[Kabar-indonesia] 15 oil/gas/mining reports: New RI oil/gas director; Inco; Oil hits $75.40; Antam

[JoyoNews at aol.com]

15 reports:

- Indonesia appoints new director
    general of oil/gas
- Oil Touches Record $75.40/Bbl After 
  North Korea Tests Missiles 
- update: Indonesia Inco says 06 nickel 
  output to fall
- Indonesia's Inco minority shareholder 
  seeks Phelps Dodge tender offer for stake
- Indonesia PLN Names UBS Underwriter 
  For USD Islamic Bonds
- Kalimantan-Java pipeline could halve 
  Bontang plant's LNG production
- Indonesia's Aneka Tambang Cuts 2006 
  Nickel Output Target
- Seadrill Signs $26.3M Deal With Premier
    Natuna Sea
- Indonesia Press: Energy Min Wants 
  Geothermal Taxes Removed
- Platts: Kalimantan Gold to raise 
  $2.3million for Indonesia gold project
- Kobe Steel aims to turn low-grade coal 
  into viable energy source
- Italy's Saipem wins two contracts worth
    $530 mln
- Mitsui Oil Exploration To Spend Y100B
    On Oil Stake Buys
- Indonesia turns to Jathropa Curcas plant
    for bio-fuel
- Petromindo Headlines, Wed., July 5, 2006

Indonesia appoints new director general of oil/gas

JAKARTA, July 5 (Reuters) - Indonesia has appointed a new director
general of oil and gas, a post covering policy such as offering new
exploration areas to contractors and attracting investment in the
sector.

Energy minister Purnomo Yusgiantoro appointed on Wednesday Luluk
Sumiarso, a former director general of electricity and the energy
ministry's current secretary general.

"I want the new director general of oil and gas to encourage a boost
in production," Purnomo told reporters.

Sumiarso replaces Iin Arifin Takhyan, who has been appointed vice
president director of state oil firm Pertamina.

Indonesia's crude oil output fell to 900,000 barrels per day (bpd) in
June from 918,000 bpd in May due to shutdown of several oilfields for
maintenance, an industry source said on Monday.

The Asia-Pacific region's only OPEC member has struggled to maintain
production as the country has failed to tap new oilfields fast enough.

Indonesia oil production has been declining at a rate of 5 percent or
more annually.

-------------------------------------------------------

Oil Touches Record $75.40/Bbl After North Korea Tests Missiles 

by Gene Laverty in Calgary 

July 5 (Bloomberg) -- Crude oil touched a record $75.40 a barrel in New York 
after North Korea test-fired missiles into the Sea of Japan, raising concern 
that geopolitical conflicts may disrupt supplies. 

Prices peaked today 5 cents above the high set in April as the dispute over 
Iran's nuclear program escalated. The missile tests deepen concern that 
geopolitical conflicts might interrupt the free flow of crude oil, analysts said. 
Speculation that U.S. gasoline inventories are falling also gave the oil market a 
boost. 

``The current woes around the world all have the potential to threaten oil 
supplies,'' said Michael Fitzpatrick, vice president of energy risk management 
at Fimat USA in New York. ``The higher gasoline prices didn't slow driving over 
the weekend. Demand is a big problem.'' 

Crude oil for August delivery rose $1.26, or 1.7 percent, to $75.19 a barrel 
on the New York Mercantile Exchange, the highest close for a contract closest 
to expiration since oil futures began trading on the exchange in 1983. Earlier 
crude touched $75.40, the highest intraday price. 

Brent crude oil for August settlement gained on the ICE Futures exchange in 
London, halting two days of declines. It rose $1.47, or 2 percent, to close at 
$73.98 a barrel, the highest since May 2. 

``The most important news is the missile test overnight,'' which also has 
implications in Iran, said Rob Laughlin, a senior broker at Man Financial Ltd. in 
London. ``Some people in Iran had a big smile this morning. Now they will 
wait for how President George W. Bush is going to react.'' 

