFORMS FOR BANGLADESH POWER SECTOR SEPT 21, 2005 DHAKA - The World Bank Monday suggested the government to accelerate the ongoing reform programme in the power sector, but did not make any firm commitment for financial assistance. Sources said the suggestion of the international funding agency came at a meeting with the Power Ministry. State Minister for Power Iqbal Hassan Mahmood was present at the meeting. BANGLADESH GOVT TRANSFERS OFFICIALS TO RID OIL SECTOR OF CORRUPTION SEPT 27, 2005 CHITTAGONG - Eight high officials, including the Managing Director of Jamuna Oil Company, were Monday transferred under a government move to rid the oil sector of rampant "irregularities and corruption". Official sources said the executives of the state-owned oil companies got the marching orders following Sunday's meeting between Energy Advisor Mahmudur Rahman and Bangladesh Petroleum Commission (BPC) Chairman Sheikh Kurshid Alam. BANGLADESH PETROL PUMP OPERATORS ON STRIKE FROM SEPT 28 SEPT 27, 2005 DHAKA - Petrol pump operators Monday said they shut down their business from September 28 to press home their 12-point demands. "Actually, we will stop purchasing petroleum on cash from depots from Wednesday. As a result, there will be no available stock of petroleum fuels at our pumps", said Mohammad Nazmul Haque, President of the Petrol Pump Owners' Association (PPOA). ADB MOUNTS PRESSURE ON GOVT TO CORPORATISE DESA Sep 27, 2005, AZM Anas http://www.financialexpressbd.com/index3.asp?cnd=9/27/2005&section_id=1&newsid=1912&spcl=no The Asian Development Bank (ADB) continues to mount pressure on the government to

accelerate the process of corporatising the Dhaka Electric Supply Authority (DESA) as part of a broader reform in the power sector. The Power Division faces the renewed pressure from the Manila-based development lender as its Executive Director Emile Gauvreau flies to Dhaka on a five-day tour on September 30. The ADB high official is scheduled to meet the top officials of the Power Division, including its Secretary, to take stock of the progress of the ADB-assisted power projects and reform of the sector, sources at the Power Division said. The donor agency has repeatedly expressed its concern over the foot-dragging of the government to register the association of newly structured DESA with the Joint Stock Company. A high official of the Power Division, however, acknowledged that although the articles of the association have already been finalised with vetting from the Law Ministry, the registration process is being delayed due to strong resistance from the collective bargaining agents (CBAs). The corporatisation plan of the DESA has evoked sharp reaction from its employees with its trade unions baulking at, what they alleged, the donor-dictated reform package. Under the plan, all generation, transmission and distribution units of the power sector would be made region-based holding companies. Officials of the Power Division have remained sceptic about the possible outcome of the corporatisation of the DESA. The officials favour the reform in the DESA considering the necessity to reduce its losses and eliminate graft, but they are opposed to any "knee-jerk rush" in turning it into a company. The decision reflects the government's broader outlook to corporatise and commercialise the power sector as a whole, they added. "Corporatisation may be an option for the DESA to help whittle down its ballooning losses and bridle corruption. But will the process of handing over the company be carried out in a proper way?," an official questioned, citing a previous experience. Referring to the bitter experience of the DESCO (Dhaka Electric Supply Company), a brainchild of the multilateral donors, the official said it would be yet another failure on the part of donors. He questioned whether the new company could improve its services, and lessen the harassment of consumers while keeping the previous staff of the DESA in service. At least, four missions of the ADB visited the country in the last two months to push for expediting the corporatisation process. Official figures available with the DESA have put its losses at Tk 1.0 billion in the first six months of the last fiscal, suggesting that the power supply agency counts nearly Tk 200 million in losses every month. DESA's revenue earnings have been plummeting over the years, notwithstanding the government's drive to streamline the agency by reining in a section of the CBA leaders and errant employees. Sources said about 50 per cent of the electricity of DESA, purchased from the Power Development Board (PDB), were being pilfered by dishonest employees and officers in the name of systems loss. The cumulative systems loss of the DESA stands at about 23.6 per cent while that in some divisions, including Postagola and Lalbagh, it is more than 40 per cent. The most corrupt DESA circles are Lalbagh, Postogola, Narayanganj and Tongi whose incomes continue to The corporatisation of the PDB and the DESA was among a number of conditions the ADB tagged with providing loans amounting to US$100 million under the Power Sector Development Programme. The ADB appointed consultants from the British Power International for working out a roadmap for the Power Division to help turn the DESA into a holding company. BANGLADESH, INDIA'S TATA TO BEGIN FINAL ROUND OF TALKS IN OCT SEPT 29, 2005 DHAKA - Tata group will hold a final round of negotiations with the Bangladesh government next week on the Indian conglomorate's US $2.5 billion investment plan for the country, official sources said here on Wednesday. The Tata Group proposes to set up a fertiliser factory, a steel plant and a 1000-megawatt coal-fired power plant in the country. ASIA ENERGY SUBMIT FEASIBILITY REPORT FOR BANGLADESHI COAL MINE OCT 4, 2005

DHAKA - Asia Energy submitted to the government a feasibility study report on the country's coal mine project at Phulbari in Dinajpur. As per the study report, the UK-based firm will extract coal from the Phulbari mine by applying an 'open pit' method. CRUCIAL ROUND OF TALKS BEGINS ON TATA INVESTMENT IN BANGLADESH OCT 4, 2005 DHAKA - Gas security and electricity purchase tariffs for gnd Tata group are among issues to be discussed in the crucial final round of talks beginning between the conglomorate and Bangladesh government on its proposed US$ 2.5 billion investment in the country, officials said. Tata Group will set up a fertiliser factory, a steel plant and a 1000-megawatt coalfired power plant in the country. The development of a coal mine is also included in their investment plan. ASIA ENERGY SUBMITS PHULBARI COAL MINE DEVELOPMENT PLAN TO BANGLADESHI GOVT OCT 4, 2005 LONDON (AFX) - Asia Energy PLC said it yesterday submitted its development plan for the Phulbari coal mine to the government of Bangladesh. 'This is the culmination of two years' work and it sets out in detail how we propose to start up and operate a world class coal mine in northwest Bangladesh,' said David Lenigas, joint managing director of Asia Energy. Lenigas said the company has so far spent 18 mln usd on the mine's feasibility study and development plan to prove that it contains a resource of 572 mln tonnes of coal. The Phulbari mine is expected to produce over 15 mln tonnes of coal a year, with some 12 mln being exported to international markets. Asia Energy said around 40,000 people will be relocated during the life of the mine, and the development plan outlines how they will be compensated for any loss of land, homes and business. The company said the number of people to be relocated has been reduced by 15,000 compared with earlier plans following a change to mine's footprint. Barclays Capital is the lead advisor for the financing of the Phulbari project. Asia Energy said it will now finalise the funding structure and will make a further announcement in due course. S.ASIAN NATIONS AGREE TO LOOK INTO REGIONAL GRID, GAS PIPELINE OCT 5, 2005 NEW DELHI - The BIMSTEC group of seven South and South-East Asian countries on Tuesday agreed to look into the possibility of setting up a trans-regional gas pipeline and a power transmission network as part of efforts to enhance energy cooperation and ensure energy security in the region. The representatives of Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) at its meeting here also agreed to evolve a common regulatory framework for grid interconnections and strengthen cooperation in hydro, non-conventional as well as research activities. BANGLADESH GOVT TO BUY SURPLUS ELECTRICITY FROM PRIVATE PLANTS OCT 5, 2005 DHAKA - The government is planning to bring 250 MW electricity to the national grid from the captive power plants (CPP) for meeting electricity demand during the peak hours. The officials of the Power Cell, an organ of the Power Ministry, said a policy is being framed by the authorities to deal with the electricity purchase from the CPPs. ASIA ENERGY TO SET UP A 500 MW POWER PLANT OCT 9, 2005 United News of Bangladesh Advisor of the Energy Ministry Mahmudur Rahman today (Sunday) said the Phulbari Coal Mine project would be leased out on the basis of the new Coal Policy, whicfh is now under the process of formulation.He said this after receiving a fresh proposal from the UK-based

Asia Energy for setting up a 500 MW power plant alongside its present coal mine project at Phulbari in Dinajpur.The new Coal Policy is expected to be finalsed by December 2005 or January 2006. One of the main features of the policy would be the increase of the royalty rate to 10 percent from the present 5 percent. The increase of royalty rate may even be 15 percent.Hinting at the possible increase, Mahmudur Rahman told reporters that it has not been decided yet as to how much the royalty percentage would be increased."But you can be sure, the rate of royalty will be double digit in the new policy from the present single digit," he said.Asia Energy, which conducted the feasibility study under a contract with the government, has already submitted its study report and development plan on the Phulbari Coal Mine Project.The coal mines developing company wants approval of the government on the basis of the present 5 per cent royalty.An official of the Asia Energy told UNB that it would be very discouraging for them to invest in the mine project if the government increases the royalty rate under its new policy. As per the proposal submitted today (Sunday), Asia Energy plans to install the power plant by 2011 on build-own-operate (BOO) basis, having a provision for another 500 MW unit in future.Gary Lye, Chief Operating Officer (CEO) of the Asia Energy Corporation (Bangladesh) Pty Ltd, submitted the proposal to the Advisor of the Energy Ministry.As per current estimate, the Bangladesh chief of Asia Energy said the cost of the power plant project would be US$ 476 million.The proposed plant, which will use pulverised technology, will generate 3,700 gigawatt hour (GWh) electricity a year by burning 1.5 million tons of coal, about one-tenth of the 15 million tons total annual output of the Phulbari mine.Receiving the proposal on power plant, Mahmudur Rahman said his ministry would form a technical committee to examine the pros and cons of the project.Besides, the proposal would be placed before a high level committee headed by Health and Family Welfare Minister Dr. Khandaker Mosharraf Hossain for consideration.The proposal will also be sent to a coordination committee, headed by Principal Secretary of the Prime Minister Dr. Kamal Siddiqi, as this committee generally deals with the projects related with the development of the private sector infrastructures. BIMSTEC FOR CROSS-COUNTRY POWER TRANSMISSION GRID OCT 6, 2005, The Daily Star URL:http://www.thedailystar.net/2005/10/06/d5100601044.htm Seven South and South East Asian countries, including Bangladesh, agreed on Tuesday to explore the possibility of having an electricity transmission network among them. It could be achieved by developing an inter-connectivity grid between the countries to facilitate the flow of electricity across the region, an official statement of the countries said.. The statement was issued at the end of the daylong conference of energy ministers and officials of the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (Bimstec). India, Bangladesh, Nepal, Bhutan, Myanmar, Thailand and Sri Lanka are in the economic group. The proposed power grid would run from Thailand to Sri Lanka and Thailand would head a task force to work out the draft memorandum of understanding (MoU) for the inter-country grid connections. The task force, which will submit its report within a year, would also take into account crucial factors like flow of electricity between the member countries without discrimination. The conference also reached a consensus on the feasibility of a trans-regional natural gas pipeline. "The conference recognised the need for detailed feasibility studies and techno-economic agreements between and among participating countries to allow optimal utilisation of natural gas resources in the region," the statement said. The conference produced an action plan for the cooperation among Bimstec countries to ensure energy security in the region. The plan also covered the tapping of hydrocarbon potential in the region and exchanging unconventional sources of energy as well as building energy security and energy efficiency in the region. On the gas pipeline, the member countries agreed to form a separate task force to work out the terms of reference and to recommend the course of action after taking into account the work done on such a pipeline. Thailand would host the first meeting of the task force on the gas pipeline early

next year, Indian Power Secretary RV Shahi said. He said a Bimstec Centre for Energy is likely to come up next year to enable member countries to share experiences in reforms, restructuring, regulation and best practices in the energy sector. The location for the proposed centre is yet to be decided. There was no concrete form of cooperation in the unconventional sources of energy but it was felt that member countries could focus on small hydro projects, solar energy and generation of electricity from rice husk. The Bimstec countries would draw on each other's experiences on rural electrification as well as on efficient development of coal resources. Cooperation in the energy sector is one of the main areas identified by the Bimstec countries when the economic group was set up in 1997. OVER $600 LOANS FROM WB, ADB STUCK UP, Failure to fulfil donors' conditions OCT 10, 2005, The Daily Star URL:http://www.thedailystar.net/2005/10/10/d5101001149.htm More than $600 million loans from the World Bank and ADB have not been released due to the government's failure to set up an independent institution to enrol educational institutions in monthly payment order (MPO) and fulfil other conditions. Finance and Planning Minister M Saifur Rahman yesterday told reporters that a $100 million fund is not being released as the independent institution is yet to be set up. Besides, $200 million earmarked for flood rehabilitation programme, $50 million for a project of Power Development Board (PDB), $60 million for Local Government and Rural Development (LGRD) and $200 million loans for health, communications and power ministry are also stuck up, sources said. "Some of World Bank and ADB projects are moving slowly whereas some others are not being implemented for various reasons. Consequently the funds for these projects are not being released," Saifur said. The rise of petroleum prices has already put a tremendous pressure on the country's foreign exchange reserve. Moreover, the WB and ADB have not released the pledged funds, increasing the pressure on balance of payment and resources, he explained. As the government is yet to corporatise the Dhaka Electric Supply Authority (Desa), a lot of money is stuck up in the power sector, he pointed out. The power ministry officials however told Saifur at the meeting that they are going to do it very soon. Hardly inspired by the assurance, the minister said: "They always tell me they are doing it, but let's see if they can really do it by the time they have promised." Recently the WB has sent a report on the assessment of fiscal policy in Bangladesh, outlining various factors that impede Bangladesh's getting foreign aids. Mentioning that there is about $7 billion aid in the pipeline for Bangladesh, the report pointed out that the institutional and procedural bottlenecks on the part of the government and donors are impeding the smooth release of foreign grants. ASIA ENERGY PLANNING US$476-MIL. POWER-PLANT IN BANGLADESH OCT 11, 2005, Steven Knell, World Markets Analysis UK coal exploration and mining company Asia Energy plc has submitted a proposal to the state authorities for a 500-MW power plant to be situated alongside its US$2-billion Phulbari mine development in the Dinajpur region of north-west Bangladesh. Reuters is reporting that the plans were submitted to the Board of Investment and Bangladesh Power Development with a view to getting electrical production online at the site by 2011. The project calls for a US$476-million investment by the company, which would provide a facility based on pulverised coal technology to generate 3,700GW/hr, based on a throughput of 1.5 million tonnes of coal per year to be taken from the Phulbari mine, which Asia Energy is developing for start-up in 2006. Significance: Situating the proposed plant in close proximity to the 572 million tonnes of coal estimated on site would engender substantial costs savings, likely to translate into competitively priced electricity for the Bangladeshi market. The country's power needs are growing rapidly and the inadequacies of current installed capacity have been singled out by authorities as a barrier to further economic growth. It has been estimated that the present installed capacity of 4,800MW will have to

increase to 8,000MW by 2011 to keep pace with demand. Supplies are already well short of demand today and supply interruptions have become commonplace, prompting anger amongst the population at large that resulted in attacks on a number of plants outside the capital, Dhaka, over the weekend. BANGLADESH GOVT AGREES TO CONSTRUCT 30-KM GAS PIPELINE OCT 11, 2005 DHAKA - The government Monday agreed in principle to construct a 30-kilometer pipeline to supply gas to the Tata Group's proposed fertiliser plant at Bashkhali in Chittagong. The government's consent came at a tripartite negotiation meeting between Petrobangla, Tata Group and the Asian Development Bank (ADB). PROJECT LAUNCHED TO STUDY RENEWABLE ENERGY IN BANGLADESH OCT 13, 2005 DHAKA - Food and Agriculture Organization (FAO) has signed an agreement with Local Government Engineering Department (LGED) to conduct a comprehensive study on bioenergy situation in Bangladesh. In this regard a daylong workshop, aiming to find out an efficient mechanism to collect reliable field data for a full-scale GEF project was arranged here Tuesday with over 150 assistants and thana-level engineers of LGED taking part in it. ASIA ENERGY SAYS ASIAN DEVELOPMENT BANK MAY PROVIDE FINANCING FOR PHULBARI MINE OCT 14, 2005 LONDON (AFX) - Asia Energy PLC said the Asian Development Bank will undertake a due diligence review for potentially providing senior financing of its Phulbari coal mine in Northwest Bangladesh. 'The involvement of the ADB would be a significant step in the development of the Phulbari coal mine,' said Asia Energy's joint managing director David Lenigas. ASIA ENERGY TO BUILD 500-MW COAL PLANT IN BANGLADESH NEAR PHULBARI OCT 17, 2005, Platts International Coal Report Asia Energy, the London Stock Market-listed coal miner, has submitted plans to the Bangladesh government to build a 500-MW coal-fired plant next to its Phulbari coal mine. The $476 million plant would consume around 1.5 million mt/year of Phulbari coal, leaving the company with 12 million mt/year for export to markets including India, when it reaches peak production in 2012. Construction of the coal plant could start in 2007 and begin operating in 2011. David Lenigas, company joint managing director, said it decided to submit the power station proposal as the Bangladesh government has started a review of its future energy needs. "We thought we would be proactive and put forward the proposal," he said. Lenigas said the proposed coal plant would be built and operated by Asia Energy, although it was thinking of bringing in strategic partners for the project. The company said in a statement to the London Stock Exchange Oct. 10 that the proposed power tariff for the station would support a coal price in today's terms of around $45/mt, which after adjusting for ash and energy levels, was consistent with current international thermal coal prices. The company submitted its formal scheme for the development of the Phulbari mine to the government of Bangladesh on Oct. 3. The scheme details every aspect of the mine from design, water and environmental management, coal handling and processing and transport. SMALL POWER PLANT DEALS, GOVT SHELVES UNSOLICITED AWARDING ON WB THREAT OCT 18, 2005, Sharier Khan, The Daily Star URL:http://www.thedailystar.net/2005/10/18/d5101801075.htm As the World Bank (WB) has threatened to suspend all funds on grounds of massive nepotism, corruption and irregularities in the unsolicited small power schemes, the

government yesterday decided to shelve the unsolicited awarding of small power purchase deals. Instead the government will now float tenders seeking the lowest price offers from small power developers, competent sources said. At a meeting at the Prime Minister's Office (PMO), chairmen and high officials of the power ministry discussed that the October 19 deadline to award unsolicited power sales contracts to different small power developers will have to be shelved. The PMO also decided to form a high powered committee to design the tenders for small power purchase agreements. This design will be used for small power contracts all over the country till 2015, the sources said. Around 45 to 48 small power purchase agreements were set to be awarded to different ministers and ruling party parliamentarians, sources said. While they know nothing about the power sector, these beneficiaries were supposed to 'sell' these deals to real power developers. A chaotic scenario prevailed since the government announced the small power deals through the Power Development Board (PDB), Rural Electrification Board (REB) and Dhaka Electric Supply Authority (Desa) and Dhaka Electric Supply Company (Desco). In July, the government made a secret list of 23 small private power plant builders who will get guaranteed sales of power to the government utilities. But pressure from the 'have-not' group in August compelled the government to increase the number of the beneficiaries from 23 to 50. These deals were being designed on the basis of political wishes, not on the basis of economics or real needs. The World Bank recently wrote to the government that it is concerned about the way the government is handling the small power projects. It is alleged that these schemes are nothing but a way to raise election funds. In September, when Finance Minister M Saifur Rahman went to Washington to meet the WB high officials, he was grilled with questions about the small power project. A source at the PMO said the WB asked Saifur whether the government is so desperate about raising election funds that it has resorted to this kind of power projects. A PDB source said the small power purchase agreements were violating the government's procurement guidelines. "There was no set standard for these small power projects. We do not know what kind of machinery will be installed by these developers. Besides they do not fall under the rules and regulations which are followed by the standard Independent Power Projects (IPP)," said the source. "Most importantly, technically it is very risky to have so many small power plants connected to the national grid," he added. A PDB study shows that if 45 to 50 small plants are added to the national grid, a sudden trip of one small unit will cause chain reaction shut downs of all other plants. The high number of plants implies a high level of system breakdown risks. "In 2002, when (Bangladeshi) Summit Power wanted to supply power to the national grid, the PDB refused that connection on this technical ground," he pointed out. The small power projects will also waste huge quantities of gas. A big 450 mw combined cycle power plant consumes the same amount of gas required for a dozen small simple cycle plants, which can jointly produce only 225 mw. The Power System Master Plan of the government, which works as a planning guideline, does not also subscribe to the idea of electrification through small plants. "Make a 400 mw combined cycle plant. It will cost less and conserve huge gas. Small power is a stop gapit can not be a model for electrification," he quips. Although the government considered the small plant projects as 'political schemes', it expected these to start operation from JuneJuly next. "This is ridiculous. There is no record of any plant completion in less than 18 months," he added. Besides, gas supply crunches also make the prospect of small plants bleak. For instance, in Dhaka, Titas gas company has refused to give any gas connection to any small plant due to supply shortfall. With the apparent intent to 'raise funds', the government earlier this year approved an amendment of the small power generation policy allowing anyone to install power plants. This eliminates competition and quality. In August the government declared it has selected 23 locations from where the public utilities will buy power from the small plants. Private investors were asked to submit Expressions of Interest (EoI) to set up small power plants ranging from 10 to 50 megawatts capacity in these locations.

GOVT TO SET UP 5 IPP PLANTS IN 7 MONTHS, PM UNHAPPY OVER PREVAILING POWER, GAS CRISIS OCT 18, 2005 The Daily Star URL:http://www.thedailystar.net/2005/10/19/d5101901108.htm The government yesterday decided to set up five independent power producer (IPP) plants, each having 50MW, in different places of the country as a quick solution to the ongoing power crisis. Private sponsors will be asked to install the plants within the next 6-7 months so that the power supply situation in the next summer can be improved. The decision was taken at a high-level emergency meeting convened by Prime Minister Khaleda Zia at her office. State Minister for Power Iqbal Hassan Mahmood, Energy Division Advisor Mahmudur Rahman, Prime Minister's Principal Secretary Kamal Siddiqui, Power Division Secretary Nazrul Islam, Energy Division Secretary Nasir Uddin, PDB Chairman ANH Akhtar Hossain, Petrobangla Chairman SR Osmani were present at the meeting. The IPP plants will be set up at Fenchuganj, Shahjibazar, Sylhet, Shikalbaha and Khulna. The meeting also decided to keep closed the newly installed 80MW Tongi plant until December next. Sources said the prime minister expressed her resentment over the present gas and power crises across the country. She directed the Power Division to take immediate steps to carry out maintenance and overhauling programmes in the next winter to ensure smooth operation of the power plants in the next summer. It was discussed in the meeting that the next summer would be a very crucial time from the political point of view, as the tenure of the present government concludes in October 2006. She also instructed the Energy Division to improve the gas supply situation as soon as possible by taking some emergency measures. Meanwhile, the power sector experts questioned the decision on installation of five IPP plants within the next 6-7 seven months. They said it will be simply impossible to implement any power generation project within a short time, as setting up of a power plant is a time-consuming matter. Chairman of Khulna Barge Mounted Power Plant Mohammed Aziz Khan said it needs at least 15 months to implement a power plant project. The 110MW Khulna Barge Mounted Power Plant was set up as the country's first IPP plant in 1997. However, Chairman of Westmont Power (Bangladesh) Limited Tajul Islam Faruque said setting up of a power plant is sometimes possible within a short time if the government is determined to do so. Westmont Power installed a 90MW IPP plant at Baghabari in 1998. PDB Chairman ANH Akhtar Hossain said his organisation plans to invite tender for the proposed 50MW IPP plants within the next month. "We'll start our job from tomorrow for the proposed plants," he said. PHULBARI COAL MINE PROJECT TO TURN VAST AREA INTO DESERT, SPEAKERS TELL ROUNDTABLE OCT 18, 2005 The Daily Star URL:http://www.thedailystar.net/2005/10/18/d51018060363.htm A vast area of Phulbari Coal Mine Project will turn into a desert if the Asia Energy is allowed to implement its plan, said the speakers at a roundtable yesterday. They also blamed the government for lack of transparency in the controversial move. Why is Asia Energy making statements about its different activities relating to Phulbari project instead of the government, the speakers questioned. They urged people to be united to protest the move. The roundtable on 'Phulbari coal mine: Whose benefit and whose loss' was organised by the National Committee to Protect Oil-Gas Mineral Resources, Power and Port at the National Press Club in the city with its Convenor Engineer Sheikh Mohammad Shahidullah in the chair. Speaking at the roundtable, Workers' Party President Rashed Khan Menon asked the government to make a statement on the project. He said open pit method not only affects the environment but also agriculture and other resources of the project area. Dr Hossain Monsur, former chairman of Petrobangla, apprehended that a vast area will turn into a desert. It is high time to protest any move that undermines not only the interest of local people but also the national interest. Prof Samsul Alam of Buet said there is an indication

that the Asia Energy is going to get undue advantage like Niko and it is going to implement a project that will make the area a desert. Why is the Asia Energy spending a lot of money for the project if it didn't get any commitment from the government, he questioned. Sheikh Mohammad Shahidullah said there is no option but to become united and protest the move. Shahjahan Ali Sarkar, convenor of Phulbari Protect Committee, said around half a million population of Phulbari and its adjacent areas would be affected. These people want to live there and don't want to see that the project is implemented, he added. Principal Khurshid Alam, joint convenor of the committee, said local people would not oppose implementing the project if it were an underground one. But as it is an open pit project, they are opposing the move as most of the people would be affected, he explained. Manjurul Ahsan Khan, president of the Communist Party of Bangladesh, said patriotic people should be united to protest the move and fight against those who are harming the interest of the country. Tipu Biswas, secretary general of the Workers' Party, said gas resource is likely to be finished by 2020 when the country would need coal. "Those who are in power are involved in looting," he said stressing the need for developing local experts and workers to reap the benefit from coal mine projects. Dr Nazrul Islam, Prof T Ali and Bazlul Rashid Firoz also spoke at the roundtable. Officials of the Asia Energy said they have spent around US$ 20 million only to assess what impact the project would have on the environment. The Asia Energy has already got the clearance from the Ministry of Environment, they added. BANGLADESH PHARMA ASS'N WELCOMES GOVT DECISION ON GAS SUPPLY OCT 19, 2005 DHAKA - The Bangladesh Association of Pharmaceutical Industries (BAPI) has welcomed government decision ensuring uninterrupted gas flow into productive industrial units by discontinuing supply of the fuel to gas-fired power plants, in a rationing system. In a press statement, the BAPI said the crisis-management measure would help continue the flourishing of industrial growth and thereby accelerate economic growth of the country. UNOCAL CONDUCTS AERIAL SURVEY IN SOUTHERN BANGLADESH OCT 19, 2005 BARISAL - UNOCAL, the US-based oil-gas exploration company Monday conducted an aerial survey at the coastal belt in the country's southern region to assess gas and oil reserves. Sources said members UNOCAL's engineering unit of seismic and geographical survey talked to its local staff at its Barisal office during the aerial visit from a seaplane at about 9:30 am. ASIA ENERGY CORP OF THE U.K. SUBMITS PROPOSAL TO BUILD 500-MW COAL PROJECT IN BANGLADESH OCT 20, 2005, Global Power Report U.K.-based Asia Energy PLC said that its wholly owned subsidiary, Asia Energy Corp. (Bangladesh), is seeking approval from the Bangladesh government to develop a 500-MW coal-fired project at Phulbari in northwest Bangladesh. The company said it had submitted a proposal for the project, which "will firmly establish coal as a viable source of energy in Bangladesh and present an unparalleled opportunity to generate electricity from a natural resource other than gas and imported oil." Construction of the $476 million project is scheduled to start in late 2007. It is due on line by 2011. Asia Energy said that the proposal, presented to the Board of Investment, covered the development, financing, construction, ownership, operation and maintenance the Phulbari Power Project. "The power plant will bring together the rapidly growing energy needs of Bangladesh and the development of the Phulbari coal mine," the company said. Asia Energy's company would locate the plant alongside a coal mine it plans to develop at Phulbari. The mine is scheduled to start operating in 2006. The company said the power project was intended to operate primarily as a baseload plant and generate an average of 3,700 GWh a year. Power will be sold to the Bangladesh Power Development Board and/or to the Rural Electrification Board

under a 25-year power purchase agreement. If the proposal is accepted, Asia Energy expects to sign a letter of intent with the government for the project, followed by negotiations of the final agreements using current contracts for private power projects in Bangladesh as a basis. Asia Energy commissioned Aldwych International Ltd. to prepare the proposal for the Phulbari Power Project. Aldwych International is a power plant development company based in the U.K. with experience in developing, financing, building, and operating power plants. Asia Energy said it would conduct all the required environmental and technical studies to decide the tariff, which would pave the way for completion of the PPA and associated coal purchasing arrangements and the financing scheme. The company added that it intended to hold an international competitive tender for the construction of the project so that "the process is transparent and that the plant is constructed at a competitive cost." Asia Energy intends to finance the project, on a "project finance" and "limited recourse" basis, using both international and local funding sources. "The proposed Phulbari Power Project can guarantee a long-term, economically competitive supply of reliable baseload power generated from indigenous coal and, therefore, offers significant benefits to the government and the people of Bangladesh." Asia Energy said. "A growing power shortage has been identified by the government as a critical bottleneck in economic development, with the country needing to double its electricity power output over the next decade." Bangladesh has an installed capacity of 4,800 MW, and demand is forecast to increase to more than 8,000 MW by 2011. "An increase in coal-fired generating capacity, based on the strategically important coal deposits in the northwest of the country, will reduce the current high reliance on gas reserves and help Bangladesh meet it development goals," Asia Energy added. Asia Energy is a publicly quoted company in London whose primary activity is the development of the Phulbari coal mine. ADB REVIEWS PHULBARI OCT 21, 2005, The Mining Journal, EDITD BY NICK CHALMERS AIM-listed Asia Energy plc has mandated the Asian Development Bank (ADB) to undertake a due diligence review of its Phulbari coal project in northwestern Bangladesh with a view to providing senior financing. The review will be undertaken by the bank's private-sector operations arm, and will assess the possibility of ADB leading the financing of the proposed mine through either equity, debt or the provision of political-risk guarantees. BANGLADESH SEEKS US$150 MLN FROM WB TO HANDLE POWER CRISIS OCT 25, 2005 DHAKA - The government has sought US$150 million as emergency fund from the World Bank to overcome the on-going power crisis across the country. State Minister for Power Iqbal Hassan Mahmood sought the support of the international donor agency when a delegation of the bank, led by its country director Christine Wallitch, met him at his office in the Secretariat today (Monday). $230 MILLION LOAN PACKAGE TO HELP DELIVER CLEAN ENERGY TO WESTERN BANGLADESH OCT 27, 2005, ADB Media Center ADB will help expand the natural gas infrastructure and delivery system in Bangladesh to support the country's economic growth through a US$230 million loan package approved today. The project will construct four gas transmission pipelines totaling 353 kilometers to transport about 360 million cubic feet of natural gas per day to the less developed western region of the country, covering an area with a population of nearly 15 million. To remove supply bottlenecks throughout the network, the project will expand the country's northsouth system by installing compressors at two locations - Ashuganj south and Muchai. Another compressor station will be located in Elenga. About 320 km of gas distribution pipelines will also be constructed to create a new distribution network in the Rajshahi area

in Western Bangladesh. In addition, the project will conduct a survey of five existing gas fields to provide updates on the estimated gas in place and to determine the exact location for drilling. "By supporting the use of the much cleaner natural gas as a fuel for power generation and industry and transport, as well as for household use, the project will also contribute to improving air quality in urban centers and in households," says Piya Abeygunawardena, an ADB Principal Project Economist. Based on an ADB-financed study, Petrobangla, the Bangladesh Oil, Gas and Minerals Corporation, has formulated an investment plan for the period 2002-2020 that envisages $3 billion in investments for the gas sector to meet the country's increasing gas requirements. In support of this, the Government, with ADB assistance, has developed a gas sector reform road map, which will be implemented over five years. The pipelines to be constructed under the project will run through: Ashuganj-Manohardi-Dhanua-Elenga-Jammu Bridge, Hatikumrul-IshwardiBheramara, Bonpara-Rajshahi , Bheramara-Khulna. To help ensure the sustainability of improvements in the sector, the project will help strengthen the policymaking and technical capabilities of the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources. The project will also help enhance the role of the private sector through strengthening the enabling environment in the gas sector. Implementation of the gas sector reform road map provides the most needed regulatory and other sector reform in place sustainable development of the sector. The total cost of the project is estimated at $413 million. A $225 million loan from ADB's ordinary capital resources will help finance the construction of the pipelines and installation of compressors. The Government of Norway is considering giving a $5 million grant for the capacity building component, and the Government of Bangladesh will provide the balance of $178 million. Petrobangla and four of the state-owned gas companies under it will serve as the executing agencies for the project's various components. The project is due for completion around June 2010. CAIRN SUSPENDS PRODUCTION AT BANGLADESH GAS FIELD OCT 28, 2005 CHITTAGONG - The offshore Sanghu gas field suspended production Thursday, deepening the crisis and drying up gas supply to two power plants and fertilizer factories in Chittagong region. UK based Cairn Energy exploiting gas from the field said production was suspended at 4:15pm due to mechanical trouble. ADB APPROVES US$230 MLN FOR BANGLADESH CLEAN ENERGY PRJCT OCT 28, 2005 MANILA - The Asian Development Bank (ADB) has approved a US$230 million loan package to help expand the natural gas infrastructure and delivery system in Bangladesh to promote economic growth. "Through this project, the western part of Bangladesh will have the opportunity for the first time to receive natural gas on a large scale, which will help boost its economic development and alleviate regional disparities in the long run," said Piya Abeygunawardena, an ADB Principal Project Economist, in a statement. FIRST UNIT OF BANGLADESH POWER PLANT TO START UP NEXT MONTH OCT 31, 2005 DHAKA - One unit of the coal-fired Barapukuria 250MW Thermal Power Plant in Dinajpur, first of the kind in the country, will go into operation next month to feed the power-hungry national grid. The 125MW second unit of the two-unit plant is also likely to start electricity generation in February next year, an official announcement said on Sunday. ASIA ENERGY SAYS SEVERAL COS SEEK TO JOIN PHULBARI COAL PROJECT NOV 4, 2005, AFX.COM LONDON (AFX) - AIM-listed Asia Energy PLC said a number of coal companies have expressed interest in joining the 15 mln-tonne a year Phulbari coal project in Bangladesh.

The definitive feasibility study for the project will be completed next month, allowing it to begin the process of securing financing early next year. Mining work at Phulbari, which is believed to hold around 572 mln tonnes of coal, is expected to begin late-2006, with full production seen to be achieved by 2013. In a statement, Asia Energy said it has received 'numerous approaches from major coal producers, coal consumers and coal trading companies who have all expressed interest in participating in the development of the project.' Barclays Capital, the group's financial adviser for the project, is currently assessing various funding options, with a decision expected in the next few months, it said. Asia Energy gave an update on Phulbari alongside full year to June results, which showed losses widen to 881,170 stg from 396,065 stg last time. It has yet to generate revenues. REGIONAL POWER GRID PROPOSAL LIKELY TO GET NOD AT SAARC SUMMIT NOV 10, 2005 DHAKA - A proposal for setting up a regional power grid is likely to be adopted at the ensuing SAARC summit to be held in the capital on November 12-13. Sources in the Ministry of Power, Energy and Mineral Resources said the proposal will be placed in line with the resolution of the recently held SAARC energy ministers' meeting in Islamabad. INDIAN PM OUTLINES NEW VISION FOR SAARC AT REGIONAL SUMMIT NOV 12, 2005, BBC Monitoring International Reports The Indian prime minister has called for zero-tolerance on cross-border terrorism and "a collective commitment" to fight "the scourge of terrorism". Addressing the 13th SAARC summit in the Bangladesh capital Dhaka, Manmohan Singh urged a new approach to face regional and international challenges with supranational solutions and said India backed putting aside historical and political divisions to create "a new architecture for mutually beneficial economic partnership". The Indian news agency report said he also stressed the need for speedy strategic regional cooperation within the wider Asian context and called for improved regional transport infrastructure and a South Asia energy dialogue to tap potential, as well as a regional food bank against shortages and disasters. Following is text of report by Indian news agency PTI: Dhaka, 12 November: Outlining a new vision for SAARC (South Asian Association for Regional Cooperation), India's Prime Minister Manmohan Singh on Saturday [12 November] asserted that there should be "zero tolerance" for cross-border terrorism among member states and made far-reaching proposals for stepping up economic cooperation, enhanced air connectivity and setting up of a regional mechanism for disaster relief and management. Addressing the twice-deferred SAARC Summit here, he said no SAARC nation should allow its territory to be used against the interests of another member state. "There should be zero tolerance for cross-border terrorism and for the harbouring of hostile insurgent groups and criminal elements," he stressed. India has been concerned over terror camps operating in Pakistan as also northeastern insurgent groups operating from Bangladesh. "It is only in an environment of mutual confidence and a collective commitment against the scourge of terrorism, that we can register the progress we desire in more intense interaction," he said. Underscoring the need for regenerating the arteries of transport and communication in the region, Manmohan Singh suggested that the South Asian countries should agree to provide to each other, reciprocally, transit facilities to third countries, not only connecting one another but also connecting to the larger Asian neighbourhood, in the Gulf, Central Asia and the Southeast Asia. "India, which borders each of the members of South Asia, is willing to do so," he said. Highlighting the need for improved air services among SAARC countries, Singh took the initiative announcing that India was prepared to offer to all SAARC neighbours "on a reciprocal basis and without prejudice to existing rights, the facility of daily air services by designated airlines" to Indian cities, Delhi, Mumbai [Bombay], Chennai [Madras], Bangalore, Hyderabad and Kolkata besides 18 other destinations all across India. The prime minister followed this up by offering designated airlines of SAARC countries the facility to exercise fifth freedom rights,

both intermediate and beyond, with the SAARC region, also on a reciprocal basis. In his address, Singh indicated the need for countries to change their mindsets. "The challenges we face as a region and as members of the larger international community are no longer susceptible to purely national solutions," he said. "There is an imperative need to change and overcome the divisions of history and politics to forge a new architecture of mutually beneficial economic partnership. India, for its part, remains ready for this endeavour," he said. The summit of the seven-nation grouping comprising India, Bangladesh, Pakistan, Sri Lanka, Nepal, Maldives and Bhutan, was first postponed in January in the wake of the tsunami disaster and again in February when India pulled out expressing serious concern over the security situation in Bangladesh and developments in Nepal. Unprecedented security apparatus has been put in place manned by over 30,000 personnel to ensure that the summit went off peacefully. Observing that food security was a major challenge for all South Asian countries, Singh recommended establishment of Regional Food Bank to which all member states would contribute. This could be used to meet shortages and losses caused by natural calamities in any of these countries, he said. Emphasizing the need for promoting regional cooperation in strategizing for the future, the prime minister proposed a South Asian Energy Dialogue involving experts, academics, environmentalists, officials and NGOs, to recommend measures to tap this potential. The prime minister regretted that not a single project proposal had been received relating to utilization of the Poverty Alleviation Fund for which India had offered to contribute 100m dollars a year back on the understanding that this money would be used entirely on projects with SAARC but outside India. India, he said, welcomed the decision to merge the different existing and proposed funds into an Umbrella South Asian Development Fund with different windows for different purposes. As a step in the direction of creating a South Asian Economic Union by 2020, Singh recalled that at the July ministerial meeting it was recommended that a SAARC High Economic Council be set up, which could promote initiatives in economic, trade, finance and monetary areas with a view to moving towards regional economic integration. Noting that South Asia possesses a very rich and living tradition of exquisite handicrafts and textiles, he conveyed India's readiness to establish a SAARC Museum of Textiles and Handicrafts. The museum could sponsor training of craftsmen, foster design skills, hold promotional events such as fashion-shows and demonstrations by artisans and also undertake research, the prime minister said, adding setting up of retail outlets in each of the SAARC capitals could be explored to promote their textiles and handicrafts regionwide. Singh also announced India's offer to hold a South Asian Car Rally in the run-up to hosting the next summit in the first half of January 2007. It would symbolize vividly regional identity of SAARC and also underline the urgent need to improve transport infrastructure in these countries, he said. To provide an enabling environment and world class facilities to talented people in the region, the prime minister suggested that the member states pool their resources to create a centre of excellence in the form of a South Asian University. India is willing to make a major contribution to the realization of this project over the next three to four years, he said. Observing that regional economic cooperation in South Asia has fallen far short of expectations, he hoped that SAFTA [South Asian Free Trading Agreement] would come into force by 1 January 2006. Contending that it was important to assess South Asia regional cooperation in the larger Asian context, the prime minister said today, ASEAN was evolving rapidly into a truly integrated economic community. "My question is, is SAARC prepared to be an integral part of this emerging Asian resurgence or is it content to remain marginalized at its periphery? "If our region wishes to be a part of the dynamic Asia, which is emerging in our neighbourhood, then we must act and act speedily," he stressed. Referring to disasters afflicting the region, he said the summit should evolve regional mechanisms for effective and timely cooperation in disaster relief and management. India's offer to host the SAARC Centre for Disaster Preparedness has been accepted by all member states. He said the possibilities for meaningful cooperation range from early warning systems to relief and reconstruction. Source: PTI news agency, New Delhi, in English 0813 gmt 12 Nov 05

SUMMIT POWER DEBUTS ON BANGLADESH STOCK MARKETS NOV 16, 2005 DHAKA - Trading of the shares of Summit Power Limited (SPL) began Tuesday on the country's two bourses-Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). SPL is the first power company in the country to trade in the capital market. WATER-PHULBARI MINE NOV 17, 2005, United News of Bangladesh Dhaka - Water management at the proposed open pit coal-mine at Phulbari is expected to ensure fresh water supply to the surrounding countryside and urban areas. "Instead of any shortage, there will be surplus of water around Phulbari," said Dr Len Drury, a leading hydrogeologist of the Asia Energy Corporation, Thursday. Dr Len Drury, team leader of Environment Impact Assessment Project of the coal-mine, was speaking at a seminar organised by the Bangladesh Geological Society. He said mine de-watering of large open cut mines are being operated successfully throughout the world under various climatic and geological complexities. The water management of Asia Energy will ensure the same at Phulbari coal-mine, he added. Asia Energy Corporation (Bangladesh) Pty Ltd, a subsidiary of London-based Asia Energy PLC, has submitted a Scheme of Development and Feasibility Study to the government to start a 15 million ton per year open pit coal mine at Phulbari. It has established a resource there of 572 million ton of high quality bituminous coal. ASIA ENERGY LAUNCHES AGRI PROJECT IN BANGLADESH NOV 29, 2005 DHAKA - Asia Energy Corporation, which will develop a coal-mine at Phulbari in Dinajpur, has launched the second phase of an agricultural project to help local farmers overcome possible production loss. The UK-based company, Asia Energy Corporation (Bangladesh) Pty Ltd., has submitted a proposal to the government for developing a coal-mine at Phulbari. ASIA ENERGY PLANS EQUITY ISSUE FOR PHULBARI DEC 2, 2005, The Mining Journal (Edited by Nick Chalmers) AIM-LISTED Asia Energy plc is raising around US$ 52 million for its Phulbari coal project in Bangladesh through a placing of new shares with institutional investors. The JP Morgan Cazenove joint venture has placed 4.14 million new Asia Energy shares at £ 4.50/share, and has taken orders for a further 2.6 million at the same price. The latter shares will be issued subject to approval from Asia Energy shareholders at an extraordinary general meeting scheduled for December 22. The new shares are equivalent to approximately 16% of Asia Energy's existing share capital. The net proceeds will be used to fund certain initial development activities at Phulbari, to purchase start-up equipment, and to pay deposits to secure long-lead-time equipment. "The placing will enable us to continue to take Phulbari to its next stage of development while we finalise the overall funding of the project," said Chris Eager, Asia Energy's chairman. "This process will commence in 2006." Asia Energy is awaiting approval of a 'scheme of development' (SoD) for a proposed mine and coal-fired power plant at Phulbari, having submitted its plan to the Government of Bangladesh two months ago (MJ, October 14, p8). The government has formed a technical committee to review the SoD, and has until the end of the year to approve the proposals. On receiving all necessary approvals, Asia Energy will have three years in which to commence mining operations. In anticipation of this, the company is putting the finishing touches to a 'definitive' feasibility study of Phulbari, against which it hopes to secure project finance. Phulbari has estimated resources of 572 Mt of thermal and semi-soft coking coal, of which approximately 93% is in the measured and indicated categories. Asia Energy is aiming to start operations at the end of 2006, with initial coal extraction expected in 2008. At full

production, anticipated in 2013, the operation is expected to produce around 15 Mt/y of mostly export-quality thermal and coking-coal. TEN SMALL POWER PLANTS TO BE BUILT IN BANGLADESH DEC 6, 2005 DHAKA - The private sector will set up 10 small power plants, each having 10-30 MW capacity, across the country. This is only half the 20 plants originally slated for construction. PETROBANGLA CLAIMS COMPENSATION FROM NIKO RESOURCES DEC 7, 2005 DHAKA - State-owned Petrobangla Tuesday sent a letter to Niko Resources, the Canadian operator of Tengratila gas field, claiming compensation for two blowouts this year. The first blow out occurred on January 7 and the second on June 24. BIDDING FOR FUTURE BANGLADESH GAS EXPLORATION UNCERTAIN DEC 12, 2005 DHAKA - Timing of the third round bidding for offshore oil and gas exploration in Bangladesh, is in doubt because of administrative delays. Earlier this year, advisor to the Energy Ministry, Mahmudur Rahman, said bidding was likely to be held in mid-2006. WG PETROLEUM OF US TO INVEST US$2.5 BLN IN BANGLADESH ENERGY DEC 12, 2005 DHAKA - WG Petroleum LLC, a US-based company, will make a large-scale investment of US$2.5 billion in Bangladesh's gas and refinery industries. To this effect, a memorandum of understanding (MoU) was signed between the multinational WG Petroleum LLC and Madina Gas Company of Bangladesh recently. NORWAY TO PROVIDE US$10 MLN FOR BANGLADESH'S POWER SECTOR DEC 12, 2005 DHAKA - Bangladesh will receive about 68 million Norwegian Kroner (US$10 million) in mixed credit from the Norwegian Agency for Development (Norad) for development of the Bangladesh's Power Sector. An agreement to this effect was signed here Sunday between Bangladesh and Norway at the Economic Relations Division (ERD) of the Finance Ministry. ERD joint chief Nargis Islam and Norwegian Ambassador Aud Lise Norheim signed the agreement on behalf of the respective sides. NIKO CLARIFIES PRESS REPORTS ABOUT FORMER BANGLADESH CHIEF DEC 12, 2005 DHAKA - Niko Resources, the Canadian operator of Feni and Tengratila gas fields, has issued a clarification about press reports on the removal of Quasim Sharif from the company's Bangladesh operations. In a press release Saturday, Brian J. Adolph, Vice President and Country Manager of Niko Resources (Bangladesh) Ltd., said Niko would like to address the "misinformation printed in various newspapers in Bangladesh regarding the departure of Mr. Qasim Sharif from our company." BANGLADESH MAY LOSE MILLIONS OVER BREACH OF POWER CONTRACT DEC 15, 2005 DHAKA - The Bangladesh government may lose millions of dollars again in a dispute over the operation of a power plant in the country. German-based company, Lahmeyer International Polly Power Services Limited (LIPPS), has lodged a complaint with an international arbitration court accusing its employers, Rural Power Company Limited (RPCL), of terminating the services of its without following the contract.

BANGLADESH TENGRATILA GAS IN LIMBO, NIKO BLAMED FOR BLOWOUTS DEC 20, 2005 DHAKA - Bangladesh Petroleum Exploration and Production Company (BAPEX) will not share the cost of Canadian operator Niko's errors at Tengratila gas field, which resulted in the buring of 8.9 billion cubic feet (bcf) of gas. Early this month, the Bangladesh government filed a compensation claim with Niko of Tk 840 million (US$12.68 million) for damage to the local environment caused by two blowouts. CENTRAL ASIA CHINA, KAZAKHSTAN SIGN PROTOCOL FOR KAZAKHSTAN'S WTO ACCESSION SEPT 1, 2005 BEIJING - China and Kazakhstan on Wednesday signed a protocol of bilateral negotiations between the two governments for Kazakhstan's accession to the World Trade Organization (WTO). Chinese Vice Premier Wu Yi and visiting Kazakh Deputy Prime Minister Akhmetzhan Esimov attended the signing ceremony of the protocol and other two bilateral documents, including a memorandum of understanding between Chinese and Kazakh petroleum companies and an agreement on the feasibility research of the China-Kazakhstan natural gas pipeline. CHINA GAS OFFERS GAIL EQUITY IN INNER MONGOLIA PROJECT SEPT 1, 2005 NEW DELHI - China Gas has offered state-run gas utility GAIL India Ltd (BSE:532155) participation in a petrochemical project in Inner Mongolia, GAIL said here Wednesday. "GAIL (has) received an offer from China Gas Holdings Ltd for participation in a gas based petrochemical project, which is to be established in Humor, Inner Mongolia," GAIL said in a press release. TURKMEN CENTRAL BANK PROVIDES US$13 MLN FOR MARY POWER PLANT SEPT 2, 2005 ASHGABAT - The Central Bank of Turkmenistan will provide the Energy and Industry Ministry a loan worth US$13.3 million to finance the modernization of the Mary State District Power Plant under an order by President Saparmurad Niyazov. A ministry source told Interfax the loan would be provided for six months at 1 per cent annually. UZBEKISTAN'S UZBEKNEFTEGAZ PROPOSES JOINT VENTURE WITH UZPEC SEPT 6, 2005 TASHKENT - Uzbek national oil and gas company Uzbekneftegaz has proposed establishing a joint venture with Britain's UzPec Ltd that would replace a production sharing agreement (PSA) between the two firms. The proposed joint venture would be based at the Central Ustyurt and South-West Gissar license zones, a source in Uzbekneftegaz told Interfax. TWO CHINESE FIRMS TO INVEST US$200 MLN IN MONGOLIA REFINERY SEPT 8, 2005 BEIJING - Two Chinese companies will invest US$200 million to build Mongolia's first oil refinery in its capital city Ulan Bator. According to an agreement signed yesterday in Beijing, CSEIC Fuel Trade Co Ltd and Beijing Jingdeshun Materials Co Ltd will construct the refinery through their joint venture, Heilongjiang Huafu Industrial Co Ltd. LG IN TALKS WITH KAZAKHSTAN'S OIL FIRM TO BUILD JV PLANT SEPT 7, 2005 SEOUL - LG International Corp., the trading arm of South Korean conglomerate LG Group, is in talks with Kazakhstan's state-run oil and gas company to construct a joint-venture

polyethylene plant in the Central Asian country, it said Tuesday. The company said that it has engaged in the talks with Kazmunaigaz since early this year and the two parties are discussing signing a memorandum of understanding on the deal. UZBEKNEFTEGAZ PROPOSES JV WITH BRITAIN'S UZPEC SEPT 7, 2005 TASHKENT - Uzbek national oil and gas company Uzbekneftegaz has proposed to Britain's UzPec Ltd. to set up a joint venture based at the Central Ustyurt and South-West Gissar license zones and to tear up a production sharing agreement for this project, a source in Uzbekneftegaz told Interfax. The source said that the British company is considering this proposal and has yet to reach a final decision. TURKMENISTAN EXPORTS 30 BLN CU M OF NATURAL GAS IN 1ST 8 MONTHS SEPT 7, 2005 ASHGABAT - Turkmenistan's natural gas production amounted to 41,4 bcm, exports of natural gas totaled 30 bcm in January-August 2005, up 7,4 per cent and 7.9 per cent respectively year-on-year, the Ashgabat correspondent of Turkmenistan.ru reports referring to data released by the Ministry of oil and gas industry and natural resources of Turkmenistan. Under the agreements on purchase and sale of natural gas for this year, Turkmenistan is to export over 46 bcm of natural gas: 36 bcm are reserved for the National joint-stock company Neftegaz Ukrainy, 4 bcm for Russian Gasprom and the rest 6 bcm for Iran. In 8 months, Turkmenistan shipped 26,3 bcm of gas to Russia and Ukraine and 3,7 bcm to Iran. CHINA'S CNPC DENIES REPORTS OF SELLING PETROKAZKHSTAN'S SHARES SEPT 8, 2005 BEIJING - China National Petroleum Corp. (CNPC) has denied it is in talks to sell as much as half of its US$4.18 billion acquisition of PetroKazakhstan Inc. for which the company had outbid India's ONGC. "There are no such talks," a spokesman for CNPC's International Department said here while reacting to a report in the Wall Street Journal. CHINA'S INNER MONGOLIA TO BUILD TWO COAL CHEMICAL PROJECTS SEPT 19, 2005 HOHHOT - Work on construction of Xilinhe coal chemical project, involving a total investment of 9 billion yuan (US$1.1 billion) started recently in north China's Inner Mongolia Autonomous Region. The project is to be jointly built by Qianan Chemical Co. Ltd in north China's Hebei Province and two partners in Inner Mongolia, including the Xingta Mining Co. Ltd. LUKOIL, OTHERS FORM GAS EXPLORATION CONSORTIUM FOR UZBEKISTAN SEPT 20, 2005 TASHKENT - Lukoil, Uzbekistan's Uznekneftegz, China National Petroleum Corporation (CNPC), Korean National Oil Corporation (KNOC) and Malaysia's Petronas have formed a consortium to explore gas fields in Western Uzbekistan. The companies signed the deal in Tashkent on September 8, Grigory Volchek, spokesman for Lukoil Overseas, told Interfax. SOUTH ASIA NEEDS 2 GAS PIPELINE SCHEMES: ADB EXPERT SEPT 22, 2005, The Press Trust of India MANILA - Future demand for natural gas in South Asia is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, Asian Development Bank (ADB) said Thursday. Dan Millison, a senior ADB energy specialist, said recently released reserves information from Turkmenistan shows a lower-than-expected gas deliverability for a proposed 3.3 billion dollar pipeline project to carry gas from Turkmenistan via Afghanistan

to India and Pakistan. ADB has been brokering the 1,700 km pipeline project since 2002, promoting it as a win-win example of regional cooperation - a pioneering effort to link gasrich Central Asia with energy-deficient South Asia through Afghanistan. The project would bring clean fuel at competitive costs to India and Pakistan, transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Dauletabad gas field has gross reserves of 1.4 trillion cubic meters of gas, but production forecasts are lower than expected, causing analysts to doubt that it can meet the proposed target of piping 30 billion cubic meters (BCM) of gas a year to South Asia. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing. They will need to find gas from other fields to meet pipeline design targets," Millison said. The USD7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700 km pipeline would cost more than double the Turkmen scheme but leaves out Afghanistan. "However, with long term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline," says Millison. India already imports gas and demand will soar in the next decade, the ADB official said adding Pakistan, with its own reserves declining, is expected to begin importing gas after 2008. In fact, projected demand in South Asia is so strong that there may be a need for a third pipeline from Qatar or Oman, says Millison. INDIA'S ONGC CONSIDERING FRESH BID TO ACQUIRE PETROKAZAKHSTAN SEPT 22, 2005 NEW DELHI - India's Oil and Natural Gas Corp (NSI:ONGC) is considering making a rebid for acquiring Petrokazakhstan, a Canadian oil firm in Kazakhstan. Though Petrokazakhstan has already accepted a bid by China's CNPC, the deal has to be ratified by the firm's shareholders. S.ASIAN GAS DEMAND STRONG ENOUGH FOR TWO PIPELINES: ADB EXPERT SEPT 23, 2005 MANILA - South Asia's future demand for natural gas is expected to be strong enough to require gas to be piped from both Turkmenistan and Iran, according to Dan Millison, a senior Asian Development Bank (ADB) energy specialist. Reserves information from Turkmenistan indicates a lower-than-expected gas supply for a proposed 1,700 kilometre pipeline, US$3.3 billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. GAZPROM, UZBEKNEFTEGAZ SIGN 4-YEAR NATURAL GAS TRANSIT AGREEMENT SEPT 29, 2005 TASHKENT - Russia's natural gas giant Gazprom and Uzbekistan's national energy company on Tuesday signed a four-year deal that would allow transit of natural gas that Russia buys in neighbouring Turkmenistan via Uzbek territory, Gazprom said in a statement on 27 September. The deal was signed in Tashkent by Gazprom's president Alexei Miller and Uzbekneftegaz head Abdusalom Azizov. UZBEKISTAN HAS 31-YRS WORTH OF GAS RESERVES: OFFICIAL OCT 4, 2005 TASHKENT - At current hydrocarbon production levels, Uzbekistan has sufficient explored reserves of natural gas for 31 years, oil - 21 years and condensate - 25 years, Tuichi Shaimuratov, director of OAO Geology and Oil and Gas Field Exploration Institute said at an energy conference in Tashkent. He said that these figures were valid as of January 1, 2005. ELECTRICITY PRODUCTION IN UZBEKISTAN DOWN 3.8% IN 8 MONTHS OCT 4, 2005

TASHKENT - Uzbekistan produced 32.082 billion kilowatt-hours of electricity in the first eight months of the year, down 3.8 per cent from the same period last year, the statistics department reported. Electricity production at heat and power plants was down 4.8 per cent year-on-year to 26.563 billion kilowatt-hours while production at hydroelectric plants and block plants grew 1.2 per cent to 5.519 billion kilowatt-hours, which included 481 million kilowatt-hours produced at hydroelectric plants, up 5 per cent year-on-year. KAZAKH PIPELINES NEED US$748 MLN IN INVESTMENT FOR DEVELOPMENT OCT 4, 2005 ASTANA - The program to develop Kazakhstan's trunk pipeline system for 2006-2010 drawn up by state oil transport company KazTransOil, a division of KazMunai-Gaz, will cost about 100 billion tenge (US$748 million). "Total investment in the program to develop the trunk pipeline system is planned at 100 billion tenge," KazTransOil General Director Kairat Krymov told In-terfax. KAZAKHSTAN SUSPENDS FUEL OIL EXPORTS UNTIL MARCH 1, 2006 OCT 4, 2005 ASTANA - The Kazakh government has suspended exports of fuel oil until March 1, 2006, the government said in a decree published on September 23. The Kazakh Finance Ministry's customs control committee has been ordered to take the necessary measures to ensure that this decree is carried out. UZBEKISTAN SET TO INCREASE GAS EXPORTS BY 2014 OCT 4, 2005 TASHKENT - Uzbek national oil and gas holding company Uzbekneftegaz plans to implement a program to develop the gas pipeline system in the republic in 2005-2010, Uktam Eshmuradov, general director of Uzbekneftegaz subsidiary Uztransgaz said at an international energy conference in Tashkent. This program will make it possible to increase natural gas exports to 16 billion cubic meters by 2014, from an expected 10 bcm in 2005, a 60 per cent increase. PETRONAS SIGNS TWO JOINT EFFORT DEALS WITH UZBEKISTAN OCT 5, 2005 KUALA LUMPUR - Petroliam Nasional Berhad (Petronas) plans to establish a long-term presence in Uzbekistan's oil and gas sector with the signing of a Memorandum of Cooperation (MOC) and a Joint Study Agreement (JSA) with its national oil firm, Uzbekneftegaz National Holding Company (UNG). The MOC and JSA were signed by Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn Bhd, the Malaysian stateowned oil firm said in a statement on Oct 3. PETRONAS, UZBEKNEFTEGAZ INK TWO DOCUMENTS ON COOPERATION OCT 5, 2005 TASHKENT - Petroliam Nasional Bhd (Petronas) is stepping up its presence in Uzbekistan in a proposed tie-up with the country's national oil company, Uzbekneftegaz National Holding Company. In a statement dated 3 October, Petronas said its subsidiaries Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn Bhd had signed a memorandum of cooperation (MOC) and a joint study agreement (JSA) with Uzbekneftegaz. TURKMENISTAN TO MODERNIZE ELECTRICITY SECTOR OCT 10, 2005 ASHGABAT - The Ministry of Energy and Industry of Turkmenistan has developed a plan for the development of the country's fuel and energy sector through 2020. Priority tasks of the plan include the construction of 500-kV electricity transmission lines connecting the main

cities of Turkmen provinces with the capital, Ashgabat, and exporting Turkmen electric energy to Iran, Afghanistan, Turkey, and Pakistan. CHINA COMPLETES KAZAKHSTAN'S FIRST NATURAL GAS PIPELINE OCT 11, 2005 AKYUBIN - China's first natural gas pipeline in Kazakhstan has been completed and put into service. The 150 kilometre-long pipeline links the Aktyubin oilfield in Kazakhstan with the Bukhara-Ural international gas pipeline so that the natural gas may enter the international market via Russia. TURKMENISTAN'S OIL PRODUCTION UP 2.5 PCT, JAN-SEPT OCT 12, 2005 ASHGABAT - Turkmenistan produced 7.3 million tons of oil in the first nine months of 2005, an on-year rise of 2.5 per cent over the January-September period of last year, according to the Ministry of oil and gas industry and mineral resources of Turkmenistan. As the Ashgabat correspondent of Turkmenistan.ru reports, the surplus was provided by the republic's foreign partners - British Burren Resources and British-Arab Dragon Oil. Turkmenneft State Concern extracted 5.7 million tons of black gold, 1,1 per cent less than the same period of 2004. KAZAKH OPPOSED OVL REBID FOR PETROKAZAKHSTAN OCT 13, 2005 NEW DELHI - Kazakhstan is believed to have discouraged India from making a rebid for acquiring PetroKazakhstan, the Canadian firm with operations in Kazakhstan which has gone to China National Petroleum Corporation (CNCP) in first round of bidding. Kazakhstan's Minister for Energy and Mineral Resources V Shkolnik had last week told Petroleum Minister Mani Shankar Aiyar in no uncertain terms that Kazakhstan was looking at nationalising oil properties being sold by foreign companies and would not want ownership to pass on to another foreigner, sources said. KAZAKHSTAN WANTS FEASIBILITY STUDY FOR GAS PIPELINE TO CHINA OCT 13, 2005 ASTANA - Kazakhstan will by the end of 2005 select a company to carry out a feasibility study for the construction of a gas pipeline from Kazakhstan to China, KazMunaiGaz Managing Director Kairgeldy Kabyldin said. "There are future volumes of Kazakh gas that do not have any designated route. With this aim we signed an agreement with China in August of this year on the construction of a gas pipeline from Kazakhstan to China. By the end of the year a contractor to carry out the corresponding investigations determining the technical and economic aspects of this project should be selected," he said at the 13th Kazakhstan International Oil and Gas Conference in Almaty. CHINA'S CNPC CONFIDENT OF ACQUIRING PETROKAZAKHSTAN OCT 13, 2005 BEIJING - CNPC is confident of acquiring PetroKazakhstan (PK), even though Kazakhstan parliament adopted draft bill on Oct 5 to prohibit the transaction, said an official with CNPC. "It is just an act," the official said, adding that the transaction will proceed as scheduled. INDIA'S MITTAL SAYS REBIDDING DECISION AWAITS CLARITY IN KAZAKH LAW OCT 13, 2005 NEW DELHI - ONGC-Mittal combine is awaiting clarity in Kazakhstan law before deciding on making a revised bid for PetroKazakhstan. "Kazakhstan has amended its oil policy and has preemption rights in any deal where foreign companies acquire Kazakh firms. We will wait

for clarity before deciding on the rebid," Mittal Group Chairman and CEO Lakshmi N Mittal told reporters here. DRAGON OIL DOUBLES OIL PRODUCTION IN TURKMEN SECTOR OF CASPIAN OCT 14, 2005 ASHGABAT - Dragon Oil, operating in the Turkmen sector of the Caspian Sea, produced over 681,000 tons of oil in 8 months of 2005, a 1,94-time increase year-on-year, the Ashgabat correspondent of Turkmenistan.ru reports. Oil output rose to 680,000 tons by midSeptember, which is more than for all of 2004 (640,000 tons), says the statement released by the company's Ashgabat office. KAZAKHSTAN AND RUSSIA WORKING TO AMEND CASPIAN TREATY OCT 14, 2005 ASTANA - Kazakhstan and Russia are working on amendments to the interstate treaty on the division of the Caspian Sea bed to facilitate a production sharing agreement on the Khvalynskoye and Tsentralnoye oilfields. "At the level of experts from several ministries, including the relevant ministries of Russia and Kazakhstan, we have worked out a supplement to the 2002 treaty that must be ratified by the Russian State Duma and our parliament," Kazakh Energy Minister Vladimir Shkolnik told a news conference in Almaty. KAZAKHSTAN SEES JAN-SEPT GAS OUTPUT SURGE 34.4 PCT OCT 14, 2005 ASTANA - Kazakhstan produced 19.24 billion cubic meters of gas in the first nine months of the year, up 34.4 per cent year-on-year, including 10.63 billion cubic meters of natural gas, up 38.7 per cent year-on-year. A government source told Interfax that KazMunaiGaz produced 1.153 billion cubic meters of gas in the period, up 26.7 per cent year-on-year, including Ozenmunaigaz with 805.9 million cubic meters, down 4.6 per cent, Embamunaigaz with 122.1 million cubic meters, up 87.4 per cent, and Amangeldy Gas with 224.836 million cubic meters, up 73.5 per cent. TURKMEN-UKRAINIAN TEAMS DISCUSS OIL AND GAS COOPERATION OCT 17, 2005 ASHGABAT - A top ranking Ukrainian delegation headed by Fuel and Energy Minister Ivan Plachkov arrived in Ashgabat on October 11. Accompanying the Minister was his first deputy, Board Chairman of the NJSC Neftegas Ukrainy" (Ukraine Oil and Gas) Alexey Ivchenko. According to the Ukrainian Embassy in Ashgabat, prior to the visit, Plachkov and President Viktor Yushchenko had raised the issue of cooperation with Turkmenistan due to the pressing need to prepare the Ukrainian fuel and energy complex for the fall-winter period, as well balancing the supply of natural gas for the future. INT'L EXHIBITION OIL AND GAS OF TURKMENISTAN TO BE HELD NOV 8-10 OCT 19, 2005 ASHGABAT - The 10th International exhibition Oil and Gas of Turkmenistan and a conference of the same name will be held in Ashgabat, capital of Turkmenistan, from November 8-10. As the Ashgabat correspondent of Turkmenistan.ru reports, the forum was organized by the Chamber of Commerce and the Ministry of Oil and Gas and Mineral Resources of Turkmenistan. CNPC REACHES AGREEMENT WITH KAZAKHSTAN OVER OIL DEAL OCT 19, 2005 BEIJING - China National Petroleum Corp (CNPC), the nation's largest oil producer, yesterday said it had reached an agreement with Kazakhstan over the fate of Canadianregistered oil firm PetroKazakhstan. In order to get the Kazakhstan Government to agree to

CNPC's purchase of PetroKazakhstan, the Chinese firm has agreed to sell State-owned KazMunaiGas part of the Canadian firm. KAZAKHSTAN BANS GAS EXPORTS, EXTENDS BAN ON DIESEL EXPORTS OCT 24, 2005 ASTANA - The Kazakh government has issued a decree extending the current ban on exports of diesel fuel until December 31 and banning gasoline exports from the country until the same date, Energy and Natural Resources Minister Vladimir Shkolnik told a briefing in Astana. "We introduced a ban on gasoline exports. This means that oil refining companies will no longer have incentive to export gasoline outside of the country," Shkolnik said. UZBEKISTAN TEMPORARILY HALTS GASOLINE EXPORTS OCT 24, 2005 TASHKENT - Uzbekistan has temporarily halted gasoline exports, a source at Uzbekneftegaz subsidiary Uznefteprodukt told Interfax. This measure is aimed at saturating the domestic market, which has recently been experiencing a shortage of gasoline, the source said. UKRAINE HAS FAILED TO PAY FOR TURKMEN GAS SUPPLIES: NIYAZOV OCT 24, 2005 ASHGABAT - Turkmen President Saparmurat Niyazov told Ukrainian Fuel and Energy Minister Ivan Plachkov and Chairman of Naftogaz Ukrainy (Ukraine's Oil and Gas Company) Board Alexey Ivchenko, in Ashgabat last week, that Ukraine had not fulfilled its financial obligations for its Turkmen natural gas supplies and implementing investment projects in Turkmenistan. 7"It's not understandable," Niyazov said to Ivchenko. "Every time you come here you promise to pay for the supplied gas with commodities, but we've got nothing! You have so far paid US $8.7 million of the $484 million you owe us." KAZAKH GOVT TO INCREASE STATE PARTICIPATION IN REFINERIES OCT 24, 2005 ASTANA - The Government of Kazakhstan has intentions to increase state participation in the work of refineries, PM of Kazakhstan Daniyal Akhmetov said at the Majilis plenary session on oil prices stabilization. The PM informed of the embargo imposed on petrol export and prolonged motor oil export ban. The Ministry of Energetics and Mineral Resources, KazMunaiGaz JSC are charged to take measures to provide full raw material loading of the Kazakhstan-based refineries. CANADIAN COURT APPROVES CNPC TAKEOVER OF PETROKAZAKHSTAN OCT 27, 2005 OTTAWA - PetroKazakhstan's US$4.2 billion takeover by China National Petroleum Corp. (CNPC) has won court approval in Canada, the company said early Wednesday. Calgarybased PetroKazakhstan said it was pleased with the decision of the Alberta Court of Queen's Bench. RUSSIA'S ROSNEFT PLANS TO SHIP OIL TO CHINA THROUGH KAZAKHSTAN OCT 28, 2005 ASTANA - Russia's state-owned oil producer Rosneft has applied to transport 1.2 million tonnes of oil to China through Kazakhstan in 2006, Sergei Yevlakhov, vice president of the Russian oil pipeline monopoly Transneft, announced in London. Russian crude could be pumped to Kazakhstan via the Omsk-Pavlodar pipeline, a Tatneft spokesman told Interfax. ADB STUDY FAVOURS TWO GAS PIPELINES TO SOUTH ASIA NOV 1, 2005, Ashok Dasgupta, The Hindu

The demand for natural gas in South Asia in future is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, an Asian Development Bank (ADB) expert has said. According to a senior ADB energy specialist, Dan Millison, reserves information from Turkmenistan released some time ago shows a lower-than-expected gas deliverability for a proposed $ 3.3-billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. ADB has been brokering the 1,700 km pipeline project since 2002, promoting it as a win-win example of regional cooperation, a pioneering effort to link gas-rich Central Asia with energy-deficient South Asia through Afghanistan. The project would bring clean fuel at competitive costs to India and Pakistan coupled with the much-needed transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Dauletabad gas field has gross reserves of 1.4 trillion cubic metres. However, production forecasts are lower than expected, causing analysts to doubt that it could meet the proposed target of piping 30 billion cubic metres (BCM) of gas annually to South Asia. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing," said Mr. Millison. "They will need to find gas from other fields to meet pipeline design targets," he said. Meanwhile, a $ 7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700 km pipeline would cost more than double the Turkmenistan scheme but leaves out Afghanistan, where security concerns remain. Gas demand estimate -- "However, with long-term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline," says Mr. Millison. India already imports gas and the demand is expected to soar in the next decade. Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. In fact, Mr. Millison feels that the projected demand in South Asia is so strong that there may be a need for a third pipeline from Qatar or Oman. With the new gas reserves data on hand, as well as a draft security analysis report, the next step is for the project's steering committee to meet and discuss inviting an international consortium of investors to build the pipeline. Turkmenistan is largely a desert country, with proven recoverable natural gas reserves of 71 trillion cubic feet (TCF) (about two trillion cubic metres) and possible reserves of over 200 TCF (about six trillion cubic metres). It is one of the world's largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining. With large gas reserves and a small population, Turkmenistan's export potential is huge, though substantial investments are needed to increase production. Turkmenistan at present pipes most of its gas to Ukraine and Europe via Gazprom, the Russian utility, though it has also a small pipeline to Iran. Even if Turkmenistan settles for current gas prices with India and Pakistan, observers note that it should have some pricing leverage within five years when the project comes on stream. They point out that Pakistan industries and power plants now pay $ 100 per 1,000 cubic metres of gas. Apart from financing the feasibility report for the Turkmen project, ADB financed a study for underground natural gas storage in Pakistan, where storage capacity would help meet local demand peaks in winter and counter possible supply disruptions. KAZAKHSTAN AIMS TO BECOME A LEADING OIL, GAS EXPORTER BY 2012 NOV 7, 2005 ASTANA - Kazakhstan plans to become one of the world's top ten hydrocarbon exporters by 2012, Kazakh President Nursultan Nazarbayev said. "By 2012 Kazakhstan should be one of the top ten exporters of oil and gas in the world," Nazarbayev said at the 21st, extraordinary, congress of the Federation of Kazak Trade Unions in Astana. WORLD BANK TO PROVIDE KEGOC US$100 MLN FOR KAZAKH POWER LINE NOV 7, 2005

ASTANA - The World Bank has approved a loan worth US$100 million for the second phase of construction of the North-South power line in Kazakhstan, the World Bank office in Kazakhstan said in a press release. The money will be provided to national grid company KEGOC under government guarantees for 17 years with a five year grace period on principal. ADB: CENTRAL ASIAN STATES CREATE ELECTRICITY REGULATORS' FORUM NOV 7, 2005, M2 PRESSWIRE BISHKEK, KYRGYZ REPUBLIC - Seven countries today signed a memorandum of understanding establishing a forum of electricity regulators in the Central Asia region. Azerbaijan, People's Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan and Uzbekistan signed the agreement on the sidelines of the Fourth Ministerial Conference on Central Asia Regional Economic Cooperation (CAREC) in Bishkek, Kyrgyz Republic. The CAREC Members Electricity Regulators Forum (CMERF) is designed to help members capitalize on their shared experiences as they seek to reform their power sectors and work towards closer cooperation in meeting power demand in the region and facilitating power exports. "This forum will provide an important opportunity to discuss both the challenges and the very significant rewards involved in power sector reform," says Anil Terway, Director of ADB's East and Central Asia Energy Division. At the conference, the Asian Development Bank (ADB) also released a study, Power Sectors in CAREC Countries: A Diagnostic Review of Regulatory Approaches and Challenges, which provides an overview of the economic conditions and challenges facing power sector regulators in participating countries. The study is intended to help CMERF define its agenda and identify future areas for study, discussion and training. "Most CAREC power sectors face substantial financial difficulties. Achieving credible domestic power sector reform in Central Asia is key to unlocking the massive potential for regional cooperation in energy," says Aashish Mehta, an ADB economist and one of the study's authors. "This will require strong political commitment, improvements in transparency, structural reforms, and inevitably, some tariff increases. To be feasible, reforms will have to be complemented by effective and welltargeted schemes to alleviate their impact on the poor." Once domestic reforms have proceeded adequately to permit power trade to develop organically, CMERF is expected to help facilitate harmonization of member countries' electricity regulations to create opportunities to deepen trade and cross border investment, says Mr. Terway. At its first meeting earlier this year in Beijing, CMERF delegates shared their diverse experiences in dealing with common sector concerns, including corruption and mismanagement at power utilities, the need for tariff increases, regulatory independence, and the potential for pricing of system constraints. Financial support for the establishment of CMERF was provided by the Public Private Infrastructure Advisory Facility, and ADB. ADB will continue to support CMERF studies and meetings to build capacity at electricity regulatory bodies in member states. KAZAKHSTAN, RUSSIA SETTLE GAS FIELD DISPUTE NOV 7, 2005 ASTANA - Kazakh Foreign Minister Kasymzhomart Tokayev has said the dispute over the Imashevskoye gas field lying on the Kazakh-Russian border has been resolved legally in a politically satisfactory manner. In an address to the lower house of parliament he said the border delimitation issue between the two countries in the area of the gas field had been resolved. GAZPROM INTERESTED IN DEVELOPING OIL FIELDS IN TURKMENISTAN NOV 8, 2005 ASHGABAT - Turkmen President Saparmurad Niyazov, Russian Special Presidential Envoy for International Energy Cooperation Igor Yusufov and Gazprom Deputy CEO Alexander Ryazanov discussed cooperation in the oil and gas sphere in Ashgabat. The Turkmen

presidential press service told Interfax that one of the key issues discussed was cooperation on the oil and gas sector - a vital sector for the economy in Turkmenistan. Yusufov and Ryazanov informed Niyazov of Russia's plans to expand its contacts, not only in the traditional gas sector, but also in the oil sector. ''INDUS TRADE CORRIDOR'': WORLD BANK SEES RS 35 BILLION PER YEAR FINANCING NOV 10, 2005, Financial Times Information, KHALID ABBAS SAIF, Business Recorder Pakistan is in dire need of financing to the tune of Rs 35 billion per year for ''Indus Trade Corridor'' for maintaining the current growth rate of GDP. This was the gist of a working paper prepared by South Asia Energy & Infrastructure Unit of World Bank, which is going to be discussed by the WB team with Pakistan Government. ''Indus Trade Corridor'' is a ''gateway'' to Central Asian States and Afghanistan. The ''corridor'' area contributes 80 to 85 percent of GDP and encompasses nearly 80 percentage of urban population living around the ''corridor''. Experts of South Asia Energy and Infrastructure Unit of World Bank contend that Pakistan requires major investment and policy changes and full support of ''Leadership and Management'' to achieve the goal. "The future must not only be conceived, it must be carefully carved", they say. According to the working paper of the study, the ''Indus Trade Corridor'' takes care of Pakistan''s external and internal trade. Presently, two ports are handling 95 percent of its external trade. Two main roads and a main railway line are handling 65 percent of total land freight. Ten dry ports are catering to high-value external trade, while the existing pipelines are carrying six million tons POL and natural gas. Pakistan government is fully cognisant of the importance of transport to economy, but has somehow not been able to focus its vision on supporting trade. An investment of at least Rs 35 billion per year for development of ports, rail and roads for establishment of an efficient logistic network is essential to meet the high-trajectory growth in the economy. World Bank experts have emphasised the need for launching reforms in Pakistan Railways and inclusion of private sector in ports, improvement of TF--especially documentation and legal environment of transport. ''Indus Trade Corridor'' is not just ports, roads, rail, warehouses, dry ports and pipelines. This ''corridor'' should also deal with services, eg shipping and port services, trucking, railways, handling, warehousing, customs, insurance, banking, ICT, freight forwarding etc, which require up-to-date procedures, legislation, regulation, administration, documentation and data processing. They have said that in Pakistan on the one hand the quality for a complete logistic system and the quality of service is poor, while on the other it is also inefficient, which tends to escalate cost of trading very much to the detriment of the national economy. They further pointed out that the container dwell times at Pakistan ports are 11 times higher than those of developed countries and 3 times higher than those of East Asia. Trucking rates for high value commodity traders are much higher than India, Brazil and China where the quality of service is much better. In Pakistan, rail carries less than 5 percent of freight and takes 21 to 28 days to deliver goods to upcountry destinations, which is 4 to 7 times slower than China and US. Can it support 7-8 percent sustained growth? Even at this poor level of service, they added, the ''corridor'' utilisation is more than 80 percent of existing capacity. According to projected forecast, the projected growth would be doubled by 2015 which would require much higher levels of service. On top of that, passenger demand would be competing for available capacity, while Pakistan government is investing five times less than East Asia/China in terms of present rate of GDP. GAZPROM, KAZMUNAIGAS SIGN GAS-TRANSIT AGREEMENT NOV 14, 2005 TASHKENT - Gazprom, Russian gas giant, and KazMunaiGas, Kazakh biggest gas company, have signed medium-term agreement on the transit of Central Asian gas through Kazakh territory. Alexei Miller, head of board of Gazprom, said: "This is the successful result of work with our Kazakh colleagues."

OIL PIPELINE LINKING CHINA, KAZAKHSTAN JOINS TOGETHER NOV 15, 2005 ALATAW PASS - As technicians of Sinopec finished their last welding work in Alataw Pass Monday, the oil pipeline linking China and Kazakhstan joined ends after 18 months unremitting efforts. This marked a perfect accomplishment of the first period of the 1000km oil pipeline project. The joining serves as a firm foundation for the eventual overall completion of this project soon. TURKMENISTAN-AFGHAN-PAKISTAN GAS PIPELINE PROJECT NOV 24, 2005, RASHID ASHRAF Business Recorder Global News Wire According to a senior Asian Development Bank's energy specialist, Dan Millison, reserves information from Turkmenistan released some time ago shows a lower than expected gas deliverability for a proposed $ 3.3-billion TAP (Turkmenistan- Afghanistan--Pakistan) pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. It may be remembered that ADB has been brokering the 1700 km pipeline project since 2002, promoting it as a win-win example of regional co-operation, a pioneering effort to link gasrich Central Asia with energy-deficient South Asia through Afghanistan. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing", said Millison. "They will need to find gas from other fields to meet pipeline design targets," he said. ADB also pointed out that with long-term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline. India already imports gas and the demand is expected to soar in the next decade, Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. Apart from financing the feasibility report for the Turkmen project, ADB financed a study for underground natural gas storage in Pakistan, where storage capacity would help meet local demand peaks in winter and counter possible supply disruptions. Earlier in its study issued in July 2005, ADB discussed that pipeline route would run from Daulatabad in Turkmenistan to Kandahar in Afghanistan to Loralai in Pakistan and then on to Multan. Although the route was not finalised because it is up to the investors to decide the route. Unfortunately, security concerns extend beyond Afghanistan. If the route through western Afghanistan emerges as the best option, the pipeline would cross Balochistan where attacks on oil and gas transmission lines are a common feature. If the alternative option is chosen, the pipeline would cross the North West Frontier Province (NWFP) of Pakistan, which includes the semi-autonomous tribal areas. These regions, most notably the tribal areas, are known for their fierce independence. However, the Pakistan official said that in case of sanctions against Iran for its nuclear plan, Pakistan will immediately move towards the other proposed TAP pipeline and Qatar-Pakistan pipeline. When asked as to which project Pakistan would like to initiate in case of sanctions against Iran, Secretary Petroleum and Natural Resources Ahmad Waqar said that Qatar pipeline is costly and Turkmenistan has so far failed to provide certificate about Daulatabad gas field. The construction of a natural gas export route from Turkmenistan to Pakistan, Russia, Kazakhstan, and Uzbekistan could eventually link in to the eastern gas line. The potential for demand growth in the Asian market is nearly unlimited at prices that both buyers can pay and suppliers can profit. This is in sharp contrast to routes to Europe where the regional producers would likely find intense competition among themselves for a limited market. Russia, Turkmenistan, Kazakhstan and Uzbekistan have all publicly noted their interest in working jointly toward an eastern corridor. In the first stage of development, Turkmenistan is likely to provide most or all of the gas, with incremental supplies coming later from other countries. Since Pakistan and India's demand for gas has nearly no ceiling - at prices around of $ 2 per mmBtu - several suppliers could be considered once Turkmenistan gets the export ball rolling. However, there's no guarantee that Turkmenistan will not try to go it alone, leaving other suppliers with only small regional markets to tap. Blessed with vast gas

reserves, Turkmenistan has been exploring for the last 13 years ways to diversity its gasexport options and to lessen its dependency on the northern export route through Russia. Turkmenistan's gas balance is such that its maximum possible production volume in the years ahead is estimated at approximately 100 billion-110 billion cubic meters per year. Domestic demand totals 15 billion-20 billion cubic meters, the maximum export volume to Iran is 10 billion-13 billion cubic meters, and the remainder is now contracted wholly to Russia. The project would bring clean fuel at competitive costs to India and Pakistan coupled with the much-needed transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Daulatabad gas field has gross reserves of 1.4 trillion cubic metres. However, production forecasts are lower than expected, causing analysts to doubt that it could meet the proposed target of piping 30 billion cubic metres (BCM) of gas annually to South Asia. This 2,700 km pipeline would cost more than double the Turkmenistan scheme but leaves out Afghanistan, where security concerns remain. As regard with the financing of the TAP project, there was a proposal to establish a consortium with the participation of the multilateral agencies. Leading US companies like UNICOL formed a consortium including Delta of Saudi Arabia Itochu of Japan, Inpex of Japan, Hyundai of South Korea and Crescent of Pakistan. Recently, the Russian gas giant Gazprom was also keen to join in. Reports emanating from press indicating the interest of Chinese company named China Petroleum Engineering and Construction (CPECC). It is said that Turkmenistan's gas reserves may be the greatest of the untapped oil and gas reserves in the Caspian region. What differs Turkmenistan from all other gas producers in the region is that it has a significant track record as a proven exporter of gas prior to the break-up of the Soviet Union and in recent years to Ukraine. Granted this export route, Russia has been closed off indefinitely, if not in perpetuity, by Gazprom, who has said on numerous occasions that the days of Turkmen gas transiting through the Russian system are over. But it does leave Turkmenistan with a significant amount of domestic infrastructure to take gas to its borders. Given the transportation difficulties encountered by many aspiring gas and oil exporters in this part of the world, this fact is not insignificant. Turkmenistan is largely a desert country, with proven recoverable natural gas reserves of 71 trillion cubic feet (TCF) (about two trillion cubic metres) and possible reserves of over 200 TCF (about six trillion cubic metres). It is one of the world's largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining. With large gas reserves and a small population, Turkmenistan's export potential is huge, though substantial investments are needed to increase production. Turkmenistan at present pipes most of its gas to Ukraine and Europe via Gazprom, the Russian utility, though it has also a small pipeline to Iran. Even if Turkmenistan settles for current gas prices with India and Pakistan, observers note that it should have some pricing leverage within five years when the project comes on stream. The question is whether Pakistan will choose TAP with so many questions surrounding the availability of sufficient gas reserves for the pipeline in Turkmenistan. The idea of the Trans-Afghan Pipeline was revived by the exhausting efforts of the Asian Development Bank after the defeat of the Taleban regime, but unrest in Afghanistan, the unpredictable behaviour of the Turkmen president, and Russia's total control over the Turkmen gas market render the idea quite unrealistic. ADB's recent report again creates doubts in the minds of many. The question is why Pakistan can't consider seeking new avenues for importing gas from Kazakhstan which has proven natural gas reserves of 65 trillion cubic feet (tcf). Besides that, Uzbekistan and Azerbaijan has 66 and 30 tcf respectively of proven natural gas reservoirs. With its 65 tcf of gas reserves, Kazakhstan certainly has the reserves to be a major gas exporter. More than 40% of the country's reserves are located in the giant Karachaganak field in the north-west. Karachaganak's gas processing is done north of the border at Russia's Orenburg facility, it is Karachaganak's potential of producing 200,000 b/d of oil and condensate that has investors interested in the field. Currently Kazakhstan produces around 600-mmcf/d and imports another 450-mmcf/d,

with no exports in the formula. Imports come into Almaty via Tashkent from eastern Turkmenistan, Kazakhstan has two separate pipeline grids; one that exports Karachaganak gas to Russia and one that import Turkmen gas for use in Almaty. Azerbaijan could play an important role in Caspian gas exports as a key transit point to Turkey. The US Department of State has been pushing the idea that a gas pipeline from Turkmenistan across the Caspian and through Azerbaijan and Armenia and/or Georgia is a viable alternative to the northern Iranian pipeline. Under the scheme, both Azerbaijan and Turkmenistan would sell their gas along the route. The question of political obstacles to such a route remains a serious problem. Uzbekistan is one of the 10 largest gas producers in the world. Since the fall of the Soviet Union, the country has made considerable headway in building its gas production from 4.1-bcf/d, in 1992 to almost 5-bcf/d in 1997. Taking short-term steps to increase production at existing fields, most gas production increases have come from fields in south-east Uzbekistan in older fields such as Shurtan and Kokdumalak, programs include conversion of cars and trucks to run on compressed gas instead of gasoline, and utilisation of gas for feedstock at a new $ 1 billion gas chemicals plant at the Shurtan gas field. CNPC EXPANDS ITS COOPERATION WITH TURKMENISTAN NOV 28, 2005 ASHGABAT - Turkmengaz State Concern and the China National Petroleum Corporation (CNPC) have signed a new contract on delivery of hoisting machinery for the overhaul of gas wells. According to the decree signed by the Turkmen President, the total value of 10 hoisters and spare parts exceeds US$14.5 million. Currently, the oil and gas sector accounts for more than half of investment projects realized by Chinese companies in Turkmenistan. Two 100 million yuan (US$12.4 million) tax credits of the Chinese Government allocated in 1998 and 2000 were spent on the purchase of lifting equipment and drilling machinery. AGIP KCO TO BUILD OIL AND GAS TREATMENT PLANT IN KAZAKHSTAN NOV 29, 2005 ASTANA - Agip KCO plans by June 2008 to complete an oil and gas treatment plant in Atyrau region of Kazakhstan, company manager Daniele Nazzani told reporters. "We plan to complete construction by June 2008, so the plant will be ready to open by that time," he said. Construction of infrastructure needed to build and operate the plant is nearly complete. So far the company has built roads, railroad lines, power lines, water liens, and gas pipelines, he said. Reservoirs for oil storage are already being built. The plant will have three reservoirs with capacity of 80,000 cubic meters each. INPEX NORTH CASPIAN RAISES US$649 MLN FOR KASHAGAN DEVELOPMENT NOV 29, 2005 ASTANA - Inpex North Caspian Sea Oil, which is 45 per cent owned by Japan's Inpex Corp, has received a loan worth US$649 million to invest in the development of Kashagan field in Kazakhstan's sector of the Caspian Sea. The company's partners in the Kashagan project are the operator Eni SpA, Total, Exxon Mobil, Royal Dutch/Shell, and Kazakhstan's national oil and gas company KazMunaiGaz. PIPELINE OPENS IMMENSE PROSPECTS FOR CHINA IN CENTRAL ASIA NOV 29, 2005 BISHKEK - With the final place welded in place on November 13, the new 1000 kilometre transnational pipeline between China and Kazakhstan has opened the region to a new range of possibilities. After 18 months of work, the section of the pipeline connecting China to Kazakhstan through the Altaw Pass has been completed thus preparing the countries for an energy exchange that is expected to meet the needs of up to 20 million tons of oil a year.

UZBEKISTAN TO SUPPLY 750 MCM OF GAS TO KYRGYZSTAN NOV 29, 2005 TASHKENT - Uzbekistan will directly supply 750 million cubic meters (mcm) of gas to Kyrgyzstan in 2006, including 100 mcm for consumers in the country's south and 650 mcm for the country's north. These figures were mentioned during a meeting between Kyrgyz President Kurmanbek Bakiyev and General Director of Kyrgyzgaz Igor Chudinov, who told Bakiyev about the results of a working visit to Tashkent and agreements reached on gas supplies. RUSSIA'S STROITRANSGAZ SET TO INVEST US$200 MLN IN UZBEK PROJECT DEC 2, 2005 TASHKENT - Russia's Stroitransgaz plans to invest US$200 million in a liquefied gas project at the Mubarek gas processing plant in Uzbekistan's Kashkadarya region, said Shukhrat Kasymov, the company's representative in Uzbekistan, at a meeting of business unions from the two countries. Kasymov added that Stroitransgaz and Uzbekistan's national oil and gas holding Uzbekneftegaz intend to sign the founding documents for a joint venture to implement the project at the start of 2006. KAZAKH KEGOC RECEIVES LOANS FOR 2ND NORTH-SOUTH POWER LINE DEC 2, 2005 ASTANA - Kazakhstan's national power company KEGOC has signed an agreement with the European Bank for Reconstruction and Development (EBRD) and Kazakhstan Development Bank for nearly US$140 million in loans to continue construction of a second North-South power line. Under the agreement signed by EBRD President Jean Lemierre and KEGOC President Kanat Bozumbayev, the Kazakh company will receive a loan worth US$87.8 million. KYRGYZ POWER GRID OPENS US$7.6 MLN POWER LINE DEC 2, 2005 BISHKEK - The National Power Grid of Kyrgyzstan has opened a new high voltage power line from Frunzenskaay to Ala-Archa at a cost of 312 million som (US$7.6 million). First Deputy General Director of the Company Ilyas Davydov said the national power company financed the work without borrowing. TURKMENISTAN SETS A NEW HIGHER PRICE FOR ITS GAS DEC 5, 2005 ASHGABAT - From January 1, 2006 Turkmenistan is going to set a new single price of US$60 per 1,000 cubic meters for all Turkmen natural gas exports, Turkmen President Saparmurat Niyazov said at a cabinet meeting. In connection with a considerable increase in international prices of equipment used in gas extraction, Turkmenistan from 2006 will set a price of $60 per 1,000 cubic meters for all importers of Turkmen gas," said Niyazov. December 10 must see completion of talks on gas supply volumes with all Turkmen gas importers, to finalize relevant contracts, he said. CENTRAL ASIAN ENERGY CONFERENCE OPENS IN UZBEK CAPITAL DEC 8, 2005 TASHKENT - The two-day international conference ""Central Asian Energy Market: Trends and Prospects"" opened in Tashkent on December 6. Representatives of eleven countries, including Russia, China, India, Iran, Malaysia and Pakistan, are attending the conference. CHINA-KAZAKHSTAN PIPELINE BEGINS TO PUMP OIL DEC 16, 2005

ATASU - The 960 kilometre pipeline linking China and Kazakhstan began to carry oil to China on Thursday. Kazakh President Nursultan Nazarbayev pushed a button at the headquarters of the national KazMunaiGaz company in the capital, Astana to open the flow from the pipeline that starts in the central town of Atasu, 280 km south of Astana. PETROCHINA LOOKS TO BUY STAKE IN PETROKAZAKHSTAN DEC 19, 2005 BEIJING - PetroChina (SEHK:0857), the nation's biggest oil producer, is in talks with its parent company about buying PetroKazakhstan assets through a joint venture, the Hong Kong-listed oil company announced on Friday. The transaction had been widely expected in the market since PetroChina's parent company, China National Petroleum Corp (CNPC), took over PetroKazakhstan for US$4.2 billion earlier this year. CHINA PLANS TO BUILD LARGE POWER PLANT IN KAZAKHSTAN DEC 20, 2005 ASTANA - China and Kazakhstan are considering constructing the world's largest regional power station at the Ekibastuz coal field in Pavlodar region, a source in the Kazakh power sector told Interfax. "China has proposed construction of an eight thousand megawatt regional power station, which would be the world's largest plant in its class, as well as a high-capacity transmission line to China. A specially created working group has established that this project is viable," the source said. GAZPROM TO BUY MORE CENTRAL ASIAN GAS IN 2006 DEC 20, 2005 ASTANA - Russia's Gazprom plans to buy over 25 billion cubic meters of natural gas from Central Asia in 2006, compared to a planned 19 billion cubic meters in 2005. Long-term agreements envisage an increase to around 80 billion - 90 billion cubic meters in later years, "Stanislav Tsygankov, the head of Gazprom's foreign economic affairs department, said at an energy market conference in Tashkent. KAZAKHSTAN-RUSSIAN GAS COOPERATION DISCUSSED DEC 21, 2005 MOSCOW-ASTANA -ASTANA, Dec 21 Asia Pulse - Kazakhstan Energy and Mineral Resources Minister Vladimir Shkolnik met with chairman of the board of directors of Gazprom OJSC Alexei Miller to discuss bilateral cooperation in the gas sector. They touched upon Kazakhstani gas processing, marketing, deliveries to Kazakhstani consumers. JAPAN'S INT'L FINANCING BANK TO LEND US$50 MLN TO KAZAKHSTAN DEC 28, 2005 MOSCOW - The Japan Bank for International Cooperation (JBIC) on Wednesday will sign a US$50 million financing agreement with the Development Bank of Kazakhstan as part of efforts to support infrastructure development in the oil-rich central Asian nation. The JBIC will grant the loan in cooperation with Mizuho Corporate Bank, with Mizuho's lending portion guaranteed by the JBIC. The Kazakhstan bank will then extend financing to businesses involved in the development of ports and other infrastructure that supports the nation's energy exports. RUSSIA'S GAZPROM TO SET UP JOINT VENTURE CO IN KYRGYZSTAN DEC 30, 2005 BISHKEK - Kyrgyz Prime Minister Felix Kulov and Russian gas giant Gazprom CEO Alexei Miller agreed at a meeting in Moscow to establish a joint venture in Kyrgyzstan, the Kyrgyz government's press service said. The new company will focus on geological exploration,

securing investment for the republic's oil and gas sector and repairing the sector's facilities, the press service. JAPANESE COS KEEN TO TAKE PART IN TURKMEN OIL & GAS PROJECTS DEC 30, 2005 ASHGABAT - Representatives of Japan's largest companies stated their intention to take part in implementation of new projects in the oil and gas sphere in Turkmenistan. This topic was on agenda of the 6th Japanese-Turkmen joint committee on economic cooperation in Tokyo. A top-rank delegation of Turkmenistan led by deputy prime-minister Dortkuli Aydogdiyev participated in the meeting on the instructions by Turkmen President Saparmurat Niyazov. CHINA CHINA'S METHYL ALCOHOL PRODUCTION EXPECTED TO SOAR SEPT 1, 2005 BEIJING - With more and more methyl alcohol projects built especially in regions with rich coal and natural gas resources, China's total annual production capacity is expected to hit 54 million tons, 7.2 times that of current production capacity and 12 times of current output. Statistics showed that China produced 4.406 million tons of methyl alcohol in 2004 and imported 1.359 million tons. Most of the products were used in nitrogen fertilizer production and about 1.5-2 million tons were added to gasoline. CHINA, KAZAKHSTAN SIGN PROTOCOL FOR KAZAKHSTAN'S WTO ACCESSION SEPT 1, 2005 BEIJING - China and Kazakhstan on Wednesday signed a protocol of bilateral negotiations between the two governments for Kazakhstan's accession to the World Trade Organization (WTO). Chinese Vice Premier Wu Yi and visiting Kazakh Deputy Prime Minister Akhmetzhan Esimov attended the signing ceremony of the protocol and other two bilateral documents, including a memorandum of understanding between Chinese and Kazakh petroleum companies and an agreement on the feasibility research of the China-Kazakhstan natural gas pipeline. OVERSUPPLY DRAGS DOWN COAL PRICES IN CHINA SEPT 1, 2005 BEIJING - Domestic coal prices have retreated slightly on the back of a moderate oversupply in the fragmented sector and analysts predict the downtrend will continue through 2007. Prices from major producers in resource-rich areas such as Shanxi, Shandong and Anhui provinces have slid some 30 yuan (US $3.7) to 50 yuan (US$6.2) per ton on average since July, according to industry sources. XINJIANG BECOMES MAJOR THICK OIL BASE IN CHINA SEPT 1, 2005 URUMQI - Xinjiang has acquired an annual thick oil production capacity of 3.2 million tons to become a major thick oil production and processing base in China. PetroChina's Xinjiang Oilfield produces 3 million tons of thick oil annually, making up one third of the total output in China, which are processed by the Karamay Petrochemical, the Urumqi Petrochemical, and Dushanzi Petrochemical each with a throughput of about 2.3 million tons and by Lanzhou Petrochemical, which produces 700,000 tons. CHINA GAS OFFERS GAIL EQUITY IN INNER MONGOLIA PROJECT SEPT 1, 2005 NEW DELHI - China Gas has offered state-run gas utility GAIL India Ltd (BSE:532155)

participation in a petrochemical project in Inner Mongolia, GAIL said here Wednesday. "GAIL (has) received an offer from China Gas Holdings Ltd for participation in a gas based petrochemical project, which is to be established in Humor, Inner Mongolia," GAIL said in a press release. SHELL TO EXPLORE OIL SHALE RESOURCES IN NE CHINA SEPT 2, 2005 BEIJING - Shell (China) Limited, Jilin Guangzheng Mineral Development Co. Ltd and Shell China Jilin Energy Holding Co. Ltd recently signed an agreement to establish a joint venture to explore and develop oil shale resources in Jilin Province, northeast China. The venture, Jilin Shell Oil Shale Development Co. Ltd, involves an initial investment of US$150 million. CHINESE EXPERT WARNS ABOUT PROJECT TO REFINE OIL FROM COAL SEPT 2, 2005 BEIJING - It is not suitable for China to use methanol and methyl ether refined from coal as an alternative fuel for vehicles, said an expert, warning against a rush in launching such project. Cao Xianghong, vice-president of the China Petroleum and Chemical Corporation and academician of the Chinese Academy of Engineering, said that the use of methanol as alternative fuel for vehicles requires specially designed engines and a special transportation and distribution system and the costly marketing system. CHINA'S POWER PLANT EQUIPMENT INDUSTRY RECOVERS SEPT 2, 2005 BEIJING - Power plant equipment board headed by Oriental Electric Motors reported an average year-on-year growth of 60.91 per cent in core business revenue, 193.63 per cent in net profit and 18.27 per cent in returns of net assets in the first half of this year. The Oriental Electric Motors, which suffered a heavy loss of 0.58 yuan per share in 2001, realized a profit of 0.58 yuan per share in the first half of this year. CHINA HUADIAN CORP TO BUILD US$2.1 BLN POWER PLANT IN INDONESIA SEPT 5, 2005 JAKARTA - The China Huadian Corporation and other Chinese investors have pledged to soon build a 2,400 megawatt power generating plant in Indonesia with an investment of US$2.1 billion, Bisnis Indonesia reported Monday. China Huadian President Kuang Dan, Governor of China Development Bank Chen Li Ruo Gu Da and chairman of China Petroleum and Chemical Corp (Sinopec) Chen Tong Hai made the pledge at a meeting with Vice President Jusuf Kalla in Beijing last week. DATANG POWER SET TO ISSUE A-SHARES IN CHINA SEPT 5, 2005 BEIJING - China's Datang Power is planning to list on the A-share market towards the end of 2005 or at the beginning of 2006, according to Datang Manager Zhang Yi. Zhang said his company's asset/liability ratio will fall from 65.81 per cent to 50 per cent if it is listed on the A-share market at the beginning of 2006. CHINA SEES INCREASE IN ITS COAL INVENTORY SEPT 5, 2005 BEIJING - China's total inventory of coal reached 125 million tons by the end of July of this year, an increase of 21.49 million tons or 20.77 per cent over early this year, and rising 13.60 million tons or 12.21 per cent over the same period of last year. The aforesaid figures show that the country's general level of coal inventory was basic normal.

