Falklands : Hydrocarbons Daily Record (22/08/06)
Submitted by Falkland Islands News Network (Juanita Brock) 23.08.2006 (Article Archived on 06.09.2006)
Iran's insistence on talks, howbeit without preconditions, has not greatly affected the price of crude today.
HYDROCARBONS DAILY RECORD: TUESDAY, 22 AUGUST 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 22 August 2006 Light Sweet Crude gained .18 Cents to stand at $72.63 and Brent Crude fell .14 Cents to stand at $73.24.
TRENDS
The flat price of crude today is due to the response that Iran gave to the benefits/sanctions proposals by the UN and endorsed by the G-8 Summit in July. Iran wants to negotiate but with no pre conditions. The country will continue to enrich nuclear fuel for energy generation which, according to them, is their right. The willingness to talk had a calming affect on crude prices today.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 12.64 points to settle at 5.902.60 and the FTSE 250 was down 10.62 points to end up at 9,493.10. FTSE Small Cap gained 8.01 points to settle at 3,408.90.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index lost 5.21 points or 0.05% to settle at 11,339.84 and the NASDAQ closed up 2.61 points or 0.12% to settle at 2,150.36.
DEVELOPING FACTORS:
(Bolivia)
Jorge Alvarado, president of State-run Bolivian Public Oil Fields (YPFB) is in a tenuous position today because he authorised signing of the contract to sell oil to the Ibero-American company trading, without legal or technical support or a transparent process of competition. On Tuesday, the release of a preliminary audit found irregularities in a controversial oil export contract. Hydrocarbon Minister Andres Soliz made the announcement on Monday and stated that Alvarado now has 10 days to defend himself against the accusations.
(Brazil and Bolivia)
Petrobras, Brazil's state energy company said its natural gas operations in Bolivia and imports to Brazil were not affected by an Indian protest there and it was negotiating to avoid any disruption. A Petroleo Brasileiro SA (Petrobras) spokesman said that there were are Indians in the vicinity of a pipeline operated by Transierra, which is our joint venture with Repsol-YPF, but they are not occupying any installations. The president of the Guarani People's Assembly, Wilson Changaray, said that the group had taken over a control station on the pipeline and indicated that protesters would shut valves if foreign investors in Bolivia's energy industry do not fulfill promises to invest in local development projects.
(Chile and Peru)
The 1998 Bilateral Trade Pact between Chile and Peru has been broadened today with both governments initialling an agreement to protect Peruvian workers in Chile and grants Peru most favoured nation status for investments in Chile. The agreement, negotiated mostly by the predecessors of Alan Garcea, Peru's president, and Michelle Bachelet, Chile's president, excludes issues such as commercial airspace, hydrocarbons, tariffs on agricultural products, financial services and intellectual property – including a long-standing dispute over the country of origin of pisco, a white-grape brandy popular in both countries.
(Peru)
Peru’s indigenous group, the Achuar people in the Corrientes River basin, is about to become the first in Peru to take legal action, as it plans to file suit against the companies it blames for the damages. For thirty years they were unable to stop outsiders from polluting their environment. Oil drilling began in the 1970s with the arrival of U.S.-based Occidental Petroleum Corporation (Oxy). In 1996, Pluspetrol Norte, a local subsidiary of Argentine-based Pluspetrol, began to operate in the upper basins of the Pastaza, Corrientes and Tigre rivers, and expanded its operational area in 2000. At the most recent indigenous assembly meeting, held on August 5th and 6th, the leaders accused oil companies of endangering the Achuar people's health and environment. The group comprises 8,000 inhabitants of 31 communities in the northern department (province) of Loreto. Of these, 3,000 to 4,000 are direct victims of oil drilling, says Racimos de Ungurahui, an NGO that works on behalf of the Achuar in Peru's Amazon jungle region.
(Falkland Islands)
Share prices at the close of play on Tuesday, 22 August 2006:
Desire Petroleum Plc was down 1.00 points or 2.60% on the day to settle at 37.50.
Falkland Oil and Gas Limited (FOGL) remains unchanged on the day to stand at 112.50.
Rockhopper Exploration ended up 3.50 points or9.86% on the day to settle at 39.00
Borders & Southern ended unchanged on the day at 45.50
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