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

Mobile phone networks that include internet access - wireless telephony's so-called third generation or "3G" - have been a magnet for irrational exuberance in the telecoms sector over the last decade. Despite all the hype about the "convergence" of phones and personal computers, commercially viable 3G networks have been slow to emerge.
In an attempt to give Chinese telecoms equipment makers a leg up in what was expected to be a lucrative market in supplying hardware and handsets for these networks, China decided in the late 1990s to launch its own home-grown 3G technology standard.
Today this techno-nationalist gambit looks increasingly like an expensive failure, and 3G mobile networks may prove as disappointing in China as everywhere else. But amid this botched effort, an unanticipated success story has emerged: Chinese telecoms equipment firms have carved out a profitable global niche for themselves selling cost-effective systems based on existing international standards.
China's 3G adventure began in the late 1990s, when the industry overlord, the Ministry of Information Industry (MII), surveyed the telecoms world and saw that it was not good. Chinese telecoms equipment makers had already spent $20bn on royalties to the holders of patents underlying first-generation mobile telephony networks (i.e., telecom equipment firms like Ericsson and Qualcomm). They were well on their way to shelling out an even more enormous sum (about $50 bn by the end of 2007) to the patent-holders controlling the dominant 2G standards, GSM and CDMA. MII concluded that the best way to end this techno-colonialism and climb the value chain would be for China to develop its own 3G standard.
The stakes were high: for a patent-less equipment firm, royalty payments can reach 15% of the retail price of a 3G handset, according to an industry insider.
Multiply that times half a billion handsets, and it's easy to see the appeal of a domestic standard.
The Chinese standard's underlying technology, developed by state-owned Datang Telecom Technology, is fundamentally solid. But Chinese equipment manufacturers lacked experience developing a new standard from scratch. Even with help from outside firms like Siemens, which has participated in developing the standard, a process that ought to have taken four or five years is still grinding on in year 10. Meanwhile, the European and American 3G standards - WCDMA and CDMA2000 - reached technical maturity and commercial deployment.
According to Beijing, technical setbacks to the home-grown standard are not to blame for the delay in issuing 3G licenses. Instead, MII claims that 3G networks around the world have proved expensive failures. Until there is a proven 3G business model, it says, there is no reason to issue licenses.
The explanation is self-serving but also contains more than a grain of truth. The global wireless revolution that 3G was supposed to usher in has not materialized. In 2000, European wireless carriers spent a whopping $129bn for 3G spectrum licenses alone, an investment now widely viewed as a debacle.
The big reason that 3G hasn't taken off is that internet users are now accustomed to the speeds they enjoy with broadband connections on their PCs. They are reluctant to pay hefty fees for more sluggish 3G data services. This may be an insuperable technological barrier for 3G: CDMA, the basic technology underlying all 3G standards, was originally designed for voice, not data, so there are limits to the web-browsing and download speeds of any 3G service.
At UK-based Vodafone, whose equity interests in 25 countries make it the world's second-largest mobile telecom carrier behind China Mobile, data services (excluding short messages) accounted for just 6% of total revenues in the year to September.
Regardless of how well the Chinese 3G standard fares in China, it is now virtually certain that MII's dreams of Chinese equipment manufacturers marketing the Chinese standard abroad will not be realised. This is not necessarily bad news for the Chinese industry. MII exaggerated the ability of domestic equipment manufacturers to establish a new wireless standard for the world. But it vastly underrated those same firms' ability to grab global market share using established standards.
In recent years, China's top two telecoms equipment firms, Huawei and ZTE, have enjoyed spectacular revenue growth from contracts to install or upgrade traditional wireless networks in international markets. Nearly two-thirds of Huawei's revenue now comes from outside China, in markets as diverse as Russia, Venezuela, Nigeria, Colombia, Morocco and Saudi Arabia. In the first half of 2007, foreign revenues accounted for 48% of ZTE's revenues, up from 15% in 2004.
Chinese telecoms firms still ring up most of their sales in the more price-conscious developing world, but their mere presence trims margins even in rich countries. Network operators in Europe and North America cite price quotes from Chinese manufacturers in negotiations with their top-tier western rivals.
Moreover, the Chinese advantage is not all about price. Five years ago, Huawei mainly sold copycat versions of international vendors' costlier equipment. Today its equipment boasts unique proprietary features.
The lesson of the success of Huawei and ZTE is that innovation and the profits that flow from it are not usually a matter of producing a radically new technical standard or technological breakthrough. The most lucrative innovations are those that deploy existing technology in ways that better meet the needs of the market.
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Document FTCOM00020080317e43h0002c

