Record British offshore energy investment

BRITAIN'S offshore oil and gas sector will invest a record STG13 billion ($A19 billion) in 2013, boosted by the impact of taxation changes in the previous year, an industry survey shows.

Overall investment is expected to surge by 14 per cent this year, compared with STG11.4 billion in 2012, industry body Oil & Gas UK said in a statement detailing its latest activity survey. Last year's figure had already been a 30-year high.

"Here is some really good news for the UK," said Oil & Gas UK chief executive Malcolm Webb.

"After two disappointing years brought about by tax uncertainty and consequent low investment, the UK continental shelf (UKCS) is now benefitting from record investment in new developments and in existing assets and infrastructure, the strongest for more than three decades."

He added that last year's changes in the taxation regime, which were aimed at promoting the development of a range of difficult energy projects, had prompted many companies to reassess their plans and sparked a new wave of investment.

Oil & Gas UK, which represents more than 300 firms, added that output was forecast to surge over the next three to four years thanks to the recent surge in investment.

Production was expected to jump to approximately 2.0 million barrels of oil equivalent per day (boepd) by 2017, it said.

However, the industry body noted production sank to 1.55 million boepd in 2012. That was 14 per cent lower than 2011 and 30 per cent lower than 2010.

And output was forecast to decline in the current year to 1.45-1.5 million boepd.

"Recent collaborative work between government and industry is now bearing fruit in terms of investment and job creation right across Britain and recovery in production and tax revenues will certainly follow," added Webb in the statement.

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World powers have 'good offer' for Iran

WORLD powers will present Iran with an updated and "good" offer at talks this week on its nuclear program, an EU official says, although hopes for a breakthrough are slim.

Talks aimed at curbing Tehran's nuclear drive start in Kazakhstan on Tuesday, with the so-called 5+1 world powers represented by the European Union sitting down with an Iranian team led by its top nuclear negotiator Saeed Jalili.

"We have prepared a good and updated offer for the talks, which we believe is balanced and a fair basis for constructive talks," said the spokesman for EU foreign policy chief Catherine Ashton.

"The offer addresses international concerns ... on the nature of the Iranian nuclear program, but is also responsive to Iranian ideas," said the spokesman, Michael Mann.

"We hope that Iran will seize this opportunity and come to the talks with flexibility and commitment to make concrete progress towards a confidence-building step."

A source close to the negotiations said the offer would still insist that Iran halts enriching uranium to 20 per cent, shuts down its controversial Fordo uranium enrichment plant and sends abroad all uranium already enriched to 20 per cent.

"This still forms the basis of the demands of the 5+1 group," said the source who asked not to be identified.

Another Western source said the powers could discuss lifting sanctions on Iran in exchange for specific concessions, although the source provided no further details.

Earlier reports said the powers could consider easing sanctions on Iran's gold and precious metals trade.

Jalili said at the weekend Tehran would not go beyond its obligations or accept anything outside its rights under the non-proliferation treaty.

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Fiennes pulls out of Antarctic expedition

BRITISH explorer Ranulph Fiennes has pulled out of the expedition to cross Antarctica during the region's winter after developing a severe case of frostbite.

The 68-year-old and his five-member team had hoped to conquer what has been called one of the last great polar challenges - traversing nearly 4000km in a place where temperatures often dip as low as minus 70C.

The expedition, dubbed The Coldest Journey, said in a statement on Monday the team is working toward evacuating Fiennes from Antarctica, but the evacuation is being hampered by a blizzard.

The rest of the team plans to continue on.

Expedition organisers are trying to raise $US10 million ($A9.75 million) for the charity Seeing is Believing, which seeks to prevent blindness.

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Sinopec buys shale stake from Chesapeake

CHINESE oil giant Sinopec is investing $US1.02 billion ($A995 million) in a US shale field as it teams up with Chesapeake Energy Corp in a 50-50 joint venture, the companies say.

China Petroleum & Chemical Corp (Sinopec) will buy a 50 per cent interest in Chesapeake's 340,000 hectares in Mississippi Lime shale in northern Oklahoma, they said in a joint statement.

The two companies will share the costs of all future exploration and development, while Chesapeake will be in charge of leasing, drilling and operations and marketing activities.

Oklahoma City-based Chesapeake, the second-largest producer of natural gas in the United States, has been shedding assets to pare down massive debt.

