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JSC, http://seekingalpha.com/article/4028486-oil-last-time-opec-cut-production
today oil is down, the long term is explained above and below, OPEC does make a difference on oil price, and below another good article:
Summary
Parties to the OPEC agreement are incentivized to follow-it, increasing the likelihood oil supplies will rebalance.
For a majority of the producers, anticipated $55-$60/barrel oil prices still insufficient.
Agreement is merely first step to increase oil prices significantly higher.
For us, it's important to remember a key idea in the prelude leading up to the OPEC agreement and its aftermath, and that is this: Self-interest will broker the deal, and self-interest will enforce it.
What we mean is that all of the players are incentivized to force oil prices higher, and the mutually shared pain of minor cuts only enhances and reinforces the collective benefits. Cut a small amount now, and reap much greater rewards later. Net-net, a small production decrease (in words or deeds) leads to overall higher revenues.
Just look at Iraq. Up until the last minute of the ministerial meetings on Wednesday, the country's representatives still refused to cut, and continued to hold the untenable position that self-reported figures should be used as the baseline for any production cuts. Only after all OPEC members had agreed to use far more reliable and verifiable secondary source figures did Iraq begin to capitulate that point. Moreover, once Iraq noticed on Wednesday that the oil markets were beginning to move up at the signs of a deal was more likely, they agree to join in the cuts. Bloomberg states:
Iraq's assent would only come hours into the discussion, when oil prices soared in response to rumors of a deal. Oil Minister Jabbar al-Luaibi stepped outside the room and called his prime minister. He returned with consent to Iraq's first OPEC production limit since 1998.
And why wouldn't Iraq agree? Any lost production was already more than compensated for by the higher oil price even before OPEC had agreed.
Compliance
And so it goes, as we now wait for January when the agreement takes affect, self-interest will not doubt continue to play a key role. Of the 1.8M bpd cut, arguably two parties are the most important, Russia and Saudi Arabia. With Saudi Arabia comes along three strong supporters, the UAE, Qatar and Kuwait.
Country
Production Cut ('000 bpd)
Saudi Arabia
486
Kuwait
131
UAE
139
Qatar
30
Russia
300
Total
1,086
Total Cut
1,800
% of Total
60%
yes this very well can be !2 when il goes over $75 jmo
yes this very well can be !2 when il goes over $75 jmo
Tullow even MoreInTheSun, CupAndHandleBreakout$2.09 @.08 was prior high in April, the pivot point
Looking great here
Tullow'sDayInSun has arrived,6month breakout to$1.84+15%!
Been expecting this a long time. Higher oil for an extra fast growing oil company is like steroids for the stock.
Cheers
Tullow also made use of higher prices in the third quarter, topping up its 2016-2019 oil production hedges by a combined 21,740 bpd, nearly double the amount hedged in the same quarter last year for 2015-2018.
The companies, all active in Britain, have also reaped benefits from the drop in the pound, which has fallen to its lowest in over 30 years since the country voted in June to leave the European Union.
A weaker pound means British-based oil producers, which earn revenue in dollars, see their spending in the local currency fall. Premier Oil(PMOIF), for example, has saved more than 250 million pounds ($312 million) thanks to the exchange rate.
The 16 percent drop in the pound against the dollar this year has prompted many producers to hedge their foreign exchange exposure, as well as their oil and gas.
Oil producer EnQuest(ENQUF) said it had hedged all of its sterling exposure for 2016 but none for 2017.
"We will see a decline in our cost base in dollar terms and an increase in our margins," EnQuest(ENQUF) Chief Executive Amjad Bseisu told Reuters.
"If you have the oil price coming down 70 percent and the pound coming down 20 percent, the oil price going up again has a much bigger impact." ($1 = 0.8020 pounds) (Editing by Dale Hudson)
Above is from 11-28, TODAY
Other news: NAIROBI, Nov 15 (Reuters) - Africa Oil(AOIFF) and its partners in Kenya will drill up to eight exploration and appraisal wells starting from December to boost proven resources and improve financing prospects for field development and an export pipeline, an executive said.
The group, which includes Tullow Oil(TUWLF) and Maersk , initially planned to build a single pipeline to connect Ugandan oil fields and the Kenyan project to Kenya's coast, but Uganda opted to build its own pipeline via Tanzania.
Africa Oil (AOIFF) Chief Executive Keith Hill told Reuters building a standalone pipeline for Kenya "makes us much more dependent on our own resources for justifying and financing that pipeline", encouraging further drilling to firm up oil discoveries.
