"Lel Bruce Peto" Oil sector 90's chronology informing..1999

"Lel Bruce Peto" Oil sector 90's chronology informing..1999.
Oil & Gas Chronology :  The 1990’s


1999


January 1 

British Petroleum Company and Amoco Corporation complete their $53 billion 
merger. Chicago-based Amoco is the United States' fifth-largest oil 
company with roughly 9,300 gasoline stations. London-based British 
Petroleum, the world's third largest oil company, sells its products 
through a network of about 17,900 stations.

February 4 

Italy's ENI SpA and Russia's RAO Gazprom, the world's largest natural gas 
producer, agree to build a natural gas pipeline from Russia to Turkey at a 
cost of nearly $3 billion. Each project partner will hold a 50 percent 
stake in the project. The proposed pipeline, called the Blue Stream 
project, is expensive by industry standards partly because it would run at 
great depth under the waters of the Black Sea. 

February 10 

U.S. Energy Secretary Bill Richardson visits Saudi Arabia to discuss 
potential U.S. investment in the Kingdom's oil and gas sectors. Following 
his visit, Richardson says the Saudis are primarily interested in foreign 
investment in the natural gas sector and in the oil refining and marketing 
sectors, rather than in the upstream crude oil sector. Secretary 
Richardson's visit comes several months after a September 1998 meeting 
between several U.S. oil companies, Saudi Crown Prince Abdullah and Saudi 
Oil Minister Ali Naimi, in which Abdullah requested proposals from the 
companies on the development of Saudi oil reserves. 

March 23 

In an effort to raise oil prices, which fell sharply in late 1997 and 
stayed low through 1998 and into early 1999, OPEC and non-OPEC countries 
agree to cut oil output by a combined 2.104 million barrels per day, 
effective April 1, 1999, for one year. OPEC members have pledged to cut 
1.716 million barrels per day, while several non-OPEC countries have 
pledged total reductions of 388,000 barrels per day. During 1998, due 
mainly to low oil prices, OPEC crude oil export revenues fell 30 percent 
(to $100 billion) from the previous year.

March 31 

Arco agrees to be acquired by BP Amoco PLC for $26.6 billion in stock. If 
approved, the merger will create the largest oil producer in the United 
States and one of the largest energy companies in the world. The deal 
marks the fourth largest oil company merger since the onset of low oil 
prices in late 1997.

April 5 

Following the arrival in the Netherlands of two Libyan suspects in the 
1988 bombing of Pan American Flight 103 that killed 270 people, United 
Nations sanctions against Libya are suspended. The sanctions, imposed on 
March 31, 1992, initially included a ban on the sale of equipment for 
refining and transporting oil, but excluded oil production equipment. 
Sanctions were then expanded on November 11, 1993, to include a freeze on 
Libya's overseas assets, excluding revenue from oil, natural gas, or 
agricultural products. 

April 15 

The U.S. Department of Energy (DOE) announces that it will begin taking 
oil deliveries within the next few days under its plan to add 28 million 
barrels of oil to the U.S. Government's Strategic Petroleum Reserve (SPR) 
from federal oil royalty payments. In Phase 1 of the plan, the SPR is 
expected to acquire about 43,000 barrels per day over the next 3 months 
from oil companies operating in the Gulf of Mexico. Although about 50 
percent of the oil supplied in Phase 1 will be imported, domestic 
producers would still benefit from the entire acquisition since the oil 
market is international and fungible, according to a DOE official. Under 
Phase 2 of the program, the DOE expects to acquire about 100,000 barrels 
per day of royalty oil over a 6-month period. 
April 17 

An oil pipeline that transports oil from Baku, Azerbaijan, to Suspa, 
Georgia, is officially opened. This is the second pipeline dedicated to 
exporting Caspian Sea oil, but the first built since the Soviet Union 
disbanded in 1991. The other Caspian Sea oil pipeline, which runs through 
the Russian breakaway republic of Chechnya to the Russian port of 
Novorossisk, is often shut down. The new pipeline to Georgia has a 
capacity of 100,000 barrels per day.

