Palm Oil Journal No. 10/2015: Biodiesel, Output, & FY14 Results
Recent rally in crude palm oil (CPO) turned out to be short-lived as market players started to realize the likely outcome of Indonesian government’s plans to boost subsidies for biodiesel. On Tuesday, Feb 17, the benchmark May 2015 contracts of CPO lost more than 1% to RM2284 per ton on the Bursa Malaysia Derivatives.
Oil & Gas Journal No. 09/2015: Elnusa & Ramba FY 2014
The benchmark WTI crude oil contracts for May 2015 edged up 2.47% to US$54.96 per barrel Monday (Feb 16), the highest in two months, as some bet prices have bottomed out. In this report: Financial performance of Elnusa (ELSA), an oil and gas supporting services company, and Ramba Energy Ltd, an SGX-listed company with operations in Indonesia.
The Race to Enter Muara Bakau Block & Jangkrik Project (II)
The race to get into the Muara Bakau Block is pretty much similar to competition between political groups (and their cronies) in the competition for 10% participating interest in Offshore Mahakam Block, the largest gas producing block, which is also located in East Kalimantan province and Kutai Kartanegara Regency.
The Race to Enter Muara Bakau Block & Jangkrik Project
Jangkrik gas project is one of major projects in oil and gas industry with over US$4 billion of investment. Jangkrik is located within the Muara Bakau Block, offshore East Kalimantan province, operated by Italian giant ENI. First gas is expected two years from now with estimated output of 22 million barrels of oil equivalent per annum or around 60,000 boepd.
COAL JOURNAL NO. 9/2015: China’s Warmer Weather Means Freezing Winter for Coal Producers
Shares of coal producers end mixed in the region Monday (Feb 16). Rally in crude oil capped potential gain in coal sector amidst reports about production and sales of coal in China, the world’s largest consumer. January 2015 data from China Shenhua and China Coal Energy shows weaknesses in the market.
Oil & Gas Journal No. 07/2015
WTI crude oil rallied further by 2.47% to US$54.96 per barrel this morning. That means the commodity has gained 25% from its recent bottom. This might boost energy stocks, including oil and gas producers, in the region. Santos Ltd, for example, advanced 2.02% in Sydney this morning.
Coal Royalty Hike: Another Important Test for Jokowi & The Inner Circle
Government of Indonesia plans to boost revenues from coal miners by raising royalty from those operating under the mining business license (IUP) from the current level of 3-7% to 7-13.5% in order to meet the revised 2015 State Budget target. This is yet another important test for President Joko ‘Jokowi’ Widodo in dealing with his inner circle.
Coal Journal No. 08/2015: UNTR Data
PT United Tractors (UNTR) Tbk, parent of Pamapersada Nusantara—the largest coal mining contractor in Indonesia, has just released its full year 2014 data. Pamapersada produced 9.9 million tons of coal in December, down slightly from November, but its overburden removal declined significantly.
Merdeka/Saratoga Copper IPO, Tujuh Bukit Project & New Power Holders (II)
Dispute over Tujuh Bukit copper-gold project also involed high politics when Indonesian investors led by Edwin Soeryadjaya were closely linked to the inner circle of then president Susilo Bambang Yudhoyono, while Intrepid Mines Ltd engaged one of most influential figures for SBY’s successor.
Palm Oil Journal No 07/2015: Volatile Market
Crude palm oil (CPO) ended lower by almost 1% on the Bursa Malaysia Derivatives Wednesday (Feb 11) despite gains in some trading hours. WTI crude oil, meanwhile, retreated to below US$50 per barrel on Nymex few hours ago.