Petrofac UK signss binding agreement with its creditors regarding financial restructuring
Petrofac, a provider of oilfield services, announced on Sunday it had reached a binding agreement on terms for a restructuring with its key financial creditors. The company stated that the plan will include $325 million of new funding as well as the conversion of $772 million of existing debt to equity. In a recent statement, Group Chief Executive Tareq Kwash stated that "we have made progress in closing our legacy contract portfolio, and our new projects are moving forward well. In September, Petrofac and some of its major stakeholders…
As the Ukraine gas transit agreement nears its expiry, the Russian president meets with Slovak Prime Minister
Pavel Zarubin, a Russian TV presenter, said that Russian President Vladimir Putin and Slovak Premier Robert Fico met in the Kremlin Sunday. The meeting took place as a contract for Russian gas transiting through Ukraine is nearing its expiration date. Fico criticised the Ukrainian president Volodymyr Zelenskiy for refusing a contract extension that expires in the next year. In a video that was posted by Zarubin on Telegram, Kremlin spokesperson Dmitry Peskov said that the discussion would be centered on the gas transit and current international situation. He stated that the Kremlin Meeting was arranged "a couple of days ago".
Biden Administration will not finalize the clean fuel tax credit guidelines
Three sources have confirmed that Biden administration officials won't finalize the highly anticipated guidelines for new clean fuel production credits targeted at the airline industry and biofuel industries by the time they depart in January. This casts doubt on the future success of this key part of the U.S. President's climate agenda. The tax credit was to go into effect on Jan. 1 but, due to a lack detailed guidelines from the U.S. Treasury, it would have been rendered dormant. The global emissions of greenhouse gases from air travel are around 2.5%, which makes it an important target in the fight to combat climate change.
Ukraine drones target ethanol plants in Russia, Telegram channels say
Russian channels on Telegram said that Ukrainian drones attacked ethanol plants in Russia’s southern region Voronezh. The regional governor confirmed the report, saying the attack caused two injuries, ignited a fire, and damaged two industries. Alexander Gusev said that the regional governor Alexander Gusev confirmed on Telegram that firefighters had extinguished the fire which injured two workers in the Anninsky District of the region. He added that about 10 Ukrainian drones had been destroyed or intercepted late Sunday over the area, and debris damaged several buildings both in the Novokhopersky District as well as the district.
Sources say that Shell is the preferred bidder in Trinidad for a shallow water block
Three people familiar with the process have confirmed that Trinidad and Tobago has selected Shell as its preferred bidder to bid on a shallow-water block. This bidder beat out BP and EOG Resource. Trinidad and Tobago's natural gas production has declined in recent years, and the country has struggled to supply its petrochemical and liquefied gas plants. The government organized bid rounds and pressed producers to deliver the first output of offshore projects. Shell and BP have the largest stakes in Trinidad's Atlantic LNG Project, which is a 15.3 million ton per year project. They are trying to increase production to ensure feedgas for the trains.
US Regulator to Allow Freeport LNG to Resume Partial Operations in October
The second-largest U.S. liquefied natural gas (LNG) exporter on Wednesday said it reached an agreement with a federal regulator that will allow it to resume some operations at its Quintana, Texas, plant in October.Freeport LNG shut the plant, which supplies about 20% of U.S. LNG exports, following an explosion and fire on June 8. Its closure helped to push up LNG prices in Europe and Asia, and dampening U.S. natural gas prices.The operator reached a consent agreement with the Pipeline and Hazardous Materials Safety Administration (PHMSA) that included corrective measures the company must take to allow it to resume partial operations…
Biden to Target Drilling, Fossil Fuel Subsidies in New Climate Orders
President Joe Biden was set on Wednesday to sign executive actions to combat climate change, including pausing new oil and gas leases on federal land and cutting fossil fuel subsidies as he pursues green policies in stark contrast to those of his predecessor Donald Trump.The orders map out the direction for the Democratic president's climate change and environmental agenda and mark a reversal from Trump, a Republican businessman-turned-politician who sought to maximize U.S. oil, gas and coal output by removing regulations and easing environmental reviews.Biden's focus on climate change has cheered international partners and environmental advocates…
Biden Announces Return to Global Climate Accord, New Curbs on US Oil Industry
U.S. President Joe Biden on Wednesday announced America's return to the international Paris Agreement to fight climate change, the centerpiece of a raft of day-one executive orders aimed at restoring U.S. leadership in combating global warming.The announcements also included a sweeping order to review all of former President Donald Trump's actions weakening climate change protections, the revocation of a vital permit for TC Energy's Keystone XL oil pipeline project from Canada, and a moratorium on oil and gas leasing activities in…
US Crude Futures Plunge to Lowest on Record
U.S. crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.While U.S. oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers, who typically see lower oil prices translate…
Record Oil Output Cuts Fail to Make Waves in Coronavirus-hit Market
The minimal impact on oil prices from a global deal for record output cuts showed that oil producers have a mountain to climb if they are to restore market balance as the coronavirus shreds demand and sends stockpiles soaring, industry watchers said.After several days of discussions, oil producing and consuming countries aim to remove nearly 20 million barrels per day (bpd) or 20% of global supply from the market, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Monday.The oil market has barely shrugged, however: Brent crude gained 1.5% on Monday, while U.S. crude ended the day lower.
