• China lends Nigeria Dollars 2bn in exchange for oil talks. • Ft com site : China oils Nigeria talks with loan

investment of years of civil war are still felt today, as investors who left Chad between 1979-82 have only recently begun to regain confidence in the country's future. The most important economic venture to date is the Doba Basin oil extraction project in southern Chad. The project included unique mechanisms for World Bank, private sector, government, and civil society collaboration to guarantee that future oil revenues would benefit local populations and result in poverty alleviation.
Oil exploitation in the southern Doba region began in June 2000, with U.S.-based Exxon Mobil leading a consortium in a $3.7 billion project to export oil via a 1,000-km. buried pipeline through Cameroon to the Gulf of Guinea. Beginning in late 2000, development of Chad's petroleum sector stimulated economic growth by attracting major investment and increased levels of U.S. trade. Oil revenue began trickling into the country in July 2004. It was hoped that this project would serve as a catalyst for the entire economy by helping to reduce energy costs and attracting additional trade and investment in other sectors. However, the question remains whether Chad will continue to consolidate its economic reforms and invest its oil revenues wisely in order to encourage a wider range of economic initiatives. Political controversy surrounding elections and a rebellion in northern Chad also dampen Chad's economic prospects somewhat by exposing the weaknesses in Chad's political institutions.
The U.S. Government expressed both concern and disappointment after the Government of Chad on August 26, 2006 ordered Chevron Oil Corporation and Petronas, members of the Exxon Mobil-led and operated oil consortium, to cease operations and leave Chad within 24 hours for alleged non-payment of income taxes.
Chevron and Petronas entered into a tax agreement in 2000 with the government, represented by Petroleum Minister Mahamat Hassan Nasser, when they replaced Elf and Shell as minority members of the consortium. The companies assert that the agreement authorizes them to use a special depreciation schedule allowing greater tax deductions than those afforded consortium partner Exxon Mobil. The Government of Chad, however, claimed that the 2000 tax agreement was illegal, because it was negotiated by officials without proper authority and was not vetted by the National Assembly. The Government of Chad also announced plans to press charges against negotiating officials, and on August 28, 2006 replaced Nasser, as well as Economic Minister Mahamat Ali Hassan and Farming Minister Moucktar Moussa. Chevron and Petronas consider the Government of Chad to have violated its contractual obligations and planned to seek recourse through all diplomatic and legal means. While the U.S. takes no position on the merits of the dispute, it has urged all parties involved to respect any binding contractual commitments.
Despite recent development of the petroleum sector, more than 80% of the work force is involved in agriculture (subsistence farming, herding, and fishing). Like many other developing countries, Chad has a small formal sector and a large, thriving informal sector. Statistics indicate the following distribution as percentage of GDP: Agriculture--32.5% (farming, livestock, fishing); industry--26.6%; and services--40.8%. Chad is highly dependent on foreign assistance. Its principal donors include the European Union, France, and the multilateral lending agencies.
Primary markets for Chadian exports include neighboring Cameroon and Nigeria and France, Germany, and Portugal. Aside from oil, cotton remains a primary export, although exact figures are not available. Rehabilitation of CotonTchad, the major cotton company that suffered from a decline in world cotton prices, has been financed by France, the Netherlands, the European Economic Community (EC), and the International Bank for Reconstruction and Development (IBRD). The parastatal is now being privatized.
The other major export is livestock, herded to neighboring countries. Herdsmen in the Sudanic and Sahelian zones raise cattle, sheep, goats, and, among the non-Muslims, a few pigs. In the Saharan region, only camels and a few hardy goats can survive. Chad also sells smoked and dried fish to its neighbors and exports several million dollars worth of gum arabic to Europe and the United States each year. Other food crops include millet, sorghum, peanuts, rice, sweet potatoes, manioc, cassava, and yams.
After averaging 0.8% in 1999-2000, Chad's real GDP growth was estimated at 8.9% in 2001, and 10% in 2002 and 2003 as the Doba oil project accelerated. Inflation rose from 3.7% in 2000 to 12.4% in 2001, dropped to 5.2% in 2002, and was estimated to level out at 3% in 2004. These fluctuations were due in large part to increasing demand from the Doba project but also to fluctuations in agricultural production. After a disappointing agricultural campaign in 2000, increased production during the 2001-02 timeframe helped reduce inflation in 2002. In 2003, the contraction in investments, the 7% appreciation in the CFA Franc exchange rate, and bumper harvests combined to generate a 1% deflation in place of the projected 4.3% inflation. Chad's economic performance, at least until the onset of oil exports, continued to depend on fluctuations in rainfall and in prices of its principal export commodities, especially cotton.
Since 1995, the Government of Chad has made incremental progress in implementing structural reforms and improving government finances under two successive structural adjustment programs. Most state enterprises have been partially or completely privatized, non-priority public spending has been lessened, and the government has gradually liberalized some key sectors of the economy. Liberalization of the telecommunications, cotton, and energy sectors is expected to proceed over the next several years. Chad reached the enhanced Heavily Indebted Poor Countries (HIPC) initiative completion point in May 2001.