MARKETS & DATA

Platts Oilgram News Selective Index: February 25, 2008 - March 7, 2008

5,130 words

11 March 2008

Platts Oilgram News

PON

10

Volume 86, Issue 50

English

(c) 2008 McGraw-Hill, Inc.
Platts Oilgram News Selective Index: February 25, 2008 - March 7, 2008


Date Page

COMPANIES

Alon USA

Alon ahead of plan for Big Spring restart 3/6 6

Alon details return of Big Spring refinery 3/7 7

Anadarko Petroleum

StatoilHydro buys Anadarko Brazil, US assets 3/5 1

Aventine Renewable Energy Holdings

Aventine shares drop on funding concerns 2/25 7

Blackstone Group

Petroplus forms $2 billion US refinery JV 2/28 1

BP

BP looks to soothe concerns over asset growth potential 2/28 1

Alaska prepares to sue BP over ANS spill: legislator 3/3 8

BP America

CBM drilling project won't include Flathead Basin 2/26 8

Cheniere EnergyCheniere Energy explores options for Sabine Pass LNG terminal 2/26 9

Chesapeake Energy

Chesapeake, eyeing 'golden years,' sees $8-$10/Mcf gas in 2008-09 2/25 9

Price run reveals hedging losers, winner 3/3 1

ChevronChevron to build ultra-heavy crude test facility at Pascagoula 3/7 10

Colonial Pipeline

Colonial Pipe adjusts Atlanta rules for more ethanol 3/4 10

Colony Capital

Libya retains its full ownership of Tamoil 3/5 5

ConocoPhillipsConocoPhillips says Venezuela arbitration could take years 2/25 10

Cote d'Ivoire

Afren to buy Devon's Cote d'Ivoire assets 3/7 4

Enel

Italy's Enel forecasts first Russian gas in 2010 3/7 6

Ensco International

US' Ensco beats Q4 target; expects rebound in Gulf 2/27 11

EOG Resources

EOG reveals Barnett as promising oil play 2/29 1

ExxonMobilExxonMobil files new plan but warns of Point Thomson challenges 2/25 8

UK court may rule soon on PDVSA asset freeze appeal 2/26 10

ExxonMobil in Libya deal 2/28 5

US Supreme Court hears Exxon Valdez case 2/28 9

ExxonMobil rejects crude shipments from Venezuela 3/3 9

Petrobras eyes Brazilian assets of ExxonMobil 3/4 6

Aid Venezuela in row with ExxonMobil, OPEC urged 3/4 8

PDVSA reviews contracts for ExxonMobil refinery joint venture: official 3/5 9

ExxonMobil eyes big spending hike to 2012 3/6 1

OPEC backs Venezuela in ExxonMobil row 3/6 7

First Reserve

Petroplus forms $2 billion US refinery JV 2/28 1

First Reserve sets US midstream investment 3/4 6

Forest Oil

Forest Oil pursues 'drill and acquire' strategy for growth 2/25 9

Frontier Oil

Frontier, other refiners see share price lift 2/27 11

Galp Imperial

Galp Energia plans $8 billion spend to 2012 3/7 4

Hedging Oil Trading

Price run reveals hedging losers, winner 3/3 1

Hess

Price run reveals hedging losers, winner 3/3 1

Husky Energy

Husky, partners win lease extension for NWT gas find 3/7 7

Imperial Oil

UK's Imperial raises Russian reserves to 920 million boe 3/7 4

Kosmos Energy

Kosmos unveils second large Ghana oil find 2/26 6

Marathon Oil

Joint venture of three US majors begins exploration in Libya 2/29 10

Price run reveals hedging losers, winner 3/3 1

Island Oil & Gas considers buying Marathon's assets offshore Ireland 2/27 8

Marathon Petroleum

Marathon readies for US Southeast ethanol blending 3/3 12

McKinsey & Company

Biodiesel glut seen persisting past 2010, Beijing conference told 3/3 4

MOL

OMV/MOL antitrust study in new phase: EU 3/7 6

Noble EnergyNoble Energy, Plains top Q4 targets 2/28 10

OMV

OMV/MOL antitrust study in new phase: EU 3/7 6

Parker DrillingParker Drilling shares pounded on losses at Saudi JV 2/27 9

PertaminaPertamina, Iran's NIORDC to ink refinery JV 3/7 2

PetroSun BioFuels

PetroSun buys 50% stake in Alabama biofuels company 2/26 8

Pioneer Natural Resources

Pioneer reaches deal with Alaska's Big Three 2/26 8

Plains Exploration & Production

Noble Energy, Plains top Q4 targets 2/28 10

Plains buys Texas assets for $335 million 3/4 7

Pride International

Pride signs extensions with Petrobras on two rigs worth $1.5 billion 2/28 10

Pride details improper foreign payments 3/5 8

PTT International

Thailand's PTT highest bidder for Sempra's Tangguh LNG volumes 3/7 3

Rowan Companies

Rowan Tarzan rig debut delayed to Q3, cost up 20% 3/4 7

Shell

Shell says Europe should listen to Russia on energy investment 2/25 5

Shell agrees sale of Nigerian deepwater stakes to Oando 2/26 5

Spain's Cepsa, Shell eye investments in Peru 2/27 10

Shell uncertain over return date of Bacton gas terminal 3/3 5

Shell says settles final lawsuit on 2004 reserves debacle 3/7 5

Shell lifts force majeure on Bonny, Forcados crude 3/4 5

Stone Energy

Stone joins stampede to Appalachia for shale gas 2/28 11

Sunoco

Petroplus forms $2 billion US refinery JV 2/28 1

Superior Energy Services

Superior Energy stock off on E&P sell-off plan 3/3 8

Toyoto Tshsho

Toyota Tsusho adds field 3/7 3

Union Drilling

Union's stock plunges on Q4 profit drop, bad weather 3/7 8

Valero Energy

Petroplus forms $2 billion US refinery JV 2/28 1

Valero Energy

Valero said not seeking strategic alternatives for Houston refinery 3/4 10

VeraSun Energy

INTERVIEW: VeraSun on challenges facing US ethanol producers 2/28 8

Western Refining

US' Western Refining sees share price slide almost 13%; aims to boost diesel output 2/29 10

