The Oil Man: BP, Cairn, Trinity, Sirius
13th July 2016 12:02
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WTI $46.80 +$2.04, Brent $48.47 +$2.22, Diff -$1.67 +18c, NG $2.73 +3c
The oil price had its best day since April as the report from OPEC made pleasing reading, especially with regard to draw on the cartel next year. By second-half 2017 they expect the call to be 32.97 million barrels per day, based on GDP growth of 3.1%; second-half 2017 on second-half 2016 is particularly impressive.
The Energy Information Administration (EIA) has been less positive but, with so many numbers to enter into the process, making it pretty much guesswork, you can pay your money and take your choice.
News from the court of arbitration regarding the South China Sea came out but this will run and run.
After the close the American Petroleum Institute inventory stats did not make pleasant reading, showing a build of 2.2 million barrels against expectations of a 3 million-barrel draw.
Oil is down around 60-77 cents this morning and, until the EIA stock data is released tonight, we won't know who is right.
Cairn Energy
has finally lost patience with the normal channels and is seeking $1 billion (£753 million) in compensation from the Indian Government over its claim that CNE should pay $1.6 billion in tax.
CNE is barred from selling its remaining stake in Cairn India and part of the claim is for financial losses as a result of this. By going to arbitrators, the company is trying to speed up the process; if they do not order the repayment CNE can seek compensation of $5.6 billion.
A tale of woe indeed, but I go back to my comments when put money down in India: it's a hard place to make money and it's going to take CNE a long time to get the rest.
Trinity Exploration and Production
It has been quite a while since problems emerged and this morning's announcement that its shares had been suspended "pending clarification of its financial position" sounds pretty terminal.
The debt is $13 million and the parties have been unable to agree a suitable solution; therefore they are not in moratorium any more. With the money due and Citi "restricting access" to the company's bank accounts, it all looks rather like the endgame.
It is unusual for a bank to totally pull the rug out, as there is usually a solution one way or another - particularly if the assets can be sold off to nearby operators - but one must assume that all avenues have been explored in recent months.
It is still a shame, as I always thought that Bruce and the team would find a way to fix it, however difficult.
BP - Mayday, Mayday, Mayday
Not a good day for the overpaid board members of , as Theresa May arrives in Number 10 with a strong view that some executives are being paid too much.
At $19 million or so, Bo Diddly is towards the top of that list and the company's lamentable remuneration committee will surely know that its time has come…
Sirius Petroleum
I have been keeping an eye on , an interesting Nigerian play, and whilst nothing much is happening at the moment, there are clear signs that things may.
The firm announced yesterday it had received a three-year extension by the Nigerian Federal Ministry of Petroleum Resources for OML 95, the Ororo field licence, at a cost of $500/-.
So a modest funding of £500/- at 0.25p has been done, will be paid for by SRSP and be paid back out of production. Longer-term, this might be interesting; wait and see.
And finally…
I noted yesterday that the Champions League was starting, so it's worth saying that some people, Brendan Rodgers included, probably wished it hadn't.
Lincoln red imps of Gibraltar one, Celtic (were atrocious) nil was the score and the "shock of Gibraltar" will follow them around for many a year.
The fact that a police officer scored the goal and the local taxi driver played after completing his fares for the night make it even funnier.
The FA told Sky Sports that Big Sam Allardyce interviewed yesterday, so the shortlist is indeed being constructed.
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