Argentina escalates legal push against Falklands oil exploration firms
The government announced on Tuesday that Argentina would file new legal 'complaints' against companies searching for oil near Falkland Island. This will intensify Buenos Aires’ campaign against businesses in the British oversea territory. This move is part a larger push by the government of President Javier Milei, who is also preparing legislation to tighten sanctions on companies operating in Falklands. Analysts say that this could lead to greater tensions between Argentina and Britain if Buenos Aires focuses on other sectors of the Falklands' economy.
The financial week in five charts - Houthis and gilts, wildfires and more
Open Interest (ROI), every Friday, distills the past five days' financial activity into a series of charts that highlight the most important trends, surprises, and missed moves. 1. ALERT RED! RON BOUSSO is a columnist for ROI Energy. After the war broke out on February 28, the 'Strait of Hormuz' was largely closed. The Saudi Arabian export hub of Yanbu, located on the west coast, relies on the Bab 'el-Mandeb Strait. This became the primary outlet of the kingdom for crude 'exports'. What initially seemed to be a workaround that worked has now been turned into a target by the Iran-backed Houthi militay who have declared a blocking of Saudi vessels trying to cross the strait.
Britain eliminates the requirement for planning consultation to accelerate major infrastructure projects
The British government announced on Thursday that it will remove the mandatory requirement of a 'pre-application consultation' for major infrastructure projects by the end of this month. This planning reform, according to the government, would cut a 'approval timeframe down by up to 12 months. The Labour government of Prime Minister Keir Starmer has placed planning reform at the heart of its plan to boost economic development. It claims that lengthy approval processes have caused investment to slow down and critical infrastructure projects delayed.
Fuel retailers in the Middle East are not taking advantage of the crisis, says UK regulator
The UK's competition regulator found no evidence that retailers had altered their fuel pricing strategy to take advantage the Middle East Crisis. However, the regulator warned that the weak competition in this sector was still a problem. In a press release, the Competition and Markets Authority said that its analysis showed that high wholesale prices continued 'to explain most of increase in pump price in March and into April. Following a spike in oil prices tied to the U.S./Israeli war in Iran that began in February, the British government is under pressure to assist households with?fuel prices and?an increase in other costs.
Sources say that the British Foreign Minister plans to visit China early in June.
Three sources have confirmed that British Foreign Minister Yvette Cooper will visit China early in June. London is looking to capitalize on the relatively good relations with Beijing, before there's a new setback due to a?new Chinese embassy? in London. One source said that Cooper's trip to China on June 2-3 will include meetings in Shenzhen, the tech hub in the south of the country, with businesspeople and a visit to Beijing to meet with Wang Yi. Two British officials stated that briefings were being prepared based on the assumption that even if a leadership race was held to remove British Prime Minister Keir starmer…
Sources say that the British Foreign Minister plans to visit China early in June.
Three sources familiar with plans say that British Foreign Minister Yvette 'Cooper will visit China early in June. London is looking to capitalize on the relatively 'cordial' ties it has with Beijing, before any new setbacks over a a 'new Chinese embassy to the UK capital. One source said that Cooper's trip on June 2-3 will see her travel to Beijing to speak with Wang Yi, the Chinese counterpart, before going to Shenzhen, the tech hub in the south, to meet businesspeople. Two British officials have said that briefings will be prepared based on the assumption that even if a leadership race were to take place in order to remove British Prime Minister Keir starmer…
Reeves, UK's Reeves, says borrowing and higher taxes are not good for additional defence spending
Rachel Reeves, the British finance minister, said that she did not support tax increases or increased borrowing in order to pay for an increase in defence spending. This has now become a priority after Russia's invasion of Ukraine at full scale and Iran war. Reeves said to reporters at the International Monetary Fund's and World Bank's spring meeting in Washington, "Obviously we are looking into a variety of options. She said that the British government's spending on interest rates is too high in terms of borrowing. Keir starmer, the British Prime Minister, has pledged the biggest sustained increase in defence spending since the Cold War.
