Ben Hur Plug Up Blog - I belief that if one wants change one have to fight for it and cannot be a bystander .If you have articles, information, thoughts you want to share just send it to me at benhurplugup@gmail.com . Please keep your articles brief, not more than 1000 words or just use bullet points. If you have pictures to go with the articles, that is even better. Towards an excellent Malaysia.
The U.S. is the world’s largest holder
of emergency crude stockpiles, but now it’s selling off reserves, while China,
the second-largest, is taking advantage of low crude oil prices to fill
storage.
And earlier this month, for the first time in history China bought crude oil from the
U.S. Strategic Petroleum Reserves (SPR), scooping up 550,000 barrels for
US$28.8 million. It’s not a massive purchase, but it is unprecedented.
So while China is stockpiling emergency
reserves at a time when crude prices are low, the U.S. appears to have come to
the view that its SPR is no longer a critical part of energy security, or a
critical element in the case of disruptions. It is, after all, expensive to
keep up this storage, and part of the reason for the U.S. sell-off is to
finance the upkeep.
The oil price crisis has thrown
everyone off balance, but only the U.S. is selling right now. This shows that
the U.S. shale boom has changed the dynamics of the U.S. energy security
policy.
Back in 1973-74, the fuel embargo , at a time of declining U.S. production, greatly affected
the U.S. Hence, in 1975, the SPR was launched to safeguard the U.S. against any
future supply disruptions. As of March 17, the SPR inventory held 693.4 millionbarrels of oil, which is below the all-time record of
727 million barrels of oil held in 2009.
Ideally, with oil prices trading below
$50 a barrel, it’s a good time to buy, as China is doing. It is not only
filling its storage tanks at these low prices, new storage capacity is also
being added, thereby increasing the SPR. Though China’s push to store crude oil
started relatively late in 2007, it has quickly ramped up its capacity.
However, unlike the U.S., which regularly reports its data, the Chinese like to
keep their SPR details a secret. Hence, most of the information available about
China’s SPR is only an estimate, and different agencies have arrived at different figures.
Japan, the third largest SPR holder at
about 324 million barrels has neither added nor sold its
stockpile aggressively in this oil crisis. It probably considers the current
levels sufficient to tide through any temporary disruption, hence, has
maintained status quo.
Though South Korea’s SPR capacity is
the fourth largest in the world, at 146 million barrels of oil, it doesn’t use its
complete capacity for SPR purposes. 92.6 million barrels is used for SPR; 26.6
million barrels of foreign oil is stored under various agreements; Korea
National Oil Corp. trades use up 5.9 million barrels, and 800,000 barrels are
for other commercial uses.
South Korea, however, has also taken
advantage of low crude oil prices and increased its allocation for SPR
purchases from Won 54.9 billion in 2015 to Won 90 billion in 2016.
Next in line is Spain, which has a
capacity of 120 million barrels. It has also maintained status quo,
holding 90 days of average domestic consumption in SPR, according to the EU
policy.
Although it is not among the top five,India also plans to quickly ramp up its SPR to
meet 90 days of net import coverage. Currently, Indian reserves hold 39.1
million barrels of oil, and the government plans to add another 91 million
barrels of capacity by 2020. Once complete, India’s SPR will be among the top
5.
An analysis of the above figures show
that barring the U.S., all other nations are either maintaining status quo or
are increasing their crude stockpiles.
Back in 2005, there was a call to increase the capacity of the U.S. SPR to 1 billion
barrels of oil, however, as the shale boom took hold, many felt that the
addition was not needed.
A U.S. Department of Energy report to
Congress titled “Long-Term Strategic Review of the U.S. Strategic Petroleum
Reserve” released in August of last year has suggested reducing the SPR from
the current levels to a range of 530-600 million barrels, which is equal to
about 60 days of supply.
The aging infrastructure of the SPR
needs an upgrade at a likely cost of $2 billion, without which the facility might not be of
any use in an emergency. Hence, Congress had passed a temporary bill in
December to sell $375 million worth of oil from the SPR. The sale
has been completed, and the major buyers are BP, which has purchased 5.4
million barrels of oil priced at $278 million, and Valero Marketing and Supply Co.,
which has purchased 1.6 million barrels priced at $83 million.
China has also purchased oil from the
SPR sale through PetroChina International, the overseas trading arm of
state-owned oil giant PetroChina, reports S&P Global Platts.
Another reason for the sale is that
back in 2007, the U.S. imported about 6 million barrels from
OPEC. But by 2015, imports from the oil cartel dipped to 2.9 million barrels.
In a recent report, the EIA said that the U.S. could become energy independent
by 2026.
"Yes, the U.S. could be completely,
I think the phrase used at one time was energy independent," said EIA
Administrator Adam Sieminski in a press conference announcing the report,
reports the Time.
