FT : Scientists find first diamond-bearing kimberlite in Antarctica

Scientists find first diamond-bearing kimberlite in Antarctica

In a frustrating discovery, scientists have found a site containing the rocks that often produce diamonds – in Antarctica. The problem is that the frozen continent is protected from mining for decades under an international treaty. Even if it were not, the prospect of drilling through layers of ice in a harsh climate is likely to deter many would-be miners.

Still, the discovery is scientifically significant, said Dr Greg Yaxley, an Australian geologist and co-author of a paper reporting the find in the Nature Communications science journal on Tuesday.

“It’s the first kimberlite occurrence reported in Antarctica,” he said, referring to the carrot-shaped volcanic rock formations that have been found on other continents and have been a significant source of diamonds in places such as South Africa.

“It’s really not very surprising there are kimberlites there. We were lucky enough to be the first ones to find one.”

The rocks analysed by Dr Yaxley and colleagues from Australia and Europe came from the southeastern slopes of Mount Meredith, part of the Prince Charles mountain range in East Antarctica.

Diamond miners such as De Beers have not been in touch so far, Dr Yaxley said. He added that the chance of the Antarctic kimberlite containing economically viable amounts of diamonds is likely to be very low.

Although kimberlite ore is associated with diamonds, very few such formations have viable reserves. Of 7,000 kimberlites discovered in the past 140 years, only 60 were economic to mine and only seven of those had substantial reserves, analysts at Citi said recently. However, the Antarctic discovery could spur some commercial interest eventually, experts say.

“You could see some mining companies might argue, ‘We can do this; we don’t have to waste this resource’,” said Dr Robert Larter of the British Antarctic Survey.

However, the physical obstacles are immense in a continent that is 99 per cent covered in ice, some of which is 3-4km thick, he said.

Article 7 of the 1991 Protocol on Environmental Protection to the Antarctic Treaty, which came into force in 1998, says any activity relating to mineral resources, other than scientific research, is prohibited. “Although there is provision for the operation of the protocol to be reviewed 50 years after it came into force, the default assumption is that it will continue,” Dr Larter said.

Very few big new diamond mines have been developed in recent years, leading to expectations of a squeeze in supply by the end of the decade. At present levels of output, existing reserves will sustain global diamond production for 18 years, according to research by Bain & Co this year. About 70 per cent of the world’s 2.3bn carats of diamond reserves are in Russia and Africa.

WSJ : BP to Write Off $1 Billion on Failed Well


BP to Write Off $1 Billion on Failed Well

Energy Major Also Announces 'Significant' Discovery in Gulf of Mexico

LONDON— BP BP.LN +0.41% PLC said Wednesday it would write off more than $1 billion in costs related to an unsuccessful Brazilian well, but also said it made a large oil discovery in the deep water Gulf of Mexico.

BP said the Pitanga exploration well on Block BM-CAOL-13 in the Camamu-Almada basin, offshore Brazil, found no commercial quantities of oil or gas. The company said it would therefore write off $1.08 billion in costs, of which $850 million relates to the value of the block and the rest covers the costs of drilling.

BP separately said it has made a "significant" oil discovery at its Gila prospect, which it co-owns with ConocoPhillips, COP -1.05% in U.S. waters in the Gulf of Mexico. Appraisal drilling will be required to determine the size and potential commercial value of the discovery, BP said.

The Gila discovery was made by an exploration well on Keathley Canyon Block 93, about 300 miles southwest of New Orleans, in 4,900 feet of water. BP owns a majority interest in the Gila discovery.

BP said 2013 has been its most successful year for new-field exploration for almost a decade, with 15 completed wildcat exploration wells. These have resulted in seven potentially commercial discoveries, giving a new-field-exploration success rate of more than 40%, the company said. A wildcat well is an exploratory oil well drilled in land not known to be an oil field.

"The successes and opportunities now being delivered through our increased exploration activity confirm our confidence in our ability to sustain BP's resource base," said Lamar McKay, chief executive of BP's upstream unit. "This success is being mirrored in improved operating performance delivery across BP's upstream business."

