Sunday, August 28, 2005

EUAS’s Ambarli Fuel Oil-Fired Power Plant Rehabilitation Project.

EUAS’s Ambarli Fuel Oil-Fired Power Plant Rehabilitation Project. Preparations continue for the specifications of the international feasibility study tender to be announced for the conversion of the power plant’s fuel to natural gas. For the project, which has an allocation of YTL 500,000 in the investment program, an international consulting services tender is planned to be announced in the last quarter of the year...

Enka- InterGen Izmir

The Council of Ministers Takes a Decision on Principle Regarding the Izmir Power Plant. During the meeting held with Enka-Intergen on August 25, MENR officials have indicated that the result of the lawsuit filed with the Council of State seemed to be the annulment of the contract considering the judgment for stopping the enforcement of the contract, and added that they would not make any payment if the contract were annulled. Enka-Intergen has reminded of the guarantees provided by the Treasury in such a case and that they would have to apply to international arbitration if payments were to be stopped...

Saturday, August 27, 2005


Main works construction in the recently developed Kashagan Oil Field will be undertaken by the winning NCC (North Caspian Contractors) Joint Venture consisting of international contractors including Gama Industry. Gama Industry has a 25% share in the project that will be undertaken for AGIP KCO, which approved the letter of intent on March 24, 2005 finalizing the tender process. The overall project value is USD 677 million, of which USD 500 million will be undertaken by the NCC Consortium’s nominated subcontractor GATE Inc, a Gama subsidiary. The construction is expected to start in April 2005 and 10.000 personnel will be employed at site at the peak of the project according to initial estimates.

GATE had been awarded two additional projects in the same district earlier this year. The first was the construction of industrial region buildings in the Kashagan Oil Field undertaken as a main contractor, while the second was the construction of a 175 MW Gas Turbine Power Plant undertaken as a subcontractor.

2 x 300 MW Power Plant in Bulgaria: Maritza East -1

Tekfen-Gama partnership is awarded the civil works portion of the 2 x 300 MW Maritza East -1 Power Plant in southern Bulgaria. The project, undertaken in cooperation with Alstom Power Generation, is a BOOT scheme.

Sunday, August 21, 2005

Shell to sell InterGen's U.S., Turkish power plants

AMSTERDAM (Reuters) - Oil group Royal Dutch Shell Plc has agreed to sell more power plants belonging to its InterGen joint venture for an undisclosed sum and aims to have exited the venture by the year-end.

Shell said on Friday it planned to sell three InterGen power plants in the United States to Kelson Holding LLC, a unit of Harbert Management Corporation. It will also sell three InterGen assets in Turkey to its local partner, construction firm Enka Insaat, and is restructuring its plant in Colombia.

Shell, the world's third-largest listed oil group by market capitalization, and U.S. construction firm Bechtel agreed in April to sell 10 power plants at their InterGen venture to a partnership between AIG Highstar Capital II L.P. and Ontario Teachers' Pension Plan for $1.75 billion.

The sale of these 10 plants -- located in Britain, the Netherlands, Mexico, the Philippines, China and Australia -- was completed, Shell said in a statement on Friday.

It said of the U.S. and Turkish sales, "These transactions, all of which are subject to obtaining necessary consents, should result in Shell's exit from InterGen activities by year end 2005, and mark a significant step in Shell's portfolio restructuring activities."


Shell and Bechtel put the Boston-headquartered InterGen on the block last year, and the sale forms part of Shell's plan to raise $12 billion to $15 billion between 2004 and 2006 by selling non-performing and non-core assets.

Shell owned 68 percent of InterGen and the rest was held by privately owned Bechtel.

For Shell, the divestment is part of a refocusing on its core operations as it seeks to rebuild investor confidence after a damaging oil reserves over-booking scandal last year.

Shell announced in May it was selling its plastics joint venture with BASF for about 4.4 billion euros. The group is also hoping to sell its liquefied petroleum gas distribution unit.

The company, which gave up its dual Anglo-Dutch company ownership status on July 20 to simplify its management and operational structure, needs to streamline its activities.

Shell's earnings growth lags that of its rivals and the group warned last month that it was forced to delay starting production at a key Nigerian oil field.

Rampant inflation in the oil-service sector and the difficulty of having to search for oil in ever more remote and harsh locations have led analysts to warn of a structural erosion in oil firms' profits.

InterGen was sold with debts of around $3.1 billion, implying an enterprise value of around $4.85 billion. This was broadly in line with the level the market had expected.

AIG mounted a failed bid for power generation assets sold by Edison International last year, while Ontario Teachers has in the past bid for power assets in the UK.

Shell and Bechtel were advised by Citigroup while Deutsche Bank acted for AIG Highstar and Ontario Teachers'.

Shell shares were down 0.2 percent in London by 1033 GMT, in line with the DJ Stoxx Oil & Gas Index.

Wednesday, August 03, 2005

Turkey: $50.6 M loan agreement between TEIAS & IBRD ratified

16:55 - 02 August 2005 - A $50.6 million loan agreement between Turkey's Power Distribution Corp. (TEIAS) and the International Bank for Reconstruction and Development (IBRD) has been ratified, Turkish Daily News reports.

According to sources close to the matter, TEIAS will use the loan to establish an administrative system and control mechanism to ameliorate the general outlook for energy security.

Source: Turkish Daily News
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