"Oil Majors Need Closer Ties with State-Owned Firms"--Daily Star

[Gloria]

From the new World Media Watch up now at http://www.zianet.com/insightanalytical
Tomorrow at Buzzflash.com


5//The Daily Star, Lebanon Friday, September 02, 2005

http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=18150



‘OIL MAJORS NEED CLOSER TIES WITH STATE-OWNED FIRMS’

THE HAGUE: Western oil majors, struggling to find new reserves, should seek closer cooperation with state-owned companies in oil producing countries or embark on acquisitions to replace the crude they pump each year, analysts told an energy conference.



"The challenge for super majors to increase their reserve replacement ratio is daunting," said Jeffrey Waterous, nonexecutive chairman of oil and gas mergers and acquisitions consulting firm Scotia Waterous, adding: "They are under enormous pressure from shareholders and investors to find new reserves."



"Seven billion barrels have to be replaced this year. ... But we haven't seen any major new discoveries so far. In the remaining months we may see some acquisitions because the drills are not performing," Waterous told the conference.



SNIP



The world's biggest reserves are controlled by Middle Eastern states that restrict access to their reserves and their own national oil companies, threatening the international majors' dominance of the oil industry.



SNIP



"National oil firms and their governments in the Mideast, Africa and the Caspian region are in the driving seat today, not the super majors," said Waterous.



(MORE)