WTI $93.43 -53c, Brent $106.73 -16c, Differential $13.30 +37c, NG $4.31 n/c
Lots of data and general ‘stuff’ around but nothing that is really affecting the crude price. Libya is keeping Brent under control and I hear that the Norwegians actually pulled some sales yesterday as some more Brent came onto the market. OPEC production on December was down to 29.53m b/d as Saudi exports fell as did shipments from Iraq and Libya.
Janet Yellen eventually cruised through the Senate 56-26 and takes over on February 1st. The polar vortex continues to freeze the US, even Midland, Texas got a mention yesterday but warmer weather is on the way I hear.
Another day, another contract from Amec who are at least keeping me busy at the moment. This time it is a contract renewal from the Kuwait Oil Company for project consultancy services for a portfolio of major upstream projects in the country. Value of the work is £255m and the contract has been in existence since 2004 so they must be doing something well.
Petroceltic have been brave and kicked off the production reporting season and with a 2013 number of 25,200 boe/d they are dead in the middle of the guided range. The second half was 26/- with help from Bulgaria and Egypt but guidance for this year is down, the company advising analysts towards a range of 20-22/- boe/d. This is partly to do with Egypt, where understandably production is a touch uncertain and led by investment which itself is determined by timing and scale of payments by the Government. In Bulgaria I understand that two onshore compressors are being fitted in series to reduce wellhead pressure and increase efficiency, a trick that has worked before.
The market will probably concentrate for the next few months on Kurdistan where the current Shakrok well is drilling albeit a tad behind time as the company have experienced some bad weather and minor problems often associated with drilling in the area. The Shireen well should spud in February and the infrastructure has been installed fairly high in the mountains I understand, I’ve seen the area and it takes a bit of road and bridge building to get to the perfect site.
Elsewhere Romania is going fine and Algeria is still very positive, the farm-out was a success and the Sonatrach move most encouraging.
Petroceltic has had a good run recently, much to do with the Kurdistan wells being spudded and these wells will have a significant impact on the shares performance this year as the current production will be excitement limited. Expect a bumpy ride but the fundamentals at Petroceltic are sound with production due to pick-up significantly in 2017, in the meantime its another Kurdish play for the market to watch.
It only seems like yesterday that Man U were going out of a cup but tonight they have another opportunity with the first leg of the Clueless Cup against the Maccams. As they say, Man United were the Goliaths of British football and then along came David…
So Theo is out of the World Cup, I guess it ends all that will he- wont he be selected trauma but the 2-0 gesture proved karmatic in a way…
And now England cricket are thinking of sacking ‘high profile’ players and coaches, some even suggesting that English Kev might be released, but who was the highest scorer in Oz? Captain Cook said that he was going to prove the critics wrong, ‘who said we couldn’t get any worse’?…