Falklands : Hydrocarbons Daily Record (24/11/06)
Submitted by Falkland Islands News Network (Juanita Brock) 25.11.2006 (Article Archived on 09.12.2006)
An attack on a Nigerian oil facility and light trading added to the price of crude today.
HYDROCARBONS DAILY RECORD: FRIDAY, 24 NOVEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Friday, 24 November 2006 Light Sweet Crude gained 53 Cents on the New York Mercantile Exchange to stand at $59.77 and Brent Crude gained 76 Cents to stand at $60.11 on London’s ICE Futures Exchange.
TRENDS
An attack on a Nigerian oil facility as well as thin trading added to the price of crude today.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 17.89 points to settle at 6,122.10 and the FTSE 250 lost 74.98 points to end at 10,590.20. FTSE Small Cap lost 32.88 points to settle at 3,700.80.
DOW JONES AND NASDAQ
Figures are reflective of a short session on Friday.
The Dow Jones Index lost 46.78 points or -0.38% to settle at 12,280.17 and the NASDAQ lost 5.72 points or -0.23% to settle at 2.465.98. The S&P 500 lost 5.14 points or -0.37% to settle at 1,400.95 and the NYSE lost 15.51 points or 0.17% to settle at 8,933.43.
DEVELOPING FACTORS
(From a Press Release)
The directorate general of hydrocarbons (DGH), the upstream oil regulator, has recommended negotiations on the fiscal packages offered by bidders in 19 out of the 55 blocks in the sixth round of oil exploration and licensing biddings. Of these, Reliance Industries Ltd (RIL) ranked first in seven blocks, two of which were in the Krishna-Godavari basin and five in the Mahanadi basin.
The fiscal package is the money offered to the government as its share in the event of a discovery after the recovery of drilling costs. Among others who may be asked to rethink their fiscal packages are the Petrogas-GAIL-IndianOil-GSPC-HPCL combine for onshore shallow water block in Mumbai and Focus-Newbury for a block in Cambay. One bid of Naftogaz-RNRL-Geopetrol-REL in Mizoram was also recommended for renegotiation. Sources said the government might ask companies to give a higher share in the profit petroleum or gas. “If offers for the two on-land blocks in which the ONGC consortia emerged as winner are rejected, then the number up for negotiation may jump to 21,” he said.
The empowered group of secretaries, which makes the final recommendation to the Cabinet Committee on Economic Affairs (CCEA) for the award of prospecting contracts under the New Exploration Licensing Policy (NELP), had on Thursday asked DGH to rework its recommendations on rejecting the ONGC’s offers. The DGH, in its recommendations on the sixth round of NELP bidding, argued that the company had not performed well in the past in the blocks awarded to it.
DEVELOPING REGIONAL FACTORS
(From a Press Release)
Argentina's Río Negro province government has announced that it has pre-awarded exploration permits for four hydrocarbons blocks in the Neuquén basin. It pre-awarded the Laguna El Loro block to US oil company Cliveden; the Laguna de Piedra block to Korean oil firm Golden Oil; the Loma de Kauffman block to Argentine oil firm Interenergy; and the Cinco Saltos block to Argentine oil firm Pluspetrol. It is estimated that the investmen could be as much as US$80mn in total over two years. The province's government aims to award and sign the contracts at the end of December 2006.
(Falkland Islands)
Share prices at the close of play on Friday, 24 November 2006
Desire Petroleum Plc ended up 0.25 points or 0.71% on the day to settle at 35.25.
Falkland Oil and Gas Limited (FOGL) ended down 2.00 or 2.47% on the day to stand at 79.00.
Rockhopper Exploration ended unchanged on the day to settle at 40.00.
Borders & Southern ended unchanged on the day to stand at 37.50
Tullow Oil ended down 2.50 points or 0.62% on the day to stand at 402.00
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