Thursday, 1 March 2018
The Oil Ministry is reportedly planning to end its five-year contract for the Höegh Gallant FSRU in mid-2018, EGAS sources tell Al Borsa on Wednesday.
The move, which comes on the back of Egypt’s plan to begin exporting gas by 2019, would end the contract one year ahead of schedule, presumably with the payment of a penalty.
Oil Minister Tarek El Molla had previously said Egypt would hold on to its remaining FSRU, which could remain commissioned to accommodate LNG imports by the private sector or in case there is a shift towards supplying more power plants with natural gas instead of diesel or heavy fuel oil.
Jan. 21, 2016
Summary
- Today, ENI announced that it has terminated the Ocean Rig Olympia due to "a dramatic fall" in the price of oil.
- Assuming an 85% termination fee, and based on 160 days remaining, ORIG should be entitled to receive a lump sum of approximately $90 million.
- ORIG is going to struggle in 2016, but should weather the storm. I believe the stock is oversold, however, as the risks are high as today's news shows.
This article is an update of my previous article on Ocean Rig UDW (NASDAQ:ORIG) published on Dec. 8, 2015. ORIG is a fairly new offshore drilling company that provides oilfield services for offshore oil and gas exploration, development and production drilling. The company is based in Nicosia, Cyprus. Ocean Rig was a subsidiary of DryShips, Inc. (NASDAQ:DRYS).
