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Hydrocarbons Daily Record Sunday, 06 April 2008

HYDROCARBONS DAILY RECORD SUNDAY, 06 APRIL 2008

By J. Brock (FINN)

At 1900hrs LMT on Friday, 04 April 2008 Light Sweet Crude was trading at 106.23 up $2.40 on the New York Mercantile Exchange. Brent Crude was trading at $102.52 down $1.23 on London’s ICE Futures Market.

ANALYSIS:

Friday’s crude price increases follow the pattern of profit taking followed by significant gains. The sliding US Dollar also played a part in the ritual.

SHARE PRICES AND THE MARKETS:

SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Friday, 04 April 2008.

TLW: 662.50 up 13.00, DES: 71.50 down 1.25, FOGL: 119.00 down 2.50, RKH: 82.50 down 2.50, BOR: 63.00 up 0.50, PRE: 11.50 down 0.50, GBP: 6.88 down 0.13 GPK: 385.00 down 1.50, BLT 1617.00 up 57.00 RDSA: 1799.00 up 23.00 RDSB: 1769.00 up 23.00

New York Stock Exchange:

XOM: 88.74 up 0.54 (USD)

THE MARKETS (04/04/08)

FTSE100: 5,947.10 up 55.78, FTSE250: 10,165.10 down 12.08 SmallCap: 3,097.40 up 2.38

DJI: 12,609.42 down 16.61 NASDAQ: 2,370.98 up 7.68 S&P500: 1,370.40 up 1.09

INTERNATIONAL DEVELOPMENTS:

(Canada)

Richard Anderson's star has tumbled hard and fast since he convinced angry investors to stick by him at his company's annual shareholders meeting almost three years ago. Another frustrated horde will await the CEO of First Calgary Petroleums Ltd. on Tuesday. The Canadian executive who staked out a massive hydrocarbon claim in the sand dunes of central Algeria and who was once the toast of financial cliques in London, New York and Toronto, faces the possibility of an ignominious exit.

http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=63f96daa-4d63-4334-89d8-1c02c9f95ddc&k=87555

(Faroe Islands)

Faroe Petroleum Plc. said it did not find hydrocarbons in commercial quantities on the William wildcat exploration (OOTC:WCTXF) well on licence 007 in the Faroe Islands. Faroe said its participation in the well was part of a cross-border package transaction with Royal Dutch Shell Plc. (NYSE:RDS A) , announced on November 30, 2007, in which Faroe secured interests in two 'sought-after' Norwegian assets, namely the Trym and Granat.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24259665.htm

REGIONAL DEVELOPMENTS:

(Argentina)

Argentina's state energy company Enarsa and its Bolivian counterpart YPFB started international bidding on Friday to draft engineering studies for a liquids separation plant. Argentina has granted ...

http://www.bnamericas.com/sector_home.jsp?sector=9&idioma=I¬icia=429803

(Argentina and Bolivia)

Bolivia and Argentina Friday signed an agreement to build the largest natural gas liquid segregation plant in Latin America. The agreement was signed by representatives from Bolivian Fiscal Oil Fields' (YPFB) and Argentine Energy (ENARSA), according to local media of La Paz, Bolivia's administrative capital. Argentina granted the project a credit of 450 million U.S. dollars with a 20-year amortization term, said Bolivian President Evo Morales in a ceremony held at Quemado Palace.

http://news.xinhuanet.com/english/2008-04/05/content_7922547.htm

(Bolivia)

The agreement between Petroleos de Venezuela (PDV) and Yacimientos Petroliferos Fiscales de Bolivia (YPFB) is good news for La Paz, which is having trouble ...

http://www.energyintel.com/DocumentDetail.asp?Try=Yes&document_id=227731&publication_id=31

(Chile)

Chile's diesel imports should grow 5-10 percent in 2008 from a year earlier due to a domestic fuel shortage, state oil company ENAP said on Friday, with consumption expected to spike in the coming winter months.

http://uk.reuters.com/article/oilRpt/idUKN0433005220080404

(Ecuador)

