Latest News
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Ecuador awards 20-year production sharing contract to New Stratus Energy, Sinopec-linked consortium
New Stratus Energy announced on Monday that a consortium consisting of subsidiaries of China's state energy giant Sinopec, and Canada's New Stratus Energy was awarded a production-sharing contract lasting 20 years for Ecuador's highest-producing oil block. New Stratus stated that the deal includes a cash upfront entry bonus of $1.5 Billion, of which $600 M will be paid by New Stratus. The government says it lacks the money or technology to increase production in the Sacha Block, one of the oldest blocks in the country. The block will produce about 77,000 barrels a day by 2024. New Stratus reported that "in addition to the entrance bonus, the consortium agreed to invest amounts exceeding $1.7 billion over the initial term in order to finance a (energy ministry) approved development plan." The Ministry had named the subsidiaries previously as Amodaimi Oil Company S.L. a Sinopec subsidiary and Petrolia Ecuador a New Stratus subsidiary. Later in the afternoon, the energy ministry will hold a news conference to discuss the deal. The authorities have defended the direct negotiation with the consortium instead of a bidding process by claiming that the law allows for direct negotiations between state-owned companies and the government. The government presented in January several energy projects that it claimed will require $42 billion of foreign investment over the next five-year period. (Reporting and writing by Julia Symmes Cobb).
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OPEC+ will proceed with its planned April oil production hike
OPEC+ announced on Monday that it would proceed with a planned increase in April oil production. This decision follows the renewed pressure from Donald Trump on OPEC, Saudi Arabia, and other countries to lower prices. This is the first increase since 2022 by OPEC+. OPEC+ includes the Organization of Petroleum Exporting Countries plus Russia and allies. At 1900 GMT, oil was trading 2% below $71 per barrel. OPEC announced that eight OPEC+ member countries who are cutting the most recent layer in the group's output held a virtual conference on Monday. They agreed to continue with the increase for April. Calculations show that the increase in April is 138,000 barrels a day. OPEC stated in a press release that "this gradual increase can be paused or reversed depending on market conditions." This flexibility will enable the group to continue supporting oil market stability. In recent weeks, oil has traded in the range of $70 to $82 per barrel as a result of U.S. sanctions against large oil producers Iran and Venezuela. Trump has renewed his pressure on OPEC, to lower prices. Prices rose to multi-month highs of above $82 a barrel in January after Trump’s predecessor Joe Biden imposed new sanctions against Russia. Prices have dropped since then in hopes that Trump will help to clinch an agreement on the war between Russia & Ukraine, and increase Russian oil flow. His plans to reduce Iran's oil to zero, and the cancellation of Chevron's license to operate in Venezuela last week prevented further price drops. OPEC+ said that the combination of these bullish and negative factors made April's decision-making extremely complex. They also said that Trump's plans to impose global tariffs may complicate the outlook. OPEC+ agreed to cut output by 5,85 million barrels a day since 2022, which is about 5.7%. This has been done in a series steps to support the global market. OPEC+ has extended the latest cut through the first quarter 2025. This means that the plan to increase production will now begin in April. This was just the latest in a series of delays that occurred last year. According to the plan, the gradual unraveling of 2.2 millions bpd - the latest layer - will begin in April. This is followed by a rise of 138,000bpd per month. Reporting by Ahmad Ghaddar and Olesya Astakhova. Editing by Tomasz and Nia Janowski.
