Total Produce Share Discussion Threads

[ariane] 27/1/2007 18:11

Russia to Prepare Bill Limiting Foreign Ownership Within Months

By Torrey Clark

Jan. 27 (Bloomberg) -- Russia will submit to parliament a bill that limits foreign ownership in strategic industries, such as oil, gas, metals and defense, in the ``coming months,'' Russia's First Deputy Prime Minister Dmitry Medvedev said today.

The bill will be ``clear, fully balanced and answer all questions that arise in daily practice,'' Medvedev said in a speech at the World Economic Forum in Davos today. ``The worst thing in business is opacity and unpredictability.''

President Vladimir Putin in May 2005 ordered the government to draft legislation spelling out restrictions on foreign ownership in industries that relate to state security, such as infrastructure, defense, the so-called natural monopolies of power and natural gas and strategic mineral resource deposits.

Russia has tightened its grip on its natural resource wealth, which underpins the country's economy. Last month, Royal Dutch Shell Plc and its partners agreed to sell a majority stake in the Sakhalin-2 oil and gas project in the Russian Far East to state-controlled OAO Gazprom. Sakhalin was the only major oil and gas project fully owned by foreign investors.

To contact the reporter on this story: Torrey Clark in Moscow at [e-mail] .

Last Updated: January 27, 2007 11:07 EST

[ariane] 27/1/2007 06:51

Jan. 26, 2007, 10:52PM
Crude prices increase as OPEC trims exports
Northeast's cold weather helps crude clear $55


By J.W. ELPHINSTONE
Associated Press

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NEW YORK - Oil prices rose more than $1 to settle above $55 a barrel Friday on concerns that producers were complying with OPEC's production cuts and on expectations of continued blustery weather in the Northeast.

Light, sweet crude for March delivery on the New York Mercantile Exchange rose $1.19 to settle at $55.42 a barrel. In a volatile week of trading, oil prices have climbed nearly 6.6 percent after dipping below $50 a barrel last week.

On the ICE Futures exchange in London, Brent crude settled at 55.29 a barrel, up $1.17.

Tank tracker Lloyds Marine Intelligence Unit said Friday that oil exports from the Organization of the Petroleum Exporting Countries fell to less than 23 million barrels a day in December from just under 24 million barrels a day in November, according to a Dow Jones newswire report.

Saudi Arabia, the world's largest crude oil producer and exporter, was the quickest to implement OPEC's production cuts; its exports in December were 1.1 million barrels a day lower than before the OPEC's October call for production cuts.

"The market has been concerned about the rate of OPEC compliance. Yesterday, it was worried compliance was bad. Today, it's worried that it's good," said Tim Evans, an energy analyst at Citigroup Global Markets. "Overall, the larger story is that OPEC production is declining."

Victor Shum, energy analyst with Purvin & Gertz in Singapore, also pointed out that prices are being propped up by cold weather in the U.S. and the announcement Tuesday that the U.S. government plans to double the size of its Strategic Petroleum Reserve.

"If you look at trading this week, the market has found some support above the $50-a-barrel price mark. It appears to have found a floor due to a number of factors," Shum said.

Natural gas settled at $7.175 per million British thermal units, up 27 cents, after plunging more than 51 cents on Thursday.

February heating oil futures gained more than 4 cents to settle at $1.5914 a gallon, while gasoline futures rose nearly 4 cents to settle at $1.4834 a gallon.

[waldron] 23/1/2007 12:17

Total oil project in Russia coveted by state-owned firm - press


MOSCOW (AFX) - An oil project in northern Russia, operated by the French
group Total and the target of criticism by Russian auditors, has attracted the
interest of authorities here who want the Russian public company Zarubejneft to
be given a stake, press reports said here today.
"Zarubejneft is going to participate in the Total project," said the
Kommersant newspaper, citing a source close to the matter.
"The fate of Sakhalkin-1 and Sakhalin-2 awaits the (Total-operated) Kharyaga
field."
The state-controlled Russian company Rosneft now has a 20 pct interest in
ExxonMobil's Sakhalin-1 energy project while another Russian state enterprise,
Gazprom, late last year took control of Sakhalin-2 from the Anglo-Dutch group
Shell.
The acquisition followed accusations against Shell of environmental
violations that were seen as pressure by the Russian state to ensure Gazprom's
participation.
Questioned by AFP, Total and Zarubejneft representative had no comment on
the Kommersant report.
The paper said the Kharyaga project is now the only energy sector
production-sharing operation in which Russian interests are less than 10 pct.
"That is why, as in Sakhalin-1 and Sakhalin-2, a large state company could
gain entry (into Kharyaga)," it added.
Total controls 50 pct of the field, the Norwegian group Norsk Hydro 40 pct
and local authorities 10 pct.
Russian authorities yesterday accused Total of violating the country's
environmental regulations in its exploitation at Kharyaga.