FOREIGN RELATIONS
Chad is officially nonaligned but has close relations with France, the former colonial power, and other members of the Western community. It receives economic aid from countries of the European Union, the United States, and various international organizations. Libya supplies aid and has an ambassador resident in N'Djamena.
Other resident diplomatic missions in N'Djamena include the embassies of Algeria, Cameroon, Central African Republic, China, Democratic Republic of the Congo, Egypt, France, Germany, Nigeria, Russia, Sovereign Military Order of Malta, South Africa, Sudan, Taiwan, the United States, and the European Economic Community. A number of other countries have nonresident ambassadors. In 1988, Chad recognized the State of Palestine, which maintains a mission in N'Djamena. Chad has not recognized the State of Israel.
Although relations with Libya improved with the advent of the Deby government, strains persist. Chad has been an active champion of regional cooperation through the Central African Economic and Customs Union, the Lake Chad and Niger River Basin Commissions, and the Interstate Commission for the Fight Against the Drought in the Sahel. On February 8, 2006 the Tripoli Agreement, an attempt to end border related disputes between Chad and Sudan, was signed by Deby and Sudanese leader Al-Bashir at a summit hosted by Libyan leader Gaddafi. Following several violent confrontations between Chadian Government troops and rebels in the east, Deby broke off diplomatic ties with Al-Bashir, who he accused of backing Chadian rebels. Due to the gravity of the humanitarian crisis caused by these violent conflicts, the UN authorized the deployment of an EU peacekeeping force of 3,700 on September 25, 2007. On February 2, 2008 rebels infiltrated N'Djamena, surrounding the Presidential Palace, forcing the evacuation of U.S. Embassy personnel, and stalling the arrival of the peacekeeping presence. A cease-fire agreement was tentatively reached on February 5, 2008.
Chad belongs to the following international organizations: UN and some of its specialized and related agencies; African Union; Central African Customs and Economic Union (UDEAC); African Financial Community (Franc Zone); Agency for the Francophone Community; African, Caribbean and Pacific Group of States; African Development Bank; Central African States Development Bank; Economic and Monetary Union of Central African (CEMAC); Economic Community of Central African States (CEEAC); Economic Commission for Africa; G-77; International Civil Aviation Organization; International Confederation of Free Trade Unions; International Red Cross and Red Crescent Movement; International Development Association; Islamic Development Bank; International Fund for Agricultural Development; International Finance Corporation; International Federation of the Red Cross and Red Crescent Societies; International Labor Organization; International Monetary Fund; Interpol; International Olympic Committee; International Telecommunication Union; NAM; Organization of the Islamic Conference; Organization for the Prohibition of Chemical Weapons; Universal Postal Union; World Confederation of Labor; World Intellectual Property Organization; World Meteorological Organization; World Tourism Organization; World Trade Organization.
U.S.-CHAD RELATIONS
Relations between the United States and Chad are good. The American embassy in N'Djamena, established at Chadian independence in 1960, was closed from the onset of the heavy fighting in the city in 1980 until the withdrawal of the Libyan forces at the end of 1981. It was reopened in January 1982. The U.S. Agency for International Development (USAID) and the U.S. Information Service (USIS) offices resumed activities in Chad in September 1983.
The United States enjoys cordial relations with the Deby government. Chad has proved a valuable partner in the global war on terror, and in providing shelter to approximately 200,000 refugees of Sudan's Darfur crisis along its eastern border.
Before permanently closing its Chad mission in 1995 because of declining funds and security concerns, USAID's development program in Chad concentrated on the agricultural, health, and infrastructure sectors. It also included projects in road repair and maintenance, maternal and child health, famine early warning systems, and agricultural marketing. A number of American voluntary agencies (notably AFRICARE and VITA) continue to operate in Chad. Peace Corps has traditionally had a large presence in Chad, with volunteers arriving during the postwar period in September 1987, then withdrawing in 1998. Peace Corps operations resumed in September 2003, with a group of 20 new volunteers. The second class of 17 volunteers arrived in September 2004. Both groups focused on teaching English; expansion into other areas was planned for 2005. Currently the Peace Corps presence in Chad is inactive.
Principal U.S. Officials
Ambassador--Louis Nigro
Deputy Chief of Mission--Lucy Tamlyn
Political/Economic Officer--Rebecca Daley
Consular/ Officer--Franklin Garcia
Management Officer--Brad Palmer
Public Affairs Officer--Solomon Atayi
Regional Security Officer--David Richeson
Defense Attache--Lt. Col. Nicholas Lovelace
The U.S. Embassy in Chad is located on Avenue Felix Eboue, N'Djamena, (tel: [phone], or 235-51-92-33; fax [phone]).
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http: // www.travel.state.gov , where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http: // www.travel.state.gov . For additional information on international travel, see http: // www.usa.gov/Citizen/Topics/Travel/International.shtml .
The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7: 00 a.m. to 12: 00 midnight, Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http: //wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. [phone].
Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data
Document STDP000020080219e42f00002

