Latest News
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RWE secures 3.2 billion Euros in grid financing from Apollo Investor
RWE announced on Monday that Apollo Global Management has agreed to provide 3.2 billion euro ($3.75 billion), resulting from its 25,1% stake in German transmission systems operator Amprion, for future upgrades of the power grid. In a press release, RWE Power said that partners would create a joint-venture to acquire RWE's Amprion stake to finance future growth. Apollo will make its equity investment up front and RWE will then reinvest in Amprion via the JV, to support Amprion's grid expansion. To keep up with renewable energy growth and help the German electricity grid transition from fossil fuels, the German electricity grid requires large investments. Amprion, the Dutch government's subsidiary Tennet Germany, is also looking for investors to help cover its investment needs. Amprion committed in April to increasing investments in its network to 36.4 billion euro in five years up to 2029. This is a 32.4% rise from the previous five-year rolling plan until 2028. Amprion, along with three other companies, manages Germany's electricity grids. They rely on the fees charged by private and corporate users of power to generate revenue. The regulatory framework requires upgrades to power lines and equipment. Apollo and the companies did not reveal what percentage of joint ventures Apollo will take. Amprion announced in a separate press release that the M31 Investor Group would continue to own the remaining 74.9% of Amprion. Apollo stated that the JV would provide "reliable and steady dividend returns through Amprion's regulated assets base". RWE stated that the deal will help them focus on their core activities, which include power generation, renewables and batteries, as well as energy trading. RWE will still be able to consolidate Amprion's stake into its financial statements. The transaction is expected close in the fourth-quarter of 2025. Reporting by Tom Kaeckenhoff, Ludwig Burger and Friederike Heine. Editing by Kevin Liffey and Friederike Liffey.
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China's sales of EVs and hybrids are at their lowest level in 18 months
China's sales of hybrids and electric vehicles in August grew at their slowest rate in over a year and a half as the government continues to try and stop punishing price wars. China Passenger Car Association's data on Monday showed that EV and hybrid car sales surpassed gasoline car sales for the sixth consecutive month in August. However, annual growth has slowed to 7.5%, down from 12.5% in July. This was the lowest gain since February 2024 when the segment recorded an 11.6% decline in sales due to the shifting timings of a week-long Chinese holiday. Last month, the total number of cars sold was 2,02 million. This is a 4.9% increase on an annual basis and represents the slowest growth rate in seven months. Last week, BYD reported that it had cut its target sales for this year to 4.6 millions vehicles by up to 16%. In August, the biggest Chinese competitor to Tesla reported that its domestic sales, which make up nearly 80% percent of global sales, dropped for a 4th consecutive month. It also experienced consecutive monthly production declines for the first since 2020. Li Auto's sales in August were down on the previous year for a second consecutive month due to a weakening of demand for hybrids with extended range. CPCA data shows that the Chinese market's sales of extended-range hybrids increased 0.3% on an annual basis after a drop of 11.4% in July. Plug-in hybrids were down 7.3% compared to a dip of 0.2% in July. Geely Xpeng, Nio and Geely all reported that August was their best-ever month for EV and hybrid vehicle sales. Geely is China's largest rival to BYD. Sales in this segment jumped 95.2% last month. The growth in car exports slowed to 20.2% from 25.2% in July. $1 = 7.1529 Chinese Yuan Renminbi (Reporting and editing by Andrew Cawthorne, David Goodthorne)
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Kremlin: sanctions won't force Russia to change its course
The Kremlin stated on Monday that sanctions would never be able force Russia to alter its course in Ukraine. This was just hours after the United States as well as the European Union had indicated they were considering further sanctions. The West has imposed a multitude of sanctions against Russia in response to the war in Ukraine in 2022 and the annexation Crimea in 2014. This is in an attempt to undermine the $2.2 trillion Russian economy and President Vladimir Putin's support. Putin claims that the Russian economy has defied Western predictions and has grown faster than the G7 nations. He has also ordered officials and businesses to resist the sanctions by any means possible. Peskov said to Kremlin journalist Alexander Yunashev that "no sanctions can force the Russian Federation into changing the consistent position our president has spoken about repeatedly". Donald Trump, President of the United States On Sunday, he said he was ready to move on to a second stage of sanctions against Russia. This is the closest he's come to suggesting that he might be about to ramp up sanctions on Moscow or its oil customers over the war in Ukraine. Antonio Costa, President of the EU Council, said that the United States and Europe are closely coordinating their preparations for new sanctions against Russia. Peskov stated that Europe and Ukraine do everything possible to bring the United States in their orbit. Putin said that the Kremlin preferred to resolve the crisis diplomatically, but if this was not possible then he would continue with what he calls "special military operations". The Russian war economy grew by 4.1% in both 2023 and 2024 despite the multiple rounds of Western sanction imposed following its invasion of Ukraine 2022. However, the economy has slowed sharply in this year due to high interest rates. (Reporting and writing by Anastasia Teterevleva, editing by Guy Faulconbridge).