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afp/amb

[ariane] 19/1/2007 16:40

Oil continues to recover ahead of New York Feb contract expiry


LONDON (AFX) - Oil prices continued to recover with some level of indecision
setting in ahead of the expiry of the New York February contract on Monday.
Investors appear to still be considering whether to mount an attack on the
crucial 50 usd mark, analysts said.
At 4.13 pm GMT in London, Brent North Sea crude contracts for March delivery
rose 75 cents to 52.50 usd, after sinking 1.03 usd yesterday to close at 51.75
usd on news that US energy stocks had increased.
Meanwhile, front-month New York light sweet crude contracts for February
delivery were up 55 cents at 52.39 usd. Yesterday, the futures contract slumped
to 49.90 usd but bounced back above the psychological barrier by the close.
The March New York contract was up 60 cents to 53.26 usd.
"The bears haven't been too uncertain but the bulls are," said Alaron
analyst, Phil Flynn.
He believes that most of the news propping up oil prices has been fully
factored in, indicating that prices are likely to resume falls.
"The debate is whether the price goes down to 50 usd or 45 usd," said Phil
Flynn, Alaron analyst.
If the February contract closes above 51 usd, however, the price is unlikely
to get down to 45 usd, he added.
At the other end of the spectrum, there are still reasons helping underpin
oil prices.
Commenting on recent talk of colder weather in the US Northeast, Flynn said
some forecasters are saying a long winter is still possible.
"Private forecaster Accuweather for example is saying that the winter may
not end until March," noted Flynn.
Mike Fitzpatrick, an analyst at Fimat said unless the weather is out of the
ordinary, or geopolitical tensions erupt in producing regions, the path towards
the 46 usd to 48 usd level seems quite possible.
"This doesn't mean that the market must necessarily go there, but there is
little to prevent it from doing so," he warned, however.
Oil prices have dropped just under 20 pct since the start of the year as
mild winter temperatures weighed on demand for heating oil while adding to
stpckpile levels.
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[ariane] 19/1/2007 13:19

URGENT Oil flow resumes on Ukraine pipeline to Europe


KIEV (AFX) - Russian oil resumed flowing today through an export pipeline
via Ukraine to the European Union after electricity was restored to a pumping
station hit earlier by stormy weather, pipeline operator Ukrtransnafta said.
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[grupo guitarlumber] 19/1/2007 10:14

Irish Stock Exchange Russian oil pipeline to Europe via Ukraine cut off due to storms UPDATE


(Updating with quote)
KIEV (AFX) - A pipeline carrying Russian oil to the European Union via
Ukraine has been shut off after high winds forced the closure of a pumping
station, an official said.
"The Druzhba pipeline was cut off Thursday at 9:50 pm (1950 GMT)
because of problems with power supplies," a spokesman for pipeline
operator Ukrtransnafta, Oleksander Dikusarov, told Agence France-Presse.

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[ariane] 19/1/2007 06:32

The Times January 19, 2007


Growing stockpiles force oil below $50
Tom Bawden in New York



Crude oil plunged below $50 a barrel in New York for the first time since May 2005 after a new report showed a surge in US oil and fuel supplies.
The price of oil fell by more than 3 per cent to $49.90 a barrel in early afternoon trading before climbing back to end the day at $50.50.



The drop to $49.90 represented a 36 per cent decline on the record $78.40 a barrel on July 14, 2006, and was prompted by lower-than-expected demand for heating fuels because of the mild winters in the US and Europe.

As a result, US stockpiles of crude oil jumped by 6.77 million barrels to 321.5 million last week, far exceeding analysts' forecasts of a 325,000 barrel increase. Petrol stockpiles jumped by 3.5 million barrels to 216.8 million over the same period, while distillate fuel rose by 910,000 barrels to 141.9 million, according to the US Energy Department.

The International Energy Agency yesterday cut its forecast for global oil demand this year, which is likely to put further downward pressure on prices. The agency predicted a 1.6 per cent rise in global oil demand for the year to 85.77 million barrels a day, 160,000 barrels a day less than it forecast a month ago.

The oil price decline has also been prompted by the belief that the Organisation of Petroleum Exporting Countries will fail to comply with reduced production targets, analysts said.

[gateside] 18/1/2007 21:32

Fresh produce powerhouse set for city

By Lautaro Vargas, 18 January 2007

Peterborough is to become home to the UK arm of a formidable European fresh produce powerhouse following the £15.5 million acquisition of Redbridge Holdings by Fyffes spin-off, Total Produce plc.
Already one of the leaders in the UK fresh food market, the acquisition teams Redbridge together with Total's principal UK subsidiary, Total Produce Limited.The new combined European business now has a turnover of E2 billion (£1.3bn), almost 3,900 employees and trades from more than 80 facilities throughout Europe.

