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Norway's Norges will vote for three Elliott nominations in Phillips 66 Board fight
Norway's sovereign fund has said that it will vote for three out of Elliott Investment Management’s four directors in a bitter fight over board seats at Phillips 66. Norges Bank Investment Management - one of Phillips 66’s 10 largest shareholders - detailed its plans in a table posted on its website. It said it would support former ConocoPhillips executives Brian Coffman, Sigmund Cornwallelius, and former Targa Resources executive Michael Heim. Phillips 66 shareholders will decide on the winner of Wednesday's annual meeting. Elliott wants to see shareholders elect four new directors who will help to overhaul corporate strategy. Elliott is pushing for the company to sell off assets, improve its performance in its refining operations and enhance its corporate governance. Phillips 66 tells investors that its strategy works and that none the activist hedge fund director candidates is needed. Three prominent U.S. advisory firms, Institutional Shareholder Services (ISS), Glass Lewis and Egan-Jones, who often make voting recommendations that influence shareholder decisions on controversial issues such as board elections, have thrown their support behind Elliott. They urged investors elect three, if not four, of the hedge funds candidates. (Reporting and editing by Mark Porter, Paul Simao, and Svea Herbst Bayliss)
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Kazakhstan's oil production rises 2% this May, defying OPEC+
A source in the industry said that Kazakhstan's oil output increased by 2% during May. This is a significant increase, which defies the pressure of OPEC+ to reduce Kazakhstan's production. Kazakhstan has consistently breached the OPEC+ production quotas. The country cites its difficulty in telling Western oil giants such as Chevron or ExxonMobil to reduce their plans. OPEC+ has confirmed that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a collective known as OPEC+ decided to increase production in order to punish those members who did not adhere to the curbs. This was done to add downward pressure on the international oil price. Kazakhstan's oil output fell 3% in the month of April, but it still exceeded its OPEC+ quota. The energy ministry of the country did not reply to a question about production figures for May. Separately, it said in an e-mail that the production of the largest Tengiz oil field had reached the planned level. This meant the production for the country would not be increasing this year. The emailed comments continued, "Kazakhstan takes all measures to comply OPEC+ obligations as well as compensate for excess production." According to an industry source who spoke under condition of anonymity because of the sensitive nature of the situation in Kazakhstan, the country's crude production, excluding the gas condensate produced, averaged 1,86 million barrels of oil per day from May 1-19. This included 932,000 bpd for Tengiz. The output of Kazakhstan was reduced from 1.88 millions bpd to 1.82 million in March. Kazakhstan's OPEC+ quota rose from 1.473 to 1.486 millions bpd under the latest OPEC+ deal. The energy ministry of the country has stated that it is committed to OPEC+. It said that it would compensate for its overproduction by reducing the cumulative production by 1.3 millions bpd before April 2026. In addition, it stated it would put national interests ahead of those of OPEC+ in deciding on the production levels. Western oil majors such as Shell, TotalEnergies, Eni, ExxonMobil, and Chevron are involved in Kazakhstan oil projects. "We expect Kazakhstan to stabilize its production at around 1.8m bpd. Abu Dhabi Commercial Bank stated in a report that officials have indicated limited flexibility to lower output due to the fact that international firms control the field. (Reporting in Moscow, with additional reporting from Dmitry Zhdannikov. Editing by Guy Faulconbridge & Barbara Lewis).
