RE: OPEC15 Dec 2016 14:59
Nigeria was given a bye to increase production lost to militants. Opec say they can cut even with Nigeria, Libya and Iraq adding.
But I wouldn't bet Nigeria can deliver an increase. I held Seplat shares last year. This year Seplat delivered a profit, strong balance sheet and dividend. Not many oil companies can say that! The problem is Nigeria. Nigeria say they've lost $5 billion as a result of dozens of attacks this year .
Things have quietened down in last 3 weeks. However situation is still unstable. It took them over 6 months to repair the Forcades export oil pipeline. And the pipelines weave through the shallow water in the swamps so they are very difficult to protect. This problem is in addition to problems with theft. Theft is easier to trace and prevent than someone planting a bomb.
Im not here for the takeover- if it happens it happens. But I note BP said they are bullish on North Sea, saying they intend to double production there. So there's appetite for North Sea. Maybe Apache?They have good balance sheet. Apache is operator for Isabella prospect (50%). Ithaca 10% IIRC. Apache operates Forties field but it's long way from Isabella. Hooking up to FPF1 makes more sense. Or maybe Petrofac might be interested in upping their cut in FPF1? It might explain their delays. Lol. I don't know. Someone who works in North Sea may have better insight of companies that have synergies with Ithaca or looking to expand.