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CNOOC Completes New Refinery and Petrochemical Complex in East China
China National Offshore Oil Corp (CNOOC) has completed building an integrated refining and petrochemical complex in eastern China, state news agency Xinhua reported on Friday.The 21 billion yuan ($2.9 billion) project, built on the Daxie Island of eastern coastal city Ningbo, Zhejiang province, includes what CNOOC calls the country's largest facility that directly converts heavy oil into olefins.A core unit brought onstream can produce 1.2 million metric tons per year of polymer-grade ethylene and propylene, basic feedstocks for beverage bottles, food packaging and synthetic fibre clothing, the report said.Following the startup, the plant's olefins capacity will reach 1.8 million tons per year, it said, without giving any details on the expanded refinery at the same site.Reuters reported in March that the complex included an upgrade that expands crude processing capacity at the Daxie plant by 50% to 240,000 barrels per day, as a smaller crude unit was mothballed.CNOOC is the parent of listed CNOOC Ltd.($1 = 7.18 Chinese yuan renminbi)(Reuters)
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Brazil rejects UN demand for hotel subsidies in tense COP30 discussions
Brazilian officials announced on Friday that the government of Brazil has ruled out subsidizing hotel rates for all delegates at the United Nations Climate Summit it will be hosting in November. This was after a meeting they described as being tense with U.N. officials. As delegations become increasingly concerned about the price of accommodation in Belem, the Amazonian coastal city that hosts the Amazon Conference, the standoff has occurred. Brazil is trying to double the number of hotel rooms available. Entrepreneurs have also been creative in converting love-motels and ferryboats into hotels to accommodate delegations. The Brazilian government has rejected the idea of moving COP30 to another location. But, because supply is still below demand, prices are soaring. Officials linked to the Brazilian Presidency said that the U.N. Climate Secretariat (UNFCCC) had requested a $100 hotel subsidy per day for delegate from developing nations, and $50 for those from wealthy nations, during Friday's meeting. Miriam Belchior dismissed the idea. She is the executive secretary of the chief of staff to President Luiz inacio Lula da S Silva. She told journalists that the Brazilian government already bears significant costs in hosting the COP. There is no way of subsidizing delegations coming from other countries. This includes delegations coming from countries much richer than Brazil. The UNFCCC didn't respond to a comment request immediately. Belchior reiterated the fact that the change of host city is out of the question. Brazil instead suggested that the U.N. increase the $144 daily allowance given to delegates from poorest countries. Hotel rates in Belem are between twice and twenty times higher. The U.N. resisted requests to adjust allowances, citing that it takes time to approve any such changes. So far, 39 nations have reserved accommodation through the official COP30 website, while eight other countries have negotiated with hotels directly or via other platforms. (Reporting and editing by Brad Haynes, Diane Craft and Lisandra Paraguassu)
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US suspends Orsted offshore wind energy project in Rhode Island
According to a notice posted on the Bureau of Ocean Energy Management's website, the Trump administration ordered Denmark's Orsted on Friday to cease all activities related its Revolution Wind project near the coast of Rhode Island. The letter signed by BOEM Acting Director Matthew Giacona stated that the stop work order was related to concerns about national security, which were not specified, arising out of the administration's evaluation of offshore wind project in federal waters. Giacona stated that BOEM was concerned about the protection of US national security and the prevention of interference in the reasonable use of the exclusive economic zones, high seas and territorial seas. The letter was sent to Rob Keiser who is the head of asset Management for Orsted North American. Orsted did not respond to a request for comment. This is just the latest effort by the administration to stifle offshore wind development and clean energy. Donald Trump, on his first day as president earlier this year suspended all new offshore wind leasing projects pending an economic and environmental review. He has repeatedly criticised wind energy for being ugly, unreliable, and expensive. Orsted requested $9.4 billion from shareholders earlier this month to fund another U.S. wind project. Potential partners had been turned off by Trump's anti-wind power stance. (Reporting and editing by Leslie Adler, Sandra Maler, and Nichola Groom)
