Taipei Times-THE GUARDIAN Sunday, May 04, 2003,Page 10

Shell capped a record first quarter for the oil majors by announcing a doubling of earnings Friday as war in Iraq, turmoil in Nigeria and strikes in Venezuela provoked a surge in prices.

The three biggest oil groups -- ExxonMobil, Shell and BP -- earned almost US$16 billion in the first three months of this year when political unrest, military action and a cold winter in North America pushed prices to the ceiling.

Shell's net income was up 136% at US$5.3 billion, boosted by the US$1.3 billion sale of its stake in German gas company Ruhrgas, while its adjusted earnings -- its preferred measure -- rose 96% to US$3.9 billion.

Phil Watts, chairman, sounded a cautionary note by conceding that this happened in an "exceptional" quarter. He warned that the high margins were likely to be unsustainable in the months ahead.

Shell's record earnings came a day after Exxon, the world's largest oil group, reported the biggest quarterly corporate profits in history at US$7 billion and three days after BP announced its own record of US$3.7 billion.

Shell took some gloss from its figures by saying return on capital employed, the industry's benchmark, was 18.3%, against 20% at BP and 30% at Exxon.

The Anglo-Dutch group's earnings were propelled by a rise in profits at its exploration and production unit from US$1.45 billion a year ago to US$2.8 billion, on the back of higher prices.

Output of oil and gas rose to its highest levels in 10 years, up 6% to 4.2 million barrels a day, partly due to the contribution of Enterprise Oil, bought a year ago. Shell expects average output this year to be 4.1 million barrels a day.

The group said prices for the second quarter would depend on the level of OPEC oil available, the impact of the cartel's recent decision to cut output, lower seasonal demand and, not least, the return of Iraqi exports to the market.

OPEC is reducing production by 2 million barrels a day from June 1 and is holding out the prospect of further cuts to prevent over-supply and a collapse in prices.

Shell said oil refining margins were considerably higher than a year ago, with demand bolstered by the cold winter, high US natural gas prices and the extended shutdown of Japan's nuclear power plants.

"Margin outlook for the remainder of 2003 is uncertain and much will depend on the pace of global economic recovery and Opec output policy in response to the expected return of Iraqi crude exports to the market," it said.

Watts added: "In uncertain economic times, the diversity of our businesses and our geographic spread are strengths." This story has been viewed 223 times.

Posted on Sat, May. 03, 2003 GLENN MCKENZIE Associated Press

PORT HARCOURT, Nigeria - Hostages left offshore oil rigs where striking Nigerian workers held them captive for weeks - signaling a peaceful end to the standoff Saturday.

Some essential staff would remain behind on the four oil-drilling platforms, but "everyone else, they are departing in phases," said Guy Cantwell, a spokesman for rig owner Transocean Inc., based in Houston.

The evacuation "is continuing and we are going to do it as quickly as we can," Cantwell said.

Many of the 170 Nigerian and 97 expatriate hostages - including 35 Britons, 17 Americans and two Canadians - traveled Saturday with their 100 captors on boats and helicopters to port cities in the oil-rich southern Niger Delta.

Nigerian oil workers took the hostages on installations 23 miles off Nigeria's southern coast as part of a wildcat strike launched on April 19 over grievances with Transocean's management.

Company officials and strikers' representatives negotiated the captives' release Friday, after which the first hostage was soon freed.

The strikers have demanded the reinstatement of fired workers and that they be transported to the rigs by helicopters, not boats.

Their principal concerns will be addressed at a later date, according to a communique issued after Friday's talks.

Sweaty and bedraggled, the released hostages told of threats, tedium and discomfort, although there were no immediate reports of injuries.

Some hostages had earlier expressed fears their captors may kill them or blow up the rigs if security forces tried to storm the facilities.

"It was tense at the start, but the last few days weren't bad," said Mark Richards, a Transocean employee from Portsmouth in the United Kingdom. "There was some intimidation," he said, without elaborating.

"This was not that bad. Sometimes it's worse," said another oil worker, Luis Peraza of Puerto La Cruz, Venezuela, who had been on board Nigerian rigs during two previous strikes.

Two other helicopters carrying hostages were seen in Warri, another port town. Two ferry boats containing more than 40 expatriates and Nigerians landed at the port of Onne, near Port Harcourt.

A Nigerian labor leader who helped negotiate the hostages' freedom said he believed all captives were expected to leave the rigs on Saturday.

The captives were from several companies, including Transocean, Shell Oil Co., TotalFinaElf and U.S.-based Baker Hughes.

Sabotage and hostage-takings by community activists, labor groups and others demanding compensation for land use and alleged environmental damage are common in the southern delta, where nearly all of Nigeria's oil is drilled.

Despite the region's vast petroleum stores, most residents remain desperately poor. Nigeria is one of the world's largest oil exporters and the fifth-largest producer of U.S. oil imports.

<a href=www.nzherald.co.nz>nzherald.co.nz-Reuters 04.05.2003 11.45am - By DANIEL BALINT-KURTI

PORT HARCOURT, Nigeria - The first batch of freed foreign hostages, seized by striking Nigerian oil workers on offshore rigs more than two weeks ago, docked safely at a mainland port today, witnesses said.