FF Features

Hey, big spender China has gone from being the world's chief recipient of foreign capital to one of the biggest buyers of foreign assets as its businesses boom, writes Mark O'Neill

1,431 words

12 February 2008

South China Morning Post

SCMP

12

English

(c) 2008 South China Morning Post Publishers Limited, Hong Kong. All rights reserved.
It took Shen Guoting more than six years and the loss of his project manager to win a contract late last year to develop the world's second-largest untapped copper mine, in Afghanistan.
In France, a trading company from Qingdao last month bought a 500-year-old chateau and vineyard near Bordeaux, the first acquisition by a Chinese firm in the French wine industry.
And on a smaller scale, three men and a woman from a city in Hubei province opened a restaurant in central Baghdad, serving noodles, dumplings and fried chicken (but no sweet and sour pork or Tsingtao beer).
These are three among thousands of examples of the biggest outflow of capital in China's history, turning it from the world's No1 recipient of foreign investment into one of its largest providers.
It is comparable to Japan's spending spree in the late 1980s, after the yen rose 51 per cent against the US dollar in the two years following the Plaza Accord in September 1985, enabling Japanese investors to acquire dollar assets at bargain prices.
Driving China's investment boom is not only the need to secure oil, gas, copper, iron ore and other raw materials to run factories and power stations, but also the need to recycle billions of US dollars from years of record trade surpluses.
Ten years ago Beijing was struggling to find ways to stop capital leaving the country, but now it is encouraging companies and individuals to invest abroad, to spend surplus foreign exchange and slow the appreciation of the yuan and to obtain the best return on their capital.
In response, foreign leaders - such as British Prime Minister Gordon Brown last month - have visited China to sell their countries as good locations for Chinese firms to set up branches and acquire assets, just as they went to Japan and South Korea in previous years.
Similarly, US institutions which have lost billions of dollars in the subprime crisis have come to seek funds to recapitalise their losses.
It is a reversal of roles. A decade ago Chinese delegations scoured the world, seeking to persuade foreign companies to invest in cities and provinces they had never heard of.
The most dramatic example of the reversal came more than a week ago when the Aluminium Corp of China (Chalco) paid, with US mining firm Alcoa, US$14 billion to acquire a 9 per cent stake in Rio Tinto, a London-listed mining giant at the centre of a takeover battle.
Fred Hu, managing director of Goldman Sachs (Asia), says China's overseas acquisitions last year exceeded US$30 billion, up from US$21 billion in 2006 and US$10 billion in 2005.
Experts expect this year to be another year of record outward investment. Leading the charge are big state companies such as Chalco, oil and mining giants, steel companies, banks and insurance firms, with a war chest of billions of US dollars raised from the stock market and booming sales at home.
Their acquisitions - such as Industrial and Commercial Bank's US$5.5 billion purchase of 20 per cent of Standard Bank, Africa's biggest bank, and China Investment Corp's deal for 9.9 per cent of Morgan Stanley and 10 per cent of the Blackstone Group, a fund manager - make the newspapers.
Accompanying them are thousands of individual entrepreneurs such as Mr Shen, risking their fortunes in countries western investors often shun.
Mr Shen, after the fall of the Taleban in December 2001, began talks with the new Afghan government on developing the Aynak mine, which has 690 million tonnes of copper ore and can produce 11.3 million tonnes of copper, one-third of China's total reserves of the metal.
"The copper project has taken a long time to finalise," he said. "We needed to be patient and determined. There is a lot that we can do in that country. We plan to continue investing there."
Negotiations were stalled by war, guerilla attacks, international bidding, protracted negotiations and the death of Mr Shen's project manager with the Afghan minister of mining and industry in a plane crash in 2003. Finally, last November, Mr Shen's company announced the deal. To win the contract, it had to promise to build a railway line and a power station, and develop a nearby coal mine.
