Saudi Aramco taps JPMorgan, M.Stanley for IPO
Listing of Aramco could raise up to $100 billion. Oil giant Saudi Aramco has asked JPMorgan Chase & Co and Morgan Stanley to assist with its upcoming mammoth IPO and could call on another bank with access to Chinese investors, a source with direct knowledge of the matter said. The U.S. banks have joined boutique investment bank Moelis & Co in being tapped for coveted roles in what is expected to be the world's biggest intial public offering worth some $100 billion. HSBC Holdings Plc has emerged as the leading contender for a role among a list of five banks that could provide a pipeline to Chinese investors - an important part of the offering…
Morgan Stanley Focuses on Smaller, Smarter Trades
Nancy King, global head of commodities trading at Morgan Stanley, has spent the last few years remodeling what used to be one of the most profitable units on Wall Street, by downsizing and focusing on smaller, smart trades for customers instead of the big, risky bets it used to make on its own account. The shift in strategy, which has cut the size of Morgan Stanley's commodities business by roughly two thirds, was largely forced on the bank by post-financial crisis regulations that banned banks from using their own money on potentially risky speculation, and increased capital requirements.
Trump Victory Bad News for Dakota Pipeline Protestors
The surprising victory by Native American and environmental groups in September to delay the Dakota Access Pipeline may turn out to be short-lived, after Donald Trump's unexpected win in the U.S. presidential election. Trump backs measures to speed energy industry development and upgrade the country's oil and gas infrastructure. He has not commented specifically on the $3.7 billion Dakota Access line but has said he would seek to revive another controversial pipeline, the Keystone XL line. That project would pump oil from Canada through Nebraska and was rejected in 2014 by the Obama Administration.
Citigroup's Q1 Profit Plunges 27 pct
Citigroup Inc's quarterly profit plunged 27 percent as bank set aside money to cover losses on energy loans and its costs related to shrinking some businesses rose. The No.4 U.S. bank by assets said its net income fell to $3.5 billion, or $1.10 per share, in the first quarter ended March 31 from $4.8 billion, or $1.51 per share, a year earlier. Analysts on average had expected earnings of $1.03 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the results were comparable. The profit decline is the biggest among big U.S. banks that have reported first-quarter results so far. Reporting by Sweta Singh
Struggling U.S. O&G Companies Eye Rare Financing Deals
Some cash-strapped U.S. oil and gas companies are considering creating an unusual layer of debt as a way of surviving the rout in oil and gas prices, according to restructuring advisors. Chesapeake Energy Corp for example is considering the strategy to swap some of its roughly $9 billion debt. Severely distressed companies may issue so-called 1.5 lien debt, sandwiched between the first and second liens, to raise new capital. Investors with a stomach for risk would get a better yield than for the top debt, and have a stronger claim than junior creditors if the company filed for bankruptcy.
Petrobras Fuel Unit CEO Could be Out
State-controlled Brazilian oil producer Petróleo Brasileiro SA plans to replace the head of fuel distribution subsidiary BR Distribuidora SA ahead of an initial public offering plan for the unit this year, Valor Econômico newspaper said on Wednesday. According to Valor, the company commonly known as Petrobras will hire an executive recruiting firm to look for a replacement for BR Distribuidora Chief Executive Officer José Lima de Andrade Neto. The newspaper did not say how it obtained the information. Petrobras Chairman Murilo Ferreira, who on Aug 8 voted against the IPO plan for BR Distribuidora, recommended replacing Andrade Neto, Valor said.
Petrobras Chairman Dissents on Fuel Unit Sale
RIO DE JANEIRO/SAO PAULO, Aug 18 (Reuters) - Petrobras Chairman Murilo Ferreira dissented in a recent vote to sell a stake of at least 25 percent in the Brazilian state- controlled company's BR Distribuidora SA fuel distribution unit to help reduce debt, board meeting minutes showed. The 10-member board of Petróleo Brasileiro SA, as the oil producer is formally known, approved the proposal 8-2 on Aug. 8, according to minutes published late on Monday. Reuters previously reported that Petrobras was considering listing BR Distribuidora, which controls Brazil's largest gasoline, ethanol and diesel service-station network, before the end of the year.
Petrobras Seeks IPO Regulatory Nod
Petrobras looking to slash costs, sell assets; fuel unit IPO would depend on market conditions. The board of Petróleo Brasileiro SA has approved a plan to seek regulatory permission for an initial public offering of the state-controlled oil producer's fuel distribution unit, weeks after hiring the banks that will handle the deal. The decision to pursue the IPO comes as the company known as Petrobras increasingly relies on cost reductions, asset sales and decreasing capital spending as a way to keep debt sustainable in the face of a corruption scandal.
ConocoPhillips Weighs Sale of North Sea Assets in Norway
ConocoPhillips Inc is weighing sale of some of its North Sea assets in Norway which may fetch as much as $1 billion, Bloomberg reported, citing sources familiar with the matter. The largest independent producer of oil and natural gas may sell assets that are operated by others including stakes in the Aasta Hansteen, Alvheim and Grane fields, Bloomberg said, citing the sources. (http://bloom.bg/1J7KJ8g). The company is also said to have contacted potential buyers, Bloomberg reported, citing a source familiar with the matter. ConocoPhillips said it does not comment on ongoing business development or commercial activities.
Citigroup to Set Aside $100 bln to Fund Green Initiatives
Citigroup Inc said it would set aside $100 billion to fund environmental projects over the next decade, doubling the amount it had earmarked for such projects in 2007. Citigroup said it would fund projects related to renewable energy, greenhouse gas reductions and sustainable transportation. The third-largest U.S. bank said it had met its previous investment target three years ahead of schedule in 2013. In 2012, Bank of America Corp set a goal of $50 billion to provide loans and other financing for environmentally friendly energy projects over 10 years.