The Mississippi Lime joint venture with Sinopec "moves us further along in achieving our asset sales goals and secures an excellent partner to share the capital costs required to actively develop this very large, liquids-rich resource play", said Steven Dixon, Chesapeake's chief operating officer.

Chesapeake produced on average 34,000 barrels of oil equivalent per day from the Mississippi Lime assets in the 2012 fourth quarter, and at the end of last year proven reserves were estimated at 140 million barrels of oil equivalent.

The transaction was expected to be completed in the 2013 second quarter.

Analyst Paul Ausick of 24/7WallStreet.com noted that Chesapeake already had sold more than $US3 billion in assets to China's energy giant CNOOC.

"The interesting thing that could develop from this is a sale of a US producer - not necessarily Chesapeake, of course - as a result of the recently approved $US15 billion acquisition of Nexen Inc by CNOOC," he said.

"The US approved the sale of the Canadian-based firm and may have opened the door for more aggressive bidding by China's big state-backed oil firms."

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BP spill trial opens with scathing attack

THE blockbuster BP oil spill trial has opened with a scathing attack on the poor safety standards that led to the worst environmental disaster in US history.

Billions are at stake in the New Orleans courtroom where a federal judge is tasked with determining how much BP and its subcontractors should pay for the devastating Gulf of Mexico spill.

US prosecutors are determined to prove that gross negligence caused the April 20, 2010 blast that killed 11 workers and sank the BP-leased Deepwater Horizon rig, sending millions of barrels of oil gushing into the sea.

BP is equally determined to avoid a finding of gross negligence, which would drastically increase its environmental fines to as much as $US17 billion ($A16.5 billion).

BP is also hoping to shift much of the blame - and cost - to rig operator Transocean and subcontractor Halliburton, which was responsible for the runaway well's faulty cement job.

Transocean's poor safety record was the focus of the first lawyer to speak, Jim Roy of the plaintiffs steering committee, which represents thousands of individuals and business impacted by the spill.

Roy told the court the Swiss giant's top safety official on the multimillion-dollar rig "was not even minimally competent for this job".

"His training consisted of a three-day course. Amazingly, he had never been aboard the Deepwater Horizon," Roy said, noting the blowout was the seventh major incident aboard a Transocean rig in the space of 17 months.

It took 87 days to cap BP's runaway well, which blackened beaches in five states and crippled the region's tourism and fishing industries in a tragedy that riveted the nation.

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ESPN selling British channels to BT

ESPN is withdrawing from British and Irish television, announcing that its channels are being sold to the BT Group.

The US sports network increased operations in Britain in 2009 after capturing some domestic rights to show English Premier League matches.

But ESPN lost those rights, which were vital to attracting subscribers, for next season as BT joined BSkyB in showing English Premier League games for the first time.

The sports rights currently held by ESPN will transfer to BT, with the deal expected to be completed by July 31. Financial details were not disclosed.

BT, whose new sport operation is based at the London Olympics broadcast centre, said at least one of its channels will continue to carry the ESPN name.

"We could not be more proud of the TV channels built and nurtured by our talented team over the past four years," said Ross Hair, ESPN's managing director in Europe, Middle East and Africa.

"The value of that hard work is reflected in this deal with BT and the continuation of ESPN on television screens across the UK and Ireland."

BT's new channels will show the US sports currently shown on ESPN America, including college basketball, college football and NASCAR.

The rights to show the FA Cup, Scottish Premier League, Bundesliga and Europa League are among those that will also be transferring to BT.

ESPN will continue to run its sports websites in Britain.

Separately, ESPN said it is considering closing down its ESPN Classic channel in the Europe, Middle East and Africa regions.

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Boy's rap videos inappropriate: police

POLICE in the US say they have lodged child abuse and neglect complaints against a man whose nine-year-old son appears in sexually suggestive rap videos posted online.

The videos show the boy slapping a woman's buttocks, engaging in sexually suggestive dances and glorifying drug use and materialism.

Police say they are also informing Massachusetts child welfare officials about the videos that feature Luie Rivera Jr, who goes by the stage name Lil Poopy.

Lieutenant David Dickinson tells The Enterprise newspaper the videos are "a bit much for a nine-year old".

His father, Luis Rivera, says his son is simply acting and not doing anything wrong.

He says he plans to contact his lawyer.

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