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Ukraine wants G7 to lower price cap on Russian oil to $30 per barrel
Andriy Sibiha, the Ukrainian Foreign Minister, said that Ukraine wanted the Group of Seven Advanced Economies to lower its price limit on Russian oil shipped by sea to $30 per barrel. The G7's current price cap is $60 per barrel. This was imposed because of Russia's conflict in Ukraine. Sybiha, a journalist from Brussels, told reporters that the reasonable price cap for oil is 30 dollars. The European Union (EU) and Britain (UK) announced new sanctions against Russia on Tuesday. They said that the sanctions would target the "shadow fleet" in Moscow of oil tankers, financial firms and other companies which have allowed it to avoid being affected by the other sanctions imposed due to the conflict. Britain and the EU also said that they would work together to lower the cap on oil prices, which now imposes a much smaller discount on Russian crude oil due to the fall in global oil prices this year. EU officials who were briefed about the discussions have stated that the EU will suggest a price limit of $50 per barrel. Separately, Ukrainian President Volodymyr Zelenskiy stated that he spoke with European Commission President Ursula von der Leyen Tuesday and expressed his gratitude for the recent sanctions. "Russian oil and energy trade infrastructure are the most painful to Russia and, therefore, most useful for peace," wrote he on Telegram. The more pressure on Russia the more motivation Moscow will have to make real peace, he said. This was a day after U.S. president Donald Trump met with Russian President Vladimir Putin, but without a promise for a ceasefire to be made in Ukraine.
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17 injured in fire at Chevron platform off Angola
In a joint statement, the Angolan government and Chevron said that 17 people, including four serious injuries, were injured when a fire broke in the early morning hours of Tuesday on the deep-water Benguela, Belize, Lobito, Tomboco oil platform. Investigations are currently underway to determine the cause of a fire that occurred on the basement level of the multi-storey production platform of Block 14 in the Block 14 concession, some 60 miles (97 kilometers) off the coast of Cabinda. Angola's National Agency for Petroleum, Gas and Biofuels issued a statement referring to the injured. Chevron stated that the incident took place at a time BBLT was undergoing an annual maintenance, as part of a planned shutdown. All production had stopped at the site on May 1, this year. According to Chevron, the platform can accommodate 157 people. Chevron reported that the fire started around 3 am (0200 GMT). All personnel has been accounted for.
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Shell CEO, re-elected, responds to BP question by saying bar for deal is high
Shell shareholders re-elected Andrew Mackenzie as Shell's Chair and Wael Sawan as its CEO on Tuesday. When asked about a possible deal with rival BP, Wael Sawan said that the bar was high for mergers and purchases. Media reports Early this month Shell had reportedly been working with advisors to assess a possible acquisition of BP. Shell's annual meeting saw Sawan receive 98.7% support from shareholders, while Mackenzie received 91.4%. Helge Lind, BP's Chair, received only 76% of the vote at its annual general meeting after years with poor share performance. He is expected to step down in the next few months. Sawan echoed previous comments made when asked about reports in the media that Shell was considering a bid for BP. He said Shell's share price at present makes buybacks a particularly attractive way to spend money. Around 20.6% of shareholders voted in favor of a shareholder resolution that asked Shell to provide more information about its strategy for boosting LNG sales and how it is compatible with the goals to reduce carbon emissions. Shell's largest contribution to the energy transformation will be LNG, Sawan told Shell shareholders. He was referring to the possibility of replacing coal with gas to replace more polluting fuels. "LNG will be a low-carbon fuel with a wide range of applications that is essential to the energy transition." Methane is the main component of natural gas. It is a significant greenhouse gas that contributes to climate change along with carbon dioxide. All the other board members were also reelected, including Finance Director Sinead Gordon. (Reporting and editing by Shadia Nasralla)
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Copper falls as tariff uncertainties counteract weaker dollar and China stimulus
