Lawsuit Drags BP's Oil Trading Division into the Red
BP's oil trading business, one of the biggest in the sector, reported a rare loss in the fourth quarter after it lost a $70 million lawsuit over an oil cargo delivered to a Moroccan refinery. BP's Chief Financial Officer Brian Gilvary said due to flat trading positions ahead of a crucial OPEC meeting at the end of November, and the lawsuit, the company's oil trading division made a "small loss" in the fourth quarter. "There was a natural inclination to flatten up all of the books and there was also an adverse court ruling against us which is a $70 million hit," he told analysts on Tuesday.
Bahri Signs $350 mln Islamic Finance Deal for Oil Tankers
National Shipping Company of Saudi Arabia (Bahri), the exclusive oil-shipper for Saudi Aramco, said on Wednesday it had signed a $350 million Islamic 10-year financing deal to pay for the building of five oil tankers. The 10-year murahaba financing was arranged by Standard Chartered, which also contributed to the deal along with Arab National Bank and National Bank of Abu Dhabi, it said. A murabaha is a cost-plus-profit arrangement which complies with Islamic finance standards. The tankers were previously ordered from South Korea's Hyundai Samho Heavy Industries Co. (Reporting by Reem Shamseddine; Writing by Tom Arnold)
BP Loses $68 mln Court Ruling Over Morocco Oil Cargo
BP must pay more than $68 million to the National Bank of Abu Dhabi (NBAD), a UK court has ruled, in a case stemming from the surprise closure of Morocco's Samir refinery in 2015. The British energy company sold a cargo of Russian Urals crude to Samir in August 2014 which was not paid for and NBAD took on 95 percent of that debt. The London High Court ruled that BP did not have the right to pass on the debt. It said the contract between BP and Samir stipulated that there could be no assignment of obligations or rights without reasonable consent and that Samir's consent had not been obtained.
Weak Oil May Depress Gulf; Investment Deals Could Support Egypt
Oil's fresh slide may pressure Gulf stock markets on Sunday, while Egypt may rise after Gulf Arab allies pledged a further $12 billion of investments and central bank deposits for Cairo at an international summit. Global oil prices tumbled on Friday and fell 9 percent on the week, hit by a renewed rally in the dollar and a warning by the International Energy Agency that the oil glut is growing. Brent crude settled near a one-month low below $55 a barrel. Some traders also worried about the prospect of Iran reaching a partial nuclear deal with world powers by the end of March and a full agreement by June.
WFW Advises FPSO Joint Venture Debt Financing
International law firm Watson, Farley & Williams Asia Practice LLP (WFW) said it advised a joint venture involving M3nergy and PT Transamudra as sponsors on a $182 million term facility and $38.4 million guarantee facility. The funds will finance the floating production, storage and offloading facility named FPSO Ratu Nusantara. The FPSO Ratu Nusantara is scheduled for operation by Petronas Carigali in the Bukit Tua oil and gas field in the Ketapang block, offshore Madura Island, East Java, Indonesia. Partner Andrew Nimmo led the WFW Asia Practice team for this deal, assisted by senior associate Shawn Er.
