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Last Updated: March 15, 2017
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Last Week in World Oil:

Prices

  • With US drilling rising and crude inventories soaring, WTI crude oil has slipped underneath the US$50/b psychological barrier, with Brent not far behind at US$51/b. Some OPEC producers already calling for an extension of the six-month output freeze, but all that will do is stabilise prices.

Upstream & Midstream

  • Shell will be withdrawing almost entirely from Canadian oil sands, an acknowledgement that expensive projects are non-starters in the current price environment. It will sell its existing and undeveloped oil sands interest to Canadian Natural for US$8.5 billion – going a long way to reducing its debt from acquiring BG – and will also reduce its share in the Athabasca Oil Sand Project from 60% to 10%. The net gain for Shell will be US$7.25 billion, as it has also purchased half of Marathon Oil Canada.
  • In other Shell news, the supermajor is reluctant to reopen the Trans Forcados pipeline in Nigeria, leaving the 400 kb/d Forcados export terminal idle, fearing new attacks by militants. Though attacks by the Niger Delta Avengers have lessened, Shell is demanding additional protection from a government desperate to bring nearly 500 kb/d of offline capacity back. The pipeline was bombed twice last year, the second time just 48 hours after seven months of repairs were completed.
  • Eight new oil rigs were activated last week, joining five new gas rigs to bring the US active rig count to 768, the eight consecutive weekly rise.

Downstream

  • The liberalisation of the Mexican fuel retail industry, breaking the Pemex monopoly and introducing price reforms, has downstream companies buzzing. The biggest of these is BP, which is planning to open up some 1,500 service stations over the next five years, another sign that the British supermajor may be warming back to the idea of downstream retailing after years of focusing on upstream. And it isn’t the only big player interested; trader Glencore is also mulling a move into Mexican retail, investing over US$200 million in a 15-year supply deal.
  • Austria’s OMV is selling its Turkish fuel supply and distribution unit Petro Ofisi to Vitol for US$1.45 billion, as it moves to shed non-core assets, particularly in the low-margin Turkish market. Current political tensions between Turkey and the EU may have also contributed to the sale.

Natural Gas and LNG

  • Russia’s Gazprom has announced a round of delays for its LNG projects, pushing the Sakhalin-2 project from 2021 to 2023/4, and the Baltic LNG plant in Leningrad from 2021 to 2022/3. The delays could leave Russia behind Canada, Australia and the US in the race to supply LNG-hungry Asia, and behind its target to triple its current market share by 2035.

Corporate

  • As Saudi Aramco tidies up its vast holdings – including its split with Shell over the Motiva Enterprises venture in the US – fund managers and institutional investors are expecting it to achieve a market capitalisation of up to US$1.5 trillion in its planned IPO, which would instantly make it the most valuable public company in the world.


Last Week in Asian Oil:

Upstream & Midstream

  • The sale of Chevron’s Bangladesh natural gas assets may be attracting  friction between the government and China. After a request to hike gas prices failed in 2015, the US supermajor put its assets – which account for roughly 60% of Bangladesh’s production from the onshore Bibiyana, Jalalabad and Moulavi Bazar fields – up for sale and cancelled a planned US$650 million investment. State-owned Petrobangla has first refusal, but China’s Zenhua Oil is also in the running, pricing the assets at about US$2 billion. Zhenhua is an arm of China’s NORINCO, a state-run defence industry player, and is one of the minor energy players stepping out of the Sinopec and PetroChina shadows to assert China’s influence globally.
  • Myanmar has given the go-ahead on the MD-7 project, which will see French major Total purchase a 50% interest in the offshore deepwater block from Thailand’s PTTEP. PTTEP has traditionally been the major upstream player in Myanmar, a holdover from the days when the country was considered a pariah nation, and has an on-going collaboration with Total that stretches back 30 years.  
  • Spain’s Repsol sold its 50% interest in the Indonesian Ogan Komering PSC (Production Sharing Contract) to local player Jadestone Energy. The tiny South Sumatran block, producing an average of 3 kb/d, is seen by Jadestone as key in expanding its Indonesia presence. Pertamina retains the other 50%, with Repsol seemingly more interested in the discovery it made in Alaska’s North Slope, the largest conventional onshore discovery in the US for over 30 years.

Downstream & Shipping

  • Two months after a setting a monthly crude import record, February 2017 crude imports reached China’s second-highest level, despite the shorter month. Volumes entering China rose to 8.286 mmb/d, with the demand from independent teapots driving the rise. Imports should ease over the next few months, as some major refineries enter maintenance periods, but the strong teapot demand may keep imports high.