The South Lokichar Basin in north Kenya is now estimated to have 766 million barrels of recoverable contingent oil resources.
These are classed as 2C resources, covering proven and probable resources, while 1C covers proven resources.
"If we could get to a billion barrels of 2C and say 300-350 million of 1C those would give us a pipeline tariff and lending base which would work very well for us," he said, without giving current estimates for 1C resources.
The latest drilling programme will begin with two exploration wells, the first to be spudded in early December, followed by two appraisal wells to make further assessments of existing finds. Depending on results, four more exploration wells will follow.
About one well a month will be drilled.
Hill, speaking from the United States, said he would have "really high confidence that both those thresholds" for 2C and 1C resources would be achieved if all eight wells were drilled.
The partners aim to secure a final investment decision for the Kenyan project by late 2018, with full production expected to start about three years later, he said.
Kenya plans to start small-scale production in 2017, involving trucking about 2,000 barrels per day to the coast.
Full-scale projection requires a 890 km (560 mile) pipeline, costing about $2.1 billion.
The government said last month it aimed to sign a joint development deal for the pipeline soon.
Tullow has a 50 percent stake in the Kenya project, while Africa Oil(AOIFF) and Maersk each own 25 percent of the two blocks where discoveries were made in 2012.
TUWOY acting great,+6% 5YearHigh $12,BiggerCompanyNow $1.75Pivot
Its a much bigger company oil production and reserve wise today than 5 years ago when it was $12. We are on edge of a 5 month, Cup and Handle Breakout, the pivot is $1.75 which would be 5 month new high and generate a IBD C+H breakout. if oil goes to $75 JMHO TUWOY will get near $10. Their big reserves will be worth so much more and profits will soar.
Cheers
Kenya could export crude oil next year By Jevans Nyabiage Updated Sat, February 21st 2015 at 00:00 GMT +3 SHARE THIS ARTICLE Kenya could be an oil exporting country as early as next year, as it races ahead of Uganda, which discovered the resource about nine years ago. UK-based oil and gas exploration firm, Tullow, is pressing on with plans to start producing oil in Lokichar despite the substantial drop in crude oil prices that has had many analysts poor cold water on Kenya’s oil discovery. The firm could start oil production by end of next year, which is sooner than earlier date of 2018 when the firm was largely expected to start production.
This will see Kenya join the elite club of oil exporters, a big boost for the country. Kenya is a net importer of oil and has always borne the blunt of spikes in oil prices blamed for sustained high prices of essential commodities as well as a weak local currency. Tullow has said it expects a pipeline to be in place by end of next year, to pave way for commercial production and crude oil export. Contained in its latest financial report, Tullow says commercial oil production in Kenya could result in around 100,000 barrels of oil per day (bopd).
This is about $5 million a day on the current pricing of $50 per barrel of crude oil. Kenya could make about $1.825 billion or Sh166 billion annually at the minimum. Drilled wells Tullow, which has had wild success in exploration in Kenya, has in the past estimated that there are about a billion barrels of oil in the Southern Lokichar area. The estimates are based on wells the firm has so far drilled in the region, but expects the quantities to go up as it continues drilling as well as doing further tests on previously drilled wells. The plans to go ahead with oil production are also on the back of what the firm said was a substantial reduction in exploration budget for the country. The firm says Kenya and Uganda have agreed to a pipeline that will transport crude oil from Lake Albert Rift Basin in Uganda to either Mombasa port or Lamu. “In Kenya, development studies have commenced which could result in production of around 100,000 bopd gross. The joint venture partnerships in both countries (Kenya and Uganda) are aiming to reach project sanction, which includes a regional export pipeline, by the end of 2016,” said Tullow in its full year results for 2014 released last week. “The current ambition is to reach project sanction for development of the South Lokichar and Lake Albert resources, including an export pipeline, by the end of 2016.”
The governments of Kenya and Uganda have signed a Memorandum of Understanding and formed a Steering Committee to progress a regional crude oil export pipeline from Uganda through Kenya. Tullow added that upstream players in Kenya and Uganda had signed a cooperation agreement supporting the planned start of commercial production and have completed significant pipeline studies to define the pipeline route options and the technical specifications. Energy Cabinet Secretary Davis Chirchir confirmed that Toyota Tshusho had completed a study, which paves way for development of the pipeline. He said energy ministers in the region are meeting in Nairobi in the ongoing EAC Summit to deliberate on the issue. “We are meeting as council of ministers on the sidelines of the EAC Summit to discuss the pipeline. And then on March 6, we will meet in Kigali to receive a report from the technical team,” said Chirchir.
