Shares of Stanmore Coal Limited (SMR) opened significantly lower by 2.51% to A$0.97 in Sydney this morning on broad market sentiment and third supplementary bidder’s statement from Golden Investments (Australia) Pte Ltd, an entity controlled indirectly by Sinarmas Group, for the acquisition of SMR. 

The declining national oil and gas production rate is a huge concern. As of 2018, the daily national production average is 775,000 barrels of oil per day (BOPD). It doesn’t help the situation that the production of the Mahakam Block and the Rokan Block had gone down ever since their management rights were transferred to PT Pertamina. Fortunately, the Cepu Block, which is being managed by ExxonMobil, has seen an increase in production.

Natural rubber gained 3% to 186.9 yen per Kg yesterday, the highest level since February 2018. Palm oil was last settled at RM2,109 per ton, still way below last year, but has improved substantially in the past few weeks. Recovery of natural rubber and palm oil is politically important, especially for incumbent candidate in April election.

Gold advanced 0.61% to US$1,293 per ounce this morning, the highest level since June 2018, but still way below average price in the first half of 2018. Shares of Newcrest Mining Ltd, controlling shareholder of Gosowong gold mine in Halmahera Island, North Maluku province, have gained 10% since late last month.

Thermal coal slipped further by 0.66% to US$98.35 per ton Monday (Jan 7) on global supply-demand concerns. The commodity declined 3.32% month-on-month and 6.6% year-on-year. Falling price of natural gas, which tumbled 34.71% month-on-month, might have contributed to correction in coal prices.

Shares of Medco Energy (MEDC) gained only slightly by 0.73% this morning on reports about possible acquisition of London-listed Ophir Energy Plc. On Monday, shares of Ophir Energy jumped 7.53% on London Stock Exchange (LSE) to make a market capitalization of 252.5 million pound sterling. 

The government has on Thursday (Dec 27) declared winners of three exploration blocks in oil and gas with investment commitments of US$10.95 million. The State gets US$6 million of signature bonus from the blocks, which use the gross split scheme. The much-anticipated investment, of course, is the Corridor producing block in Sumatra, where three giants are competing.

Brent crude oil fell further by 2.61% to US$52.9 per barrel Friday (Dec 21) in European trading, while WTI crude down 1.6% to US$45 per barrel on global economic worries. Natural gas, meanwhile, gained 3.43%. Gold was flat at US$1259 per ounce. Implications to the State Budget 2019?

Indonesian entities have officially controlled 51% shares of PT Freeport Indonesia, one of the world’s largest copper and gold producers. Payments have been made by INALUM, state-owned mining giant, to Freeport McMoRan and Rio Tinto Plc for their respective shares. President Joko ‘Jokowi’ Widodo, meanwhile, can enter next year’s election with something to tell.