Natural Gas & LNG

  • Malaysia’s Petronas has inked a new LNG deal, the third signed so far this year with the client once again being Japanese. The contract will send some 130,000 tons of LNG per year to the Hokkaido Electric Power Company over a 10 years, supplied from the Bintulu LNG complex.
  • BP’s Tangguh Train 2 in Indonesia’s West Papua will be shut down for nearly two months beginning early April. The routine maintenance should not affect the Tangguh LNG’s production plan for the year, which include 63 uncommitted cargoes. Tangguh Train 1 will remain operational.

Corporate

  • There might be a new name in China to watch. With ambitions of becoming the‘second Sinopec’, private Chinese conglomerate CEFC China Energy has already bought a 4% stake in an Abu Dhabi oilfield for US$900 million and has approached several large independent teapots in Shandong with an idea to acquire its first domestic refinery operation. It is the first example of a large private firm attempting to break into the ranks of Chinese energy majors, a motivation encouraged by Beijing as it seeks to foster competition in the domestic market. CEFC already owns a refinery in Romania, a network of service stations in Europe and an oilfield in Chad, all acquired on the quiet in just two years.

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The Australian 590 Student Guardian Visa Process In A Nutshell

Student guardian visa subclass 590 allows you to stay in Australia as a guardian or custodian or relative of an overseas student who is pursuing an education course in Australia. With 590 student guardian visa, You can stay with your child to take care of him/her in Australia until the course complete. Your child age must below then 18th years old before applying for a student guardian visa 590. If you're a relative then you can stay with the child by submitting written permission of a child’s caretakers like a guardian or grandparents. If your child is older then eighteen years then to apply for visa subclass 590 you need to show that you have special emergency circumstances. You can apply for a 590 student guardian visa outside from Australia and acquire enrollment in alternative courses up to three months with a 590 visa. You will be authorized to take care more then one child if you have. You can do the other study or coach just for 3 months with this Student Guardian Visa Subclass 590

Step By Step Process About 590 Visa

1.Before Applying for Visa

Meet Eligibility Criteria

    • You must be a parent or grandparents or relative of a non-Australian child who is below 18th of age.

    • If you want to apply from inside of Australia then you need to hold a substantive visa except for domestic worker, temporary work visa, transit visa, visitor visa, etc.

    • If your another child who is below 18th and not coming to Australia with you then you need to give evidence that you have made welfare arrangement for the child.

    • You have to account for your all healthcare expenses so make sure that medical insurance can only reduce your expenses.

    • Your past immigration history must be credible like you must not have any visa cancellation history.

    • Your intention should be genuine at the time of applying for student guardian visa 590 and it should be not against Australian culture and policies.

    • If your family members are also applying with you then they also need to meet health policies of the Australian government

    • Only a parent or grandparents or custodian or step parents of an overseas student visa 500 holder can apply for this student guardian visa subclass 590.

    • If parents are not present due to any reason for looking after the visa subclass 500 holder student then any relative can apply for this 590 student guardian visa. 

    • You must be a guardian of an international student who must be below 18th of age except for exceptional circumstances.

    • You have to give assurance to immigration authorities that you will be able to provide welfare.

    • Your age must be above 21 years old before going to apply for a student guardian visa 590.

    • You have to pay back any type of debt to the Australian government if you have.

    • If you have another child aged 6 years old then you can bring him/her to Australia but if your child if older then 6           years then you need to show emergency condition to bring him/her to Australia.

  Collect Documents

    •Provide character certificate and other national identities.

    •Submit bank documents and salary slips to prove that you will be enough capable to give welfare to the student.

    •Provide guardianship documents to prove your credibility to that child.

    •Translate your non-English documents into English.

    •Submit legal student guardianship form.

    •Provide dependent under 6 documents if you bring your child who is under 6 years of age.

2. Processing Time And Cost Of This Visa

Visa subclass 590 cost starts from AUD 560. This visa 590 may proceed in 2 to 4 months. But in case you forget to submit any documents then you processing time of visa can be increased. Your visa application processing time can be increased if you provide incomplete information.

3. Apply For The Visa

You need to apply online for the 590 student guardian visa 6 weeks before the student’s course starts. At the time applying for the visa, you have to prove that you are genuine and legal applicant by submitting legal documents. If you submit illegal information to immigration authorities then they have the authority to cancel your visa application immediately. You and your relative which is listed in visa application will not able to get a visa for the next 10 years in case of any fraud by you. You should contact an experienced Immigration Agent Adelaide.