The annual planned output of his mine, 300,000 tonnes, is equal to 20 per cent of China's copper imports. "In Afghanistan, you may as well herd a flock of sheep as herd one," he said. "We plan to do a lot there."
Longhai International, which bought the French vineyard, was set up in 2001 and works in property development, builds roads and bridges, sells seafood and imports wine.
"We are setting up leisure centres and VIP lounges where our customers can enjoy the best foreign wines and cigars," said a company spokesman of the plans to import wine to its mainland centres. "In recent years, imports of Bordeaux wine have rocketed and demand for famous brands will remain strong."
The four Chinese in Baghdad are taking a bigger risk. "We decided to come to see if there was opportunity," said one named Wu. "We think the situation in Iraq is getting better. We do not feel lonely because we work from 8am to 9pm each day."
The previous tenant of Mr Wu's premises sold alcohol and was bombed by Islamic zealots who beheaded the owner. The risks are typical of those faced by thousands of Chinese working abroad.
A report published in December by the China Export and Credit Insurance Corp (Sinosure) said risks rose in nearly 30 per cent of the countries where Chinese firms operate last year, especially in those with natural resources.
Such risks included high levels of debt, rising nationalism, local armed conflicts, sudden changes in government policy and protectionism, often related to the record price of oil.
"Facing these new threats, Chinese companies and individuals cannot rely on the traditional methods of risk avoidance, and treat all the countries the same way. They must adopt new strategies," the report said.
Sinosure is a state-owned insurance firm in Beijing that offers Chinese firms cover against political and commercial risks including war, nationalisation, expropriation and restrictions on the transfer and remittance of foreign exchange.
Last April in Ethiopia, nine Chinese workers were killed with 65 Ethiopians when anti-government rebels attacked an oil installation near the Eritrean border. Rebels in Niger abducted a Chinese mining executive looking for uranium, and Islamic radicals in Pakistan have killed Chinese working there. Chinese working in oil and telecommunications in Nigeria have been kidnapped.
And there are also a number of legal and political risks.
"The response in the world to the rise of China is more complicated than that provoked by the sudden wealth of Japan in the 1980s," Mr Hu said. "Most countries in Asia, Africa and Latin America genuinely welcome investment from China and believe that it is a reliable, long-term partner. But some countries criticise China for behaving like the western colonial powers of the past, stripping countries of their natural resources and not caring about the environmental impact."
In rich countries, the reaction to the flood of Chinese capital has been mixed. Britain, Australia and Canada welcome Chinese investment, but the response has been cooler in the US, France and Germany. French President Nicolas Sarkozy and German Chancellor Angela Merkel have called for a European "golden share" to protect strategic industrial assets from takeovers by foreign sovereign wealth funds, including the China Investment Corp (CIC), set up by Beijing last September.
The CIC has US$200 billion in assets, of which one-third is earmarked for overseas investment.
"There is no question of France remaining unable to react in the face of a rise in the power of extremely aggressive sovereign funds which only follow economic logic," Mr Sarkozy said last year. "France must protect its companies and give them the means to develop and defend themselves."
EU economy commissioner Joaquin Almunia said the EU might restrict investments by government funds unless they disclosed more about what they invest in and why.
The Bush administration has welcomed Chinese investment but called for more transparency, but some members of Congress have said that strategic assets must be protected from overseas investors.
Document SCMP000020080211e42c0000z

