Romanian Oil Rig Comes Under Iranian Fire
Romanian Oil Rig Comes Under Iranian Fire
http://www.newsday.com/news/nationwo...,4251196.story
By ALISON MUTLER
Associated Press Writer
August 22, 2006, 6:42 AM EDT
BUCHAREST, Romania -- A Romanian oil rig off the coast of Iran came under fire Tuesday from an Iranian military warship and was later occupied by Iranian troops, a company spokesman said.
The Iranians first fired into the air and then fired at the Orizont rig, said GSP spokesman Radu Petrescu. Half an hour later, troops from the ship boarded and occupied the rig and the company lost contact with the 26 crew members shortly afterward.
Petrescu said he had no information about any injuries or deaths. The Orizont rig has been moored near Kish island in the Persian Gulf since October 2005, he told the Associated Press.
Eugen Chira, the political consul at the Romanian Embassy in Tehran, confirmed the incident, but provided few details. "Some forces opened fire. That an incident has happened is true. We have no details or the reason yet," he said.
GSP, also known as the Oil Services Group, is a private Romanian company established in 2004 which operates six offshore rigs that it bought from Romania's largest oil company, Petrom.
Two of its rigs are operating near the Iranian coast in the Persian Gulf as part of a deal signed between Petrom, GSP and Dubai-based Oriental Oil Co.
The Romanian company was in Iranian courts earlier this year over a dispute involving another one of its oil rigs, Fortuna, the financial weekly Saptamana Financiara has reported. It was unclear whether Tuesday's incident was related to legal issues.
The Orizont rig was built in 1987 and weighs 13,000 tons.
Kish, in the southern end of the Persian Gulf, houses the offices of about 100 Iranian and foreign oil companies.
European Stocks Slide After Iran Attacks Oil Rig; Axa Drops
http://www.bloomberg.com/apps/news?p...axQ&refer=home
By Chris Fournier and Anne Pollak
Aug. 22 (Bloomberg) -- European stocks fell after Iran's military seized control of a Romanian oil and gas rig in the Persian Gulf. Axa SA and Roche Holding AG led declines.
"This is just another reminder that geopolitical risks are something markets are going to have to get used to,'' said Robert Talbut, who helps oversee $46 billion as chief investment officer at Royal London Asset. "The markets are pretty sensitive to developments in the Middle East.''
The Dow Jones Stoxx 600 Index lost 0.1 percent to 323.26 at 12:13 p.m. in London, after earlier rising as much as 0.5 percent. The Stoxx 50 slid 0.1 percent. The Euro Stoxx 50, a measure for the 12 nations sharing the euro, fell 0.2 percent.
An Iranian naval vessel fired on the rig owned by Romania's Grup Servicii Petroliere (GSP) in the Salman field and took control of its radio room this morning, Lulu Tabanesku, Grup's representative in the United Arab Emirates said in a phone interview from Dubai today.
Shares of Axa, Europe's second-largest insurer, fell 1.7 percent to 28.19 euros. Roche, the world's biggest maker of cancer drugs and diagnostic tests, lost 2.8 Swiss francs, or 1.3 percent, to 219.7.
"The Iran issue is weighing on markets,'' said Francisco Salvador, the head of equities at Venture Finanzas SA in Madrid. "The geopolitical front had relaxed a bit in recent session and this is a return to the tension.''
European Aeronautic, Defence & Space Co. slid 2.2 percent to 22.27 euros. ABN Amro Holding NV cut its rating on the parent of beleaguered aircraft-maker Airbus to "sell'' from "add,'' saying there is "no clear value for shareholders.''
Lafarge Bid
Lafarge SA, the world's largest cement maker, rose after La Tribune reported that investment funds may bid for the company's roofing unit.
Lafarge added 1 percent to 101.2 euros. The company's roofing operation is valued at around 2 billion euros ($2.6 billion), La Tribune said. Advent, Carlyle, Candover, Doughty Hanson, LBO France, Alliance Capital, Bain Capital and Cinven are among the funds that considering making a bid, the French daily reported, without saying were it got the information.
Topdanmark A/S dropped 1.6 percent to 841 Danish kroner. Denmark's No. 2 insurer said second-quarter profit dropped 14 percent to 271 million kroner ($46 million) after the company's tax bill doubled.
Wienerberger AG declined 2.8 percent to 36.59 euros. The world's biggest brick maker said second-quarter net income dropped 5.1 percent to 74.5 million euros as energy costs spiraled and it spent money opening new plants.
Analysts had predicted that earnings would gain. Sales advanced 6.6 percent to 628 million euros.
BHP, the world's largest mining company and Australia's No. 1 oil producer, rose 0.4 percent to 1054 pence.
BHP Earnings
BHP may say tomorrow that fiscal second-half net income jumped to a record $6.34 billion because of rising copper and iron ore prices. Copper prices have gained 72 percent in London so far this year.
"It's very dangerous to bet against resource companies,'' said Mark Tinker, head of strategy at Execution Ltd. in London. "There's a lot of cash in the industry and we are seeing more indications of mergers and acquisitions.''