Wood Mackenzie

US deep Gulf reserves up 503 million boe: Woodmac 3/6 6

COUNTRIES

Angola

Crude production in Angola reaches 1.9 million b/d 2/28 6

Angola again top supplier of crude to China in January 3/3 2

Argentina

Repsol sells 14.9% of Argentine unit YPF for $2.2 billion 2/25 7

Argentina fails to win more Bolivian gas 2/26 1

Australia

Western Australian FPSOs reconnect after cyclone 2/25 4

Australia urged to spend on geoscientific data 2/25 4

Caltex Australia's annual profit rises 3% 2/25 4

Australia's Cossack Pioneer restarts after cyclone 2/26 3

Australian oil output rises to 7-year high in 2007 2/26 3

Australian Woolworths sees higher H1 petroleum profit 2/27 4

Australian gas pipeline firm APA posts higher H1 profit 2/27 4

Australian AED weighs offers for some of its assets 2/29 4

Inpex, in switch, now considering Darwin site 2/29 4

Woodside, CPC sign Browse LNG agreement 3/3 2

Biofuels producer Natural Fuel strains under H1 loss 3/3 4

AED weighs offer for some of its assets off Western Australia 3/4 2

AGL considers options for growing LNG investments 3/4 3

Australian Molopo plans South Africa LNG plant 3/4 3

North West Shelf confirms LNG sale to Chubu Electric 3/5 2

Austria

OMV increases net income in Q4 2007 to $472 million 2/27 5

Austria's OMV proposes unwinding MOL's 'quasi' treasury shares 2/27 5

Bahrain

Bahrain hopes for oil discovery through deal with Thailand's PTTEP 2/27 7

Bolivia

Argentina fails to win more Bolivian gas 2/26 1

Brazil

Argentina fails to win more Bolivian gas 2/26 1

Petrobras eyes Brazilian assets of ExxonMobil 3/4 6

StatoilHydro buys Anadarko Brazil, US assets 3/5 1

Canada

Natives shelve Fort McKay oil sands deal with Shell 2/25 8

CBM drilling project won't include Flathead Basin 2/26 8

Alberta oil sands players split on proposal to freeze land sales 2/27 9

Connacher adds in Alberta 2/28 11

Canada advances carbon capture project 2/28 11

Talisman takes unconventional route, targets shale gas 2/29 9

Canadian Natural plans to continue to slow gas development 2/29 9

State Department issues permit for Keystone Pipeline project 3/5 7

Stelmach government wins Alberta election 3/5 7

Canadian Arctic driller MGM Energy has two dry holes 3/6 6

Alberta's GHG rules challenged in Kearl oil sands case 3/7 1

Canada OKs Rabaska LNG 3/7 7

China

China's growth drives jet fuel use higher 2/25 2

PetroChina begins next big pipeline project 2/26 2

China Southern Airlines gains from hedging 2/26 3

Latest East China Sea talks end without deal 2/26 4

China refinery under environment cloud 2/27 2

China services provider COSL eyes profit hike 2/27 4

PetroChina sees December start for refinery 2/27 4

Iran to sign up CNOOC in $16 billion North Pars deal 2/27 6

China targets Beijing emissions pre-Olympics 2/28 2

Nigerian president visits China for energy talks 2/28 3

Healthy Asian demand supports spot LNG 2/28 4

Iran delays signing North Pars gas deal with CNOOC 2/28 7

China Aviation Oil returns to futures trade 2/29 2

Trade group seeks end to Indian, Chinese jet fuel monopolies 2/29 3

CNOOC eyes Myanmar JV with Golden Aaron after US sanctions 2/29 3