The export pipeline route on the Kenyan side is expected to run mostly underground, over 850 kilometres from the Lokichar basin to the coast. Kenya is to construct the pipeline from Lokichar basin while Uganda is expected to construct its part of the pipeline from the Lake Albert rift basin to link up with the Kenyan pipeline and another from South Sudan. The planned production date of late 2016 could coincide with the time when Kenya prepares for 2017 polls, which many will see as a major addition to the campaign chest of the Jubilee administration.
Read more at: http://www.standardmedia.co.ke/business/article/2000152394/kenya-could-export-crude-oil-next-year/?pageNo=1
Tullow extremely strong in face of oil drop
That loan they got that will provide all the money they need to start cash flowing off TEN seems to have impressed the market.
It looks like TUWOY is back in favor, outperforming other oils.
NAIROBI: Tullow Oil has announced that the oil fields in Turkana will be fully developed by 2020, ahead of restarting of drilling in Lokichar Basin before December. The UK gas and oil exploration company published the production update yesterday where it gave a similar timeline for the Ugandan operation in the Lake Albert basin.
Both projects are being developed independently and are collectively estimated to have more than 1.7 billion barrels crude oil reserves. Tullow’s announcement offers a much-needed reassurance after recent shocks presented by the decision by Uganda to pull out of a joint pipeline with Kenya, and opting to evacuate its oil through Tanzania.
“Both projects aim for full development by 2020,” Bloomberg Intelligence analyst Will Hares reported yesterday, quoting Tullow Oil. Kenya expects to have completed the development of the crude oil pipeline from the oil fields to Lamu Port by then, though the Energy Ministry has a more optimistic deadline of June of 2018. Mr Hare’s projects that the growing oil finds in both countries would catalyse the drilling activities and the construction of pipelines to evacuate the crude oil to the refineries, and onward export. “While early-stage, with full development not expected until 2020 or later, accelerating drilling activity, resource delineation and project advancement will deliver a pipeline of near-term catalysts for license holders and investors,” adds the analyst in his report.
A slump in global oil prices over the last two years has slowed investments in drilling in many parts of the World, including Kenya. There is however little prospect of a significant price rise in the near future with major producers around the World failing to agree on cutting production to help prices. READ MORE LAPSSET transforming lives in North Eastern Tracing the origin of man Part 1 Tullow set to resume oil exploration in Baringo In spite of the low global prices, Tullow – majority owner of the Lokichar oil fields, has announced rising profitability projections of the operation owing to the bigger confirmed reserves.
Africa Oil and Maersk Oil jointly own 50 per cent of the operation in Lokichar, while Tullow owns the other half. Africa Oil’s chief executive Keith Hill had earlier in May said that the confirmed oil reserves had grown by a quarter since the previous assessment last year. “Based on the continuing drilling and testing program over the past year our best estimate is now that the company’s discoveries in the South Lokichar Basin contain gross unrisked contingent resources of 766 million barrels of oil,” Mr Hill said. With that update, the Lokichar operation was upgraded to what is technically known as 2C, meaning there is sufficient chance that the available reserves are much higher than the confirmed amounts.
“The level of these resources gives us confidence that we will exceed the threshold required for development and we continue to push forward for development sanction during 2017,” added Mr Hill. Kenya, which has been forced to go it alone in the development of the crude oil pipeline after Uganda pulled out, anticipates producing the first barrel next year before scaling up production to full capacity in 2020.
Read more at: http://www.standardmedia.co.ke/business/article/2000217569/tullow-expects-to-fully-develop-turkana-oil-fields-by-2020
Take off time for TUWOY Double Gap Up 1.61
Seems to have been discovered
TUWOY UP 10% TODAY 1.56 The sector starting to roar.
And its the same gain as London listing TLW
239.90GBp
21.30p (9.74%)
Looks great on 1 year chart, at pivot of cup and handle
Yes, and many other places too. Now that they have permission to truck oil should speed up Kenya. They are a big company 1.3 Billion rev.