Prior to the acquisition, Redbridge had more than 700 employees working at over 20 locations across the UK and Europe. Importing over 80 products from 40 countries and supplying over 50 million cases of produce, the company generated sales in excess of £240m. Total Produce's UK business involved 11 UK operations and lifts the total revenues for the firm close to £400m.

As part of the deal, Total Produce Ltd will continue to use the Redbridge brand. Redbridge chairman, Denis Punter, will become chair of Total Produce Ltd. Seamus Mulvenna, the MD of Total Produce Ltd is also being appointed MD of Redbridge and Roger Allmond, who was the chief operating officer of Redbridge, is being appointed FD of Redbridge and of Total Produce Ltd.

Carl McCann, chairman of Total Produce plc, said: "We are very pleased that Redbridge has become part of the group. This substantial company is a very important addition to our UK business.

"Denis, Roger and the team in Redbridge have built a very impressive and efficient business with very significant geographic and product strengths."

Punter said: "Redbridge is combining its activities with Total Produce which will create a much larger UK business. We believe that this is the right move to build and expand the business and to provide the very best service to our customers."

While under the deal Total Produce has acquired 100 per cent of Redbridge Holdings for a maximum cash consideration of £11.75m, the aggregate cost of the transaction reflects a net liability of £3.8m arising from a deficit in Redbridge's defined benefit pension scheme, bringing the total effective maximum cost to £15.5m.

The consideration comprises an initial cash payment of £8.75m plus a further cash payment of up to £3m payable in 2010 if certain minimum profit targets are reached over the next three years.

Excluding the net pension liability, Redbridge Holdings' net assets have a value of approximately £4.8m. The company's profit before tax and exceptional items was £2.4m in the year ended 30 September 2006.

Total Produce plc is comprised of the general produce business which was demerged from Fyffes plc on 30 December 2006 and listed on IEX and AIM markets of the Dublin and London stock exchanges on the 2nd January 2007.

Redbridge's origins stretch back to 1883 when Francis Nicholls was founded. Acquired by Geest then subject of an MBO in 1995, the company became Redbridge one year later after it acquired WorldFresh.

[ariane] 18/1/2007 18:19

Oil prices plunge on inventory report


NEW YORK (AFX) - Oil prices plummeted to nearly $50 a barrel Thursday,
setting a new 20-month low, after the government reported larger-than-expected
jumps in crude oil and gasoline inventories.
A barrel of light, sweet crude for February delivery dropped $1.75 to $50.49
in midday trading on the New York Mercantile Exchange. Prices dropped as low as
$50.05, their lowest since May 25, 2005, shortly after the inventory report's
release by the federal Energy Information Administration.
Crude prices this week have continued to inch closer to the psychologically
important $50 barrier, and analysts said the market could cross the mark soon.
"I could tell you that it will be within the next couple of days or weeks,
but this market doesn't really dally," said Peter Beutel of Cameron Hanover.
U.S. crude oil stocks leaped by 6.8 million barrels to 321.5 million, when
analysts had been expecting an increase of just 325,000 barrels, according to a
Dow Jones Newswires Survey. The EIA said inventories are above the upper end of
the average range for this time of year.
Motor gasoline inventories, meanwhile, rose by 3.5 million barrels to 216.8
million, above analysts' expectations of a 2.6 million barrel rise. Distillate
stocks, including heating oil and diesel fuel, rose by 900,000 barrels to 141.9
million barrels, compared with analysts' expectations of a 1.3 million barrel
rise.
The EIA said inventories for both gasoline and distillate fuels are at or
above the upper end of the average range for this time of year.
"I think when you get these huge swings, you have to look not just at one
week but look at the average over the last three weeks," said Phil Flynn of
Alaron Trading Corp.
Over that span, Flynn said the inventory data show some support for crude
prices. If crude prices can stay above $50, Flynn said he thinks the market
could rebound. But if prices cross the threshold, they could drop further.
Before the EIA release, prices had bounced up and down around Wednesday's
settlement price of $52.24, as traders weighed the effect of a cold snap in the
U.S. Northeast and forecasts of bearish demand growth from the International
Energy Agency.
In lowering expectations for this year as well revising last year's figures
downward, the Paris-based IEA cited mild winter weather that has crimped energy
demand and weaker expectations for U.S. economic growth.
In its closely watched monthly oil market report, the energy watchdog
forecast global oil demand growth this year of 85.77 million barrels a day, down
160,000 barrels a day. And it said oil demand growth last year was 120,000
barrels a day lower.
March Brent crude on London's ICE futures exchange slipped $1.24 to $51.54.
Heating oil slipped by 3.53 cents to $1.4645 a gallon while natural gas
futures rose 1 cent to $6.244 per 1,000 cubic feet.
Gasoline prices fell 2.86 cents to $1.35 a gallon.
Oil powerhouse Saudi Arabia remans undeterred by crude's recent drop.
Saudi oil minister Ali Naimi, who earlier this week said he opposed calls
from other OPEC members for new cuts in production, announced Thursday his
country planned to increase its crude oil production capacity nearly 40 percent
by 2009 and double its refining size over the next five years to keep pace with
growing global demand.
Naimi blamed the sharp rise in global crude prices over the past two years
mostly on "insufficient investment and rising energy demand," especially from
the booming economies of Asia.
"The rise has been a wake-up call for the industry and for producers and
consumers alike, who are now beginning to address deliverability problem head
on," he said at an international energy conference in New Delhi.
But Yemen's oil minister, Khalid Mahfoudh Bahah, who was also attending the
conference in New Delhi, said he expects oil price to average between $55 a
barrel and $60 a barrel in the coming months.
Vienna's PVM Oil Associates said Naimi's opposition to further cuts for now
may be a call to other OPEC members "for better compliance with the already
agreed output reductions, the second of which has yet to come into effect."
OPEC has committed to a total cut in output of 1.7 million barrels per day,
including a 500,000 barrel-a-day reduction set to begin Feb. 1. A survey by Dow
Jones estimates OPEC has cut output by little more than half of its pledged
levels. Production remains near 27 million barrels a day or about 700,000
barrels a day above OPEC's target.

