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Dumbly, thanks for the reference. That makes sense. The 12% is (was) BP's interest. At that time Enquest had 3% so that's how we get to 15%. A minor point in the bigger scheme of things but good to clear up.
I don't know who first suggested SVT as a storage option but fair to say the 'fake news' doesn't have legs.
londener7, I took the 12% from Schedule 1, page 49.
Even if there was storage capability, would Enquest want to use it? Better to keep some cash coming in than nothing... Especially if the view is correct that land-locked producers are going to have their production shut-in before long, if not already.
At 100 000 barrels per day throughput that storage will fill up quick.
Storage is not available for kraken crude. It is for storing SVT blend prior to bulk offloading by tanker.
Dumbly, clutching at straws?
I'm right there with you...not sure what I am going to tell my family :(
Dumbly, well done on digging up that document. I guess there's more on the Enquest site than I thought, if you know where to look.
I couldn't find the 12% number (page?) but you prompted me to look back at the 6% number I quoted yesterday. I took this from the RI document but looking at the latest report I see that a 9% interest in SVT was added with the 1st Dec 2018 acquisition, so perhaps Enquest now has a total WI in SVT of 15%.
To your question. I don't know what priority/privilege Enquest might have to storage but using the numbers I posted yesterday then 15% WI would equate to 2-3 Kraken offloads. But in practice production from Enquest's other fields going into SVT might at best be delayed a week or two. In effect, I maintain that SVT doesn't offer effective storage, but I'm happy to hear opposing argument.
Does anyone know if Enquest's purchase of BP's interests in SVT* and its Operatorship of SVT give Enquest any priority/privilege in using SVT's storage capability and, if yes, whether this is likely to have any real/significant benefit for Enquest?
*12% at 24/1/17?, see https://www.enquest.com/fileadmin/content/Corporate_actionsPDFs/Rights_Issue/SPAIncludingSchedules.PDF
*
Maybe Saudi told trump to cut production first. Talk to the Russians also and Opec will follow shortly with cuts.
Everyone happy again.
It will take too long time for market rebalancing itself without help from Opec+.
I think it will happen
Pioneer and Parsley have asked the Texas regulator for an emergency meeting to enforce cut backs in Texas. Good news from 2 Shale players ....looking for 20% cuts on Texas production.
Well thats not good!
From ENQ media, "SVT was the terminal through which the Group shipped production for all of its UKCS producing assets in 2017 with the exception of Alba, Alma/Galia, GKA and Kraken. "
>30 fields supply oil to SVT through several pipelines c 32MMbbls in 2020. I believe storage is 8MMbbls. The CMD update stated " c.8 mbbls crude storage".
ENQ operate SVT but only has a 6% working interest. I'd guess that applies to their working interest in storage, so about 480Kbb, roughly one Kraken offload.
I wouldn't look to SVT as a storage option.
Looks like ENQ will not be forced to sell oil at really low prices if they have SV to store it and have enough cash to survive till Q4 and the next year.
Just trying to convince myself there is no chance of insolvency...
All,
No idea if it is practical but from May 18 Shetland Times; "SVT general manager Derek Liversidge said that while half the stabilisation train could be scrapped, no reduction in tank capacity was envisaged.
Might just need to double check inside Tank 15 before they fill it, might be a few nightclub remnants in there. No idea where that all came from.
GLAXXX
US has at least 2 mths of lockdown just like us imv. Turn off the wells as pipes and storage will fill up within a week. The refiners don't want it. If the US Government doesn't think its urgent to act now via tariffs, then its already made the decision to let the market sort itself out via shutting wells and picking up the pieces once demand picks up post CV19.
Saudi and Russia will have to halve production, as places like India will move from 21 day lockdown to 60 day lockdown too.
Did I read SVT could store Kraken production for 15 tankers. so if 14/days per load, that's 7 months of production ?. we can use our existing cash reserves in the interim and sell the loads later in 2H/Q4 for much higher prices.
Enquest will have to cut all salaries by 25% and furlough as much as possible for next 2 months and claim accordingly.
You got it in one Krak !!
There is zero trust between them and trump will double cross him ..
22m a day oversupply is ludicrous and brent at $23 is holding up well.
I have $15 penciled in sometime in April???
So in other words Putin told him to shove it up his A hole.
Ita a start
Russian President Vladimir Putin and U.S. President Donald Trump discussed oil markets and the spread of the coronavirus in a phone call on Monday, the Kremlin said.
The presidents agreed for Russian and U.S. energy ministers to hold consultations on global oil markets. They also agreed to continue their dialogue at a personal level, the Kremlin said in a readout of the call.
Modestus, can you please send skype link?
The target got to be $50+ any lower just will not cut It....How long it takes to get there is anyone guess?
Thanks Mav, good interview.. now the $2T package is done.. Trump can help fix the US oil industry.
I prefer the fixed price structure with tariffs for those undercutting.. What price though. $50 or $60.. Think Trump has 30 days to sort it, as he intends to get USA back to work by April 30.. He needs to make a quick decision.. as delays cause more damage.. US shale was declining anyway, so WTI $55/$60 seems about right to protect bankers interests. Goldman saying we might see $55 in 2021 anyway, but that's a long time to wait.. Saudi blaming Russia is pointless. Trump might as well just go straight to tariffs.
Ted Cruz interview today on CNBC....Watch towards the end very interesting insight of Americans staunch on oil price KSA and Russia.
https://www.cnbc.com/video/2020/03/30/sen-ted-cruz-coronavirus-relief-package-oil-prices-airlines-squawk-box.html?&qsearchterm=ted%20cruz
Landlocked oil as per GS will have to be shut in first as pipeline capacity disappears.. decisions are made based on logistics rather than price. I also like that some US shale operators have to prove they have a customer now before they send more down the pipe.. If Trump can add US to OPEC+ with a quota system post CV19.. then that bodes well for Brent $55+ going forward with little risk of price downside.. ie price stability.. but I think this negotiation would take 3 mths normally and we need an agreement this week to lift the price back into the $30+ range.
Enquest could manage with $55 (Q1), $26(Q2&Q3) and $44(Q4) to average $38 for year.. keeps our cash intact so long as production remains stable.. surely a US deal with Texas production quotas would help them out more than a cheque for $1,200.