WTI (Sept) $88.54 -$2.12, Brent (Oct) $94.12 -$2.66, Diff -$5.58 -54c, USNG (Sept) $8.12 -15c, UKNG (Sept) 385.19p +20.19p, TTF (Sept) €203.5 +€9.0.

Oil price

Another bad day, the usual worries about recession and inflation were made worse by the Bank of England going to 13+% inflation and a recession starting in Q4 and lasting for 5 quarters. Also the Iran talks continued and Sleepy Joe is more concerned about the mid-term’s than he is about massive enriching of uranium by the organisation who hate the USA more than anyone else.

Ironically US gasoline prices are actually coming down faster than crude oil, if anyone is gouging then it’s the customer…Today is Non Farm Payroll day where a guide of 250/- jobs created is the whisper…

Having said all this we know that the market is still tight and it is worth thinking about what would the price be if recession was maybe shorter than expected or if China started to pick up more quickly than envisaged, we know that there isn’t much capacity in Opec to help.

Lamprell

Lamprell confirms that the USD 45 million UAE Export Credit Agency backed revolving trade loan facility has now been repaid. The facility was agreed in October 2021 to assist with the working capital requirements of the two IMI newbuild jackup rigs which are currently under construction at the Group’s Hamriyah yard. The repayment follows the USD 145 million Bridge Loan Agreement between Lamprell and two lenders, Maverick Investment Holding Ltd (a company under the control of a member of the AlSayed family) and AlGihaz Holding Closed Joint-Stock Company, which was entered into on 21 July 2022.

In a world of change some things don’t alter and one of them is trying to fathom out quite where Lamprell’s finances are at any one stage. I mean that normally one could congratulate them on paying off the debt raised to fund building the two jackups but it is by robbing Peter to pay Paul that the debt has been paid and the ultimate owner has clearly got them by the short and curlies.

Lekoil

LEKOIL, the Cayman Islands litigation asset company with an investment in oil & gas assets in Nigeria, wishes to announce a development in the litigation commenced by Mr Akinyanmi in the Superior Court of New Jersey. He alleged (amongst other things) breach of contract in the termination of his employment contract in an attempt to set off such sums against the amounts owing under the CEO Loan.

The Company announced on 14 June 2022 that it had successfully challenged Mr. Akinyanmi’s choice of the New Jersey state court forum as improper to hear the claim and the claim would be stayed until further notice pending arbitration. Mr Akinyanmi has now appealed the decision of the court.  The Company will fight this appeal.

Renewed interest recently in Lekoil but I’m really not sure why, sure there have been courtroom dramas, resignations of senior board figures, investments in debt and attempts to fund a drilling programme off balance sheet but hey, that’s all in a day’s work at the company. Nope, nothing changes here right now and whilst courts in the Cayman Islands, New Jersey and probably ultimately Nigeria will be involved in the future of Lekoil, the litigation asset company as it is described above will be just that…

KeyFacts Energy Industry Directory: Malcy's Blog