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Merdeka Copper Gold, Indonesia's largest copper and gold company, says that its subsidiary will be launching a $300 million IPO
The Indonesian miner PT Merdeka Copper Gold Tbk announced on Monday that its gold mining division has received approval from the regulator for bookbuilding in preparation for an initial public offer to raise up to 4.9 trillion rupiah (300.6 million dollars). PT Merdeka Gold Resources said it plans to issue up to 1.6 billion shares at the IPO scheduled on September 17-19. Statement said that the company would use the proceeds to pay off debts and fund its gold mining, processing and manufacturing business. The company's flagship mine, Pani Mountain in Sulawesi, is estimated to contain 7 million ounces gold. Merdeka is building a processing plant for the project. It will be operational in the first quarter of next year. The Pani gold mine is expected to produce a maximum of 500,000 ounces gold at full production. Underwriters of the IPO have been hired by Trimegah Sekuritas Indonesia, Sinarmas Sekuritas and Indo Premier Sekuritas. Shares are expected to list on the Indonesia Stock Exchange by September 23.
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China's steel exports and lower iron ore shipments have led to a rise in the price of iron ore.
Iron ore futures rose on Monday for the fifth consecutive session, helped by a sharp drop in shipments from one of its major suppliers and resilient steel exports to China's top consumer. The day-traded contract for January iron ore on China's Dalian Commodity Exchange ended 0.64% higher, at 792 Yuan ($111.05). By 831 GMT the benchmark October Iron Ore at the Singapore Exchange had risen 0.53% to $105.4 per ton. This was the highest price since July 24. Mysteel, a consultancy, reported that the shipment of the main steelmaking ingredient, mainly from Brazil, fell by nearly 50% or 5 million tons from the previous week, to 5,07 million tons during the first week in September. The sharp drop in Brazilian shipments is mainly due to scheduled maintenance at three ports. Brazil increased shipment the week prior. Normal shipments should resume on September 9. In August, China's exports of steel were robust, partially offsetting the faltering domestic demand dragged down by its protracted property woes. Many Chinese steelmakers are making money this year, after losing money in the previous two years. This is partly due to the strong steel exports. The healthy margins allowed mills to maintain a high rate of operation, which led to a steady demand for raw materials. However, a sharper-than-expected fall in hot metal output, a gauge of iron ore demand, raised cation among investors, limiting price gains. Coking coal, which is used to make steel, and coke both rose by 1.42% and 0.222%. The benchmarks for steel on the Shanghai Futures Exchange have gained some ground. Rebar increased by 0.19%; wire rod grew by 0.09%; hot-rolled coils jumped 0.96%, and stainless steel gained 0.67%. Citi Research analysts expected that the steel industry would experience a significant supply cut during the fourth quarter. This is a traditionally slack season for demand. ($1 = 7,1321 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson and Mrigank Dahniwala).
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The US rate cuts have boosted the economy of most major Gulf countries.