The U.S. is shielded to a large extent
from any supply disruptions compared to the 1970s, hence, it is reducing its
SPR. On the other hand, the remaining top 4 SPR holders are not yet energy
independent, therefore, they are either maintaining status quo or are adding
oil to their SPRs at the current levels.
YOU MAKE UP YOUR MIND IF HE IS THE ONE OR NOT IN THE
VIDEO. HE IS A HUMAN BEING AND CANNOT EXPECT HIM TO BE PERFECT
[VIRAL NEWS] Video Clip ALLEGEDLY Of A Man Resembling A Malaysian DAP Politician Dancing With A Woman At A Nightclub Goes Viral!!!
Two new shocking clips of a man who looks like Bukit Bendera MP Zairil Khir Johari, dancing and enjoying his night with an unidentified woman who was wearing a floral dress. Can we take a moment to question why is she wearing a mid-length flowy dress in a nightclub? Fashion disaster…
The guy that was wearing a plain T-shirt was seen passionately running his hands up and down the lady’s body. While another clip focused on the woman’s back and revealing the man’s face.
The two was clearly having a fun night out as they were constantly dancing and hugging each other! Though there are videos circulating around, there’s isn’t source that can verify the location and time of this event taking place.
Is this another scandal or someone is trying to frame the DAP leader?
On the DAP leader’s side, he has already denied the allegations of his appearance in the first video, but what about this time?
He said, “It’s not me, it’s really nonsense. There are stories about me every day. It’s never ending.”
Is Seadrill About To Follow Ocean Rig Steps Or Will 'Big John' Surprise Us All Again?
Summary
Seadrill: closer to reach agreement on a
rescue plan, said major shareholder John Fredriksen. What does it really mean for common
shareholders? It is the fundamental question and the answer is complicated. SDRL continues to be an excellent tool for
trading and something is telling me that it is not about to end.
Courtesy: John Fredriksen, Photo: Elin
Høyland
Investment Thesis:
The interview yesterday by Bloomberg of John
Fredriksen was quite interesting indeed. (Translated from Norwegian by Google).
STOCKHOLM
(Bloomberg) Seadrill is closer to reach an agreement on a rescue plan,
"said the company's major shareholder John Fredriksen to Bloomberg News.
"We
clean up all the time. It is a great work. There is a lot that could have been
made differently, especially on the financial side. We are closer than we have
been for a longtime but it will still take some time before we reach a
solution, "he said.
Seadrill
wrote in his year-end report on February 28 that it will be challenging to
reach a full consensus agreement in the discussions with the banks and
potential new investors before 30 April, when one of the company's major credit
due.
John
Fredriksen has been active in the market lately. He has bought a drilling rig
and registered a new company, Northern Drilling, in order to take advantage of
depressed prices.
Northern
Drilling going according to plan "clean up after Seadrill" and
"get more capital to Seadrill," he told Bloomberg News.
On a separate news, another struggling
offshore company Ocean Rig UDW (NASDAQ:ORIG), announced
yesterday, the following:
... have
entered into a Restructuring Support Agreement (the "RSA") with
creditors representing over 72% of Ocean Rig's outstanding consolidated
indebtedness for a financial restructuring (the "Restructuring")...
... In
addition, on March 27, 2017, the JPLs (in their capacity as foreign
representatives of the Scheme Companies) commenced cases under
Chapter 15 of the U.S.Bankruptcy Code
for each of the Scheme Companies seeking, among other things, recognition of
the Provisional Liquidation Proceedings as foreign main proceedings.
After Vantage Drilling (OTCPK:VTGDF), Hercules
offshore (defunct), Paragon Offshore (OTCPK:PGNPQ), now Ocean Rig is
joining the losers' team.
Pacific Drilling (NYSE:PACD) will be the next one,
and Seadrill's (NYSE:SDRL) own
fate is still unclear. After the release of the news, ORIG tumbled nearly 70%
yesterday to an all time low at 0.23 and is still falling as I speak,
especially after the street read the following:
If the
Schemes are sanctioned, the existing shareholders of the Company
will be diluted to an insignificant amount of the
post-restructuring equity of the Company.
Seadrill is facing the same outlook, if it
cannot find an agreement with the banks/lenders and decides to file a
restructuring under Bankruptcy protection. As always, John Fredriksen is one
fundamental part here...
Seadrill has struggled with its large debts,
and is working hard to get all the lenders and the stakeholders on the same
page and agree to a practical solution in which shareholders will eventually
avoid a blood bath. No less than 42 banks are involved in the process...
What is at stake here?
On January 31, 2017, Reuters released
the following:
Seadrill is
looking to raise at least $1 billion in new capital as talks to restructure its
debt and liabilities worth $14 billion are taking longer than expected, wiping
more than a fifth off its market value...