I thought they were about to do a new exploratory in Kenya
They drill all the time. Setting up a floating platform and pipelines etc is a big investment, setting up a complete field offshore, that is done.
yes But aren't they about to drill another well someplace? tia
Hi JSC, I just bot a tad more. Timing is good as next two Qs will be much better than prior ones. They are hedged above market a lot, and cost will decline a lost (TEN build over) and production up a lot (TEN online for 30 days now)
thanks geodan. Oil may be about to move back up but will take a while. Great time to accumulate tuwoy jmo
Superb Tullow Presentation link
http://www.tullowoil.com/Media/docs/default-source/3_investors/tullow-oil-overview-presentation-sept-2016.pdf?sfvrsn=2
New as of this month. Impressive
Earnings estimate for TUWOY
http://www.4-traders.com/TULLOW-OIL-PLC-9590152/financials/
My experience is that they are way to low in rising oil prices, that they beat big time. With $60 oil they will blow those earnings away, JMHO.
KAMPALA Uganda--The U.K.'s Tullow Oil PLC(TUWLF) and France'sTotal SA(TOT) have been issued eight oil production licenses in Uganda, as the East African nation seeks to develop vast oil reserves discovered a decade ago.
Tullow and Total are expected to invest $8 billion to develop the oil fields, which will involve drilling more than 500 oil wells, Irene Muloni, Uganda's energy and minerals minister, said Tuesday.
"Time for waiting is now over" Ms. Muloni said, adding that "oil companies are expected to make final investment decisions on these projects within 18 months and first oil is expected by 2020."
The development ends nearly six years of talks with oil companies. Uganda's oil assets are believed to contain some 6.5 billion barrels of crude.
Tullow will develop five oil fields, while Total with develop three, all located along Uganda's western border with Congo.
Adewale Feyami, general manager of Total's Ugandan unit, said that the company would dedicate financial and physical resources to fast track the development of the project.
"We are committed to ensure that first oil from this project is delivered as soon as possible," Mr. Feyami told reporters in Kampala.
After falling to multi-year lows over the past two years, oil prices have climbed more than 25% in 2016 on expectations that the global glut of crude is set to shrink. But the price turmoil has raised concerns among about frontier projects in Africa.
China's Cnooc Ltd., which jointly owns four oil blocks with Total and Tullow in Uganda was the first to be issued with a production license for the $2 billion Kingfisher oil field in 2013. First oil from this field was initially expected to come on stream in 2018, but this is now not expected until 2020.
The three companies are expected to start pumping as many as 230,000 barrels-a-day of crude for the issued licenses by 2020.
But according to Ahmed Salim, an analyst with Teneo Intelligence, Uganda's latest target remains "ambitious" in light of oil-price trends.
Total, Tullow and Cnooc said in a joint statement that the approvals are a milestone for Uganda and the companies.
"It now paves way for the Joint Venture Partners to make considerations for significant long-term capital and infrastructure investments in Uganda," the companies said.
East Africa has been a focus for oil and gas exploration after a flurry of discoveries in Uganda, Kenya and Tanzania in the past few years. Analysts say the region could rival West Africa as the next energy hub on the continent, given its close proximity to the energy-hungry Asian markets.
Uganda's long-delayed decision comes weeks after Kenya approved a plan to start oil production from oil fields in its remote north western regions.
The development of Uganda's oil assets will include building a 1,443 kilometers (897 miles) crude export pipeline to the Tanzanian port of Tanga. A 30,000 barrels-a-day refinery is also being built.
According to Tullow, Uganda's oil development costs including pipeline tariffs are estimated at $25 per barrel.
OK THAT IS THEIR UGANDA FIELDS, THIS PRESENTATION COVERS THEIR KEYAN ONES, FROM PARTNER AFRICA OIL http://www.africaoilcorp.com/i/pdf/Corporate-Presentation-Sept-2016.pdf
Huge drawdown of USA oil inventory+Drop in production
Oil prices increased by more than 1.5 percent on Thursday, with WTI and Brent trading at $46.25 and $48.64, respectively, at the time this article was written. This increase was attributed to a huge drawdown in U.S crude oil inventories. According to American Petroleum Institute (API), U.S. crude oil inventories fell by a massive 12 million barrels last week. As per the API data, this was the biggest drop in crude oil inventories since January 1999.
In a poll that was conducted earlier by Reuters, it was predicted that there was a drawdown of 100,000 barrels in U.S. crude oil inventories last week. However, the current API data shows that last week's crude oil inventory drawdown is way higher than what was expected. In fact, many traders and analysts were expecting an inventory buildup of around 900,000 barrels.