"It was a little difficult but it worked itself out," said a British man in his 30s as he stepped ashore. He declined to give his name as did his colleagues.

The dishevelled looking former captives walked briskly and crowded into two waiting vehicles which sped off into town. Plans for their onward journey were not clear.

The nearly 100 foreign workers, held captive on four oil rigs since April 16, included 35 Britons and 17 Americans.

Louis Perada, a hostage from Venezuela who was ferried to safety by helicopter earlier, said: "At the beginning it was a little bit apprehensive. But it became normal. You don't expect people who have been living with you for two years to harm you."

At the start of the drama, some hostages wrote in e-mails to their spouses of threats by the strikers to blow up the rigs.

Like the others, Perada was taken to the port city of Port Harcourt. It was unclear which rig he had been on.

Most hostages were ferried to safety on the Susan McCall and the Adams Surveyor. Both boats arrived from the M.G. Hulme, one of four rigs operated by Houston-based Transocean Inc. Some 400 people were working on the rigs when they were seized.

About a dozen paramilitary policemen with semi-automatic weapons and horsewhips kept a small crowd of onlookers at bay.

One of the few Nigerians who travelled with the foreigners denied that the expatriates had been hostages.

"They were not hostages," snapped John Bojor.

The strikers agreed on Friday to free their captives after talks convened by the umbrella Nigeria Labour Congress at the request of Nigerian President Olusegun Obasanjo.

The junior workers, who blocked rig helipads with cranes and drums to cut access by air, had demanded reinstatement for five sacked union officials by Transocean.

Most local rig workers are members of the NUPENG oil union, which helped negotiate the release of the hostages.

Mystery surrounded the situation on the other rigs, with one port official saying phone calls to the platforms were not being answered. He said he was not sure the strike had been completely called off on all platforms.

The agreement called for the evacuation of all the Nigerian rig workers as well, a large-scale operation requiring the use of boats and helicopters.

A port official said he expected a total of about 65 people, mostly foreigners, to arrive from the Hulme on Saturday.

The Hulme is on contract to TotalFinaElf and the other three are drilling for Royal Dutch/Shell. All are in southern Nigeria's Gulf of Guinea.

<a href=biz.thestar.com.my>thestar.com.my By HAH FOONG LIAN

THE United States has predominantly been a big market for Canada, but the latter is now looking at other countries especially in South-East Asia, including Malaysia, to export their agri-food products. In their effort, some Canadian producers are even exploring the Muslim food market, a venture that will inevitably raise the matter of halal certification.  

Some of the producers are confident that they will be able to meet that expectation, though. John Ross, assistant director of red meat section (marketing and industry services branch of the Agriculture and Agri-Food Canada), said Canadian producers were now learning to better segment the market place, including ensuring that beef exported to Muslim countries are certified as halal. 

Interviewed during the recent Sial Montreal, the second North American Edition of the International Food, Beverage, Wine and Spirits Exhibition, Ross said Canada was beginning to look at the production of halal beef due to its immigrant population and the Islamic Society of North America would look into the certification. 

Canada, he said, had a track record of producing halal beef for Toronto. It later expanded its market to New York to serve the large Muslim community there. 

Ross said about 20% of Canadian beef exported to other countries were halal, and it is also being exported to Saudi Arabia, Egypt, Indonesia and even Malaysia, which was Canada’s 24th largest export market for agri-food products. 

As different countries may have their individual requirements, the importing countries will determine the halal certification, Ross said. 

On Canada’s beef production, Ross said there were 100,000 producers in the country, with the top 20% accounting for some 80% of production. Sixty per cent of the beef produced are exported in the form of fresh and frozen meat. The US takes up 75% of the exported products. 

Canadian cattle, said Ross, are fed on grains for 120 days, which results in high quality grain-fed beef which were a little lighter, sweeter and more tender. 

The Sial Montreal saw the attendance of 686 exhibitors from 37 countries during the exhibition held from April 2 to April 4. 

Over 12,000 visitors, who included professionals from the food sector and buyers from 80 countries, attended the fair to engage in networking activities and enter into profitable trade negotiations. 

Apart from exporting halal beef, Canadian producers are also looking at international markets for halal French fries. 

One company that is confident of meeting the halal certification for this product is French fries producer St-Michel Arneault Inc. 

The company is looking at selling its halal French fries in Malaysia by starting a halal certification, said its export director, Bruno Lanoie. “We can get the Islamic authorities from importing countries to come and certify our production,” he said, adding that the company preferred to work on a bigger consumer base where it would accept orders of one or two containers. One container can accommodate between 20,000kg and 22,000kg of French fries.  

“Our selling point is that we are a small company and one of our specialties is to make labelling. We also cater to retailers who cannot get their supply (of French fries) from the bigger boys,” Lanoie said. 

Between 6% and 65% of the company’s products are for the export market, which comprises French Polynesia, Mexico, Caribbean Island, Venezuela, Indonesia, Singapore, Philippines, Thailand, and Hong Kong.  