SINOPEC PLANS STAKE IN ANBANG PROPERTY & CASUALTY INSURANCE SEPT 6, 2005 BEIJING - China Petroleum and Chemical Corporation (Sinopec), the country's largest oil refiner, plans to pour 338 million yuan (US$41.7 million) into Anbang Property & Casualty Insurance Co for a 20 per cent stake to become the joint largest shareholder with Shanghai Automotive Industry Corp, an insider told China Daily. "We have reached an agreement with Sinopec and are waiting for approval from the China Insurance Regulatory Commission (CIRC), the industry watchdog," a manager of Anbang Insurance, who did not want to be named, disclosed. CHINESE PETROLEUM SET TO WAIT & SEE IF FUEL PRICE HIKES NEEDED SEPT 6, 2005 TAIPEI - Chinese Petroleum Corp. (CPC) needs to observe the world oil market a bit longer before reaching a decision on whether it is necessary to increase fuel prices in the domestic market, a CPC executive said Monday. When asked how much longer the state-run company needs to wait and see, Lin Cheng-hsiung, vice president of CPC, said there is no limit to the period of time needed to evaluate the world market. CHINA'S NATURAL GAS OUTPUT FORECAST TO TOP 50 BLN CUBIC METRES SEPT 6, 2005 BEIJING - China's natural gas output is likely to top 50 billion cubic metres by the end of this year, according to a forum here. China now boasts a proven natural gas reserve of 43.8168 billion cubic metres. It is distributed in six major gas zones, with a combined annual output of 40.77 billion cubic metres. CHINA TO BUILD TWO HYDROPOWER STATIONS ON THE DADU RIVER SEPT 6, 2005 BEIJING - A feasibility study report on the Jinchuan and Houziyan hydropower stations, with a total installed capacity of 2.56 million kilowatts, has passed expert appraisal. The two power stations are the sixth and ninth stations of a cascade hydropower project on the Dadu River in Sichuan Province. S.KOREA'S KEPCO TO BUILD WIND POWER PLANT IN CHINA SEPT 7, 2005 SEOUL - South Korea's state-run electric power company said Monday it will participate in a project to build a wind power plant in China, signaling its penetration into the world's largest wind power market. Korea Electric Power Corp. (KEPCO) will join hands with China Datang Corp. in building the 49,000 kilowatt wind power plant in Gansu Province. SHARP RISE IN NO. OF FUEL FILLING STATIONS IN CHINA'S NORTHEAST SEPT 7, 2005 HARBIN - Of the 66 new fuel filling stations in Northeast China's Heilongjiang Province, 33 were funded by PetroChina and 24 were by private investors. China lifted the control of investment in the petroleum retail market in 2004 and lowered the threshold for investing in the sector. SHANGHAI ELECTRIC INKS US$111 MLN NUCLEAR POWER EQUIPMENT DEAL SEPT 8, 2005 BEIJING - Shanghai Electric Group (SEG) signed a contract with Qinshan Nuclear Power Station yesterday to supply equipment valued at 900 million yuan (US$111 million) for the latter's second-phase expansion project. The project involves the installation of two 650megawatt nuclear power generating units which are expected to entail 15 billion yuan

(US$1.85 billion) in investment, said Li Yongjiang, chairman of Nuclear Power Qinshan Joint Venture Co Ltd. TWO CHINESE FIRMS TO INVEST US$200 MLN IN MONGOLIA REFINERY SEPT 8, 2005 BEIJING - Two Chinese companies will invest US$200 million to build Mongolia's first oil refinery in its capital city Ulan Bator. According to an agreement signed yesterday in Beijing, CSEIC Fuel Trade Co Ltd and Beijing Jingdeshun Materials Co Ltd will construct the refinery through their joint venture, Heilongjiang Huafu Industrial Co Ltd. CHINA'S CNPC DENIES REPORTS OF SELLING PETROKAZKHSTAN'S SHARES SEPT 8, 2005 BEIJING - China National Petroleum Corp. (CNPC) has denied it is in talks to sell as much as half of its US$4.18 billion acquisition of PetroKazakhstan Inc. for which the company had outbid India's ONGC. "There are no such talks," a spokesman for CNPC's International Department said here while reacting to a report in the Wall Street Journal. CHINA TO INVEST HEAVILY IN POWER GRID CONSTRUCTION SEPT 9, 2005 BEIJING - China's State Power Grid plans to invest about 900 billion yuan (US$111.2 billion) in power grid construction in the next five years, including the addition of 60,000 km of 330kv power transmission lines and 300 million kva of power transformation capacity. With these projects added, the trans-regional power transmission capacity would reach 40 million kw and the amount of electricity to be transmitted would reach 180 billion kwh by the year 2010. S. KOREA'S SK NETWORKS OPENS HOLDING COMPANY IN CHINA SEPT 9, 2005 SEOUL - SK Networks Co., the trading arm of South Korea's SK Group, said Thursday it has launched a holding company in Shenyang, northeastern China, to manage its operations in the world's fastest growing economy. The holding company will be responsible for SK Networks' range of operations in China including complex gas stations and terminals and its fashion business, the company said. CHINA'S CDB OFFERS US$1.23 BLN IN LOANS FOR GREEN PROJECTS SEPT 12, 2005 BEIJING - China Development Bank and China Energy Saving Investment Company signed here on September 9 an agreement, under which the policy bank will grant 10 billion yuan (US$1.23 billion) policy loans in the coming five years to back the borrowers projects. The loans will facilitate a number of major energy saving, environment protection and new energy sources demonstrative projects undertaken by the China Energy Saving Investment Company, such as demonstrative comprehensive economic development zones featuring energy efficiency, wind power and bio-substance power generation industrialization, utilization of rubbish in cities, environment protection of waters, demonstrative industrialization of energy-efficiency building materials, and popularization of gas-fueled motor vehicles. COAL PRICES START TO FALL IN CHINA SEPT 12, 2005 BEIJING S - With Australia BJ coal spot price falling to below US$50, coal in China's Shanxi have also started to fall. China produced 15175.6 tons of raw coal in July this year, up 15.4 per cent year on year. The price fall is attributable to three factors:

CHINA POSTS WORLD'S HIGHEST DEGREE OF ENERGY SELF-SUFFICIENCY SEPT 12, 2005 BEIJING - The degree of self-sufficiency in China's energy use achieved 94 per cent last year, the highest in the world, said Zhu Zhixin, vice minister in charge of the National Development and Reform Commission. China is a large energy consumer and a giant energy manufacturer. In terms of China's energy issue, the import volume of energy should be considered, as well as its energy structure, said Zhu at a forum held here on Friday. CHANGQING OILFIELD VERIFIES MORE PROVEN OIL AND GAS RESERVES SEPT 12, 2005 XINING - Since 2000, PetroChina Changqing Oilfield Company has annually verified proven oil reserves of 110 to 120 million tons and natural gas reserves of more than 50 billion cubic metres, ranking first among China's major oilfields. With its headquarters in Xian, capital of northwest China's Shaanxi Province, Changqing Oilfield Company comprises a dozen of oilfields in the Ordos Basin, which covers Shaanxi, Gansu and Shanxi provinces, and Ningxia Hui and Inner Mongolia autonomous regions in north and northwest China. CHINA TO BOOST NUCLEAR POWER GENERATING CAPACITY TO 40 MLN KW SEPT 13, 2005 BEIJING - China plans to increase its installed capacity of nuclear power to 40 million kw by the year 2020, accounting for 4 per cent of the country's total installed capacity at that time, a senior government official said here Tuesday. China's current installed nuclear power capacity takes up less than 2 per cent of the total installed power generation capacity, compared with the world average of 17 per cent, said Zhang Guobao, deputy director of the State Development and Reform Commission. NO OIL IMPORT PLAN TO FILL RESERVE: CHINESE OFFICIAL SEPT 13, 2005 BEIJING - China will not import crude oil to fill its reserve when the oil price remains high, a senior government official said here Tuesday. "It would be a great financial risk for China to buy oil at the international market for its strategic reserve program as the current global oil price has been fluctuating at a high level," said Zhang Guobao, deputy director the State Development and Reform Commission. CHINA EXPECTED TO PRODUCE 180 MLN TONS OF CRUDE OIL IN 2005 SEPT 13, 2005 BEIJING - China is expected to produce 180 million tons of crude oil in 2005, becoming the fifth largest crude oil producer, a senior government official said here Tuesday. Last year, China produced 175 million tons of crude oil and imported 117 million tons, said Zhang Guobao, deputy director of the State Development and Reform Commission, at a press conference of the State Council Information Office. WEST-EAST PROJECT CHANGES CHINA'S ENERGY CONSUMPTION STRUCTURE SEPT 13, 2005 BEIJING - The west-east natural gas transmission project provided nearly 2 billion cubic meters of natural gas to downstream users in Jan-July this year. The total amount for the whole year would reach 3.6 billion cubic meters, about one-tenth of the national total natural gas consumption. BEIJING ENGAGES IN ICE-STORAGE AIR CONDITIONING R&D SEPT 13, 2005 BEIJING - Beijing has launched research and development (R&D) of ice-storage air conditioning technology, in order to encourage users to adopt advanced new power storage

technology and ease the city's power shortage at the peak load, according to the Beijing Municipal Development and Reform Commission. Beijing's maximum power load reached 10.65 million kw in the summer, growing by 12.9 per cent year on year. Experts here mainly attributed the summer peak to massive power consumption by air conditioners. FRENCH HYDROPOWER GIANT SEES CHINA AS ITS MOST IMPORTANT MKT SEPT 14, 2005 BEIJING - Tianjin Alstom Hydro Co., Ltd (TAH), a leading supplier of hydropower generation equipment and systems in China contributed nearly 30 per cent share of the domestic hydro market. Alstom now owns 99 per cent share of TAH, which was jointly founded with a company under Tianjin municipality in 1995. With the heavy investment and the full technologies transferred from Alstom, TAH has been turned into the world's first class hydropower equipment manufacture enterprise that is capable of making and supplying the largest hydro turbine, up to 900 MW in the world. The factory covers an area of 60,000 square metres. ALSTOM TO EXPAND PRODUCTION AT CHINA'S TIANJIN SEPT 14, 2005 BEIJING - France-based Alstom will expand its Tianjin plant to make it its largest hydropower equipment-making base globally. Alstom, one of the equipment and technology suppliers to the Three Gorges Project, aims to increase its market presence in the country by expanding its manufacturing capacity at the Tianjin plant to overtake its other production bases across the world. BP OPENS LPG CENTRE IN SHANGHAI SEPT 14, 2005 BEIJING - BP China is to start selling bottled liquefied petroleum gas (LPG) in Shanghai for the first time. Shanghai, the country's economic hub, is the first city in the East to have such a facility from the major oil company. CHINA TO ESTABLISH STRATEGIC OIL RESERVES SEPT 14, 2005 BEIJING - China will not buy more crude oil while international prices remain so high, a senior cabinet official said yesterday. While denying that China, a relatively small importer of crude oil, is a threat to the world on account of its increasing energy consumption, Zhang Guobao, vice-minister of National Development and Reform Commission, said the country will research other methods of building its oil reserves. CHINA ABLE TO MAINTAIN OIL OUTPUT OVER NEXT 20 YRS: OFFICIAL SEPT 14, 2005 BEIJING - China, capable of turning out 180 million tons of crude oil yearly in the next 20 years, enjoys a huge potential in developing new oil and gas resources, a senior government official said here Tuesday. The prediction is based on the third general survey of national oil and gas resources by the National Development and Reform Commission (NDRC)recently, said Zhang Guobao, vice chairman of NDRC at a press conference held by the State Council Information Office. CHINA UNVEILS DETAILS OF 168 APPROVED POWER PROJECTS SEPT 14, 2005 BEIJING - China's National Development and Reform Commission (NDRC) unveiled on September 13 the details of 168 power station projects approved since 2004. According to an NDRC announcement, the 168 projects involve a total construction scale of 121 million

kw, of which 60 million kw were approved and kicked off in 2004 and 72 million kw were approved in the first seven months of 2005. CHINA UNLIKELY TO CHANGE OIL PRODUCTS PRICING MECHANISM SOON SEPT 14, 2005 BEIJING - In response to recent hot public discussions on reforming China's oil products pricing mechanism following short supply of oil products in some places in the previous period, Zhang Guobao, vice-minister of the National Development and Reform Commission (NDRC), said here on September 13 that the reasons are complicated and the state should consider the interests of various aspects (in setting finished oil prices). The product oil pricing mechanism is not a simple issue, and thorough and cautious considerations are necessary with regard to this, said Zhang at a press conference of the State Council Information Office. GE TO DEVELOP WIND POWER PROJECT IN NORTH CHINA SEPT 14, 2005 SHIJIAZHUANG - Chengde Yuandaokou Ranch and General Electric of America (GE) recently signed an agreement for the joint development of wind power, according to the project office of the Manchu-Mongolia Autonomous County of Weichang in north China's Hebei Province. It is reported that the wind power project, involving a total investment of US$500 million, will be built in two phases. Work on the first-phase of the project, with an installed generating capacity of 0.5 million kilowatts, will start in the first quarter of 2006. CHINA IMPORTS 83 MLN TONS OF CRUDE OIL IN FIRST 8 MONTHS SEPT 14, 2005 BEIJING - China imported 83.12 million tons of crude oil and 20.48 million tons of finished oil products in the first eight months of this year, up 3.9 per cent and down 19.1 per cent year-on-year respectively, according to latest statistics from China's General Administration of Customs. The statistics also show that during the same period, the imports of coal, iron ore and soybean increased rapidly while that of automobiles and rolled steel continued to fall. CHINA IMPLEMENTS REGULATIONS ON GASOLINE AND DIESEL OIL EXCISE TAX SEPT 15, 2005 BEIJING - Regulations on the Management of Gasoline and Diesel Oil Excise Tax has been put into trial implementation starting from September. Issued by the State Administration of Taxation of China, the regulations did not make any adjustments on the tax rates. CHINA'S HAINAN TO INVEST HEAVILY IN POWER DEVELOPMENT SEPT 15, 2005 HAIKOU - Hainan Province in south China will invest 9 billion yuan (US$1.1 billion) in power development and power grid construction in the 2006-2010 period. According to Hainan Power Grid Company, the province will focus on the development of gas-fired power generation, and also build clean coal-fired power plants, hydropower stations. The province will encourage the development of wind power and nuclear power. OIL PRODUCTS SALES TOP 2.4857 MLN TONS IN CHINA'S XINJIANG SEPT 15, 2005 URUMQI - Northwest China's Xinjiang Uygur Autonomous Region sold a total of 2.4857 million tons of finished oil, including 571,600 tons of petrol and 1.9141 million tons of diesel oil in the first eight months of this year, sources of the regional economic and trade commission disclosed. Sales in August alone were 381,900 tons, including 95,100 tons of

petrol and 286,800 tons of diesel oil, up 3.8 per cent from July and 3.5 per cent year on year. PETROCHINA PLANS TO INVEST UP TO US$12.3 BLN TO EXPAND NETWORK SEPT 15, 2005 BEIJING - China's largest oil and gas producer, Hong Kong-listed PetroChina, plans to invest up to 100 billion yuan (US$12.3 billion) to expand its oil and gas pipelines by 15,000 kilometres over the next five years. The new pipelines will be concentrated in the southwestern, northwestern and northeastern areas of China, with a cross-border pipeline construction also on State-owned PetroChina's budget, said a company statement released by the State-owned Assets Supervision and Administration Commission of the State Council yesterday. HIGHER OIL PRICES SET TO COST CHINA ADDITIONAL US$15 BLN SEPT 15, 2005 BEIJING - If the international oil price rises US $15 per barrel this year, then China will have to pay an additional US $15 billion for buying oil, Niu Li, an economist with the State Information Center (SIC) said Wednesday. China has the world's biggest trade deficit in oil import and export, so the soaring oil price this year has remarkably increased China's international payment, Niu said. BP STEPS UP EXPANSION IN CHINA SEPT 15, 2005 SHANGHAI - UK-based petroleum giant the BP Group founded the BP (Shanghai) LPG Ltd. recently in Shanghai, after taking over the LPG storage and distribution stations and retailing outlets of two local companies. BP is doing LPG business in over 20 countries around the world, and China is one of the most important markets, said Ray Taylor, president of BP Asian-Pacific LPG. U.S. REJECTS N.KOREA'S DEMAND FOR LIGHT-WATER REACTOR SEPT 15, 2005 BEIJING - The U.S. chief nuclear envoy on Wednesday rejected North Korea's demand for a power-generating light-water reactor as inviable, saying that no party in six-nation disarmament talks would be willing to foot the bill. The issue of light-water reactor has emerged as a new sticking point in the six-nation nuclear talks under way in Beijing, along with the North's demand for a right to peaceful use of nuclear technology. CHINESE OIL GIANTS TO PURCHASE ENCANA'S OIL BUSINESS IN ECUDAOR SEPT 16, 2005 BEIJING - Andes Petroleum Corporation, a joint venture of Chinese petroleum companies, has reached an agreement with Canada-based EnCana Corporation to purchase all of its shares in subsidiaries that have oil and pipeline interests in Ecuador, said sources with China National Petroleum Corporation (CNPC) Thursday. According to the agreement signed Tuesday, the Andes Petroleum Corporation, in which both the CNPC, China's largest oil producer and China Petroleum and Chemical Corporation (Sinopec), China's largest oil refiner, hold a share, will buy those assets of EnCana for US$1.42 billion in cash. SHANGHAI TO SET DIFFERENT PRICES FOR USERS OF NATURAL GAS SEPT 16, 2005 SHANGHAI - Shanghai, China's most populous metropolis and leading industrial centre, is working on a plan to set differential prices on natural gas used for industrial and individual residential purposes, said Ge Weichang, general manager of the Shanghai Fuel Gas (Group) Co., Ltd. at the three-day 18th conference of the World LPG Forum opened in Shanghai on

September 15. At present, Ge said, there is basically no price difference for end users of natural gas including industrial users and individual resident users. N.KOREA VOWS NOT TO GIVE UP ITS DEMAND FOR LIGHT-WATER REACTOR SEPT 16, 2005 BEIJING - North Korea said Thursday that it will never give up its demand for light-water reactor, calling it a key to settlement of the ongoing tension over its nuclear program. "In building trust on the Korean Peninsula, the provision of light-water reactor forms its very basis," Hyun Hak-bong, a North Korean delegation member, told reporters at China's state guesthouse Diaoyutai. HILL CALLS N.KOREA'S DEMAND FOR LIGHT-WATER REACTOR "NONSTARTER" SEPT 16, 2005 BEIJING - Six-party talks on North Korea's nuclear weapons program faced uncertainties Thursday after the communist country added a new item to its shopping list: Westerndeveloped power-generating light-water reactors. The chief U.S. negotiator, Christopher Hill, said his country would never accept or even consider the North's latest demand, calling it a "nonstarter." DACHAOSHAN HYDROELECTRIC STATION BECOME THE TOP POWERHOUSE OF THE WEST-TO-EAST POWER TRANSMISSION SEP 16, 2005, Yunnan Television Station Dachaoshan hydroelectric station, the national major project and the Yunnan's backbone power station for West-to-East Power Transmission, generated over 2 billion kWh of electricity annually and transmitted to Guangdong Province. It has become the top powerhouse of West-to-East Power Transmission. The 1,350MW Dachaoshan is the nation's first large hydropower project completed in the 21st century. Since its operation in 2001, the Dachaoshan has accumulated a power generation of nearly 20 billion kWh. After the sixth generating turbine started its operation in 2003, Dachaoshan shared 35% of the Yunnan's electricity transmission to Guangdong Province, and therefore became the powerhouse of transmission. Dachaoshan, as a downstream hydroelectric station of Manwan, also helps speed up the growth of local economy. Until the end of last year, Dachaoshan has paid nearly 500 million yuan as the local revenue. In addition, Dachaoshan is the first large hydropower station that does not need additional investment. The cost of Dachaoshan per unit kWh is less than 6,000 yuan, which is the lowest among the other hydropower stations of the similar size. Meanwhile, Dachaoshan Hydropower Company is the nation's first company that adopts the modern enterprise system. Last year, Dachaoshan company's annual production per capita reached 5.6 million yuan, which is also the top of the nation's power sector. (Translated by Kevin Li) USTDA SUPPORTS POWER DISTRIBUTION EFFICIENCY IN SOUTHERN CHINA SEP 16, 2005 Press Release - U.S. Trade and Development Agency Improving energy efficiency and maintaining reliability to meet regional demands for electricity in five southern provinces in China is the objective of a U.S. Trade and Development Agency (USTDA) grant awarded today to the China Southern Power Grid Co., Ltd (CSG). The $533,682 grant will partially fund a technical assistance program that will assist the CSG, a state-owned integrated electric utility company serving the provinces of Guangdong, Guangxi, Yunnan, Guizhou and Hainan, in upgrading its energy management system (EMS), the central information technology system controlling power generation, dispatch and distribution throughout southern China. The USTDA grant will be used to provide technical assistance to CSG to improve the dispatch of electric power and to develop an on-going plan to promote a more efficient and competitive power industry in China. The technical assistance involves engineering consulting services provided by Utility Consulting

International (UCI), based in Cupertino, California, that will focus on the requirements, procurements and implementation of the EMS and associated metering and communications equipment. In addition to the USTDA grant awarded today, UCI will contribute additional resources toward the completion of this technical assistance program. S.KOREA'S SK NETWORKS WINS DEAL FOR GAS STATIONS IN CHINA SEPT 19, 2005 SEOUL - SK Networks Co., the trading arm of South Korea's SK Group (KSE:003600), has won a bid to build 12 gas stations in the Chinese province of Liaoning, the company said Monday. SK Network's holding company in China recently signed a deal with municipal authorities in Dandong to allow the company to build the gas stations, as well as promising joint projects in the future, according to company officials. CHINA MAKES BREAKTHROUGH IN SUPER-LARGE GENERATING SETS SEPT 19, 2005 WUHAN - With the push of a button Friday morning, Chinese Vice-Premier Zeng Peiyan commissioned another 700,000 kilowatt generating set in the giant Three Gorges Project in central China's Hubei Province. All the fourteen 700,000 kilowatt generating sets in the northern bank power station, which feature high localization rates, have gone into operation by now. S.KOREA, CHINA AIM TO EXPAND COOPERATION IN NUCLEAR FIELD SEPT 19, 2005 SEOUL - South Korea and China will hold a working-level meeting this week to discuss ways to expand cooperation in this key energy field, the government said Monday. The Ministry of Science and Technology said the three-day meeting, to begin Wednesday in Beijing, will touch on 37 agenda items, including the participation of South Korean companies in construction work on future nuclear power plants in China. INDIA'S SUZLON ENERGY TO INVEST US$73 MLN IN CHINA AND US SEPT 19, 2005 MUMBAI - Having carved out a niche for itself within the country, Pune-based Suzlon Energy Limited is all set to register its presence in the overseas by opening manufacturing centres in the US and China at an investment of Rs 3.2 billion (US$73 million). "We will mainly manufacture blades for wind turbine generator in these two facilities which are expected to be operational by September next year," company chairman and managing director Tulsi Tanti said here on Friday. CHINA'S INNER MONGOLIA TO BUILD TWO COAL CHEMICAL PROJECTS SEPT 19, 2005 HOHHOT - Work on construction of Xilinhe coal chemical project, involving a total investment of 9 billion yuan (US$1.1 billion) started recently in north China's Inner Mongolia Autonomous Region. The project is to be jointly built by Qianan Chemical Co. Ltd in north China's Hebei Province and two partners in Inner Mongolia, including the Xingta Mining Co. Ltd. CHINA'S FOURTH BIGGEST OIL COMPANY FOUNDED IN SHAANXI SEPT 19, 2005 XIAN - Shaanxi Yanchang Petroleum (Group) Co Ltd has been founded in Yanan, Northwest China's Shaanxi Province. This is the fourth biggest oil exploitation, production and refining enterprise after PetroChina, SinoPec and the China National Offshore Oil Corporation (CNOOC).

REGIONAL OIL GROUPS UNLIKELY TO APPEAR: CHINESE GOV'T OFFICIAL SEPT 20, 2005 BEIJING - The recent establishment of the nation's fourth largest oil company in Western China does not indicate the government wants to have similar oil groups in other regions, said a senior official from the Ministry of Commerce (MOFCOM). "The consolidation of several small oil firms into one group in western Shaanxi Province last week came out of particular circumstances in that region," Hu Jingyan, director-general of Foreign Investment Administration under the Ministry of Commerce, told an oil and gas forum yesterday in Beijing. CHINA'S REFINERIES OPEN TO JV INVESTMENT SEPT 20, 2005 BEIJING - Foreign companies still have opportunities to invest in China's refinery business, even though the government adopts a policy restricting foreign cash flow into the sector, said a senior official from the Ministry of Commerce (MOFCOM) yesterday. "If these refinery projects (partly invested by foreign companies) meet the government standard, we will approve them," Hu Jingyan, director-general of Foreign Investment Administration under the Ministry of Commerce yesterday told the Oil and Gas 2005 forum in Beijing. CHINA USES O'SEAS INVESTMENT FOR COALBED METHANE D'MENT SEPT 20, 2005 GUIYANG - China has absorbed accumulated overseas investment of US $150 million in yielding coalbed methane gas for commercial use. Up to mid-2005, China had signed 21 coalbed methane product sharing contracts with 10 overseas companies. Nineteen contracts are being implemented, said Sun Maoyuan, general manager of the China United Coalbed Methane Co. Ltd., which has a franchise for cooperation with overseas partners in methane prospecting, development and production. CHINA COAL PRODUCES 49.14 MLN TONS OF COAL IN JAN-AUG SEPT 20, 2005 BEIJING - China Coal Energy Group Corporation, one of China's key state-owned coal enterprises, produced 49.14 million tons of coal in the first eight months of this year, posting an increase of 12.1 million tons or 32.7 per cent year-on-year. China Coal realized sales revenue of 33.1 billion yuan and profits of 3.45 billion yuan in the period, up 30.8 per cent and 96.2 per cent year-on-year respectively. GEA GROUP STRENGTHENS ITS CHINA PRESENCE SEPT 20, 2005 BEIJING - The GEA Group, a technology group focusing on speciality mechanical engineering, has further strengthened its presence in China by opening a new plant yesterday. Energy Technology, an arm of the German firm, has set up the plant in Langfang near Beijing. CHINA'S OIL DEMAND GROWTH EXPECTED TO CONTINUE SEPT 20, 2005 BEIJING - China's demand for oil in the last quarter of this year is expected to continue growing, according to a media report. About 6 per cent growth is expected in the automotive sector. The demand in the transport sector is forecast to grow about 5 per cent. CHINA'S CRUDE OIL OUTPUT FORECAST TO MAINTAIN GROWTH SEPT 20, 2005 BEIJING - Stimulated by high oil prices, China's domestic crude oil output will maintain a relatively fast growth over the coming two to three months, with the monthly crude oil output estimated at over 15 million tons. But crude oil processing will not grow too fast due

to limited profitability, limited growth of processing capacity of crude oil and the high base figure in the same period of last year. CHINA'S OIL PRICE CONTINUES TO RISE, COAL PRICE FALLS IN AUGUST SEPT 20, 2005 BEIJING - China's coal price in August dropped by 1.1 percentage points month-on-month but crude oil price rose by 77.8 per cent year on year. The finished oil price rose by 4.1 per cent month-on-month or by 22.7 per cent year-on-year. NORTHEAST ASIA ECONOMIC FORUM ISSUES SHENYANG DECLARATION SEPT 21, 2005. Text of report in English by official Chinese news agency Xinhua (New China News Agency) BBC Monitoring International Reports SHENYANG - The 14th Northeast Asia Economic Forum issued Shenyang Declaration when it concluded Wednesday [21 September] at Shenyang, capital of northeast China's Liaoning Province. The two-day forum discussed topics such as the blueprints for the future of the northeast Asia, energy markets in the region and the revitalization of northeast China and the regional cooperation in northeast Asia. In Shenyang Declaration, the participants agreed on joint activities to implement a Grand Design for Northeast Asia. It should be recognized as a guidepost to promote the sustainable development of the Northeast Asia as a whole. In the field of energy, the countries in the Northeast Asia should be encouraged to cooperate for the purpose of diversifying the region's supply sources for oil and natural gas, to enhance regional energy security, according to the declaration. The forum is part of the 2005 Northeast Asia Hi-Tech Fair which opened Tuesday in Shenyang. The five-day fair has attracted officials and experts from northeast Asian countries including Russia, the Republic of Korea (ROK), Japan and Mongolia. CHINA UNLIKELY TO INTRODUCE FUEL OIL TAX THIS YEAR: PAPER SEPT 21, 2005 BEIJING - China is unlikely to introduce fuel oil tax this year as officials from various government departments failed to reach a consensus on the move last week, central government officials said. The State Development and Reform Commission (SDRC), which is responsible for the country's oil price regulation, summoned a ministerial meeting on the planned fuel oil tax on Sept. 15, the Beijing-based Economic Information Daily reported Monday. SINOPEC TO ISSUE SHORT-TERM COMMERCIAL PAPERS SEPT 21, 2005 BEIJING - China Petroleum and Chemical Corporation (Sinopec Corp.) held its first extraordinary general meeting (EGM) for the year 2005 on Monday and passed resolutions to issue short-term commercial papers, Sinopec, China's largest oil refiner, announced Tuesday. According to the resolutions, an approval will be given to Sinopec Corp. to issue in one or multiple tranches a short-term commercial paper of an aggregate principal amount up to 10 per cent of the net asset value as shown in Sinopec Corp.'s latest audited consolidated financial statements prepared in accordance with PRC Accounting Rules and Regulations. SINO-CANADIAN ENERGY DEAL SEALED SEPT 21, 2005 BEIJING - China United Coalbed Methane Corp Ltd (CUCBM) signed a production-sharing contract with the Canadian firm AsiaCanada Energy Inc in Beijing yesterday to jointly exploit the coalbed methane resources in Southwest China's Guizhou Province. This was the 22nd such contract that CUCBM has signed with a foreign company, said Sun Maoyuan, the firm's president.

US COAL FIRM PEABODY ENERGY NOW IN CHINA SEPT 21, 2005 BEIJING - Seeing China's huge demand for energy, US-based Peabody Energy, the world's largest private-sector coal company, is looking at opportunities for both coal trading and investment in the country's coalmines. The coal producer, whose products fuel more than 10 per cent of all US electricity consumed, yesterday announced in Beijing that it had officially opened its office in the capital city, to cash in on the country's growing energy needs. INDIA, CHINA, BRAZIL TO DEVELOP HIGH-VOLTAGE DC TECHNOLOGY SEPT 21, 2005 BANGALORE - India along with China, Brazil and South Africa, has decided to work on developing a sophisticated high voltage direct current (HDVC) technology for enabling transmission of power from hydro power resources of North East to the rest of the country, chairman and mangaging director of Power Grid Corporation of India Limited R P Singh said on Tuesday. Speaking to reporters here after a International Council on Large Electric System (CIGRE) Administrative Council Meeting, Singh said "China, Brazil and South Africa also faced a similar problem of uneven distribution of natural resources. Hence such a joint study and project would benefit all the countries since it would greatly cut down on the cost factor as well as ensure safety and reliability," he said. CHINA'S HAINAN TO EXPAND POWER GRID CAPACITY SEPT 21, 2005 BEIJING - China's Huaneng Group Corp. will invest another 2.7 billion yuan (US$333.7 million) to build two more 300,000-kilowatt coal-fired power generating units, which will boost the adjustable installation capacity of the Hainan power grid by nearly 1/3. This is another major move undertaken by the group following its acquisition of the Haikou Thermal Power Co. in 2003 and the Zhonghai Energies Co. in 2004. S.KOREA, JAPAN, CHINA TO HOLD FORUM ON HIGH OIL PRICES SEPT 21, 2005 SEOUL - The big-three oil importers in Northeast Asia are scheduled to hold a forum in Seoul this week to address high oil prices, government officials said Tuesday. According to the Ministry of Commerce, Industry and Energy, representatives from South Korea, Japan and China will meet Wednesday and Thursday to discuss ways of boosting cooperation. CHINA SELF SUPPLIES 94 PCT OF ITS ENERGY CONSUMPTION: OFFICIAL SEPT 22, 2005 BEIJING - At the Rizhao Port, a major coal exporting base in east China's Shandong Province, 25,000 tons of coal are shipped overseas daily, fueling economic growth of neighbouring countries like Japan. This is only a glimpse of the bigger picture of Chinese coal export. Last year, China shipped ninety millions of coal abroad. GAZPROM, CNPC MULL CROSS-BORDER GAS PIPELINE SEPT 22, 2005 BEIJING - OAO Gazprom, the world's biggest natural gas producer based in Moscow, said it is in talks with China's largest oil and gas producer to export gas to China through a crossborder pipeline. Of two possible routes, Gazprom and China National Petroleum Corp (CNPC) are under discussion over "which has the priority," Alexander Medvedev, deputy chief executive officer of Gazprom told reporters at a Beijing press conference yesterday.

CHINA'S TIGHT POLYPROPYLENE SUPPLY SET TO BE EASED BY 2007 SEPT 22, 2005 BEIJING - China's tight supply of polypropylene will be eased by 2007 when quite a number of new projects will be completed and put into production. China has to rely on import to satisfy the domestic demand. CHINA SET TO BUILD 30 LNG VESSELS IN NEXT 10 YEARS SEPT 22, 2005 BEIJING - China will build at least 30 liquefied natural gas (LNG) vessels in the coming ten years for the shipment of imported LNG. China has formed an annual capacity of producing more than 10 LNG vessels costing US$160 million each by 2015, though its first LNG vessels will not be delivered for use until the end of 2007, said Yan Weiping, General Manager of the China LNG Shipping Co., Ltd. FOREIGN SUPERVISORS IMPORTANT IN YANGTZE DAM GENERATING UNITS SEPT 22, 2005 YICHANG - Foreign supervisors have played an important role in ensuring the quality of huge turbine generating units for the mammonth Three Gorges water control project in the middle reaches of the Yangtze, China's second longest river. On the basis of public bidding, China Yangtze Three Gorges Project Development Corporation appointed foreign engineers as supervisors for the designing and manufacturing of its 14 700,000-kw turbine generating units, which have started operation on the northern bank of the Yangtze. CHINA, JAPAN TO MEET OVER GAS FEUD SEPT 23, 2005 BEIJING - China and Japan will meet to settle a feud over claims to undersea oil and gas deposits in disputed waters, a Japanese government official said late Wednesday, the Associated Press reported. The two sides agreed to resume talks late next week on jointly developing reserves that fall within the countries' U.N.-defined maritime economic zones, AP cited Japanese Foreign Minister Nobutaka Machimura as saying. HIGH OIL PRICE NOT TO BLAME FOR LATE FUEL TAX IN CHINA: EXPERT SEPT 23, 2005 BEIJING - The soaring oil price should not be blamed for delaying the implementation of China's fuel tax, said Zhou Dadi, director of the Institute of Energy Research of the National Development and Reform Commission (NDRC) on Thursday. Zhou made the remarks at the 2005 Summit Symposium on China Energy Strategy and Investment held here from Thursday to Friday. CHINA'S YANGTZE RIVER TO GET MORE HYDRO-PLANTS SEPT 23, 2005 BEIJING - State-owned infrastructure and energy investor, State Development & Investment Corp (SDIC), plans to inject some 140 billion yuan (US$17.3 billion) to build at least six more hydro-power plants on the upper reaches of the Yangtze River in China's Sichuan Province. The total installed capacity of the hydro plants, including one the company built in the early 1990s, is expected to reach more than 20 GW (gigawatts), a senior official from the Beijing-based investment company, who declined to be identified, yesterday told China Daily on the sidelines of an energy conference in Beijing. NEW CNOOC OILFIELD COMES ON-STREAM IN CHINA'S BOHAI BAY SEPT 23, 2005 BEIJING - A new oilfield of CNOOC Limited, a subsidiary of the China National Offshore Oil Corporation (CNOOC), has come on-stream in northern China's Bohai Bay recently. At

present the oilfield with nine wells produces 3,200 barrels of oil daily, which is piped to the port city of Qinhuangdao for storage and selling. It is predicted that the peak oil production capacity of the new oilfield may reach 18,600 barrels daily. CHINA EXPORTS 40,000 TONS OF CRUDE BENZENE IN JAN-JULY SEPT 23, 2005 BEIJING - China exported crude benzene valued at US$1.547 million in July 2005. Exports in January-July reached 40,000 tons valued at US$22.134 million, up 179.4 per cent and 314.4 per cent respectively year on year. CHINA HAS NO PLANS TO USE FOREX RESERVES TO BUILD OIL STOCKPILE SEPT 26, 2005 BEIJING - China has no plans to use its soaring foreign exchange reserves to build up a strategic oil stockpile, a central bank official said on Friday. Ji Min, financial market division chief of the research bureau of the People's Bank of China, told a forum that the nation's more than US$700 billion forex reserves are still being held exclusively in non-tangible assets, mainly financial assets and portfolio investments. SOUTH AFRICAN ENERGY COMPANY EYES OPPORTUNITY IN CHINA SEPT 27, 2005 JOHANNESBURG - Sasol, the world's leading producer of coal-to-liquids (CTL), has said it will soon completed a feasibility study on establishing two CTL plants in China which seeks diversified oil supply to fuel its economic growth. The study between Sasol and two Chinese coal companies, Shenhua Group and the Ningxia Coal Group Co. Ltd., looks to the possibility of setting up two plants each with a capacity of 80,000 barrels per day (bpd), an official with the Johannesburg-based company said on Monday. WORK ON CHINA'S LARGEST NUCLEAR POWER PLANT SET TO BEGIN NEXT YR SEPT 27, 2005 GUANGZHOU - The construction of a nuclear power plant in Yangjiang, a port city in south China's Guangdong Province, is expected to begin early next year, said Zhong Yi, vice mayor of the city. It will be the largest nuclear power plant in China. US$134.7 MLN CHINESE HIGH VOLTAGE ELECTRICITY PROJECT BEGINS OPS SEPT 27, 2005 BEIJING - China's highest-voltage electricity transmission pilot project was put into operation by the country's largest grid builder the State Grid Corp of China (SGCC) yesterday in western China to meet surging demand for power distribution across the nation. The 750 kilovolt line, linking Guanting of Qinghai Province with Lanzhou of Gansu Province in the western region, is also one of the world's top transmission projects with the highest voltage built on the highest altitude, the company said. CHINA TO PROMOTE DEVELOPMENT OF RENEWABLE ENERGY SOURCES SEPT 27, 2005 BEIJING - The sustained soaring prices of fossil fuel has turned the attention of the people to renewable energy sources, which is now playing an increasingly important role in ensuring energy supply and sustainable economic development, said Zhang Guobao from the State Development and Reform Commission. Zhang said that China's renewable energy sources is developing at an average annual rate of 25 per cent. CHINA'S 1ST PRIVATE PIPELINE TO IMPORT RUSSIAN OIL NEXT YEAR SEPT 28, 2005

BEIJING - China's first private oil pipeline to import oil from Russia is expected to be completed and start operation next year, sources said. A 30-kilometre-cross-river pipeline will link railway lines between Heihe, a port city in Northeast China's Heilongjiang Province, and Siberia's Blagoveshchensk in Russia. PEABODY EYES CHINA'S COAL MARKET SEPT 29, 2005 BEIJING - Peabody, the biggest private-owned coal company in the world, has recently opened its representative office in Beijing, indicating its strong interest in China's coal market. Foreign capital companies have shifted their interest to China's energy sector, attracted by the strong demand for energy product. SINOPEC JOINT VENTURE TO INCREASE ETHYLENE PRODUCTION SEPT 29, 2005 BEIJING - Asia's largest refiner China Petroleum and Chemical Corp (Sinopec) and its partner, the Germany-based BASF, plan to expand ethylene production at their Nanjing joint-venture by 25 per cent to meet surging demand. "It is definite that we will expand the site's production capacity, and further partnership with BASF," said Wang Tianpu, president of Sinopec, before the formal opening ceremony of their joint-venture in Nanjing, the capital city of East China's Jiangsu Province. The plant actually started operating in June and already plans to increase capacity. ASEAN MEMBERS BECOME MAJOR COAL SUPPLIER FOR GUANGDONG SEPT 29, 2005 GUANGZHOU - South China's Guangdong Province, which is economically developed but short of resources, reported continuous, rapid growth in coal arrivals with import prices rising by big margins. The local customs house said in August alone, Guangdong imported 604,000 tons of coal, representing a year-on-year increase of 21.6 per cent. CHINA'S POWER GRID CONSTRUCTION FACES 5 PROBLEMS: OFFICIAL SEPT 29, 2005 BEIJING - China has preliminarily realized the target of connecting all power grids nationwide together, with the amount of electricity transmitted across regions increasing from 2.3 billion kWh in 2000 to 65 billion yuan in 2004, growing 86 per cent. However, China's power grid construction still faces five problems, according to Du Zhigang, director of the Development and Planning Department of the State Power Grid Corporation. OMAN SEEKS COOPERATION IN OIL EXPLORATION WITH CHINESE FIRMS SEPT 29, 2005 BEIJING - Oman welcomes Chinese firms to further cooperate with their Omani counterparts in oil and gas exploration, petrochemical, metallurgical, mining and fishery sectors in Oman. At the China-Oman trade fair held recently in Beijing, Oman's minister for industry and commerce said that the trade volume between the two countries reached US$4.5 billion in 2004, ranking the third among the Arabic countries. CHINA'S ONSHORE OIL PRODUCTION SET TO REACH 150 MLN TONS IN 2010 SEPT 30, 2005 JOHANNESBURG - China's oil and gas reserves will grow steadily in the coming 20 years and the crude production will reach 150 million tons in 2010, a senior official from PetroChina said here Thursday. China will have a bright prospect of onshore oil development, through the efforts of enhanced exploration and rational development, said Jia Chengzao, chief geologist of PetroChina.

SINO, FRENCH OIL GIANTS JOIN HANDS TO TAP CHINESE OIL RESERVE OCT 3, 2005 BEIJING - China's largest oil and gas producer, China National Petroleum Corp (CNPC), has reached a deal with Europe's largest oil refiner Total in jointly tapping the country's domestic oil reserve in a move to meet its surging demand for energy. The Sino-French oil company alliance will work on the Sulige gas field, located in the Ordos Basin in northwest China, Liu Weijiang, said CNPC spokesman for overseas business, quoted by Saturday's China Daily. CHINA'S 3 GORGES PJT TO GENERATE 100 BLN KWH OF POWER BY YR END OCT 4, 2005 YICHANG - The mammoth Three Gorges water control project will generate a total of 100 billion kw/h by the end of this year, Li Yong'an, general manager of China Yangtze River Three Gorges Project Development Corporation, said on Friday. It currently generates 180 million kw/h of electricity every day. CHINAOIL TO STORE 2.7 MLN BARRELS OF CRUDE AT S.KOREAN FACILITY OCT 4, 2005 SEOUL - A leading Chinese oil firm plans to store 2.7 million barrels of crude at South Korea's Seosan oil facility, the Korea National Oil Corp. (KNOC) said Tuesday. Chinaoil Co. and the KNOC signed a contract last month, which went into effect this month, to permit the Chinese company to store oil at the facility in Seosan, 277 kilometers from Seoul, for one year. CHINESE GOV'T SEEKS TO BUILD ENERGY SAVING SOCIETY OCT 5, 2005 BEIJING - The rise in oil price enables many potential consumers to shift their focus of attention from medium-priced autos to economic and mini ones, said Liu Bin, an auto analyst. According to the prediction of many car producers, this year will mark the "luxurious auto year". However, it seems to be impossible to realize this prediction as the international oil prices continue to stay high. Since Aug. 1, the OPEC oil price had stood above US$55 a barrel, while on Sept. 20-30, the price rose above US$57 a barrel. COAL RICH INDIA, US, CHINA CAN GAIN ENERGY INDEPENDENCE: EXPERT OCT 5, 2005 WASHINGTON - India, China and the United States are among very few countries in the world which can easily attain energy independence by substituting synthetic fuel obtained from petroleum with coal, an expert has said. India, the US and China are rich in coal deposits and can easily attain energy independence by producing synthetic fuel or Synfuel from coal, Governor of Montana and soil scientist Brian Schweitzer said in an article in 'The New York Times'. CHINESE SCIENTISTS PLAN SUPER-EFFICIENT NUCLEAR REACTORS OCT 7, 2005 BEIJING - Chinese scientists are planning super-efficient nuclear reactors that can maximize uranium burn-up and minimize waste in the generation of electricity. If the first experimental reactor, set to be in operation by 2010, is successful, the technology could help relieve China's uranium supply problems as the country accelerates nuclear power plant construction. SINOCHEM JOINS HANDS WITH TOTAL FOR OIL MARKETING JV OCT 10, 2005

BEIJING - Sinochem has recently signed an agreement with French Total Group on setting up a new joint venture to build an oil product marketing network in East China. Upon the agreement, total investment in the new joint venture called Sinochem-Total Oil Products Co., Ltd., reaches US$100 million, with Sinochem taking a 51 per cent stake and Total, 49 per cent. SHANGHAI TO ENCOURAGE USE OF NATURAL GAS AND LPG OCT 10, 2005 SHANGHAI - Shanghai, a booming metropolis in eastern China, will make great effort to promote the use of clean energy sources including natural gas and LPG, according to an announcement by a municipal official at the 18th International LPG Conference. The city government will encourage citizens to use natural gas and LPG and other new forms of energy sources in the future, he said. DATANG POWER TO BUILD THERMAL PLANT IN CHINA OCT 10, 2005 CHONGQING - The Beijing-based Datang International Power Generation Co., Ltd., one of China's five largest power investment groups, will invest 2.7 billion yuan ($US333.8 million) to build the Shizhu Thermal Power Plant in southwest China's Chongqing Municipality. According to sources with the Chongqing Municipal Development and Reform Committee, Datang Power has signed an investment agreement with the Chongqing Municipal Construction Investment Company. CHINA'S NON-STATE TRADERS ALLOWED TO IMPORT MORE OIL PRODUCTS OCT 10, 2005 BEIJING - China's non-state traders will be allowed to import more crude oil and oil products in 2006, according to the import quota published by the Ministry of Commerce of China recently. According to the Ministry of Commerce, non-state traders are allowed to import 14.5 million of crude oil and 9.05 million tons of oil products (including gasoline, aviation kerosene, diesel oil, naphtha, fuel oil and wax oil) in 2006, an increase of 11 per cent and 12 per cent year-on-year. CHINA TO BUILD FOUR SUPER-LARGE POWER PLANTS ON YANGTZE RIVER OCT 10, 2005 WUHAN - China will build four more super-large hydropower plants in the upper reach of Yangtze River in the next 5-10 years, according to the China Three Gorges Project Corporation (CTGPC). The four super-large hydropower plants, namely Xiluodu, Xiangjiaba, Baihetan and Wudongde, will all be sited in the valley of Jinsha River, which, 3,300 kilometers long with 5,100 meters head drop, boasts 112 million kW water resources reserve, 16 per cent of the countrys total. CHINA ISSUES LIST OF TOP 100 COAL MINING ENTERPRISES FOR 2005 OCT 10, 2005 BEIJING - China's Coal Industry Association has issued a list of the top 100 coal mining enterprises basing on their sales revenues in 2004. The list shows that 34 of the 100 enterprises are in East China, while the other 66 are in central and western part China. CHINA TO BUILD ITS FIRST HYDROGEN FILLING STATION IN BEIJING OCT 10, 2005 BEIJING - A hydrogen filling station, the first of its kind in China, will be built at Yongfeng New and Hi-tech Industrial Base in Haidian District, Beijing, at the end of this year. The station will provide the energy to electric buses with hydrogen fuel cells. The electric buses,

developed independently by Chinese scientists, have recently been on display at the China Science and Technology Museum. CHINA'S XINJIANG-LANZHOU OIL PIPELINE FINISHED OCT 11, 2005 LANZHOU - The Xinjiang-Lanzhou oil pipeline has in the main been completed, according to an announcement by the China Petroleum and Natural Gas Pipeline Bureau that undertook the project. The project is a dual pipeline, one for crude oil and the other for oil product. It was undertaken by the EPC model. YUNNAN JINGGU OIL & GAS D'MENT PLANS TO DRILL EXPLORATORY WELL OCT 11, 2005 KUNMING - Yunnan Jinggu Oil & Gas Development company plans to drill a new exploratory well that is estimated to have an exploitable output of 200,000 tons in the western part of China's Jinggu Basin. Jinggu is the only place where oil reserves have been found in Southwest China's Yunnan Province. It is estimated to have a potential reserve of 5.478 million tons, with more than 800,000 tons proven. CHINA TO DEVELOP COMPLETE EQUIPMENT FOR COAL CHEMICAL INDUSTRY OCT 11, 2005 SHENYANG - Complete sets of large equipment for coal chemical industry has been listed as one of the country's 16 key technical equipment to be developed in the coming years. Zhang Guobao, vice-minister in charge of China's State Development and Reform Commission, made the remarks at the 2005 China equipment manufacture forum held recently in Shenyang, capital of northeast Chinas Liaoning Province. CHINA COMPLETES KAZAKHSTAN'S FIRST NATURAL GAS PIPELINE OCT 11, 2005 AKYUBIN - China's first natural gas pipeline in Kazakhstan has been completed and put into service. The 150 kilometre-long pipeline links the Aktyubin oilfield in Kazakhstan with the Bukhara-Ural international gas pipeline so that the natural gas may enter the international market via Russia. LIAONING TO BUILD 450 KVA TRANSFORMER PRODUCTION BASE OCT 11, 2005 SHENYANG - The Huaye Group in Northeast China's Liaoning Province invested 130 million yuan (US $16 million) in a 450 KVA transformer production line, which started construction in the Anshan New and Hi-tech Development Zone in Liaoning Province. The project will mainly produce special transformers for heavy industrial use and is scheduled for completion by 2006. Upon completion, more than 50 kinds of products will be added and the annual sales income will hit 500 million yuan. The products will mainly be sold overseas. SOLAR ENERGY INDUSTRY TO HAVE BROAD PROSPECTS IN CHINA OCT 11, 2005 BEIJING - The solar energy industry is predicted to have broad prospects in China, which has issued the Renewable Energy Law and signed the Kyoto Protocol. The Chinese government has promised that renewable energy will make up 10 per cent of the country's total installed capacity of power generating by 2020. Among them, the photovoltaic system will have a capacity of 450 megawatts (MW). BP EXPANDS RETAIL NETWORK IN CHINA OCT 12, 2005

BEIJING - BP (British Petroleum) announced recently that it would establish BP LPG Company (Shanghai) by purchasing all of LPG depots and service stations of two gas companies in Shanghai. Such scale of purchase is not new to BP, as since 2004, BP has respectively set up BP LPG Company (Foshan) and BP LPG Company (Zhongshan) by acquiring Zhoushan (Guangdong) Gas Co., Ltd. CHINA TO INVEST IN SALWEEN POWER PLANTS, 5 trillions baht to be raised from the stock market OCT 12, 2005 Matichon Daily According to source in the Ministry of Energy, the Thai government led by Prime Minister Thaksin Shinawatra has recently signed an MOU with the Burmese government for the joint investment in the construction of hydropower plant for the Salween dams. The Thai Electricity Generating Authority of Thailand (EGAT) will lead the effort and will persuade Thai private sector to join with them. Initial development plan is being studied, which will enable EGAT to choose 4-5 feasible sites for the power plants with combined capacity of over 10,000 megawatts including in (1) Tanaosri (Taninthayi) in Prachuab Kirikhan province with the capacity of 600 megawatts, (2) the upper border Salween river with the capacity of 5,600 megawatts, (3) the lower border Salween river near Mae Hong Son province with the capacity of 900 megawatts, (4) Hatyi, the border of Tak province with the capacity of 600 megawatts and (5) Tasang dam in Burma. "During the meeting of the Thai-Chinese Economic Cooperation Committee, the visiting Vice Prime Minister of China, Madam Wu Yi, informed the Thai counterparts that Sinohydro Corporation, a leading dam construction company in China is interested in investing in the Salween project and the plan is being explored" said the source. Mr. Krasri Kannasutra, EGAT's governor said EGAT is exploring for the most feasible sites for the construction of the power plants to make it worth the investment. It is estimated that 1 megawatt of power produced may cost 1 million USD for investment, therefore, if the five power plant projects will be implemented at the same time, EGAT must have at least 4 trillions baht (10 billions USD) at their disposal. He admits that the Sinohydro has already met with the Permanent Secretary of the Ministry of Energy, Mr. Cherdpong Siriwit, and has expressed their interest to invest in this project. However, electricity from this project will not be fed to China due to the long distance of the grid system. According to EGAT's governor, Thailand will be the sole buyer of the power. He also said that in terms of investment, hydropower costs the least compared to other fuels including natural gas. Thought each unit of power produced by natural gas costs 5 cents at present, but fluctuation of oil prices may affect its price which is poised to rise incessantly. Meanwhile, hydropower has the potential to meet the current and future demand and the production cost will stay for at least 50 years. "Capitalization in the stock market will pave the ways for possibility to raise funds from other sources" said Mr. Kraisri. CHINA SCRAMBLES TO MEET SKYROCKETING ENERGY DEMAND OCT 13, 2005 HONG KONG - Standard & Poor's said in a report released today that the pressure on China for energy will continue to grow over the next two decades, as the Chinese government tries to meet skyrocketing industrial and consumer demand. According to a Standard & Poor's release, the dramatic economic transformation in China is draining the country's energy reserves, triggering a major hunt overseas for new supplies. CNOOC MAKES NEW OIL DISCOVERY IN CHINA'S BOHAI SEA OCT 13, 2005 BEIJING - China National Offshore Oil CompanyLtd. of China National Offshore Oil Corporation (CNOOC), China's largest offshore oil producer, announced Wednesday that it has made a new oil discovery in China's Bohai Sea area. Rich oil reserves were confirmed in

the LD27-1 oil field when the wildcat LD27-1-1 was discovered with oil layers 34 meters thick. CHINA'S COAL MARKET SEES DOWNTURN IN AUGUST OCT 13, 2005 BEIJING - China's coal market saw a quiet month in August, with the growth momentum of production and transportation slowing down and coal inventories, prices of water-way transport and export rising. The national total coal output hit 1.3048 billion tons in the first eight months of this year, increasing 97.07 million tons or 8.0 per cent year on year. The coal inventory at the end of August reached 135 million tons, 31.49 million tons more than at the beginning of this year, increasing by 30.4 per cent. KAZAKHSTAN WANTS FEASIBILITY STUDY FOR GAS PIPELINE TO CHINA OCT 13, 2005 ASTANA - Kazakhstan will by the end of 2005 select a company to carry out a feasibility study for the construction of a gas pipeline from Kazakhstan to China, KazMunaiGaz Managing Director Kairgeldy Kabyldin said. "There are future volumes of Kazakh gas that do not have any designated route. With this aim we signed an agreement with China in August of this year on the construction of a gas pipeline from Kazakhstan to China. By the end of the year a contractor to carry out the corresponding investigations determining the technical and economic aspects of this project should be selected," he said at the 13th Kazakhstan International Oil and Gas Conference in Almaty. CHINA'S CNPC CONFIDENT OF ACQUIRING PETROKAZAKHSTAN OCT 13, 2005 BEIJING - CNPC is confident of acquiring PetroKazakhstan (PK), even though Kazakhstan parliament adopted draft bill on Oct 5 to prohibit the transaction, said an official with CNPC. "It is just an act," the official said, adding that the transaction will proceed as scheduled. YANGZI-BASF PROJECT TO GARNER MORE INVESTMENT FROM SINOPEC, BASF OCT 13, 2005 BEIJING - Sinopec and BASF, co-investors in the Yangzi-BASF project, recently announced that the two will further invest in building new downstream production equipment and expanding steam-cracking facilities of the project. The Yangzi-BASF project, with a total investment of US$2.9 billion between Sinopec and BASF on the 50-50 basis, contains nine sub-projects including a 600,000 tons/year ethylene project, a 300,000 tons/year glycol project and a 400,000 tons/year low-density polyethylene project. BEIJING'S FIRST GAS-FIRED POWER PLANT BEGINS OPERATIONS OCT 13, 2005 BEIJING - Jingfeng Thermal Power Plant, Beijing's first gas-fired power plant, commenced operations early this month, said Beijing Gas Group Corp., the major gas supplier in Beijing. The power plant, equipped with advanced gas-steam combined cycle generators with a total capacity of 400,000 kWh, will ensure Beijing's electricity security during rush hours. SHENHUA GROUP TO LAUNCH LARGE POWER PLANT IN N.CHINA PROVINCE OCT 13, 2005 BEIJING - Shenhua Energy, under the banner of the Shenhua Goup, one of the biggest power producers in China, will invest 15 billion yuan (US$1.8 billion) in the construction of a large thermal power plant in North China's Hebei Province. According to sources with the group, of the total investment, Shenhua Energy will inject 7.8 billion yuan into its control company, the Hebei Guohua Cangdong Power Plant, for building of a power plant with

generating capacity of 4.8 million kW in Cangzhou of Hebei, With Shenhua having 51 per cent of the stake. CHINA FACING OIL SECURITY CHALLENGE: EXPERTS OCT 14, 2005 BEIJING - Energy experts warned that China's dependence on oil imports will possibly surpass that of the United States by the year 2020 and the country is facing an oil security challenge, Economic Information Daily reported on Thursday. Quoting energy experts attending a symposium in Urumqi, capital of northwest China's Xinjiang Ugyur Autonomous Region, the paper said that in 2020, China's oil consumption will soar to 500 million tons, and 300 million tons have to be imported from abroad. BP, SINOPEC LOOK TO BE PLANNING SOMETHING BIG IN CHINA OCT 14, 2005 BEIJING - Britain-based BP, Europe's largest oil company, is in regular contact with Chinese oil firms and a deal could be afoot. "We have kept close contact with the country's major oil companies such as Sinopec and China National Offshore Oil Corp (CNOOC) for further cooperation, and senior officials from both sides have exchanged visits regularly," said a BP spokesman yesterday in Beijing. CHINA TO DEVELOP MARINE SHIPPING, OFFSHORE OIL PROJECT EQUIPMENT OCT 14, 2005 SHENYANG - Large marine shipping and offshore oil project equipment are among the 16 major technical equipment projects in the years to come, said Zhang Guobao, deputy director of the State Development and Reform Commission. The equipment includes 300,000-ton ore vessels and crude oil tankers, 8000-10000 TEUs (20-foot-equivalent units) container vessels and other high-tech, high value-added vessels. CHINA FACES HIGHER COSTS IN OIL IMPORTS FROM RUSSIA OCT 14, 2005 BEIJING - The move by Russia to raise the oil export duties has hiked the cost of China's oil import from the country. Russia has raised the oil export duty from US$139.9 per ton to US$179.9 per ton. This is the seventh adjustment of oil export duties since February 2004. GUANGDONG'S OIL SHORTAGE EXPECTED TO END IN OCTOBER OCT 14, 2005 BEIJING - The strained gasoline supply in South China's Guangdong Province is expected to be eased completely by mid-October, said experts with Guangdong Provincial Chamber for Oil & Gas. The oil product inventories have reached about 500,000 tons at present and gasoline supply has increased by 50 per cent. CHINESE GOV'T FIRM IN ITS POLICY OF DEVELOPING ETHANOL FUEL OCT 14, 2005 BEIJING - The Chinese government has defied criticism against the extension of ethanol as vehicle fuel and remained firm in its support, said an official with the State Development and Reform Commission (SDRC). It is an irrevocable policy of the government to gradually expand and spread the use of fuel ethanol, he said. CHINA'S COAL INDUSTRY POSTS STEADY GROWTH IN JAN-SEPT OCT 14, 2005 BEIJING - China's coal supply has been generally good this year, as the coal inventory increased, prices declined and arrearage for coal went up. China's output of raw coal

reached 1.43 billion tons in the first three quarters of this year, an increase of 109 million tons or up 8.3% year on year. IRAN CONSIDERS BECOMING "RELIABLE" ENERGY SUPPLIER FOR CHINA OCT 17, 2005 BEIJING - Visiting Iranian Foreign Minister Maouchehr Mottaki said Iran will continue to strengthen energy cooperation with China and become a "reliable" energy supplier for the country. Mottaki made the remark at a press conference here Friday at Iranian embassy in Beijing. CHINESE FIRMS SET TO IMPORT MORE COAL FROM VIETNAM OCT 17, 2005 HANOI - Chinese companies are intensifying import of Vietnamese coal amidst Vietnam's plan to raise prices of coal products in 2006, according to the Trade Information Center under the Vietnamese Trade Ministry on Monday. The Chinese firms are estimated to import some 1.5 million tons of coal via border gates this quarter, mainly to fuel power plants in some of China's southern localities. CHINA'S FOREIGN OIL DEPENDENCY FORECAST TO BE GREATER THAN US OCT 17, 2005 URUMQI - China's foreign oil dependency would be greater than the United States by the year 2020, some energy experts predict. At a recent symposium held in Urumqi, the experts said that China would face grave challenges in oil security. CHINA MOVING FOCUS OF ITS ENERGY STRATEGY TO WESTERN AREA OCT 17, 2005 BEIJING - Western China will become a hot spot of the new round of energy development as the country is fast moving the focus of its energy strategy to the area. Coal mining began to pick up in 2000 in the coal producing city of Yulin of Shaanxi Province and its coal output has been increasing at an annual rate of 10 million tons to reach 81 million tons in 2004. BP, SINOPEC LOOK TO BE PLANNING SOMETHING BIG IN CHINA OCT 17, 2005 BEIJING - Britain-based BP, Europe's largest oil company, is in regular contact with Chinese oil firms and a deal could be afoot. "We have kept close contact with the country's major oil companies such as Sinopec and China National Offshore Oil Corp (CNOOC) for further cooperation, and senior officials from both sides have exchanged visits regularly," said a BP spokesman in Beijing. EXPERTS DISCUSS DEVELOPMENT OF SOLAR VOLTAIC POWER IN CHINA OCT 17, 2005 SHANGHAI - Experts and entrepreneurs from 19 countries and regions gathered at the Shanghai International Conference Center to discuss the development of solar voltaic power in China. Chinese and foreign experts predict that solar voltaic power will become a major source of energy by 2050. PETROCHINA ENJOYS 5.3 PCT RISE IN JAN-SEPT OIL PRODUCTION OCT 18, 2005 BEIJING - PetroChina Company Limited announced Monday that during the first three quarters of 2005 it saw a total output of 722 million barrels of oil equivalent, an increase of 36.3 million barrels or 5.3 per cent year on year. In the third quarter of 2005, the Company

continued to increasecrude oil and natural gas production, with crude oil output reaching 198 million barrels and marketable natural gas output achieving 257 billion cubic feet. RUSSIAN EXPORTS OF CRUDE OIL TO CHINA VIA RAIL UP 21.8%, JAN-SEP OCT 18, 2005 MOSCOW - According to statistics recently released by Russian Railways Co., Russia exported 5.7 million tons of crude oil to China via railway transportation in the first three quarters of this year, an on-year surge of 21.8 per cent. Naushki, a railway port on the Russian-Mongolian border, transported 1.98 million tons of Russian crude to China in the three quarters, up 3.9 per cent compared with the same period in 2004. Zabaykalsk, a railway port on the Sino-Russian border, handled 3.72 million tons of exports to China in the same period, increasing 34 per cent year on year. SHANGHAI TO SPEND US$989 MLN IN REBUILDING POWER GRID OCT 18, 2005 BEIJING - Shanghai will spend 8 billion yuan (US$988.9 million) in rebuilding its power grid in the next two years. According to a plan, a 500kv Sijing transformer station expansion project would start soon. A 500-kv World Fair substation in the city center is expected to start before the end of this year. 55 other substation projects with capacities ranging from 110 kv to 35kv have also been scheduled for completion before the peak loading period of next summer. CHINA TO PUMP US$5.6 BLN INTO WESTERN OIL, PETROCHEMICAL BASE OCT 18, 2005 BEIJING - China is to inject 45 billion yuan (US$5.6 billion) into building a complete petrochemical chain in the western part of the country. Of this amount, 20 billion will go to Sichuan for building a 800,000-ton ethylene project and 25 billion will go to Chongqing for building a number of petrochemical enterprises, which will use the products of the 800,000ton ethylene project. These projects will form a complete industrial chain. CHINA'S PETROCHEMICAL PRICES LARGELY STABLE IN Q3 OCT 19, 2005 BEIJING - After fluctuations in the first half of this year, petrochemical product prices in China tended to stabilize in the third quarter, according to the Price Monitoring Center of the National Development and Reform Commission, a governmental market research body that regularly conducts nationwide market monitoring missions. In the third quarter, highpressure polyethylene (film 1F7B) price averaged 11,570 yuan/ton (US$1,430), decreasing 4.56 per cent compared with the average price in the first half of the year and down 1.26 per cent year-on-year. CHINA SEEKS TO RAISE RATIO OF RENEWABLE ENERGY USAGE OCT 19, 2005 BEIJING - China is determined to restructure its energy mix, aiming to raise the ratio of renewable energy usage in the country's total consumption from the current 7 per cent to 13 per cent by 2020. Zhang Guobao, vice-minister of the National Development and Reform Commission, said China regards the exploration and utilization of renewable energy as a top priority in its overall strategy and will adopt preferential policies to speed the sector's development. CHINA'S CNOOC TO DEVELOP OILFIELDS WITH US FIRM OCT 19, 2005 BEIJING - The nation's third largest oil producer, China National Offshore Oil Corp (CNOOC), yesterday signed agreements with Texas American Resources Company (TARC) to explore

two offshore areas in the eastern South China Sea. The two companies signed a production sharing contract for Block 03/27 and a geophysical agreement for Block 28/20. Under the terms of the agreement, TARC will fund all the exploration costs and CNOOC will have a 51 per cent share in the development and production of the areas after any commercial discoveries, a TARC statement said. CNPC REACHES AGREEMENT WITH KAZAKHSTAN OVER OIL DEAL OCT 19, 2005 BEIJING - China National Petroleum Corp (CNPC), the nation's largest oil producer, yesterday said it had reached an agreement with Kazakhstan over the fate of Canadianregistered oil firm PetroKazakhstan. In order to get the Kazakhstan Government to agree to CNPC's purchase of PetroKazakhstan, the Chinese firm has agreed to sell State-owned KazMunaiGas part of the Canadian firm. INDIA-CHINA HYDROCARBON COOP TO MAKE "FORMIDABLE PRESENCE": MIN OCT 19, 2005 SHANGHAI - The coming together of India and China in hydrocarbons sector will constitute a "formidable presence" in the global hydrocarbons scenario, Minister for Petroleum and Natural Gas, Mani Shankar Aiyar has said. "Given the technical, human and financial resources available in our companies at present, their (companies of India and China) coming together will constitute a formidable presence in the global hydrocarbon scenario," Aiyar says in 'India & China: Partnership in Energy Security,' a newly-released publication issued by the Ministry of Petroleum and Natural Gas here. The release coincided with the third 'Made in India' (MII) show where major Indian hydrocarbon companies are represented for the first time under one umbrella. MULTINATIONALS SET FOOT IN CHINA'S POWER PLANT EQUIPMENT MARKET OCT 21, 2005 GUANGZHOU - A Sino-Mitsubishi gas turbine parts joint venture in Guangzhou has recently been put into operation recently. Its sales volume is expected to reach about 8 billion Japanese yen (US$69 million) by 2010. CHINESE EXPERT URGES ENVIRONMENT-FRIENDLY, ENERGY-EFFICIENT CARS OCT 21, 2005 BEIJING - China's motor vehicles consume 28 per cent of total domestic oil and their fuel oil efficiency is 30 per cent lower than the world average, said Ye Rutang, deputy director of the Environment and Resources Protection Committee of NPC. He told the China Automobile Electronics Industry Development Forum recently that the government should produce new tax policies, new technical standards and subsidies to provide incentives to R&D of new technologies and the development of new forms of energy, which is the orientation of the development of China's automotive industry. CHINA'S DC/DC EXCHANGER OPENS WAY TO MASS PRODN OF FUEL CELL CAR OCT 24, 2005 CHANGSHA - The DC/DC exchanger developed by the Zhuzhou Electric Locomotive Research Institute under the banner of China South Locomotive and Rolling Stock Industry (Group) Corp. (CSR), has opened the door to mass production of fuel cell car. The new gadget features high power density, high efficiency, good dynamic property, suitable for fuel cell cars that require small size, light weight, big power and high efficiency. CHINA BEGINS BUILDING US$593 MLN COAL-TRANSPORTING RAILWAY OCT 24, 2005

SHIJIAZHUANG - Construction of the coal shipping Qian'an-Caofeidian railway started Friday in north China's Hebei Province The 213 kilometre line will be linked with the DatongQinhuangdao railway to relieve the pressure on the railway which specializes in transporting coal produced in Shanxi Province to the sea port of Qinhuangdao. CHINA'S ENERGY SAVING TO GENERATE BILLIONS OF YUAN: ANALYSTS OCT 24, 2005 BEIJING - China's long-term energy conservation and renewable energy development blueprint will generate an investment worth hundreds of billions of yuan within the following five years, senior analysts with the National Development and Reform Commission (NDRC) on Friday told an energy forum hosted by China Daily. China, the world's second-largest energy consumer after the United States, plans to reduce its energy costs per unit GDP growth by 2010 from the current level, aimed at an energy-saving and environmentallyfriendly society, said the proposal of the 11th Five-Year Programme (2006-10) detailed recently by the central government. CHINA'S XILIN GOL LEAGUE BOASTS LARGE PROVEN COAL RESERVES OCT 24, 2005 HOHHOT - Abounding in rich coal resources, Xilin Gol League located in north China's Inner Mongolia Autonomous Region boasts proven and forecast coal reserves of 188.28 billion tons, including mining reserves of 72.2 billion tons. It is reported that the majority of the coal reserves in the league contains low sulphur and phosphorus, and is quality coal for power and chemical industries. CHINA STEPPING UP ENERGY LEGISLATION OCT 24, 2005 BEIJING - China is stepping up energy legislation, according to Xu Dingming, director of the Energy Bureau of the National Development and Reform Commission (NDRC), at the 2005 forum on China's investment in energy. He said that China will issue the Energy Law as quickly as possible, amend the Electric Power Law and the Coal Law, and draft the Law on Petroleum and Natural Gas. CNOOC TO SEARCH FOR OIL IN SIX BLOCKS OFF KENYAN COAST OCT 24, 2005 BEIJING - CNOOC (China National Offshore Oil Corporation) has concluded its negotiations with the Kenyan government on oil exploration in the six blocks off the coast of Kenya in the Indian Ocean. An official contract will be signed in mid-November this year, according to the Kenyan Ministry of Energy. CHINA'S COAL OUTPUT FORECAST TO TOP 2 BLN TONS THIS YEAR OCT 25, 2005 BEIJING - China's coal output will exceed two billion tons this year, doubling the output in 2000, predicted Pu Hongjiu, vice chairman of the China Association of Coal Industry (CACI) on October 24. China's accelerated development of industrialization and urbanization have fueled the sustained growth of energy consumption, Pu noted in the China-Australia Coal Summit. CHINESE CARRIERS TO RAISE FUEL SURCHARGE FEE ON INT'L ROUTES OCT 25, 2005 BEIJING - Chinese mainland airline companies will raise the fuel surcharge fee on international routes, due to the high oil price, according to sources from the General Administration of Civil Aviation of China (CAAC). Each passenger should pay US$25 instead of the original US$12 from the mainland to Asian nations. Passengers who travel from the

mainland to Europe, America, Oceania and the Middle East should pay US$40 instead of the original US$20. 1ST NATURAL GAS PIPELINE IN CHINA'S SHANXI PROVINCE BEGINS OPS OCT 26, 2005 BEIJING - The first natural gas pipeline in north China's Shanxi Province has begun operations. The pipeline starts in Linfen of Shanxi Province and runs 130 kilometres to end in Hejin. It is designed to transmit 150 million cubic metres of natural gas annually. CHINESE INSTITUTE DEVELOPS SOLAR CELL MANUFACTURING EQUIPMENT OCT 26, 2005 CHANGSHA - The No. 48 Research Institute of the China Electronics Technology Group Corp. (CETC) has recently developed Plasma Enhanced Chemical Vapor Deposition (PECVD) and other equipment for making solar cells, Metal Organic Chemical Vapor Deposition (MOCVD), other photoelectric devices and bell-cover furnace and other energy-efficient industrial kilns and furnaces. The institute is the only PECVD equipment supplier in China. It can also provide most other equipment for the manufacture of solar cells, including etching machines, diffusion furnaces and alloy furnaces. ANALYSIS - CHINA'S INPUT-OUTPUT RATIO IN ECONOMIC GROWTH OCT 26, 2005 BEIJING - In recent years China has paid much importance to the output indicator of GDP in its five-year economic plans while the indicator of energy and resource cost spent in creation of GDP has been ignored. Now, this situation is about to end: the country's 11th Five-Year Program is to put forward for the first time the target indicator for energy consumption reduction on unit GDP. CHINA'S TIGHT ENERGY SUPPLY EASING OCT 27, 2005 BEIJING - There are already key signs that China's tight energy supply is beginning to ease: nationwide coal inventory by the end of September increased by 30 per cent from that at the beginning of the year; product oil inventory at CNPC and Sinopec, China's Big Two oil suppliers, have also begun to increase. Speaking at a news release here on October 26, Ma Liqiang, vice secretary general of the National Development and Reform Commission (NDRC), attributed the better situation mainly to steady supply increases and expansion in transportation capacity. CHINA'S COAL GAS RESOURCES EQUAL TO THAT OF NATURAL GAS OCT 27, 2005 BEIJING - China's gas resources at coal mines are estimated to reach 31 trillion cubic metres, equal to that of the nation's total natural gas resources, according to Xu Dingming, director of the Energy Bureau of the National Development and Reform Commission (NDRC). Of the total, the resources with good development prospects are estimated at 16 trillion cubic metres, Xu said at an international conference on coal gas utilization here on October 26. CHINA'S EXPORT OF ETHANOL SURGES IN JAN-SEPT OCT 27, 2005 TIANJIN - Affected by constant hikes of oil price on the international market, China's export of ethanol processed from crops has surged. In the north China port of Tianjin alone, the ethanol export volume in the first three quarters hit 31.23 million litres, valued at US$12 million, up 2-fold and 2.5-fold respectively over the figures for the same period of last year, according to Tianjin Customs.

BEIJING FORUM ON INVESTMENT IN GAS-FUELED POWER TO BE HELD DEC OCT 27, 2005 BEIJING - An international forum on investment in power generation using natural gas as fuel will be held in Beijing on December 14 and 15 this year, according to the organizers. The organizers are Beijing Global Huaneng Consulting Co., Ltd. and Beijing Oil Online Information Technology Co., Ltd. CHINA'S POWER CONSUMPTION FORECAST TO HIT 2,456 BLN KW THIS YR OCT 28, 2005 BEIJING - China's total power consumption this year will reach 2,456 billion KW and power shortages in the fourth quarter will ease, according to China Federation of Power Enterprises. The federation announced on Oct. 27 that it expects power consumption will grow 13 per cent this year as compared with the previous year. AGRICULTURAL BANK OF CHINA TO PROVIDE CREDIT LINE TO COAL GROUP OCT 28, 2005 JINAN - The Agricultural Bank of China and Yankuang Group in east China's Shandong Province have recently signed an all-round cooperation agreement. Accordign to the agreement, signed by Zhang Yun, deputy governor of the agricultural bank, and Geng Jiahuai, chairman of Yankung Group, the agricultural bank will provide the Yankuang Group with a total credit line of 10 billion yuan (US$1.2 billion) over the coming two years. CHONGQING LEADS CHINA IN NATURAL GAS VEHICLES, INFRA OCT 28, 2005 CHONGQING - Chongqing Municipality, in southwest China, has become China's largest natural gas vehicle (NGV) industrial base, said Li Kaiguo, director of the State Gas Vehicle Engineering Technoloyg Research Center, recently. By the end of September this year Chongqing had 24,371 natural gas vehicles, about one-sixth of the country's total. Chongqing and Chengdu, capital of southwest China's Sichuan Province, are the two cities with the largest number of NGVs in China. CHINA HUANENG TO JOIN ZERO-EMISSION FOSSIL FUEL POWER PLANT PJCT OCT 28, 2005 BEIJING - China Huaneng Group (CHG) has announced that it will join in building the world's first zero-emission fossil fuel power plant in the United States, according to an agreement signed here on October 27. The US$1 billion project, initiated by the US Department of Energy, will have the participation of a 12-member industrial consortium including CHG, the only Chinese participant. RUSSIA'S ROSNEFT PLANS TO SHIP OIL TO CHINA THROUGH KAZAKHSTAN OCT 28, 2005 ASTANA - Russia's state-owned oil producer Rosneft has applied to transport 1.2 million tonnes of oil to China through Kazakhstan in 2006, Sergei Yevlakhov, vice president of the Russian oil pipeline monopoly Transneft, announced in London. Russian crude could be pumped to Kazakhstan via the Omsk-Pavlodar pipeline, a Tatneft spokesman told Interfax. DAM WON’T LOWER RATES IF LOAN INTEREST IS HIGH OCT 28, 2005, The Cambodia Daily The planned Kamchay hydro-electrict dam in Kampot province may not lower electricity cost significantly in Cambodia unless the Chinese company the government contracted to build the plant can secure a low interest loan in China, officials said Thursday. The Cambodian government has also become involved in loan negotiations between the Chinese contractor

Sino Hydro and China Eximbank, the officials said. Sino Hydro beat out China Guodian corp for the project in May after three other copanies, including one from Canada and one from Japan, dropped out of the bidding. Ty Norin, head of the Electricity Authority of Cambodia, said that China Eximbank has offered Sino Hydro a $270 million loan at 6 percent interest to build the Kampot province dam. The company had sought a 2 percent interest loan. Minister of Industry, Mines and Energy Suy Dem said he has send a formal request to Eximbank to negotiate on lowering the interest rate for the company. â?oIf the interest rate is high, the company will sell electricity at a high price too,â?• Suy Sem said. Ty Norin said he could not reveal the price at which the government is seeking to purchase electricity. The Kamchay dam is expected to generate 180 megawatts of electricity , which it will sell to Electricte du Cambodiage in Phnom Penh. China Eximbank, wholly owned by the central Chinese government, is the sole lending bank for Chinese government concessional loans, according to the bankâ?Ts Web site. Bun Narith, the deputy director of the hydro electric department at the ministry, said in May that the Kamchay dam will cost $170million to construct while$100million will be spent on preliminary studies. Kampot Governor Puth Chandarith said he has not yet seen any activity at the Kamchay site. CHINESE OIL GIANT REPORTS 10.12 PCT RISE IN JAN-SEPT NET PROFIT OCT 31, 2005 BEIJING - China Petroleum and Chemical Corporation (Sinopec) reported Friday a net profit growth of 10.12 per cent in the first three quarters of this year, despite an operating loss in the refining sector of 7.926 billion yuan (US $982.4 million). Sinopec saw its income from principal operations for the first three quarters of 2005 reach 576.99 billion yuan, up 38.14 per cent on-year, and net profit hit 26.48 billion yuan, up 10.12 per cent on-year. CHINA OPENING UP ITS COAL SECTOR TO FOREIGN INVESTORS: OFFICIAL OCT 31, 2005 TAIYUAN - Another foreign firm has been granted cooperation with three coal mines in north China's Shanxi Province, a provincial commerce official has said, indicating China's substantial effort to open up its coal industry to foreign investors. Although the joint venture program is yet to get official approval by the Chinese Ministry of Commerce, foreign investors will no longer find policy barriers to enter the country's coal industry, said Zhang Jitang, director of the Foreign Investment Department with the Shanxi Provincial Department of Commerce. CHINA'S MAJOR ENERGY FIRMS SEE SLOWER PROFIT GROWTH IN JAN-SEPT OCT 31, 2005 BEIJING - The growth in the profit of China's major state-owned electricity, coal and oil and petrochemical companies declined in the first nine months this year, according to figures released by the State-Owned Assets Supervision and Administration Commission on Sunday. In the nine months, the profit of the 15 major state-owned electricity companies approached 39 billion yuan (US$4.8 billion), up 10.7 per cent year on year. The growth rate was 2.3 percentage points lower than in the January-June period. CHINA'S GENERATING CAPACITY RISES 13.4 PCT, JAN-SEPT OCT 31, 2005 BEIJING - China's national generating capacity rose 13.4 per cent year-on-year in the first nine months of this year to 1,773.983 billion kilowatt hours (kwh), said sources with the China Electricity Council. Of the electricity generated in the first three quarters, hydropower accounted for 273.603 billion kwh with a year-on-year rise of 21 per cent, according to statistics with the council.

NORWEGIAN COMPANIES EYE CHINA'S ENERGY DEMAND NOV 1, 2005 BEIJING - Norwegian companies are making moves on China in order to cash in on the country's energy demand and help solve its environmental problems. A two-day conference addressing China's energy and environmental issues was held last week in Langesund, a town 170 kilometres from Oslo. SINOPEC BUILDING NEW OIL REFINERY IN HAINAN NOV 1, 2005 SHANGHAI - Sinopec's 8 million-ton oil refinery project is proceeding in the Yangpu Development Zone, in China's southern-most island province of Hainan. Started in April 2004, the project is scheduled for operation in June 2006. OFFSHORE WIND POWER REMAINS UNTAPPED IN CHINA: EXPERT NOV 2, 2005 BEIJING - The development of offshore wind power remains unfulfilled in China, with an estimated 750 million kW in wind energy reserves remaining untapped, according to Luo Yong, climate expert and deputy director of the State Climate Center, speaking at the World Meteorological Organization (WMO) Technical Conference on Climate as a Resource. Winddriven power generating has been developing at an unexpected speed worldwide over recent years, with the global capacity of installed wind-driven generators jumping by 35.7 per cent annually over the past five years, according to Luo. SINOPEC HAS NO PLAN TO FURTHER PRIVATIZE LISTED UNITS NOV 2, 2005 BEIJING - Sinopec has so far no plan to further privatise its listed subsidiaries, Zhang Jiaren, vice president of the company said during a recent Sinopec global telephone meeting. PetroChina announced on Oct. 28 that it would buy out three listed units: Liaohe Jinma Oilfield Co. Ltd., Jinzhou Petrochemical Co. Ltd. and Jilin Chemical Co. Ltd. CHINA ISSUES NEW LICENSE MANAGEMENT RULES FOR POWER SECTOR NOV 2, 2005 BEIJING - Any unit or individual intending to engage in power generation, distribution and transmission must obtain licenses, according to regulations on the management of licenses for power operations issued recently by China's State Power Regulatory Commission (SPRC). Effective from December 1, the set of regulations are designed to standardize the behaviour of power operations, maintain an orderly power market and ensure the efficient and safe operation of the power industry. CHINA'S COAL SUPPLY AND DEMAND SEEN TO BE BALANCED IN 2006 NOV 2, 2005 BEIJING - China's coal supply and demand will be basically balanced in the fourth quarter of this year and also in 2006, predicted Pu Hongjiu, vice-president of the China Coal Industry Association. Addressing the China Coal Market Summit Forum held in Beijing, Pu forecast that China will not incur a shortage in coal supply in the short-term, and that coal is unlikely to be oversupplied either. PETROCHINA TO TAKE OVER THREE LISTED SUBSIDIARIES NOV 2, 2005 BEIJING - PetroChina (SEHX:0857) may have to pay 6.15 billion yuan (US$760.7 million) on purchasing three listed subsidiaries, Liaohe Oilfield (Shenzhen:000817), Jinzhou Petrochemical (Shenzhen:000763) and Jilin Chemical (Shenzhen:000618). According to the announcements by the three aforesaid companies, PetroChina will spend 1.76 billion yuan

on acquiring Liaohe Oilfield and 637.5 million yuan on Jinzhou Petrochemical, both of which are listed on Shenzhen Stock Exchange. CHINA'S CNOOC ANNOUNCES RECORD Q3 RESULTS NOV 2, 2005 BEIJING - China National Offshore Oil Corporation (CNOOC), China's largest offshore oil producer, announced Monday that CNOOC Limited, its subsidiary, reported record financial results for the third quarter and nine months of 2005. The total revenues of CNOOC Ltd. for the third quarter amounted to US $1.82 billion, a 30.8 per cent increase from the third quarter of 2004. The total revenues for the first nine months increased by 44.2 per cent year-on-year to US$4.83 billion. CHINA'S 1ST COMMERCIAL COAL-BED METHANE PROD'N BEGINS IN SHANXI NOV 3, 2005 TAIYUAN - China's first commercial production of coal-bed methane (CBM) has started with the commencement of the Panhe CBM project located in Qinshui County of Jincheng, north China's Shanxi Province. The first phase of the Panhe CBM project operated by the China United CBM (CUCBM), was formally completed on November 1, 2005. According to the project, 100 wells will be drilled in 2005. So far 81 wells have been drilled, 15 of which have begun to produce CMB with a daily production of 2,000 cubic metres. CHINA'S COAL IMPORTS EXPECTED TO KEEP RISING NOV 3, 2005 BEIJING - A tight coal supply in the domestic market combined with government policy incentives has driven China's coal consumers to import more coal from overseas, and industry insiders said the trend would continue at least through to next year. "It (the increase in coal imports) is a long-term trend," Pan Wanze, deputy managing director of China Coal Import & Export Company, told China Daily at the 2006 China Coal Market Summit that concluded yesterday in Beijing. CHINA SEEKS TO DRAW UP OIL AND NATURAL GAS LAW NOV 3, 2005 BEIJING - In light of the current rapid growth in demand for oil and gas, China has started preparatory work for formulating its oil and natural gas law, according to sources with the Energy Bureau of the National Development and Reform Commission (NDRC). NDRC's Energy Bureau has recently held a meeting on oil and natural gas legislation which was attended by officials from PetroChina, Sinopec, CNOOC and Sinochem, and experts from University of Politics and Law, University of Petroleum Study and NDRC's Energy Research Institute. CHINA'S COKING COAL SUPPLY, DEMAND TO REMAIN BALANCED: COAL CO NOV 4, 2005 BEIJING - China's coking coal supply and demand will remain balanced in the near future, but the structural contradiction remains outstanding, predicted Shanxi Coking Coal Group vice general manager Liu Jianzhong. Addressing the China Coal Market Summit Forum held in Beijing recently, Liu said that though coal-consuming industries have slowed this year, they have retained high growth, with demand for coal rising. COAL THROUGHPUT OF CHINA'S MAJOR PORTS RISES 8.4%, JAN-SEPT NOV 4, 2005 BEIJING - China's major ports handled an accumulated 276 million tons of coal in the first three quarters of this year, an on-year rise of 8.4 per cent. Of the total, 222 million tons

were for internal trade, an on-year jump of 17.9 per cent and 55 million tons were for foreign trade, down 18.1 per cent on-year. QINGDAO SET TO BECOME CHINA'S THIRD FPSO VESSEL BUILDING BASE NOV 4, 2005 QINGDAO - The Qingdao Beihai Shipbuilding Heavy Industries Co., Ltd. and the China National Offshore Oil Corporation (CNOOC) have recently signed a contract on the building of a 100,000-ton FPSO (floating, production, storage and offloading) vessel in Haixi Bay of Qingdao. Qingdao will thus become China's third FPSO vessel building base after Dalian and Shanghai. CHINA'S BIGGEST AIRLINES APPLY JOINTLY TO DOUBLE FUEL SURCHARGES NOV 4, 2005 BEIJING - China's top three airlines -- China Eastern Airlines, China Southern Airlines (ZNH) and Air China -- have joined hands to submit an application for doubling the current fuel surcharges (20 yuan (US$2.47) per person for domestic routes shorter than 800 km and 40 yuan for longer domestic routes) to the General Administration of Aviation of China. By contrast, Chinese carriers are still selling air tickets at steep discounts. CNOOC'S LNG NEGOTIATIONS WITH CHEVRON REACH IMPASSE NOV 4, 2005 BEIJING - Negotiations between Chian's CNOOC and Chevron seem to have reached an impasse, according to a Financial Times report. The news was confirmed from Xiao Zongwei, the investment relations manager of CNOOC. CHINA, VIETNAM TO JOINTLY SEARCH FOR OFFSHORE OIL NOV 4, 2005 BEIJING - China and Vietnam will cooperate in the search for oil in the Beibu Gulf, according to a framework agreement signed recently in Hanoi by China's CNOOC and the Petroleum Corporation of Vietnam. Earlier in March of this year, CNOOC, Petroleum and Natural Gas Corporation and the National Oil Corporation of the Philippines signed an agreement on a joint seismic survey of the agreed zone in the South China Sea. SINOPEC TO BUY BACK LISTED UNITS NOV 7, 2005 BEIJING - The share prices of the Shanghai and Shenzhen-listed units of China Petroleum & Chemical Corp. (Sinopec) were buoyed recently by news the parent company plans to buy back shares of its Hong Kong listed unit Zhenhai Refining and Chemical. The trading of Hong Kong-listed Zhenhai Refining and Chemical (HKSE:1128) was suspended on November 3 as its parent Sinopec was to announce a buyback in a bid to eliminate connected transactions and internal competition. WIND ENERGY CAN SERVE AS MAJOR POWER SOURCE FOR CHINA: REPORT NOV 7, 2005 BEIJING - Wind energy has the potential to become China's third major power supply by 2020, with an expected installed capacity of 40 million kilowatts, said an industrial report released on Sunday. The capacity figure doubles that of a government plan in 2004. CHINA PETRO-CHEMICAL CORP SET TO BUILD NEW OIL REFINERY NOV 7, 2005 SHANGHAI - The China Petro-Chemical Corporation is expected to see the operation of a new oil refinery by mid-2006 in south China, according to a senior official with the petroleum giant. The plant, located in Hainan Province, is set to start operation in June next

year with a designed annual oil refining capacity of eight million tons, which is considered a move to step up the reconstruction of China's oil refinery industry, said Wang Jiming, deputy board chairman with the corporation. CHINA'S COAL MARKET LARGELY BALANCED: FORUM NOV 7, 2005 BEIJING - Market demand, supply and price trends were key topics at a summit forum on China's coal market held recently. Opinions on the topics were mixed. RUSSIA WORKING ON FEASIBILITY STUDY FOR PIPELINE TO CHINA: MIN NOV 8, 2005 BEIJING - Russia is working on a feasibility study for a pipeline to China, Energy and Industry Minister Viktor Khristenko said in an interview published Monday. Khristenko told Profil magazine the planned Siberia-Pacific Coast pipeline was a "pragmatic" project and said a branch to China would not leave out Japan, which originally appeared slated to be the main customer for the oil. CHINA TO RAISE US$180 BLN FOR RENEWABLE ENERGY PROJECTS NOV 8, 2005 BEIJING - The Chinese government will raise about US$180 billion to develop renewable energy from now to 2020, said a senior official at the Beijing International Renewable Energy Conference that opened here Monday. By then, the share of renewable energy in primary energy consumption will stand at 15 per cent, rising from the current seven per cent, said Zhang Guobao, vice minister of the National Development and Reform Commission. CHINA INITIATES COAL-HEAT PRICE PEGGING MECHANISM NOV 8, 2005 BEIJING - Following the pegging between coal and electricity prices implemented since the beginning of this year, China's National Development and Reform Commission (NDRC) and the Ministry of Construction have jointly released a document to initiate a similar pegging mechanism between coal and heat prices. Under the new mechanism, the factory price of heat will be adjusted accordingly if the delivery price of coal at the heat plant changes in excess of 10 per cent. CHINA'S COAL DEMAND BY POWER PLANTS FORECAST TO GROW 6-11% PR YR NOV 8, 2005 BEIJING - China's coal demand by power plants is expected to grow 6-11 per cent annually in the 2006-2010 period, and the growth rate will be 2 percentage points lower than that of power generation, predicted Yang Linjun, chief engineer of China Industrial Fuel Corporation. Speaking at a summit forum on China's coal market, Yang predicted that the coal demand by power plants is expected to increase by 120 million tons to 1.2 billion tons in 2006, and increase at a slower pace in the following year to reach 1.6 billion tons by 2010, with China to restructure its power industry and enforce energy saving measures. CHINA'S IMPORT OF LARGE-BORE OIL AND GAS STEEL PIPES SOARS NOV 8, 2005 GUANGZHOU - China's import of large-bore oil and gas steel pipes has soared as domestic production fails to meet booming demand. China's consumption of oil and natural gas is at a rapid growth period with the construction of the pipeline network resulting in booming demand for oil and gas pipes.

CHINA HUANENG, CASC SIGN STRATEGIC COOPERATION AGREEMENT NOV 8, 2005 BEIJING - China Huaneng Group (CHG), the controlling shareholder of Huaneng Power International (NYSE:HNP), has joined hands with China Aerospace Science and Technology Corporation (CASC) to develop wind and steam power technologies. CASC will provide equipments for Huaneng's wind power plants and its steam power desulphurization system. CHINA HUANENG EXPECTS ASSETS WORTH US$49 BLN BY 2010 NOV 8, 2005 BEIJING - China Huaneng Group (CHG), the controlling shareholder of Huaneng Power International (NYSE:HNP), expects to have total assets of 400 billion yuan (US$49.5 billion) and annual sales revenue of 140 billion yuan by 2010 with its installed generating capacity rising to 80 million kW, according to CHG's development strategy for 2006-2010 period unveiled recently. CHG underscored steam power construction in its strategy, planning to build power plants in coal-enriched areas and those near ports or traffic-influxes. PO&G, PETROCHINA TO BUILD US$1.3 BLN LNG PLANT IN E.KALIMANTAN NOV 9, 2005 JAKARTA - Pacific Oil & Gas Indonesia (PO&G) plant to build a US$1.3 billion liquefied natural gas (LNG) projects in East Kalimantan. PO&G will build the plant, which will have an annual production capacity of 5 million tons of LNG in cooperation with PetroChina Co.Ltd. ANALYSIS - CHINA'S PETROLEUM, CHEMICAL SECTORS' GORWTH TO SLOW NOV 9, 2005 BEIJING - Although China's petroleum and chemical industries has reported brisk production and sales, product price hikes and an increase in efficiency in the first three quarters of this year, the pace of growth is expected to slow because of the drop in market demand and increasing trade barriers. Profit growth in the two sectors is forecast to slow and the rate of efficiency to return to a normal level. CHINA, VIETNAM INK DEAL FOR ELECTRICITY SUPPLY NOV 9, 2005 BEIJING - The China Southern Power Grid Company will supply Vietnam with annual electricity of 1.3 billion kwh in a purchase term of ten years, said sources with the Stateowned Assets Supervision and Administration Commission.Under an agreement signed between the Southern Power Grid and the Vietnam National Power Corporation, the Chinese company will supply electricity to six provinces in northern Vietnam via 220 kv electrical lines, with annual sales income topping US$50 million. CHINA NATURAL GAS POWER SUMMIT 2005 TO BE HELD IN DEC NOV 9, 2005 BEIJING - The China Natural Gas Power Summit 2005 will be held here in mid-December, aiming to give impetus to natural gas power development in China, said sources with the forum organizer on Tuesday. Experts and professionals from related state energy institutions and major state oil and gas enterprises of China will discuss such topics as China's macro economy and energy industry, China's natural gas market outlook, and China's natural gas power policy frame during the summit from Dec 14 to 15. CHINA'S ENERGY & COAL DEMAND SET TO CONTINUE RISING NOV 9, 2005 BEIJING - China's energy and coal demand will continue to rise over the next five years, but at a slower speed, according to the State Development and Reform Commission. The slowing consumption growth is the result of the drive to build a frugal society,

optimizing the industrial structure and control over the development of high energyconsuming industries. CHINA'S NDRC DECIDES TO CONTINUE DIFFERENTIAL POWER RATES NOV 9, 2005 BEIJING - China's National Development and Reform Commission (NDRC) has decided to continue carrying out differential power rates for high energy consuming sectors, according to sources of the NDRC Pricing Department. Approved by the State Council, the highest governing body of China, starting from June 2004, China started implementing differential power rates for six high energy consuming sectors including electrolytic aluminum, iron alloy, calcium carbide, caustic soda, cement, and iron and steel production. CHINA'S COAL PRODUCTION TO SEE SHARP DECLINE: ENERGY OFFICIAL NOV 9, 2005 BEIJING - The growth of China's coal demand is likely to see a remarkable decline in the eleventh five-year program period from 2006-2010, said Wu Yin, a senior official of energy department of the National Reform and Development Commission, at a summit forum on China's coal market in 2006. Major coal consuming sectors in China include power plants, household heating, iron and steel industry, coal chemical industry, and construction material industry. CHINA'S CENTRAL BANK ADVISES ACCELERATION OF OIL PRICING REFORM NOV 10, 2005 BEIJING - China should accelerate its oil pricing mechanism and streamline the oil pricing system, the People's Bank of China (PBOC) advised in a report released Wednesday. Setting the price of processed oil based on the average price of oil products in the Singapore, Rotterdam and New York markets, the government only adjusts the price of oil products when the international price changes enough, which makes the final price sluggish in the domestic market. CHINA TO EXPAND QINSHAN NUCLEAR POWER PLANT NOV 10, 2005 BEIJING - China will commence the second-phase expansion project of Qinshan Nuclear Power Plant, the first large home-designed nuclear power plant for commercial use, in the first quarter of 2006. A signing ceremony of the project's civil work, installation and supervisor contracts was held in Beijing on November 9. NEW OILFIELD IN CHINA'S BOHAI BAY STARTS PRODUCTION NOV 10, 2005 BEIJING - China National Offshore Oil Corporation (CNOOC) announced on November 9 that a new oilfield in Caofeidian of Bohai Bay has been put into production recently. The 11-3/5 oilfield in the 04/36 block of western Bohai Bay produces 13,800 barrels of crude oil daily, reaching the peak production capacity. CBM POWER GENERATION PROJECT TO BE LAUNCHED IN SW CHINA NOV 10, 2005 BEIJING - Songzao Coal Power Co. Ltd in southwest China's Chongqing Municipality signed an agreement with two partners on joint development of coal-bed methane (CBM) power generation project in Beijing on Nov. 8. The partners are the Mitsui Co. Ltd of Japan and the Academy of Coal Information under China's General Administration of Work Safety. CHINA COAL INDUSTRY'S PROFIT MARGINS SQUEEZED AS PRICES DROP NOV 10, 2005

BEIJING - The Chinese coal industry's profit margins are being squeezed as coal prices continue to decline and production costs increase, according to information revealed by the coal trade market in Taiyuan, the capital city of Shanxi, China's largest coal producing province. So far this year, the growth of the total profit realized by major coal enterprises has suffered a decline of over 50 percentage points from the same period a year ago, larger than that of the nation's whole industrial sector. CHINA TO EARMARK US$185 BLN FOR RENEWABLE ENERGY DEVELOPMENT NOV 10, 2005 BEIJING - China will make a total investment of 1.5 trillion yuan (US$185 billion) for renewable energy development so as to raise its proportion in the total primary energy supply to 15 per cent by 2020 from today's 7 per cent, according to Zhang Guobao deputy director of the National Development and Reform Commission at an international renewable energy conference held in Beijing recently. Zhang also said that the installed power generating capacity provided by renewable energy resources should account for over 30 per cent of the total by 2020. Specifically, capacity provided by hydropower should reach 290 million kw, that by wind power to reach 30 million kw, and that by solar energy to reach 2 million kw. SUNLIGHT BECOMES LEADING CHINESE SOLAR EQUIPMENT PRODUCER NOV 10, 2005 HEFEI - Hefei Sunlight Power Supply Co. Ltd (Sunlight) in east China's Anhui Province, has become a leading producer of solar controllers and power inverters in China. Sources at the company said that solar controller and power inverter produced by Sunlight have held 70% domestic market share in terms of similar products due to the advantages of their performance and prices. GUANGDONG TO BOLSTER SOLAR ENERGY USE FROM 2006 NOV 10, 2005 GUANGZHOU - South China's Guangdong Province plans to install 10,000 solar energy heaters from 2006 to 2010. Industrial insider predicts that solar energy heater will occupy over 10 per cent of the market shares of Guangdong Province in 2006. WRONG TO ONLY BLAME CHINA FOR HIGHER OIL PRICE: FORUM NOV 14, 2005 BEIJING - Experts attending the China-Montreux Energy Roundtable 2005 said here Sunday that there are a dozen of factors contributing to surging oil prices, and it is unfair to solely blame China. Professor Subroto, Chairman of the Foundation of Indonesian Institute for Energy Economics, said that different from last century's oil crisis that were caused by a disruption in supplies, the latest rise in oil prices was caused by stronger demand following higher economic activity. DAZHOU TO BECOME MAIN SITE FOR NATURAL GAS EXPLORATION IN CHINA NOV 14, 2005 CHENGDU - Dazhou City in Southwest China's Sichuan Province boasts a natural gas reserve of 3.8 trillion cubic meters, ranking third in the country. Sources of China National Oil and Gas Exploration and Development Corporation disclosed that Dazhou will become China's main site for natural gas exploration, development and investment in the 11th FiveYear Program (2006-2010). Dazhou is located in the eastern part of Sichuan Province neighboring Chongqing. Of the 112 gas fields PetroChina and Sinopec have prospected in Sichuan-Chongqing area, 78 are in Dazhou. In fact, PetroChina has designated Dazhou as a main battlefield of natural gas exploration, development and investment, aiming to construct it into the natural gas, energy and chemical production bass in West China.

CHINESE VICE PREMIER ENCOURAGES OIL, GAS PROSPECTING NOV 14, 2005 BEIJING - Chinese Vice Premier Zeng Peiyan Thursday highlighted the prospecting of petroleum and gas as an important task of geological survey work. Efforts should focus on prospecting of strategic mineral resources, especially oil, natural gas, uranium, iron, copper and aluminium, Zeng said at a conference on geological work held by the State Council in Taiyuan, capital of northwest China's Shanxi Province. CHINA HAS 84,000 OIL FILLING STATIONS NOV 14, 2005 BEIJING - China now has 84,000 oil filling stations, which can basically meet the demand of domestic customers, said Wang Xiaochuan, deputy director of the Commercial Reform Department of the Ministry of Commerce. However, he warns China against its serious insufficiency of commercial reserve of finished oil product. CHINA'S CRUDE OIL IMPORT ESTIMATED TO REACH 130 MLN TONS IN 2005 NOV 14, 2005 BEIJING - China's crude oil import is estimated to reach 130 million tons in 2005, said Wei Jianguo, vice minister of commerce on Thursday. The vice minister said at the 2005 China Petroleum Forum held here that in the first three quarters of this year, China produced 136 million tons of crude oil, up 4.2 per cent over the same period of last year, and imported over 90 million tons of crude oil. CHINA, KUWAIT IN TALKS OVER OIL REFINERY NOV 14, 2005 BEIJING - State-owned Kuwait Petroleum Corp (KPC) said it is in talks with Sinopec, BP and Shell about building a joint-venture refinery with a daily crude processing capacity of 300,000 barrels in South China's Guangdong Province. "The talks are expected to be finalized in the first half of next year," Hamzah Bakhash, a KPC spokesman, told China Daily on the sidelines of the Clean Technologies Conference Asia 2005 in Beijing. COAL, POWER, OIL SHORTAGE TO EASE IN CHINA: OFFICIAL NOV 15, 2005 BEIJING - The shortage of coal, power, oil and transport supply will be further alleviated next year, said an official with the National Development and Reform Commission (NDRC) here Monday at a conference on the prospect of China's industry in 2006. In 2005 the shortage of coal, electricity, oil and transport has been eased to some extent, but some new problems such as oversupply also appeared, said Ma Liqiang, deputy secretary-general of the NDRC. CHINA'S COAL INDUSTRY SEES GOOD PROSPECTS: OFFICIAL NOV 15, 2005 BEIJING - China's coal industry will maintain a vigorous development trend in the next five years and see bright prospects in a long period, Wang Xianzheng, deputy director of the State Work Safety Administration, said in a forum here Monday. Coal is China's basic energy, taking up some 70 per cent of theprimary energy. The eleventh five-year plan, the blueprint for China's development from 2006-2010, established a fundamental strategy of energy that is based on coal as well as the development of multiple alternatives, Wang said at the Sixth National Congress of Coal Science and Technology. OIL PIPELINE LINKING CHINA, KAZAKHSTAN JOINS TOGETHER NOV 15, 2005

ALATAW PASS - As technicians of Sinopec finished their last welding work in Alataw Pass Monday, the oil pipeline linking China and Kazakhstan joined ends after 18 months unremitting efforts. This marked a perfect accomplishment of the first period of the 1000km oil pipeline project. The joining serves as a firm foundation for the eventual overall completion of this project soon. CHINA-MADE OIL MINING EQUIPMENT EXPORTED FOR THE FIRST TIME NOV 15, 2005 BEIJING - Daqing Petroleum Equipment Group (DPEG), China's leading petroleum mining machinery & equipment manufacturer, has recently exported 30 sets of pumping units to Algeria, witnessing the first lot sales of this kind of homemade equipment to a foreign client. According to an official with DPEG, the deal also marks a turning point that the company has shifted its sales from low-end products to high-end ones in tapping international markets. CHINA EYES BIOLOGICAL DIESEL OIL TO EASE ENERGY DEMAND NOV 15, 2005 HANGZHOU - Wang Zongyi, a Chinese taxi driver, has to calculate his driving cost every day as oil prices keep hiking amid worldwide fear of a energy shortage. However, the technology of extracting diesel oil from plants and waste oil that is being developed in China might assuage Wang. SINOPEC TO PRIVATIZE ZHENHAI REFINERY NOV 15, 2005 BEIJING - China's largest oil refinery Sinopec Monday announced it will privatize Sinopec Zhenhai Refining and Chemical Company Limited (ZRCC) through its wholly-owned Ningbo Yonglian. China Petroleum and Chemical Corporation (Sinopec) and ZRCC held board meetings Saturday and approved Sinopec's privatization of ZRCC by way of "merger by absorption". EAST CHINA TO PILOT COMPETITIVE PRICING FOR POWER SUPPLY TO GRIDS NOV 15, 2005 BEIJING - Power distributors in east China will be able to choose from the lowest power prices offered by power generating plants in that region, once a competitive power pricing mechanism goes into operation. The competitive pricing system, initiated by the National Development and Reform Commission (NDRC), is a daily price offering system that will operate in east China's power market as the first prototype in the country. EXPERT SUGGESTS CHINA SHOULD DIVERSIFY ITS OIL/GAS IMPORT NOV 15, 2005 BEIJING - A senior economist with the China National Offshore Oil Corporation suggests that China should diversify its origins and products for its oil and natural gas import. Addressing the 2005 China Oil Forum, Zhang Weiping said that starting from 1993 China has become a net oil importer. The country imported nearly 120 million tons of crude oil in 2004. It is expected that by 2020, the country's oil consumption will reach 450 million tons, when domestic output will be only 180-200 million tons, thus leaving a 250-270 million tons supply gap that will need to be imported. US, RUSSIAN COS TO JOIN INDIA'S BHEL FOR NUCLEAR POWER PROJECTS NOV 15, 2005 NEW DELHI - Close on the heels of US lifiting ban on supply of nuclear fuel and equipment to India, a number of American, Russian and French companies have approached power equipment giant BHEL (BSE:500103) for developing and deploying technology for nuclear

power projects in India. "Some American, Russian and French companies have approached us. We are talking to them... We may tie up with some foreign companies to enhance our capabilities," BHEL Chairman and Managing Director A K Puri said. CHINA'S OIL OUTPUT TO STAY AT 180 TO 200 MLN TONS: OFFICIAL NOV 16, 2005 BEIJING - China's oil production will stay at 180 to 200 million tons per year for a relatively long period of time, a Chinese senior energy official said Tuesday at an ongoing seminar on China-US relations in Beijing. China's increasing oil demand has attracted bigger attention from the United States. Some have attributed the world price hike of oil to China's broader endeavors to explore foreign oil market. CHINA DETECTS ITS 5TH LARGEST NATURAL GAS FIELD NOV 16, 2005 HARBIN - Explorers announced here Tuesday they have detected China's fifth largest natural gas field in the northeastern province of Heilongjiang. The Qingshen gas field is located at the county of Zhaozhou, about 140 kilometers west to the city of Daqing, wherein lies China's largest oilfield. CHINA'S POWER EQUIPMENT OUTPUT TO PEAK IN 2007: INDUSTRY BODY NOV 16, 2005 BEIJING - China's power generating equipment output is expected to peak in 2007 when new orders begin to decline, according to a forecast made by Cai Weici, vice-chairman of the China Machinery Industry Association. The country's power equipment output this year is estimated to reach 80 million kw, a record high, he said, adding that as orders for delivery next year are still at a peak, the power equipment manufacturing industry will book growth of about 20 per cent in 2006. CHINA'S THREE GORGES PROJECT COSTS OVER US$16 BLN: OFFICIAL NOV 16, 2005 CHONGQING - The cost of building the Three Gorges Project has totaled 130 billion yuan (US$16.1 billion), said a senior official with the project on Tuesday. Gao Jinbang, vice director of Three Gorges Project Construction Committee (TGPCC) under the State Council, said the project has won great support from the financial sector over the past 12 years, at the forum on economic development and financial services in Three Gorges Area, held in the southwest China municipality of Chongqing. ADB HELPS SEAL CARBON CREDIT SALES FOR CHINESE COAL MINE PJCT NOV 16, 2005 BEIJING - A coal mine/coal bed methane utilization project in northeast China entered into agreements Tuesday with two separate buyers under the Clean Development Mechanism (CDM), according to the Asian Development Bank (ADB). The transactions were structured by ADB's Clean Development Mechanism Facility and Clearworld Energy, a clean energy development company headquartered in Beijing. CHINA COAL PRICES TO REMAIN STABLE NEXT YEAR: OFFICIAL NOV 16, 2005 BEIJING - Despite a slide over the last few months, coal prices in China have been on the rise again since entering into the fourth quarter. An official of the Coal Sales Office (CSO) of Shanxi Province, the biggest coal producing province in China, predicted that coal prices will remain stable in the coming year thanks to robust growth of the Chinese economy.