And USA production is way down
2015-Jul 07/03 9,604 07/10 9,562 07/17 9,558 07/24 9,413 07/31 9,465
2015-Aug 08/07 9,395 08/14 9,348 08/21 9,337 08/28 9,218
2015-Sep 09/04 9,135 09/11 9,117 09/18 9,136 09/25 9,096
2015-Oct 10/02 9,172 10/09 9,096 10/16 9,096 10/23 9,112 10/30 9,160
2015-Nov 11/06 9,185 11/13 9,182 11/20 9,165 11/27 9,202
2015-Dec 12/04 9,164 12/11 9,176 12/18 9,179 12/25 9,202
2016-Jan 01/01 9,219 01/08 9,227 01/15 9,235 01/22 9,221 01/29 9,214
2016-Feb 02/05 9,186 02/12 9,135 02/19 9,102 02/26 9,077
2016-Mar 03/04 9,078 03/11 9,068 03/18 9,038 03/25 9,022
2016-Apr 04/01 9,008 04/08 8,977 04/15 8,953 04/22 8,938 04/29 8,825
2016-May 05/06 8,802 05/13 8,791 05/20 8,767 05/27 8,735
2016-Jun 06/03 8,745 06/10 8,716 06/17 8,677 06/24 8,622
2016-Jul 07/01 8,428 07/08 8,485 07/15 8,494 07/22 8,515 07/29 8,460
2016-Aug 08/05 8,445 08/12 8,597 08/19 8,548 08/26 8,488
That is a 1.1 million barrel a day decrease in production in USA
Pretty obvious that oil will go up.
New oil Bull Market?
I think so, have been loading up on oil and related for 2 months now.
TUWOY will soar. WNR is already.
Best oil service company?
http://seekingalpha.com/symbol/HGHAF is my vote.
Honorable mention for ESV and NOV.
HGHAF has 5 bagger potential, as does TUWOY
8-24-16 Following Kenya’s President Uhuru Kenyatta’s directive to expedite exportation of Kenya’s first oil, Tullow Oil Company has confirmed that it will start oil production in March next year.
Briefing President Kenyatta at State House, today, Tullow Oil Chief Operating Officer Paul McDade said his company has made good progress and will be ready to start oil exportation in June 2017.
The oil will be transported by road from Lokichar in Turkana County to Mombasa where it will be exported.
He said initially 2000 barrels will be produced per day, adding that Tullow Oil is committed to aggressive exploration that will see at least eight more wells drilled in North Lokichar to scale up production.
Tullow Oil State House
Tullow Oil Chief Operating Officer Paul McDade at State House Nairobi
“This will take the mean recoverable resources to over a billion barrels from the current estimated 750 million barrels,” Mr. McDade said.
Energy Cabinet Secretary Charles Keter said the construction of a pipeline to transport oil from Lokichar to Lamu Port is still on course and that the Government and its upstream partners, Tullow Oil, African Oil and Maersk Companies, have concluded a Joint Development Agreement (JDA) for the development of the pipeline.
President Kenyatta emphasized the need to move with speed in the implementation of the pipeline project.
“We have started and we are not moving back. We want to be at the top of the pile. So, we have set a path and by 2019, Kenya is going to be a major oil producer and exporter,” President Kenyatta said.
More good news, thanks. This will soar.
Uganda Issues 8 production licences to Tullow Oil and Total E&P http://www.oilnewskenya.com/uganda-issues-8-production-licences-to-tullow-and-total-ep/
LONDON--Tullow Oil PLC(TUWLF) said on Thursday it had reached first oil at the three fields in Ghana, on time and on budget.
The oil and gas exploration and production company said it expects oil production at the Tweneboa, Enyenra and Ntomme fields, offshore Ghana, to reach a gross amount of about 23,000 barrels of oil a day.
Tullow Oil (TUWLF) has a 47% stake in the fields.
Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter @OlgaCotaga
So we are talking 11,000 bopd revenues, bingo. at $48, that is over $.5 million a day or $192 million cash a year coming TUWOY's way and with cost declining not increasing, as building a field is more expensive than pumping it.
HUGE NEWS
TULLOW a double catalyst company TEN+Kenya
Huge new field coming on about today, TEN. In Kenya huge new find and gov just approved letting them truck the new oil to the port.
TUWOY can explode as their production will explode right now and in the future.