April 28 

The U.S. Department of Treasury's Office of Foreign Asset Control (OFAC), 
notifies Mobil that it has turned down Mobil's request for a license to 
swap crude oil it produces in Turkmenistan in exchange for Iranian oil. 
Mobil had hoped to be allowed to ship oil produced in Turkmenistan to 
northern Iranian oil refineries, while Iran, in turn, would provide 
Iranian oil from Iran's Persian Gulf export terminals to Mobil for 
shipment to global markets as payment. OFAC is responsible for enforcing 
U.S. unilateral sanctions against foreign countries. As a result of OFAC's 
denial of a swap arrangement with Iran, Mobil will have to continue 
exporting its Turkmenistan oil production across the Caspian Sea by barge 
to Azerbaijan, where it is then carried by rail or pipeline to Black Sea 
ports. 

May 1 

U.S. President Clinton unveils a plan to apply the same standard for 
tailpipe emissions to cars, light-duty trucks, and most sport utility 
vehicles (SUVs). Based on current nitrogen oxides (NOx) emission levels, 
the proposed plan would result in a 77 percent reduction for cars and a 95 
percent reduction for light-duty trucks and SUVs. The new standards would 
be phased in from the 2004 to 2007 model years. At the same time, the 
Environmental Protection Agency (EPA) proposes a rule that would require 
refiners to reduce gasoline sulfur content from a current average of 
nearly 330 parts per million (ppm) to 30 ppm. The new sulfur standard is 
being proposed in conjunction with the new tailpipe emission proposal 
since sulfur impedes catalytic converter efficiency, thus making it more 
difficult to reduce tailpipe emissions without reducing sulfur content in 
gasoline. Oil industry representatives have vowed to protest the proposed 
rule, claiming that it will cost refiners $3 billion to $6 billion. The 
EPA estimates that the cost of compliance for both the automobile and oil 
industries will be between $3.4 billion and $4.4 billion.

May 10 

The Board of Argentine oil company YPF unanimously approved a $13.4 
billion offer from Repsol, a Spanish company. Repsol, which already owns 
14.99 percent of YPF, made an all cash offer to purchase the remaining 
85.01 percent last month. The Board recommended to all shareholders to 
accept the Repsol offer. Two Argentine provinces, which own about five 
percent of YPF's shares, remain concerned about Repsol's intentions for 
their regions. 

May 12 

The Caspian Pipeline Consortium (CPC) begins construction of a 981-mile 
pipeline that will carry crude oil from the Caspian Sea to the Russian 
port of Novorossisk for export to foreign markets. The pipeline's planned 
capacity is about 1.3 million barrels per day, and the CPC is expecting to 
load the first tanker in mid-2001. 

May 17 

The Environmental Protection Agency (EPA) states that it will not change 
its "Tier Two Plan" to cut gasoline sulfur content and tailpipe emissions, 
in response to a recent appellate court ruling that the EPA had 
overstepped its mandate in implementing some provisions of the Clean Air 
Act. Beginning in 2004, the Tier Two Plan would require refiners to cut 
gasoline sulfur content to an average of 30 parts per million, down more 
than 90 percent from the current national average. 

May 27 

Exxon and Mobil shareholders approve an $81.2 billion merger, in which 
Exxon will issue 1.32 shares for each share of Mobil's approximately 780.2 
million shares outstanding. The merger still must receive regulatory 
approval from the U.S. government and the European Union. The chairmen of 
both companies state that they expect regulatory approvals to be obtained 
by the end of the third quarter of 1999. 

June 1 

Sudan starts pumping oil through its pipeline linking the Heglig oil field 
in Western Kordofan province to Port Sudan on the Red Sea. The pipeline 
has a capacity of 250,000 barrels per day, and was financed by a 
consortium of Chinese, Malaysian, Canadian, and Sudanese firms. 

August 9 

The United States Department of Commerce dismisses a petition filed by 
Save Domestic Oil, Inc. under anti-dumping statutes. The petition alleged 
that Saudi Arabia, Venezuela, Mexico, and Iraq had sold crude oil to the 
United States at artificially low prices. The decision was based on the 
Department of Commerce's determination that "opposition to the petitions 
exceeded support." Majority support is defined as petitioner 
representation of at least 25 percent of the domestic industry and support 
from at least 50 percent of the industry expressing an opinion. Support 
from a majority in the affected industry is necessary under the law for 
Commerce to commence a formal investigation of an anti-dumping complaint. 

September 14 

French oil companies Total Fina and Elf Aquitaine agree to merge, after a 
lengthy takeover battle, in a deal which will form the world's fourth 
largest oil company. The deal will give Elf Aquitaine shareholders 19 
shares of Total Fina for every 13 shares of Elf Aquitaine. According to 
Total Fina's management, the merger will result in annual cost savings for 
the combined firm of $1.56 billion. 