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Elliott and Gold Reserve affiliates are working on bids for Citgo parent company as the bidding deadline approaches
The U.S. court is about to announce the winner of an auction of shares in Citgo Petroleum, the parent company of the U.S. refiner. Affiliates of the hedge fund Elliott Investment Management as well as miner Gold Reserve are leading the competition. Robert Pincus, a U.S. court official, has until Monday to decide whether the $7.4 billion offer from Gold Reserve subsidiary Dalinar Energy that he had previously recommended remains in front or if a rival bid is superior. In the final round of bidding, Elliott's affiliate Amber Energy and a unit from commodities firm Vitol as well as a consortium headed by Black Lion Capital Advisors made offers. The court extended the deadline for bidding to Friday, and delayed the final sale hearing until September. According to court documents and sources familiar with the preparation of the bids, Amber and Gold have now surpassed the other bidders in the competition. Their offers are substantially different. The main differences include the cash amount offered and non-cash considerations. Also, a negotiation was conducted to pay holders who had a Venezuelan defaulted Bond collateralized by Citgo equity. Amber said to the Delaware court that it had reached an agreement with more than two thirds of holders. The Gold Reserve Group, which does not have a payment plan for the bondholders in its bid, believes that its offer is superior because it covers 11 of 15 claimants who are lining up cash proceeds. Judge Leonard Stark instructed Pincus, and the court advisors involved in the auction earlier this year to put price ahead of "certainty" of closure. This term describes a proposal's chance of becoming a takeover. Amber's bid, which offers $5.86bn to creditors and 2.86bn to bondholders, must prove to the court that it has reached agreements. Gold Reserve has the right to object to any competing bid based on procedural issues. If it loses, the group can increase its own bid. Amber and Dalinar didn't immediately respond to requests for comments. According to a new court calendar approved on Friday, Gold Reserve’s Dalinar has only three days to match any better proposal. Gold Reserve announced on Friday that it had engaged Cantor Fitzgerald as its financial advisor to help with the bid. Sources said that Dalinar's potential strategy to increase its bid might include adding more creditors to the proposal. This is currently being discussed. Amber has also been in contact with at least 2 creditors who are willing to convert their claims in to credit bids. In some auctions, credit bids are accepted to allow creditors to purchase assets or shares at auction to pay off their debts. The court said that in this case credit bids and cash offers must be combined. The auction is intended to compensate 15 creditors for Venezuela's debt defaults and expropriations by paying up to $19billion. The court that has been handling this case since 2017 found Citgo Holding's parent PDV Holding responsible for Venezuela's debts.
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Braskem continues to negotiate with Tanure Fund despite the end of exclusive window
Braskem reported in its Friday securities filing that talks for Brazilian firm Novonor (formerly Odebrecht) to sell a majority stake in the petrochemical Braskem company to a Nelson Tanure-backed fund continue despite a 90 day exclusive negotiation deadline. The exclusivity period has ended without an agreement between the parties that would have exempted the fund from paying damages in a suit that claims that the firm's mines of salt caused the ground to sink in Maceio, and that forced evacuations were a result. Petroquimica Verde, the Tanure-linked fund of investment, has a source who says that they will not sign any deal until it is certain that environmental liabilities won't be transferred to new partners and creditors. Tanure stated in a press release earlier this month that an agreement was "a sine qua non" (condition) for the deal. According to a second source, the resolution of the environmental liability issue is fundamental for the progressing of negotiations with Tanure. The source said that Novonor's choice to continue talks with Tanure leaves the door open for a possible deal. It also "sends a important signal to banks who were uncomfortable about the situation." Sources said that private equity firm IG4 Capital was working on a rival bid to acquire Braskem's majority stake. It aims to consolidate Novonor Bank's debt and exchange them for Braskem Shares. The shares of Braskem rose by 2.4% during the afternoon trading, nearly matching Brazil's benchmark index Bovespa which rose around 2.5%. Reporting by Luciana Araujo and Gabriel Araujo. Isabel Teles is the writer. Mark Potter, Alistair Bell and Isabel Teles edited the work.
