The program director for the Energy and Mineral Resources Ministry’s oil and gas directorate general, Naryanto Wagimin, said the company had submitted a letter to acting Energy and Mineral Resources Minister Chairul Tanjung requesting the postponement.
“The company is planning to revise its calculations on the project, following the discovery of a new gas reserve, which has increased the project’s monetizing value,” Naryanto told The Jakarta Post on Monday.
Naryanto said Chevron required time to revise their plan of development (POD) before moving ahead with the project. He estimated the project would begin one year later than previously planned.
“God willing, they will be able to submit the concept by the end of this year,” he said. “Otherwise, it will disrupt the domestic supply of gas in coming years.”
Chevron obtained approval in 2008 for a POD for the $12 billion-project, the nation’s first deep water gas project.
The project involves four production sharing contracts (PSCs) for Ganal, Rapak, the Makassar Strait and Muara Bakau, with five gas fields: Bangka, Gehem, Gendalo, Maha and Gandang.
The Bangka field was initially scheduled to begin production in 2016, followed by the Gehem and Gendalo fields in 2018.
Total production from the four PSCs is expected to reach more than 1,000 million standard cubic feet per day (mmscfd) of gas, with total gas reserves of 2.3 trillion cubic feet.
The government is currently trying to persuade oil and gas companies to explore the eastern part of the country.
Wagimin previously said that if there was no significant improvement to supplies within the next few years, Indonesia, once the world’s largest liquefied natural gas (LNG) producer, would become a net importer as of 2020.
The country is estimated to have 104 trillion standard cubic feet (tscf) in proven and 48 tscf in potential gas reserves, making it the 13th-largest owner of proven natural gas reserves in the world and the second-largest in Asia Pacific after China, according to the International Energy Agency.
Gas production in 2013 reached 6,869 mmscfd, 52 percent of which was sold overseas, according to figures from the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).
Chevron had previously pushed the government to assist the project, which had been held up by permit issues, threatening to allocate its $12 billion budget for a deep water drilling project in another country with fewer obstacles.
Chevron discovers new gas reserves, seeks time to revise calculations: Ministry
If the project sinks, it will disrupt domestic gas supplies in the future
Chevron asked the government to extend the period of the Makassar Strait PSC from 2020 to 2028, to match the three other PSCs, which expire in 2028.
SKKMigas acting head Johanes Widjonarko said separately that Chevron, along with the task force, was conducting a technical study regarding Chevron’s proposal to revise its POD.
“Chevron is planning to revise the POD, referring to an increase in technical costs [due to the additional gas reserves],” Johanes said, adding that he had no idea whether the investment would go beyond $12 billion after the revision.
Representatives from Chevron, however, could not be reached for comment on the matter.
Chevron Pacific Indonesia’s vice president for strategic business support, Yanto Sianipar, told kontan.co.id over the weekend that the letter submitted to the ministry was not related to the request to postpone the project.
He said the letter merely provided an update on recent developments regarding the IDD project.
“There are a lot of things that Chevron can’t explain as yet,” Yanto said.
Gapping up
In reaction to strong earnings/guidance: QTM +13.7%, SWKS +7.6%, DFRG +7%, DPZ +3%, TC +2.6%, JNJ +1.4%, C +1.1%, HSON +0.5%
M&A news: CSX +0.9% (WSJ discusses that Canadian Pacific (CP) merger with CSX is still possible, while Reuters piece is cautious on the merger, initiated with a Buy at UBS)
Select Ebola related names showing strength: NLNK +8.3%, NNVC +5%, INO +4.6%, HEB +2.7%, SRPT +1.5%
Other news: SMED +8.1% (cont vol), GALE +7% (receives notice of allowance of improvement patent for NeuVax (nelipepimut-S) in Japan), LAKE +6.9% (following 45% move higher yesterday with ongoing Ebola concerns), APT +5.8% (following 35% move higher yesterday with ongoing Ebola concerns), PBMD +5.1% (disclosed that Immutep received a Notice of Allowance from Australian Patent Office for Patent Application AU 2008306576), HZNP +4.9% (co reviewed opportunities for ACTIMMUNE: potential for $500 mln or greater in peak annual sales if approved by the FDA for Friedreich's Ataxia), SUNE +4% (amends letter of credit facility to $800 mln USD for credit commitments and future increases), JRJC +2.6% (releases enhanced mobile application), MBLY +2.1% (still checking), MU +1.9% (Samsung Elect CEO downplayed fears of increased competition in chip space after co last week announced plans for new factory, which took down Micron last wk), RIO +1.8% (may be in sympathy after BHP upgrade), SDRL +1.5% (still checking), DRYS +1.4% (modest pull back following yest's 17% slide), YHOO +1.4% (may be related to Alibaba (BABA) upgrade),PCRX +1.1% (announces additional data supporting safety of EXPAREL in peripheral nerve block)