...Tuesday's
announcement focused on the company's $8.2 billion secured debt. In addition,
Seadrill has unsecured debt of $2.3 billion and contingent liabilities of $3.5
billion, bringing its total liabilities to $14 billion.
Note: As a reminder, On October 4, 2016, Bloomberg
announced
that "Big John" may be willing to lend Seadrill between $800 Million
to $1.2 Billion.
Why April 30, 2017 is so important and what
represents the West Eminence facility?
On November 16, 2016, Seadrill Ltd., announced
the following:
[I]t has
reached an agreement with 100% of the lenders under the West
Eminence Facility and the requisite majority of lenders under all
of its other bank facilities to extend the West Eminence facility maturity date
from December 31, 2016 to April 30, 2017.
... We now
expect to conclude the restructuring by the end of April 2017. Extending the
West Eminence facility will provide us with sufficient time to conclude these
negotiations.
That's right! The West Eminence facility is
maturing in April 30, 2017, and if the company cannot get another agreement
with 100% of the lenders under the West Eminence Facility and the requisite
majority of lenders under all of its other bank facilities, SDRL will have to
come up with an agreement before April 30, 2017, and Per Wullf, CEO,
said it is not likely at the last conference call.
M. Mark Morris, CFO, said it honestly in the
4Q'16 results conference call:
Regarding
our restructuring, our objective is to find a solution that bridges us to a
recovery in the sector, achieves a sustainable capital structure, and protects
value for our stakeholders. We've been engaged in extensive discussions with
our lenders and potential new investors, including Hemen, regarding the
terms of a comprehensive restructuring. These discussions have also included
the ad hoc committee of bondholders. While the ad hoc committee is not
presently restricted, they have indicated a willingness to become restricted
again in the future.
We
currently believe that material additional amendments to the terms of the
proposed bank amendments will be necessary to raise the new capital. Feedback
from stakeholders and potential new inventors also indicates that a
comprehensive and consensual agreement will likely require conversion of our
bonds to equity. Under such circumstances, the new capital raise and
any resulting debt conversion would likely result in substantial dilution to
our shareholders and potential losses for other financial
stakeholders.
Obviously, It is taking longer than
previously expected, and perhaps the next news could be another extension of
the West Eminence facility maturity date from April 30, 2016
to June 30, 2017?
It will give enough time to find an
agreement. At least, it seems logical to me, and I do not see the banks and
lenders denying this necessary delay?
Conclusion:
The actual situation is particularly
difficult to decipher for an outsider like you or me.
On one side, we have an armada of banks and
lenders, and on the other side, we have John Fredriksen/Hemen Holdings. If we
could create mentally a giant balance and put the first group on one side, and
John Fredriksen on the other side, we could see a state of equilibrium.
The stock price is now between $1.45 to $1.55
and represents the actual status quo. But, we may be in the eye of the
hurricane moving fast?
What we need to know is the second move? And
the news is about to hit the wire any moment in my opinion. John Fredriksen
holds literally SDRL future right in his hand.
I am almost certain that he will do anything
in his power to avoid a bankruptcy that could be interpreted as a failure.
However, even if bankruptcy is not really in the card, shareholders will not
avoid a significant dilution, no matter what. The question is to figure out
what has been factored in, in the $1.45? Quite simple isn't it?
My thinking is that any move that suggest an
agreement without bankruptcy will be a boost for SDRL and conversely anything
to the opposite (bankruptcy) may push the stock into oblivion like ORIG.
I like the odds here, however, I am well
aware of the risk. Do not get involved if you are not willing to lose your bet.
In my opinion, SDRL is negotiating a small
extension again for the West Eminence, in order to finalize an arrangement out
of bankruptcy.
My thinking is that if it was no deal in the
making, SDRL would have declared bankruptcy two weeks ago and SDRL did not.
Hemen is ready to provide the cash needed, we
already know it for a long while, and the only contentious point at this time
is who gets what?
Technical analysis.
SDRL is still in a falling wedge pattern,
just my opinion. The Falling Wedge is a bullish pattern in general, which means
that we may eventually experience a positive breakout to $3+. However, first
resistance is about $1.80.
To be confirmed, a breakout must come with
high-volume. I recommend to buy at or below $1.15.
India is
becoming more and more intolerant day by day. I thought the Islamic countries
were the intolerant ones but India under BJP is giving Hinduism a very nasty name.
See below a sicko of a so called Hindu Yogi who is now Chief Minister of a BJP
lead Government of the most populous state in India Uttar Pradesh. BJP won with
a landslide victory. Do not blame him alone but the voters who put the sicko in
power. This sicko should be in a mental alyssum getting electric shocks in his
brain to try to reboot his brain dead.