SHANGHAI ELECTRIC TO BUILD POWER PLANT IN VIETNAM NOV 16, 2005 SHANGHAI - Shanghai Electric (Group) Company and Quang Ninh Thermal Power Co. Ltd in Vietnam recently signed a general contract for the construction of the first-phase of the Quang Ninh Power Plant project. According to the contract, Shanghai Electric will build two 300,000-kw generating units with a contractual value of US$450 million. ANALYSIS - CHINA'S POWER SHORTFALL TO FURTHER EASE IN 2006 NOV 16, 2005 EIJING - China's power shortage, which has moderated in 2005, will further ease in 2006, according to a recent review by China Electricity Council, which comprises all power companies and research institutes in China. The total power consumption in the first three quarters of 2005 amounted to 1.823879 trillion kwh, a year-on-year growth of 13.95 per cent, with most of the growth came from heavy industries and household consumption. CHINA TO INCREASE COAL CONSUMPTION TO 2.2 BLN TONS BY 2010 NOV 17, 2005 BEIJING - China's coal consumption is expected to exceed 2.2 billion tons by 2010, predicted Wang Xianzheng, deputy director of State Administration of Work Safety. "We should be confident about the coal industry," said Wang, adding that it had very bright prospects for the 2006-2010 period and beyond. CHINA'S CRUDE OIL OUTPUT UP 5.1% IN OCTOBER NOV 17, 2005 BEIJING - The growth rate of crude oil, product oil and natural gas production in China kept steady in October. According to the latest data released by the China Petroleum and Chemical Industry Association, China's crude oil output came to 15.455 million tons in October, up 5.1 per cent year on year, and 151.074 million tons in January-October, up 4.3 per cent. CHINA DEVELOPS NEW PRICING SYSTEM FOR GREEN ELECTRICITY NOV 17, 2005 BEIJING - Senior officials from the government's top pricing and tax decision-making group yesterday said China has come up with a pricing system for electricity generated by renewable energy. The government will also raise the price of electricity for domestic customers from the start of next year by a small margin. VENEZUELA TO EXPAND HEAVY CRUDE AND FUEL OIL EXPORT TO CHINA NOV 17, 2005 BEIJING - China National Petroleum Corporation (CNPC), China's leading oil producer, has recently reach agreement with Venezuela's state-owned oil company Petroleos de Venezuela (PDVSA) for a deal involving 160,000 barrels of daily heavy crude and fuel oil export to China. The agreement covers a one-year deal of 100,000 barrels/day of heavy crude export and a two-year daily export of 60,000 barrels of fuel oil to China. CHINA SET TO DEVELOP BIOLOGICAL FUEL NOV 17, 2005 HANGZHOU - China has started research into energy plants and the development of biological diesel and is preparing to cooperate with biological fuel enterprises to begin the industrialization process. Hainan Zhenghe Biological Energy Company has set up a 10,000ton biological diesel production base and its biological diesel products and manufacturing technology have been certified by experts. Besides Sichuan, Fujian energy development companies also developed biological diesel production technology.

CHINA MAKES SUBSTANTIAL PROGRESS IN COAL-TO-OIL TECHNOLOGY NOV 18, 2005 BEIJING - The cost of making oil products from coal is estimated to halve the current oil price at US$30 per barrel with the adoption of a new coal-to-oil technology developed in China recently. The adoption of the new technology, which is quite profitable, may increase coal product values by near 10 times, according to Zhang Yuzhuo deputy general manager of Shenhua Group, supposing that each ton of oil product needs three tons of coal, the coal price is 100-150 yuan per ton, and the product oil price ranges from 4,500 to 5,500 yuan (US$680) per ton. CHINA LAUNCHES WORLD'S FIRST COAL-TO-OIL PROJECT NOV 18, 2005 HOHHOT - China has launched the world's first coal-to-oil project in the Inner Mongolia Autonomous Region, with an expected annual output of 5 million tons that is set to ease its energy bottleneck and import burden. The ambitious project has been launched by Shenhua Group, the country's leading coal producer, in Erdos, a city that boasts rich coal resources. SHELL CONTINUES TO EXPAND INVESTMENT IN CHINESE MAINLAND NOV 18, 2005 GUANGZHOU - Shell Group has so far invested more than US$3 billion in the Chinese mainland, said Lim Haw Kuang, chairman of Shell Group of Companies in China. Lim made the remarks at the International Consulting Meeting on Economic Development sponsored by the Guangdong provincial government in east China held on Nov. 16. PRIVATE CHINESE GAS COMPANY XINAO TO FOCUS ON BIG CITIES NOV 18, 2005 BEIJING - China's largest private piped-gas distributor XinAo Gas Holdings Ltd (SEHK:2688) is considering selling some projects in smaller cities to focus on corporate customers and first-tier cities, a senior executive says. The move comes ahead of what is expected to be more fierce competition in the mainland's segmented gas distribution sector. CHINA'S TOP COAL PRODUCER SHENHUA MAY RAISE COAL PRICE NOV 18, 2005 BEIJING - China's largest coal producer Shenhua Energy Co., Ltd. (SEHK:1088) will raise its coal price next year if the market situation is as anticipated, Shenhua Chairman Chen Biting said. Chen predicted that the coal price will climb again in the fourth quarter as winter comes, and it will keep at a high level next year. SK EMERGES AS ASIA'S ENERGY LEADER NOV 19, 2005, Korea Times The SK Group has grown into South Korea's fourth-biggest chaebol, or family-controlled conglomerate, with 52 subsidiaries from a small textile manufacturer founded in 1953. The year 2005 has been a milestone for the SK Group's globalization drive to true world-class multinational business group. At the frontline of the SK Group's globalization push has been SK Corp., Korea's oldest and biggest oil refiner established in 1962. SK Corp. is one of SK Group's key affiliates along with SK Telecom. SK Corp. is gearing up to make full-fledged inroads into China to capitalize on the Kingdom's growing thirst for oil and consolidate its leadership position in the Asia-Pacific region. Toward the end, Korea's biggest oil refiner, which seeks to boost its annual petroleum and petrochemical sales in China to more than $5 billion by 2010, clinched a memorandum of understanding (MOU) to acquire Inchon Oil Refinery, Korea's fifth-biggest oil refiner, in October. SK Corp. dominates roughly one-third

of the domestic oil refining market. When the Fair Trade Commission (FTC) approves the corporate integration and SK Corp. completes its due diligence on Inchon Oil, the leading oil refiner's equity ownership in the smaller rival, which used to be under court receivership, will jump to over 90 percent. Under the MOU, SK Corp. will purchase bonds worth 1.6 trillion won. In addition, the MOU includes SK Corp.'s paid-in capital increase worth 1.6 trillion won. Buying Inchon Oil _ with daily refining capacity of 275,000 barrels per day _ will increase SK Corp.'s refining capacity by a third to 1.11 million barrels a day, helping the Korean oil refiner to vault into Asia-Pacific's fourth-largest refiner by output from current fifth. SK Corp. will emerge as the fourth-biggest oil refiner after China Petroleum & Chemical Corp. (Sinopec) with refining capacity of 3.29 million barrels per day, China National Petroleum Company (CNPC) with 2.65 million barrels and Nippon Oil Corp. with 1.17 million barrels. ''Inchon Oil's facilities are located in strategic location of northernmost part of Korea's west coast, which is facing China thus it is believed to facilitate our exports to oilthirsty China while reducing logistics cost,'' said SK spokesman. SK Corp. plans to revise its mid- to long-term Chinese market strategy in line with the acquisition of Inchon Oil. SK in ChinaSK Corp. is confident that China would serve as its gateway to becoming the Asia-Pacific energy major. China's rapid development and economic growth are creating greater demand for SK Corp.'s products and services. China's total oil consumption, which amounted to 6.7 million barrels a day last year, is forecast to surge to 8.7 million barrels by 2010 and top 10 million barrels by 2015. In contrast, China's domestic refined oil production stands at less than 4 million barrels per day. SK Corp. plans to boost the share of exports in annual revenue from current 46 percent to 50 percent by 2008. China accounts for 33 percent of SK Corp.'s exports. As the initial phase in building the SK Group into a major global conglomerate, SK Group and SK Corp. chairman Chey Tae-won turned his eyes to mainland China in 1999, selecting the country as the conglomerate's No. 1 key overseas market for the 21st century. The corporation established Chinese affiliates the following year under an ambitious vision to incubate its affiliates into leading players in key segments of the Chinese market by 2010. Indeed, SK Corp. was an early mover. SK was the first Korean company to open offices in China even before the official diplomatic ties were established between Korea and China. The SK Group, under its ''SK in China'' strategy, has built a global network of companies that share SK Group's management philosophy and culture. SK Corp. has a presence in six cities including eight local and three branch offices. Nineteen sales and production affiliates of the SK Group, led by SK Corp., SK Networks, SKC, SK Chemicals, SK Shipping and SK Gas, are already in operation in China. The oil refiner has set up a holding firm for its Chinese production and sales affiliates last October. In particular, SK Corp., has been striving to expand its distribution and sales networks in China. SKC's chemical business division also inked an agreement with China's largest energy and chemicals firm SINOPEC to collaborate on advancing into the Chinese polyurethane market. The investment marks the latest stage in SK Corp.'s expansion into the Chinese market under a projection that its sales in China would reach more than $5 billion a year by 2010, 60 percent of which is estimated to be generated by the local entities in China. SK Corp. established SK China Holding, located in Beijing, last year. China is No. 1 export destination for SK Corp., accounting for 33 percent of the company's total outbound shipments and 15 percent of revenue in the first half of 2005. The SK Group said it places the top priority of its Chinese operations on returning profits back to the local communities. The conglomerate has also established an academic R&D network by setting up Asia Research Centers at 13 major Asian universities outside of Korea, including Peking University, Tsinghua University, National University of Mongolia, Yangon University of Myanmar and Vietnam National University in Hanoi. SK Corp.'s bold vision does not stop in Asia-Pacific. The oil refiner is simultaneously struggling to aggressively expand its presence in the U.S. follows its successful entry into China over the past six years. SK Corp. also recently inked an agreement on establishing a solvent production joint venture with Sinopec and Ningbo

Asphalt Terminal, an asphalt storage and logistics joint venture with Zhejiang Province Highway Materials as well as Shanghai Gaoqiao-SK Solvent. The oil refiner has world's second-largest single oil refining complex. Having a total of 4,931 employees on its payroll and 22 offices worldwide, SK Corp. chalked up 17 trillion won in sales last year. Sound Financial Structure''We have a clear vision for our future. Operating efficiency and management accountability are at the foundation of our business practices,'' said SK Corp. chairman Chey. ''They are key to building greater shareholder trust and customer confidence as we move forward. Joining the ranks of oil producing nations through greater exploration activities and expanding to other global markets, particularly China, is at the foundation of our growth strategy,'' he added. SK Corp. has a sound financial position that significantly enhances its resiliency to tough market conditions. The company posted 1.6 trillion won in operating profit and 1.64 trillion won in net profit in 2004. Shareholder dividends also surged 240 percent from a year earlier to 1,800 won last year. Fueled by the strong international crude oil prices that pushed up petroleum and petrochemical product prices, SK Corp.'s revenue jumped 25 percent year-on-year to 9.95 trillion won in the first half of 2005. Its debt-to-equity ratio also improved to 62 percent as of the end of last June from 74 percent in 2004. SK Corp. attributes the recent surge in profits to its continuous efforts to move into less-cyclical and more stable business segments. The robust business growth is also ascribed to recent improvement in SK Corp.'s corporate governance structure. Seventy percent of SK Corp. directors are independent outside directors. Moreover, six board committees _ audit committee, nomination committee, strategic planning committee, human resource committee, transparent management committee and corporate government committee _ enhance supervision of the company through a system of checks and balances. All sub-committees are chaired by outside directors, who plays central role in preventing corrupt business dealings. Thanks to its efforts to improve corporate governance structure, SK Corp. was chosen as one of top 10 publicly traded companies in the 2005 Corporate Governance Award organized by the Korea Corporate Governance Service (KCGS). It also received ''Best Audit'' award presented by the Korea Listed Companies Association (KLCA) and the Korea Institute of Certified Public Accountants (KICPA). Advancing into Bio SectorSK Corp. also seeks to foster biopharmaceuticals as a new flagship business in coming years. It also founded the New Jersey R&D Center in the U.S. in 1989. The research and development (R&D) center focuses on developing new medicine and pharmaceutical intermediates. SK Corp. plans to extend the scope of the R&D center's research to medicines for curing central nerve disorders, diabetes and cancer. The New Jersey R&D Center is the first medical lab set up by Korean capital to acquire a clinical test license from the U.S. Food and Drug Administration. It is currently conducting clinical tests with Johnson & Johnson of the U.S. for antidepressant and epilepsy cures, drugs it developed between 1999 and 2000. By 2030, the SK Group plans to have established biotechnology as its core business, in the expectation that the IT sector will have reached maturity by that time. To this end, the SK Group and SK China established the SK Bio-Pharmaceuticals Tech Shanghai R&D Center in the Chinese city in 2002. The R&D center is a 50-50 joint venture with the Shanghai city government. 3 GORGES POWER STATION TO GENERATE 360 BLN KWH OF ELECTRICITY NOV 21, 2005 YICHUANG - The Three Gorges Hydropower Station in central China's Hubei Province will produce a combined 360 billion kilowatt-hours (kWh) of electricity during the 11th five-year program (2006-2010), 45.8 billion kWh more than planned, according to Bi Yaqiong, deputy general of China Three Gorges Project Corp. The power station boasts a total installed generation capacity of 18.2 million kilowatts, the largest hydropower station in the world. It is composed of 14 700,000-kW generating units on the left bank and 12 700,000-kW generating units on the right bank.

CHINESE, CANADIAN FIRMS TO TAP COALBED METHANE IN NORTH CHINA NOV 21, 2005 BEIJING - China United Coalbed Methane Co. Ltd. (CUCBM) and the Canada-based Verona Development Corp. signed a production sharing contract (PSC) here on November 18 for cooperative exploitation of coalbed methane (CBM) resources in the Shiloubei area in north China's Shanxi province. The Shiloubei contracted block has a total coverage of 1,015 square kilometers and estimated CBM reserves of 150 billion cubic meters. CHINA WORKS ON MASSIVE PJT TO SEND POWER FROM ANHUI TO THE EAST NOV 21, 2005 BEIJING - The multi-billion yuan project to transmit electric power from Anhui Province to electricity-thirsty east China has been listed in the state's 11th Five-Year (2006-2010) development program for the electric power industry, according to the State Electricity Regulatory Commission (SETC). According to the Anhui Provincial Development and Reform Commission, the project to send electricity from Anhui to east China will absorb investments totaling 40 billion yuan (US$4.95 billion). After the project is completed, the annual electricity output is expected tp reach 40 billion kWh valued at over 12 billion yuan. CHINA TO IMPLEMENT LICENSE MANAGEMENT IN POWER SECTOR NOV 21, 2005 BEIJING - China will begin to implement license management on power generating, transmission and supply enterprises as of December 1, 2005, according to the Rules on License Management in Power Business announced by the State Electricity Regulatory Commission (SERC). SERC Vice-chairman Shi Yubo said the move is a natural requirement in market-oriented reforms in the electric power sector and a common world practice. It is an important measure to ensure safety and stability of the power system and guarantee proper governmental control over the electric power industry. CHINA'S POWER MKT SET TO SEE REVERSE FROM UNDERSUPPLY: OFFICIAL NOV 21, 2005 BEIJING - China's power market is likely to see a substantial reverse from undersupply in the upcoming Eleventh Five-Year Program period from 2006-2010, predicted Liu Zhenya, general manager of the State Grid Corporation of China. China's total installed power generating capacity is expected to witness a 67-70 million kilowatt (kW) increase this year and continue to add 80 million kW and 82 million kW in 2006 and 2007 respectively, according to Jiang Shaojun, secretary-general of China Power Promotion Association. ENVIRONMENTALLY-FRIENDLY BUSES DEBUT IN CHINA'S WUHAN NOV 22, 2005 WUHAN - The first batch of 30 environmentally-friendly passenger buses, which burn compressed natural gas, were recently seen running in Wuhan, capital of central China's Hubei province. The Wuhan Morning News said the city plans to renovate 1,500 such public passenger buses in next two years, as well as about 6,000 taxies in the future. SOUTH CHINA ELECTRICITY GRID BEGINS MKT-ORIENTED TRANSFORMATION NOV 22, 2005 BEIJING - The electricity grid in southern China yesterday kick-started its market-oriented transformation, becoming the country's third regional power network to introduce more industrial competition after Northeast China and East China. Unlike the previous government-controlled electricity distribution process, market players including grid companies and power generating firms will bid for more competitive prices through long and short-term contracts, according to the new market-based mechanism.

CHINA'S COAL-BED GAS POWER GENERATING CAPACITY HITS 90,000 KW NOV 22, 2005 GUIYANG - China's coal-seam gas power generating capacity has reached 90,000 kilowatts (kW). Projects with a combined installation capacity of 150,000 kW are in the works, including the 120,000 kW project being undertaken by the Jincheng Anthracite Mining Group. CHINA PLANS TO UNDERTAKE SIX MAJOR ENERGY PRODUCTION PROJECTS NOV 23, 2005 TAIYUAN - China will undertake six major energy production projects in the 2006-2010 period. The projects are; 1. Ten coal production bases. A group of highly efficient mines will be built on the basis of large coal bases. The annual production capacity of coal will increase by 310 million tons in the period with annual output reaching 2.07 billion tons and liquefied coal production capacity hitting six million tons. CHINA ENCOURAGES ENERGY-EFFICIENT TECHNOLOGIES & PRODUCTS NOV 23, 2005 BEIJING - An official of the Ministry of Construction said on November 22 that China encourages the development of eight kinds of energy efficient technologies and products. These technologies and products are; new-type energy-saving wall and roof heat preserving and heat insulating technologies and materials, energy-saving door and window heat preserving, heat insulating and sealing technologies, collective heat supply and heat, electricity and coldness joint production and joint supply technologies, temperature regulation and household heat measuring technologies and devices in heat supply systems. CHINA ISSUES RULE ON ENERGY SAVING IN CIVIL BUILDINGS NOV 23, 2005 BEIJING - China's Administrative Regulation on Energy Saving in Civil Buildings will be implemented as of January 1, 2006, the Ministry of Construction said on November 22. The new regulation is aimed to raise the efficiency of energy utilization in civil buildings. ASIA POWER COMPANY TO BUILD NEW ENERGY SET UP IN NW CHINA NOV 23, 2005 XI'AN - China Power Investment Corporation has recently set up its Northwest China Branch Company in Xi'an, capital city of northwest China's Shaanxi Province. An official with the group said that the branch company will construct a new energy development framework in the region with the combination of hydropower, thermal power, gas-fired power, wind power and other new energy sources. WORK STARTS ON MAOMING ETHYLENE EXPANSION PROJECT IN CHINA NOV 23, 2005 BEIJING - Work has started on an expansion project af the ethylene installations at Sinopec Maoming Petrochemical. The expansion project involves 36 sub-projects, including a 640,000-ton cracking unit, a 350,000-ton high density polyethylene device, a 300,000-ton polypropylene unit and a 250,000-ton high pressure polyethylene unit. OIL PRICE TO CONTINUE ITS FALLING TREND: CHINA'S NDRC NOV 23, 2005 BEIJING - The international crude oil price will continue its downward trend until reaching a comparatively high level of above US$50 per barrel, according to an analysis issued by the National Development and Reform Commission (NDRC) Monday. Having surged to a record high of US$69.81 per barrel in August, the international oil price displayed a falling trend over the last two and a half months.

CHINA TO KEEP UP WITH GLOBAL PACE OF CHANGE IN FUEL RETAILING NOV 24, 2005 BEIJING - The improvement of services at gas stations has become a major topic faced by China's oil products market after its opening in the foreign capital, said a senior manager with the China National Petroleum Corporation, China's largest oil producer Wednesday. Tian Jinghui, Vice President of the Refining and Marketing Company of PetroChina Company Limited, the listed subsidiary of CNPC, said at the China Gas Stations Forum 2005 held here that fierce competition in China's oil products retailing market is obliging China's gas stations to turn from their traditional operation methods to providing a variety of services. CHINA'S HUNAN PROVINCE TO INVEST US$7.4 BLN IN 18 ENERGY PJTS NOV 24, 2005 CHANGSHA - China's central province of Hunan plans to invest 60 billion yuan (US$7.4 billion) in 18 key energy projects during the 11th Five-Year Program period (2006-2010), according to the Hunan Provincial Development and Reform Commission. Among these projects will be some power generation projects involving a total new installed capacity of over 3.5 million kW such as the second phase of the Xiangtan Power Plant, the second phase of the Yueyang Huaneng Power Plant and the Heimifeng pumped storage project and the Changsha Power Plant. CHINA EXTENDS PERIOD OF FUEL OIL SURCHARGE COLLECTION NOV 25, 2005 BEIJING - China announced on November 23 that it is extending the period of fuel oil surcharge collection to March 31, 2006. The current fuel oil surcharge collection period expires on December 31, 2005. CHINA EXPECTS ENOUGH COAL SUPPLY FOR POWER GENERATION NEXT YR NOV 25, 2005 BEIJING - China's coal output is expected to exceed 2.1 billion tons this year, up about 8 per cent over the figure for the previous year, according to the China Coal Industry Association. The nationwide demand of coal for power generation, meanwhile, is estimated to reach 1.12 billion tons this year, an increase of 120 million tons over last year. CHINA NATIONAL PETROLEUM CORP APOLOGISES OVER RIVER POLLUTION NOV 25, 2005 HARBIN - Deputy general manager of China National Petroleum Corp.(CNPC) Zeng Yukang expressed his sincere sympathy and deep apologies to the residents of northeast China's Heilongjiang province, for the pollution of the Songhua River caused by the blast in a chemical plant under the CNPC Jilin Petrochemical Company. Zeng, who is also director of Daqing Petroleum Administration Bureau, came to Harbin on Wednesday, heading a drilling crew which is to dig 100 deep groundwater wells for universities and collegesas well as water and heat suppliers in the city. CHINA TO BUILD HUGE HYDROPOWER STATION AT BAIHETAN NOV 25, 2005 BEIJING - China plans to build an extra-large hydropower station at Baihetan (White Crane River section) in Zhaotong, located in southwest China's Yunnan Province. The 47.966 billion yuan (US$5.9 billion) project has entered the feasibility study stage with construction expected to start in 2008. CHINA'S COSL SIGNS DRILLING CONTRACTS IN MYANMAR, AUSTRALIA NOV 28, 2005

BEIJING - China Oilfield Services Limited (COSL), a subsidiary of China National Offshore Oil Corporation (CNOOC), has secured two drilling contracts in Myanmar and Australia, said sources with CNOOC, China's largest offshore oil producer Friday. The parties entering into the contracts with COSL are Daewoo International Corporation and Australia-based Woodside Energy Ltd. COSL's semi-submersibles NH II and NH VI won the biddings and will commence their drilling services respectively in the respective seas, said the sources. CHINA TO RETAIN OIL SURCHARGE FOR DOMESTIC FLIGHTS TO MARCH NOV 28, 2005 BEIJING - Soaring international oil prices have prompted the Chinese authorities to decide to extend the deadline on imposing additional fees on jet fuel from December 31 to March 31, next year, the Economic Information Daily said. The decision was jointly announced on Wednesday by the National Development and Reform Commission and the Civil Aviation Administration of China (CAAC), the report said. CHINA TO GIVE PRIORITY TO HYDROPOWER IN ENERGY DEVELOPMENT NOV 28, 2005 BEIJING - In view of the energy source mix in China, priority must be given to hydropower in energy development, according to Zhang Guobao, vice-minister of the National Development and Reform Commission (NDRC). Speaking at a news release on results of a recent nationwide survey on waterpower resources, Zhang said the country plans to expand its hydropower installed capacity by 80 per cent to 180 million (kilowatts) kw by 2010 and further to 300 million kw by 2020, from the 100 million kw or so by the end of 2004. CHINA LIKELY TO FULLY LIBERALIZE COAL PRICES NEXT YEAR: REPORT NOV 28, 2005 BEIJING - China is likely to fully liberalize coal prices next year, China Securities Journal reported on November 25, quoting sources attending a closed-door meeting of domestic coal producers here this week. If so, the price of high quality coal for power generation is set to rise further, while that of low heat value coal for power generation is likely to remain stable or rise too, the report says. CHINA TO INVEST HEAVILY IN POWER GRID CONSTRUCTION NOV 28, 2005 BEIJING - China's two power grid operators, the State Grid Corporation of China (SGCC) and the China Southern Power Grid (CSPG), plan to invest 900 billion and 300 billion yuan (US$37.1 billion), respectively, in the building of power grids in the next five years (20062010), according to a recent report by the National State Development and Reform Commission (NDRC). This means an average annual investment of 250 billion yuan, as against 138 billion in 2004 and 150 billion in 2005. CNPC EXPANDS ITS COOPERATION WITH TURKMENISTAN NOV 28, 2005 ASHGABAT - Turkmengaz State Concern and the China National Petroleum Corporation (CNPC) have signed a new contract on delivery of hoisting machinery for the overhaul of gas wells. According to the decree signed by the Turkmen President, the total value of 10 hoisters and spare parts exceeds US$14.5 million. Currently, the oil and gas sector accounts for more than half of investment projects realized by Chinese companies in Turkmenistan. Two 100 million yuan (US$12.4 million) tax credits of the Chinese Government allocated in 1998 and 2000 were spent on the purchase of lifting equipment and drilling machinery. CHINA'S TOP OIL, GAS PRODUCERS CALL FOR HIGHER PRICES NOV 29, 2005

BEIJING - China's top oil and gas producers PetroChina and Sinopec yesterday said government-controlled prices for natural gas discouraged them from investing in gasfields, because they fear they will not make a profit. They say the government should raise gas prices to avoid this situation. CNOOC EXPECTS TO TIE UP IMPORT OF LNG FROM GORGON PROJECT NOV 29, 2005 BEIJING - CNOOC's negotiations on Liquefied Natural Gas (LNG) in the Gorgon project in Australia are still under way, the senior manager of China National Offshore Oil Corporation (CNOOC), China's largest offshore oil corporation, said Monday. Vice President of CNOOC Wu Zhenfang said at the China Gas Summit 2005 held here that the prospects of CNOOC importing LNG from the Chevron-lead Gorgon project are still good. XINJIANG LEADS CHINA IN GEOLOGICAL GAS RESERVES NOV 29, 2005 URUMQI - Xinjiang Uygur Autonomous Region, northwest China, announced it has 1.06 trillion cubic meters of proven geological gas reserves on land, ranking first in the country. The regional bureau of land resources said in a recent press release that Xinjiang also placed second in the country, only after Heilongjiang Province, northeast China, with 3.1 billion tons of verified geological petroleum reserves on land. NUCLEAR INDUSTRY RESEARCH BASE LAUNCHED IN SHANGHAI NOV 29, 2005 SHANGHAI - The China Nuclear Industry Group (CNIG) set up Sunday a research base for nuclear power, instruments for civilian use, and military industry, in Shanghai, according to sources with CNIG. Located in Shanghai Caohejin high-tech development zone, the research base covers 21,000 square meters of floor space, and will combine the functions of management, service and trade. CHINA'S JIANGSU PROVINCE PROMOTES GASOHOL USAGE NOV 29, 2005 BEIJING - Five cities in east China's Jiangsu Province will begin gasohol usage from January 1, 2006. The five cities are Xuzhou, Lianyungang, Huaian, Yancheng and Suqian. Following the five, cities including Nanjing in south Jiangsu will be required to use gasohol instead of common gasoline during the 11th Five-Year period (2006-2010). CHINESE INVESTORS TO BUILD US$250 MLN POWER PLANT IN N. SUMATRA NOV 29, 2005 MEDAN - Chinese investors will build a coal power plant worth US $250 million (Rp2.5 trillion) in Belawan, Medan, North Sumatra, an executive said. "The plant will produce 600 MW of electricty and is expected to operate in the next 30 months," Awong Wijaya of PT Toba Sia Power said when he met deputy governor of North Sumatra Rudolf M Pardede at the latter's residence here on Monday. PIPELINE OPENS IMMENSE PROSPECTS FOR CHINA IN CENTRAL ASIA NOV 29, 2005 BISHKEK - With the final place welded in place on November 13, the new 1000 kilometre transnational pipeline between China and Kazakhstan has opened the region to a new range of possibilities. After 18 months of work, the section of the pipeline connecting China to Kazakhstan through the Altaw Pass has been completed thus preparing the countries for an energy exchange that is expected to meet the needs of up to 20 million tons of oil a year.

CHINA'S ENERGY DEMAND POSES NO THREAT TO WORLD MKT: OFFICIAL NOV 30, 2005 BEIJING - A Chinese official said Tuesday that the country has eased its pressure on energy supply, with its surging demand for energy posing no threat to the world energy market. "China's astonishing energy demand has been greatly reduced this year," said Wu Guihui, deputy director of the energy bureau of the National Development and Reform Commission at the 2005 China Gas Summit held here from Monday to Tuesday. CHINA'S COAL INVENTORY RISES FOR 7 CONSECUTIVE MONTHS NOV 30, 2005 BEIJING - China's coal inventory has risen for seven consecutive months since April. According to the latest data released by the China Coal Transport & Distribution Association, the nationwide coal inventory reached 139 million tons by the end of October, posting an increase of 3 million tons over a month before and 26.72 per cent over a year earlier. GAS COULD BECOME IMPORTANT ENERGY SUPPLEMENT IN CHINA: REPORT NOV 30, 2005 GUIYANG - A report by the Chinese Academy of Engineering points out that by rationally utilizing gas resources, China could generate over 100 billion kWh of electricity a year. Gas could thus become an important supplement to various major energies in China. The report says that the amount of various gas resources in China is huge. If they are rationally collected and utilized, China could generate an additional 120 billion kWh of electricity a year, accounting for over 6 per cent of the country's total power output. CHINA'S LUBRICATING OIL PRODUCTION DROPS IN OCT NOV 30, 2005 BEIJING - China produced 408,100 tons lubricating oil in October this year, down 9.81 per cent month-on-month and 4.10 per cent lower year-on-year, according to statistics released by the State Bureau of Statistics. Beijing Tongyi Petroleum Chemical Co. Ltd produced 36,200 tons of lubricating oil in October, up 9.70 per cent year-on-year and ranking first for the month among other lubricating oil producers in the country. CHINA'S COAL INDUSTRY TO MAINTAIN HIGH PROFITABILITY NOV 30, 2005 BEIJING - China's coal industry is likely to maintain high profit margins in the next five years as the country's coal demand is expected to continue with a firm growth and keep the coal prices at high levels, according to a forecast made by the Development Research Center of State Council. A report released by the center predicts that, revenue by coal enterprises of larger scales in 2006 is estimated to rise by 10.6 per cent to 603.1 billion yuan (US$74.7 billion). Their profit will rise by 11.6 per cent to 59.4 billion yuan with the profit rate set at 9.85 per cent. "MEMORANDUM OF UNDERSTANDING IN MYANMAR'S RUILI (SHWELI) RIVER AND N'MAI HKA RIVER BASIN DEVELOPMENT COOPERATION" SIGNED IN KUNMING DEC 1, 2005, Yunnan Daily (Translated by Kevin Li – kevinysli@gmail.com ) On November 30, Yunnan Machinery Equipment Export-import Corporation (YMEC) and Myanmar Ministry of Electricity signed the "Memorandum of Understanding in Myanmar's Ruili (Shweli) River and N'mai Hka River Basin Development Cooperation" in Kunming. The Myanmar Minister for Electric Power Maj-Gen Tin Htut, the Deputy Governor of Yunnan Province Liu Ping and the governor assistant Tan Lilu attended the signing ceremony. Ruili (Shweli) River, which is a tributary of Irrawaddy River Basin, originates in the west part of Gaoligong Mountain in Yunnan's Tengchong Prefecture. It merges with Nanhuan River in Ruili City and flows into Myanmar. Yunnan Machinery Equipment Export-import Corporation

will build a three-dam cascade, together with Myanmar side, on the Ruili (Shweli) River, under the Build-Operate-Transfer mode of cooperation. N'Mai Hkai River, a major tributary of Irrawaddy River, originates in Tibet and is called Dulong River in China. It is called N'Mai Hkai River when flowing into Myanmar. The river starting from N'Mai Hkai River is 600 km long, and the altitude difference is 100 m. According to preliminary estimate, the river's installed hydropowr capacity will be over 10,000 MW. Yunnan has reached consensus over the N'Mai Hkai River's development cooperation. Myanmar will grant Yunnan a preference for the river's development. BP SOLAR ESTABLISHES SOLAR PHOTOVOLTAIC JV IN CHINA DEC 2, 2005 BEIJING - World energy giant BP group announced Thursday that its subsidiary BP Solar has signed a contract with a local company to form a joint venture to develop solar photovoltaic in China. The joint venture, established with China Xinjiang SunOasis Co., will see the creation of two companies, BP SunOasis Company Limited and BP SunOasis (Prime) Company Limited, which together will manufacture, market and sell solar photovoltaic (PV) products and systems in China. LOW DOMESTIC GAS PRICES MAY DAMPEN CHINA'S LNG IMPORT: CNOOC DEC 2, 2005 BEIJING - China's plan to build 10 LNG (liquefied natural gas) terminals by 2010 will probably be delayed because of the disparity between high international but low domestic natural gas prices, an official with CNOOC said. Addressing the Second Sino-RussiaKazakhstan Petroleum Forum here on December 1, Zhang Weiping, deputy Chief Economist of CNOOC, said that the price disparity to some extent will contain LNG development in China, but the trend that China will develop LNG industry will not change. CNOOC ESTABLISHES REFINERY TO IMPROVE PRODUCTION CHAIN DEC 2, 2005 BEIJING - China National Offshore Oil Corporation (CNOOC), China's largest offshore oil corporation, has founded a petroleum refinery, the CNOOC Petroleum Refinery Co Ltd, in a bid to achieve coordinated development. As a wholly owned company of CNOOC, the refinery, with a registered capital of one billion yuan (US$123.8 million), received its business license from the State Administration of Industry and Commerce on November 2005. CHINA'S TIANJIN TO INVEST US$371.4 MLN IN TWO PORT PROJECTS DEC 2, 2005 TIANJIN - Tianjin Municipality in north China will invest 3 billion yuan (US$371.4 million) in building two projects at Tianjin Port - a 300,000 ton crude oil berth project and a 250,000 ton navigation channel project, according to the municipal development and reform commission. The crude oil berth project involves an investment of 1 billion yuan will be jointly funded and built by Tianjin Port (Group) Co. Ltd and China Petroleum & Chemical Corp (Sinopec). With a coastline length of 440 metres, the project will have an annual designed handling capacity of 20 million tons of crude oil. CHINA FORECAST TO IMPORT LESS CRUDE OIL IN 2006 DEC 5, 2005 BEIJING - China may import less crude oil next year than this year, remaining at the level of last year, said a senior official with the China Petroleum and Chemical Industry Association (CPCIA), China's major petroleum industry association, Friday. Zhou Zhuye, secretarygeneral of the CPCIA said at the 2nd Sino-Russo-Kazakh Oil Forum held here that according

to estimates made by the CPCIA, China's crude oil demand may reach 300 million tons with domestic output reaching approximately 180 million tons. INDIA'S PETRONET TO HIRE EXMAR LNG SHIP FOR US$82,000 PER DAY DEC 5, 2005 NEW DELHI - Petronet LNG Ltd, India's largest liquefied natural gas importer, will hire a third LNG ship from a consortium led by Exmar of Belgium at a day rate of about US$82,000 to increase LNG imports to 7.5 million tonnes by 2009-10. The consortium of Exmar-Indian Oil Corp-Varun Shipping bid lowest in the Petronet tender for time chartering a 156,000 cubic meters capacity LNG tanker when the bids opened on Thursday, a top company official said. REPORT SUGGESTS JVS BETWEEN CHINA'S ALUMINUM, POWER PRODUCERS DEC 5, 2005 BEIJING - China's National Development and Reform Commission (NDRC) has released a report titled the `Situation and Prospects for Main Nonferrous Metals Industries,' suggesting that electrolytic aluminum producers should tie up with electric power plants to set up joint ventures to sharpen competitiveness. The report outlined prospects for the electrolytic aluminum production in 2006. CHINA MULLS INVESTMENTS IN PAKISTAN'S AGRICULTURE, POWER SECTORS DEC 5, 2005 ISLAMABAD - International Water & Electric Corporation of China and China Development Bank delegations separately held meetings with Prime Minister Shaukat Aziz and discussed plans to invest in various sectors in Pakistan. Jin Channing, President China National Chemical Engineering Corporation said his company was negotiating joint business with Pakistani companies in fertiliser business. He appreciated the government of Pakistan for its investment-friendly policies, transparency in privatisation policy and conducive atmosphere for business and trade activities. CHINESE BANKS PROVIDE US$2.4 BLN LOAN FOR HYDROPOWER PLANT DEC 5, 2005 CHENGDU - Three major Chinese banks will jointly provide a total of 19.6 billion yuan (US$2.42 billion) in syndicated loans to the construction of the Jinping Cascade I hydropower Station in Southwest China's Sichuan Province. The three banks, the Sichuan Branch of the State Development Bank, the Sichaun Branch of the Agricultural Bank of China and the Sichuan Branch of the Industrial and Commercial Bank of China (ICBC) signed an agreement on the loan with the Ertan Hydropower Development Co Ltd in Chengdu. CNOOC ANNOUNCES OIL PRODUCTION FROM NEW OIL FIELD DEC 6, 2005 BEIJING - China National Offshore Oil Company Limited (CNOOC Ltd.) announced Monday that its independent oil field in the Eastern South China Sea has come on stream successfully. The oil field, Lufeng (LF) 13-2, is flowing about 18,000 barrels of oil per day from three horizontal wells. The production capacity of these wells is tested at 30,000 barrels of oil per day. SHENGLI OILFIELD FACES US$111 MLN POLLUTANT DISCHARGE FEE DEC 6, 2005 BEIJING - Shengli Oilfield, Sinopec's largest oilfield, faces over 900 million yuan (US$111.4 million) in environmental protection charges for discharging oil mud, a kind of solid waste mixed by mud and crude oil spilling from the production process. An official with the

Environmental Protection Administration (EPA) of Dongying City, Shandong Province, said that the administration is checking the exact volume of oil mud discharged before deciding what action to take. According to related rules, EPA may charge 1,000 yuan for the discharge of every ton of oil mud. INDIA'S SUZLON SECURES CONTRACTS FROM CHINESE, S KOREAN COS DEC 6, 2005 MUMBAI - Asia's largest integrated wind power company, Suzlon Energy Limited has secured a contract from China-based Guohua Xilinguole New Energy & Source Co Ltd for a wind farm project. Suzlon informed the National Stock Exchange that the 'Guohua Inner Mongolia Huitengliang' wind farm project comprises 40 wind turbine generators (WTGs) of 1.25 MW each, totalling 50 MW. EGAT, BURMA TO SIGN DEAL DEC 6, 2005 The Nation http://202.60.196.117/breaking/read.php?lang=en&newsid=99472 Egat Plc is set to ink an agreement with the Burmese electricity authority on Friday to form a joint venture to construct at least five hydropower plants in Burma with a combined capacity of 10,000 megawatts. CEO Kraisi Karnasuta said yesterday that the energy ministers of the two countries would witness the signing ceremony. The memorandum of understanding will encourage the JV to put up a hydropower plant at the Wegyi Dam in Burma. The project will spin off mutual benefits. Both countries will enjoy energy security and Thailand can import electricity from Burma at a low cost. The dam is located on a stretch of the Salaween River across from Tak, Kraisi said. Total capacity of the power plant is planned for 1,200MW. Egat will approach prospective investors both in Thailand and abroad to join in the project, which is expected to take five to six years to complete. China has already expressed interest, he said. Allying with China would reduce construction costs as it can move equipment that was used on building a dam in Burma near their border. Thailand and Burma will co-invest in constructing other hydropower plants on the Salaween. The second plant will be located opposite Prachuap Khiri Khan province, with a capacity of 600MW. The output will be supplied directly to the Sahaviriya Steel mill in the province. The whole scheme of five hydropower plants along the Salaween will ensure energy security in the Asean region. THAILAND AND BURMA TO SIGN HYDROELECTRIC DAM PACT DEC 7, 2005, Bangkok Post http://www.bangkokpost.com/breaking_news/breakingnews.php?id=66217 (TNA) Thailand and Burma plan to sign a Memorandum of Understanding (MOU) on joint investment in building a series of hydroelectric dams on the Salween River in Burma on Friday, Egat President Kraisi Kanasuta said. Mr. Kraisi said the construction of five dams had been planned along the Salween River and is expected, when completed, to generate a total of more than over 10,000 megawatts of power. The project is designed not only to secure electricity for Thailand, but also to generate much-needed income for Burma, he said, while Thailand will benefit from low cost electricity. The project could also help support an integrated power grid plan of the Association of Southeast Asian Nations (Asean), according to Mr. Kraisi. On Friday Egat, formerly a state enterprise previously known as the Electricity Generating Authority of Thailand, would sign the MOU with Myanmar's state electricity organisation to jointly invest in construction of the series dams along the Salween River, he confirmed. The energy ministers of the two countries will witness the signing ceremony, he said. The Hat Gyi Hydroelectric Dam is expected to be the first of the series of dams to be built, he said, taking five to six years to complete, for a capacity of 1,200 megawatts. The dam is near the Thai-Burma border, opposite Mae Sot district of Tak Province. China has expressed interest in joining the project, he said, adding that the Chinese participation is expected to reduce the cost of construction. "China has nearly completed the T-Gorges Dam

along the Yangtse River; so equipment can be moved to for use at the Salween dams project," Mr. Kraisi said. Further discussions must be conducted before deciding on China's participation, the Egat president said. POWER PLANT IN CHINA'S CHENGDU TO TURN WASTE INTO ENERGY DEC 7, 2005 BEIJING - A power station which burns rubbish to generate electricity is set to be built in Chengdu, the capital of Sichuan Province. Bidders are being invited from around the world to build the station, which will be located in Luodai Town of Longquanyi District in Chengdu. GAS CONDENSATE FIELDS TO BE DEVELOPED IN NW CHINA DEC 7, 2005 BEIJING - Work on the development of the gas field in Yingmaili in Tarim Basin, the country's largest gas condensate field, started recently in northwest China's Xinjiang Uygur Autonomous Region, marking the beginning of the second phase of the project to divert natural gas and petroleum from western to eastern regions. It is reported that the first group of three gas fields of Tarim Oilfield has so far supplied a total of 4 billion cubic meters of natural gas to the eastern regions. SHANGHAI PETROCHEMICAL DEVELOPS COMPLETE SET OF PTA TECHNOLOGY DEC 7, 2005 BEIJING - Shanghai Petrochemical (SP) has succeeded in developing a complete set of 800,000-ton PTA production technology for manufacturing world-class PTA equipment, according to an announcement by the company. The company has decided to apply the technology in building the one-million-ton class PTA project within the Sinopec system. INDIA'S QUIPO OIL & GAS IN JV WITH RUSSIAN COMPANY FOR DRILLING DEC 7, 2005 NEW DELHI - SREI Infrastructure Finance group company Quipo Oil and Gas on Monday signed an MoU with with Russian firm Oil Technologies Overseas to jointly start drilling operations in India and Russia. While Quipo would support the joint venture through its financial and equipment strengths, OTO would provide technology, training and specialised software for eneregy sector, a company release said. CHINA NATIONAL PETROLEUM IN TALKS TO BUY PNG GAS: REPORT DEC 7, 2005 PORT MORESBY - China National Petroleum, the biggest Chinese oil company, is in talks with the Papua New Guinea Government about buying natural gas, Petroleum and Energy Minister Moi Avei of Papua New Guinea said Monday. The International Herald Tribune reported that an initial accord may be signed between the government and the Chinese company during a planned visit by Avei to China early next year. CHINA'S CNPC: NO INTENTION TO LIST ON A-SHARE MARKET DEC 7, 2005 BEIJING - China National Petroleum Corporation`s (CNPC) accountant-in-chief, Gong Huazhang, said over the weekend that the group has no plans for an integrated listing on the domestic A-share market. The comment was made during a lecture at Tsinghua University on December 3, 2005 when Gong said CNPC's overseas operation is expected to yield shared oil of about 50 million tons/year by 2010, and 100 million tons/year by 2020. In 2005, CNPC's overseas production will reach 35 million tons, and a considerable increase is likely in 2006 due to the recent acquisition of PetroKazakhstan (PK).

CNOOC TEAMS UP WITH DEVON FOR DEEPWATER EXPLORATION DEC 8, 2005 BEIJING - China National Offshore Oil Corporation (CNOOC), China's largest offshore oil producer, has signed a production sharing contract with US-based Devon Energy Corporation recently for a deepwater block in South China Sea, according to CNOOC Wednesday. The contract for the Block 42/05 was signed on Tuesday. OVERVIEW OF CHINA'S POWER INDUSTRY IN JAN-OCT DEC 8, 2005 BEIJING - For the January-October period, industrial added value realized by China's power industry hit 5,690.601 billion yuan (US$704.6 billion), up 16.3 per cent from the same period of last year. For October alone, it stood 613.993 billion yuan, up 16.1 per cent. Power production and consumption in China have both maintained hefty growth. In October, as many as 10 power grids were forced to shut off to avoid overloading. CNPC, ONGC MAY BOOST RESERVES WITH JOINT SYRIAN OIL SHARE BID DEC 9, 2005 BEIJING - China's biggest oil producer is working with India's state-owned oil firm to secure more oil reserves in Syria to meet surging domestic energy demand. The China National Petroleum Corp (CNPC), parent company of Hong Kong and New York-listed PetroChina, has confirmed it will be teaming up with India's Oil and Natural Gas Corp (ONGC) (BSE:ONGV5) to bid for assets worth up to US$1 billion in Syria. CHINA'S 2ND LARGEST HYDROPOWER PROJECT TO START CONSTRUCTION DEC 9, 2005 CHENGDU - China's second largest hydropower station will start construction in late December and is expected to boost the local economy, said Wang Huaichen, vice-governor of Sichuan Province in southwest China. Xiluodu Hydropower Station, with about 67 billion yuan (US$8.3 billion) of investment, is expected to bring about 300 million yuan of revenue to Sichuan annually when it is completed, Wang said. HYDROPOWER D'MENT SET TO BOOST CHINA'S HEAVY EQUIPMENT SECTOR DEC 9, 2005 BEIJING - Hydropower development in southwest China will boost China's heavy-duty equipment industry, said Wang Huaichen, vice-governor of Sichuan, a province that has been designated as one of the major centres for the country's hydropower development. The great many projects in the works will not only help ease power shortages in the country but also create a tremendous market for heavy-duty equipment, Wang said. INDIA'S SUZLON BAGS ORDERS WORTH US$49 MLN FROM CHINA, S. KOREA DEC 8, 2005 MUMBAI - Wind energy company Suzlon Energy (NSI:SUZLON) on Tuesday said it has bagged orders worth Rs 2280 million (US$49.4 million) in China and South Korea. Suzlon has received order worth Rs 1720 million for Chinese the Guohua Inner Mongolia Hultengliang wind farm project, a release said here on Tuesday. BP INDONESIA TO CHANGE CONTRACT VALUE OF LNG SHIPPED TO CHINA'S FUJIAN DEC 12, 2005 JAKARTA - The value of liquefied natural gas (LNG) to be shipped to China's province of Fujian under a long term contract from Tangguh will change, a BP Indonesia official said. BP Indonesia, the operator of the Tangguh LNG plant is still negotiating with Fujian on a number of conditions in the contract not yet agreed upon, said Nico Kanter, executive vice president of the company.

CHINA'S ANNUAL OIL OUTPUT SET TO EXCEED 200 MLN TONS DEC 12, 2005 BEIJING - China's annual oil output is expected to surpass 200 million tons in the 20102015 period, and the production capacity will last for at least 15 years, a senior official with the Ministry of Land and Resources said on Saturday. Addressing a forum on China's energy market building and energy risk control, Che Changbo, deputy director of the ministry's Oil and Gas Resources Strategic Research Center, said China's proven oil reserve would increase 800 million to one billion tons a year between 2005 and 2020. TRADING OF US$185 MLN CHINESE PETROLEUM BONDS STARTS DEC 12, 2005 BEIJING - Trading of the 1.5 billion yuan (US$185.7 million) corporate bonds issued by the National China Petroleum and Natural Gas Co. Ltd. (NCPNC) started at the Shenzhen Stock Exchange today. The bonds were issued by NCPNC in 2003 with a maturity term of 10 years, bearing a fixed interest rate of 4.11 per cent payable on the annual basis. INDONESIA-CHINA 2002 LNG DEAL STILL ON HOLD DEC 12, 2005 JAKARTA - A contract signed in 2002 to export LNG from a plant in Papua to Fujian, China, is yet to be implemented, an Indonesian official said on Friday. Deputy Executive Director of the Indonesian Oil Affairs Agency (BP Indonesia) Nico Kanter said that the terms and conditions of the contract had not been finalised. BP INDONESIA STILL UNABLE TO CONFIRM GAS SUPPLY TO PUPUK KUJANG DEC 12, 2005 JAKARTA - Executive Vice President of BP Indonesia Nico Kanter said his company could not yet confirm the date of natural gas delivery to fertilizer company PT Pupuk Kujang IA in West Java. "We cannot yet confirm when the technical checking on our gas pipeline will be finished," Nico said here Friday. CHINA'S FUEL OIL IMPORTS EXPECTED TO FALL 14% THIS YEAR DEC 13, 2005 BEIJING - Fuel oil imports, which supply more than half of China's domestic oil needs, are expected to fall 14 per cent this year, in contrast with an 18 per cent increase last year. This is due to the government's macro-controls over the last year to cool down the overheated economy, as well as the surging oil prices, which are helping to harness the domestic demand for oil, industry insiders yesterday told China Daily. GE LAUNCHES ENERGY EQUIPMENT LEASING ORGANIZATION IN CHINA DEC 13, 2005 SHANGHAI - GE Power Group has recently launched an energy equipment leasing facility in China to provide services in leasing power equipment to meet the demand of the Beijing 2008 Olympic Games. The facility is located in the hydropower station of the Xiaoshan Economic Development Zone in East China s Zhejiang Province. SINO-US SOLAR ENERGY PROJECT TO BE BUILT IN CHONGQING DEC 13, 2005 CHONGQING - The Chongqing Municipal Construction Investment Company, the Chongqing Public Communication Group Company and the Chongqing Duanshi Group Company have recently signed an agreement with ECD Company of the United State on starting a solar energy project. The project will be built in Chongqing's New and Hi-tech Zone. Covering an area of 20,000 square meters and is expected to cost US$100 million.

SHELL TO BUILD JOINT FILLING STATIONS IN CHINA'S CHONGQING DEC 13, 2005 CHONGQING - Shell Company is negotiating with a large non-state enterprise on setting up joint filling stations in Chongqing in southwest China. Shell may take the controlling shares and provide brand, management and gasoline supply, while the Chinese non-state firm will be charged with expanding filling station network. INSTALLED CAPACITY OF CHINA'S DATANG GROUP EXCEEDS 40 MLN KW DEC 13, 2005 BEIJING - With the No. 1 600,000-kW generating units of the Wangtan Power Plant of Datang International going into operation in North China's Heibei Province recently, the total installed capacity of Datang Group reached 40.2496 million kilowatts (kW). Datang is the second power group in China whose installed capacity has exceeded 40 million kW. CHINA ANNOUNCES 80 MLN TON COAL EXPORT QUOTA FOR 2006 DEC 13, 2005 BEIJING - China's National Development and Reform Commission has announced a 80 million ton coal export quota for 2006. The quota will be distributed to export applicants according to their previous export performance, use of quota and volume of applied export. CHINA'S YANZHOU COAL MINING GROUP MAKES BREAKTHROUGH DEC 13, 2005 BEIJING - The Yanzhou Coal Mining Group, based in East China's Shandong Province, has announced a breakthrough by one of its subsidiaries in the coal-to-oil technology after its experiments in the Fischer-Tropsch (F-T) synthetic device proved to be a success. An expert panel deemed that the technology has reached advanced international standards. The coalto-oil company has applied for patents on 16 items of technology and patents for eight of them have already been granted by the National Patent Office. CHINA TO ISSUE SUPPORTING POLICIES FOR RENEWABLE ENERGY LAW DEC 14, 2005 BEIJING - China's supporting policies with regards to the Renewable Energy Law are in the process of being formulated and are expected to be issued very soon, said an official from the National Development and Reform Commission (NDRC) recently. Related measures of electricity price have been drawn up and are set to be published at the end of this year as scheduled, according to the official. OVL, CNPC MAKE JOINT BID FOR SYRIAN ASSETS OF PETROCANADA DEC 14, 2005 NEW DELHI - India and China have for the first time ever made a joint bid to acquire oil and gas assets in Syria. "We have made a joint bid with China's CNPC for acquiring Syrian properties of PetroCanada," ONGC chairman and managing director Subir Raha told reporters. CHINA TO SOON START WORK ON 2ND LARGEST HYDROPOWER PROJECT DEC 14, 2005 CHENGDU - Construction of China's second largest hydropower station, Xiluodu Hydropower Station, will start in late December, according to sources with the China Three Gorges Project Corporation. An official with the corporation said that three years of preparations including the technical plan, environmental protection, water protection, and the relocation of over 7,000 residents in the construction area, have paved the way for the smooth operation of the project.

CNOOC TO EXPLORE OIL FIELDS WITH US-BASED COMPANY DEC 14, 2005 BEIJING - China National Offshore Oil Corporation (CNOOC), China's largest offshore oil producer, announced Tuesday that it has entered into a new production sharing contract in the South China Sea with US-based Newfield Exploration Company. The contract for block 17/08 was signed on Monday. CHINA'S SICHUAN PROVINCE FOCUSES ON HYDROPOWER DEVELOPMENT DEC 14, 2005 CHENGDU - Sichuan Province in southwest China will usher in a peak period for developing hydropower development in the coming five years according to the provincial 11th five-year program (2006-2010). According to the program, the province will push forward the construction of Pubugou Hydropower Station with a total investment of 20 billion yuan (US$2.5 billion), the first- and second-level hydropower stations at Jinbing with a total generating capacity of 8.4 million kilowatts and a total investment of some 50 billion yuan, and large hydropower stations at Xiluodu and Xiangjiaba with a combined generating capacity of 18.6 million kilowatts and an investment of 100 billion yuan. CHINA URGED TO INTRODUCE FUEL TAX DEC 15, 2005 HAIKOU - A Chinese Academy of Engineering (CAE) academic has suggested that fuel tax should be levied in the Chinese mainland to urge vehicle owners to consume petroleum more reasonably and economically. CAE academic and vice president of China Petroleum and Chemical Corporation (Sinopec), Cao Xianghong, made the suggestion in a report he released at the 5th Academic Annual Conference by the divisions of chemical, metallurgical and materials Engineering, which concluded on Wednesday at Bo'ao town of China's southernmost province of Hainan. SUNTECH POWER HOLDINGS CO LISTS IN NEW YORK DEC 15, 2005 BEIJING - Suntech Power Holdings Co Ltd, one of the world's leading solar energy companies, was last night due to make its IPO (initial public offering) debut in New York, hoping to raise US$395.7 million. The company was offering 26.38 million American depository receipts on the New York Stock Exchange at US$15 each as China Daily went to press. The price was the top end of its revised price range, Suntech said. CHINA CONFIRMS MAJOR NATURAL GAS FIND DEC 15, 2005 BEIJING - A new natural-gas field in Northeast China has proven reserves of 100 billion cubic metres, more than double this year's estimated production, Daqing Oilfield said yesterday after a State expert team verified the find. Last month, Wang Yupu, president of Daqing Oilfield Co Ltd, said a preliminary probe showed that the gas field has reserves of at least 100 billion cubic metres. CHINA'S SHANXI SET TO REDUCE COAL SUPPLY BY OVER 100 MLN TONS DEC 15, 2005 TAIYUAN - China's major coal producer Shanxi Province is predicted to reduce coal supply by more than 100 million tons next year, according to the provincial department of the coal industry. Main reasons for the reduction are the close of many mine shafts due to unsafe production, the fight against illegal mining of coal and more efforts to curb overcapacity.

CHINA'S OIL & CHEMICAL INDUSTRY PROFIT SURGES 33.5% IN JAN-OCT DEC 15, 2005 BEIJING - Profit of China's oil and chemical industry topped 306.46 billion yuan (US$37.9 billion) in the first ten months of this year, up 33.5 per cent year-on-year, according to a China Association of Oil and Chemical Industry report. The added value of the industry was 706.72 billion yuan in the period, up 26.8 per cent year-on-year; sales revenue was 2.64738 trillion yuan, up 35.2 per cent; and the sales rate was 98.52 per cent. INDIA-CHINA ENERGY PARTNERSHIPS IN THE PIPELINE: MINISTER DEC 16, 2005 NEW DELHI - Petroleum Minister Mani Shankar Aiyar will visit to China next month as part cooperation plans with China, in the hydrocarbons sector. India and China, and their oil and gas firms are likely to sign a slew of MoUs for collaboration in the hydrocarbon sector during the visit. CHINA-KAZAKHSTAN PIPELINE BEGINS TO PUMP OIL DEC 16, 2005 ATASU - The 960 kilometre pipeline linking China and Kazakhstan began to carry oil to China on Thursday. Kazakh President Nursultan Nazarbayev pushed a button at the headquarters of the national KazMunaiGaz company in the capital, Astana to open the flow from the pipeline that starts in the central town of Atasu, 280 km south of Astana. WORK BEGINS ON 1000 MW CHINESE NUCLEAR POWER PLANT DEC 16, 2005 BEIJING - Construction got under way yesterday on the country's first 1,000 megawatt-level, domestic-built nuclear power plant in Shenzhen, located in south China's Guangdong Province. The cornerstone-laying ceremony for Ling'ao II was led by Zeng Peiyan, the vicepremier of the State Council, and Zhang Dejiang, secretary of Guangdong Committee of Communist Party of China. TWO PETROCHINA SUBSIDIARIES DELISTED FROM SHENZHEN BOURSE DEC 16, 2005 BEIJING - Two subsidiaries of PetroChina Liaohe Oilfield (SZ:000817) and Jinzhou Petrochemical (SZ:000763) have been delisted from the Shenzhen Stock Exchange as of December 15 following the completion of the tender offers for takeover made by PetroChina. The remaining shares of the two listed subsidiaries held by public investors not yet sold to PetroChina may be sold within the given period to PetroChina at the original offered prices through the share custodial securities outlets, with the stock codes unchanged. CHINA CUTS CONTRACTED INDONESIAN LNG IMPORT BY OVER 60 PCT DEC 16, 2005 JAKARTA - The Indonesian government said China's province of Fujian will only be able to import 1 million tons of liquefied natural gas (LNG) from Indonesia per year, a drop of 1.6 million tons from its contract agreement. In 1992 Fujian agreed to import 2.6 million tons of Indonesian LNG from a Papua-based operation, starting in 2008. PERTAMINA READY TO BUY LNG NOT IMPORTED BY CHINA'S FUJIAN DEC 19, 2005 JAKARTA - State-owned oil and gas company Pertamina said it will be ready to buy 1.6 million tons of liquefied natural gas (LNG) from Tangguh if China's Fujian Province decides to cut its imports. It was reported earlier that the receiving terminal of Fujian will be able only to accommodate 1 million tons of LNG from Tangguh, Papua, or 1.6 million tons less than it has agreed to import from Tangguh.

CRUDE OIL OUTPUT TOPS 10 MLN TONS IN CHINA'S TARIM BASIN DEC 19, 2005 KORLA - The crude oil output of the Tarim oilfield in northwest China's Xinjiang Uygur Autonomous Region this year hit 10 million tons Friday, sources with the Tarim Oilfield Company said. The 560,000-sq-km Tarim Basin, known as the country's strategic energy base, has thus become the sixth largest oil producer in China with an annual production exceeding 10 million tons, said Sun Longde, general manager of the company. PETROCHINA LOOKS TO BUY STAKE IN PETROKAZAKHSTAN DEC 19, 2005 BEIJING - PetroChina (SEHK:0857), the nation's biggest oil producer, is in talks with its parent company about buying PetroKazakhstan assets through a joint venture, the Hong Kong-listed oil company announced on Friday. The transaction had been widely expected in the market since PetroChina's parent company, China National Petroleum Corp (CNPC), took over PetroKazakhstan for US$4.2 billion earlier this year. CHINA'S TIANJIN DAGANG PETROCHEMICAL PARK ATTRACTS 48 FIRMS DEC 19, 2005 TIANJIN - Tianjin Dagang Offshore Petrochemical Sci-tech Park has attracted 48 enterprises, of which 18 are in operation. 16 projects with a total investment of 10 billion yuan (US$1.2 billion) will start in 2006. CHINA TO ENCOURAGE PRIVATE ENTERPRISES TO STORE OIL DEC 19, 2005 BEIJING - With a view to pluralizing the oil strategic reserve, China is exploring ways to encourage private enterprises to store oil. Zhangjiakou United Petrochemical Co., Ltd., a big private enterprise integrating oil storage, wholesale and retailing has recently won approval to expand its oil warehousing capacity from 32,000 cubic meters to 100,000-cubic meters in Zhangjiakou, North China's Hebei Province, and Shenzhen Guanghui Oil Group (Holding) Co., Ltd, one of the largest private oil companies in China, will also build a 600,000-c.m. oil tank in Yantian Port of Shenzhen, South China's Guangdong Province. CHINA TO PUBLISH GDP ENERGY CONSUMPTION DATA EVERY JUNE DEC 19, 2005 BEIJING - China will publish the previous-year indicators for energy consumption on unit gross domestic product (GDP) in all localities starting from next year, according to the National Development and Reform Commission (NDRC). These indicators will include energy consumption on unit GDP, rate of energy consumption reduction on unit GDP, energy consumption on unit industrial value added of enterprises, and electricity consumption on unit GDP. They will be released at the end of June every year. CNOOC ANNOUNCES OIL WELL DISCOVERY BY ITS PARTNER DEC 20, 2005 BEIJING - China National Offshore Oil Company Limited (CNOOC Ltd.) announced Monday that its partner, Italy-based Eni, has made a new discovery in the Eastern South China Sea. The discovery at well HZ25-4-1 is located in Block 16/19 in the Pearl River Mouth Basin, about 180 kilometers southeast of Hong Kong. TIANJIN POWER GRID PLANS US$5.4 BLN CAPITAL INVESTMENT DEC 20, 2005 TIANJIN - The power grid of China's northern Tianjin Municipality plans to invest a total of 43.8 billion yuan (US$5.4 billion) into grid construction in the coming five years from 2006

to 2010. The capital investments will be used for the construction of six 550 kilovolt (kV) DC substations, the construction of 36 new 220kV substations, expansion of another seven 220kV substations and relocation of five 220kV substations, and construction and expansion of 211 110kv and 35kv substations. CHINA'S OIL DEMAND GROWTH STABLE IN NOV DEC 20, 2005 BEIJING - According to statistics from CNPC's Petroleum Economics & Technology Research Center, China's oil demand increase was stable in November this year compared with fluctuations in previous months. China's crude output increased by 2.4 per cent in November, while demand registered a year on year growth of 5 per cent in the same month, mainly due to the country's robust economic growth, oil-gobbling heavy industry and demand for heating oil in winter. CHINA'S CRUDE OIL PRODUCTION RISES 2.4 PCT IN NOVEMBER DEC 20, 2005 BEIJING - China's output of crude oil was 14.84 million tons in November, an increase of 2.4 per cent year on year, and that of natural gas, 4.75 billion cubic meters, up 35.4 per cent, according to the latest statistics from the China Association of Petroleum and Chemical Industry. Output of caustic soda was 1.092 million tons in November, up 20.5 per cent year on year; output of ethylene, 6.82 million tons, up 21.8 per cent, and that of methyl alcohol, 466,000 tons, up 24.3 per cent. CHINA'S CRUDE OIL PRODUCTION RISES 2.4 PCT IN NOVEMBER DEC 20, 2005 BEIJING - China's output of crude oil was 14.84 million tons in November, an increase of 2.4 per cent year on year, and that of natural gas, 4.75 billion cubic meters, up 35.4 per cent, according to the latest statistics from the China Association of Petroleum and Chemical Industry. Output of caustic soda was 1.092 million tons in November, up 20.5 per cent year on year; output of ethylene, 6.82 million tons, up 21.8 per cent, and that of methyl alcohol, 466,000 tons, up 24.3 per cent. CHINA TO CLAMP DOWN ON OIL PRODUCT EXPORTS DEC 20, 2005 BEIJING -energy consumption, high pollution and resource products, the export quantity of petrol, paraffin and diesel oil should be checked by the Ministry of Commerce and the National Development and Reform Commission. No new crude oil processing trade contract will be approved any more in 2006, except for the contracts signed by Dalian Western Pacific and Zhanjiang Dongxing Oil Refinery and some long-term contracts that have been signed, says the circular. CHINA PLANS TO BUILD LARGE POWER PLANT IN KAZAKHSTAN DEC 20, 2005 ASTANA - China and Kazakhstan are considering constructing the world's largest regional power station at the Ekibastuz coal field in Pavlodar region, a source in the Kazakh power sector told Interfax. "China has proposed construction of an eight thousand megawatt regional power station, which would be the world's largest plant in its class, as well as a high-capacity transmission line to China. A specially created working group has established that this project is viable," the source said. CHINA PLANS 2ND NATURAL GAS PIPELINE DEC 21, 2005

BEIJING - China, eyeing the major potential of natural gas to reduce its heavy reliance on coal and oil, plans to build a second pipeline linking gas deposits in the west to the energyguzzling Guangdong Province in the south. The new pipeline, still in the preliminary study stage, is expected to connect the gas-rich Xinjiang Uygur Autonomous Region in the west with Guangzhou, capital city of Guangdong Province, a senior official from the Ministry of Land and Resources, told China Daily yesterday. The line will bypass Zhengzhou, capital of Central China's Henan Province. CHINA MOVES TO TIGHTEN CONTROL OVER COAL PROJECTS DEC 21, 2005 BEIJING - China's National Development and Reform Commission (NDRC) released on December 20 a document calling for stricter control over capital construction projects related to coal production. The document urges coal producing provinces and enterprises to improve coal development plans and requires that coal mine construction projects must comply with the development plan for coal industry and the general plans for coal mining areas. INDIAN OIL CORP TO INVEST IN CHINA PETROCHEMICAL COMPLEX DEC 21, 2005 BEIJING - The Indian Oil Corporation (IOC) (BSE:530965) will join hands with Sinopec in building a refinery and petrochemical complex north of Hangzhou Bay in Shanghai, with a total investment of 4 billion yuan (US$495 million). The complex will include a refinery with an annual throughput of 10 million tons, and an ethylene cracker device with an annual throughput of one million tons. It is hoped that the complex would be put into operation by 2009. CHINA TO ALLOW NON-PUBLIC CAPITAL IN HEAT SUPPLY MARKET DEC 21, 2005 BEIJING - China will permit non-public capital sources and other economic entities to take part in the investment, construction, transformation and operation of heat source plants and heat supply networks, according to a policy guide issued by eight ministries including Ministry of Construction and National Development and Reform Commission. This is to diversify investment sources and realize commercial operation in heat supply and related network construction, says the Opinions on Further Pushing Forward Heat Supply System Reform in Urban Areas issued by the eight ministries. CHINESE COS SIGN COUNTRY'S LARGEST WIND POWER GENERATION DEAL DEC 21, 2005 BEIJING - State-owned China Power Investment Corp. and Goldwind Science & Technology Co., Ltd, China's largest wind electric power generator manufacturer, have signed an agreement on equipment supply for 3 billion yuan (US$371.6 million) worth wind power plant construction projects in East and Northwest China. The agreement, covering a 200,000 kW wind power generating project in Yancheng Dongtai, East China's Jiangsu province and another project with a handling capacity of 100,000 kW in Jiuquan Anxi, Northwest China's Gansu province, is scheduled to start construction in 2006 and the commercial operation is likely to start in 2008. CHINA'S POWER GENERATING CAPACITY TO REACH 800 MLN KW BY 2010 DEC 21, 2005 BEIJING - The installed capacity of China's power industry should reach 700-800 million kW by 2010, according to analysts of the Chinese Academy of Engineering. Statistics from the China Electricity Council (CEC) show that the total installed capacity this year is expected to

reach 510 million kW. That means the country will have to install 40-50 million kW annually in the next five years. CHINA OFFERS TAX BREAKS TO ENERGY INDUSTRY DEC 22, 2005 BEIJING - China's determination to remove energy bottlenecks is reflected in the tax breaks and incentives offered to the industry yesterday. Investors are encouraged to channel capital to building hydro- and nuclear-power stations, improving electricity grids around the country, and exploring for coal, oil, gas and uranium. CHINA'S ENERGY-SAVING POLICIES SEEN TO BOOST POLYURETHANE SECTOR DEC 22, 2005 BEIJING - China's recently announced policies promoting energy saving in buildings are expected to bring great development opportunities for the polyurethane industry. Related polyurethane products manufacturers are likely to embark on strong capacity and efficiency growth starting from the new year. Polyurethane is already widely applied in China in such fields as refrigerators, containers, leather, shoe-making and textile industries. However its application in heat-preservation materials used in construction is still less than 10 per cent, as compared with nearly 50 per cent in developed nations. CHINA'S SINOPEC TO DEVELOP YADAVARAN OILFIELD IN IRAN DEC 22, 2005 BEIJING - Iran and China will sign a final contract on the development of Iran's Yadavaran Oilfield and a US$100 billion LNG purchase agreement in January 2006, said Hadi NejadHosseinian, vice minister of Iran's Oil Department, at the end of a new round of negotiations in Tehran over the weekend. This would be the biggest ever deal Iran clinches with a foreign country. CHINA'S TIGHT ENERGY SUPPLY TO EASE IN 2006: REPORT DEC 23, 2005 BEIJING - The tight supply of coal, oil and other energy products in China will ease somewhat in 2006, according to a report titled 2006 China and World Economy Development Report released by China's State Information Center. The report also forecasts that due to slower growth of fixed asset investment, the performance of industries dependent on capital investment such as iron and steel, engineering machinery, cement and glass industries is unlikely to see a turnaround within a short period, while the real estate market will recover gradually and the motor vehicle output and sales will increase some 12 per cent in the new year. NEW CHANNELS FOR EFFICIENT USE OF COAL RESOURCES IN CHINA DEC 23, 2005 BEIJING - Shanxi Province, China's top coal production base, is adopting the forms of bidding, auction and other market-oriented forms in transferring coal mining rights. These are likely to become new channels for the efficient use of mineral resources in China's coal industry. In the past, the majority of coal mining rights in the province were transferred through administration allocation, which often led to corruption. CHINESE COALMINE COS REQUIRED TO SET ASIDE SAFETY MORTGAGE FUND DEC 27, 2005 BEIJING - China's coalmine enterprises with an annual production capacity of no more than 30,000 tons are required to set aside 600,000-1,000,000 yuan (US$74,291-US$123,818) as safety mortgage fund in a special account for dealing with safety accidents as of January 1, 2005. According to the State Administration of Safe Production Supervision and

Management, coalmine enterprises with a production capacity of 30,000-90,000 tons, must set aside 1.5-2 million yuan as safety mortgage fund; and those with a production capacity of 90,000-150,000 tons, 2.5-3 million yuan. CHINA TO INCREASE NATURAL GAS PRICES DEC 27, 2005 BEIJING - The Chinese government has decided to phase out its current practice of pricing natural gas, with an aim to form a market-oriented price mechanism in the sector. Pressured by top oil and gas producers PetroChina and Sinopec, the National Development and Reform Commission yesterday also decided to increase natural gas prices by an average of 5-15 per cent - the biggest price adjustment since 1997 to make up for their production costs. CHINA, OPEC ESTABLISH COOPERATION FRAMEWORK DEC 27, 2005 BEIJING - China recently initiated a negotiation on energy supply with OPEC (Organization of Petroleum Exporting Countries), in a bid to obtain a stable oil supply from OPEC. Both sides have set up a framework on future cooperation and exchanged views on oil supply and demand, especially the security of oil supply and demand, according to a joint statement made by both sides. CHINA'S SHAANXI PROVINCE TO INVEST US$74.3 BLN IN TEN PROJECTS DEC 27, 2005 XI'AN - Shaanxi province plans to undertake ten major projects that will require an estimated 600 billion yuan (US$74.3 billion) during the eleventh five-year program period (2006-2010). Priority areas for investment include infrastructure, the building of new socialist rural areas, education, science, culture and health, and energy-efficient and environment-friendly social projects and innovative projects, according to Chen Deming, governor of Shaanxi province. CHINA'S HUANENG, OTHERS LAUNCH GREEN COAL-ELECTRICITY COMPANY DEC 27, 2005 BEIJING - China's leading power producer Huaneng and seven other energy and investment companies jointly launched a green coal-electricity company that takes zero discharge as its goal here on December 23. The new company will research, construct and operate China's first demonstrative power station with a near zero pollution discharge. CHINA'S POWER GENERATING CAPACITY SEEN TO HIT 800 MLN KW BY 2010 DEC 27, 2005 BEIJING - The installed capacity of China's power industry should reach 700-800 million kW by 2010, according to analysts from the Chinese Academy of Engineering. Statistics from the China Electricity Council (CEC) show that the total installed capacity this year is expected to reach 510 million kW. That means the country will have to install 40-50 million kW annually over the next five years. OPEC SEEKS GREATER CHINA OIL MARKET SHARE DEC 27, 2005 BEIJING - OPEC President Sheikh Ahmad Fahd al-Sabah will head a delegation to China to seek investment opportunities. It was reported that OPEC members including Saudi Arabia and Kuwait plan to invest a US$8 billion oil refinery project in China. CHINA PLANS SECOND NATURAL GAS PIPELINE DEC 27, 2005

BEIJING - China plans to build a second pipeline to transport natural gas from Xinjiang in the northwest China to the energy-thirst Guangdong Province in south China. The new pipeline will pass through Zhengzhou, capital of Central China's Henan Province. ANALYSIS - CHINA'S TIGHTER CONTROL ON COAL PROJECTS TO TRIGGER M&A DEC 27, 2005 BEIJING - China's National Development and Reform Commission (NDRC) released on December 20 a document calling for stricter control over capital construction projects related to coal production. Industry analysts say the new policy may trigger large-scale mergers and acquisitions of domestic coal enterprises, and Shanghai- and Shenzhen-listed coal companies may seize the golden opportunity for capacity expansion. SINOPEC, GE SIGN DEAL ON GASIFICATION TECHNOLOGY ROYALTY DEC 28, 2005 SHANGHAI - Sinopec International Business Co., Ltd. and GE Power have signed a royalty trade agreement, under which the gasification technology of GE will be used for the chemical fertilizer plant of Sinopec Qilu Branch. Aside from the technology royalty, GE will also supply a gasification process design package and related technological services, and 90 per cent of the gasification equipment supplied will be made in China. CHINA SEEN AS HUGE MARKET FOR RENEWABLE SOLAR ENERGY DEC 28, 2005 BEIJING - Energy experts predicted that the implementation of the Law on Renewable Resources on January 1, 2006 will open up a huge market in China for renewable solar energy. The new law is expected to boost the development of the country's solar power industry, said the experts. CHINESE STATE-OWNED CO TO PUMP US$2.5 BLN IN ALTERNATIVE ENERGY DEC 28, 2005 BEIJING - China Energy Conservation Investment Corporation (CECIC), one of the country's flagship state-owned enterprises for alternative energy development, plans to invest at least 20 billion yuan (US$2.48 billion) over the next five years to build new projects across the nation. These projects will generate electricity using alternative energy sources like wind, biomass and garbage treatment, said a senior official from the company. CHINA'S JAN-NOV POWER CONSUMPTION RISES 13.19% DEC 28, 2005 BEIJING - China's power consumption grew rapidly by 13.19 per cent on-year to reach 2184.081 billion kilowatt-hours (kWh) in January-November, 2005, according to the latest statistics released by the China Power Industry Federation. Of the total, 65.745 billion kWh of electricity was consumed by primary industry, up 6.97 per cent year on year; 1632.666 billion kWh by secondary industry, up 13.15 per cent; 230.977 billion kWh by tertiary industry, up 11.31 per cent; and 254.693 billion kWh by urban and rural residents for living use, up 16.99 per cent. CHINA'S POWER PRODUCTION RISES 12.9% IN JAN-NOV DEC 28, 2005 BEIJING - China produced 2180.190 billion kilowatt-hours (kWh) of electricity in the first 11 months of this year, increasing 12.9 per cent year on year, according to statistics provided by the National Bureau of Statistics. In a breakdown, hydropower output stood at 338.944 billion kWh, posting a hefty increase of 20.8 per cent; thermal power output accounted for 1,781.217 billion kWh, up 11.7 per cent; and nuclear power output hit 48.786 billion kWh, up 5.8 per cent.

CHINA BEGINS CONSTRUCTION OF 2ND LARGEST HYDROPOWER STATION DEC 28, 2005 XILUODU - China on Monday started building its second largest hydroelectric power project in the upper reaches of the Yangtze River. Xiluodu Hydropower Station, the first of four hydropower stations on the Jinsha River, is a major west-to-east electricity transmission project and an important move to develop China's resource-rich but poor western region. CHINA SEEKS TO REDUCE RELIANCE ON OIL DEC 29, 2005 BEIJING - China is committed to reducing oil use in the coming years by avoiding wasteful consumption and developing renewable energy as alternatives, according to a message from higher-ranking government officials. Vice Premier Zeng Peiyan said Tuesday that optimizing the energy structure will be put high on the government agenda in the next few years. By 2020, renewable energy is expected to account for 15 per cent of national consumption, up from the current seven per cent. CHINA SEEKS TO BUILD POWER PLANTS O'SEAS TO MEET ENERGY DEMAND DEC 29, 2005 BEIJING - In a bid to meet China's surging energy demands, the country's two grid companies are looking at overseas opportunities to source electricity for the fast-growing domestic economy. The biggest electricity distributor, State Grid Corp of China is in initial talks with neighbouring countries in the north such as Russia, Kazakhstan and Mongolia, to build coal-fired or hydro power plants in these resource-abundant nations, said a director at the top grid firm's research arm yesterday. PETROCHINA STARTS WORK ON 30,000 CUBIC METRE OIL DEPOT IN XINGYE DEC 30, 2005 NANNING - Construction of a 30,000 cubic metre oil depot and supporting facilities solely invested by PetroChina, has started in Xingye County, Yulin City of Guangxi Zhuang Autonomous Region on December 28. Total investment in the project will reach 350 million yuan (US$43.4 million), including 135 million yuan in the oil depot, which may handle a maximum volume of 400,000 tons of oil annually. It is scheduled to be completed and put into production in July 2006. LARGE NATURAL GAS POWER PJT OPERATIONAL IN CHINA'S HANGZHOU DEC 30, 2005 HANGZHOU - Zhejiang Banshan natural gas power project, a large supporting project of transmitting gas from the country's western regions to the east, has recently been put into operation. The first phase project cost four billion yuan (US$495.7 million) and has formed an annual installed capacity of 1.17 million kilowatts (kW). It is designed to generate four billion kWh of electricity, 1/8 of the annual consumption by the city. CHINA TO IMPLEMENT ENERGY EFFICIENCY STANDARDS FOR APPLIANCES DEC 30, 2005 BEIJING - The National Energy Efficiency Standards for All Household Appliances will become effective in 2006, according to an officer from the Standardization Administration of China. The national energy efficiency standards for colour TVs will be implemented on March 1, 2006, with standards for other appliances going into effect in 2006. LARGE OIL DEPOSIT DISCOVERED IN CHINA DEC 30, 2005

LANZHOU - A massive oil deposit of 500 million tons has been discovered in an area near Lanzhou, capital of northwest China's Gansu Province, an expert said Thursday. The belt along Lanzhou, Yongdeng and Minhe has up to 340 million tons of oil deposit, and the Yuzhong-Jingning-Jingyuan belt 160 million tons, said Liu Huaqing, an engineer with the Northwest Branch of the Petro China Exploration & Development Research Institute. INDIA GAIL INDIA, EIL TO JOINTLY BID FOR GAS PROJECTS ABROAD SEPT 1, 2005 NEW DELHI - State-run GAIL India Ltd (BSE:532155) Wednesday said it had signed a pact with Engineers India Ltd (BSE:532178) for bidding for natural gas business overseas. "The Memorandum of Cooperation between GAIL and EIL will enable both the companies to bid (for gas business) overseas jointly, in which GAIL will be responsible for project management and financing and EIL will be responsible for engineering and procurement," a GAIL statement said. INDIA'S CABINET DISCUSSES FUEL PRICE HIKE SEPT 2, 2005 NEW DELHI - The Cabinet today discussed the issue of fuel price increase, which has been warranted because of the surge in international oil prices. Rural Development Minister Raghuvansh Prasad confirmed that "the issue was discussed" but did not say if prices of petrol, diesel and LPG were being raised. INDIAN OIL LOSING US $11.8 MLN DAILY DUE TO LOW FUEL PRICES SEPT 2, 2005 NEW DELHI - Indian Oil Corp (NSI:IOC), the country's largest oil firm, today said it was losing Rs 520 million (US$11.8 million) every day on account of selling petrol, diesel, LPG and kerosene below the cost price. The company said its accumulated losses this fiscal have mounted to Rs 73.50 billion. INDIA'S CRUDE OIL IMPORTS FALL IN JULY SEPT 5, 2005 NEW DELHI - India's crude oil imports fell 8.9 per cent in July on the back of a sharp decline in oil product demand, according to latest data released by the Petroleum Ministry Friday. Crude oil imports at 7.656 million tonnes in July was 8.9 per cent lower than 8.405 million tonnes crude imported a year ago. INDIA'S ONGC, NORSK HYDRO TO JOINTLY BID FOR OIL BLOCKS SEPT 5, 2005 NEW DELHI - Oil and Natural Gas Corp (NSI:ONGC), India's largest oil producer, has tied up with Norway's Norsk Hydro for bidding for oil properties in Gulf and Cuba. ONGC Videsh Ltd, the international arm of ONGC, signed a memorandum of understanding (MoU) with Norsk Hydro in Norway on Thursday, Petroleum Minister Mani Shankar Aiyar said from Oslo. INDIA'S ABAN LOYD COMPLETES ACQUISITION OF US DRILLING RIG SEPT 5, 2005 MUMBAI - Oil drilling and exploration company Aban Loyd Chiles Offshore Ltd (BSE:523204) Saturday said it has completed the acquisition of offshore jackup drilling rig named Rowan Texas. The company informed the Bombay Stock Exchange about the compeletion of acquisition of the offshore jackup drilling rig on September 2, the company informed the Bombay Stock Exchange.

B'DESH MAY BARTER WITH INDIA ON GAS PIPELINE FOR ROUTE TO NEPAL SEPT 6, 2005 DHAKA - Bangladesh modified its preconditions for allowing the planned tri-nation gas pipeline through its territory, apparently offering a tradeoff for transit to Nepal through India. As per the new stance, Bangladesh wants to resolve two issues: export to Nepal through Indian Corridor and the import of hydropower from Nepal through Indian territory, in one package to barter for the tri-nation gas-pipeline project. INDIA'S GAIL TO START GAS EXPLORATION IN TRIPURA NEXT YR SEPT 6, 2005 AGARTALA - The Gas Authority of India Ltd (GAIL) plans to start exploring for natural gas in Tripura by the middle of next year, GAIL Director (marketing), U D Chaube said here Sunday. A team of GAIL has arrived here to conduct survey before going for deep drilling at Trishna, Gajalia and Teliamura range in the state's southern region, Chaubey told reporters. INDIA'S POWER SECTOR NEEDS RAPID EXPANSION TO BOOST ECONOMY SEPT 6, 2005 KOLKATA - The country's power sector needed eight to nine per cent growth in capacity generation to support a 10 per cent growth in the economy as envisaged by Prime Minister Manmohan Singh, Union Power Secretary R V Shahi said on Sunday. "To support an eight per cent growth in the economy, we need to generate 400,000 MW by 2025 from the present 125,000 MW. Now the Prime Minister is calling for a 10 per cent growth and why not? But for this, we need an eight to nine per cent annual growth in capacity generation," Shahi said. INDIA'S OVL COMPLETES SUDAN PIPELINE PROJECT SEPT 6, 2005 MUMBAI - ONGC Videsh Ltd (OVL) has successfully completed the construction of the 741 kms Sudan multi-product pipeline from Khartoum refinery to Port of Sudan Export Terminal two months ahead of schedule. The EPC project has been completed in 14 months by OVL against the contractual schedule of 16 months, ONGC officials said here Saturday. INDIA, PAKISTAN WANT GAS PIPELINE TRANSIT FEES SET AT INTL RATES SEPT 6, 2005 ISLAMABAD - Ahead of this week's Petroleum Secretary-level talks, India and Pakistan have decided to adopt international standards for calculating transit fees for the proposed IndoIran gas pipeline. India and Pakistan have agreed that Iran should provide an independent third party certification of gas reserves in South Paras field which would be dedicated for the multi-billion dollar project, 'Dawn' daily quoted Pakistani officials as saying, adding the two sides decided to adopt international standards to calculate the transit fee. GAIL INDIA TO BENEFIT FROM DEPRECIATION ON OIL, GAS PIPELINES SEPT 7, 2005 NEW DELHI - Gas utility GAIL India (BSE:532155) on Tuesday said it would benefit from the lowering of depreciation rate on oil and gas pipelines. The Department of Company Affairs had lowered depreciation rate for oil and gas pipeliens from present 10.34 per cent a year to 3.17 per cent per annum based on the useful technical life of 30 years. INDIA, BANGLADESH AGREE ON TRI-NATION GAS PIPELINE PROJECT SEPT 7, 2005 NEW DELHI - India and Bangladesh have in principle agreed on a US$1 billion tri-nation gas pipeline project that would allow New Delhi to bring natural gas from Myanmar. "It looks as if we have resolved outstanding issues, clearing way for signing of a memorandum of

understanding," Petroleum Minister Mani Shankar Aiyar, who returned from Dhaka early Tuesday, told reporters here. INDIA DECIDES TO COOPERATE WITH PAKISTAN IN GAS LINE PROJECT SEPT 7, 2005 KARACHI - Adviser to Prime Minister on Energy Mukhtar Ahmed said here on September 3 that India had decided to cooperate with Pakistan in a gas pipeline project. Addressing members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said that the Cabinet had also decided to provide gas connection to all industries for captive power generation. INDIA'S ONGC DENIES ANNOUNCING GAS FINDS TO RIG MARKET SEPT 8, 2005 NEW DELHI - India's largest oil producer, ONGC (NSI:ONGC), has rubbished oil regulator V K Sibal's allegations that the company "rigged" share prices through announcements of gas finds and said it followed procedures laid down for making public any oil and gas discovery. "We comply with all the rules and procedures laid down by the Directorate General of Hydrocarbonds (DGH) for making an announcement of oil and gas discovery," ONGC chairman and managing director Subir Raha told reporters here. PAKISTAN COMMITTEDTO INDO-IRAN GAS PIPELINE: PRIME MINISTER SEPT 8, 2005 ISLAMABAD - Promising support to Iran in its row with the US over its nuclear programme, Pakistan on Wednesday told Tehran's top nuclear negotiator that it was committed to the Indo-Iran gas pipeline against which Washington has expressed reservations. Pakistan supported efforts to resolve the issue of Iranian nuclear programme through negotiations and opposed use of force against the Gulf nation on this matter, Prime Minister Shaukat Aziz told visiting Secretary of Iran's Supreme National Security Council Ali Larijani during a meeting here. ONGC-CAIRN TO BUILD REFINERY IN RAJASTHAN, INDIA SEPT 8, 2005 NEW DELHI - Oil and Natural Gas Corp, India's largest oil producer, has received government approval to build a Rs 79.67 billion refinery in the Barmer district of Rajasthan, a state in India, company Chairman Subir Raha said. ONGC had proposed to build a 7.5 million tonnes refinery through a joint venture between its subsidiary MRPL and UK's Cairn Energy, the firm which has discovered 2.5 billion barrels of oil reserves in Barmer district of Rajasthan. INDIA'S BALMER LAWRIE SHORTLISTS CONSULTANTS FOR PLAN REVIEW SEPT 8, 2005 KOLKATA - Balmer Lawrie & Co. Limited, a PSU in the oil services sector, has shortlisted five consultants out of which one would be selected for reviewing the strategic plan prepared by the company. The company would invite expressions of interest from five consultancy firms which are McKinsey, Accenture, Ernst & Young, Price WaterHouse Coopers, Boston Consulting Group and Eicher Consultancy Services, Managing director of Balmer Lawrie S K Mukherjee said. TWO MISSING AFTER FIRE ERUPTS AT INDIAN OIL WELL SEPT 9, 2005 HYDERABAD - A major fire broke out at an oil well run by the Oil and Natural Gas Corporation (ONGC) near Amalapuram in East Godavari district of Andhra Pradesh on Thursday. Two of the 30 people, who were working on the ONGC rig E-1400 when the

mishap occurred, were reported missing, police said, but ONGC Chairman Subir Raha told PTI in New Delhi that "there is no loss of life or production." OIL BONDS TO INDIAN PETROL FIRMS NOT LIKELY BEFORE NOV: GOVT SEPT 9, 2005 NEW DELHI - Finance Minister P Chidambaram on Thursday indicated that the government would not issue oil bonds worth over Rs 100-120 billion (US $2.28-US$2.74 billion) to petroleum companies before November, as the move required Parliamentary approval. "We are working out (oil bonds). They will be issued after getting the approval of Parliament," Chidambaram told reporters on the sidelines of a microfinance function here. INDIAN OIL CORP. TO TRAIN SUDANESE PETROLEUM ENGINEERS SEPT 12, 2005 NEW DELHI - Indian Oil Corporation (BSE:530965) on Saturday said it would impart training to engineers of Greater Nile Petroleum Operating Company (GNPOC), Sudan, in the field of petroleum pipeline operations and maintenance. Indian Oil would send a group of experts to train engineers of the Sudanese company on cross-country pipelines operations, different aspects of maintenance of critical equipments like mainline engines and pumps spare-part management, a company release said. INDIA, PAK TO FINALISE FRAMEWORK AGREEMENT FOR PIPELINE BY DEC SEPT 12, 2005 ISLAMABAD - India and Pakistan have agreed to finalise a tripartite framework agreement by December for the US $7.4 billion Iran-Pakistan-India gas pipeline project. A joint press statement issued at the conclusion of the second Joint Working Group between India and Pakistan said the two sides will meet in the second week of November in New Delhi. INDIA TO RECEIVE CRUDE OIL FROM CASPIAN SEA REGION IN OCTOBER SEPT 12, 2005 NEW DELHI - India will receive crude oil from the Caspian Sea region in October, the first shipment from the region, as part of its efforts to diversify its sources of energy supplies. This has become possible due to the efforts of Petroleum Minister Mani Shankar Aiyar, who has engaged the Central Asian oil rich countries of Azerbaijan and Kazakhstan for the expansion of India's energy sources beyond West Asia, official sources said. INDIA'S ULTRATECH SIGNS US$4.35 MLN ENERGY DEAL WITH US-BASED CO SEPT 12, 2005 JERUSALEM - One of India's largest cement groups, Ultratech Cement Ltd, has signed a US $4.35 million contract with a US-based company for the supply of power generation equipment to its new plant in Andhra Pradesh. Ormat Technologies, with operations in Israel, will supply Ormat Energy Converter (OEC) within 14 months to UltraTech's Andhra Pradesh Cement Works in Tadpatri and assist in construction of a Recovered Energy Generation (REG) plant there, business daily 'Globes' reported. GAIL INDIA OFFERS HELP TO PETROBANGLA RETRIEVE STRANDED GAS SEPT 13, 2005 NEW DELHI - State-owned gas utility GAIL India Ltd (BSE:532155) has offered to assist Petrobangla (Bangladesh Oil, Gas and Minerals Corporation) for monetization of stranded gas from Kutubdia offshore gas field in south east Bangladesh. "The issue was discussed at the meetings between GAIL and Petrobangla during the recent visit of GAIL chairman and managing director Proshanto Banerjee to Dhaka," the company said in a statement here.

INDIAN OIL CORP'S US$228 MLN BOND ISSUE OVER-SUBSCRIBED SEPT 13, 2005 NEW DELHI - State-owned Indian Oil Corp's Rs 10 billion (US $228 million) bond issue has been over-subscribed by more than 2.5 times, the company said on Monday. The bond issue drew bids for Rs 25 billion, but the company plans to retain only Rs 12.25 billion, IOC said in a statement here. PAKISTAN, INDIA ANNOUNCE TIMEFRAME FOR GAS PIPELINE SEPT 13, 2005 ISLAMABAD - On the conclusion of two-day deliberations, Pak-India Joint Working Group (JWG) on September 9 announced timeframe for Iran-Pak-India (IPI) gas pipeline, saying all arrangements and formalities of the project would be completed by mid-2007, and gas supply to start from 2010. Petroleum secretary Ahmed Waqar and his Indian counterpart Sushil Chandra Triparthy, who led their respective delegations during the talks, briefed about the outcome of the JWG meeting here at a joint press conference. INDIAN CALL FOR WARNING SYSTEM FOR DISCOVERY ANNOUNCEMENTS SEPT 13, 2005 NEW DELHI S - The Securities and Exchange Board of India (SEBI) has asked Petroleum Ministry to put in place a warning system to alert investors of any premature declaration or non-disclosure of an oil and gas discovery by a company. Taking Director General of Hydrocarbons (DGH) V K Sibal to task for seeking action against ONGC for alleged nondisclosure of a gas find, the capital market regulator said there was no mechanism to determine if any announcement was premature or did not confirm to the disclosure clause. CAIRN ENERGY BEGINS SURVEY FOR NEW INDIAN OIL PIPELINE SEPT 14, 2005 JODHPUR - UK-based Cairn Energy has started a survey for laying a 400 km-long pipeline at a cost of Rs 10 billion (US$227.8 million) between Barmer and Mundra port in Gujarat, ONGC sources said here. The survey work is being taken up in the wake of ONGC and Cairn Energy receiving clearance to set up an oil-refinery project in Barmer district, sources said. RELIANCE ENERGY'S BIDS FOR INDIAN POWER PLANTS FINALISED SEPT 14, 2005 NAGPUR - Maharashtra government has finalised bids by Reliance Energy (BSE:600390) for group captive power plants at Butibori near here and at Thane-Belapur to overcome power crisis in these two industrial areas. "Reliance will generate 110 mw at Butibori and 100 mw at Belapur to be exclusively used by the consumers of these two industrial areas," Maharashtra Industries Minister Ashok Chavan told a press conference here on Monday night. INDIA'S PRAJ INDUSTRIES TO BUILD BIOETHANOL PLANT SEPT 15, 2005 MUMBAI - Praj Industries Ltd on Wednesday said it had won a contract worth Rs 360 mn ($US8.2 million) from Turkey-based Koyna Seker, to build a 280,000 litre per day bioethanol plant. The plant is being set up to produce bioethanol using sugarbeet molasses as feedstock and is planned to be completed by November, 2006, the company informed the Bombay Stock Exchange. INDIA'S OIL PRODUCT CONSUMPTION RISES 13 PCT IN AUG SEPT 15, 2005 NEW DELHI - Reflecting robust economic activity, India's oil product consumption rose by a massive 13 per cent in August to 8.81 million tonnes on the back of increased demand for

petrol and diesel. Petroleum product demand grew 13.1 cent to 8.81 million tonnes in August as against 7.789 million tonnes oil products consumed a year ago, according to the latest data released by Petroleum Ministry. CITIGROUP PICKS UP 4.71 MLN SHARES IN INDIA'S IFSL SEPT 16, 2005 MUMBAI - Foreign institutional investor Citigroup has picked up 5.88 per cent stake in renewable energy company IFSL. "Citigroup, through their investment arm Citigroup Global Markets (Mauritius) Private Limited has picked up almost 4.71 million shares in IFSL, amounting to 5.88 per cent stake of the paidup capital base of Rs 80 million through secondary market operations," IFSL Advisor Finance Nikhil Morsawala said in a release here on Thursday. OVL SEEKS TIME TILL JUNE '06 FOR PACT ON IRAN'S JUFEYR OILFIELD SEPT 16, 2005 NEW DELHI - ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (NSI:ONGC), has sought time until June 2006 to sign the definitive agreement for the Jufeyr oil field in Iran. The pact for the field, which was given to OVL as part of India's deal to buy 5 million tonnes of LNG per annum from Iran beginning 2010, was to be signed by December 31, 2005, failing which OVL will lose its right to develop the field. INDIA KEEN TO INVEST IN RUSSIAN ENERGY SECTOR SEPT 19, 2005 NEW DELHI - Identifying energy as a major area of cooperation, India on Friday said it was keen to invest in the Russian energy sector and its leading oil company ONGC had already made a proposal to Gazprom to source oil and gas. "We have identified areas of interest to us where potentially, if conditions are created, India would be willing to invest substantial sums in Russia's energy sector. Russia can be a major partner in India's quest for energy," Indian Ambassador to Russia Kanwal Sibal said here on Friday at a CII conclave. INDIA'S BPCL TO PUMP US$91 MLN TO EXPAND RETAIL OUTLETS SEPT 19, 2005 MUMBAI - Public sector Bharat Petroleum Corporation Ltd (BPCL) (BSE:500547) on Friday said it will invest nearly Rs 4 billion (US$91 million) by March 2006 to add about 1,000 retail outlets, a majority of them in the rural areas. "We will be investing about Rs 4 billion for a major push in the rural areas and further penetration in urban regions and highways," BPCL Executive Director S Krishnamurti said on the sidelines of the India Retail Forum here. INDIA'S SUZLON ENERGY TO INVEST US$73 MLN IN CHINA AND US SEPT 19, 2005 MUMBAI - Having carved out a niche for itself within the country, Pune-based Suzlon Energy Limited is all set to register its presence in the overseas by opening manufacturing centres in the US and China at an investment of Rs 3.2 billion (US$73 million). "We will mainly manufacture blades for wind turbine generator in these two facilities which are expected to be operational by September next year," company chairman and managing director Tulsi Tanti said here on Friday. ONGC SECURES INSURANCE CLAIM OF US$173 MLN FOR PLATFORM FIRE SEPT 19, 2005 NEW DELHI - The state-owned Oil and Natural Gas Corporation (NSI:ONGC) said it has secured insurance claim of Rs 7.61 billion (US$173.6 million) for its Bombay High North (BHN) platform, where a major fire mishap took place on July 27 this year. The insurers of

the platform United Insurance Company, had settled the complete compensation demaded by ONGC, as underwriters were convinced of the case, a release said Friday. DEVELOPING COUNTRIES PRONE TO GROWTH SHOCKS: INDIAN MINISTER SEPT 20, 2005 BARBADOS - Indian Finance Minister P Chidambaram on Monday warned that growth shocks in developing countries cannot be ruled out due to high and volatile global oil prices, triggering inflation and interest rate hikes. "The vulnerability of oil importing developing countries to growth shocks cannot be ruled out...any further increase in oil prices are likely to make deeper impacts on inflationary expectations, and may result in interest rate hikes," he said, addressing the Commonwealth Finance Ministers meeting here. ONGC ENTRUSTS PLATFORM RESTORATION JOB TO L&T LED CONSORTIUM SEPT 20, 2005 MUMBAI - In a bid to restore the output lost due to recent fire in the Bombay High, the ONGC on Monday entrusted the job of installation of diversionary pipelines and associated platform modifications to a consortium led by Larsen & Toubro (BSE:500510) and Global Industries Offshore LLC of America. With the loss of BHN platform, the output has reduced by about 120,000 barrels of oil and about 4.4 million cubic metres of gas per day, which is why ONGC is planning to recover a major part of this by diverting the production through alternative routes. WB ARBITRATOR TO VISIT INDIA, PAKISTAN NEXT MONTH SEPT 20, 2005 ISLAMABAD - The World Bank appointed neutral expert arbitrating on the differences between India and Pakistan over the Baglihar hydro-electric project will pay a week-long visit to the project site beginning October 1. Raymond Lafitte, a Swiss civil engineer and a Professor at the Swiss Federal Institute of Technology in Lausanne would visit the "region" in the first week of October, Pakistan Foreign Office Spokesman Naeem Khan told reporters here on Monday. INDIA'S OVL ACQUIRES 30% STAKE IN 7 OIL AND GAS BLOCKS IN CUBA SEPT 21, 2005 NEW DELHI - ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC) (NSI:ONGC), has acquired a 30 per cent stake in seven oil and gas blocks in Cuba, which hold more than 4 billion barrels of oil reserves. Spain's Repsol-YPF is the operator of the Block 25-29, 36 and a part of Block 35 with 40 per cent stake and the remaining is with Norway's Norsk Hydro. CAIRN UPS ESTIMATES OF RESERVES IN INDIA'S RAJASTHAN OILFIELDS SEPT 21, 2005 NEW DELHI - Cairn Energy of the UK has raised its estimates of oil reserves in its Rajasthan oilfield to 1.7 billion barrels, which is more than 50 per cent higher than previous estimates. The company said Mangala, Bhagyam and Aishwariya oilfields have been independently certified to have 1.7 billion barrels of proven and probable oil in place. SUZLON ENERGY TO HIT MARKET ON SEP 23 TO RAISE UP TO US$342 MLN SEPT 21, 2005 NEW DELHI - Suzlon Energy Ltd will hit the capital market on September 23 for raising up to Rs 15 billion (US$342 million) to expand its domestic manufacturing facilities and set up new plants in the US and China. The Pune-based wind energy company is also open to building strategic alliances and acquisitions as part of its growth strategy, Director (International Business Development) Girish Tanti told reporters here.