Independents enter China wholesale market 2/29 4

Angola again top supplier of crude to China in January 3/3 2

Guangdong prepares for more power shortages 3/3 3

Biodiesel glut seen persisting past 2010, Beijing conference told 3/3 4

China, Qatar agree to cooperate on energy 3/4 3

PetroChina Jinxi eyes refinery expansion 3/5 3

China reinstates fuel oil consumption tax 3/6 2

PetroChina mulls giant Singapore refinery: report 3/6 3

A year after deregulation, China's retail independents still struggle 3/6 3

Deal due soon on Chinese role in North Pars gas field 3/6 4

China steps in to protect retail independents 3/7 1

Guangdong buys spot LNG with cost pass-on 3/7 3

Cuba

Cuban refinery said running at 55,000 b/d 2/26 10

Ecuador

Ecuador, Venezuela push upstream, refinery deals 2/25 7

SOTE crude pipeline down due to landslide 2/29 10

Ecuador to defer oil exports on SOTE outage 3/3 8

Petroecuador restarts SOTE 3/4 7

Egypt

Israel begins receiving Egyptian gas via subsea pipeline 2/27 6

European Union

Hydrogen could cut EU oil consumption 40% by 2050 2/26 7

Gazprom makes good on Ukraine gas threat 3/4 1

Ukraine hints at EU gas cut as supplies reduced by 50% 3/5 1

Russia resumes full gas supplies to Ukraine 3/6 5

Falkland Islands

Falkland explorers buoyed by Desire farm-in 3/3 7

France

GDF delays start of Marseille LNG terminal 2/28 7

Total to redevelop Gabon oil field, boost production 2/29 7

Iran will be key natural gas exporter to Europe and Asia: Total 3/5 5

Gabon

Total to redevelop Gabon oil field, boost production 2/29 7

Ghana

Kosmos unveils second large Ghana oil find 2/26 6

Greece

Greece interested in joining South Stream gas pipeline 2/25 5

Hungary

Austria's OMV proposes unwinding MOL's 'quasi' treasury shares 2/27 5

Hungary set to join South Stream gas link 2/27 7

Southeast European gas grid venture nears first milestone 2/29 6

Hungary agrees to join Russia in South Stream gas pipeline project 2/29 6

India

India's ONGC registers four new oil, gas discoveries 2/26 4

IOC wins OK to consolidate Bongaigaon refinery 2/28 2

India's crude imports decrease 12% in January 2/28 2

Trade group seeks end to Indian, Chinese jet fuel monopolies 2/29 3

India, Pakistan in talks on Iran gas pipeline 3/3 3

Indian oil companies to spend $57 billion 3/5 2

Indian Essar wins block in Vietnam's Song Hong Basin 3/5 3

India lowers excise duty on unbranded gasoil, gasoline 3/5 4

India approves OVL investment in Venezuela 3/5 4

Indonesia

Indonesia hopes to raise Tangguh LNG price to Korea 2/26 2

Banyu Urip oil project could cost $3.8 billion 2/26 2

Thailand's PTT talks with Indonesia on LNG supply 2/26 4

Indonesia's TPPI in force majeure due to port closure 2/27 4

Indonesian Pertamina buys 5 ships for $183.5 million 2/28 3

Indonesia prepares for possible Natuna suit 2/28 3

Indonesia teams up with Libya to build new refinery 2/29 4

Indonesia lifts April oil product imports by 5.5% 2/29 13

PT Odira Energy aims to start South Sumatra gas project 3/4 2

Indonesia's February crude output rises 4.4% on month 3/4 8

Indonesia's Donggi LNG partners agree new gas price 3/5 3