‘Muslim Women Should be Taken from their Graves and
Raped’: Where is Uttar Pradesh Headed Now?
The choice of Yogi Adityanath of Bharatiya Janata
Party (BJP), as the Chief Minister of Uttar Pradesh, in the countries most
populous state (200 m population with around 40 m Muslims) has shocked most
liberal Indians as well as people from around the world. He is rabidly
anti-Muslim and has openly called for a ‘Hindu rashtra (nation)’. He has
often told people to leave India if they do not do the Surya
Namaskarand and called the promotion and marketing of Mother Teresa as
being a conspiracy to Christianize India. The New York Times has written a strong editorial
against him and questioned the direction that Narendra Modi is taking after his
strong victory in the state elections. Election pundits see a very good chance
for BJP to win the 2019 elections as well.
Adityanath, after being made the CM, has
commented that law and order will be his top priority and has vowed to “work
for all sections of the society without any discrimination”. This last comment
of the CM raises questions given his past views.
Back in the Year 2007-08
In Siddharthnagar, UP, a rally by the name of
Virat Hindu Chetna was organized by Hindu Yuva Vahini. At this rally, Yogi
Adityanath, explained the need for this organization.
Yogi Adityanath’s co-speaker in the same rally asks
for Muslim women to be taken out from graves and be raped.
The rally was full of anti-Muslim speeches. The Hindu
leaders, at that rally, openly expressed their hatred for the Muslims in
general and the Indian Muslims in particular. One of the speakers asked for
Muslim women to be taken out from graves and raped.
In his
speech, Adityanath claimed that Hindu culture and Muslim culture can never
co-exist and that a religious war is inevitable. Further, he stressed that the
Hindus need to get organized and face this challenge in the most aggressive
fashion possible. He stated that Hindu Yuva Vahini is doing the work of uniting
Hindus.
Yet another speaker promised that after the formation
of Hindu Rashtra, the voting rights of Muslims will be taken away. He stated
that Muslims of India will be treated as the 2nd class citizens.
Narendra
Modi and Amit Shah have now chosen Yogi Adityanath as the Chief Minister of
Uttar Pradesh. The decision raises many questions, as U.P has the largest
Muslim population in India and India’s calling itself secular. Modi himself was
implicated in the death of 2000 Muslims, during a three-day riot, when he was
the Chief Minister of Gujrat.
Funny Dinner card for the
president of France to Malaysia. Seeing the card is believing. The standard of
English is only 2% of the pervious in the 1970’s among the Malaysia Civil
servants. I guess there must be using Dewan Bahasa and Pustaka language translation
APP. Feel very embarrassed
No No I am not to be blamed as I speak better English than the monkeys in PutraJaya. Yes you can quote me and I am not a monkey but an Orang Utan , yes you can translate it or I can do for you and it means Jungle People.
An animal-lover in Alor Gajah, Malacca, who built a small shelter for abandoned animals is being shunned by residents in her village due to her decision to keep dogs as well. Norashikin Ahmad, who founded the purpose-built shelter next to her home in 2014, now has to travel to the mosque in the next village to pray as she is not welcome at the one right outside her house.
Some people have also boycotted her mother's nasi lemak stall, where she helps out.
Norashikin's story caught the attention of netizens earlier this month, when a video of her rescuing an injured stray dog in a drain went viral online. While many praised her actions, she also faced criticism for touching a dog with her bare hands.
According to The Star, many Muslim scholars discourage the touching of dogs, particularly wet dogs, but doing so to save a life is permissible as long as the proper purification process is subsequently adhered to. But the 24-year-old, who also has a full-time job at the Social Security Organisation, remains undeterred by the mounting challenges. She told Malaysiakini: "Many criticised me for not using gloves to touch and hold the dog. Actually I did have gloves, but the dog seemed to feel threatened when I reached out to it while wearing gloves, so I decided to take them off."
Norashikin also admitted that her relationship with her mother had previously been strained because of her actions. "Many people feel it is not appropriate me to touch food after touching dogs as it is considered unclean. At one point my mother could no longer take what the residents were saying, and told me to leave and take my dogs and cats with me. "Eventually she accepted what we were doing when she saw how we rescued a dog that was in pain, nursed it back to health and eventually gave it away for adoption. But it took time," she recalled. According to Malaysiakini, Norashikin spends about RM3,000 (S$950) on food and up to RM10,000 on medicine every month for the animals in the shelter, which has about 120 cats and 50 dogs. But despite all the difficulties, she takes strength and inspiration from the words of her late father. "He told me that we should help anyone or anything that needs to be helped. It does not matter if it is a cat, a dog or any other animal in need. If we have the ability to help it, then we should," she said. -
