Latest News
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US Judge authorizes sale to Elliott of Citgo parent shares
The sale of shares of Citgo Petroleum, the Venezuelan-owned parent company of Citgo Petroleum, to Elliott Investment Management was approved by a U.S. Judge on Saturday. This follows his approval this week of the $5.9 billion offer from the company at a court-organized bid to pay Venezuelan-related creditors. The sale order is a major legal step that wraps up a two-year auction to pay 15 or more creditors for defaults on debt and expropriations. Citgo Holding, Citgo's parent company, was found liable by the Delaware court for Venezuela's debt. This opened the door to over a dozen other creditors joining the auction. A court officer who was overseeing the auction had recommended Elliott's Amber Energy earlier this year, after recommending an offer by Gold Reserve, a rival bidder. This change led to a flood of objections, challenges and complaints against Amber's bid. Judge Leonard Stark in Delaware overruled them. Venezuela and other parties to the case have announced that they will appeal Stark’s decision to confirm Amber's bid. In his order, Judge Stark stated that "the consideration provided by the purchaser under the stock purchase contract is fair, reasonable, and adequate consideration for the PDVH share and constitutes a price adequate for the purchase of PDVH's shares under the Sale Procedures Order." If the transaction is successful, more than a half-dozen creditors will receive the proceeds of the auction. Amber announced earlier this week that the sale would close in 2019 pending regulatory approvals and U.S. Treasury Department approvals. These creditors include ConocoPhillips, Crystallex, Rusoro Mining and industrial conglomerates O-I Glass, Koch and O-I Glass. The judge stated that the buyer would not be liable for Citgo, Venezuelan oil company PDVSA or the Republic after the sale. The judge said that the buyer would not be liable for Citgo's ultimate parent, Venezuelan oil company PDVSA or the Republic.
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How would Venezuela's military react to an attack by the US?
Donald Trump, the U.S. president, said that on Saturday airspace surrounding Venezuela and above it should be "closed completely", but he did not give any details. Washington is continuing to increase pressure on President Nicolas Maduro’s government. Trump has said repeatedly that U.S. attacks on alleged drugs boats in the Caribbean, Pacific and South America, which have claimed the lives of more than 80 people could lead to land action. He has also held a phone call with Maduro, and discussed the possibility of a U.S. trip by Venezuela's president. WHAT ARE VENEZUELA'S MILITARY CAPABILITIES? Six sources familiar with Venezuelan capabilities claim that the U.S. army dwarfs Venezuelan's. Venezuelan forces are crippled by low wages, a lack in training and outdated equipment. Even though Maduro has been in power since 2013 and enjoys military loyalty, rank-and file soldiers only earn $100 per month in local currency. This is less than a fifth of the amount that studies estimate an average family would need to cover its basic needs. According to sources, desertions could increase if the U.S. military attacks. Venezuelan troops have primarily faced unarmed civilians in street protests. Maduro claimed that 8 million civilians were training to be militia members, but a source said only a few thousand intelligence personnel, supporters of the ruling party and militia members would actually participate in defensive action. Lacking is the military equipment, which is mostly Russian and old. Caracas purchased 20 Sukhoi jet fighters in the 2000s. However, they are considered inferior to U.S. B-2s. Venezuela also has outdated Russian helicopters, tanks, and shoulder-fired rockets. How would VENEZUELA respond to an attack? Sources and documents viewed by us show that Venezuela is planning to mount a guerrilla resistance or create chaos if the U.S. launches an air or ground assault. High-ranking officials have referred to the response publicly, but without providing details. They refer to it by calling it "prolonged opposition", which would involve small military groups at over 280 locations committing acts of sabotage or other guerrilla techniques. Venezuela's 5,000 Russian Igla missiles have been deployed. Maduro praised them recently on Venezuelan state television. Sources said that military orders were given for units to disperse in different locations and hide if an attack occurs. Sources say that the second strategy, which is called "anarchization", and which officials are not aware of, uses intelligence services to use armed supporters of the ruling party in order to cause chaos in Caracas, and thus make Venezuela ungoverned. DO YOU KNOW IF THERE ARE OTHER ARMED ACTORS IN VENEZUELA? The National Liberation Army, a Colombian guerrilla force, operates in the western part of Venezuela. This area is also the center for coca cultivation, the main ingredient of cocaine. Often, supporters of the ruling party, collectives or colectivos as they are also called, mobilize on motorcycles in order to face protesters. Sometimes they are armed. Venezuelan opposition groups and NGOs as well as Washington and certain Latin American governments accuse Maduro of having ties with drug trafficking organizations, which are also accused by some of violence. The Venezuelan government denies any such links, and claims that the U.S. wants to change the regime in Venezuela so as to control its vast oil reserves. (Reporting and Editing by Alexander Smith).