Established 30 years ago, the company hires between 60 and 65 workers and makes about US$30mil (RM115mil) year in sales. 

Halal lamb is another product that Canadian producers are keen to sell. 

Dave Fiddler, marketing manager of Canadian Prairie Lamb, said the company had sold halal lamb to Eastern Canada. It began selling processed lamb products last June to restaurants and hotels. 

Fiddler said the company’s processed products consisted of the legs and shoulders of lamb. Partly processed, the lamb products were convenient since they just needed to be heated up, he said. 

The two-year-old company has a slaughter facility, which has the capacity to slaughter 2,000 lambs a week, in Alberta while its manufacturing plant is in Saskatchewan. 

With the producers brimming with optimism, it might not be long before we see the produce section of our supermarkets filled with halal products from Canada.  

Henry McDonald, Ireland editor Sunday May 4, 2003 guardian.co.uk-The Observer

Irish police can now pinpoint most of the IRA arms dumps in the Republic, The Observer can reveal.

The sites of 75 per cent of the secret hides containing tonnes of guns and explosives are known to the Garda Siochana. But a senior officer told The Observer this weekend that political considerations prevent the force from digging for the arsenals.

The hidden arms, which include surface-to-air missiles and tonnes of Semtex explosive, has become one of the main obstacles in the Irish peace process, with unionists demanding that the IRA decommission its arsenal.

The revelation that the security forces in the Republic know the whereabouts of the 'super dumps' comes after the Ulster Defence Association handed over a number of bombs to police in north Belfast yesterday. Eight pipe bombs were left for the police to collect in the loyalist Tigers Bay around midday.

The homemade bombs belonged to the UDA's so-called North Belfast Brigade. Made from industrial piping, packed with nails, ball bearings and iron filings and set off with a lit fuse, similar bombs have been used in sectarian rioting and the intimidation of Catholics in the area over the last five years.

The UDA leadership said it had handed over the pipe bombs to lower communal tensions in the run-up to Ulster's marching season. It also said the move was to assure the public of its commitment to the John Gregg initiative, 'which promises to work for better conditions for loyalists, especially those living in interface areas'. The initiative is named after the UDA terrorist killed by allies of Johnny 'Mad Dog' Adair in a loyalist feud this year.

But the UDA ruled out any more acts of decommissioning as a means of exerting pressure on the IRA to follow suit. 'We would emphasise that this action is not construed as an act of decommissioning. The UDA assures the loyalist people of north Belfast that we will remain their last line of defence.'

A spokesman for the UDA's political wing, the Ulster Political Research Group, welcomed the move.

Speaking in Tigers Bay, Sammy Duddy, the UPRG spokesman, said: 'We think it's a very positive move. People on interface areas have suffered enough. If the nationalists would only take a similar line, there would be no interface violence.'

The rift between Sinn Fein and the Irish government widened yesterday after a Dublin Cabinet Minister called on the IRA to be clearer about ending their 'war'.

Speaking in Armagh City after a meeting with local SDLP activists, Irish Minister Dermot Ahern said: 'Tony Blair shared the Irish government's view that the IRA were only a whisker away. We now need to look at where we are and move forward by pressing for clarification on the final point. If the original IRA statement had_ clearly stated an end to paramilitary activity, there would have obviously been no need for clarification.'

Following the decision to postpone this month's Assembly elections, Gerry Adams launched an attack on Irish Justice Minister Michael McDowell. The Sinn Fein president said he had no confidence in McDowell's ability to negotiate with the British Government. 'I wouldn't send him out for a bottle of milk,' Adams jibed as relations between republicans and the Irish government soured at the end of last week.

Despite the row there is no prospect that the Irish government will sanction moves to raid the IRA arms dumps, which are stretched across the Republic from Co Kerry in the south to Meath and Louth. Bertie Ahern's government prefers to persuade the republicans that their weapons have become a dead weight around Sinn Fein's political ambitions.

A senior Garda officer told The Observer last week that a recent intelligence breakthrough had helped the force locate up to 75 per cent of the IRA's arms hides. 'Moving on those is a political matter and the politics at the moment means there will be no drive against them. The only way I could see them being raided is if there was a return to violence by the Provos, which is now extremely unlikely.'

The officer declined to go into detail about the latest intelligence boost, but it is understood that it came from informants seeking a deal with the Irish government.

He said there was additional intelligence that the IRA was planning to dispose of its Semtex in a deal with narco-terrorists in Colombia. The Irish police have established that the IRA explored the possibility of shipping out Semtex to the left-wing Farc guerrillas via Venezuela in exchange for hundreds of thousands of dollars. Three IRA suspects are accused in Bogotá of training Farc to build homemade weaponry, including mortar bombs and rockets. The trial of the trio, who include the IRA's head of engineering Jim Monaghan, will reopen in June.

Tony Blair will face angry protests when he arrives in Dublin for a summit with Bertie Ahern to discuss the political deadlock in the North. Sinn Fein is organising a demonstration in the capital against Britain's decision to shelve elections until the autumn.