>>> Germany Debt Agency: Sees 2014 total Bill/Bond issuance at €205B vs. €247B y

Germany Debt Agency: Sees 2014 total Bill/Bond issuance at €205B vs. €247B y/y
- Plans to issue €44B in money market issuance in 2014, sees capital market issuance at €161B;
- Plans €10-14B in inflation linked bonds; To issue linders monthly with the exception of Aug and Dec

Quarterly Issuance
- To issue €43B in capital market instruments in Q1
- To issue €41B in capital market instruments in Q2

(BFW) OMV Buys Stakes in 4 of Ophir’s Gabon Offshore Blocks

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OMV Buys Stakes in 4 of Ophir’s Gabon Offshore Blocks 2013-12-18 07:13:21.292 GMT

By Benjamin Dow Dec. 18 (Bloomberg) -- OMV buys 30% non-operated stakes in Manga, Gnondo blocks; 10% stakes in Mbeli, Ntsina blocks. * OMV to pay past costs; to fund wells at Padouck Deep, Affanga Deep, Okala; to fund 3D seismic surveys planned for blocks

Link to statement:{NSN MXZQ4J3HBS3K <go>} Link to Company News:{OPHR LN <Equity> CN <GO>} Link to Company News:{OMV AV <Equity> CN <GO>} Link to Company News:{OINL IN <Equity> CN <GO>} Link to Company News:{BLVN LN <Equity> CN <GO>} Link to Company News:{MAU FP <Equity> CN <GO>}

For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story: Benjamin Dow at +7-495-771-7735 or bdow2@bloomberg.net

(BFW) Tullow Oil Says Ivory Coast Well Determined Down of Paon

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Tullow Oil Says Ivory Coast Well Determined Down of Paon 2013-12-18 07:12:23.332 GMT

By Chris Malpass Dec. 18 (Bloomberg) -- Tullow says Paon-2A oil well in CI-103 license offshore of Ivory Coast encountered water below the oil accumulation found at Paon-1X well. * Says total hydrocarbon column of Autruche field inferred to be up to 700 meteres * Says Paon-2A well identified likely depth of oil water contact * Tullow reviewing resource range, future monetization options * Well didn’t encounter oil at this location, reducing upside volume potential associated with Autruche field * NOTE: Tullow has 15% plus 15% carried interest in CI-103 license, Anandarko has 55%, Petroci has 5% plus 10% carried interest

Link to Statement:{NSN MXZQ4K3HBS3K <GO>} Link to Company News:{TLW LN <Equity> CN <GO>}

For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story: Chris Malpass at +49-30-70010-6234 or cmalpass@bloomberg.net

>>>> What to look at today

US Market closed slightly lower, VIX continue to trade higher @ 16.25 +1.4%, volume are still Light ahead of the FED with 656mil shares...Late evening interview with Fed watcher Hilsenrath on CNBC saw the "Fed whisperer" side with PIMCO's el-Erian, who forecasted a 60% chance of the taper announcement at today's meeting, all despite more evidence of underwhelming inflation seen in Tuesday's CPI data. Note the Fed will also update its staff projections for the economy, which many expect to be lifted amid improving consumption/manufacturing/employment figures...China saw continued growth in the property prices, as November's 9.9% y/y rise for all-70 cities was a record high. M/M prices rose again by 0.5%, down slightly from 0.6%.... "despite the uptick, the economy does not appear to be gaining any underlying momentum, as manufacturing, exports and consumer expectations all continue to struggle." 1-week Shibor rates are at their highest levels since June, with PBoC remaining on the sidelines recently in terms of its open market operations...Shanghai -0.11%...Rising fuel costs once again hampered Japan's terms of trade, sending merchandise balance to a multi-year deficit. Exports rose an impressive 18.4% -above 18.0% estimate - but import growth was even faster yet again at 21.1%.The value of crude oil imports rose 10.5%, as Japan continues to struggle with the shutdown of nuclear reactors...JPY continue to Help Nikkei +2.1%
Ukraine is strong after News of Russian Sovereign Fund to invest $15bil in the country

Euro 1.3775 S&P fut +0.265 European Fut +0.27%


>>> Keep an eye on :
- AF FP : Air France, KLM Integration Accelerated, De Telegraaf Reports
- AZA IM : Etihad May Make Formal Offer for Alitalia Stake Monday: Stampa
- GBLB BB : GBL’s Ergon Capital Sells Steroid-Maker Zellbios, Tijd Reports
- HOF LN : Galeries Lafayette in Advanced Talks to Buy House of Fraser: FT
- IBE SM : Spain to Raise Electricity Tolls 2% in January, Cinco Dias Says
- MONC IM : Moncler Assigns 76.8m Shrs to 10,234 Applicants in Global Offer
- PGS NO : PGS Sees 2014 Ebitda of $900m to $950m; Cuts 2013 Guidance
- TEC FP : Technip May Drop Below EU60 After Margin Warning: Credit Suisse
- TEC FP : Technip Wins $400m Consultancy Services Contract in Kuwait
- TEF SM : Telefonica’s Abellan Says Mexico Ready for Consolidation
- TUI GY : TUI FY13 Profit Beats Estimates, Sees FY14 Revenue Rising 2%-4%
- VWS DC : Vestas Wins Turbine Order for 51 MW in France
- WPL AU : Woodside May Be Asked to Pay More for Leviathan, Macquarie Says

