The Oil Man: Oil Price, BP, Wood Group, Nostra Terra

WTI $46.26 +72c, Brent $49.25 +$1.12, Diff $2.99 +40c, NG $2.45 n/c

A good day for the oil price as news from Russia and China helped crude continue to consolidate at these levels. The Russian move was on two fronts, firstly as it agreed to meet other major producers "if asked" and also as it has a scheduled meeting with the Saudis later this month. Having said that, positions taken during the latest Russian bombing of Syria makes me wonder quite how the Russo/Saudi axis is going to function at the moment.

The news from China appeared to help the oil market as well, demand appeared to be boosted by Government statements and also news from the Baltic Exchange gave a glimmer of hope as well. They said that supertanker rates were continuing to rise, yesterday achieving $104,256 p/d from Saudi to Japan which was last seen in July 2008 and independent commentators said that the Chinese had also been buying spot cargoes.

Now ship-brokers are a funny breed but it wouldn't be the biggest surprise if there was some buying going on at these levels especially if the Chinese think that the world is too bearish about their economy…Finally the holding of Brent over $49 is keeping the technical boys very happy…and WTI chart here also worth a sneaky perusal…

BP

The FT reports today that BP will pay $20.8bn to US federal and state authorities to settle civil claims over the 2010 Deepwater Horizon disaster. The settlement is higher than the $18.7bn announced in July and takes the total bill to over $55bn to date and it's not finished yet. My early estimate of $60bn may yet prove to be not as outrageous as it seemed at the time…

Wood Group

Wood Group has announced that Bob Keiller is to "retire" in December as CEO of the group, as Bob is only 51 I hear and has only been in the job for less than three years it seems rather premature, rather like his predecessor. The company has announced that Robin Watson is to succeed him next January as part of the company's ongoing succession plan.

Now, Robin is a first rate COO and I'm sure that he will make a fine CEO but something doesn't smell quite right, this seems to be a case of a CEO leaving half way through the process, one which Keiller and Wood have handled pretty well. Indeed, given how bad the market has been for most oilfield service companies, Wood's performance has been more than creditable. At least Bob will be able to hone his excellent public speaking and comedy by doing the odd bit of stand up at the Blue Lamp bar after Christmas…

Nostra Terra

NTOG has confirmed what it alluded to recently by acquiring some producing assets in Egypt as part of its JV with Independent Resources. The JVCO has acquired a 50% non-operated interest in the East Ghazalat concession from Transglobe Energy for $3.5m, payable $1m cash and the rest via a 10% bearing loan note. The concession produces 880 bopd, so 440 gross to the JV and therefore 220 to NTOG is ironically already more than double its US production. Matt Lofgran is clearly doing all he can to steer NTOG away from US domestic production and is joining the caravan of companies heading for what is now being called the "Greater Mediterranean Frontier", more to come I suspect.

Sundry

Its all keeping busy at President Energy as today they announce that they have acquired to remaining 36% of the Pirity concession in Paraguay. The cost is $500,000 payable in instalments with more on success and is clearly a wise move on behalf of President, expect more from Paraguay over the next few months.

And finally…

It seems that The HubCap Stealers are moving fast to secure Klopp for the Kop and his side-kick called Brains. Meanwhile, over in Sunderland it appears that the Maccams may be going for big Sam Allardyce, maybe they fancy a bit of "hoof ball" up there…

And Farrell senior denies that he has too much influence on the England team saying that the decisions were all Lancaster's, well he would, wouldnt he…?

And the England cricket tour has started in Sharjah with the first test only a week away, no cancelling the tour here boys…

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