The instability in the Middle east, IMHO will cause China to look closely at where their oil supplies are coming from. If the Straights of Hormuz were to be closed then China's supply would be cut. This in my opinion might cause the Chinese leadership to look around to see where they could source alternative supplies from an area where limitations of supply would not be influenced by geographic factors. I think that this might cause COONOC to have a closer look at PEL87. They will meet the criteria that PCL are looking for ie. a National oil Company with deep pockets and a desperate need for resources. This is especially exciting if Petrobas is eclipsed by Total in biding for Galp's 40% of Mopane. If this case eventuates then we could see a bidding war which would be very much to our advantage
PCL Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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