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NYT reports that India will continue to buy Russian oil in spite of Trump's threats
The New York Times reported that Indian officials said they would continue to buy oil from Russia, despite the threats of sanctions that U.S. president Donald Trump had said he would impose. Could not verify immediately the report. Requests for comments were not immediately responded to by the White House, India’s Ministry of External Affairs and Ministry of Petroleum and Natural Gas. In a Truth Social posting last month, Trump said that India could face additional sanctions for purchasing Russian oil and arms. He later stated that he didn't care what India did with Russia. Trump informed reporters on Friday that he heard India was no longer buying oil from Russia. According to the NYT, two senior Indian officials stated that there was no change in policy. One official added that the government "had not given any directions to oil companies" regarding the reduction of imports from Russia. Had earlier reported The Indian state refiners have stopped buying Russian oil over the last week, as the discounts on Russian oil are decreasing. On July 14, Trump threatened Tariffs of 100% on all countries who buy Russian oil, unless Moscow agrees to a major deal for peace with Ukraine. Russia is India's top oil supplier, accounting for 35% of its total supplies. (Reporting by Chandni Shah in Bengaluru; Editing by Raju Gopalakrishnan)
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Deepsea Mira Spuds Third Well in Orange Basin License off Nambia
Oil and gas firm Rhino Resources and its partners have spudded the Volans-1X exploration well in PEL85 license, offshore Namibia, using Odfjell Drilling-managed Deepsea Mira semi-submersible rig.Drilled by the Deepsea Mira in water depths of around 1,200 meters, the Volans-1X well aims to test a new play fairway that could unlock significant development potential and strengthen Namibia’s energy future.Rhino Resources is the operator of the PEL85 license, holding 42.5% interest, with partners Azule Energy, a joint venture between Eni and BP, with 42.5% stake, National Petroleum Corporation of Namibia (NAMCOR) with 10%, and Korres Investments with 5% interests.The Volans-1X is the third successive well to be drilled on PEL85 license by Rhino and its partners.“With the Volans-1X exploration well Rhino and our partners are strategically advancing our understanding of PEL 85's potential. Once again, we’re proud to emphasize our commitment to local upliftment through the execution of another well in Namibia with all associated construction services and equipment uniquely sourced in-country.“Our focus remains on safely delivering a third consecutive well, with an emphasis on operational excellence and environmental stewardship,” said Travis Smithard, Rhino’s CEO.Built in 2019, the Deepsea Mira is a sixth generation dynamically positioned/anchor-moored semi-submersible drilling rig of Moss Maritime CS60E design. It is designed to operate in both benign and harsh environments, with a maximum operational water depth of 3000 meters.The drilling rig is owned by Northern Ocean and managed by the Norwegian drilling firm Odfjell Drilling.
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US: Rwanda and Congo agree on outline of economic integration framework in peace deal
According to the U.S. State Department the U.S. State Department reported that the U.S. State Department and the U.S. State Department announced on Friday an outline of the regional economic integration frame work. The two countries are taking steps towards implementing the peace agreement signed last month in Washington. The framework includes elements on energy, infrastructures, mineral supply chains and national parks, as well as public health. In June, Rwanda and Congo signed an agreement in Washington, DC, at the talks hosted by President Donald Trump. The deal aims to end fighting that has claimed thousands of lives and to attract Western investment worth billions of dollars to a region with tantalum and gold deposits, as well as copper, lithium, and cobalt. The agreement stated that Kinshasa, Kigali and the other parties to the agreement agreed to launch an economic integration framework for the region within 90 days. Sources familiar with the issue said that a draft framework had been approved and now there will be a period of input to gather feedback from the civil society and private sector before the final version is released. The White House is planning to sign the framework at a summit of head of state. The source stated that no date had been set for the meeting. According to a copy of the statement seen by, Rwanda and Congo stated that each country had "full sovereign control" of the exploitation and processing of their natural resources, and acknowledged the importance of developing the mineral processing and transformation capability within each country. Kinshasa sees the looting of its mineral resources as the key factor in the conflict between their forces and the Rwanda-backed M23 M23 rebels of eastern Congo. In May, it was reported that Congolese minerals, such as tungsten tantalum, and tin which Kinshasa accuses the neighbouring Rwanda for illegally exploiting. exported legitimately Sources claim that the U.S. is negotiating a deal to send the shipments to Rwanda to be processed. According to the joint statement, the two countries have committed themselves to making sure that the minerals trade does not provide funding for armed groups, to creating a world class industrial mining sector in this region and to improving cross-border interoperability of mineral supply chains. The two countries also agreed to link new infrastructure with the U.S.-backed Lobito Corridor to demonstrate Washington's desire to gain greater access to resources and counter China. The Ruzizi hydropower project, and the Lake Kivu methane extraction were the only projects specifically mentioned in the U.S. statement despite the emphasis placed by the U.S. on critical minerals. The countries stated that they would prioritize funding for Ruzizi, and work together in order to sustainably exploit methane gas.