The major Gulf stock markets edged up in early trading on Monday. This was helped by rising expectations that the U.S. Federal Reserve will cut rates this month. However, weak oil prices limited gains. The U.S. unemployment rate rose to nearly four-year levels in August. This confirms that the labour market is softening, which will lead the Fed to cut rates next week. According to CME FedWatch, traders have priced in a rate cut of 25 basis points (bp), with an 8 percent chance of a 50-bp jumbo cut. The Fed's position is important in the Gulf where the majority of currencies are pegged with the U.S. Dollar, anchoring the regional monetary policies. Saudi Arabia's benchmark stock index gained 0.1% in a volatile trading session. This was aided by the 0.8% increase in Saudi Arabian Mining Company. Oil prices, which are a major factor in the Gulf financial markets, have risen by more than a dollar, recovering some of the losses of the previous week. This was aided by the prospect of further sanctions against Russian crude following an overnight attack on Ukraine. OPEC+ announced plans to increase production in October, although the amount was modest. A poll shows that Brent crude will average $67.65 a barrel by 2025 as increased production from major producers and U.S. Tariff threats limit demand. Dubai's main stock index was flat. The index rose 0.1% in Abu Dhabi. The benchmark in Qatar rose by 0.1%. This was boosted by an increase of 0.6% for petrochemical producer Industries Qatar. (Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair)
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Cyprus President says that Cyprus is in talks with UAE about a European submarine cable project
Cyprus approached the United Arab Emirates to discuss possible collaboration on an EU-financed submarine power cable connecting Europe to the Eastern Mediterranean region. It said Monday that it was reaffirming their commitment to this project. Last Thursday, European prosecutors announced that they have launched an investigation to determine if criminal offenses may be committed in relation to the cable project to connect Greece to Cyprus and then to Israel. The three countries all support this project despite its delays. "To give just one example of this commitment, myself and my foreign minister went to the United Arab Emirates," Cypriot president Nikos Christodoulides said after comments made by Greek prime minister KyriakosMitsotakis on Saturday urging Cyprus clarify its position. "I met the president of the nation precisely to discuss this matter and to examine the possibility of a partnership to invest in areas related to this particular project." Christodoulides has not commented on the European investigation that was announced last week. The cable was built by Greek transmission company IPTO. It took over the project from a Cyprus operator who had worked on it for around a decade. The project promoters claim that the cable would be the longest high-voltage link in the world at 1,240 km (775,5 miles), and the deepest at 3,000 meters. Cyprus has sought clarifications about the total cost, viability of the project and the liability for any unforeseen delays. Reporting by Michele Kambas Editing David Goodman
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Saudi Arabia's GDP grew 3.9% in the second quarter
According to estimates by the government released on Monday, Saudi Arabia's GDP (gross domestic product) will grow 3.9% in 2025 due to non-oil sector growth. According to the Saudi General Authority for Statistics, non-oil activities grew 4.6% in comparison to the same period last year. The fastest growing sectors were electricity, water, and gas, followed by business, finance, and insurance. Oil grew by 3.8%, while government activities grew 0.6%. The oil activities grew the most compared to first quarter by 5.6%. On Sunday, the Saudi-led OPEC+ decided to increase oil production further as the kingdom tries to regain its market share. In an online meeting held on Sunday, the eight members of OPEC+ decided to increase production by 137,000 barrels a day from October. This is a much smaller increase than the monthly increases for September and August of approximately 555,000 bpd and 411,000 bpd between July and June. Oil prices have fallen by around 15% this year due to the increase in production. The prices haven't fallen, but are still trading at $65 per barrel. This is due to the sanctions imposed by the West on Russia and Iran. Saudi Arabia's economy is expected to be affected by the lower oil prices. The International Monetary Fund says Riyadh requires a price of over $90 per barrel to balance its accounts. Saudi Arabia has embarked on a costly transformation program called Vision 2030, which aims to wean its economy off of oil dependence. It is investing billions in sectors such as tourism, entertainment, and sports. Saudi Arabia's fiscal deficit in 2025 is expected to be around 101 billion riyals (about 27 billion dollars). Reporting by Pesha Magd; editing by Andrew Cawthorne
Esgian Week 21 Report: Tender Opportunities Emerging in Africa
Esgian provides an update on new commitments confirmed for Odfjell Drilling and Borr Drilling rigs and new tender opportunities emerging in Africa in its Week 21 Rig Analytics Market Roundup.
Report Summary
Contracts
Equinor has exercised an option to extend the use of Odfjell Drilling’s 10,000-ft Deepsea Aberdeen for a batch of eight wells on the Norwegian Continental Shelf. With this, Odfjell Drilling’s owned fleet of four semisubs has a firm backlog until at least mid-2026.
Borr Drilling has confirmed new work for its 400-ft jackup Prospector 1 in the UK and the Netherlands, which will keep the rig busy into early 2025.
Borr Drilling has secured a contract extension for the 400-ft jackup Norve with BW Energy offshore Gabon from August to mid-October 2024, throwing the timing of a previously announced contract with Tower Resources offshore Cameroon in doubt.