4. Conditions After You Have Applied For The Visa

    • You are not allowed to do any type of work in Australia.

    • You can study only for 3 months.

    • With visa subclass 590 you can’t apply for another visa

    • At the time of leaving Australia, you must have brought the student to your country.

    • If you have another child who is below 6th years of age then you can bring him/her to Australia.

Get The Direction To Migration Agent Adelaide - ISA Migrations and Education Consultants.



August, 21 2019
TODAY IN ENERGY: The U.S. leads global petroleum and natural gas production with record growth in 2018

U.S. petroleum and natural gas production increased by 16% and by 12%, respectively, in 2018, and these totals combined established a new production record. The United States surpassed Russia in 2011 to become the world's largest producer of natural gas and surpassed Saudi Arabia in 2018 to become the world's largest producer of petroleum. Last year’s increase in the United States was one of the largest absolute petroleum and natural gas production increases from a single country in history.

For the United States and Russia, petroleum and natural gas production is almost evenly split; Saudi Arabia's production heavily favors petroleum. Petroleum production is composed of several types of liquid fuels, including crude oil and lease condensate, natural gas plant liquids (NGPLs), and bitumen. The United States produced 28.7 quadrillion British thermal units (quads) of petroleum in 2018, which was composed of 80% crude oil and condensate and 20% NGPLs.

estimated petroleum and natural gas production in selected countries

Source: U.S. Energy Information Administration, based on International Energy Statistics
Note: Petroleum includes crude oil, condensate, and natural gas plant liquids.

U.S. crude oil production increased by 17% in 2018, setting a new record of nearly 11.0 million barrels per day (b/d), equivalent to 22.8 quadrillion British thermal units (Btu) in energy terms. Production in the Permian region of western Texas and eastern New Mexico contributed to most of the growth in U.S. crude oil production. The United States also produced 4.3 million b/d of NGPLs in 2018, equivalent to 5.8 quadrillion Btu. U.S. NGPL production has more than doubled since 2008, when the market for NGPLs began to expand.

U.S. dry natural gas production increased by 12% in 2018 to 28.5 billion cubic feet per day (Bcf/d), or 31.5 quadrillion Btu, reaching a new record high for the second year in a row. Ongoing growth in liquefied natural gas export capacity and the expanded ability to reach new markets have supported increases in U.S. natural gas production.

Russia’s crude oil and natural gas production also reached record levels in 2018, encouraged by increasing global demand. Russia exports most of the crude oil that it produces to European countries and to China. Since 2016, nearly 60% of Russia’s crude oil exports have gone to European member countries in the Organization for Economic Cooperation and Development (OECD). Russia’s crude oil is also an important source of supply to China and neighboring countries.

Russia’s natural gas production increased by 7% in 2018, which exceeded the growth in exports. The Yamal liquefied natural gas (LNG) export facility, which loaded its first cargo in December 2017, can liquefy more than 16 million tons of natural gas annually and accounts for almost all of the recent growth in Russia’s LNG exports. Since 2000, more than 80% of Russia’s natural gas exports have been sent to Europe.

Saudi Arabia’s annual average crude oil production increased slightly in 2018, but it remained lower than in 2016, when Saudi Arabia’s crude oil output reached a record high. Saudi Arabia’s crude oil production reached an all-time monthly high in November 2018 before the December 2018 agreement by the Organization of the Petroleum Exporting Countries (OPEC) to extend production cuts.

In addition to exporting and refining crude oil, Saudi Arabia consumes crude oil directly for electricity generation, which makes Saudi Arabian crude oil consumption highest in the summer when electricity demand for space cooling is relatively high. Since 2016, Saudi Arabia’s direct crude oil burn for electric power generation has decreased for a number of reasons, including demand reductions from a partial withdraw of power subsidies, greater use of residual fuel oil, and increased availability of domestic natural gas.

Crude oil exports account for about 60% of Saudi Arabia’s total economic output. China, along with Japan, South Korea, Taiwan, and the United States remain critical markets for Saudi Arabia’s petroleum exports.

