Tesla Motors CEO Elon Musk, "I hope we did you proud"

In addition to payments made in 2012 and Q1 2013, today’s wire of almost half a billion dollars ($451.8M) repays the full loan facility with interest. Following this payment, Tesla will be the onlyAmerican car company to have fully repaid the government.

“I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the ATVM program” and “Particularly the American taxpayer from whom these funds originate,” said Elon Musk.

For the first seven years since its founding in 2003, Tesla was funded entirely with private funds, led by Elon Musk. Tesla brought its Roadster sports car to market with a 30% gross margin, designed electric powertrains for Daimler (Mercedes) and had done preliminary design of the Model S all before receiving a government loan.

In 2010, Tesla was awarded a milestone-based loan, requiring matching private capital obtained via public offering, by the DOE as part of the Advanced Technology Vehicle Manufacturing program. This program was signed into law by President Bush in 2008 and then awarded under the Obama administration in the years that followed. This program is often confused with the financial bailouts provided to the then bankrupt GM and Chrysler, who were ineligible for the ATVM program, because a requirement of that program was good financial health.

The loan payment was made today using a portion of the approximately $1 billion in funds raised in last week’s concurrent offerings of common stock and convertible senior notes. Elon Musk, Tesla’s Chief Executive Officer and cofounder, purchased $100 million of common equity, the least secure portion of the offering.

Source: Tesla Motors’

SOUTH AFRICA – Mahanyele Shanduka is the CEO of the Shanduka Group, founded in 2004. She was previously head of the Project Finance South Africa business unit at the Development Bank of Southern Africa.

CEO, Phuti Mahanyele Shanduka Of The Shanduka Group

Prior to that she was Vice President at Fieldstone, an international firm specialising in the financing of infrastructure assets. The organisation owns the controlling stake in McDonalds SA and is also in partnership with Coca-Cola.

Cyril Ramaphosa Executive Chairman

Shanduka Group, a black-owned and -managed investment holding company, recently announced the acquisition of a minority stake in MTN Nigeria. Worth US$335 million, the deal is the largest investment the group has made outside South Africa.

This is a significant development in the evolution of economic empowerment in South Africa. It is rare for a black-owned company to contribute its own equity and raise finance in the market to make a substantial investment in another African country.

They actively participate in the management of investee companies by providing alternative views at board level and board sub-committees by participating in strategy sessions, facilitating enabling relationships via our partner network, providing strategic input in the attraction, retention and development of critical talent, advising the progress on Broad Based Black Economic Empowerment in the medium term and assisting with the development and implementation of transformation plans.

Shanduka is invested in businesses in the following sectors:

• Resources
• Food and Beverages
• Energy
• Financial Services
• Property
• Telecommunications
• Industrial and General

CEO, Phuti Mahanyele Shanduka

Mahanyele Shanduka works as a World Economic Forum Young Global Leader and she was mentored by by business mogul Cyril Ramaphosa.

Mahanyele Shanduka graduated from De Montfort University in England with an MBA and holds a BA in economics from Rutgers University and completed a Harvard leadership course.

Shanduka Black Umbrellas (SBU) works with partners in the private sector, government and civil society to address the low levels of entrepreneurship and high failure rate of 100% black-owned emerging businesses in South Africa and nurtures qualifying 100% black-owned businesses in the critical first three years of their existence!

For more information: blackumbrellas.org/

Under the contract, the supply of up to 875 billion cubic metres of gas. The contract envisages annual supplies of up to 35 bcm of Rosneft-produced gas to the power plants of INTER RAO – Electric Power Plants (or any other INTER RAO UES power plants) beginning on [January 1ST 2016 and running through December 31 ST 2040] on a take-or-pay basis. 32.3 bcm of gas is to be supplied in 2016.

Under the agreement, natural gas and dry stripped gas will be supplied from oil fields, which will allow Rosneft to significantly increase associated petroleum gas utilisation.

Rosneft President and Chairman of the Management Board Igor Sechin said: “Rosneft has significant reserves of gas and producing and selling this gas is a priority in terms of generating additional profit for Rosneft shareholders. Concluding an agreement to supply gas directly to Russia’s largest generating utilities is the most effective way to monetise our reserves. It will also guarantee fuel supplies for power generation on transparent terms.”

