Lindsey Oil Refinery, UK insolvency proceedings
The government's insolvency services announced on Monday that Britain's Lindsey refinery had begun insolvency procedures, raising the possibility of it closing weeks after Grangemouth stopped processing oil. According to the U.S. Energy Information Administration (EIA), Lindsey, one of Britain's six remaining oil refineries, is set to close, increasing Britain's dependence on fuel imports. According to its website, Prax has a capacity of 113,000 barrels a day. The government placed Prax Storage Lindsey and Prax Terminals Killingholme under judicial winding up orders.
In administration is the parent company of Prax, which owns UK's Lindsey refinery.
Teneo Management Consulting said that State Oil Limited (parent company of Lindsey Oil Refinery) has been placed under administration and insolvency proceedings by the British High Court. State Oil is owned by Prax Group, which also owns the Lindsey Refinery. Teneo announced on Monday that it has been appointed administrator of State Oil. Separate proceedings have also been initiated to pay the Lindsey Refinery's staff, who will remain in their current positions. Clare Boardman of Teneo said that the joint administrator would consider all options, including selling Prax's retail business in Europe and the UK, which are all outside of insolvency.
Conflict affects Iranian and Israeli energy sites
The military strikes between Iran & Israel have raised concerns about possible damage to oil and gas infrastructure and fields in the region. Here are some details on these sites, and how they have affected them so far. Israel attacked an installation in the South Pars offshore field where Iran had partially suspended production on June 14. South Pars is a part of the world's largest gas reserves, which Iran shares jointly with Qatar. Around 200 km from Qatar, the attack targeted four units in Phase 14 of South Pars. Many of these are joint ventures between international companies, such as ExxonMobil, ConocoPhilips and other U.S. firms.
Overview of Iran's major gas fields and oil infrastructure
Israel attacked an installation in Iran's South Pars Gas Field on Saturday. This was the first attack against Iran's oil-and-gas sector, as part of a long-term operation that the Israeli government warned would take place to stop Tehran from developing an atomic bomb. Iran has temporarily suspended gas production at the South Pars Field, Iran's share of the world's biggest natural gas reserve. The field is located beneath the Gulf, and it's shared with Qatar, a major gas exporter. Iran reported that Israel had also attacked a fuel depot in Tehran and an oil refinery close to the capital, but the authorities claimed the situation was now under control.
Overview of Iran's major gas fields and oil infrastructure
Israel attacked an installation in Iran's South Pars Gas Field on Saturday. This was the first attack against Iran's oil-and-gas sector, as part of a long-term operation that the Israeli government warned would take place to stop Tehran from developing an atomic bomb. Iran has temporarily suspended gas production at the South Pars Field, Iran's share of the world's biggest natural gas reserve. The field is located beneath the Gulf, and it's shared with Qatar, a major gas exporter. Iran reported that Israel had also attacked a fuel depot in Tehran and an oil refinery close to the capital, but the authorities claimed the situation was now under control.
Serbia will investigate Russian allegations that it shipped arms to Ukraine
Aleksandar Vucic, the president of Serbia, said that Serbia and Russia would jointly investigate how Serbian-made ammunition ended up in Ukraine after Moscow accused Belgrade exporting weapons to the government of Kyiv. The SVR (Russian foreign intelligence service) accused Belgrade of a "stab in the back", alleging that Serbia's defence producers were selling weapons and ammunition to Ukraine. The SVR stated that Serbia sent arms to Ukraine via NATO intermediaries including the Czech Republic and Poland, as well some African countries. Serbia is able to maintain a balance between its historic ties with Russia, and those of the European Union.
Repsol announces dividends to shareholders after the first quarter exceeded expectations
After reporting first-quarter results that were better than expected, Repsol, a Spanish energy company, pledged to maintain its dividend policy even if the market conditions worsen in future quarters. The adjusted net profit for the quarter fell by 48% compared to a year ago, reaching 651 million euro ($741 millions), exceeding the average estimate of the company at 642 million euro. It said that the above-mentioned forecasts were achieved despite the fact that oil refining profits had more than halved from a year ago, despite lower oil prices and a decline in margins for its chemical business, as well as market volatility.
US refiners are unlikely to spend large amounts to process more domestic crude oil
It can be expensive and time-consuming to change refinery configuration. The margins and yields of refineries can be affected by using different types of crude. By Arathy S. Analysts and industry sources said that U.S. refiners do not plan to invest heavily to process more crude oil domestically and less oil imported from Canada and Mexico. This is a major obstacle to President Trump’s plan to increase oil production. Trump's pledge of unleashing U.S. production and lowering prices for consumers focused on increasing domestic drilling. Trump's tariff threats, however, have reduced imports of crude oil from Canada and Mexico.
Modi's India aims to strengthen energy and defence ties during Sri Lanka visit
India wants to promote investment and strengthen defence and energy ties with Sri Lanka during Prime Minister Narendra Modi’s two-day visit to the island country, where New Delhi is competing with China for more influence. Modi will arrive in Sri Lanka on Friday night. He is the first world leader to be hosted by Anura Kumara dissanayake since he assumed office. Sri Lanka wants to attract foreign investments to stabilize its economy following a financial crisis that occurred in 2022 during which India contributed $4 billion. India is one of Sri Lanka’s major bilateral lenders.