Oil prices more than doubled in 1979 after a revolution in Iran slashed the 
nation's oil exports. By February 1981 U.S. refiners were paying an average $39 
a barrel for imported oil, according to Energy Department figures, or $86.88 
in 2006 dollars. 

10 Missiles 

The Russian army said it tracked 10 North Korean missile launches, Interfax 
reported today, citing Russian Armed Forces Chief of Staff Yury Baluyevsky. 
Japan's Kyodo newswire reported North Korea may have launched seven missiles, 
according to government officials it didn't identify. 

Oil has risen 23 percent this year in New York, partly on concern a 
confrontation over Iran's nuclear research will lead to an interruption of oil supplies 
from the Islamic republic, the world's fourth-largest producer. Bush on June 
19 threatened action by the United Nations Security Council if Iran rejected a 
European Union plan to encourage Iran to end uranium enrichment. 

July 12 Deadline 

Iran has until July 12 to stop enriching uranium or risk UN sanctions, the 
Associated Press said this week, citing unidentified diplomats. Iran this week 
rejected calls for a prompt reply to the EU proposal, saying it will stick to 
its own deadline of Aug. 22. 

Iranian and European Union officials including Javier Solana, the EU's 
foreign policy chief, will meet tomorrow in Brussels to discuss the Islamic 
republic's nuclear program. Iran's top nuclear negotiator, Ali Larijani, postponed the 
meeting by one day. 

Solana will receive the Iranian envoy tomorrow and resume talks on July 11. 
The EU wants to ``proceed rapidly'' on the issue, Solana said in a statement on 
his EU Web site. 

Oil-price gains were aided by speculation that gasoline demand over the U.S. 
holiday will eat into supplies when the U.S. Energy Department provides its 
next weekly inventory report tomorrow, at 10:30 a.m. Washington time. The report 
is delayed a day because of the U.S. Independence Day holiday yesterday. 

Strong Demand 

``Demand was strong over the holiday weekend even though prices were high,'' 
said Phil Flynn, vice president of risk management at Alaron Trading Corp. in 
Chicago. 

Inventories may have been affected by disruptions to barge deliveries and 
imports when the Calcasieu Ship Channel in Louisiana was closed for more than a 
week in late June because of an oil spill. Gasoline stocks probably fell 
650,000 barrels last week, the median estimate of six analysts in a Bloomberg 
survey. 

The Energy Department's previous inventory report, issued June 28, showed an 
unexpected 1.1 million-barrel decline in U.S. gasoline stockpiles for the week 
ended June 23, the first drop in nine weeks. 

Gasoline for August delivery rose 5.7 cents, or 2.6 percent, to $2.2758 a 
gallon on the Nymex. U.S. retail gasoline prices averaged $2.931 a gallon 
yesterday according to AAA, the largest motoring club, compared with $2.223 a year 
earlier. 

Factory orders in the U.S. rose more than forecast in May and a private 
report showed unexpected strength in hiring, adding to concern that the Federal 
Reserve will keep raising interest rates after 17 consecutive increases. Higher 
factory output increases demand for oil-based fuels. 

More Jobs 

Orders placed with factories increased 0.7 percent during the month, led by 
demand for business equipment, following a 2 percent decline in April, the 
Commerce Department said today in Washington. A report from the largest paycheck 
processor, Automatic Data Processing Inc., showed U.S. employers added 368,000 
jobs in June, the most since 2001. 

Strong job growth and business investment may keep the economy expanding as 
the housing market and consumer spending slow down. The dollar and U.S. 
Treasury yields climbed as investors speculated Fed policy makers won't pause with 
rate increases, as they suggested they might after meeting June 29. 

Boone Pickens, the hedge-fund manager who has correctly predicted rising 
energy prices in the past two years, said crude oil will climb to $80 a barrel 
before the start of 2007. 

``I think you're headed up on oil prices now,'' Pickens said today in a CNBC 
interview. 

Pickens, who oversees more than $4 billion, predicted in April that oil was 
more likely to rise to $80 than fall to $60. Since then, U.S. oil futures have 
climbed to around $74 a barrel. Pickens predicted $50 oil in May 2004, when 
prices had just topped $40 and some analysts were predicting declines. 

