Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
News Wire
4h ago.
Talks Stall in Restarting Oil From Kurdistan, Iraqi Leader Says
Khalid Al-Ansary, Bloomberg News
(Bloomberg) -- No progress has been made in long-standing talks for international oil companies to resume exporting crude from the Kurdistan region of Iraq, Prime Minister Mohammed Shia Al-Sudani said in a televised news conference.
Al-Sudani said the government is eager to resolve an impasse over prices that has halted oil exports for more than a year. But he said the companies refuse to amend contracts signed years ago with semi-autonomous, oil-rich region of Kurdistan.
“The companies refuse to amend, so the process stops at this point,” he said.
Iraq is OPEC’s second-largest producer.
The country’s federal budget through next year sets an average cost for the production for each barrel at $8. But it costs $26 a barrel for the companies working in Kurdistan, which forced the companies to halt production, Al-Sudani said.
He didn’t say when discussions with the companies might resume.
©2024 Bloomberg L.P.
It's a complete and utter farce now, I really dont see how this gets resolved and whilst we are making money trucking and allowing the locals doing it huge profits nothing will change.
Rudaw has reported on this but no mention of ‘stall’
https://www.rudaw.net/sorani/business/190520242
The budget has allocated $8 for the wages of the oil companies operating in the Kurdistan Region, but the contracts with the companies have been signed at $26 in the Kurdistan Region," he said.
"The Kurdistan Regional Government has agreed to review the contracts, but the companies are not willing to work less. In order to solve this problem, we need to amend the budget law or amend the contracts of the companies," he said.
What is truly bizarre is that he’s guaranteeing that employees salaries will continue to be paid. How can he guarantee this if Erbil are not handing over the oil and non oil revenue? This will be music to the ears of Barzani as he can carry on trucking and pocketing the money. I don’t believe Sudani is that stupid so something is afoot.
This could be Sudani and Barzani trying to force the IOCs to some sort of a compromise.
Al-Sudani said the government is eager to resolve an impasse over prices that has halted oil exports for more than a year. But he said the companies refuse to amend contracts signed years ago with semi-autonomous, oil-rich region of Kurdistan.
“The companies refuse to amend, so the process stops at this point,” he said.
What he really means is " The IOC's wont let us cheat them after taking all the exploration and development risk we now want them to produce the crude for peanuts". "Therefore it must be their fault, cant possible be ours, so gives us the known excuse to delay restarting exports again".
No where else in the world would any company allow itself to be cheated out of its rightful profits, while those trying it on say they want more western investment....What planet are they on???
Yes it does seem that Iraq are casting ‘those nasty Western oil companies’ as the scapegoats, when in reality Iranian influenced politicians ( Al-Sudani himself ? ) want to control Kurdistan via money. What they’d like to do but can’t by force.
While so called “local sales” (exports via trucks to Turkey) are high, albeit with prices low that favour kickbacks on the road. In the meantime GKP can operate profitably and we can look forward to more buybacks and / or dividends. This being so the current buyback has put a floor under the share price and I’d now expect a period of stability followed by my target price of 150 /65 prior to interims. Unfortunately and like many here I was hoping for a far far higher price when the pipe opens, 240 /320
I don’t like it but personally I’d take a lower oil price deal in exchange for a firm new contract with Iraq that removes much of the risk from my long term investment in GKP. The point when normal investors are not too frightened to buy our shares.
Sadly I’m not a normal investor and as a trader ‘stability’ in a share price isn’t what I’m looking for. Day traders thrive on volatility and I’ve done okay in GKP for that reason.
Hold, but life’s too short to do that for too long.
IOCs will not sign any contract with Baghdad because they don't want to pardon the receivables they are owed. Baghdad doesn't need the Kurdish oil to reach the OPEC quota, so there is not incentive for them to resume exports through the ITP. It is likely that IOCs will be invited to leave as their operations don't comply with the constitution when OPEC raises the Iraqi quota.
Talks stall? Ha! They're not even talking!
They weren't talking to begin with. For something to stall, it has to start in the first place. I understand there have been no substantive discussions since the initial meeting we heard about and it would be hard to even classify that as substantial.
The fact that not a single Kurdistan-linked website says a word about the resumption of exports or the renegotiation of the contracts confirms that there is little to no progress
Too much private money being gleaned off trucking and marketing cheap Kurd oil over into Turkey to bother with official procedures.
Everyone’s a winner (except the population, of course).
Same same.
Belgrano,
I too eco your fair views. Can they be more corrupt?