Associated Press writers Gillian Wong in Singapore and George Jahn in
Vienna, Austria, contributed to this report.

[ariane] 18/1/2007 09:41

IEA cuts 2006 oil demand growth estimate, lowers 2007 demand growth forecast


LONDON (AFX) - The International Energy Agency cut its 2006 world oil demand
growth estimate and lowered its forecast for 2007 oil demand growth, citing
large revisions to US data, mild weather and lower US GDP forecasts.
The energy watchdog said in a monthly report it now estimates oil product
demand grew by 0.9 pct last year to total 84.4 mln bpd - representing a downward
revision of 120,000 bpd from the last monthly report.
For 2007, the IEA sees oil product demand growing by an annual 1.6 pct to
total 85.8 mln bpd - representing a 160,000 bpd downward revision from the
previous report.
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[grupo guitarlumber] 17/1/2007 11:32

Saudi's Nuaimi says has 3 mln bpd spare crude oil capacity


NEW DELHI (AFX) - Saudi Arabia will have spare production capacity of 3 mln
barrels per day on Feb 1, the OPEC main producer's oil minister said today.
"Spare capacity on February 1 will be three million (barrels per day)," Ali
al-Nuaimi told reporters in New Delhi.
OPEC has an output cut of 500,000 bpd due to start Feb 1 after a reduction
of 1.2 mln bpd in November, as it tries to hold the line on prices, which have
fallen from peak highs of 78 usd per barrel in July to around 53 usd.
The spare capacity figures for the world's top oil producer and exporter
came after Nuaimi said there was no need for an emergency OPEC meeting to
discuss a possible output cut, since the situation in the crude oil market is
"healthy".
Saudi Arabia pumped around 9 mln bpd during 2006.
World oil prices rose slightly from 19-month low points today but remained
at 19-month lows after the market discounted any new OPEC reduction.
Crude futures had tumbled yesterday after Riyadh's signal that it would not
back an emergency meeting of the OPEC cartel aimed at propping up oil prices.
The Saudi minister was speaking in New Delhi on the sidelines of a gathering
of oil ministers from several OPEC members, including Iran.
This year's slump in oil prices has led to calls from Venezuela and Algeria
to deepen the two production cuts agreed at meetings in Doha last October and
Abuja in December, before the next scheduled OPEC meeting on March 15.

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[grupo guitarlumber] 17/1/2007 10:59

French public prosecutor probes Total for alleged Cameroon corruption - report


PARIS (AFX) - The public prosecutor's office in Paris has launched a
preliminary probe into alleged corruption by Total in connection with its
production and sales of oil in Cameroon, the daily Le Figaro reported.
A Total spokesman declined to comment other than to say the company learned
of the probe from the report.
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afp/mjs/amb

[waldron] 16/1/2007 06:52

Total Venezuela to require state majority share in all oil operations


CARACAS (ASX) - OPEC member Venezuela announced plans yesterday to
"nationalize" oil production in a law requiring the state hold a majority share
in all oil contracts and oil companies working in the country.
Energy Minister Rafael Ramirez said the decision came after the failure last
year to reach agreement with foreign oil companies on joint contracts for
exploration and production in the Orinoco belt oil zone, despite ample
opportunity to negotiate.
"Now, no more negotiations are possible," he said. "The nationalization will
be pronounced by law," which Ramirez said was being drafted and will set out the
specific terms.
"We will assume majority control along the production chain from production
to sales," he said.
ExxonMobil, Chevron Corp, ConocoPhillips, Total, BP PLC and Statoil have
operations in the Orinoco belt, where they operate in joint ventures with the
state-owned oil company Petroleos de Venezuela (PDVSA) as majority partners.
Venezuela's constitution needs to be amended before such a law can be
passed, however.
"Once the law is passed, we will be able to give details on the terms,"
Ramirez said.
"For now, we are calling on all partners to discuss with each the future of
these strategic associations, which are extraordinarily profitable," he said.
The Caribbean country is the fifth largest exporter of crude oil in the
world, and only Latin American member of OPEC.
The US is Venezuela's top client, purchasing 1.5 million barrels per day.

