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Barrick requests World Bank Court to intervene in Mali proceedings
Barrick Mining asked the World Bank arbitration tribunal to intervene in the legal proceedings in Mali as it faces the possibility that the Loulo-Gounkoto Mine could fall under the Mali government's control. Barrick made its move as a Mali court is set to rule on Tuesday, June 2, on the government request to place the Canadian miner’s gold mine in a temporary administration. In the event that the Mali court rules in the government's favor, an individual will be appointed to take control of the mine and reopen the facility. Barrick's Mali gold mine has been closed since January of this year, after Mali confiscated 3 tons of gold due to non-payment. Barrick denies the allegations. Barrick requested "provisional" measures from the arbitral tribunal in a Wednesday filing to the International Centre for Settlement of Investment Disputes. Timothy Foden of the international law firm Boies, Schiller, Flexner said that "provisional measures" means that Barrick applied to the tribunal to have an order that the Mali government refrain from further actions that could exacerbate the dispute. This includes Mali's attempt to place the mine under provincial administration. Barrick didn't immediately reply to an email from. Mali's Mines Ministry also did not reply to an email. Mali, Africa’s third largest gold producer, issued a new code of mining and tightened the grip on its gold mines. Most are run by Western companies. The military-led Government says it wants to increase revenue from the mining industry because it feels that current arrangements are unfair. Foreign multinationals will have to comply with the government's demands in order to continue operating in this gold-rich nation. Barrick is the exception. The company has said repeatedly that it has been investing heavily in the Malian economic system for over 20 years. The company accuses government officials of shifting the goalposts and demanding more money. It also claims that some of its executives have been unfairly detained in an effort to blackmail it. Barrick's Bamako corporate office has been closed by Mali's military government. The mine closure has also led to the layoff of Barrick's contractors. A Mali official said that international arbitration was not necessary and the issue is one of domestic taxation. Foden stated that Mali could ignore the World Bank's decision, even if it ruled in favor of Barrick’s request for a temporary measure. However, Mali might scare off more Western investors. (Reporting by Divya Rajagopal; Editing by Sandra Maler)
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IIR: Nigeria's Dangote Refinery will run at reduced rates until October.
The 650,000-barrel-per-day (bpd) Dangote oil refinery in Nigeria is expected to operate its gasoline-making unit at reduced rates through October after a string of issues in recent months, industry monitor IIR Energy told . About 70% of the capacity of the refinery's residual fluid catalytic (RFCC) unit, which produces 204,000 bpd of gasoline, is being used. IIR reported that the unit was closed from April 7 until May 11 due to damage to part of it, and again from May 15 through May 25 because of a mechanical problem. IIR stated that the full rate of production is not expected until October, when the refinery has completed a 40-day turnaround for reactor and catalyst repairs. IIR announced that the refinery's Continuous Catalytic Reformer will also be closed for seven days beginning June 2 in order to fix leakages. Dangote didn't immediately respond to an inquiry for comment. In January 2024, the refinery built by Nigerian billionaire Aliko Dagote in Lagos began to process crude oil into products such as gasoil and naphtha, and started producing petrol in September. The closure of smaller fuel plants in Europe, and elsewhere, is expected to have a major impact on the global fuel market. IIR stated that some downstream units have yet to begin commercial operations. These include a sulfuric alkylation unit which is scheduled to be operational by mid-June and a unit for polypropylene, which will come online at the end of the month. The industry monitor reported that the refinery's unit for crude processing has been operating at about 80% since mid-March. (Reporting from Shariq Khan, New York; editing by Sonali Paul).
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Attorney General: Three suspects arrested for raiding Libya's oil company
The Attorney General of Libya said that three suspects were detained after allegedly storming Tripoli's state oil company's headquarters. This comes a day before the rival government to the east had threatened to declare force majeure for oil fields and ports due to the assaults. The National Oil Corporation is based in Tripoli under the control of the internationally-recognized Government of National Unity. Although the parallel government in Benghazi, in the east, is not recognised internationally by the international community the majority of oilfields are controlled by Khalifa haftar. The NOC denied that its corporate headquarters were stormed. It called it "completely untrue" and quoted the acting chief of its corporation as saying it was "nothing but a small personal dispute which occurred in reception." The eastern-based government also threatened to temporarily relocate NOC's HQ to "safe cities", such as Ras Lanuf or Brega which they control. The Attorney General said that the public prosecution had reviewed all the evidence, examined the scene and reviewed video footage taken at the time of incident, as well as heard testimonies from those who were present. Attorney General said that the three suspects had been handed over to the Defence Ministry, who was instructed "to arrest any remaining participants in the incident". NOC reported on Wednesday that the national crude oil production in the last 24 hours was 1,389,055 barils per day. This is normal. Libya's oil production has been interrupted repeatedly over the past decade, since the chaos began in 2014 after the country was split between rival authorities east and west in response to the NATO-backed revolt that ousted Muammar Gadhafi in 2011. Ahmed Elumami, Ahmed Tolba and Deepa Babington (Reporting).