INDIA, CHINA, BRAZIL TO DEVELOP HIGH-VOLTAGE DC TECHNOLOGY SEPT 21, 2005 BANGALORE - India along with China, Brazil and South Africa, has decided to work on developing a sophisticated high voltage direct current (HDVC) technology for enabling transmission of power from hydro power resources of North East to the rest of the country, chairman and mangaging director of Power Grid Corporation of India Limited R P Singh said on Tuesday. Speaking to reporters here after a International Council on Large Electric System (CIGRE) Administrative Council Meeting, Singh said "China, Brazil and South Africa also faced a similar problem of uneven distribution of natural resources. Hence such a joint study and project would benefit all the countries since it would greatly cut down on the cost factor as well as ensure safety and reliability," he said. INDIA, PAKISTAN TO SEEK THIRD PARTY CERTIFICATION OF IRANIAN GAS SEPT 21, 2005 NEW DELHI - India and Pakistan will seek third party certification of Iran's gas reserves before moving ahead on the US$7.4 billion Iran-India-Pakistan pipeline, which is designed to meet the growing energy needs of both nations. At the second meeting of the IndiaPakistan Joint Working Group on the pipeline project in Islamabad earlier this month the two sides agreed to approach Iran for third party certification of gas reserves, confirmation of allocation of gas reserves for the project, identification of alternate/back up gas reserves and time line for the development plan of allocated reserves, sources said. INDIA'S ONGC CONSIDERING FRESH BID TO ACQUIRE PETROKAZAKHSTAN SEPT 22, 2005 NEW DELHI - India's Oil and Natural Gas Corp (NSI:ONGC) is considering making a rebid for acquiring Petrokazakhstan, a Canadian oil firm in Kazakhstan. Though Petrokazakhstan has already accepted a bid by China's CNPC, the deal has to be ratified by the firm's shareholders. POWER GRID CORP TO ENTER INTO AGREEMENT WITH RELIANCE ENERGY SEPT 22, 2005 CHANDIGARH - Power Grid Corporation of India, a central transmission utility, on Wednesday said it would soon enter into an agreement with the Reliance Energy Limited (REL) (NSI:REL) for power transmission from Kol dam and Parbati hydel projects in Himachal Pradesh at an estimated cost of Rs 8 billion (US $182 million). Power generation at Kol dam was under the NTPC while the Parbati power generation was in the hands of NHPC, with both falling in Kullu district of Himachal Pradesh. INDIA'S NCDEX LAUNCHES BRENT CRUDE OIL FUTURES SEPT 22, 2005 NEW DELHI - National Commodity and Derivatives Exchange Thursday launched Brent crude oil futures in its futures platform in association with International Petroleum Exchange. The launched rupee-denominated Brent crude futures contract would be traded on NCDEX's exclusive platform. STUDY SUPPORTS GAIL INDIA'S STAND ON 'PROFIT GAS' SEPT 22, 2005 NEW DELHI - State-owned gas utility GAIL (India) Ltd (BSE:532155) today said its stand that government should take its share of gas production from gasfields in kind has been supported by a study conducted by Energy Management International Ltd of UK. "According to a study on the international trends, taking profit gas in kind is a priority choice of most production sharing contract (the oil and gas field development model where the operator

shares a part of the revenues with the government) operating countries of the world," a GAIL press release said here. INDIAN GOVT SAYS ALL DABHOL ISSUES RESOLVED EXCEPT GAS SUPPLY SEPT 22, 2005 NEW DELHI - The government today said that issues relating to reviving the beleagured Dabhol power plant have been resolved but supply of gas remained a major cause for concern. "All issues relating to consent for reviving the Dabhol plant have been resolved among various stakeholders viz, lenders, NTPC, GAIL (BSE:532155) and Maharashtra Power Development Company," POwer Secretary R V Shahi said. INDIA'S ONGC TO BRING 3 FIELDS INTO PRODUCTION IN NEXT 18 MONTHS SEPT 22, 2005 NEW DELHI - State-run Oil and Natural Gas Corp (NSI:ONGC) today said it will bring to production three offshore fields over the next 18 months. "After many years, ONGC is engaged in bringing new offshore fields into production. In the next 18 months one field in eastern offshore and two fields in western offshore will go into production," ONGC Chairman and Managing Director Subir Raha said at the company's Annaul General Meeting. GAIL INDIA LOOKS FOR CONSULTANTS FOR PIPELINE PROJECT SEPT 23, 2005 NEW DELHI - Five global consultancies participated in the pre-bid meet called by GAIL (India) Ltd for the appointment of technical consultants to undertake pre-feasibility study for the Iran-Pakistan-India gas pipeline project. The pre-feasibility study of the estimated 2,100 km pipeline, of which 1,100 km will be in Iran, 750 km in Pakistan and 250 km in India, is scheduled to be completed by mid December 2005, a company statement said here. INDIA'S HPCL IN TALKS WITH SHELL FOR STAKE IN HAZIRA TERMINAL SEPT 23, 2005 MUMBAI - State-run oil marketer Hindustan Petroleum Corporation Ltd (HPCL) (BSE:500104) is in talks with Royal Dutch Shell to pick up 26 per cent stake in the Hazira Liquefied Natural gas terminal even as it was eyeing to set up an LNG terminal on its own at Mundra in Gujarat. "We are in talks to pick up about 26 per cent stake in the LNG terminal. We are not interested in merchant terminal but for sourcing and marketing of gas in the country," HPCL Chairman M B Lal told reporters here today. TEESTA STAGE IV APPROVED SEP 23, 2005, International Water Power & Dam Construction http://www.waterpowermagazine.com/story.asp?sectioncode=130&storyCode=2031422 India's Cabinet Committee on Economic Affairs (CCEA) has approved construction of the 160MW Teesta Low Dam hydroelectric project stage IV. The 4 x 40MW run-of-river project, to be developed by the National Hydroelectric Power Corporation (NHPC), will provide power for the West Bengal, helping to reduce peaking power shortage in the state. The project will involve construction of a 45m high concrete gravity dam in the Darjeeling district, with work expected to be completed within the next 48 months. Project costs are estimated at US$242M, with 75% equity provided by the Indian government and 25% by NHPC. DABHOL PROJECT IN INDIA TO RESUME BY END 2006 SEPT 26, 2005 NEW DELHI - The Bombay High Court has given its go ahead for transfer of assets of the 2,184 MW Dabhol power plant to Ratnagiri Gas and Power Pvt Ltd, paving the way for restarting the plant before the end of 2006. The court gave its nod Thursday for transfer of

assets to RGPPL, the joint venture floated by power major NTPC (BSE:532555), gas utility GAIL (BSE:532155) and IDBI-led financial institutions. INDIA'S OVL PAYS MAIDEN DIVIDEND TO ONGC SEPT 26, 2005 NEW DELHI - ONGC Videsh Limited (OVL), the biggest Indian multinational, has paid its first-ever dividend of Rs 1.05 billion (US$23.9 million) for the year ended 31st March, 2005 to its parent Oil and Natural Gas Corp (ONGC). The dividend, which works out to Rs 35 per share of Rs 100 each on thirty million shares, was approved in the Annual General Meeting (AGM) of OVL earlier this week, a company press release said here. CAIRN-ONGC TO INVEST US$750 MLN IN INDIA'S MANGALA OILFIELD SEPT 26, 2005 NEW DELHI - Cairn Energy of the UK and state-run Oil and Natural Gas Corp (ONGC) will invest US$750 million to commence production at the Mangala oilfield in Rajasthan, the biggest oil discovery in India in 22 years. Cairn's share of investment in Mangala would be US$500 million while ONGC would put in US$250 million in the development of the field, a company official said. INDIA'S NTPC PLANS NUCLEAR FORAY, TO BECOME 66,000 MW ENERGY UTILITY SEPT 26, 2005 NEW DELHI - State-run National Thermal Power Corporation (BSE:532555) on Friday said it would become a 66,000 MW company by 2017 and announced plans to enter nuclear generation as also diversify into coal mining, gas exploration and LNG terminals to become a globally competitive integrated energy utility. "We have decided to increase our 11th plan target from 11,558 MW to 17,052 MW. We are identifying projects totalling 20,000 MW for the 12th plan and plan to become a 66,000 MW company by 2017," NTPC Chairman and Managing Director C P Jain told shareholders at the company's annual general meeting. INDIAN MINISTER COMPARES OIL PRODUCERS TO 'COLONIAL EXPLOITERS' SEPT 26, 2005 WASHINGTON - In sharp criticism of oil producers and the current petro prices, Union Finance Minister P Chidambaram on Saturday compared the producers to "old colonialists who exploited developing countries". In an interview on the Charlie Rose Show, he said that today's oil prices were 'outrageous'. INDIAN PM ANNOUNCES POWER PROJECT FOR PUNJAB SEPT 26, 2005 CHANDIGARH - Prime Minister Manmohan Singh on Saturday announced setting up of a Central power project in the border state of Punjab keeping in view the need of farmers and industry. "Power is needed for the industry and farmers of Punjab. There is no central sector power project in the state. I will prepare the National Thermal Power Corporation (NTPC) (BSE:532555) to set up a power project here in the next three to four years," Singh said addressing a gathering of partymen at the Congress Bhawan here. INDIA'S ONGC, RELIANCE GET MAJORITY OF BLOCKS FROM NELP SEPT 26, 2005 NEW DELHI - India on Friday signed licence agreements for 18 out of the 20 blocks awarded under the fifth round of bidding of New Exploration Licensing Policy (NELP), the majority of which went to Oil and Natural Corp (ONGC) and Reliance Industries (BSE:500325). The contracts were signed between the government and the successful companies in the presence of Petroleum Minister Mani Shankar Aiyar.

INDIA'S OVL TO INVEST ABOUT US$150 MLN IN 7 BLOCKS IN CUBA SEPT 26, 2005 NEW DELHI - ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), will invest close to US$150 million in the seven oil and gas blocks it recently acquired in Cuba. The blocks hold more than 4 billion barrels of oil reserves. STEEL AUTHORITY OF INDIA MULLS EQUITY PARTICIPATION IN COAL MINES SEPT 26, 2005 NEW DELHI - To ensure implementation of its expansion plans, Steel Authority of India Ltd (SAIL) is contemplating equity participation in certain coal mines and forging joint ventures, alliances for development and upgradation of mines. For SAIL, a major area of concern has been obtaining new mining leases and renewal of old leases, the PSU's Chairman V S Jain told shareholders at its annual general meeting on Friday. US APPRECIATES INDIA'S SUPPORT ON IRAN AT IAEA SEPT 27, 2005 WASHINGTON - The US today "appreciated" India's "support" at the IAEA on the Iran nuclear issue. "We appreciate the support. The world is saying to Iran that it is time to come clean," White House Press Secretary Scott McClellan said when asked about India's vote in favour of a resolution mooted by the EU-3 with US backing at the UN atomic energy watchdog's Vienna meeting. CANADA TO SUPPLY NUCLEAR REACTORS TO INDIA SEPT 27, 2005 OTTAWA - In another major step towards India's integration with international nuclear regime, Canada on Monday agreed to resume supply nuclear-related "dual-use items" for Indian civilian nuclear facilities, more than three decades after halting them. A Joint Statement issued after the talks between visiting External Affairs Minister K Natwar Singh and his Canadian counterpart Pierre Pettigrew, said Canada agreed to "allow the supply of nuclear-related dual-use items to Indian civilian nuclear facilities under International Atomic Energy Agency safeguards, in accordance with the requirements of the Nuclear Suppliers Group's dual-use guidelines." S.ASIAN GAS DEMAND STRONG ENOUGH FOR TWO PIPELINES: ADB EXPERT SEPT 23, 2005 MANILA - South Asia's future demand for natural gas is expected to be strong enough to require gas to be piped from both Turkmenistan and Iran, according to Dan Millison, a senior Asian Development Bank (ADB) energy specialist. Reserves information from Turkmenistan indicates a lower-than-expected gas supply for a proposed 1,700 kilometre pipeline, US$3.3 billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. US APPRECIATES INDIA'S SUPPORT ON IRAN AT IAEA SEPT 27, 2005 WASHINGTON - The US today "appreciated" India's "support" at the IAEA on the Iran nuclear issue. "We appreciate the support. The world is saying to Iran that it is time to come clean," White House Press Secretary Scott McClellan said when asked about India's vote in favour of a resolution mooted by the EU-3 with US backing at the UN atomic energy watchdog's Vienna meeting. INDIA'S L&T WINS US$37.5 MLN CONTRACT IN OMAN SEPT 27, 2005

MUMBAI - Larsen & Toubro Ltd (L&T) (BSE:500510) Monday said its associate company in Oman has won a contract from Petroleum Development Oman LLC (PDO), for Rs 1.65 billion (US $37.5 million). The contract bagged by the company's associate Larsen & Toubro Electromech LLC (LTEM), is for revamping and upgrade of the transmission lines and substations in its existing oil fields in Central Oman as part of a major infrastructure development undertaken by PDO, the company informed the Bombay Stock Exchange. IRAN GAS PIPELINE WON'T AFFECT INDO-US TIES: INDIAN MINISTER SEPT 28, 2005 WASHINGTON - India will proceed with the pipeline from Iran through Pakistan to obtain Iranian gas and does not expect the project to affect Indo-US ties, Minister of Petroleum and Natural Gas Mani Shankar Aiyar has said. In an interview on Monday, he said India also does not expect its vote in support of an IAEA resolution on Iran's controversial nuclear programme to affect New Delhi's ties with Tehran. INDIA'S BHEL WINS ORDER FOR 43 MW POWER PLANT SEPT 28, 2005 NEW DELHI - State-run Bharat Heavy Electricals Ltd (BHEL) (BSE:500103) Tuesday said it had bagged a repeat order to set up a captive power plant for KSK Energy Ventures Ltd. The order for a 43 MW captive plant has been placed by Sitapuram Power Ltd, a company promoted by KSK Energy. BANGLADESH, INDIA'S TATA TO BEGIN FINAL ROUND OF TALKS IN OCT SEPT 29, 2005 DHAKA - Tata group will hold a final round of negotiations with the Bangladesh government next week on the Indian conglomorate's US $2.5 billion investment plan for the country, official sources said here on Wednesday. The Tata Group proposes to set up a fertiliser factory, a steel plant and a 1000-megawatt coal-fired power plant in the country. BP CHIEF TO VISIT INDIA IN OCT TO EXPLORE OIL, GAS OPPORTUNITIES SEPT 29, 2005 NEW DELHI - British Petroleum (BP) chairman Sir John Browne is likely to visit India next month to explore oil and gas opportunities in Asia's third largest economy. Browne, who is scheduled to be in the country on October 13 and 14, may explore deepwater exploration, refining and marketing opportunities, said an industry source. INDIA'S OVL WINS OFFSHORE OIL, GAS BLOCK DEAL IN VIETNAM SEPT 29, 2005 NEW DELHI - ONGC Vildesh Ltd (OVL), state owned Oil and Natural Gas' overseas arm, has won operation rights at an offshore oil and gas block in Vietnam. "Our bid for block no. 127 was the best and we have been awarded the block," OVL Managing Director R S Butola said from Bangkok. IRAN SAYS OIL PIPELINE AGREEMENTS WITH INDIA STILL IN FORCE SEPT 29, 2005 NEW DELHI - Iran on Wednesday asserted that all its agreements with India are "still in force" and passing through their normal process. Iran denied media reports that suggested the possibility of the LNG deal and gas pipeline project being called off. INDIA'S BPCL TO INVEST US$102.3 MLN IN RETAIL EXPANSION SEPT 29, 2005 CHENNAI - Bharat Petroleum Corporation Ltd (BPCL) (BSE:500547), the second largest oil marketing company in the country, on Wednesday said it would be pumping in Rs 4.5 billion

(US$102.3 million) for retail expansion during this fiscal year. The company will be increasing its retail network to over 7000 outlets this year from the present 6500 plus across the country. GAIL INDIA PLANS TO ACQUIRE E&P CO; STAKE IN EUROPEAN PROJECT SEPT 29, 2005 NEW DELHI - State-run gas firm GAIL (India) Ltd (BSE:532155) today said it plans to acquire a small or medium sized upstream company and is looking at participating in the Rs 250 billion (US$5.6 billion) Nabucco pipeline project in Europe as part of its strategy to become an integrated global gas major. "We are looking at acquiring a small or medium sized Exploration and Production company in India or abroad to sharpen our skill sets required for upstream activity," GAIL chairman and Managing Director Prashanto Banerjee told reporters after the company's annual general meeting. INDIA, JAPAN AGREE TO PROMOTE ENERGY COOPERATION SEPT 30, 2005 TOKYO - India and Japan on Thursday agreed to promote joint oil and gas exploration ventures in third countries, besides enhancing bilateral cooperation with regard to energy conservation, strategic crude reserves and undertake joint research to develop an Asian oil market. The two energy-hungry countries decided to work on a Plan of Action, which would include encouraging Japanese companies to invest in India and explore possibility of an MoU between India's ONGC Videsh Ltd and Japan Oil Gas and Metals National Cooperation (JOGMEC). REVISED COST OF BHUTAN HYDRO-ELEC PROJECT SET AT US$937 MLN SEPT 30, 2005 NEW DELHI - The Cabinet Committee on Economic Affairs (CCEA) today cleared the revised cost of completion at Rs 41.24 billion (US $937 million), of the ongoing 1,020 MW Tala hydel project in Bhutan that would supply electricity to India's eastern grid. The approval to the project, set to be commissioned in June 2006, has been granted on terms and conditions agreed by Indian and Bhutanese governments, Union Finance Minister P Chidambaram told a press conference after the CCEA meeting. INDIA GOVERNMENT ALLIES WARN PM ON IRAN NUCLEAR STANCE SEPT 30, 2005, Agence France Presse, NEW DELHI - India's communist party leader said Premier Manmohan Singh should "undo the damage" from New Delhi's vote against Iran's nuclear programme, as leftists continued to pile pressure on the government. The remarks by Prakash Karat, who called Singh's decision a "final act of surrender" to the United States, were published a day after millions of workers held a general strike over his economic policy that crippled the nation. Karat blamed Singh for India's vote in favour of a motion passed last weekend at the UN's nuclear watchdog which would refer Iran, a longtime ally of India, to the UN Security Council over its nuclear programme. In an interview with the Indian Express newspaper, he said India had to reverse the "pro-US" decision taken at the International Atomic Energy Agency. "By the next board meeting of the IAEA in November, the Indian government will have to undo the damage," the paper quoted him saying. The row over the vote and the general strike have marked an escalation of tensions between the government and the communists, who provide Singh's ruling coalition with a majority in parliament. Karat, known as the Red Czar for his hardline politics, did not go so far as to threaten to withdraw support for Singh's government but pressed for a change in policies. "It is necessary for all the left and democratic forces to mobilise the people in defence of an independent foreign policy," he said. Independent political analyst Mahesh Rangarajan said the latest events marked "the end of the honeymoon" between the Left and Singh's Congress party. "There's no way the

Left can support what it sees as a betrayal" of India's tradition of non-alignment, he said. The government will "find itself checkmated in a variey of ways -- on any economic reform that requires legislative approval, for instance," he said. The government has already had to retreat on some reforms in the face of communist opposition, including selling stakes in state-run firms. The United States has accused Iran of hiding secret nuclear weapons work, but Tehran says it is pursuing a peaceful civilian nuclear programme. Iran has reacted sharply to New Delhis vote but denied there was any risk to a recent 22-billion-dollar gas purchase deal or a proposed pipeline to India via Pakistan. Asia's energy market "is limited and India is one of the biggest markets," said S.D. Muni, professor at New Delhi's School of International Studies. India has said its vote was aimed at staving off Tehran's immediate referral to the Security Council and says it has no reservations about Iran's right to a nuclear energy programme. The US has agreed to aid India with its civilian nuclear programme. But US Congressmen said the help could be jeopardised if India refused to back firm action against Iran. SAKHALIN-I BEGINS OIL AND GAS PRODUCTION OCT 3, 2005 SAKHALIN (RUSSIA) - The gigantic Sakhalin-I fields in far east Russia, India's single largest investment abroad, began oil and gas production Saturday. Sakhalin-I field, where India's ONGC Videsh Ltd has 20 per cent stake, will produce 23,000 barrels per day of oil and about 58 million standard cubic feet of gas per day. RUSSIA TO CONSIDER INDIAN FIRMS' IN FUTUTRE SAKHALIN PROJECTS OCT 3, 2005 SAKHALIN (RUSSIA) - Russia has indicated its willingness to take along Indian companies such as ONGC Videsh Ltd for exploration of oil and gas in future Sakhalin projects as well as enhancing energy cooperation in third countries. "We discussed prospects of Indian firms' participation in exploration and production business in India, Russia and third countries," Russia's Minister of Industry and Energy Viktor Borisovich Khristenko said after a three-hour meeting with Petroleum Minister Mani Shankar Aiyar. TEAM LED BY WB NEUTRAL EXPERT TO INSPECT JAMMU HYDEL PROJECT OCT 3, 2005 JAMMU - In efforts to iron out differences between India and Pakistan on the Indus river waters issue, a 13-member team led by World Bank appointed neutral expert Raymond Lafitte arrived here Saturday for a 3-day inspection tour of the 450-mw Baglihar hydel project at Patnitop in J&K. Lafitte, a professor at the Swiss Federal Institute of Technology in Lausanne along with 2 Swiss, 6 Pakistani and 4 Indian officials flew in from New Delhi, officials said. INDIA'S JINDAL STAINLESS IN TALKS TO ACQUIRE MINE IN INDONESIA OCT 3, 2005 NEW DELHI - O P Jindal Group company, Jindal Stainless Ltd (NSI:JSTAINLES), is in advanced stage of disscussions to acquire coal mines in Indonesia. "A few mine companies have been shortlisted and currently negotiations are on to reach right valuations," a company official said. RUSSIA'S GAZPROM KEEN TO TAKE PART IN IRAN-INDIA PIPELINE OCT 3, 2005 SAKHALIN (RUSSIA) - Russian gas giant Gazprom, the world's largest gas firm, is keen to participate in the construction of the US $7.4 billion Iran-Pakistan-India pipeline that would bring gas from the gigantic South Pars fields in Iran to the two South Asian countries. "We

are keen on participating in the Iran-India pipeline project," Russia's Minister of Industry and Energy Viktor Borisovich Khristenko said here on Friday. INDIA'S OVL, GAIL SIGN PACT WITH DAEWOO FOR MYANMAR GAS BLOCK OCT 4, 2005 SEOUL - ONGC Videsh Ltd, the overseas arm of India's Oil and Natural Gas Corp, and GAIL (India) Ltd on Monday signed an agreement to take equity in Myanmar's 'A-3' block, which has an estimated 4 trillion cubic feet of gas reserves. The agreement was signed by OVL Managing Director R Butola, GAIL Director (Business Development) B S Negi and the block's operator Daewoo International Corp's President and CEO Tae-Yong Lee at a function here. ASSETS OF INDIA'S GAIL INCREASE 20 PCT OCT 4, 2005 MUMBAI - State run gas firm Gail Ltd (BSE:532155) on Monday said its asset base has increased by 20 per cent to Rs 175 billion (US$4 billion) following the Bombay High Court order to transfer the assets of erstwhile Dabhol Power Company to Ratnagiri Gas and Power Pvt Ltd, the joint venture company promoted by Gail and NTPC. "With this transfer, the asset base of GAIL including the pro-rata share of all the joint ventures, subsidiaries and associates, where GAIL has equity participation, has increased by around 20 per cent from Rs 147 billion to Rs 175 billion," Gail said in a release here. GAIL INDIA MAY INVEST UP TO US$500 MLN FOR AUSTRALIAN LNG SUPPLY OCT 4, 2005 NEW DELHI - State-run gas monopoly GAIL (India) Ltd on Monday said it is planning to invest up to US US$500 million over the next three to five years for gas exploration and liquefaction facilities in Australia. The company is also hopeful of tying up 5-7 million tonnes per annum of LNG supplies with Australian firms by next year, a part of which could be used for restarting the Dabhol Power Plant in Maharashtra. CRUCIAL ROUND OF TALKS BEGINS ON TATA INVESTMENT IN BANGLADESH OCT 4, 2005 DHAKA - Gas security and electricity purchase tariffs for gnd Tata group are among issues to be discussed in the crucial final round of talks beginning between the conglomorate and Bangladesh government on its proposed US$ 2.5 billion investment in the country, officials said. Tata Group will set up a fertiliser factory, a steel plant and a 1000-megawatt coalfired power plant in the country. The development of a coal mine is also included in their investment plan. GAS PIPELINE FROM IRAN VIABLE EVEN WITHOUT INDIA: PAKISTAN OCT 4, 2005 ISLAMABAD - Pakistan has said the Iran-Pakistan-India gas pipeline would remain viable even if India opted out of the project. "A gas pipeline from Iran to Pakistan is viable even if India pulls out of the Iran-Pakistan-India (IPI) gas pipeline project," Ahmed Waqar, Secretary, Ministry of Petroleum and Natural Resources, said. INDIA'S BHEL SETS UP 500 MW UNIT AT UTTAR PRADESH POWER PLANT OCT 5, 2005 NEW DELHI - State-owned Bharat Heavy Electricals Ltd (BSE:500049) on Tuesday said it has commissioned the second 500 MW unit at National Thermal Corporation's Rihand super thermal power station in Uttar Pradesh. This takes the total capacity of the Rihand plant to 2,000 MW. With this, 12 million units of electricity would be added every day to the grid, a BHEL release said.

S.ASIAN NATIONS AGREE TO LOOK INTO REGIONAL GRID, GAS PIPELINE OCT 5, 2005 NEW DELHI - The BIMSTEC group of seven South and South-East Asian countries on Tuesday agreed to look into the possibility of setting up a trans-regional gas pipeline and a power transmission network as part of efforts to enhance energy cooperation and ensure energy security in the region. The representatives of Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) at its meeting here also agreed to evolve a common regulatory framework for grid interconnections and strengthen cooperation in hydro, non-conventional as well as research activities. COAL RICH INDIA, US, CHINA CAN GAIN ENERGY INDEPENDENCE: EXPERT OCT 5, 2005 WASHINGTON - India, China and the United States are among very few countries in the world which can easily attain energy independence by substituting synthetic fuel obtained from petroleum with coal, an expert has said. India, the US and China are rich in coal deposits and can easily attain energy independence by producing synthetic fuel or Synfuel from coal, Governor of Montana and soil scientist Brian Schweitzer said in an article in 'The New York Times'. BIMSTEC FOR CROSS-COUNTRY POWER TRANSMISSION GRID OCT 6, 2005, The Daily Star URL:http://www.thedailystar.net/2005/10/06/d5100601044.htm Seven South and South East Asian countries, including Bangladesh, agreed on Tuesday to explore the possibility of having an electricity transmission network among them. It could be achieved by developing an inter-connectivity grid between the countries to facilitate the flow of electricity across the region, an official statement of the countries said.. The statement was issued at the end of the daylong conference of energy ministers and officials of the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (Bimstec). India, Bangladesh, Nepal, Bhutan, Myanmar, Thailand and Sri Lanka are in the economic group. The proposed power grid would run from Thailand to Sri Lanka and Thailand would head a task force to work out the draft memorandum of understanding (MoU) for the inter-country grid connections. The task force, which will submit its report within a year, would also take into account crucial factors like flow of electricity between the member countries without discrimination. The conference also reached a consensus on the feasibility of a trans-regional natural gas pipeline. "The conference recognised the need for detailed feasibility studies and techno-economic agreements between and among participating countries to allow optimal utilisation of natural gas resources in the region," the statement said. The conference produced an action plan for the cooperation among Bimstec countries to ensure energy security in the region. The plan also covered the tapping of hydrocarbon potential in the region and exchanging unconventional sources of energy as well as building energy security and energy efficiency in the region. On the gas pipeline, the member countries agreed to form a separate task force to work out the terms of reference and to recommend the course of action after taking into account the work done on such a pipeline. Thailand would host the first meeting of the task force on the gas pipeline early next year, Indian Power Secretary RV Shahi said. He said a Bimstec Centre for Energy is likely to come up next year to enable member countries to share experiences in reforms, restructuring, regulation and best practices in the energy sector. The location for the proposed centre is yet to be decided. There was no concrete form of cooperation in the unconventional sources of energy but it was felt that member countries could focus on small hydro projects, solar energy and generation of electricity from rice husk. The Bimstec countries would draw on each other's experiences on rural electrification as well as on

efficient development of coal resources. Cooperation in the energy sector is one of the main areas identified by the Bimstec countries when the economic group was set up in 1997. INDIA'S EXLSERVICE BAGS CONTRACT FOR BPO SERVICES OF BRITISH GAS OCT 7, 2005 NEW DELHI - Leading BPO ExlService Holdings Inc on Thursday said it has secured a contract for managing back office BPO operations of British Gas, the largest supplier of residential gas and electricity in Britain. The contract was awarded to the company after an evaluation process carried by Centrica, the energy procurement and trading company for British Gas, ExlService said in a release. GAIL TO START DISTRIBUTION OF LPG IN INDIA FROM APRIL OCT 7, 2005 CHANDIGARH - Gas Authority of India Limited (BSE:532155) on Thursday said it would foray into marketing and distribution of LPG across the country from April 1 next year. The company was in the process of deciding a brand for its LPG retail business and had engaged McKinsey as a consultant, GAIL Chairman and Managing Director Prashanto Banerjee said addressing a press conference here. PAKISTAN INVITES RUSSIA TO JOIN IRAN GAS PIPELINE PROJECT OCT 7, 2005 ISLAMABAD - Pakistan has invited Russia to join the multi-billion dollar India-Pakistan-Iran (IPI) gas pipeline, amidst reports that Russian natural gas major Gazprom has shown interest in the project. Pakistan wants Russia to be a partner in the gas pipeline that joins Iran, Pakistan and India, state run APP quoted Pakistan Ambassador to Moscow Mustafa Kamal Qazi as saying in an interview to Radio Moscow. THAILAND INVITES INDIAN OIL FIRMS TO LOOK FOR OIL AND GAS OCT 7, 2005 NEW DELHI - Thailand on Wednesday invited Indian firms to explore for oil and gas in its offshore region and invest in setting up CNG distribution network for automobile sector. "We discussed cooperation (between India and Thailand) in upstream (oil and gas exploration and production) and renewable energy," Thailand's Energy Minister Viset Choopiban said after a meeting with the Petroleum Minister Mani Shankar Aiyar here. PAKISTAN TO PROCEED WITH GAS PIPELINE EVEN IF INDIA OPTS OUT OCT 10, 2005 ISLAMABAD - Pakistan has said it will go ahead with the gas pipeline project with Iran even if India opted out of the venture. "We want this pipeline from Iran, even if India doesn't. I have been pushing it from day one. This pipeline will still work even without India," Pakistan Prime Minister Shaukat Aziz said. INDIAN PM REPRIMANDS OIL MINISTRY ON ONGC'S MANGALORE VENTURE OCT 10, 2005 NEW DELHI - The Prime Minister's Office has reprimanded the Petroleum Ministry for adding conditions even after Prime Minister Manmohan Singh approved ONGC's Rs 250 billion (US$5.6 billion) investment in a LNG, power and petrochemicals project at Mangalore. The PMO has since ordered the implementation of the project as per the original approval. INDIA'S KEC INTL BAGS US$36 MLN ORDER FROM AFGHANISTAN GOV'T OCT 10, 2005

MUMBAI - KEC International Ltd on Friday said it has bagged two new orders worth US$36 million from the Ministry for Energy and Water, Government of Afghanistan. The contract is to supply and construct 220 KV double circuit transmission lines from Hairatan to Naibabad to Mazar-I-Sharif over a distance of 16 kms and Naibabad to Pul-E-Khumri over a distance of 165 kms. PAKISTAN INVITES RUSSIA TO BE PARTNER IN GAS PIPELINE PROJECT OCT 10, 2005 KARACHI - Pakistan has invited Russia to join the multi-billion dollar India-Pakistan-Iran gas pipeline, amidst reports that Russian natural gas major Gazprom has shown interest in the project. Pakistan wants Russia to be a partner in the gas pipeline that joins Iran, Pakistan and India, Pakistan's Ambassador to Moscow Mustafa Kamal Qazi, said in an interview to Radio Moscow. GAIL INDIA HASTENS PACE TO COMPLETE LNG TERMINAL OCT 11, 2005 NEW DELHI - A day after the visit of a high level team to Dabhol, state-run gas utility GAIL (BSE:532155) has drawn up a tight schedule with close deadlines for completing the Ratnagiri LNG terminal. "With the transfer of assets of erstwhile Dabhol Power Company to Ratnagiri Gas and Power Pvt Ltd (RGPPL), completion and commissioning of the project assets and putting them to commercial operations have been put on fast track," the company said in a press release here. BP TO HOLD DIALOGUE WITH HPCL ON BHATINDA REFINERY STAKE OCT 11, 2005 NEW DELHI - British oil major BP Plc will this week sign an agreement with Hindustan Petroleum Corp Ltd (HPCL) (BSE:500104) to initiate a dialogue for picking a stake in HPCL's Rs 120 billion Bhatinda refinery in Punjab. HPCL and BP would sign the agreement during the visit of BP chairman Sir John Browne on October 13, a top government official said here. W.AUSTRALIAN DELEGATION CALLS ON TAMIL NADU CHIEF MINISTER OCT 11, 2005 CHENNAI - Western Australia, rich in mineral resources like LNG, could work with Tamil Nadu in developing an LNG terminal at suburban Ennore port for supply of gas for power generation and industrial use, Tamil Nadu Chief Minister J Jayalalithaa said on Monday. The two sides could also work together in the area of tapping underground lignite to produce gas, she told a nine-member high level team, headed by Western Australian Premier Geoff Gallop, which called on her at the Secretariat here. INDIA'S ESSAR GROUP PLANS FORAY IN POWER TRADING OCT 12, 2005 NEW DELHI - After Tatas and Reliance, yet another corporate giant - the Rs 200 billion (US$4.6 billion) Essar Group - is entering the inter-state power trading business. Essar Electric Power Development Corporation Ltd, an Essar Group company, has approached Central Electricity Regulatory Commission for a category 'C' licence to undertake 200-500 million units of inter-state trading a year. INDIA TO GET 100,000 BARRELS OF OIL PER DAY FROM SAKHALIN-1 OCT 12, 2005 YUZHNO-SAKHALINSK (RUSSIA), Oct 12 Asia Pulse - India will get 100,000 barrels of oil per day beginning 2007 from Sakhalin-I oil and gas fields in Far East Russia and will recover its US$2.7 billion investment in less than three years time. The Sakhalin-I fields, where ONGC Videsh Ltd has 20 per cent stake, began producing oil and gas earlier this month.

INDIA'S MGL TO SUPPLY PIPED GAS TO 600,000 HOUSEHOLDS IN 4-5 YRS OCT 13, 2005 MUMBAI - Mahanagar Gas Ltd (MGL) on Wednesday said it has set a target to supply piped natural gas (PNG) to 600,000 households in Mumbai within the next four to five years. "Currently we supply PNG to 231,000 households in the city, we will certainly take it to600,000 in the next four to five years," MGL managing director A K Purwaha said on the sidelines of the commencement of the construction activity of PNG at Sion in Central Mumbai here today. INDIA'S MITTAL SAYS REBIDDING DECISION AWAITS CLARITY IN KAZAKH LAW OCT 13, 2005 NEW DELHI - ONGC-Mittal combine is awaiting clarity in Kazakhstan law before deciding on making a revised bid for PetroKazakhstan. "Kazakhstan has amended its oil policy and has preemption rights in any deal where foreign companies acquire Kazakh firms. We will wait for clarity before deciding on the rebid," Mittal Group Chairman and CEO Lakshmi N Mittal told reporters here. BP, HPCL SIGN PACT FOR US$2.7 BLN BHATINDA REFINERY OCT 14, 2005 NEW DELHI - One of the world's largest oil firms, BP, and state-run Hindustan Petroleum Corp Ltd (BSE:500104) today signed an agreement for building the Rs 120 billion (US$2.7 billion) Bhatinda refinery and retail marketing of fuel. HPCL and BP will have a 50-50 strategic joint venture covering the refining and marketing sector with the 9 million tonne per annum Bhatinda refinery being the first major project of the joint venture. INDIA'S GAIL KEEN TO ASSIST IN BUILDING STATE GAS GRID OCT 17, 2005 HYDERABAD - The Chairman and Managing Director of the Gas Authority of India Ltd (GAIL), Prashanto Banerjee on Friday met Andhra Pradesh Chief Minister Y S Rajasekhara Reddy and offered assistance to the government in establishing a gas grid in the state. Banerjee said GAIL was keen to sign an MoU with the state government to share its expertise and play an active role in implementing the gas grid project. ONGC, BP EYE EXPLORATION IN INDIA, GLOBALLY OCT 17, 2005 MUMBAI - Oil and Natural Gas Commission Ltd (ONGC) Chairman Subir Raha on Friday said the company was in touch with British Petroleum (BP) for exploration collaboration in India and overseas. "I met BP chairman Sir John Brown on Thursday afternoon and the issues that we discussed included collaboration for exploration," he told reporters on the sidelines of a function organised by the National Institute of Industrial Training (NITIE) here. FOUNDATION STONE LAYING OF INDIAN LNG TERMINAL POSTPONED TO DEC OCT 17, 2005 KOCHI - The foundation stone laying ceremony of the Rs 23 billion (US$514 million) Petronet LNG terminal of GAIL (BSE:532155) at Puthu Vype near here by Prime Minister Manmohan Singh, scheduled for November 1, has been postponed to the first week of December due to the upcoming Lok Sabha polls in Thiruvananthapuram. This was decided at a high-level meeting chaired by Kerala Chief Minsiter Oommen Chandy with GAIL top officials, including its chairman and managing director Prashanto Banerji, P H Kurien, managing director of the Kerala state Industrial Development Corporation (KSIDC), told reporters.

GAIL INDIA EXPLORES SOURCING LNG FROM AUSTRALIA, MALAYASIA OCT 17, 2005 KOCHI - GAIL (BSE:532155) was "actively exploring" sourcing LNG from five countries, including Australia, Abu Dhabi, Oman and Malaysia for its Dahej plant and proposed Kochi terminal. "We are looking at multiple sources. The situation is dynamic and we have assured Chief Minister Oommen Chandy that by September 2009 the Kochi LNG terminal will be completed and re-gasified LNG would flow from it," GAIL chairman and managing director Prashanto Banerjee told reporters here. INDIA'S ONGC ASKS MOODY'S TO DO CREDIT RATING, MAY RAISE FOREIGN FUNDS OCT 17, 2005 NEW DELHI - Oil and Natural Gas Corp (ONGC), India's largest oil producer, may go in for foreign debt to fund its overseas acquisitions and in preparation, it has asked Moody's to do a credit rating. ONGC Videsh Ltd (OVL), ONGC's subsidiary, is aggressively scouting for international acerages and it is anticipated that in the near future, there would be huge funding requirement over and above internal resources. INDIAN OIL CORPORATION TO BE BACK IN BLACK IN Q2 OCT 18, 2005 NEW DELHI - Indian Oil Corporation (IOC) (BSE:530965), India's largest oil firm, will return to profitability in second quarter of the current year, but its subsidiary IBP is likely to report a net loss of about Rs 4 billion (US$89.3 million) in July- September quarter. "We posted a net loss of about Rs 540 million in the first quarter. There has been an increase in petrol and diesel prices after that and we hope to return to black in second quarter," IOC marketing director N G Kannan told reporters here on Monday. INDIA-CHINA HYDROCARBON COOP TO MAKE "FORMIDABLE PRESENCE": MIN OCT 19, 2005 SHANGHAI - The coming together of India and China in hydrocarbons sector will constitute a "formidable presence" in the global hydrocarbons scenario, Minister for Petroleum and Natural Gas, Mani Shankar Aiyar has said. "Given the technical, human and financial resources available in our companies at present, their (companies of India and China) coming together will constitute a formidable presence in the global hydrocarbon scenario," Aiyar says in 'India & China: Partnership in Energy Security,' a newly-released publication issued by the Ministry of Petroleum and Natural Gas here. The release coincided with the third 'Made in India' (MII) show where major Indian hydrocarbon companies are represented for the first time under one umbrella. NEYVELI LIGNITE CORP TO BUILD POWER PLANT IN TAMIL NADU OCT 21, 2005 NEW DELHI - Neyveli Lignite Corporation (ANSI:NEVELILI) is planning to set up a 1,000 MW coal-fired power plant at Tuticorin in Tamil Nadu at an estimated investment of Rs 40 billion (US$887 million). The state-run company is also expanding its 250 MW power plant at Bikaner in Rajasthan. The company will add two power plants one 250 MW and the other of 500 MW in Bikaner district, NLC chairman and managing director S Jayaraman said. INDIA'S IOC UNVEILS STRATEGIC PLANS FOR GROWTH OCT 24, 2005 BHUBANESWAR - Indian Oil Corporation (IOC) (BSE:530965), India's flagship hydrocarbon major, aims to grow from a US$35 billion turnover company to US$60 billion by 2011-12 with well coordinated strategic plans, including clear blueprints, for investment of over

US$15 billion. IOC's business development efforts are now focussed on globalisation of marketing operations, export of products and services, diversification into natural gas marketing and linear integration---both upwards into oil exploration and production and downwards into petrochemicals, its chairman- cum-managing director Sarthak Behuria said. INDIA'S RELIANCE SEEKS PERMISSION TO EXPORT LPG, KEROSENE OCT 25, 2005 NEW DELHI - Reliance Industries (BSE:500325), India's largest private firm, has sought permission to export LPG and kerosene and removal of petroleum products from Essential Commodities Act as part of its wishlist for 2006-07 budget. In its pre-budget submissions, Reliance stated that its 660,000 barrels a day Jamnagar refinery in Gujarat faced containment problems due to public sector retailing firms -- Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp -- buying products way below the output from the refinery. IOC SEEKS ROMANIAN PROJECTS IN DRILLING, DELIVERY SERVICES OCT 25, 2005 NEW DELHI - State-owned Indian Oil Corporation (IOC) has approached Romanian government for projects in drilling and delivery services, Romanian Commerce Minister Ioan Codrut Seres said Monday. "IOC and other Indian companies have approached us for equity in a state-owned company which is into drilling. IOC also showed interest in equity in other projects such as setting up pipelines and delivering technologies," Seres told reporters on the sidelines of a CII conference here. GE REFUSES LNG EQUIPMENT TO IRAN, INDIAN IMPORTS IN JEOPARDY OCT 26, 2005 NEW DELHI - India's US$22 billion deal to import 5 million tonnes of LNG from Iran is in trouble after General Electric of US is believed to have refused supply of crucial equipment needed to make LNG to Tehran. GE has refused to supply compressors, a crucial link in converting natural gas into liquid for transportation in ships, to Iran, industry sources said. SHELL OFFERS TO SELL LNG AT DISCOUNT TO RESTART DABHOL PROJECT OCT 27, 2005 NEW DELHI - Royal Dutch/Shell, the world's third largest oil firm, has offered to sell liquefied natural gas (LNG) at a 20 per cent discount off the current naphtha prices to restart the beleagured Dabhol power project. The government, which is looking at restarting the project by July 2006, has had little success in sourcing LNG to fire the 2,184 MW plant in Maharashtra at a maximum price of US $4.25 per million British thermal unit to produce electricity at Rs 2.70 per unit. INDIA LOOKING AT AUSTRALIA AND QATAR FOR LNG SUPPLY OCT 27, 2005 NEW DELHI - Energy-hungry India has begun to look at alternative sources of natural gas as it anticipates delays in supply of gas from Iran which faces sanctions for its nuclear programme. "We are looking at Australia and Qatar to supplement the (LNG) deal already signed with Iran and gas imports through the proposed pipeline passing through Pakistan," a top petroleum ministry official said. INDIA, RUSSIA AGREE TO DEVELOP ENERGY COOPERATION OCT 27, 2005 MOSCOW - Giving a new dimension to their strategic partnership, India and Russia today agreed to bolster trade and economic cooperation with the focus on developing energy sector, including nuclear, diamond trading and joint ventures in high technologies. India will

also go beyond a large investment in Sakhalin-1 oil field, visiting External Affairs Minister K Natwar Singh announced here after the 11th meeting of the Indo-Russian InterGovernmental Commission. CALL FOR INDIA TO WORK TOWARDS FORMATION OF ASIAN OIL UNION OCT 27, 2005 BHUBANESWAR - India has to work towards the establishment of an Asian oil union while looking for gas and oil outside the country for hydrocarbon security, Minister for Petroleum and Natural Gas and Panchayatiraj Mani Shankar Aiyar said yesterday. "Asia must recognise that oil and gas is to Asia today what coal and iron ore was to Europe a few decades ago, leading to the subsequent creation of the European union," Aiyar said. He made the comments while addressing the Xavier Institute of Management (XIM) here on the 'Future of the Energy Sector in India'. INDIA'S ONGC RENEWS DRILLSHIP CHARTER FOR 3 MORE YEARS OCT 28, 2005 NEW DELHI - State-owned Oil and Natural Gas Corp (ONGC) (NSI:ONGC) has renewed its charter for deepsea drillship Discoverer Seven Seas for three more years but had to more than double the dayrate to secure the vessel. The current contract - sealed in August 2003 with a dayrate of about US$125,115 - expires in April 2006. For the new contract, ONGC will pay Transocean US$315 million, or US $357,000 per day over the three-year period, industry sources said. GAIL INDIA BOOKS 70 PCT JUMP IN Q2 NET PROFIT OCT 28, 2005 NEW DELHI - State-owned gas utility GAIL India Ltd (BSE:532155) on Thursday reported a 70 per cent jump in its net profit at Rs 7740 million (US$171.9 million) in second quarter ended September 30, 2005 on reduced subsidy payout on dometsic cooking gas (LPG) and PDS kerosene. Turnover increased 17 per cent to Rs 36.01 billion in the quarter as compared to Rs 30.81 billion the previous financial year. Gross margin were also up 13 per cent, a company official said. INDIAN OIL CORP NET DOWN 23 PCT ON ISSUES IN FUEL SALES OCT 31, 2005 NEW DELHI - Indian Oil Corp (IOC) (BSE:530965), country's largest oil firm, on Friday reported a 23 per cent drop in its net profit to Rs 9.49 billion in quarter ended September 30, 2005 on continued losses on fuel sale. The company, which lost Rs 56.27 billion on sale of petrol, diesel, LPG and kerosene in April-September period, saw its profit fall to Rs 8.95 billion in first six months of current fiscal as opposed to Rs 27.11 billion net profit posted in the corresponding period the previous year. GAIL INDIA IN TALKS WITH LNG SUPPLIERS TO SOURCE FUEL FOR DABHOL OCT 31, 2005 NEW DELHI - State-owned Gail India Ltd (BSE:532155), which has been given the task of sourcing fuel to restart the Dabhol power project in Maharashtra, is talking to LNG suppliers in Australia, Malaysia, Oman, Qatar and UAE. "We are in advanced negotiations with suppliers in Qatar, Oman, UAE, Australia and Malaysia. We hope to tie-up LNG soon," GAIL chairman and managing director Proshanto Banerjee said here. INDIAN POWER COMPANY NTPC NET PROFIT UP BY 6.35 PCT IN Q2 OCT 31, 2005 MUMBAI - National Thermal Power Corporation Ltd (BSE:532555) on Thursday said its net profit grew by 6.35 per cent at Rs 11,635 million (US$258.6 million) for the quarter ended

Sept 30, 2005 compared to Rs 10.94 billion for the corresponding period last fiscal. Total income also jumped up by 13.49 per cent at Rs 65,574 million for the second quarter this fiscal as against Rs 57,775 million in the year-ago period, the State-owned power major informed the Bombay Stock Exchange on Thursday. INDIA'S ONGC TO SET UP RAJASTHAN REFINERY NOV 1, 2005 JAIPUR - India's largest oil producer ONGC (NSI:ONGC) on Monday announced it would set up a 7.5 million tonne-capacity refinery at Barmer oil fields in Rajasthan at an investment of Rs 90 billion. Crude from the Barmer oil fields, which the company drilled in collaboration with UK's Cairn Energy, has been allotted to ONGC-MRPL (Mangalore Refinery and Petrochemicals Ltd) for refining petroleum oil with 50 per cent equity to Cairn, ONGC chairman and managing director Subir Raha said here. INDIA'S ONGC BIDS FOR US$3.75 BLN REFINERY PROJECT IN ANGOLA NOV 1, 2005 NEW DELHI - State-owned Oil and Natural Gas Corp (NSI:ONGC) has bid to participate in Angola's US$3.75-billion Sonaref project to build a 10 million tonne refinery at Lobito. Sonaref project involves setting up a grassroot refinery of 200,000 barrels per day (10 million tonnes a year) capacity at Lobito on the Atlantic Coast and is linked with equity participation in exploration of deepwater blocks 15, 17 and 18, industry sources said. INDIA'S ONGC SIGNS MOU FOR PRODUCTION OF HELIUM GAS NOV 1, 2005 AGARTALA - Energy major ONGC (NSI:ONGC) will conduct a pilot study with the help of the Department of Science and Technology (DST) and the Saha Institute of Nuclear Physics (SINP) to look into the feasibility of commercial production of helium gas. Chairman and managing director Subir Raha told reporters here on Saturday that ONGC has signed an MoU with DST and SINP for the purpose. ADB STUDY FAVOURS TWO GAS PIPELINES TO SOUTH ASIA NOV 1, 2005, Ashok Dasgupta, The Hindu The demand for natural gas in South Asia in future is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, an Asian Development Bank (ADB) expert has said. According to a senior ADB energy specialist, Dan Millison, reserves information from Turkmenistan released some time ago shows a lower-than-expected gas deliverability for a proposed $ 3.3-billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. ADB has been brokering the 1,700 km pipeline project since 2002, promoting it as a win-win example of regional cooperation, a pioneering effort to link gas-rich Central Asia with energy-deficient South Asia through Afghanistan. The project would bring clean fuel at competitive costs to India and Pakistan coupled with the much-needed transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Dauletabad gas field has gross reserves of 1.4 trillion cubic metres. However, production forecasts are lower than expected, causing analysts to doubt that it could meet the proposed target of piping 30 billion cubic metres (BCM) of gas annually to South Asia. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing," said Mr. Millison. "They will need to find gas from other fields to meet pipeline design targets," he said. Meanwhile, a $ 7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700 km pipeline would cost more than double the Turkmenistan scheme but leaves out Afghanistan, where security concerns remain. Gas demand estimate -- "However, with long-term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline," says Mr. Millison.

India already imports gas and the demand is expected to soar in the next decade. Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. In fact, Mr. Millison feels that the projected demand in South Asia is so strong that there may be a need for a third pipeline from Qatar or Oman. With the new gas reserves data on hand, as well as a draft security analysis report, the next step is for the project's steering committee to meet and discuss inviting an international consortium of investors to build the pipeline. Turkmenistan is largely a desert country, with proven recoverable natural gas reserves of 71 trillion cubic feet (TCF) (about two trillion cubic metres) and possible reserves of over 200 TCF (about six trillion cubic metres). It is one of the world's largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining. With large gas reserves and a small population, Turkmenistan's export potential is huge, though substantial investments are needed to increase production. Turkmenistan at present pipes most of its gas to Ukraine and Europe via Gazprom, the Russian utility, though it has also a small pipeline to Iran. Even if Turkmenistan settles for current gas prices with India and Pakistan, observers note that it should have some pricing leverage within five years when the project comes on stream. They point out that Pakistan industries and power plants now pay $ 100 per 1,000 cubic metres of gas. Apart from financing the feasibility report for the Turkmen project, ADB financed a study for underground natural gas storage in Pakistan, where storage capacity would help meet local demand peaks in winter and counter possible supply disruptions. INDIA'S ACL FINDS OIL, EARMARKS US $100 MLN FOR EXPLORATION NOV 2, 2005 KOLKATA - Assam Company Limited (BSE:500024), a Duncan Macneill Group company, has successfully tested oil at Amguri oil field in Assam and earmarked about US$100 million for exploration ventures over next three-four years. The company has found oil at Amguri well 5, where it has been carrying out exploration in association with Canoro Resources Limited, a Canadian company with expertise in oil and gas business worlwide. INDIAN, FRENCH INSITITUTES TO DEVELOP ENERGY GENERATION PROCESS NOV 3, 2005 COIMBATORE - A local technological institution has entered into an agreement with an agronomic research institute in France today to further develop a patented energy generation process 'Proveo' for the benefit of small and large-scale industries. Proveo is an anaerobic method with accumulation of biomass inside the reactor, which gives a high rate of CoD (Chemical oxygen Demand) removal and also the total solids. The energy produced from this process can be used by industries, a press release from the Kumaraguru College of Technology said here. INDIA WANTS SEPARATE JVS FOR CONSTRUCTION, OPERATION OF PIPELINE NOV 3, 2005 NEW DELHI - India has suggested separate joint venture companies for the construction and operation of the over US$7 billion Iran-Pakistan-India gas pipeline. At the Second Special Joint Working Group meeting in Tehran last month, New Delhi suggested separate joint ventures - made up possibly of national oil companies of the three countries and a specialist in the area - for project construction and operation, a senior government official said. INDIA'S RELIANCE TO GIVE US$165.7 MLN DISCOUNT TO PSU RETAILERS NOV 4, 2005 NEW DELHI - Reliance Industries Ltd (BSE:532611) will give Rs 7500 million (US$165.7 million) discount on LPG and kerosene to public sector petro retailers in 2005-06.

Standalone refineries including RIL are offering a total of Rs 15 billion discount on LPG and kerosene they sell to Indian Oil, Bharat Petroleum Corp and Hindustan Petroleum Corp, IOC Chairman Sarthak Behuria told reporters recently. INDIA'S ONGC, CIL SIGN MOU FOR GASIFICATION OF COAL RESERVES NOV 4, 2005 NEW DELHI - Oil and Natural Gas Corp (NSI:ONGC), India's largest oil and gas producer, on Thursday signed an agreement with world's largest coal producer Coal India Ltd for gasification of unminable coal reserves in the country. The 50:50 collaboration will use technology from Russia's Skochinksy Institute of Mining to convert underground coal into methane gas that can be used as fuel in industries, for supplementing availability of domestic natural gas. INDIA-BHUTAN HYDRO PROJECT SLATED TO BE COMMISSIONED BY JUNE NOV 4, 2005 NEW DELHI - The Tala Hydroelectric Project (THP), the biggest joint venture power project between India and Bhutan, is expected to be commissioned by June 2006, Power Minister P M Sayeed said on Thursday. "We are trying to commission THP by June 30, 2006. India will draw around 1,000 MW power from the project. Some northern and eastern states of India will be benefited from the power transmission from THP," Sayeed told reporters after a meeting with visiting Bhutan Minister for Trade and Industry Lyonpo Yeshey Zimba here. COAL INDIA EYES MINES IN AFRICA, AUSTRALIA, INDONESIA NOV 4, 2005 NEW DELHI - World's largest coal producer, Coal India Ltd (CIL) is looking at acquisition of mines in Africa, Australia and Indonesia to cut import of high grade, low ash content coal into the country. Coal Videsh Ltd, CIL's 100 per cent subsidiary, wants to acquire stakes in either running coal mines or a coal block in South Africa, Australia, Indonesia, Zimbawbe and Mozambique capable of producing metullargical coal (used for manufacturing steel) and low ash, non-coking coal (used for producing power), CIL chairman and managing director Shashi Kumar told reporters here. COAL INDIA TO SET UP INVESTMENT ARM BY END OF THIS FISCAL YR NOV 4, 2005 NEW DELHI - Coal India Limited (CIL), the world's largest coal producer, will set up an investment arm for acquisition of coal mines abroad by the end of current fiscal. "We have applied to the government for setting up of Coal Videsh Limited. We expect approval this fiscal," CIL Chairman and Managing Director Shashi Kumar told reporters here. INDIA'S POWERGRID CORP GETS US$400 MN LOAN FROM ADB NOV 4, 2005 NEW DELHI - The Asian Development Bank will provide a loan of US$400 million to PowerGrid Corporation of India for various transmission projects. A loan agreement was signed by PGCIL Chairman R P Singh and ADB Country Director Tadashi Kondo here on Thursday. INDIAN POWER FIRM TO GET $400M ADB LOAN NOV 6, 2005 http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection= market+news&month=November2005&file=Business_News2005110692333.xml New Delhi: State-owned Power Grid Corporation of India Ltd (Powergrid), one of the largest transmission utilities in the world, on Thursday signed a loan agreement for $400m with the Asian Development Bank (ADB). With the Indian government providing guarantee, the loan

agreement was signed by Powergrid chairman R P Singh and ADB country director Tadashi Kondo. "The loan will be utilised to fund a basket of Powergrid transmission projects during 2005-09, which include major transmission elements of the national power grid," an official statement said. With India having set an ambitious goal of providing power to all its citizens by 2012, "massive resources are required to carry out the expansion plan and meet the targets", said Powergrid. The company has been tapping not only domestic markets, but also multilateral agencies to fund its projects. The $400m loan for 20 years with a fiveyear grace period is for transmission projects that will facilitate the supply of 2,500MW from the southern region. INDIA'S BPCL TO INVEST US$420 MLN IN BHARAT OMAN REFINERIES NOV 7, 2005 MUMBAI - Bharat Petroleum Corporation Ltd today said it will invest Rs 19.96 billion (US$420 million) in Bharat Oman Refineries Ltd. BORL project consists of a six MMTPA refinery complex at Bina, District Sagar in Madhya Pradesh and the amount to be invested by BPCL represents 50 per cent of the total equity being raised by BORL, the company informed the Bombay Stock Exchange. INDIA'S OVL AWARDED 2ND OFFSHORE EXPLORATION BLOCK IN VIETNAM NOV 8, 2005 NEW DELHI - State-owned petroleum major ONGC Videsh Limited (OVL) has been awarded second offshore exploration block 128 with 100 per cent participating interest and operatorship in Phu Kanh basin by Petro Vietnam, the Vietnam's national oil company. Earlier, OVL was awarded Block 127 in the same basin just North of Block 128. These awards came out of global competitive bidding for nine offshore exploration blocks in Vietnam 2004 Licensing round, according to a ONGC release here. INDIA'S ONGC SAYS OVL HIVE OFF WOULD DENT CONFIDENCE NOV 8, 2005 NEW DELHI - State-owned Oil and Natural Gas Corp (NSI:ONGC) has opposed a possible hive-off by the government of its subsidiary ONGC Videsh Ltd saying it would have a damaging effect on investor confidence and a destablising effect on OVL credibility. ONGC moved a Board resolution following reports that the Petroleum Ministry plans to take away OVL from the company and make it a flagship firm for overseas acquisition under direct government control, company sources said. INDIA'S L&T SUPPLIES GIANT PROCESS PLATFORM TO ABU DHABI FIRM NOV 8, 2005 MUMBAI - Engineering and construction major Larsen & Toubro on Monday said it has supplied a giant gas injection platform for Bunduq Company Ltd in Abu Dhabi. The platform is scheduled to be installed by January 15, 2006 in the El Bunduq field. It weighs 2,400 tonnes and is among the heaviest single modules to be loaded from a facility in India, a company statement said. HPCL, BP AGREE TO DECIDE ON REFINERY PARTNERSHIP BY NOV 12 NOV 9, 2005 NEW DELHI - Hindustan Petroleum (BSE:500104) and British oil giant BP Plc will decide on signing a binding agreement for a new refining and marketing joint venture vehicle to build a nine million tonne refinery at Bhatinda in Punjab by November 12. The two signed a letter of intent on October 13 to form a 50:50 venture to construct, operate and control the Bhatinda refinery to start with, and later cover the entire refining and marketing sectors.

INDIA'S NHPC TO GET US$98 MLN LOAN FROM COFACE FOR HYDRO PROJECT NOV 9, 2005 NEW DELHI - National Hydroelectric Power Corporation Limited would get a concessional loan of Rs 4.5 billion (US $98 million) from French export credit insurance agency Coface to import of equipment for the 2,000 MW Subansiri Lower hydro project in Arunachal Pradesh. "We have had a fruitful discussion with Coface officials. WORLD WIND ENERGY AWARD WON BY INDIAN MINISTRY NOV 10, 2005 NEW DELHI - The Minister for Non-Conventional Energy Sources Vilas Muttemwar and his Ministry have been honoured with the World Wind Energy Award-2005 for "Outstanding Achievements in Favourable Policies for Wind Energy". The Award was presented to Muttemwar recently by the World Wind Energy Association (WWEA) during the closing ceremony of the World Wind Energy Conference at Melbourne, an official statement said here. OIL PRICES WILL MODERATE OVER A PERIOD OF TIME: SNOW NOV 10, 2005 MUMBAI - Advising central banks to be careful and vigilant over inflation, US Treasury Secretary John Snow on Tuesday said oil prices would moderate over a period of time. "Over a period of time, I think it (oil prices) will moderate. The market will tell us where it will go.. but it will be moderate...," he told reporters here after meeting Reserve Bank Governor Y V Reddy. INDIA'S PETRONET TO SEEK EQUITY IN RATNAGIRI GAS AND POWER NOV 10, 2005 NEW DELHI - Petronet LNG Limited (BSE:532522) will seek equity in Ratnagiri Gas and Power Limited, a JV between NTPC (BSE:532555) and GAIL (BSE:532155) for restarting the Dabhol Power Plant, in view of sourcing LNG to the beleagured plant. Petronet is talking to RasGas of Qatar and Petronas of Malaysia for sourcing 1.2 to 1.5 million tonne of LNG annually to fire the 2,184 MW power plant, highly placed sources said. INDIA'S INFOTECH TO PROVIDE DATA SERVICES FOR AUSTRALIA'S AUSNET NOV 10, 2005 MUMBAI - Infotech Enterprises, a geospatial and engineering design service provider, on Thursday said it has been selected by Australian SP AusNet to provide geospatial data maintenance services for their gas and electricity network assets under a two-year contract. Infotech operates the data maintenance centre for SP AusNet from its facilities in Melbourne, Australia and has been meeting the performance criteria set down by SP AusNet in the initial months of project execution, it informed the National Stock Exchange. GAIL SIGNS MOA WITH BELGIUM'S EXMAR FOR LNG REGASIFICATION NOV 10, 2005 NEW DELHI - Aiming to enhance LNG stock in the country, Gail India Limited (BSE:532155) on Wednesday signed a Memorandum of Agreement with Belgian shipping major EXMAR Marine NV for jointly pursuing projects and using the latter's on-board LNG regasification technology for LNG transportation by ship. "The MoA will help transportation of LNG from Myanmar across Bay of Bengal to the east coast, most likely at Haldia or Paradip port. The on-board LNG regasification technology would reduce cost considerably when compared to the conventional re-gas facility," Petroleum and Natural Gas Minister Mani Shankar Aiyar said here.

REGIONAL POWER GRID PROPOSAL LIKELY TO GET NOD AT SAARC SUMMIT NOV 10, 2005 DHAKA - A proposal for setting up a regional power grid is likely to be adopted at the ensuing SAARC summit to be held in the capital on November 12-13. Sources in the Ministry of Power, Energy and Mineral Resources said the proposal will be placed in line with the resolution of the recently held SAARC energy ministers' meeting in Islamabad. INDIAN PM OUTLINES NEW VISION FOR SAARC AT REGIONAL SUMMIT NOV 12, 2005, BBC Monitoring International Reports The Indian prime minister has called for zero-tolerance on cross-border terrorism and "a collective commitment" to fight "the scourge of terrorism". Addressing the 13th SAARC summit in the Bangladesh capital Dhaka, Manmohan Singh urged a new approach to face regional and international challenges with supranational solutions and said India backed putting aside historical and political divisions to create "a new architecture for mutually beneficial economic partnership". The Indian news agency report said he also stressed the need for speedy strategic regional cooperation within the wider Asian context and called for improved regional transport infrastructure and a South Asia energy dialogue to tap potential, as well as a regional food bank against shortages and disasters. Following is text of report by Indian news agency PTI: Dhaka, 12 November: Outlining a new vision for SAARC (South Asian Association for Regional Cooperation), India's Prime Minister Manmohan Singh on Saturday [12 November] asserted that there should be "zero tolerance" for cross-border terrorism among member states and made far-reaching proposals for stepping up economic cooperation, enhanced air connectivity and setting up of a regional mechanism for disaster relief and management. Addressing the twice-deferred SAARC Summit here, he said no SAARC nation should allow its territory to be used against the interests of another member state. "There should be zero tolerance for cross-border terrorism and for the harbouring of hostile insurgent groups and criminal elements," he stressed. India has been concerned over terror camps operating in Pakistan as also northeastern insurgent groups operating from Bangladesh. "It is only in an environment of mutual confidence and a collective commitment against the scourge of terrorism, that we can register the progress we desire in more intense interaction," he said. Underscoring the need for regenerating the arteries of transport and communication in the region, Manmohan Singh suggested that the South Asian countries should agree to provide to each other, reciprocally, transit facilities to third countries, not only connecting one another but also connecting to the larger Asian neighbourhood, in the Gulf, Central Asia and the Southeast Asia. "India, which borders each of the members of South Asia, is willing to do so," he said. Highlighting the need for improved air services among SAARC countries, Singh took the initiative announcing that India was prepared to offer to all SAARC neighbours "on a reciprocal basis and without prejudice to existing rights, the facility of daily air services by designated airlines" to Indian cities, Delhi, Mumbai [Bombay], Chennai [Madras], Bangalore, Hyderabad and Kolkata besides 18 other destinations all across India. The prime minister followed this up by offering designated airlines of SAARC countries the facility to exercise fifth freedom rights, both intermediate and beyond, with the SAARC region, also on a reciprocal basis. In his address, Singh indicated the need for countries to change their mindsets. "The challenges we face as a region and as members of the larger international community are no longer susceptible to purely national solutions," he said. "There is an imperative need to change and overcome the divisions of history and politics to forge a new architecture of mutually beneficial economic partnership. India, for its part, remains ready for this endeavour," he said. The summit of the seven-nation grouping comprising India, Bangladesh, Pakistan, Sri Lanka, Nepal, Maldives and Bhutan, was first postponed in January in the wake of the tsunami disaster and again in February when India pulled out expressing serious concern over the security situation in Bangladesh and developments in Nepal. Unprecedented security apparatus has been put in place manned by over 30,000 personnel to ensure that

the summit went off peacefully. Observing that food security was a major challenge for all South Asian countries, Singh recommended establishment of Regional Food Bank to which all member states would contribute. This could be used to meet shortages and losses caused by natural calamities in any of these countries, he said. Emphasizing the need for promoting regional cooperation in strategizing for the future, the prime minister proposed a South Asian Energy Dialogue involving experts, academics, environmentalists, officials and NGOs, to recommend measures to tap this potential. The prime minister regretted that not a single project proposal had been received relating to utilization of the Poverty Alleviation Fund for which India had offered to contribute 100m dollars a year back on the understanding that this money would be used entirely on projects with SAARC but outside India. India, he said, welcomed the decision to merge the different existing and proposed funds into an Umbrella South Asian Development Fund with different windows for different purposes. As a step in the direction of creating a South Asian Economic Union by 2020, Singh recalled that at the July ministerial meeting it was recommended that a SAARC High Economic Council be set up, which could promote initiatives in economic, trade, finance and monetary areas with a view to moving towards regional economic integration. Noting that South Asia possesses a very rich and living tradition of exquisite handicrafts and textiles, he conveyed India's readiness to establish a SAARC Museum of Textiles and Handicrafts. The museum could sponsor training of craftsmen, foster design skills, hold promotional events such as fashion-shows and demonstrations by artisans and also undertake research, the prime minister said, adding setting up of retail outlets in each of the SAARC capitals could be explored to promote their textiles and handicrafts regionwide. Singh also announced India's offer to hold a South Asian Car Rally in the run-up to hosting the next summit in the first half of January 2007. It would symbolize vividly regional identity of SAARC and also underline the urgent need to improve transport infrastructure in these countries, he said. To provide an enabling environment and world class facilities to talented people in the region, the prime minister suggested that the member states pool their resources to create a centre of excellence in the form of a South Asian University. India is willing to make a major contribution to the realization of this project over the next three to four years, he said. Observing that regional economic cooperation in South Asia has fallen far short of expectations, he hoped that SAFTA [South Asian Free Trading Agreement] would come into force by 1 January 2006. Contending that it was important to assess South Asia regional cooperation in the larger Asian context, the prime minister said today, ASEAN was evolving rapidly into a truly integrated economic community. "My question is, is SAARC prepared to be an integral part of this emerging Asian resurgence or is it content to remain marginalized at its periphery? "If our region wishes to be a part of the dynamic Asia, which is emerging in our neighbourhood, then we must act and act speedily," he stressed. Referring to disasters afflicting the region, he said the summit should evolve regional mechanisms for effective and timely cooperation in disaster relief and management. India's offer to host the SAARC Centre for Disaster Preparedness has been accepted by all member states. He said the possibilities for meaningful cooperation range from early warning systems to relief and reconstruction. Source: PTI news agency, New Delhi, in English 0813 gmt 12 Nov 05 INDIA'S EXIM BANK PLANS TO EXTEND US$450 MLN LOAN TO SUDAN NOV 14, 2005 MUMBAI - The Export-Import Bank of India is likely to provide a US$450 million loan to Sudan to help boost Indian exports to the country. The loan will be used to support Bharat Heavy Electricals Limited's planned foray into Sudan's power generation industry. ONGC MITTAL ENERGY BAGS OIL EXPLORATION RIGHTS IN NIGERIA NOV 14, 2005 NEW DELHI - ONGC Mittal Energy has announced that it has bagged a deep water oil exploration award in Nigeria, with a potential of producing 650,000 barrels per day over the

next 25 years. The joint venture company enetered into an MoU with Nigeria's Ministry of Petroleum on November 10 in the presence of an Indian delegation of Public Sector Enterprises led by Additional Secretary, Ministry of Petroleum and Natural Gas Talmiz Ahmed, an OMEL press release said here. NIGERIA AWARDS OIL EXPLORATION RIGHTS TO INDIA'S ONGC NOV 14, 2005 NEW DELHI - The Nigerian government has awarded oil exploration rights to ONGC Mittal Energy Limited in an agreement. The Indian joint venture firm has agreed to provide US$6 billion back-to-back infrastructure support to Nigeria in return for the blocks, which have the potential to produce up to 650,000 barrels per day, a senior ONGC official said. GAIL INDIA PLANS TO ENTER NLD TELEPHONY SEGMENT NOV 15, 2005 MUMBAI - State-owned Gail India Ltd (BSE:532155) on Monday said it plans to tap the Rs 800 billion (US$17.5 billion) telecom market by acquiring the new National Long Distance operations (NLDO) licence for entering the national long distance telephony segment. The company will be launching project "Triveni", in which it has joined hands with Powergrid and Railtel to create the second biggest optic fibre network with a reach of 60,000 km across the length and width of the country, it informed the Bombay Stock Exchange. US, RUSSIAN COS TO JOIN INDIA'S BHEL FOR NUCLEAR POWER PROJECTS NOV 15, 2005 NEW DELHI - Close on the heels of US lifiting ban on supply of nuclear fuel and equipment to India, a number of American, Russian and French companies have approached power equipment giant BHEL (BSE:500103) for developing and deploying technology for nuclear power projects in India. "Some American, Russian and French companies have approached us. We are talking to them... We may tie up with some foreign companies to enhance our capabilities," BHEL Chairman and Managing Director A K Puri said. PM CONFERS EXCELLENCE AWARD OF INDIAN NUCLEAR SOCIETY ON BHEL NOV 16, 2005 MUMBAI - Prime Minister Manmohan Singh on Tuesday conferred the Indian Nuclear Society's 'Industrial Excellence Award' for 2004-05 to state-run Bharat Heavy Electricals Ltd in recognition of its role in the development and manufacture of nuclear equipment for power plants and research centres. The prestigious award, carrying a silver plaque and a citation, was presented by the Prime Minister to BHEL chairman and managing director Ashok K Puri at a ceremony organised as part of the 16th INS annual conference here. DABHOL ISSUE RESOLUTION CORRECTED INDIA'S NEGATIVE IMAGE: US NOV 16, 2005 NEW DELHI - Observing that resolution of the Dabhol power dispute has removed the negative image of India in a major way, the US on Monday appreciated this country's economic reforms process despite "irritants" and said it expected further liberalisation to take place here. US Ambassador here David C Mulford emphasised that the Indo-American relations had "dramatically changed" to attain "comprehensiveness" and sought to downplay the importance of recent protest by Leftists to Indo-US joint exercises in Kolkata. INDIA'S NTPC GETS IPMA AWARD FOR EXCELLENT PROJECT MANAGEMENT NOV 17, 2005 MUMBAI - National Thermal Power Corporation Ltd (NTPC) (BSE:632555) has received the 'International Project Management Award 2005 'for its Simhadri Thermal Power project. The

company informed the exchanges that it had received the IPMA award for excellent and professional project management. GAIL INDIA, HPCL JOIN HANDS FOR OIL, GAS EXPLORATION NOV 17, 2005 NEW DELHI - GAIL (India) Ltd (BSE:532155) and Hindustan Petroleum Corp Ltd (BSE:500104) on Wednesday joined hands to scout for oil and gas exploration and production opportunities in India and abroad. The two state-run companies have signed three pacts, one of which is an MoU for jointly participating in exploration activities in India, central, south and South East Asia, Middle East, Africa, Australia and Russia. INDIA'S HPCL MAY PICK UP STAKE IN SHELL'S LNG TERMINAL NOV 17, 2005 NEW DELHI - State-run Hindustan Petroleum Corporation Ltd (BSE:500104) on Wednesday said it was at an advanced stage of talks with Shell India for picking up stake in its Hazira LNG terminal in Gujarat and a deal was possible this fiscal year. "We are talking to them for picking up stake in Hazira. T INDIA'S TATA POWER DIVESTS ITS ENTIRE STAKE IN AHPC TO GVK HYDEL NOV 18, 2005 MUMBAI - Tata Power Company Ltd (BSE:600400) on Wednesday said GVK Hydel Pvt Ltd, a GVK Group company, has entered into a share purchase agreement with the company to buy its entire shareholding in Alaknanda Hydro Power Company Ltd (AHPC) for Rs 31.2 million (US$681,596). In order to keep its focus on several mega power projects, the company feels it appropriate to divest this project, which was in very preliminary development stage, it informed the Bombay Stock Exchange. POWER DEFICIT A MAJOR PROBLEM IN INDIA: FINANCE MINISTER NOV 18, 2005 NEW DELHI - Concerned over the "deficit infrastructure" in the country, Finance Minister P Chidambaram on Wednesday identified the power sector as one of the most "intractable" problems of the economy. "Both Prime Minister and I have been concerned over the power sector. If there is one sector which appears intractable, it is the power sector," he told the Hindustan Times Leadership Summit here. INDIA'S FIRST INDUSTRIAL GAS TURBINE TO HIT FOREIGN MARKET NOV 21, 2005 MUMBAI - India's first industrial gas turbine for cogeneration is expected to hit the US and East Asian markets in the current fiscal year with an increasing demand from the small and medium business segment. Bangalore-based TurboTech Precision Engineering Pvt Ltd, which developed the machine, is likely to sign a distribution agreement with a US firm. JSPL TO USE COAL GASIFICATION TECHNOLOGY AT INDIAN STEEL PLANT NOV 21, 2005 NEW DELHI - Jindal Steel & Power Ltd has entered into a contract with Sasol-Lurgi Technology Company of South Africa and Lurgi AG of Germany for a coal gasification facility at its six million tonne steel plant in Orissa. JSPL aims to reduce its dependence on imported coal and gas for meeting fuel requirements. S&P AFFIRMS 'BB+' RATING OF INDIA'S NHPC NOV 21, 2005 NEW DELHI - Global rating agency Standard & Poor's has affirmed its 'BB+' long-term foreign and local currency corporate credit ratings with 'stable' outlook for state-run

National Hydroelectric Power Corporation. "The ratings on NHPC are constrained by the weak credit-quality of its customers and the relatively aggressive capital expenditure plan of the company," S&P's Credit Analyst Anshukant Taneja said in a statement on Friday. INDIA TO HOST ASIAN OIL MINISTERS MEET NEXT WEEK NOV 21, 2005 NEW DELHI - India will host a roundtable meeting of North and Central Asian oil producing countries with major Asian oil consumers in the national capital on November 25 as part of its efforts to enhance energy dialogue among leading producers and consumers in the continent. The crucial meet of energy ministers follows the meeting in January this year, when major Asian consumers met oil producers from Southeast and West Asian countries. REDUCE COST TO SELL POWER TO INDIA: PTCI NOV 21, 2005, Himalayan News Service, Kathmandu, November 21: Chairman and managing director of Power Trading Corporation of India (PTCI), Tantra Narayan Thakur, said today that power-hungry northern India would be ready to buy energy from Nepal provided that the latter is be able to sell electricity to India at a rate lower than what costs in India. Thakur, who played a significant role in making amendments in the India's Electricity Act 2003, made this remark while addressing a talk programme organised by Independent Power Producers' Association, Nepal. "Why does Nepal have higher cost of electricity generation than India and Bhutan?" he asked. He said if Nepal wanted to reap economic benefits from exporting energy to India she needs to reduce electricity cost, attract private sector to investment in hydroelectric projects, maximise public revenues and ensure energy security. India is the third largest power industry in Asia whose current power production stands at about 1,15000 MW and still faces a deficit of about 75,000 MW. He also suggested that the governments of India and Nepal should not engage in determining prices of hydroelectricity sale and let the market, the producers and buyers decide the price of electricity sold to either side. Despite the fact that Nepal has potential of generating commercially-feasible 43,000 MW of energy, less than one per cent of its vast resources have been tapped so far and the power tariff in Nepal is one of the highest in the world. Thakur said due to close proximity, Nepal could sell environment-friendly energy to India during the monsoon season while India can sell the former during the dry season through power produced from thermal plants. Some exchange of power trade is taking place between the two countries across the border, but just between 30 and 40 MW. "Since fuel market is being globalised, Nepal also needs to develop her competitiveness to reap benefits from her vast water resources," Thakur said, pointing to the need of improving utilisation of existing resources. He said regional energy security would give an added value to a small countrys like Nepal and Bhutan, which are rich in hydropower potentials. Sandip Shah, president of IPPAN, said lack of political will, high cost of power generation in Nepal due to the location of power plants in remote areas, lack of financing and inefficient marketing of power in India were some of the major barriers towards sustainable and speedy development of Nepal's hydropower. Former chairman of IPPAN Prabhakar SJB Rana, who chaired the session, said Nepali mindset about the proper utilisation of Nepal's water resources sector should be changed if she wished to benefit from her untapped resources. US ASKS INDIA TO EVOLVE CREDIBLE NUKE PLAN TO EXCHANGE TECH NOV 22, 2005 NEW DELHI - The United States on Monday asked India to evolve a "credible nuclear plan" and make a distinction between military and civilian nuclear policies to facilitate exchange of atomic energy technologies between the two countries. "India needs to have a credible nuclear plan. I think India will do it. It has to separate civilian from military use of nuclear energy," US Senator George Allen said at a meeting organised by the Indo-American Chamber of Commerce.

INDIA'S BHEL COMMISSIONS 150 MW GAS TURBINE GENERATOR IN LIBYA NOV 22, 2005 NEW DELHI - Continuing its success in the overseas markets, state run Bharat Heavy Electricals Limited (ABSE:500103) has commissioned a 150 MW Gas Turbine Generator in Libya. The unit has been commissioned by BHEL on turnkey basis for the Genela Electricity company of Libya at its upcoming 600 MW (4x150 MW) Gas Turbine-based Western Mountain power project. SAUDI ARABIA, INDIA TO SIGN ECONOMIC PACTS DURING KING'S VISIT NOV 22, 2005 NEW DELHI - India and Saudi Arabia may cooperate in oil exploration and sign two major economic pacts on investment and avoidance of double taxation during the forthcoming visit of Saudi King Abdullah. "We are looking at signing two economic pacts on investment and double taxation during King Abdullah's visit, which is expected within next two months," Saudi Ambassador Saleh M Al-Ghamdi said on the sidelines of India Saudi Arabia Joint Business Council meeting organied by the Federation of Indian Chambers of Commerce and Industry (FICCI) here on Monday. INDIAN OIL CORPORATION TO RAISE US$250 MLN FROM WORLD MARKET NOV 23, 2005 NEW DELHI - State-owned oil major Indian Oil Corporation (BSE:530965) on Tuesday said it plans to raise US $250 million from the world market to meet its capital expenditure requirements, with a green shoe option of US$50 million. "IOC has mandated BNP Paribas, Caylon bank, Citigroup, ING Bank NV, Mizuho Corporation and Sumitomo Mitsui to arrange the syndicated term loan facility. The term loan facility was launched on 21 Nov and will be completed by mid-December," IOC's Director (Finance) S V Narasimhan said. INDIAN OIL COMMISSIONS HYDROGEN GENERATION UNIT AT PANIPAT PLANT NOV 23, 2005 NEW DELHI - To enhance petroleum product availability in north and northwestern regions of the country, the Indian Oil Corporation (IOC) has commissioned a Hydrogen Generation Unit (HGU) at its Panipat refinery. The commissioning is part of the ongoing Rs 43 billion (US$937 million) refinery expansion project of IOC to double its capacity from six to twelve million tonnes per annum, an official release said. NEPAL SHOULD CUT HYDRO GENERATING COST TO TAP INDIAN MKT: EXEC NOV 23, 2005 KATHMANDU - Nepal should cut the cost of generating hydro-electricity power to tap the vast Indian market and to revive long dormant power ties between the two countries, T N Thakur, managing director of India's Power Trading Corporation (PTC) said on Tuesday. "Why does Nepal have a higher cost of generating electricity than India and Bhutan when all other conditions in these countries are similar to that of Nepal?" he wondered. INDIA TO INK 7 MOUS AT ASIAN OIL MINISTERS MEETING NOV 24, 2005 NEW DELHI - India will sign six agreements with South Korea and another with Turkey for enhancing cooperation in the hydrocarbons sector during the roundtable meeting of North and Central Asian oil producers with major Asian oil consumers. The roundtable, to be held here on November 25 as part of efforts to enhance energy dialogue among leading producers and consumers in the continent, follows the meeting in January this year where major Asian consumers met their counterparts from southeast and west Asian oil producers.

RUSSIAN OIL TO FLOW INTO INDIA NEXT YEAR NOV 24, 2005 NEW DELHI - From the second quarter of 2006, India will receive its first shipment of oil from Russia's Sakhalin-I fields, where it is investing more than US$2.7 billion. The SakhalinI fields, where ONGC Videsh Ltd has 20 a per cent stake, began producing oil and gas earlier this month. S&P UPGRADES LONG-TERM RATING OF INDIA'S RELIANCE NOV 24, 2005 MUMBAI - International credit rating agency Standard & Poor's on Wednesday upgraded its long-term foreign and local currency ratings for India's largest private sector company Reliance Industries Ltd (BSE:600325) to 'BBB' from 'BB+' with a stable outlook. The upgrade in the ratings took into account Reliance's competitive position in refining and petrochemicals, its divestment of capital-intensive non-core telecom and power businesses and an overall moderate financial profile, S&P said in a statement. INDIA'S ONGC INKS PACT FOR SALE OF GAS TO TORRENT POWER NOV 25, 2005 AHMEDABAD - Oil and Natural Gas Corporation (ONGC) has signed a gas purchase agreement with Torrent Power wherein Torrent will buy gas for its Surat-based plant, ONCG chairman Subhir Raha said here on Thursday. ONGC will sell gas to Torrent's 1000 MW plant at the rate of us $4.6 per Million British Thermal Unit (MBTU), Raha told reporters. INDIA, TURKEY SIGN MOU ON OIL, GAS EXPLORATION, PRODUCTION NOV 25, 2005 NEW DELHI - India and Turkey on Thursday signed a Memorandum of Understanding (MoU) which will examine the possibility of exploration and production initiatives between the two countries and also permit Turkish companies to bid for New Exploration Licensing Policy (NELP) rounds in India. The MoU was signed between the Minister for Petroleum and Natural Gas Mani Shankar Aiyar and Turkish Minister for Energy and Natural Resource Mehmet Hilim Guler. ONGC CHAIRMAN RULES OUT IMMEDIATE MERGER OF ONGC AND MRPL NOV 25, 2005 AHMEDABAD - ONGC (BSE:ONGV5) chairman Subir Raha on Thursday ruled out any immediate merger between ONGC and Mangalore Refinery and Petrochemicals Limited (BSE:500109) and said that it (MRPL) was better off as an independent business entity. "Since Hindustan Petroleum Corporation Limited (HPCL) (BSE:500104) still holds 17 per cent stake in MRPL we do not see a immediate merger," Raha, who was in town for the 'Confluence 2007' at Indian Institute of Management here told mediapersons. INDIA KEEN TO RE-BUILD IRAQ'S PETROLEUM INDUSTRY NOV 25, 2005 NEW DELHI - India on Thursday said it was keen on re-building Iraq's petro industry which is in shambles and would seek Turkey's help in this connection. "Iraq is a country with which India had special ties. Their petro industry is in shambles and they will need much to stand up on their feet. We need to make significant investment to enable Iraq reach its production capacity which the country had in nineties," Additional Secretary Ministry of Petroleum and Natural Gas Talmiz Ahmad told reporters here. INDIA READIES 6 DRAFT MOUS ON ENERGY TO BE SIGNED WITH JAPAN NOV 25, 2005

NEW DELHI - India is considering five to six draft Memorandums of Understanding (MoUs) to be signed with Japan in the oil and natural gas sector possibly by January next, a top official of the Ministry of Petroleum and Natural Gas said. Of these drafts the major one pertains to joint exploration and production of oil and natural gas. The second one is on strategic storage, followed by energy conservation, research and development in the hydrogen sector and synthetic hydrates. RUSSIA KEEN ON IRAN-PAKISTAN-INDIA GAS PIPELINE NOV 28, 2005 NEW DELHI - US reservations of engaging with Iran notwithstanding, Russia is keen on participating in the over US$7 billion Iran-Pakistan-India gas pipeline project and sharing the risks involved in the "peace project". Russian firm Gazprom wants to partner in construction, operation and maintenance of the 2,100-km pipeline that will transport natural gas from the gigantic South Pars field in Persian Gulf to Pakistan and India. INDIA, KOREA SIGN MOU IN HYDROCARBON SECTOR NOV 28, 2005 NEW DELHI - India and Korea on Friday signed six MoUs for cooperation in the hydrocarbon sector. These include an umbrella agreement on hydrocarbon cooperation between the two countries and an MoU on strategic underground petroleum storage facility, according to an official release. RUSSIA OFFERS TO INCREASE OIL EXPORTS TO ASIA NOV 28, 2005 NEW DELHI - Russia, world's second largest oil producer, on Friday offered to increase crude oil exports to Asia for ensuring energy security and reduce risks for the region. Speaking at the Asian Oil Ministers Round Table, Russian Industry and Energy Minister Viktor B Khristenko said Russia is prepared to assist in the task of ensuring energy security and hence reduce risks (by) increasing exports, diversify the commodity structure and increase the volume of higher- processed commodities. INDIA'S RIL TO EXECUTE US $262 MLN UNDERGROUND LIGNITE PROJECT NOV 28, 2005 NEW DELHI - Hoping to get a major block from the government, Mukesh Ambani-led Reliance Industries Ltd (RIL) is all set to execute a pilot Underground Lignite Gasification (ULG) project that may entail an investment of up to Rs 12 billion (US$262.6 million) at Baspa in Rajasthan. "RIL has sought the required go-ahead for a pilot ULG project in Rajasthan. Further consideration of a bigger project would depend on the merit of the execution of the pilot project," official sources said. INDIA TO STEP UP EFFORTS TO FIND NEW OIL AND GAS FIELDS NOV 29, 2005 NEW DELHI - India will step up efforts to find new oil and gas fields as the country's largest oil producer Oil and Natural Gas Corp (BSE:ONGV5) expects output from its existing fields to drop sharply in next few years. "ONGC has done a heroic job of maintaining pleatue production from its ageing fields. (But) there is an apprehension that there will be a natural steep decline in production," Petroleum Minister Mani Shankar Aiyar said at the India Economic Summit here on Monday. PAKISTAN RAISES GAS DEMAND TO CORNER CAPACITY ON ASIAN PIPELINE NOV 30, 2005 NEW DELHI - Pakistan has raised its requirement for natural gas from Iran to block for itself the gas volume in the proposed US $7-billion Iran-Pakistan-India pipeline. During the first

meeting of the Joint Working Group, Pakistan had indicated its demand at 10-12 million standard cubic metres per day in 2010-11, building up to more than 50 mmscmd in 2015. Later it raised its initial demand to 30 mmscmd in 2010 and ramped up the final requirement to 60 mmscmd in 2013-14. RELIANCE INDUSTRIES TO RESTART JAMNAGAR REFINERY NEXT WEEK NOV 30, 2005 NEW DELHI - Reliance Industries Ltd (NSI:RELIANCE), India's largest private sector refiner, will restart operations at its Jamnagar refinery LPG-making unit next week, company Executive Director Nikhil Meswani said on Tuesday. The unit was to restart on November 26 after a 8-week maintenance shutdown which caused shortage of domestic cooking gas (LPG) in the country. SINGH TO WORK FOR RETAIL FDI, CLEANSE POWER SECTOR; 10% GROWTH NOV 30, 2005 NEW DELHI - Setting the bar high for 10 per cent growth, Prime Minister Manmohan Singh on Tuesday promised to explore foreign direct investment (FDI) in retail, set right problems in the power sector and work for a flexible labour market. "We will try for a consensus on making labour markets more flexible," he said adding he would explore how to harness FDI in retail to suit the country's needs. GLOBAL RENEWABLE ENERGY MAJOR IBERDROLA EYES INDIA NOV 30, 2005 NEW DELHI - Spanish wind energy generation firm Iberdrola said it was looking for strategic partners to enter the sector in India. "We have a goal to achieve 8000 MW energy production till 2008 and, therefore, we are exploring new markets in Asia," company International Relations Manager Marcos Lopez-Brea said on the sidelines of the IndoSpanish Investment and Business Cooperation Forum here. INDIAN GOVT RULES OUT HIVING OFF OVL FROM ONGC DEC 2, 2005 NEW DELHI - The government on Thursday ruled out hiving off ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corporation (BSE:ONGV5), from the parent company. When asked whether the goverment was planning to take away OVL from ONGC, Petroleum Minister Mani Shankar Aiyar replied in the negative. OIL INDIA, IOC INK PRODUCTION SHARING CONTRACT WITH LIBYA'S NOC DEC 5, 2005 NEW DELHI - Oil India Limited (OIL) and Indian Oil Consortium have signed a productionsharing contract with the National Oil Company (NOC) of Libya at Tripoli. The agreement was signed on Saturday by R K Dutta, CMD on behalf of OIL and Badri, Chairman of NOC, an official release said on Sunday. INDIAN COMPANY BAGS GLOBAL ENERGY INDUSTRY AWARD DEC 5, 2005 NEW DELHI - State-owned (India) GAIL Ltd (BSE:532155) has won the prestigious Platts Global Industry Leadership Award 2005 in New York. The award was presented to GAIL "in recognition of its commitment, continous good work and collective efforts over a period of two decades for the hydrocarbon industry at global level," said the company in a press release. INDIAN PM TO SIGN FOUR AGREEMENTS WITH RUSSIA DEC 5, 2005

NEW DELHI - India would focus on developing a long-standing energy partnership with Russia and sign four key agreements on space and defence cooperation during Prime Minister Manmohan Singh's three-day visit to Moscow beginning Sunday. While India has already acquired a major stake in the Sakhalin-I oil and gas project by investing US$2.7 billion, it is also looking at participating in Sakhalin-III and bidding for exploration blocks in the Siberian region. DOOSAN HEAVY SEEKS LARGE DEVELOPMENT PROJECT IN INDIA DEC 5, 2005 SEOUL - Doosan Heavy Industries & Construction Co. is seeking to clinch a massive development project in India to boost its presence in one of the world's fastest-growing economies, company officials said Monday. The South Korean manufacturer of powergeneration equipment is stepping up efforts to win a fresh water facility development project and is working to pick out resourceful employees through its subsidiary set up near New Delhi last month, according to company officials. INDIA WILLING TO CONSIDER CONSTRUCTION OF REACTORS BY RUSSIA DEC 6, 2005 MOSCOW - Following the success of the Kudankulam project in Tamil Nadu, Prime Minister on Monday conveyed New Delhi's willingness to consider construction of additional nuclear reactors by Russia in view of India's growing energy demand. "The Prime Minister conveyed India's willingness to consider positively construction of additional reactors by Russia in view of our growing energy needs," External Affairs Ministry Spokesman Navtej Sarna told reporters after the meeting Singh had with Russia's Energy and Industry Minister Viktor Khristenko. INDIA'S SUZLON SECURES CONTRACTS FROM CHINESE, S KOREAN COS DEC 6, 2005 MUMBAI - Asia's largest integrated wind power company, Suzlon Energy Limited has secured a contract from China-based Guohua Xilinguole New Energy & Source Co Ltd for a wind farm project. Suzlon informed the National Stock Exchange that the 'Guohua Inner Mongolia Huitengliang' wind farm project comprises 40 wind turbine generators (WTGs) of 1.25 MW each, totalling 50 MW. INDIA'S SUZLON BAGS ORDERS WORTH US$49 MLN FROM CHINA, S. KOREA DEC 8, 2005 MUMBAI - Wind energy company Suzlon Energy (NSI:SUZLON) on Tuesday said it has bagged orders worth Rs 2280 million (US$49.4 million) in China and South Korea. Suzlon has received order worth Rs 1720 million for Chinese the Guohua Inner Mongolia Hultengliang wind farm project, a release said here on Tuesday. INDIA'S NTPC TO TAKE LEGAL ACTION AGAINST RELIANCE DEC 9, 2005 MUMBAI - NTPC Ltd (BSE:532555) on Thursday said it is considering "legal recourse" against petrochemicals major Reliance Industries (NSI:RELIANCE) over the gas sale and purchase agreement for its Kawas and Jhanore Gandhar power plants in Gujarat. "The final offer of RIL was unconditionally accepted by the company and accordingly, it is a legally binding and enforceable contract. Since RIL has sought changes in important terms, we are now considering taking legal recourse," NTPC informed the Bombay Stock Exchange. INDIAN OIL CORP OFFERS US$1.34-1.44 BLN FOR OIL ASSETS DEC 12, 2005

NEW DELHI - India's State refiner Indian Oil Corp (IOC) has made a US$1.34-1.44 billion bid to take over Canadian oil firm Niko Resources' Indian assets, including a 10 per cent stake in Reliance Industries' gas-rich D6 block in Bay of Bengal. However, Niko Resources wants a 20-30 per cent premium, sources close to the deal said. INDIA'S GREAT EASTERN ENERGY TO LIST ON LONDON EXCHANGE DEC 12, 2005 NEW DELHI - Great Eastern Energy Corp Ltd (GEECL) will list at Alternative Investment Market (AIM), a market of the London Stock Exchange, through its maiden global depositary receipt (GDR) issue of 10.9 million pounds sterling (US$19.18 million). "Admission (to AIM) is expected to take place on December 13 and will be by way of a placing of global depositary receipts (GDRs), each representing five ordinary shares in the company with institutional investors," GEECL said in a press release here. INDIAN COURT OKAYS RELIANCE DEMERGER SCHEME DEC 12, 2005 MUMBAI - The Bombay High Court on Friday approved the Reliance Industries Limited's (BSE:600325) demerger scheme, which sought to make changes in the company's shareholding pattern as part of a settlement between Ambani siblings, Mukesh and Anil. RIL, the country's biggest private enterprise, had filed a petition before the court seeking its sanction for demerger of the company's power, telecom and energy businesses. GAIL INDIA TIES UP WITH NORWEGIAN CO FOR NGH TECH DEC 12, 2005 MUMBAI - Gail India Ltd (BSE:532155) has tied-up with Norway-based Natural Gas Hydrate (NGH) AS for developing and commercialising synthetic natural gas hydrate storage and transportation technology. It has entered into a memorandum of cooperation (MoC) with the Norwegian firm, the state-owned company on Thursday informed the stock exchanges. TRI-NATION GAS PIPELINE ON TRACK: PETROMIN OFFICIAL DEC 12, 2005 NEW DELHI - India on Thursday asserted that the Iran-Pakistan-India gas pipeline project was on track and first gas from the over US$7-billion project will start flowing from 2010end. A senior Petroleum Ministry official said the three countries are likely to agree on a project structure by February 2006 and a tripartite agreement was in sight by middle of next year. INDIA'S OVL COMPLETES WORK ON 741 KM OIL PIPELINE IN SUDAN DEC 13, 2005 NEW DELHI - ONGC Videsh Ltd, India's largest multinational firm, has completed work on the 741-km oil product pipeline in Sudan. The multi-production pipeline was dedicated to the people of Sudan by Sudanese First Vice President Salva Kiir Mayardit in the presence of Energy Minister Awad Al Jazz on December 10 at Khartoum, a company press release said here. INDIA'S AIYAR TO PRESENT OPTIONS ON RAISING LPG & KEROSENE PRICE DEC 14, 2005 NEW DELHI - Petroleum Minister Mani Shankar Aiyar will Friday present to a high-powered panel headed by Prime Minister Manmohan Singh, options, including raising price of LPG and kerosene for the rich, to bridge the vast gap between the cost of fuel and their current retail price. Aiyar will present to the Energy Coordination Committee, various options of bridging the Rs 190 (US$4.10) per cylinder deficit in LPG selling price and its cost of

production, and ways to narrow the gap between selling price of kerosene and diesel that has been the main cause of adulteration. INDIA'S GREAT EASTERN ENERGY RAISES US$19.3 MLN VIA GDR ISSUE DEC 14, 2005 NEW DELHI - Great Eastern Energy Corporation has raised 10.9 million pounds (US$19.3 million) through a Global Depositary Receipts [GDR] issue, which was admitted in London Stock Exchange's special segment for growing companies Alternate Investment Market (AIM) on Tuesday. "We are delighted to welcome Great Eastern Energy Corporation to AIM, the world's most successful market for growing companies. Great Eastern's admission on AIM, underlines that growing companies from India can gain exposure to London's institutional investment and to world-leading regulatory and corporate governance standards" LSE's Director of market services and Head of AIM Martin Graham said in a statement. INDIA-CHINA ENERGY PARTNERSHIPS IN THE PIPELINE: MINISTER DEC 16, 2005 NEW DELHI - Petroleum Minister Mani Shankar Aiyar will visit to China next month as part cooperation plans with China, in the hydrocarbons sector. India and China, and their oil and gas firms are likely to sign a slew of MoUs for collaboration in the hydrocarbon sector during the visit. INDIA, CANADA TO COOPERATE IN ENVIRONMENTAL PROJECTS DEC 16, 2005 NEW DELHI - India and Canada are looking to enhance environmental cooperation and work towards developing clean energy fields. The visiting Canada-India Business Council (CIBC) along with the Canadian government CIBC Executive Director Kam Rathee said on Thursday at a CII organised event. INDIA'S OIL REFINING CAPACITY TO RISE 9 PCT NEXT YEAR: MINISTER DEC 16, 2005 NEW DELHI - India's oil refining capacity will rise by about 9 per cent to 138 million tonnes per annum next year on the back of expansion in capacity of existing refineries, Petroleum Minister Mani Shankar Aiyar said on Thursday. "The refining capacity of the country, which was 127 million tonnes as on April 1, 2005 is expected to increase to 138 million tonnes by next year due to expansion in capacity of existing refineries and setting up of a new refineries," he said in a written reply to a query in the Lok Sabha. FITCH ASSIGNS 'BB+' RATING TO INDIA'S RELIANCE INDUSTRIES DEC 19, 2005 NEW DELHI - Global ratings agency Fitch on Thursday assigned a "BB+" rating to India's Reliance Industries (RIL) (NSI:RELIANCE) with a "stable" outlook. RIL's foreign currency rating is currently the same as that of India's sovereign rating. RELIANCE WINS CONTRACT TO SUPPLY FUEL AT 12 INDIAN AIRPORTS DEC 19, 2005 NEW DELHI - Reliance Industries Ltd (NSI:RELIANCE), India's sole private sector oil refiner, has bagged contract to supply aviation turbine fuel (jet fuel) at 12 non-metro airports. Reliance walked away with Airport Authority of India's tender for supply of AFT at 12 airports including Varanasi, Lucknow, Amritsar, Jaipur, Udaipur, Ahmedabad, Hyderabad, Guwahati, Ranchi, Baroda, Bhubaneshwar and Nagpur, in absence of no competing bids from the incumbent public sector firms.

OIL INDIA GETS APPROVAL FOR JOINT ACQUISITION AND EXPLORATION DEC 19, 2005 NEW DELHI - India's government has given Oil India Limited (OIL) approval to form a project specific Special Purpose Vehicle with Indian Oil Corporation (IOC) for overseas projects including acquisition and exploration. Finance Minister, P Chidambaram said Friday that the Cabinet on Economic Affairs (CCEA) had approved the venture with IOC and in the event IOC was not interested, with any other navratna downstream oil public sector units (PSU) to undertake overseas projects. INDIAN CABINET OKS OVL PROPOSAL TO BUY STAKE IN BRAZIL OILFIELD DEC 19, 2005 NEW DELHI - The Cabinet Committee on Economic Affairs (CCEA) has approved ONGC Videsh Ltd's proposal to invest US$820 million for acquiring US energy giant ExxonMobil's interests in an oil field located off the Brazilian coast. Finance Minister P Chidambaram said the CCEA had authorised "OVL to invest, in the event of its being the successful bidder, up to US$820 million in the Project Sugarloaf." PAKISTAN TO DECIDE IRAN-PAKISTAN-INDIA PIPELINE CONSULANT SOON DEC 19, 2005 NEW DELHI - Pakistan will appoint a consultant to suggest a project structure and legal and financial arrangements for the over US$7 billion Iran-Pakistan-India pipeline within the next two weeks. "We will be appointing the consultant in the next two weeks. The process is on," Pakistan Petroleum Secretary Ahmad Waqar said. XPRO INDIA TO FORAY INTO POWER GENERATION DEC 19, 2005 MUMBAI - Birla Group company Xpro India Ltd (BSE:590013) on Friday said it will foray into power generation through conventional and renewable sources including wind power. The company informed the Bombay Stock Exchange that it plans to obtain the shareholders' approval for the generation, accumulation, utilisation, transmission, distribution and sale of power. INDIAN GOVT REJECTS ONGC'S PROPOSAL TO ACQUIRE NIGERIAN FIELD DEC 19, 2005 NEW DELHI - In a major loss of face to state-run Oil and Natural Gas Corp (ONGC) (NSE:ONGC), the Cabinet Committee on Economic Affairs (CCEA) has shot down its proposal to acquire a 45 per cent stake in a Nigerian oil and gas field for close to US$2 billion, saying the deal was "too risky." Government sources said a CCEA meeting, chaired by Prime Minister Manmohan Singh, last week decided that ONGC Videsh Ltd, the overseas arm of ONGC, cannot be allowed to buy South Atlantic Petroleum's 45 per cent stake in the Akpo oil and gas field. INDIA'S RELIANCE AWARDS HYDROGEN PLANT CONTRACT TO LINDE DEC 20, 2005 MUMBAI - Mukesh Ambani-owned Reliance Industries Ltd (BSE:600325) on Monday awarded a Rs 7.90 billion (US$174.2 million) contract to Germany-based Linde AG for the supply of five hydrogen units to its Jamnagar refinery. The first of the new hydrogen units is scheduled to be on stream in the first quarter of 2007, the German company, which is involved in industrial plants, announced on its website. INDIA'S GARWARE SECURES US$5 MLN BRITISH GAS CONTRACT DEC 21, 2005

MUMBAI - Garware Shipping Corporation Ltd has secured a Rs 230 million (US$5 million) contract from BG Exploration and Production India Ltd (British Gas) for its Platform Supply Vessel (PSV) 'M V Everest'. Under the contract, Garware Shipping will supply M V Everest, the vessel it had acquired from Norway last week, to British Gas. INDIAN OIL CORP TO INVEST IN CHINA PETROCHEMICAL COMPLEX DEC 21, 2005 BEIJING - The Indian Oil Corporation (IOC) (BSE:530965) will join hands with Sinopec in building a refinery and petrochemical complex north of Hangzhou Bay in Shanghai, with a total investment of 4 billion yuan (US$495 million). The complex will include a refinery with an annual throughput of 10 million tons, and an ethylene cracker device with an annual throughput of one million tons. It is hoped that the complex would be put into operation by 2009. TRADING IN INDIAN OIL COMPANY SHARES SUSPENDED IN SRI LANKA DEC 21, 2005 COLOMBO - Trading in shares of the Indian Oil company's Sri Lanka unit was suspended on Tuesday after a report that it would shut down in three months unless it was paid US $71 million owed by the Colombo government. The Colombo Stock Exchange ordered the halt in the trading of Lanka Indian Oil Company shares after a newspaper report triggered alarm bells among investors and caused fears that the share price would tumble. INDIA'S RELIANCE INDUSTRIES FINDS OIL IN KRISHNA GODAVARI BASIN DEC 21, 2005 NEW DELHI - Reliance Industries Ltd (NSI:RELIANCE), India's largest private firm, has struck oil reserves in Krishna Godavri basin in Bay of Bengal, the country's regulator said on Tuesday. The discovery has been made in a block close to Reliance's gas rich D6 block in the KG basin. INDIA'S RELIANCE BEGINS GAS EXPLORATION WORK IN BHEENMAL DEC 21, 2005 JAIPUR - Reliance Industries Ltd (NSI:RELIANCE), India's largest private sector firm, has started gas exploration work at Bheenmal in Rajasthan, State Petroleum Minister L Dave said here on Tuesday. RIL, with an initial investment of Rs 750 million (US$16.6 million), has so far drilled 180 metres since December 15, he said adding about 800 meters of drilling would be completed in the next fortnight. INDIAN OIL CORP RAISES US $300 MLN FOREIGN CURRENCY LOAN DEC 22, 2005 NEW DELHI - State-run refiner Indian Oil Corp (IOC) on Wednesday said it has raised a US$300 million foreign currency loan to finance its capital expenditure requirements. IOC director (finance) S V Narasimhan signed the agreement for the US$300 million syndicated term loan facility at Singapore, a company press release said here. GUJARAT CHASED ENERGY DREAM IN 2005 DEC 23, 2005 AHMEDABAD - The energy sector turned out to be Gujarat's trump card during 2005 -- a period that was marked by discovery of huge quantities of gas and oil reserves, electrification of all 18,000 villages in the state and steady progress in laying the 2,200 km long gas-grid. The discovery of oil in Anand district in February spelt the shape of things to come in Gujarat and for state-run Gujarat State Petroleum Corporation Ltd (GSPCL).

INDIAN OIL PSUS REVENUE LOSS TO DOUBLE THIS FYL : MINISTER DEC 23, 2005 NEW DELHI - Revenue loss suffered by public sector oil retailing firms on sale of petrol, diesel, LPG and kerosene below their production cost will almost double to Rs 381.54 billion (US$8.4 billion) this fiscal year, the Lok Sabha was informed Thursday. "The estimated under-recoveries (on sale of fuel) was Rs 92.74 billion for 2003-04 and Rs 201.46 billion for 2004-05, which is projected to rise to Rs 381.54 billion during the current year," Petroleum Minister Mani Shankar Aiyar said in reply to a question. INDIA'S RELIANCE INDUSTRIES FIXES RECORD DATE FOR DEMERGER DEC 23, 2005 MUMBAI - The country's largest private sector company Reliance Industries Ltd on Thursday fixed January 25, 2006, as the record date for the demerger scheme. The record date has been fixed for the purpose of reckoning the names of the members of the company, who shall be entitled to receive shares of each of the resulting companies, the Mukesh Ambaniowned company informed the stock exchanges. BOMBAY HIGH COURT ADJOURNS NATIONAL THERMAL POWER PETETION DEC 23, 2005 MUMBAI - The Bombay High Court on Thursday deferred till Friday the petition filed by the state-owned National Thermal Power Corporation (NTPC) (BSE:532555) seeking an ad interim relief against Reliance Industries Ltd for not signing the Gas Sales and Purchase Agreement and praying for execution of the contract as per the bid. The hearing was adjourned by Justice S F Vajifdar as both sides sought time to argue the matter. INDIA'S GREAT EASTERN ENERGY CORP RAISES US$20 MLN VIA GDR DEC 23, 2005 KOLKATA - Great Eastern Energy Corporation Ltd (GEECL), engaged in exploration, distribution and marketing of coalbed methane, has raised US $20 million through Global Depositary Receipts [GDR] issue to part finance its project for drilling of CBM wells at the Raniganj coalfields. Company CMD Y K Modi on Thursday said the company has listed its GDR issue at Alternative Investment Market [AIM] of the London Stock Exchange and raised about US$20 million to fund the drilling project of the first 20 wells out of the planned 100 CBM wells at Raniganj. GAIL INDIA TO INVEST OVER US$2.5 BLN IN GAS CRACKER PROJECTS DEC 23, 2005 NEW DELHI - State-owned gas utility GAIL (India) Ltd (BSE:532155) plans to invest over Rs 116 billion (US$2.56 billion) in various gas cracker projects in the country, the lower house of the parliament Lok Sabha was informed on Thursday. GAIL has proposed an investment of Rs 54.60 billion in Assam Gas Cracker project near Dibrugarh (Assam) and hopes to complete it in 60 months from the date of approval of the Government, Petroleum Minister Mani Shankar Aiyar said in a written reply to a question. INDIA'S LARGEST PRIVATE CO RIL GETS GO AHEAD FOR DEMERGER SCHEME DEC 23, 2005 MUMBAI - The demerger scheme of the country's largest private company Reliance Industries Limited (RIL) (NSI:RELIANCE) became effective on Wednesday, with the Mukesh Ambani-owned firm filing the certified copy of the Bombay High Court order with the Registrar of Companies. The High Court, in its order on December 9, sanctioned the scheme of arrangement among the group companies, RIL informed the stock exchanges.