--------------------------------------------------------------

Indonesia Inco says 06 nickel output to fall

JAKARTA, July 5 (Reuters) - The Indonesian unit of Canadian nickel
producer Inco Ltd said on Wednesday its nickel matte output was
expected to fall to 159-160 million pounds in 2006 due to a fire at
one of its furnaces in late May.

PT International Nickel Indonesia Tbk had initially targeted 2006
output of 167 million lb. Inco produced 38.3 million lb of nickel in
matte in January-March 2006.

The fire occurred in a transformer room at Inco's second furnace in
Sorowako, Sulawesi island.

Inco operational director Dirk Theuninck said repairs were going well
and the company was ready to switch on the power.

"We have replaced the transformer and all equipment around it. The
heating period of the furnace will take approximately two to three
weeks," Theuninck told reporters.

"We cannot hurry the process because it's very critical in terms of
safety around the furnace. So recovery will, of course, be limited."

Nickel in matte is an intermediary product that must be further
refined to make pure metal.

Asked about a proposed $40 billion purchase of Inco Ltd and
Falconbridge Ltd by U.S.-based Phelps Dodge Corp , the company said it
would not affect Inco's operation in Indonesia.

"Inco is a separate public company in the Jakarta Stock Exchange. So
we expect no significant changes in the near term, in terms of
operations," said Peter C. Jones, Inco's president commissioner.

----------------------------------------------------------------

Indonesia's Inco minority shrholder seeks Phelps Dodge tender offer for stake

JAKARTA, July 5 (XFN-ASIA) - Dia Holdings Overseas BV, a minority
shareholder PT International Nickel Indonesia (PT Inco), has invited
other minority shareholders to urge Phoenix-based Phelps Dodge Corp to
launch a tender offer for their stake in relation to Phelps' planned
acquisition of PT Inco's parent firm Inco Ltd.

"Phelps Dodge's planned acquisition of Inco Ltd and subsequently PT
Inco, requires a tender offer to all shareholders of PT Inco," Dia
Holdings said in one-page advertisement published in Bisnis Indonesia.

Dia Holdings, which claims to be PT Inco's largest minority
shareholder, further said, "Bapepam should know the facts about the
transaction well in order to fairly protect the interest of minority
shareholders."

Bapepam is the Capital Market Supervisory Agency, Indonesia's
financial markets regulator.

Dia Holdings asked other minority shareholders who share its view
about the tender offer obligation to contact its appointed lawyers,
whose contact details were also published in the advertisement.

Phelps Dodge is buying Inco Ltd and Falconbridge Ltd to make it the
world's largest nickel producer and largest publicly traded copper
producer.

Separately, PT Inco said in a statement to the Jakarta Stock Exchange
that Bapepam's regulations about tender offer requirements can not be
applied in this case because there is no acquisition involved.

"We understand that there is no acquisition plan on PT Inco or part of
its shares and that Inco Ltd will continue to exist as our controlling
shareholder," it said.

It said under the transaction plan, Inco Ltd purchases all shares of
Falconbridge, then it will combine or "amalgamate" with the Canadian
subsidiary of Phelps Dodge, thus Inco Ltd shareholders will become
shareholders of the parent firm Phelps Dodge, which owns the
amalgamated company.

The statement said there will be no single surviving company or one
whose existence is terminated but rather both will survive after the
transaction, which, under Canadian law, means "the legal entity owning
the shares of PT Inco is the same."

Inco Ltd owns approximately 60.80 pct of PT Inco while Sumitomo Metal
Mining holds 20.09 pct. The investing public owns the remaining 
19.11 pct.

--------------------------------------------------------------------

Indonesia PLN Names UBS Underwriter For USD Islamic Bonds

JAKARTA, July 4 (Dow Jones)--Indonesia's state-owned power company PT
Perusahaan Listrik Negara, or PLN, has named UBS Securities as the
lead underwriter for its planned dollar-denominated Islamic bonds, an
official with the company said Wednesday.