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East Congo rebels kidnap at least 130 hospitalized patients, UN reports
The United Nations reported on Monday that M23 rebels supported by Rwanda, who launched an offensive in eastern Congo last week abducted at least 131 sick and injured men from two Goma hospitals. In a statement, Ravina Shamdasani, spokesperson for the U.N. Human Rights Office said that M23 fighters attacked CBCA Ndosho Hospital on February 28 and Heal African Hospital in the same night. They took 116 and 15 victims respectively. The men abducted were believed to be Democratic Republic of Congo (DRC) soldiers or Wazalendo, a progovernment militia. Shamdasani, who called for the immediate release of these prisoners, said: "It's deeply distressing to see M23 removing patients from their hospital beds and keeping them incommunicado at undisclosed places." Willy Ngoma, a spokesperson for M23, and Lawrence Kanyuka Kingston have not responded to our request for comment. The Tutsi led M23 marched in to the city of Goma, at the end January. Since then they have made an unprecedented march into east Congo. They have taken territory and gained access to valuable minerals. The ongoing advance of the armed forces, which began in late December, represents the most serious escalation of a long-running war that has its roots in the Rwandan genocide of 1994 and the struggle to control Congo's vast minerals resources. Experts from the U.N. and Western countries accuse Rwanda, of supporting this group. Rwanda denies that and claims it is defending against ethnic Hutu militias intent on killing Tutsis and threatening Rwanda. According to the government, about 7,000 people died in the east Congo between January and March. Nearly half a million were left homeless after 90 camps for refugees were destroyed by the fighting. International sanctions, new investigations by the International Criminal Court, and Africa-led negotiations for peace have not been able to stop the advance of the rebels who have taken over east Congo's major cities Goma, and Bukavu. (Reporting and Additional Reporting by Sonia Rolley, Paris; Writing and Editing by Sandra Maler; Emma Farge)
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LME Updates Trading Rules Ahead of Platform Launch on March 24
The London Metal Exchange announced changes to its electronic trading policy ahead of its launch of "LMEselect V10," the new trading platform. This is scheduled to take place on March 24, 2019. On its website, the LME, which is owned by Hong Kong Exchanges and Clearing Ltd., stated that the new platform was designed to improve its electronic markets and better meet the evolving needs of the physical metals and financial trade communities. Updates detailed in a LME notice published on Monday aim to improve clarity and reflect new functionality in the trading platform. The LMEselect V10 certification for trading algorithms is required by the exchange. This includes members who use them to develop in-house strategies or for clients. The LME said that it was the responsibility of those who offer Direct Electronic Access (DEA) to ensure their clients adhere to the regulatory framework, and complete the certification procedure. LME stated that the updated policies will take effect on "the Go Live date", while DEA certification and algorithm requirements are in place immediately. Reporting by Sherin Varghese, Bengaluru. Editing by Barbara Lewis.
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Alabama Power will build a 150-MW battery storage system at the former site of a power plant
Utility Southern Co’s Alabama unit announced on Monday that it would develop a utility-scale, battery energy storage system of 150 megawatts (MW) at the former site of its coal-fired plant in Walker County. CONTEXT The new Gorgas Battery Facility is designed to house lithium-ion phosphate battery packs with a 2-hour lifespan. Construction should begin in this year, and be finished by 2027. Alabama Power said that the seven-acre facility would be designed as an independent system, which will be connected to and charged directly from electric grid. Why it's important BESSs have become increasingly important as companies and countries move to cleaner energy in order to combat climate changes. The systems are able to store excess energy from renewable sources. This can be very useful when there is a high demand for energy or if power production is low. Batteries can be used to integrate clean energy sources into a company's mix of power generation. They are a complementary technology that complements variable and weather-dependent renewable resources such as solar. KEY QUOTE Batteries can be charged when energy prices are low and discharged when energy rates are high, which helps to keep costs low. "They can supply energy quickly to our system in response to changing circumstances," said Brandon Dillard. Senior vice president of Alabama Power’s generating fleet. (Reporting and editing by Tasim Zaid in Bengaluru, with Pooja Mnon from Bengaluru)
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Vanguard resumes its stewardship meeting after reviewing SEC guidance
Vanguard, the top mutual fund company in the world, has resumed its stewardship meeting with portfolio companies following a review of new guidelines from securities regulators. A document obtained by shows on Monday confirms this. Vanguard has followed a similar move by BlackRock, which was made last month. Both companies paused their meetings to take stock of the materials published by the U.S. Securities and Exchange Commission, which could require fund firms to disclose more information when they press portfolio companies on certain environmental and social issues. The document summarizes the message Vanguard representatives share with portfolio companies to emphasize the passive design. The document states that in light of the SEC's new guidance, it is important to "clarify our communications with portfolio companies to make sure that they understand that we only invest and engage to meet investment objectives." The document says that Vanguard will, among other things, make proactive statements about the fund's passivity at the beginning of each meeting. It states that "Vanguard’s Investment Stewardship Team will continue to engage companies with a single focus on safeguarding, and promoting, long-term returns in the companies where our funds invest." Vanguard's spokesperson declined to provide any further details on the materials.