The UK has reopened its domestic CO2 plant in response to the threat of war with Iran.
The UK announced on Thursday that it would spend 100 million pounds ($133.5?million?) to restart the production of biogenic CO2 at a closed plant in Teesside, for a period of three months. This is to avoid any shortages resulting from the Iran War. Ensus produced CO2 as a bioethanol by-product at its Wilton International plant until September. Then, after tariffs on bioethanol were reduced in an agreement with U.S. president Donald Trump, the plant could not compete with cheaper imports from the U.S. Gas is used in many different ways, from cooling nuclear reactors to operating theatres at hospitals.
Knight Vinke's founder says that his fund cannot invest in the uncertain US under Trump
Eric Knight stated that his hedge fund could not invest in the United States with President Donald Trump as the risks were too high. However, profits can be made in Europe because there are clearer rules and policies regarding green energy projects. Knight Vinke Asset Management, based in Monaco, sold "the last" of its U.S. investments in August. This was revealed in an interview with its CEO and founder Knight. A letter sent to investors by the fund showed that it would return 17.9% by 2025. Knight founded the fund in 2003, and he made his name by urging Shell to merge into one company in 2005.
Knight Vinke's founder says that his fund cannot invest in the uncertain US under Trump
Eric Knight, a hedge fund manager, said that his fund could not invest in the United States with President Donald Trump as the risks were too high. However profits can be made by investing in Europe where the rules and policies regarding green energy projects is more predictable. Knight Vinke Asset Management, based in Monaco, sold its 'last' U.S. assets in August. This was revealed in an interview with its CEO and founder Knight. A letter sent to investors by the fund showed that it would return 17.9% by 2025. Knight founded the fund in 2003, and he made his name by urging Shell to merge into one company in 2005.
Sources say that during Starmer's visit, Britain and China will revive the 'Golden Era business dialogue'
Three sources familiar with this initiative have confirmed that the British and Chinese governments will be aiming to revive "golden age" business dialogues when Keir Starmer, Prime Minister of Britain, visits Beijing next Monday. Top executives from both countries are 'invited' to participate. AstraZeneca is among the British companies that will join a restructured "UK-China Chief Executive Council" according to sources who are both Chinese as well as British. The original idea for the council came from then-Prime Minster Theresa May in 2018 and then-Premier Li Keqiang, during a period that both sides called "a golden age" of relations.
Britain Imposes Sanctions on Russia's Energy Sector
Britain imposed sanctions on Thursday on more Russian oil companies and Canadian-Pakistani billionaire Murtaza Lakhani as part of efforts to ramp up pressure on Moscow over the war in Ukraine.The government targeted 24 individuals and entities, including what it described as Russia's largest remaining unsanctioned oil companies: Tatneft, Russneft, NNK-Oil and Rusneftegaz.The latest measures aim to make it harder for Russia to trade its oil globally. In October, Britain and the U.S. sanctioned Russia's two biggest oil companies, Lukoil and Rosneft.Earlier on Thursday…
The UK has exempted Egypt's Zohr Gas Field from Russian sanctions
Britain added Egypt's Zohr Gas Field, where Russian oil major Rosneft has a 30% stake - and London-based BP a 10% one – to a list of projects that are exempted from its Russia sanctions. In October, Britain and the United States sanctioned Russia's two largest oil companies, Rosneft, and Lukoil for their involvement in funding Moscow's invasion in Ukraine. The amended?general license, issued on Wednesday, allows for payments and business activities?linked to Zohr up until October 2027. BP owns a stake in Zohr along with?majority shareholder Eni, Rosneft, and other partners. The license did not give a reason for the exclusion.
