Oil hovers above $82 as month-long rally stalls

Oil prices hovered above $82 a barrel Friday in Asia as investors mulled whether extending a monthlong rally is justified amid evidence of weak U.S. crude demand.
Benchmark crude for April delivery was up 8 cents to $82.19 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 2 cents to settle at $82.11 on Thursday.

Crude has jumped 18 percent from $69.59 a barrel on Feb. 5 as economic data pointed to slow but steady U.S. economic growth. However, high crude inventories belie a rosy economic outlook, and suggest consumer spending remains sluggish.

"We are still having much difficulty in constructing a bullish fundamental case," Ritterbusch and Associates said in a report. "We expect the crude stock build to continue well into the spring period."

In other Nymex trading in April contracts, heating oil fell 1.04 cents to $2.1058 a gallon, and gasoline dropped 1.29 cents to $2.2722 a gallon. Natural gas declined 2.7 cents to $4.532 per 1,000 cubic feet.

In London, Brent crude was up 11 cents at $80.39 on the ICE futures exchange.

source:The Associated Press,thejakartapost.

BNI targeting 150 Financing Procurement Railway carriage

PT Bank Negara Indonesia Tbk targeting procurement project financing and construction of 150 railway carriage owned by PT Kereta Api. Previously, BNI had withdrawn the loan to PT KA for working capital needs Rp300 billion.

Was determined Head of Corporate Banking BNI Rosa Delima Dwi Mutiari in conversation with Media Indonesia, last weekend. According to him, this time, PT KA require financing for the procurement of 150 rail cars in need financing almost Rp5 trillion. In addition, the construction of railroads to the airport that some funds are expected to come from banks.

The amount of these funds needs to establish a bank syndicate. Currently, BNI has established the possibility of syndicated financing PT KA those with PT Bank Rakyat Indonesia Tbk. This is part of the expected synergies SOE SOE Ministry to support the development of SOEs. Currently, the three parties was to test the feasibility (feasibility study).

Rosa reminded, especially condition of rail cars in the outside lane of Java is needed rejuvenation. In fact, transportation train there was already one of the main transport. Not only transport passengers but also the transport of goods. With this potential, the bank is very interested in providing financing to remember the great potential he gets.

Coal Methane Gas Production in Sangatta I

Based on World Bank data, the potential concentration of Coal Methane Gas is the largest in Borneo and Sumatra. In East Kalimantan, among others, scattered in Berau containing approximately 8.4 TCS, Pasir / Asem 3 TCS, TCS Tarakan 17.5, and 80.4 Kutai TCS. Barito regency, Central Kalimantan, has a 101.6 TCS, TCS 52.5 Central Sumatra, South Sumatra 183 TCS, and TCS 3.6 Bengkulu, Jatibarang (West Java) 0.8 TCS, and TCS Sulawesi 2.
Coal Methane Gas Production in Sangatta I
The results of drilling the first wells in the block of coal methane gas (coal bed methane / CBM) Sangatta I, East Kalimantan, reaching 12 m3/ton or 424 SCF / ton per day and planned to start production in early 2011 to come.

According to the Chief Executive Officer (CEO) Ephindo CBM Holdings Inc (Ephindo) Sammy Hamzah, at 2011 production targets inline with Government targets CBM production early 2011. Total gas that can be produced on the 12 m3/ton or 424 standard cubic feet (standard cubic feet / SCF) per ton.
The results of initial production will be supplied to meet the needs of gas plants. Faster production in accordance with government regulations if the gas should be produced before the development plan (plan of Developmental / PoD) is complete.

Block Sangatta developed by the consortium of PT Pertamina Upstream Energy with Energy Methane A Sangatta West Kalimantan CBM Inc., Ephindo subsidiary, with a commitment value of the first 3-year contract worth U.S. $ 7.7 million. Blok ini memiliki cadangan CBM terbesar yakni 6,49 triliun kubik standard (TCS). This block has the largest CBM reserves of 6.49 trillion standard cubic feet (TCS).

After Sangatta, CBM in Indragiri Hulu with Prima Mineral Samantaka as operator with the South Sumatra basin that have the resources TCS 5.50. Lowest resource block is located in Sekayu, Medco SBM Sekayo as operators with the South Sumatra basin with TCS 1.70.

Reserve Coal Bed Methane (CBM) Indonesia's current 450 that is large enough spread in TCS and 11 basin Greatest potential lies in the Barito area, East Kalimantan, which is approximately 101.6 TCS, followed by approximately 80.4 Kutai TCS.