Falklands : Hydrocarbons Daily Record (10 October 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 11.10.2007 (Article Archived on 25.10.2007)
An oil workers' strike in Nigeria has been used as an excuse for higher crude prices today.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 10 OCTOBER 2007
By J. Brock (FINN)
CRUDE PRICES: Wednesday, 10 October 2007:
Light Sweet Crude was trading at $81.30 up $1.04 on the New York Mercantile Exchange. Brent Crude was trading at $78.55 up $1.06 on London’s ICE Futures Market.
A strike by oil workers in Nigeria has caused sufficient fear in an artificially high market to increase the price of crude today. Someone’s making it – it’s not us or the neighbourhood petrol station.
THE MARKETS: 10 OCTOBER 2007:
FTSE100: 6,633.00 up 17.61, FTSE250: 11,512.10 up 84.34, SmallCap: 3,851.70 up 20.74
DJI: 14,078.69 down 85.04, NASDAQ: 2,811.61 up 7.70 S&P500: 1,562.47 down 2.68
From a Press Release:
Jubilant Energy, part of the Jubilant Group has announced that its subsidiary Jubilant Oil and Gas Pvt. Ltd. (JOGPL) made an oil discovery in a block near Gujarat's Mehsana district, north of the Gulf of Cambay, in Western India. This exploration block was awarded to the consortium in which Jubilant Oil and Gas Pvt. Ltd. is the operator. Its other members include Gujarat State Petroleum Corporation, and GeoGlobal Resources. The block was awarded under the fourth round of the government's New Exploration Licensing Policy (NELP-IV).
CB-3A the third exploratory well of the seven well Phase-I work commitment for this Block, commenced drilling on July 31, 2007. The well was drilled to a total depth of 2620 metres on September 1. Three hydrocarbon bearing intervals were interpreted to be present based on wireline logs and drilling parameters, Jubilant said in a statement.
Two intervals were selected for testing to establish the presence of producible hydrocarbons. DST-1 showed the presence of clean high-grade crude oil while DST-2 showed both oil and gas, confirming the presence of producible hydrocarbons.
The Latin American Press reports that Ecuador's state-owned oil company Petroecuador has cut its 2007 investment budget to $154 million, 30% lower than the original $221 million budget. Reports quote Miguel Teran, Trade and Finance Manager, as saying that the situation that Petroecuador is going through is due to the low level of investment over the last 10 years. Teran said that Petroecuador plans to invest $452 million in 2008, and also wants a $1.5 billion loan from the Inter-American Development Bank (IDB). Reports go on to say that the IDB loan would be used to overhaul Petroecuador's oil infrastructure and also to finance new exploration projects.
On Tuesday Venezuela published a law that aimed to legally deprive foreign companies of their rights in the oil business in Venezuela. The new law, dated October 8 and published in the Official Gazette, said “the strategic alliances, as well as other forms of association between PDVSA and private companies such as the "shared profit, explore at risk" schemes "are thus rendered totally extinguished." ExxonMobil and ConocoPhillips have pending legal action on the Orinoco extra heavy crude oil projects. Those were nationalised in July. ConocoPhillips is still in negotiations with Venezuela’s Energy Ministry with a view to reaching an amicable solution," about its former assets they were forced to leave in the country. A PDVSA Vice President Eulogio Delpino has said that there were on-going negotiations between PDVSA and ConocoPhillips.
RELEVANT SHARE PRICES 10 OCTOBER 2007:
TLW: 597.50 down 2.50, DES: 29.75 unchanged, FOGL: 137.50 up 3.00, RKH: 49.50 down 0.50, BOR: 38.00 down 0.50, PRE: 13.50 unchanged, GBP: 9.00 up 0.13, GPK: 422.00 unchanged, BLT 1801.00 up 36.00