MITSUI CONSORTIUM WINS 25-YEAR PETRONET LNG TANKER CONTRACT DEC 29, 2005 MUMBAI - A consortium led by Japan's Mitsui OSK Lines has won Petronet LNG Ltd's contract to carry liquified natural gas from Qatar to Gujarat for 25 years. Mitsui partnered with fellow companies NYK Lines and K Line, and with Shipping Corporation of India to outbid a consortium led by Belgian EXMAR in a price re-bid. GAIL STARTS DRILLING IN OFFSHORE GAS BLOCK IN BAY OF BENGAL DEC 29, 2005 MUMBAI - State-run Gail India Ltd Wednesday said it has started drilling activity in a highly prospective gas block in offshore Bay of Bengal along with its consortium partner Russian gas giant Gazprom. The company's drilling rig "Ekha" has reached the drill site for the first well in Block-26 and the drilling programme has been started, Gail informed the Bombay Stock Exchange. INDIA TAMES INFLATION TO BELOW 5% AMID HIGH OIL PRICES DEC 29, 2005 NEW DELHI - Two rounds of domestic fuel price hike forced by unprecedented rise in global oil prices and a sudden spurt in onion prices brought tears in the eyes of the common man in 2005, but the Indian government and Reserve Bank of India (RBI) rejoiced after taming the beast called inflation to below 5 per cent. Though homemakers might not have complained of higher prices for essential items like vegetables, fruits and cereals, the sudden spurt in onion prices to over Rs 25 per kg after the monsoon angered them. INDONESIA AUSTRALIA'S STRAITS BOOSTS RESOURCE AT INDONESIAN COAL MINE SEPT 2, 2005 PERTH - Diversified miner Straits Resources Ltd (ASX:SRL) has bumped up the size of the resource at its coal mine in Indonesia and was now considering a higher production rate next year. Straits increased the resource at Sebuku to 24.9 million tonnes of coal, up from 18 million tonnes at the end of last year. CHINA HUADIAN CORP TO BUILD US$2.1 BLN POWER PLANT IN INDONESIA SEPT 5, 2005 JAKARTA - The China Huadian Corporation and other Chinese investors have pledged to soon build a 2,400 megawatt power generating plant in Indonesia with an investment of US$2.1 billion, Bisnis Indonesia reported Monday. China Huadian President Kuang Dan, Governor of China Development Bank Chen Li Ruo Gu Da and chairman of China Petroleum and Chemical Corp (Sinopec) Chen Tong Hai made the pledge at a meeting with Vice President Jusuf Kalla in Beijing last week. INDONESIA'S MEDCO ENERGI TO RAMP UP OIL EXPLORATION SEPT 5, 2005 JAKARTA - Energy company PT Medco Energi Internasional (JSX:MEDC) said it will use its oil windfall profit to boost oil exploration in the country and abroad. Medco will increase investment by US$120 million in 2006 including for the drilling of 40 new oil wells, Medco chief executive Hilmy Panigoro said. INDONESIAN PM SAYS OIL PRICE RISE COULD HELP AILING RUPIAH SEPT 5, 2005 JAKARTA - Vice President Yusuf Kalla said Friday raising fuel oil prices again could result in the strengthening of the rupiah against the US dollar because it would enable the

government to reduce its increasing fuel oil subsidy burden. "I believe we can then reduce the government's subsidy burden. We would then be saving much more US dollars and rupiah reserves so that the battered rupiah can strengthen again," he told journalists here. INDON BOARD ASKED TO SET QUALITY STANDARDS FOR BIO-DIESEL SEPT 6, 2005 JAKARTA - Research and Technology Minister of Indonesia Kusmayanto Kadiman said he has asked the Oil and Gas Executive Board (BP Migas) to determine the quality standards for bio-diesel oil to be developed as a substitute for oil fuel. The urgency of mass production of bio-diesel comes following the soaring oil prices creating fuel crisis with fuel prices skyrocketing in the country. INDONESIAN ENERGY BODY TO BUILD 22 COAL BRIQUETTE FACTORIES SEPT 6, 2005 JAKARTA - The association of oil and gas entrepreneurs (Hiswanamigas) said it will build 22 coal briquette factories with an annual capacity of 220,000 tons. Association chairman M. Nur Adib said the project is to forestall the impact of the government's decision to abolish fuel subsidy next year. PERTAMINA AIMS TO LINK WITH EXXONMOBIL IN CEPU BLOCK OPERATION SEPT 7, 2005 JAKARTA - State-owned oil and gas company Pertamina said it hopes to form a joint operating body with ExxonMobil to operate the Cepu block in East Java . "We hope to have at least a joint operating body but with the majority voting right of 55 per cent in our hands," President Widya Purnama said after a meeting with the Commission VII of the House of Representatives yesterday. PERTAMINA WELCOMES FOREIGN COMPETITION IN INDONESIA SEPT 7, 2005 JAKARTA - President of state-owned oil and gas company Pertamina, Widya Purnama, said the company welcomes foreign competitors to operate in the downstream sector of Indonesia's oil industry. If Shell, Conoco, or Chevron build oil refineries in the country Pertamina will not find it difficult to meet the domestic oil fuel requirement, Widya told legislators in a meeting. INDONESIAN GOVT EYES 30-35% RISE IN OIL FUEL PRICE SEPT 8, 2005 JAKARTA - The cabinet's economics team proposed to President Susilo Bambang Yudhoyono a 30 per cent-35 per cent increase in the price of oil fuels for domestic consumption, an unidentified official was quoted by a local daily as saying. Susilo has announced the government will raise the fuel prices for domestic consumption next month. INDONESIA'S MEDCO DRILLING NINE NEW OIL WELLS SEPT 8, 2005 JAKARTA - Oil company Medco Energi (JSX:MEDC) is drilling 52 development and nine new oil wells, and has increased the company's production by 6,000 to 56,000 barrels per day, a Medco Energy executive said here on Wednesday. Pudjo Suwarno, general manager of PT Medco Energi, said the company has invested US$40 million in the drilling of nine new oil wells. TEN OIL FIELDS EXPECTED TO START PRODUCING IN INDONESIA IN '06 SEPT 9, 2005 JAKARTA - Oil and Gas Executive Board (BP Migas) predicted that 10 new oil fields will start

operation in 2006 turning out 25,000 barrels of crude oil per day. The additional production will offset a decline in output from old wells, BP Migas chief Kardaya said. INDONESIA NOT READY FOR LIBERALISATION OF ENERGY SECTOR: EXPERT SEPT 9, 2005 JAKARTA - Noted economic observer Iman Sugema said the liberalization of the oil/gas sector will bring about a negative impact on Indonesia. "Indonesia is not yet ready to face the liberalization of its oil/gas sector," he said in a seminar here Wednesday. PERTAMINA TO RELEASE FRESH EVIDENCE OF OIL SMUGGLING RACKET SEPT 12, 2005 JAKARTA - Pertamina will soon supply the police with fresh evidence in their investigation into the smuggling of 6,000 tons of crude oil from the Lawe-lawe oil terminal in East Kalimantan Province, the state oil and gas company's spokesman, M.Harun, said here Sunday. "Tomorrow (Monday) morning, Pertamina's board of directors will submit fresh data and evidence to the police headquarters in Cilangkap here. We want the police to find and arrest the mastermind of the smuggling case," he said. PERTAMINA RIFE WITH CORRUPTION, SAYS MPM CHAIRMAN SEPT 12, 2005 JAKARTA - The government has been urged to overcome the inefficiency at state oil & gas company Pertamina, which last year was estimated to have cost the company Rp 50-75 trillion (around US$5-US $7.5 billion). Chairman of the Civil Professional Community (MPM) Ismed Hasan Putro said here on Sunday the inefficiency prevailed in the import of crude oil, processing and distribution of fuel oil. OIL SUBSIDY TO BE REDUCED IN REVISED INDONESIAN BUDGET: MINISTER SEPT 12, 2005 JAKARTA - Coordinating Minister for Economic Affairs Aburizal Bakrie said on Friday the oil subsidy in the revised 2005 state budget will be lower than projected because of an increase in global oil prices. "I think the oil subsidy will be lower than projected due to an increase in global oil prices," he said. INDONESIA'S TAMBANG BATU TO BUILD 2 COAL-FIRED POWER PLANTS SEPT 12, 2005 JAKARTA - State-owned coal mining company PT Tambang Batu Bara Bukit sam (PT BA) said it will continue its ambition to expand operations in the power generating industry. PT BA will have two more coal fired power plants built in coal mining areas in South Sumatra, its President Ismet Harmaini said. YUDHOYONO TO DECIDE ON CEPU OIL BLOCK ALLOCATION SEPT 13, 2005 JAKARTA - President Susilo Bambang Yudhoyono has decided to take over the authority to allocate a 10 per cent stake of the Cepu oil block, which lies in the border area of East Java and Central Java, as the stake allocation has become a bone of contention among neighboring district administrations in two provinces. The Bisnis Indonesia daily reported the decision was made by the president to prevent dispute between the district administrations, State Secretary Yusril Ihza Mahendra said. IGAS UTAMA LAUNCHES LEGAL ACTION AGAINST PERTAMINA SEPT 13, 2005 JAKARTA - Gas distribution company PT Igas Utama has filed a legal suit against state oil and gas company Pertamina for cutting gas supply to the company unilaterally Igas

president Irene Ratnawati Rusli said here Monday her company had suffered a financial loss of US$1.2 million due to the gas supply stoppage. PERTAMINA LINKS WITH POLICE IN FUEL MISUSE PROBE SEPT 13, 2005 JAKARTA - The police and state-owned oil company Pertamina have agreed to form a task force to tackle all kinds of criminal misuse of fuel oil. The agreement was reached at a coordinative meeting between Pertamina and the National Police Headquarters here Monday. NEW INDONESIAN PETROCHEMICAL PLANT COMES ON STREAM NEXT YR SEPT 13, 2005 JAKARTA - Indonesia hopes to save at least US$900 million a year in imports of petrochemical products after PT Trans Pacific Petrochemical Indotama (TPPI) in Tuban comes on stream as scheduled in June 2006. TPPI, now controlled by the government, is expected to earn US$600 million a year from exports of its aromatic products, Industry Minister Andung Nitimiharja told a local daily. PERTAMINA TOLD TO MAXIMIZE DOMESTIC CRUDE PROCESSING SEPT 13, 2005 JAKARTA - Vice President Jusuf Kalla has instructed state oil and gas company PT Pertamina to maximize the use of domestically-produced crude oil by its refineries, especially those in Cilacap and Balikpapan, a cabinet minister said. Disclosing the Vice Preident's instruction to the press after a meeting with Kalla, Energy and Mineral Resources Minister Purnomo Yusgiantoro said here Thursday this meant Indonesia would have to reduce its oil exports. INDONESIAN GOV'T TO DRAW UP ROAD MAP ON FUEL OIL PRICE HIKE SEPT 14, 2005 JAKARTA - Vice President Yusuf Kalla has asked the energy and mineral resources ministry to draw up a road map on the fuel price hike scheme, Minister Purnomo Yusgiantoro said. Speaking to reporters after meeting Kalla here Tuesday, he said the energy and mineral resources ministry was ready to draw up such a map. PERTAMINA TONGKANG TO OPERATE TWO NEW CARGO VESSELS SEPT 14, 2005 JAKARTA - PT Pertamina Tongkang, a subsidiary of state-run oil and gas company Pertamina, will operate two more vessels for oil fuel transport. The company said the two cargo vessels are being built by state-owned shipbuilding company PT PAL Surabaya. INDONESIAN LEGISLATOR URGES GOVT TO RAISE FUEL PRICES GRADUALLY SEPT 15, 2005 JAKARTA - House of Representatives (DPR) Chairman Agung Laksono on Wednesday urged the government to increase domestic fuel oil prices gradually so that the decision would not burden the people too much or cause them to panic. "The fuel price should be raised gradually," he told reporters after receiving Yemeni Ambassador to Indonesia Ahmed Salem Al Wahisi here. INDONESIA'S PERTAMINA RAISES OIL OUTPUT TARGET SEPT 16, 2005 JAKARTA - State oil and gas company Pertamina will raise its crude oil production target to 170,318 barrels per day (bpd) in 2008 from 141,839 bpd in 2004 by speeding up the development of exploration wells and optimizing the exploitation of oil wells in the upper operational areas, a Pertamina official said. The company has also increased its natural gas production target 1.093 million cu. feet per day in 2004 to 1.5 million cu. feet per day in

2008, and its geothermal production target from 11,000 bpd in 2004 to 17,000 bpd in 2008, head of Pertamina exploration division Bambang Tjiptadi said here Thursday. INDONESIA'S PERTAMINA DENIES EXISTENCE OF FUEL OIL SHORTAGES SEPT 16, 2005 JAKARTA - State oil and gas company Pertamina chief Widya Purnama denied here Thursday there were fuel oil shortages in the country, saying what was happening was panic buying of fuel oils by the public over the government's plan to raise the commodity's price by 50 per cent on October 1. "There are no shortages. What is happening is people beginning to panic and to stand in long queues to buy fuel oils," Widya said on the sidelines of a hearing with the House of Representatives' commission on energy and mineral resources here. INDONESIA'S PERTAMINA TO EXPLORE AT 4 GAS WELL SITES SEPT 16, 2005 JAKARTA - State oil and gas company Pertamina will carry out the exploration of four gas wells in Java and Sumatra up to the end of 2005, head of Pertamina exploration division Bambang Tjiptadi disclosed here Thursday. Two of the gas wells are located in Suban block in the middle part of Sumatra and the two others are found in Randu Blatung and Kedung Tuban, both in East Java, he told reporters while attending a talk-show on national progress of oil/gas upper business. INDONESIA TO COMMISSION SIX NEW OIL FIELDS SEPT 19, 2005 JAKARTA - President Susilo Bambang Yudhoyono will officially commission the operation of six new oil fields, a local newspaper reported. The newspaper quoted Energy and Mineral Resources Minister Purnomo Yusgiantoro as saying the six oil fields will increase the country's crude oil production by at least 60,000 barrels per day. INDONESIAN GOV'T TO PAY FUEL PRICE SUBSIDY SEPT 19, 2005 JAKARTA - The Indonesian government will keep its promise to pay the fuel price subsidy though the funds allocated for that purpose in the 2005 National Budget have been used up, a cabinet member said. The provision of the fuel oil price subsidy is stipulated in a regulation so the government has to pay the subsidy, Finance Minister Jusuf Anwar said after attending the 59th anniversary of the Finance Day at Finance Ministry's building here Sunday. PERTAMINA AND EXXONMOBIL SIGN CEPU BLOCK JV CONTRACT SEPT 19, 2005 JAKARTA - State oil/gas company PT Pertamina and US oil giant ExxonMobil Corporation, through their respective sister companies, have signed Cepu Block joint venture contract. A spokesman for Pertamina, Abadi Poernomo, on Sunday said the contract was signed by Pertamina EP (Exploration and Production) Cepu and Mobil Cepu Ltd and Oil/gas regulatory agency on Saturday. INDONESIAN GOV'T RAISES ASSUMED OIL PRICE IN 2006 DRAFT BUDGET SEPT 20, 2005 JAKARTA - The government has raised the assumed crude oil price in the 2006 draft state budget from US$40 per barrel to US$50-US$55 per barrel in adjustment with developments in the international market, Finance Minister Jusuf Anwar said here Monday. "We also propose to change the assumed economic growth rate to 6-6.2 per cent, the rupiah's exchange rate to 9,500-10,000 against the US dollar, the inflation rate to 7-8 per cent, the BI certificate rate (SBI) for three months period to 8.25-10 per cent, and oil production to

1.075 million barrels per day," Jusuf said at a working meeting with the House of Representatives' Commission on financial and budgetary affairs. INDONESIAN VP WANTS FUEL OIL SUBSIDY BUDGET APPROVED SEPT 22, 2005 NUSA DUA - Vice President Jusuf Kalla said he hoped the House of Representatives will meet in plenary as soon as possible to authorize the spending of Rp89.3 trillion (around US$8.8 billion) on a fuel oil subsidy as agreed by the government and the House Budget Committee. "If the Budget Committee's decision can be endorsed by the plenary session, it will be formalized in a law and the government will adhere to it," Kalla said after opening an Asian ministerial consultation on migrant workers here Wednesday. INDEF URGES INDONESIAN GOVT TO CAP FUEL PRICE RISE AT 35% SEPT 23, 2005 JAKARTA - The Institute for Development Economics and Finance (Indef) has proposed that the increase in fuel oil prices does not surpass 35 per cent. The percentage was the tolerable limit that the poor people in Indonesia could bear, Indef Director Imam Sugema told reporters here Thursday in response to the government's plan to raise the fuel prices by at least 50 per cent from early October. INDONESIA POWER PLANS IPO NEXT YEAR SEPT 26, 2005 BANDUNG - Private electricity producer PT Indonesia Power has confirmed it will conduct an initial public offering in the first semester of next year. The president director of the subsidiary of state power firm PT PLN, Abimanyu Suyoso, said here on Sunday the IPO would be launched after a shareholders' meeting. BROAD POLITICAL SUPPORT IN INDONESIA FOR OIL PRICE HIKES SEPT 28, 2005 JAKARTA - Most of the 10 factions in the House of Representatives (DPR) on Tuesday agreed to set the amount of the fuel oil subsidy in the 2005 State Budget at Rp89.2 trillion (around US$8.7 billion) thereby indirectly sanctioning the government's plan to increase fuel oil prices. Among the factions that approved the amount were the Golkar Party faction, the Justice and Prosperous Party (PKS) faction and the National Mandate Party (PAN) faction. FOREIGN BANKS IN LINE TO HELP SELL SHARES IN INDONESIA'S PGN SEPT 28, 2005 JAKARTA - Three foreign investment banks have been short-listed as candidates to become a partner of PT Danareksa Sekuritas to sell shares of state-owned gas distributor PT Perusahaan Gas Negara (PGN), a local daily reported. PGN has named state-owned security company Danareksa as the leader in handling the sales of 7.1 per cent of its shares to raise fund to bridge a deficit in the 2005 state budget. INDONESIA'S 2006 BUDGET BASED ON US$57 PER BARREL OIL PRICE SEPT 28, 2005 JAKARTA - The Budget Working Committee of the House of Representatives (DPR) and the government agreed on Tuesday to set the oil price assumption at US$57 per barrel for the 2006 Draft State Budget, which was higher than the government's proposed US$50-55 per barrel. The House Budget Committee Chairman A Amin Said Husni said the high oil price assumption set for the next state budget was intended to anticipate the increasing world oil price trend which had reached US$60 per barrel.

OIL PRICE PROTESTS FAIL TO UNSETTLE INDONESIAN GOVT SEPT 28, 2005 PRETORIA - Indonesian Vice President Jusuf Kalla said here on Monday the government did not worry about protests staged by the people over its plan to raise domestic oil prices. "We should not worry about protests over the plan to increase domestic oil prices," he told Indonesian society here Monday night. COOL HEADS NEEDED TO SOLVE OIL CRISIS, SAYS YUDHOYONO SEPT 28, 2005 PALEMBANG - President Susilo Bambang Yudhoyono here Tuesday called on all parties in the country to refrain from blaming each other for the current fuel oil crisis because doing so would not solve the problem. "We have a lot of smart people here. Let us solve (the problem) rather than blame each other or condemn others because it will not solve the problem," the President said at the opening of a national technology exhibition.
INDONESIA'S BP MIGAS THREATENS TO END CONTRACT WITH EXXONMOBIL ON NATUNA BLOCK

SEPT 29, 2005 JAKARTA - The Agency for Oil and Gas Industry Development (BP Migas) will terminate its work contract with ExxonMobil to explore the Natuna D-Alpha block if the company fails to develop the block and to get a market commitment within the next two years, a spokesman said. "Before we extend (the contract) there must be certainty on development of the field, its usage or gas selling. Without that, why should we extend the contract?" BP Migas chief Kardaya Warnika said after a working meeting with the House of Representatives' commission on energy and mineral resources here Wednesday. OIL PRICE PROTESTS ARE OK, SAYS INDONESIAN PRESIDENT SEPT 29, 2005 JAKARTA - President Susilo Bambang Yudhoyono has said all components of the people are allowed to hold rallies in protest against the government's plan to raise domestic fuel oil prices but they should do so in a manner that will not disturb public order. "Feel free to take to the streets and express your aspirations in an orderly manner, without torching, occupying or vandalizing anything. That's democracy," he said when receiving members of the Indonesian Rectors Forum (FRI), Council of State University Rectors (MRPTNI) and the Indonesian Private University Association (APTISI) at the State Palace here on Wednesday. BANK INDONESIA DEPUTY GOVERNOR FEARS INFLATION SURGE SEPT 29, 2005 JAKARTA - Bank Indonesia Deputy Governor Miranda Goeltom predicts the country's inflation rate by the end of the year will surpass the central bank's target of nine per cent due to higher fuel oil prices. "The inflation rate will depend on the fuel oil price increase. The nine-percent rate (as projected by BI) has yet to include the impact of the fuel oil price hikes. With the fuel oil price increases, the inflation rate will be higher," she said here Wednesday. INDONESIA ESTABLISHES GAS, OIL QUOTAS FOR 2006 FISCAL YR SEPT 29, 2005 JAKARTA - The energy and mineral resources commission of the House of Representatives agreed that the subsidized premium gasoline quota for the 2006 fiscal year will total 17.08 million kiloliters, subsidized diesel oil 14.498 million kiloliters, and subsidized kerosene 10 million kiloliters. Chairman of the House commission Agusman Effendi told a hearing with the Minister of energy and Mineral Resources in Jakarta on Wednesday that the House commission agreed not to add all the subsidized fuel oil quotas for fear of fuel price increases without the knowledge of the House.

INDONESIAN GOVT TO HELP FIRMS COPE WITH OIL PRICE HIKE SEPT 30, 2005 JAKARTA - The government would announce a package of incentives for the business world to minimize the adverse impact of the fuel price hike, Coordinating Minister of the Economy Aburizal Bakrie disclosed here Thursday. The incentives package to be issued on October 1, 2005, coinciding with the announcement of the fuel price hike, would be effective for industries, workers and farmers to lessen their burden created by the rise in the fuel price, Aburizal said. INDONESIAN GOVT SETS OIL USE REDUCTION TARGET SEPT 30, 2005 JAKARTA - The Indonesian government will reduce oil consumption in the country from 63 per cent at present to only 26 per cent in 2015 by increasing the use of other energy sources, a spokesman said. "Industries will be encouraged to use other primary energy sources such as coal and geothermal energy," Coordinating Minister for Economic Affairs Aburizal Bakrie said here on Thursday. INDONESIAN GOVT TO CONFIRM OIL PRICE HIKES TODAY SEPT 30, 2005 JAKARTA - The government will announce the fuel oil price increases at 10pm on Friday after President Susilo Bambang Yudhoyono has signed the relevant decision, a spokesman said. "Tomorrow, the President will lead a cabinet session. If he is satisfied with the scheme on subsidy and compensation funds, he will sign it and we will announce (the fuel oil price hikes) at 22.00 tomorrow night," Coordinating Minister for Economic Affairs Aburizal Bakrie said here Thursday. INDONESIAN GOVT HAPPY TO SEE PERTAMINA OPERATE ACEH FIELD SEPT 23, 2005 JAKARTA - The Indonesian government will support PT Pertamina's bid to take over the operation of the A Block gas field in Nanggroe Aceh Darussalam in order to overcome the gas crisis in the province, State Enterprises Minister Sugiharto said. The minister made the statement after a working meeting with the House of Representatives' commission on energy and mineral resources here Thursday. INDONESIAN GOVT TO TENDER 18 NEW OIL BLOCKS OCT 3, 2005 JAKARTA - The government will reportedly offer 18 new oil blocks to investors on October 21, including some located in Natuna, Sulawesi and eastern Indonesia. The Kompas daily quoted an officer at the Oil and Gas Director General as saying the new blocks are expected to increase the country's crude oil production to 1.3 million barrels per day in 2009 from 1.075 barrels at present. INDONESIA'S DIRECT CASH SUBSIDY CRITICIZED BY CREDITORS OCT 4, 2005 JAKARTA - Coordinating Minister for the Economy Aburizal Bakrie said he had received critical questions from some creditor countries and institutions grouped in the Consultative Group on Indonesia (CGI) on the implementation of the Indonesian government's direct cash subsidy as compensation for reduced fuel oil subsidy. "The colleagues of the CGI raised questions on the transparency of the compensation fund program and the sustainability of its implementation," Aburizal told the press after the Mid-Term Review meeting with the CGI at Hotel Borobudur in Jakarta on Monday.

INDONESIAN GOVT AIMS TO REDUCE KEROSENE USE VIA NEW OVENS OCT 7, 2005 JAKARTA - The government will facilitate the procurement of 10 million briquette ovens in its bid to reduce the use kerosene by Indonesian households, the Kompas daily reported Friday. The daily quoted Chief Economics Minister Aburizal Bakrie as saying that State Minister for the Empowerment of Women Meutia F. Hatta will socialize the use of briquette ovens. LPG OUTPUT FALLS 20% IN INDONESIA OCT 7, 2005 JAKARTA - Indonesia's Liquefied Petroleum Gas (LPG) production has declined by some 20 per cent due to problems in refineries in Balikpapan and Cilacap which have delayed supplies to Jakarta. "The LPG production is declining and the two refineries have delayed their supplies in significant amounts. Yesterday Cilacap (refinery) stopped production while Balikpapan has technical problem," Marketing Director of Pertamina, Arie Soemarno said here Thursday. INDONESIAN GOVT NOT TO RAISE ELECTRICITY TARIFF THIS YEAR OCT 7, 2005 JAKARTA - The Indonesian government has assured it would not raise the basic electricity tariff until the end of 2005 and is calculating a minimum subsidy for state-run electricity company PLN. "We have decided not to increase elecricity tariff until the end of 2005," Coordinating Minister for Economic Affairs Aburizal Bakrie said after a coordinative meeting with Vice President Jusuf Kalla here Thursday. INDONESIA'S APEXINDO, PETROGAS SIGN MOU ON OIL/GAS PROJECT OCT 10, 2005 JAKARTA - PT Apexindo Pratama Duta Tbk (APEX) (JSX:APEX) has signed a memorandum of understanding (MOU) with PT Petrogas Wira Jatim (Petrogas), a state-owned enterprise operating in the oil and gas industry in East Java. APEX president Hertriono Kartowisastro said at the weekend the two companies have agreed to cooperate in the exploration and exploitation of oil and gas fields in East Java. INDONESIA'S BP MIGAS SIGN OIL/GAS CONTRACTS WITH NINE FIRMS OCT 10, 2005 JAKARTA - The upstream oil and gas regulatory agency BP Migas signed contracts with nine companies for the exploration and exploitation operations in Indonesia to increase the national crude oil and gas production. In the signing ceremony here over the weekend, the contractors have expressed commitment to invest US$202.06 million in six years of explorations. PERTAMINA NOT TO RAISE LPG PRICE UP TO END OF THIS YEAR OCT 10, 2005 JAKARTA - State-owned oil and gas company Pertamina has decided not to increase the price of liquefied petroleum gas (LPG) up to the end of 2005, its president Widya Purnama said here at the weekend. He said this in response to a rumor that Pertamina will shortly raise the LPG price. FINANCIAL INSTITUTIONS COMPETE FOR INDONESIA'S CEPU OIL BLOCK OCT 10, 2005 JAKARTA - A number of domestic and foreign financial institutions are competing to finance the management of the Cepu Block, said Widya Purnama, president of state oil and gas

company Pertamina. The foreign financers are Citigroup, JP Morgan, Goldman Sach, UBS, HSBC and JBIC, while the domestic ones are Bank Mandiri and BNI, Widya said. INDONESIA'S MEDCO SPENDS US43.67 MLN ON EXPLORATION UP TO SEPT OCT 11, 2005 JAKARTA - Energy company PT Medco Energi Internasional (JSX:MEDC) spent US$3.67 million for oil and gas explorations up to September this year, a local daily reported Tuesday. The expenditure was for the drilling of exploration wells in two locations - Central and South Sumatra Extension and Tuban explorations wells. INDONESIA'S ELNUSA ASKS THREE GROUPS TO BUILD OIL REFINERY OCT 11, 2005 JAKARTA - PT Elnusa Harapan, a subsidiary of sate-owned oil and gas company Pertamina, asked three large company groups to build an oil refinery, the Bisnis Indonesia daily reported. The daily quoted Elnusa president Rudy Radjab as saying the company has held intensive discussions with the Barito Pacific Group, the Mulia Group and the Salim group to build the refinery estimated to cost up to US$3 billion. JAPAN'S SUMITOMO TO BUILD GEOTHERMAL POWER PLANT IN INDONESIA OCT 12, 2005 JAKARTA - Japanese multinational company Sumitomo Corporation, in partnership with PT Rekayasa Industri and Fuji Electric, is to undertake state electricty company PT PLN's Lahendong II geothermal power plant project in Tomohon, North Sulawesi. Documents on the implementation of the US$28.44 million project were signed here Tuesday by PT PLN and Sumitomo Corp representatives. COMMERCE BANK TO FINANCE PERTAMINA'S EXPLORATION IN LIBYA OCT 12, 2005 JAKARTA - Pertamina's exploration in two oil blocks in Libya at a cost of US$3.6 billion will be fully financed by Commerce Bank, vice president of Indonesia's state-run oil and gas company Mustiko Saleh said Tuesday. Thus, Pertamina will spend no funds for the handling of the two oil and gas blocks, but function as a majority stockholder or the main operator of the project by holding 55 per cent of the stock while the remaining 45 per cent is in the hands of Commerce Bank, according to Mustiko. INDONESIAN GOVT PINS ECONOMIC HOPES ON LOWER OIL PRICE OCT 12, 2005 JAKARTA - The government is hoping the world crude price will drop again to below US$50 per barrel so that the national economy, which has been battered by the recent increase in fuel oil prices, can recover, Information and Communication Minister Sofyan Djalil said here Tuesday. "We pray that through the fast we observe during the month of Ramadan the world curde price will decline to below US$50 per barrel. We share the suffering of the small people," Sofyan said. INDONESIA'S PGN TO START BUILDING 450KM GAS PIPELINE OCT 12, 2005 JAKARTA - State-run gas distribution company PT Perusahaan Gas Negara (PGN) will soon begin implementing the first phase of its plan to build a gas pipeline from Pagar Dewa field in South Sumatra to Serpong in West Java (SSWJ I) over a distance of 450 kilometers. PGN president WMP Simandjuntak said Tuesday the company's SSWJ I project could begin after the signing of the first package of contract between the company and a Japanese contractor JFE Engineering Corporation.

INDONESIAN GOVT TO SELL PGN SHARES AT PREMIUM PRICE OCT 12, 2005 JAKARTA - State Enterprises Minister Sugiharto said the sale of 7.4 per cent of the shares in state gas distributor PT Perusahaan Gas Negara (PGN) (JSX:PGAS) will be adjusted to the premium market price. "The Privatization Committee has decided to relinquish the PGN shares soon and appoint an underwriter," Sugiharto said here on Tuesday. INDONESIA'S ELNUSA ASKS THREE GROUPS TO BUILD OIL REFINERY OCT 12, 2005 JAKARTA - PT Elnusa Harapan, a subsidiary of state-owned oil and gas company Pertamina, asked three large business groups to build an oil refinery, the Bisnis Indonesia daily reported. The daily quoted Elnusa president Rudy Radjab as saying the company has held intensive discussions with the Barito Pacific Group, the Mulia Group and the Salim group to build the refinery estimated to cost up to US$3 billion. INDONESIA'S PERTAMINA IMPORTS 5,100 TONNES OF LPG OCT 12, 2005 JAKARTA - State-owned oil and gas company Pertamina has reportedly imported 5,100 metric tons of liquefied petroleum gas (LPG) to cover shortage in the country. Pertamina spkesman Muhammad Harun told a local daily the import is expected to be sufficient to cope with shortage in supply in the country as a result of production trouble faced by some oil refineries in the country. YUDHOYONO GUARANTEES SMOOTH OIL, ELECTRICITY SUPPLY TO INDUSTRY OCT 13, 2005 CIKARANG - Indonesian President Susilo Bambang Yudhoyono said the government guarantees the smooth supply of fuel oil and electricity for industry. "The Indonesian government will not only guarantee the supply of fuel oil and electricity for industry but also their continuity," the President told around 1,000 businessmen from 23 countries in the Jababeka industrial estate Bekasi, West Java, on Wednesday. CONSORTIUM OF MALAYSIA'S MMC TO BUILD SABAH POWER PLANT OCT 14, 2005 KUALA LUMPUR - MMC Corporation Berhad (MMC) (KLSE:2194) on Thursday announced that a consortium that includes its 70 per cent-owned subsidiary, Tepat Teknik Sdn Bhd (TTSB), has been awarded a contract to build a 100MW gas-fired power plant in the East Malaysian state of Sabah. The other partners in the consortium are Mitsubishi Corporation and Mitsubishi Heavy Industries Ltd. INDONESIAN GOVT SETS FUEL SUBSIDY AT US $5.36 BLN IN 2006 OCT 14, 2005 JAKARTA - The government and the House's budget committee agreed to set oil fuel subsidies at Rp54.3 trillion (US$5.36 billion) for 2006, down from Rp89.2 trillion this year. Committee member A Ramson Siagian said the subsidy is estimated on the assumption that there is no more fuel price hikes in 2006, although the government predicted that the world oil prices will rise again next year. BANK INDONESIA OPTIMISTIC IMPACT OF OIL PRICES CAN BE REDUCED OCT 17, 2005 JAKARTA - Bank Indonesia Governor Burhanuddin Abdullah is optimistic that the policy adopted by the Indonesian Government in the fiscal and monetary sector will minimize the impact of surging crude oil prices. The government has taken various fiscal and monetary

steps to cope with global economic uncertainty to reduce the negative impact of the crude oil prices and the global imbalance on the Indonesian economy, Burhanuddin said Sunday. INDONESIA'S MEDCO SUSPENDS OPERATION IN EAST CAMERON BLOCK IN US OCT 18, 2005 JAKARTA - PT Medco Energi International Tbk (JSX:MEDC) has suspended its gas production in East Cameron Block in the United States but expects to return its normal operation in November, Chief Executive Officer of Medco, Hilmi Panigoro said here Monday. Hilmi said hurricane Rita that hit Mexico Bay and Texas in the United States in September had forced the company to suspend its gas production in the East Cameron Block, which is situated in the Mexico bay. WORLD OIL PRICE PREDICTED TO REMAIN HIGH IN 2006: OPEC OFFICIAL OCT 18, 2005 JAKARTA - The price of crude oil on the world market is predicted to remain high, at the level of US$50-US$60 per barrel in 2006, according to Maizar Rahman, Indonesian governor for the Organization of Petroleum Exporting Countries (OPEC). "Today the world's demand for fuel is 84 million barrels a day, while the total capacity of refineries available in the world is only 85 million barrels a day," he told the press here Monday. INDONESIAN MINISTER ADVISES PGN NOT TO HIKE GAS PRICE OCT 19, 2005 JAKARTA - Energy and Mineral Resources Minister Purnomo Yusgiantoro has asked publiclylisted state gas company PGN not to raise the price of its gas for the industrial sector. "I would advise PGN not to raise the price of its industrial gas yet," he said after a meeting with President Susilo Bambang Yudhoyono at the presidential office here Tuesday. INDONESIA TO NEED 600,000 BBL REFINERY CAPACITY IN 5 YRS: OPEC OCT 19, 2005 JAKARTA - Indonesia will need another oil refinery with a capacity of 600,000 barrels per day in the next five years, OPEC Governor for Indonesia Maizar Rahman said. "To keep its the fuel oil stock at a safe level, Indonesia will need at least two more oil refineries with a capacity of 300,000 barrels per day each," Maizar said here on Tuesday. APEC PREPARING PROPOSAL FOR STRATEGIC PETROLEUM RESERVE OCT 19, 2005 JAKARTA - The member countries of the Asia-Pacific Economic Cooperation (APEC) are currently preparing a proposal for the implementation of the Strategic Petroleum Reserve (SPR), Energy and Mineral Resources Minister Purnomo Yusgiantoro said here Tuesday. The formulation of the Strategic Petroleum Reserve is intended to anticipate fuel oil price hikes like the skyrocketing of the fuel price in the last several months, he told reporters before leaving for South Korea to attend an APEC ministerial meeting. PERTAMINA RESCHEDULES FUEL OIL IMPORTS OCT 21, 2005 JAKARTA - State oil and gas company Pertamina has revised its gasoline import plans due to a drop in domestic consumption following the recent fuel oil price hikes, the company's president Widya Pernama said here Thursday. He said Pertamina had rescheduled the import of six cargoes of regular "premium" gasoline from this month to next month. INDONESIAN CERAMIC INDUSTRIES AGREE ON 15% GAS PRICE INCREASE OCT 21, 2005

JAKARTA - The Association of Ceramic Industries (Asaki) has reached agreement with staterun gas distributor PT Perusahaan Gas Negara (PGN) on a 15 per cent increase in the price of gas effective as of October 15, 2005. Corporate Secretary of PGN Widyatmoko Bapang said here Thursday the agreement was reached at a business-to-business (B to B) meeting between PGN and Asaki on October 19. INDONESIA HINTS AT RENEGOTIATING LNG PRICES WITH S.KOREA OCT 21, 2005 SEOUL - Indonesia's visiting energy minister hinted Thursday at renegotiating liquefied natural gas (LNG) prices with South Korea, officials here said. In a meeting with Commerce and Energy Minister Lee Hee-beom, Indonesia's Energy and Mineral Resources Minister Purnomo Yusgiantoro said that Jakarta would take into account South Korea's request to renegotiate its LNG export prices, according to the commerce ministry officials. INDONESIAN GAS PRODUCERS HAVE NOT RAISED PRICES: EXEC OCT 24, 2005 JAKARTA - Upstream Oil and Gas Regulatory Agency (BP Migas) disclosed that the natural gas producers have not raised their product to state gas distributor PT PGN. "It is not true that the gas producers have raised the price of their product to PGN," finance and marketing deputy of BP Migas Eddy Purwanto said here on Friday. MALAYSIA'S OILCORP SIGNS MOU WITH INDONESIA'S ENERGI UTAMA OCT 24, 2005 KUALA LUMPUR - Oilcorp Berhad (KLSE:3697) has signed a Memorandum of Understanding (MOU) with PT Energi Utama to invest in various projects in Indonesia. The signing of the MOU on Oct 21 was witnessed by representatives from Malaysia's Foreign Ministry and Indonesia's Foreign Ministry. INDONESIAN GOVT SIGNALS CHANGE IN OIL SUBSIDY HANDOUTS OCT 25, 2005 JAKARTA - The Indonesian government's oil fuel subsidy for the poor will cease being paid in cash due to payment distribution problems, an official said here on Monday. "The government is preparing a new concept. We have two months to crystalize it," said Soetedjo Yuwono, secretary to Coordinating Minister for People's Welfare. INDONESIA'S PERTAMINA CHIEF SUED BY 19 TRADE UNIONS OCT 25, 2005 JAKARTA - President of state oil and gas company Pertamina, Widya Purnama, has been sued by 19 trade unions grouped in the United Pertamina Federation of Trade Unions (FSPPB) through the State Administrative Court (PTUN) in Jakarta over the company's decision on the dismissal of 4,015 employees. Legal counsellor of FSPPB, Reinhart Parapat of the Association of Indonesian Legal and Human Rights Aid (PBHI), told the press here Monday the legal suit was filed because the Pertamina chief has issued Decision No 038/C00000/S-8 dated July 26, 2005 on the settlement of the status of workers employed for a specified period of time. INDONESIA'S APEXINDO SETS 2005 INCOME TARGET AT US$110 MLN OCT 26, 2005 JAKARTA - Oil drilling company PT Apexindo Pratama Duta aims to chalk up US$110 million in income this year, slightly lower than the US$113 million booked last year. Apexindo Finance Director Agus Lomboan said some of its rigs could not operate due to damage.

INDONESIA'S FUEL PRICE HIKES TO SLOW RURAL ELECTRIFICATION: PLN OCT 26, 2005 JAKARTA - The recent fuel oil price increases in Indonesia will discourage the development of electricity in rural areas that have mostly been relying on power plants running on highsulfur diesel (HSD) oil, a State Electricity Company (PLN) official said. Herman Daniel Ibrahim, PLN's director of transmission and distribution, said here Tuesday the production cost of electricity generated by HSD-fuel power plants had reached Rp2,000 (20 US cents) per KWH with high-sulfur diesel oil priced at Rp6,000 per liter. PRESIDENT SUSILO TO COMMISSION 13 PRODUCING OIL BLOCKS OCT 26, 2005 JAKARTA - President Susilo Bambang Yudhoyono will commission 13 new oil and gas blocks in Jambi on Friday. The new oil blocks started producing crude oil this year, adding 54,700 barrels per day to the country's production. INDONESIAN PRESIDENT URGES SWITCH TO COAL AS ENERGY SOURCE OCT 27, 2005 JAKARTA - President Susilo Bambang Yudhoyono Wednesday urged Indonesians to use coal as a source of energy due to the soaring fuel oil prices. "I hope not only households but also small and medium-scale industries will switch (to coal)," he said when attending a briefing on energy diversification and popularization of coal briquets at the Jakarta Fair Grounds. PERTAMINA OFFERS TO EXPLORE CEPU OIL BLOCK FOR 5 YRS OCT 28 2005 JAKARTA - The state-owned oil company Pertamina is prepared to handle the Cepu oil block in East Java for the first five years of exploitation, State Minister of State-Owned Enterprises Sugiharto said here Thursday. It is possible to entrust oil exploitation in Cepu block to Pertamina as the company has had the model with several examples, Sugiharto stated when attending the commemoration of the 60th State Electricity Day at the central office of the state-owned electricity company PLN. YUDHOYONO SAYS INDONESIANS USING ENERGY INEFFICIENTLY OCT 31, 2005 JAMBI - President Susilo Bambang Yudhoyono said here Friday Indonesia was consuming energy less efficiently than other countries, and called on the people and state officials to help conserve energy. The government is trying its best to conserve energy and to find other alternative energy sources such as solar energy, coal and castor oil, he said when inaugurating 13 geothermal and oil projects. YUDHOYONO TARGETS RISE IN OIL OUTPUT IN 3 TO 4 YEARS OCT 31, 2005 JAMBI - President Susilo Bambang Yudhoyono hopes Indonesia's oil production will rise from 1.075 to 1.3 million barrels per day in the next three to four years. "This would give a great contribution to the state's revenue," the president said when dedicating 13 oil/gas projects in Jambi. INDONESIAN PRESIDENT COMMISSIONS 13 OIL AND GAS PROJECTS OCT 31, 2005 JAMBI - President Susilo Bambang Yudhoyono here Friday commissioned 13 oil and gas projects located in different parts of Indonesia with a combined investment value of US $1,213 million. The 13 projects were symbolically inaugurated at the same time at a ceremony at state oil and gas company PT Pertamina's central facility in the Kenali region in Jambi province.

OIL PRICE HIKE TO BOOST INDONESIAN PROPERTY COSTS: PROCON LINI OCT 31, 2005 JAKARTA - The fuel oil price hike on October 1 will hurt the country's commercial property sector as rents, leases and service charges look set to increase. "It is practically sure that soon office and apartment buildings, as well as retail trade establishments will raise their rents, leases and service charges," Research and Consultation Director of PT Procon Lini told the press here on Thursday. INDONESIAN PRESIDENT IRKED BY CRITICISM OF FUEL OIL PRICE HIKE NOV 1, 2005 CENTRAL LOMBOK - President Susilo Bambang Yudhoyono on Monday vented his anger at critics who say his government's policy to raise fuel oil prices was only causing misery to the people. "A president who makes his people suffer is crazy. No government in this country would push its people into misery," the President said in remarks before thousands of people including government officials after dedicating a number of development projects at Menseh hamlet, Ganti village, Central Lombok district, West Nusatenggara. INDONESIAN GOVT DISCUSSING PLAN TO RAISE POWER TARIFF: MINISTER NOV 2, 2005 JAKARTA - The government is discussing the possibility of raising the basic electricity tariff (TDL) following the endorsement of electricity subsidy amounting to Rp17 trillion (US $1,7 billion) in the 2006 state budget, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said. The minister made the remarks while speaking to employees of the Ministry of Energy and Mineral Resources, who were leaving for Idul Fitri festivities in their home towns here on Sunday. INDONESIA DELAYS PRIVATIZATION OF PGN UNTIL NEXT YEAR NOV 2, 2005 JAKARTA - State Minister for State Enterprises Sugiharto said the plan to sell 7.1 per cent of state-owned gas distributor PT Perusahaan Gas Negara (PGN) will be delayed until next year. The divestment was to take place by the end of October this year but it was postponed as there was no urgency for the divestment with payments including in privatization and dividends from state companies having been fulfilled, Sugiharto said. INDONESIA TO OPERATE NEW OIL REFINERY IN EAST JAVA NEXT YEAR NOV 2, 2005 JAKARTA - Indonesia is ready to operate a new oil refinery in Tuban, East Java, early next year, which has a capacity of producing up to 60,000 barrels a day, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said here on Sunday. "With it the government will have built two refineries so far with a capacity of producing a total of 110,000 barrels a day," he said. PETRONAS BOOKS 28 PCT SURGE IN H1 PRE-TAX PROFIT NOV 3, 2005 KUALA LUMPUR - Petroliam Nasional Berhad (Petronas) has booked a 28 per cent on-year surge in interim pre-tax profit to US$8,835 million. Profit after tax and before minority interest for the six months to 30 September 2005 amounted to US$6,076 million, up 22.1 per cent from US $4,975 million posted a year earlier, the state-owned oil firm said in a statement on Nov 2. COAL INDIA EYES MINES IN AFRICA, AUSTRALIA, INDONESIA NOV 4, 2005

NEW DELHI - World's largest coal producer, Coal India Ltd (CIL) is looking at acquisition of mines in Africa, Australia and Indonesia to cut import of high grade, low ash content coal into the country. Coal Videsh Ltd, CIL's 100 per cent subsidiary, wants to acquire stakes in either running coal mines or a coal block in South Africa, Australia, Indonesia, Zimbawbe and Mozambique capable of producing metullargical coal (used for manufacturing steel) and low ash, non-coking coal (used for producing power), CIL chairman and managing director Shashi Kumar told reporters here. ANALYSIS - ASIAN COUNTRIES MOVE TO CUT OIL SUBSIDIES NOV 7, 2005 Analysis from Asia Today - Asian countries have moved swiftly to reduce oil subsidies costing billions of dollars, to relieve the unbearable burden on their budgets. Thailand, Indonesia and Malaysia have announced plans to remove or reduce fuel subsidies by 2006. Subsidies are a huge problem for developing countries, says William Ramsay, Deputy Executive Director of the International Energy Agency (IEA). 449,656 INDONESIA'S PERTAMINA TO UPGRADE GAS STATIONS NOV 8, 2005 JAKARTA - State-owned oil company PT Pertamina will improve the service standard of its gas stations in facing competition from other companies following the opening of the sector for private business as of November 23, its marketing and commerce director, Arie Sumarno, said to ANTARA here on Monday. He said Pertamina would not want to lose its customers after the opening of the free market. "We have to be ready to compete with other companies both local and foreign in the market of supplying fuel oils in Indonesia, he said. INDONESIA TO BUILD 15,000 SOLAR POWER PLANTS IN EAST NOV 8, 2005 JAKARTA - The Indonesian government plans to set up 15,000 solar power and microhydro power plants in the eastern regions next year in an effort to meet electricity needs, an official said. Yogo Pratromo, director general of electricity and energy exploitation at the energy and mineral resources ministry said last week there was an accumulation of power generating capacity in Java. INDONESIA'S MEDCO REPORTS 43 PCT RISE IN 9-MONTH NET PROFIT NOV 9, 2005 JAKARTA - The net profit of publicly listed energy company PT Medco Energi Internasional (JSX:MEDC) shot up 43 per cent to US$68.4 million in the first nine months of this year compared with the same period a year ago on strong sales. The company reported sales valued at US$306.4 million in the January-Sept period this year, up from US$262 million in the same period last year. PO&G, PETROCHINA TO BUILD US$1.3 BLN LNG PLANT IN E.KALIMANTAN NOV 9, 2005 JAKARTA - Pacific Oil & Gas Indonesia (PO&G) plant to build a US$1.3 billion liquefied natural gas (LNG) projects in East Kalimantan. PO&G will build the plant, which will have an annual production capacity of 5 million tons of LNG in cooperation with PetroChina Co.Ltd. STAR ENERGY TO BUILD GEOTHERMAL POWER PLANT IN WEST JAVA NOV 9, 2005 JAKARTA - Star Energy will start the construction of a 110 megawatt geothermal power project in Wayang Windu, West Java, after a new power price agreement reached with state-owned electricity company PLN. The two sides agreed on a price of US $0.049 per kwh

of electricity to be sold by Star Energy to PLN LM, PLN Primary Energy Director Ali Herman Ibrahim said. INDONESIA'S OIL AND GAS EXPLORATIONS FALL SHORT OF TARGET NOV 10, 2005 JAKARTA - Realization of oil and gas explorations this year is estimated to fall short of target with only 57 exploration wells drilled or 70 per cent of the 81-well target. A deputy at the Upstream Oil and Gas Executive Body (BP Migas) Zainal Achmad told the Bisnis Indonesia daily that rising cost caused the shortfall in explorations. INDONESIAN MINISTERS TO DETERMINE EXPORT TAX ON COAL NOV 14, 2005 JAKARTA - The percentage of export tax on coal will be fixed based on recommendations from the energy and mineral resources minister and the trade minister, Coordinating Minister of the Economy Aburizal Bakrie said. The minister made the remarks in response to a proposal from various circles that the 5 per cent export tax on coal should be imposed when the coal price on the international market reaches at least US$50 per ton. KALIMANTAN TO JAVA GAS PIPELINE NOT FEASIBLE: STUDY NOV 15, 2005 JAKARTA - The US$1.2 billion gas pipeline project from East Kalimantan to Central Java is not economically feasible because of the limited gas to be transported, the Kompas daily reported. If the project has to be carried out the government has to cancel contracts with foreign buyers on exports of liquefied natural gas, the daily quoted a study by a team of government officials. INDONESIA'S KUJANG TO GET GAS SUPPLY FROM ODIRA NOV 16, 2005 JAKARTA - The Kujang I unit of state-owned fertilizer maker PT Pupuk Kujang in Cikampek, West Java, has secured part of its gas requirements from PT Odira Energy Persada. Kujang I, which has a capacity of 570,000 tons of urea fertilizer, will receive 17 million standard cubic feet per day (MMSCFD) from Odira. PERTAMINA MAY CONTINUE DISTRIBUTING SUBSIDIZED FUEL OIL IN 2006 NOV 17, 2005 JAKARTA - State-run oil company PT Pertamina might continue distributing subsidized fuel oil in 2006, although its public service obligation (PSO) would expire on December 31. Head of the Downstrean Oil and Gas Supervisory Agency (BPH Migas) Tubagus Haryono and Pertamina's Marketing Director Arie Sumarno made the remarks on the sidelines of a coordination meeting to discuss a draft presidential decree on the supply and distribution of fuel oils after the expiration of Pertamina's PSO. INDONESIAN GOVT PANEL REVIEWING COAL EXPORT TAX DECISION NOV 17, 2005 JAKARTA - A tariff committee is reviewing the government's decision on coal export tax and reference price, the Bisnis Indonesia daily reported. Last month, the finance minister decided to impose a 5 per cent export tax on coal. PETRONAS GAS POSTS 20.1 PCT JUMP IN H1 PRE-TAX PROFIT NOV 17, 2005 KUALA LUMPUR - Petronas Gas Berhad (KLSE:6033) has booked an interim pre-tax profit of RM527.732 million (US$139.7 million), 20.1 per cent higher than for the same period a year ago following a sharp increase in throughput revenue. For the six months ended 30

September 2005, revenue climbed 23.4 per cent on-year to RM1,427.197 million due to the higher volume of gas processed and the incorporation of the revised commercial terms of the Gas Processing & Transmission Agreement, it said in a filing to Bursa Malaysia on Nov 16. INDONESIAN GOVT TO BUILD KALIMANTAN TO JAVA GAS PIPELINE NOV 18, 2005 JAKARTA - The government will build a gas pipeline from East Kalimantan to Central Java even though surveys show the project is not feasible. A team of government officials has reportedly said the project is not feasible as the gas deposits in East Kalimantan are not enough to warrant the US$1.4 billion project. Moreover, most of the province's gas production has to be exported on long term contracts with foreign buyers until 2010. INDONESIA'S TPPI SEEKS NEW LOAN OF US$350 MLN TO FUND EXPANSION NOV 18, 2005 JAKARTA - PT Trans Pacific Petrochemical Indotama (TPPI) is seeking a loan of US$350 million to finance its business expansion. The company is in the final stage of negotiating with United Overseas Bank Asia and an agreement is expected to be signed before the end of this year, company sources told the newspaper Bisnis Indonesia. INDONESIA'S PLN RATED HEALTHY FIRM DESPITE HEAVY LOSSES IN 2004 NOV 21, 2005 JAKARTA - The Supreme Audit Agency (BPK) has rated state-owned electricity company PLN as a healthy firm despite posting a loss of Rp2.02 trillion (US$202 million) in 2004 because of damage to facilities by earthquake triggered tsunami in Aceh. Despite being in the red, BPK categorized PLN as a healthy company based on its financial, operating and administration performances. PERTAMINA MAY CUT FUEL PRICE FOR INDUSTRY NOV 21, 2005 JAKARTA - State oil and gas company PT Pertamina will reduce the fuel oil price for industry in December, following a drop in the world oil price. The head of Pertamina's fuel oil division Achmad Faisal said here Friday the Mid Oil Platts Singapore (MOPS) price that was used as a reference to determine domestic the fuel price, had declined by some three percent. CHEVRON PACIFIC INDONESIA TO OPEN 3RD UNIT OF NEW POWER PLANT NOV 21, 2005 JAKARTA - PT Chevron Pacific Indonesia (CPI) will commission the third unit of the Darajat geothermal power plant in the regency of Garut, West Java. The new unit, which has a capacity of 110 megawatts, has been built at a cost of more than US$100 million. PERTAMINA MAY CONTINUE TO DISTRIBUTE SUBSIDIZED FUEL OIL IN 2006 NOV 21, 2005 JAKARTA - State-run oil company PT Pertamina may continue distributing subsidized fuel oil in 2006, although its public service obligation (PSO) expires on December 31, senior industry officials said. Head of the Downstrean Oil and Gas Supervisory Agency (BPH Migas) Tubagus Haryono and Pertamina's Marketing Director Arie Sumarno made the remarks on the sidelines of a coordination meeting to discuss a draft presidential decree on the supply and distribution of fuel oils after the expiration of Pertamina's PSO. GAS SUPPLY IN DOUBT FOR WEST JAVAN UREA FERTILIZER PLANT NOV 22, 2005

JAKARTA - State-owned company PT Pupuk Kujang in Cikampek, West Java, is facing an uncertain gas supply for its urea fertilizer factory, the Bisnis Indonesia reported. Chairman of a farmers association Winarno Tohir urged the government to immediately help guarantee gas supply for the factory, the main supplier of fertilizers for rice farmers in West Java. JAPANESE INVESTORS EYE INDONESIA'S OIL, GAS, MINING SECTORS NOV 22, 2005 JAKARTA - Japanese investors have expressed their wish to increase their investment in the oil, gas and mining industry in Indonesia, Energy and Mineral Resources Minister Purnomo Yusgiantoro said here on Monday. "They came here for a discussion with us on investment in Indonesia," Purnomo said after a meeting with a Nippon Exports and Investment Insurance (Nexi) delegation with the support of the Japanese Ministry of the Economy, Trade and Industry (METI). INDONESIAN GOVT EXTENDS PERTAMINA'S PSO UNTIL DEC 31 NOV 23, 2005 JAKARTA - The Indonesian government has extended the authority of state-owned oil and gas company PT Pertamina to carry out its Public Service Obligation (PSO) on domestic fuel oil distribution until December 31. Energy and Mineral Resources Minister Purnomo Yusgiantoro said here Tuesday the extension of the obligation was stipulated in Ministerial Decree no.2043/2005 as a follow up to Presidential Decree no.71/2005 on supply and distribution of certain types of fuel oil signed on November 16. INDONESIA NEEDS MULTINATIONAL ENERGY FIRMS: ECONOMISTS NOV 23, 2005 JAKARTA - Multinational energy companies are needed to help procure the nation's energy requirements, economists told the Kompas daily. The presence of multinational companies will create competition among the suppliers of energy, creating a competitive price and transparency which will benefit consumers, Syaiful Ibrahim, an economist from the stateowned electricity company PLN. PERTAMINA MAY REDUCE PRICE OF INDUSTRIAL FUEL NEXT MONTH NOV 23, 2005 JAKARTA - The state-owned oil company Pertamina may lower the price of industrial fuel for domestic supply by Rp500 (US $0.05) per liter in December 2005, following a downtrend in the fuel price at Mid Oil Platt Singapore, according to the head of the Pertamina Fuel Division. The fuel price at Mid Oil Platt's Singapore (MOPS) has been down by US$60 per barrel on average, and Pertamina has made adjustment of its industrial fuel price every month, Achmad Faisal said here Tuesday. INDONESIAN GOVT EXPECTED TO ISSUE BIOFUEL TRADE REGULATION SOON NOV 23, 2005 JAKARTA - The government is expected to issue Presidential Instruction (Inpres) to regulate the production and trade of bio-fuel, a kind of fuel produced from plants, Research & Technology Minister Kusmayanto Kadiman said here Tuesday. "In the aspect of technology application, we have been ready to produce bio-fuel, while in the marketing aspect, the market has been ready to receive the supply, but there is still no rule to regulate the production and trade of the product," he said. PERTAMINA EXPECTS NET PROFIT TO DOUBLE NEXT YEAR TO US$2.2 BLN NOV 24, 2005

JAKARTA - State-owned oil and gas company Pertamina estimated that its net profit will double to Rp22.4 trillion (US$2.24 billion) next year, the Kompas Daily reported. The largest contribution to the net profit will come from business in the downstream sector, especially from oil fuel distribution operations, its Finance Director Alfred Rohimone said on Wednesday. INDONESIAN GOVT TOLD CEPU OIL BLOCK DEAL MUST BE SIGNED NOV 24, 2005 SURABAYA - The government must consider the impact of the delay in the signing of the Joint Operation Agreement (JOA) between the state-owned oil company Pertamina and ExxonMobil Oil Indonesia Inc. (EMOI) for the exploitation of the Cepu block oil/gas field, according to an observer. Pursuant to the MOU signed on June 25, 2005, the JOA should have been signed on September 25, 2005, but the signing has been delayed as the two companies have not reached agreement. Therefore, the government should seek ways to bridge the differences between the two companies, Syarif Usman, director of Winner Center Bojonegoro, said here earlier this week. INDONESIA NEEDS US$6.15 BLN TO BUILD POWER INFRASTRUCTURE: PLN NOV 24, 2005 JAKARTA - Eddie Widiono, president director of state owned electricty company PT PLN, said the company needs US$6.15 billion for building electricity infrastructure in Indonesia till 2007. "The figure is not secured yet unless its financing is committed and it usually takes place a year after the PPAs (Power Purchase Aggreements) are signed," he said after speaking in a seminar themed "Turning Crises into Opportunities" here on Wednesday. PERTAMINA TO KEEP CONTROL OF SUBSIDIZED FUEL DISTRIBUTION NOV 24, 2005 JAKARTA - State-owned oil and gas company Pertamina will likely keep its function as the only company to procure and handle the distribution of subsidized oil fuels including premium gasoline, diesel oil and kerosene until 2007, the local daily reported. Meanwhile, Energy and Mineral Resources Minister Purnomo Yusgiantoro has issued a decision authorizing Pertamina to continue its function to procure and distribute certain types of oil fuels until the end of this year when the monopoly long enjoyed by the company will be abolished. FOREIGN OIL FIRMS EYE PERTAMINA-OWNED BLOCKS NOV 25, 2005 ANYER - Multinational oil and gas companies are targeting at least 10 oil and gas blocks belonging to state owned oil and gas company PT Pertamina, an executive said. The companies include Chevron-Texaco, Anadarko, Total Indonesia and ExxonMobil, EP Tri Siwindono, PT Pertamina's director of commercial development said. MULTINATIONALS EYE AT LEAST 10 PERTAMINA OIL/GAS BLOCKS NOV 25, 2005 ANYER - Multinational oil and gas companies are aiming at leat 10 oil and gas blocks belonging to state owned oil and gas company PT Pertamina, an executive said. The companies include Chevron-Texaco, Anadarko, Total Indonesia and ExxonMobil, EP Tri Siwindono, PT Pertamina's director of commercial development, told reporters here on Wednesday. PERTAMINA TO RAISE LPG PRICE BY 41% IN JANUARY NOV 25, 2005

JAKARTA - After trying to make up for an operating loss, state-owned oil and gas company Pertamina has finally decided to raise the price of liquefied petroleum gas (LPG) by 41 per cent in January. The decision is another blow for Indonesian households after a 125 per cent increase in the oil fuel prices in October, observers said. INCOME OF INDONESIAN GAS CO PGN EXPECTED TO TRIPLE IN 2007 NOV 25, 2005 JAKARTA - State gas company PT Perusahaan Gas Negara (PGN)'s revenue is expected to triple in 2007 compared to 2004, supported by increased volume of gas sales after the completion of the South Sumatra-West Java (SSWJ) gas transmission project. PGN presient director WMP Simandjuntak said here Thursday the gas transmission megaproject would enable the company to distribute 1.2 billion cubic feet of gas per day. INDONESIA'S ICS PREDICTS COAL PRICES TO DECLINE UNTIL 2006 NOV 25, 2005 JAKARTA - The prices of coal, which shot up in 2003-2004, are expected to start a downslide by the end of this year through next year, a local daily reported. Consumers especially in Asia Pacific such as Taiwan, Hong Kong, Japan and South Korea have piled up stocks, causing the price fall in 2006, director of Indonesia Coal Society (ICS) Singgih Widagdo said. INDONESIA'S PGN TO RAISE GAS PRICE NOV 28, 2005 JAKARTA - State-owned gas distributor PT Perusahaan Gas Negara (PGN) said the price of gas will be set at US$5 per MMBTU in 2006, up from US $4.50 at present. On October 15, 2005, PGN raised the price to US $4.50 per MMBTU from US$3.90. ACCELON TO BUILD US$6 BLN SYNTHETIC DIESEL PLANT IN INDONESIA NOV 28, 2005 JAKARTA - Canada's Accelon Energy System plans to build a US$6 billion synthetic diesel oil processing plant using coal as the feedstock in East Kalimantan. The entire production of 28 million barrels per year will be acquired by state-owned oil and gas company Pertamina as an offtaker, without being a shareholder under a memorandum of understanding signed here on Nov 23. PERTAMINA WANTS TO START DRILLING 30 WELLS IN CEPU BLOCK NOV 28, 2005 JAKARTA - State-owned oil and gas company Pertamina said it will start drilling 30 oil wells in the Sukawati and Banyu Urip in Cepu block in February despite dispute with ExxonMobil Indonesia. Pertamina will submit its plan of development to the upstream oil and gas regulatory body (BP Migas) early next month to ask for approval. INDONESIA'S MEDCO TO ACQUIRE NEW OIL BLOCK NOV 28, 2005 JAKARTA - Publicly listed energy company PT Medco Energi Internasional (JSX:MEDC) is seeking to acquire a new oil block in Indonesia to increase its reserves. Company Secretary Andy Karamoy said negotiations are in the final stage to acquire the oil block. CHINESE INVESTORS TO BUILD US$250 MLN POWER PLANT IN N. SUMATRA NOV 29, 2005 MEDAN - Chinese investors will build a coal power plant worth US $250 million (Rp2.5 trillion) in Belawan, Medan, North Sumatra, an executive said. "The plant will produce 600 MW of electricty and is expected to operate in the next 30 months," Awong Wijaya of PT

Toba Sia Power said when he met deputy governor of North Sumatra Rudolf M Pardede at the latter's residence here on Monday. INDONESIA'S PRIMA MULTI ARTHA TO SUPPLY COAL TO 3 CHINESE PLANTS NOV 29, 2005 BEIJING - Prima Multi Artha (PMA), an Indonesia-based trade and investment company, has reached initial agreements with Beijing-based Datang International Power Generation Co Ltd, to supply some 6 million tons of thermal coal to its three power plants along the east coast. "We are fully prepared on the Indonesia side, and will export coal to China as soon as the talks are finalized," Bambang Wiranto, business development director of PMA, told China Daily on Friday in an interview in Beijing. WORK BEGINS ON NEW GEOTHERMAL POWER PLANT IN INDONESIA NOV 30, 2005 JAKARTA - Energy and Mineral Resources Minister Purnomo Yusgiantoro has officially launched construction of a new geothermal power plant in Garut, West Java. The 110-megawatt third unit of the Dradjat geothermal power plant is to come on stream in September, 2006. INDONESIAN GOVT TELLS PERTAMINA TO WRAP UP TALKS ON CEPU BLOCK NOV 30, 2005 GARUT - The government has told state-oil and gas company PT Pertamina to finalize its negotiations on a Joint Operation Agreement (JOA) with ExxonMobil before it begins explorations in the Cepu block. "We have asked Pertamina to complete the negotiations first," Energy and Mineral Resources Minister Purnomo Yusgiantoro said after marking the start of construction of a geothermal-generated power plant (PLTP) Darajat III here on Tuesday. INDONESIAN GOVT TO DEVELOP W JAVA INTO GEOTHERMAL HUB NOV 30, 2005 GARUT - The government will develop West Java as a hub for national geothermal production with the potential to produce 6,100 megawatt of geothermal energy. Speaking at the dedication of a geothermal power plant here on Tuesday, Energy and Mineral Resources Minister Purnomo Yusgiantoro said that the PLTP Darajat III plant in West Java provides 22.4 per cent of national geothermal reserves which are believed to reach 28,000 MW. WORK ON JEPARA TO CENTRAL JAVA GAS PIPELINE TO BEGIN NEXT YR NOV 30, 2005 JAKARTA - The gas pipeline project to transport gas from the Kepodang field in Jepara to the Tambak Lorok power plant in Semarang, Central Java will be implemented in mid 2006. The 120 kilometer pipeline, to be built by Malaysia's Petronas, is estimated to cost US$500 million. INDONESIA TO CUT DOMESTIC FUEL PRICE IF WORLD PRICE DIPS: MINISTER DEC 2, 2005 SIBOLGA - Energy and Mineral Resources Minister Purnomo Yusgiantoro said the governemnt would definitely lower the fuel oil price when the world crude price drops below US$57 per barrel, but he called on people to patiently follow developemnts in the international oil price. "We have to observe patiently developments in the world oil price, whether the present downward trend continues or there is a turning point," Purnomo said on the sidelines of a ceremony marking the dedication of a hydropower plant in Husor village in Central Tapanuli Thursday.

INDONESIA POWER, PJB TO STOP USING OIL AT POWER PLANTS DEC 5, 2005 JAKARTA - PT Indonesia Power and PT Pembangkit Jawa Bali (PJB) will stop using oil to fuel power plants in the country by 2007-2008. Oil will be replaced with gas or coal to generate power, the subsidiaries of the state-owned electricity company PLN said last weekend. INDONESIAN GOVT, PLN DISCUSS MECHANISM FOR POWER TARIFF ADJUSTMENT DEC 5, 2005 JAKARTA - The government and state-owned electricity company PT PLN are discussing the possibility of adopting a mechanism to adjust the electricity tariff instantly with the energy price. PLN Deputy Director for Marketing and Customer Service Antony Dewono said here on Dec 1 that under the mechanism the electricity tariff would be adjusted to the price of primary energy. DPR SEEKS TO ENSURE GAS SUPPLY FOR STATE FERTILIZER FIRMS DEC 5, 2005 JAKARTA - The House of Representatives (DPR) has sought to ensure state oil and gas company PT Pertamina supplies gas to state fertilizer companies, including PT Pupuk Iskandar Muda (PIM) and PT Pupuk Kujang, via a new, tighter contract. "In the future, we do not want to hear more about Pertamina's failure in the gas supply although it has bound it with a contract due to increasing demands" a member of the House Commission VI, Azwir Dainy Tara said here on Sunday. PERTAMINA UPBEAT ON CEPU BLOCK DEAL WITH EXXONMOBIL DEC 6, 2005 JAKARTA - State-owned oil company PT Pertamina expressed optimism here on Monday that a joint operation agreement for the Cepu Block oil fields with ExxonMobil can be signed this month. "We are sure we will reach a deal this month," the company's president director, Widya Purnama, said here on Monday when asked about the prospect of the agreement. INDONESIAN GOVT PREPARES NEW ENERGY PLAN DEC 6, 2005 JAKARTA - The Indonesian government is currently preparing a national energy policy that will underline the diversification, intensification and conservation of energy sources. The energy diversification plan gives priority to the use of gas and coal as substitutes for oil, the Head of the Research and Development Center of the Energy & Mineral Resources Ministry, Nenny Sri Utami told ANTARA here Monday. CONSTRUCTION OF S. SUMATRA-BANTEN GAS PIPELINE TO START SOON DEC 6, 2005 JAKARTA - Construction of the gas pipeline to transport gas from southern Sumatra to the western part of Java will start soon after Sunday's ground breaking ceremony. Construction of the 1,134 kilometer pipeline will be carried out in two phases, Energy and Mineral Resource Minister Purnomo Yusgiantoro said. PERTAMINA TO BUY 32 MORE SHIPS TO TRANSPORT OIL DEC 7, 2005 JAKARTA - State-owned oil and gas company Pertamina will buy 32 oil transport ships to help in the distribution of oil fuels. The ships will be bought in phases until 2008, to replace old ones considered no longer suitable for operation, Pertamkina President Widya Purnama said on Monday.

KALTIM FERTILIZER CO MULLS INVESTING IN AMMONIA PLANT IN SULAWESI DEC 8, 2005 BONTANG - PT Pupuk Kalimantan Timur (PKT) is studying the possibility of investing in the construction of an ammonia processing plant worth more than US$250 million in Luwuk, Central Sulawesi, a spokesman said. "Medco, the company that will develop the region`s gas reserves has been studying the existing gas potential for a year. A giant gas exploration company from Korea is likely to take part in the venture," PKT`s Development and Technology Director Robby Subianto said here Wednesday. PERTAMINA IN LNG TRADE TALKS WITH TRADITIONAL BUYERS DEC 9, 2005 JAKARTA - Indonesian state oil and gas company PT Pertamina has had negotiations to extend LNG supply contracts with traditional buyers such as Japan, South Korea and Taiwan. The contracts have been on hold since November. PERTAMINA MAY CUT OIL SUPPLY TO PLN IF DEBT ISN'T PAID DEC 9, 2005 JAKARTA - State-owned oil company PT Pertamina has threatened to reduce its fuel oil supply to PT PLN if the state-owned electricity firm fails to pay the Rp6 trillion (US$612.6 million) it owes."Unless the arrears are paid, firm action will be taken. However we will first ask them which fuel oil supply could be reduced," said Pertamina's finance director Alfred H Rohimone on Thursday. GEOTHERMAL ENERGY INVESTORS ASK INDONESIAN GOVT FOR TAX BREAKS DEC 9, 2005 JAKARTA - Businessmen dealing with the exploitation and development of geothermal energy have asked for a tax incentive to stimulate the application of alternative energy sources as substitutes for fossil fuels. Vice Chairman of the Indonesian Association of Geothermal Energy Businesses Suryadarma told reporters after discussing a bill on energy with House Commission VII here early this week that the tax incentive can be given by exempting import of capital goods for geothermal energy exploration from import tax and value added tax. PGN WANTS US$305 MLN TO FUND GAS PIPELINES IN W. JAVA DEC 9, 2005 JAKARTA - State-owned gas distributor PT Perusahaan Gas Negara (PGN) said it will need US$305 million in loans to finance the construction of its gas distribution pipelines in western Java next year. PGN President W.M.P. Simanjuntak said the World Bank already pledged a loan of US$80 million to be disbursed in January. PERTAMINA TO DELAY SHIPMENTS OF LNG OVERSEAS DEC 12, 2005 JAKARTA - State-owned oil and gas company Pertamina has decided to delay shipments of 61 tankers of liquefied natural gas (LNG) to a number of contract buyers abroad in 2006 to ensure supply of gas feedstock to fertilizer plants in the country. State-owned fertilizer factory PT Pupuk Iskandar Muda in Aceh has suspended operation due to problems in obtaining gas feedstock. BP INDONESIA TO CHANGE CONTRACT VALUE OF LNG SHIPPED TO CHINA'S FUJIAN DEC 12, 2005 JAKARTA - The value of liquefied natural gas (LNG) to be shipped to China's province of Fujian under a long term contract from Tangguh will change, a BP Indonesia official said. BP Indonesia, the operator of the Tangguh LNG plant is still negotiating with Fujian on a

number of conditions in the contract not yet agreed upon, said Nico Kanter, executive vice president of the company. INDONESIA-CHINA 2002 LNG DEAL STILL ON HOLD DEC 12, 2005 JAKARTA - A contract signed in 2002 to export LNG from a plant in Papua to Fujian, China, is yet to be implemented, an Indonesian official said on Friday. Deputy Executive Director of the Indonesian Oil Affairs Agency (BP Indonesia) Nico Kanter said that the terms and conditions of the contract had not been finalised. PERTAMINA TO START DRILLING FOR OIL IN LIBYA DEC 13, 2005 JAKARTA - Indonesian state oil company Pertamina will start drilling operations in Libya in February next year, the company`s spokesman, Mochamad Harun, said here on Monday. He said the contract for the exploration and production of oil in Sabratah and Sirte fields was signed last Thursday by Pertamina`s vice president director Mustiko Saleh and chairman of Libya`s National Oil Corporation, Abdullah S Al Badri. INDONESIA'S BUMI RESOURCES REPORTS SHARP RISE IN Q3 NET PROFIT DEC 13, 2005 JAKARTA - Publicly listed holding company PT Bumi Resources (JSX:BUMI) reported a net profit of Rp1.5 trillion (US$150 million) in the third quarter of this year, almost doubling its net profit of Rp738.9 billion (US$75.8 million) in the same period last year. The surge in net profit was attributable mainly to rising prices of coal. Bumi Resources has two large coal mining subsidiaries in Kalimantan -- PT Kaltim Prima Coal KPC) and PT Arutmin Indonesia. INDONESIA GRANTS INVESTMENT LICENCES TO 30 FIRMS FOR OIL SECTOR DEC 14, 2005 JAKARTA - Licenses have been granted to 30 companies to invest around US$10.6 billion in the downstream sector of oil and gas industry, the Kompas daily reported Wednesday. Eri Sudarmo, processing and commercial director at the energy and mineral resources ministry, was quoted as saying the amount is expected to increase with strong interest shown by investors in the sector including in processing, transport, storage and distribution of oil and gas fuels. INDONESIA COURTS US$10 BLN IN INVESTMENTS FOR OIL INDUSTRY DEC 14, 2005 JAKARTA - Indonesia has granted licenses for 30 companies to invest around US$10.6 billion in the downstream sector of oil and gas industry, an official said. Energy and Mineral Resources Ministry processing and commercial director Eri Sudarmo said the amount is expected to increase with strong interest shown by investors for the processing, transport, storage and distribution of oil and gas fuels. INDONESIA'S '05 COAL PRODUCTION EXPECTED TO FALL SHORT OF TARGET DEC 14, 2005 JAKARTA - The country will likely fail to meet its coal production target of 150 million tons this year because of bad weather and falling prices of the commodity. Bambang Hartoyo, a spokesman of the Geology, Mineral resources and Geothermal Directorate General, said in the first three quarters of this year the country's coal production totaled only 120 million tons. BIODIESEL AND BIOETHANOL PLANTS SET TO BE BUILT IN INDONESIA DEC 15, 2005

JAKARTA - Research and Technology Minister Kusmayanto Kadiman said 11 investors have indicated interest in producing bioethanol and biodiesel in Lampung, southern Sumatra. Three of the companies are preparing the construction of their factories to be completed in a year with a combined annual capacity of 300,000 kiloliters, Kadiman said. INDONESIA'S PLN TO OPERATE 11 NEW POWER PLANTS OUTSIDE JAVA DEC 15, 2005 JAKATA - State-owned electricity company PT PLN will start the operation of 11 new small capacity power generating plants outside Java before the end of this year. The plants, with capacity ranging from 1.5 megawatts (MW) to 80 MW, will increase the supplying capacity of PLN by 443 MW outside of Java. PLN TO CARRY OUT STUDY ON INDONESIA'S 1ST NUCLEAR POWER PROJECT DEC 15, 2005 JAKARTA - State-owned electricity company PLN will team up with the Korea Electric Power Corp and the Korea Hydro & Nuclear Power Co. to carry out a feasibility study on building the country's first nuclear power plant. The nuclear power plant was expected to solve the country's problem of power supply shortages, PLN Primary Energy Generation Director Ali Herman Ibrahim told a local newspaper. HYDRO PLANT WATER MAY NOT BE REVEWABLE RESOURCE: INDON MINISTER DEC 15, 2005 JAKARTA - Hydro power generating plants (PLTA) are facing the threat of being excluded from a list of renewable resources, Minister of Research and Technology Kusmayanto Kadiman said here on Wednesday. "Water is actually a renewable resource as long as its usage fulfils all the required conditions, but if it fails to do so, then water would almost be impossible to be renewed and that is what is happening in Indonesia today," the minister said. INDONESIA'S FIRST ETHANOL FACTORY TO BE BUILT IN LAMPUNG DEC 16, 2005 JAKARTA - PT Medco Ethanol Indonesia, a subsidiary of publicly listed energy company PT Medco Energi Internasional (JSX:MEDC), will build the country's first ethanol factory in Lampung in cooperation with PT Trada Bioenergy Indonesia. The two companies will establish a joint venture company PT Ethanol Lampung to run the factory with Medco holding 85 per cent of the shares and Trada Bioenergy to hold the remaining 15 per cent. JAPAN PLEDGES US$420 MLN FOR INDONESIAN PIPELINE PROJECTS DEC 16, 2005 JAKARTA - Japan has pledged to provide US$420 million to finance pipeline projects in Indonesia in 2006. Japanese Ambassador Yutaka Iimura said the loan will be part of Japan's commitment to the Consultative Group for Indonesia for pipeline projects, which were planned but have been delayed because of financial problems. INDONESIA'S EMP TO RAISE FUNDS TO BUY FIVE OIL & GAS BLOCKS DEC 16, 2005 JAKARTA - Publicly listed energy company PT Energi Mega Persada (EMP)(JSX:ENRG) plans to buy PT Tunas Harapan Perkasa, which operates five oil and gas blocks. The blocks are expected to turn out up to 980 trillion cubic feet of gas annually in the next 10-12 years, EMP vice president Herwin W. Hidayat said on Thursday. CHINA CUTS CONTRACTED INDONESIAN LNG IMPORT BY OVER 60 PCT DEC 16, 2005

JAKARTA - The Indonesian government said China's province of Fujian will only be able to import 1 million tons of liquefied natural gas (LNG) from Indonesia per year, a drop of 1.6 million tons from its contract agreement. In 1992 Fujian agreed to import 2.6 million tons of Indonesian LNG from a Papua-based operation, starting in 2008. INDONESIA TO USED MIXED ENERGY SOURCES FROM 2025: MINISTER DEC 16, 2005 JAKARTA - State Minister of Research and Technology Kusmayanto Kadiman has stated that mixed energy sources are expected to guarantee sustainable energy supply in Indonesia as of 2025, so the procurement of energy will no longer be dependent on the exploitation of natural resources. With the provision of mixed energy sources, about 30 per cent of the demand for energy will be fulfilled by oil and natural gas, 30 per cent by coal and the remaining 40 per cent by various energy sources such as bio-ethanol, bio-diesel oil and nuclear energy, he said here early this week. PERTAMINA READY TO BUY LNG NOT IMPORTED BY CHINA'S FUJIAN DEC 19, 2005 JAKARTA - State-owned oil and gas company Pertamina said it will be ready to buy 1.6 million tons of liquefied natural gas (LNG) from Tangguh if China's Fujian Province decides to cut its imports. It was reported earlier that the receiving terminal of Fujian will be able only to accommodate 1 million tons of LNG from Tangguh, Papua, or 1.6 million tons less than it has agreed to import from Tangguh. INDONESIA TO FACE BRIQUETTE SHORTAGE IN 2006 AND 2007 DEC 19, 2005 JAKARTA - The supply of briquette in Indonesia in 2006 and 2007 is expected to be well below demand, which is increasing sharply with the soaring prices of oil fuels, industry officials said. The government has announced plans to build 10 million briquette ovens for households to popularize the use of briquette instead of kerosene. INDONESIAN FERTILIZER CO'S GAS MAY GO TO STATE PRODUCER DEC 19, 2005 BANDUNG - State owned fertilizer company PT Pupuk Kaltim it is prepared to give 10 per cent of its total 280 million cubic feet gas supply to state owned fertilizer company PT Pupuk Kujang The deal has the potential to decrease PT Pupuk Kaltim's production but would go ahead if asked by the government said Pupuk Kaltim Director Omay K Wiraatmadja on Saturday INDONESIA TO EXPAND OLEO-CHEMICALS PRODUCTION CAPACITY BY 20 PCT DEC 20, 2005 JAKARTA - Indoesia's oleochemical production capacity will be expanded by 20 per cent to 700,000 tons annually next year to follow 2-3 per cent increase in demand in the world market, producers said. Kris Hadisoebroto, chairman of the Indonesian Association of Oleochemical Producers (Apolin) said five factories in Sumatra alone will have a total annual capacity of 500,000 tons INDONESIA UNLIKELY TO REACH OIL PRODUCTION TARGET THIS YR DEC 20, 2005 JAKARTA - Indonesia is unlikely to achieve its production target of crude oil this year with a number of investors failing to meet their commitments. The country's oil production has so far averaged only 1.061 million barrels per day as against the target figure of 1.075 million barrels because 45 investors of working contracts have not developed their working areas

as scheduled, head of the upstream oil and gas regulatory body (BP Migas) Kardaya Warnika said. INDONESIAN MINISTER URGES INCREASED GAS SUPPLY TO FERTILIZER COS DEC 21, 2005 SURABAYA - Indonesia's Minister of State-Owned Enterprises (BUMN) Sugiharto has called for a review of the policy on natural gas supply, which gives priority to the production of liquefied petroleum gas (LPG) and ignores the fertilizer industry's demand for gas as a basic material in fertilizer production. Speaking to reporters while inaugurating an organic fertilizer factory and a nitrogen, phosphor and potassium fertilizer factory in the PT Petrokimia compound in Gresik early this week, he cited the need to increase the portion of gas supply to the fertilizer industry to support the government's efforts to raise the input of farmland and improve farmers' welfare. DUTCH INVESTORS TO BUILD FUEL OIL STORAGE TANKS IN INDONESIA DEC 21, 2005 JAKARTA - Fuel oil storage tanks with a capacity of hundreds of thousand tons are planned for Cilegon, Banten, and in Tanjung Priok, Jakarta by two Dutch investors. The investing companies, Oil Tanking and Royal Vopac, already have fuel oil storage tanks in Singapore said Erie Soedarmo, commercial and marketing director at the ministry of energy and mineral resources, on Tuesday. INDONESIAN OIL PRODUCING REGIONS SEEK BIGGER SHARE IN PROFITS DEC 21, 2005 JAKARTA - The Consultative Forum of Oil and Gas Producing Regions (FKPDM) will seek a bigger part in oil and gas production-sharing deals with operators of oil and gas contractors as until now they only receive 1-2 per cent of any profit, a spokesman said. Irianto MS Syafiuddin, the chairman of FKPDM (comprising 56 oil and gas producing districts across the country), said that under an existing law, the FKPDM is entitled to higher percentages. INDONESIA TO CONSUME 25 MLN KILOLITERS OF SUBSIDIZED FUEL IN 2006 DEC 21, 2005 JAKARTA - The domestic market is expected to absorb some 19-25 million kiloliters of fuel oils next year, state-owned oil company Pertamina predicted here on Tuesday. Head of Pertamina`s Fuel Oil Affairs Section, Achmad Faisal, told a journalist-sponsored seminar that the state company was ready to win 90 per cent of next year`s fuel oil market. INDONESIA DEVELOPING 50 HECTARES OF CROPS FOR BIODIESEL DEC 22, 2005 JAKARTA - Indonesia's Ministry of Agriculture and the Indonesian Plantation Research Institute (LRPI) are developing 50 hectares of castor oil palm seedlings to reach a 2006 target of 150,000 hectares for biodiesel. "Within a year, we will have 50 hectares of seedling estates in Central Java, East Java and West Java," said the head of the ministry`s research and development agency, Ahmad Suryana, Wednesday. INDONESIAN PANEL WANTS CEPU BLOCK TO START PRODUCTION SOON DEC 23, 2005 JAKARTA - House Commission VII wants the Cepu block, an oilfield in East Java, to start production soon, and has proposed the application of the production sharing mechanism in accordance with the prevailing business process and rules. Chairman of the House Commission VII Agusman Effendi said here Thursday the Cepu block is expected to be productive soon so as to contribute to efforts to raise the national oil production, which currently averages only one million barrels a day.

INDONESIA'S RNI TO PRODUCE BIODIESEL TO FUEL ITS SUGAR MILLS DEC 23, 2005 JAKARTA - Sugar producing company PT Rajawali Nusantara Indonesia (RNI) said it will start producing bio-diesel from castor oil to fuel its nine sugar factories from next year. RNI director Roy Hendroko said the company has grown castor oil plants in Cirebon and Pasuruan, West Java to feed the bio-diesel production facility. POWER PRODUCERS PLAN TO BUILD 26 NEW PLANTS IN INDONESIA DEC 27, 2005 JAKARTA - A number of companies grouped in the Communications Forum of Private Power Producers plan to build 26 new power plants in various areas of Indonesia. Secretary general of the forum Djoko Winano said Thursday that 14 consortiums and three individual companies will build 25 coal fired and a gas fired power plants to have a capacity of 1,000MGW at a cost of around US$1 billion. CONSORTIUM TO SUPPLY STEEL PIPES TO INDONESIA'S PGN DEC 28, 2005 JAKARTA - A consortium of PT Bakrie Pipe Industries and PT Bumi Raya Steel Industries has signed a contract with state gas firm PT PGN to supply steel pipes for the construction of a natural gas pipeline network in West Java. The two parties signed the contract on December 22, Lalu Mara Satria Wangsa, senior public relations manager of PT Bakrie & Brothers Tbk, said on Tuesday. INDONESIAN GOVERNMENT CONSIDERING GAS SUBSIDY DEC 30, 2005 JAKARTA - The government is considering a subsidy on gas for domestic consumption if gas producers and consumers fail to reach an agreement, Energy and Mineral Resources Minister Purnomo Yusgiantoro said. The government's gas policy gives priority to fulfilling domestic consumption and will intervene if producers and consumers are unable to come to an agreement, Purnomo said on Thursday. IRAN PAKISTAN COMMITTEDTO INDO-IRAN GAS PIPELINE: PRIME MINISTER SEPT 8, 2005 ISLAMABAD - Promising support to Iran in its row with the US over its nuclear programme, Pakistan on Wednesday told Tehran's top nuclear negotiator that it was committed to the Indo-Iran gas pipeline against which Washington has expressed reservations. Pakistan supported efforts to resolve the issue of Iranian nuclear programme through negotiations and opposed use of force against the Gulf nation on this matter, Prime Minister Shaukat Aziz told visiting Secretary of Iran's Supreme National Security Council Ali Larijani during a meeting here. OVL SEEKS TIME TILL JUNE '06 FOR PACT ON IRAN'S JUFEYR OILFIELD SEPT 16, 2005 NEW DELHI - ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (NSI:ONGC), has sought time until June 2006 to sign the definitive agreement for the Jufeyr oil field in Iran. The pact for the field, which was given to OVL as part of India's deal to buy 5 million tonnes of LNG per annum from Iran beginning 2010, was to be signed by December 31, 2005, failing which OVL will lose its right to develop the field.

INDIA, PAKISTAN TO SEEK THIRD PARTY CERTIFICATION OF IRANIAN GAS SEPT 21, 2005 NEW DELHI - India and Pakistan will seek third party certification of Iran's gas reserves before moving ahead on the US$7.4 billion Iran-India-Pakistan pipeline, which is designed to meet the growing energy needs of both nations. At the second meeting of the IndiaPakistan Joint Working Group on the pipeline project in Islamabad earlier this month the two sides agreed to approach Iran for third party certification of gas reserves, confirmation of allocation of gas reserves for the project, identification of alternate/back up gas reserves and time line for the development plan of allocated reserves, sources said. SOUTH ASIA NEEDS 2 GAS PIPELINE SCHEMES: ADB EXPERT SEPT 22, 2005, The Press Trust of India MANILA - Future demand for natural gas in South Asia is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, Asian Development Bank (ADB) said Thursday. Dan Millison, a senior ADB energy specialist, said recently released reserves information from Turkmenistan shows a lower-than-expected gas deliverability for a proposed 3.3 billion dollar pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. ADB has been brokering the 1,700 km pipeline project since 2002, promoting it as a win-win example of regional cooperation - a pioneering effort to link gasrich Central Asia with energy-deficient South Asia through Afghanistan. The project would bring clean fuel at competitive costs to India and Pakistan, transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Dauletabad gas field has gross reserves of 1.4 trillion cubic meters of gas, but production forecasts are lower than expected, causing analysts to doubt that it can meet the proposed target of piping 30 billion cubic meters (BCM) of gas a year to South Asia. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing. They will need to find gas from other fields to meet pipeline design targets," Millison said. The USD7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700 km pipeline would cost more than double the Turkmen scheme but leaves out Afghanistan. "However, with long term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline," says Millison. India already imports gas and demand will soar in the next decade, the ADB official said adding Pakistan, with its own reserves declining, is expected to begin importing gas after 2008. In fact, projected demand in South Asia is so strong that there may be a need for a third pipeline from Qatar or Oman, says Millison. S.ASIAN GAS DEMAND STRONG ENOUGH FOR TWO PIPELINES: ADB EXPERT SEPT 23, 2005 MANILA - South Asia's future demand for natural gas is expected to be strong enough to require gas to be piped from both Turkmenistan and Iran, according to Dan Millison, a senior Asian Development Bank (ADB) energy specialist. Reserves information from Turkmenistan indicates a lower-than-expected gas supply for a proposed 1,700 kilometre pipeline, US$3.3 billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. US APPRECIATES INDIA'S SUPPORT ON IRAN AT IAEA SEPT 27, 2005 WASHINGTON - The US today "appreciated" India's "support" at the IAEA on the Iran nuclear issue. "We appreciate the support. The world is saying to Iran that it is time to come clean," White House Press Secretary Scott McClellan said when asked about India's vote in favour of a resolution mooted by the EU-3 with US backing at the UN atomic energy watchdog's Vienna meeting.

IRAN GAS PIPELINE WON'T AFFECT INDO-US TIES: INDIAN MINISTER SEPT 28, 2005 WASHINGTON - India will proceed with the pipeline from Iran through Pakistan to obtain Iranian gas and does not expect the project to affect Indo-US ties, Minister of Petroleum and Natural Gas Mani Shankar Aiyar has said. In an interview on Monday, he said India also does not expect its vote in support of an IAEA resolution on Iran's controversial nuclear programme to affect New Delhi's ties with Tehran. IRAN SAYS OIL PIPELINE AGREEMENTS WITH INDIA STILL IN FORCE SEPT 29, 2005 NEW DELHI - Iran on Wednesday asserted that all its agreements with India are "still in force" and passing through their normal process. Iran denied media reports that suggested the possibility of the LNG deal and gas pipeline project being called off. INDIA GOVERNMENT ALLIES WARN PM ON IRAN NUCLEAR STANCE SEPT 30, 2005, Agence France Presse, NEW DELHI - India's communist party leader said Premier Manmohan Singh should "undo the damage" from New Delhi's vote against Iran's nuclear programme, as leftists continued to pile pressure on the government. The remarks by Prakash Karat, who called Singh's decision a "final act of surrender" to the United States, were published a day after millions of workers held a general strike over his economic policy that crippled the nation. Karat blamed Singh for India's vote in favour of a motion passed last weekend at the UN's nuclear watchdog which would refer Iran, a longtime ally of India, to the UN Security Council over its nuclear programme. In an interview with the Indian Express newspaper, he said India had to reverse the "pro-US" decision taken at the International Atomic Energy Agency. "By the next board meeting of the IAEA in November, the Indian government will have to undo the damage," the paper quoted him saying. The row over the vote and the general strike have marked an escalation of tensions between the government and the communists, who provide Singh's ruling coalition with a majority in parliament. Karat, known as the Red Czar for his hardline politics, did not go so far as to threaten to withdraw support for Singh's government but pressed for a change in policies. "It is necessary for all the left and democratic forces to mobilise the people in defence of an independent foreign policy," he said. Independent political analyst Mahesh Rangarajan said the latest events marked "the end of the honeymoon" between the Left and Singh's Congress party. "There's no way the Left can support what it sees as a betrayal" of India's tradition of non-alignment, he said. The government will "find itself checkmated in a variey of ways -- on any economic reform that requires legislative approval, for instance," he said. The government has already had to retreat on some reforms in the face of communist opposition, including selling stakes in state-run firms. The United States has accused Iran of hiding secret nuclear weapons work, but Tehran says it is pursuing a peaceful civilian nuclear programme. Iran has reacted sharply to New Delhis vote but denied there was any risk to a recent 22-billion-dollar gas purchase deal or a proposed pipeline to India via Pakistan. Asia's energy market "is limited and India is one of the biggest markets," said S.D. Muni, professor at New Delhi's School of International Studies. India has said its vote was aimed at staving off Tehran's immediate referral to the Security Council and says it has no reservations about Iran's right to a nuclear energy programme. The US has agreed to aid India with its civilian nuclear programme. But US Congressmen said the help could be jeopardised if India refused to back firm action against Iran. RUSSIA'S GAZPROM KEEN TO TAKE PART IN IRAN-INDIA PIPELINE OCT 3, 2005 SAKHALIN (RUSSIA) - Russian gas giant Gazprom, the world's largest gas firm, is keen to participate in the construction of the US $7.4 billion Iran-Pakistan-India pipeline that would

bring gas from the gigantic South Pars fields in Iran to the two South Asian countries. "We are keen on participating in the Iran-India pipeline project," Russia's Minister of Industry and Energy Viktor Borisovich Khristenko said here on Friday. GAS PIPELINE FROM IRAN VIABLE EVEN WITHOUT INDIA: PAKISTAN OCT 4, 2005 ISLAMABAD - Pakistan has said the Iran-Pakistan-India gas pipeline would remain viable even if India opted out of the project. "A gas pipeline from Iran to Pakistan is viable even if India pulls out of the Iran-Pakistan-India (IPI) gas pipeline project," Ahmed Waqar, Secretary, Ministry of Petroleum and Natural Resources, said. IRAN COULD RUN OUT OF OIL RESERVES IN 9 DECADES: OFFICIAL: OCT 5, 2005 MADRID - Iranian Oil Ministry Deputy for International Affairs Hadi Nejad-Hosseinian said that Iran could run out of oil reserves in nine decades. Speaking at a gathering dubbed "Iran in the 21th century: Energy and Security" here Monday, he cited latest figures which put Iran's crude oil reserves at 137 billion barrels, accounting for 11.6 per cent of the world's total reserves. PAKISTAN INVITES RUSSIA TO JOIN IRAN GAS PIPELINE PROJECT OCT 7, 2005 ISLAMABAD - Pakistan has invited Russia to join the multi-billion dollar India-Pakistan-Iran (IPI) gas pipeline, amidst reports that Russian natural gas major Gazprom has shown interest in the project. Pakistan wants Russia to be a partner in the gas pipeline that joins Iran, Pakistan and India, state run APP quoted Pakistan Ambassador to Moscow Mustafa Kamal Qazi as saying in an interview to Radio Moscow. PAKISTAN TO PROCEED WITH GAS PIPELINE EVEN IF INDIA OPTS OUT OCT 10, 2005 ISLAMABAD - Pakistan has said it will go ahead with the gas pipeline project with Iran even if India opted out of the venture. "We want this pipeline from Iran, even if India doesn't. I have been pushing it from day one. This pipeline will still work even without India," Pakistan Prime Minister Shaukat Aziz said. PAKISTAN INVITES RUSSIA TO BE PARTNER IN GAS PIPELINE PROJECT OCT 10, 2005 KARACHI - Pakistan has invited Russia to join the multi-billion dollar India-Pakistan-Iran gas pipeline, amidst reports that Russian natural gas major Gazprom has shown interest in the project. Pakistan wants Russia to be a partner in the gas pipeline that joins Iran, Pakistan and India, Pakistan's Ambassador to Moscow Mustafa Kamal Qazi, said in an interview to Radio Moscow. GE REFUSES LNG EQUIPMENT TO IRAN, INDIAN IMPORTS IN JEOPARDY OCT 26, 2005 NEW DELHI - India's US$22 billion deal to import 5 million tonnes of LNG from Iran is in trouble after General Electric of US is believed to have refused supply of crucial equipment needed to make LNG to Tehran. GE has refused to supply compressors, a crucial link in converting natural gas into liquid for transportation in ships, to Iran, industry sources said. IRAN EXPORTS 125 MLN BBL OF GAS CONDENSATES FROM SP PHASES 1-5 NOV 2, 2005

TEHRAN - More than 125 million barrels of gas condensates have been exported since phases one to five of South Pars gas field were commissioned. Public Relations Department at Pars Oil and Gas Company said that the last consignment of the exports comprised of more than 136,000 barrels of gas condensates export from Pars Export Jetty in Asalouyeh Port. IRAN, THAILAND HOLD SECOND ROUND OF OIL TALKS NOV 23, 2005 KUALA LUMPUR - The second round of Iran-Thailand oil committee session was held in Bangkok on Monday. The deputy oil ministers of the two nations participated in the committee session. RUSSIA KEEN ON IRAN-PAKISTAN-INDIA GAS PIPELINE NOV 28, 2005 NEW DELHI - US reservations of engaging with Iran notwithstanding, Russia is keen on participating in the over US$7 billion Iran-Pakistan-India gas pipeline project and sharing the risks involved in the "peace project". Russian firm Gazprom wants to partner in construction, operation and maintenance of the 2,100-km pipeline that will transport natural gas from the gigantic South Pars field in Persian Gulf to Pakistan and India. TRILATERAL DIALOGUE ON INDIA-IRAN PIPELINE NEXT YEAR: MINISTER NOV 29, 2005 NEW DELHI - India on Monday said that gas imports from Iran by pipeline passing through Pakistan was indispensable to its economic growth and will enter into trilateral dialogue on the pipeline early next year. "Iran-Pakistan-India pipeline is indispensable for India's energy security and its economic growth. It is indispensable as it is essential for eradication of poverty in the country," Petroleum Minister Mani Shankar Aiyar said at the India Economic Summit here. TRI-NATION GAS PIPELINE ON TRACK: PETROMIN OFFICIAL DEC 12, 2005 NEW DELHI - India on Thursday asserted that the Iran-Pakistan-India gas pipeline project was on track and first gas from the over US$7-billion project will start flowing from 2010end. A senior Petroleum Ministry official said the three countries are likely to agree on a project structure by February 2006 and a tripartite agreement was in sight by middle of next year. IRAN TO BACK OIL PRICE OF US$50 PER BARREL: MINISTER DEC 13, 2005 KUWAIT CITY - Iran's new Oil Minister Kazem Vaziri Hamaneh, arriving here Sunday night to attend the 138th conference of the Organization of Petroleum Exporting Countries, said that Iran would support the price of US$50 per barrel of oil. He made the remark while talking to reporters upon his arrival at Kuwait's airport. IRAN'S SOUTH PARS EXPORTS 130.7 MLN BBL OF GAS CONDENSATES DEC 14, 2005 TEHRAN - Some 130,755,000 barrels of gas condensates have been exported since phases one to five of South Pars gas field started operation in southern Bushehr province. Public Relations Department of Pars Oil and Gas Company said more than 346,000 tons of sulfur and 80.322 billion cubic meters of natural gas, obtained from SP phases 1-5, have also been exported in the said period.