The UK has exempted Egypt's Zohr Gas Field from Russian sanctions
The UK added Egypt's Zohr Gas Field, where?Russian oil giant Rosneft has a 30% stake? and London-based BP has a 10%?holding?, to a list that exempts Russia sanctions. In October, Britain and the United States sanctioned Rosneft, one of Russia's largest oil producers, for their role in financing Moscow's invasion in Ukraine. The amended general licence, dated?on Wednesday?, allows now payments and business activities linked to Zohr?until?October 2027. BP, Rosneft, Eni and other partners hold a?stake? in Zohr alongside majority stakeholder Eni. The license did not give a reason for the exclusion. The British government didn't immediately respond to an inquiry for comment.
Drax plans on converting coal-era power stations into data centres by 2027
Drax Group announced on Thursday that it could convert a part of its power plant in Yorkshire, Northern England, into an data centre by 2027. The land, cooling systems, and transformers were previously used for coal generation. Europe's old coal- and gas-fired plants are in need of a new lease on life. Tech giants like Microsoft and Amazon want to convert them into data centers, using the existing power and water supply, to meet the rise in AI-driven demand for energy. Drax is preparing an application for a 100-megawatt potential data centre on the site, with ambitions of expanding capacity beyond 1 gigawatt by 2031.
UK consumers face higher energy bills after regulator approves $37 billion grid upgrade
The British Energy Regulator has approved an investment of 28 billion pounds ($37.33 billion), over the next five-years, to ensure that the energy system is reliable and safe in the future. This is part of a plan to upgrade the energy system which will increase consumer bills by 108 pounds per year. The investment exceeds the provisional estimate of 24 billion pounds made by regulator Ofgem back in July, despite the British Government's promise to lower energy prices. Jonathan Brearley, Ofgem's CEO, said that the investment would support the transition to alternative energy sources and help support new industrial clients to drive economic growth.
UK withdraws financial support for TotalEnergies Mozambique Liquefied Natural Gas Project
On Monday, the British government announced that it had decided to stop UK Export Finance from supporting TotalEnergies' Mozambique Liquefied Natural Gas Project. In 2020, the UKEF had committed to providing financial support for the $20 billion project. The project was supposed to turn Africa into a major LNG exporter for Europe and Asia. However, it was stopped in 2021 because of an islamist insurgency. In a press release, British business minister Peter Kyle stated that "my officials have evaluated risks surrounding the project and it is His Majesty’s Government's view that these risks have grown since 2020".
UK court rejects challenge to the issuing of oil exploration licenses
The High Court of London ruled that Britain's decision on Friday to grant more than 20 oil and gas exploration licenses was legal. This ruling dismissed a challenge from campaigners who claimed the government had failed to take into account the effects on climate change. Oceana UK, a marine conservation organization in the UK, brought a case against 28 licences issued by the previous British government on May 20, 2024. It also claimed that the licenses did not assess the risks to marine life. The British energy department, which had not defended similar cases following a Supreme Court ruling in 2024, opposed the case. It said that the licences were only for early exploration.
Britian Reforms Energy Scheme to Prioritize Renewables Projects
The British government on Tuesday made changes to its main scheme for promoting clean energy projects, extending contract lengths and changing how auction budgets are set in a bid to accelerate the roll-out of renewable energy.Offshore wind is at the heart of Britain's plans to decarbonise its electricity sector by 2030. It aims to boost capacity to 43-50 gigawatts by the end of the decade, from around 15 GW now, although a government report in November said it would be a challenge to reach that goal.Britain's Contracts for Difference scheme is its main mechanism for securing clean energy projects and it holds annual auctions for subsidies…
Britain accelerates clean energy projects through a new energy reform scheme
The British government made changes on Tuesday to its main scheme to promote clean energy projects. Contract lengths were extended and auction budgets were changed in an effort to speed up the rollout of renewable energy. Britain's plans for decarbonising its electricity sector are centered around offshore wind. The aim is to increase capacity from 15 GW to 43-50 Gigawatts (GW) by the end decade. A government report published in November warned that it would be difficult to achieve this goal. The Contracts for Different scheme in Britain is the main way to secure clean energy projects. It holds annual auctions, which offer a minimum guaranteed price for power produced.