Mexico and Pemex Face Downgrade Risk
Mexico threw troubled state oil company Pemex a lifeline in 2019 to stop $80 billion in bonds held by investors worldwide being labeled junk by credit rating agencies. Now, investors worry that the state itself is a risk for Pemex.Mexico's creditworthiness came under increasing scrutiny in 2019, with two rating agencies flipping their sovereign outlook for the country to negative and one downgrading its rating.Economic growth has ground to a halt during Mexico's first year under leftist President Andres Manuel Lopez Obrador, hitting income and sales tax receipts.
Saudi Aramco Sets Record $25.6 Bln IPO
State-owned oil giant Saudi Aramco's initial public offering (IPO) will be the biggest in history, but will fall short of the towering $2 trillion valuation long sought by Crown Prince Mohammed bin Salman.Aramco priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, the company said in a statement, raising $25.6 billion and beating Alibaba Group Holding Ltd's record $25 billion listing in 2014.At that level, Aramco has a market valuation of $1.7 trillion, comfortably overtaking Apple Inc as the world's most valuable listed firm.
France Plans 1 GW Offshore Wind Farm
France wants to construct a wind farm off the coast of Normandy as the nuclear-dependent nation moves to expand power generation from renewable sources, the energy ministry said on Monday.The planned 1-gigawatt (GW) wind farm could have up to 80 wind turbines of around 12 megawatts each, in an area where wind conditions and the seabed are very favorable for offshore wind power at a competitive price, the ministry said in statement.France is racing to boost the share of renewable generation capacity in its energy mix and reduce its dependence on nuclear energy.
Russia: Arctic Offshore Oil Feasible at $130/bbl
The head of Russia's Rosnedra subsoil agency said on Tuesday that the development of the Pobeda (Victory) offshore Arctic oilfield in the Kara Sea is feasible only at oil prices of $130 to $140 per barrel, Interfax news agency reported.Rosneft, the world's top listed oil firm by output, drilled a first exploration well in 2014 in the Kara Sea, which is part of the Arctic Ocean, with a rig provided by U.S. partner Exxon Mobil Corp.Exxon Mobil has pulled out from the project due to U.S. sanctions imposed over Moscow's annexation of Ukraine's Crimea Peninsula in 2014 and its support for pro-Russian armed separatists in eastern Ukraine.
Plans for Israeli Gas Exports to Egypt on Track
Plans to start exporting gas from Israel to Egypt are on track but further steps are still needed before exports can commence, Egyptian petroleum minister Tarek El Molla said on Monday."Everything is agreed on ... countries (involved) have already given their blessings. There is no issue in that," Molla told reporters during an energy conference in UAE's Abu Dhabi."It's a multilateral deal, a gas deal and a pipeline deal so it is a little bit a lengthy process.
Oil Prices Mixed Ahead of US Crude Sstock Data
Oil prices were mixed on Tuesday ahead of data expected to show U.S. crude stocks declining, outweighing investors' concerns that U.S.-China trade tensions could dampen fuel demand.Benchmark Brent crude futures settled up 19 cents, or 0.3%, at $65.05 a barrel.U.S. crude futures fell 7 cents, or about 0.1%, at $57.83 a barrel.Investors shrugged off U.S. President Donald Trump's comments on Tuesday that the United States would obliterate parts of Iran if it attacked "anything American."Oil-market jitters over the escalating tension between…
Fitch Downgrades Pemex Debt to 'Junk'
Fitch on Thursday became the first major ratings agency to downgrade the debt of Mexican oil company Pemex to "junk" status, in a major setback for President Andres Manuel Lopez Obrador's plans to revive the struggling state-run firm.Fitch changed Pemex's credit rating from investment grade to speculative grade, or "junk", with a negative outlook, a day after it downgraded Mexico's sovereign debt, a decision criticized by the Mexican finance ministry.The new rating for Pemex is BB+ and that of Mexico's sovereign debt BBB.A second downgrade by Moody's, which rates the bonds one notch above junk, could result in as much as $16 billion of forced selling by investor
Pemex Promised $7.3 Billion in Tax Relief
Mexico's government aims to give $7.3 billion in tax relief to heavily indebted state oil company Pemex, according to a document seen by Reuters on Thursday, in an effort to cool fears over its financial viability and the impact on the wider economy.Pemex, burdened by $106 billion of financial debt, is teetering on the brink of losing its investment-grade rating.That scenario could be disastrous for Pemex as investors whose mandates stipulate they must hold assets of investment-grade quality find themselves forced to sell billions of dollars of its bonds.
Oil Rises 2 Percent
Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.Venezuela's main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday…
US Buyers Turn to Offshore Crude
U.S. sanctions on Venezuela's oil industry have made winners out of Royal Dutch Shell Plc and BP Plc, Gulf of Mexico offshore heavyweights, as refiners in need of substitutes are scooping up oil produced in the region.Those two companies produce notable amounts of crude oil that refiners have settled on as the immediate replacement for the heavy Venezuelan crude that U.S. refiners relied on for years. Trading volumes in these grades of oil have surged to the highest in months, and prices touched five-year peaks after sanctions were imposed.U.S. production has surged to a record 12 million barrels a day, but less than 5 percent of that is heavy oil.
