Agree V10. I think WDS would like what they see, both on the 3D and working with the Namibian govt so far. Certainly could not be worse than what they deal with here or the increased uncertainty in Senegal - from Upstream:
"On Wednesday this week, in a televised speech to the nation, Faye, a 44-year-old former tax inspector, said: "The exploitation of our natural resources, which according to the constitution belong to the people, will receive particular attention from my government." "I will proceed with the disclosure of the effective ownership of extractive companies (and) with an audit of the mining, oil and gas sector." Shortly after Faye’s election win, Ngagne Demba Toure, oil adviser to the new president, told Bloomberg: "To boost the state’s revenue from oil and gas, it’s necessary to renegotiate the contracts to increase the state’s shares and change the system of sharing of production."
Majors around the world have also clearly moved back to O&G exploration as SHs demand better returns, combined with strategic requirements of the West. Shell's Wael Sawan made this clear last year as the Shell oil pivot leaves energy transition aside for another day. "As analyst and broker Bernstein Research put it: “They have gone full Amy Winehouse: Back to Black.”
WDS will be no different, but as expected are remaining very hush, hush. Even both Northern Ocean and Odfjell Drilling still have Deepsea Bollsta available from June, plus Deepsea Mira available from later in the year. This is unlike them in recent years not to have a contract announced so close to availability. This, combined with very high demand for such deep-water rigs, again appears very hush, hush.
WDS will clearly farm-in and drill. Is simply a question of when. Well, that and how many billions of barrels does the PEL 87 system hold and how many wells will be included in the initial drilling campaign?
PCL Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
(20min delay)