City:

China's Year of the Rat race Beijing's power play in the battle for Rio Tinto is part of a long-term strategy to build a whole range of national champions.

By Russell Hotten and Richard Spencer

1,292 words

10 February 2008

The Sunday Telegraph

STEL

008

English

(C) 2008 Telegraph Group Limited, London
Last Thursday marked the start of the Chinese New Year - the Year of the Rat. People born in the next 12 months will be leaders, pioneers, conquerors. Maybe they will go into business - replacing today's generation of bosses who seem to already have those qualities. Because no bid battle and disposal seems complete these days without some Chinese involvement or interest.
The country's corporate tentacles have already spread far and wide, but a new wave of international expansion may be on the cards. Chinalco's intervention in the titanic takeover struggle between two mining leviathans, BHP Billiton and Rio Tinto, epitomised the confidence and ambition among China's business elite.
Chinalco spent $14.1bn ( pounds 7.2bn) buying Rio shares in a daring dawn raid - the largest Chinese investment in an overseas business - yet the company was hardly on anyone's radar screen. But if you have not yet heard of relatively obscure names like Chinalco, appliance maker Haier, even computer giant Lenovo, remember them. They're coming to an industry near you.
William Hess, Beijing-based analyst for Global Insight, says: "The government has taken a liking to the concept of national champions, and wants to see globally competitive Chinese firms emerge in the sectors that it associates with national strength. This certainly includes the automotive sector, pharmaceuticals, and natural resources.
"I expect to see more acquisitions by financial firms, and efforts by the government to position its homegrown technology-related firms as global players - especially in networking equipment with companies like Huawei, and in mobile phones.'' In short, there's a lot of money sloshing around in China, and it could be spent anywhere.
Earlier this month, Lenovo's finance chief Wong Wai-ming said that the computer giant will be pursuing acquisitions this year. "We have cash and virtually no borrowing. We also have the track record to raise the necessary debt equity. It there is the right investment opportunity, we are capable of doing it and we will do it.''
Lenovo, now the world's fourth largest personal computer supplier, bought IBM's loss-making PC business in 2004, an unprecedented move for a Chinese technology company. But there have been failures. Last year, Lenovo tried to buy Packard Bell, losing out to Acer. And Cnooc failed to buy Unocal, while Haier lost out in its bid for appliance maker Maytag. But these setbacks are seen as part of a learning curve.
So far, there have been two types of Chinese international expansion running in parallel. A strategic expansion, and a knowledge expansion. The first expansion involves government-backed moves to secure supplies of resources like iron ore, oil, and coal, and to invest Beijing's vast sovereign wealth fund. The second involves smaller Chinese companies seeking out Western assets - often distressed ones - to acquire expertise and technology.
The Chinese economy's thirst for natural resources has been well-documented. The country's metals and mining companies are having to look outside their borders to secure guaranteed supplies. Beijing has encouraged firms to do deals in places like Africa and South America, using its political clout to smooth transactions.
Last August, Chinalco bought Peru Copper for $860m. Cnooc, China's third biggest oil producer, bought Nigerian Oil fields for $2.7bn. Xiamen Zijn Tongguan Development Company has bought 90 per cent of London-listed Peruvian copper miner Monterrico Metals. Earlier this month, Soco International sold its oil assets in Yemen to Sinochem. The list goes on.
Chinalco's interest in Rio shows that nothing is off-limits. The Chinese company could well choose to mount a full bid. And last year's speculation that Baosteel, China's top steelmaker, may enter the fray has never gone away entirely. Surprisingly, perhaps, Petrochina, the world's largest company by market value, did not do a major deal in 2007. But for Johan Leven, who runs M&A for Goldman Sachs's in Asia excluding Japan, it is only a matter of time. Petrochina will be a global company within five years, he believes.
Key to this growth is political power. Global Insight's Hess believes that many Chinese companies are run by highly educated, highly capable executives. But it is Communist Party officials who do the deals. He said: "Without a few apparatchiks behind him - it's rarely a her - the efforts of even the savviest of MBA graduates will be futile. The natural resources companies that have made purchases of assets abroad have done so essentially in the name of the state. This gives them immediate political backing and makes it relatively easy for them to do deals.''
Some senior executives move frequently between company and government jobs. Only further down the management chain do you find a lot of business graduates from Western universities. There are some exceptions, such as men who run Huawei and Haier - entrepreneurial types who built their companies from nothing.
Negotiating the political structures becomes even easier for Beijing's sovereign wealth fund, which is inextricably linked to the Party. The fund at first tiptoed its way into direct investments in overseas companies. Beijing feared a political backlash, and used private equity firm Blackstone to do deals, many of which were below the radar screen. The credit crisis changed all that. China Investment Corp's $5bn investment in Morgan Stanley was welcomed in the US. Here was a saviour, helping to prop up the system.
Smaller firms are also making waves. Four years ago, when two Chinese automotive companies vied for control of Rover Group, the takeover was considered risible. One Mickey Mouse company buying another.
Today, China's motor industry is taken far more seriously.
At last month's Detroit Motor Show, the world's biggest, there were five Chinese carmakers displaying their models. Western and Japanese manufacturers have flooded into China through joint ventures. But each deal involves a bit of technology transfer, enabling the indigenous players to turn the tables. Shenzhen-based BYD, for example, hopes to enter the US car market with an electric plug-in hybrid vehicle in about five years. The carmakers do not match Western-style quality control. But then neither did the Japanese three decades ago.
China's smaller, independent companies, many of them uncompetitive and surviving on the low margins, have the aspiration of expanding overseas but not the ability. Said Hess: "Private companies have to get in line behind the big ones and expend great efforts to navigate the bureaucracy that would ultimately approve their plans - and grant them the rights to purchase the necessary foreign exchange to do so. This being the case, the process is easier for companies that can align their commercial objectives with national industrial policy goals, and thus arrange the necessary bureaucratic patronage to get through the process.''
This limits entrepreneurship, and contrasts sharply with India where families like the Mittals and Tatas thrived in a competitive open environment, given them the experience to expand abroad. There are lots of outstanding Chinese entrepreneurs, but they mostly work in property, retail, low-end manufacturing, and restaurants.
Some have international vision, like Zhao Lan of the restaurant chain South Beauty, which is starting to expand abroad, or the paper recycler Zhang Yin, of Nine Dragons Paper. But they focus at home because that is what they know best. Besides, for many entrepreneurs China is the only place at the moment where you can build a small company into a $1bn operation in five years. So why bother looking abroad?
Document STEL000020080210e42a00011

