The German antitrust watchdog wants to regulate the oil market more.
The German antitrust authority called for stronger regulation on the price quotes used on the oil market after an investigation showed that pricing was based on limited information which could be manipulated. Prices are often linked to wholesale contracts, and they can have an indirect impact on retail prices. These price quotations are provided by agencies that report prices, such as S&P Global Commodity Insights and Argus Media. The investigation by the cartel office found that in certain cases, a few market participants were able to dominate the reporting process. This raised concerns about possible price manipulation.
German antitrust watchdog flags price issues in the oil market
The German antitrust authority said on Wednesday that an examination of Germany's oil markets showed pricing issues. It called for stronger legal regulations on price quotes. The Federal Cartel Office will launch an investigation in 2022 into the German refinery and wholesale market for fuels following Russia's invasion. The two-stage investigation examined refinery pricing, fuel imports and supply chains as well as market behaviours. Its goal was to improve competition and price transparency within the sector. The investigation revealed significant risks to the competition posed by price quotes, which are crucial in pricing the entire oil value chain.
Guyana and Dominican Republic make progress on oil drilling, refining
Dominican President Luis Abinader announced on Tuesday that Guyana and Dominican Republic have made progress in negotiating agreements for offshore oil exploration, a fertilizer factory and possibly a refinery to be built in South America. In 2023, the countries signed a Memorandum of Understanding to work on projects in energy. The Caribbean country has expressed interest in exploring Guyana’s Berbice off-shore block. This could require a re-delimitation of an area that was originally explored by a Toronto listed unit of CGX Energy, and eventually returned to the Government.
Venture Global rises after brokerages begin coverage with bullish rating
Venture Global shares reached a weekly peak on February 18th, after several brokerages began coverage of the company with bullish ratings despite its dull market debut in January. Venture Global shares rose 5.8% to $16.87. On January 24, the liquefied gas (LNG), provider started trading at New York Stock Exchange for $24.05 per stock, valuing the company as the largest gas exporter. Its market capitalization is $58.2 Billion. Investors and analysts are concerned about the company's long-term profits and legal disputes with UK energy giants BP and Shell. After the quiet period expired, J.P.Morgan and Citigroup began covering the stock.
Venture Global LNG says it will begin commercial operations at its Calcasieu Pass Louisiana facility in April.
Venture Global LNG announced on Monday that it will start commercial operations in Louisiana at its Calcasieu Pass facility on April 15th, three years after shipping its first LNG cargo and following a dispute of two years with its customers. The company has informed long-term clients, including Shell and BP, of the beginning of commercial operations. Venture Global's failure years after it began selling superchilled gases on the spot market to begin commercial operations led to contract arbitration lawsuits brought by some world's leading oil and gas producers including BP Shell Edison Orlen Repsol. The companies did not respond to requests for comment.
US drillers added oil and gas drilling rigs in the third week of a row, according to Baker Hughes
Baker Hughes, a leading energy services company, said that U.S. firms added oil and gas rigs this week for the third consecutive week for the first since December 2023. The number of oil and gas rigs, a good indicator of future production, increased by two in the week ending February 14 to 588. Baker Hughes reported that despite this week's increase in rigs the total count is still 33 rigs or 5% lower than this time last. Baker Hughes reported that oil rigs increased by one this week to 481 while gas rigs grew by one to 101. Oil and gas rig counts are expected to decline by 5% and 20% respectively in 2024, as the lower U.S.
Aker BP's top shareholder claims that the company has opportunities for acquisition.
Aker BP is a Norwegian oil exploration and production firm that was formed through a series mergers and purchases in the past decade. Its top shareholder stated on Friday that there are opportunities to consolidate further on Norway's Continental Shelf. Aker BP is aiming to increase its production to over 500,000 barrels of oil-equivalent per day by 2028. This will be a significant improvement from the few thousand barrels produced daily in 2013. Oeyvind Ericsen, CEO of Aker ASA, which owns 21.16 percent of Aker BP shares, stated that Norway's second-largest oil company, behind Equinor, could continue to acquire assets from rivals. Aker BP is interested in a few potential opportunities.
