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Non-dom is also a joke.
"UK citizens whose main residence is outwith the UK".
Therefore, they are not UK citizens and should not enjoy the associated privileges and protections of being a UK citizen.
See how they squeal.
I've written to my MP a number of times recently regarding a number of issues, including non-dom. I have had zero responses. Pathetic. What a pointless charade the UK political system is.
You'd think a single well flexible tieback to Kraken FPSO to both Bently and Bressay could be a good start? Could possibly get 5kbopd with a P/WI pair at each location?
Evaluate, de-risk and generate a bit of cash before actually committing to £?B upgrading EP and committing to large scale SURF?
I think STG were effectively cheap, cheerful and reliable. What's complex about lighting a big fire under a large pressure vessel? Oh, apart from the 500c steam kicking about at however many hundred or thousand psi...
I think being so isolated from other infrastructure, they were a long way away from any gas import, so probably made sense to bring in diesel to burn.
No way they would get that FID approved today.
Plus, it's a very specialist area, I think there are nine people qualified to maintain them globally. Used to be ten until Fred Dibnah popped off......
Hmmmm, another good question.
I'm going to say one of them was commissioned.
Do you recall was it October 2015 that first oil was finally achieved?
By August 2016, the peak was hit, just under 18k according to the NSTA; https://www.nstauthority.co.uk/data-centre/nsta-open-data/production/
I think there's no way the power requirements would have been available to run the ESPs and injection system and production system without at least one boiler - they were 20MW each I think? Thermal output was 60MW-ish, pretty inefficient. Plus you had the safety issues of super heated, pressurised steam buzzing round.
Probably £50m to change out for GTs? Maybe more? They'd probably need to spend a good couple of hundred million to amend the topsides for heavy oil, but isn't the Rosebank FPSO contract about $1B of mods? Plus EQ own the vessel, so no payment of several hundred thousand dollars a day to add to OPEX. Hopefully since there is the work ongoing on BB already, a good detailed study of the FPSO is ongoing to ascertain any life extension work (Hull, moorings etc) and then what topside mods are required?
Could end up making the development of BB very attractive.
ENQ farm out 45% say and that partner pays some enhanced share of SURF and drilling costs and we do the facilities, then share OPEX.
Just avoid Blohm and Voss this time please!!
Obviously the next issue would yard capacity.......
It's a good question - from my work recently on a large FPSO project, rates are only going up up up and availability going down down down.
It would be amazing if we had a large development that needed a second FPSO to link in to Kraken.....
The only concern is the boilers . At the time there was a BAT assessment (I think Best Available Technique) on boilers for the power supply. Would they pass the Climate Change Checkpoint of any new field FID/ES? Unlikely if they are burning huge quantities of diesel or crude (eeeek).
May have revisit vessel power - the swivel/turret remains the difficult part of electrification on FPSOs.
I think the optimism about the ENQ furutre makes the current SP all the more depressing.
I suppose we're still held back by the ghosts of the past i.e. debt and the Alma Galia shambles.
Kraken and the recent re finance shows these should not hold us back any more.
We've got all the upside of the big heavy oil fields. Someone had said (possibly Romaron) that they are the (near) future for transport, which is great - Diesel, MGO, Jet A-1 etc - they're not being replaced in the way electric cars are taking over.
What would he weight of a battery system for a bulk freighter be?! I assume the physics and material science don't align with reality at present. Though will be interesting to see how Musk's Semi (oo-er) performs in the wild.
Surely a comparative valuation for ENQ would be over £1/share?
UKBBBBBB,
Good point on the update. Fingers crossed for good production news and possibly some CAPEX plans revealed?
Hosie will continue to look like a buffoon as the shares sit above his target and on an upward trajectory (C. Hunt pending). Maybe he'll quietly want to play catch-up with Cazenove and Canaccord? Suspect he may move the needle slightly to low 30s if at all and a neutral rating?
All assuming Jeremy cHunt doesn’t take a big dump on the UKCS. The EPL is already akin to a 70s Labour style tax. Either tax everyone the same or don’t bother.
Where are the 65% CT rates for banks and tech?
Linda Cook will sort him out I hope
Pelle,
Text from the article;
Ithaca Energy, one of the North Sea’s largest producers, could command a market valuation of up to £3.1 billion when it trades publicly next week.
The price range for its initial public offering (IPO) has been marketed at a range of 250p – 310 pence, under terms seen by EV, equating to a valuation range of $2.9bn – $3.6bn (£3.1bn).
The firm is seeking to raise as much as £310m through the IPO – London’s second-largest this year after Chinese wind turbine manufacturer Ming Yang Smart Energy Group which raised $757m.
Ithaca has already received enough orders to cover the full deal size, including a so-called over-allotment option.
It was revealed earlier this week that the company was seeking to raise as much as $1bn, before downsizing.
Proceeds are being used to play down debt.
Sorry, 10.7 years for us.
OPEX for us is I think $22-$23 v $19 for IAE.
So apart from Production being 40%/20kboepd higher, the other metrics are quite similar.
Quest,
IAE net debt $1.4B, 0.9 leverage ratio.
Reserves life of just under 10 years for Ithaca and 11 years for us based on the production and 2P number as at end H1 2022.
Don't forget HSE-free, possibly child labour using, hand-mining of Cobalt, Nickel, rare earths etc for our pious EVs!!!
As per energy voice article; https://www.energyvoice.com/oilandgas/north-sea/457084/ithaca-energy-ipo-london-valuation/
I don’t know their finances, anyone got gag packet/rough numbers that could extrapolate to us?
Good points Romaron.
IT's basic human nature (as per Maslow's hierarchy of needs et al) that is the basic needs are not fulfilled then all higher level ideals go out the window.
It's great that we're focused on transition and clean energy. Wood to Coal to Oil to Gas to renewables/nuclear to.......
However, the funding of this transition is key.
Anders Opedal of Equinor is quite sanguine about it. "we need hydrocarbons to fund the investment in to renewables. Without this, it won't happen".
We need more energy leaders to state these facts and inject some realism in the debate.
Realism is needed. Not punitive tax rates to cover up for the politicians (note I say politicians, not government) being unable to land a coherent energy policy.
Punitive taxes will scare away investment.
Less investment = more imports.
More imports = less energy security and higher price volatility
This is great news Malu, good spot.
How long would it take and what needs to happen to get to investment grade? Looks like we have to climb another five ratings to get to BBB- from B
Thanks
The outlook for oil changes more frequently than UK PMs these days.
Anything over intraday is still bullish for oil.
Good question KO - an all with Brent sitting at $92.50. Which is a lot more in £ terms these days. And Chinese growth "data" has been positive. I give up.
Remember the market can remain irrational longer than we can remain solvent. Luckily the market in this case is very much in demand so we should be fine, even if it means waiting a bit longer.
That’s an interesting issue. I’m not a production chemicals guy but I wonder if it’s due to poorly treated crude added to the SPR itself (as in water not fully separated out) or is it down to poor reservoir management and the allowance of SRBs (sulphate reducing bacteria) to flourish. These nasty little blighters produce the H2S gas in crude but can easily be kept at bay with hypochlorite treatment. I think they are added via produced/injected water so worrying that the SPR is not controlling them.
Feel free any tech people to correct me
Crikey, the SPR won't be refilled for some time then!!
I love it when politicians announce some certainty.
Instantly means it certainly won't happen.