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 March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

RS at SEA JAPAN 2014

Russian Maritime Register of Shipping (RS) was the only Russian company to take part in SEA JAPAN 2014 exhibition and conference – one of the major exhibitions of the maritime industry.

Reports: Brazilian Tycoon Batista Investigated For Financial Crimes

Brazils federal police have opened an investigation into former billionaire Eike Batista for financial crimes, including insider trading, manipulation of markets and money laundering,

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Offshore

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.1194 sec (8 req/sec)