The US Dollar has weakened on growing concerns that middle east Gulf Oil trading countries might opt for a basket of currencies instead of US Dollar. This is based on a supposedly secret meeting of the oil trading countries with the officials outside the region to discuss dropping the dollar for oil trade. A change from dollar to other currencies has both economic and political aspect; it is less likely that this would happen quickly as there is lack of consensus on econo-political issues such as the Gulf Monetary Union. Continue reading Is US Dollar Losing Steam as Global Currency for Oil Trade?
Category Archives: World
Thousands feared dead in Sumatra Indonesia Earthquake
Indonesia: A series of earthquakes have kept Indonesian cities, in west Sumatra, including the capital Padang distressed. The first one measuring 7.6 in magnitude (Richter Scale) had struck on Wednesday following which there were dozens of quakes a major one measuring 6.8. The amount of destruction have been huge; houses and building have collapsed and there are power and phone outages. The toll, which is already above 400, could rise to above 1000 as the scale and spread is bigger than previously felt earthquakes. There is high possibility of consequent volcanic eruptions as there are 3 major active volcanoes in the region, earlier intense earthquakes have had similar consequences. The government operations are running in full swing; there was a greater preparedness in the region as these quakes are a common phenomenon.
Our View: The death toll could be lower than what was experienced in 2006 ‘Yogyakarta earthquake’ thought this time the earthquake was more intense and wide spread. The death toll could rise further if the volcanic activity increases and the people are not rescued in time from both quake and volcanic eruptions.
Link: http://timesofindia.indiatimes.com/news/world/rest-of-world/Thousands-feared-dead-in-Indonesia-quake/articleshow/5074634.cms
http://edition.cnn.com/2009/WORLD/asiapcf/09/30/indonesia.earthquake/
ONGC Videsh updates from Middle East
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is likely to invest .45 billion in an oil block in Iraq that was awarded to it by the erstwhile Saddam Hussein regime.
“The service exploration and production contract for Block-8 have been concluded and the agreement is likely to be signed in the next couple of months,” an official said.
Block-8, located in the western desert in southern Iraq bordering Saudi Arabia, was awarded to OVL in November 2000 by the then Saddam Hussein government. However, the government formed after the US invasion of the oil-rich country, sought re-negotiation of the contract which has now been concluded. The block already has a discovery and is estimated to hold 645 million barrels of reserves, of which 54 million are recoverable, he said adding OVL has committed investing million in two phases of explo ration and .45 billion in development of the reserves thereafter.
The contract would be a service contract wherein OVL will be paid about 18 per cent rate of return on its investment. The official said OVL was also considering bidding for the six producing oilfields Iraq has put on offer in its first licensing auction.
The official said Iraqi law allows foreign firms to hold a maximum of 75 per cent stake in the oilfields put on offer. The six producing oil fields on offer are: Kirkuk and Bai Hassan in the north, North and South Rumaila, West Qurna-I, Zubair and the three Meissan fields in the south. Besides, two gas fields — Akas in the western Anbar desert and the Mansooriya field in northeast of Baghdad, are also on offer.