Higher Oil Prices Likely To Happen Sooner Than Later
agree with article
http://seekingalpha.com/article/3999367-higher-oil-prices-likely-happen-sooner-later?li_source=LI&li_medium=liftigniter-widget
Daryl Montgomery Daryl MontgomeryFollow(2,463 followers)
Techincal Analysis, ETF investing, contrarian, macro
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Summary
The IEA has released projections showing large deficits in oil production versus demand for 2016 and 2017.
The Saudi Oil Minister has announced the Kingdom will cooperate with its fellow OPEC members to help "stabilize" the market.
The fundamentals with OPEC cooperation should fuel an oil rally well into 2017.
The supply/demand fundamentals of the oil market have been rapidly shifting toward the bullish side during 2016 and will continue to do so in 2017. The IEA (International Energy Agency) now forecasts 2016 global production to decrease by 900,000 barrels per day (bpd) and consumption to increase by 1.4 million bpd, creating a whopping 2.3 million bpd deficit. The supply/demand shortfall is projected to continue into 2017 with production rising by 300,000 bpd, but consumption increasing by more at 1.2 million bpd, leaving a 900,000 bpd hole of excess demand. Added to this, the Saudi oil minister stated on August 11th that Saudi Arabia would work with other oil producers, both OPEC and non-OPEC, to help "stabilize" prices.
The inability of the oil market to fulfill ever-increasing demand (up on average by 1.6 million bpd between 2009 and 2015) is inevitable this time around as it has been over and over again in the last several decades (there tends to be an oil price collapse every five to seven years followed by a rebound to sometimes much higher prices than the previous peak). This happens because while global demand increases at a fairly steady rate, supply tends to come online in big increments (what mathematicians would call a step-wise function) usually because of discovery of major new fields. New production from the mega oil fields of the North Sea, Gulf of Mexico and the North Slope of Alaska is what stopped the 1970s oil rally and kept prices mostly depressed until 1998 (prices tested their 1980 highs during the Gulf War in 1990-91).
This time around, it wasn't production from new conventional fields that produced the temporary supply glut, but technology that increased the supply both in North America and the Middle East. Ramping up production through technology is only needed for oil that is difficult to get out of the ground or is not usable in its natural state. Oil production was increased dramatically in North America by fracking, which involves injecting water, sand and/or corrosive chemicals at high pressure to create cracks in subterranean rocks to connect isolated oil or gas pockets. The peak production increase was in 2014 and the IEA has predicted production will fall significantly in 2016 (see chart). The fracking boom was fueled by almost unlimited cheap and easy credit, but as some frackers started to default on their loans, U.S. banks have pulled the plug.
As the U.S. ramped up oil production after 2008, so did the Middle East (see chart). This seems to have been in response to high oil prices in the first half of 2008 when oil reached almost $150 a barrel. Middle Eastern countries turned on the spigots full blast, but realized they needed to bring marginal fields online if they wanted to increase production further. In response, the Saudis brought the Khurais and Manifa fields into production in subsequent years. Khurais had been abandoned in the early 1980s and required an injection of 4 million barrels per day of desalinated water that had to be pumped a distance from the Persian Gulf. Manifa produced only extra heavy oil contaminated with toxic vanadium. It required massive infrastructure investment before it could produce marketable oil.
Just normal action, it gaps a fair amount, main volume on LSE. My take is one day its going to really take off.
geodan what caused the gap at $1.26 August4/5 tia
1.49, just broke thru 50dma
The setup is superb, in 1 weeks oil will be flowing from TEN, and in 2017 oil will be sold via trucking in Kenya. There revenue will soar, plus investment in TEN is pretty much over, it is harvest time.
3 Days to Go! The TEN project, which will produce its first oil on August 18, 2016, will begin the production of gas in the first quarter of 2018.
Moreover, work on the onshore gas reception facility for the ENI integrated Offshore Cape Three Points (OCTP) project at Sanzule in the Ellembelle District in the Western Region was also on course, he said.
The facility, which has the capacity to produce 180 million standard cubic feet per day (mscf/d), sufficient to generate about 1,000 megawatts (MW) of power, comes with additional oil production of about 45,000 barrels per day.
The US$7.9-billion investment project will ensure reliability of power generation to feed industry and commerce.
The ENI and its partners are hoping to pour the first oil in August 2017 and first gas in February 2018.
Additionally, plans are advanced for the expansion of Ghana’s gas infrastructure.
The Minister of Petroleum said Ghana had learnt its lessons from the challenges faced with the supply of gas from Nigeria.