CHINA'S SINOPEC TO DEVELOP YADAVARAN OILFIELD IN IRAN DEC 22, 2005 BEIJING - Iran and China will sign a final contract on the development of Iran's Yadavaran Oilfield and a US$100 billion LNG purchase agreement in January 2006, said Hadi NejadHosseinian, vice minister of Iran's Oil Department, at the end of a new round of negotiations in Tehran over the weekend. This would be the biggest ever deal Iran clinches with a foreign country. JAPAN JAPAN'S SHIZUOKA BANK SLASHES A/C FUEL CONSUMPTION SEPT 1, 2005 SHIZUOKA - Shizuoka Bank (TSE:8355) was able to reduce its consumption of fuel oil used to power air conditioning units by 43.9 per cent on the year in June and July, thanks in part to the government's Cool Biz campaign to save energy in the summer. Fuel oil usage during those months totaled 16,328 liters, according to the bank. The steep drop was also in reaction to the record-breaking scorcher last summer that kept air conditioning units in constant operation. TOKYO ENERGY & SYSTEMS DEBUTS TESTER FOR NUCLEAR PLANT PUMPS SEPT 1, 2005 TOKYO - Tokyo Energy & Systems Inc. (TSE:1945), which builds and maintains power plants, has developed a new type of device that can inspect the pumps at nuclear power plants in a third the time needed by existing test procedures. The device works in conjunction with newly developed data analysis software to ensure the reliability of the tests. GASOLINE, KEROSENE FUTURES IN JAPAN MARK RECORD HIGHS SEPT 1, 2005 TOKYO - In light of the jump in New York crude oil prices, gasoline and kerosene futures were limit-up throughout the session Wednesday on the Tokyo Commodity Exchange, with the nearest October and most distant March 2006 gasoline contracts, as well as the nearest kerosene contract, closing at record highs. The March gasoline contract ended 1,000 yen higher at 59,760 yen per kiloliter, while the most active February 2006 kerosene contract rose 1,200 yen to 60,100 yen per kiloliter. GASOLINE FUTURES FALL IN TOKYO ON WEAKER NEW YORK CRUDE SEPT 5, 2005 TOKYO - Gasoline futures declined Friday on the Tokyo Commodity Exchange, with softening crude oil prices in New York's overnight trading spurring sell orders. The benchmark March 2006 gasoline contract closed at 60,280 yen (US$551) per kiloliter, down 130 yen. GASOLINE, KEROSENE FUTURES KEEP FALLING IN JAPAN SEPT 6, 2005 TOKYO - Oil product futures continued to drop across the board Monday on the Tokyo Commodity Exchange, with gasoline finishing limit-down for four of the six contract months and kerosene for three months. The bellwether March gasoline contract closed at 59,280 yen (US $541) per kiloliter , down 1,000 yen. Gasoline ended limit-down for December, January, February and March. JAPAN TO HELP ASIAN NATIONS BUILD OIL RESERVES SEPT 7, 2005 TOKYO - The Japanese government will bolster its efforts to assist other Asian countries in

setting up oil reserve systems so that they can be prepared for potential shortages. Having started helping Thailand and the Philippines hammer out reserve creation plans, Japan will soon enter talks with Vietnam to do the same. TOKYO COMMODITY EXCHANGE TO BOOST FUEL PRICE CHANGE LIMIT SEPT 8, 2005 TOKYO - The Tokyo Commodity Exchange solidified plans Wednesday to boost its daily price fluctuation limit for gasoline and kerosene futures from the current 1,000 yen to 1,600 yen ($14.50). The change will be applied to April 2006 futures contracts that begin trading on Sept. 26. JAPEX TO BOOST OIL SANDS PRODUCTION IN CANADA SEPT 8, 2005 TOKYO - Japan Petroleum Exploration Co. (TSE:1662), known as Japex, plans to raise its daily crude oil output from oil sands in Canada from 8,000 to 9,000 barrels at present to 10,000 barrels by the end of the year. Production takes place at an oil field in Alberta Province in western Canada for which a Japex affiliate has a 100 per cent concession. The field has produced 9 million barrels since 1999. JAPAN'S ENERGY ADVANCE UPGRADING REMOTE-MONITORING STRUCTURE SEPT 13, 2005 TOKYO - Energy Advance Co., a subsidiary of Tokyo Gas Co. (TSE:9531) that manages power generation facilities, is bolstering its energy service provider operations, which remotely monitor client companies' equipment. The firm installs cogeneration systems at plants and offices and oversees their operation for customers. It has contracts with 150 client companies and manages equipment for around 100 from an observation center in Tokyo's Chiyoda Ward. JAPAN'S IDEMITSU KOSAN TO EXPAND RETAIL POWER OPERATIONS SEPT 14, 2005 TOKYO - Idemitsu Kosan Co. has revealed that it plans to significantly expand it retail electricity business, raising it 12-fold by fiscal 2008 to 300,000 kilowatt-hours. The company will use outside power sources and market electricity chiefly to small and midsize plants to which it sells petroleum products. M'BISHI GAS SEEN BEATING PRIOR ESTIMATE WITH RECORD OP PROFIT IN FY05 SEPT 15, 2005 TOKYO - Mitsubishi Gas Chemical Co.'s (TSE:4182) group operating profit is expected to increase 9 per cent to around 33.5 billion yen (US$302.8 million) in fiscal 2005, marking a record for the second consecutive year. The company had projected earlier that its group operating profit would fall, but strong sales of chemicals and recovering demand for electronic materials are now set to boost its group operating profit 3.5 billion yen higher than estimated. TOKYO OIL FUTURES: GASOLINE, KEROSENE LIMIT-UP ON PRICEY CRUDE SEPT 16, 2005 TOKYO - Gasoline and kerosene futures climbed sharply Thursday on the Tokyo Commodity Exchange on high crude oil prices in New York the previous day. Gasoline and kerosene both went limit-up for all contract months except the nearest October contracts. SUMITOMO TO SUPPLY STEEL PIPE TO QATAR LNG PROJECT SEPT 20, 2005

TOKYO - Sumitomo Corp. (TSE:8053) has received an order to supply 100,000 tons of steel pipe to a liquefied natural gas (LNG) project in Qatar between February and September of 2006. The 11.2 billion yen (US$100.55 million) order from United Arab Emirates' National Petroleum Construction Co. and major French engineering firm Technip is the third-largest pipeline pipe order for Sumitomo. NIPPON YUSEN UPGRADES BUSINESS PLAN TO ADD MORE LNG TANKERS SEPT 21, 2005 TOKYO - Nippon Yusen KK (TSE:9101) has upwardly revised its plan to expand its fleet of liquefied natural gas (LNG) tankers. The company's initial business plan called for it to either own or have invested in the construction of about 60 such tankers by fiscal 2010. It has now raised that figure to roughly 80-100 tankers. JAPAN CALLS ON CHINA TO HALT GAS EXPLORATION IN DISPUTED WATERS SEPT 21, 2005 TOKYO - The Japanese government on Tuesday called on China to halt gas exploration it has begun near the disputed waters in the East China Sea. But Tokyo has so far found no effective way to stop the exploration. S.KOREA, JAPAN, CHINA TO HOLD FORUM ON HIGH OIL PRICES SEPT 21, 2005 SEOUL - The big-three oil importers in Northeast Asia are scheduled to hold a forum in Seoul this week to address high oil prices, government officials said Tuesday. According to the Ministry of Commerce, Industry and Energy, representatives from South Korea, Japan and China will meet Wednesday and Thursday to discuss ways of boosting cooperation. GASOLINE, KEROSENE FUTURES IN TOKYO SUSTAIN SHARP GAINS SEPT 22, 2005 TOKYO - Gasoline and kerosene futures continued to rise dramatically Wednesday on the Tokyo Commodity Exchange, buoyed by across-the-board gains in New York for crude oil, gasoline and kerosene futures. Both gasoline and kerosene went limit-up in Tokyo for the February and March contracts. CHINA, JAPAN TO MEET OVER GAS FEUD SEPT 23, 2005 BEIJING - China and Japan will meet to settle a feud over claims to undersea oil and gas deposits in disputed waters, a Japanese government official said late Wednesday, the Associated Press reported. The two sides agreed to resume talks late next week on jointly developing reserves that fall within the countries' U.N.-defined maritime economic zones, AP cited Japanese Foreign Minister Nobutaka Machimura as saying. SOLOMON ISLANDS WANTS JAPANESE HELP FOR HYDROPOWER PROJECTS SEPT 27, 2005 HONIARA - The Solomon Islands is to ask Japan to consider establishing hydropower projects in various parts of the country. This is in light of rising fuel prices on the international market. 56% OF TRUCKING FIRMS IN JAPAN SEE LOWER EARNINGS: SURVEY SEPT 28, 2005 TOKYO - Some 56 per cent of second-tier distribution and trucking companies listed on the first and second sections of the Tokyo Stock Exchange expect to downgrade their fiscal 2005 earnings projections due to the impact of soaring crude oil prices and their inability to pass on the increases to customers, according to a Nihon Keizai Shimbun survey. The poll

canvassed 22 midsize logistics firms specialized in the trucking business in the Tokyo area and garnered responses from 16 of them. GASOLINE, KEROSENE FUTURES IN TOKYO SLIDE ON NEW YORK OIL DROP SEPT 29, 2005 TOKYO - Gasoline and kerosene futures fell across the board Wednesday on the Tokyo Commodity Exchange following Tuesday's decline in the New York crude oil market. The futures also came under "increased selling to square long positions by those who became concerned about the contracts' upside resistance," according to an official at Ace Koeki Co. INDIA, JAPAN AGREE TO PROMOTE ENERGY COOPERATION SEPT 30, 2005 TOKYO - India and Japan on Thursday agreed to promote joint oil and gas exploration ventures in third countries, besides enhancing bilateral cooperation with regard to energy conservation, strategic crude reserves and undertake joint research to develop an Asian oil market. The two energy-hungry countries decided to work on a Plan of Action, which would include encouraging Japanese companies to invest in India and explore possibility of an MoU between India's ONGC Videsh Ltd and Japan Oil Gas and Metals National Cooperation (JOGMEC). TOKYO GAS TO SELL GAS-POWERED COGENERATION SYSTEM FOR HOME SEPT 30, 2005 TOKYO - Tokyo Gas Co. (TSE:9531) said Thursday that it would begin marketing a cogeneration system for the home in January that uses city gas as the fuel to generate electricity and heat water. The system has agenerating capacity of 1 kilowatt, which is enough to meet some 30-40 per cent of the electricity needs of an average family of four. The waste heat from power generation can be used to heat water. VIETNAM-JAPAN GAS CO. OPENS US$7 MLN FACILITY SEPT 30, 2005 HANOI - Vietnam-Japan Gas Co Ltd (VIJAGas) opened a new air separation facility worth more than US$7 million on September 28, annexing its existing plant in Bien Hoa Industrial Park No 2 in the southern Dong Nai Province. The new facility, which can produce 75 tonnes of gas per day, bringing the capacity of the VIJAGas plant to 105 tonnes per day and making it the biggest industrial gas supplier in Vietnam. GASOLINE, KEROSENE FUTURES KEEP FALLING IN JAPAN OCT 7, 2005 OKYO - Gasoline and kerosene futures continued to slide Thursday on the Tokyo Commodity Exchange, with prices weakening throughout the day in part because of declines in overnight trading of crude in New York. The most active April gasoline contract fell 1,390 yen to close at 57,810 yen per kiloliter. The February, March and April contracts went limitdown. NAM NGUM SHAREHOLDERS TO NEGOTIATE TARIFFS OCT 7, 2005, Manichanh PANSIVONGSAY, Vientiane Times Shareholders of the Nam Ngum 3 hydropower project will try to negotiate a higher energy tariff with the Electricity Generating Authority of Thailand (EGAT) before the memorandum of understanding is signed in November. Project shareholders and EGAT have been holding talks regarding the price of energy for some time, but they cannot reach an agreement. Nam Ngum 3 National Project Director Mr Seng Panyasiri said on Wednesday, EGAT has suggested an average purchase price of 5.17 US cents per kwh, but the project needs more than that. Mr Seng said that shareholders would hold further discussions before the meeting

in November. The project's timetable plans for the power purchase agreement to be signed in March 2006. The basic construction costs of the hydropower plant are in the region of US$552 million. Work is scheduled to take about five years and is expected to begin in October, 2007. The project developers have been discussing financing with the Asian Development Bank (ADB) and the Japanese Bank for International Cooperation (JBIC), Seng said. The project is located about 5 kilometres north of the Nam Pha river mouth, northwest of Longcheng village. The site covers an area in Xaysomboun Special Zone and Xieng Khuang province. The large-scale hydropower plant will have an installed capacity of 460 MW. 90 percent of the electricity generated will be exported to Thailand, starting in 2011. It is expected that the project will help bolster the Lao economy, especially in the immediate vicinity of the plant. The country also will earn significantly more from exports. The project has four shareholders: the government (23 percent), MDX Lao Company Limited, Thailand (27 percent), Marubeni Corporation, Japan (25 percent) and Ratchburi Holding Public Co., Thailand (25 percent). The memorandum of understanding between the shareholders was signed in April 26 in Vientiane. After the concession period, ownership of the project will be transferred to the government in 2035. The shareholders are also talking with the government about the concession agreement, which they expect to be signed in November. JAPAN'S SUMITOMO TO BUILD GEOTHERMAL POWER PLANT IN INDONESIA OCT 12, 2005 JAKARTA - Japanese multinational company Sumitomo Corporation, in partnership with PT Rekayasa Industri and Fuji Electric, is to undertake state electricty company PT PLN's Lahendong II geothermal power plant project in Tomohon, North Sulawesi. Documents on the implementation of the US$28.44 million project were signed here Tuesday by PT PLN and Sumitomo Corp representatives. GASOLINE, KEROSENE FUTURES SLIDE AGAIN IN TOKYO OCT 12, 2005 TOKYO - Gasoline and kerosene futures continued to fall Friday on the Tokyo Commodity Exchange, following the sharp drop in crude oil in New York the previous day. The most heavily traded March gasoline contract sank 530 yen (US$4.65) to close at 55,750 yen per kiloliter. Prices declined for all contract months. JAPAN'S MEIJI DAIRIES TO TEST MILK-TO-ENERGY PROCESS OCT 13, 2005 TOKYO - Meiji Dairies Corp. (TSE:2261) will test a process that ferments milk to generate methane gas, which can be used as a source of energy, with a goal of developing a system for recycling the waste milk at its factories. With funding support from the New Energy and Industrial Technology Development Organization, the company plans to spend a total of 100 million yen (US$871,000) to purchase equipment from Fuji Electric Systems Co. and install it in a Kanagawa Prefecture factory. CRUDE ADVANCES ON JAPANESE OIL FUTURES MARKET OCT 14, 2005 TOKYO - Crude oil futures continued to rise on the Tokyo Commodity Exchange Thursday, while gasoline futures were mostly weak. All six crude oil futures contracts posted gains, with the benchmark March contract closing up 220 yen (US $1.92) at 40,700 yen per kiloliter. GASOLINE, KEROSENE FUTURES SLIDE IN TOKYO ON WEAK NY CRUDE OCT 17, 2005

TOKYO - Petroleum product futures moved downward on the Tokyo Commodity Exchange Friday, taking their cues from the overnight decline in crude oil in New York. Kerosene tumbled, with the March contract going limit-down to close at 55 ,710 yen per kiloliter, down 1,200 yen, while the most heavily traded April deliveries fell by 1,510 yen to finish at 54,370 yen. HITACHI INDUSTRIES DEVISES NEW COMPRESSOR FOR FUEL CELL CARS OCT 17, 2005 TOKYO - Hitachi Industries Co. has worked with Hitachi Ltd. (TSE:6501) to develop a highpressure compressor for the off-site filling of fuel-cell-driven vehicles with hydrogen gas. The compressors now used to fill fuel cells compress the hydrogen to 35 megapascals, which only enables a fuel cell vehicle to travel for around 300-400km on a full tank. In contrast, the new device can compress the hydrogen gas to 84 megapascals, allowing the vehicle to travel farther on a full tank. OSAKA GAS TEAMS UP WITH SUMITOMO IN OIL, GAS FIELD DEVELOPMENT OCT 18, 2005 OSAKA - Osaka Gas Co. (TSE:9532) said Monday that it has forged an alliance with Sumitomo Corp. (TSE:8053) in oil and gas reserve development. With different geographical focuses, the firms believe that each one's regional expertise can help the other in areas where it has little or no presence. GASOLINE, KEROSENE FUTURES FALL ACROSS BOARD IN JAPAN OCT 19, 2005 TOKYO - Gasoline and kerosene futures retrenched sharply Tuesday on the Tokyo Commodity Exchange, with traders squaring positions in light of the previous day's gains. The most active April 2006 gasoline contract ended 870 yen lower at 57,040 yen per kiloliter, while the benchmark April 2006 kerosene contract closed at 54,100 yen per kiloliter, down 910 yen. GASOLINE, KEROSENE FUTURES SLIP AGAIN ON LOWER NY CRUDE OCT 21, 2005 TOKYO - Gasoline and kerosene futures continued to fall Thursday on the Tokyo Commodity Exchange as selling prevailed throughout the day due to the decline in New York crude the previous day. The most active April gasoline contract slid 1,310 yen (US$11.35) to close at 54,720 yen per kiloliter. Prices dropped for all contract months, with the February and March contracts going limit-down. GAS, KEROSENE FUTURES SLIDE IN JAPAN ON WEAKNESS IN NY CRUDE OCT 24, 2005 TOKYO - Gasoline and kerosene futures continued to fall Friday on the Tokyo Commodity Exchange as selling prevailed throughout the day following the decline in New York crude oil the day before. The benchmark April gasoline contract dropped 510 yen to close at 54,210 yen per kiloliter. M'BISHI, CONOCOPHILLIPS PROMOTE LNG-FUELED TRAILERS AT US PORTS OCT 24, 2005 TOKYO - Mitsubishi Corp. (TSE:8058) and ConocoPhillips Co. are promoting the use of trailers fueled by liquefied natural gas at U.S. ports, sources familiar with the matter said. The California ports of Los Angeles and Long Beach recently became the first in the world to begin using such trailers. A joint venture between the two firms plans to construct facilities at the two ports to store and supply LNG.

KEROSENE FUTURES DOWN IN TOKYO OCT 25, 2005 TOKYO - Kerosene futures fell again Monday on the Tokyo Commodity Exchange. Buying prevailed at times in response to Friday's rise in crude oil prices in New York, but selling outpaced buying in the afternoon, particularly for the nearest month contracts, which were relatively more expensive than the spot price. Kerosene futures dropped across the board, with the most actively traded April contracts losing 110 yen to close at 51,160 yen per kiloliter. MURATA TO MASS-PRODUCE TINY METHANOL SENSOR FOR FUEL CELLS OCT 25, 2005 TOKYO - Japan's Murata Mfg. Co. (TSE:6981) will begin mass-producing the industry's smallest methanol sensor for fuel cells as early as November. The sensor uses ultrasound to measure the concentration of methanol, providing a way of tracking the remaining amount of methanol available to the fuel cell for power generation. JAPAN TO JOIN MULTILATERAL NUCLEAR FUEL MONITORING FRAMEWORK OCT 26, 2005 TOKYO - The Japanese government will take part in a multilateral nuclear fuel monitoring program designed to prevent nuclear proliferation. The program guarantees nuclear fuel supplies to nations that cease their own efforts to reprocess nuclear fuel and enrich uranium. TOKYO GASOLINE, KEROSENE FUTURES STILL ECHOING GAINS IN NEW YORK OCT 27, 2005 TOKYO - Gasoline and kerosene futures continued to climb Wednesday on the Tokyo Commodity Exchange, taking their cues from the uptick in New York crude the day before. Gasoline futures were higher, except for the nearest December contract, which lost 270 yen before ending at 49,380 yen per kiloliter. The most active April gasoline contract gained 300 to close at 54,610 yen. JAPAN OIL WHOLESALERS TO REAP HIGHER PROFITS FROM SURGING PRICES OCT 27, 2005 TOKYO - Major oil wholesalers' earnings in the current fiscal year will likely beat their earlier projections, thanks to the rise in crude oil prices. Nippon Oil Corp. (TSE:5001) appears set to post group pretax profit of around 215 billion yen (US$1.85 billion), unchanged from fiscal 2004 and 23 billion yen higher than the previous projection. Net profit is forecast at around 130 billion yen. TOKYO GAS TO BUY 1.2 MLN TONS OF LNG A YEAR FROM CHEVRON OCT 28, 2005 TOKYO - Tokyo Gas Co. (TSE:9531) said Thursday that it has signed an agreement with U.S. oil firm Chevron Corp. to buy an annual 1.2 million tons of liquefied natural gas (LNG). The 25-year contract can be extended for another five years. KYUSHU ELEC TO SELL POWER OUTSIDE TRADITIONAL SALES AREA OCT 31, 2005 TOKYO - Kyushu Electric Power Co. (TSE:9508) will soon become Japan's first utility to sell power directly to a user outside its traditional sales territory, the island of Kyushu, sources familiar with the matter said. The move follows a deregulatory step that took effect this April which lowered fees for companies using power lines owned by other electric utilities. GASOLINE, KEROSENE FUTURES CONTINUE TO PLUNGE IN JAPAN NOV 2, 2005

TOKYO - Gasoline and kerosene futures dropped again on the Tokyo Commodity Exchange Tuesday, starting the day weak on low crude oil prices in New York overnight and then falling even further in the afternoon session. Because of numerous negative factors regarding supply-demand conditions, buyers increasingly squared their positions and new selling also emerged. GASOLINE, KEROSENE FUTURES PLUMMET IN TOKYO DUE TO LOW NY PRICES NOV 2, 2005 TOKYO - Gasoline and kerosene futures took a plunge on the Tokyo Commodity Exchange Monday on weak crude oil prices in overnight trading in New York. The most active May gasoline contract went limit-down, closing at 53,650 yen(US$459.37) per kiloliter, a drop of 1,600 yen. Prices declined for all other contract months as well. NIPPON OIL'S KEROSENE-BASED FUEL CELL USES HEAT FOR A/C SYSTEMS NOV 4, 2005 TOKYO - Nippon Oil Corp. (TSE:5001) has worked with Mitsubishi Heavy Industries Ltd. (TSE:7011) and others to develop a commercial kerosene-based fuel cell that is connected to a climate-control system so the heat released during the power generation process can be used for air conditioning systems. Other systems have been developed that harness the dissipated thermal energy of a fuel cell to heat water, but this is reportedly the first in the industry to tap such heat for climate-control purposes. JAPAN'S INPEX, TEIKOKU OIL EYE SPRING '06 MERGER NOV 7, 2005 TOKYO - Inpex Corp. (TSE:1604) and Teikoku Oil Co. (TSE:1601), Japan's No. 1 and No. 3 oil developers, are in the final stages of negotiations toward a merger this coming spring, The Nihon Keizai Shimbun learned Friday. Inpex is expected to be the surviving company, but the merger ratio and other details have yet to be finalized. Regardless of the fine print, however, the merged entity will become by far the biggest Japanese oil developer, with the combined sales in their previous fiscal years exceeding 560 billion yen. GASOLINE, KEROSENE FUTURES SLIDE ON FALLING IN JAPAN NOV 8, 2005 TOKYO - Gasoline and kerosene futures closed lower Monday on the Tokyo Commodity Exchange following a decline in New York crude oil prices Friday. The benchmark May gasoline futures contract fell 800 yen to close at 53, 100 yen per kiloliter. The front-month December kerosene futures contract shed 1,310 yen to close at 47,140 yen, while the most heavily traded May contract finished at 48,050 yen per kiloliter, down 450 yen. JAPAN'S TEPCO, CHUBU ELEC TO CUT RATES IN APRIL ON FALLING COSTS NOV 9, 2005 TOKYO - Tokyo Electric Power Co. (TSE:9501) and Chubu Electric Power Co. (TSE:9502) announced Tuesday that they will reduce their power rates in April 2006 by an average of around 4 per cent because of drops in personnel, construction and other electricityproducing costs. Tepco, which supplies the Tokyo metropolitan region, and Chubu Electric, the power provider to Nagoya and other parts of central Japan, will trim household and commercial rates. HYUNDAI MERCHANT MARINE LAUNCHES 310,000 TON CLASS OIL TANKER NOV 9, 2005 SEOUL - Hyundai Merchant Marine Co., South Korea's second-largest shipping company, held a ceremony Wednesday to christen a 310,000-ton class oil tanker, the company said.

The Universal Queen oil tanker will deliver crude oil from the Middle East and Africa to Asia and North America, it said. JAPANESE FIRMS DEVELOP ALL-ELECTRIC PROPANE-POWERED CONDO NOV 10, 2005 TOKYO - Mitsuuroko Co. (TSE:8131), a leading propane wholesaler, has teamed up with major homebuilder Daiwa House Industry Co. (TSE:1925) to develop a method for using the gas to power "all-electric" condominium complexes. In a country where most homes have traditionally relied on gas for hot water and cooking purposes, an all-electric home with an electric range is now a sought-after luxury, causing demand for propane gas to decline. KAWASAKI HEAVY UNIT WINS 1ST ORDER FOR SOLAR POWER SYSTEM NOV 10, 2005 TOKYO - Japan's Kawasaki Plant Systems Ltd., which is part of the Kawasaki Heavy Industries Ltd. (TSE:7012) group, announced Wednesday that it has received an order for a photovoltaic power generation system that uses a large nickel-metal hydride battery developed by Kawasaki Heavy. The company received the order, its first for the system, from a school in Yachiyo, Chiba Prefecture. The order is valued at 100 million yen (US$849,764). The system's solar power cell modules will be installed on the roof of the school gym. GASOLINE, CRUDE FUTURES SLIDE IN JAPAN; KEROSENE MIXED NOV 10, 2005 TOKYO - Gasoline and crude oil futures lost ground on the Tokyo Commodity Exchange Thursday because of lower prices in overseas markets the previous day and a loosening of supply-demand conditions in spot markets. Gasoline futures slipped for all contract months, with the most active May contract down 1,010 yen to close at 54,320 yen per kiloliter. KEROSENE FUTURES IN TOKYO REBOUND, GASOLINE MIXED NOV 15, 2005 TOKYO - Kerosene futures bounced back on the Tokyo Commodity Exchange on Monday, buoyed by gains in crude oil prices in overnight trading in New York. Kerosene futures were up for all contract months, with the most active May contract rising 320 yen to close at 47,920 yen per kiloliter. HITACHI ZOSEN HAS MACHINE TO PRODUCE CARBON NANOTUBE SHEETS NOV 15, 2005 TOKYO - Hitachi Zosen Corp. (TSE:7004) has developed a machine that can manufacture sheets of carbon nanotubes and hopes to market the sheets by 2008 to the auto industry for capacitors that can store large amounts of power for hybrid cars. The machine produces what the company calls conductive nanosheets. These are sheets around the size of a page of A4 paper that sport a dense, brushlike array of carbon nanotubes, each 10-20 nanometers in diameter and 120nm long. 4 JAPANESE OIL WHOLESALERS LIFT INTERIM PROFITS NOV 16, 2005 TOKYO - Four major oil wholesalers reported pretax profit gains in the first half through Sept. 30 as they benefited from the relatively cheap inventories built up at the beginning of the year amid soaring crude oil prices. The earnings environment has actually worsened because increases in prices of petroleum products are not keeping pace with the rise in crude oil prices.

GASOLINE, KEROSENE FUTURES MIXED IN JAPAN NOV 16, 2005 TOKYO - Gasoline and kerosene futures were mixed Tuesday on the Tokyo Commodity Exchange, with near-term contracts rising and more distant contracts falling. Gasoline contracts for December 2005 and January 2006 marked gains, but the most active May 2006 contract ended at 52,230 yen per kiloliter, down 630 yen. And while kerosene contracts for December through February 2006 also closed higher, the benchmark May 2006 contract dropped 340 yen to 47,580 yen per kiloliter. JAPAN OIL FUTURES FOLLOW NY CRUDE LOWER NOV 17, 2005 TOKYO - Gasoline, kerosene and crude oil futures tumbled Wednesday on the Tokyo Commodity Exchange after New York crude prices dipped overnight below 57 dollars a barrel. "This fueled bearish sentiment even further," said an official at Kanetsu Asset Management Co., referring to the mood during Tokyo trading hours. IDEMITSU ADDING GEAR TO MAKE GREATER USE OF HEAVY CRUDE NOV 17, 2005 TOKYO - Idemitsu Kosan Co. is further bolstering its ability to use heavy crude oil as a starting material for petrochemical base ingredients and gasoline. The firm earlier raised the production capacity of its Chiba refinery by around 10 per cent to 45,000 barrels a day, and in December will boost the capacity of its Hokkaido refinery by 10 per cent to 33,000 barrels a day. GASOLINE, KEROSENE FUTURES REBOUND IN TOKYO NOV 18, 2005 TOKYO - Gasoline and kerosene futures were up across the board Thursday on the Tokyo Commodity Exchange, reflecting the rise overnight in New York crude oil prices. The benchmark May gasoline futures contract jumped 790 yen to finish at 52,260 yen per kiloliter. JAPAN LENDS US$66 MLN FOR HAI PHONG POWER PLANT NOV 18, 2005 HANOI - The Japan Bank for International Cooperation (JBIC) has provided a US$66 million loan to help Electricity of Vietnam (EVN) construct Hai Phong Thermal Power Plant 1. The signing ceremony was held between JBIC and EVN in Hanoi on November 16. Construction on the project, which is located in the northern port city of Hai Phong, will kick off on November 27 and should be complete in three years. DJ JAPAN GOVT, RUSSIA'S GAZPROM SIGN ENERGY TIE-UP DEAL NOV 21, 2005, Prime-Tass English-language Business Newswire TOKYO, Nov 21 (Dow Jones) -- Japan's Ministry of Economy, Trade and Industry and Russia's state-owned Gazprom OAO (GSPBEX.RS) Monday reached a basic agreement to cooperate in a wide range of energy projects, a senior Japanese ministry official said Monday. The announcement follows bilateral talks held Monday afternoon by Japanese Trade Minister Toshihiro Nikai and Russia's Industry and Energy Minister Viktor Khristenko accompanying President Vladimir Putin, who is visiting Japan. The framework tie-up agreement includes Japanese support for feasibility studies in developing Russian crude oil, natural gas and gas-to-liquid fuel. The two nations aim to contribute to strengthening Asia's energy security through the tie-up. GASOLINE, KEROSENE FUTURES SURGE IN JAPAN AS TEMPERATURES SINK NOV 22, 2005

TOKYO - Gasoline and kerosene futures rose briskly on the Tokyo Commodity Exchange Monday as falling temperatures sparked demand, lifting kerosene prices and pulling up gasoline as well. All gasoline and kerosene futures reached their daily limits, except for the nearest December contracts. The most active May gasoline contract jumped 1,600 yen, closing at 53,790 yen per kiloliter. SANDEN'S NEW CO2-REFRIGERANT VENDING MACHINE CUTS ENERGY COSTS NOV 22, 2005 TOKYO - Japan's Sanden Corp. (TSE:6444) has developed a carbon-dioxide-refrigerant beverage vending machine that can reduce energy consumption compared with conventional equipment by 35 per cent. The company will begin marketing the machine in spring 2006 and aims to sell at least 1,000 units that fiscal year. MITSUBISHI PENCIL TO MASS-PRODUCE SEPARATORS FOR TINY METHANOL FUEL CELLS NOV 22, 2005 TOKYO - Mitsubishi Pencil Co. (7976) plans to mass-produce separators for methanol fuel cells, targeting the promising market of tiny fuel cells to power small devices like cell phones and music players. The company has been looking for ways to leverage its expertise with mechanical-pencil carbon materials to develop new lines of business, now that the growth in its main market for stationery goods has slowed. NIPPON OIL TO APPLY TO UN FOR VIETNAM CDM PROJECT APPROVAL NOV 22, 2005 TOKYO - Nippon Oil Corp. (TSE:5001) will apply to a United Nations entity as early as this month for approval of a Vietnamese greenhouse gas emission reduction project based on the Clean Development Mechanism (CDM) of the Kyoto Protocol. In CDM projects, businesses and others in developed countries can set up greenhouse gas emission reduction projects in developing countries and use the savings to offset their own emissions. JAPANESE INVESTORS EYE INDONESIA'S OIL, GAS, MINING SECTORS NOV 22, 2005 JAKARTA - Japanese investors have expressed their wish to increase their investment in the oil, gas and mining industry in Indonesia, Energy and Mineral Resources Minister Purnomo Yusgiantoro said here on Monday. "They came here for a discussion with us on investment in Indonesia," Purnomo said after a meeting with a Nippon Exports and Investment Insurance (Nexi) delegation with the support of the Japanese Ministry of the Economy, Trade and Industry (METI). CHEVRON AUSTRALIA SIGNS GORGON LNG DEAL WITH JAPAN'S CHUBU ELECTRIC NOV 22, 2005 SYDNEY - Chevron Australia has signed a deal to supply gas to Japanese power company Chubu Electric Co Inc from the massive Gorgon project. The two companies have signed a heads of agreement for the sale of 1.5 million tonnes of liquefied natural gas (LNG) per annum from the West Australian project over a period of 25 years, beginning in 2010. SHARP'S AQUOS MOST ENERGY-EFFICIENT FLAT-PANEL TV: NIKKEI SURVEY NOV 24, 2005 TOKYO - Sharp Corp.'s (TSE:6753) Aquos LC-37AD5 is the most power-efficient 37-inch high-definition LCD television on the market, according to a survey conducted jointly by The Nikkei Business Daily and the Nikkei Research Institute of Industry and Markets. The survey on the environmental friendliness of various products found that most plasma TVs still use more energy than LCD TVs because plasma models must light up each pixel on

the panel, while LCD sets only need to emit light from backlights. But the joint survey also found that the gap between the two rival camps is narrowing. INDIA READIES 6 DRAFT MOUS ON ENERGY TO BE SIGNED WITH JAPAN NOV 25, 2005 NEW DELHI - India is considering five to six draft Memorandums of Understanding (MoUs) to be signed with Japan in the oil and natural gas sector possibly by January next, a top official of the Ministry of Petroleum and Natural Gas said. Of these drafts the major one pertains to joint exploration and production of oil and natural gas. The second one is on strategic storage, followed by energy conservation, research and development in the hydrogen sector and synthetic hydrates. KYOCERA TO BEGIN SHIPPING LOW-COST SOLAR PANELS IN FY06 NOV 25, 2005 TOKYO - Kyocera Corp. (TSE:6971) plans to start shipping as early as fiscal 2006 a low-cost solar panel that uses just one-fifth the silicon of existing models. The new panel sharply reduces silicon usage by lining up spherical silicon measuring 1mm or less in diameter on a non-silicon substrate. The design also eliminates the need to cut the panel to make finished products, sharply lowering material waste. JAPAN UNLIKELY TO RECOVER US$394.2 MLN IN KEDO LOANS TO N KOREA NOV 25, 2005 TOKYO - With the decision by the Korean Peninsula Energy Development Organization to end a project to build two light-water nuclear reactors in North Korea, the roughly 47 billion yen (US $394.2 million) that the Japanese government loaned for the project is expected to go unrecovered. Even though the project was scrapped because North Korea broke their side of the deal, the country is not expected to pay back the borrowed funds. KEROSENE FUTURES PLUNGE IN TOKYO ON WEAK NY CRUDE NOV 30, 2005 TOKYO - Kerosene futures retrenched sharply Tuesday on the Tokyo Commodity Exchange, with the two most heavily traded contracts going limit-down in the wake of a downturn in New York crude oil prices. The most active May 2006 kerosene contract closed 1,600 yen lower at 48, 840 yen per kiloliter. KEROSENE FUTURES REBOUND IN TOKYO DEC 2, 2005 TOKYO - Kerosene futures bounced back on the Tokyo Commodity Exchange Thursday on the rebound of crude oil in New York the previous day, the weaker yen against the dollar and the weather. The most active June kerosene contract gained 680 yen to close at 48,520 yen per kiloliter. Prices were up for all other contract months as well. JAPAN GREEN FUND KICKS OFF LARGE FUNDRAISING CAMPAIGN DEC 2, 2005 TOKYO - Japan Green Fund, which seeks to build wind turbines nationwide through citizens groups, has begun soliciting funds for wind turbines that will begin operating in the Tohoku and Kanto regions during 2006 . The company aims to collect 860 million yen (US$7.1 million), an exceptionally large amount to procure through a grassroots campaign. GASOLINE, KEROSENE FUTURES IN TOKYO EXTEND GAINS DEC 6, 2005 TOKYO - Gasoline and kerosene futures continued to rise sharply on the Tokyo Commodity Exchange Friday, following the advance in crude oil prices in New York at the end of last

week. The most active June gasoline contract went limit-up, climbing 2,400 yen (US$19.83) to close at 56,920 yen per kiloliter. E-BEAM STERILIZER USES MAGNETS TO DEAL WITH COMPLEX SHAPES DEC 6, 2005 TOKYO - Power equipment manufacturer Japan AE Power Systems Co. has developed an electron-beam-based sterilizing system that can work quickly to sterilize even objects with complex shapes. Because e-beams shoot out straight, they are difficult to harness as a means of sterilizing containers and other items. Japan AE Power Systems solved the problem by designing a way of positioning magnets to control both the strength and the direction of the beam so that even objects with complex shapes can be fully exposed. JANUARY KEROSENE FUTURES CONTRACT HITS HIGH IN TOKYO DEC 7, 2005 TOKYO - Kerosene futures rallied on the Tokyo Commodity Exchange Tuesday with the front-month January futures contract reaching its highest level since being listed. The January kerosene futures contract briefly rose to a high of 60,290 yen (US$497) per kiloliter, but shed some of those gains to finish up 750 yen at 59,440 yen. The benchmark June contract ended up 1,320 yen at 53,840 yen. FUNDS INVESTED IN RESOURCE STOCKS PROVE POPULAR IN JAPAN DEC 7, 2005 TOKYO - Investors are flocking to stock funds invested in such natural resources firms as those that handle oil and gas as rising commodities prices help boost investment performance. Merrill Lynch Investment Managers Co.'s natural resources stock fund, set up in June, has seen its net asset balance climb above 30 billion yen (US$247.8 million) in six months. JAPANESE KEROSENE FUTURES JUMP WITH HIGHER NY CRUDE DEC 8, 2005 TOKYO - Kerosene futures rose sharply again on the Tokyo Commodity Exchange Wednesday, taking their cues from the overnight gains in crude oil prices in New York. The three most distant kerosene futures contracts finished limit-up, with the most active June contract jumping 1,600 yen to end at 55,400 yen (US$459.95) per kiloliter. NTT GAS FIRM VENTURE EXPANDS SERVICE AREA DEC 8, 2005 TOKYO - Ennet Corp., a new power supplier in which NTT Facilities Inc., Tokyo Gas Co. (TSE:9531), and the Osaka Gas Co. (TSE:9532), are investors, has begun supplying electricity in the area to which Tohoku Electric Power Co. (TSE:9506) provides power. To date, Ennet has been operating in the areas served by Tokyo Electric Power Co. (TSE:9501) and the Kansai Electric Power Co. (TSE:9503). Following its entrance into the northern Honshu area, Ennet will consider entering other markets in Japan as well. JAPAN EXXONMOBIL SCRAPS PLAN TO REDUCE EQUITY CAPITAL DEC 8, 2005 TOKYO - The Japan arm of Exxon Mobil Corp. announced Wednesday that it has canceled plans to slash its equity capital from 50 billion yen (US$413.7 million) to 100 million yen. The firm, ExxonMobil YK, was criticized by affiliated retailers and business partners that maintained reducing its capital by such a large amount would harm its corporate image. ExxonMobil decided that the move could affect business.

MOTOZUKA MANAGEMENT GROUP TEAMS UP WITH INDONESIA'S PANIN GROUP DEC 8, 2005 TOKYO - Japan-based Motozuka Management Group, which is involved in commodity futures transactions and securities agency services, has formed a business partnership with the Panin Group, an Indonesian financial concern. Panin will invest in MMG Securities Co., and the partners will co-develop a fund focusing on power plants and other infrastructure projects in Indonesia. They will market the fund mainly in Japan. JAPANESE GAS PRICES AT PUMP LOWEST IN 3 MONTHS ON PRICE CUT DEC 8, 2005 TOKYO - The price for a liter of regular gasoline at the pump dropped 0.5 yen to 129.5 yen on Monday, falling below 130 yen for the first time since late August, according to data released Wednesday by the Oil Information Center. This marks the sixth straight week that prices have declined since late October, when prices fell for the first time in about four months. GASOLINE FUTURES UP; KEROSENE MOSTLY HIGHER IN JAPAN DEC 9, 2005 TOKYO - Gasoline continued to climb while crude oil fell on the Tokyo Commodity Exchange on Thursday because of the decline overseas in Middle East crude the day before. Gasoline futures rose across the board, with the most heavily traded June contract rising 440 yen to close at 59,730 yen per kiloliter. JAPAN'S OIL FUTURES: KEROSENE HITS RECORD HIGH ON COOLER WEATHER DEC 13, 2005 TOKYO - The front-month kerosene contract marked a record high Monday on the Tokyo Commodity Exchange, surging on the spot market's tightening supplies as temperatures plunge. The nearest-month January 2006 kerosene contract ended 570 yen higher at 62,460 yen (US$521.75) per kiloliter, and the most active June contract closed at 58,590 yen per kiloliter, up 750 yen. JAPAN'S COSMO TO BEGIN PRODUCING CRUDE OIL IN QATAR BY EARLY JAN DEC 13, 2005 TOKYO - Cosmo Oil Co. (TSE:5007) will start pumping out around 5,000 barrels of crude a day in Qatar by early January through a local subsidiary, The Nihon Keizai Shimbun learned Monday. This will bring the major oil distributor's daily crude output to 30,000 barrels from oil fields it operates overseas. TOYO KANETSU TO BUILD OIL TANKS FOR VIETNAM'S 1ST REFINERY DEC 13, 2005 TOKYO - Japan's Toyo Kanetsu KK (TSE:6369) has received a 6.4 billion yen (US$53.4 million) order to supply 35 large oil tanks for the first oil refinery in Vietnam. The company's first large-scale order in Vietnam was placed by a consortium consisting of JGC Corp. (TSE:1963), France's Technip group and Spain's Tecnicas Reunidas SA. CHUBU ELEC-BACKED THAI POWER PROJECT TO GET US$640 MLN IN LOANS DEC 14, 2005 TOKYO - A Thai power company in which Chubu Electric Power Co. (TSE:9502) and Toyota Tsusho Corp. (TSE:8015) have stakes will enter an agreement today to receive loans totaling US$640 million, or roughly 76.8 billion yen. Ratchaburi Power Co. will sign the financing agreement with a lending group consisting of the Japan Bank for International Cooperation, Sumitomo Mitsui Banking Corp. and three others. Chubu Electric and Toyota

Tsusho founded Ratchaburi Power with Hongkong Electric Holdings Ltd., Thailand's state-run PTT Public Co. and other Thai interests. MITSUBISHI HEAVY SETS SIGHTS ON MIDEAST OIL EXPLORATION DEC 14, 2005 TOKYO - Forming a technological tie-up with Royal Dutch/Shell Group in boosting the efficiency of aging oil fields in the Middle East will open the way for Japan's Mitsubishi Heavy Industries Ltd. (TSE:7011) to make a foray into the oil exploration business. Under the deal announced Tuesday, Mitsubishi Heavy will transfer technology used to separate carbon dioxide from exhaust gas from industrial plants to the Anglo-Dutch firm. KEROSENE FUTURES IN TOKYO REBOUND ON LOWER INVENTORIES DEC 15, 2005 TOKYO - Kerosene futures rebounded Wednesday on the Tokyo Commodity Exchange in response to the increase in crude oil prices overnight in New York and the decline in domestic kerosene inventories. Kerosene futures rose across the board, with the nearestmonth contract reaching a new post-listing high. The March contract went limit-up, adding 1,200 yen (US$10.25) to finish at 62,050 yen per kiloliter. The most heavily traded June contract gained 350 yen to close at 58,630 yen per kiloliter. GASOLINE, KEROSENE FUTURES IN TOKYO PLUNGE ON NEW YORK DECLINE DEC 16, 2005 TOKYO - Gasoline and kerosene futures plummeted Thursday on the Tokyo Commodity Exchange reflecting the drop in crude oil prices overnight in New York. Gasoline futures were lower across the board, with the four most distant month contracts going limit-down. The most active June deliveries lost 1,600 yen (US$13.82) to close at 60,220 yen per kiloliter. GASOLINE, KEROSENE FUTURES DIVE IN TOKYO ON LOWER NEW YORK CRUDE DEC 19, 2005 TOKYO - Gasoline and kerosene futures plunged on the Tokyo Commodity Exchange Friday due to weak crude oil prices in overnight trading in New York. The most active June gasoline contract went limit-down, closing at 57,820 yen (US$497.37) per kiloliter, a drop of 2,400 yen. Prices declined for all contract months. INPEX-TEIKOKU ALLIANCE TO DEEPEN TIES WITH NIPPON OIL DEC 20, 2005 TOKYO - Inpex Corp. (TSE:1604), Teikoku Oil Co. (TSE:1601) and Nippon Oil Corp. (TSE:5001) announced Monday that they will strengthen cooperation in the oil field development business. Inpex and Teikoku Oil are to set up a joint holding company in April 2006 and eventually merge in June 2008. OIL FUTURES: JANUARY KEROSENE MARKS FRESH RECORD HIGH IN JAPAN DEC 21, 2005 TOKYO - A cold spell gripping Japan helped kerosene futures' nearest-month January 2006 contract reach a fresh all-time high Tuesday on the Tokyo Commodity Exchange, with the price going up 1,940 yen (US$16.58) to close at 68,420 yen per kiloliter. Kerosene's most active June 2006 contract also finished higher, edging up 70 yen to 53,100 yen. M'BISHI HEAVY PLANS TO TRIPLE WIND POWER OUTPUT CAPACITY DEC 22, 2005 TOKYO - Mitsubishi Heavy Industries Ltd. (TSE:7011) plans to triple annual production capacity for its wind power generation systems from the current level of about 200 units to

600-700 over the next two years to meet growing demand, particularly in the U.S. Spending about 1 billion yen (US$8.5 million), the firm will improve a Mexican plant established in 2002 by a U.S. materials producer and U.S. subsidiary Mitsubishi Power Systems Inc. COLD SPELL DRIVES JAPAN'S KEROSENE PRICES TO RECORD HIGH DEC 22, 2005 TOKYO - The national average price of kerosene at gas pumps Monday hit 1,263 yen (US$10.75) per 18 litres, marking an all-time high, according to data released Wednesday by the Oil Information Center. Kerosene prices rose 10 yen on the week, pushed up by a tightening in supply-demand conditions. Since this month's cold snap, demand has surged, causing inventories at a number of oil companies to plunge. OIL FUTURES: COLD HELPS KEROSENE MAINTAIN UPTREND IN JAPAN DEC 22, 2005 TOKYO - Growing demand stemming from the recent cold weather helped kerosene futures continue their rise on the Tokyo Commodity Exchange this Wednesday, with the frontmonth January 2006 contract hitting 68,780 yen (US$585) per kiloliter, up 360 yen, for a ninth straight day of record highs. In addition, kerosene's bellwether June 2006 deliveries jumped 1,470 yen to 54,570 yen. J-POWER TO BUILD US$852 MLN COAL-GAS POWER PLANT BY 2012 DEC 28, 2005 TOKYO - Japan's Electric Power Development Co. (TSE:9513), also known as J-Power, said Tuesday that it would construct by 2012 a coal-gas power plant for about 100 billion yen (US$852.3 million), using original technology to generate the fuel gas. With output power of 250,000kw, this facility will operate using coal gas, whose main components are hydrogen and carbon monoxide. JAPAN'S INT'L FINANCING BANK TO LEND US$50 MLN TO KAZAKHSTAN DEC 28, 2005 MOSCOW - The Japan Bank for International Cooperation (JBIC) on Wednesday will sign a US$50 million financing agreement with the Development Bank of Kazakhstan as part of efforts to support infrastructure development in the oil-rich central Asian nation. The JBIC will grant the loan in cooperation with Mizuho Corporate Bank, with Mizuho's lending portion guaranteed by the JBIC. The Kazakhstan bank will then extend financing to businesses involved in the development of ports and other infrastructure that supports the nation's energy exports. MITSUI CONSORTIUM WINS 25-YEAR PETRONET LNG TANKER CONTRACT DEC 29, 2005 MUMBAI - A consortium led by Japan's Mitsui OSK Lines has won Petronet LNG Ltd's contract to carry liquified natural gas from Qatar to Gujarat for 25 years. Mitsui partnered with fellow companies NYK Lines and K Line, and with Shipping Corporation of India to outbid a consortium led by Belgian EXMAR in a price re-bid. JAPANESE COS KEEN TO TAKE PART IN TURKMEN OIL & GAS PROJECTS DEC 30, 2005 ASHGABAT - Representatives of Japan's largest companies stated their intention to take part in implementation of new projects in the oil and gas sphere in Turkmenistan. This topic was on agenda of the 6th Japanese-Turkmen joint committee on economic cooperation in Tokyo. A top-rank delegation of Turkmenistan led by deputy prime-minister Dortkuli Aydogdiyev participated in the meeting on the instructions by Turkmen President Saparmurat Niyazov.

LAOS MEKONG HYDRO PLANTS REVIVED Oct 11, 2005 , Water Power Magazine http://www.waterpowermagazine.com/story.asp?sectioncode=130&storyCode=2031732 Thailand's Alternative Energy Development and Efficiency Department is reviewing plans for two hydroelectric dam projects on the Lower Mekong river. The proposed Pamong and Ban Koum dams on the Mekong river near Loei and Ubon Ratchathani provinces would be the first dams on the Lower Mekong river, which runs through Cambodia, Laos, Thailand and Vietnam. A US$2.4M feasibility study for the projects is underway with Panya Consultants conducting preliminary studies at seven potential sites. THAILAND RATCHABURI HOLDING INVESTS 2,350 MILLION BAHT IN JOINT-VENTURE HYDROELECTRIC POWER PROJECT OF NAM-NGUM 2 IN LAOS NOV 4, 2005, Global News Wire, Thai Press Reports Ratchaburi Holding has acquired 25% equity of SouthEast Asia Energy Company Limited. The investment will increase its installed capacity for 153 Megawatts. Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) signed the Shareholders Agreement and acquires for 25% share holding stake of SouthEast Asia Energy Company Limited (SEAN), an operator of hydroelectric power project of Nam Ngum 2 in Loa People's Democratic Republic (Lao PDR) from CH. Karnchang Public Company Limited after the Company has reviewed and negotiated all the terms and conditions of the Shareholders Agreement. Under the agreement, the shareholder structure of SouthEast Asia Energy Company Limited comprises as below: 1. CH. Karnchang Public Company Limited, holding a 28.5% stake 2. Lao People's Democratic Republic (Lao DPR), holding a 25% stake 3. Ratchaburi Electricity Generating Holding PCL., holding a 25% stake 4. Bangkok Expressway Public Company Limited, holding a 12.5% stake 5. P.T. Construction & Irrigation Co., Ltd., holding a 4% stake 6. Shlapak Development Company, holding a 4% stake 7. Team Consulting Engineering and Maintenance Co., Ltd., holding a 1% stake Presently, SouthEast Asia Energy Company Limited has the registered capital of 400 million Baht, a total of 40,000,000 shares at 10 Baht per share, which is paid-up capital of 175 million Baht. On November 3, 2005, the Company has paid 43.75 million Baht or 25% of 175 million Baht. After that, SEAN expects to increase the registered capital to 9,400 million Baht and the Company will gradually pay the investment according to the fund needed for project development by its shareholding proportion. Therefore, the Company's total investment will amount to 2,350 million Baht. The hydroelectric power project of Nam Ngum 2, which holds a long-term Power Purchase Agreement (PPA) with EGAT PCL., is located 35 kilometers north of Nam Ngum 1 in the People Democratic Republic of Loas. It has the total generating capacity of 615 Megawatts. The project will begin supplying electricity power to Thailand in September 2010. Thus, the investment will increase another 153 Megawatts of the Company's total installed capacity to 4,498 Megawatts. Ratchaburi Electricity Generating Holding PCL is a Thailand leading investment firm in power generation business. At present, the Company has invested in 4 power plant projects namely; 3,645-Megawatt Thermal and Combined-Cycle Power Plant of Ratchaburi located in Ratchaburi Province, sharing 350Megawatt Combined-Cycle Power Plant of Tri Energy located in Ratchaburi Province, sharing 350-Megawatt Combined-Cycle Power Plant of Ratchaburi Power located in Ratchaburi Province, and sharing 153-Megawatt Hydroelectric Power Plant of Nam Ngum 2 located in Lao PDR. RATCHABURI INVESTS B2.35BN TO TAKE STAKE IN OPERATOR OF LAOS PROJECT NOV 7, 2005, Ploy Chitsomboon, Bangkok Post, Thailand

Ratchaburi Electricity Generating Holding Plc is investing 2.35 billion baht in the Nam Ngum 2 hydroelectric power project in Laos. The project is expected to boost Ratchaburi Electricity's production capacity by 153 megawatts to nearly 4,500 MW. Ratchaburi Holding agreed to buy a 25 percent stake in Southeast Asia Energy Ltd (SEAN), a subsidiary of Ch. Karnchang Plc and the operator of the project. SEAN has registered capital of 400 million baht and 175 million baht in paid-up capital. On Nov 3, Ratchaburi paid 43.75 million baht, or 25 percent of the total paid-up capital for the stake. SEAN expects to increase its registered capital to 9.4 billion baht with the investment paid up based on the funding requirements of the project by the shareholders in proportion to their holdings. Other major shareholders in the project include Ch. Karnchang with a 28.5 percent stake, the Laotian government with a 25 percent stake, Bangkok Expressway Plc (12.5 percent), P.T. Construction & Irrigation (4 percent), Shlapak Development Company (4 percent) and Team Consulting Engineering and Maintenance (1 percent). The Nam Ngum 2 hydroelectric power plant, located 35 kilometres north of the Nam Ngum 1 project, has total capacity of 615 MW. The project, which has a 25-year power purchase agreement with the Electricity Generating Authority of Thailand, is expected to begin supplying electricity power to Thailand in September 2010. Aside from the investment in the Nam Ngum 2 project, Ratchaburi has invested in three other plants: 3,645 MW thermal and combined-cycle power plant in Ratchaburi province, a 350 MW combined-cycle plant in partnership with Tri Energy, and a 350 MW combined-cycle plant of Ratchaburi Power. Shares of Ratchaburi (RATCH) closed on Friday at 39.25 baht, up 25 satang, in trade worth 12.75 million baht. MALAYSIANS TO EXPLORE COAL, TIN MINING PROSPECTS IN VIETNAM AND LAOS Nov 8, 2005 KUALA LUMPUR - Natural Resources and Environment Minister Adenan Satem will lead a Malaysian delegation to Vietnam and Laos from Nov 8-16 to explore investment prospects in coal and tin mining. He said the Malaysian investors hoped to sign several memoranda of understanding with their partners in the two countries by year-end. RATCHABURI TO BOOST CAPACITY OF LAOS PROJECTS TO 1,000 MW NOV 10, 2005, Bangkok Post, Thailand Ratchaburi Electricity Generating Holding Plc is targeting to boost its production capacity to 1,000 megawatts from projects in Laos. Thawat Vimolsalavong, Ratchaburi's deputy managing director for business ventures and acting managing director, said the company expected to commit to taking at least 25 percent stakes in one or two more projects in the neighbouring country next year. The company is already investing 2.35 billion baht to acquire a 25 percent stake in Southeast Asia Energy Ltd (SEAN), a subsidiary of Ch. Karnchang Plc and the operator of the 615-MW Nam Ngum 2 hydroelectric power project in Laos. The project is expected to boost Ratchaburi Electricity's production capacity by 153 MW to nearly 4,500 MW and will begin supplying electricity power to Thailand in 2010. Ch. Karnchang holds a 28.5 percent stake in the project. Other shareholders include the Laotian government with a 25 percent stake, Bangkok Expressway Plc (12.5 percent), P.T. Construction & Irrigation (4 percent), Shlapak Development Company (4 percent) and Team Consulting Engineering and Maintenance (1 percent). Mr Thawat also said Ratchaburi's Thermal Power Plant Unit 1 would resume operations on Nov 24 after being damaged by a fire last month. He declined to give an estimate of the damages incurred, which would affect fourth-quarter results. For the third quarter of this year, the company announced a net profit of 1.48 billion baht or 1.02 baht per share compared to 1.89 billion baht or 1.31 baht per share registered in the same period last year. The decline in profit was due mainly to a sharp increase in maintenance costs which were 256.6 million baht in the quarter compared with 38.9 million baht in the same period last year. Ratchaburi recorded a net profit of of 5.48 billion baht or 3.78 baht per share for the first nine months of this year, up 10.62 percent from the same period last year, on total revenue of 34.78 billion baht, a gain of

15.01 percent from the same period last year. Of the total revenue, 34.25 billion baht was generated from electricity sales. Shares of Ratchaburi closed yesterday on the Stock Exchange of Thailand at 39 baht, unchanged, in trade worth 10.8 million baht. ELECTRICITY GENERATING HOLDING CO. SIGNS PACT TO BUY 25% STAKE IN 615-MW PROJECT IN LAOS NOV 17, 2005, Global Power Report Ratchaburi Electricity Generating Holding Co. PLC of Thailand has signed an agreement to buy a 25% stake in the 615-MW Nam Ngum-2 hydroelectric project in Laos. REGH, a subsidiary of state-owned utility EGAT PLC, bought the stake in the project company, Southeast Asia Energy Ltd., for $57 million from Thailand's Ch. Karnchang PLC. Other partners in the $780 million project include Ch. Karnchang, which now has a 28.5% stake, the Laotian government with a 25% stake, Bangkok Expressway with 12.5%, P.T. Construction & Irrigation with 4%, Shlapak Development Co. with 4%, and Team Consulting Engineering and Maintenance with 1%. The project has a 25-year power purchase agreement with EGAT and is due on line in 2010. The tariff has been set at of 5 cents/kWh. REGH Managing Director Boonchoo Direksathaporn said last June that the company was negotiating to buy a stake in the project. "The decision to invest in this project is part of the company's business plan to enhance its growth by adding value for our shareholders and stakeholders for the maximum benefit,'' he said. He also said that with the latest investment, REGH would look for more investment opportunities in Laos' generation sector. The Nam Ngum PPA is part of the Thai government's plan to purchase 3,000 MW from Laos. So far, EGAT has signed deals with developers of three projects in Laos that between them have about 1,800 MW of capacity. HYDROPOWER DAM IN LAOS TO SECURE POWER SUPPLY FOR THAILAND NOV 28, 2005 BANGKOK - The Prime Ministers of Thailand and Laos on Sunday jointly presided at the foundation stone laying ceremony for the construction of the Nam Theun 2 (NT2) hydropower project in central Laos that will help provide a secure future power supply for Thailand and earn Laos hard currency to further develop the landlocked country's economy. Nam Theun 2 is a 1,070 megawatt hydropower scheme. MALAYSIA PETRONAS AWARDED FIRST OFFSHORE BLOCK IN SUDAN SEPT 1, 2005 KUALA LUMPUR - Petroliam Nasional Berhad (Petronas) has been awarded Sudan's exploration Block 15, marking the Malaysian state-owned oil giant's entry into the offshore operation in the country. Petronas, which has been involved in onshore exploration in Sudan since 1997, signed the Exploration and Production Sharing Agreement (EPSA) for the block, the first gas EPSA in Sudan, in Khartoum on 30 August 2005. MALAYSIA'S SAPURACREST PETROLEUM POSTS HIGHER H1 PRE-TAX PROFIT SEPT 20, 2005 KUALA LUMPUR - SapuraCrest Petroleum Berhad (KLSE:8575) has booked an interim group pre-tax profit of RM65.08 million (US$17.3 million), a jump of 51.7 per cent year-on-year due to strong contributions from most key divisions. Group revenue for the six months ended 31 July 2005 came to RM855.268 million, an increase of 106 per cent over the same period a year earlier, it said in a filing to Bursa Malaysia on Monday. PETRONAS SIGNS TWO JOINT EFFORT DEALS WITH UZBEKISTAN OCT 5, 2005

KUALA LUMPUR - Petroliam Nasional Berhad (Petronas) plans to establish a long-term presence in Uzbekistan's oil and gas sector with the signing of a Memorandum of Cooperation (MOC) and a Joint Study Agreement (JSA) with its national oil firm, Uzbekneftegaz National Holding Company (UNG). The MOC and JSA were signed by Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn Bhd, the Malaysian stateowned oil firm said in a statement on Oct 3. PETRONAS, UZBEKNEFTEGAZ INK TWO DOCUMENTS ON COOPERATION OCT 5, 2005 TASHKENT - Petroliam Nasional Bhd (Petronas) is stepping up its presence in Uzbekistan in a proposed tie-up with the country's national oil company, Uzbekneftegaz National Holding Company. In a statement dated 3 October, Petronas said its subsidiaries Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn Bhd had signed a memorandum of cooperation (MOC) and a joint study agreement (JSA) with Uzbekneftegaz. CONSORTIUM OF MALAYSIA'S MMC TO BUILD SABAH POWER PLANT OCT 14, 2005 KUALA LUMPUR - MMC Corporation Berhad (MMC) (KLSE:2194) on Thursday announced that a consortium that includes its 70 per cent-owned subsidiary, Tepat Teknik Sdn Bhd (TTSB), has been awarded a contract to build a 100MW gas-fired power plant in the East Malaysian state of Sabah. The other partners in the consortium are Mitsubishi Corporation and Mitsubishi Heavy Industries Ltd. MALAYSIA'S UMW TO ACQUIRE 60 PCT STAKE IN AUSTRALIAN CO OCT 14, 2005 KUALA LUMPUR - UMW Holdings Berhad said its wholly-owned subsidiary, UMW Petropipe (L) Ltd, has signed a Memorandum of Understanding (MOU) to acquire a 60 per cent stake in PFP Holdings Pty Ltd from Montague Holdings Int Pty Ltd. UMW's statement to Bursa Malaysia on Oct 13 did not provide financial details of the MOU. GAIL INDIA EXPLORES SOURCING LNG FROM AUSTRALIA, MALAYASIA OCT 17, 2005 KOCHI - GAIL (BSE:532155) was "actively exploring" sourcing LNG from five countries, including Australia, Abu Dhabi, Oman and Malaysia for its Dahej plant and proposed Kochi terminal. "We are looking at multiple sources. The situation is dynamic and we have assured Chief Minister Oommen Chandy that by September 2009 the Kochi LNG terminal will be completed and re-gasified LNG would flow from it," GAIL chairman and managing director Prashanto Banerjee told reporters here. JV OF MALAYSIA'S MELEWAR ACQUIRES STAKE IN SIAM POWER OCT 24, 2005 KUALA LUMPUR - Melewar Industrial Group Berhad (MIG) (KLSE:3778) on Friday announced that M-Power TT Ltd, its 75 per cent-owned joint venture, has signed an agreement with Power Pte Ltd to acquire a 55 per cent stake in Siam Power Generation Company Ltd (SIPCO) for US$22.0 million cash. TransTurbo Engineering Sdn Bhd owns a 25 per cent stake in M-Power. MALAYSIA'S OILCORP SIGNS MOU WITH INDONESIA'S ENERGI UTAMA OCT 24, 2005 KUALA LUMPUR - Oilcorp Berhad (KLSE:3697) has signed a Memorandum of Understanding (MOU) with PT Energi Utama to invest in various projects in Indonesia. The signing of the MOU on Oct 21 was witnessed by representatives from Malaysia's Foreign Ministry and Indonesia's Foreign Ministry.

MALAYSIA'S MALAKOFF POSTS 18 PCT RISE IN YEAR PRE-TAX PROFIT OCT 28, 2005 KUALA LUMPUR - Malakoff Berhad (KLSE:2496) has booked an 18 per cent rise in group pre-tax profit of RM876.301 million (US$232 million) for the twelve months to 31 August 2005 due to higher interest income and contributions from associated company Kapar Energy Ventures Sdn Bhd. The group's profit after tax and minority interests for the year improved 10.9 per cent to RM510.642 million, the independent power producer said in a filing to Bursa Malaysia on Oct 27. ANALYSIS - ASIAN COUNTRIES MOVE TO CUT OIL SUBSIDIES NOV 7, 2005 Analysis from Asia Today - Asian countries have moved swiftly to reduce oil subsidies costing billions of dollars, to relieve the unbearable burden on their budgets. Thailand, Indonesia and Malaysia have announced plans to remove or reduce fuel subsidies by 2006. Subsidies are a huge problem for developing countries, says William Ramsay, Deputy Executive Director of the International Energy Agency (IEA). 449,656 MALAYSIANS TO EXPLORE COAL, TIN MINING PROSPECTS IN VIETNAM AND LAOS NOV 8, 2005 KUALA LUMPUR - Natural Resources and Environment Minister Adenan Satem will lead a Malaysian delegation to Vietnam and Laos from Nov 8-16 to explore investment prospects in coal and tin mining. He said the Malaysian investors hoped to sign several memoranda of understanding with their partners in the two countries by year-end. MALAYSIAN COMPANY TO INVEST US$1 BLN IN PAKISTAN NOV 9, 2005 KARACHI - A Malaysian investment holding company, Eden Enterprises, plans to invest US$1 billion in the energy, housing, tourism and construction sectors in Pakistan. The proposed investment includes the development of two power plant projects jointly with the local partners. Board of Investment (BoI) Director General Riaz-ul-Haq was quoted as saying by Business Times of Kuala Lumpur that the Malaysian company was working on a plan to invest in a 655MW capacity hydro-electric power project in Mansehra in the northern areas of Pakistan. MALAYSIA'S TANJUNG WINS CONTRACT FROM PETRONAS CARIGALI NOV 9, 2005 KUALA LUMPUR - Tanjung Offshore Berhad (KLSE:7228) on Monday announced that its wholly-owned subsidiary, Tanjung Offshore Services Sdn Bhd (TOS), has won a RM7 million (US$1.9 million) contract to supply reciprocating gaslift compressors to the Abu Cluster Development Project located off the coast of Terengganu. TOS received a letter of award dated 31 October 2005 from Petronas Carigali Sdn Bhd, the operating arm of Malaysian state-owned oil firm Petroliam Nasional Berhad (Petronas), Tanjung said in a statement to Bursa Malaysia. PETRONAS DAGANGAN REPORTS 37 PCT RISE IN H1 PRE-TAX PROFIT NOV 25, 2005 KUALA LUMPUR - Petronas Dagangan Bhd (KLSE:5681) has chalked up an interim group pre-tax profit of RM171.642 million (US$45.4 million), up 37 per cent from the same period a year earlier. Group revenue jumped 36.1 per cent on-year to RM8,039.445 million during the six months to 30 September 2005, it said in a filing to Bursa Malaysia on Nov 23.

MALAYSIA'S OILCORP TO UNDERTAKE EPCC PROJECT IN PUTRAJAYA NOV 25, 2005 KUALA LUMPUR - Oilcorp Berhad (KLSE:3697) announced that its wholly-owned subsidiary, Oil-Line Engineering & Associates Sdn Bhd, and its joint-venture partner, PT Technic (M) Sdn Bhd (PTT), have been instructed to undertake a contract for the Engineering, Procurement, Construction and Commissioning (EPCC) of Putrajaya Precinct 1 Cogeneration/District Cooling Annex Plant Project Stage 2 by Gas District Cooling (Putrajaya) Sdn Bhd (GDC). The contract is valued at about RM24.38 million (US$6.4 million), Oilcorp said in a statement to Bursa Malaysia on Nov 24. NEPAL B'DESH MAY BARTER WITH INDIA ON GAS PIPELINE FOR ROUTE TO NEPAL SEPT 6, 2005 DHAKA - Bangladesh modified its preconditions for allowing the planned tri-nation gas pipeline through its territory, apparently offering a tradeoff for transit to Nepal through India. As per the new stance, Bangladesh wants to resolve two issues: export to Nepal through Indian Corridor and the import of hydropower from Nepal through Indian territory, in one package to barter for the tri-nation gas-pipeline project. BIMSTEC FOR CROSS-COUNTRY POWER TRANSMISSION GRID OCT 6, 2005, The Daily Star URL:http://www.thedailystar.net/2005/10/06/d5100601044.htm Seven South and South East Asian countries, including Bangladesh, agreed on Tuesday to explore the possibility of having an electricity transmission network among them. It could be achieved by developing an inter-connectivity grid between the countries to facilitate the flow of electricity across the region, an official statement of the countries said.. The statement was issued at the end of the daylong conference of energy ministers and officials of the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (Bimstec). India, Bangladesh, Nepal, Bhutan, Myanmar, Thailand and Sri Lanka are in the economic group. The proposed power grid would run from Thailand to Sri Lanka and Thailand would head a task force to work out the draft memorandum of understanding (MoU) for the inter-country grid connections. The task force, which will submit its report within a year, would also take into account crucial factors like flow of electricity between the member countries without discrimination. The conference also reached a consensus on the feasibility of a trans-regional natural gas pipeline. "The conference recognised the need for detailed feasibility studies and techno-economic agreements between and among participating countries to allow optimal utilisation of natural gas resources in the region," the statement said. The conference produced an action plan for the cooperation among Bimstec countries to ensure energy security in the region. The plan also covered the tapping of hydrocarbon potential in the region and exchanging unconventional sources of energy as well as building energy security and energy efficiency in the region. On the gas pipeline, the member countries agreed to form a separate task force to work out the terms of reference and to recommend the course of action after taking into account the work done on such a pipeline. Thailand would host the first meeting of the task force on the gas pipeline early next year, Indian Power Secretary RV Shahi said. He said a Bimstec Centre for Energy is likely to come up next year to enable member countries to share experiences in reforms, restructuring, regulation and best practices in the energy sector. The location for the proposed centre is yet to be decided. There was no concrete form of cooperation in the unconventional sources of energy but it was felt that member countries could focus on small hydro projects, solar energy and generation of electricity from rice husk. The Bimstec countries would draw on each other's experiences on rural electrification as well as on

efficient development of coal resources. Cooperation in the energy sector is one of the main areas identified by the Bimstec countries when the economic group was set up in 1997. REDUCE COST TO SELL POWER TO INDIA: PTCI NOV 21, 2005, Himalayan News Service, Kathmandu, November 21: Chairman and managing director of Power Trading Corporation of India (PTCI), Tantra Narayan Thakur, said today that power-hungry northern India would be ready to buy energy from Nepal provided that the latter is be able to sell electricity to India at a rate lower than what costs in India. Thakur, who played a significant role in making amendments in the India's Electricity Act 2003, made this remark while addressing a talk programme organised by Independent Power Producers' Association, Nepal. "Why does Nepal have higher cost of electricity generation than India and Bhutan?" he asked. He said if Nepal wanted to reap economic benefits from exporting energy to India she needs to reduce electricity cost, attract private sector to investment in hydroelectric projects, maximise public revenues and ensure energy security. India is the third largest power industry in Asia whose current power production stands at about 1,15000 MW and still faces a deficit of about 75,000 MW. He also suggested that the governments of India and Nepal should not engage in determining prices of hydroelectricity sale and let the market, the producers and buyers decide the price of electricity sold to either side. Despite the fact that Nepal has potential of generating commercially-feasible 43,000 MW of energy, less than one per cent of its vast resources have been tapped so far and the power tariff in Nepal is one of the highest in the world. Thakur said due to close proximity, Nepal could sell environment-friendly energy to India during the monsoon season while India can sell the former during the dry season through power produced from thermal plants. Some exchange of power trade is taking place between the two countries across the border, but just between 30 and 40 MW. "Since fuel market is being globalised, Nepal also needs to develop her competitiveness to reap benefits from her vast water resources," Thakur said, pointing to the need of improving utilisation of existing resources. He said regional energy security would give an added value to a small countrys like Nepal and Bhutan, which are rich in hydropower potentials. Sandip Shah, president of IPPAN, said lack of political will, high cost of power generation in Nepal due to the location of power plants in remote areas, lack of financing and inefficient marketing of power in India were some of the major barriers towards sustainable and speedy development of Nepal's hydropower. Former chairman of IPPAN Prabhakar SJB Rana, who chaired the session, said Nepali mindset about the proper utilisation of Nepal's water resources sector should be changed if she wished to benefit from her untapped resources. NEPAL SHOULD CUT HYDRO GENERATING COST TO TAP INDIAN MKT: EXEC NOV 23, 2005 KATHMANDU - Nepal should cut the cost of generating hydro-electricity power to tap the vast Indian market and to revive long dormant power ties between the two countries, T N Thakur, managing director of India's Power Trading Corporation (PTC) said on Tuesday. "Why does Nepal have a higher cost of generating electricity than India and Bhutan when all other conditions in these countries are similar to that of Nepal?" he wondered. INDIAN PM OUTLINES NEW VISION FOR SAARC AT REGIONAL SUMMIT NOV 12, 2005, BBC Monitoring International Reports The Indian prime minister has called for zero-tolerance on cross-border terrorism and "a collective commitment" to fight "the scourge of terrorism". Addressing the 13th SAARC summit in the Bangladesh capital Dhaka, Manmohan Singh urged a new approach to face regional and international challenges with supranational solutions and said India backed putting aside historical and political divisions to create "a new architecture for mutually beneficial economic partnership". The Indian news agency report said he also stressed the need for speedy strategic regional cooperation within the wider Asian context and called for

improved regional transport infrastructure and a South Asia energy dialogue to tap potential, as well as a regional food bank against shortages and disasters. Following is text of report by Indian news agency PTI: Dhaka, 12 November: Outlining a new vision for SAARC (South Asian Association for Regional Cooperation), India's Prime Minister Manmohan Singh on Saturday [12 November] asserted that there should be "zero tolerance" for cross-border terrorism among member states and made far-reaching proposals for stepping up economic cooperation, enhanced air connectivity and setting up of a regional mechanism for disaster relief and management. Addressing the twice-deferred SAARC Summit here, he said no SAARC nation should allow its territory to be used against the interests of another member state. "There should be zero tolerance for cross-border terrorism and for the harbouring of hostile insurgent groups and criminal elements," he stressed. India has been concerned over terror camps operating in Pakistan as also northeastern insurgent groups operating from Bangladesh. "It is only in an environment of mutual confidence and a collective commitment against the scourge of terrorism, that we can register the progress we desire in more intense interaction," he said. Underscoring the need for regenerating the arteries of transport and communication in the region, Manmohan Singh suggested that the South Asian countries should agree to provide to each other, reciprocally, transit facilities to third countries, not only connecting one another but also connecting to the larger Asian neighbourhood, in the Gulf, Central Asia and the Southeast Asia. "India, which borders each of the members of South Asia, is willing to do so," he said. Highlighting the need for improved air services among SAARC countries, Singh took the initiative announcing that India was prepared to offer to all SAARC neighbours "on a reciprocal basis and without prejudice to existing rights, the facility of daily air services by designated airlines" to Indian cities, Delhi, Mumbai [Bombay], Chennai [Madras], Bangalore, Hyderabad and Kolkata besides 18 other destinations all across India. The prime minister followed this up by offering designated airlines of SAARC countries the facility to exercise fifth freedom rights, both intermediate and beyond, with the SAARC region, also on a reciprocal basis. In his address, Singh indicated the need for countries to change their mindsets. "The challenges we face as a region and as members of the larger international community are no longer susceptible to purely national solutions," he said. "There is an imperative need to change and overcome the divisions of history and politics to forge a new architecture of mutually beneficial economic partnership. India, for its part, remains ready for this endeavour," he said. The summit of the seven-nation grouping comprising India, Bangladesh, Pakistan, Sri Lanka, Nepal, Maldives and Bhutan, was first postponed in January in the wake of the tsunami disaster and again in February when India pulled out expressing serious concern over the security situation in Bangladesh and developments in Nepal. Unprecedented security apparatus has been put in place manned by over 30,000 personnel to ensure that the summit went off peacefully. Observing that food security was a major challenge for all South Asian countries, Singh recommended establishment of Regional Food Bank to which all member states would contribute. This could be used to meet shortages and losses caused by natural calamities in any of these countries, he said. Emphasizing the need for promoting regional cooperation in strategizing for the future, the prime minister proposed a South Asian Energy Dialogue involving experts, academics, environmentalists, officials and NGOs, to recommend measures to tap this potential. The prime minister regretted that not a single project proposal had been received relating to utilization of the Poverty Alleviation Fund for which India had offered to contribute 100m dollars a year back on the understanding that this money would be used entirely on projects with SAARC but outside India. India, he said, welcomed the decision to merge the different existing and proposed funds into an Umbrella South Asian Development Fund with different windows for different purposes. As a step in the direction of creating a South Asian Economic Union by 2020, Singh recalled that at the July ministerial meeting it was recommended that a SAARC High Economic Council be set up, which could promote initiatives in economic, trade, finance and monetary areas with a view to moving towards regional economic integration. Noting that

South Asia possesses a very rich and living tradition of exquisite handicrafts and textiles, he conveyed India's readiness to establish a SAARC Museum of Textiles and Handicrafts. The museum could sponsor training of craftsmen, foster design skills, hold promotional events such as fashion-shows and demonstrations by artisans and also undertake research, the prime minister said, adding setting up of retail outlets in each of the SAARC capitals could be explored to promote their textiles and handicrafts regionwide. Singh also announced India's offer to hold a South Asian Car Rally in the run-up to hosting the next summit in the first half of January 2007. It would symbolize vividly regional identity of SAARC and also underline the urgent need to improve transport infrastructure in these countries, he said. To provide an enabling environment and world class facilities to talented people in the region, the prime minister suggested that the member states pool their resources to create a centre of excellence in the form of a South Asian University. India is willing to make a major contribution to the realization of this project over the next three to four years, he said. Observing that regional economic cooperation in South Asia has fallen far short of expectations, he hoped that SAFTA [South Asian Free Trading Agreement] would come into force by 1 January 2006. Contending that it was important to assess South Asia regional cooperation in the larger Asian context, the prime minister said today, ASEAN was evolving rapidly into a truly integrated economic community. "My question is, is SAARC prepared to be an integral part of this emerging Asian resurgence or is it content to remain marginalized at its periphery? "If our region wishes to be a part of the dynamic Asia, which is emerging in our neighbourhood, then we must act and act speedily," he stressed. Referring to disasters afflicting the region, he said the summit should evolve regional mechanisms for effective and timely cooperation in disaster relief and management. India's offer to host the SAARC Centre for Disaster Preparedness has been accepted by all member states. He said the possibilities for meaningful cooperation range from early warning systems to relief and reconstruction. Source: PTI news agency, New Delhi, in English 0813 gmt 12 Nov 05 PACIFIC PNG POWER WORKERS VOTE ON STRIKE SEPT 14, 2005 PORT MORESBY - PNG Power workers in selected provincial centres have begun voting to decide on possible strike action, The National reports. PNG Energy Workers Association (PNGEWA) secretary general Philip Kaira told reporters Electoral Commission officials conducted polling Monday in the Western Highlands capital Mt Hagen and Goroka and Yonki in the Eastern Highlands. US SHOWS INTEREST IN PNG CARBON TRADE: PNG MINISTER SEPT 26, 2005 PORT MORESBY - Papua New Guinea (PNG) has presented its proposal on carbon trade to the United States government, which has taken interest in it, according to Foreign Affairs and Immigration Minister Sir Rabbie Namaliu. Sir Rabbie, who just returned from the United Nations world leaders meeting in New York, told reporters that the United States invited PNG to outline its proposal on Carbon Trading at Capitol Hill, Washington D.C. SOLOMON ISLANDS WANTS JAPANESE HELP FOR HYDROPOWER PROJECTS SEPT 27, 2005 HONIARA - The Solomon Islands is to ask Japan to consider establishing hydropower projects in various parts of the country. This is in light of rising fuel prices on the international market. HIGH FUEL COSTS HIT MARSHALL ISLANDS SEPT 30, 2005

MAJURO - Local businesses in the remote Marshall Islands are reeling from fuel price hikes, which in some cases have risen 50 per cent in a year, Mariana Variety reports. Air Marshall Islands, the country's domestic carrier, was forced to raise its ticket prices at the beginning of September for the first time in 13 years only to see ticket revenue drop by 35 per cent, as passenger numbers plummeted. SANTOS EDGES TOWARDS STAKE IN US$3.5 BLN PNG GAS PROJECT OCT 3, 2005 NEW YORK - Papua New Guinea-focused oil and gas producer Oil Search Ltd (ASX:OSH) says Santos Ltd (ASX:STO) is close to taking a stake in the $US3.5 billion PNG gas project. Santos has been in talks about taking an equity stake in the project, which will take gas from the PNG/Australian border to the Australian market. BHP OPTS OUT OF USING GAS FROM PNG-AUSTRALIA PIPELINE OCT 7, 2005 MELBOURNE - The A$3.5 billion (US$2.65 billion) gas pipeline between Papua New Guinea and Australia suffered a setback with BHP Billiton (ASX:BHP) opting not to use the pipeline's gas for its Olympic Dam project. The mining giant had a conditional agreement to take between 12 and 30 petajoules per year (PJA) from the pipeline to develop a gas-fired power station at the Olympic Dam copper and uranium mine, which it acquired with its takeover of WMC Resources. PNG GAS LOSES BHP BILLITON CONTRACT OCT 10, 2005 PORT MORESBY - Australian based gas giant BHP Billiton (ASX:BHP) says it will not extend its conditional agreement to purchase gas from the K11.2 billion (US$3.7 billion) PNG Gas project, NBC reports. Oil Search (ASX:OSH), the company that has majority shares in the PNG Gas project, has expressed disappointment in BHP's decision. ANOTHER FUEL HIKE FOR PNG OCT 12, 2005 PORT MORESBY - Papua New Guinea's Independent Consumer and Competition Commission (ICCC) has announced another fuel price increase for this month. The price rise announced today was the result of crude oil prices remaining high in the world market. NEW ZEALAND IN TALKS WITH PAPUA NEW GUINEA ON GAS SUPPLY OCT 25, 2005 PORT MORESBY - New Zealand may soon use gas from Papua New Guinea as both countries are in discussions over the supply of PNG gas to New Zealand. The National Government is working on ways to develop a concept that would allow PNG gas to boost declining gas reserves in New Zealand, Post Courier reports. MULTI-BILLION DOLLAR INVESTMENT PROPOSED FOR PNG OILFIELDS NOV 4, 2005 PORT MORESBY - A new player on the Papua New Guinea oilfields plans to spend at least $US6 billion to construct factories for gas, fuel, ammonia and urea fertilisers in Madang, the Post Courier reports. This will also cover a high density polyethylene pellet plant and two Greenfield liquefied natural gas units. PACIFIC ISLAND POWER UTILITIES LOOK TO COMBAT HIGHER FUEL COSTS NOV 14, 2005 SUVA - Seventeen engineers from ten power utilities around the region are in Nadi attending a renewable energy workshop jointly organised by the Pacific Power Association

(PPA) and funded by the E7. The two-week workshop, which began today, will be discussing a number of issues relating to power. And top on the agenda will be ways and means to combat the rising fuel costs. INTEROIL TO BUY SHELL PNG NOV 24, 2005 PORT MORESBY - InterOil Corporation will become a major distributor of petroleum products in Papua New Guinea as it agrees in principle to purchase Shell PNG Limited assets, Post Courier reports. Royal Dutch Shell Group announced that it had reached an in principle agreement for a revised deal structure covering the sale of 100 per cent of its shares in Shell Papua New Guinea Limited to InterOil Products Limited. SHELL TO CLOSE PACIFIC ISLAND OPERATIONS NOV 24, 2005 SUVA - Fuel company SHELL announced that it would be putting up its operations in the Pacific Island countries for sale in favour of much larger investments in Asia and the subcontinent, One National news reports. SHELL General Manager Fiji, Peter Walsh confirmed to One National News that as one of the major players in Fiji's fuel industry and with a presence in Fiji spanning several decades, SHELL is seriously considering closing shop. CHINA NATIONAL PETROLEUM IN TALKS TO BUY PNG GAS: REPORT DEC 7, 2005 PORT MORESBY - China National Petroleum, the biggest Chinese oil company, is in talks with the Papua New Guinea Government about buying natural gas, Petroleum and Energy Minister Moi Avei of Papua New Guinea said Monday. The International Herald Tribune reported that an initial accord may be signed between the government and the Chinese company during a planned visit by Avei to China early next year. MARSHALL ISLANDS CAPITAL ON VERGE OF RUNNING OUT OF FUEL DEC 20, 2005 MAJURO - A dispute with Mobil Oil Micronesia over fuel pricing has put the Marshall Islands capital of Majuro in danger of running out of fuel by next month, Marianas Variety reports. The Marshalls Energy Co (MEC). is attempting to change fuel suppliers after more than 13 years with Mobil Oil Micronesia, a subsidiary of Exxon Mobil, and has asked the United States government for an independent investigation of Mobil tactics in recent negotiations with the Majuro-based utility company. PAKISTAN PAKISTAN URGED TO JOIN S.ASIAN ENERGY BODY FOR POWER POLICY SEPT 1, 2005 DHAKA - Aram B Zamgochian, Project Director of the South Asia Regional Energy Coalition (SAREC) has said in Lahore that Pakistan should join SAREC to influence the regional energy policy, a Pakistani media reported. He was talking to the president of the Lahore Chamber of Commerce and Industry, Mian Misbahur Rehman, on Tuesday. LCCI Vice President Sheikh Mohammad Arshad and Executive Committee member Mohsin Banday also attended the meeting. PAKISTAN TO SIGN ENERGY CHARTER TREATY SEPT 1, 2005 ISLAMABAD - Pakistan has decided to sign the Energy Charter Treaty (ECT), a global arrangement for security to energy-related trade and investments, in an effort to get the observer status which would help it deal with the US opposition to the Indo-Iran gas

pipeline. The signing of the treaty would enable Islamabad to get observer status to the Energy Charter Conference which would "lead to a number of positive developments for Pakistan without any obligation or liability and pave the way for becoming full member to the treaty," an official said. CALL FOR PAKISTAN TO JOIN SOUTH ASIA ENERGY COALITION SEPT 1, 2005 LAHORE - Pakistan has been urged to join the South Asia Regional Energy Coalition (Sarec) to influence regional energy policy. SAREC Project Director Aram B Zamgochian said that through this body, Islamabad could get additional foreign investment for energy infrastructure development. INDIA, PAKISTAN WANT GAS PIPELINE TRANSIT FEES SET AT INTL RATES SEPT 6, 2005 ISLAMABAD - Ahead of this week's Petroleum Secretary-level talks, India and Pakistan have decided to adopt international standards for calculating transit fees for the proposed IndoIran gas pipeline. India and Pakistan have agreed that Iran should provide an independent third party certification of gas reserves in South Paras field which would be dedicated for the multi-billion dollar project, 'Dawn' daily quoted Pakistani officials as saying, adding the two sides decided to adopt international standards to calculate the transit fee. INDIA DECIDES TO COOPERATE WITH PAKISTAN IN GAS LINE PROJECT SEPT 7, 2005 KARACHI - Adviser to Prime Minister on Energy Mukhtar Ahmed said here on September 3 that India had decided to cooperate with Pakistan in a gas pipeline project. Addressing members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said that the Cabinet had also decided to provide gas connection to all industries for captive power generation. PAKISTAN COMMITTEDTO INDO-IRAN GAS PIPELINE: PRIME MINISTER SEPT 8, 2005 ISLAMABAD - Promising support to Iran in its row with the US over its nuclear programme, Pakistan on Wednesday told Tehran's top nuclear negotiator that it was committed to the Indo-Iran gas pipeline against which Washington has expressed reservations. Pakistan supported efforts to resolve the issue of Iranian nuclear programme through negotiations and opposed use of force against the Gulf nation on this matter, Prime Minister Shaukat Aziz told visiting Secretary of Iran's Supreme National Security Council Ali Larijani during a meeting here. INDIA, PAK TO FINALISE FRAMEWORK AGREEMENT FOR PIPELINE BY DEC SEPT 12, 2005 ISLAMABAD - India and Pakistan have agreed to finalise a tripartite framework agreement by December for the US $7.4 billion Iran-Pakistan-India gas pipeline project. A joint press statement issued at the conclusion of the second Joint Working Group between India and Pakistan said the two sides will meet in the second week of November in New Delhi. PAKISTAN, INDIA ANNOUNCE TIMEFRAME FOR GAS PIPELINE SEPT 13, 2005 ISLAMABAD - On the conclusion of two-day deliberations, Pak-India Joint Working Group (JWG) on September 9 announced timeframe for Iran-Pak-India (IPI) gas pipeline, saying all arrangements and formalities of the project would be completed by mid-2007, and gas supply to start from 2010. Petroleum secretary Ahmed Waqar and his Indian counterpart

Sushil Chandra Triparthy, who led their respective delegations during the talks, briefed about the outcome of the JWG meeting here at a joint press conference. PAKISTAN RECEIVES SIX PROPOSALS FROM ADVISERS TO IMPORT GAS SEPT 19, 2005 LAHORE - Inter State Gas Systems (Private) Ltd, (ISGSL), a joint venture entity, cosponsored by Pakistan's two major gas utility companies, Sui Northern Gas Pipelines Ltd, and Sui Southern Gas Company Ltd, has received proposals from six parties for financial advisory services for import of gas through pipelines from the neighbouring countries. The ISGSL invited proposals for financial advisory services from financial consultants supported by a consortium of technical, legal and other experts/consultants for import of natural gas through pipelines from the neighbouring countries. WB ARBITRATOR TO VISIT INDIA, PAKISTAN NEXT MONTH SEPT 20, 2005 ISLAMABAD - The World Bank appointed neutral expert arbitrating on the differences between India and Pakistan over the Baglihar hydro-electric project will pay a week-long visit to the project site beginning October 1. Raymond Lafitte, a Swiss civil engineer and a Professor at the Swiss Federal Institute of Technology in Lausanne would visit the "region" in the first week of October, Pakistan Foreign Office Spokesman Naeem Khan told reporters here on Monday. PAKISTAN, ALGERIA TO EXCHANGE OIL AND GAS EXPERTS SEPT 21, 2005 ISLAMABAD - Pakistan and Algeria have agreed to exchange delegations of oil, gas and mineral experts for exploring areas of cooperation between the two countries. The decision was taken at a meeting between Algerian Minister for Small and Medium Enterprises Mustapha Binbada and Federal Minister for Petroleum and Natural Resources Amanullah Khan Jadoon here on September 19. INDIA, PAKISTAN TO SEEK THIRD PARTY CERTIFICATION OF IRANIAN GAS SEPT 21, 2005 NEW DELHI - India and Pakistan will seek third party certification of Iran's gas reserves before moving ahead on the US$7.4 billion Iran-India-Pakistan pipeline, which is designed to meet the growing energy needs of both nations. At the second meeting of the IndiaPakistan Joint Working Group on the pipeline project in Islamabad earlier this month the two sides agreed to approach Iran for third party certification of gas reserves, confirmation of allocation of gas reserves for the project, identification of alternate/back up gas reserves and time line for the development plan of allocated reserves, sources said. SOUTH ASIA NEEDS 2 GAS PIPELINE SCHEMES: ADB EXPERT SEPT 22, 2005, The Press Trust of India MANILA - Future demand for natural gas in South Asia is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, Asian Development Bank (ADB) said Thursday. Dan Millison, a senior ADB energy specialist, said recently released reserves information from Turkmenistan shows a lower-than-expected gas deliverability for a proposed 3.3 billion dollar pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. ADB has been brokering the 1,700 km pipeline project since 2002, promoting it as a win-win example of regional cooperation - a pioneering effort to link gasrich Central Asia with energy-deficient South Asia through Afghanistan. The project would bring clean fuel at competitive costs to India and Pakistan, transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Dauletabad gas field has gross reserves of 1.4 trillion cubic meters of gas, but production forecasts are lower than expected, causing

analysts to doubt that it can meet the proposed target of piping 30 billion cubic meters (BCM) of gas a year to South Asia. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing. They will need to find gas from other fields to meet pipeline design targets," Millison said. The USD7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700 km pipeline would cost more than double the Turkmen scheme but leaves out Afghanistan. "However, with long term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline," says Millison. India already imports gas and demand will soar in the next decade, the ADB official said adding Pakistan, with its own reserves declining, is expected to begin importing gas after 2008. In fact, projected demand in South Asia is so strong that there may be a need for a third pipeline from Qatar or Oman, says Millison. PAKISTAN APPOINTS US CONSULTANT FOR SELL-OFF OF STATE GAS COS SEPT 23, 2005 ISLAMABAD - The Privatisation Commission has appointed Price Waterhouse Cooper, an American firm, as consultant for speedy sell-off of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC). The consultant, at a meeting held here on September 20, gave guidelines to SNGPL and SSGC management for making the gas distribution companies a big attraction for their buyers. AFGHANISTAN EYES POWER IMPORT FROM PAKISTAN SEPT 27, 2005 PESHAWAR - High-ranking Afghan government officials, seeking support from friendly countries, highlighted the progress achieved by the strife-torn nation since the Bonn Agreement at a seminar here on Monday. Addressing the day-long seminar arranged by the Afghan Consulate here, they referred to the Karzai-led government's achievements in political, economic, educational, reconstruction, health and security domains over the last four years. S.ASIAN GAS DEMAND STRONG ENOUGH FOR TWO PIPELINES: ADB EXPERT SEPT 23, 2005 MANILA - South Asia's future demand for natural gas is expected to be strong enough to require gas to be piped from both Turkmenistan and Iran, according to Dan Millison, a senior Asian Development Bank (ADB) energy specialist. Reserves information from Turkmenistan indicates a lower-than-expected gas supply for a proposed 1,700 kilometre pipeline, US$3.3 billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. IRAN GAS PIPELINE WON'T AFFECT INDO-US TIES: INDIAN MINISTER SEPT 28, 2005 WASHINGTON - India will proceed with the pipeline from Iran through Pakistan to obtain Iranian gas and does not expect the project to affect Indo-US ties, Minister of Petroleum and Natural Gas Mani Shankar Aiyar has said. In an interview on Monday, he said India also does not expect its vote in support of an IAEA resolution on Iran's controversial nuclear programme to affect New Delhi's ties with Tehran. SAARC COOPERATION KEY TO ECONOMIC PROGRESS: PAKISTAN OCT 1, 2005, The Pakistan Newswire ISLAMABAD - Pakistan Saturday emphasized that enhanced cooperation among member states of South Asian Association for Regional Cooperation (SAARC) in energy sector was key to sustainable economic development. Minister for Petroleum & Natural Resources Amanullah Khan Jadoon told the opening session of SAARC energy ministers' meeting here

that closer cooperation in energy was instrumental to sustainable economic progress in the region. Cooperation in energy is not only inevitable for economic gains for South Asia but will also promote lasting peace, he observed. The ministerial meeting - first of its kind - was preceded by two days of expert-level deliberations that prepared a report and recommendations for consideration and approval. The association is working on the creation of an energy wing to effectively pool energy resources and enhance mutual cooperation in this sector, he said. SAARC has seven members - Pakistan, India, Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives. It was formed in mid-80s. "Being a net importer of fossil fuels, national exchequers of each of our nations is heavily burdened with oil import bills, hampering economic growth of the region," Amanullah Jadoon said. He said Pakistan's primary energy mix is dominated by oil and gas. Together these contribute 81 percent of the country's total primary energy supplies. The share of natural gas has increased to 52 percent. The shares of other energy resources are: hydro-electricity 11 percent, coal 6 percent and nuclear energy 1 percent. He said Pakistan has become a leading consumer of compressed natural gas (CNG) in Asia and third largest in the world. National Assembly Speaker Chaudhry Amir Hussain, who was chief guest at the meeting, said in 15 years South Asia's energy demand for oil would increase by 500 million tons equivalent to 1500 million tons per year. "Oil, gas and coal contribute more than 90 percent to primary energy supplies of South Asia and our energy import bills are shooting up with rising oil prices," he said. He said the region had huge unexplored and untapped energy resources. Proper exploration efforts in tapping indigenous resources coupled with large pool of talented and hardworking people can help improve the prospect of development of the region, he stressed. TEAM LED BY WB NEUTRAL EXPERT TO INSPECT JAMMU HYDEL PROJECT OCT 3, 2005 JAMMU - In efforts to iron out differences between India and Pakistan on the Indus river waters issue, a 13-member team led by World Bank appointed neutral expert Raymond Lafitte arrived here Saturday for a 3-day inspection tour of the 450-mw Baglihar hydel project at Patnitop in J&K. Lafitte, a professor at the Swiss Federal Institute of Technology in Lausanne along with 2 Swiss, 6 Pakistani and 4 Indian officials flew in from New Delhi, officials said. ROMANIAN COMPANIES EYE BUILDING REFINERIES IN PAKISTAN OCT 4, 2005 KARACHI - Private Romanian companies are interested in setting up refineries in Gwadar besides looking for other opportunities to initiate joint ventures. This was stated by Ionel Mantog, leader of a 14-member Romanian state delegation here on October 2. GAS PIPELINE FROM IRAN VIABLE EVEN WITHOUT INDIA: PAKISTAN OCT 4, 2005 ISLAMABAD - Pakistan has said the Iran-Pakistan-India gas pipeline would remain viable even if India opted out of the project. "A gas pipeline from Iran to Pakistan is viable even if India pulls out of the Iran-Pakistan-India (IPI) gas pipeline project," Ahmed Waqar, Secretary, Ministry of Petroleum and Natural Resources, said. S.ASIAN NATIONS AGREE TO LOOK INTO REGIONAL GRID, GAS PIPELINE OCT 5, 2005 NEW DELHI - The BIMSTEC group of seven South and South-East Asian countries on Tuesday agreed to look into the possibility of setting up a trans-regional gas pipeline and a power transmission network as part of efforts to enhance energy cooperation and ensure energy security in the region. The representatives of Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) at its meeting here also

agreed to evolve a common regulatory framework for grid interconnections and strengthen cooperation in hydro, non-conventional as well as research activities. PAKISTAN INVITES RUSSIA TO JOIN IRAN GAS PIPELINE PROJECT OCT 7, 2005 ISLAMABAD - Pakistan has invited Russia to join the multi-billion dollar India-Pakistan-Iran (IPI) gas pipeline, amidst reports that Russian natural gas major Gazprom has shown interest in the project. Pakistan wants Russia to be a partner in the gas pipeline that joins Iran, Pakistan and India, state run APP quoted Pakistan Ambassador to Moscow Mustafa Kamal Qazi as saying in an interview to Radio Moscow. PAKISTAN TO PROCEED WITH GAS PIPELINE EVEN IF INDIA OPTS OUT OCT 10, 2005 ISLAMABAD - Pakistan has said it will go ahead with the gas pipeline project with Iran even if India opted out of the venture. "We want this pipeline from Iran, even if India doesn't. I have been pushing it from day one. This pipeline will still work even without India," Pakistan Prime Minister Shaukat Aziz said. PAKISTAN INVITES RUSSIA TO BE PARTNER IN GAS PIPELINE PROJECT OCT 10, 2005 KARACHI - Pakistan has invited Russia to join the multi-billion dollar India-Pakistan-Iran gas pipeline, amidst reports that Russian natural gas major Gazprom has shown interest in the project. Pakistan wants Russia to be a partner in the gas pipeline that joins Iran, Pakistan and India, Pakistan's Ambassador to Moscow Mustafa Kamal Qazi, said in an interview to Radio Moscow. PAKISTAN GOV'T SIGNS MOU WITH RUSSIA'S GAZPROM OCT 12, 2005 ISLAMABAD - The government on October 7 signed a memorandum of understanding (MoU) with Russian oil and gas sector giant, JSC Gazprom, for co-operation in oil and gas sector. The areas include gas storage, oil and gas exploration and production, development and research to explore Pakistan's untapped potential, especially in offshore areas, besides assisting Pakistan in conversion of diesel vehicles to CNG. PAKISTAN GOVT APPROVES THERMAL POWER PLANTS FOR US$2 BLN OCT 31, 2005 ISLAMABAD - The federal government on October 27 approved setting up of about 3,000mw of thermal power projects in the private sector with an estimated total investment of more than US$2 billion. A decision to this effect was taken at a meeting of the board of directors of Private Power and Infrastructure Board (PPIB) presided over by Minister for Water and Power Liaqat Ali Jatoi. ADB STUDY FAVOURS TWO GAS PIPELINES TO SOUTH ASIA NOV 1, 2005, Ashok Dasgupta, The Hindu The demand for natural gas in South Asia in future is projected to be strong enough to require gas to be piped from both Turkmenistan and Iran, an Asian Development Bank (ADB) expert has said. According to a senior ADB energy specialist, Dan Millison, reserves information from Turkmenistan released some time ago shows a lower-than-expected gas deliverability for a proposed $ 3.3-billion pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. ADB has been brokering the 1,700 km pipeline project since 2002, promoting it as a win-win example of regional cooperation, a pioneering effort to link gas-rich Central Asia with energy-deficient South Asia through Afghanistan. The

project would bring clean fuel at competitive costs to India and Pakistan coupled with the much-needed transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Dauletabad gas field has gross reserves of 1.4 trillion cubic metres. However, production forecasts are lower than expected, causing analysts to doubt that it could meet the proposed target of piping 30 billion cubic metres (BCM) of gas annually to South Asia. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing," said Mr. Millison. "They will need to find gas from other fields to meet pipeline design targets," he said. Meanwhile, a $ 7 billion scheme to pipe natural gas from offshore Iran to Pakistan and India is gaining momentum. This 2,700 km pipeline would cost more than double the Turkmenistan scheme but leaves out Afghanistan, where security concerns remain. Gas demand estimate -- "However, with long-term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline," says Mr. Millison. India already imports gas and the demand is expected to soar in the next decade. Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. In fact, Mr. Millison feels that the projected demand in South Asia is so strong that there may be a need for a third pipeline from Qatar or Oman. With the new gas reserves data on hand, as well as a draft security analysis report, the next step is for the project's steering committee to meet and discuss inviting an international consortium of investors to build the pipeline. Turkmenistan is largely a desert country, with proven recoverable natural gas reserves of 71 trillion cubic feet (TCF) (about two trillion cubic metres) and possible reserves of over 200 TCF (about six trillion cubic metres). It is one of the world's largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining. With large gas reserves and a small population, Turkmenistan's export potential is huge, though substantial investments are needed to increase production. Turkmenistan at present pipes most of its gas to Ukraine and Europe via Gazprom, the Russian utility, though it has also a small pipeline to Iran. Even if Turkmenistan settles for current gas prices with India and Pakistan, observers note that it should have some pricing leverage within five years when the project comes on stream. They point out that Pakistan industries and power plants now pay $ 100 per 1,000 cubic metres of gas. Apart from financing the feasibility report for the Turkmen project, ADB financed a study for underground natural gas storage in Pakistan, where storage capacity would help meet local demand peaks in winter and counter possible supply disruptions. KARACHI ELECTRIC SUPPLY CORP COMES UNDER THE HAMMER NOV 3, 2005 ISLAMABAD - The federal cabinet on November 1 ratified the transfer of 73 per cent shares along with management control of Karachi Electric Supply Corporation (KESC) to Hassan Associates and Saudi Al-Jumiah group consortium at a "matched highest bid price" of Rs1.65 per share. The meeting presided over by Prime Minister Shaukat Aziz also decided to hold meetings with the UAE government after Eid to "try to achieve closure of the PTCL transaction". MALAYSIAN COMPANY TO INVEST US$1 BLN IN PAKISTAN NOV 9, 2005 KARACHI - A Malaysian investment holding company, Eden Enterprises, plans to invest US$1 billion in the energy, housing, tourism and construction sectors in Pakistan. The proposed investment includes the development of two power plant projects jointly with the local partners. Board of Investment (BoI) Director General Riaz-ul-Haq was quoted as saying by Business Times of Kuala Lumpur that the Malaysian company was working on a plan to invest in a 655MW capacity hydro-electric power project in Mansehra in the northern areas of Pakistan.