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Sources: Creditors of Brazil Braskem are skeptical about Tanure's bid
According to two sources familiar with the situation, the government of Brazil and the major banks that are Braskem's key creditors have so far been skeptical about the bid of businessman Nelson Tanure for a controlling interest in the petrochemical company. Sources who requested anonymity in order to discuss private discussions said that for now, lenders prefer to have a plan to restructure a company, and eventually sell the shares used as collateral to repay outstanding loans. Sources said that the banks were shocked by Tanure’s formal offer to buy a controlling interest in Braskem made on Friday and had yet to meet him to discuss this. Third source said that Tanure was visiting the heads of these banks but had not provided any details about his bid. Financial details of the plan are still being kept under wraps. Tanure stated in a press release that he was committed to Braskem's long-term growth. Sources said that before the proposal was made, banks including Brazil's state-owned development bank BNDES had held discussions with specialized firms such as Geriba Investimentos or IG4 Capital which specialize in alternative investments and special situations. BNDES and IG4 Capital declined comment. Geriba has not responded to requests for comment. The plan was for an investment firm, Braskem, to restructure the company, in order to increase its value, and to allow Novonor's creditors to gradually sell their shares over time. Sources claim that the banks have not finalized any contracts with the investment firms with whom they have been in contact. Sources also said that Brazilian banks are still willing to explore other options and may engage with partners they have not yet approached. After a major scandal involving corruption about a decade back, Novonor (formerly Odebrecht) has been unsuccessfully seeking a buyer for Braskem. It pledged Braskem shares as collateral for 15 billion reais (2.65 billion dollars) in bank loan. Since then, the value of these shares have plummeted. They are now worth less than one-third of the outstanding debt. Novonor confirmed on Friday that it had received a nonbinding proposal by an investment fund connected to Tanure, and signed an agreement. The proposal also stated that it was subject to conditions including completion of negotiations with creditors banks and Novonor fulfilling its obligations to Petrobras, Braskem’s second largest shareholder. Luciana Magnhaes, Luciana Magalhaes and David Gregorio (Editing)
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Sempra Port Arthur Phase 2 receives US approval for LNG export
The Department of Energy announced on Thursday that Sempra’s Port Arthur Phase 2 Project in Texas had won U.S. approval for exporting liquefied gas to Europe and Asia. The first final LNG export approval was given by President Donald Trump, reversing a pause in the approvals ordered by former President Biden to study the environmental and economic impacts of this booming industry. According to U.S. Secretary of Energy Chris Wright, the project is "a significant expansion of a first phase that was already under construction – turning more liquid gold underneath our feet into energy for the American public." Port Arthur LNG Phase II is still awaiting a final investment determination (FID) but will export 1,91 billion cubic feet of gas per day when completed. Port Arthur Phase 1 has begun construction and will begin exporting LNG by 2027. Sempra operates Cameron LNG Export Terminal in Louisiana which exports LNG since 2019. It is also building the Energia Costa Azul Terminal in Mexico which will start commercial export operations for U.S. gas as LNG by 2026. In a recent earnings call, Sempra stated that it expected to have a final investment decision (FID) by the end the year. However, "uncertainty regarding the macroeconomic climate may impact the timing of product developments." (Reporting and editing by Lisa Shumaker; Additional reporting by Curtis Williams, Houston)
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Nikkei reports that China will resume seafood imports to Japan once the fears over Fukushima thaw.
The Nikkei reported Friday that China and Japan had agreed on procedures for resuming imports of Japanese fisheries products. This could be a sign that a trade embargo is ending, according to a source in Japan's ruling political party. The agreement was reached at a bilateral meeting between officials on Wednesday in Beijing. Both governments are working to reduce tensions resulting from the release of treated wastewater by Fukushima Daiichi Nuclear Power Plant in 2023. The report stated that under the agreed-upon measures, Japan would register its fishery processing plants with Chinese authorities and export shipments would include certificates of inspection confirming the lack of radioactive substances, such as Cesium-137. Nikkei reported that China will likely announce in the near term the resume of imports of seafood from prefectures in Japan outside the Fukushima area. China banned Japanese seafood imports from 2023. This ban came shortly after Tokyo started releasing treated wastewater to the plant that was affected by the disaster. The move triggered a diplomatic and economic backlash. The Japanese and Chinese embassies did not respond immediately to a comment request. (Reporting from Rishav Chaterjee, Bengaluru. Editing by Vijay Kishore.
