Petronas to invest in Canada
Petronas will embark on a US$35 billion liquid natural gas (LNG) project in Canada following the reversal of Ottawa’s decision to block the Malaysian national oil company’s purchase of Canadian gas producer Progress Energy Resources. At a joint press conference yesterday with his Canadian counterpart, Malaysian Prime Minister Najib Razak said this followed from the “approval principally” given for the state energy firm’s US$5.5 billion purchase. Najib announced that Petronas will spend CD$36 billion (US$34.95 billion) to build “all the facilities upstream including investment in a pipeline” which he said was the “largest foreign direct investment in Canada by any country… We believe this project will be mutually beneficial because it will open up Canadian energy to new markets, principally East Asia.”
Tax deal on foreign profits
The government has reached a deal with big local companies on how to tax their foreign profits, a measure that should help resolve 70 billion reais (US$31.8 billion) in tax disputes and help encourage greater investment abroad, Folha de S.Paulo newspaper reported on Saturday. The deal should give a boost to tax collection of several billion reais, Folha said, at a time when the government is struggling to meet its fiscal savings goal for this year. The companies affected include miner Vale SA, state oil company Petroleo Brasileiro SA and steelmaker Gerdau SA. The deal will allow the companies to enter a special renegotiation of tax debts the government said they owed for profits earned outside the country. The companies will be allowed to set up holding companies to process foreign earnings as long as they are reported transparently and not based in so-called tax paradises, Folha said.
Kuwait cites ‘good’ price
Kuwaiti Oil Minister Mustafa al-Shamali yesterday said that an oil price of between US$100 to US$110 per barrel is acceptable to both producers and consumers. “These prices are good and acceptable to all parties. They help producers to complete their production and exploration projects, besides they are suitable to consumers and the global economy,” Shamali told al-Seyassah newspaper. The main US contract, West Texas Intermediate for delivery next month, closed the week on Friday at US$103.84 a barrel on the New York Mercantile Exchange, up US$0.53 from Thursday’s closing level. Shamali said Kuwait’s current crude production is estimated at 3.2 million barrels per day, up from an average of about 3 million barrels during the past two years.
Icahn drops Dell effort
Carl Icahn walked away from his effort to win a higher price for an 8.9 percent stake in Dell Inc less than a month after stating that the US$24.9 billion buyout “greatly undervalues” the computer maker. In a post on Friday on Twitter, Icahn said he was dropping his demand for an independent court appraisal of his 156.5 million Dell shares. Under the law in Delaware, where Dell is incorporated, stockholders can ask the state chancery court for an independent valuation of fair value in a takeover. The billionaire, in a Sept. 9 letter to other Dell shareholders, vowed to pursue appraisal rights even as he conceded defeat after a months-long effort to spur a higher bid or win control of the Round Rock, Texas, company.