Falklands : Hydrocarbons Daily Record (12/01/07)
Submitted by Falkland Islands News Network (Juanita Brock) 13.01.2007 (Article Archived on 27.01.2007)
Crude prices have rebounded today on fears that OPEC will call an emergency meeting to discuss further production cuts.
HYDROCARBONS DAILY RECORD: FRIDAY, 12 JANUARY 2007
By J. Brock (FINN)
At 1800 LMT on Friday, 12 January 2007 Light Sweet Crude closed gained $1.11 Cents to settle at $52.99 on the New York Mercantile Exchange and Brent Crude gained $1.25 Cents to settle at $52.95 on London’s ICE Futures Market.
TRENDS:
Crude prices have rebounded on fears that OPEC at any time could call an emergency meeting and cut production for a third time in recent weeks. Thus far the threat of production cuts only affects crude prices when it is announced. Many analysts are happy with crude around $50.00 to $55.00 per barrel, which is more in keeping with the affordability of the end product.
THE MARKETS:
FTSE 100 closed at 6,239.00 up +8.93 points
FTSE 250 closed at 11,111.70 down -11.86 points
FTSE Small Cap closed at 3.938.60 down -0.94 points
DJI closed at 12,556.08 up +41.10
NASDAQ closed at 2,502.82 up +17.97
S&P500 closed at 1,430.73 up +6.91
WORLD-WIDE DEVELOPMENTS:
(Iraq)
A special oil council in Iraq will decide how oil resources will be used in accordance with a proposed oil law that has not been approved yet by the Iraqi parliament. Asem Jihad, spokesman for that country’s hydrocarbons ministry says that the council will oversee all hydrocarbons resources. The council is to develop oil fields as well as supervise and approve hydrocarbons projects. The remit will also include agreements hammered out with foreign companies. Iraq has the third largest sources of hydrocarbons but can only pump 2Million barrels a day due to security concerns including terrorism and vandalism.
(United Kingdom)
BP PLC announced on Friday that the retirement of CEO John Browne, will take place at the end of July 2007. Tony Hayward, BP’s head of exploration and production is to succeed Lord Browne.
(North Sea)
UK media reports that the M/T VINDO is adrift in heavy seas in the North Sea has avoided a collision with a Conoco Phillips gas platform.
REGIONAL DEVELOPMENTS:
(Nicaragua and Venezuela)
Fifteen bilateral agreements within the framework of the Bolivarian Alternative for Latin America have been hammered out between Nicaragua and Venezuela. and the Caribbean, On Thursday, presidents Daniel Ortega and Hugo Chavez signed the agreements on hydrocarbons, generation of energy, agriculture, education and health to name a few. One agreement establishes the supply of 10,000 barrels of Venezuelan oil a day to Nicaragua at a beneficially subsidized rate. Chavez announced his nation will build a refinery in Nicaragua to process 100,000 barrels of crude per day. The Sandinista government will have majority shares in the project.
(Venezuela)
The US Securities and Exchange Commission has announced in a financial report that state-run oil holding Petróleos de Venezuela (Pdvsa) shed positive light on the progress of risk prospecting and profit sharing, the last of the agreements made during the opening. During the meeting of the Organization of Petroleum Exporting Countries (OPEC) held last December, the Venezuelan Minister of Energy and Petroleum and Pdvsa CEO Rafael Ramírez stressed that no commercial production can be expected in the absence of joint ventures, in accordance with the Hydrocarbons Organic Law. Within the legal framework, By law Pdvsa is entitled to hold over 50 percent of these joint ventures.
(Argentina)
The government of Argentina has amended section 1 of Law No. 26,197 (the "Federalization Law"). The amended law states “that liquid and gaseous hydrocarbon fields belong either to the federal or provincial government, depending on the territory where they are located.” Fields located in the area lying between 12 nautical miles from the coast line and the outer boundary of the continental shelf belong to the federal government and those fields located within 12 nautical miles belong to the relevant province.
(Falkland Islands)
Relevant Share Prices for Friday, 12 January 2007:
Tullow Oil down -2.25 to settle at 376.25
Desire Petroleum unchanged to settle at 33.25
FOGL down -1.00 to settle at 91.00
Rockhopper Exploration unchanged settle at 40.00
Borders & Southern unchanged to settle at 35.00
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