“Our partnership with Rosneft, a global oil and gas major, is strategic in nature and will guarantee stable supplies of fuel to INTER RAO UES’ power stations,” said Boris Kovalchuk, chairman of the management board at INTER RAO UES. “This contract is designed to guarantee stability for our company in the long term and will allow us to considerably improve the efficiency of power generation in Russia.”

Lawrence Toet, Member of Parliament for Elmwood-Transcona, on behalf of the Honourable Joe Oliver, Canada’s Minister of Natural Resources, announced the Harper Government’s support for jobs and development of innovative clean energy technology in Winnipeg. Our government is contributing $3.4 million through Sustainable Development Technology Canada (SDTC) to help New Flyer Industries develop and implement its rapid-charge battery-electric bus propulsion technology. Mr. Toet was joined by Sailesh Thaker, Vice-President of SDTC.

“Today’s announcement is welcome news for our community. Our government is helping Canadian business develop innovative new energy technologies and create Canadian jobs – including right here in Winnipeg,” said Lawrence Toet, Member of Parliament for Elmwood – Transcona. “This electric bus technology developed by New Flyer Industries is an example of clean energy innovation that provides Canadians with high-quality jobs and contributes to our long term prosperity.”

“This is a clear example of what cleantech can do: we have here a technology that will bring down operational costs while reducing emissions,” said Vicky Sharpe, President and CEO of SDTC. “Together with its partners, New Flyer will put this technology to the test – a move that could revolutionize Canada’s transportation industry.”

“We’re really ‘charged up’ by the interest in our battery-electric bus,” said Paul Soubry, New Flyer’s President and Chief Executive Officer. “This important project further allows us to execute on our electrification project development. It pushes closer to the critical point of cost-effective commercialization of this propulsion technology in bus applications. We acknowledge the Canadian Government’s recognition of the need to push the electrification agenda and appreciate their substantial support in developing a sustainable future in battery-electric bus technology. This project will provide invaluable insight into day-to-day real-world battery-electric operational issues.”

New Flyer Industries will develop and build four electric buses and a high-capacity charging station. The company will then carry out a four-year in-service evaluation of a small fleet of buses with Winnipeg Transit to examine the charging system, battery capacity and component life and reliability. In addition to having a number of positive benefits for the environment, the use of electric buses could also significantly reduce operating costs and total life cycle costs when compared with diesel and hybrid buses.

On behalf of the Government of Canada, SDTC supports the development of Canadian clean technologies, readying them for growth and export markets. With a portfolio of companies under management valued at more than $2 billion, SDTC supports the cleantech industry which is a key driver of jobs, productivity and economic prosperity.

SDTC operates two funds aimed at the development and demonstration of innovative technological solutions. The $590 million SD Tech Fund™ supports projects that address climate change, air quality, clean water, and clean soil. The $500 million NextGen Biofuels Fund™ supports the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels.

Source: www.nrcan.gc.ca/

BP has signed the deal to sell its 50% stake in TNK-BP to Russian oil giant Rosneft. This can make the Russian state-owned enterprise the world’s biggest listed oil company. Also, BP expects to have two seats on Rosneft’s nine person board. The deal is due to be completed by the first half of 2013.

“This is a good big deal which is important not only for Russia’s energy sector, but for the entire Russian economy,”commented Russia’s President Vladimir Putin. The move demonstrates Russia’s willingness to cooperate with foreign partners, Putin said, adding that he hoped to build a sound relationship with BP.

The Alfa-Access-Renova (AAR) consortium led by billonaires Mikhail Fridman hired Rothschild Group to organize a loan to buy out BP’s 50% stake in the TNK-BP oil venture. TNK-BP was Russia’s 3rd largest oil company in terms of reserves and crude oil production. It was 50% owned by BP and 50% by a group of Russian businessmen. The money was borrowed by TNK-BP, rather than AAR, Kommersant Daily reported citing its sources.

Rothschild Group raised funds from several banks, it said. Rothschild is one of the world’s largest independent financial advisory groups, employing approximately 2,800 people in 40 countries around the world and have a full-scale advisory businesses across the world including locally staffed offices in China, Brazil, India, the United States of America, the Middle East and Asia Pacific.

