Falklands : Hydrocarbons Weekend Record: 27 to 29 April 2007
Submitted by Falkland Islands News Network (Juanita Brock) 30.04.2007 (Article Archived on 14.05.2007)
A brief run-down on the regional hydrocarbons industry and relevant share prices.
HYDROCARBONS WEEKEND RECORD (27 to 29 April 2007)
Compiled by J. Brock (FINN)
WEEKEND DEVELOPMENTS:
(Chile and Venezuela)
Last Wednesday Chilean President Michelle Bachelet went to Venezuela where Both Countries agreed to work together. TV station, RCTV aired several news items stating that President Bachelet and President Chávez reiterated their commitment to strengthen ties between their countries.
(Africa)
The 11th Annual UN Conference on Trade and development in the oil, gas and finance industries will be hosted by Kenya this year – for the first time that the conference is coming to the East African region. The conference will be held from May 23-25. No doubt exploration for oil in Kenya, Uganda and Tanzania will be discussed. It is hoped to take advantage of opportunities for partnerships and strategic alliances between Africa’s public and private sectors in oil exploration as well as trade and commerce.
(Environmental Hazards).
In Jackson, Wyoming water wells on the Jonah and Pinedale Anticline natural gas fields used exclusively by energy operators could be contaminated with hydrocarbons from vehicles used in the siphoning water out of them. The wells have been tainted with benzene.
LAST WEEK’S CRUDE PRICES:
Monday, 23 April 2007: Light Sweet Crude was trading at$65.89 up $1.78 on the New York Mercantile Exchange and Brent Crude was trading at $68.15 up $1.66 on London’s Ice Futures Market.
Tuesday, 24 April 2007: Light Sweet Crude was trading at $65.89 down $1.34 on the New York Mercantile Exchange and Brent Crude was trading at $67.16 down 99 Cents on London’s Ice Futures Market.
Wednesday, 25 April 2007: Light Sweet Crude was trading at $65.84 up $1.26 on the New York Mercantile Exchange and Brent Crude was trading at $68.52 up $1.41 on London’s Ice Futures Market.
Thursday, 26 April 2007: Light Sweet Crude was trading at $65.06 down 78 Cents on the New York Mercantile Exchange and Brent Crude was trading at $67.65 down 92 Cents on London’s Ice Futures Market.
Friday, 27 April 2007: Light Sweet Crude was trading at $66.46 up $1.40 on the New York Mercantile Exchange and Brent Crude was trading at $68.41 up 76 Cents on London’s Ice Futures Market.
ANALYSIS:
Monday, 23 April 2007: Yet more worries about supply and anticipation over the election results in Nigeria helped to increase crude prices today.
Tuesday, 24 April 2007: Statements by Nigeria’s president- elect about working together with the opposition party have quelled speculation about unrest in the country and helped to decrease the price of crude today. The much awaited inventory report is out on Wednesday.
Wednesday, 25 April 2007: The weekly inventory report from the US Department of Energy Information Administration caused enough concern to increase the price of crude today.
Thursday, 26 April 2007: Nuclear talks between the European Union and Iran have been fruitful and it is reported that differences are fewer than when the process began. This positive news helped to lower the price of crude today.
Friday, 27 April 2007: The fear unleashed by the scale of the threat to oil infrastructure in Saudi Arabia after the arrest of 117 people as terrorists has helped to increase the price of crude today.
BRIEF INVENTORY REPORT FOR THE WEEK ENDING 20 APRIL 2007:
Crude: Up 2.1 Million Barrels to 334.5 Million Barrels. Analysts predicted a decrease of 1.2 Million barrels.
Gasoline: Stocks decreased by 2.8 Million Barrels. Analysts said it would increase by 200,000 barrels. This is the 12th straight week that US gasoline inventories decreased.
Distillates: Stocks remained flat at 117.3 million barrels. Analysts projected an increase of 400,000 barrels.
Refinery Capacity: Refinery capacity decreased by 2.6% to 87.8 %.
