Falklands : Hydrocarbons Weekend Record (26/27 August 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 27.08.2006 (Article Archived on 10.09.2006)
Governments in Africa as well as those in South America are opting to get more of the profits of private oil companies operating in their countries.
HYDROCARBONS WEEKEND RECORD: 26/27 AUGUST 2006
By J. Brock (FINN)
TRENDS
Country By country on the continents of South America and Africa, States and their owned oil companies are seeking more compensation for oil profits brought on by rising crude prices. The African Countries now are seeing the light and charging more. Tropical storm Ernesto is working its way Across the Caribbean and has caused sufficient nervousness to raise the price of crude over the weekend.
DEVELOPING REGIONAL FACTORS:
(Chad)
National radio has reported that Chad's President Idriss Deby Itno has ordered the foreign oil firms ChevronTexaco (Nachrichten/Aktienkurs) and Petronas to leave the country for non-payment of taxes. The action was taken for not respecting their commitment in accordance with clauses relating to the payment of taxes on the companies. ChevronTexaco and Petronas of Malaysia are two of three members of a consortium extracting Chad’s oil resources. This leaves the US oil giant ExxonMobil and the Chadian government to tap the resources together 'while waiting to find a solution with the two other partners. In a bid to increase Chad's own share of its oil revenue, the Chadian President told his government to renegotiate the contract it signed in 1988 with the US-Malaysian consortium.
LATIN AMERICA
(Bolivia)
According to several Latin American Media outlets, Bolivian police raided the offices of Spanish-Argentine Company Repsol YPF in Santa Cruz on Friday. They also arrested a Company attorney, Samuel Encinas, and seized documents relating to the sale of natural gas to Brazil. The company previously had refused to provide documentation of its contracts with Brazil's state-run oil firm Petrobras. Judge,' Centenaro ordered the seizure. Repsol is accused of signing secret contracts with Petrobras to sell Bolivian natural gas to Brazil at a price lower than the agreed rate. Andres Soliz, Hydrocarbons Minister, has estimated that the alleged sales cost the Bolivian government $161 million.
(Bolivia and Brazil)
Saturday, after visiting Brazil, Bolivia’s Vice President Alvaro Garcia after visiting Brazil, said that both countries were willing for talks after the recent nationalisation of Bolivian gas fields, the second largest in all South America. Vice President Garcia termed the visit positive and productive. He said that the most important result was the verification of the governments’ desire to talk about the nationalisation decree of Bolivian hydrocarbons. Both intend to examine this issue in September, as well as a tax increase of the Brazilian Company Petrobras and the transference to the State of assets in two private refineries. Another pending bilateral topic is the Bolivia’s demand for a price rise of natural gas supplied to Brazil.
(Falkland Islands)
Share prices at the close of play on Friday, 25 August 2006
Desire Petroleum Plc was down 0.25 points or 0.693% on the day to settle at 36.00.
Falkland Oil and Gas Limited (FOGL) ended unchanged on the day to stand at 110.00.
Rockhopper Exploration ended down 1.00 points or 2.56% on the day to settle at 38.00
Borders & Southern ended unchanged on the day at 45.25
|