Arroyo to ease OFW woes
Artemio V. Panganiban, Columnist

947 words

10 February 2008

Philippine Daily Inquirer

AIWPHI

English

Copyright 2008 Inquirer Interactive, Inc. All Rights Reserved. http://www.inq7.net
MANILA, Philippines -- I was invited, through Foreign Secretary Alberto G. Romulo, to meet President Macapagal-Arroyo in Malacañang last Feb. 6. We discussed many non-partisan concerns of the nation, like the seismic tests for oil and other natural resources in the Spratlys, jointly undertaken by the Philippines, China and Vietnam; the Japan-Philippines Economic Partnership Agreement (Jpepa) that is still awaiting Senate concurrence; and the strengthening of the Commission on Elections, started auspiciously with the appointment of Chair Jose A. R. Melo.
OFW recommendations. I took the occasion to submit to the President a position paper of overseas Filipino workers (OFWs) recommending five specific measures to relieve them of their woes:
“1. To revoke immediately POEA Memo Circular No. 4 (series of 2007) in order to avert the loss of existing and potential jobs for OFWs in a shrinking and fiercely competitive global labor market;
“2. To bring about the urgent transformation of all international airports in the Philippines, especially Naia I & II, into customer-friendly, cheerful and hospitable places not only for OFWs but for all passengers;
“3. To direct a total revamp of the POEA, and if necessary, to appoint a new administrator, whose credentials equal those of Quezon City Mayor Sonny Belmonte or Tony Tan Caktiong of Jollibee, in order to reinvent an efficient and effective POEA;
“4. To set in motion the audit of POEA, OWWA, and PhilHealth funds, in order to assure the OFWs that their hard-earned money is in good hands; and
“5. To prompt the Department of Foreign Affairs to raise the bar and to continuously improve its services to prospective OFWs and those who are currently deployed, especially in Nigeria, Middle East and India.”
These proposals were collated and synthesized from hundreds of e-mail by a core group of 20 led by Dr. Carmelita Cochingco-Ballesteros, Ph.D., a professor at the Nanyang Technological University in Singapore. The other OFWs who helped her are Benjamin Baquilod (India), Nardito Sapon (Singapore), Freddie Base (Saudi Arabia), Erickson Alon (United States), Rosa Cagantas (United Kingdom), Ricardo Decena (Nigeria), Jimmy Cabatit (Nigeria), Flori Tuason (Sweden), Juvy Jumalon (Singapore), Manuelito Dagohoy (Saudi Arabia), Maynard Flores (Nigeria), Noslen Sonnel (Singapore), Alexander Moreno (United States), Mark Anthony Serrano (Dubai), Joey Pandy (Middle East), Herbert Sumalinog (Singapore), Jaime Enage Jr. (China), Leo Figaroa (Nigeria) and Eliseo Tenza (Dubai).
These recommendations were triggered by my three successive columns on Jan. 6, 13, and 20, denouncing the shabby treatment of OFWs. These articles can still be accessed at www.inquirer.net or my personal website, www.cjpanganiban.ph
The President was visibly touched by the OFWs' stories narrating their airport ordeals, frayed nerves, anxiety, vexatious delays and loss of employment for some. GMA was especially peeved at POEA's obvious lack of care and efficiency in handling their laments. She asked me to assure the OFWs that she would act expeditiously on their position paper and ease their woes.
Neri's temporary reprieve. The Supreme Court has issued a “status quo order” barring the Senate's arrest of Commission on Higher Education Chair Romulo Neri. However, this resolution should not be interpreted as a prejudgment of the Petition questioning the validity of the Senate's order issued on Jan. 30 requiring Neri to continue his testimony in the ZTE National Broadband Network investigation. The Court merely wanted the parties to continue their usual work while it is deliberating on the petition.
Executive Secretary Eduardo Ermita invoked “executive privilege” to justify Neri's refusal to resume his testimony. In “Senate v. Ermita” (Apr. 20, 2006), the Supreme Court has ruled that disclosure is the rule and secrecy is the exception. Thus, the Executive Department has the burden of proving its claim of the privilege. It must show that the public interest to be served by the grant of secrecy is superior to the right of the Senate to obtain information.
That the oral argument on the case was scheduled early—on March 4—underscores, in my opinion, the High Tribunal's determination to decide the controversy speedily. In view of the many bizarre twists and turns in the ZTE-NBN inquiry, especially the revelations of Joey de Venecia, the toppling of Speaker Jose de Venecia Jr. and the damning testimony of Rodolfo Lozada Jr., Neri's petition should indeed be expeditiously resolved.
Press freedom on the line. A good barometer of how the present Supreme Court will decide issues involving the rights of media and journalists is the petition filed by former Solicitor General Francisco Chavez, questioning the “order” of the National Telecommunications Commission (NTC) prohibiting TV and radio stations from airing the now notorious “Garci tapes.”
Recall that during the height of this electoral controversy, the NTC issued a press release warning that the license of these TV and radio stations would be cancelled should they air the tapes. The NTC alleged that the playing of the tapes or discs would violate the Anti-Wire Tapping Law. This important controversy involving press freedom and the right to information would have been forgotten had Chavez not taken up the cudgels. By their inaction, the broadcast media had apparently forgotten to challenge the NTC press release.
Having now ripened, this landmark case may be decided anytime soon. Abangan!
* * *
Comments are welcome at [e-mail]
More Inquirer columns
Previous columnS:
Hope - 2/02/08
Concurring and dissenting - 01/26/08
OFWs unite! ‘A Test of Courage' - 01/19/08
More OFW gripes - 01/13/08
Shabby treatment of OFWs at airport - 01/05/08
Philippine philanthropy - 12/29/07
Document AIWPHI0020080209e42a0000n
BG GROUP plc - Strategy update
1,516 words