Analyst comments: BHP +1.9% (upgraded to Neutral from Underperform at Credit Suisse), ETN +1.3% (upgraded to Overweight from Equal Weight at Barclays), VOD +0.8% (initiated with a Buy at Deutsche Bank), EOG +0.7% (upgraded to Outperform from Mkt Perform at Bernstein), AAPL +0.7% (target raised to $110 from $96 at Credit Suisse
)
In reaction to strong earnings/guidance: QTM +13.7%, SWKS +7.6%, DFRG +7%, DPZ +3%, TC +2.6%, JNJ +1.4%, C +1.1%, HSON +0.5%
M&A news: CSX +0.9% (WSJ discusses that Canadian Pacific (CP) merger with CSX is still possible, while Reuters piece is cautious on the merger, initiated with a Buy at UBS)
Select Ebola related names showing strength: NLNK +8.3%, NNVC +5%, INO +4.6%, HEB +2.7%, SRPT +1.5%
Other news: SMED +8.1% (cont vol), GALE +7% (receives notice of allowance of improvement patent for NeuVax (nelipepimut-S) in Japan), LAKE +6.9% (following 45% move higher yesterday with ongoing Ebola concerns), APT +5.8% (following 35% move higher yesterday with ongoing Ebola concerns), PBMD +5.1% (disclosed that Immutep received a Notice of Allowance from Australian Patent Office for Patent Application AU 2008306576), HZNP +4.9% (co reviewed opportunities for ACTIMMUNE: potential for $500 mln or greater in peak annual sales if approved by the FDA for Friedreich's Ataxia), SUNE +4% (amends letter of credit facility to $800 mln USD for credit commitments and future increases), JRJC +2.6% (releases enhanced mobile application), MBLY +2.1% (still checking), MU +1.9% (Samsung Elect CEO downplayed fears of increased competition in chip space after co last week announced plans for new factory, which took down Micron last wk), RIO +1.8% (may be in sympathy after BHP upgrade), SDRL +1.5% (still checking), DRYS +1.4% (modest pull back following yest's 17% slide), YHOO +1.4% (may be related to Alibaba (BABA) upgrade),PCRX +1.1% (announces additional data supporting safety of EXPAREL in peripheral nerve block)
Analyst comments: BHP +1.9% (upgraded to Neutral from Underperform at Credit Suisse), ETN +1.3% (upgraded to Overweight from Equal Weight at Barclays), VOD +0.8% (initiated with a Buy at Deutsche Bank), EOG +0.7% (upgraded to Outperform from Mkt Perform at Bernstein), AAPL +0.7% (target raised to $110 from $96 at Credit Suisse
)
Gapping down
In reaction to disappointing earnings/guidance: WWW -2.6%, UEC -0.9%, JPM -0.8%, NEPT -0.6%, EXAC -0.4%, WFC -0.4%
Other news: NSPH -22.8% (pulling back after yest's 78% advance), CDXS -4.8% (late move higher on speculation of name as Ebola play), EXAS -3.3% (modest pullback following recent advance), AMD -2.6% (not seeing any catalysts to directly account for the move; heavy put volume observed during today's session), MGM -1.1% (may be in sympathy with peers LVS and WYNN dg's),SHPG -0.9% (may be related to Ireland tax rule changes), SIG -0.8% (CEO resigns from co)
Analyst comments: WYNN -1.6% (downgraded to Neutral from Buy at BofA/Merrill), CI -0.8% (downgraded to Neutral from Buy at Sterne Agee), TYC -0.7% (downgraded to Equal Weight from Overweight at Barclays), GT -0.6% (target lowered to $31 from $36 at Goldman; removed from Conviction Buy list), LVS -0.6% (downgraded to Neutral from Buy at BofA/Merrill), FAST -0.6% (downgraded to Neutral from Positive at Susquehanna), JCI -0.5% (downgraded to Market Perform from Outperform at Wells Fargo), ENOC -0.5% (downgraded to Neutral from Overweight at JP Morgan), LEA -0.5% (downgraded to Neutral from Buy at Goldman), HD -0.4% (downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey)
In reaction to disappointing earnings/guidance: WWW -2.6%, UEC -0.9%, JPM -0.8%, NEPT -0.6%, EXAC -0.4%, WFC -0.4%
Other news: NSPH -22.8% (pulling back after yest's 78% advance), CDXS -4.8% (late move higher on speculation of name as Ebola play), EXAS -3.3% (modest pullback following recent advance), AMD -2.6% (not seeing any catalysts to directly account for the move; heavy put volume observed during today's session), MGM -1.1% (may be in sympathy with peers LVS and WYNN dg's),SHPG -0.9% (may be related to Ireland tax rule changes), SIG -0.8% (CEO resigns from co)
Analyst comments: WYNN -1.6% (downgraded to Neutral from Buy at BofA/Merrill), CI -0.8% (downgraded to Neutral from Buy at Sterne Agee), TYC -0.7% (downgraded to Equal Weight from Overweight at Barclays), GT -0.6% (target lowered to $31 from $36 at Goldman; removed from Conviction Buy list), LVS -0.6% (downgraded to Neutral from Buy at BofA/Merrill), FAST -0.6% (downgraded to Neutral from Positive at Susquehanna), JCI -0.5% (downgraded to Market Perform from Outperform at Wells Fargo), ENOC -0.5% (downgraded to Neutral from Overweight at JP Morgan), LEA -0.5% (downgraded to Neutral from Buy at Goldman), HD -0.4% (downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey)
Airbus CEO Disparages German Defense Policy in Cicero Interview
2014-10-14 12:25:27.148 GMT
By Richard Weiss
Oct. 14 (Bloomberg) -- German defense capabilities as they
stand are the results of years of “dishonest” dealing between
defense industry and government, Airbus CEO Thomas Enders says
in excerpt of interview with Cicero magazine to be published on
Oct. 23.
