The Oil Man: Oil price, Faroe, IGas, Lamprell
4th November 2016 12:39
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WTI $44.66 -68c, Brent $46.35 -51c, Diff -$1.69 +17c, NG $2.77 -2c
Various things impacted the oil price yesterday, but the overhang from the massive Energy Information Administration inventory stat from Wednesday was still a ghost and the Genscape numbers showing a build of 1.2 million barrels at Cushing only made it worse.
News that OPEC production continues to rise, as does Russia's, was not lost on the market and the 200/- barrels per day (b/d) lost after the attack on the Nigerian Forcados pipeline was lost in the ether.
Faroe Petroleum
has announced that the Njord facilities have been selected as the preferred concept for the Pil and Bue development.
No great surprise there, as they are clearly backing the infrastructure they know well and the joint venture economics are likely to stack up best.
IGas Energy
An interesting few days for , which is spending more time fighting off unpleasant bondholders rather than running the business as I'm sure they would prefer to do.
Having a few of their own bonds in the store cupboard was quite handy, as they sold them off yesterday at 75% of par, which looked a good price to me, probably - until they find out who they have sold them to...
The $6 million (£4.8 million) apparently sees it through to next March, but it will break the leverage covenant in December, which apparently means it will need an "equity cure" - whatever that is, probably a well telegraphed rights issue.
Lamprell
has announced the delivery of the Ensco 141 jackup rig but, rather ignominiously, into a "warm stack", which probably tells you a bit about the market.
Lamprell still has plenty of work, but not so many orders coming in, which is a modest challenge for the new CEO, whom I am hoping to meet before too long.
And finally…
Completed on Wednesday night but with no blog yesterday I couldn't go without checking out the Cubs, who beat the Indians in the deciding game of the World Series.
Last night in the Boropa, the Saints got a good win and the Red Devils didn't, in a grim old game.
This weekend, apart from the first round of the FA Cup, there are few exciting fixtures in the Prem, where the stand-out fixture is the North London derby between the Gooners and Spurs.
Elsewhere the Noisy Neighbours host the Boro, the Hornets go to Anfield, Chelski entertain the Toffees and the Red Devils go to the Swans,
Much more exciting will be the start of the autumn rugby internationals in the Northern Hemisphere, although a number of sides appear to be ravaged by injury. Tomorrow sees Wales v. Australia and Ireland taking on the All Blacks, while the Ba-Bas play the Springboks.
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