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Church leader: Nigerian abductors killed a priest after one month of captivity
The head of the Church of Nigeria confirmed that an Anglican priest who was kidnapped last month in the northwest of Nigeria has died in captivity. This comes as Nigeria is reeling from a wave of abductions and murders which has drawn the condemnation of Washington. Archbishop Henry Ndakuba stated that Venerable Edwin Achi was killed after spending a month as a captive. He had been taken with his wife, daughter and son from their Kaduna home on October 28. In a late-Friday statement, Ndakuba stated: "With deep sorrow, we announce that our beloved priest... was brutally killed after suffering a month long abduction." The church reported that gunmen demanded at first a ransom payment of 600 million Naira (416,00) to release Achi, but later reduced it to 200,000,000 Naira. His wife and his daughter are still in captivity. Police in Kaduna have not responded to any requests for comments. The killing occurs amid a wave kidnappings across northern Nigeria. Armed gangs kidnapped 25 schoolgirls from Kebbi State on November 17, and days later more than 300 students and staff from a Catholic School in Niger State, prompting the closure of schools in several states. Bola Tinubu, the president of Nigeria, ordered the recruitment and cancellation of foreign trips in order to deal with what he termed a "national crisis." These attacks have also caused international concern. Donald Trump, the U.S. president, called Nigeria's situation "a disgrace". He warned that Washington would halt its aid and even take military action against Nigerian authorities if they failed to stop violence against Christians. Ndakuba called on the government and security services to "identify the treacherous sponsors and financiers, and enablers" of the wave of terror and demanded the immediate release Achi's daughter and wife.
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Russian drones and missiles injure 11, kill 1 in Kyiv
Russian drones, missiles, and explosions caused fires in Kyiv's districts early Saturday morning, according to officials. One person was killed and 11 others injured. This was the second attack in four days on the Ukrainian capital. On Tuesday, seven people were killed when Russian forces fired a barrage with drones and missiles. Tymur Tkachenko said that six locations in Kyiv, a city of three million people, were struck by explosions on Saturday. Apartment buildings and other dwellings were also affected. The military administration reported that the remains of a resident were recovered from the rubble in an apartment building which had been set on fire. The same building was also the site of a child's rescue. Vitali Klitschko, the mayor of the city of Kiev, said that a strike also caused a fire to start in the lower levels of an apartment building west of the centre. A second fire was also quickly put out in the central district. After 5 am (0300 GMT), a new alert was sent out in the capital for drones approaching. Online pictures showed an apartment building on fire, and emergency crews working in the streets and alongside damaged buildings. (Reporting and editing by Ron Popeski, Diane Craft, Tom Hogue and Chris Reese)
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Rosneft, Russia's oil company reports 70% drop in nine-month net profit
Rosneft, Russia's biggest oil producer, reported a 70% drop in net income from January to September, falling by $3.57 billion or 277 billion Russian roubles. The company attributed the decline to high interest rates and cheaper oil, as well as a stronger rouble. Shell and TotalEnergies have seen their quarterly profits fall due to lower oil prices. Rosneft stated that the increased "anti-terror" security was putting additional pressure on its results. The company didn't elaborate on specific security measures. Ukraine has increased drone attacks against Russia's energy infrastructure. Rosneft reported that its revenues dropped 17.8% to 6.29 trillion rubles in the first nine-month period of the year. The high key interest rate of the Bank of Russia continues to negatively impact the profit. Rosneft also said that non-monetary factors and special events had a negative impact on the indicator's dynamic during the reporting period. EBITDA (earnings before taxes, depreciation, and amortization) decreased by 29.3% for the period to 1.6 trillion Russian roubles.