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[waldron] 15/1/2007 18:44

The 2007 financial calendar is presented below :

2007 Event
February 14 Fourth Quarter and Full Year 2006 Results

April 4 Individual shareholders' Meeting in Lille

May 3 First Quarter 2007 Results

May 11 2007 Annual Meeting of Shareholders

August 2 Second Quarter & First Half 2007 Results

September 5 2007 Mid-Year Review

November 7 Third Quarter 2007 Results

November 16 & 17 Actionaria Investor Fair in Paris

[waldron] 14/1/2007 09:47

London "Sunday Times" says Israel plans to attack Iran

Crude oil briefly bounced $1.25 cents to $57.75 / barrel following an article in the "Sunday Times" of London, indicating that Israel has drawn up plans to destroy Iranian uranium enrichment facilities with a tactical nuclear strike. The Times said:

"Israelis have become increasingly convinced that a "second holocaust" of the Jews is brewing, stoked by Mahmoud Ahmadinejad, the Iranian president and chief Holocaust denier, who has repeatedly called for Israel to be destroyed."

But speculation of a future war between Israel and Iran is baseless. That's the majority opinion of Tel-Aviv traders and the crude oil markets these days. The Tel-Aviv-100 stock index rose to a record high of 945.5 last week, up 15% from a year earlier, close behind the MSCI Emerging market index which gained 19 percent. Israel's economy expanded by a healthy 5% last year, losing 0.9% of growth due to $3.4 billion of damages from the summer war with Hizbollah.



The earliest clue of an impending war between Israel and Iran can be found in the Israeli shekel exchange rate. Yet the shekel gained 10% against the US dollar to a 5-½ year high in 2006. The Bank of Israel lowered its overnight loan rate by 100 basis points to 4.50%, or 75 basis points below the US fed funds rate, in order to rescue the dollar. Nearly $20 billion of foreign direct investment flowed into Israel last year, bolstering the shekel, led by a $4.5 billion investment from Warren Buffet.

Israel cannot play Russian roulette and attack Iran, because its nuclear facilities are inhabited by Russian technicians, and Israel imports 60% of its oil from Russia. Because Israel has limited fossil fuels, its energy supply from Russia is of extreme importance for the functioning of its economy. Therefore, Ahmadinejad holds the trump card, while his chief ally, Russian kingpin Vladimir Putin controls most of Israel's oil supply, and can bring the Israeli economy to its knees.
Tehran is rewarding Moscow with a contract for LUKOIL, to give it a role in producing oil from Azadegan, one of the largest unexploited oil fields in the world. Said Russia's Atomic Energy Agency chief, Sergei Kiriyenko:

"LUKOIL has carried out some exploration at Azadegan and, according to a contract that will be signed in the future, Iran will allow the Russian party to participate in recovering oil in Azadegan directly."

"Russia sees no political obstacles to putting the Bushehr nuclear power plant into operation as scheduled. It is Russia's position that Iran has the right to civilian nuclear energy, in compliance with non-proliferation regulations," Kiriyenko said on Dec 12th.

Russian Deputy Industry and Energy Minister Ivan Matyorov said Iran has also offered to cooperate with Russian oil and gas companies in exploring for new deposits, both on its own territory and in other countries.

"Iranians believe that Gazprom in particular is an effective world leader, and they would like to cooperate with it. Specifically, Iranian companies have extended their presence in Venezuela and Bolivia in this domain, and they would like to cooperate with Gazprom in these regions as well," Matyorov said.

He said Russian state-controlled oil company Rosneft could soon start developing deposits in Iran.

Ahmadinejad holds another trump card over Israel. Some 12% of China's crude imports come from Iran. On Dec 20th, Iran and China's CNOOC (CEO), 0883.HK signed a $16 billion deal to develop Iran's northern Pars gas field and build plants to produce liquified natural gas. CNOOC would have a 50% share of the produced LNG. Sinopec [0386.HK] (SHI), is negotiating with Tehran to develop the giant Yadavaran oil field and to buy 10 million tons of natural gas per year for 25 years.

Why is Iran cheating on its pledge to OPEC?

