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(Reuters) - West Africa-focused Tullow Oil (LON:TLW) said on Wednesday it was on track to deliver about $600 million free cash flow over the next two years to achieve its stated target of $800 million from 2023 to 2025.
The London-listed oil and gas explorer said the start-up of Jubilee South East offshore Ghana drove production and boosted 2023 cash flow ahead of its expectations, adding that the year-end net debt was reduced by about $250 million to $1.6 billion
The rest of that Reuters' piece makes for interesting reading...
NEW CEO
Lund and BP's board are running a process to select a permanent CEO, and the search includes internal and external candidates, BP said in its statement.
The board is likely to appoint the new CEO in the first quarter, and they could be named to coincide with BP's full year earnings in February, the sources said. BP declined to comment on the timeline of the process.
Interim CEO Murray Auchincloss, the chief financial officer under Looney, has sought to maintain the company's focus on day-to-day operations while publicly, as well as in company town halls, refusing to say whether he wanted the permanent job.
But privately, 53-year-old Auchincloss, whose partner is also a BP employee - a relationship he had previously disclosed - indicated he was interested in the top job, according to two sources close to the company.
Auchincloss did not respond to a request for comment.
His appointment to the permanent job, which RBC Capital Markets analyst Biraj Borkhataria said was likely, would offer a sense of continuity on strategy, investors said.
Auchincloss was key in formulating changes Looney made in February to the firm's energy transition strategy which included slowing down its retreat from oil and gas and reducing spending on renewables in an effort to improve returns.
RBC's Borkhataria said that an external pick for CEO "could add more uncertainty to the overall strategy, while also raising questions on board competence. We see the confirmation (of Auchincloss) as important symbolically to show a steady ship."
ISTANBUL - Turkey has officially informed Iraq that the northern export pipeline is ready to operate, shifting the onus onto Iraq to restore 475,000 barrels per day (bpd) of crude to global markets.
In a letter dated Oct. 2 to Iraq’s state oil marketing company, SOMO, which was seen by Iraq Oil Report, Turkey's state pipeline company BOTAS writes, "We would like to inform you that the part of the ITP [Iraq-Turkey Pipeline] system in Turkish territory will be ready for the transportation, storage and loading of crude oil coming from Iraq on 04.10.2023."
The High Cost of Iraq’s Court Victory for Oil Markets
In March, Baghdad won a nine-year arbitration case against Turkey over oil exports from Iraq’s Kurdish region. We’re all still paying the price of its victory. Iraq was awarded a net $1.5 billion in compensation by an international business tribunal, which ruled that Turkey breached a 50-year-old pipeline transit agreement by allowing crude from Kurdistan to be exported without Baghdad’s consent.
Immediately after the ruling, Turkey halted the flow of crude from northern Iraq through a pipeline to the port of Ceyhan on its Mediterranean coast.
No Iraqi oil has been shipped from Ceyhan during the subsequent 109 days, and there’s little sign of flows resuming any time soon.
Iraq’s government in Baghdad quickly reached an agreement with the semi-autonomous Kurdistan region that would see exports restart under the control of federal oil marketing company SOMO.
But Ankara has other ideas.
With no realistic alternative to the Turkish pipeline for significant crude sales, operators in northern Iraq such as DNO ASA, Genel Energy Plc and Gulf Keystone Petroleum Ltd. have had to suspend production, hitting both cash flow and their share prices.
Years ago, the companies would have been able to divert their exports to Iraq’s southern terminal at Basra. But the country’s Strategic Pipeline was damaged during both Gulf wars and the US-led invasion in 2003. It hasn’t operated since.
Already struggling to replace banned Russian crudes, the Mediterranean market has lost about 47 million barrels of similar-quality supply, forcing buyers to look elsewhere.
For its part, Baghdad has lost its share of the revenue from those sales, which are valued at about $3.4 billion based on the most recent prices for Kirkuk crude. That’s more than twice the amount it’s owed by Turkey.
Ankara wants to negotiate a settlement with Iraq before the pipeline is reopened and appears willing to forgo transit revenues until it does.
Meanwhile, everybody is suffering the consequences of Baghdad’s arbitration win.
Good find! Especially given the news that Maris is about to be ousted:
‘Crystal Amber requisitions general meeting of Hurricane Energy plc ("Hurricane")
Proposal to remove six directors and appoint two new directors
Crystal Amber Fund, the activist investment fund, announces that it has sent to the board of Hurricane a requisition notice requiring Hurricane to convene a general meeting at which resolutions will be proposed to remove executives Antony Maris and Richard Chaffe, Non-Executive Chairman, Philip Wolfe and, conditional on the appointment of Tony Buckingham and Franco Castelli, Crystal Amber nominees, David Craik, John Wright and Juan Morera, in order for Hurricane to maintain its independence. As regards the removal of Messrs. Craik, Wright and Morera, this is required to ensure that the board of Hurricane maintains its independence and is no reflection on the performance of these Crystal Amber nominees: Crystal Amber thanks them for their contributions. The requisition notice proposes to appoint Tony Buckingham and Franco Castelli to the board as directors. Details relating to Tony Buckingham and Franco Castelli are set out below…’
Much better just to put 'simple' on Filter.
Yep - me too.
Since the latest increase in windfall taxes for oil and gas companies is only to be applied to their profits from UK operations - extended until March 2028, previously due to end in December 2025 - let's hope that one of the oil majors decides to buy-out TLW as its operations are far away from the UK and so are exempt from this tax.
Bring it on!
Hurricane Energy plc, the UK based oil and gas company, notes the Autumn Statement issued by the Chancellor of the Exchequer on 17 November 2022 containing changes to the Energy Profits Levy (the "EPL"). From 1 January 2023, the EPL rate will rise from 25% to 35%. The Investment Allowance will be reduced to 29% for all investment expenditure (other than decarbonisation expenditure) broadly maintaining its existing cash value. The EPL will end on 31 March 2028.
As previously announced, the EPL charge for the Company for 2022 is currently expected to be less than $5 million taking into account capital allowances available in the period as well as the effect of the Investment Allowance that is included within the EPL legislation.
The Company is assessing the impact of the proposed changes to the EPL, in conjunction with its tax advisers. Currently it anticipates that, assuming oil prices remain at current levels, the impact of the increased EPL charge for 2023 and for 2024 will be a similar amount, but this is heavily dependent on the Company's cost base at the time and the achieved level of revenue, driven by the price of oil.
The Formal Sale Process announced by the Company on 2 November 2022 is progressing, with multiple expressions of interest received from credible counterparties. The Company will provide further updates in due course.
-ends-
Senseman for CEO...!
It's worth remembering that Maris received almost 90% of votes at the AGM to remain in post. Obviously CA were happy for him to remain as CEO or else they would have joined PIs in voting to oust him. With luck this means that a deal is imminent since CA / RB must be getting bored of being tied to this lacklustre company which, by now, should be worth much more given the size of its cash stockpile.