ADNOC Drilling plans to refinance $1.25 billion worth of debt
ADNOC Drilling, a division of the state oil company in the United Arab Emirates, wants to refinance its debt due later this year, totaling $1.25 billion. Its chief financial officer announced that on Friday. Youssef Salm, the company's CFO, said that it will refinance term loans worth $500 million as well as a revolving loan facility of $750 million due in October 2025. He said that the capital expenditures for 2025 could be more than $1 billion, including mergers, acquisitions and other activities through its subsidiaries. It said Thursday that it expects to report a net income of between $1.35 and $1.45 Billion this year.
Financial Times reports that Elliott has a $5 billion stake in BP.
The Financial Times reported that Elliott Management, an activist investor, has revealed a nearly 5% stake in BP. This makes it the third largest shareholder of the oil company, citing sources close to the issue. The FT reported that Elliott was trying to get the British oil company, British Petroleum to reduce spending on renewables as well as make large divestments. BP shares dropped 1.3% to 462.5p after the FT article. A BP spokesperson refused to comment. Elliott Management didn't immediately respond to our request for a comment. Murray Auchincloss, the CEO of BP, is on a quest to revive BP’s performance and increase profits.
India demands that Russian oil suppliers comply with sanctions
India, the world's No.2 importer of crude oil from Russia, wants to buy Russian oil only if it is supplied by companies and ships that have not been sanctioned by the United States. India, the No. 2 importer from Russia of crude oil, will only buy Russian oil if the oil is supplied by ships and companies that are not sanctioned by America, according to the oil secretary. The escalating sanctions imposed by the west, including the United States, on Moscow have disrupted global oil markets and forced those who bought discounted Russian crude at a discount to find other ways to keep their purchases.
Sources: Validus Energy will buy natural gas producer, 89 Energy III, for $850 Million.
Sources familiar with the deal said that Validus Energy, a privately owned U.S. gas and oil producer, has agreed to purchase 89 Energy III, a rival company, for $850 million including debt. According to sources, the deal will add more than 25,000 barrels equivalent to oil per day to Validus’s growing footprint in Oklahoma's Anadarko Shale Basin, making it one of the biggest private players in U.S. Mid-Continent region oil. According to its website, 89 Energy III produces 70% gas. Kayne Anderson announced the formation of this company in May 2021, after a merger between three Mid-Continent oil and gas producers.
Aker BP and Total are seeking to increase their stakes in the giant Equinor oilfield
Aker BP announced on Wednesday that TotalEnergies, Aker BP and Equinor are seeking a review of their shares in Equinor’s Johan Sverdrup field in order to increase their holdings. Sverdrup, which is built across several offshore oil-and-gas licences, is owned by Equinor 42.63%, Aker BP 31.57%, Norwegian oil company Petoro 17,36%, and France's TotalEnergies 8.44%. Owners of a field that began producing oil in 2019 have the right of requesting a review of their stakes, based on data from production and reservoirs. Aker BP CEO Karl Johnny Hersvik said that…
Aker BP and Total are seeking to increase their stake in the giant Equinor oilfield
Aker BP announced on Wednesday that TotalEnergies, Aker BP and Equinor are seeking an independent assessment of their stakes within Equinor’s Johan Sverdrup field in order to increase their holdings. Sverdrup, which is built across a number of offshore oil and gas licenses, is owned by Equinor 42.63%, Aker BP 31.57%, Norwegian oil company Petoro 17.36%, and France's TotalEnergies 8.44%. Owners of the oil field that began production in 2019 have the right of requesting a review of their stakes on the basis of data from the reservoir and production. Aker BP CEO Karl Johnny Hersvik said to reporters that TotalEnergies had used the option of a redetermination procedure.
