Government, Oil Majors Discuss Royalties

Friday, June 23, 2006
Several major oil companies are apparently willing to discuss a change in their offshore-drilling leases that, because of a government error, could give the industry a $10 billion windfall, AP reported While some companies, such as Exxon Mobil, reportedly believe the lease contracts should be honored, others, including Shell, reportedly are open to a dialogue on the matter. The error in the 1998-99 lease contracts for deepwater drilling in the Gulf of Mexico could cost the government $10 billion in lost royalty payments given the current price of crude oil and natural gas, according to an analysis by the Government Accountability Office, Congress' auditing agency. The drilling-lease contracts, issued at a time when oil and gas prices were low, allowed leaseholders to avoid royalty payments as a way to spur drilling in the deep waters of the Gulf. But they also were supposed to have language that the royalty relief would end if oil prices exceeded a certain level. That language was omitted from the leases. Since then, prices have soared to more than double what had traditionally been the royalty trigger. (Source: AP)
Maritime Reporter November 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

ClassNK Registered Al Kout Delivered to KOTC

Leading classification society ClassNK announced that it has completed work on the 165,178GT VLCC Al Kout, built by Daewoo Shipbuilding & Marine Engineering Co.

Royal IHC Bags Dredging Package Order

Royal IHC (IHC) has secured a new contract with the Chinese shipyard, Jin Hai Heavy Industrial Group, for the delivery of a dredging installation package for a trailing suction hopper dredger.

Equinox Class Scrubber Systems Receive Certification

Algoma Central Corporation (“Algoma”), the largest Canadian shipowner and operator of domestic Great Lakes vessels announces that it has received all requisite

Offshore

Tugboat Crew Missing After Collision

Five members of a tugboat crew are missing after a collision with a merchant ship about 9NM off Tanjung Gelang yesterday (30 October). One crew member was rescued by fishermen.

Royal IHC Bags Dredging Package Order

Royal IHC (IHC) has secured a new contract with the Chinese shipyard, Jin Hai Heavy Industrial Group, for the delivery of a dredging installation package for a trailing suction hopper dredger.

U.S. Drillers Cut Rigs to Lowest since August

Energy companies have reduced the number of rigs drilling for oil in the United States to the lowest since August, shifting more rigs in favor of natural gas as crude prices dive,

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1783 sec (6 req/sec)