Nigeria namess ex-Shell executive as head of state oil company NNPC
The Nigerian presidency announced on Wednesday that Bola Ahmed Tinubu had appointed Bayo Ojulari as head of the state-owned oil company NNPC Ltd. This is in response to the country's desire to increase oil production and revitalize its refinery capacity. Tinubu, who in his first year as president devalued the naira twice and ended costly subsidies, has now shifted his attention to overhauling state oil company to maximize its contribution to revenue. In a press release, Bayo Onanuga, the presidential spokesperson, said that Mele Kyari is replaced by Ojulari, and this appointment takes effect immediately.
Vucic: Serbia will lose access to oil imports when the deadline for sanctions looms.
Serbia may lose access to essential oil imports as of Friday, after discussions to stop the imposition by the United States of sanctions on its sole oil refinery failed. President Aleksandar Vucic stated this in an interview published. The waiver of sanctions expires at midnight. If it is not extended, NIS, which is owned by Russia's Gazprom and Gazprom in majority, may face a reduction in crude oil supply. NIS is the sole oil refinery in Serbia, with a capacity of 4.8 millions tons per year. This facility covers most of Serbia's energy requirements.
Glencore refinery in South Africa invests in cleaner fuels
Astron Energy, an affiliate of the global commodity trader Glencore will invest up six billion rands ($328 million) in order to install new equipment, and to become compliant with South Africa’s cleaner fuel specification before a 2027 deadline. Astron officials have said that the foundations for a Gasoline Hydrotreating Process, which will reduce petrol to Euro 5 specifications has already been laid in the 100,000 barrels a day crude oil refinery near Cape Town. The Clean Fuels II regulation in South Africa, which stipulated that the sulphur content in petrol and diesel must be reduced to 10 parts-per-million (ppm)…
Why are rare earths in high demand?
Rare earth metals have been making headlines due to the demand for smartphones, wind turbines and other products. Governments also want to secure their supply. What are the basic facts? What are they? Rare earths is a grouping of 17 elements, including 15 metals that are silvery white, called lanthanides or lanthanoids. They also include scandium and yttrium. What are they used for? These materials are used for a variety of products, including consumer electronics, aircraft engines, medical devices, oil refinery, and military applications, such as missiles, radars, and electronic components. What country is the largest producer?
Financial Times - 24 February
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. Britain and India are resuming talks to reach a long-awaited deal on trade. The negotiations had been delayed due to the elections held in both countries. The UK Government has committed to invest 200 million pounds ($253,26 million) in projects at Grangemouth, as the closure of Scotland's sole oil refinery is planned for the next few months. This will result in redundancies among the workers. BMW has suspended a 600-million-pound investment plan for the production of electric Minis in Oxford.
The cold weather in the US boosts diesel prices, but masks economic challenges
Since the beginning of the year, the cold temperatures in the Northeast U.S. have led to an increase in demand for heating oil. This has helped to offset the slowdown in recent years due to reduced industrial activity. The Energy Information Administration (EIA), according to its data, reported that the U.S. inventory of distillate fuels - including diesel and heating oil - fell this month to its lowest seasonal level in 2014. The sharp increase in heating oil consumption is reflected by the decline. According to EIA, the four-week average for distillates products supplied is a proxy measure of demand.
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.
Big Oil is not rushing to "drill, baby drill" this year despite Trump's agenda
Wall Street believes that U.S. energy companies will keep spending under control in 2025, and focus on shareholder returns despite President Donald Trump's calls to "drill baby, drill". This week, Big Oil will report its fourth-quarter results. The outlook for the next year should reflect Trump's agenda to maximize oil and gas production and the expectations of investors. In recent years, the industry has been pushing to reduce costs and increase output by using more efficient technologies rather than drilling new wells. As the global oil market continues to decline…
Sources say that India's palm oils imports will hit a 5-year low on January due to negative margins.
India's palm-oil imports will plunge to their lowest level in five years this January due to negative refining margins. The tropical oil's higher price than its rivals is driving buyers to soyoil which is more competitively priced, according to government and industry officials. The world's largest buyer of vegetable oil, Malaysia, could reduce palm oil imports and weigh down on Malaysian benchmark palm oil prices. However, this would support U.S. soybean oil futures. A leading Indian palm buyer said that the lack of ships carrying palm oil in key ports like Kandla and Haldia over the next couple weeks could mean that imports will drop to 370…
China's oil refinery production in November increased by 0.2% year/year
China's refinery output in November increased slightly compared to last year, ending a seven-month drop, according to official data released on Monday. The National Bureau of Statistics (NBS), according to its data, showed that refiners processed 58.51 millions metric tons of crude last month. This is equivalent to 14,24 million barrels of oil per day. It was online in late September, when the percentage of users had increased to 60-70%. The demand for refined products has improved since late last month. Some refiners have also received a boost in their operation rates. In November, they were able to replenish their feedstock and ramp up production.
AVG US Gasoline Price Lowest in 3 Years
On Monday, the average U.S. gas prices dropped below $3 per gallon for the very first time in more than three years. This is a welcome relief for Americans who have been struggling with high inflation rates in recent years.Since the summer driving peak, fuel prices have steadily declined, boosting consumer spending, even though progress on inflation slowed in October and prices of other goods rose.GasBuddy.com, a market-tracker, reports that the national average price of regular gasoline dropped to $2.97 per gallons on Monday. This is the lowest it has been since May 2021.Oklahoma had the lowest average retail price of $2.42 a gallon in the United States.