BP said on Monday it agreed to sell its 50% stake in the consortium to Rosneft for a mix of $17.1 billion in cash and 12.84 % of Rosneft, according to Interfax. The British company is also planning to use some of the money it’s reaped from the sale to raise its stake in Rosneft to 19.75%. Such a stake gives BP the right to claim a share of Rosneft’s earnings, as well as production and reserves.

On Monday Rosneft also confirmed earlier speculation about the acquisition of the other half of TNK – BP from a quartet of Soviet-born billionaires who make up the Alfa Access Renova (AAR) consortium. Rosneft said it “agreed terms with the AAR consortium to acquire AAR’s 50% interest in TNK-BP for cash consideration of $28.0 billion, subject to the negotiation, corporate and regulatory approval and certain other conditions.”

Rosneft President  Igor Sechin has estimated the cost of the deal to consolidate 100% of  TNK-BP at $61bln. “Taking Rosneftegaz’s stock  into account, this  deal will require $61 billion – the third largest deal in the world,” Sechin said during a meeting with Vladimir Putin.

There’s no real market estimate of what TNK-BP is, because the market capitalization of TNK-BP holding, the listed entity, is just about $40 billion. At the same time you shouldn’t forget that the TNK-BP holding doesn’t include a 50% stake in Slavneft.” Nor does it take into account a Ukrainian refinery, as well as some huge international assets for which around $1bln was paid last year, Nazarov added.

Given that Rosneft earned $10.2bln in net income during 2011, the Russian oil producer will need to finance the deal. About $15bln should come in a form of loans from international banks, with an additional $3bln coming from domestic lenders, Reuters quotes unnamed financial sources.

Rosneft is the leader in the Russian oil industry and one of the largest oil and gas companies in the world. Its main shareholder is the Russian government-owned Rosneftegaz, which holds 75.16% of its stock.

Source: rt.com

TransCanada Corp. said on Monday it had restarted its major oil pipeline to the central United States from Canada following a five-day outage to check for a potential defect on the line in the U.S. Midwest.

TransCanada, the country’s largest pipeline company, said it would operate the 590,000 barrel-a-day Keystone pipeline at reduced rates for up to 24 hours while it completes its testing.

The outage of the line, which extends to southern Illinois, and the Cushing, Okla., storage hub from Hardisty, Alta., will affect scheduled shipments for this month, though the extent is not yet known, spokesman James Millar said in an email.

The Keystone pipeline

“We will be having direct discussions with our customers regarding the impact this will have on their deliveries to us,” Mr. Millar said.

The line, which can move up to a quarter of Canada’s crude exports to the United States, will return to regular contractual deliveries in November, he said.

The unplanned shutdown pushed up oil prices last week, but they have since fallen back. November crude on the New York Mercantile Exchange sank $1.32 (U.S.) to $88.73 a barrel on Monday on economic worries and expectations that Keystone would restart.

TransCanada shut the pipeline late Wednesday when an in-line inspection tool detected what the company called a “small anomaly” on the pipe.

It did not give the location, but the U.S. Pipelines and Hazardous Materials Safety Administration said it had sent an inspector to observe repairs on a section between Missouri and Illinois.

The pipeline is the first phase of TransCanada’s overall Keystone system and has been in operation since 2010.

The next phase, between Cushing and Gulf Coast refineries, is under construction amid opposition from some landowners. The contentious Keystone XL project, between Alberta and southern Nebraska, still requires U.S. federal approval after U.S. President Barack Obama rejected the initial application early this year.

TransCanada has re-applied to build that $5.3-billion portion of the system, hoping for an approval early next year.

Source:  Reuters/The Canadian Press

The BP Texas City refinery is one of the largest and most complex in the U.S., with a Nelson complexity index of 15.3. The facility is strategically positioned to provide products throughout the U.S. Gulf Coast, Midwest and Southeast, as well as into export markets. The refinery has the flexibility to process a wide range of crude oils, and has access to price-advantaged mid-continent and Canadian crudes via pipelines as well as waterborne cargoes. The cogen facility provides steam for the refinery and other local third-party facilities and the electric power for the refinery, selling any excess to the utility grid. In addition to the Texas City facilities, the transaction includes three intrastate NGL pipelines originating at the refinery, shipper history on Colonial pipeline representing 50,000 barrels per day (bpd) and light product terminals in Jacksonville, Fla.; Charlotte and Selma, N.C.; and Nashville, Tenn. The transaction also includes assignment of branded-jobber contracts supplying approximately 1,200 BP retail locations, representing approximately 64,000 bpd of gasoline sales, in the southeastern U.S.