September 22 

The Organization of Petroleum Exporting Countries (OPEC), at a meeting of 
its member states' oil ministers, decides to maintain current production 
cuts until March 2000, despite the fact the crude oil prices have doubled 
since early 1999. In another development, OPEC announces that its current 
Secretary General, Nigerian Rilwanu Lukman, will stay in office until 
March 2000. The announcement follows a vigorously contested race to 
succeed Lukman in the post, in which OPEC's three largest members, Saudi 
Arabia, Iran, and Iraq, had fielded candidates. 

September 28 

Iranian Oil Minister Bijan Zanganeh announces that the National Iranian 
Oil Company has discovered a new oilfield, Azadegan, with 26 billion 
barrels of crude oil in Khuzestan province. The discovery is the largest 
new find in Iran in the last three decades. Zanganeh expects the field to 
produce between 300,000 and 400,000 barrels per day of crude oil three to 
four years after development begins next year. 

September 30 

Japan suffers a serious nuclear accident at a uranium processing plant in 
Tokaimura, in which radiation is released after an apparent uncontrolled 
nuclear chain reaction. Three workers at the plant, operated by JCO, Inc., 
are injured. Japanese authorities issue a warning instructing 310,000 
people in neighboring communities to stay indoors. 

October 4 

The United Nations Security Council agrees to raise the monetary ceiling 
on Iraqi oil sales to $8.3 billion from $5.26 billion, guaranteeing the 
continuation of Iraqi production until the November 20 end date for the 
current six month extension of the "oil-for-food" program. The move is a 
one time adjustment, and does not bind the Security Council to continue a 
higher ceiling if the program is renewed for another six month term. The 
increase reflects the difference between previous monetary ceilings and 
actual Iraqi sales during previous phases of the program.

November 18 

The heads of state of Turkey, Azerbaijan, and Georgia sign an agreement to 
build a pipeline for the export of crude oil from the Caspian Basin. The 
1,080-mile pipeline will begin at the Azerbaijani capital, Baku, and run 
through Georgia and Turkey to the Turkish port of Ceyhan. The project is 
expected to cost $2.4 billion, and the government of Turkey has offered 
guarantees that the cost of the Turkish segment of the pipeline will not 
exceed $1.4 billion. The signing ceremony took place during a visit to 
Istanbul by U.S. President Clinton for a summit of the Organization for 
Cooperation and Security in Europe (OSCE). 

November 30 

The Federal Trade Commission (FTC) grants approval for the proposed merger 
between oil giants Exxon and Mobil. The $80 billion merger was approved by 
the FTC after the firms agreed to the largest divestiture of assets ever 
involved in a merger. The companies will sell over 2,400 retail outlets, 
mostly in the Northeast, Texas, and California, and a refinery in 
California. 

December 10 

The California Air Resources Board approves a regulatory change that will 
halve the amount of sulfur allowed in gasoline sold in California from 30 
parts per million to 15 parts per million, starting in 2003. The 
California limit would be half the national limit under a new rule 
proposed by the Environmental Protection Agency. The current federal 
sulfur limit for gasoline is 330 parts per million. 

December 21 

The Export-Import Bank drops a proposed $500 million loan to Russia's 
Tyumen Oil after Secretary of State Madeleine Albright exercises her 
statutory authority to block the transaction. The loan had been 
controversial in part because of Tyumen Oil's dispute with BP Amoco over 
the bankruptcy of Russian oil firm Sidanko, in which BP Amoco owns a major 
stake. BP Amoco and Tyumen Oil later settled the dispute on December 23. 

December 31 

The Panama Canal Zone reverts to Panamanian sovereignty at noon, after 
nearly a century of American control. More than a half-million barrels of 
crude oil and petroleum products transit the Canal each day. 

December 31 

After nearly two years of construction, ExxonMobil completes the Sable 
Offshore Energy Project, a $2 billion project to bring natural gas from 
fields offshore Nova Scotia to the northeastern United States. The fields 
are estimated to contain 3.5 trillion cubic feet of natural gas.

December 31 

Russian President Boris Yeltsin makes a surprise announcement that he is 
resigning immediately. Vladimir Putin becomes Acting President, and 
presidential elections will be held within 90 days, with a date to be set 
by the State Duma. Russia is the largest exporter of energy in the world.

Received on Saturday, 15 February 2003 18:42:20 UTC