WTI (June) $79.23 +60c, Brent (July) $83.27 +52c, Diff -$4.04 -8c
USNG (June) $2.50 +8c, UKNG (June) 73.25 +1.6p, TTF (June) €30.735 +€1.03

Oil price

Oil will be up on the week but put that down to the pretty good inventory stats. Pre-Opec chatter as I forecast continues and I expect this to happen for the next two weeks or so when the group meets. 

Savannah Energy 

South Sudan Acquisition Update

Savannah, further to its announcement on 5 April 2024, the Company advises that its ordinary shares remain suspended from trading on AIM while it advances the various workstreams associated with completion of the proposed transaction and is working towards publishing an AIM Admission Document in Q3 2024. A further update on transaction progress, and associated matters, is expected to be made within the next four weeks.

Savannah are indeed keeping the market up to speed with the progress on the South Sudan acquisition even if the news can only say that the deal has not quite completed. 

Chevron

Chevron has announced that it is exiting the UKCS, admittedly as part of a $15-20bn sales programme post the Hess acquisition which now may not complete until next year as Exxon have taken their ‘partners’ to arbitration. 

The key asset is the 19.4% of Clair which is a surprise particularly given the potential of the Clair South project but with Sullom Voe and the Ninian SIRGE pipe system I note that Enercom suggests a $1bn price tag. Whilst Chevron has clearly opted for the Uruguay or Namibian margin rather than the punitive fiscal policy and anti hydrocarbon industry perspective of the average British politician who I feel are sleepwalking into wrecking a fantastic community. 

I wrote on Monday that the politicians should bear in mind that economics should prevail over ideology and today I am concerned that the reputation we are getting is not only a bad one but that will cost us mightily when the inevitable slow down in fossil fuel usage costs us as prices rise of a commodity we have stopped producing for all the wrong reasons goes through the roof.

And setting up Great British Energy, a publicly owned clean power energy company, what on earth do they think has been going on already…? The words ‘strikes terror into the hearts’ come to mind. 

KeyFacts Energy Industry Directory: Malcy's Blog