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Petrobras cost-cutting could affect new wells in the Equatorial Margin Region
Petrobras' CEO stated on Friday that the company could reconsider some of its 15 planned wells in the "Equatorial Margin" because Brent oil prices will likely remain low for the next few years. Petrobras has cut its investment plans for the period 2026-2030 by $500 million up to $2.5 billion. Magda Chambriard, Petrobras' Chief Executive Officer, said at a recent press conference that "we had a large number of wells in the Equatorial margin; some were prioritised, while others were, say, deprioritized based on the Brent crude oil price." She did not specify how many wells would be examined. Petrobras is drilling in an environmentally sensitive region off the coast Amapa, known as Foz do Amazonas. Fernando Melgarejo, the Chief Financial Officer of Petrobras, told journalists that the company's cuts would also affect the extraordinary dividends paid to shareholders. He said the likelihood of distributing extra cash is low in the future. Chambriard stated that despite the cuts, Petrobras will maintain its oil production around 2.6 or 2.7 millions barrels per day up until 2034, after ramping it back up in 2027. Petrobras' new business plan expects it to reach a peak oil production level in five years. Reporting by Fabio Téixeira and Marta Nogueira from Rio de Janeiro, writing by Andre Romani and editing by Kyrry Madry and Paul Simao
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Silver sets new record for silver; gold heads to fourth consecutive monthly gain
Gold spot rose 1% on Friday to a new two-week-high, amid expectations that the U.S. Federal Reserve would cut interest rates in the coming months. Silver also hit a record high. Gold spot was up by 1.3% at $4,210.94 an ounce as of 03:11 pm EST (20:11 GMT) after hitting its highest price in November 13 earlier this morning. Bullion is expected to rise 5.2% for the month and 3.6% for the week, marking a fourth consecutive increase. Silver reached a new record high at $56.78 an ounce. This is up 6.1% in the session, and 16.6% over the course of the month. After an outage that lasted for several hours at CME, trading in foreign exchange, commodities and futures, including Treasuries, stocks, and Treasuries, resumed around 8 a.m. U.S. Gold Futures for February Delivery settled 1.3% higher, at $4.254.9 an ounce. INVESTORS FOCUS ON FED Bart Melek is global head of commodity strategies at TD Securities. He said that some investors are returning to gold because they believe the Federal Reserve will cut rates. Gold is more likely to perform well when interest rates are low. The recent dovish comments from Fed Governor Christopher Waller, and New York Fed president John Williams, coupled with the softer economic data after the recent U.S. Government shutdown, has strengthened expectations that central bank rates will be cut next month. The traders now see 87% of a chance that the rate will be cut in December. This is up from 50% just last week. Jim Wyckoff is a senior analyst at Kitco Metals. He said that "the technical charts have become more bullish over the last week or two, which has encouraged chart-based investors to bet on the long side of silver." This week, gold demand in major Asian markets was muted as high prices slowed retail purchases despite the beginning of India's festive season. The removal of the tax exemption for gold purchases in China has slowed consumer demand. Palladium gained 0.8%, to $1450.16, and is set to gain 5.6% for the week. Platinum rose 4%, to $1672.50. (Reporting from Bengaluru by Pablo Sinha; Additional reporting by Sarah Qureshi, Editing by Rod Nickel and Paul Simao; Vijay Kishore).
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Silver sets new record for silver; gold heads to fourth consecutive monthly gain
Gold spot rose 1% on Friday to a new two-week-high, amid expectations that the U.S. Federal Reserve would cut interest rates in the coming months. Silver also hit a record high. Gold spot was up 1.6% at $4,222 an ounce as of 01:44 pm EST (18.44 GMT), the highest price since 11 November. It was also set to gain 3.9% per week. Bullion is on course to record a 5.5% increase this month and is set for its fourth monthly gain. Silver reached a new record high at $56.52 an ounce. This is a 5.5% increase for the session, and a 16% gain for the entire month. After an outage that lasted for several hours at CME, trading in foreign exchange, commodities and futures, including Treasuries, stocks, and Treasuries, resumed around 8 a.m. U.S. Gold Futures for February Delivery settled 1.3% higher, at $4.254.9 an ounce. INVESTORS ARE FOCUSED UPON THE FED Bart Melek is the global head of commodity strategies at TD Securities. He said that some investors are returning to gold because they believe rates will be cut by the Federal Reserve. Gold is more likely to perform well when interest rates are low. The recent dovish comments from Fed Governor Christopher Waller, and New York Fed president John Williams, coupled with the softer economic data after the recent U.S. Government shutdown, has strengthened expectations that central bank rates will be cut next month. The traders now see 87% of a chance that the rate will be cut in December. This is up from 50% just last week. Jim Wyckoff is a senior analyst at Kitco Metals. He said that "the technical charts have become more bullish over the last week or two, which has invited chart-based investors to be on the long side of silver." This week, gold demand in major Asian markets was muted as high prices curbed the retail buying of the precious metal despite India's wedding season. The removal of the tax exemption for gold purchases in China has slowed consumer demand. Palladium rose 0.5%, to $1.445.20, and is set to gain 5.2% for the week. Platinum was up 3.2% at $1,659.83. (Reporting from Pablo Sinha, Bengaluru Editing done by Rod Nickel and Paul Simao)
International prepare for early ditch of coal power hits Indonesia difficulty
A G7backed push to close coal power plants in emerging markets is facing further delays after a July due date passed without a deal on the early closure of an Indonesian power plant that would be the first to shut under the effort.