REGIONAL POWER GRID PROPOSAL LIKELY TO GET NOD AT SAARC SUMMIT NOV 10, 2005 DHAKA - A proposal for setting up a regional power grid is likely to be adopted at the ensuing SAARC summit to be held in the capital on November 12-13. Sources in the Ministry of Power, Energy and Mineral Resources said the proposal will be placed in line with the resolution of the recently held SAARC energy ministers' meeting in Islamabad. ''INDUS TRADE CORRIDOR'': WORLD BANK SEES RS 35 BILLION PER YEAR FINANCING NOV 10, 2005, Financial Times Information, KHALID ABBAS SAIF, Business Recorder Pakistan is in dire need of financing to the tune of Rs 35 billion per year for ''Indus Trade Corridor'' for maintaining the current growth rate of GDP. This was the gist of a working paper prepared by South Asia Energy & Infrastructure Unit of World Bank, which is going to be discussed by the WB team with Pakistan Government. ''Indus Trade Corridor'' is a ''gateway'' to Central Asian States and Afghanistan. The ''corridor'' area contributes 80 to 85 percent of GDP and encompasses nearly 80 percentage of urban population living around the ''corridor''. Experts of South Asia Energy and Infrastructure Unit of World Bank contend that Pakistan requires major investment and policy changes and full support of ''Leadership and Management'' to achieve the goal. "The future must not only be conceived, it must be carefully carved", they say. According to the working paper of the study, the ''Indus Trade Corridor'' takes care of Pakistan''s external and internal trade. Presently, two ports are handling 95 percent of its external trade. Two main roads and a main railway line are handling 65 percent of total land freight. Ten dry ports are catering to high-value external trade, while the existing pipelines are carrying six million tons POL and natural gas. Pakistan government is fully cognisant of the importance of transport to economy, but has somehow not been able to focus its vision on supporting trade. An investment of at least Rs 35 billion per year for development of ports, rail and roads for establishment of an efficient logistic network is essential to meet the high-trajectory growth in the economy. World Bank experts have emphasised the need for launching reforms in Pakistan Railways and inclusion of private sector in ports, improvement of TF--especially documentation and legal environment of transport. ''Indus Trade Corridor'' is not just ports, roads, rail, warehouses, dry ports and pipelines. This ''corridor'' should also deal with services, eg shipping and port services, trucking, railways, handling, warehousing, customs, insurance, banking, ICT, freight forwarding etc, which require up-to-date procedures, legislation, regulation, administration, documentation and data processing. They have said that in Pakistan on the one hand the quality for a complete logistic system and the quality of service is poor, while on the other it is also inefficient, which tends to escalate cost of trading very much to the detriment of the national economy. They further pointed out that the container dwell times at Pakistan ports are 11 times higher than those of developed countries and 3 times higher than those of East Asia. Trucking rates for high value commodity traders are much higher than India, Brazil and China where the quality of service is much better. In Pakistan, rail carries less than 5 percent of freight and takes 21 to 28 days to deliver goods to upcountry destinations, which is 4 to 7 times slower than China and US. Can it support 7-8 percent sustained growth? Even at this poor level of service, they added, the ''corridor'' utilisation is more than 80 percent of existing capacity. According to projected forecast, the projected growth would be doubled by 2015 which would require much higher levels of service. On top of that, passenger demand would be competing for available capacity, while Pakistan government is investing five times less than East Asia/China in terms of present rate of GDP. INDIAN PM OUTLINES NEW VISION FOR SAARC AT REGIONAL SUMMIT NOV 12, 2005, BBC Monitoring International Reports

The Indian prime minister has called for zero-tolerance on cross-border terrorism and "a collective commitment" to fight "the scourge of terrorism". Addressing the 13th SAARC summit in the Bangladesh capital Dhaka, Manmohan Singh urged a new approach to face regional and international challenges with supranational solutions and said India backed putting aside historical and political divisions to create "a new architecture for mutually beneficial economic partnership". The Indian news agency report said he also stressed the need for speedy strategic regional cooperation within the wider Asian context and called for improved regional transport infrastructure and a South Asia energy dialogue to tap potential, as well as a regional food bank against shortages and disasters. Following is text of report by Indian news agency PTI: Dhaka, 12 November: Outlining a new vision for SAARC (South Asian Association for Regional Cooperation), India's Prime Minister Manmohan Singh on Saturday [12 November] asserted that there should be "zero tolerance" for cross-border terrorism among member states and made far-reaching proposals for stepping up economic cooperation, enhanced air connectivity and setting up of a regional mechanism for disaster relief and management. Addressing the twice-deferred SAARC Summit here, he said no SAARC nation should allow its territory to be used against the interests of another member state. "There should be zero tolerance for cross-border terrorism and for the harbouring of hostile insurgent groups and criminal elements," he stressed. India has been concerned over terror camps operating in Pakistan as also northeastern insurgent groups operating from Bangladesh. "It is only in an environment of mutual confidence and a collective commitment against the scourge of terrorism, that we can register the progress we desire in more intense interaction," he said. Underscoring the need for regenerating the arteries of transport and communication in the region, Manmohan Singh suggested that the South Asian countries should agree to provide to each other, reciprocally, transit facilities to third countries, not only connecting one another but also connecting to the larger Asian neighbourhood, in the Gulf, Central Asia and the Southeast Asia. "India, which borders each of the members of South Asia, is willing to do so," he said. Highlighting the need for improved air services among SAARC countries, Singh took the initiative announcing that India was prepared to offer to all SAARC neighbours "on a reciprocal basis and without prejudice to existing rights, the facility of daily air services by designated airlines" to Indian cities, Delhi, Mumbai [Bombay], Chennai [Madras], Bangalore, Hyderabad and Kolkata besides 18 other destinations all across India. The prime minister followed this up by offering designated airlines of SAARC countries the facility to exercise fifth freedom rights, both intermediate and beyond, with the SAARC region, also on a reciprocal basis. In his address, Singh indicated the need for countries to change their mindsets. "The challenges we face as a region and as members of the larger international community are no longer susceptible to purely national solutions," he said. "There is an imperative need to change and overcome the divisions of history and politics to forge a new architecture of mutually beneficial economic partnership. India, for its part, remains ready for this endeavour," he said. The summit of the seven-nation grouping comprising India, Bangladesh, Pakistan, Sri Lanka, Nepal, Maldives and Bhutan, was first postponed in January in the wake of the tsunami disaster and again in February when India pulled out expressing serious concern over the security situation in Bangladesh and developments in Nepal. Unprecedented security apparatus has been put in place manned by over 30,000 personnel to ensure that the summit went off peacefully. Observing that food security was a major challenge for all South Asian countries, Singh recommended establishment of Regional Food Bank to which all member states would contribute. This could be used to meet shortages and losses caused by natural calamities in any of these countries, he said. Emphasizing the need for promoting regional cooperation in strategizing for the future, the prime minister proposed a South Asian Energy Dialogue involving experts, academics, environmentalists, officials and NGOs, to recommend measures to tap this potential. The prime minister regretted that not a single project proposal had been received relating to utilization of the Poverty Alleviation Fund for which India had offered to contribute 100m dollars a year back on the

understanding that this money would be used entirely on projects with SAARC but outside India. India, he said, welcomed the decision to merge the different existing and proposed funds into an Umbrella South Asian Development Fund with different windows for different purposes. As a step in the direction of creating a South Asian Economic Union by 2020, Singh recalled that at the July ministerial meeting it was recommended that a SAARC High Economic Council be set up, which could promote initiatives in economic, trade, finance and monetary areas with a view to moving towards regional economic integration. Noting that South Asia possesses a very rich and living tradition of exquisite handicrafts and textiles, he conveyed India's readiness to establish a SAARC Museum of Textiles and Handicrafts. The museum could sponsor training of craftsmen, foster design skills, hold promotional events such as fashion-shows and demonstrations by artisans and also undertake research, the prime minister said, adding setting up of retail outlets in each of the SAARC capitals could be explored to promote their textiles and handicrafts regionwide. Singh also announced India's offer to hold a South Asian Car Rally in the run-up to hosting the next summit in the first half of January 2007. It would symbolize vividly regional identity of SAARC and also underline the urgent need to improve transport infrastructure in these countries, he said. To provide an enabling environment and world class facilities to talented people in the region, the prime minister suggested that the member states pool their resources to create a centre of excellence in the form of a South Asian University. India is willing to make a major contribution to the realization of this project over the next three to four years, he said. Observing that regional economic cooperation in South Asia has fallen far short of expectations, he hoped that SAFTA [South Asian Free Trading Agreement] would come into force by 1 January 2006. Contending that it was important to assess South Asia regional cooperation in the larger Asian context, the prime minister said today, ASEAN was evolving rapidly into a truly integrated economic community. "My question is, is SAARC prepared to be an integral part of this emerging Asian resurgence or is it content to remain marginalized at its periphery? "If our region wishes to be a part of the dynamic Asia, which is emerging in our neighbourhood, then we must act and act speedily," he stressed. Referring to disasters afflicting the region, he said the summit should evolve regional mechanisms for effective and timely cooperation in disaster relief and management. India's offer to host the SAARC Centre for Disaster Preparedness has been accepted by all member states. He said the possibilities for meaningful cooperation range from early warning systems to relief and reconstruction. Source: PTI news agency, New Delhi, in English 0813 gmt 12 Nov 05 ADB TO HELP FINANCE FIRST PRIVATE SECTOR HYDROPOWER PROJECT IN PAKISTAN NOV 23, 2005, ADB Media Center The Asian Development Bank (ADB) will help to bridge a pending electricity shortfall and encourage the development of hydropower resources in Pakistan through a new US$37.3 million loan. The loan will help finance an approximately 80 megawatt power plant located downstream of the Mangla Dam on the Jhelum River in Azad, Jammu and Kashmir. This is ADB's first proposed assistance to a private sector hydropower project in Pakistan and the first such project to be developed in the region. The New Bong Escape Project, so-called because of its position on the escape channel from the existing Mangla power station, will be a "run-of-the-river'" scheme involving! no new dam or reservoir and will thus have minimal environmental and social impacts (see summary initial impact examination posted on 9 September 2005). The electric power generated by the project will feed into the national grid. The Project company, Laraib Energy Limited, is owned by a subsidiary of Ranhill Berhad, a Malaysian engineering and utility asset-owning company listed on the Kuala Lumpur Stock Exchange and by various local and international business interests. The Project is expected to begin construction shortly and is scheduled to begin commercial generation of electricity by the beginning of 2009. Azad, Jammu and Kashmir is home to some of the areas worst affected by the devastating earthquake that hit parts of south Asia in October. "The Project, while far enough from the epicenter not to have been directly

affected, should bring job opportunities and will help upgrade infrastructure in an area where both are much nee! ded," says Michael Barrow, an ADB Principal Structured Finance Specialist. Together with the ADB loan and the sponsor equity, the project is expected to be financed with loan facilities from the Islamic Development Bank and Pakistan commercial banks. The Islamic Development Bank facility will be Sharia-compliant. "This Project represents a number of important firsts for ADB and for the region," says Mr. Barrow. "It will be the first private sector hydropower project in Pakistan which should lead the way for many similar schemes. It will be the first large-scale, private sector infrastructure project in Azad, Jammu and Kashmir. And it will also be the first private sector cofinancing between the ADB and the Islamic Development Bank." ADB's loan is without government guarantee and comes from ADB's ordinary capital resources. Interest is determined in accordance with ADB's LIBOR-based loan facility. The ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 64 members, with 46 from the region. In 2004, it approved loans and technical assistance totaling $5.3 billion and $196.6 million, respectively. TURKMENISTAN-AFGHAN-PAKISTAN GAS PIPELINE PROJECT NOV 24, 2005, RASHID ASHRAF Business Recorder Global News Wire According to a senior Asian Development Bank's energy specialist, Dan Millison, reserves information from Turkmenistan released some time ago shows a lower than expected gas deliverability for a proposed $ 3.3-billion TAP (Turkmenistan- Afghanistan--Pakistan) pipeline project to carry gas from Turkmenistan via Afghanistan to India and Pakistan. It may be remembered that ADB has been brokering the 1700 km pipeline project since 2002, promoting it as a win-win example of regional co-operation, a pioneering effort to link gasrich Central Asia with energy-deficient South Asia through Afghanistan. "The reserves information shows that Turkmenistan could supply enough gas for the first few years but then production is predicted to decline instead of increasing", said Millison. "They will need to find gas from other fields to meet pipeline design targets," he said. ADB also pointed out that with long-term gas demand from India and Pakistan estimated at 50 BCM a year, there is a need for more than one pipeline. India already imports gas and the demand is expected to soar in the next decade, Pakistan, with its own reserves declining, is expected to begin importing gas after late 2008. Apart from financing the feasibility report for the Turkmen project, ADB financed a study for underground natural gas storage in Pakistan, where storage capacity would help meet local demand peaks in winter and counter possible supply disruptions. Earlier in its study issued in July 2005, ADB discussed that pipeline route would run from Daulatabad in Turkmenistan to Kandahar in Afghanistan to Loralai in Pakistan and then on to Multan. Although the route was not finalised because it is up to the investors to decide the route. Unfortunately, security concerns extend beyond Afghanistan. If the route through western Afghanistan emerges as the best option, the pipeline would cross Balochistan where attacks on oil and gas transmission lines are a common feature. If the alternative option is chosen, the pipeline would cross the North West Frontier Province (NWFP) of Pakistan, which includes the semi-autonomous tribal areas. These regions, most notably the tribal areas, are known for their fierce independence. However, the Pakistan official said that in case of sanctions against Iran for its nuclear plan, Pakistan will immediately move towards the other proposed TAP pipeline and Qatar-Pakistan pipeline. When asked as to which project Pakistan would like to initiate in case of sanctions against Iran, Secretary Petroleum and Natural Resources Ahmad Waqar said that Qatar pipeline is costly and Turkmenistan has so far failed to provide certificate about Daulatabad gas field. The construction of a natural gas export route from Turkmenistan to Pakistan, Russia, Kazakhstan, and Uzbekistan could eventually link in to the eastern gas line. The potential for demand growth in the Asian market is nearly unlimited at prices that both buyers can pay and suppliers can profit. This is in sharp contrast to routes to Europe where the regional

producers would likely find intense competition among themselves for a limited market. Russia, Turkmenistan, Kazakhstan and Uzbekistan have all publicly noted their interest in working jointly toward an eastern corridor. In the first stage of development, Turkmenistan is likely to provide most or all of the gas, with incremental supplies coming later from other countries. Since Pakistan and India's demand for gas has nearly no ceiling - at prices around of $ 2 per mmBtu - several suppliers could be considered once Turkmenistan gets the export ball rolling. However, there's no guarantee that Turkmenistan will not try to go it alone, leaving other suppliers with only small regional markets to tap. Blessed with vast gas reserves, Turkmenistan has been exploring for the last 13 years ways to diversity its gasexport options and to lessen its dependency on the northern export route through Russia. Turkmenistan's gas balance is such that its maximum possible production volume in the years ahead is estimated at approximately 100 billion-110 billion cubic meters per year. Domestic demand totals 15 billion-20 billion cubic meters, the maximum export volume to Iran is 10 billion-13 billion cubic meters, and the remainder is now contracted wholly to Russia. The project would bring clean fuel at competitive costs to India and Pakistan coupled with the much-needed transit fees to Afghanistan and new markets for Turkmenistan. Turkmenistan's Daulatabad gas field has gross reserves of 1.4 trillion cubic metres. However, production forecasts are lower than expected, causing analysts to doubt that it could meet the proposed target of piping 30 billion cubic metres (BCM) of gas annually to South Asia. This 2,700 km pipeline would cost more than double the Turkmenistan scheme but leaves out Afghanistan, where security concerns remain. As regard with the financing of the TAP project, there was a proposal to establish a consortium with the participation of the multilateral agencies. Leading US companies like UNICOL formed a consortium including Delta of Saudi Arabia Itochu of Japan, Inpex of Japan, Hyundai of South Korea and Crescent of Pakistan. Recently, the Russian gas giant Gazprom was also keen to join in. Reports emanating from press indicating the interest of Chinese company named China Petroleum Engineering and Construction (CPECC). It is said that Turkmenistan's gas reserves may be the greatest of the untapped oil and gas reserves in the Caspian region. What differs Turkmenistan from all other gas producers in the region is that it has a significant track record as a proven exporter of gas prior to the break-up of the Soviet Union and in recent years to Ukraine. Granted this export route, Russia has been closed off indefinitely, if not in perpetuity, by Gazprom, who has said on numerous occasions that the days of Turkmen gas transiting through the Russian system are over. But it does leave Turkmenistan with a significant amount of domestic infrastructure to take gas to its borders. Given the transportation difficulties encountered by many aspiring gas and oil exporters in this part of the world, this fact is not insignificant. Turkmenistan is largely a desert country, with proven recoverable natural gas reserves of 71 trillion cubic feet (TCF) (about two trillion cubic metres) and possible reserves of over 200 TCF (about six trillion cubic metres). It is one of the world's largest gas exporters. However, although its 4.5 million people receive free gas, electricity and water, incomes are among the lowest in Central Asia and health and education services are declining. With large gas reserves and a small population, Turkmenistan's export potential is huge, though substantial investments are needed to increase production. Turkmenistan at present pipes most of its gas to Ukraine and Europe via Gazprom, the Russian utility, though it has also a small pipeline to Iran. Even if Turkmenistan settles for current gas prices with India and Pakistan, observers note that it should have some pricing leverage within five years when the project comes on stream. The question is whether Pakistan will choose TAP with so many questions surrounding the availability of sufficient gas reserves for the pipeline in Turkmenistan. The idea of the Trans-Afghan Pipeline was revived by the exhausting efforts of the Asian Development Bank after the defeat of the Taleban regime, but unrest in Afghanistan, the unpredictable behaviour of the Turkmen president, and Russia's total control over the Turkmen gas market render the idea quite unrealistic. ADB's recent report again creates doubts in the minds of many. The question is why Pakistan can't consider seeking new

avenues for importing gas from Kazakhstan which has proven natural gas reserves of 65 trillion cubic feet (tcf). Besides that, Uzbekistan and Azerbaijan has 66 and 30 tcf respectively of proven natural gas reservoirs. With its 65 tcf of gas reserves, Kazakhstan certainly has the reserves to be a major gas exporter. More than 40% of the country's reserves are located in the giant Karachaganak field in the north-west. Karachaganak's gas processing is done north of the border at Russia's Orenburg facility, it is Karachaganak's potential of producing 200,000 b/d of oil and condensate that has investors interested in the field. Currently Kazakhstan produces around 600-mmcf/d and imports another 450-mmcf/d, with no exports in the formula. Imports come into Almaty via Tashkent from eastern Turkmenistan, Kazakhstan has two separate pipeline grids; one that exports Karachaganak gas to Russia and one that import Turkmen gas for use in Almaty. Azerbaijan could play an important role in Caspian gas exports as a key transit point to Turkey. The US Department of State has been pushing the idea that a gas pipeline from Turkmenistan across the Caspian and through Azerbaijan and Armenia and/or Georgia is a viable alternative to the northern Iranian pipeline. Under the scheme, both Azerbaijan and Turkmenistan would sell their gas along the route. The question of political obstacles to such a route remains a serious problem. Uzbekistan is one of the 10 largest gas producers in the world. Since the fall of the Soviet Union, the country has made considerable headway in building its gas production from 4.1-bcf/d, in 1992 to almost 5-bcf/d in 1997. Taking short-term steps to increase production at existing fields, most gas production increases have come from fields in south-east Uzbekistan in older fields such as Shurtan and Kokdumalak, programs include conversion of cars and trucks to run on compressed gas instead of gasoline, and utilisation of gas for feedstock at a new $ 1 billion gas chemicals plant at the Shurtan gas field. ADB LOANS PAKISTAN US$37.3 MLN FOR HYDROPOWER NOV 24, 2005 MANILA - The Asian Development Bank (ADB) is to loan Pakistan US $37.3 million to help bridge a pending electricity shortfall and encourage the development of hydropower resources in Pakistan. The loan will help to finance an 80 megawatt power plant located downstream of the Mangla Dam on the Jhelum River in Azad, Jammu and Kashmir. PAKISTAN GOVT APPROVES SALE OF KARACHI ELECTRIC NOV 25, 2005 ISLAMABAD - The Privatisation Commission Board, which met here on November 22, has approved the sale of the Karachi Electric Supply Corporation (KESC) to the consortium of Hasan Associates next week. Privatisation Minister Abdul Hafeez Shaikh presided over the meeting. RUSSIA KEEN ON IRAN-PAKISTAN-INDIA GAS PIPELINE NOV 28, 2005 NEW DELHI - US reservations of engaging with Iran notwithstanding, Russia is keen on participating in the over US$7 billion Iran-Pakistan-India gas pipeline project and sharing the risks involved in the "peace project". Russian firm Gazprom wants to partner in construction, operation and maintenance of the 2,100-km pipeline that will transport natural gas from the gigantic South Pars field in Persian Gulf to Pakistan and India. TRILATERAL DIALOGUE ON INDIA-IRAN PIPELINE NEXT YEAR: MINISTER NOV 29, 2005 NEW DELHI - India on Monday said that gas imports from Iran by pipeline passing through Pakistan was indispensable to its economic growth and will enter into trilateral dialogue on the pipeline early next year. "Iran-Pakistan-India pipeline is indispensable for India's energy security and its economic growth. It is indispensable as it is essential for eradication of

poverty in the country," Petroleum Minister Mani Shankar Aiyar said at the India Economic Summit here. PAKISTAN RAISES GAS DEMAND TO CORNER CAPACITY ON ASIAN PIPELINE NOV 30, 2005 NEW DELHI - Pakistan has raised its requirement for natural gas from Iran to block for itself the gas volume in the proposed US $7-billion Iran-Pakistan-India pipeline. During the first meeting of the Joint Working Group, Pakistan had indicated its demand at 10-12 million standard cubic metres per day in 2010-11, building up to more than 50 mmscmd in 2015. Later it raised its initial demand to 30 mmscmd in 2010 and ramped up the final requirement to 60 mmscmd in 2013-14. IDB FINANCES US$37.3 MLN HYDROPOWER PROJECT IN PAKISTAN DEC 2, 2005 ISLAMABAD - After the Asian Development Bank, the Islamic Development Bank (IDB) has also entered into its first-ever private sector infrastructure financing in Pakistan and on November 28, 2005 the IDB Board cleared the New Bong Escape Hydropower Project for Shariah-compliant financing of US$37.3 million. Pakistan's economy has been growing at a rapid pace and the country is expected to face power shortages from 2008 onwards. Hydropower development is encouraged by the government and considered vital to provide energy security and generate cheaper power, especially in the backdrop of rapidly escalating international hydrocarbon prices. CHINA MULLS INVESTMENTS IN PAKISTAN'S AGRICULTURE, POWER SECTORS DEC 5, 2005 ISLAMABAD - International Water & Electric Corporation of China and China Development Bank delegations separately held meetings with Prime Minister Shaukat Aziz and discussed plans to invest in various sectors in Pakistan. Jin Channing, President China National Chemical Engineering Corporation said his company was negotiating joint business with Pakistani companies in fertiliser business. He appreciated the government of Pakistan for its investment-friendly policies, transparency in privatisation policy and conducive atmosphere for business and trade activities. KUWAITI FIRM PLANS TO INVEST US$1.5 BLN IN PAKISTAN DEC 6, 2005 KARACHI - A major Kuwaiti group has told President Pervez Musharraf of its plans to invest US$1.5 billion in petroleum, housing and alternative energy resources. Chairman of the International Investment Group of Kuwait said in a communique that it saw Pakistan as a "stable, promising and favourable place" for investment. TRI-NATION GAS PIPELINE ON TRACK: PETROMIN OFFICIAL DEC 12, 2005 NEW DELHI - India on Thursday asserted that the Iran-Pakistan-India gas pipeline project was on track and first gas from the over US$7-billion project will start flowing from 2010end. A senior Petroleum Ministry official said the three countries are likely to agree on a project structure by February 2006 and a tripartite agreement was in sight by middle of next year. SPAIN NEGOTIATES DOUBLE-TAXATION, WIND-POWER PROJECT IN PAKISTAN DEC 16, 2005 KARACHI - Spain is negotiating with Pakistan for the signing of avoidance of double taxation agreement to increase trade between the two countries. This was stated by Spanish Ambassador to Pakistan Jose Mario Robles Fraga during a meeting with members of the

Federation of Pakistan Chamber of Commerce & Industry (FPCCI) led acting president Akbar Abdullah here on December 14, says a statement of the federation. He said Spain was the biggest user of renewable sources of energy. It has the technology to construct dams and has constructed dams in Chile, Argentina and Brazil. Spanish parties have constructed Islamic University of Saudi Arabia and Petronas Towers in Malaysia. JORDANIAN GROUP INTENDS TO INVEST US$1.5 BLN IN PAKISTAN DEC 19, 2005 ISLAMABAD - Jordanian investors expressed keen interest in widespread investment in Pakistan at a meeting with the country's Federal Minister for Privatisation and Investment, Dr Abdul Hafeez Shaikh on December 15. Power, petroleum and natural resources, cement, tourism, housing and Gwadar Industrial Estate projects were all being considered by the Shaheen Business and Investment Group, led by Dr Jawad A Anani. PHILIPPINES SPAIN GIVES US$27 MLN TO ENERGIZE REMOTE VILLAGES IN PHILIPPINES SEPT 2, 2005 MANILA - The Spanish government has poured in some P1.52 billion (US$27 million) to the second phase of the Solar Power Technology Support (SPOTS) of the Department of Land Reform (DLR) project for farm communities in central and southern Philippines. SPOTS is initiated by the DLR to benefit an initial 44 ARCs (Agrarian Reform Communities) in the Mindanao and Visayas regions. These are composed of 150 inaccessible villages belonging to the 5th and 6th class municipalities, which do not have easy access to basic social services. PHILIPPINES NAPOCOR RE-ENTERS INT'L CAPITAL MARKETS SEPT 2, 2005 MANILA - The National Power Corporation (NPC) has successfully reentered the international capital markets with the recent issuance of six-year Floating Rate Notes valued at US$300 million. The bond offering, NPC's first trip to the international bond market since 2002, is expected to further strengthen the firm's already-improving financial condition. PHILIPPINES TO INTENSIFY ENERGY CONSERVATION MEASURES SEPT 5, 2005 MANILA - The Philippine Department of Energy (DoE) has said it will intensify its energy efficiency and conservation measures and reinforce monitoring activities following results of the recently completed 2004 Household Energy Consumption Survey (HECS) that at least 7.8 million households in the country still use incandescent lamps. DoE Secretary Raphael P.M. Lotilla pointed out that more than half or 7.8 million households are still using incandescent lamps at an average of 79 kiloWatt hours (kWh) per year. PHILIPPINE DOE SAYS GEOTHERMAL POWER SHIELDS VISAYAS FROM E-VAT SEPT 6, 2005 CEBU CITY - The largely geothermal-powered electricity in the Visayas may shield the region from an increase in power rates to be brought about by the implementation of expanded value-added tax (E-VAT) law, a Philippine Department of Energy (DOE) official said. Energy Undersecretary Melinda Ocampo said power in the Visayas will cost less than in other areas because the grid relies more on geothermal power. PHILIPPINES TO PUSH ALTERNATIVE SOURCES OF ENERGY AT UN SUMMIT SEPT 8, 2005 MANILA - The Philippines will push for a better access to cheaper and more stable oil supply

arrangements in light of the surging prices of oil in the world market. This will be presented by President Gloria Macapagal-Arroyo during the 60th UN General Assembly in New York on Sept. 12-14. US$35.6 MLN HYDRO PLANT TO BOOST POWER GENERATION IN MINDANAO SEPT 8, 2005 DAVAO CITY - Two multi-billion hydropower plant projects will soon rise in Davao Region to boost the power generation of Mindanao in the midst of a power crisis set to loom the island next year. The Mindanao Economic Development Council (MEDCo) said one of the projects is the P2 billion (US$35.6 million) Sibulan Hydro Power Plant in Sta. Cruz, Davao del Sur, being invested by the Hydro Electric Development Corporation (HEDCor). 2 100-MW COAL-FIRED POWER PLANTS IN CEBU TO BREAK GROUND NOV 5 SEPT 9, 2005 CEBU CITY - Salcon Power Corp. and Korean Electric Philippines Co. (Kephilco) expect to conduct the groundbreaking on two 100-megawatt coal-fired power plants in the southern Cebu town of Naga on Nov. 5. Reinerio Lastimoso, Salcon vice president for group power operations, on Tuesday told a committee of the Regional Development Council 7 that one unit might be commercially operational on October 8 next year, a project that is being opposed by the Cebu Alliance for Renewable Energy (Care). ARROYO TO INCLUDE ENERGY CRISIS IN HER NEW YORK AGENDA SEPT 12, 2005 MANILA - Philippine President Gloria Macapagal-Arroyo will include the crunching energy crisis in her agenda in New York, where she will attend the United Nations summit. Philippine Presidential Palace Malacanang said the President would also meet with business leaders to invite them to invest in the Philippines. MINDANAO'S FIRST COAL-FIRED POWER PLANT TO OPERATE NEXT YEAR SEPT 15, 2005 DAVAO CITY - The P5 million (US $89,198) coal-fired power plant project in Mindanao will finally serve the growing power generation needs of the island next year as its construction nears completion. Mindanao Affairs Secretary Jesus Dureza said he is optimistic that the 210-megawatt coal-fired power project will be completed even earlier than its scheduled completion by end of 2006. PHILIPPINE GOV'T TO LOWER EXCISE TAX FOR ETHANOL FUEL MAKERS SEPT 15, 2005 CEBU CITY - The Philippine government plans to reduce the excise tax on ethanol fuel to encourage investors to venture into ethanol production, a senior finance official said. Department of Finance (DOF)revenue operations group Undersecretary Emmanuel Bonoan said here, the DOF is now working on an executive order that would reduce the excise tax on ethanol to five centavos per liter from P11.56 per liter. ARROYO PROPOSES MEASURES TO ADDRESS SPIRALLING OIL PRICES SEPT 15, 2005 NEW YORK CITY - Philippine President Gloria Macapagal-Arroyo proposed Tuesday several measures to address the global concern on the spiralling prices of oil in the world market. President Arroyos proposals were embodied in an Omnibus Statement she issued at the second ASEAN-UN Summit held at the United Nations headquarters here. VAT DEFERMENT ON OIL, POWER GAINS GROUND IN PHILIPPINE CONGRESS SEPT 15, 2005

MANILA - The move to defer the implementation of the expanded value-added tax (EVAT) on petroleum and power is gaining ground in the House of Representatives as 124 congressmen expressed support for the measure. Albay Rep. Joey Sarte Salceda, the leading proponent of House Joint Resolution 12, said 22 more congressmen have signified to sign the resolution. PHILIPPINES SET TO EXPAND SUGARCANE AREAS FOR ETHANOL PRODUCTION SEPT 19, 2005 SAN FERNANDO CITY - The Philippines is set to expand its sugar cane production for the production of ethanol as an alternative source of energy. This was disclosed by the Sugar Regulatory Administration (SRA) which considers ethanol as the savior of the country in the face of the continuing fuel price hikes in the world market. PHILIPPINES' BAI PROMOTES USE OF BIOGAS TECHNOLOGY SEPT 19, 2005 MANILA - In response to the skyrocketing oil prices and the need to reduce the country's dependence on imported fuel, the Bureau of Animal Industry (BAI) urged the use of lowcost biogas technology called the Tubular Poly-Ethylene Digester (TPED). BAI Acting Director Dr. Davinio Catbagan said TPED is ideal for backyard farms, which account for 80 per cent of the country's hog inventory. KEY PHILIPPINE SENATOR WILLING TO DEFER VAT ON POWER, OIL SEPT 20, 2005 MANILA - The chairman of the Senate ways and means committee has expressed willingness to defer the implementation of the 10-percent value-added tax (VAT) on electricity and oil. Philippine Senator Ralph Recto on Monday said he will lead senators in wasting no time in coming up with actions that will delay the imposition of the VAT on power and oil but it has to be the House of Representatives that should make the first move. US$19.5 MLN POWER PROJECTS APPROVED IN MINDANAO, VISAYAS SEPT 23, 2005 MANILA - The Investment Coordination Committee-Cabinet Committee (ICC-CC) has approved three power transmission efficiency projects of the National Transmission Corporation (TransCo) in Visayas and Mindanao. One of the approved projects is the P1.1billion (US $19.5 million) 138-kilovolt General Santos-Tacurong-Transmission Line which will expand power substations and replace old wood pole-supported single circuit 138 kV line in the area. NORDIC COUNTRIES EYE ENERGY OPPORTUNITIES IN THE PHILIPPINES SEPT 26, 2005 MANILA - Nordic countries Sweden, Finland, Norway, and Denmark, along with the the Netherlands, are considering investing in the area of new and renewable energy in the Philippines. President Gloria Macapagal-Arroyo's emphasis on the development of renewable energy resources attracted interest among Nordic companies to look for business opportunities here. $600M IN ADB LOANS EYED FOR POWER SECTOR, MICROFINANCING SEP 26, 2005, Doris C. Dumlao, Inquirer News Service http://money.inq7.net/topstories/view_topstories.php?yyyy=2005&mon=09&dd=26&file=2 THE GOVERNMENT WILL TAP TWO MAJOR program loans worth a total of $600 million from the Asian Development Bank for the debt-ridden power sector and the fledgling microfinance industry. Finance Assistant Secretary Gil Beltran told reporters the government was in talks with the ADB on a $450-million program loan for the power sector, of which an

initial tranche of $200 million could be drawn down within this year. Program loans from multilateral lenders, which are used for the government's budgetary support, are tied to a mutually agreed set of conditions which must be fulfilled before the funds are released. Beltran said the government was still in the thick of negotiations over the much bigger power sector program loan, adding that the loan would likely be tied to the pace of reforms in the sector, such as the privatization of National Power Corp.'s assets. The ADB had been involved in the power sector reform in the Philippines until a program loan ended in 2002. Worried over a possible power crisis in the country, the multilateral lender has again gave its commitment to help the power sector. The ADB had said it was open to three possible intervention modes to speed up the sector's restructuring. Aside from a program lending, the ADB is keen on providing investment lending and a guarantee facility, which may come in the form of partial credit guarantee or political risk coverage. The government could raise P12.6 billion in budgetary support from the initial tranches of the two new program loans from the ADB this year. PHILIPPINES MUST PREPARE TO MEET LOOMING ENERGY CRISIS: SOLON SEPT 27, 2005 MANILA - The Philippines must be prepared to meet a looming energy crisis, according to Congressmen Isidoro Real Jr. (Zamboanga del Sur)and Joel Mayo Almario (Davao Oriental), who expressed concern over the rising cost of energy, especially fossil oil, which has adversely affected the country. Real filed House Resolution No. 913 aimed at tasking the appropriate House committee to determine the nature and extent of preparations the government will take in case of an energy crisis. US$19.6 MLN EARMARKED TO UPGRADE MINDANAO POWER LINE OCT 5, 2005 GENERAL SANTOS CITY - The government has earmarked some P1.1 billion (US$19.6 million) to fund the expansion of the 138-kilovolt (kV) General Santos-Tacurong Transmission Line to ward off impending power crisis in southwestern Mindanao. "This project would ensure power system stability and reliability in Southwestern Mindanao, considering that the old existing system has already reached its economic life, thus a candidate for improvement," Jonathan L. Uy, director of the Natinal Economic and Development Authority's (NEDA) public investment staff. PHILIPPINE DEPT TO PILOT TEST USE OF WINDMILLS IN PAMPANGA FARMS OCT 7, 2005 PAMPANGA - The Philippine Department of Agriculture (DA) will be pilot-testing in Pampanga the use of windmills as alternative source of power to run diesel-powered farm machineries. Department of Agriculture (DA) Secretary Domingo Panganiban disclosed on Wednesday that plans are being finalized to introduce to farmers the use of windmills to run shallow diesel-powered well tubes used in irrigation initially in the fourth congressional district of Pampanga. PHILIPPINE LOCAL GOVT UNITS URGED TO SUPPORT ENERGY CONSERVATION OCT 11, 2005 MANILA - Philippine President Gloria Macapagal-Arroyo has urged local government units (LGUs) to help and support the energy conservation (Enercon) program of the government by taking initiative to lessen the use of imported oil. The President made the call during the 14th anniversary of the Local Government Code and launching of the "Kilos Lokal, Asenso Nasyonal (Kilos Asenso Movement): Building Prosperity from Community to Community" Monday morning at the Manila Hotel.

ISLAND PROVINCE OF PALAWAN IS PHILIPPINES' BIGGEST OIL PRODUCER OCT 17, 2005 PUERTO PRINCESA CITY - The island province of Palawan has been the dominant producer of oil in the country as it had produced 54 million barrels of oil from five fields since 1979. Cesar Ventura, chairperson of the Palawan Statehood Movement's Committee on Economic Viability, said that at present, the oil fields that are still productive are the Cadlao, Matinloc and Nido Oil Fields, all are located in the northeast coast offshore of the province. PHILIPPINE SECRETARY OF FOREIGN AFFAIRS CONCLUDES RUSSIA VISIT OCT 18, 2005 MANILA - Philippine Secretary of Foreign Affairs Alberto G. Romulo has underlined Russia's role as an important fuel supplier to the Philippines. Romulo issued the statement after a successful three-day working visit to the Russian Federation which ended last Friday. PHILIPPINE DEP'T DEVELOPS ENERGY EFFICIENT LIGHTING STANDARDS OCT 18, 2005 MANILA - The Philippine Department of Trade and Industry's Bureau of Product Standards (DTI-BPS) is developing 21 new standards to make lighting products sold in the local market more energy efficient in light of the global energy crisis. Under the Philippine Efficient Lighting Market Transformation (PELMAT) Program, a five-year project of the Department of Energy (DOE) to promote the energy efficient lighting (EEL) system in the country, the BPS is committed to develop 21 standards on EEL systems in an 18-month period. PHILIPPINE, RUSSIAN FOREIGN MINISTERS AGREE TO BOOST COOPERATION OCT 18, 2005 MANILA - Philippine Foreign Secretary Alberto G. Romulo and Russian Foreign Minister Sergey Lavrov have reached agreement on a number of key issues, including expanding cooperation in the fields of energy and anti-nuclear proliferation, the Department of Foreign Affairs (DFA) said. The two officials also agreed to promote trade, culture, education, science and technology, sports and transport, as well as counterterrorism, poverty alleviation, and interfaith dialogue. FILIPINO SOLON SEEKS PERMANENT EXEMPTION OF POWER, OIL FROM EVAT OCT 21, 2005 MANILA - Surigao del Norte Rep. Robert Ace Barbers on Thursday moved for the exemption of oil and power from the soon to be imposed expanded value added tax (EVAT). Barbers said he filed House Bill 4761 to dampen the adverse effects of unabated rise in cost of oil in the international market. PHILIPPINES COULD EMERGE AS MAJOR NATURAL GAS SUPPLIER: BANK OCT 25, 2005 MANILA - New York-based investment bank Morgan Stanley forecast that the Philippines could emerge as a major global supplier of natural gas if it is able to fully develop its renewable sources of energy. In its latest Equity Research report on the Asia Pacific, Morgan Stanley noted that the biggest challenge for the Philippine energy sector was the need to correct the energy imbalance that has forced the country to remain heavily dependent on imported oil. REGULATORY ISSUES CITED THAT MAY DERAIL NAPOCOR PRIVATIZATION OCT 25, 2005 MANILA - New York based investment bank Morgan Stanley has urged the national government to address regulatory issues that may discourage private investors from

acquiring assets of the National Power Corp. (Napocor). In its Fixed Income Research, Morgan Stanley raised the possibility that the privatization of 70 per cent of Napocor would not be completed by mid-2006, as earlier announced by the national government. SPRATLY ISLANDS SEEN TO HOLD LARGE OIL, NATURAL GAS DEPOSITS OCT 26, 2005 PUERTO PRINCESA CITY - The Kalayaan Island Group (KIG), better known as Spratly Islands, the sovereignty of which is claimed by Taiwan, China, Vietnam and the Philippines, is believed to be sitting on top of what could the largest oil and natural gas deposits in the world. According to former deputy speaker and Presidential Adviser for Mindoro, Marinduque and Romblon (Mimaro) Alfredo Abueg Jr., the economic potention of Kalayaan, located between the oilfields of Brunei and Borneo in the south and Linapacan and Malampaya oilfields in the north China, is not limited to its marine resources. ADB URGED TO CONTINUE HELPING PHILIPPINE POWER SECTOR OCT26, 2005, ADB Media Center ADB should continue to support the Philippine power sector, particularly its transformation to a well regulated, competitive sector that is financially viable, according to a new report. The report (http://www.adb.org/Documents/Reports/SAPE/PHI/sap-phi-200509.pdf), released recently by the ADB's Operations Evaluation Department, evaluated ADB's 30 years of assistance to the Philippines power sector, for which it has been lead development partner. More than a quarter of ADB's total US$8.6 billion financial assistance to the Philippines was for energy development and the power sector over the period. ADB's support for the power sector includes 23 public sector loans valued at $2.12 billion, 3 private sector loans and equity investments totaling $90 million, 21 technical assistance grants worth $9.42 million, and credit enhancements to support $642 million in public bond issues. The review assessed the impact of ADB's assistance on development of the sector and identified ways in which ADB, the Government, private sector, and other stakeholders can work together to meet the sector's future needs effectively. Major findings of the report included: * More than 80% Filipinos now have access to electricity, compared to 20% in the early 1970s; ADB's assistance has helped to achieve this increase. * Access to electricity helps to improve the quality of people's lives, as shown by a socioeconomic survey conducted as a part of the evaluation; The survey found that, compared to households without electricity, electrified households tend to have higher incomes, lower birth rates, longer studying time for children, better access to entertainment and information, and greater use of electric appliances. * The infrastructure in the power sector is generally well operated and maintained. * ADB-supported hydropower projects in Mindanao, which form the backbone of Mindanao's generation capacity, reduced the need to import expensive oil.But the report noted that ADB's assistance only partly succeeded in helping to provide reliable and affordable power supply. It pointed out that electricity in the Philippines is expensive compared to other Asian countries, partly due to the archipelagic nature of the country, which makes building and maintaining power grids difficult and expensive. Despite the high tariffs, the sector is heavily indebted and is not financially viable. "At the project level, ADB's support has generally achieved good to excellent outputs such as power plants, substations, and transmission lines, which have helped achieve a nearly 60% increase in electrification coverage of the country," says C.C. Yu, ADB Senior Evaluation Specialist. "However, at the sector level, the assistance program did not achieve two key goals: provision of reliable and affordable electricity and a financially viable power sector. We have to do better in the future - particularly in the areas of producing more realistic demand forecasts in project appraisal, controlling project costs and delays, and improving sector governance. The Government's determination in carrying out the ongoing sector reforms and privatization of generation and transmission assets in an open and transparent manner will be a key factor for achieving the sector goals." ADB has supported the Government's

sector restructuring and reforms, points out Bruce Murray, Director General of ADB's Operations Evaluation Department. "However, the time required for, and risks associated with, power sector restructuring are greater than originally anticipated. This has also been the case in other countries," he said. "Developing an experienced, impartial sector regulator and enabling environment for the private sector takes time. Sustained support from ADB and other development partners will be required for another decade or more." The report recommended that the ADB should engage in policy dialogue to help get the power sector on a sound financial footing and to create an enabling environment for the private sector to invest in power projects. The franchises should be awarded to private concessionaires in a transparent, competitive manner. There is a perception that corruption may have infected the power sector in the past. ADB should seek ways to address the issue of perceived corruption. Otherwise, the developmental impact of ADB's assistance will be diminished, the report said. Patrick Giraud, Director, Southeast Asia Infrastructure Division adds that the evaluation provides guidance for designing future ADB programs and projects in the power sector. "ADB, in collaboration with other development partners, is discussing a comprehensive and integrated Power Sector Development Program with the Government to address the critical challenges to restructure and privatize the Philippine power sector," he says. ADB recently provided creditors' consent to the sale of Masinloc Power Plant and is finalizing a loan amendment agreement to allow the transfer of all assets and liabilities of the National Power Corporation to the Power Sector Assets and Liabilities Management Corporation (PSALM)/National Transmission Commission (TRANSCO). ADB SHOULD CONTINUE HELPING PHILIPPINE POWER SECTOR: STUDY OCT 27, 2005 MANILA - A recent economic study has advised the Asian Development Bank (ADB) to continue pledging its support to the Philippine power sector to make it better regulated, competitive and financially viable. The ADB has been giving assistance to the Philippine power sector the past 30 years. CORRUPTION JACKING UP ELECTRICITY COST -- ADB STUDY OCT 28, 2005, Doris C. Dumlao, Inquirer News Service YOU WONDER why your electricity bill is so high? It’s because of corruption, says the Asian Development Bank (ADB). A new study by the bank warns that “deeply rooted” corruption is jacking up costs of power projects in the Philippines, delaying their implementation and providing Filipino households and businesses with expensive but unreliable electricity services.“If unmitigated, the growing negative perception will adversely affect the inflow of investments into the sector,” the ADB said in a study assessing its assistance to the local power sector as a lead development partner over the last 30 years. It acknowledged that the bank’s assistance program had failed in helping to provide the country with reliable and affordable electricity as well as a financially viable power sector and pledged to do better. The bank lamented that corruption existed even in ADB-supported power projects, putting the multilateral lender’s own reputation at risk. “ADB’s support of sector reforms and privatization exposes ADB to corruption-related risks, which highlights the need to carry out such reforms and privatization openly and transparently,” the study said. Nevertheless, the study said the ADB should continue to support the sector, particularly its transformation to a well-regulated, competitive sector that is financially viable. The ADB study, which devoted a 13-page appendix on corruption using inputs from Transparency International, said corruption was contributing directly to higher costs of electricity. It noted that household electricity rates in the Philippines were the third highest after Japan and Hong Kong and were two to three times more expensive than in most other countries. It said corruption was involved in almost all phases of a project, from tendering and bidding to operation and maintenance as well as privatization and awarding of independent power producing contracts. “The relatively large number of alleged corruption incidences at the stage of

privatization implementation might have been driven partly by some special interest groups opposed to the privatization of the power sector or commercial competitors,” it said. The efforts to circumvent procedures designed to prevent corruption by some individuals within executing agencies, financing agencies, government and contractors also lead to project delays, the study added. The bank said the country’s corruption problem must be solved. Business and residential customers, particularly the poor, should not pay for corruption through higher electricity rates and taxes. The relatively low conviction rates in corruption cases in the Philippines provide little deterrence to potential offenders, the study said. It cited as an example the case of the mothballed $2.3-billion Bataan Nuclear Power Plant, which was riddled with corruption charges and subjected to the arbitration and civil suits but still without major convictions. EASTERN PETROLEUM TO OFFER ALTERNATIVE FUEL PRODUCTS IN MINDANAO NOV 1, 2005 DAVAO CITY - Alternative fuels will be readily available in Mindanao by January 2006 as independent oil firm Eastern Petroleum (EP) will open its distribution centers in various parts of the Philippine island. EP chief executive officer Fernando Martinez said 30 distribution centers will be established before the end of the year in Northern, Southern and Central Mindanao regions. FILIPINO SOLON WANTS PETROLEUM, POWER EXEMPTED FROM EVAT NOV 2, 2005 MANILA - With the implementation of the Philippines' Expanded Value Added Tax (EVAT) starting today, an administration lawmaker vowed to hasten the passage of a bill that would re-exempt petroleum and power from the tax measure. Mandaluyong City Rep. Benjamin Benhur Abalos Jr. said the House committee on ways and means has promised him that his proposal seeking a two-year moratorium on the imposition of EVAT on oil and power will be calendared as soon as the session resumes. FILIPINO SOLON SEEKS PROBE ON NAPOCOR ASSETS NOV 2, 2005 MANILA - Quezon Rep. Danilo Suarez on Tuesday called for an investigation into the reported delay in the implementation of Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA Law), particularly on the provision concerning the disposal of assets of the National Power Corp (Napocor). Suarez said officials of the Power Sector Assets Management Corp. (PSALM) have admitted that so far, only 11 per cent of Napocor's generating assets and only six of 30 power plants have been sold. ENERGY REGULATORY COMMISSION ASSURES FILIPINOS ON EVAT NOV 3, 2005 MANILA - The Energy Regulatory Commission (ERC) has assured the Philippine public that only 'legitimate costs' will be paid in an 'inevitable' power rate hike due to the expanded value-added tax (EVAT) law. "Power rate hike due to the EVAT is inevitable but we see to it that only the legitimate cost will be paid by the end-users," ERC Chairman Rodolfo B. Albano, Jr. said. ARROYO TO INAUGURATE POWER SUBSTATION, BRIDGES IN BATANGAS NOV 3, 2005 MANILA - Philippine President Gloria Macapagal-Arroyo will visit San Juan, Batangas on Thursday to lead the symbolic switch-on and inauguration of the town's newly-upgraded power lines and substation. The President will also preside over the ceremonial unveiling of the markers of the seven bridges constructed in various barangays (community villages) of the town under the Presidents Bridge Program.

PHILIPPINE GASOLINE PRICES LOWER THAN THAILAND, VIETNAM, US: WB NOV 4, 2005 MANILA - Local premium gasoline prices in the Philippines rose at a slower pace from December 2002 to August 2005, compared to some of its neighbours in East Asia and the Pacific, including Thailand, Vietnam and the United States. The East Asia and the Pacific Regional Update released by World Bank Thursday showed that pump prices in the Philippines rose 71.4 per cent from 35 US cents in December 2002 to 60 US cents in August 2005. OIL EXPLORATION SEEN TO LOWER PHILIPPINE RELIANCE ON IMPORTS NOV 7, 2005 BOHOL - The Philippine Department of Energy (DoE) said that oil exploration in the Cebu Strait and other parts of the country would eventually help the country achieve energy independence. Ranilo Abando, director of DoE's Energy Resources Development Bureau, said the continued petroleum exploration in the country is in line with the government's program of development to minimize its dependence on oil imports. HOUSEHOLDS IN NORTHERN MINDANAO GET ELECTRICITY NOV 7, 2005 CAGAYAN DE ORO CITY - A total of 449,656 households in the Philippines' northern Mindanao were energized during the second quarter this year as part of the government's nationwide electricity program. "This represents 65.23 per cent of the region's 689,318 total households," said Director Myra V. Balandra of the National Economic and Development Authority for region 10 said. ARROYO APPROVES TWO MAJOR MINDANAO POWER PROJECTS NOV 15, 2005 GENERAL SANTOS CITY - Mindanao power requirements will soon get a boost as Philippine President Gloria Macapagal-Arroyo has approved the implementation of two major power transmission line projects in the island costing over P2 billion (US$36.5 million). The Mindanao Economic Development Council announced Monday that the General SantosTacurong and the Sangali-Pitogo, Zamboanga City Transmission Line Projects were among the major items under the infrastructure development which the President approved at a recent Investment Coordinating Committee Meeting of the National Economic Development Authority (NEDA) Board. PHILIPPINES INSTALLS 8,500 SOLAR POWER SYSTEMS IN SEVEN REGIONS NOV 16, 2005 PUERTO PRINCESA CITY - The Philippine National Oil Corporation (PNOC) and the Department of Energy (DOE), in partnership with the Netherlands government, have installed 8,500 solar home systems (SHS) in unelectrified rural households in Regions I to VII, Cordillera Autonomous Region and Mindanao. Antonio Buenviaje, division chief, PNOC Non-Conventional Division Energy Research Department, said they have put up 8,500 solar home systems as part of the five-year PNOC Solar Home Systems Distribution Project which is targetting 15,100 installations from 2002-2007. PHILIPPINES SET TO MASS PRODUCE SUGAR SORGHUM FOR BIOFUEL NOV 18, 2005 MANILA - The Philippines is set to mass produce sugar sorghum for biofuel use as alternative source of energy. Bukidnon Rep. Juan Miguel Zubiri said the sweet sorghum hybrid called SSH 104, currently being developed by the Sugar Regulatory Administration (SRA), can be easily converted into ethanol.

FILIPINO SOLON URGES OIL FIRMS TO RAISE PUMP PRICE ROLLBACKS NOV 21, 2005 MANILA - A solon is urging oil firms, particularly Pilipinas Shell Petroleum Corp. and Petron Corp., to increase their pump price rollbacks due to the softening of crude prices and a stronger peso. "They should disabuse the perception that they are too quick to jack up pump prices when oil prices shoot up, but too slow to roll back once prices decline," said Catanduanes Rep. Joseph Santiago, member of House committee on energy. MEASURES IN PLACE TO SOFTEN RISE IN ELEC RATES: PHILIPPINE DEPT NOV 22, 2005 MANILA - Mitigating measures to soften the impact of the rise in electricity rates next month are in place, the Philippine Department of Energy said on Monday. In a roundtable meeting in Philippine Presidential Palace Malacanang on Monday afternoon between President Gloria Macapagal-Arroyo and some members of her Cabinet, DoE Secretary Raphael Lotilla said that his department has instituted the Life Line Rates and the Economic Dispatch Schedule program to soften the effects on consumers once electricity rates go up next month. PHILIPPINE LIFELINE POWER CONSUMERS SET TO PAY E-VAT IN DEC NOV 22, 2005 MANILA - Unless the Energy Regulatory Commission (ERC) issues an order halting the imposition of the 10 per cent value-added tax (VAT) on lifeline power consumers, even poor income families consuming at least 50 kilowatt hour a month will have to live with the additional cost of power. In Monday's conference on VAT on oil and power at the Asian Institute of Management Energy, Undersecretary Melinda Ocampo said the various power distributors, including Manila Electric Company (Meralco), was given the choice whether to exempt the lifeline consumers from VAT and make the higher income household consumers subsidized their VAT due or even expand the lifeline coverage to include those clients consuming up to 200 kwh a month. POWER SECTOR PRIVATIZATION DOWN TO ONE PLANT THIS YEAR NOV 24, 2005, Ira May Joyce P. Pedrasa, BusinessWorld (Philippines) The Power Sector Assets and Liabilities Management Corp. (PSALM) has scheduled only one National Power Corp. (Napocor) asset for divestment before yearend, forcing it to squeeze in the first semester the rest of the power plants that need to be privatized. In a presentation to the Institute of Integrated Electrical Engineers yesterday, PSALM President Nieves L. Osorio said that the 225-mega-watt (MW) Bataan thermal plant is the single plant up for sale this year. Based on the Electric Power Industry Reform Act of 2001, the government should be able to privatize 70% of the generating assets before it can declare an open access, or use of the transmission and distribution lines by other groups for a fee. Open access, which will pave the way for competition, is scheduled in July. The agency tasked to dispose off the generation assets started selling the power plants only in 2002, despite the power reform law's provision that PSALM should start selling six months after the implementation of the law. It has so far sold only 11%. The Bataan thermal plant is a decommissioned facility. PSALM earlier said that it is trying to cover only the installed generating plants in computing the 70% threshold level. It is selling the decommissioned plants between the generating assets' schedules to manage better the investors' needs and portfolio. It first targeted to sell all power plants within the year, but retracted and moved the deadline to the first quarter of 2006. There are 31 assets up for privatization with an installed generating capacity of 4,337.2 megawatts (MW). The threshold level means that PSALM has to sell all 3,036.04 MW until July, but it also has to consider the pre-bidding processes. The pre-bid activities and bidders' due diligence for the Calaca coal plant (Batangas), Tiwi and Makban geothermal (Albay and Laguna), Pantabangan and Masiway

(Nueva Ecija) and Magat (Isabela) hydroelectric plants are under way. PSALM still has to set up the privatization of the following plants to achieve such target: 310-MW Navotas I and II, 192.5-MW Palinpinon, the 114- MW Iligan I and II, 112.5-MW Tongonan, 75-MW Ambuklao and 100-MW Binga plants, 150-MW BacMan, 0.8-MW Amlan, and 22-MW Bohol plant. "The [earlier schedule] was really aggressive, we're going to have to come up with a workable [timetable] within the existing environment," Ms. Osorio said. PSALM was earlier hit by lawmakers and analysts for not making good its targets for the privatization plan. It, however, blamed the economic scenario for the delay, and the lack of a ready market for the power output of the incoming investors. Ms. Osorio said investors are also awaiting the commercial operation of the wholesale electricity spot market that will assure them of a venue where they can sell their supplies. She did not say whether the July 2006 openaccess target was still a realistic schedule but said that the industry regulator has the responsibility to lead the power sector. MALACANANG KEEN ON COAL PLANT IN SULTAN KUDARAT NOV 25, 2005 GENERAL SANTOS CITY - Philippine Presidential Palace Malacanang vowed to prioritize the opening of the proposed coal mining and coal-fired power plant projects in the costal town of Palimbang in Sultan Kudarat as part of its efforts to ensure the rising energy needs of southern and central Mindanao. But environmentalists the construction of a coal plant in Sultan Kudarat because of its effect to the environment. saying it is not the answer to energy security in the area. PHILIPPINES' PSALM NOTIFIES YNN OF COMPLETION OF CONDITIONS NOV 30, 2005 MANILA - The Power Sector Assets and Liabilities Management Corporation (PSALM) has notified YNN Pacific Consortium Inc. that it has completed all conditions precedent as specified in the asset purchase agreement that the two parties executed after YNN won the bidding for the 600-megawatt Masinloc coal-fired power plant last year. In its letter dated November 21, PSALM has informed YNN that it has complied with all the requirements, including securing the consent of all of National Power Corporations creditors for the sale and transfer of the Masinloc plant - the Asian Development Bank, the World Bank and the Japan Bank for International Cooperation. PHILIPPINES' NAPOCOR TO FLOAT US$101.9 MLN IN ZERO-COUPON BONDS NOV 30, 2005 MANILA - The National Power Corporation (Napocor) is floating zero-coupon bonds worth P5.5 billion (US$101.9 million) in the domestic financial market with the proceeds be used to finance its capital expenditures and service its maturing debts. Guaranteed by the Philippine government, the bonds will be underwritten by the ING Bank N.V. BDO Capital and Investment Corp. and the PCI Capital Corp. will be the issue managers. OFFICIALS ASSURE AMPLE POWER SUPPLY IN PHILIPPINES' VISAYAS DEC 2, 2005 DUMAGUETE CITY - Energy officials have assured businesspeople of ample supply of electricity in the region over the next several years amid fears that inadequate power generation would discourage possible investors from setting up in the Philippines' Oriental Negros. The officials gave the assurance Wednesday in a forum where energy conservation measures were discussed. PHILIPPINES' NORECO 2 URGES CONSUMERS TO USE ELECTRICITY WISELY DEC 5, 2005

DUMAGUETE CITY - Officials from the Negros Oriental Electric Cooperative II (NORECO II) are urging their consumers to use electricity wisely and help the government's efforts on energy conservation. In a recent forum, NORECO II officials emphasized that energy conservation includes not just cutting down on electricity costs but the wise utilization of energy resources, such as gasoline and LPG. PHILIPPINES' PSALM GIVES YNN UNTIL APR 06 TO PAY UPFRONT PAYMENT DEC 5, 2005 MANILA - The Power Sector Assets and Liabilities Management Corporation (PSALM) has asked YNN Pacific Consortium to pay on or before March 31, 2006 the US$2 million upfront payment for the 600 megawatt Masinloc coal-fired power plant in Zambales province. Under the asset purchase agreement, PSALM must set YNN's deadline for the remittance of the upfront payment and closing deliverables after PSALM completes all of its conditions precedent, which include the consent of creditors that include the World Bank (WB), Asian Development Bank (ADB) and the Japan Bank for International Cooperation (JBIC). PHILIPPINES' MINDANAO FACES LOOMING POWER SHORTAGE DEC 9, 2005 DAVAO CITY - Mindanao is set to face a power shortage in the next three years if no efforts are made to connect the island's power grid to that of Luzon and Visayas by 2006. National Transmission Corporation (Transco) Vice President Dominador Geonzon said the government has to make a decision as early as next year to save Mindanao from power deficit starting 2008. ARROYO SEEKS TO PROMOTE ENERGY CONSERVATION DEC 12, 2005 MANILA - Despite the improvement and development of alternative fuels to cushion the impact of oil price hikes, Philippine President Gloria Macapagal-Arroyo reminded all government agencies and offices on Friday to continue implementing Executive Order 126 mandating all government agencies and offices to reduce their electricity and fuel consumption by 10 percent. The President issued the reminder after awarding plaques of recognition to eight government agencies for their strict implementation of energy efficiency and conservation measures and giving special citation awards to seven pioneering partners of the government in its alternative fuels development program. PHILIPPINE OIL FIRM LAUNCHES "PHOENIX FUELS" DEC 12, 2005 DAVAO CITY - An all-Filipino oil corporation based in this city is set to boost the oil industry in Mindanao using the trademark "Phoenix Fuels." The Davao Oil Terminal and Services Corporation (DOTSCo) launched here on Thursday the new addition to the country's gasoline chains. ARROYO STRESSES DEVELOPMENT OF ALTERNATIVE FUEL SOURCES DEC 14, 2005 KUALA LUMPUR - Philippine President Gloria Macapagal-Arroyo on Tuesday called for stepped up efforts to develop alternative sources of fuel, the strengthening of the fight against terror, along with the holding of inter-faith dialogues to address the worldwide problem of terrorism. The President also batted strongly for collective efforts to combat poverty in the Brunei-Indonesia-Malaysia-Philippines-East Asia Growth Area (BIMP-EAGA) in bilateral talks with fellow heads of states on the sidelines of the 11th Association of Southeast Asian Nations (ASEAN) Summit in the Malaysian capital.

ARROYO PROPOSES MEASURES TO ADDRESS HIGH OIL PRICES DEC 14, 2005 KUALA LUMPUR - Philippine President Gloria Macapagal-Arroyo on Monday pushed for "collective development on a large scale of alternative and indigenous" energy sources to address high oil prices at the Association of Southeast Asian Nations Plus Three (ASEAN +3) Summit here. The ASEAN +3 Summit involves the leaders of the 10 ASEAN member countries and of the regional groups three partners Japan, China and South Korea. POWER SITUATION IN PHILIPPINES' ILOILO CITY REMAINS UNCERTAIN DEC 15, 2005 ILOILO CITY - The city government here urged residents to prepare for the worst and hope for the best as there is less than a day left before the scheduled shutdown of Panay Power Corporation (PPC) here due to fuel depletion. Mayor Jerry P. Treas has already met with the Iloilo City Disaster and Coordinating Center (ICDCC) and the Iloilo City Peace and Order Council (ICPOC) to discuss preparations should PPC make true its words to shut down its operation midnight of December 15. ARROYO URGES DEVELOPMENT OF ALTERNATIVE SOURCES OF ENERGY DEC 15, 2005 KUALA LUMPUR - Philippine President Gloria Macapagal-Arroyo called Wednesday on the 16member East Asia Summit (EAS) to undertake collective efforts to develop alternative and indigenous energy sources on a massive scale amid the continuing volatility of oil prices. "The upward pressure of oil prices in recent months has taken some kind of toll on all our economies and the oil market indicates that oil prices will continue to be high and volatile," she said. ARROYO ASSURES STEADY POWER SUPPLY IN ILOILO CITY DEC 15, 2005 ILOILO CITY - Philippine President Gloria Macapagal-Arroyo has assured a steady power supply in this city despite power generators Mirant Global and Panay Power Corporation (PPC) threatening to stop supplying power to distributor Panay Electric Company (PECO) effective December 16, according to Energy Secretary Raphael Lotilla. The President has called on Lotilla to explain the power situation in Iloilo City during a Christmas dinner she tendered for selected Visayas mediamen last Friday in Philippine Presidential Palace Malacanang. PALAWAN LEGISLATORS SUPPORT CALL FOR USE OF COCO BIODIESEL DEC 15, 2005 PUERTO PRINCESA CITY - Members of the Provincial Board (PB) of Palawan are supporting Philippine President Gloria Macapagal-Arroyo's order to use one per cent coconut methyl ester in diesel requirements. Their support is substantiated by their "resolution supporting memorandum circular No. 55 issued by President Gloria Macapagal-Arroyo directing all departments, bureaus, offices and instrumentalities of the government, including government-owned and controlled corporations to incorporate the use of one per cent by volume coconut methyl ester in their diesel requirements." S. KOREA'S KEPCO TO BUILD THERMAL POWER PLANT IN PHILIPPINES DEC 16, 2005 SEOUL - The Korea Electric Power Corp. (KEPCO) said Friday it jointly broke ground for a 200-megawatt power plant on the island of Cebu in the Philippines with the Southeast Asian country's Salcon Power Corp.

PHILIPPINE GOV'T EYES THREE PROJECTS TO BOOST POWER IN REGION 12 DEC 16, 2005 GENERAL SANTOS CITY - In a bid to help offset Mindanao's growing power requirements, the national government has lined up the development of at least three major power generation projects in Region 12 over the next decade. Hadja Sittie Mariam Lim, National Economic and Development Authority (NEDA)-12 director, said the Department of Energy (DoE) and the National Transmission Corporation (Transco) have set as top priority the development of the Pulangi V Hydroelectric Plant, Sultan Kudarat Coal Project and Mt. Apo Geothermal Power Plant optimization. COAL-FIRED POWER PLANT THE CHEAPEST FUEL SOURCE: PHILIPPINE DEPT DEC 16, 2005 ILOILO CITY - Construction of a high capacity coal power plant is the ultimate solution to the looming power crisis in Iloilo, Energy Secretary Rafael Lotilla said. He pointed out that whether the people will accept the power plant or not, the fact remains that coal is the cheapest source of fuel. CABINET UNDERTAKING REVIEW OF MERALCO'S HUGE DEBT: MALACANANG DEC 19, 2005 MANILA - The Cabinet is undertaking a review of the huge indebtedness of Manila Electric Co. (Meralco) to the government arising from the power that Meralco contracted to buy from the government-owned National Power Corp., Press Secretary and Presidential Spokesman Ignacio Bunye said in his weekly column, "The View From The Palace". Bunye cautioned however against any speculation on the outcome of the Cabinet review. MANILA ELECTRIC DENIES IT OWES NAPOCOR US$789 MILLION DEC 20, 2005 MANILA - Manila Electric Co. (Meralco) has denied that it owes state-run National Power Corporation (NPC) P42 billion (US$789 million). "We don't have any liability of P42 billion," Meralco Vice President Elpi O. Cuna said. SINGAPORE VIETNAM-SINGAPORE US$100 MLN JV APPROVED SEPT 26, 2005 HANOI - The Vietnam's Prime Minister approved a plan for a joint-venture company to be established to construct the Van Phong Petrol Terminal in central Vietnam. Vietnam National Petroleum Corporation (Petrolimex) and its subsidiary Petrolimex Joint Stock Insurance Company (Pjico) have joined with a Singapore firm to build the terminal and an oil-storage facility in the coastal central province of Khanh Hoa. SINGAPORE'S PPL SHIPYARD EXPANDS REACH INTO GULF OF MEXICO OCT 14, 2005 SINGAPORE - Rig-building major PPL Shipyard is set to expand its reach in the Gulf of Mexico with the acquisition of US-based Sabine Industries and a number of its subsidiaries in a deal worth US $6.4 million. PPL Shipyard, a subsidiary of SembCorp Marine, said the purchase will be funded from internal sources. SINGAPORE AIRLINES' H1 NET PROFIT CRIMPED BY HIGH FUEL COSTS OCT 28, 2005 SINGAPORE - Singapore Airlines reported a 3.9 per cent fall in fiscal first half net profit when compared to the same period last year as higher oil prices sent costs skywards.

"The higher fuel price alone added S $731 million (US$433 million) to group expenditure," the airline said in a statement. "Excluding fuel, group expenditure actually fell 2.2 per cent." SINGAPORE POWER LAUNCHES US$1.17 BLN IPO OF AUSTRALIAN ASSETS NOV 7, 2005 MELBOURNE - Singapore Power plans to raise A$1.6 billion (US$1.17 billion) through the initial public offering of almost half the stake in its Australian gas and electricity distribution business, SP AusNet. Under the offer, due to open on November 15, Australian investors will be able to subscribe for shares in SP AusNet at A$1.57 a share. SOUTH KOREA FITCH UPGRADES KEPCO'S RATING SEPT 1, 2005 SEOUL - Global ratings agency Fitch Ratings said Thursday it has upgraded its rating for Korea Electric Power Corp. (KEPCO) to "A" from "A-," citing consistent improvements in its credit quality over the past three years. The ratings agency also said it has raised the shortterm rating of South Korea's electricity monopoly to "F1" from "F2," with a stable outlook. S KOREAN GOVT RECEIVES BIDS FOR NUCLEAR WASTE REPOSITORY SEPT 1, 2005 SEOUL - The South Korean government has received bids from four local administrations to build a repository for low- and intermediate-level radioactive waste, Commerce and Industry Minister Lee Hee-beom said Thursday. The minister said detailed studies were under way to ascertain the safety and feasibility of the sites to determine if they could house the storage facility. SK CORP SIGNS MOU TO TAKE OVER INCHON OIL SEPT 2, 2005 SEOUL - SK Corp., South Korea's leading oil refiner, signed a memorandum of understanding (MOU) on Friday to take over financially-troubled Inchon Oil Refinery Co.. Under the MOU, SK will pay 3.2 trillion won (US $3.10 billion) for Inchon, which went into court receivership after becoming insolvent in March 2003. DEADLINE FOR VOTE ON S.KOREAN NUCLEAR REPOSITORY SET FOR NOV 22 SEPT 2, 2005 SEOUL - The South Korean government is pushing for a regional referendum in October or November to decide where to build a nuclear waste repository, an official said Friday. The new search for a candidate site comes after strong opposition from local residents forced the government to back down from a site it had selected in Buan, about 280 kilometers southwest of Seoul, in 2003. ENRON TO DISPOSE OF STAKE IN JV WITH S.KOREA'S SK CORP SEPT 2, 2005 SEOUL - Now-bankrupt U.S. energy trader Enron Corp. will dispose of its stake in a joint venture with South Korea's largest refiner, SK Corp. (KSE:003600), SK officials said Friday. Prisma Energy International Inc., which manages Enron's international energy interests, plans to sell its 50 per cent stake in SK-Enron Co., which was set up with SK Corp. in 1999, they said. S.KOREA'S STATE OIL FIRM FINDS NEW OIL WELL OFF VIETNAM SEPT 2, 2005 HANOI - A consortium led by Korea National Oil Corp., South Korea's state-run oil company,

has found a new oil field in southern waters off Vietnam, the Korean company said Thursday. The group, which began drilling on July 26, extracted an average 9,197 barrels of crude a day from the waters in an area called Block 15-1, Korea National Oil said. SK CORP SIGNS MOU TO TAKE OVER INCHON OIL SEPT 5, 2005 SEOUL - SK Corp., South Korea's leading oil refiner, signed a memorandum of understanding on Friday to take over financially-troubled Inchon Oil Refinery Co.. Under the MOU, SK will pay 3.2 trillion won (US$3.10 billion) for Inchon, which went into court receivership after becoming insolvent in March 2003. SOUTH KOREA TO RELEASE OIL RESERVES SEPT 5, 2005 SEOUL - The decision by the South Korean government to release 2.88 million barrels of its strategic petroleum reserves should contribute to stabilizing the world's oil market, which is reeling from the Hurricane Katrina disaster, a government official said Sunday. "The move is in response to the International Energy Agency (IEA) decision, and is the first time that all 26 members have decided to work together to try stabilize global prices," said Oh Young-ho, head of the energy and resources policy office at the Commerce, Industry and Energy Ministry. FITCH ASSIGNS 'A' LONG-TERM RATING TO KEPCO SUBSIDIARY SEPT 7, 2005 SEOUL - Fitch Ratings said Wednesday it has assigned an "A" long-term credit rating to one of the core generation subsidiaries of the state-run Korea Electric Power Corp. (KEPCO) (KSE:015760). The rating, which is the same as the one given its parent KEPCO, was assigned to Korea Hydro & Nuclear Power Co. with a stable outlook, the global credit appraiser said. It also gave an "F1" short-term rating to the company. S.KOREA'S KEPCO TO BUILD WIND POWER PLANT IN CHINA SEPT 7, 2005 SEOUL - South Korea's state-run electric power company said Monday it will participate in a project to build a wind power plant in China, signaling its penetration into the world's largest wind power market. Korea Electric Power Corp. (KEPCO) will join hands with China Datang Corp. in building the 49,000 kilowatt wind power plant in Gansu Province. LG IN TALKS WITH KAZAKHSTAN'S OIL FIRM TO BUILD JV PLANT SEPT 7, 2005 SEOUL - LG International Corp., the trading arm of South Korean conglomerate LG Group, is in talks with Kazakhstan's state-run oil and gas company to construct a joint-venture polyethylene plant in the Central Asian country, it said Tuesday. The company said that it has engaged in the talks with Kazmunaigaz since early this year and the two parties are discussing signing a memorandum of understanding on the deal. S.KOREAN MINISTER URGES CONCERTED EFFORTS FOR STABLE OIL PRICES SEPT 8, 2005 JEJU - South Korea's finance minister urged the 21 member states of the Asia Pacific Economic Cooperation (APEC) forum on Thursday to join efforts to tackle high oil prices, saying soaring energy costs are undesirable for both oil-producing and consuming economies. "Persistent high oil price is an issue faced by all parts of the world.. It is urgent for oil producing and consuming economies to join their efforts to bring demand and supply into balance," Han Duck-soo said in an opening speech of the 12th APEC finance ministers meeting on the country's resort island of Jeju.

S.KOREA'S FIRST FOREIGN-INVESTED POWER PLANT TO START FULL OPS SEPT 8, 2005 SEOUL - A foreign-invested power plant will start full operations this week for the first time in South Korea, raising the competitiveness of the country's electricity generation sector, the government said Wednesday. The Ministry of Commerce, Industry and Energy said the Meiya Yulchon Combined Cycle Power Plant in the city of Suncheon, South Jeolla Province, will be dedicated on Thursday. S.KOREA DECIDES TO RELEASE 2.9 MLN BARRELS FROM OIL RESERVE SEPT 9, 2005 SEOUL - South Korea's government decided Friday to release 2.9 million barrels of crude oil and petroleum products from its strategic petroleum reserves this week to curb oil prices. According to the Ministry of Commerce, Industry & Energy, the ministry will release 2.5 million barrels of crude oil and 400,000 barrels of gasoline, light-oil and other petroleum products from Saturday until Oct. 10. 2 100-MW COAL-FIRED POWER PLANTS IN CEBU TO BREAK GROUND NOV 5 SEPT 9, 2005 CEBU CITY - Salcon Power Corp. and Korean Electric Philippines Co. (Kephilco) expect to conduct the groundbreaking on two 100-megawatt coal-fired power plants in the southern Cebu town of Naga on Nov. 5. Reinerio Lastimoso, Salcon vice president for group power operations, on Tuesday told a committee of the Regional Development Council 7 that one unit might be commercially operational on October 8 next year, a project that is being opposed by the Cebu Alliance for Renewable Energy (Care). S. KOREA'S SK NETWORKS OPENS HOLDING COMPANY IN CHINA SEPT 9, 2005 SEOUL - SK Networks Co., the trading arm of South Korea's SK Group, said Thursday it has launched a holding company in Shenyang, northeastern China, to manage its operations in the world's fastest growing economy. The holding company will be responsible for SK Networks' range of operations in China including complex gas stations and terminals and its fashion business, the company said. S.KOREA WINS RIGHT TO DEVELOP NEW YEMEN OIL FIELD SEPT 12, 2005 SEOUL - South Korea's state oil corporation said Friday that it has won the right to develop an oil field in Yemen that is estimated to hold 250 million barrels worth of crude. The field, located in the Sabatayn Basin region in the central part of the country, has already been found to contain oil. It is the fourth oil field in Yemen that the Korea National Oil Corp. (KNOC) has won the right to develop. S.KOREA TO BUILD RESEARCH INSTITUTE FOR NUCLEAR FUSION ENERGY SEPT 13, 2005 SEOUL - South Korea is to set up a large-scale public research institute to produce cheap, clean energy through nuclear fusion, the government said Tuesday. According to the Ministry of Science and Technology, the state-run Korea Research Council of Fundamental Science & Technology approved Tuesday the establishment of the nuclear fusion research center in October. S.KOREAN RESEARCH TEAM DEVELOPS SUPERCONDUCTING POWER CABLE SEPT 13, 2005 SEOUL - A team of South Korean researchers and engineers said Tuesday that they have

developed a high-temperature superconducting power transmission cable that can handle fives times more electricity than existing cables. The new cables can be made a third thinner than current cables, while transmitting much more power, researchers said. The development project was led by the Korea Electrotechnology Research Institute (KERI) and LS Cable Co. SEOUL RULES OUT IMMEDIATE ENERGY-SAVING MEASURES SEPT 15, 2005 SEOUL - South Korea will not take mandatory energy-conserving steps for the time being in light of a recent downturn in oil prices, a senior government official said Thursday. High crude prices have been a large burden on South Korea that depends entirely on imports for oil to power Asia's fourth-largest economy. SAMSUNG ENGINEERING WINS US$350 MLN PLANT DEAL FROM SAUDI ARABIA SEPT 15, 2005 SEOUL - Samsung Engineering Co. (KSE:028050), South Korea's leading industrial plant builder, said Thursday it has won a US$350 million plant construction deal from Saudi Arabia. Under the deal, Samsung Engineering will build the world's largest ethylene glycol plant with an annual capacity of 700,000 tons for Sharq, a state-run petrochemical corporation in Al-Jubail, 600 kilometers east of the Middle Eastern country's capital Riyadh. OIL PRICE HIKE TO SHARPLY CUT S.KOREA'S ECONOMIC GROWTH: BANK SEPT 15, 2005 SEOUL - An additional surge in oil prices for the remainder of the year is likely to cut deep into the economic growth of South Korea, the world's fourth-largest crude buyer, a staterun bank said Thursday. "A 20-percent rise in Dubai crude would knock 0.3 percentage point off the economy's full-year growth," the Korea Development Bank said in a report. U.S. REJECTS N.KOREA'S DEMAND FOR LIGHT-WATER REACTOR SEPT 15, 2005 BEIJING - The U.S. chief nuclear envoy on Wednesday rejected North Korea's demand for a power-generating light-water reactor as inviable, saying that no party in six-nation disarmament talks would be willing to foot the bill. The issue of light-water reactor has emerged as a new sticking point in the six-nation nuclear talks under way in Beijing, along with the North's demand for a right to peaceful use of nuclear technology. HILL CALLS N.KOREA'S DEMAND FOR LIGHT-WATER REACTOR "NONSTARTER" SEPT 16, 2005 BEIJING - Six-party talks on North Korea's nuclear weapons program faced uncertainties Thursday after the communist country added a new item to its shopping list: Westerndeveloped power-generating light-water reactors. The chief U.S. negotiator, Christopher Hill, said his country would never accept or even consider the North's latest demand, calling it a "nonstarter." S.KOREA'S SK NETWORKS WINS DEAL FOR GAS STATIONS IN CHINA SEPT 19, 2005 SEOUL - SK Networks Co., the trading arm of South Korea's SK Group (KSE:003600), has won a bid to build 12 gas stations in the Chinese province of Liaoning, the company said Monday. SK Network's holding company in China recently signed a deal with municipal authorities in Dandong to allow the company to build the gas stations, as well as promising joint projects in the future, according to company officials.

S.KOREA, CHINA AIM TO EXPAND COOPERATION IN NUCLEAR FIELD SEPT 19, 2005 SEOUL - South Korea and China will hold a working-level meeting this week to discuss ways to expand cooperation in this key energy field, the government said Monday. The Ministry of Science and Technology said the three-day meeting, to begin Wednesday in Beijing, will touch on 37 agenda items, including the participation of South Korean companies in construction work on future nuclear power plants in China. S.KOREA TO OFFER FUEL SUBSIDIES TO TAX DEFAULTING TRUCK OWNERS SEPT 19, 2005 SEOUL - The government decided Friday to allow fuel subsidies for commercial truck owners who are behind in their payment of taxes, after a truck operator committed suicide due to financial pressure from rising oil prices. The decision was made during an ad hoc meeting by Construction and Transportation Minister Chu Byung-jik after Kim Dong-yun, a truck driver, died in hospital on Tuesday from injuries sustained from setting himself alight at the entrance to a container terminal in Busan on Saturday. S.KOREAN NUCLEAR PLANTS HAD 66 INCIDENTS SINCE 2002 SEPT 19, 2005 SEOUL - South Korea's nuclear power plants experienced 66 malfunctions, defined as "incidents," in the last four years, a government report said Monday. The Ministry of Science and Technology said that on average there was at least one malfunction at each of the country's power plants every year from 2002 to the present. DOOSAN HEAVY INDUSTRIES EXPORTS NUCLEAR PLANT EQUIPMENT TO U.S. SEPT 19, 2005 SEOUL - Doosan Heavy Industries and Construction Co. said Monday that it has exported US$50 million worth of nuclear power plant equipment to the United States. The four steam generator units manufactured by Doosan are for the Watts Bar nuclear power plant in Spring City, Tennessee, it said. S.KOREA'S POWER AID TO N.KOREA TO COST US$631-US$777 MLN: REPORT SEPT 21, 2005 SEOUL - South Korea is expected to fork out 650 billion won (US$631 million) to 800 billion won (US$777 million) a year for its promise of electricity aid to energy-starved North Korea, a government report estimated Wednesday. Seoul has offered to supply 2 million kilowatts of power to the communist country per year in return for the North abandoning its nuclear weapons ambitions. S.KOREA, JAPAN, CHINA TO HOLD FORUM ON HIGH OIL PRICES SEPT 21, 2005 SEOUL - The big-three oil importers in Northeast Asia are scheduled to hold a forum in Seoul this week to address high oil prices, government officials said Tuesday. According to the Ministry of Commerce, Industry and Energy, representatives from South Korea, Japan and China will meet Wednesday and Thursday to discuss ways of boosting cooperation. S.KOREAN LAWMAKER DECRIES SLOPPY NUCLEAR SAFETY CHECKS SEPT 22, 2005 SEOUL - South Korea's nuclear safety watchdog has not conducted proper safety checks of nuclear reactor facilities and has falsified inspection records, pointing to serious flaws in the nation's nuclear safety controls, a ruling party lawmaker said Thursday. The Korea Institute of Nuclear Safety (KINS) filed a report that said it had checked 10 nuclear power plants for possible radioactive leaks between 2003 and January 2005, but six of the reported checks

were not actually conducted, or their records were forged, Rep. Kang Sung-jong of the Uri Party claimed. S.KOREA'S STX TO FILE UNFAIR TRADE COMPLAINT AGAINST KOGAS SEPT 22, 2005 SEOUL - STX Shipbuilding Co. (KSE:011810), South Korea's seventh-largest shipbuilder, said Thursday it will file a complaint with the country's anti-trust watchdog against Korea Gas Corp. (KOGAS), the state-run gas monopoly, for alleged unfair trade in relation to its bid for liquefied natural gas (LNG) carriers. "KOGAS only left out STX from its screening process for selecting an operator of its LNG carrier business, limiting new market players with an entrance barrier," said an official of the shipbuilder. S.KOREA SEEKS JOINT DEVELOPMENT OF N.KOREAN COAL, OIL SEPT 22, 2005 SEOUL - South Korea is seeking to jointly develop North Korean coal and oil resources as part of a larger deal to expand bilateral cooperation, the government said Thursday. The Ministry of Commerce, Industry and Energy told lawmakers at the parliamentary audit session that it is in the process of evaluating the development potential of North Korean resources. MERRILL LYNCH EXPECTED TO BUY HEADQUARTERS OF S.KOREA'S SK CORP SEPT 26, 2005 SEOUL - A consortium led by Merrill Lynch & Co., the biggest investment bank of the United States, is expected to purchase the headquarters building of SK Corp. (KSE:003600), South Korea's top oil refiner, for about 450 billion won (US$434 million), an industry source said Monday. SK Corp.'s main office in downtown Seoul has been put up for sale as the oil refiner is struggling to raise funds to buy Inchon Oil Refinery Co., the nation's smallest oil refiner. SOUTH KOREA'S S-OIL TO PICK NEW CEO NEXT MONTH SEPT 26, 2005 SEOUL - S-Oil Corp. (KSE:010950), one of the leading refiners in South Korea, said Monday it will hold a board meeting late next month to select a new chief executive officer (CEO). The company's top post has been vacant since former CEO and chairman A.K. Al-Arnaout died on Aug. 27. Aramco of Saudi Arabia is its largest shareholder with a 35-percent stake. S.KOREAN ENERGY CONSUMPTION GROWTH UP IN FIRST HALF SEPT 26, 2005 SEOUL - South Korea's energy consumption grew more than 4 per cent from a year earlier in the first half of this year, a government report said Monday. Total energy consumption reached 114.7 million tons of oil equivalent (TOE), up 4.3 per cent from the same six-month period in 2004, the country's statistical office and Commerce Ministry said. S.KOREA'S OIL CONSUMPTION SLOWS FOR THIRD MONTH IN AUGUST SEPT 27, 2005 SEOUL - The growth of South Korea's oil consumption fell for the third consecutive month in August as high crude prices pushed down domestic demand, a government report said Tuesday. Demand for such oil products as kerosene, diesel oil and naphtha rose a meager 0.2 per cent last month from a year earlier, according to the report by the Ministry of Commerce, Industry and Energy. S.KOREA'S COMMERCE MINISTRY APPROVES TWO NEW NUCLEAR REACTORS SEPT 27, 2005

SEOUL - The Ministry of Commerce, Industry and Energy on Monday approved the construction of two nuclear reactors in Wolsong, North Gyeongsang Province. Completion of the two units, designed to generate 1 million kilowatts (1,000 megawatt) of electricity, is scheduled for 2011 and 2012, respectively. Once completed, they will be South Korea's 23rd and 24th nuclear power facilities. SOUTH KOREA'S LG CHEM DEVELOPS NEW MICRO FUEL CELL SEPT 28, 2005 SEOUL - LG Chem Ltd. (KSE:051910), South Korea's leading chemical company, said Wednesday that it has developed a new micro fuel cell powered by methanol. The fuel cell, which cost LG Chem more than 5 billion won (US$4.82 million) over the past five years to develop, will be commercialized this year, the company said. S.KOREA HAS WORST ENERGY EFFICIENCY AMONG OECD NATIONS: REPORT SEPT 28, 2005 SEOUL - South Korea's energy efficiency was the worst among OECD countries last year, demonstrating the need for the country to overhaul its energy consumption levels as oil prices continue to climb, an industry group said Wednesday. According to the Korea Petroleum Association (KPA), the world's 11th largest economy used 335 barrels of oil daily for each US$100 million of gross domestic product (GDP) in 2004. S.KOREA HOPES TO TURN STATE OIL FIRM INTO KEY ENERGY DEVELOPER SEPT 28, 2005 SEOUL - South Korea will seek to transform its state-run oil company into a major energy developer in Northeast Asia as part of efforts to tackle high-flying oil prices, the nation's top energy policymaker said Wednesday. Also, the government plans to set up an energy fund to finance overseas oil exploration and development projects as well as take other energysaving measures, Minister of Commerce, Industry and Energy Lee Hee-beom said. S.KOREA, RUSSIA TO JOINTLY DEVELOP NATURAL GAS, OTHER RESOURCES SEPT 28, 2005 SEOUL - South Korea and Russia have agreed on cooperation in developing natural gas in Russia and other energy resources, South Korea's Finance Ministry said Wednesday. According to the ministry, the two countries also agreed to sign an agreement within this year to promote cooperation in the development of natural gas fields in Siberia and construction of pipelines for transportation of Russian natural gas to South Korea. S.KOREA TO FOCUS ON GLOBAL ENERGY RESOURCE DEVELOPMENT SEPT 29, 2005 SEOUL - South Korea is required to engage in the aggressive development of overseas energy resources as it faces a uphill task to overcome high oil prices, government and private experts said Wednesday. Policymakers and experts agree that rising oil prices will require a new policy and mind set. KOREA NATIONAL OIL RATED 'A3' BY MOODY'S OCT 4, 2005 SEOUL - Moody's Investors Service, a global rating agency, said Tuesday it has assigned a local currency issuer rating and a foreign currency long-term rating of "A3" to state-run Korea National Oil Corp. (KNOC). This is the first time that Moody's has assigned a rating to KNOC. The outlook on the ratings is stable. CHINAOIL TO STORE 2.7 MLN BARRELS OF CRUDE AT S.KOREAN FACILITY OCT 4, 2005

SEOUL - A leading Chinese oil firm plans to store 2.7 million barrels of crude at South Korea's Seosan oil facility, the Korea National Oil Corp. (KNOC) said Tuesday. Chinaoil Co. and the KNOC signed a contract last month, which went into effect this month, to permit the Chinese company to store oil at the facility in Seosan, 277 kilometers from Seoul, for one year. DAEWOO INT'L SIGNS FORMAL AGREEMENT FOR MYANMAR GAS EXPLORATION OCT 4, 2005 SEOUL - Daewoo International Corp., a South Korean trading company, signed a formal agreement Monday with two Indian state-run oil and gas companies and a South Korean gas corporation to explore a gas field in Myanmar, the company said. Under the agreement, Daewoo International will have a 60-percent stake in the project, while India's Oil and Natural Gas Corp. (BSE:ONGC) and the Gas Authority of India (BSE:532155) will invest 20 per cent and 10 per cent, respectively. South Korea's state-run Gas Corp. is to provide 10 per cent of the investment for the project. SAMSUNG ENGINEERING CLINCHES US$500 MLN ORDER FROM SAUDI ARABIA OCT 5, 2005 SEOUL - Samsung Engineering Co. (KSE:028050), South Korea's leading industrial plant builder, said Wednesday it has received an order worth $500 million from a Saudi Arabian petrochemical company. The order from Advanced Polypropylene Co. calls for the construction of a propylene and polypropylene plant in Al-Jubail, 600 kilometers east of Riyadh, by June 2008. S.KOREA TO HOST MEETING ON NUCLEAR FUSION REACTOR OCT 5, 2005 SEOUL - South Korea will kick off a three-day international conference Wednesday to seek foreign expertise on the development of an experimental nuclear fusion reactor, officials said Tuesday. Seoul has been pushing for the Korea Superconducting Tokamak Advanced Research (KSTAR) project since 1995 to develop the nuclear fusion facility. KOREA'S SK CORP BUYS ADDITIONAL STAKE IN JV WITH ENRON OCT 10, 2005 SEOUL - SK Corp. (KSE:003600), South Korea's leading oil refiner, said Friday it acquired an additional stake of around 1 per cent in a joint venture with now-bankrupt energy trader Enron Corp. SK Corp. said it bought 99,999 shares in SK-Enron Co. from Enron International Korea, Enron's local unit, for 5.93 billion won (US$5.72 million). Enron International Korea held 5 million shares in the joint venture. GS CALTEX TO SELL UP TO US$500 MLN WORTH OF BONDS OVERSEAS OCT 11, 2005 SEOUL - GS Caltex Corp., South Korea's second-largest oil refiner, said Tuesday its board decided to sell up to US$500 million in 10-year bonds on Oct. 26 to help repay maturing debts and fund operating costs. Bank of America, Merrill Lynch and Barclays Capital have been hired to arrange the issuance of the unsecured senior notes, the company said in a regulatory filing. S.KOREA'S SK CORP. EYES SALES OF US$19.3 BLN FOR 2005 OCT 11, 2005 SEOUL - SK Corp. (KSE:003600), South Korea's leading oil refiner, said Tuesday it expects to record more than 20 trillion won (US$19.3 billion) in revenue this year. It will be the first time for a domestic refiner to reach that milestone, said the company, the flagship of SK Group, South Korea's fourth-largest family-controlled conglomerate.

S.KOREA'S SK CORP. LAUNCHES EXPLORATION OF U.S. OIL FIELD OCT 12, 2005 SEOUL - SK Corp. (KSE:003600), South Korea's largest oil refiner, said Wednesday it has begun the exploration of an oil field in the United States. The move comes a year after SK Corp. acquired a 70 per cent stake in the oil field, located in southern Louisiana, through its American subsidiary S.KOREA'S GS CALTEX TO INVEST US$1.25 BLN IN FACILITY UPGRADE OCT 12, 2005 SEOUL - GS Caltex Corp., South Korea's second-largest oil refiner, said Wednesday it will invest 1.3 trillion won (US$1.25 billion) in upgrading its heavy-oil cracking facility by 2007. Under the plan, the capacity of the cracking center will be raised from 90,000 barrels a day to 145,000 barrels, a company spokesman said. APEC MINISTERS TO DISCUSS OIL PRICES, RESOURCES IN S.KOREA OCT 14, 2005 SEOUL - Ministers from the Asia-Pacific Economic Cooperation (APEC) forum will discuss ways to cope with high crude oil prices and better management of minerals at a meeting in the South Korean city of Gyeongju next week, government officials said Friday. At the three-day gathering from Tuesday, the ministers of the 21 member countries will compare notes on dealing with a surge in crude oil prices and facilitating mineral exploration for sustainable development, the Ministry of Commerce, Industry and Energy said. IRAN CONSIDERS BECOMING "RELIABLE" ENERGY SUPPLIER FOR CHINA OCT 17, 2005 BEIJING - Visiting Iranian Foreign Minister Maouchehr Mottaki said Iran will continue to strengthen energy cooperation with China and become a "reliable" energy supplier for the country. Mottaki made the remark at a press conference here Friday at Iranian embassy in Beijing. IRAN TO START GAS SHIPMENTS TO NAKHICHEVAN AUT. REPUBLIC OCT 17, 2005 BAKU - Head of 'Azeri Gas' company said here Saturday that Iran will start shipments of natural gas to the Nakhichevan autonomous Republic next month. Ali Khan Melikov added that Iran plans to export 350 million cubic meters of natural gas annually to Nakhichevan Autonomous Republic. S.KOREA HOSTS MEETING OF APEC ENERGY, RESOURCES MINISTERS OCT 18, 2005 SEOUL - Ministers and high-level officials from the Asia-Pacific Economic Cooperation (APEC) forum gathered here Tuesday to discuss high oil prices and a shortage of raw materials, officials said. The three-day gathering of officials from the 21 member countries in the southeastern city of Gyeongju is expected to facilitate cooperation on energy policies that can contribute to more stable prices, the Ministry of Commerce, Industry and Energy said. APEC, OPEC AGREE TO ESTABLISH FORMAL DIALOGUE CHANNEL OCT 19, 2005 GYEONGJU - The Asia-Pacific Economic Cooperation (APEC) forum agreed Wednesday with the Organization of Petroleum Exporting Countries (OPEC) to establish a formal channel for dialogue to boost cooperation in tackling high oil prices, officials said. The landmark agreement, which came on the margins of the APEC energy and mining ministers' meeting,

is expected to give the regional cooperative bloc direct access to the world's main oil producing countries. KOREA GAS CORP. RAISES 30 BLN YEN THROUGH DEBT SALE OCT 19, 2005 SEOUL - State-run Korea Gas Corp. (KOGAS) said Tuesday it has raised 30 billion yen (US$25.9 million) by selling debts in Japan. The five-year Samurai bonds were priced at 0.30 percentage point plus the London Interbank Offered Rate (Libor) on yen loans, KOGAS said. INDONESIA HINTS AT RENEGOTIATING LNG PRICES WITH S.KOREA OCT 21, 2005 SEOUL - Indonesia's visiting energy minister hinted Thursday at renegotiating liquefied natural gas (LNG) prices with South Korea, officials here said. In a meeting with Commerce and Energy Minister Lee Hee-beom, Indonesia's Energy and Mineral Resources Minister Purnomo Yusgiantoro said that Jakarta would take into account South Korea's request to renegotiate its LNG export prices, according to the commerce ministry officials. LG PETROCHEMICAL Q3 EARNINGS FALL 19.3 PCT ON HIGHER COSTS OCT 25, 2005 SEOUL - South Korean petrochemicals maker LG Petrochemical Co. on Tuesday reported a nearly 20-percent drop in its third-quarter earnings due to increased raw material costs. Net profit fell 19.3 percent from a year ago to 59.6 billion won (US$56.4 million) in the JulySeptember period, the company said in a mandatory filing. S.KOREA'S KOGAS LOGS NET LOSS OF US $106.2 MLN IN Q3 OCT 25, 2005 SEOUL - Korea Gas Corp. (KOGAS), South Korea's state-run gas monopoly, said Tuesday it posted a net loss of 112.38 billion won (US $106.2 million) in the third quarter of the year due to its reduced margin. Operating loss amounted to 128.93 billion won, while sales grew 23 percent to 1.78 trillion won, KOGAS said in a mandatory filing. SAMSUNG TOTAL TO INVEST US$552.5 MLN IN FACILITY EXPANSION OCT 26, 2005 SEOUL - Samsung Total Petrochemicals Co., a joint venture between Total SA and Samsung Group (KSE:000830), said Wednesday it will invest 550 billion won (US$522.5 million) in facility expansion by 2007. The investment will raise the company's annual production of ethylene and propylene to 830,000 tons and 550,000 tons each, Samsung Total Petrochemicals said. SOUTH KOREA'S OIL CONSUMPTION FALLS IN SEPTEMBER OCT 26, 2005 SEOUL - South Korea's oil consumption decreased in September as high crude prices pushed down domestic demand, a government report showed Wednesday. Demand for such oil products as kerosene, diesel oil and naphtha sank 5.9 per cent last month from a year earlier to 4.81 million barrels, according to the report by the Ministry of Commerce, Industry and Energy. LG INTERNATIONAL'S NET PROFIT JUMPS 71% IN Q3 OCT 26, 2005 SEOUL - LG International Corp., the trading arm of South Korean conglomerate LG Group, said Wednesday its third-quarter net profit leaped 71 per cent from a year earlier to 29.8 billion won (US$28.3 million) from active oil business. Operating profit, however, fell 19 per

cent to 29.6 billion won, while sales grew 12 per cent to 1.71 trillion won, it said in a mandatory filing. S.KOREAN OIL PRICES TO REMAIN HIGH IN NEAR FUTURE: THINK TANK OCT 26, 2005 SEOUL - Oil prices may remain high in the future with South Korea's benchmark Dubai oil expected to hover above US$50 per barrel in the coming years, a local think tank said Wednesday. Although oil prices have stabilized recently, it is highly likely for high energy costs to continue due to a supply-demand imbalance, the Samsung Economic Research Institute said. DAEWOO SHIPBUILDING WINS ORDERS FOR TWO LNG CARRIERS OCT 27, 2005 SEOUL - Daewoo Shipbuilding & Marine Engineering Co., the world's second-largest shipbuilder, signed a contract with a Norweigian gas company Thursday to build two liquefied natural gas (LNG) carriers. The 156,100-cubic-meter LNG carriers will be delivered to Bergesen Worldwide Gas by May 2009, Daewoo Shipbuilding said, without unveiling the deal's value. S.KOREA'S SK CORP. CUTS BID PRICE FOR INCHON OIL REFINERY OCT 31, 2005 SEOUL - SK Corp. (KSE:003600), South Korea's leading oil refiner, has lowered its bid for financially troubled Inchon Oil Refinery Co. by 160 billion won to 3.02 trillion won (US$2.9 billion), industry sources said Friday. In September, SK Corp. originally agreed to buy 1.6 trillion won worth of new shares issued by Inchon Oil and 1.6 trillion of new bonds from the refiner, bringing its total investment to 3.2 trillion won. S.KOREA TO BEEF UP SECURITY FOR NUKE PLANTS DURING APEC FORUM NOV 1, 2005 SEOUL - South Korea said Monday it will step up its anti-terrorism alert for nuclear power plants and other nuclear facilities ahead of the upcoming summit of the Asia-Pacific Economic Cooperation (APEC) forum in the southern port city of Busan. The Ministry of Science and Technology said South Korea will be on an emergency mode in November in preparation for the 21-nation summit, scheduled for Nov. 18-19. S.KOREAN VILLAGERS VOTE IN PLEBISCITE ON NUCLEAR WASTE DUMP NOV 2, 2005 SEOUL - Lured by an offer of massive financial assistance and jobs, villagers in four remote coastal regions went to the polls on Wednesday in a plebiscite that will decide where to build South Korea's first nuclear waste dump. The local governments of Gyeongju, Pohang and Yeongdeok, all on the east coast, and Gunsan on the west coast have applied to host the dump, despite protests by environmental groups. S.KOREA LOOKS TO CORPORATE TYPES TO HEAD PUBLIC GAS, OIL FIRMS NOV 3, 2005 SEOUL - President Roh Moo-hyun is to appoint two senior businesspeople to head South Korea's publicly-owned oil and gas monopolies, a senior aide to Roh said Thursday. Hwang Doo-yul, standing adviser of SK Corp. (KSE:003600), has been nominated to become president of Korea National Oil Corp. (KNOC), and Lee Soo-ho, vice chairman of LG Corp., as president of Korea Gas Corp. (KOGAS), Kim Wan-key, senior presidential aide on personnel affairs, said.