Petrobras Names Head of New Governance, Risk and Compliance Unit
Brazil's state-run oil company Petroleo Brasileiro SA on Tuesday named Joao Adalberto Elek Junior as its first head of governance, risk and compliance, part of efforts to ease investor concerns in the wake of a giant corruption scandal. Elek was a member of the committee that reported to the board on work by law firms hired to investigate a price-fixing, bribery and political kick-back scheme at the company. Previously Elek, who has a degree in electronic engineering, has worked as chief financial officer for the Brazilian operations of Citigroup Inc and AT&T Inc, the company is known as Petrobras said in a statement.
Storied Oil Trader Phibro Winds Down
Phibro, the storied energy trading firm run by famed oil investor Andrew Hall, is winding down in its current form, laying off some U.S. employees and pursuing a sale of some overseas operations, sources said on Tuesday. The divestment by Occidental Corp, which bought Westport, Connecticut-based Phibro from Citigroup Inc five years ago, will allow Hall to focus more squarely on his $3 billion Astenbeck hedge fund, one of the world's largest oil-focused funds. One source familiar with the matter said around a dozen U.S. employees had been informed of the job cuts earlier in the day…
Drillinginfo Taps Banks for an IPO
Drillinginfo Inc, a company that gathers and manages data used in oil and gas exploration, has selected underwriters to lead a potential initial public offering that could value the firm at more than $500 million, according to people familiar with the matter. Drillinginfo is working with banks including Morgan Stanley and Citigroup Inc on the potential offering, which could come as soon as next year, the sources said this week. They asked not be identified because the matter is not public. "Drillinginfo does not comment on rumors and speculation, and we have made no announcements to that effect," the company said in a statement.
Puerto Rico Power Authority Likely to Get Credit Reprieve
Puerto Rico's electric power authority, PREPA, is likely to get an extension of vital lines of credit in an agreement that could see lenders appoint a restructuring expert at the debt-stricken utility, a financial industry executive familiar with the situation said on Wednesday. The U.S. commonwealth's restructuring specialists and its Government Development Bank are in talks with banks to extend PREPA's loans of $671 million to March 2015, with an option to shorten the extension to the year end, said the source, who is in contact with the negotiating parties.
More Banks Join Syndicate Credit Facility to Brazil Power Sector
Another five commercial lenders agreed to join a syndicate of banks that will extend an additional 6.58 billion reais ($2.9 billion) in emergency credit to Brazilian electricity distributors as drought causes power rates to soar, the finance ministry said on Wednesday. The new banks include JPMorgan Chase & Co, Bank of America Corp, Credit Suisse Group AG, banco do Estado de Rio Grande do Sul SA, and state bank Banco do Brasilia, the ministry said in a statement. Banks originally participating in the loan syndication included Itaú Unibanco Holding SA…
Another $2.9b in Loans for Brazil Power Sector
A pool of commercial lenders has agreed to extend an additional 6.6 billion reais ($2.9 billion) in emergency credit to Brazilian electricity distributors as drought causes power rates to soar, a senior finance ministry official said on Thursday. Banks participating in the loan syndication include Itaú Unibanco Holding SA, Banco Bradesco SA, Banco Santander Brasil SA, Grupo BTG Pactual SA, Citigroup Inc and state-run lenders Banco do Brasil SA and Caixa Econômica Federal, said Paulo Caffarelli, the finance ministry's No. 2 official.
Origin Buys Karoon's Offshore Gas Interest: Update
Australian energy giant Origin Energy Ltd will buy explorer Karoon Gas Ltd's 40 percent stake in Poseidon Browse Basin assets for up to $800 million, giving it access to one of the country's biggest gas-field discoveries. The deal gives Origin, an energy explorer, generator and retailer with 4.3 million Australian customers, exposure to potentially massive liquefied natural gas sales domestically and abroad. It also frees up Karoon's balance sheet so it can advance its other oil exploration programs. Karoon shares jumped as much as 65 percent following the announcement of the sale on Monday and were trading up 41.87 percent at 00.33 GMT…
Mexico Orders Arrest of CEO in Oceanografia Fraud Probe
The Mexican Attorney General's office has ordered the arrest of the chief executive of oil services company Oceanografia, which is at the center of a fraud probe involving Citigroup Inc's local unit Banamex. Oceanografia CEO Amado Yanez is under police protection in hospital after undergoing emergency surgery on May 20, a statement from the attorney general's office said on Thursday. Yanez, who is also majority owner of Oceanografia, would be formally placed under arrest once he had left hospital, a spokesman for the attorney general's office said. It was not clear why the Oceanografia boss had surgery.
Citigroup Houston Head of Oil Trading Leaves for Noble
Citigroup Inc's director of oil trading in Houston has left to join commodities trader Noble Group Ltd, a source familiar with the matter said on Thursday. Michael Paradise is set to begin trading crude oil for Noble in July, although it was not immediately clear what his new title would be. Paradise has been at the Wall Street bank's trading desk for the last four years, having previous stints at Constellation Energy, Duke Energy, BNP Paribas and Enron, according to his LinkedIn profile. Singapore-based Rob Biro, Citigroup's global head of oil trading, resigned in March.
Citigroup to Start Trading Physical Canadian Crude
Citigroup Inc plans to start trading physical Canadian crude oil, three sources have told Reuters, setting itself up to jockey with banks and traders to fill the vacuum left by other Wall Street giants offloading physical commodity businesses. Three participants in the Canadian crude market, who declined to be named because they are not authorized to speak to the media, said Citi is in the process of preparing for physical trading of the most liquid Canadian grades. That would likely include Western Canada Select heavy blend , the de facto Canadian benchmark, as well as sweet grades. A spokesman for Citi declined to comment.
