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Oil Production In Joint Saudi-Kuwaiti Fields Could Restart “Relatively Quickly”






Chevron could restart oil production from the so-called partitioned zone between Saudi Arabia and Kuwait “relatively quickly”, chief executive Michael Wirth told CNBC in an interview.
Chevron has an agreement with Saudi Arabia to produce oil from the fields in the partitioned zone on its behalf. However, a territorial dispute between the Kingdom and Kuwait put production of oil there on hold four years ago.
Previously, two fields in the partitioned zone—Khafji and Wafra—pumped half a million barrels daily. Operational differences and a worsening in bilateral relations led to the suspension of production in 2015. Last year, there was talk about restarting joint production after the United States called on its Gulf allies to increase production to keep rising oil prices from going too high.
 
At the time, sources told Reuters Saudi Arabia had wanted more control over the joint oil production operations in the zone and the Kuwaitis had been unwilling to accept that.
Now, following the Saturday attacks on a Saudi oil field and a processing plant with a capacity of 5 million bpd, talk about joint production in the PZ is once again on the table.
According to Chevron’s Wirth, the attacks have highlighted the fact that there are real risks in the oil industry that could flare up at any time.
“Perhaps the market had grown a little bit comfortable with risks that we never became comfortable with,” Wirth told CNBC’s The Closing Bell. “These events demonstrate that those risks are real.”
Saudi Arabia and Kuwait resumed discussions about the restart of joint production from Khafji and Wafra earlier this year, with then-Energy Minister Khalid al-Falih saying he expected all differences to be settled by the end of the year. The outage the attacks caused last week at the Khurais field and the Abqaiq processing plant could add urgency to the discussions.
By Irina Slav for Oilprice.com
 
Calvin comments:
Inside Saudi Arabia's response to a raid on the heart of the oil kingdom
Author: Tan KW | Publish date: Fri, 20 Sep 2019, 10:45 PM

https://klse.i3investor.com/blogs/kianweiaritcles/225995.jsp

By Tuesday, the kingdom had managed to restore full supplies to customers by drawing oil from their massive oil inventories. The company also announced production would return sooner than expected – by the end of the month.


SOME IMPLICATIONS BY THESE ATTACKS

1) NOT SO EASY TO GO BACK TO FULL PRODUCTION SO FAST AS THOSE COLUMNS OF OIL PRODUCTION FACILITIES ARE AS HIGH AS 300 FEET

IMPORT AND TRASNSPORT AND INSTALLATION WILL TAKE TIME


2) FOR NOW THEY ARE DRAWING ON STORED OIL INVENTORIES. ONCE DRAWN DOWN THERE WILL STILL BE A SHORTAGE

3) SO THEY WILL TRY TO GET FROM SURROUNDING FRIENDLY NATION LIKE KUWAIT

4) SCOMIES(7045) WILL BENEFIT AS IT HAS A SUPPLY CONTRACT IN KUWAIT FOR RM600 MILLIONS OF DRILLING OIL SERVICE

5) SCOMIES WILL ALSO SEE MORE DEMAND FOR DRILLING OIL WORLD - WIDE AS MANY OTHER OIL ENTITIES WILL TAKE INITIATIVE TO EXPLORE AND DRILL FOR OIL. THIS IS AS A FORM OF INSURANCE PROTECTION DUE TO THE UNCERTAIN NATURE OF WORLD OIL SUPPLY DUE TO UNFORESEEN DISRUPTION LIKE THIS

6) SO THIS SINGLE ACT OF SABOTAGE ON SAUDI OIL FACILITIES HAS CHANGED THE EQUATION AND PROSPECT FOR SCOMIES

SCOMIES = THE ONE STOCK THAT HAS BEEN ENERGISED


SEE

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/225697.jsp

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/225921.jsp
 
SCOMIES GOT RM600 MILLIONS DRILLING OIL CONTRACT WITH KUWAIT



AND MORE!!

OTHERS Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company

SCOMI ENERGY SERVICES BHD
 
Type Announcement
Subject OTHERS
Description
Award of Contracts to Scomi Oiltools Sdn Bhd (SOSB) by Kuwait Oil Company
1. Introduction
The Company is pleased to announce that its wholly-owned subsidiary, Scomi Oiltools Sdn Bhd (SOSB), has entered into contracts  with Kuwait Oil Company, for the provision of mud products and mud engineering services for deep drilling dated 31 January 2019 and for the provision of mud products and mud engineering services for development drilling dated 4 February 2019  (the “Contracts”).  The Company received consent to announce the Contracts from KOC via their letter dated 21 March 2019 which was received by the Company on 22 March 2019.
 
2. The Contract Value
The total estimated value of the Contracts is US$150 million (equivalent to Ringgit Malaysia 610 million).
 
3. Duration of the Project
The Contracts are for a period of 5 years commencing from the date of the execution of the Contracts.
 
4. The effect on Net Assets of the Group
The Contracts will not have any material effect on the Company’s Net Assets for the financial year ending 31 March 2019. They are expected to contribute positively to the Company’s earnings over the period of the Contracts.
 
5. The risks in relation to the Contract.
The risks of operating in a new country which include the political risk and regulatory environment in Kuwait would be mitigated by the Company’s global experience in the drilling fluids business and familiarity with operations in the Middle East region, track record of the Company’s products and services offering and the Company’s good rapport with local business partners.    
 
6. Directors' and Substantial Shareholders' Interest
None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of the Company have any interest, either directly or indirectly in the Contracts.
 
7. Statement of the Directors
The Board of Directors of the Company is of the opinion that the Contracts are in the ordinary course of business and is in the best interests of the Company.
 
8. Financial effects
In addition to the Company’s information disclosed, the Management would like to inform that the Contracts will have a positive effect on the Earnings Per Share. The Contracts however will not likely to have an effect on the dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial year ending 31 March 2019.

This announcement is dated on 25 March 2019.
 
 
 


IF SAUDI ARAMCO DISCOVERS THE HIGHLY PROFESSIONAL DRILLING OIL SUPPLY OF SCOMIES AND LATER EMPLOY SCOMIES AS ITS MAIN SUPPLIER = THEN SCOMIES SHARE PRICE WILL GO THROUGH THE ROOF!!

BEST REGARDS

Calvin Tan Research

Note: Calvin has a Target Price for SCOMIES (7045) at 30 Sen
At 11.5 sen there is a further 160% upside

Please buy/sell after doing your own due diligence
 

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/226009.jsp
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