GYEONGJU WINS S.KOREA'S FIRST NUCLEAR WASTE REPOSITORY NOV 3, 2005 SEOUL - The government on Thursday officially confirmed the city of Gyeongju as the site of the country's first nuclear repository. The city had the highest percentage of support for hosting the facility among four cities that held a plebiscite on the issue Wednesday. S KOREA'S RATING UPGRADE DEPENDS ON N KOREA'S NUKE PROGRAM:MOODY'S NOV 4, 2005 SEOUL - Moody's Investors Service said Thursday it may upgrade South Korea's credit rating earlier than scheduled, depending on the progress of diplomatic efforts to persuade North Korea to abandon its nuclear weapons programs. "If the North Korean problem becomes predictable, Moody's could have raised South Korea's credit rating earlier," said Thomas Byrne, vice president and senior analyst at the Sovereign Risk Unit of Moody's, in a keynote speech during an investor relations meeting organized by Samsung Securities Co. GS HOLDINGS ACQUIRES LG ENERGY FROM LG INT'L NOV 9, 2005 SEOUL - GS Holdings Corp., the holding company of South Korea's GS Group, said Tuesday it has acquired a controlling stake in LG Energy Co., a power generation firm, from LG International Corp. in a bid to strengthen its energy operations. GS Holdings purchased a 55.01 per cent stake in the energy firm for 82.8 billion won (US$78.96 million), becoming its largest shareholder, followed by Oman Oil Co. with 30 per cent and the construction unit of GS with 14.99 per cent. KOREA EAST-WEST POWER FLOATS US$300 MLN OF GLOBAL BONDS NOV 14, 2005 SEOUL - The state-run Korea East-West Power Co. said Monday it has signed a deal with Lehman Brothers in New York to issue US$300 million of global bonds. The seven-year bonds carry an annual interest of 5.25 per cent and the proceeds will be used to repay existing debt and fund the construction of two power plants, Korea East-West Power said. S.KOREA'S S-OIL SEES Q3 EARNINGS DIP ON FALL IN REFINING MARGIN NOV 14, 2005 SEOUL - S-Oil Corp., South Korea's third-largest oil refiner, said Friday that its third-quarter earnings dropped sharply on a fall in its refining margin. Its net profit amounted to 109 billion won (US$105 million) in the July-September period, down 46 per cent from a year earlier, the company said in a regulatory filing. SK EMERGES AS ASIA'S ENERGY LEADER NOV 19, 2005, Korea Times The SK Group has grown into South Korea's fourth-biggest chaebol, or family-controlled conglomerate, with 52 subsidiaries from a small textile manufacturer founded in 1953. The year 2005 has been a milestone for the SK Group's globalization drive to true world-class multinational business group. At the frontline of the SK Group's globalization push has been SK Corp., Korea's oldest and biggest oil refiner established in 1962. SK Corp. is one of SK Group's key affiliates along with SK Telecom. SK Corp. is gearing up to make full-fledged inroads into China to capitalize on the Kingdom's growing thirst for oil and consolidate its leadership position in the Asia-Pacific region. Toward the end, Korea's biggest oil refiner, which seeks to boost its annual petroleum and petrochemical sales in China to more than $5 billion by 2010, clinched a memorandum of understanding (MOU) to acquire Inchon Oil Refinery, Korea's fifth-biggest oil refiner, in October. SK Corp. dominates roughly one-third of the domestic oil refining market. When the Fair Trade Commission (FTC) approves the corporate integration and SK Corp. completes its due diligence on Inchon Oil, the leading oil

refiner's equity ownership in the smaller rival, which used to be under court receivership, will jump to over 90 percent. Under the MOU, SK Corp. will purchase bonds worth 1.6 trillion won. In addition, the MOU includes SK Corp.'s paid-in capital increase worth 1.6 trillion won. Buying Inchon Oil _ with daily refining capacity of 275,000 barrels per day _ will increase SK Corp.'s refining capacity by a third to 1.11 million barrels a day, helping the Korean oil refiner to vault into Asia-Pacific's fourth-largest refiner by output from current fifth. SK Corp. will emerge as the fourth-biggest oil refiner after China Petroleum & Chemical Corp. (Sinopec) with refining capacity of 3.29 million barrels per day, China National Petroleum Company (CNPC) with 2.65 million barrels and Nippon Oil Corp. with 1.17 million barrels. ''Inchon Oil's facilities are located in strategic location of northernmost part of Korea's west coast, which is facing China thus it is believed to facilitate our exports to oilthirsty China while reducing logistics cost,'' said SK spokesman. SK Corp. plans to revise its mid- to long-term Chinese market strategy in line with the acquisition of Inchon Oil. SK in ChinaSK Corp. is confident that China would serve as its gateway to becoming the Asia-Pacific energy major. China's rapid development and economic growth are creating greater demand for SK Corp.'s products and services. China's total oil consumption, which amounted to 6.7 million barrels a day last year, is forecast to surge to 8.7 million barrels by 2010 and top 10 million barrels by 2015. In contrast, China's domestic refined oil production stands at less than 4 million barrels per day. SK Corp. plans to boost the share of exports in annual revenue from current 46 percent to 50 percent by 2008. China accounts for 33 percent of SK Corp.'s exports. As the initial phase in building the SK Group into a major global conglomerate, SK Group and SK Corp. chairman Chey Tae-won turned his eyes to mainland China in 1999, selecting the country as the conglomerate's No. 1 key overseas market for the 21st century. The corporation established Chinese affiliates the following year under an ambitious vision to incubate its affiliates into leading players in key segments of the Chinese market by 2010. Indeed, SK Corp. was an early mover. SK was the first Korean company to open offices in China even before the official diplomatic ties were established between Korea and China. The SK Group, under its ''SK in China'' strategy, has built a global network of companies that share SK Group's management philosophy and culture. SK Corp. has a presence in six cities including eight local and three branch offices. Nineteen sales and production affiliates of the SK Group, led by SK Corp., SK Networks, SKC, SK Chemicals, SK Shipping and SK Gas, are already in operation in China. The oil refiner has set up a holding firm for its Chinese production and sales affiliates last October. In particular, SK Corp., has been striving to expand its distribution and sales networks in China. SKC's chemical business division also inked an agreement with China's largest energy and chemicals firm SINOPEC to collaborate on advancing into the Chinese polyurethane market. The investment marks the latest stage in SK Corp.'s expansion into the Chinese market under a projection that its sales in China would reach more than $5 billion a year by 2010, 60 percent of which is estimated to be generated by the local entities in China. SK Corp. established SK China Holding, located in Beijing, last year. China is No. 1 export destination for SK Corp., accounting for 33 percent of the company's total outbound shipments and 15 percent of revenue in the first half of 2005. The SK Group said it places the top priority of its Chinese operations on returning profits back to the local communities. The conglomerate has also established an academic R&D network by setting up Asia Research Centers at 13 major Asian universities outside of Korea, including Peking University, Tsinghua University, National University of Mongolia, Yangon University of Myanmar and Vietnam National University in Hanoi. SK Corp.'s bold vision does not stop in Asia-Pacific. The oil refiner is simultaneously struggling to aggressively expand its presence in the U.S. follows its successful entry into China over the past six years. SK Corp. also recently inked an agreement on establishing a solvent production joint venture with Sinopec and Ningbo Asphalt Terminal, an asphalt storage and logistics joint venture with Zhejiang Province Highway Materials as well as Shanghai Gaoqiao-SK Solvent. The oil refiner has world's

second-largest single oil refining complex. Having a total of 4,931 employees on its payroll and 22 offices worldwide, SK Corp. chalked up 17 trillion won in sales last year. Sound Financial Structure''We have a clear vision for our future. Operating efficiency and management accountability are at the foundation of our business practices,'' said SK Corp. chairman Chey. ''They are key to building greater shareholder trust and customer confidence as we move forward. Joining the ranks of oil producing nations through greater exploration activities and expanding to other global markets, particularly China, is at the foundation of our growth strategy,'' he added. SK Corp. has a sound financial position that significantly enhances its resiliency to tough market conditions. The company posted 1.6 trillion won in operating profit and 1.64 trillion won in net profit in 2004. Shareholder dividends also surged 240 percent from a year earlier to 1,800 won last year. Fueled by the strong international crude oil prices that pushed up petroleum and petrochemical product prices, SK Corp.'s revenue jumped 25 percent year-on-year to 9.95 trillion won in the first half of 2005. Its debt-to-equity ratio also improved to 62 percent as of the end of last June from 74 percent in 2004. SK Corp. attributes the recent surge in profits to its continuous efforts to move into less-cyclical and more stable business segments. The robust business growth is also ascribed to recent improvement in SK Corp.'s corporate governance structure. Seventy percent of SK Corp. directors are independent outside directors. Moreover, six board committees _ audit committee, nomination committee, strategic planning committee, human resource committee, transparent management committee and corporate government committee _ enhance supervision of the company through a system of checks and balances. All sub-committees are chaired by outside directors, who plays central role in preventing corrupt business dealings. Thanks to its efforts to improve corporate governance structure, SK Corp. was chosen as one of top 10 publicly traded companies in the 2005 Corporate Governance Award organized by the Korea Corporate Governance Service (KCGS). It also received ''Best Audit'' award presented by the Korea Listed Companies Association (KLCA) and the Korea Institute of Certified Public Accountants (KICPA). Advancing into Bio SectorSK Corp. also seeks to foster biopharmaceuticals as a new flagship business in coming years. It also founded the New Jersey R&D Center in the U.S. in 1989. The research and development (R&D) center focuses on developing new medicine and pharmaceutical intermediates. SK Corp. plans to extend the scope of the R&D center's research to medicines for curing central nerve disorders, diabetes and cancer. The New Jersey R&D Center is the first medical lab set up by Korean capital to acquire a clinical test license from the U.S. Food and Drug Administration. It is currently conducting clinical tests with Johnson & Johnson of the U.S. for antidepressant and epilepsy cures, drugs it developed between 1999 and 2000. By 2030, the SK Group plans to have established biotechnology as its core business, in the expectation that the IT sector will have reached maturity by that time. To this end, the SK Group and SK China established the SK Bio-Pharmaceuticals Tech Shanghai R&D Center in the Chinese city in 2002. The R&D center is a 50-50 joint venture with the Shanghai city government. DOOSAN HEAVY UNION GOES ON STRIKE OVER FAILED COLLECTIVE TALKS NOV 21, 2005 CHANGWON - The labor union of South Korean power-generation equipment maker Doosan Heavy Industries & Construction Co started a general strike on Monday over the failure of collective bargaining talks with its management. "We launched an indefinite strike because both sides are poles apart over key issues," a union official said. S. KOREA AIMS TO MAINTAIN 5TH PLACE IN STEEL AND PETROCHEMICALS NOV 22, 2005 SEOUL - South Korea plans to maintain its current fifth place in the global steel and petrochemical industry through improvements in efficiency and quality, a government report said Tuesday. In a joint strategy session between entrepreneurs and government

policymakers, the Ministry of Commerce, Industry and Energy said these two key industries have been an integral part of the South Korean economy since the 1970s and have attained global competitiveness by overcoming past oil shocks and rises in raw material prices. SK CORP FORCED TO SUSPEND OPERATIONS IN YEMEN OIL FIELD NOV 23, 2005 SEOUL - SK Corp. (KSE:003600), South Korea's largest oil refiner, said Tuesday that its operations in oil fields located in the Marib region of Yemen have come to a halt after the alleged violation of a contract by the Yemeni government. SK and other foreign companies have participated in the extraction of oil from the fields since they were discovered in 1984. S. KOREA TO EXPAND ENERGY COOPERATION WITH VENEZUELA, PERU NOV 23, 2005 SEOUL - South Korea will aim to expand energy-related cooperation with Venezuela and Peru as part of its effort to reduce the country's vulnerability to sudden fluctuations in oil and natural mineral prices, the government said Tuesday. The Ministry of Commerce, Industry and Energy said it will send a resource inspection team to Venezuela later this week to discuss the establishment of a cooperative network in oil and gas exploration and development. EX-IM BANK OF KOREA TO LOAN US$123 MLN TO GAS FIELD DEVELOPERS NOV 24, 2005 SEOUL - The Export-Import Bank of Korea said Thursday it has decided to lend US$123 million to two domestic companies to help fund their development of a gas field in Yemen. The loan will be extended to top refiner SK Corp. and Samwhan Corp., a local builder and energy developer, the state-run trade bank said. JAPAN UNLIKELY TO RECOVER US$394.2 MLN IN KEDO LOANS TO N KOREA NOV 25, 2005 TOKYO - With the decision by the Korean Peninsula Energy Development Organization to end a project to build two light-water nuclear reactors in North Korea, the roughly 47 billion yen (US $394.2 million) that the Japanese government loaned for the project is expected to go unrecovered. Even though the project was scrapped because North Korea broke their side of the deal, the country is not expected to pay back the borrowed funds. INDIA, KOREA SIGN MOU IN HYDROCARBON SECTOR NOV 28, 2005 NEW DELHI - India and Korea on Friday signed six MoUs for cooperation in the hydrocarbon sector. These include an umbrella agreement on hydrocarbon cooperation between the two countries and an MoU on strategic underground petroleum storage facility, according to an official release. S. KOREA TO PROVIDE NUCLEAR SAFETY TRAINING TO IRAQI TECHNICIANS NOV 28, 2005 SEOUL - South Korea is expected to provide nuclear safety and decontamination training to Iraqi technicians in 2006, the Ministry of Science and Technology said Sunday. It said the program will involve Iraqi nuclear experts coming to South Korea so they can be trained on ways to deal with nuclear contamination and how to best reduce harm to people and the environment. SOUTH KOREA, KUWAIT SIGN CRUDE OIL STORAGE MOU NOV 28, 2005

SEOUL - The Korea National Oil Corp. signed a memorandum of understanding with the Kuwait National Petroleum Co. that will allow the storage of Kuwaiti crude in South Korea, the government said here Saturday. The Ministry of Commerce, Industry and Energy said the MOU will allow South Korea to charge set fees for storing the oil in its bunkers while having the first right to the crude in case of emergencies. SOUTH KOREA'S OIL CONSUMPTION FALLS SHARPLY IN OCTOBER NOV 28, 2005 SEOUL - South Korea's oil consumption dropped 8.3 per cent in October on an annual basis as high crude prices pushed down domestic demand, a government report said Monday. Demand for such oil products as kerosene, diesel oil, bunker-C oil and naphtha all posted negative growth for the one month period, with bunker-C falling the most at 28.0 per cent compared to October 2004, the Ministry of Commerce, Industry and Energy said. S. KOREAN SHIPBUILDERS TIPPED TO WIN BIG ORDERS FROM QATARGAS NOV 29, 2005 SEOUL - South Korean shipbuilders are likely to receive a large amount of orders to build liquefied natural gas (LNG) carriers from a leading gas company in Qatar, industry sources said Tuesday. Qatargas, a joint venture between energy giant Exxon Mobil Corp. and staterun Qatar Petroleum, plans to place orders for 70 to 100 LNG ships, according to a shipping industry magazine, Trade Winds. S. KOREA'S DOOSAN HEAVY OPENS A SUBSIDIARY IN INDIA NOV 30, 2005 SEOUL - South Korean power-generation equipment maker Doosan Heavy Industries & Construction Co. said Tuesday it has launched a local subsidiary in India targeting the electricity generation market there. The subsidiary will be based in Gurgaon, a city near New Delhi, Doosan said in a regulatory filing. The company did not disclose how much it invested in the facility. DOOSAN HEAVY SEEKS LARGE DEVELOPMENT PROJECT IN INDIA DEC 5, 2005 SEOUL - Doosan Heavy Industries & Construction Co. is seeking to clinch a massive development project in India to boost its presence in one of the world's fastest-growing economies, company officials said Monday. The South Korean manufacturer of powergeneration equipment is stepping up efforts to win a fresh water facility development project and is working to pick out resourceful employees through its subsidiary set up near New Delhi last month, according to company officials. INDIA'S SUZLON SECURES CONTRACTS FROM CHINESE, S KOREAN COS DEC 6, 2005 MUMBAI - Asia's largest integrated wind power company, Suzlon Energy Limited has secured a contract from China-based Guohua Xilinguole New Energy & Source Co Ltd for a wind farm project. Suzlon informed the National Stock Exchange that the 'Guohua Inner Mongolia Huitengliang' wind farm project comprises 40 wind turbine generators (WTGs) of 1.25 MW each, totalling 50 MW. SK CORP GETS APPROVAL TO ACQUIRE INCHON OIL DEC 7, 2005 SEOUL - SK Corp. (KSE:003600), South Korea's No. 1 oil refiner, has received approval from the nation's antitrust regulator to acquire bankrupt oil refiner Inchon Oil Refinery Co., an industry source said Wednesday. The approval came nearly three months after SK Corp.

submitted an application to the Fair Trade Commission in September for the acquisition of Inchon Oil for a total of 1.6 trillion won (US$1.5 billion). S. KOREA-US JOINT NUCLEAR HYDROGEN RESEARCH CENTER OPENS DEC 7, 2005 SEOUL - A South Korea-U.S. joint research center opened Wednesday to study ways of using atomic power to produce hydrogen gas, officials said Wednesday. The center, tentatively dubbed the South Korea-U.S. Nuclear Hydrogen Joint Development Center, is located in Daejeon, South Korea's science mecca, about 164 kilometers south of Seoul. S. KOREAN GOV'T TO RAISE ELECTRICITY RATES BY AVERAGE 1.9 PCT DEC 8, 2005 SEOUL - The government and the ruling party decided Wednesday to raise the country's electricity rates by an average 1.9 per cent to level the country's budget with a sharp rise in international oil prices, government officials said. The decision came at a meeting between the ruling Uri Party and the Commerce Ministry. INDIA'S SUZLON BAGS ORDERS WORTH US$49 MLN FROM CHINA, S. KOREA DEC 8, 2005 MUMBAI - Wind energy company Suzlon Energy (NSI:SUZLON) on Tuesday said it has bagged orders worth Rs 2280 million (US$49.4 million) in China and South Korea. Suzlon has received order worth Rs 1720 million for Chinese the Guohua Inner Mongolia Hultengliang wind farm project, a release said here on Tuesday. S. KOREA AIMS TO BOOST AUTO FUEL EFFICIENCY DEC 12, 2005 SEOUL - South Korea is aiming for a 15 per cent improvement in auto fuel efficiency by 2012 to cope with high oil costs, the government and industry sources said Monday. In a ceremony to highlight their commitment to making fuel-efficient cars, top executives from the country's five auto manufacturers, including Hyundai Motor Co., Kia Motors Corp., and GM Daewoo Auto & Technology Co., said they will redouble research and development efforts to make cars that run longer on less fuel. S. KOREA'S TAIHAN ADVANCES INTO SOLAR POWER GENERATION SECTOR DEC 12, 2005 SEOUL - South Korea's Taihan Electric Wire Co. said Monday it has taken over a local producer of solar power generation equipment in a bid to tap into the solar electric market. Taihan, a wire and stainless steel producer, last week acquired a 70 percent stake in Taihan Techren Co. that produces solar powered electricity generation systems, the company said. S. KOREA'S ENERGY CONSUMPTION FORECAST TO RISE 3.5% NEXT YR DEC 13, 2005 SEOUL - South Korea's energy consumption is expected to slightly rise next year due to higher demand for energy sources except oil and nuclear power, a government report showed Tuesday. Total energy consumption was forecast to reach 237.1 million tons of oil equivalent (TOE) in 2006, up 3.5 per cent this year, according to the report compiled by the Korea Energy Economics Institute. S. KOREAN COS URGED TO BRACE FOR CURRENCY WOES, HIGH OIL PRICES DEC 14, 2005 SEOUL - South Korean companies should craft measures to protect their profit margins from currency appreciation and soaring oil prices next year, economists said Wednesday. The

advice came at a meeting of businessmen and the heads of major private economic think tanks, which focused on the business outlook for 2006. S. KOREA'S KEPCO TO BUILD THERMAL POWER PLANT IN PHILIPPINES DEC 16, 2005 SEOUL - The Korea Electric Power Corp. (KEPCO) said Friday it jointly broke ground for a 200-megawatt power plant on the island of Cebu in the Philippines with the Southeast Asian country's Salcon Power Corp. SEOUL REJECTS NEWS REPORT OF IAEA PLUTONIUM PROBE DEC 21, 2005 SEOUL - South Korea on Tuesday dismissed a news report that the U.N. nuclear watchdog is investigating its plans to manufacture weapons-grade plutonium. Citing an unnamed source, AFP reported Monday that the International Atomic Energy Agency (IAEA) has launched a probe into whether South Korea has plans to produce weapons-grade plutonium at a facility it is building. S. KOREA'S HYUNDAI MERCHANT MARINE COMMISSIONS NEW OIL TANKER DEC 22, 2005 SEOUL - South Korea's second-largest shipping firm, Hyundai Merchant Marine Co., commissioned a new 310,000-ton class oil tanker Thursday. With the Universal Crown, Hyundai Merchant Marine has christened two very large crude carriers (VLCCs) this year. It launched the Universal Queen last month. COLD WEATHER PUSHES UP ELECTRICITY USE IN S. KOREA DEC 22, 2005 SEOUL - The continuing cold spell affecting South Korea is pushing electricity use close to peak summer levels, a government report said Wednesday. The Ministry of Commerce, Industry and Energy said that the country's power consumption reached 54.45 million kilowatts as of 7 p.m. Monday, near to the highest point of 54.63 million kilowatts reached this summer. S KOREA AIMS TO SECURE EXTRA ENERGY RESOURCES AMID COLD SNAP DEC 23, 2005 SEOUL - A surge in South Korea's energy consumption during the winter season has prompted the government to step up efforts to secure additional natural energy resources, government officials said Thursday. On Monday, the country's power consumption reached 54.45 million kilowatts, near the peak point of 54.63 million kilowatts reached this summer, according to the Ministry of Commerce, Industry and Energy. S. KOREA'S ENERGY SPENDING LIKELY TO REACH NEW HIGHS THIS YEAR DEC 28, 2005 SEOUL - South Korea's spending on energy purchases will likely reach a new high this year, mainly due to skyrocketing oil prices, a government agency said Wednesday. South Korea, the world's fourth-largest oil importer, imported 213 million tons of energy worth of US$59.8 billion through November this year, according to the Korea Customs Service. S. KOREAN CONSORTIUM TO JOIN OIL FIELD EXPLORATION OFF YEMEN DEC 28, 2005 SEOUL - A four-member South Korean consortium signed an agreement Wednesday with Yemen's Ministry of Oil and Minerals to obtain a controlling stake in a joint venture to explore an oil field off Yemen, a state-run oil firm said. Under the agreement, the four - the

state-run Korea National Oil Corp. (KNOC), Samsung Corp., Daesung Industries Co. and GS Holdings Corp. - are to hold a 95 per cent stake in the oil block off southeastern Yemen. DOOSAN HEAVY WINS US$850 MLN ORDER TO BUILD DESALINATION PLANT DEC 29, 2005 SEOUL - South Korea's Doosan Heavy Industries and Construction Co. said Thursday it has won a US$850 million order to build the world's largest desalinization plant along with a thermoelectric power station in Saudi Arabia. The deal calls for Doosan to build a plant capable of treating 880,000 tons of fresh water a day, an amount enough for 3 million people. The deal includes a 917 megawatt-level thermoelectric power plant. SRI LANKA BIMSTEC FOR CROSS-COUNTRY POWER TRANSMISSION GRID OCT 6, 2005, The Daily Star URL:http://www.thedailystar.net/2005/10/06/d5100601044.htm Seven South and South East Asian countries, including Bangladesh, agreed on Tuesday to explore the possibility of having an electricity transmission network among them. It could be achieved by developing an inter-connectivity grid between the countries to facilitate the flow of electricity across the region, an official statement of the countries said.. The statement was issued at the end of the daylong conference of energy ministers and officials of the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (Bimstec). India, Bangladesh, Nepal, Bhutan, Myanmar, Thailand and Sri Lanka are in the economic group. The proposed power grid would run from Thailand to Sri Lanka and Thailand would head a task force to work out the draft memorandum of understanding (MoU) for the inter-country grid connections. The task force, which will submit its report within a year, would also take into account crucial factors like flow of electricity between the member countries without discrimination. The conference also reached a consensus on the feasibility of a trans-regional natural gas pipeline. "The conference recognised the need for detailed feasibility studies and techno-economic agreements between and among participating countries to allow optimal utilisation of natural gas resources in the region," the statement said. The conference produced an action plan for the cooperation among Bimstec countries to ensure energy security in the region. The plan also covered the tapping of hydrocarbon potential in the region and exchanging unconventional sources of energy as well as building energy security and energy efficiency in the region. On the gas pipeline, the member countries agreed to form a separate task force to work out the terms of reference and to recommend the course of action after taking into account the work done on such a pipeline. Thailand would host the first meeting of the task force on the gas pipeline early next year, Indian Power Secretary RV Shahi said. He said a Bimstec Centre for Energy is likely to come up next year to enable member countries to share experiences in reforms, restructuring, regulation and best practices in the energy sector. The location for the proposed centre is yet to be decided. There was no concrete form of cooperation in the unconventional sources of energy but it was felt that member countries could focus on small hydro projects, solar energy and generation of electricity from rice husk. The Bimstec countries would draw on each other's experiences on rural electrification as well as on efficient development of coal resources. Cooperation in the energy sector is one of the main areas identified by the Bimstec countries when the economic group was set up in 1997. ADB GRANTS TO HELP TSUNAMI-AFFECTED HOUSEHOLDS IN SRI LANKA AFFORD UTILITY CONNECTIONS OCT 17, 2005 ADB Media Center MANILA, PHILIPPINES. ADB has approved a US$2 million grant from its Japan Fund for Poverty Reduction (JFPR), financed by the Government of Japan, to help connect tsunami-

affected poor households in Sri Lanka to electricity and water supplies. The project will setup a facility that will award more than 4,400 grants to poor households that cannot afford utility connections for their houses after rebuilding and repair work has finished. After the tsunami, the Government marked out a conservation zone along the affected coastline where no houses could be rebuilt. Subject to an ongoing reassessment of the boundaries of this zone, former residents of the conservation zone will be relocated by the Government, with provisions for utility connections. Tsunami-affected houses located outside the conservation zone will receive grants from the Government to enable them to rebuild their houses, but these grants do not cover utility connections. The project will target these households. "Without financial support, many of these poor households will not be able to afford utility connections," says Hasitha Wickremasinghe, Economics Officer at ADB's Resident Mission in Sri Lanka. The 26 December tsunami destroyed or damaged about 78,000 houses in Sri Lanka, most of which belonged to poor households with no access to basic utilities. Even the wells on which many of the households depended on for their water supply were contaminated. "The Government aims to restore and improve the living conditions of the affected poor, and providing access to electricity and water will help achieve this purpose," adds Ms. Wickremasinghe. Aside from being located outside the conservation zone and having no electricity or water connection, to qualify as a beneficiary, a household must not have availed of a concessional loan from the Government and must be a recipient of Samurdhi, the public sector program for poverty alleviation in Sri Lanka. Nongovernment organizations will help identify and assist the beneficiaries in applying for the grants, as well as to monitor the supply of connections in coordination with the Ceylon Electricity Board and the Water Supply and Drainage Board. To ensure the sustainability of the connections, the selection criteria and process have been designed to make disconnection less likely. For example, households that meet certain criteria for type of employment and income patterns will be selected. ADB has earlier approved $150 million grant and a $7 million loan for the Tsunami-affected Areas Rebuilding Project (TAARP) in Sri Lanka, which will help improve living conditions in the tsunami-affected areas by restoring basic social infrastructure, community and public services, and livelihoods in these areas. The Ceylon Electricity Board and the Water Supply and Drainage Board are the executing agencies for the JFPR grant project, which will be carried out over about 12 months. The JFPR was set up in 2000 with an initial contribution of Y10 billion (about $90 million), followed by additional contributions of $155 million and a commitment of $50 million. In January, the Government of Japan announced the provision of an additional $20 million through its trust funds at ADB to support relief measures in areas devastated by the December earthquake and tsunami. SRI LANKA ESTABLISHES PETROLEUM DEVELOPMENT MINISTRY OCT 26, 2005 COLOMBO - Sri Lanka President Chandrika Kumaratunga on Tuesday established a new ministry to exploit the country's petroleum potential amid plans to involve India in the process. Kumaratunga's office said she established the Petroleum Resources Development Ministry on Tuesday and named herself as the Minister-in-Charge in addition to her other duties as minister for defence, education and media. INDIAN PM OUTLINES NEW VISION FOR SAARC AT REGIONAL SUMMIT NOV 12, 2005, BBC Monitoring International Reports The Indian prime minister has called for zero-tolerance on cross-border terrorism and "a collective commitment" to fight "the scourge of terrorism". Addressing the 13th SAARC summit in the Bangladesh capital Dhaka, Manmohan Singh urged a new approach to face regional and international challenges with supranational solutions and said India backed putting aside historical and political divisions to create "a new architecture for mutually beneficial economic partnership". The Indian news agency report said he also stressed the

need for speedy strategic regional cooperation within the wider Asian context and called for improved regional transport infrastructure and a South Asia energy dialogue to tap potential, as well as a regional food bank against shortages and disasters. Following is text of report by Indian news agency PTI: Dhaka, 12 November: Outlining a new vision for SAARC (South Asian Association for Regional Cooperation), India's Prime Minister Manmohan Singh on Saturday [12 November] asserted that there should be "zero tolerance" for cross-border terrorism among member states and made far-reaching proposals for stepping up economic cooperation, enhanced air connectivity and setting up of a regional mechanism for disaster relief and management. Addressing the twice-deferred SAARC Summit here, he said no SAARC nation should allow its territory to be used against the interests of another member state. "There should be zero tolerance for cross-border terrorism and for the harbouring of hostile insurgent groups and criminal elements," he stressed. India has been concerned over terror camps operating in Pakistan as also northeastern insurgent groups operating from Bangladesh. "It is only in an environment of mutual confidence and a collective commitment against the scourge of terrorism, that we can register the progress we desire in more intense interaction," he said. Underscoring the need for regenerating the arteries of transport and communication in the region, Manmohan Singh suggested that the South Asian countries should agree to provide to each other, reciprocally, transit facilities to third countries, not only connecting one another but also connecting to the larger Asian neighbourhood, in the Gulf, Central Asia and the Southeast Asia. "India, which borders each of the members of South Asia, is willing to do so," he said. Highlighting the need for improved air services among SAARC countries, Singh took the initiative announcing that India was prepared to offer to all SAARC neighbours "on a reciprocal basis and without prejudice to existing rights, the facility of daily air services by designated airlines" to Indian cities, Delhi, Mumbai [Bombay], Chennai [Madras], Bangalore, Hyderabad and Kolkata besides 18 other destinations all across India. The prime minister followed this up by offering designated airlines of SAARC countries the facility to exercise fifth freedom rights, both intermediate and beyond, with the SAARC region, also on a reciprocal basis. In his address, Singh indicated the need for countries to change their mindsets. "The challenges we face as a region and as members of the larger international community are no longer susceptible to purely national solutions," he said. "There is an imperative need to change and overcome the divisions of history and politics to forge a new architecture of mutually beneficial economic partnership. India, for its part, remains ready for this endeavour," he said. The summit of the seven-nation grouping comprising India, Bangladesh, Pakistan, Sri Lanka, Nepal, Maldives and Bhutan, was first postponed in January in the wake of the tsunami disaster and again in February when India pulled out expressing serious concern over the security situation in Bangladesh and developments in Nepal. Unprecedented security apparatus has been put in place manned by over 30,000 personnel to ensure that the summit went off peacefully. Observing that food security was a major challenge for all South Asian countries, Singh recommended establishment of Regional Food Bank to which all member states would contribute. This could be used to meet shortages and losses caused by natural calamities in any of these countries, he said. Emphasizing the need for promoting regional cooperation in strategizing for the future, the prime minister proposed a South Asian Energy Dialogue involving experts, academics, environmentalists, officials and NGOs, to recommend measures to tap this potential. The prime minister regretted that not a single project proposal had been received relating to utilization of the Poverty Alleviation Fund for which India had offered to contribute 100m dollars a year back on the understanding that this money would be used entirely on projects with SAARC but outside India. India, he said, welcomed the decision to merge the different existing and proposed funds into an Umbrella South Asian Development Fund with different windows for different purposes. As a step in the direction of creating a South Asian Economic Union by 2020, Singh recalled that at the July ministerial meeting it was recommended that a SAARC High Economic Council be set up, which could promote initiatives in economic, trade, finance and

monetary areas with a view to moving towards regional economic integration. Noting that South Asia possesses a very rich and living tradition of exquisite handicrafts and textiles, he conveyed India's readiness to establish a SAARC Museum of Textiles and Handicrafts. The museum could sponsor training of craftsmen, foster design skills, hold promotional events such as fashion-shows and demonstrations by artisans and also undertake research, the prime minister said, adding setting up of retail outlets in each of the SAARC capitals could be explored to promote their textiles and handicrafts regionwide. Singh also announced India's offer to hold a South Asian Car Rally in the run-up to hosting the next summit in the first half of January 2007. It would symbolize vividly regional identity of SAARC and also underline the urgent need to improve transport infrastructure in these countries, he said. To provide an enabling environment and world class facilities to talented people in the region, the prime minister suggested that the member states pool their resources to create a centre of excellence in the form of a South Asian University. India is willing to make a major contribution to the realization of this project over the next three to four years, he said. Observing that regional economic cooperation in South Asia has fallen far short of expectations, he hoped that SAFTA [South Asian Free Trading Agreement] would come into force by 1 January 2006. Contending that it was important to assess South Asia regional cooperation in the larger Asian context, the prime minister said today, ASEAN was evolving rapidly into a truly integrated economic community. "My question is, is SAARC prepared to be an integral part of this emerging Asian resurgence or is it content to remain marginalized at its periphery? "If our region wishes to be a part of the dynamic Asia, which is emerging in our neighbourhood, then we must act and act speedily," he stressed. Referring to disasters afflicting the region, he said the summit should evolve regional mechanisms for effective and timely cooperation in disaster relief and management. India's offer to host the SAARC Centre for Disaster Preparedness has been accepted by all member states. He said the possibilities for meaningful cooperation range from early warning systems to relief and reconstruction. Source: PTI news agency, New Delhi, in English 0813 gmt 12 Nov 05 TAIWAN TAIWAN GOV'T TO DEAL PRUDENTLY WITH ISSUE OF OIL PRICE HIKES SEPT 9, 2005 TAIPEI - Taiwan's Premier Frank Hsieh said Wednesday that the government will deal with the issue of oil and electricity price hikes prudently and avoid sharp increases. The premier made the remarks in an Executive Yuan floor meeting in which the situation of soaring international oil prices and rising domestic consumer prices was reviewed. TAIWAN'S CPC TO SUPPLY QATAR PLANT WITH LNG FOR 25 YEARS SEPT 15, 2005 TAIPEI - Taiwan's state-owned Chinese Petroleum Corp. (CPC) signed a 25-year contract with Qatar Tuesday to buy liquefied natural gas (LNG), CPC sources said Wednesday. CPC Chairman Kuo Chin-tsai, who is currently visiting the Middle East, and Yusif Husayn alKamal, Qatar minister of finance and chairman of Ras Laffan Liquefied Natural Gas Company II (RasGas-II), signed the contract in Doha, Qatar. Republic of China representative to Saudi Arabia Yang Sheng-tsung and ranking officials of RasGas II were on hand to witness the signing. TAIWAN TO OBSERVE OIL PRICES FOR 3 MTHS BEFORE DECIDING ON HIKE SEPT 21, 2005 TAIPEI - Premier Frank Hsieh said Tuesday that the government has set a three-month period to observe crude oil prices and that it will only consider adjusting the price upward if the price remains high after that period. The premier made the remarks while giving an administrative report at the Legislative Yuan. He was obstructed from giving the report

twice last week but was able to take the podium after agreement was reached with opposition Kuomintang and People First Party legislators. TAIWAN'S CHINESE PETROLEUM POSTS LOSS FOR AUGUST: MOEA SEPT 22, 2005 TAIPEI - Troubled by high crude oil prices in the world market, Chinese Petroleum Corp. (CPC) posted a loss of NT$2.512 billion (US $76 million) in August, becoming the only one of the seven state-run companies to operate in the red for that month, according to a Ministry of Economic Affairs (MOEA) report. However, the CPC still managed pre-tax earnings of NT$13.685 billion for the first eight months of this year, accounting for 91.5 percent of the full-year profit target required by the government, according to officials of the MOEA's Commission of National Corporations. TAIWAN HAS GREAT PROMISE IN SOLAR ENERGY DEVELOPMENT: TYCOON SEPT 27, 2005 TAIPEI - With well-developed wafer and semiconductor industries, Taiwan has great promise in solar energy development, the chief executive officer of Taiwan's leading crystalline silicon solar cell manufacturing company said Monday. Speaking in an interview with CNA, Motech Industries Inc. President Leo Cheng said he urged the government to invest more in solar energy research when his company began investing in the field seven years ago. TAIWAN TO CUT COMMODITY TAXES ON THREE OIL PRODUCTS: PREMIER SEPT 29, 2005 TAIPEI - Premier Frank Hsieh announced in an Executive Yuan meeting Wednesday that commodity taxes for gasoline, diesel and fuel oil will be adjusted downward by 25 per cent starting Oct. 1 for a trial period of three months. The premier's announcement came amidst soaring world crude oil prices in recent months. TAIWAN GOVT TO CANCEL TAXI FUEL SURCHARGE SEPT 30, 2005 TAIPEI - The government has decided to cancel the taxi fuel surcharge from Oct. 1 to help tide taxi drivers over their financial straits amid the current gasoline price upward spiral, Cabinet spokesman Cho Jung-tai said Thursday. According to Cho, Premier Frank Hsieh reached the decision after meeting with representatives of major local taxi driver associations. TAIWAN'S JAN-AUG ENERGY CONSUMPTION UP 2.78% ON-YEAR OCT 24, 2005 TAIPEI - Taiwan's energy consumption in the first eight months of this year was 71.18 million kiloliters of crude oil equivalents (KLOEs), up 2.78 per cent from the same period last year, according to a report released Saturday by the Bureau of Energy. Meanwhile, energy supplies between January and August decreased 1.45 per cent from last year to 88.61 million KLOEs, 97.98 per cent of which was imported. TAIWAN'S IMPORT VALUE OF CRUDE OIL SURGES DURING JAN-OCT: DGBAS NOV 14, 2005 TAIPEI - The value of Taiwan's crude oil imports totalled NT$480.5 billion (US$14.36 billion) in the first 10 months of this year, with an annual growth rate of 37.7 per cent, according to statistics released Saturday by the Directorate General of Budget, Accounting and Statistics (DGBAS). The surge was mainly caused by skyrocketing oil prices in the international market and the fact that the Formosa Petrochemical Corporation activated its crude oil refinery, DGBAS officials said.

TAIWAN TO CONTINUE SUBSIDIES TO ENCOURAGE USE OF NATURAL GAS VEHICLES NOV 23, 2005 TAIPEI - The Environmental Protection Administration (EPA) will increase the number of liquefied natural gas fuel stations in the country and continue to provide fuel subsidies to encourage the use of environmentally friendly natural gas-powered vehicles, officials said Tuesday. According to EPA Deputy Minister Tsay Ting-kuei, it is the EPA's goal to increase the number of natural gas vehicles on the road by 18,000 in three years to 26,000. TAIWAN'S ENERGY SUPPLIES RISE IN FIRST 10 MONTHS OF 2005 DEC 19, 2005 TAIPEI - Taiwan's energy supplies amounted to 112.57 million kiloliters of crude oil equivalents (KLOEs) for the first 10 months of this year, with locally produced energy increasing 5.5 per cent year-on-year to 2.21 million KLOEs, the Directorate General of Budget, Accounting and Statistics reported Saturday. Imported energy accounted for 110.36 million KLOEs, down 0.1 per cent from the same time last year. TAIWAN TO STEP UP RECYCLABLE ENERGY DEVELOPMENT IN 2006 DEC 27, 2005 TAIPEI - The government will put recyclable energy at the top of a key science and technology development project in 2006, Minister of Economic Affairs Ho Mei-yueh said Monday. She said the government will use research and development (R&D) support, tax incentives and energy procurement policy to encourage the development of emerging energy sources. OPPORTUNITY SEEN FOR TAIWAN'S CHIP SECTOR IN SOLAR CELLS DEC 28, 2005 TAIPEI - If the chip-making industry can integrate solar energy to produce highly efficient solar cells, it will help Taiwan reduce its dependency on imported energy, according to a think tank. Chang Chien-yi, a department director of the Taiwan Institute of Economic Research (TIER) , said the production process involved in developing low-cost solar cells have many common features as in semiconductor production; in fact, some solar cell manufacturers are studying how to use new chips and related technology to lower production costs. THAILAND EGAT IPO SHARE PRICE RANGE SET AT B24-29 SEP 20, 2005, YUTHANA PRAIWAN Bangkok Post http://www.bangkokpost.com/Business/20Sep2005_biz27.php Financial advisers for Egat Plc have proposed a preliminary price range of 24-29 baht per share for the state power utility's initial public offering scheduled for early November. The advisers have also suggested raising the number of capital-increase shares offered to Egat staff to at least 20,000 each from 17,000 proposed earlier. In a pre-deal assessment, the market price range of Egat shares is between 23.30 and 29.60 baht based on 540 million shares offered to Egat staff, according to a source familiar with the IPO preparations. However, the advisers _ JP Morgan, Citigroup, Morgan Stanley, Phatra Securities, SCB Securities and Tisco Securities _ have been recommending that Egat increase the number of shares offered to its staff beyond the 460 million endorsed by the cabinet in August. The suggestion reflects the substantial decline in Egat's book value, to 152.5 billion baht from 202.1 billion over six months, because the utility cannot realise accrued income from fuel adjustment charges, known as the Ft. The cabinet based the allocation of 460 million shares for Egat staff under an employee stock option programme (Esop) on eight times their monthly salaries. But based on the lower book value and the estimated IPO price range of

24-29 baht, the number of Esop shares needs to be between 454 million and 616 million in order to represent up to eight times' monthly salaries. Egat has 26,300 staff. The source said that prospective investors have expressed anxiety about state intervention in the Ft. The Ft is reviewed every four months to reflect changes in fuel costs, foreign exchange and other factors. The government has frozen Ft increases for two years in order to ease pressure on consumers and businesses from higher power bills. The source said the government's decision to cap the Ft charge at 0.4683 baht per unit (kilowatt/hour) since 2003 had reduced Egat's EBITDA (earnings before interest, tax, depreciation and amortisation) by 1.3 billion baht to 114.5 billion baht as of August. It has also caused Egat to miss its targeted profits, which are expected to decline to 28 billion baht this year from 30 billion in 2003. Areepong Bhoocha-oom, the deputy director-general of the State Enterprise Policy Committee, dismissed investors' concern, saying the regulations governing reviews of the Ft charge were clear. Regulation of the electricity industry is being overseen by the National Energy Policy Commission chaired by Prime Minister Thaksin Shinawatra until a new regulatory body is officially established. Egat's IPO advisers will conduct premarketing from today until Sept 30, followed by bookbuilding with institutional investors. The IPO price range and shares allocated to Egat employees will be decided on Oct 3 while the final price will be set on Nov 3. Shares are tentatively scheduled to begin trading on the SET on Nov 14. THAILAND'S PTTEP TO EXPLORE FIVE MORE OIL BLOCKS IN OMAN SEPT 23, 2005 BANGKOK - Thailand's PTT Exploration and Production Plc (SET:PTTEP) has been granted approval to explore for oil in five oil blocks in Oman, The Nation reported today. The newspaper said PTTEP, the exploration arm of state-controlled PTT Plc (SET:PTT), had received approval from the government of Oman to explore the five new blocks in addition to the one it already operates in the country. THAILAND'S PTT, CHEVRON SCRAP PLAN TO MERGE TWO OIL REFINERIES SEPT 16, 2005 BANGKOK - Thai energy giant PTT Plc (SET:PTT) said today plans to merge two oil refining companies in Rayong had fallen through. A Memorandum of Understanding (MOU) signed in June between PTT and Caltex Trading and Transport Corporation (CTTC) for the merger of Rayong Refinery Plc (RRC) and Star Petroleum Refining Co (SPRC) had been terminated, PTT said in a statement to the Stock Exchange of Thailand today. BIMSTEC FOR CROSS-COUNTRY POWER TRANSMISSION GRID OCT 6, 2005, The Daily Star URL:http://www.thedailystar.net/2005/10/06/d5100601044.htm Seven South and South East Asian countries, including Bangladesh, agreed on Tuesday to explore the possibility of having an electricity transmission network among them. It could be achieved by developing an inter-connectivity grid between the countries to facilitate the flow of electricity across the region, an official statement of the countries said.. The statement was issued at the end of the daylong conference of energy ministers and officials of the Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (Bimstec). India, Bangladesh, Nepal, Bhutan, Myanmar, Thailand and Sri Lanka are in the economic group. The proposed power grid would run from Thailand to Sri Lanka and Thailand would head a task force to work out the draft memorandum of understanding (MoU) for the inter-country grid connections. The task force, which will submit its report within a year, would also take into account crucial factors like flow of electricity between the member countries without discrimination. The conference also reached a consensus on the feasibility of a trans-regional natural gas pipeline. "The conference recognised the need for detailed feasibility studies and techno-economic agreements between and among

participating countries to allow optimal utilisation of natural gas resources in the region," the statement said. The conference produced an action plan for the cooperation among Bimstec countries to ensure energy security in the region. The plan also covered the tapping of hydrocarbon potential in the region and exchanging unconventional sources of energy as well as building energy security and energy efficiency in the region. On the gas pipeline, the member countries agreed to form a separate task force to work out the terms of reference and to recommend the course of action after taking into account the work done on such a pipeline. Thailand would host the first meeting of the task force on the gas pipeline early next year, Indian Power Secretary RV Shahi said. He said a Bimstec Centre for Energy is likely to come up next year to enable member countries to share experiences in reforms, restructuring, regulation and best practices in the energy sector. The location for the proposed centre is yet to be decided. There was no concrete form of cooperation in the unconventional sources of energy but it was felt that member countries could focus on small hydro projects, solar energy and generation of electricity from rice husk. The Bimstec countries would draw on each other's experiences on rural electrification as well as on efficient development of coal resources. Cooperation in the energy sector is one of the main areas identified by the Bimstec countries when the economic group was set up in 1997. NAM NGUM SHAREHOLDERS TO NEGOTIATE TARIFFS OCT 7, 2005, Manichanh PANSIVONGSAY, Vientiane Times Shareholders of the Nam Ngum 3 hydropower project will try to negotiate a higher energy tariff with the Electricity Generating Authority of Thailand (EGAT) before the memorandum of understanding is signed in November. Project shareholders and EGAT have been holding talks regarding the price of energy for some time, but they cannot reach an agreement. Nam Ngum 3 National Project Director Mr Seng Panyasiri said on Wednesday, EGAT has suggested an average purchase price of 5.17 US cents per kwh, but the project needs more than that. Mr Seng said that shareholders would hold further discussions before the meeting in November. The project's timetable plans for the power purchase agreement to be signed in March 2006. The basic construction costs of the hydropower plant are in the region of US$552 million. Work is scheduled to take about five years and is expected to begin in October, 2007. The project developers have been discussing financing with the Asian Development Bank (ADB) and the Japanese Bank for International Cooperation (JBIC), Seng said. The project is located about 5 kilometres north of the Nam Pha river mouth, northwest of Longcheng village. The site covers an area in Xaysomboun Special Zone and Xieng Khuang province. The large-scale hydropower plant will have an installed capacity of 460 MW. 90 percent of the electricity generated will be exported to Thailand, starting in 2011. It is expected that the project will help bolster the Lao economy, especially in the immediate vicinity of the plant. The country also will earn significantly more from exports. The project has four shareholders: the government (23 percent), MDX Lao Company Limited, Thailand (27 percent), Marubeni Corporation, Japan (25 percent) and Ratchburi Holding Public Co., Thailand (25 percent). The memorandum of understanding between the shareholders was signed in April 26 in Vientiane. After the concession period, ownership of the project will be transferred to the government in 2035. The shareholders are also talking with the government about the concession agreement, which they expect to be signed in November. THAILAND INVITES INDIAN OIL FIRMS TO LOOK FOR OIL AND GAS OCT 7, 2005 NEW DELHI - Thailand on Wednesday invited Indian firms to explore for oil and gas in its offshore region and invest in setting up CNG distribution network for automobile sector. "We discussed cooperation (between India and Thailand) in upstream (oil and gas exploration and production) and renewable energy," Thailand's Energy Minister Viset Choopiban said after a meeting with the Petroleum Minister Mani Shankar Aiyar here.

MEKONG HYDRO PLANTS REVIVED Oct 11, 2005 , Water Power Magazine http://www.waterpowermagazine.com/story.asp?sectioncode=130&storyCode=2031732 Thailand's Alternative Energy Development and Efficiency Department is reviewing plans for two hydroelectric dam projects on the Lower Mekong river. The proposed Pamong and Ban Koum dams on the Mekong river near Loei and Ubon Ratchathani provinces would be the first dams on the Lower Mekong river, which runs through Cambodia, Laos, Thailand and Vietnam. A US$2.4M feasibility study for the projects is underway with Panya Consultants conducting preliminary studies at seven potential sites. CHINA TO INVEST IN SALWEEN POWER PLANTS, 5 trillions baht to be raised from the stock market OCT 12, 2005 Matichon Daily According to source in the Ministry of Energy, the Thai government led by Prime Minister Thaksin Shinawatra has recently signed an MOU with the Burmese government for the joint investment in the construction of hydropower plant for the Salween dams. The Thai Electricity Generating Authority of Thailand (EGAT) will lead the effort and will persuade Thai private sector to join with them. Initial development plan is being studied, which will enable EGAT to choose 4-5 feasible sites for the power plants with combined capacity of over 10,000 megawatts including in (1) Tanaosri (Taninthayi) in Prachuab Kirikhan province with the capacity of 600 megawatts, (2) the upper border Salween river with the capacity of 5,600 megawatts, (3) the lower border Salween river near Mae Hong Son province with the capacity of 900 megawatts, (4) Hatyi, the border of Tak province with the capacity of 600 megawatts and (5) Tasang dam in Burma. "During the meeting of the Thai-Chinese Economic Cooperation Committee, the visiting Vice Prime Minister of China, Madam Wu Yi, informed the Thai counterparts that Sinohydro Corporation, a leading dam construction company in China is interested in investing in the Salween project and the plan is being explored" said the source. Mr. Krasri Kannasutra, EGAT's governor said EGAT is exploring for the most feasible sites for the construction of the power plants to make it worth the investment. It is estimated that 1 megawatt of power produced may cost 1 million USD for investment, therefore, if the five power plant projects will be implemented at the same time, EGAT must have at least 4 trillions baht (10 billions USD) at their disposal. He admits that the Sinohydro has already met with the Permanent Secretary of the Ministry of Energy, Mr. Cherdpong Siriwit, and has expressed their interest to invest in this project. However, electricity from this project will not be fed to China due to the long distance of the grid system. According to EGAT's governor, Thailand will be the sole buyer of the power. He also said that in terms of investment, hydropower costs the least compared to other fuels including natural gas. Thought each unit of power produced by natural gas costs 5 cents at present, but fluctuation of oil prices may affect its price which is poised to rise incessantly. Meanwhile, hydropower has the potential to meet the current and future demand and the production cost will stay for at least 50 years. "Capitalization in the stock market will pave the ways for possibility to raise funds from other sources" said Mr. Kraisri. THAILAND'S PTTEP SETS UP NEW PETROLEUM EXPLORATION SUBSIDIARY OCT 12, 2005 BANGKOK - Thailand's PTT Exploration and Production Plc (SET:PTTEP) on Sunday established a new subsidiary to carry out petroleum exploration and development activities in the country. The new subsidiary, Diamond Petroleum Company Ltd, has a fully-paid up registered capital of US$50,000, consisting of 50,000 ordinary shares at US$1 each, PTTEP said in a release to the Stock Exchange of Thailand today.

THAILAND'S PTT RANKED NO. 1 FIRM IN ASIA BY BUSINESSWEEK POLL OCT 14, 2005 BANGKOK - PTT Plc (SET:PTT) has been ranked as the No. 1 company in Asia by the Asian BusinessWeek 50 Poll, which chose the Thai energy giant to take out the top spot from a list of 625 Asian firms. PTT said the ranking among Asia's best companies was of historical significance to the company. THAILAND: CK REPORTS ON SALE OF ORDINARY SHARES IN SOUTHEAST ASIA ENERGY LIMITED OCT 21, 2005, Global News Wire - Thai Press Reports SET Filing - Reference is made to the fact that the Extraordinary General Meeting of Shareholders No. 1/2004 of CH. Karnchang Public Company Limited, held on December 21, 2004, resolved to grant approval for the Company to purchase and/or waive its option to purchase capital increase shares, and/or transfer the option to purchase ordinary shares in Southeast Asia Energy Limited, which might occur in the future, to other persons and/or legal entities to join the investment at the rate of 65-75 percent of the company's registered capital, so that the Company would hold shares only 25-35 percent of the registered capital. In this regard, the Executive Board would be authorized to consider approving the details, selling price and conditions for further offering of the option to such other persons and/or legal entities. After the sale and/or waiver of the option to purchase capital increase shares and/or transfer of the option to purchase such number of shares to other persons and/or legal entities, the Company would hold shares in Southeast Asia Energy Limited approximately 25-35 percent of the registered capital. The Company hereby informs you that the Company has already sold 1,250,000 ordinary shares in Southeast Asia Energy Limited to Bangkok Expressway Public Company Limited, at the price equal to the par value of Baht 10 per share, in the total transaction value of Baht 12,500,000 in accordance with the resolution of the Board of Directors Meeting No. 5/2005, held on August 16, 2005. As a result, the Company currently holds 7,749,995 shares representing 77.50 percent of the registered capital in Southeast Asia Energy Limited (formerly the Company held 8,999,995 shares representing 89.99 percent of the registered capital in Southeast Asia Energy Limited). JV OF MALAYSIA'S MELEWAR ACQUIRES STAKE IN SIAM POWER OCT 24, 2005 KUALA LUMPUR - Melewar Industrial Group Berhad (MIG) (KLSE:3778) on Friday announced that M-Power TT Ltd, its 75 per cent-owned joint venture, has signed an agreement with Power Pte Ltd to acquire a 55 per cent stake in Siam Power Generation Company Ltd (SIPCO) for US$22.0 million cash. TransTurbo Engineering Sdn Bhd owns a 25 per cent stake in M-Power. THAILAND'S PTTEP TO SELL THAIOIL POWER STAKE TO PTT OCT 24, 2005 BANGKOK - PTTEP International Limited (PTTEPI), a subsidiary of PTT Exploration and Production Plc (SET:PTTEP), will sell its 26 per cent stake in Thaioil Power Company Ltd. PTTEP said Friday its Board of Directors passed the resolution for PTTEPI to sell its 73,060,000 common shares in Thaioil Power to PTT, PTTEP's major shareholder, for 2.3 billion baht (US$56 million). THAILAND'S PTT DENIES ILLEGAL DEALINGS WITH SADDAM REGIME NOV 2, 2005 BANGKOK - PTT Plc (SET:PTT) president Prasert Bunsumpun Tuesday denied news reports the Thai energy giant was involved in illegal trading of Iraqi crude oil under the UN Oil For

Food Program. "PTT's international trading was done step-by-step with transparent and auditable process," Prasert said. THAI OIL'S Q3 NET PROFIT JUMPS 83% ON-YEAR NOV 4, 2005 BANGKOK - Thai Oil Plc (SET:TOP), the largest petroleum oil refiner and supplier in Thailand, posted an 83 per cent on-year rise in third quarter consolidated net profit at Bt6.25 billion (US$153 million). Thai Oil said today the favorable result was driven by its affiliates' good performance, especially Thai Paraxylene Co., Thai Lube Base and Independent Power Thailand Co. THAILAND RATCHABURI HOLDING INVESTS 2,350 MILLION BAHT IN JOINT-VENTURE HYDROELECTRIC POWER PROJECT OF NAM-NGUM 2 IN LAOS NOV 4, 2005, Global News Wire, Thai Press Reports Ratchaburi Holding has acquired 25% equity of SouthEast Asia Energy Company Limited. The investment will increase its installed capacity for 153 Megawatts. Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) signed the Shareholders Agreement and acquires for 25% share holding stake of SouthEast Asia Energy Company Limited (SEAN), an operator of hydroelectric power project of Nam Ngum 2 in Loa People's Democratic Republic (Lao PDR) from CH. Karnchang Public Company Limited after the Company has reviewed and negotiated all the terms and conditions of the Shareholders Agreement. Under the agreement, the shareholder structure of SouthEast Asia Energy Company Limited comprises as below: 1. CH. Karnchang Public Company Limited, holding a 28.5% stake 2. Lao People's Democratic Republic (Lao DPR), holding a 25% stake 3. Ratchaburi Electricity Generating Holding PCL., holding a 25% stake 4. Bangkok Expressway Public Company Limited, holding a 12.5% stake 5. P.T. Construction & Irrigation Co., Ltd., holding a 4% stake 6. Shlapak Development Company, holding a 4% stake 7. Team Consulting Engineering and Maintenance Co., Ltd., holding a 1% stake Presently, SouthEast Asia Energy Company Limited has the registered capital of 400 million Baht, a total of 40,000,000 shares at 10 Baht per share, which is paid-up capital of 175 million Baht. On November 3, 2005, the Company has paid 43.75 million Baht or 25% of 175 million Baht. After that, SEAN expects to increase the registered capital to 9,400 million Baht and the Company will gradually pay the investment according to the fund needed for project development by its shareholding proportion. Therefore, the Company's total investment will amount to 2,350 million Baht. The hydroelectric power project of Nam Ngum 2, which holds a long-term Power Purchase Agreement (PPA) with EGAT PCL., is located 35 kilometers north of Nam Ngum 1 in the People Democratic Republic of Loas. It has the total generating capacity of 615 Megawatts. The project will begin supplying electricity power to Thailand in September 2010. Thus, the investment will increase another 153 Megawatts of the Company's total installed capacity to 4,498 Megawatts. Ratchaburi Electricity Generating Holding PCL is a Thailand leading investment firm in power generation business. At present, the Company has invested in 4 power plant projects namely; 3,645-Megawatt Thermal and Combined-Cycle Power Plant of Ratchaburi located in Ratchaburi Province, sharing 350Megawatt Combined-Cycle Power Plant of Tri Energy located in Ratchaburi Province, sharing 350-Megawatt Combined-Cycle Power Plant of Ratchaburi Power located in Ratchaburi Province, and sharing 153-Megawatt Hydroelectric Power Plant of Nam Ngum 2 located in Lao PDR. PHILIPPINE GASOLINE PRICES LOWER THAN THAILAND, VIETNAM, US: WB NOV 4, 2005 MANILA - Local premium gasoline prices in the Philippines rose at a slower pace from December 2002 to August 2005, compared to some of its neighbours in East Asia and the Pacific, including Thailand, Vietnam and the United States. The East Asia and the Pacific

Regional Update released by World Bank Thursday showed that pump prices in the Philippines rose 71.4 per cent from 35 US cents in December 2002 to 60 US cents in August 2005. ANALYSIS - ASIAN COUNTRIES MOVE TO CUT OIL SUBSIDIES NOV 7, 2005 Analysis from Asia Today - Asian countries have moved swiftly to reduce oil subsidies costing billions of dollars, to relieve the unbearable burden on their budgets. Thailand, Indonesia and Malaysia have announced plans to remove or reduce fuel subsidies by 2006. Subsidies are a huge problem for developing countries, says William Ramsay, Deputy Executive Director of the International Energy Agency (IEA). 449,656 THAILAND: RATCH SIGNS SHAREHOLDERS AGREEMENT (NUM NGUM 2 PROJECT) NOV 7, 2005, Global News Wire - Thai Press Reports SET Filing - The reference is made to the news of Ratchaburi Electricity Generating Holding Public Company Limited ("the Company") dated May 20, 2005; Investment in Hydropower Plant Project - Nam Ngum 2, informing the Board of Director's resolution, by the meeting No. 7/2005 approved the Company to invest in Nam Ngum 2 Project by acquiring shares of Southeast Asia Energy Company Limited ("SEAN") from CH. Karnchang Public Company Limited and other preceding shareholders, in which the Company must review and negotiate all the terms and conditions of the Shareholders Agreement and other related documents thoroughly before entering into the Agreement. The Company hereby inform that, as the mentioned negotiation on the terms and conditions of the Shareholders Agreement completed, the Company has signed and entered into the Shareholders Agreement on November 3, 2005. The shareholders structure of SEAN that stated in the Shareholders Agreement is listed as follow: 1. CH. Karnchang Public Company Limited will hold 28.5% 2. Lao People's Democratic Republic (Lao PDR) will hold 25.0% 3. Ratchaburi Electricity Generating Public Company Limited will hold 25.0% 4. Bangkok Expressway Public Company Limited will hold 12.5% 5. P.T. Construction & Irrigation Co., Ltd. will hold 4.0% 6. Shlapak Development Company will hold 4.0% 7. Team Consulting Engineering and Management Co., Ltd. will hold 1.0% As the date hereof, the registered capital of the SEAN is Baht 400 million; divided into 40 million ordinary shares of Baht 10 par value. The first Baht 175 million of registered capital of SEAN has already paid up, in which the Company paid in its aforesaid shareholding proportion, or Baht 43.75 million in accounted. In addition, the registered and paid up capital of SEAN would later be subscribed up to Baht 9,400 million, in proportion to the above Shareholding Structure. Therefore, the total portion of the Company's capital investment in SEAN will be Baht 2,350 million. The payment on the capital will be orderly made according to the capital requirement for the project development. RATCHABURI INVESTS B2.35BN TO TAKE STAKE IN OPERATOR OF LAOS PROJECT NOV 7, 2005, Ploy Chitsomboon, Bangkok Post, Thailand Ratchaburi Electricity Generating Holding Plc is investing 2.35 billion baht in the Nam Ngum 2 hydroelectric power project in Laos. The project is expected to boost Ratchaburi Electricity's production capacity by 153 megawatts to nearly 4,500 MW. Ratchaburi Holding agreed to buy a 25 percent stake in Southeast Asia Energy Ltd (SEAN), a subsidiary of Ch. Karnchang Plc and the operator of the project. SEAN has registered capital of 400 million baht and 175 million baht in paid-up capital. On Nov 3, Ratchaburi paid 43.75 million baht, or 25 percent of the total paid-up capital for the stake. SEAN expects to increase its registered capital to 9.4 billion baht with the investment paid up based on the funding requirements of the project by the shareholders in proportion to their holdings. Other major shareholders in the project include Ch. Karnchang with a 28.5 percent stake, the Laotian government with a 25 percent stake, Bangkok Expressway Plc (12.5 percent), P.T.

Construction & Irrigation (4 percent), Shlapak Development Company (4 percent) and Team Consulting Engineering and Maintenance (1 percent). The Nam Ngum 2 hydroelectric power plant, located 35 kilometres north of the Nam Ngum 1 project, has total capacity of 615 MW. The project, which has a 25-year power purchase agreement with the Electricity Generating Authority of Thailand, is expected to begin supplying electricity power to Thailand in September 2010. Aside from the investment in the Nam Ngum 2 project, Ratchaburi has invested in three other plants: 3,645 MW thermal and combined-cycle power plant in Ratchaburi province, a 350 MW combined-cycle plant in partnership with Tri Energy, and a 350 MW combined-cycle plant of Ratchaburi Power. Shares of Ratchaburi (RATCH) closed on Friday at 39.25 baht, up 25 satang, in trade worth 12.75 million baht. RATCHABURI TO BOOST CAPACITY OF LAOS PROJECTS TO 1,000 MW NOV 10, 2005, Bangkok Post, Thailand Ratchaburi Electricity Generating Holding Plc is targeting to boost its production capacity to 1,000 megawatts from projects in Laos. Thawat Vimolsalavong, Ratchaburi's deputy managing director for business ventures and acting managing director, said the company expected to commit to taking at least 25 percent stakes in one or two more projects in the neighbouring country next year. The company is already investing 2.35 billion baht to acquire a 25 percent stake in Southeast Asia Energy Ltd (SEAN), a subsidiary of Ch. Karnchang Plc and the operator of the 615-MW Nam Ngum 2 hydroelectric power project in Laos. The project is expected to boost Ratchaburi Electricity's production capacity by 153 MW to nearly 4,500 MW and will begin supplying electricity power to Thailand in 2010. Ch. Karnchang holds a 28.5 percent stake in the project. Other shareholders include the Laotian government with a 25 percent stake, Bangkok Expressway Plc (12.5 percent), P.T. Construction & Irrigation (4 percent), Shlapak Development Company (4 percent) and Team Consulting Engineering and Maintenance (1 percent). Mr Thawat also said Ratchaburi's Thermal Power Plant Unit 1 would resume operations on Nov 24 after being damaged by a fire last month. He declined to give an estimate of the damages incurred, which would affect fourth-quarter results. For the third quarter of this year, the company announced a net profit of 1.48 billion baht or 1.02 baht per share compared to 1.89 billion baht or 1.31 baht per share registered in the same period last year. The decline in profit was due mainly to a sharp increase in maintenance costs which were 256.6 million baht in the quarter compared with 38.9 million baht in the same period last year. Ratchaburi recorded a net profit of of 5.48 billion baht or 3.78 baht per share for the first nine months of this year, up 10.62 percent from the same period last year, on total revenue of 34.78 billion baht, a gain of 15.01 percent from the same period last year. Of the total revenue, 34.25 billion baht was generated from electricity sales. Shares of Ratchaburi closed yesterday on the Stock Exchange of Thailand at 39 baht, unchanged, in trade worth 10.8 million baht. THAI FINANCE MINISTER SHRUGS OFF OPPOSITION TO EGAT LISTING NOV 10, 2005 BANGKOK - Finance Minister Thanong Bidaya on Thursday shrugged off mounting opposition to the planned listing of the Electricity Generating Authority of Thailand (EGAT) Public Company Limited's on the Stock Exchange of Thailand (SET), saying it is just a normal phenomenon under the democratic system. His remarks were made after the Administrative Court postponed giving its verdict on a petition filed by the Consumer Protection Foundation against the share offering of EGAT on the Thai bourse. THAI FINANCE AND ENERGY MINISTRIES TO GO AHEAD WITH EGAT FLOAT NOV 16, 2005 BANGKOK - The Finance and Energy Ministries on Tuesday issued a joint statement, reiterating readiness to go head with the planned floating of power utility EGAT Public Company Limited's (EGAT) shares no matter whether the Supreme Administrative Court

would dismiss the case, or rule in favor of the share offering. Both ministries stated that the court had just ordered the suspension of the planned listing of EGAT's shares pending a judicial review. ELECTRICITY GENERATING HOLDING CO. SIGNS PACT TO BUY 25% STAKE IN 615-MW PROJECT IN LAOS NOV 17, 2005, Global Power Report Ratchaburi Electricity Generating Holding Co. PLC of Thailand has signed an agreement to buy a 25% stake in the 615-MW Nam Ngum-2 hydroelectric project in Laos. REGH, a subsidiary of state-owned utility EGAT PLC, bought the stake in the project company, Southeast Asia Energy Ltd., for $57 million from Thailand's Ch. Karnchang PLC. Other partners in the $780 million project include Ch. Karnchang, which now has a 28.5% stake, the Laotian government with a 25% stake, Bangkok Expressway with 12.5%, P.T. Construction & Irrigation with 4%, Shlapak Development Co. with 4%, and Team Consulting Engineering and Maintenance with 1%. The project has a 25-year power purchase agreement with EGAT and is due on line in 2010. The tariff has been set at of 5 cents/kWh. REGH Managing Director Boonchoo Direksathaporn said last June that the company was negotiating to buy a stake in the project. "The decision to invest in this project is part of the company's business plan to enhance its growth by adding value for our shareholders and stakeholders for the maximum benefit,'' he said. He also said that with the latest investment, REGH would look for more investment opportunities in Laos' generation sector. The Nam Ngum PPA is part of the Thai government's plan to purchase 3,000 MW from Laos. So far, EGAT has signed deals with developers of three projects in Laos that between them have about 1,800 MW of capacity. IRAN, THAILAND HOLD SECOND ROUND OF OIL TALKS NOV 23, 2005 KUALA LUMPUR - The second round of Iran-Thailand oil committee session was held in Bangkok on Monday. The deputy oil ministers of the two nations participated in the committee session. HYDROPOWER DAM IN LAOS TO SECURE POWER SUPPLY FOR THAILAND NOV 28, 2005 BANGKOK - The Prime Ministers of Thailand and Laos on Sunday jointly presided at the foundation stone laying ceremony for the construction of the Nam Theun 2 (NT2) hydropower project in central Laos that will help provide a secure future power supply for Thailand and earn Laos hard currency to further develop the landlocked country's economy. Nam Theun 2 is a 1,070 megawatt hydropower scheme. THAI MINISTRY TO INTENSIFY BIO-DIESEL DEV'T IN LIGHT OF KING'S WORDS DEC 6, 2005 BANGKOK - The Energy Ministry will accelerate its activities to develop and popularise biodiesel as alternative energy, in the aftermath of His Majesty the King's birthday speech on Monday. The King reminded the government to develop alternative energy sources, in particular palm oil -- which seems the most viable substitute fuel. EGAT, BURMA TO SIGN DEAL DEC 6, 2005 The Nation http://202.60.196.117/breaking/read.php?lang=en&newsid=99472 Egat Plc is set to ink an agreement with the Burmese electricity authority on Friday to form a joint venture to construct at least five hydropower plants in Burma with a combined capacity of 10,000 megawatts. CEO Kraisi Karnasuta said yesterday that the energy ministers of the two countries would witness the signing ceremony. The memorandum of understanding will encourage the JV to put up a hydropower plant at the Wegyi Dam in

Burma. The project will spin off mutual benefits. Both countries will enjoy energy security and Thailand can import electricity from Burma at a low cost. The dam is located on a stretch of the Salaween River across from Tak, Kraisi said. Total capacity of the power plant is planned for 1,200MW. Egat will approach prospective investors both in Thailand and abroad to join in the project, which is expected to take five to six years to complete. China has already expressed interest, he said. Allying with China would reduce construction costs as it can move equipment that was used on building a dam in Burma near their border. Thailand and Burma will co-invest in constructing other hydropower plants on the Salaween. The second plant will be located opposite Prachuap Khiri Khan province, with a capacity of 600MW. The output will be supplied directly to the Sahaviriya Steel mill in the province. The whole scheme of five hydropower plants along the Salaween will ensure energy security in the Asean region. THAILAND AND BURMA TO SIGN HYDROELECTRIC DAM PACT DEC 7, 2005, Bangkok Post http://www.bangkokpost.com/breaking_news/breakingnews.php?id=66217 (TNA) Thailand and Burma plan to sign a Memorandum of Understanding (MOU) on joint investment in building a series of hydroelectric dams on the Salween River in Burma on Friday, Egat President Kraisi Kanasuta said. Mr. Kraisi said the construction of five dams had been planned along the Salween River and is expected, when completed, to generate a total of more than over 10,000 megawatts of power. The project is designed not only to secure electricity for Thailand, but also to generate much-needed income for Burma, he said, while Thailand will benefit from low cost electricity. The project could also help support an integrated power grid plan of the Association of Southeast Asian Nations (Asean), according to Mr. Kraisi. On Friday Egat, formerly a state enterprise previously known as the Electricity Generating Authority of Thailand, would sign the MOU with Myanmar's state electricity organisation to jointly invest in construction of the series dams along the Salween River, he confirmed. The energy ministers of the two countries will witness the signing ceremony, he said. The Hat Gyi Hydroelectric Dam is expected to be the first of the series of dams to be built, he said, taking five to six years to complete, for a capacity of 1,200 megawatts. The dam is near the Thai-Burma border, opposite Mae Sot district of Tak Province. China has expressed interest in joining the project, he said, adding that the Chinese participation is expected to reduce the cost of construction. "China has nearly completed the T-Gorges Dam along the Yangtse River; so equipment can be moved to for use at the Salween dams project," Mr. Kraisi said. Further discussions must be conducted before deciding on China's participation, the Egat president said. THAILAND'S PTT AIMS TO BE GLOBAL PLAYER IN FIVE YEARS DEC 7, 2005 BANGKOK - The state-owned oil firm PTT Public Company Limited (PTT) (SET: PTT) has announced ambitious plans to become a global business player within five years. PTT President Prasert Bunsumpan said here on Monday that the company wants to quadruple its revenue derived from international trade and investment from five per cent of overall income, currently 900 billion baht (US$21.7 million), to 20 per cent to become "Thailand's premier multinational Company. GREENPEACE SEEKS CLOSURE OF BCLP POWER PLANT PROJECT IN THAILAND DEC 7, 2005, AFX - Asia BANGKOK (AFX) - Activists from environmental group Greenpeace scaled a giant coal loading crane in Thailand, demanding that Bangkok abandon a power plant and spend more on renewable fuel sources. Four Greenpeace protestors in orange jump suits and white hard hats climbed the unused crane and unfurled a giant banner which called the BLCP power plant a 'climate killer'. 'This project is a tie-up of international linkages between the coal and

power business in the Asia Pacific,' Greenpeace Southeast Asia's Energy spokesperson Tara Buakamsri told Agence France-Presse from the plant at Map Ta Phut southeast of the capital. 'This coal plant is one of the bad examples of international financial institutions like the Asian Development Bank and Japan Bank for International Cooperation getting involved in financing such dirty projects.' Such institutions should redirect their role to cleaner and more sustainable forms of energy such as solar power, wind power and biomass, plant and animal waste converted into electricity, that are becoming big businesses in Europe and China, he said. Greenpeace protestors from three countries have set up camp outside the plant's main gate and say they will remain until their demands are met. The unfinished plant in Rayong province, about 135 kms southeast of Bangkok, is due to open in mid-2006 and would receive 20 years' worth of coal from Australia's mining giant Rio Tinto, Tara said. Hong Kong-based electricity producer China Light and Power also has a stake in the Thai plant, which if operational would emit 11 mln tonnes of carbon dioxide into the air a year, he said. Officials for Thailand's energy company Banpu Plc, which holds a 50 pct stake in the plant, said they had no comment. China Light and Power, which owns the other 50 pct said in a statement it respected 'the different opinions and understand their concern for the environment.' Thai energy ministry officials could not be reached for comment. CHUBU ELEC-BACKED THAI POWER PROJECT TO GET US$640 MLN IN LOANS DEC 14, 2005 TOKYO - A Thai power company in which Chubu Electric Power Co. (TSE:9502) and Toyota Tsusho Corp. (TSE:8015) have stakes will enter an agreement today to receive loans totaling US$640 million, or roughly 76.8 billion yen. Ratchaburi Power Co. will sign the financing agreement with a lending group consisting of the Japan Bank for International Cooperation, Sumitomo Mitsui Banking Corp. and three others. Chubu Electric and Toyota Tsusho founded Ratchaburi Power with Hongkong Electric Holdings Ltd., Thailand's state-run PTT Public Co. and other Thai interests. THAI OIL TRADERS RAISE GASOLINE PRICES BY US1 CENT PER LITRE DEC 15, 2005 BANGKOK - Local oil traders have acted in unison to raise retail prices of all kinds of fuel products by Bt0. 40 (US1 cent), effective Thursday at 05:00 a. m. Local oil traders Wednesday informed the Energy Policy and Planning Office to edge up their fuel retail prices. With the move, retail fuel prices in Bangkok and surrounding provinces will be Bt25.64 per litre for premium gasoline, Bt24.84 per litre for regular gasoline, and Bt24.14 per litre for gasohol as of December 15 -- while diesel will stand at Bt23.09 per litre. FITCH AFFIRMS RATINGS FOR THAI ENERGY GIANT PTT BANGKOK - Thai energy giant PTT Public Company Limited (SET:PTT) today had its National Senior Unsecured Long-term rating affirmed by Fitch Ratings (Thailand) at 'AA+(tha)'. The company's National Senior Unsecured Short-term rating was also affirmed at 'F1+(tha)', while the National ratings on PTT's outstanding debentures - amounting to THB58 billion (US$1.4 billion) - received a long-term rating of 'AA+(tha)'. THAILAND EYES FOREIGN PARTNERS FOR ALTERNATIVE ENERGY INVESTMENT DEC 23, 2005 BANGKOK - The Federation of Thai Industries (FTI) plans to attract foreign partners to coinvest over Bt10 billion (US$250 million) in alternative energy production within the next two years. FTI also signed an agreement with nine Rajamangala technical universities countrywide to join in research and development of alternative energy and training personnel for the field.

PTT, DAD SPV TO LIST US$18.46 BLN IN BONDS ON THAILAND'S BEX DEC 27, 2005 BANGKOK - The outstanding value of the Thai Bond Electronic Exchange (BEX) will jump to THB756.85 billion (US$18.46 bln) with the listing of seven bond issues worth THB26.3 billion, the Stock Exchange of Thailand (SET) said Friday. Energy company PTT Plc (SET:PTT) will issue three bonds worth a total THB16.0 billion, while DAD SPV Co., a special-purpose vehicle under the Treasury Department, will have four issues collectively worth THB10.3 billion. THAILAND'S DIESEL PRICES CONTINUE ON UPWARD TREND DEC 28, 2005 BANGKOK - Local retail prices of diesel are likely to further increase and stay high next year since global oil prices continue to increase, according to Bangchak Petroleum Public Company Limited (Bangchak). Anusorn Sangnimnuan, the company's president, said here on Monday that fuel prices, particularly those of diesel, on the world market had fluctuated. THAILAND'S PTT POISED TO RAISE NGV PRICE DEC 29, 2005 BANGKOK - PTT Public Company Limited (SET:PTT) says it will consider raising the price of natural gas for vehicles (NGV) in January after it has capped the price at 8.50 baht per kilogram for long. Chittipong Kwangsuksathit, Senior Executive Vice President of PTT's Gas Business Group, said on Tuesday that the NGV cost had been on the rise. VIETNAM PETROLEUM JOINT-VENTURE MAKES PROFITS IN VIETNAM SEPT 5, 2005 HANOI - The Cuu Long Joint Operational Company (JOC) has made a huge leap forward by discovering three oil fields off southern Vietnam and exporting 85,000 barrels a day after just three years of operation. JOC is a joint venture between the Vietnam Petroleum Corporation and four foreign companies, including the Conoco Phillips of the UK and the US, the KNOC and the SK consortiums of South Korea, and the Geopetrol company of Monaco, with the host possessing half of the stock. VIETNAM COAL CORP. PUMPS OUT 19 MLN TONNES IN EIGHT MONTHS SEPT 6, 2005 HANOI - The Vietnam Coal Corporation (Vinacoal) said it has sold 19 million tonnes of coal in the first eight months of this year, an increase of 40 per cent over the corresponding period last year. Of the figure, export and domestic sales were up by 40 per cent and 11 per cent, respectively, due to higher demand on the domestic and regional markets, especially China. ELECTRICITY OF VIETNAM INVESTS US$1.6 BLN IN NEW POWER PLANTS Sep 6, 2005 HANOI - Electricity of Vietnam (EVN) said it will invest US$1.65 billion to build new power plants to cope with the forecast supply shortage from 2006-10. The investment would help EVN increase the total output to 2,300MW over the next three years, said the country's largest electricity provider of 97 per cent of total power. ELECTRICITY OF VIETNAM CORP TO ISSUE US$500 MLN INT'L BONDS Sep 7, 2005 HANOI - The State-owned Electricity of Vietnam Corporation (EVN) will issue around US $500 million worth of international bonds every year. 1In an announcement, released

recently by the Government Office, Prime Minister Phan Van Khai instructed the Ministry of Finance to guide EVN to prepare the necessary procedures to quickly issue international bonds. ELECTRICITY OF VIETNAM PLANS TO INCREASE CAPACITY Sep 12, 2005 HANOI - The Electricity of Vietnam (EVN) Corporation plans to increase the capacity of its northern power transmission network under a US$380.6 million project. The project, which is awaiting the Prime Minister's approval, plans to install three 500kV transmission lines with a total length of 572 km, build two 500kV transformer stations with a combined capacity of 1,350MVA, and increase the capacity of three existing 500kV transformer stations. WORK TO BEGIN ON VIETNAM'S FIRST OIL REFINERY IN NOVEMBER SEPT 13, 2005 HANOI - Work is scheduled to start on the construction of the Dung Quat oil refinery, the first in Vietnam, in November, 2005. Technip, the contractor of the project, is beginning to design the oil refinery at four centers of the contractor complex, including contractors from France, Japan, Spain and Malaysia, for contract package 1 + 4 (oil refinery and offshore oil container), said Truong Van Tuyen, Deputy General Director of the Vietnam Oil and Gas Corporation (PetroVietnam) and Head of the Dung Quat Oil Refinery project Management Board. Technip has also chosen sub-contractors to carry out on land and offshore surveys and ordered the supply of all 25 major equipment for NHT, CCR and LCO workshops. ELECTRICITY OF VIETNAM TO BUILD US$151 MLN TRANSMISSION LINE Sep 19, 2005 HANOI - The Electricity of Vietnam (EVN) Corporation has submitted a feasibility study to the Vietnamese Prime Minister for approval to build the Son La-Soc Son 500kV electricity transmission line. The project, estimated to cost more than 2,415 billion VND (roughly 151 million USD), will be funded by loans from the Asian Development Bank (ADB) and EVN's investment capital. ANALYSIS - OIL PRICE HIKE HAS MIXED IMPACT ON VIETNAM'S BUDGET SEPT 23, 2005 HANOI - The hike in crude oil prices in the international markets has had a positive impact on Vietnam's State budget earnings while affecting the cost of running domestic businesses, the Finance Ministry's General Department of Taxation (GDT) said. The GDT's eight-month statistics showed that revenues from crude oil jumped by 57.4 per cent against the same period last year for a value of VND12 trillion (nearly US $760 million). This was 92.5 per cent of the GDT's planned target for the whole year. VIETNAM-SINGAPORE US$100 MLN JV APPROVED SEPT 26, 2005 HANOI - The Vietnam's Prime Minister approved a plan for a joint-venture company to be established to construct the Van Phong Petrol Terminal in central Vietnam. Vietnam National Petroleum Corporation (Petrolimex) and its subsidiary Petrolimex Joint Stock Insurance Company (Pjico) have joined with a Singapore firm to build the terminal and an oil-storage facility in the coastal central province of Khanh Hoa. FIVE MORE HYDRO-ELECTRIC POWER PROJECTS TO BE BUILT IN VIETNAM Sep 27, 2005 HANOI - Five more hydro-electric power projects will be conducted in the final three months of this year in addition to the Son La hydro-electric power project, which is to start in late November, announced Electricity of Vietnam (EVN). Construction of the An Khe-Kanak

hydro-electric project will be launched in October; while the Srepok 3, Tranh river 2, Huoi Quang and Chat Hamlet hydro-electric power projects will start in December, with a total investment capital of about VND5,437 billion (US$339 million). INDIA'S OVL WINS OFFSHORE OIL, GAS BLOCK DEAL IN VIETNAM SEPT 29, 2005 NEW DELHI - ONGC Vildesh Ltd (OVL), state owned Oil and Natural Gas' overseas arm, has won operation rights at an offshore oil and gas block in Vietnam. "Our bid for block no. 127 was the best and we have been awarded the block," OVL Managing Director R S Butola said from Bangkok. VIETNAM-JAPAN GAS CO. OPENS US$7 MLN FACILITY Sep 30, 2005 HANOI - Vietnam-Japan Gas Co Ltd (VIJAGas) opened a new air separation facility worth more than US$7 million on September 28, annexing its existing plant in Bien Hoa Industrial Park No 2 in the southern Dong Nai Province. The new facility, which can produce 75 tonnes of gas per day, bringing the capacity of the VIJAGas plant to 105 tonnes per day and making it the biggest industrial gas supplier in Vietnam. FIRMS TO PROFIT FROM INVESTMENT IN HYDRO-POWER IN VIETNAM Sep 30, 2005 HANOI - Private and State-owned companies say they expect to reap profits from their investments in new hydro-power plants because of the growing demand of electricity in Vietnam. Much of their investment is in small- and medium-sized hydropower plants. PETROVIETNAM INSTALLS NEW DRILLING RIG OCT 3, 2005 HANOI - The Petroleum Technical Services Company (PTSC), a PetroVietnam subsidiary, has installed a drilling platform (RBDP-B topside) at the Ruby oil field, 155km east of the southern coastal city of Vung Tau. The platform will be used to drill oil in Blocks 01&02 of the Hong Ngoc (Ruby) oil field with an estimated reserve of 200 million barrels of oil. SWEDEN'S NAANOVO ENERGY INC. TO INVEST US$650 MLN IN VIETNAM Oct 5, 2005 HANOI - Naanovo Energy Inc, a global energy technology company that uses waste for fuel, plans to invest US$650 million to construct three power plants in Vietnam. A representative of the firm, Le Lien, said work would begin soon on its first project, a plant in Thanh Hoa, which would cost more than $48 million. FRANCE HELPS UPGRADE ELECTRICITY NETWORK IN VIETNAM Oct 7, 2005 HANOI - The French Development Agency (FDA) will provide a 40 million EUR (US$52 million) loan for an electricity transmission project in the north of Vietnam. An agreement to this effect was signed in Hanoi on Oct. 6 between the Finance Ministry and the FDA. VIETNAM COAL CORP URGES GOVT TO CHANGE WHOLESALE PRICE Oct 10, 2005 HANOI - The Vietnam Coal Corporation (Vinacoal) asked the Ministry of Finance to consider changing the wholesale price of coal next year to compensate for recent losses experienced by the State-owned enterprise. Vinacoal said losses accrued due to spending on production and development, and because of falling coal prices in the domestic market.

VIETNAM'S THREE LARGEST BANKS TO FINANCE US$26.5 MLN POWER PLANT Oct 11, 2005 HANOI - Vietnam's three largest banks have signed a financing deal for the Na Duong thermo-electric power plant worth VND416 billion (US $26.5 million). The Bank for Investment and Development of Vietnam (BIDV), the Bank for Foreign Trade of Vietnam (Vietcombank) and the Vietnam International Bank (VIB Bank) will sponsor the project. VIETNAM SIGNS GUARANTEE FOR FOREIGN GAS FIRMS Oct 11, 2005 HANOI - The Vietnamese Government signed an agreement guaranteeing the implementation of the offshore natural gas development project with foreign oil and gas companies in Hanoi. The Government Guarantees and Undertakings Agreement (GGU) for the Nam Con Son Basin's Block 11-2 gas project was inked by Nguyen Xuan Thuy, Vietnam's deputy minister of industry and representatives of the Korea National Oil Corporation (KNOC), British BP Pipelines Vietnam B.V (BP) and US ConocoPhillips Vietnam A.S (COP). VIETNAM PLANS TO BUILD US$500 MLN HYDRO-ELECTRIC POWER PLANT Oct 11, 2005 HANOI - The Vietnamese Ministry of Industry has submitted the feasibility study of the US $500 million Huoi Quang hydro-electric power plant in the northern province of Lai Chau to the Government for approval. If built, the 520-MW project would be the 4th largest hydroelectric power plant after the 2,400-MW Son La plant, the 1,900-MW Hoa Binh plant and the 1,200-MW Lai Chau plant. MEKONG HYDRO PLANTS REVIVED Oct 11, 2005 , Water Power Magazine http://www.waterpowermagazine.com/story.asp?sectioncode=130&storyCode=2031732 Thailand's Alternative Energy Development and Efficiency Department is reviewing plans for two hydroelectric dam projects on the Lower Mekong river. The proposed Pamong and Ban Koum dams on the Mekong river near Loei and Ubon Ratchathani provinces would be the first dams on the Lower Mekong river, which runs through Cambodia, Laos, Thailand and Vietnam. A US$2.4M feasibility study for the projects is underway with Panya Consultants conducting preliminary studies at seven potential sites. VIETNAM COAL CORP TO START 3 LARGE-SCALE PROJECTS IN LATE 2005 Oct 13, 2005 HANOI - The Vietnam Coal Corporation (Vinacoal) will start building three large-sized projects this year. These projects include the 220-MW Son Dong thermoelectric power plant, the 600-MW Cam Pha thermoelectric power plant and a one million-tonne bauxite aluminium project in the Central Highlands province of Dac Nong. US OIL GIANT CHEVRON TO EXPLORE FOR OIL OFF VIETNAM OCT 14, 2005 HANOI - US oil giant Chevron has won a recent bidding round to explore oil off the coast of eastern Vietnam. State-owned PetroVietnam chose the local affiliate of Chevron to operate offshore Block 122, covering 6,981 sq km in the Phu Khanh Basin. CHINESE FIRMS SET TO IMPORT MORE COAL FROM VIETNAM Oct 17, 2005 HANOI - Chinese companies are intensifying import of Vietnamese coal amidst Vietnam's plan to raise prices of coal products in 2006, according to the Trade Information Center under the Vietnamese Trade Ministry on Monday. The Chinese firms are estimated to

import some 1.5 million tons of coal via border gates this quarter, mainly to fuel power plants in some of China's southern localities. VIETNAM OIL AND GAS CORP TO BUILD US$245 MLN PIPELINE Oct 17, 2005 HANOI - The Vietnam Oil and Gas Corporation (PetroVietnam) has announced that it will sign an engineering, procurement and construction (EPC) contract with the Vietnam-Russia Oil and Gas Joint Venture Company (Vietsovpetro) for the construction of the PM3-Ca Mau gas pipeline on Oct 17. Under the US$245 million contract, Vietsovpetro will be entirely responsible for the building of the 325km-pipeline connecting the PM3 block with An Khanh village, Ca Mau province, which is set to carry ashore 2 billion cubic metres of gas. VIETNAM'S 2ND LARGEST GAS-FUELLED ELECTRICITY PLANT BEGINS OPS Oct 24, 2005 HANOI - The Phu My 2.2 power plant, the second largest gas-fuelled electricity plant in Vietnam, was inaugurated in Tan Thanh district, southern Ba Ria-Vung Tau province, on October 21. The power plant, which has a capacity of 715 MW, is expected to supply 8 per cent of the country's total electricity output. It is one of five electricity plants at the Phu My power complex, which produces up to 40 per cent of Vietnam's electricity demand. UNDP, VIETNAM SIGN US$29MLN PROJECT TO PROMOTE ENERGY EFFICIENCY Oct 25, 2005 HANOI - The Ministry of Science and Technology and the United Nations Development Programme (UNDP) signed a US$29 million five-year project promoting energy conservation in small and medium scale enterprises. The project, which begins next month and goes on till October 2010, aims at removing barriers and promoting the widespread use of energy efficient management practices, operations and technologies in small and medium enterprises in Vietnam. VIETNAM'S FIRST PRIVATE POWER PLANT COMMISSIONED IN VUNG TAU Oct 25, 2005 HANOI - The Vietnam's first private power plant, Phu My Power Plant No. 2.2, was officially commissioned in the southern province of Ba Ria-Vung Tau on October 21. The 715MW gasfuelled plant, which operates on a BOT (Build-Operate-Transfer) basis, is part of the power complex in Phu My Industrial Park, 70km south-east of Ho Chi Minh City, which now has a total capacity of 3,875MW. WORLDWIDE DEMAND IGNITES GAS PRICES IN VIETNAM NOV 3, 2005 HANOI - The price of cooking gas in Vietnam increased for the second time in less than a month due to a spike in global liquefied gas prices. Tran Trong Huu, deputy sales manager of the Gas Trading and Processing Company, said that the increase was a result of a US $30 per tonne surge in the price of imports of liquefied gas since mid-September. CHINA, VIETNAM TO JOINTLY SEARCH FOR OFFSHORE OIL NOV 4, 2005 BEIJING - China and Vietnam will cooperate in the search for oil in the Beibu Gulf, according to a framework agreement signed recently in Hanoi by China's CNOOC and the Petroleum Corporation of Vietnam. Earlier in March of this year, CNOOC, Petroleum and Natural Gas Corporation and the National Oil Corporation of the Philippines signed an agreement on a joint seismic survey of the agreed zone in the South China Sea.

PHILIPPINE GASOLINE PRICES LOWER THAN THAILAND, VIETNAM, US: WB NOV 4, 2005 MANILA - Local premium gasoline prices in the Philippines rose at a slower pace from December 2002 to August 2005, compared to some of its neighbours in East Asia and the Pacific, including Thailand, Vietnam and the United States. The East Asia and the Pacific Regional Update released by World Bank Thursday showed that pump prices in the Philippines rose 71.4 per cent from 35 US cents in December 2002 to 60 US cents in August 2005. INDIA'S OVL AWARDED 2ND OFFSHORE EXPLORATION BLOCK IN VIETNAM NOV 8, 2005 NEW DELHI - State-owned petroleum major ONGC Videsh Limited (OVL) has been awarded second offshore exploration block 128 with 100 per cent participating interest and operatorship in Phu Kanh basin by Petro Vietnam, the Vietnam's national oil company. Earlier, OVL was awarded Block 127 in the same basin just North of Block 128. These awards came out of global competitive bidding for nine offshore exploration blocks in Vietnam 2004 Licensing round, according to a ONGC release here. MALAYSIANS TO EXPLORE COAL, TIN MINING PROSPECTS IN VIETNAM AND LAOS Nov 8, 2005 KUALA LUMPUR - Natural Resources and Environment Minister Adenan Satem will lead a Malaysian delegation to Vietnam and Laos from Nov 8-16 to explore investment prospects in coal and tin mining. He said the Malaysian investors hoped to sign several memoranda of understanding with their partners in the two countries by year-end. CHINA, VIETNAM INK DEAL FOR ELECTRICITY SUPPLY Nov 9, 2005 BEIJING - The China Southern Power Grid Company will supply Vietnam with annual electricity of 1.3 billion kwh in a purchase term of ten years, said sources with the Stateowned Assets Supervision and Administration Commission.Under an agreement signed between the Southern Power Grid and the Vietnam National Power Corporation, the Chinese company will supply electricity to six provinces in northern Vietnam via 220 kv electrical lines, with annual sales income topping US$50 million. VIETNAM REINSTATES TARIFFS ON PETROL IMPORTS NOV 10, 2005 HANOI - The Vietnamese government has revived the tariff imposed on imported petroleum in a move to ease its subsidy burden for domestic fuel use following recent slump in world oil prices, according to the Ministry of Finance. Under a ministry's decision issued on Monday, an import tariff of 5 per cent has been reimposed after giving an eight-month-long tax exemption for lead and non-lead gas, aviation fuel, naptha, reformatic, solven and petroleum add-ons. The new rate became effective yesterday. VIETNAM COAL CORP RESTRUCTURES, DIVERSIFIES BUSINESS INTERESTS Nov 14, 2005 HANOI - The Vietnam Coal Corporation has restructured itself as Vietnam National Coal Group (Vinacoal), following the parent-subsidiary model, becoming the first State-owned enterprise (SOE) in the country with diversified business interests. The country's largest coal producer said the new business form would help the company mobilise capital by decentralising business activities to core groups instead of the previous single ownership model.

NEW POWER PLANT DEAL SIGNED IN VIETNAM Nov 14, 2005 HA NOI - A US$360 million contract to build the 750MW-Ca Mau Power Plant was signed between the Vietnam Oil and Gas Corporation (PetroVietnam) and the Vietnam Machinery Erection Corporation (Lilama) in Hanoi on November 11. The power plant is part of the colossal $1.2 billion Ca Mau Gas-Power-Fertiliser Complex in the southernmost province of Ca Mau. EVN SIGNS CREDIT CONTRACT FOR HAI PHONG THERMO-ELECTRIC POWER PLANT Nov 16, 2005 HANOI - The Electricity of Vietnam Corporation (EVN) on Nov. 15 signed a credit contract worth 7.74 billion yen (roughly US$66 million) with the Japan Bank for International Cooperation (JBIC) for the construction of the Hai Phong thermo-electric power plant. The credit loan, with a maturity period of 15.5 years, including a grace period of 3.5 years, will have an annual interest rate of 1.76 per cent. SHANGHAI ELECTRIC TO BUILD POWER PLANT IN VIETNAM Nov 16, 2005 SHANGHAI - Shanghai Electric (Group) Company and Quang Ninh Thermal Power Co. Ltd in Vietnam recently signed a general contract for the construction of the first-phase of the Quang Ninh Power Plant project. According to the contract, Shanghai Electric will build two 300,000-kw generating units with a contractual value of US$450 million. ELECTRICITY OF VIETNAM PROPOSES POWER TARIFF HIKE Nov 17, 2005 HANOI - Electricity of Vietnam (EVN) has presented a new 2006-2008 electricity pricing plan to the Ministry of Industry (MoI) for consideration prior to submitting it to the Government for final approval. The plan proposes to raise power prices from VND782 (4.9 US cents) per kilowatt hour (kWh) to at least VND898 (5.6 cents) per kWh (excluding value-added tax), an increase of 14.8 per cent over the current price. JAPAN LENDS US$66 MLN FOR HAI PHONG POWER PLANT Nov 18, 2005 HANOI - The Japan Bank for International Cooperation (JBIC) has provided a US$66 million loan to help Electricity of Vietnam (EVN) construct Hai Phong Thermal Power Plant 1. The signing ceremony was held between JBIC and EVN in Hanoi on November 16. Construction on the project, which is located in the northern port city of Hai Phong, will kick off on November 27 and should be complete in three years. NIPPON OIL TO APPLY TO UN FOR VIETNAM CDM PROJECT APPROVAL Nov 22, 2005 TOKYO - Nippon Oil Corp. (TSE:5001) will apply to a United Nations entity as early as this month for approval of a Vietnamese greenhouse gas emission reduction project based on the Clean Development Mechanism (CDM) of the Kyoto Protocol. In CDM projects, businesses and others in developed countries can set up greenhouse gas emission reduction projects in developing countries and use the savings to offset their own emissions. VIETNAM GOVT MAY REDUCE RETAIL PETROL PRICES NOV 22, 2005 HANOI - The Vietnam's Finance Minister Nguyen Sinh Hung on Nov. 19 announced the possibility of reducing the retail price of petrol in the local market once crude oil prices in the world market decline to US$55 per barrel. "If the price of crude oil in the world market

goes down to the level of US$55 per barrel, the Finance Ministry will reduce the retail price of petrol," the Minister was quoted by Lao Dong (Labour) newspaper. VIETNAM CONSIDERS LOWERING PETROL PRICES NOV 23, 2005 HANOI - Vietnam will reduce retail petrol prices if world crude oil prices decrease to US$55 per barrel in a move to ease the financial burden on consumers, Minister of Finance Nguyen Sinh Hung said. Over the past three months, world oil prices have fallen from nearly US$79 a barrel to US$56, but local petrol prices still stand at about VND10,000 (US$0.63) per litre, a record high set in early August in response to record world oil prices at the time. VIETNAM GOVT CUTS RETAIL PETROL PRICES TO AID CONSUMERS Nov 24, 2005 HANOI - The government has officially decided to reduce its retail petrol prices by VND500 (3 US cents) per litre despite increasing oil prices in the world market. Under a decision signed by Deputy Trade Minister Phan The Rue on Monday evening, the price of an A92 litre of gasoline was cut to VND9,500, while the price for a litre of A90 and A83 stood at VND9,300 and VND9,100, respectively. VIETNAM'S CA MAU POWER PLANT SET HIGHER CAPACITY TARGET Nov 24, 2005 HANOI - Prime Minister Phan Van Khai has decided that the capacity of the future Ca Mau Electricity Plant in the southernmost Ca Mau province should be raised from 750MW to 1,440MW to ensure sufficient supply. And Deputy Prime Minister Nguyen Tan Dung has instructed Petro Vietnam and Electricity of Vietnam to plan and build a transmission network for the plant by the end of 2007. VIETNAMESE BANKS OFFER US$10 MLN LOAN FOR BAO LAM HYDRO PROJECT Nov 24, 2005 HANOI - Three State-owned banks on November 22 signed a contract to offer a syndicated loan worth VND169 billion (US$10.5 million) for a hydropower project in Bao Lam District of Lam Dong Province. The Industrial and Commercial Bank will lend VND84.5 billion, the Bank for Foreign Trade, VND59.15 billion, and the Bank for Agriculture and Rural Development, VND25.35 billion. The loan term for the project, signed with the Southern Hydropower JointStock Company, will be 12 years. VIETNAM TO RAISE POWER CHARGES TO AT LEAST 7.0 USCENTS/KWH Nov 28, 2005 HANOI - Losses of almost VND2.8 trillion or US$175 million this year due to power subsidies have pushed the Electricity of Viet Nam (EVN) to increase retail charges to at least 7.0 US cents/kWh. This was confirmed by Minister of Industry Hoang Trung Hai at a National Assembly hearing on November 25. He said the rise should have been applicable from July 1, 2005 as decided by the government in 2005 but economic difficulties such as natural disasters and bird flu outbreaks have delayed the process. ELECTRICITY OF VIETNAM BEGINS WORK ON NEW HYDROELECTRIC PLANT Nov 29, 2005 HANOI - Electricity of Vietnam (EVN) began construction on the An Khe-Kanak Hydroelectric Power Plant in the Tay Nguyen (Central Highlands) province of Gia Lai on November 26. The project, with a total capacity of 173MW, is expected to produce 685 million kWh annually, bringing in a turnover of VND450 billion (US$29 million) per year.

WORK STARTS ON VIETNAM'S FIRST OIL REFINERY NOV 29, 2005 HANOI - Vietnam's Deputy Prime Minister Nguyen Tan Dung broke ground on Nov. 28 on the country's first oil refinery in the central coastal province of Quang Ngai. Covering 338 ha of land and 471 ha of water in Quang Ngai province's Binh Son district, the refinery is set to begin operations in 2009. The refinery is expected to process 6.5 million tonnes of crude oil per year at 148,000 barrels of crude oil per day. WORK BEGINS ON THERMO-ELECTRIC POWER PLANT IN VIETNAM Nov 30, 2005 HANOI - Construction of a coal-fuelled power plant began in northern Bac Giang province on November 29. Deputy Prime Minister Pham Gia Khiem and Chinese Ambassador to Vietnam Qi Jianguo were among those present at the ground-breaking ceremony. IMPORT TAX ON PETROL DOUBLED IN VIETNAM DEC 2, 2005 HANOI - Vietnam's Deputy Finance Minister Truong Chi Trung on November 30 signed a decision to double the import duty imposed on gasoline, from 5 to 10 per cent. The new import duty will become effective tomorrow. This is the second time the Ministry of Finance has increased import duty within nearly a month. The ministry on November 30 increased import duty on gasoline from zero to 5 per cent. VIETNAM INVESTS IN POWER PLANT IN LAOS Dec 7, 2005 HANOI - Vietnam has invested US$273 million in building a hydro-electric power plant in Laos, registering the largest overseas investment project, according to the Department for Overseas Investment. Construction of the hydro-electric power plant, Secaman 3, officially started in early December by the Vietnam-Laos Joint Stock Electricity Investment and Development Company. The company comprises six Vietnamese leading businesses, including the Electricity of Vietnam and the Song Da Corporation. BIGGEST VIETNAMESE-INVESTED PROJECT GOES TO LAOS People's Daily. 6 December 2005 (Source: Xinhua http://english.people.com.cn/200512/06/eng20051206_225996.html) Vietnam has licensed a local company to build a power plant with investment of 273.1 million US dollars in Laos, the biggest Vietnamese-backed project abroad, a local investment agency told Xinhua Tuesday. "On Nov. 30, the Ministry of Planning and Investment licensed the Vietnam-Laos Investment and Development Joint Stock Company to construct a hydroelectric plant with capacity of 250 mw in Sekong province (a Lao southern locality bordering central Vietnam)," said the ministry's Foreign Investment Department. Once completed in 2008, the plant will annually generate 1.5 billion kWh of electricity, serving increasing power demand of both Laos and Vietnam, the department said. The 30-year-old power project will be conducted under the form of BOT (build-operatetransfer). Vietnam has so far this year invested over 367 million dollars abroad, mainly in Laos, Russia, Cambodia and Indonesia, the department said. VIETNAM'S ELECTRICITY SECTOR IN NEED OF PRIVATE INVESTMENT Dec 9, 2005 HANOI - Vietnam's private sector, both domestic and foreign-invested, has been encouraged to pour more money into developing power plants and electricity networks. Addressing the Consultative Group Meeting and the business forum recently held in Ha Noi, Do Huu Hao, Deputy Minister of Industry called on Vietnamese privately-owned enterprises

to pour their investment into 14 projects to build power plants with total capacity of 10,000 MW and expand the national energy grid. VIETNAM BANKS TO PROVIDE US$133 MIN FOR HYDRO POWER PROJECT Dec 9, 2005 HANOI - - Four State-owned commercial banks have pledged to provide around VND2.11 trillion (roughly US$132.9 million) for the Buon Kuop Hydro-electricity plant construction project. The plant, which will be built on the Srepok River in Krong No, Cu Jut, and Krong Ana districts of Dac Lac and Dac Nong provinces, is expected to generate an electricity output of nearly 1.4 billion kWh annually. VIETSOVPETRO PUMPS 150 MILLIONTH TONNE OF CRUDE OIL DEC 9, 2005 HANOI - The Vietnam-Russia oil and gas joint venture, Vietsovpetro, organised a ceremony in Vung Tau city, southern Ba Ria-Vung Tau province on December 8 to welcome its 150 millionth tonne of crude oil and 15 billionth cu.m of gas. The figures include 62 million tonnes of crude oil and 10 billion cu.m of gas exploited in the period of 2000-2005. TOYO KANETSU TO BUILD OIL TANKS FOR VIETNAM'S 1ST REFINERY DEC 13, 2005 TOKYO - Japan's Toyo Kanetsu KK (TSE:6369) has received a 6.4 billion yen (US$53.4 million) order to supply 35 large oil tanks for the first oil refinery in Vietnam. The company's first large-scale order in Vietnam was placed by a consortium consisting of JGC Corp. (TSE:1963), France's Technip group and Spain's Tecnicas Reunidas SA. VIETNAM TO USE ADB LOAN OF US$120 MLN FOR POWER PROJECT Dec 14, 2005 HANOI - The Vietnamese Ministry of Finance will provide a loan sourced from the Asian Development Bank (ADB) for the Electricity of Vietnam Corporation (EVN) to carry out the Northern Transmission Project. Under an agreement signed in Hanoi on Dec. 12, the Ministry will lend EVN US$120 million that it has borrowed from the ADB VIETNAM'S FIRST OIL REFINERY USHERS IN GOLDEN OPPORTUNITY DEC 23, 2005 HANOI - The ground breaking of a US$2.5 billion oil refinery project on Nov. 28 has turned the Dung Quat economic zone into a complex with a number of key industries, including petrochemicals. Stationed in a central coastal province convenient for shipments with investment in infrastructure reaching over VND2.2 trillion (roughly US$137.5 million) so far this year, Dung Quat has become increasingly attractive to investors, who have invested over $1 billion in one project. ADB APPROVES US$434 MLN LOAN FOR VIETNAM Dec 27, 2005 HANOI - The Asian Development Bank (ADB) on Dec. 23 approved a US$434.3 million loan for Vietnam to upgrade its power sector and irrigation systems. Of the total loan, US$360 million will be used to construct, expand and upgrade 500 kV and 220 kV transmission lines and associated substations in the northern part of the country to support planned industrial zones in the area, ADB said in a statement. SIEMENS TO HELP SUPPLY EQUIPMENT FOR VIETNAMESE POWER PLANT Dec 28, 2005 HANOI - A US$212.6 million contract for supplying the main equipment for the 750 MW- Ca Mau 2 Power Plant was signed between the Vietnam Machinery Installation Corporation

(Lilama) and Siemens Aktiengesellschaft (Germany) in Hanoi on December 26. The power plant is part of the colossal US$1.2 billion Ca Mau Gas-Power-Fertiliser Complex in the southern-most province of Ca Mau. OTHERS GREENPEACE SHIP BEGINS ASIA ENERGY TOUR OCT 9, 2005, Agence France Presse Environmental activists Greenpeace sailed into Hong Kong Sunday aboard the organisation's campaign ship, Rainbow Warrior, to promote renewable energy in Asia. The wind-powered schooner berthed in the southern Chinese territory's famous harbour at the start of a 10week tour that will take it to the Philippines and Thailand to spread awareness of wind power and other green energy sources. "Asia is on the climate change front line: the impacts are already here devastating our environment, agriculture, economies and destroying our lives," Greenpeace China campaign director Lo Sze-ping said in a statement. Greenpeace has regularly targeted Hong Kong's two power companies, China Light and Power (CLP) and Hong Kong Electric for using coal in their power stations. The original Rainbow Warrior was bombed in 1985 by the French military while moored in Auckland, New Zealand, following a high-profile protest against nuclear testing in the South Pacific. ENERGY COOPERATION IN THE ASIA REGION OCT 19, 2005, Business and Management Practices Mondaq Business Briefing The Asia Pacific region's major energy-importing economies - Japan, China and the Republic of Korea - share a common interest in reducing their present reliance on energy imports from the Middle East, through diversifying the range of energy resources they consume and by encouraging inward investment to finance the infrastructure projects that will be required to achieve such diversification. The most obvious way to achieve such diversity is to develop closer links with the energy producing states of Russia which have the potential to become major suppliers of energy to consumer markets in the Asia Region. Russia, for its part, is actively looking to expand its energy export potential in Asia, given the relative proximity of its major oil and gas reserves in East Siberia and Sakhalin. There has been some recognition of the importance of energy cooperation in the Asian region. However, very little real progress appears to have been made. By contrast, in other parts of the world, such as in Europe, Southeast Asia, South America, North America, and Africa, power sector cooperation has provided many benefits. Political and Economic Consensus -- To develop a suitable environment both for inward investment and facilitating the creation of a platform for cross-border energy flows the states of North-East Asia need to generate a consensus on three key issues: the desirability of inter-government cooperation in the energy sector a commitment to the development of regional energy markets with transparent regulatory regimes and ready commercial access to international financial markets and a recognition of the criticality of fostering stable market conditions to encourage the flows of international investment capital necessary for substantial production and infrastructure projects. Noncommercial and political risks play a significant role in investment decisions, and in acting together in relation to these key issues, governments of the region can play a major part in reducing such risks thereby fostering confidence that can support major investment decisions by private industry and the financial community. The more that these mechanisms for risk reduction are legally binding - and reinforced by access to international arbitration in case of disputes - the greater the impact on investor confidence. Solutions -- In Europe the need for regional co-operation in the energy sector to encourage energy diversity and security was well recognised and positive steps were taken following the end of the cold war to promote more transparent and competitive energy markets, in particular relating to the reliability of cross-border flows between producer countries and consumer countries. The Energy sector in North-East Asia, whilst not identical, is in a remarkably similar position to

the Europe of the late 1980's and early 1990's both in terms of the need to encourage diversity and foster energy security whilst finding sufficient funding to finance the necessary infrastructure development. It is also looking in the same direction to resolve some of these problems - towards the states of the former Soviet Union. The Energy Charter Treaty ("ECT") was one of the solutions adopted by Europe to serve its energy needs and has been signed by 51 countries (although some have only ratified in part) including producer, transit and consumer states across Europe and Asia. It has since grown to encompass parts of Asia and is perhaps the best available model for a multilateral legal framework in Asia for the protection of investments and the encouragement of development in the energy sector. A further benefit is that its provisions are supported by access to binding international arbitration. The policy and effect of the ECT is clearly set out in Article 2 of the treaty. Its aim is to establish a legal framework to promote long term co-operation in the energy field and to ensure an open and non-discriminatory energy market between the contracting parties. The 51 states (and the EU) who have signed or acceded to the ECT are also members of the Energy Charter Conference, the independent inter-governmental organization that serves as the ECT's governing body. Among them are: Australia, Japan, Mongolia, the states of Central Asia (Kazakhstan etc) and Russia. By subscribing to the ECT, these governments have conveyed a positive economic and commercial message to potential investors, underlining their commitment to observe the principles of openness, transparency and non-discrimination in energy markets. This message alone can foster significant foreign investment interest in a state's energy sector. The ECT focuses on five key areas : (i) Protection of Foreign Energy Investments -- The ECT provides multilateral investment protection agreements in the energy sector and is based on the fundamental anti-discriminatory principle of extending national treatment, or most-favoured nation treatment, whichever is more favourable, to energy sector investors from other signatory states. Important provisions include protection in cases of expropriation, preservation of contracts with governments and the free transfer of funds relating to investments. (ii) Free Trade In Energy Materials, Energy Products and Energy-Related Equipment -- The ECT applies World Trade Organisation (WTO) rules to energy trade among the Treaty's signatories, even if they are not members of WTO. The issues which have come up concern mainly restrictions of electricity imports from countries which are members of the ECT, but not of the WTO as yet (for example, Russia, Ukraine). Such import restrictions have to be compatible with GATT rules which in the main prohibit import restrictions based on production processes (for example, nuclear power or power produced under sub-standard environmental rules) but not on intrinsic qualities of the product. (iii) Cross-Border Energy Transit and the ECT Transit Protocol -- These provisions encourage the facilitation of energy transit by States through pipelines and grids and provide safeguards against restrictions on new transit capacity. There is also a "conciliation" procedure to help facilitate the interim settlement of transit disputes (preventing the disruption of transit). (iv) Dispute Resolution -- The ECT provides for binding international arbitration in the case of disputes between governments, or between an investor and a host government. Where the ECT has been ratified by a member country, case law has shown that the arbitration provisions can provide an effective remedy for private investors in dispute with host states. (v) The ECT Protocol on Energy Efficiency and the Environment -- In addition to the ECT's provisions on mitigation of the environmental impact of the energy cycle, a separate legal instrument has been adopted, called the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects, which requires participating states to formulate and implement clear strategies and programmes for improving energy efficiency. The Protocol is largely a manifesto rather than a set of legally binding and enforceable obligations it encompasses good environmental practices tempered by considerations of commercial feasibility. Extension of ECT to Asia -- In the Asian region, Australia, Japan and Russia, as well as Mongolia and the states of Central Asia, are ECT signatories and are active participants in the work of the Energy Charter Conference. Efforts are continuing to strengthen the "Asian

dimension" of the Charter process. In December 2001, the Energy Charter Conference officially granted observer status to the People's Republic of China. The Energy Charter process may hold special potential for China, which stands to play an increasingly important role in international energy cooperation in Eurasia over the coming decades, not only as a market for energy exports but also as an investor in energy projects, in particular in neighbouring states. The countries of Asia Pacific region might instead prefer to see the development of an equivalent or similar treaty applying to the energy sector of a particular region. However, the ECT has the practical advantage of being able to provide a readymade package. Some steps have been taken to develop a similar multilateral model in Northeast Asia, but at present China has not apparently demonstrated great enthusiasm. Although the ECT is an excellent platform from which to build closer energy cooperation in Asia, there are potentially some drawbacks. The more such countries eventually accede, the more the balance between importing and exporting countries would have to shift away from the original energy-import and EU-energy security focus. Nevertheless, the countries of North- East Asia including China will undoubtedly benefit from a system that encourages discussion between consumers and other producers fosters a co-operative approach to resolving energy transit issues and promotes the resolution of trade and investment disputes through internationally recognised procedural and legal mechanisms. Similar considerations apply to other Asian countries. They would all benefit from an institutionalised system for investment, trade and transit promotion. They have so far been unable, in the APEC or ASEAN context, to create anything comparable to the ECT. A potential stumbling block to further Asian involvement (but also the ECT's greatest strength) is the accountability of members for investment disputes resulting from Article 26 investor-state arbitrations. After a slow start, Article 26 investment arbitration appears to now be more widely accepted (and pursued). The first case - Nykomb v Latvia - dealt with a situation that will be familiar to private energy investors - the problems faced by a small (in this case Swedish) company in protecting its capital investment when in dispute with a large (Latvian) state concern. This case (and others) provide a good example of the dispute resolution potential inherent in the ECT. However, investor protection is only one of a number of positive benefits that the ECT could bring to the Asia energy market. The potential environmental benefits of China's membership of the ECT could be significant bearing in mind the huge demands its economic growth is placing on the world's natural resources. The real challenge for Asian governments is to recognise the potential advantages to the energy sector that the ECT or a similar Asian model would provide in resolving the region's pressing energy problems. -- Mark Raymont, Pinsent Masons, Dashwood House, London www.pinsentmasons.com


				
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