Falklands : Hydrocarbons Daily Record (24/08/06)
Submitted by Falkland Islands News Network (Juanita Brock) 25.08.2006 (Article Archived on 08.09.2006)
China wants to do business and has told Venezuela to leave the politics at home.
HYDROCARBONS DAILY RECORD: THURSDAY, 24 AUGUST 2006
By J. Brock (FINN)
At 1800 LMT on Thursday, 24 August 2006 Light Sweet Crude gained .60 Cents to stand at $72.36 and Brent Crude gained 66 Cents to stand at $72.68.
Nervousness about new reports from Prudhoe Bay Alaska has added to the upward trend of crude prices today. The original estimate of half capacity has been downgraded to a quarter of the capacity at the poorly maintained facility. Gasoline supplies in the United States, however, remain good.
Good economic indicators helped add points on to the FTSE today.
At the close of play today, the FTSE 100 was up 9.06 points to settle at 5,869.10 and the FTSE 250 was up 5.75 points to end up at 9,459.90. FTSE Small Cap fell 3.07 points to settle at 3,405.90.
DOW JONES AND NASDAQ
Sluggish reports on the economy have caused Wall Street to close relatively flat but up today.
At the end of play today the Dow Jones Index gained 6.56 points or 0.06% to settle at 11,304.46 and the NASDAQ closed up 3.07 points or 0.11% to settle at 2,137.11
DEVELOPING REGIONAL FACTORS:
Bolivia’s President Evo Morales vehemently defended the nationalisation of Bolivia's petroleum industry and admonished the Senate, who voted to censure the nation's hydrocarbons minister. President Morales called conservative legislators who criticised Andres Soliz, "traitors" who are obstructing policy changes. Opposition members of the Bolivian Senate also voted to open an investigation of Jorge Alvarado, head of state petroleum company, YPFB. Mr. Andres Soliz submitted a letter of resignation, indicating the vote against him came from people who wanted to return to the past.
The Ecuadorean Constitutional Tribunal's decision to uphold higher payments on extraordinary oil revenues by private companies to the government cannot be appealed, a high-ranking industry official said Thursday. Saying that the decision cannot be appealed or repealed, Rene Ortiz, President of the Private Hydrocarbons Industry Association warned that that Ecuador will eventually face a cost to changing the Hydrocarbons Law and the terms of contracts with oil companies. Changes to the law were recommended by Ecuador’s former Economy Minister, Mr. Diego Borja, who felt that 20% of oil company profits was not enough, especially as oil prices were rising. His successor, Armando Rodas, said changes to the Hydrocarbons Law will bring in an additional $331 million in 2006.
Ecuador's Energy Minister Ivan Rodriguez said on Thursday that his government will auction three concessions to develop oil projects in his country. An investment of about $550 million will do the trick if you are interested. It is hoped the concessions will be called by mid September with a view to sign contracts early in November. According to Mr. Rodriguez the three fields have proven reserves of 120 million barrels and if expanded would produce 53 million barrels. Petroecuador, the state-owned oil company, are currently operating the fields.
Peruvian Mines and Energy Minister Juan Valdivia said today that energy consultant Cesar Gutierrez will become the president of the board of the state-owned oil company Petroleos del Peru S.A., (Petroperu) He replaces Roger Arevalo, who was appointed to the post by former Peruvian President Alejandro Toledo. Other members of the board have also been replaced since President Alan Garcia took office in July. The Energy Minister said that the criteria for appointments to the board included honesty and professionalism, Created in 1969, Petroperu owns refineries as well as a pipeline and service stations. It has about half of the market share in Peru. A law approved by Peru’s Congress gives more independence to Petroperu and removes it from oversight by the National Public Investment System and from the National Fund for Financing State Business Activities.
President Hugo Chavez has signed agreements with the People’s Republic of china for shipping and infrastructure in his country. He has stated that he wants to wean off dependence of crude sails to the United States but China has decided to negotiate the agreement purely on business grounds and to stay out of politics. The deal is for oil tankers and for Chinese investment in a pipeline that would reach to the Pacific Coast.
Share prices at the close of play on Thursday, 24 August 2006:
A general malaise prevails amongst investors this week as they are hungry for positive news about exploratory rigs but are not receiving adequate information from the exploratory companies who are playing cards close to the chest.
Desire Petroleum Plc was down 0.75 points or 2.03% on the day to settle at 36.25.
Falkland Oil and Gas Limited (FOGL) was down 2.50 points or 2.22% on the day to stand at 110.00.
Rockhopper Exploration ended up 1.00 points or 2.50% on the day to settle at 39.00
Borders & Southern ended down 0.25 points or 0.55% on the day at 45.25