The copper price fell on Tuesday, as concerns about the growth of demand and its impact due to U.S. Tariffs overshadowed support from a lower dollar and China's stimulus measures. In official open-outcry trade, the benchmark three-month copper price on London Metal Exchange (LME), was down by 0.1% to $9,519 per metric tonne. The 90-day trade truce that was announced between Beijing and Washington last week provided temporary relief for the market. However, there is uncertainty about what comes next after the pause. The focus is also on a ongoing investigation of possible new tariffs for U.S. imports of copper, which aims to rebuild domestic production. Copper is critical in electric vehicles, military equipment and semiconductors. John Meyer, analyst at SP Angel, said that investors are worried about the volatility of the copper investigation. This investigation has led to a premium in price for COMEX futures contracts compared to LME contracts. Traders have taken advantage of this by diverting copper supplies from other market places into the United States. COMEX registered warehouses are now stocking 77% more than they did a year ago Since the end of March. The U.S. Dollar remained weak, which supported prices. The dollar's weakness makes metals more accessible to holders of other currencies. Meyer said that the weaker dollar in the United States may have encouraged some small-scale stockings of commodities. China has cut its benchmark lending rate for the first since October and many state banks have lowered their deposit rates in order to help the economy, as the trade war continues. The rate cuts were modest, reflecting the gradual nature of monetary easing. Other metals include aluminium, which rose by 0.4% to $2459.5 per ton. Zinc was up 0.8% to $2697; lead climbed 1.1% to $1983; tin grew 0.2% at $32,950, while nickel fell 0.2% to 15 525. (Reporting and editing by Varun H. K. in Bengaluru)
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Enel: Italian electricity bills will include extra costs for licenses
Enel, Italy's biggest power provider, announced on Tuesday that the electricity bill will include extra costs for utilities in order to obtain licence extensions. Last year, the government extended electricity distribution licenses that were due to expire by 2030 for up to 20 more years. In return, it asked utilities to pay a one-off sum to the state, and to present additional investment plans to upgrade grids. There has also been no action taken by the government to date. Enel said in a letter sent to its investors before the annual shareholder meeting on May 22 that the one-off payment as well as the additional grid investment would be reflected in domestic energy bills. The government hasn't yet specified exactly when the one-off payment will be imposed. It was estimated that the average price of electricity in Italy last year was 109 euros ($122.61), nearly twice as much as it is in France. This prompted both industrial and retail consumers to call for action on reducing power bills. The government officials are currently in talks with the utilities, finalising their investment plans and negotiating the one-off payment. The Italian energy authority ARERA stated in March that the payment and investment plans required by utilities would increase their regulated assets base (RAB), giving them an annual return 6.5%. Enel, Italy's largest power distributor, is managed by regional utilities such as ACEA or A2A. ($1 = 0.8890 euro) (Reporting and editing by Alvise Armillini and Susan Fenton).
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India's April infrastructure output growth hits eight-month low
India's infrastructure production grew by 0.5% in April, the slowest rate in eight months. The decline in crude oil prices and refinery products was to blame, according to government data released on Tuesday. The index which tracks eight sectors, and accounts for 40% of industrial production in the country, increased at a revised rate of 4.6% in march, compared with the initial estimate of just 3.8%. In April, crude oil production fell 2.8% compared to a drop of 1.9% in March. Natural gas production also declined by 0.4% compared to a drop of 12.7% in March. Cement production increased 6.7% in April compared with a revised 12.2% rise in March. Steel production rose 3% versus a revised 9.3% increase a month ago. Fertilizer output fell by 4.2% in April, compared with an 8.8% increase in March. Coal production increased by 3.5% compared to just 1.6%. Refinery products fell 4.5% in April compared to 0.2% in March. The core sector's output increased by 6.9% between April 2024 and the fiscal year of 2024-25. (Reporting and editing by Nivedita Bhattacharjee, Savio D’Souza, & Shubham Bhattatra)
Wall Street Journal, May 20,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy.
TXNM Energy, a utility firm, announced that it will be acquired by Blackstone's infrastructure unit in a deal worth $11.5 billion.
Cantor Fitzgerald, a Wall Street firm, said U.S. Secretary of Commerce Howard Lutnick had agreed to transfer his stake to his children and to a group investors. He also divested assets from two subsidiaries in compliance with his U.S. Government ethics agreement.
Regeneron Pharmaceuticals announced that it would purchase 23andMe Holding, a genomics company, for $256M through a bankruptcy sale. The company also promised to prioritise the ethical use DNA data collected from customers who have used ancestry tests and other services.
Wendy McMahon will step down as president and CEO at Paramount Global’s CBS News. She told her staff that the company and she have different views about the future.
Paramount Group. A major office landlord in New York City and San Francisco is looking at strategic alternatives, including the sale of its company.
Equinor of Norway, the developer of the project, announced that the Trump administration had lifted a stop-work order from a month ago on a major off-shore wind facility planned near the coasts New York and New Jersey.
(source: Reuters)