The Oil Man: Oil price, Chrysaor, Shell, Wood Group, SOCO

WTI $52.63 -54c, Brent $55.23 -29c, Diff -$2.60, NG $3.23 -13c

We might get a few down days albeit of a modest nature, the reason is that as the month ends scribblers galore will start guessing what January production was and how short of the 1.2 million barrels per day (b/d) target it is.

First up today is Petro-Logistics who think that it was down by 900/- b/d which, should it be true, would be pretty good from a standing start, I would have a small wager on it being a bit higher.

The March Brent contract expires tonight and will probably actually remain fairly strong, the structure looks well set on fundamentals.

Chrysaor

It has been the talk of the oil market for ages and today Chrysaor have announced that they have bought a package of assets from Shell for $3 billion (£2.4 billion). It comprises 350 million barrels of oil equivalent (boe) of 2P reserves that produce 115/- boe/d at a unit opex of under $15 per barrel.

Chrysaor is bankrolled by EIG Global Equity Partners through Harbour Energy to the tune of $1 billion with an RBL of $1.5 billion. Shell remains committed through a decommissioning liability of $1 billion.

Nice to see Andrew Osborne back in the manor after a long exile.

Wood Group

Wood Group has announced a contract with Hess in Malaysia over five years and one, one year extension option. No value attributed but should be reasonable as it provides for 130 full time staff on the project providing operations and maintenance in the North Malay Basin.

SOCO International

Board changes don't often figure that much unless there is a particular reason so today's news that Dr Watts is leaving the board of SOCO International has some interest. This is because in a few weeks' time he is reappearing at the company with Jann Brown, also formerly of Cairn, to set up their new Business Development Group.

The actual wording from the company goes like this 'This change signals a renewed emphasis on growth to complement our high quality producing assets'.

So, Watts and Brown are to be tasked with finding the next growth area for SIA, any sign of Greenland in the betting?

And finally…

The FA Cup draw was kind to Sutton and Lincoln who had really wanted Premiership teams and got the Gooners and Burnley, respectively. Other interesting fixtures are a London Derby at Craven Cottage where Fulham entertain Spurs, and Millwall have the temptation of hosting the Champions if the Foxes can beat the Rams.

There is a full Prem fixture list this week and the standout fixture is the HubCap Stealers who welcome Chelsea to fortress Anfield. Having had a bad January Herr Klopp needs to pull something out here.

And full marks to Karen Brady and the board at the happy Hammers, after that ponce Payet snuck away with his tail between his weasely little legs, the club are buying back any Poyet shirts for £25 each, good riddance….

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