7 February 2008

02:01 AM

Regulatory News Service

RNS

English

(c) 2008
RNS Number:4766N BG GROUP plc 07 February 2008
News Release
7 February 2008
BG Group strategy to deliver long-term growth over next decade and beyond
BG Group will today present its Q4 and Full Year 2007 results and annual strategy update.
Key points from the strategy presentation will include:
• earnings per share up 11% in 2007, with continued strong outlook for earnings potential to 2009; • significant and sustained value contribution from the Group's flexible global LNG portfolio, with 2007 operating profits up 48%, supply positions secured to 2020 and beyond, and financial outlook substantially improved; • production in 2009 expected to be in a range between 680 000 and 710 000 barrels of oil equivalent per day; production growth from 2005 to 2012 is expected to show a compound annual growth rate of between 6% and 8%; • total hydrocarbons initially in place on the Tupi discovery offshore
Brazil ( BG Group 25%) now estimated at between 12 and 30 or more billion

barrels of oil equivalent, increased from previous estimates of 1.7 to 10

billion barrels of oil equivalent;

• BG Group total reserves and resources have increased by around 3 billion

barrels of oil equivalent in two years (up 42%), and now exceed 10 billion

barrels of oil equivalent, amounting to 46 years of production at 2007

levels; and

• the Group's total reserves and resources could support a compound growth

rate in production volumes of between 6% and 8% per year out to 2020.


BG Group Chief Executive Frank Chapman said: "We see a positive outlook across our diverse global portfolio and have confidence in our long range prospects."
He added: "Our portfolio demonstrates the advantages of a strong production foundation, a leadership position in LNG, a proven understanding of global gas markets, the significant expansion of our reserves and resources base and the potential of our exploration programme. I believe the Group has a very encouraging future over near, medium and long-term time horizons."
The Group's plans will be presented to analysts and investors at 1400 GMT on 7 February 2008 at an event hosted by BG Group Chairman Sir Robert Wilson, Chief Executive Frank Chapman and Chief Financial Officer Ashley Almanza. The presentation will be webcast live at www.bg-group.com , after which a recording of the event and a copy of the slide presentation will be available online.
The Group has also published details of its Q4 and Full Year results for 2007, announced separately at www.bg-group.com , which should be read in conjunction with this news release.
Business context
Global demand for gas continues to increase, driven by the energy needs of established economies, rapid growth in emerging economies and by public policy responses to concerns about climate change. As the hydrocarbon fuel with the lowest carbon emissions impact, gas plays an important role in efforts to address global warming.
BG Group is strongly positioned to respond to these trends, with a successful strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, the Group has a broad portfolio of upstream and downstream assets.
Key portfolio developments
Global LNG
• Contracted supply volumes of 12.6 million tonnes per annum through to
2020 and beyond; plans to extend current supply position through additional

contracted feedstock in Nigeria as well as potential from other sources,

including Australia.