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The US corn crop is projected to be the highest in 2025, but disease may affect yields
Pro Farmer, a crop consultancy, said that U.S. growers will also reap a bumper soybean crop, although dry conditions in parts of the eastern Midwest and pockets of disease pressure in Iowa may limit yield potential. Pro Farmer, which conducted its annual four-day trip across seven of the top-producing states, said that growers can also expect a bumper crop of soybeans, despite dry conditions in some parts of eastern Midwest, and pockets of disease in Iowa. The United States ranks as the top corn exporter in the world and is ranked No. The United States is the world's No. 2 soybean exporter. Favorable weather conditions in many of the major growing states helped support crops, but also pushed prices down to multi-year lows. Warm and moist conditions, which favored crop growth, also bred fungal diseases, such as southern rust, northern blight, and tar spot in corn. Sudden death syndrome is a fungal disease that affects soybeans. "We've been noticing the disease pressure on corn every day. We've never seen tar spot and southern rust so widespread. Lane Akre is a Pro Farmer economist who was one of the tour leaders for the eastern leg. Pro Farmer estimated that the U.S. will produce a record 16,204 billion bushels of corn in 2025, with a yield average of 182.7 bushels/acre. The soybean production is projected at 4.246 trillion bushels with a yield average of 53.0 bushels/acre. The forecast is lower than the U.S. Department of Agriculture’s latest forecast. Corn production will reach a record of 16.742 billion Bushels, with average yields of 188.8 Bpa. Soybean production will be 4.292 billion Bushels, with average yields of a record 53.6 Bpa. SICKNESS IN FIELD This week, crop scouts from the Pro Farmer Tour saw more diseased fields than usual across the Midwest farming belt. However, it is still not clear if these diseases will result in significant yield losses. One stop in the northwest Illinois The corn field looked healthy and green when viewed from the roadside. But 30 to 40 feet in, the leaves were streaked in rust. This left the crop scouts splattered with color. Bright yellow crop dusters sprayed white plumes from their wide-banked, low-banked crop dusters. Jake Guse is a Minnesota The eastern leg of the tour was a tour for row crop farmers and crop scouts. Many crop scouts said that the disease levels on this tour were the worst they had ever seen. As we travelled across Indiana We started to see more (disease). Guse stated that the situation in Illinois began to deteriorate, and spread throughout Iowa. Crop scouts found that there were also exceptional yield prospects, which could cushion any yield decline due to disease. USDA data shows that the strong production prospects are not welcome news for farmers who face a third consecutive year of falling corn prices because of excess supplies, and only a slight improvement in soybean prices. While trade tensions with key market like The top soybean importer has left the demand for soybeans uncertain. USDA data shows that while the USDA predicts that the farm economy of the United States will improve by 2025, this boost will be largely due to a massive federal funding influx that the Trump Administration plans to send rural America. The Chicago Board of Trade corn and soybean futures firmed up this week after reports from the crop tour indicated that USDA's recent harvest forecasts could be too high. The benchmark CBOT November corn contract finished the week with a 1.5% gain, marking its first weekly increase in five weeks. Meanwhile, November soybeans rose by 1.5% to a new one-month high.
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Brazilian energy auction to generate $1 Billion in investment
Aneel, the Brazilian regulator of electricity, said that Brazil's first auction focusing exclusively on small and medium dams would generate investments worth around 5.5 billion Reis ($1 billion). Aneel said that the auction resulted in 815 Megawatts (MW) capacity and included 65 plants with a maximum of 50 MW per plant. According to auction rules, these projects, which may include new plants or extensions of existing plants, are contracted for 20 years and will start supplying power in January 2030. At an event in Brasilia the Mines and Energy Minister Alexandre Silveira noted that smaller hydroelectric plants have a limited impact on environment. Silveira stated that Brazil could expand its hydro power from major dams. Silveira said that he had spoken to President Luiz inacio Lula da So about moving ahead with new large hydroelectric projects after Brazil signed an agreement with Bolivia for the Madeira River project, located in the Amazon region. Brazil has stopped building large-scale hydroelectric plants after Belo Monte. This project was controversial because of its impact on the Amazon region and Indigenous communities.
