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ENERGY TECH
US unveils offshore oil, gas plan in energy push
by Staff Writers
Washington (AFP) Jan 26, 2012


The United States announced Thursday that it intends to auction off a giant part of the central Gulf of Mexico for oil and gas exploration, in a move to reinvigorate government energy policy.

The White House said the lease sale of nearly 38 million acres (153,000 square kilometers) was "part of the president's blueprint for a secure energy future," and would take place in New Orleans on June 20.

Obama's stance on energy development has come under pressure in the wake of his rejection of a $7 billion plan to extend the Keystone pipeline that runs between the United States and Canada.

Republicans see a political winner in attacks related to Keystone XL and are likely to hound Obama up until the November 2012 elections, citing his refusal as a government sop to environmentalists at the cost of much-needed US jobs.

Obama was expected to discuss the announcement in Nevada later Thursday, the White House said in a statement, noting that the sale includes all available unleased areas in the central area of offshore Louisiana, Mississippi and Alabama.

"This is one of many steps that the administration is taking, at the president's direction, to increase responsible domestic production and reduce dependence on foreign oil," it said.

Secretary of the Interior Ken Salazar echoed the White House's sentiments.

"The president has made it clear that developing our domestic oil and gas resources is a significant part of this administration's efforts to grow our economy and create jobs," he said.

"This lease sale is part of our commitment to safe and responsible development of the outer continental shelf," he added.

The central Gulf of Mexico contains close to 31 billion barrels of oil and 134 trillion cubic feet of natural gas that are currently undiscovered and technically recoverable, according to US government estimates.

The Gulf of Mexico was devastated in April 2010 when an explosion at the Deepwater Horizon rig killed 11 people, and the Macondo well gushed oil into the ocean for 87 days, blackening the southern US shoreline and crippling the local tourism and fishing sectors.

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BP must cover some of rig owner's Gulf liability: judge
Chicago (AFP) Jan 26, 2012 - BP is required to cover some -- but not all -- of rig owner Transocean's liabilities for the massive 2010 oil spill in the Gulf of Mexico, a US judge ruled Thursday.

The mixed ruling found that BP must indemnify the rig operator from "compensatory damages" related to the spill even if the claims are the result of Transocean's negligence.

But BP does not need to cover any punitive damages or civil penalties that may be assessed, nor is it responsible for covering the costs of Transocean's legal fees, Judge Carl Barbier wrote.

"The court defers ruling on BP's arguments that Transocean breached the drilling contract or committed an act that materially increased BP's risk or prejudiced its rights."

Barbier stipulated that he has not expressed an opinion "as to whether Transocean will be held strictly liable, negligent, or grossly negligent" for the disaster or whether Transocean will be liable for punitive damages or civil penalties.

BP posted a $40 billion charge to cover the cost of the massive cleanup, compensation to fishermen and others affected by the spill and various government fines.

It has been locked in legal battles with Transocean and Halliburton -- which was responsible for the runaway well's faulty cement job -- in order to shift some of the costs to its subcontractors.

Various government probes have spread the blame for the massive spill.

The explosion at the Deepwater Horizon rig on April 20, 2010, killed 11 people, and the Macondo well gushed oil into the ocean for 87 days, blackening the southern US shoreline and crippling the local tourism and fishing sectors.

By the time the well was capped, 4.9 million barrels (206 million gallons) of oil had spilled out of the runaway well 5,000 feet (1,500 meters) below the surface of the Gulf of Mexico.



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ENERGY TECH
China increases stake in Australia LNG
Brisbane, Australia (UPI) Jan 25, 2012
Chinese oil giant Sinopec has finalized a $1.1 billion deal to increase supply and raise its equity in the Australia-Pacific LNG project in Queensland. The binding agreement seals an agreement announced last month between APLNG and state-owned Sinopec for the $20 billion project, led by Houston company ConocoPhillips and Australia's Origin Energy and builds on an April 2011 agreement. / ... read more


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