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Meta shares AI infrastructure costs with $2 billion in asset sales
Meta Platforms continues to push forward with its efforts to find outside partners who can help fund the massive infrastructure required to power artificial intelligent. In a Thursday filing, Meta Platforms revealed plans to sell $2 billion worth of data center assets to achieve this strategy. This strategy is part of a wider shift in the tech giants' approach to growth. They are no longer self-funding their own growth, but instead they have been forced to deal with the rising cost of data centers and energy for generative AI. The social media giant announced earlier this week it was looking into ways to collaborate with financial partners in order to co-develop its massive capital expenditure for next year. Meta's Chief Financial Officer Susan Li stated on Wednesday during a conference call following the company's earnings. Li stated that while the company will continue to fund a large portion of its capital expenditures internally, certain projects may attract "significant" external financing and provide more flexibility as infrastructure needs change over time. She said that the company had no finalized transactions she could announce. Meta's quarterly report, however, indicates that plans are becoming more concrete. In its quarterly filing on Thursday, Meta said it had approved a plan in June to dispose of certain data center assets and reclassified $2.04 billion worth of land and construction-in-progress as "held-for-sale". The assets would be transferred to a third-party within the next 12 months to co-develop data centers. Meta did not report a loss for the reclassification. The assets are valued at the lower value of the carrying amount or the fair value less the costs to sell. According to the filing, total assets held for sale stood at $3.26billion as of June 30. Meta declined to comment on this article. Mark Zuckerberg, CEO of Facebook, has announced plans to invest hundreds billions of dollars in building "superclusters", or AI data centers for superintelligence. He said that "just one of these covers an important part of Manhattan's footprint." Instagram and WhatsApp's owner raised its forecast for annual capital expenditures by $2 billion on Wednesday, from $66 billion to $75 billion. It reported stronger-than-expected ad sales, boosted by AI-driven improvements to targeting and content delivery. The executives said that these gains helped offset the rising costs of infrastructure associated with its long-term AI initiative. (Reporting and editing by Sayantani ghosh and Marguerita choy in New York)
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Sources say that Trump is looking to bring Azerbaijan and Central Asian nations under the Abraham Accords.
Five sources familiar with the situation say that the Trump administration is in active discussions with Azerbaijan about the possibility of bringing this nation and other Central Asian allies to the Abraham Accords. The goal is to strengthen their current ties with Israel. In the Abraham Accords signed in 2020 and 2021, during Trump's initial term, four Muslim majority countries agreed to normalize their diplomatic relations with Israel, after U.S. mediated. Azerbaijan, and all countries in Central Asia have had long-standing relations with Israel. Therefore, an expansion of the Abraham Accords to include these countries would be largely symbolic. It would focus on strengthening ties such as trade and military collaboration, according to the sources who requested anonymity for private conversations. This expansion would show Trump's willingness to accept pacts less ambitious than the administration's goal of convincing regional giant Saudi Arabia to restore relations with Israel as war rages on in Gaza. The Kingdom has said repeatedly that it will not recognize Israel until Israel acknowledges a Palestinian State. The Arabs are furious over the escalating death toll and the starvation of Gaza due to Israel's military actions and blockade of aid. This has complicated efforts to include more Muslim majority countries in the Abraham Accords. Global anger has been sparked by the war in Gaza where, according to local authorities, over 60,000 people, including tens and thousands of women, children, have died. Canada, France and United Kingdom announced in recent days plans to recognize an independent Palestine. Azerbaijan and Armenia's conflict is another key sticking point, as the Trump administration views a peace agreement between the two Caucasus countries as a condition for joining the Abraham Accords. Sources said that while Trump officials had publicly floated a number of potential participants in the accords the Azerbaijan talks were among the most structured. Two sources said a deal might be achieved within months, or even weeks. Steve Witkoff was the special envoy of Trump for peace missions. He traveled to Baku in Azerbaijan to meet President Ilham Aliyev. Three sources claim that Aryeh lightstone, a Witkoff aide who is a major player in the Abraham Accords discussion, met Aliyev in the spring to discuss this issue. Sources said that as part of the discussion, Azerbaijani representatives had contacted officials from Central Asian nations including Kazakhstan to gauge their interest for a broader Abraham Accords extension. Sources said that it was unclear which other Central Asian countries were contacted, including Kazakhstan, Uzbekistan Turkmenistan Tajikistan Kyrgyzstan, and Uzbekistan. When asked to comment, the State Department did not mention specific countries but stated that expanding the accords was one of Trump's key goals. A U.S. official said, "We're working to get more nations to join." The Azerbaijani Government declined to comment. Requests for comment were not answered by the White House, Israel's foreign ministry or the Kazakhstani