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Trump will decide US tariffs on Mexico and Canada by Tuesday deadline
His Commerce Secretary said that President Donald Trump would decide on Monday which tariff levels he would impose on Canada and Mexico on early Tuesday morning, amid last-minute talks over border security and efforts aimed at preventing the inflow of opioids such as fentanyl. Trump has promised to impose tariffs of 25% on all imports coming from Canada and Mexico. The Canadian energy sector will be subjected to 10%. CEOs and economists claim that the tariffs, which cover more than $900 Billion in annual imports to the United States from Canada and Mexico, would be a major setback for the North American economy. Tariffs will be in effect on Tuesday at 12:01 am EST (0501 GMT). Howard Lutnick, Commerce Secretary on Sunday, indicated that Trump might not impose all of the tariffs. He said that the president will determine the exact level and that tariffs are a "fluid" situation. Lutnick, a CNN reporter, said that Trump and his advisors will be discussing the progress Canada and Mexico have made in closing their border to illegal immigration on Monday. He said that both Mexico and Canada had done an excellent job at the border, but they needed to do more to stop the flow of fentanyl into the U.S. in order to reduce the number of deaths caused by the opioid drug. Lutnick stated that the president is concerned about the lives of Americans, and so the cartels must be attacked to bring down the fentanyl. It's because it's fluid. Lutnick said that the president will have to tell him, "I'm grateful for what you've done, but I don't think you've accomplished enough." Trump will also likely raise the fentanyl tariffs on Chinese imports from 10% to 20% on Tuesday, unless Beijing stops importing fentanyl into the U.S. Lutnick didn't mention any possible changes to these duties. These duties would affect $439 billion in annual imports. On Friday, senior Canadian and Mexican officials met with Trump Cabinet members to discuss efforts to secure their border. However, Trump cited the lack of progress made in reducing deaths from fentanyl-related overdoses. MEXICO'S RESPONSE PLAN Mexico has intensified its anti-drug campaign and hinted that it may take new measures against imported Chinese products after avoiding Trump's first tariff round by striking a deal at the last minute to send thousands troops to its border in the north. In a Monday press conference, President Claudia Sheinbaum said that her government was calm while it awaited Trump’s decision. However, Mexico will react if tariffs were imposed. Sheinbaum stated, "We have plans B, C and D" without providing any further details. Sheinbaum added that the coordination between the U.S. and Canada on fentanyl trade has been "very effective." The Centers for Disease Control and Prevention estimates that 72,776 Americans will die from synthetic opioids by 2023, primarily from fentanyl. NAVARRO : TRUMP UNWAVERING Peter Navarro, White House Trade Advisor, told CNBC Monday that he doesn't see Trump compromising on his tariff agenda. He did not specify the level or scope of tariffs for Canada or Mexico. He said that the impact of any tariffs on inflation would be "second order small". I don't think the president will waver, as he is determined to make America strong and prosperous with (more) factory employment and real wages rising. He has chosen this path." Trump added a new trade action on Saturday to the cascade of tariff announcements that have taken place over the last month. He opened a national-security investigation into the imports of wood and wood products, which could lead to steep tariffs. Canada, which already faces 14.5% U.S. duties on softwood lumber would be particularly hard hit. Trump had ordered the revival of an investigation on countries that levied digital services taxes. He also proposed fees up to $1.5million for every Chinese-built vessel entering a U.S. Port. This is in addition to the plans to increase "reciprocal" tariffs to match other countries' tariff rates and to offset other trade barriers. The European Union could be hit hard by this move due to the high value added tax charged by EU member countries. Desmond Lachman of the conservative American Enterprise Institute warned that Trump's "tariffs-on-steroids" agenda could keep inflation high and tip the global economic system into recession. PACKAGE ORDERS Late on Sunday, the White House issued technical orders by Trump in relation to tariffs against Mexico and Canada. The White House declared that low-value packages coming from Mexico and Canada cannot enter the U.S. under the "de minimis exemption" for shipments below $800. The order stated that the ban would take effect after the Commerce Department determined that sufficient screening measures were taken. Trump suspended the de minimis exemption for low-value Chinese package on February 4, but U.S. Customs and Border Protection Agency was forced to pause this suspension as packages were piling at U.S. Airports without a screening method. Fentanyl traffickers are using the de minimis exemption to bring fentanyl, its precursor chemicals and other drugs into the U.S. and officials claim that the packages enter the country unscreened. Reporting by David Lawder, Andrea Shalal and Susan Heavey; additional reporting from Kym Madry and Ana Isabel Martinez at Mexico City and Susan Heavey and Andrea Shalal in Washington; editing by Alistair Bell