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North Dakota oil production will rise in August, as operators return to reduced output, says state regulator
The state regulator announced on Friday that oil production in North Dakota will increase in August, as operators bring some production back online they had curtailed earlier this year after oil prices fell. Last quarter, oil prices dropped to multi-year lows after U.S. president Donald Trump announced a list of tariffs on April. This led operators in the U.S.to reduce their rig count. In May and June certain operators curtailed production in the State due to the low prices. Nathan Anderson, Director of the North Dakota Department Of Mineral Resources, said that the Department of Mineral Resources believed that the curtailed production would be coming online in the months of August and July. U.S. crude oil futures recovered some of the losses they suffered last quarter. They bounced back to $63.40 per barrel on Friday, after hitting around $57 a barrel on May 5. This was their lowest level since February 2021. "Given the frac crews and completion numbers in summer, I expect to see a significant increase in oil production levels for July. August numbers have been fairly consistent with July's numbers." Justin Kringstad is the director of North Dakota Pipeline Authority. He said, "I do expect two good months to come." The state regulator reported that there are 29 active rigs currently in North Dakota. This is the same as July. The frac crew number is now at 14, compared to 13 in July. North Dakota is the third-largest oil producing state. The latest monthly data released by the North Dakota Industrial Commission shows that oil production increased 39,000 barrels a day in June to reach 1.15 million bpd. (Reporting and editing by Susan Fenton in Houston, Georgina McCartney from Houston)
Trump claims Intel has reached an agreement for the US to own 10% of Intel
Donald Trump announced on Friday that the U.S. will take 10% of Intel as part of a deal to help the chipmaker, and that he plans more similar moves. This is the White House's latest extraordinary intervention in corporate America.
The U.S. has agreed to buy a 9.9% share in Intel at $20.47 per share. This is about $4 less than the closing price of Intel shares on Friday, which was $24.80.
The Government will buy the 433.3 millions shares using funds from unpaid CHIPS Act Grants of $5.7 billion and $3.2 billion that Intel was awarded for the Secure Enclave Program.
Intel shares fell 1.2% on Friday in extended trading.
A White House official confirmed that Trump will meet CEO Lip-Bu Tang later on Friday. This follows the meeting between Tan, Trump and other officials earlier in this month. The meeting was sparked when Trump demanded that Intel Chief Lip-Bu Tan resign over his connections to Chinese companies.
"He came in to keep his position and ended up giving $10 billion for us." We picked up $10 billion," Trump stated on Friday.
Howard Lutnick, Commerce Secretary on X, announced that the deal was completed. He wrote that "the United States of America owns 10% of Intel", saying Tan struck a fair deal with Intel and the American People.
The $10 billion Trump didn't specify is roughly equal to the grant Intel will receive from the U.S. government under the CHIPS Act to fund the construction of chip factories in the U.S. Intel's investment is the latest in a series of unusual deals made with U.S. firms, including allowing Nvidia AI chip maker to sell H20 chips to China for 15% of sales.
As part of an agreement to allow Nippon Steel buy U.S. Steel, the U.S. Government negotiated a "golden stake" that included certain veto powers.
Trump's wide-ranging intervention in corporate affairs has alarmed critics, who claim that Trump's actions have created new categories of risk for corporations.
Officials told the Trump Administration that they wanted to convert the $7.9 billion cash grant approved by President Joe Biden's administration for Intel to build chip factories in the United States into equity in the company.
A White House official stated on Thursday that the administration did not seek equity stakes in companies such as TSMC and Micron, which have increased their U.S. investments plans.
SoftBank has agreed to buy a $2 billion stake of Intel.
Daniel Morgan, senior manager of Synovus Trust's portfolio, says Intel's issues go beyond the cash injection from SoftBank and equity interest from government.
He said that without government support or a financially stronger partner it would be difficult for Intel's foundry unit "to raise enough capital" to continue building out more Fabs. Intel also "needs catch up with TSMC in a technological sense to attract business."
Lutnick said that any stake in the company would not be a voting share, which means the U.S. Government would not be able to dictate how the business is run.
Intel has declined to comment Friday.
Analysts said that federal backing could give Intel breathing space to revive its losing foundry business. However, it is still struggling with a weak road map for its products and attracting customers to the new factories.
Trump's unprecedented approach to national safety, which he took when he met Tan on 11 August, is a first. President Trump has called for government partnerships worth billions of dollars in rare earths and semiconductors to ensure critical minerals. These include a deal with Nvidia, a contract with MP Materials and a pay-for play arrangement with Nvidia. Tan, who was appointed Intel's top executive in March, is tasked with turning around the American chipmaking giant, which in 2024 recorded a loss of $18,8 billion - the first loss it has experienced since 1986. The last year that Intel had a positive adjusted free-cash flow was in 2021. Aditya soni reported from Bengaluru, and David Shepardson and Andrea Shalal in Washington. Additional reporting was done by Juby Babu, in Mexico City, and Max A. Cherney, in San Francisco.
(source: Reuters)