Financial Times – February 12,
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. BP told 39,000 employees their cash bonus would be only 45% of the target amount after a poor year in financial and operational performance. Gavin Isaacs, the chief executive officer of Ladbrokes' owner Entain has resigned after only five months. Novartis agreed to purchase Anthos Therapeutics for up to $3.1billion after Blackstone Life Sciences had funded the development of Anthos' treatment to prevent strokes and serious blood clots. EU officials said they would take "firm and proportionate" countermeasures against U.S.
Woodside and Trinidad have agreed to initial commercial terms for deepwater natural gas, an executive says
According to three sources with knowledge of the discussions, a Woodside executive and a Trinidad and Tobago government official have agreed on an initial commercial agreement for the development of Woodside's Calypso gas deepwater discoveries. This brings the project closer to the final investment decision. In order to fully utilize its gas processing capability, the Caribbean country is Latin America's biggest LNG exporter. It has pushed producers, particularly those offshore, into accelerating natural gas production. Lack of gas has hampered LNG production and exports in recent years.
BP plans to add six new gaswells to the Azeri Caspian sea field in order for it continue production.
BP will add six new gas wells in Azerbaijan’s Shah Deniz field in the Caspian Sea in order to maintain stable production for the future, a senior manager from the international energy giant said. BP operates 21 gas-wells in Shah Deniz. This area is being developed by a BP led consortium, and is crucial to Azerbaijan’s commitment to increase gas exports to Europe, offering an alternative to dwindling Russian supply. Azerbaijan will be expected to double their exports to Europe to at least 20 billion cubic meters a year under a deal signed in 2022. Bakhtiyar Aslanbayli…
BP promises fundamental reset as Q4 profit hit four-year low
BP announced a quarterly profit of $1.1 billion on Tuesday. This was lower than expected, and the lowest since 2004. The company also promised to reset its strategic direction after it became known that Elliott Management, an investor, had acquired a stake. BP has experienced a decline of earnings for the entire year 2024. This follows two years of record earnings, when energy prices stabilized and global oil demand weakened. But BP is underperforming its peers, and CEO Murray Auchincloss has been put under pressure to bring about change. The share price of 467.90 pence was up 0.6%, or about flat.
Source: Elliott wants operational changes at Phillips 66 after acquiring a stake of over $2 billion dollars
A person with knowledge of the matter said that Elliott Investment Management, an activist firm, has acquired a stake worth over $2.5 billion in Phillips 66. The company plans to make changes to its operations to increase its stock price. The person who spoke to Elliott said that he plans to encourage Phillips 66's midstream division to be sold or spun off. Elliott, an activist who disclosed a $1 Billion stake in Phillips 66, accepted Phillips 66's performance improvement plan to increase shareholder returns and the share price. Phillips 66 announced that it had appointed Robert Pease as a director, a seasoned refining executive.
Mexico's Carlos Slim: 'Complicated' deepwater project being evaluated
Mexican billionaire Carlos Slim announced on Monday that he and his team are re-evaluating the deal they signed with Pemex, Mexico's state oil company to develop Mexico’s first deepwater gas field. The project has been plagued by issues over its commercial viability for years. The comments are in line with an exclusive published last month, which revealed that representatives from Grupo Carso of Slim and Pemex had discussed changes to the agreement to make the Lakach Project profitable despite lower gas prices forecast. Slim, during a Mexico City press conference, said that it was a complex project that needed to be handled by highly skilled technicians.
Wall Street Journal – Feb 10,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Activist investor Elliott Investment Management owns a stake in BP, the world's largest oil company. Elliott Investment Management will demand radical changes to improve BP's performance. -US President Donald Trump announced that he would announce 25% tariffs on steel and aluminum imported into the U.S. on Monday. Chinese officials are putting together a list of U.S. tech companies that they can target with antitrust investigations and other tools in order to influence the many executives from these companies who are part of President Trump's circle.