Ecuador's state oil company, Petroecuador, is examining alleged irregularities in the sale of upstream assets that could end in the termination of Brazilian state oil company Petrobras's main production contract in Ecuador.

http://www.energyintel.com/DocumentDetail.asp?document_id=227741

(Venezuela)

ONGC Videsh Ltd, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), will sign an agreement on April 8 to take 40 per cent stake in the San Cristobal oilfield in Venezuela. OVL will sign the agreement with Petroleos de Venezuela S.A. (PdVDA), which will hold the remaining 60 per cent, during the historic visit of Petroleum Minister Murli Deora to the Latin American nation.

http://economictimes.indiatimes.com/News_by_Industry/OVL_to_sign_pact_for_40_stake_in_Venezuelan_field/articleshow/2930811.cms

Caracas, April 6 (Prensa Latina) China and Venezuela have agreed to set up a joint venture in oil exploration in the South American country. According to a statement Saturday by state-run Petroleos de Venezuela (PDVSA), under the new agreement the Chinese National Petroleum Corporation Service and Engineering Ltd would transfer technology and provide personnel in oil exploration in the country. PDVSA would handle 30 percent of all oil exploration and production activities in the country under the agreement. In return, it would increase crude oil supply to China by up to a million barrel per day before 2010, the statement said.

http://www.thaindian.com/newsportal/world-news/chinese-venezuelan-oil-majors-start-joint-venture_10035097.html

LOCAL DEVELOPMENTS:

JURY OUT ON UK OIL CASH FROM THE FALKLANDS

By J. Brock (FINN)

For over a decade – ever since oil exploration started in earnest in the Falklands – speculation has been ripe about how much cash the Falklands will have to cough up should commercial quantities of hydrocarbons be found in the North, South and East Falkland Basins.

Last week during a meeting of the Foreign Affairs Select Committee on the UK Overseas Territories Minister Meg Munn set the record straight about the speculation by saying that until hydrocarbons in commercial quantities were found in Falklands’ waters nothing would be discussed and anything subsequent to finding commercial hydrocarbons would be discussed with FIG. She wouldn’t be drawn on any kind of deal.

Leigh Turner, Director of the Overseas Territories at the FCO as well as Cllr Mike Summers asserts that Constitutionally the mineral resources of the Falklands belong to the Falkland Islands Government.

At the meeting Mr. Turner said, that “the Falkland Islands own the resources about which we are talking. But the point is that we regard something as important as the development of hydrocarbons as having potential international implications so it is right that we have some sort of handle on it”.

Hydrocarbons revenue is a sticking point in that FIG feel that constitutionally our mineral resources belong to us. HMG might have a different idea. If the Falkland Islands Government had its way, FIG would pay for the defence of the Islands should commercial quantities of hydrocarbons be found. MPs Eric Illsley and Gisela Stuart taking evidence recently when they visited the Falklands agreed that the Falklands pay their way and that the subject will be included in their report.

Cllr Summers maintains that money could go to pay historical debts like the cost of the 1982 conflict with Argentina and the building of MPA as well as paying for our own defence.

Approximately twelve years ago when Michael Portillo visited the Falklands the same question was raised and he said that if hydrocarbons were found in commercial quantities an amount would go to the treasury. He would not be drawn on what this money would be spent for but said should hydrocarbons be discovered and should a deal be reached it would go into a central treasury fund, though we, at the time, wanted to pay for our defence out of the revenues.

The Conservative Party since lost the 1997 election and the Labour Party has not been so outspoken about commercial quantities of hydrocarbons found in Falklands waters. This doesn’t mean that something similar won’t happen but Ms Munn has stressed that there would be no discussions with FIG until those quantities of hydrocarbons are found.

Until recently this subject had gone quiet but recent data from seismic surveys has been encouraging but the jury will be out until we know for sure about the quantities of hydrocarbons we have. Exploratory Drilling is set to begin at the end of 2008 or in 2009.

LOCAL LINKS:

http://www.fogl.com

http://www.desireplc.co.uk

http://www.bordersandsouthern.com

http://www.rockhopperexploration.co.uk.



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