Indonesia raises its 2008 crude price to $85/barrel 3/5 3

Indonesia's Pertamina puts Natuna D-Alpha costs at $13-15 billion 3/7 2

Iran

Iran supports OPEC production cut in second quarter 2/26 1

Pakistan-Iran pipeline deal seen in March 2/27 3

Iran to sign up CNOOC in $16 billion North Pars deal 2/27 6

Iran delays signing North Pars gas deal with CNOOC 2/28 7

India, Pakistan in talks on Iran gas pipeline 3/3 3

Iran, Iraq pledge cooperation in oil, gas development 3/5 5

Iran will be key natural gas exporter to Europe and Asia: Total 3/5 5

Deal due soon on Chinese role in North Pars gas field 3/6 4

Pertamina, Iran's NIORDC to ink refinery JV 3/7 2

Iraq

Iraqi oil output, exports set to rise by 2010: CGES 2/25 6

Iran, Iraq pledge cooperation in oil, gas development 3/5 5

Iraqi licensing round draws 150 companies 3/6 4

Ireland

Island Oil & Gas considers buying Marathon's assets offshore Ireland 2/27 8

Israel

Israel rejects bid for IPE control of Haifa refinery 2/26 6

Palestinians protest over continued Israeli fuel blockade 2/26 7

Israel begins receiving Egyptian gas via subsea pipeline 2/27 6

Israeli delegation in Moscow to speed up talks on gas supplies 3/3 7

Italy

Greece interested in joining South Stream gas pipeline 2/25 5

Saras shares drop as underlying earnings fall 2/25 5

Sabotage forces Eni to cut Nigerian output 2/27 6

Japan

Showa Shell to maintain reduced runs in March 2/25 2

Japan's crude imports rise 2/25 12

Latest East China Sea talks end without deal 2/26 4

Nippon Oil sees crude runs off in March 2/28 3

Healthy Asian demand supports spot LNG 2/28 4

Mexico gets 3 bids for Manzanillo LNG terminal 2/28 9

Inpex, in switch, now considering Darwin site2/29 4

Japan's crude imports up 3/3 3

Japan's products output for January increases by 3.1% 3/3 11

North West Shelf confirms LNG sale to Chubu Electric 3/5 2

Idemitsu to run refineries at 89% in March 3/5 4

Showa Shell, Sumitomo finalize LPG merger 3/6 2

Kazakhstan

Kazakhstan sticks to oil export duty plan 3/3 5

Kuwait

Kuwait plans to revive project to raise northern fields' output capacity 3/6 4

Libya

Libya's NOC signs gas E&P accords with PGNiG, Gazprom 2/26 6

ExxonMobil in Libya deal 2/28 5

Indonesia teams up with Libya to build new refinery 2/29 4

Joint venture of three US majors begins exploration in Libya 2/29 10

Libya retains its full ownership of Tamoil 3/5 5

Malaysia

Van Der Horst moves planned biodiesel plant to Johor 2/25 11

Malaysia plans to launch dollar-based palm oil futures 2/28 4

Mexico

Mexican left draws battle lines on energy reform 2/26 10

Mexico gets 3 bids for Manzanillo LNG terminal 2/28 9

Pemex upbeat about 2008 despite 2007's big loss 3/3 10

Myanmar

CNOOC eyes Myanmar JV with Golden Aaron after US sanctions 2/29 3

New Zealand

Biodiesel New Zealand to build Christchurch plant 2/28 4

Nigeria

MEND urges Nigeria to clarify decision on Okah fate 2/26 5

Shell agrees sale of Nigerian deepwater stakes to Oando 2/26 5

Nigeria tribunal to vote on election validity 2/26 5

Sabotage forces Eni to cut Nigerian output 2/27 6

Nigerian president visits China for energy talks 2/28 3