He was reluctant to state the quantum of Ghana’s indebtedness to N-Gas but stated that the Ministry of Finance had worked out a payment plan which had been agreed on by the parties.
NAIROBI, Kenya (AP) -- Kenya's government says it has approved a plan to produce between 2,000 and 4,000 barrels a day of crude oil in an effort to exploit the country's oil production potential.
A statement from the president's communications department said Thursday that infrastructure will be upgraded to allow trucks to ferry the oil to the country's main port in Mombasa.
The Cabinet also approved the development of a pipeline from the exploration fields in the country's north to Lamu, where Kenya is constructing a second port, which in the future will be the main source of transportation for crude oil from Kenya.
The pilot scheme has the potential to deliver up to 2,000 barrels per day in the second half of 2017, according to Tullow Oil PLC, which is doing the exploration.
Any day now Tullow will announce TEN flowing. Been buying more. What other oil company will boost oil production more than TULLOW in next 3 years.? Can not think of one.
LONDON--Tullow Oil PLC(TUWLF) swung to a first-half net profit as significantly lower costs partially offset lower revenue due to weaker oil prices and reduced output from its Jubilee oil field in Ghana.
In the first half of 2016, Tullow's net profit was $29.7 million compared with a net loss of $67.9 million in the same period a year earlier.
The company said its TEN oil field in offshore Ghana was on track to deliver first oil in early August. TEN will increase Tullow's group net production by around 60% when it reaches capacity by the end of 2016, enabling the company to start paying down its big debt pile.
"The benefits from last year's cost-cutting program are evident in the financial results, the significant TEN capital expenditure is behind us and we have also made good progress on the Jubilee Turrett project," said Tullow Chief Executive Aidan Heavey.
Last month, Tullow warned it was cutting its full-year production guidance range to 62,000-68,000 barrels of oil equivalent a day following problems with a production platform at the Jubilee oil field in Ghana.
In the six months ended June 30, revenue fell 34% to $541 million due to weaker oil prices and lower oil and gas output from West Africa over the period. Tullow's west Africa output net to the company averaged 51,800 barrels of oil equivalent a day.
Tullow has insurance in place which covers the loss of production and revenue from Jubilee.
Net debt reached $4.7 billion at the end of June compared with $3.6 billion at the same time a year earlier.
This is a rally waiting to start, there production is going up 60% in 10 days and their cost are falling, and they are already making money. Cheers
Bot more, 1.28 Great potential
Valuation Measures
Market Cap (intraday)5: 2.30B
Enterprise Value (Jul 26, 2016)3: 6.33B
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye Dec 31, 2017)1: N/A
PEG Ratio (5 yr expected)1: N/A
Price/Sales (ttm): 1.44
Price/Book (mrq): 0.73
Enterprise Value/Revenue (ttm)3: 3.94
Enterprise Value/EBITDA (ttm)6: 8.62
EBITDA (ttm)6: 733.50M
TEN is coming on now, massive reserves in Kenya for future. All for just 2.3 billion, looks like perfect buy point here, JMHO
6-21: Uganda will issue production licences for six blocks to Tullow Oil and Total E&P Uganda before the end of this month, according to state minister for minerals (designate) Peter Lokeris
offshoreuganda jjordan64816A total of 120 exploration and appraisal wells have been drilled in the country, according to official sources. (Image source: jjordan64816/sxc.hu)
He added that licences for six blocks are up for grab for the two leading contenders.
“Everything is set. Before the end of the month, we shall issue licences for six blocks. At the moment, I cannot divulge more details but just know that Tullow Oil and Total E&P will be those we shall sign agreement with,” Lokeris stated.
The minister also revealed that a total of 120 exploration and appraisal wells have been drilled in the country. “Out of these, prospectors have encountered petroleum in 106 wells in the subsurface. This represents a drilling success rate of 88 per cent, which is the highest worldwide. It is estimated that the in-place volume of petroleum in the country to-date is more than 6.5bn barrels of oil equivalent. These resources, he said are sufficient to support commercial oil production in the country.
“It is important to note that the investment in seismic surveys, exploration and appraisal drilling increased from US$50mn in 2006, to US$3.2bn by the end of 2015, and is projected to go over US$3.4bn mark in 2016.”
According to data from the Ministry of Energy and Mineral Development, the next phase of exploration is expected to happen within the next four to five years and attracting additional investment of approximately US$20bn.
