Latest News
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CORRECTED OFFICIAL - Chevron to reduce 200 jobs in Texas
According to the Texas Workforce Commission, Chevron is laying off 200 workers in Texas. The U.S. oil company plans to reduce its global workforce to up to 20% by 2026. The layoffs will occur in Midland County where Chevron operates in the Permian basin, the largest oilfield in the United States. According to the notices, the layoff date will be July 15. Chevron announced in February that it would reduce its global workforce to cut costs. Chevron is under increasing pressure since then. Its license to operate in Venezuela has been revoked, and the planned $53 billion purchase of oil producer Hess, which was to be completed in February, hangs in limbo due an arbitration dispute. According to a March filing, the company had previously given notice that it planned to lay off at least 60 employees in California on June 1. Sheila Dang, Houston; Cynthia Osterman, editing.
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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)
Russian Finance Minister returns to idea of adjusting the oil price budget rule
The Finance Minister Anton Siluanov stated on Wednesday that an adjustment to the $60 oil price cut-off for Russia's Budget Rule should be considered. This could affect Moscow's capacity to increase spending and accumulate cash reserves.
According to the budget rule the Finance Ministry can sell foreign currency from the National Wealth Fund for rainy days in order to cover any shortfalls in oil and gas export revenues, or purchase it if there is a surplus.
Siluanov, who had earlier argued in favor of a change to the cut-off prices, has recently ruled it out for the budget for the next three years.
In response to a question from a legislator on Wednesday about Russia's diminishing reserves, he seemed to switch tack again, saying that the issue would be considered when formulating budget policies.
Siluanov stated that "we need to consider whether we should, when preparing the budget for the next medium-term period, look at the price cut-off level... and to what extent this corresponds to today's levels which allow us to not only ensure the preservation of National Wealth Fund but also its replenishment."
Since the Russian invasion of Ukraine in February 2022, Russia's fiscal buffers are shrinking. Moscow has been using its wealth fund to finance deficits and support government-owned enterprises. On May 1, the fund's liquid assets were $40.4 billion, down from $112.7 before the invasion.
Oil prices, which are the foundation of Russia's export oriented economy, allow Russia to put money aside. However, with Brent futures at about $60 per barrel and Urals crude falling even further, Moscow's finances have been under pressure.
The lower price would enable Russia to save petrodollars. However, analysts note that this may not be possible, given the amount of money Moscow is spending on the Ukraine war. Reporting by Darya Kosunskaya, Writing by Alexander Marrow, Editing by Alison Williams & Helen Popper
(source: Reuters)