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Drought declared in northwest England despite sunniest spring ever
Britain announced on Thursday that the northwest part of England is now officially in a drought after the driest spring start in decades led to a decline in water levels in reservoirs and rivers. According to the Met Office, Britain enjoyed its sunniest spring in history from March through May. However, the lack of rain has caused some concern about water conservation. The Environment Agency (EA), said that reservoir storage levels in north-west England, home to the beautiful Lake District and the cities of Manchester & Liverpool, were lower than in 1984-1995 and 2022. Scientists claim climate change makes droughts and summers drier more common. The EA stated that it would make sure water companies, such as United Utilities in the northwest, were ready to help customers reduce demand, if necessary. Emma Hardy, Water Minister, said that she was doing all in her power to hold United Utilities accountable to ensure the supply of water needed in the region is regular. The agency reported that ministers will convene the National Drought Group meeting on Thursday, to assess the current situation in the country. (Reporting and editing by Leslie Adler; Sachin Ravikumar)
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State Department overhaul will eliminate thousands of jobs and push for 'Western Values'
The Trump administration notified Congress on Thursday of its plans to overhaul the State Department. This will result in the elimination of thousands of jobs and the reorientation of the human rights bureau of the agency towards "Western Values" as well as the reorientation of the refugee bureau for the return of migrants back to their country of origin. The shake-up is part of a historic push by Donald Trump to shrink federal bureaucracy, and align the remaining staff with his "America First' priorities. Secretary of State Marco Rubio announced the reorganization plan in April. He said that the State Department took into consideration the feedback from lawmakers. The plan was designed to reduce the bureaucracy of a department, which he claimed had grown without producing results. Rubio stated in a press release that the reorganization will lead to a Department more agile, and better equipped to protect Americans around the globe while promoting America's interests. According to the notification sent by the Congress, the review of which has been conducted, more than 300 of 734 offices and bureaus will be streamlined or eliminated. In a notification, it was stated that the department planned to reduce its domestic civil service and Foreign Service workforce by 3,448 employees, from 18,780 workers employed on May 4, according to the notification. The notification said that the department plans to cut thousands of U.S.-based workers, reducing its civil service and foreign service domestic workforce by 3,448 people out of 18,780 employees employed as at May 4. On Thursday, no job cuts were announced for local employees or U.S. personnel stationed overseas. "NATURAL RIGHTS" AND "FREE LABOR" Along with offices that monitor war crimes and conflicts in the world, the role of the top official responsible for civil security, democracy and human rights, will be eliminated. The new undersecretary for foreign aid and humanitarian affairs, confirmed by the Senate, will supervise the Bureau of Democracy, Human Rights and Labor, reorganized in order to "ground Department's values based diplomacy on traditional Western conceptions of freedoms core." It is headed by the deputy assistant secretary of "Democracy and Western Values." A summary of the notification stated that the new position of undersecretary will "ensure the efficiency and oversight of the delivery of foreign aid in an era post-USAID." Trump officials began with the Department of Government Efficiency, overseen by Elon Musk. Dismantling The U.S. Agency for International Development was established shortly after Trump's inauguration in January. The new bureau will have an Office of Free Markets and Free Labor that will promote the free-market and an Office of Natural Rights which will focus on what Trump sees as a "freedom of speech backsliding" in Europe and other advanced nations. Rubio said on Wednesday that foreign officials whom the Trump administration believes to be involved with censorship would be punished. Ban on visiting the U.S. The summary stated that the Bureau for Population, Refugees and Migration would also "substantially be reorganized" to support the Administration's efforts in returning illegal aliens back to their countries of origin or legal status. As we reported earlier in the month, the Refugee Bureau will also be responsible for U.S. responses to major disasters abroad. The notification from Congress also confirms that the Bureau of Energy Resources is to be renamed. absorbed The Bureau of Economic, Energy and Business Affairs will be merged. The notification also stated that offices working on climate change policies will be eliminated. The officials have stated that closing offices doesn't necessarily mean that an issue has been dropped as a priority. Some functions will now be performed by other departmental officials. (Reporting and editing by Doinachiacu, Philippa Adler, Leslie Adler, Doina Chiacu and Humeyra Pamuk; Reporting by Simon Lewis and Humeyra Pamuk)
Sources say that OPEC+ may decide to raise July prices this week after discussing 2027 baselines.
OPEC+ will discuss a mechanism to set baselines for production in 2027 at a Wednesday meeting, delegates reported. Separate talks scheduled for Saturday may agree on a further accelerated increase of oil output for July.
Since a few years, the group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, such as Russia has been discussing the new baselines, or production levels, from which each member can make cuts or increase.
Baseline issues can be controversial, because some countries, such as the United Arab Emirates, Iraq, and others, have increased their oil producing capacity, arguing for higher quotas. Other members, such as Africans, have experienced a decline.
Two delegates stated that the 22-member group may adopt on Wednesday a mechanism for establishing the baseline assessment of 2027. Sources said that the Wednesday meeting would not affect output policy.
Eight OPEC+ member countries who are gradually increasing output will meet on Saturday and could agree to a July output increase of 411,000 barrels a day, just as they did in May and in June, according to the delegates.
Due to the sensitive nature of the subject, all sources declined to provide their names.
OPEC+ agreed to three levels of production cuts starting in 2022. Two are in effect until the end 2026, and the eighth member is unwinding the third.
The production policy could theoretically include the 2027 baselines when all current output reductions expire.
In April, oil prices dropped to a 4-year low below $60 per barrel as OPEC+ announced it would increase its production in May. Meanwhile, tariffs imposed by President Donald Trump raised fears of global economic weakness. Since then, it has recovered to around $65.
Sources told us earlier this month that, on top of a July output increase, the eight countries may also unwind the rest of the latest cut by the end October. Reporting by Alex Lawler and Ahmad Ghaddar; Editing by Emelia S. Sithole-Matarise and Kirsty Donovan
(source: Reuters)