Embassy in Washington. The Abraham Accords, which Israel signed in the past, will not be affected by any new agreements. OBSTACLES REMAINS Original Abraham Accords - signed between Israel, the United Arab Emirates (UAE), Bahrain, Morocco, and Sudan – were centered around restoration of ties. The second round of the expansion seems to be evolving into a wider mechanism to expand U.S. soft power and Israeli hard power. Azerbaijan, sandwiched between Russia and Iran in the north, and Central Asia and Europe to the south is a vital link for trade between the two regions. Oil and gas are abundant in Central Asia and the Caucasus, which has led to a competition between major powers for influence. Extending the accords to countries that have diplomatic relations with Israel could also be a way to give a symbolic win to a President who is known for praising even small victories. Two sources describe the Central Asia discussions as embryonic, but the Azerbaijan discussions as fairly advanced. There are still challenges and no guarantee that a deal can be reached. This is especially true given the slow progress of talks between Armenian and Azerbaijan. Both countries gained independence from the Soviet Union, in 1991. Since the late 1980s, when Nagorno Karabakh, an Azerbaijani area with a majority ethnic Armenian population, broke away from Azerbaijan, they have been at odds. Azerbaijan will retake Karabakh in 2023. This will cause 100,000 ethnic Armenians fleeing to Armenia. Since then, both sides have said that they would like to sign a peace treaty to end the conflict. The U.S. and Armenia have strong ties, but the Trump administration does not want to upset the authorities in Yerevan. Trump and Secretary of State Marco Rubio have both argued for a near-term peace between the two nations. Trump said to reporters in early July, "Armenia and Azerbaijan...we worked magic there." It's close." (Reporting and editing by Humeyra Pauk and Deepa Babyington; Additional reporting and editing by Steve Holland in Washington and Humeyra and Humeyra in Jerusalem, Nailia Bagirova and Nailia Rose in Baku)
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BlackRock fails to dismiss Texas climate conspiracy claims
A U.S. Judge on Friday rejected in large part a request from top asset managers, including BlackRock, to dismiss a suit filed by Texas and twelve other Republican-led States that claimed the companies had violated antitrust laws through climate activism which reduced coal production and increased energy prices. U.S. district judge Jeremy Kernodle, in Tyler, Texas, agreed to dismiss only three of the 21 count in the states' suit, which also names institutional investors State Street, Vanguard, and others. This is one of the most high-profile lawsuits aimed at promoting environmental, social, and governance goals. Requests for comment from the companies were not immediately responded to by representatives. Kernodle was appointed by Donald Trump and his ruling means that states can continue with their claims against asset managers for violating U.S. Antitrust Law by joining Climate Action 100+ an investor initiative to take actions to combat climate changes, as well as using their shareholder advocacy to further its goals. The companies deny wrongdoing, and have called the case "half baked." The theories of the states were supported by Trump's antitrust enforcers, who are now at the U.S. Department of Justice (DJ) and Federal Trade Commission. The result of the case could have major implications on how companies that together manage $27 trillion in passive funds and holdings approach their investments. BlackRock, the fund firm that is suing the plaintiffs, has stated that the plaintiffs could seek a remedy by asking the fund firms not to hold coal companies. This would likely increase energy prices and harm companies' access capital. Reporting by David Shepardson and Jody Godoy, both in Washington; editing by David Holmes
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Chevron CEO: Exports of Venezuelan crude oil to resume in this month
The chief executive of U.S. oil company Chevron said that the company expects to resume its exports to the U.S. this month. This follows a limited license issued by the U.S. Treasury Department this week to operate in Venezuela and to do oil swaps. Mike Wirth, CEO of Chevron, said that exports would begin with "a limited amount" and that he did not expect them to have an impact on the third-quarter results. Chevron has not exported Venezuelan oil since April when the state-owned PDVSA cancelled cargoes scheduled for its joint venture partner due to payment issues related to U.S. sanctioned against Venezuela. In March, the U.S. administration of President Donald Trump revoked Chevron's license that was granted under former president Joe Biden. Trump's administration gave Chevron, PDVSA and some of its partners until the end of May to complete transactions. Washington reinstated licenses last month after a successful prisoner exchange with Venezuela. The U.S. Congress urged the reinstatement of licenses in order to stop Venezuelan barrels going to China. According to vessel movement data, Chevron had exported around 250,000 barrels of Venezuelan crude per day in the first three months before the licenses were cancelled. This was 29% of Venezuela's total exports. According to U.S. officials and sources, the new authorization is similar in nature to that of Biden's license but prohibits payment to Venezuelan President Nicolas Maduro’s administration using any currency. Chevron and the cash-strapped PDVSA have been in negotiations since Washington approved the license. Sources said that the agreement is likely to include payment of mandatory taxes and royalties to Venezuela, either in kind or by way of oil swaps where Chevron supplies Venezuela with diluents. Sheila Dang (Reporting, Marianna Pararaga and David Gregorio).
