Enterprise risk
Tentative steps
Algeria’s state-owned oil company Sonatrach is about to become the first oil and gas company within Opec to roll out an independent risk management programme to cover its crude oil and gas sales. Stella Farrington reports
An energetic debate
Enterprise-wide risk measurement and management, regulatory issues and pricing and hedging strategies were the hot topics this year at Energy Risk Europe in Amsterdam. James Ockenden and Joe Marsh report
Real option valuation
Many non-financial assets can be viewed as ‘real options’ linked to an underlying variable such as a commodity price. Here, Thomas Dawson and Jennifer Considine show that the stock price of an electricity generating company is significantly correlated…
The sum of its parts
One can view a corporation’s individual projects as a portfolio of options – useful risk management tools to be used if their risk/return ratios are better than that of the firm as a whole. But how to work out the equity cost of capital at this…
A solid foundation
MotherRock, the energy hedge fund set up by former Nymex president Bo Collins, recently chose Kiodex’s ASP-based risk management software. Joe Marsh explores the trade-off between web-based and installed systems
Rankings 2005
The energy markets gave corporates and funds plenty to think about in 2004 – and while the banks still dominate the rankings, some sectors have been taken over for the first time by energy companies. All is revealed in this year’s comprehensive round-up.
OpenLink may launch web-based version of Endur
OpenLink may launch a web-based version of Endur, its energy trading and risk management system, according to Matt Frye, Houston-based managing director of the software company.
Mirant to pay $460m to settle California energy crisis claims
Bankrupt Atlanta-based energy marketer Mirant will pay $460 million to California power utilities and public agencies to resolve claims related to the state’s energy crisis in 2000 and 2001. The California utilities and agencies in the settlement were…
Fitch to buy Algorithmics
Fitch Group, parent of credit rating agency Fitch Ratings, is to acquire New York-based risk management software provider Algorithmics. The purchase, valued at $175 million, is expected to close in January, said Fitch today.
China Aviation gets six week breather
China Aviation Oil (CAOSCO) has been granted a six week extension by the High Court of Singapore to its deadline to submit its scheme of arrangement restructuring plan, due today. The new deadline is January 21, 2005.
Bankrupt Mirant seeks more time to file restructuring plan
Bankrupt US energy marketer Mirant has sought a further 90 days in which to file its plan of reorganisation for emerging from Chapter 11 protection from creditors. It filed the request with the US Bankruptcy Court on Monday, and this would be the third…
Satya Capital sues China Aviation Oil
Indonesian firm Satya Capital Limited is suing China Aviation Oil (Singapore) Corp and it parent company China Aviation Oil Holding Company for over $28 million for an alleged breach of a share purchase agreement, CAO (Singapore) Corp said late Wednesday.
Duke to settle California power crisis allegations
US power company Duke Energy and some of its subsidiaries will pay $207.5 million to settle allegations that it acted improperly during the California power crisis in 2000/2001. The US Federal Energy Regulatory Commission (Ferc) approved the settlement…
China Aviation Oil chief arrested
Chen Jiulin, the suspended chief executive of China Aviation Oil, has been arrested on his return to Singapore early Wednesday as investigations begin into the company’s huge trading losses.
AsiaRisk Awards
Here we feature two outstanding winners from our sister publication AsiaRisk’s Annual Awards, published in October. Thanks largely to Macquarie Bank, alternative investments are gaining a real foothold in Australia, while Westpac has been instumental in…
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China Aviation Oil hid US$390m derivative loss in struggle to survive
China Aviation Oil’s trading unit, China Aviation Oil (Singapore) Corp (CAOSCO) hid an initial US$390 million loss while its directors sought “white knights” to save it from liquidation, it emerged yesterday as the company announced an estimated US$550…
Utility 2025: a vision
Power companies will face enormous political, societal, and technological change over the next 20 years. Douglas Houseman and Dennis Taylor of Capgemini look at how the utility of the future should embrace change
Oiling the wheels
Bribery and corruption is a hot topic, not least in the energy sector. Energy Risk this month looks at recent high-profile cases and what governments are doing to combat the problem. By Daren Allen and Kelly Williams
Dynegy to buy Sithe Energies from Exelon
Dynegy is set to reduce the effect of some of its loss-making tolling and financial swap contracts, buy power plants in the northeast US and acquire a supply agreement to increase stable cashflow and service debt.
Gazprom completes Rosneft merger, appoints head of new company
Sergei Bogdanchikov will retain his job as chief executive of Gazpromneft, the new company formed yesterday by the merger of Russian gas monopoly Gazprom and state oil company Rosneft. He was previously head of Rosneft.
Ten years at the top
A decade of commodity rankings has seen many players come and go – but as James Ockenden finds, the top two investment banks, Morgan Stanley and Goldman Sachs, have been solid all the way
Playing monopoly
China Aviation Oil is well placed to benefit from China’s economic boom – thanks to its powerful jet-fuel supply monopoly. Yet there are still opportunities for those willing to develop new markets, finds James Ockenden
Taking cover
US energy companies are increasingly taking out terrorism cover, even though none has yet made a claim. This is partly because the cost of policy premiums is falling. But this trend may be under threat. Joe Marsh reports