>>> Brokers Upgrades & Downgrades

>>> Up
*ELECTROLUX RAISED TO BUY VS NEUTRAL AT UBS
*LUXOTTICA RAISED TO OVERWEIGHT VS NEUTRAL AT HSBC
*MONDI RAISED TO BUY VS NEUTRAL AT BOFAML
*SIPEF RAISED TO BUY FROM HOLD AT ING; PT RAISED TO EU63


>>> Down
*ASOS CUT TO NEUTRAL VS BUY AT UBS
*DS SMITH CUT TO NEUTRAL VS BUY AT BOFAML
*FORTUM CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*GROUPE STERIA CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*MARKS & SPENCER CUT TO NEUTRAL VS BUY AT UBS
*RATIO OIL EXPLORATION CUT TO EQUALWEIGHT AT BARCLAYS
*RBS CUT TO UNDERWEIGHT AT HSBC
*SEB CUT TO NEUTRAL VS BUY AT UBS
*STORA ENSO CUT TO NEUTRAL VS BUY AT BOFAML
*UPM CUT TO UNDERPERFORM VS NEUTRAL AT BOFAML

>>> PT Changes


>>> Initiation
*AFRICA OIL RATED NEW EQUALWEIGHT AT BARCLAYS, PT SEK75
*MERLIN ENTERTAINMENTS RATED NEW OVERWEIGHT AT BARCLAYS, PT 390P
*NUMERICABLE RATED NEW NEUTRAL AT HSBC, PT EU30
*NUMERICABLE RATED NEW HOLD AT JEFFERIES

>>> Country Sector Stock Call
*DEBENHAMS REMOVED FROM UBS’S MOST PREFERRED LIST
*ELECTROLUX ADDED TO UBS’S EUROPEAN KEY CALL LIST
*HOME RETAIL ADDED TO UBS’S MOST PREFERRED LIST
*IAG ADDED TO UBS’S EUROPEAN KEY CALL LIST

Asia update

Asian Market Update: China property prices accelerate again; Japan merchandise trade deficit grows

***Observations/Insights*** - All eyes on the Fed decision in the US on Wednesday afternoon; Late evening interview with Fed watcher Hilsenrath on CNBC saw the "Fed whisperer" side with PIMCO's el-Erian, who forecasted a 60% chance of the taper announcement at today's meeting, all despite more evidence of underwhelming inflation seen in Tuesday's CPI data. Note the Fed will also update its staff projections for the economy, which many expect to be lifted amid improving consumption/manufacturing/employment figures. - China saw continued growth in the property prices, as November's 9.9% y/y rise for all-70 cities was a record high. M/M prices rose again by 0.5%, down slightly from 0.6%. Separately, Conference Board leading index increase was a 4-month high, but resident economists said that "despite the uptick, the economy does not appear to be gaining any underlying momentum, as manufacturing, exports and consumer expectations all continue to struggle." 1-week Shibor rates are at their highest levels since June, with PBoC remaining on the sidelines recently in terms of its open market operations. - Rising fuel costs once again hampered Japan's terms of trade, sending merchandise balance to a multi-year deficit. Exports rose an impressive 18.4% - above 18.0% estimate - but import growth was even faster yet again at 21.1%. The value of crude oil imports rose 10.5%, as Japan continues to struggle with the shutdown of nuclear reactors. - Reserve Bank of Australia Gov Stevens testimony before parliamentary committee was a replay of overnight release of RBA policy meeting minutes; RBA chief again hinted that rates are already very low and there is still accommodation in the pipeline from past easing, even though the door remains open to more rate cuts if they are required. Stevens also reiterated the exchange rate remains uncomfortably high and an intervention is not out of the question, but that the RBA could not be sure whether it would be successful.