REGIONAL DEVELOPMENTS:
(Paraguay)
Paraguay has signed an agreement with Venezuela to build a refinery and to explore for oil. President Nicanor Duarte signed the agreement with Venezuela on April 16, during the first South American Energy Summit in Margarita. It is expected that the production cost would be about 400 and 600 million dollars and that the refinery will process 40,000 oil barrels a day. This is good news for the region as it will help Paraguay’s economy and create jobs.
(Ecuador)
Ecuador’s Energy Minister Alberto Acosta has announced that his government will wait at least a year for the international compensation for not developing a major oil field in the heart of the Ecuadorian Amazon region. The rainforest shelters a unique diversity of animals and plants. According to President Rafael Correa his government says that if the international community can “compensate the country with half of the forecasted lost revenues.”
(Bolivia)
Edgar Torrez Mosquiera the new Bolivian ambassador to Canada, has told the Canadian Media that his main priorities are in the areas of hydrocarbons, mining, health and education. Bolivia and Canada have established agreements in mining and hydrocarbon issues, offering technical and financial support to Bolivia. The agreement ends next year and plans are being implemented to renew it. Bolivia plans to introduce the training of female professionals in the hydrocarbon field. Mr. Torrez told the press there are plans to involve Bolivian citizens living in Canada in the political process in his country.
(Colombia)
From a Press Release by RNS
Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focused on South America, announces that drilling of the Sayona-1 well in the Primavera block in the Llanos Basin of Colombia has been completed. The well, which was operated by Gran Tierra Energy, was drilled to 3,460ft into the basal sands. It did not encounter commercial quantities of hydrocarbons and will be plugged and abandoned. Chaco Resources had a 55% interest in the well.
The drilling rig will be demobilized once abandonment operations are completed. The two drilled structures appeared to have valid structural closure and the lack of commercial hydrocarbons could therefore be due to an insufficient source charge or hydrodynamic flushing of the reservoirs by formation water. Further study is required before any firm conclusions can be reached.
The current exploration phase terminates in May 2007. The Company is integrating the well data into the geological model in order to evaluate the future exploration potential of the block.
For further information, call:
Jerry Keen, Blue Oar - 020 7448 4492
Billy Clegg/Caroline Stewart, FD - 0207 831 3113
(Venezuela)
The government of Venezuela announced on Wednesday that representatives of foreign oil firms decided to enter joint venture agreements with Venezuelan oil giant Pdvsa in the exploitation of heavy crude oil Orinoco belt. Rafael Ramírez, Minister of Energy and Petroleum and CEO of Pdvsa explained that the step they took on Wednesday was in compliance with decree 5200 on hydrocarbons nationalization.
(Falkland Islands)
The Board of Desire Petroleum plc is pleased to announce that Dr. Colin Phipps has recovered well from his operation and has returned to the chairmanship of the Company (Desire Petroleum plc). 02 April 2007
RELEVANT SHARE PRICES:
Monday, 23 April 2007: TLW: 369.75 up 4.50, DES: 28.00 up 1.50, FOGL: 88.00 unchanged RKH: 43.50 up 1.50, BOR: 27.00 unchanged
Tuesday, 24 April 2007: TLW: 370.50 up 0.75, DES: 27.75 down 0.25, FOGL: 88.00 unchanged RKH: 43.50 unchanged, BOR: 27.00 unchanged
Wednesday, 25 April 2007: TLW: 369.75 down 0.75, DES: 26.50 down 1.25, FOGL: 88.00 unchanged, RKH: 43.50 Unchanged, BOR: 26.50 down 0.50
Thursday, 26 April 2007: TLW: 374.25 up 4.50, DES: 26.50 unchanged, FOGL: 88.00 unchanged, RKH: 43.00 down 0.50, BOR: 26.50 unchanged
Friday, 27 April 2007: TLW: 365.50 down 8.75, DES: 26.50 unchanged, FOGL: 88 unchanged, RKH 40.50 down 2.50, BOR: 25.50 down 1.00.
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