PLN's acting President Director Djuanda Nugraha Ibrahim told Dow Jones
Newswires that the company was planning to issue between $1 billion
and $1.5 billion of the Shariah-compliant bonds.

"I think the roadshow will be in the Middle East," Ibrahim said when
asked where they will market the bonds.

He declined to say when they will start marketing the bonds. He said
only that the company hopes to raise the funds before it signs, with
other investors, power project contracts worth $8.6 billion, scheduled
for September.

The company will contribute about 20% of the total for power projects
across the country to overcome power shortages.

PLN's bonds will be Indonesia's first dollar-denominated Islamic
bonds. The sale is expected to open the door for similar offerings by
other Indonesian issuers in the future to tap the large pool of funds
from the petroleum-rich Middle East.

The government legally is still not allowed to issue Shariah-compliant
bonds, but it is seeking to change the regulation as it is also
interested in tapping the Islamic-funds market.

------------------------------------------------------------------

Gas Matters Today Asia
July 5, 2006

Kalimantan-Java pipeline could halve Bontang plant's LNG production

The 1,219 km gas transmission pipeline between East Kalimantan and
Central Java could spell further doom for Indonesia's dwindling gas
exports by hitting LNG production at the Bontang liquefaction plant.

According to a gas expert in Indonesia, LNG production at the Bontang
plant could fall to nearly half its current volume from 2009-2010
because of use of the new pipeline. Bontang is already faltering to
meet its annual production commitment due to a shortfall in gas
supplies from the ageing gas fields operated by Total, Chevron and
Vico Indonesia.

The government will dedicate a significant volume of natural gas
produced from the three producing blocks in East Kalimantan, which is
currently supplied to Bontang, for the pipeline to meet the gas
shortage in Central Java (see GMTA July 3).

Last year the plant supplied 334 LNG cargoes, short of its commitment
for 376, and this year it is likely to produce only 304 cargoes. Alief
Bachtiar, chief of Badak NGL's labour union, has said that the East
Kalimantan-Central Java pipeline would create gas shortages for the
eight-train liquefaction plant, which will result in the shutdown of
four trains.

Upstream regulator BP Migas, which is also involved in LNG governance,
has already pointed out that the pipeline could result in the country
having to sacrifice LNG exports.

The pipeline is expected to be operational by 2009 and will have a
throughput capacity of 20-28 MMcm/d.

-----------------------------------------------------------------

Indonesia's Aneka Tambang Cuts 2006 Nickel Output Target

JAKARTA, July 5 (Dow Jones) -- Indonesian gold and nickel miner Aneka
Tambang (ANTM.JK) has reduced its 2006 production target for nickel
derived from ferronickel to between 13,000 and 16,000 metric tons from
an original forecast of 19,000 tons, the company said in a statement
issued Wednesday.

The production target reduction is due to a planned shutdown of around
three months to fix a leak in the company's new FeNi III smelter, the
statement said.

"Because of the shutdown, Antam's 2006 production for nickel contained
in ferronickel will be lowered to around 13,000-16,000 tons from the
target of 19,000 tons, although it is still too early in the
investigation to determine exactly what amount," the statement said,
without elaborating.

In 2005, the company's nickel sales volume increased 19.0% to 3.03
million tons. The Indonesian government owns 65.0% of Aneka Tambang.

-----------------------------------------------------------------

Seadrill Signs $26.3M Deal With Premier Natuna Sea

Edited Press Release

STOCKHOLM, July 3 (Dow Jones)--Norwegian offshore services contractor
Seadrill ASA (SDRL.OS) Monday said it has signed a contract worth
$26.3 million with Premier Natuna Sea BV in Indonesia for the use of
the jackup Seadrill 5.

The assignment is for five wells offshore Indonesia and commencement
is scheduled for May 2007 in direct continuation of the rig's current
commitments with APD.

The duration of the contract is estimated at 135 days.

Corrected July 3, 2006 8:22 ET (1222 GMT) [ 03-07-06 1056GMT ]

The assignment is for five wells offshore Indonesia and commencement
is scheduled for May 2007 in direct continuation of the rig's current
commitments with APD.

