LCM Oil Investment Review March 2013

The LCM Oil Investment News Review is a monthly report compiled for London Commodity Markets to provide a snapshot of the state of the global oil industry.

2013

March 2013 London Commodity Markets

3/19/2013

Page | 2

Oil investment on the rise

Tax Breaks Encourage Oil Investment in the UK After a decade or so of declining production, new tax incentives are set to boost levels of oil investment in the UK to a record of around £13 billion this year, reports the Wall Street Journal. "This year and next we expect record levels of oil investment and that's a relief when you look at how much production has fallen. It will be a catch-up from a long period of underinvestment," said Mike Tholen, Oil & Gas UK economics and commercial director. Malcom Webb, Oil & Gas UK’s chief executive added “The UK continental shelf is now benefitting from record investment in new developments and in existing assets and

infrastructure, the strongest for more than three decades”. "The recent introduction of targeted tax allowances to promote the development of a range of difficult projects, coupled with the government's ground-breaking commitment to provide certainty on decommissioning tax relief, has prompted global companies and independent businesses alike to take another look at the UK as an investment destination," Mr Webb said. In an example of the new trend towards oil

investment, Scottish firm Scopus Engineering, which uses laser technology to allow oil firms to produce accurate models of assets, like drilling platforms, has raised £13 million in order to capitalize on surging spending by oil and gas firms, which want to raise production to meet strong demand for energy in places like China.

Scopus has been enjoying rapid growth on the back of booming activity in the UK North Sea and overseas. With 180 employees, Scopus has offices in a range of countries, including Abu Dhabi and Thailand and grew sales by 15% annually, to £13.1m, in the year to April 30, 2012. UK revenues surged 50% to £8.5m. Annual turnover for the current year is expected to reach £18 million.

Abu Dhabi Oil Investment in Malaysia

According to reports from Reuters, Abu Dhabi is to make a US$6.75 billion oil investment in

Malaysia’s Johor state for a petroleum storage facility. Malaysia is looking to develop the area

as an oil and gas hub, part of an ambitious economic development plan.

Page | 3

Oil Investment in Ecuador Increases According to the Ministry of Nonrenewable Natural Resources, oil investment in Ecuador was up by 6.6% in 2012 compared with the previous year, to around US$2.04 billion. The bulk of the investment came from state-run oil companies and was earmarked for exploration and production activities. Currently, Ecuador produces about 504,000 barrels of crude oil per day and expects to increase the oil production by about 4% this year. Source: WSJ

Iraq to make $173 billion oil investment Iraqi Oil Minister Abdelkarim al-Luaybi announced in a press conference this week plans for a 5 year, US$173 billion oil investment program that will see oil revenues rise to US$600 billion over the same period. Currently, Iraq extracts 3.15 million barrels of oil per day, of which around 2.5 million barrels are exported. Iraq's proven oil reserves hit 143.1 billion barrels. Source: Trend

Petrobras Unveils Oil Investment Plans Brazilian state oil company Petrobras has announced plans to spend US$236.7 billion over the next 5 years to double its crude oil output. The figure represents an increase over the company’s previous 5 year plan. The bulk of the investment is going towards existing projects, whilst some funds are earmarked for projects still in the evaluation phase. The investment will be used for exploration and production, refining, transportation and distribution. Source: zeenews.india.com

Azerbaijan Oil Investment Doubles Oil investment in Azerbaijan soured in February, more than doubling the amount invested the previous month. Oil investment now amounts to almost half of all direct investment in the country. According to the State Statistics Committee, around US$895 million was invested in the oil sector during Jan-Feb 2013. Source: Azerbaijan Business Centre

Page | 4

About London Commodity Markets

With over a century of combined experience in the rare earth elements and alternative investments

market, our team at London Commodity Markets have a proven track history of delivering excellent

consultation as well as an unrivalled service to all our clients.

As a result of this unrivalled standard of service, quality advice and ethical approach to the

marketplace, London Commodity Markets have become the globe’s fastest growing rare earth

elements and alternative investments company.

http://londoncommoditymarkets.com/

HEAD OFFICE

Citibank Tower, 25 Canada Square, Canary Wharf, London E14 5LQ

Tel: 00 44 (0) 203 514 6000 / Fax: 00 44 (0) 203 514 6001

Email: info@londoncommoditymarkets.com

Home Counties Office

Suite 1A, Park Street, Maidenhead, Berkshire SL6 1SL

T: 00 44 (0) 203 393 3176

Disclaimer:

This document is issued by London Commodity Markets for the sole purpose of assisting the recipient in deciding whether to proceed with further analysis of this potential

project and opportunity. The information in this document is general and informational only and is not intended to constitute professional or investment advice, or to be

construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or

purchase of securities. This document does not take into account the recipient’s particular investment objectives or financial situation. Before making any investment

decision, the recipient should conduct its own investigation and analysis of the project, as well as any data, pricing and projections described herein. London Commodity

Markets does not give any warranty or representation as to the reliability or accuracy of the information contained herein, nor does it guarantee that the stated pricing and

projections will be available to the recipient.

London Commodity Markets are neither registered nor regulated by the FSA, and are not authorised to carry out regulated activities. All markets relating to Rare Earth

Elements, Oxides and Metals are not regulated by the FSA, and as such anyone investing in these markets would not have access to the Financial Ombudsman Service (FOS) or

Financial Services Compensation Scheme (FSCS).

The information contained herein is for information purposes only, and is not intended for trading purposes or deemed to be investment advice or constitute a service.

London Commodity Markets, directors or any of its staff, agents, creators and administrators of londoncommoditymarkets.com website shall not be liable for any errors or

delays in the content of these pages, or for any actions taken in reliance thereon. As with any Investment there is a risk of losing money. Rare Earth Products are alternative

investments and such should be regarded as high risk.

LONDON COMMODITY MARKETS IS NOT REGULATED BY THE FSA OR SEC.