* Airbus incurred EU4b in losses with A400M project; co.
wouldn’t sign such a contract with unrealistic budget and
time-line again
* Germany should put words to action when it comes to defense
capabilities, increase defense spending
* Defense ministry not talking enough to military end-users
* German Defense Ministry Sets Conditions for A400M:
Handelsblatt
* NOTE: Germany’s New Foreign Policy Means Same Old Reluctance
to Fight
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Richard Weiss in Frankfurt at +49-69-92041-287 or
rweiss5@bloomberg.net
To contact the editor responsible for this story:
Benedikt Kammel at +49-30-70010-6230 or
bkammel@bloomberg.net
2014-10-14 12:25:27.148 GMT
By Richard Weiss
Oct. 14 (Bloomberg) -- German defense capabilities as they
stand are the results of years of “dishonest” dealing between
defense industry and government, Airbus CEO Thomas Enders says
in excerpt of interview with Cicero magazine to be published on
Oct. 23.
* Airbus incurred EU4b in losses with A400M project; co.
wouldn’t sign such a contract with unrealistic budget and
time-line again
* Germany should put words to action when it comes to defense
capabilities, increase defense spending
* Defense ministry not talking enough to military end-users
* German Defense Ministry Sets Conditions for A400M:
Handelsblatt
* NOTE: Germany’s New Foreign Policy Means Same Old Reluctance
to Fight
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Richard Weiss in Frankfurt at +49-69-92041-287 or
rweiss5@bloomberg.net
To contact the editor responsible for this story:
Benedikt Kammel at +49-30-70010-6230 or
bkammel@bloomberg.net
(WHO): Have seen slowing down of new ebola cases in some of the worst hit areas of Western Africa
BABA - UBS Initiates BABA with Buy, price target: $100 - Firm remains very positive on the company's near-term and long-term prospects within eCommerce and global Internet servic
*CITIGROUP 3Q ADJ. EPS $1.15, EST. $1.12
*CITIGROUP TO EXIT 11 CONSUMER-BANKING MARKETS WORLDWIDE
--> JNJ +1.47% Pre-Open 16k traded
Johnson & Johnson beats by $0.06, reports revs in-line; raises FY14 EPS above consensus
Reports Q3 (Sep) earnings of $1.50 per share, $0.06 better than the Capital IQ Consensus of $1.44; revenues rose 5.1% year/year to $18.47 bln vs the $18.41 bln consensus.
- Operational results increased 5.8% and the negative impact of currency was 0.7%. Domestic sales increased 11.6%. International sales decreased 0.3%, reflecting operational growth of 1.0% and a negative currency impact of 1.3%.
- During the quarter the Company completed the divestiture of the Ortho-Clinical Diagnostics business. Worldwide, domestic and international operational sales growth, excluding the impact of this divestiture, was 8.4%; 14.8% and 3.1% respectively.
- Worldwide Consumer sales of $3.6 billion for the third quarter represented a decrease of 0.6% versus the prior year consisting of an operational increase of 0.3% and a negative impact from currency of 0.9%.
- Worldwide Pharmaceutical sales of $8.3 billion for the third quarter represented an increase of 18.1% versus the prior year with operational growth of 18.7% and a negative impact from currency of 0.6%.
- Worldwide Medical Devices and Diagnostics sales of $6.6 billion for the third quarter represented a decrease of 5.2% versus the prior year consisting of an operational decrease of 4.6% and a negative currency impact of 0.6%.
Domino's Pizza beats by $0.02, beats on revs
Reports Q3 (Sep) earnings of $0.63 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus Estimate of $0.61; revenues rose 10.5% year/year to $446.6 mln vs the $434.06 mln consensus, due primarily to higher supply chain revenues from increased volumes in the supply chain centers and elevated commodity prices, specifically cheese, as well as increased sales of equipment and supplies to stores as our store reimaging program accelerates.
- Domestic comps +7.7%; International +7.1% (ex-FX)
- Additionally, sales and store growth contributed to increased revenues in all business segments.
- During Q3, the Company repurchased and retired 242,700 shares of its common stock under its open market share repurchase program for ~$17.4 million, or an average price of $71.69 per share.