-------------------------------------------------------------

Indonesia Press: Energy Min Wants Geothermal Taxes Removed

JAKARTA, July 5 (Dow Jones)--Indonesia's Ministry of Energy and
Mineral Resources will propose to the Finance Ministry that geothermal
projects be exempt from all taxes to spur investment in the sector,
Bisnis Indonesia reported Monday.

"This (tax exemption) is something that we want to negotiate with the
Finance Ministry," Sugiharto, director of the ministry's geothermal
department, was quoted as saying.

Sugiharto, who has goes by one name, also said the government will
soon issue new rules on geothermal energy to improve regulatory
certainty.

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Platts Commodity News
July 4, 2006

Kalimantan Gold to raise $2.3 million for Indonesia gold project

Canada-listed Kalimantan Gold Corp. plans to raise up to C$2.5 million
($2.3 million) from a non-brokered private placement financing from
the sale of up to 12.5 million units at a price of C$0.20/unit, the
company said Wednesday.

Each unit will consist of one common share and one common share
purchase warrant. Each warrant will be exercisable for two years from
the date of closing for the purchase of one common share at a price of
C$0.30/share.

The company will use the proceeds of the private placement to fund a
4,000 m drill program at the Jelai Mewet gold prospect (in its project
Central Kalimantan, Indonesia), an independent data and compilation
review of the exploration work, pre-admission costs to the AIM
Exchange in London and general corporate working capital.

Kalimantan Gold has exploration rights over two distinct areas in
Kalimantan, Indonesia, a country which hosts of two of the largest and
lowest cost porphyry copper-gold deposits in the world. The company
believes that any one of the six porphyry copper-gold prospects
identified in its 75% owned KSK Contract of Work in Central Kalimantan
has the potential to become another world-class deposit. The company
also believes its 100% owned Jelai Mewet prospect in East Kalimantan,
which it plans to drill, has the potential to yield a major epithermal
gold-silver deposit.

-------------------------------------------------------------

Kobe Steel aims to turn low-grade coal into viable energy source

TOKYO, July 5 (Kyodo News)-- Kobe Steel Ltd. said Wednesday it has
begun a $70 million trial project in Indonesia to utilize low-grade
coal as a viable energy source for power generation.

A demonstration plant will be set up in fiscal 2007 to process 600
tons of coal per day for two years, the major Japanese steelmaker
said.

The company will aim to build a commercial production plant in fiscal 2010.

Kobe Steel has partnered with Indonesian natural resources investment
firm PT. Bumi Resources Tbk and its subsidiary PT. Arutmin Indonesia
to construct and operate the demonstration plant in southern
Kalimantan, it said.

The project has the support of Japan's Ministry of Economy, Trade and
Industry through the Japan Coal Energy Center, a METI-affiliated
nonprofit organization, the company said. Kobe Steel is a member of
the organization.

Low-grade coal such as brown coal has high water content and low heat
value, and sometimes ignites of its own. Such drawbacks do not make it
suitable for practical use.

Through the project, the company aims to raise the heat value of brown
coal 50 percent to the same level as high-grade bituminous coal, while
making it less combustible, Kobe Steel said.

The upgraded coal will also produce about 66 percent fewer ashes than
bituminous coal, it said.

-----------------------------------------------------------------

Italy's Saipem wins two contracts worth $530 mln

MILAN, July 5 (Reuters) - Italian oilfield services company Saipem has
won two charter contracts for offshore drilling rigs totalling $530
million, the company said on Wednesday.

Italian oil company Eni will use the Scarabeo 7 semi-submersible rig
off Indonesia for three years starting in the first quarter of 2008,
Saipem said.

Canada's Addax Petroleum Corp will hire the semi-submersible Scarabeo
3 to use off the Nigerian coast for a year starting in the second
quarter of next year.

Saipem is 43 percent owned by Eni.

Saipem shares were down 1.57 percent at 17.60 euros at 1330 GMT, while
the benchmark S&P/MIB index .<SPMIB> was down 0.97 percent.