The DOJ dropped the investigation into corruption because they found nothing to support charges...
https://www.sec.gov/Archives/edgar/data/937136/000110465915040479/a15-12672_1ex99d1.htm
Oil was still 80-85 bucks when this all started and around the same price when they sighed the contract. The price of oil is no excuse to renege on a contract. Because a well is not getting drilled by Sept. the primary reason for Tullows involvement it means the loss of the concession for all.
They settled with the SEC when they decided to jump on the bandwagon after the DOJ bullshit. They settled with a fine in that investigation. All this was about previous management that was long gone.
http://www.prnewswire.com/news-releases/hyperdynamics-announces-settlement-with-the-sec-300150853.html
Guessed it was something like that. Tullow was trying to save money and came up with an excuse to not drill. If oil was $100 they likely would have drilled it. Was Hyper guilty of the corrupt practices? If so not a bad excuse.
Tullow was contracted as operator to drill a well in or around around April 2014 and never did. They have been giving one bullshit excuse after another ever since.
https://drive.google.com/file/d/0B8fPIL-cKPM-VjM2WDdxbnFhcUE/view
Tullow sucks.
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Buyer Beware
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Fill us in on what they did to Hyper. I looked at them years ago, and was not impressed was good investment (Hyp)
Tullow Oil is a backstabbing contract breaker that doesn't follow through with what they claim they will do... Take a look at the screwing they gave Hyperdynamics and Guinea in West Africa.
No Country should trust these snakes to abide by a contract as they mean nothing to them and only refer to them when it suits them. They just up and quite when things get a little to tough for them.
Buyer Beware
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Text for those who do not like links:
Tullow Oil has said its initial assessment estimate Kenya crude oil recoverable resources have jumped 25 percent to 750 million barrels following the recently concluded exploration and appraisal drilling.
This is up from 600 million barrels earlier reported in an independent assessment completed by Gaffney, Cline & Associates which increased the total 2C (best) gross contingent resources by 67% to 616 million barrels of oil and total 3C (high) gross contingent resources increased 52% to 1.29 billion barrels.
Tullow Oil has also hinted that it is re-starting the exploration campaign in the South Lokichar basin saying it was reviewing options so as to de-risk the overall upside potential of 1 billion barrels.
The explorer had earlier said it would consider further exploration activities following the successful basin opening well Etom-2 result in the South Lokichar Basin in December 2015.
This said the group has continued to reduce capital expenditures to just $1.1 billion with further reductions expected later in the year.
The new assessment is welcome news as Kenya plans on building an export pipeline alone after plans to share a pipeline with Uganda fell through.
On exports Tullow has further hinted on the earlier reported road and rail transport in Kenya saying it was evaluating the use of existing infrastructure.
This it says would provide valuable reservoir data ahead of a full field development with an export pipeline.
“Tullow will now work with the Government of Kenya and our partners on a range of options for the independent development of these resources including early production using existing infrastructure which would provide valuable reservoir data ahead of a full field development with an export pipeline,” the company said in a statement.
Kenya Crude Oil Recoverable Resources Up to 750 million barrels in New Assessment ow.ly/4nbw8X
AnotherHuge Kenyan oil find, new FieldByTullow
Tullow is the most exciting oil company IMHO.
Their TEN field in west africa goes online in June, it is huge. They have found huge wells in new fields in Kenya, and today found a new field "The first well in the Kerio Valley Basin, Cheptuket-1, has encountered good oil shows across a gross interval of over 700 metres,"
There are waiting for pipeline to pump all this oil they found in Kenya. JMHO, it is the most exciting oil company out there, and it is cheap. Cheers TUWOY usa
700 meters! that is half a mile.
LONDON--U.K.-listed independent oil producer Tullow Oil PLC(TUWLF) said Wednesday that the Cheptuket-1 well in Block 12A in Northern Kenya has encountered "good oil shows."
Tullow found oil across an interval of over 700 meters. Cheptuket-1 is the first well to test the Kerio Valley Basin and was drilled by the PR Marriott Rig-46 to a final depth of 3,083 metres.
Tullow operates Block 12A with a 40% stake while Delonex Energy owns a 40% stake and Africa Oil Corporation a 20% stake.
"This is the most significant well result to date in Kenya outside the South Lokichar basin," said Angus McCoss, Tullow's Exploration Director. "I am delighted by this wildcat well result and the team are already working on our follow-up exploration plans for the Kerio Valley Basin."
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