Falklands : Hydrocarbons Daily Record (11/06/07)
Submitted by Falkland Islands News Network (Juanita Brock) 12.06.2007 (Article Archived on 26.06.2007)
Crude prices increased today because OPEC will not increase supplies. OPEC maintains that there is enough crude to meet demand.
HYDROCARBONS DAILY RECORD: MONDAY, 11 JUNE 2007
By J. Brock (FINN)
At 1800LMT on Monday, 11 June 2007 Light Sweet Crude was trading at $65.97 up $1.21 on the New York Mercantile Exchange and Brent Crude was trading at $69.09 up 49 Cents on London’s Ice Futures Market.
ANALYSIS:
Crude prices have increased today due to OPEC not bowing to pressure to increase production. It is their assessment that there is sufficient supply to meet demand, making investors nervous. OPEC members, especially Saudi Arabia, have been sticking by their policy regardless of rising prices for crude.
MARKETS (11/06/07)
FTSE 100: 6,567.50 up 62.39
FTSE 250: 11,635.50 up 51.93
SmallCap: 4,109.30 up 20.26
DJI: 13,424.96 up 0.57
NASDAQ: 2,572.15 down 1.39
S&P 500: 1,509.12 up 1.45
REGIONAL DEVELOPMENTS:
(Chile)
From a Mining Ministry Press Release
The government of Chile has launched an international tender process inviting local and overseas companies to invest in exploration and production (E&P) of hydrocarbons in the Magallanes Basin of the far south of the country.
The tender comprises ten geographic blocks with a total area of 32,356 km2. In three of these blocks (Coirón, Caupolicán and Lenga), the winning company or consortium will develop the project in partnership with ENAP, Chile’s state oil company http://www.enap.cl. In the remaining seven blocks (Tranquilo, Russfin, Porvenir, Brótula, Isla Magdalena, Bahía Inútil and Otway), the private company or consortium will hold 100% of the block’s exploration and exploitation rights. In all ten cases, the winning bidder will act as the block’s operator.
The winning bidders will have to sign a Special Operating Contract (CEOP) with the State of Chile, represented by the Mining Ministry.
These contracts have a maximum duration of 35 years divided into an Exploration Phase and a Production Phase, of which the former will have a duration of between seven and ten years while the latter cannot exceed 25 years. The production phase will start once the Contractor has declared a well commercially viable.
The Contractor for each block must carry out the investments in exploration contained in its bid and these will be guaranteed with a bank note. Once the production phase begins, the Contractor will receive compensation from the State in the form of hydrocarbons.
Timetable and deadlines
The tender will be governed by the Term Sheets prepared by the Mining Ministry. These will be available to the general public as from June 11 on the Ministry’s website http://www.minmineria.cl
The tender process will start during the first fortnight of June with the publication of the invitation to tender in the press. The formal announcement of awards is scheduled to be made in early November and, as a result, it is anticipated that the corresponding contracts will be signed before the end of the year.
Source: Government of Chile – Mining Ministry
(Bolivia)
As previously reported in HDR, Bolivia’s President, Evo Morales officially announced that the Bolivian government was taking full control of two oil refineries, Gualberto Villarroel in Cochabamba and Guillermo Elder Bell in Santa Cruz. This action comes after several weeks of talks. As reported the Bolivia’s government agreed to pay Petrobras, $112 million for control of the refineries. At the beginning of the negotiations Bolivia wanted much less for the two refineries. Transition will take approximately 30 days, then (YPFB), will begin to run the refineries. Bolivia’s government expects to earn $60 Million from the refineries.
RELEVANT SHARE PRICES:
TLW: 372.50 down 6.50
DES: 32.75 up 0.50
FOGL: 81.50 up 4.00
RKH: 43.50 unchanged
BOR: 25.25 down 0.75
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