***Economic Data*** - (CN) CHINA NOV CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 1.4% (4-month high) V 0.7% PRIOR - (CN) CHINA NOV ACTUAL FOREIGN DIRECT INVESTMENT (FD) Y/Y: 2.4% V 1.1%E; YTD Y/Y: 5.5% (5-month low) V 5.8% PRIOR - (CN) CHINA NOV NEW HOME PRICES M/M: PRICES RISE IN 66 OF 70 CITIES V 65 PRIOR; Y/Y: PRICES RISE IN 69 OF 70 CITIES V 69 PRIOR - (JP) JAPAN NOV MERCHANDISE TRADE BALANCE: -¥1.29T V -¥1.35TE; ADJUSTED TRADE BALANCE: -¥1.35T V -¥1.20TE (multi-year high deficit) - (AU) AUSTRALIA NOV WESTPAC LEADING INDEX M/M: -0.1% V +0.1% PRIOR - (AU) AUSTRALIA NOV SKILLED VACANCIES M/M: 0.4% V 0.5% PRIOR - (NZ) NEW ZEALAND DEC ANZ BUSINESS CONFIDENCE: 64.1 V 60.5 PRIOR (multi-year high); ANZ ACTIVITY OUTLOOK:53.5 V 47.1 PRIOR - (NZ) NEW ZEALAND Q3 CURRENT ACCOUNT BALANCE (NZ$): -4.78B V -4.60BE (biggest deficit in 5 years); CURRENT ACCOUNT GDP RATIO YTD: -4.1% V -4.1%E

***Fixed Income/Commodities/Currencies*** - (CN) Daily Shibor fixings: O/N: 3.5880% v 3.4700% prior (3rd consecutive rise); 1-week: 5.9020% v 4.4590% prior (3rd consecutive rise, multi-weeks high, highest since June 27th) - JGB: (JP) BOJ to increase FY14/15 30-yr JGB issuances by ¥1T, to lower 2-yr issuances by approx ¥2.4T - financial press - GLD: SPDR Gold Trust ETF daily holdings fall 2.1 tonnes to 816.8 tonnes (lowest since Jan 2009) - (US) API PETROLEUM INVENTORIES: CRUDE: -2.5M v -2.5Me (3rd straight draw)

- Dollar majors largely rangebound ahead of the Fed decision - EUR/USD in 15pip range around 1.3770, USD/CHF in 10pip range below 0.8850 after sharp swissie gains overnight, AUD/USD and NZD/USD reversing early session gains to trade below $0.89 and $0.8250, down 30 and 40 pips from the highs respectively. USD/JPY is up 40pips from the lows around ¥103 handle. USD/INR fell toward 61.70 after a surprise rate hold from RBI.

***Speakers/Political/In the Papers*** - (CN) China Defence Ministry: Confirms near miss with US ship in South China Sea on Dec 5th; Says incident was handled appropriately - (CN) China MOFCOM: sees 2013 retail sales above 13% y/y; Optimistic on Q1 2014 consumption - (CN) Other nations won't tolerate Japan as military power - People's Daily - (CN) Chongqing said to achieve progress in applying free trade zone trial; Application of FTZ enters approval stage by NDRC - Chinese press - (JP) According to a Nikkei survey, expectations for further easing from the BOJ has reached near full consensus - update - (JP) BOJ offers to buy ¥400B in 5-10yr JGB and ¥200B in JGB with maturity over 10-yr - (AU) RBA Gov Stevens: Will intervene in AUD if appropriate, AUD remains uncomfortably high; have not been doing anything unusual in fx markets recently; Inflation consistent with target - (AU) RBA's Kent: Australia Mid-Year Economic and Fiscal Outlook (MYEFO) growth forecasts don't differ much from RBA forecasts in Nov - (AU) PIMCO's Bowe: Real business investment ex-mining in Australia is near zero; expect sub-trend growth in 2014 - (KR) South Korea Fin Min Hyun: It is time to normalize expansionary policy - financial press - (KR) South Korea Dep Fin Min Eun: South Korea may convene meeting tomorrow on FOMC decision; Closely monitoring financial market ahead of FOMC

- (EU) EU negotiators said to have reached agreement on deposit guarantees - financial press - (US) WSJ's Hilsenrath: 60% chance of a taper as forecasted by PIMCO is in the right ballpark; Likely to do something tomorrow, economy is in a better place than in Sept - CNBC

