Falklands : Hydrocarbons Weekend Record (30/09 to 01/10 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 01.10.2006 (Article Archived on 15.10.2006)
Uganda is an interesting area for hydrocarbons exploration.
HYDROCARBONS WEEKEND RECORD: 30 SEPTEMBER TO 01 OCTOBER 2006
By J. Brock (FINN)
TRENDS
After an amazing week when the price of crude hit 6 month lows, prices seem to have levelled out for the time being. The $18.00 a barrel drop in the price of Crude – the highest price being recorded on since 14 July 2006 at $78.14 - is due to the decreased demand for gasoline in the United States and an announcement by OPEC that for the time being there would be no production cut.
What keeps it from dropping lower is increased demand for hydrocarbons products in the People’s Republic of China and the fear that OPEC might cut production if the price dips too low.
The price of gasoline in the United States has dropped .24Cents in two weeks and has dropped more than .50 Cents since mid July when crude prices were at their peak.
Other trends keeping a tab on prices include the dieing down of rhetoric over Iran’s desire to enrich nuclear fuel for energy generation and the ceasefire in Lebanon.
DEVELOPING FACTORS
(Uganda)
A BRIEF RUN-DOWN OF UGANDA’S OIL EFFORT
Now that Tullow Oil has bought out Hardman Resources the combined work of both companies is vast. One area that both companies had interests in is in Uganda. The following information has been provided by Uganda’s Government. It details the state of play in Uganda’s hydrocarbons exploration effort.
Uganda’s petroleum exploration programme in the Western Rift Valley area (The Albertine Graben) CONSISTS OF six deep wells already drilled. Three wells were drilled in the Semliki area of Bundibugyo and three wells were drilled in the Kaiso Tonya Area of Hoima District of Uganda. All six wells drilled encountered hydrocarbons with varying degrees of success.
Waraga-1 was originally estimated that the three identified hydrocarbons bearing layers (levels) would flow between 500-1000 barrels of oil per day but the actual rate was 4,200 barrels for the two lower zones and 3,700 barrels per day for the upper shallow zone. Waraga-1 well has been analysed and found to be of good quality with American Petroleum Institute (API) measure of 33.80 for the two lower zones and API of 18.60 for the upper zone. The oil is sulphur free, however, it has a relatively high pour point (390c).
Information available from the technical surveys carried out by Uganda’s government and the oil companies shows that there are several prospects (potential oil fields) in both the Northern and Southern part of Lake Albert Exploration Areas and in Pakwach Basin. In particular, Exploration Area 2 has Ngassa, Nzizi and Ngambwa Prospects; Exploration Area 3A has KingFisher and Pelkan; and Exploration Area 3B has Turaco, Coucal and Ibiss prospects.
Over the next five years the plan is drill those prospects so that analysts can establish their potential for hydrocarbons, just like what is going on in Mputa and Waraga prospects. Heritage has already embarked on the drilling programme in Buhuka area at the boundary of Uganda’s Hoima and Kibaale Districts.
Acreage along Lake Edward-George has not yet been licensed as well as that part of Semiliki basin (Turaco Prospect), which was returned to government by Heritage. The focus is to promote those two Exploration Areas to oil companies for licensing.
DEVELOPING REGIONAL FACTORS
(Bolivia)
Those reporting from Bolivia don’t seem to make up their minds. One moment Bolivia is cash strapped and unable to provide hydrocarbons products to its customers and the next it has more than enough to meet its commitments. Financial resources also have roller-coaster reporting with the latest being the sudden appearance of £150,000,000.00 but now needing investments of £800,000,000.00 in 3 years to fulfil its commitments to supply hydrocarbons.
Speculation is that nationalisation of Bolivia’s hydrocarbons infrastructure and foreign investments was premature and may be the determining factor in figuring out where the country stands financially.
(Brazil)
At this writing President Lula do Silva has 50% of the vote in Brazil’s elections but he needs 51% to stay in office without a run-off. Senate seats and municipal offices are also the focus of this election. The outcome could determine Brazil’s hydrocarbons policy.
(Venezuela)
Venezuelans go to the polls on 15 October. It is not certain how well President Chavez will do but he is widely popular at home. If he loses it will show a trend towards centre politics and this as well could determine policy on hydrocarbons.
(Falkland Islands)
News that Tullow Oil has taken over Hardman Resources was seen as significant but expected in the Falklands. At This point it is not known whether this has a positive or negative affect in getting an exploratory rig for Desire Petroleum’s acreage in the North Falkland Basin
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