Iran is home to approximately 10% of the world's oil and is the second largest exporter in OPEC, producing 3.8 million BPD. At the same time, Iran sits atop the world's second-largest reserves of natural gas. Today, 85% of Iran's export earnings, as well as half of its budget and a quarter of its economy is derived from energy exports. Despite oil exports of 2.5 million barrels a day however, Iran currently imports more than 40% of its annual consumption of gasoline from India, France, Turkey, and China, at an estimated cost of more than $3 billion annually.
Yet given a difficult investment environment and concerns over its nuclear program, Iran has been unable to upgrade its oil facilities, nor increase production capacity for the past few years. Oil production was stagnant last year, which resulted in the oil sector expanding by just 0.6% in real terms. Instead, Iran's economy is being driven by higher government spending, which grew by 5.4% in real terms in 2006, the highest rate of growth in five years.

Strong government spending is eroding much of Iran's oil revenue. While hydrocarbon revenue increased 28.3% last year, government expenditures grew a massive 39.6 percent. Tehran provides subsides for many staple items and housing, which total $25 billion a year. These subsidies are now costing the government roughly 15% of Iran's GDP. Heavily subsidized gasoline is just 35 cents a gallon.

The latest plunge in crude oil, perhaps inspired by Saudi Arabia, is likely to put a squeeze on Iran's budget surplus, which could turn into a deficit if oil prices fall towards $45 per barrel. To finance the government's subsidies, Iran's central bank increased the broad money supply by 36% in 2006, sending inflation soaring to 14.6% in September. Tehran cannot afford to cutback on oil production and reduce its oil income, without cutting back on subsidies and risk riots in the streets.

Iran's all-out commitment to nuclear invincibility is also worrisome to its Sunni neighbors. Jordan, Egypt, Saudi Arabia and other Sunni-ruled Arab states now fear that US troops might withdraw hastily, leaving an Iraq dominated by Iranian-backed Shi'ite militias. That in turn could lead to the emergence of a Shi'ite Crescent linking Iran, Iraq, and Syria with Hezbollah in Lebanon and Hamas in Gaza.

While apparently ruling out the military option for 2007, the Europeans and the US are quietly engaging in economic warfare with Iran, by demanding that international banks and oil companies to pull out of dozens of Iranian projects, including development of Iran's two massive new oil fields Azadegan and Yardavan that could expand Iran's output by 800,000 BPD over the next four years.

US officials already have already warned that they will hold China accountable under Washington's unilateral sanctions laws if Beijing proceeds with a $16-billion project to develop Iran's North Pars gas field. Japan's INPEX had secured the right to lead the $2 billion-plus development of Azadegan with a 75% stake, but pulled out of the deal in October under heavy US pressure.

In late 2005, Dutch bank ABN Amro agreed to pay $80 million in fines stemming in part from improper transactions with Iran through its subsidiary in Dubai, United Arab Emirates. UBS Bank and Credit Suisse of Switzerland recently announced they were suspending most new business with Iran, and British-based HSBC said it would no longer accept dollar transactions from within Iran.

The United States is expected to announce sanctions against Bank Sepah, a big Iranian commercial bank, under a presidential order aimed at freezing the assets of proliferators of weapons of mass destruction. Bank Sepah, established in 1925 is the oldest of the Iranian banks, and has a large network of branches in Iran as well as offices in Paris, Frankfurt and Rome.

Can economic warfare succeed in toppling Iran's Ayatollah Khameini before he gets the bomb in 2009? If US military intervention against Iran has been ruled out for 2007, the big question is whether Saudi Arabia is behind the latest plunge in oil prices, to wreck havoc on Iran's budget and economy? Meanwhile, Iran is banking on strong demand for crude oil from Asia to put upward pressure on the price, and there will be plenty of jawboning from Ahmadinejad.

[waldron] 12/1/2007 10:26

Oil up as market recovers from 19 month lows, traders worry about OPEC cuts


LONDON (AFX) - Oil rose as the market recovered from a 4 pct slide yesterday
that took prices to fresh 19 month lows under 52 usd a barrel and as traders
worried about the possibility of further OPEC output cuts.
At 9.56 am in London, front-month Brent North Sea crude contracts for
February delivery were up 1 usd at 52.70 usd a barrel, after plunging 1.99 usd
yesterday to 51.70 usd, the lowest level since May 31 2005.
Meanwhile, front-month New York light sweet crude contracts for February
delivery rose 93 cents to 53.75 usd a barrel, after tumbling 2.14 usd to close
at 51.88 usd yesterday, the lowest point since May 27, 2005.
Oil prices have lost some 15 pct of their value this year as US heating oil
demand waned and inventories built up on account of the very mild winter
temperatures.
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[gateside] 12/1/2007 08:01

