Falklands : Hydrocarbons Daily Record (27/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 28.07.2006 (Article Archived on 11.08.2006)
Oil companies have contracts with governments and, if governments change the goal posts, they are in breach of those contracts.
HYDROCARBONS DAILY RECORD: THURSDAY, 27 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Thursday, 27 July 2006 Light Sweet Crude gained .60 Cents and settled at $74.54 on the New York Mercantile Exchange and Brent Crude gained $1.01 Cents to $75.01 per barrel on London’s ICE Futures Exchange.
TRENDS:
Geopolitics continues to play an important part in the crude price rise today. The Mid East still sees increases in violence with Israel posing and calling up reservists with ElQuaeda showing support for Palestinians and threatening to increase support for Hezballah. This has been tempered by Royal Dutch Shell’s CEO, Jerome Van Der Veer saying that he is certain that the 500,000 barrel short fall in Nigeria’s production will be reduced considerably. He recommends that industry leaders interact more with Governments and communities so that operations can run more smoothly. Finally, the high demand for hydrocarbons products in China caused some nervousness amongst investors today.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was 52.40 points higher at 5,929.50 with the FTSE250 up 76.43 points at 9,362.00 and the FTSE Small caps 21.77 points better at 3,386.10
DOW JONES AND NASDAQ:
The Dow Jones Index lost 2.08 points and settled at 11,100.43 and the NASDAQ fell 15.99 points and settled at 2,054.47.
DEVELOPING FACTORS:
LATIN AMERICA:
(Colombia)
There are few ways that South American countries can fund improvements to their hydrocarbons infrastructure. The Colombian government said on Tuesday it will privatise up to 20 percent of state oil company Ecopetrol in a bid to draw investment needed to modernise the country's ailing petroleum sector. This is Ecopetrol's first opening to private investors, and comes as other Latin American countries like Venezuela, Bolivia and Ecuador are nationalising their natural resources. The test will be if the infrastructure actually improves over a number of years.
(Ecuador)
Ecuador’s Congress is to hear arguments and debate concerning the Rodas Hydrocarbons Law. This law makes provision for 50% of oil profits to go into the Government’s coffers for upgrading their hydrocarbons infrastructure. According to Royal Dutch Shell’s CEO, Mr Jerome Van Der Veer, their company has entered into a contract with the countries and governments with which they work. Any changing of the goal posts is a breach of the contract. It is thought that Ecuador would re-negotiate contracts before taking 50% of the profits.
(Brazil)
Brazil is seeking compensation from Bolivia over the allegations that Bolivia's government would investigate Petrobras and Argentine-Spanish Company Repsol-YPF (REP) over tampering with natural gas meters at local fields.
(Venezuela)
Exciting news coming out of Venezuela is that experts from Argentina, Brazil, Bolivia and Venezuela continued technical discussions related to the future construction of a gas pipeline, called Southern Gas Pipeline. This new pipeline should help with the efficient distribution of hydrocarbons throughout South America.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 27.7.06
Desire Petroleum down 0.25 points or 0.60% on the day to stand at 41.25p
Falklands Oil and Gas was up 4.50 points or 4.41% on the day to stand at .106.50p
Rockhopper Exploration unchanged on the day to stand at 40.50p
Border and Southern was unchanged on the day to stand at 47.50p
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