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Eurazeo raises $300 million for the Planetary Boundaries Fund
French private equity investor Eurazeo announced that it had raised a total of 300 million euros (314.64 million dollars) for a new fund investing according to the limits of our planet. It also made its first investment into an agricultural pest control firm. Managing Partner Sophie Flak said that the money raised by the Eurazeo Planetary Boundaries Fund at its first closing, 10 months after the marketing launch of the fund, was 40% of the target of 750 millions euros. Investors from various institutions, such as insurance companies, asset management firms and family offices, made the demand. Flak explained that "our fund isn't based upon regulation or politics. It's based upon the physical world... You're seeing droughts, storms and fires." This fund is about the challenges of the physical world. The fund has an advisory panel of experts in economics and the environment who use a "buy and build" strategy to help scale-up small and medium-sized businesses. The first investment of the fund was Bioline AgroSciences. This company designs, manufactures and markets biologically-based solutions that prevent pests from destroying crops like berries, flowers, and vegetables. The fund, along with family-owned impact fund Aurae will own a majority stake. This company operates six factories in the United States as well as Britain, France and Spain.
El Salvador closes world's largest debt buyback for river conservation.
El Salvador has sealed a. newstyle debt buyback deal where savings produced will be used. to fund preservation of the country's primary river and its. watershed.
The deal, worth over $1 billion, will raise cash to fund. preservation and water security in the Lempa River watershed.
It marks the first time a nation has actually embedded watershed. conservation and water security promises into a debt buyback,. officials say, and belongs to efforts by the Central American. country's federal government to reduce its heavy external debt. problem.
It is the largest funding commitment a country has produced. preservation as part of a debt-for-nature swap, a press. statement said.
INCREASINGLY POPULAR
Debt-for-nature offers are ending up being significantly popular for. poorer nations to pay for conservation. Bonds or loans are. purchased and replaced with cheaper financial obligation, with savings used for. environmental protection. In El Salvador's case the bonds have. been replaced by a loan from JPMorgan.
A number of nations, from Belize to the Seychelles, have. completed debt-for-nature deals to fund preservation of oceans. and marine life however this is the very first recent deal with a. freshwater focus, DFC CEO Scott Nathan said in the declaration.
JPMorgan set up a $1 billion loan to El Salvador to enable. the nation to buy back $1.031 billion of its outstanding bonds. at a discount rate to their issuance value.
This cost savings allowed El Salvador to realise more than $352. million, $350 countless which it will put towards the Rio Lempa. Conservation and Restoration Programme.
The cash will be used by water and ecological agencies. to stop river pollution, protect biodiversity, address water. scarcity dangers and help promote regenerative farming in the. Rio Lempa watershed.
This debt conversion represents the most enthusiastic and. impactful environmental action in El Salvador's history,. President Nayib Bukele said in the release. With this financial obligation. conversion, we aim to transform the environmental and financial. future of El Salvador.
A $1 billion political risk insurance coverage offer from DFC, the. U.S.' advancement financing institution, and a $200 million. standby letter of credit from CAF, the Development Bank of Latin. America and the Caribbean, likely implied JPMorgan might use the. loan at a lower expense.
Debt-for-nature swaps are still reasonably specific niche instruments. but can do wonders for countries with the right debt. characteristics, a great conservation project planned and back-up from. credit assurance companies, stated Olga Fedosova, a partner at law. company White & & Case that dealt with the offer.
(source: Reuters)