Total Produce in Euro23 million transaction to acquire Redbridge Holdings Ltd


Total Produce plc, Europe's leading fresh produce company, announces that it has
acquired 100% of Redbridge Holdings Ltd ("Redbridge"), the UK fresh produce
company, for a maximum cash consideration of STG#11.75 million (EUR 17.5
million). The consideration comprises an initial cash payment of STG#8.75
million (EUR13 million) plus a further cash payment of up to STG#3 million
(EUR4.5 million) payable in 2010 if certain minimum profit targets are reached
during the three years ended 31 December 2009. The aggregate cost of the
transaction reflects a net liability of STG#3.8 million (EUR 5.5 million)
arising from a deficit in Redbridge's defined benefit pension scheme, bringing
the total effective maximum cost to STG#15.5 million (EUR 23 million).


Redbridge is a leading fresh produce company holding strong market positions in
the retail and wholesale sectors in the UK. It recorded turnover of STG#236
million (EUR 352 million) in 2006. Headquartered in Peterborough, the company
has 668 employees. Denis Punter, the Chairman of Redbridge will retain this role
in the company and is being appointed Chairman of Total Produce Limited, the
principal UK subsidiary of Total Produce plc. Seamus Mulvenna, the Managing
Director of Total Produce Limited is also being appointed Managing Director of
Redbridge and Roger Allmond who was the Chief Operating Officer of Redbridge is
being appointed Finance Director of Redbridge and of Total Produce Limited.


Commenting on the transaction, Carl McCann, Chairman of Total Produce said: "We
are very pleased that Redbridge has become part of the group. This substantial
company is a very important addition to our UK business. Denis, Roger and the
team in Redbridge have built a very impressive and efficient business with very
significant geographic and product strengths."


Mr Denis Punter, Chairman of Redbridge said: "Redbridge is combining its
activities with Total Produce which will create a much larger UK business. We
believe that this is the right move to build and expand the business and to
provide the very best service to our customers. We are very pleased to have
joined with Total Produce, Europe's largest fresh produce company."


Excluding the net pension liability of STG#3.8 million (EUR 5.5 million),
Redbridge has net assets with a value of approximately STG#4.8 million (EUR7.2
million) at completion. The company recorded turnover of STG#236 million (EUR352
million) and profit before tax and exceptional items of STG#2.4 million (EUR 3.6
million) in the year ended 30 September 2006. Total Produce expects the
acquisition to be earnings enhancing from the date of completion.



Total Produce is one of the leading operators within the European general
produce sector. The group is comprised of the general produce business which was
demerged from Fyffes plc on 30 December 2006. This business recorded turnover of
Euro1.7bn and operating profits of Euro32m in the year ended 31 December 2005.
Including Redbridge, the group generates a turnover in excess of EUR 2 billion,
has almost 3,900 employees and trades from more than 80 facilities throughout
Europe. Shares in Total Produce were admitted to trading on the IEX and AIM
markets of the Dublin and London stock exchanges on the 2nd January 2007.

[waldron] 11/1/2007 19:34

Conocophillips Venezuela may nationalize oil projects


CARACAS, Venezuela (AFX) - Venezuela could nationalize four heavy oil
projects in the oil-rich Orinoco River basin if the state is unable to negotiate
a majority stake with the foreign oil companies that run them, the finance
minister said Thursday.
The remark by Finance Minister Rodrigo Cabezas clarified that the government
is still seeking to obtain majority control through talks with the companies
after President Hugo Chavez announced plans this week to take control of
"strategic sectors" in telecommunications, power, oil and natural gas.
"If the Energy and Petroleum Ministry's negotiations with the four strategic
concessions of the (Orinoco) oil belt were to arrive at nothing, the state could
perform an act of nationalization," Cabezas told state television.
Separately, Cabezas told the Venezuelan newspaper El Universal that as the
state nationalizes dominant telecommunications company C.A. Nacional Telefonos
de Venezuela, or CANTV, "shareholders will receive the fair price of their value
of their shares."
Asked if the call for nationalization includes top power company
Electricidad de Caracas, owned by Arlington, Virginia-based AES Corp., Cabezas
said "it includes the entire electricity sector."
Venezuela's government has been in talks since last year with foreign oil
companies that operate heavy crude upgrading projects in the eastern Orinoco
area, seeking a controlling stake through the formation of new "mixed
companies." Such joint ventures have already been formed in other parts of the
South American country, and most companies have shown a willingness to continue
investing under new terms.
The six firms that currently control the Orinoco projects include British
Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Total SA
and Statoil ASA.
Chavez is seeking special powers from the National Assembly to allow him to
enact "revolutionary laws" by decree, and Cabezas told state TV they would
likely include reworking the country's banking laws and reforms for insurance
companies.
"Next week we will decide for sure what laws fall under the president's
special powers," he said.
Venezuela has strict controls in place that limit currency trading, and
Cabezas noted that the price of the dollar in the black market has risen to
historic levels but said there are no plans to devalue the Venezuelan currency,
the bolivar.
He said in Chavez's new six-year term, the government will seek to raise
taxes on companies with hefty profits but will allow private companies to
continue to operate freely.