• Adds a world-scale 451,000 barrel per day refinery
• Includes 100% ownership of cogeneration facility
• Adds four light product terminals, refinery-related pipeline assets and Colonial Pipeline shipper history
• Assignment of branded-jobber contracts for approximately 1,200 retail locations
• Expands MPC’s integrated operations model
• Expected to be immediately accretive to earnings

“This world-scale refinery and related assets complement our current geographic footprint and align well with our strategic initiative of growing in existing and contiguous markets to enhance our portfolio. This acquisition will provide MPC the opportunity to capture synergies across our existing Gulf Coast operations; optimize commercial and process improvements; expand our retail presence in the Southeast; and enhance our ability to sell products into export markets,” said MPC President and Chief Executive Officer Gary R. Heminger. “The acquisition of these assets at an attractive price provides the opportunity to add significant long-term value to our shareholders. We are pleased that MPC’s financial performance and cash generation allow us to continue our balanced approach of making value-enhancing investments in the business and returning capital to our shareholders.”

Heminger also stated, “We have a long-standing commitment to safe and environmentally-conscious operations. BP has made significant investments to improve the safety, reliability and environmental performance of the refinery in recent years. We will leverage those investments in the refinery with our continuing focus on safe and reliable operations. In addition, we have been a part of the Texas City community for many years through our Texas City refinery, and this acquisition will deepen our commitment to that area.”

Conference Call

At 11:30 a.m. EDT today, MPC will hold a webcast and conference call to discuss this transaction. Interested parties may listen to the conference call on MPC’s website at http://www.marathonpetroleum.com by clicking on the “Conference Call Oct. 8″ link in the upper right corner of the page.

Additional materials concerning the transaction, including a slide presentation, can be found prior to the conference call on MPC’s website at http://www.marathonpetroleum.com by clicking on the “Conference Call Oct. 8″ link in the upper right corner of the page or by hovering over the “Investor Center” link, selecting “Events and Presentations” from the drop-down menu and clicking “I Agree” on the “Terms of Use” page. Replays of the conference call will be available on the company’s website through Tuesday, Oct. 22.

For additional information about the company, please visit our website at http://www.marathonpetroleum.com.

The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. Rosneft has been included in the Russian Government’s List of Strategic Enterprises and Organizations. The state holds 75.16% in the Company (through OJSC ROSNEFTEGAZ).

Rosneft is also one of the leading independent gas producers in Russia and the company plans to invest $20bln in the Junin 6 project, with an additional $16 billion going to Carabobo 2 project.

The Junin 2 project has special significance, according to President Hugo Chavez during talks with the Rosneft head during his visit to Venezuela.

“This will be first oil, which is developed by the Russian company in South America,” the Venezuelan President said, adding that earlier, only U.S. companies had the right to produce oil in Venezuela.

Venezuelan President Hugo Chavez(R) talking with Russian Igor Sechin, president of Russian oil company Rosneft , during an inspection of the construction site of a housing project in Caracas on September 26, 2012. (AFP Photo / Presidencia)

The Carabobo 2 project covers a part of Venezuela’s vast Orinoco heavy crude belt, which is to be jointly developed by Rosneft and Petroleos de Venezuela S.A. (PDVSA). The Junin 6 project is also in the Orinoco belt and involves the National Oil Consortium, which has Russian oil companies such as Rosneft, Lukoil, TNK – BP, Gazpromneft and Surgutneftegaz, as members.

Rosneft has a vast and high-quality reserve base, with total proved hydrocarbon reserves of 22.8 bln barrels of oil equivalent – among the best indicators for a global publicly traded oil and gas company. Moreover, Rosneft is second-to-none on an international scale in terms of total proved liquid hydrocarbon reserves. The Company’s proved reserve-to-production ratio is 25 years. Rosneft operates mainly conventional reserves, so the Company is well-placed for efficient increase in hydrocarbon production. In addition, Rosneft has access to 12.5 bln barrels of oil equivalent of probable reserves and to 10.5 bln barrels of oil equivalent of possible reserves, which will become the main source of proved reserve extension in the future.

Source: RT.com