Monday, 10 November 2014

Brent falls - impact on E&A


Brent (above) has now fallen >25% since June...what are the E&Ps going to do...

Onshore flexibility, but not in the offshore
  • Longer lead times, offshore spend tends to be committed vs. onshore
  • Likely see cut back in E&A instead


Delayed payments
  • Kurdistan, DNO and Genel are still to be paid for pipeline exports
  • Egypt, TransGlobe has built up USD185m of receivables
  • Nigeria, Seplat has built up USD215m receivables as government partners/stakeholders have been slow to pay


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