Falklands : Hydrocarbons Daily Record (11/08/06)
Submitted by Falkland Islands News Network (Juanita Brock) 12.08.2006 (Article Archived on 26.08.2006)
Despite expecting a windfall tax, natural resources companies in Peru are being asked to donate funds towards various projects.
HYDROCARBONS DAILY RECORD: FRIDAY, 11 AUGUST 2006
By J. Brock (FINN)
At 1800 LMT on Friday, 11 August 2006 Light Sweet Crude gained .35 Cents to stand at $74.35 and Brent Crude gained .35 Cents to stand at $75.63.
TRENDS
Several analysts report that there has been a market re-evaluation due to the thwarted terrorist attack on British and US Airlines flying between the United States and the United Kingdom. A sustainable and lasting cease fire agreement could be the result of the UN vote today. At the time of writing there was not yet a vote but it was expected to go through. Meanwhile, Israelis are poised to increase their presence in South Lebanon. The resulting nervousness over both trends has put .35 Cents on both Light Sweet and Brent Crude today.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 declined 3.28 points to settle at 5,820.10 and the FTSE 250 lose 7.48 points to end up at 9,254.00. FTSE Small Cap gained 2.55 points to settle at 3.350.70.
DOW JONES AND NASDAQ
Despite good retail data, Wall Street shares are down today due to airlines stocks dipping. This is due to the high price of crude.
At the end of play today the Dow Jones had lost 36.34 points or 0.33% to settle at 11,088.03 and the NASDAQ closed 14.03 points lower at 2,057.71
DEVELOPING FACTORS
(Peru)
Peruvian President, Alan Garcia, more careful in his relations with relevant natural resources companies operating in his country than colleagues in neighbouring Bolivia and Ecuador. Despite pledging in his presidential campaign to impose windfall profits taxes on mining firms and reduce prices of natural gas-based fuels, President Garcia's administration is asking them for a voluntary contribution towards social projects. The government and shareholders of the Camisea natural gas project are reviewing proposed changes in a pricing formula that could hold natural gas prices at their current level.
(Bolivia)
Hoped for salary increases for Bolivian Police have not materialised and they are protesting in the streets. Last night Vice President Alvaro Garcia recognising that police and many other Bolivians are underpaid acknowledged that the nationalised hydrocarbons would be providing better levels of pay for government workers. Eventually the additional funds will create a promotion bank to raise wages of all workers. He pointed out that police and military cannot legally carry out protest actions and denounced the police demand for an immediate seven-percent pay raise is a front for political interests.
(Venezuela)
Rafael Ramirez, Venezuela’s Energy Minister has invited private companies to bid for licences to explore and produce off-shore natural gas as part of Project Delta-Caribe. He also announced that Venezuela is discovering 45% more gas than expected in some of its fields. Exploration licences will be granted for four geographical areas or “blocs” located in the east of the country. Three of these will be 320 km north of the Margarita coast near the island La Blanquilla and one at Punta Pescador East, 500 km east of the capital Caracas. PDVSA is expected to invest $172 million by 2010 while each licence entails an investment of $500 million.
(Falkland Islands)
Desire Petroleum Plc ended the day unchanged at 38.25
Falkland Oil and Gas Limited (FOGL) ended the day up 4.00 points or 3.57% to stand at 116.00
Rockhopper Exploration ended unchanged on the day at 37.00
Borders & Southern ended unchanged on the day at 45.00
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