August, 21 2019
Your Weekly Update: 12 - 16 August 2019

Market Watch 

Headline crude prices for the week beginning 12 August 2019 – Brent: US$58/b; WTI: US$54/b

  • Saudi Arabia’s overtures to further stabilise prices was met with a largely positive response by the market, allowing crude prices to claw back some ground after being hammered by demand concerns
  • Saudi officials reportedly called other members in the OPEC and OPEC+ producer clubs to discuss options on how to stem the recent rout in prices, with an anonymous official quoted as saying that it ‘would not tolerate continued price weakness’
  • Reports suggest that Saudi Arabia plans to keep its oil exports at below 7 mmb/d in September according to sales allocations, which was seen as a stabilising factor in crude price trends
  • This came after crude prices fell as the US-China trade war entered a new front, causing weakness in the Chinese Yuan, although President Trump has floated the idea of delaying the new round of tariffs beyond the current implementation timeline of September 1
  • Crude had also fallen in response to a slide in American crude oil stockpiles and a receding level of tensions in the Persian Gulf
  • In a new report, the International Energy Agency said that the outlook for global oil demand is ‘fragile’ on signs of an economic slowdown; there is also concern that China will target US crude if the US moves ahead with its tariff plan
  • The US active rig count lost another 8 rigs – 6 oil and 2 gas – the sixth consecutive weekly loss that brought the total number of active rigs to 934
  • Demand fears will continue to haunt the market, which will not be offset so easily of Saudi-led efforts to limit production; as a result, crude prices will trade rangebound with a negative slant in the US$56-58/b range for Brent and US$52-54/b for WTI


Headlines of the week

Upstream

  • Nearly all Anadarko shareholders have approved the Occidental Petroleum deal, completing the controversial takeover bid despite investor Carl Icahn’s attempts to derail the purchase
  • Crude oil inventories in Western Canada have fallen by 2.75 million barrels m-o-m to its lowest level since November 2017, as the production limits in Alberta appear to be doing their job in limiting a supply glut while output curbs are slowly being loosened on the arrival of more rail and pipeline capacity
  • Mid-sized Colorado players PDC Energy and SRC Energy – both active in the Denver-Julesburg Basin – are reportedly in discussion to merge their operations
  • Pemex has been granted approval by the National Hydrocarbon Commission to invest US$10 billion over 25 years to develop onshore and offshore exploration opportunities in Mexico
  • Qatar Investment Authority has acquired a ‘significant stake’ in major Permian player Oryx Midstream Services from Stonepeak Infrastructure Partners for some US$550 million, as foreign investment in the basin increases
  • PDVSA and CNPC’s Venezuelan joint venture Sinovensa has announced plans to expand blending capacity – lightening up extra-heavy Orinoco crude to medium-grade Merey – from a current 110,000 b/d to 165,000 b/d
  • BHP has approved an additional US$283 million in funding for the Ruby oil and gas project in Trinidad and Tobago, with first production expected in 2021
  • CNPC, ONGC Videsh and Petronas have reportedly walked away from their onshore acreage in Sudan, blaming unpaid oil dues on production from onshore Blocks 2A and 4 that have already reached more than US$500 million

Midstream/Downstream

  • Expected completion of Nigeria’s huge planned 650 kb/d Dangote refinery has been delayed to the end of 2020, with issues importing steel and equipment cited
  • Saudi Aramco’s US refining arm Motiva announced plans to shut several key units at its 607 kb/d Port Arthur facility in Texas for a 2-month planned maintenance, affecting its 325 kb/d CDU and the naphtha processing plant
  • ADNOC has purchased a 10% stake in global terminal operator VTTI, expanding its terminalling capacity in Asia, Africa and Europe
  • A little-known Chinese contractor Wison Engineering Services has reportedly agreed to refurbish Venezuela’s main refineries in a barter deal for oil produced, in a bid for Venezuela to evade the current US sanctions on its crude exports
  • Swiss downstream player Varo Energy will increase its stake in the 229 kb/d Bayernoil complex in Germany to 55% after purchasing BP’s 10% stake
  • India has raised the projected cost estimate of its giant planned refinery in Maharashtra – a joint venture between Indian state oil firms with Saudi Aramco and ADNOC – to US$60 billion, after farmer protests forced a relocation

Natural Gas/LNG

  • The government of Australia’s New South Wales has given its backing to South Korea’s Epik and its plan to build a new LNG import terminal in Newcastle
  • Kosmos Energy is proposing to build two new LNG facilities to tap into deepwater gas resources offshore Mauritania and Senegal under development
  • In the middle of the Pacific, the French territory of New Caledonia has started work on its Centrale Pays Project, a floating LNG terminal with an accompanying 200-megawatt power plant, with Nouvelle-Caledonia Energie seeking a 15-year LNG sales contract for roughly 200,000 tons per year
August, 16 2019