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 +1.4%, S&P/ASX -0.1%, Kospi +0.5%, Shanghai Composite flat, Hang Seng +0.6%, Mar S&P500 +0.2% at 1,776, Feb gold +0.2% at $1,233, Jan crude oil -0.2% at $97.41/brl

US markets: - KRFT: Board authorized $3B stock repurchase program (9.6% of market cap) - HEI: Reports Q4 $0.44 v $0.41e, R$287.4M v $273Me; +5.7% afterhours - IMAX: China's Wanda exercises option for 80 IMAX screens in China; To have 120 IMAX screens in China by 2022 - financial press; +0.1% afterhours - C: DOJ reportedly to file civil fraud charges against Citigroup and Merrill Lynch over sale of flawed mortgage securities ahead of the financial crisis in 2008; +0.1% afterhours - STLD: Guides Q4 EPS $0.21-0.25 v $0.26e; -0.1% afterhours - PAY: Reports Q4 $0.27 v $0.26e, R$432M v $421Me; -4.0% afterhours - JBL: Reports Q1 $0.51 v $0.54e, R$4.61B v $4.61Be; Divest Aftermarket Services for $725M; Board announces $200M share buyback (5% of market cap); -13.9% afterhours - ONTX: Announces disappointing phase III results of interim analysis of Metastatic Pancreatic Cancer Study; to discontinue study; -20.0% afterhours

Notable movers by sector: - Consumer discretionary: Beijing Jingxi Tourism Development 000802.CN +10.0% (to acquire film business); Yunnan Green-Land Biological Technology 002200.CN +2.8% (awarded contract); Bega Cheese BGA.AU +2.8% (to close takeover offer for Warrnambool) - Industrials: Mesnac 002073.CN +1.2% (awarded order); Honda Motor 7267.JP +2.4% (Jet Engine receives certification); Elders ELD.AU +4.8% (prelim findings from investigator) - Materials: Jiangsu Zhongtai Bridge Steel Structure 002659.CN +0.8% (awarded contract) - Financials: Chongqing Yukaifa 000514.CN +1.5%, Chongqing Gangjiu 600279.CN +2.4% (Chongqing to achieve progress in FTZ trial) - Technology: Shenzhen Changfang Light Emitting Diode Lighting 300301.CN +10.0%, Guangzhou Hongli Opto-Electronic 300219.CN +6.9%, Foshan Electrical and Lighting 000541.CN +2.7% (US to phase-out incandescent bulbs); Guangzhou Haige Communications Group 002465.CN +3.3% (acquires communication tech firm); Shenzhen MTC 002429.CN +1.6% (launches cloud TV); Nintendo 7974.JP +2.2% (testing tablets, smartphones)

US After Hours

After Hours Summary: HEI +5.5%, JBL -13.3%, PAY -5.0% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: HEI +5.5%

Companies trading higher in after hours in reaction to news: SYNM +50.4% (to be acquired by Renewable Energy Group (REGI), Syntroleum to receive 3.796 mln shares of REGI cmmon stock), WPCS +44.4% (announced acquisition of BTX Trader LLC, an early stage tech company engaged in developing a proprietary trading platform for bitcoins), ADHD +8.9% (co's metadoxine for the treatment of Fragile X Syndrome granted FDA orphan designation status), UUUU +5.3% (entered into a Strategic Relationship Agreement with Korea Electric Power Corporation (KEP)), DHX +5.0% (announced new $50 mln stock repurchase program), OMER +4.3% (Co's antibody inhibitor for the prevention of complement-mediated thrombotic microangiopathy receives FDA orphan designation status), ADEP +4.2% (announced partnership agreement with Harpak-ULMA Packaging, naming Harpak-ULMA a primary and secondary food packaging partner)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: JBL -13.3%, PAY -5.0%

Companies trading lower in after hours in reaction to news: ONTX -17.9% (announced discontinuation of the Phase 3 ONTRAC study of intravenous rigosertib plus gemcitabine in front-line metastatic pancreatic cancer), JBL -13.3% (to divest aftermarket services business for $725 mln, co also reported earnings), OPXA -12.2% (announced proposed public offering of common stock; all of the shares in the offering are to be sold by Opexa, no amount disclosed), QCOR -4.5% (competitor Retrophin (RTRX) unveiled new clinical development candidate RE-034, an ACTH analog; to initiate clinical development in multiple indications), HALO -1.1% (announced Helen Torley will assume the role of President and CEO; Gregory Frost departing co)