[beechtree] 09/1/2007 11:40

Me too-I have not done my homework on TOT but am holding the shares I received from the split from Fyffes. Nice to see the rise today and also the steady rise in Fyffes since the split.

[catandcrow] 09/1/2007 10:35

I haven't realy done my homework on this one but have bought as a cheap spin-off play - probably under some selling pressure at the moment - might rise after it wears off.

[gateside] 07/1/2007 20:08

Someone should tell the guy who wrote the following in The Sunday Times that the best way to get good returns from the stockmarket is to have patience and invest for the longer term. The company has only been trading for 4 days, can't belive that someone gets paid to write such utter rubbish. I agree that this is far from the most exciting company in the world, but I shall be using the dip in price to add to my current holding.


Banana splat

WE have long questioned the rationale behind the splitting up of Fyffes. Shareholders in this company now find themselves in a three-way split. There is Blackrock International, a property play; Total Produce, a general produce arm launched on the IEX in Dublin and AIM in London; and a tropical fruit division that has clung on to the original Fyffes monicker.

The management of all three companies have been told to go forth and maximise value for shareholders - even though replication of back-office functions and other costs may weigh them down as they undertake their journey.

Investors seem particularly unimpressed with Total Produce, which, given the lukewarm reception to its market debut, would be better named Totally Underwhelmed. Having opened at 76c on the IEX, the stock drifted to finish the week down 2c a share or 2.6%. Not the type of split the banana company had in mind.

[gateside] 06/1/2007 21:24

Fyffes spin-off total produce begins trading on Dublin and London stock exchanges

Total Produce Plc has announced today that it has been admitted to trading and that dealing in its ordinary shares will commence today on the IEX market of the Irish Stock Exchange and the AIM market of the London Stock Exchange.

"We are very pleased at today's launch of Total Produce on the IEX and AIM markets. The Group is one of the leading fresh produce distributors in Europe and has a strong and experienced management team. Our ambition is to enhance shareholder value through a combination of organic growth and by continuing to pursue acquisitions of companies in the General Produce and Distribution Sector."

Total Produce is a spin-off from Fyffes plc and is one of the leading operators within the European General Produce and Distribution Sector. Its operations are comprised of the General Produce and Distribution Business which was demerged from Fyffes on 30 December 2006. This business recorded turnover of €1.7bn and operating profits of €32m in the year ended 31 December 2005, up from a turnover of €1.5bn and operating profits of €30m in the prior year.

Total Produce is primarily involved in the marketing and distribution of a broad range of branded fresh produce to pan European and National retailers and wholesalers. The Group procures its products worldwide and is one of the leading distributors of southern hemisphere fresh produce in Europe, in particular fresh produce sourced from South Africa and South America. Key products include bananas, citrus, apples, pears, stonefruit, grapes, tomatoes, pineapples, exotics, salads, vegetables and potatoes.

The Group operates through its subsidiaries, joint ventures and associates from a total of 66 retail and wholesale distribution facilities and 5 ancillary offices throughout Europe with facilities in Ireland, the United Kingdom, Sweden, Denmark, Spain, Italy, Holland, Belgium, France, the Czech Republic and Slovakia. It is one of the largest European ripeners of bananas with ripening facilities throughout Europe.

Total Produce commenced operations on 1 January 2007 with net debt of €10 million. The Group also has an obligation to pay the consideration for the remaining 40% of Everfresh Holding AB in the first half of 2007. This consideration is based on a multiple of average profits for the three years ending 31 December 2006 and is subject to a maximum remaining payment of €49.6 million. In addition to existing debt in certain non wholly owned subsidiaries and joint ventures the Group has negotiated new credit facilities amounting to €200m with a number of banks.

Management Team

The board of Total Produce comprises three executive Directors and two non-executive Directors. Carl McCann (Chairman), Rory Byrne (Chief Executive) and Frank Gernon (Finance Director) are executive Directors. Rose Hynes and Jerome Kennedy are non-executive Directors.

Prior to the demerger Rory Byrne was executive director of Fyffes plc, holding the position of managing director of the General Produce and Distribution Business, for which he had operational responsibility. Frank Gernon was Financial Director of Fyffes plc, having previously held each of the senior financial positions in the company. Carl McCann was chairman of Fyffes plc and has extensive experience in the Sector.

Future strategy

The company says that the strategic objective of the board of Total Produce is to enhance shareholder value through a combination of organic growth and by continuing to pursue acquisitions of companies in the General Produce and Distribution Sector.