The push versus coal comes under the Simply Energy Transition Collaborations (JETPs) with Indonesia, Senegal, South Africa and Vietnam that require billions of dollars in financial investments, grants and loans from G7 members, multilateral banks and personal loan providers to help them shift to low-carbon economies.
Cutting emissions from coal, the dirtiest fossil fuel, is seen as an important component of the JETPs if the world is to stave off the worst effects of environment modification.
However a deal on the early shutdown of coal power plants in South Africa stays elusive amidst its struggles with rolling blackouts, and wish for proof of concept has actually turned to Indonesia's 660 megawatt Cirebon-1 plant in West Java province, 220 km (140 miles) east of capital Jakarta.
The legal and financial implications of closing Cirebon-1 are a stumbling block though. Jakarta is stressed, too, that costs for replacing it with renewable energy might reach $1.3. billion, mostly in subsidies to cover more costly sustainable. power generation, according to the financing ministry.
A new federal government is taking workplace in October too and. that might further damage the possibility of a deal on Cirebon, stated. Fabby Tumiwa, a renewables professional and member of the technical. group encouraging Indonesia on its JETP.
If this is not signed before Oct. 20, I am worried that. this matter will be overlooked, Fabby said, citing calls by. President-elect Prabowo Subianto for self-sufficiency and energy. security that recommend a dedication to coal, which creates. two-thirds of Indonesia's electrical power.
Prabowo, who takes workplace on that date, has not talked about. Cirebon and has actually hardly ever discussed his energy policy, though the. retirement of coal power is mentioned in his project pledges.
Prabowo's group has actually not responded to ask for comment.
Under Indonesia's JETP, richer nations have vowed $20. billion to assist the Southeast Asian country with its energy. shift, although little of that cash has actually been paid out.
LEGAL CONCERNS
Earlier this month, Financing Minister Sri Mulyani Indrawati. stated the outbound federal government was trying to close the Cirebon. offer as quickly as possible, without giving information.
David Elzinga, team leader for the Asian Development Bank's. local Energy Transition Mechanism programme that is working. on the early shutdown plan, said his group was looking for a. binding offer on Cirebon acceptable to both the outgoing and. inbound administrations.
Indonesia has actually positioned itself to be a leader ... It's. actually important now that we get the deal done, Elzinga said.
An offer on Cirebon is crucial for the ADB's local ETM. programme as it prepares comparable deals in countries including. Vietnam and the Philippines, in addition to for other plants in. Indonesia.
To arrive, state energy Perusahaan Listrik Negara (PLN). and plant operator PT Cirebon Electric Power (CEP) require to reach. a brand-new power purchase agreement, which they failed to do by July,. CEP Director Joseph Pangalila informed Reuters.
The need for stronger legal securities and a clear road map. for retiring coal plants was the primary problem, PLN said, given. that power generation expenses might increase by nearly 90%.
PLN directors likewise fear an offer could expose them to future. criminal charges if anti-graft detectives see the transaction. as straining the state with losses, JETP consultant Fabby said.
Rachmat Kaimuddin, deputy minister overseeing power. infrastructure, acknowledged this at a current forum, saying. stakeholders were considering the legal repercussions that might. emerge from any closures.
If we're not careful, some individuals can get into difficulty. due to the fact that it can produce what they call state loss, he stated.
In June, a former president of state energy firm. Pertamina was sentenced to nine years in jail for signing a. long-term gas contract that a corruption court stated triggered state. losses of $114 million.
OTHERS TO FOLLOW
We are anxious that it needs to get done, however at the same. time what is necessary is that the first transaction be carried out in. the best possible way, stated Ramesh Subramaniam, ADB director. general and head of the bank's sectors group.
A variety of personal banks are lined up to invest and a. series of new offers could likewise be started as soon as Cirebon is. done, with the ADB having currently took a look at about 30 other. plants in Indonesia, he said.
Although this has taken some time, we have actually found out a lot ... and. our really clear sensation is the next ones to come will be. significantly easier.
Cirebon-1 is a relatively new plant that started up in 2012. A. offer would imply it stops operations in 2035 rather of 2042.
Regardless of running cleaner than older plants, emissions from. Cirebon and others around Jakarta are frequently blamed for. Indonesia's chronic contamination, and a few of the locals in. neighbouring fishing villages would be happy to see it go.
Fisherman Amin, 64, blamed the plant and coal unloading at. its jetty for contamination and a shortage of fish in close-by waters.
When they first opened, the water was fine, however it ended up being. significantly murky. The green mussel farms here didn't have any. harvest in the past two years, he said.
From the beginning of construction, I was against it.
(source: Reuters)