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Sources say that despite the export ban, Russia may face gasoline shortages.
Sources said that despite the export ban, Russia may face gasoline shortages this August due to low stocks at home, a peak in seasonal demand, and repairs being done by domestic refineries. The ban was imposed Monday, and is intended to last through August 31. Its purpose is to stabilize the Russian market and avoid socially sensitive increases in motor fuel prices. Traders say that it is unlikely to be enough to bring the market back to equilibrium, since gasoline export volumes are much smaller than the domestic consumption. They also claim that diverting the fuel to the local market will not satisfy the demand. The oil companies expect state regulators will force them to sell more refined products in the domestic market and to delay planned plant maintenance. The Russian Energy Ministry did not immediately respond to a comment request sent on Friday after hours of business. According to participants in the market, this year, private retail networks did not create enough fuel reserves to meet summer's high demand. This was due to an increase in interest rates of 20%, which made borrowing from banks for fuel purchases in advance to be too expensive. "At the moment, gasoline production has reached a normal summer level. Sales are also in line with expectations. Private traders are short of stocks," said a source from a large oil firm. Sources at gas retailers say that frequent flight delays in Russian airports also lead to higher gasoline consumption as travellers switch from their cars. Market participants and industry analysts believe that the shortage of gasoline is likely to persist until September. Prices may fall in October when local refineries complete repairs while demand drops off its seasonal peak. (Reporting and Editing by David Holmes).
Top fund managers ask US courts to dismiss climate-related antitrust case
BlackRock, Vanguard, and State Street asked a Texas federal court to dismiss a lawsuit filed by a Texas state accusing top fund managers of conspiring to reduce coal production through climate activism. The firms said the allegations were based on "half-baked, untested" theories.
Asset managers asked the court to reject the "adventurous" attempt to rewrite the antitrust laws.
Fund managers claim that the closely followed case led by Texas Attorney-General Ken Paxton does not provide any examples where companies have ever told a coal company they should reduce production.
Analysts in the industry have been watching closely to see what companies will do about the suit that the defendants claim is a first-of-its-kind, filed by Texas and several other Republican states. Now there are 13 plaintiffs.
Michael Carrier, Rutgers Law School Professor, said via email that this is a "hard-hitting" response. Carrier says that the companies have a lack communication and differing voting practices, which will make it difficult for the plaintiffs' to prove they reached an agreement.
Paxton's Office did not respond immediately to a comment request.
The lawsuit is part of an ongoing pressure campaign by conservative politicians in the United States, many of whom hail from states that produce energy. They have claimed, among other things that the companies' participation in net-zero industry groups is collusion.
The three companies, with assets of more than 26 trillion dollars, have become influential in the way U.S. corporations pay executives, select directors, and set ESG policies. Recent pressure from Republicans has led to a retreat by the three firms, who have withdrawn from climate initiatives and reduced diversity goals.
This is the first time that they have been accused of antitrust violations in connection with their ESG initiatives. In a joint motion on Monday night, they united against the idea. They called their activities "commonplace", for products such as index funds which are "the main ingredients that allow asset managers to provide low-cost funds for millions of Americans to save for retirement or other purposes."
The companies claimed that, while BlackRock, State Street, and others voted against the reelection of a few directors from coal companies, they did not vote as a bloc and the directors were still reelected. Vanguard has never voted to remove coal company directors or management.
According to the details of the complaint, coal production has actually increased since 2021. The companies' proxy votes also did not correspond with production trends.
The motion says that "there is no evidence that any defendant was pressuring coal companies to cut production, and even less that they were all doing it in concert."
The case is Texas et al v BlackRock Inc et al, U.S. District Court, Eastern District of Texas, No. 24-00437. (Reporting from Boston by Ross Kerber and Shivani Tana in Bengaluru, Editing by Muralikumar Anantharaman & David Gregorio).
(source: Reuters)