------------------------------------------------------------------------

Mitsui Oil Exploration To Spend Y100B On Oil Stake Buys

TOKYO, July 4 (Dow Jones)--Mitsui Oil Exploration Co. plans to spend
Y100 billion over the next three financial years until March 2009 to
acquire stakes in overseas oil fields, a company spokesman said
Wednesday.

The government has a 20.03% stake in Mitsui Oil Exploration, and the
investment decision is widely seen as part of Japan's efforts to
secure future supplies of oil for the country. Japan imports almost
all of its energy needs.

Major trading house Mitsui & Co. (8031.TO) has a 47.35% interest in
Mitsui Oil Exploration, while the remaining 32.62% share is held by
about two dozen companies, including Japanese oil refiners.

According to the spokesman, Mitsui Oil Exploration seeks to increase
its crude output to more than 100,000 barrels a day in fiscal 2008 and
to about 150,000 b/d in fiscal 2011, from about 80,000 b/d currently.

To meet the goal, Mitsui Oil Exploration plans to acquire stakes in
oil fields that are already in production in the U.S. and Southeast
Asia, where the company believes the supply of such stakes are more
readily available.

Mitsui Oil Exploration currently owns oil reserves equivalent to
nearly 800 million barrels. With new reserves acquired with the Y100
billion investment, reserves will rise to nearly 900 million barrels
in 2008 and to 1 billion barrels in 2011.

Mitsui Oil Exploration plans to spend an additional Y75 billion
between now and the end of fiscal 2008 to raise output at various oil
projects that are already in production. Another Y25 billion will be
used to develop its oil deposits in Thailand.

The spokesman declined to elaborate on these planned investments.

Mitsui Oil Exploration currently owns stakes in projects in Southeast
Asia, the Middle East and Australia. It produces crude oil in
Thailand, Oman and Indonesia.

Meantime, Mitsui & Co., looking to enhance its energy business, plans
to increase its stake in Mitsui Oil Exploration to 50.34% by the end
of the current fiscal year.

------------------------------------------------------------

Indonesia turns to Jathropa Curcas plant fro bio-fuel

BANDUNG, W Java, July 3 (Asia Pulse/Antara) - Indonesian Cooperatives
Board (Dekopin) Chairman Adi Sasono said Dekopin would build jatropha
curcas oil processing factories in an effort to produce an energy
source that can replace fossil fuel oils.

"We are considering the building of jatropha curcas oil factories for
instance in Sukabumi, West Java, which is near Jakarta," Adi Sasono
said here on Monday.

He said Jakarta needed some 1,000 tons of fuel oil per day so that it
would be better if the jatropha curcas oil factory was set up near
Jakarta.

He said jatropha curcas oil production had huge potential as its is
cheap at Rp4,000 per liter, compared to Rp6,300 at liter for diesel
oil.

Besides, he said, Pekalongan (Central Java) needed some 2,500 tons of
fuel oil per day while state electricity company PLN required some six
million kiloliters of fuel oil per annum.

This meant that to provide jatropha curcas oil as an alternative
energy, about 2.4 million hectares of land would be needed to
cultivate the jatropha curcas plant.

He said the use of jatropha curcas plants to produce bio-fuel could
improve the welfare of the Indonesians.

-----------------------------------

Petromindo Headlines, Wed., July 5, 2006

Oil/Gas: 

- German's Oiltanking Banten oil storage expected
  to commence ops 2008
- Italy's Saipem awarded two new offshore drilling 
  contracts
- Purnomo installs new senior officials at the ministry
- Six named suspects in Lapindo's accident
- Two investors plan two oil refineries in Lombok
 
Mining: 

- Antam cuts 2006 ferronickel production outlook
- Kobe Steel begins low-grade coal trial project
- Berau Coal achieves record output in Q2
- Govt confident of winning Buyat case
- Kalimantan Gold to raise fund for exploration
 
Power: 

- PLN's Anyer power plant project stalled on lack 
  of gas supply
 
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Joyo Indonesia News Service
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