• Flexible global portfolio yields ability to respond swiftly to demand in

high-value, premium markets; one-third of all cargoes were re-marketed to

capture higher-margin opportunities in 2007. EBITDA guidance increased to

30% for both 2008 and 2009.
Australia

• Announced alliance with Queensland Gas Company Limited (QGC), a leading

coal seam gas exploration and production company based in Eastern Australia.

• Significant reserves potential in Surat Basin onshore coal seam gas

acreage.

• BG Group to hold a 70% interest in planned LNG export facility on the

Queensland coast and will offtake 100% of initial production, planned at

around 3 - 4 million tonnes per annum.
Brazil

• Very successful appraisal of Tupi discovery.

• One other discovery in the Santos Basin in 2007 (Carioca), with further

prospects still to be explored, including two with very large potential -

Corcovado and Iguacu Complex.

• Strong growth in BG Group's downstream gas subsidiary, Comgas - the

largest transmission and distribution company in Brazil.
Egypt

• Further large-scale development of West Delta Deep Marine and Rosetta

fields.

• Exploration drilling scheduled on El Burg and El Manzala prospects in

2008.

India

• Production volumes from the Panna/Mukta and Tapti fields on India's west

coast grew by 33% in 2007; total volumes have now doubled since BG Group

took responsibility for technical operations on the fields in 2002.

• Notable success on the Panna field, where production increased by 25% in

2007, and on Tapti, where a major new complex increased production capacity

by 80%.
Kazakhstan

• Excellent year, with record production from Karachaganak field in 2007.

• Fourth stabilisation train on schedule for start-up in 2009.

• Around 50% of front end engineering and design work completed on Phase

III project.

• New Gas Sales Agreement signed in 2007 and agreements on export capacity

to western markets will underpin decision to sanction Phase III expansion in

2008.
Nigeria

• BG Group equity in the proposed development increased to 14.25%.

• Reviewing technical solutions to reduce cost and improve economics at

Olokola LNG (OKLNG) export facility.
Norway

• Portfolio contains 22 exploration and production licences, 14 of them

operated by BG Group.

• Five wells in 2008 - four exploration prospects, and an appraisal well

on the Bream discovery.
Oman

• 1,500 sq km of 3D seismic data acquired on Abu Butabul discovery.

• Drilling first of 8 to 10 appraisal wells.
Thailand

• Record production from Bongkot North field in 2007, 14 years after first

gas.

• Successful five-well exploration programme on Bongkot South; gross

reserves increased to around 1.2 trillion cubic feet of gas, with first

production expected in 2011/12.
Trinidad and Tobago

• Considerable progress addressing operational challenges identified in

Atlantic LNG Train 4.

• Farmed-in to Block 5c in the East Coast Marine Area in 2007. Three well

drilling programme underway; the first well, Victory, under evaluation after

successful tests.
Tunisia

• Continuing development of the Miskar field.

• Second development, Hasdrubal, on schedule for first production in 2009.
UK North Sea:

• BG Group UK North Sea production projected to maintain current output

levels of 50 million barrels of oil equivalent per year out to 2012, with

the potential to sustain this to 2015;

• Buzzard field producing up to 220,000 barrels of oil equivalent per day,

10% above projected capacity; gross reserves increased to more than 600

million barrels of oil equivalent.

• Additional reserves established on Jasmine discovery; first production

expected 2011.
Exploration overview

• 20 wells drilled in 2007, with 12 successes.

• Successes included wells in Bolivia, Brazil, Norway, Thailand and the UK.

• Extensive seismic acquisition activity, with surveys in Algeria, Brazil,

Canada, China, Libya, Nigeria, Norway, Oman, Trinidad and Tobago and the UK.

• More than 4,600 square kilometres of new exploration acreage acquired,

with additional licences in Canada, India, Norway, Trinidad and Tobago and

the UK.


There are matters included in this news release which contain forward-looking statements. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within BG Group's control or can be predicted by BG Group. Although BG Group believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ from those set out in the forward looking-statements. For a detailed analysis of the factors that may affect BG Group's business, financial performance or results of operations, we urge you to look at the "Risk Factors" included in BG Group plc's Annual Report and Accounts for the year 2006. BG Group plc undertakes no obligation to update any forward-looking statements.
Notes to Editors:
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with an excellent track record in finding and commercialising reserves.
In addition to the investor presentation, there will be a news conference for accredited media representatives to be held at 1000 on 7 February 2008. Contact BG Group media relations for further details. High resolution images are available for download from www.vismedia.co.uk
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