Shizuoka Bank Ltd Financial Statements ASIA POWER UPDATES September December

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Shizuoka Bank Ltd Financial Statements ASIA POWER UPDATES September December Powered By Docstoc
					                               ASIA POWER UPDATES
                               (September -December 2005)




Afghanistan                                     p.   1
Australia                                       p.   5
Bangladesh                                      p.   28
Central Asia                                    p.   44
China                                           p.   59
India                                           p.   124
Indonesia                                       p.   166
Iran                                            p.   194
Japan                                           p.   199
Laos                                            p.   215
Malaysia                                        p.   217
Nepal                                           p.   220
Pacific                                         p.   223
Pakistan                                        p.   225
Philippines                                     p.   239
Singapore                                       p.   252
South Korea                                     p.   253
Sri Lanka                                       p.   271
Taiwan                                          p.   274
Thailand                                        p.   276
Vietnam                                         p.   287
Others                                          p.   297





 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 gas-
rich 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 gas-
export 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 long-
term 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 Sydney-
based 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 head-
to-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.financialexpress-
bd.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 coal-
fired 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 bio-
energy 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 June-
July 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 north-
south 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-Ishwardi-
Bheramara, 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 gas-
rich 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 state-
owned 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 mid-
September, 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, Embamu-
naigaz 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 Canadian-
registered 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. Calgary-
based 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 well-
targeted 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 1000-
km 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 gas-
rich 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 gas-
export 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 650-
megawatt 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 hydro-
power 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: Western-
developed 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 cross-
border 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 co-
operation, 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 co-
operation, 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 800,000-
ton 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, high-
pressure 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 Canadian-
registered 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 Datong-
Qinhuangdao 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 environmentally-
friendly 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. Wind-
driven 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 State-
owned 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 energy-
consuming 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 Five-
Year 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 1000-
km 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 10,000-
ton 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 oil-
thirsty 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 (2006-
2010), 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-Russia-
Kazakhstan 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, secretary-
general 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 2010-
2015 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 over-
heated 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 coal-
to-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 vice-
premier 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 energy-
guzzling 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 Nejad-
Hosseinian, 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 Indo-
Iran 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 non-
disclosure 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 India-
Pakistan 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 coal-
fired 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 Inter-
Governmental 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 five-
year 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 Sakhalin-
I 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 Indo-
Spanish 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 production-
sharing 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 power-
generation 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 2010-
end. 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 Ambani-
owned 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 publicly-
listed 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 state-
run 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 high-
sulfur 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 state-
owned 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 1,000-
MGW 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 India-
Pakistan 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 gas-
rich 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 2010-
end. 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 Nejad-
Hosseinian, 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 limit-
down.

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 high-
pressure 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 electricity-
producing 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 nearest-
month 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 front-
month 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 350-
Megawatt 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 state-
owned 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 sub-
continent, 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 Indo-
Iran 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, co-
sponsored 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 India-
Pakistan 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 gas-
rich 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 3,000-
mw 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 gas-
rich 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 gas-
export 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 2010-
end. 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 low-
cost 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 P1.1-
billion (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-2005-
09.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 Santos-
Tacurong 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 open-
access 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 16-
member 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 short-
term 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 state-
run 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: Western-
developed 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 energy-
saving 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 July-
September 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 oil-
thirsty 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 state-
run 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 power-
generation 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 set-
up 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 al-
Kamal, 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 pre-
marketing 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 350-
Megawatt 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 bio-
diesel 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 co-
invest 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 hydro-
electric 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 gas-
fuelled 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 State-
owned 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 Joint-
Stock 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