Falklands : Hydrocarbons Daily Record (16/08/06)
Submitted by Falkland Islands News Network (Juanita Brock) 16.08.2006 (Article Archived on 30.08.2006)
Venezuela's President Chavez will be visiting China later in the month to negotiate oil tanker construction.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 16 AUGUST 2006
By J. Brock (FINN)
At 1800 LMT on Wednesday, 16 August 2006 Light Sweet Crude was down .75 Cents to stand at $72.40 and Brent Crude lost .72 Cents to stand at $73.08.
TRENDS
Good economic and supply information have caused crude prices to drop again today. Geopolitics played a part in pricing with more people coming home in Southern Lebanon and Northern Israel.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 lost 12.6 points to settle at 5.896.60 and the FTSE 250 was up 88.36 points to end up at 9,448.00. FTSE Small Cap gained 15.94 points to settle at 3,376.40.
DOW JONES AND NASDAQ
Figures on Core Inflation caused a continuation of a three-day rally on Wall Street today leading to the highest performance in three months.
At the end of play today the Dow Jones gained 96.78 points or 0.86% to settle at 11,327.12 and the NASDAQ closed up 34.53 or 1.63% to settle at 2,149.54.
DEVELOPING FACTORS
(Australia)
Woodside Petroleum Limited (WPL) have announced that its underlying net profit after tax was 24.1% higher than the previous corresponding period to $542.9 million for the half year 30 June 2006. Upon this news, Company shares gained 3% today. Better profits were largely due to increased revenue from higher commodity prices. Woodside said the production of 29.9 million barrels of oils equivalent (“MMboe”) was in line with that of the previous corresponding period. Production in the second half is expected to increase by around 40% from 1H 2006, mainly due to new production from the Enfield project which began on 24 July 2006. Woodside said production was also due to benefit from the start-up of the Otway gas project in the 4th quarter, reduced downtime at the North West Shelf operations and from well repairs and interventions at the Cossack Pioneer, Laminaria-Corallina, Legendre and Mutineer-Exeter oil assets.
(Russia)
Russia is trying to lace together an economic union with four of its neighbours: Turkmenistan, Uzbekistan, Kazakhstan, and Kyrgyzstan. Energy will be a main focus of the economic union, with Russia keen to trade using its natural gas in exchange for as yet unspecified goods and/or services. Russia’s Gasprom has announced its profits have doubled from last year at this time. Russia puts out 1/6th of the world’s natural gas supplies – that’s a quarter of the world’s needs.
(Nicaragua)
Nicaraguan deputies are expected to deliberate over the energy crisis affecting most of the country. The leadership of the National Assembly proposed today that an emergency meeting among representatives of all institutions, bodies or companies related to the energy sector should take place to seek a solution for the serious shortage in the nation. The Sandinista National Liberation Front demanded that President Enrique Bolaños speed up purchase of oil from Venezuela, whose companies agreed to export hydrocarbons at preferential prices to aid the Nicaraguan people. However, the liberal Executive branch of the Government is trying to ease the crisis by giving $9.6 million to Union Fenosa, the country s main energy company, which is in debt and the leading cause of cuts.
(Bolivia)
Energy experts are expressing doubts about the viability of Bolivia's nationalisation process and how revelations about YPFB will affect talks aimed at higher gas export prices with neighbouring Brazil. "It's a terrible setback," said Bolivia's former Hydrocarbons Minister Carlos Miranda, now a La Paz-based energy consultant. YPFB has asked the Central Bank of Bolivia for $180 million in financing needed to assume complete control of the country's production facilities. However, Bolivian law prohibits the bank from extending credit to public entities except in the case of an emergency.
(Venezuela)
President Hugo Chávez will be paying his fourth visit to China next August 22-27- to initial an agreement for the construction of 18 oil tankers in China to create a strategic alliance for transportation of crude oil and by-products from Venezuela to The People’s Republic of China. Chávez is to take advantage of the opportunity to purchase 12 oil drills. China National Petroleum Corporation (CNPC) is to assess oil reserves in Junín 4 Block, at the Orinoco Oil Belt. Additionally, the parties will agree on oil exploration activities at the Gulf of Paria - in areas of Zumaco field in San Tomé, eastern Anzoátegui state.
(Falkland Islands)
Share prices at the close of play on Wednesday, 16 August 2006:
Desire Petroleum Plc ended the day down 0.50 points or 1.29% to settle at 38.25.
Falkland Oil and Gas Limited (FOGL) ended the day 1.50 points lower or1.27% to stand at 117.00.
Rockhopper Exploration ended unchanged on the day to settle at 35.50
Borders & Southern ended unchanged on the day at 45.50
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