Following its April 2024 announcement of a binding letter of award (LOA) for a 480-day campaign for one of its jackups, Borr Drilling has confirmed that this work will take place in Africa and that it has also secured a binding LOA for a term of around 180 days with another jackup in Africa.
Drilling Activity and Discoveries
Malaysian oil and gas company Hibiscus Petroleum has shared the preliminary size estimate of the recently discovered Bunga Aster-1 well. The company plans to drill an appraisal well in 2025 to confirm the full extent of the discovery located in the Malaysia-Vietnam PM3 Commercial Arrangement Area (CAA) PSC.
BW Energy announced a 'substantial' oil discovery in the Dussafu licence offshore Gabon on Monday.
Oil company Perenco has announced that its subsidiary, MIOC, has made the first offshore exploration discovery in the Democratic Republic of Congo in almost 30 years.
Following the consideration of appeals, South Africa’s Department of Forestry, Fisheries and the Environment (DFEE) has confirmed the Environmental Authorisation for TotalEnergies to conduct exploration drilling on Block Deep Water Orange Basin (DWOB) off the west coast of South Africa.
Equinor has made an oil discovery in well 25/11-H-1 H at the Svalin field in the North Sea off Norway.
The Norwegian Offshore Directorate (NOD) has granted Aker BP a drilling permit for an exploration well in the North Sea off Norway.
The Norwegian Ocean Industry Authority (Havtil) has given Equinor consent for exploration drilling in block 35/10 in the North Sea off Norway.
Energean plans to spud the Anchois appraisal well offshore Morocco in August 2024.
Demand
The FEED study for the TotalEnergies-operated Preowei development on OML 130 offshore Nigeria is expected to be completed in the third quarter of 2024, with a final investment decision (FID) taken in the fourth quarter of 2024, according to partner Africa Oil Corp.
Chevron has released a tender opportunity for a deepwater rig with an ROV unit to work at the Agbami unit (OML 127/128).
TotalEnergies has released a tender opportunity to a jackup to work offshore Nigeria, beginning in the first quarter of 2025.
Mobilisation/Rig Moves
The Aban Offshore-owned 250-ft jackup Aban II is being towed to Mumbai Anchorage in India.
Dolphin Drilling’s 1,500-ft semisub Borgland Dolphin is en route to Las Palmas, where it will undergo reactivation and special periodic survey (SPS) ahead of a contract in the UK North Sea scheduled for Q2 2025.
The 400-ft jackup Admarine 502, owned by Advanced Drilling Services (ADES), is being towed to Bahrain's Arab Shipbuilding and Repair Yard Company (ASRY).
The COSL-owned 300-ft jackup HAIYANGSHIYOU 936 and the COSL-managed 375-ft jackup SinoOcean Wisdom arrived at Ras Tanura anchorage in Saudi Arabia following the suspension of their contracts with Saudi Aramco.
ExxonMobil has moved the 10,000-ft drillship Stena DrillMAX to EL 1169 in the Orphan Basin offshore Newfoundland, Canada to begin drilling the Persephone C-54 exploration well in around 9,842 ft (3,000 m) of water.
Valaris-owned 350-ft jackup Valaris 143 is being towed to Hamriyah Shipyard in Sharjah, UAE.
Arabian Drilling-managed 400-ft jackup ArabDrill 70 has arrived at Ras Tanura anchorage in Saudi Arabia.
Other News
Brazilian regulatory agency Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) has approved geological studies relating to four offshore exploratory blocks in the pre-salt area of the Santos Basin and has forwarded the blocks to the Ministry of Mines and Energy for evaluation of possible inclusion in future bidding rounds.
Serica Energy has received final approval from the UK’s North Sea Transition Authority (NSTA) to develop the 100% owned and operated Belinda field located in the UK North Sea.
TotalEnergies has announced the Final Investment Decision (FID) of the Block 20/11 development offshore Angola.
Nigerian courts have directed that an existing interim injunction to maintain status quo continue in force pending orders by the arbitrator in the disagreement between Dolphin Drilling and General Hydrocarbons Limited (GHL) regarding the drilling contract for the 6,000-ft semisubmersible Blackford Dolphin.
Criterium Energy has signed a binding sale and purchase agreement (SPA) for the divestment of its 42.5% non-operated working interest in the Bulu Production Sharing Contract, offshore Indonesia.
Brazilian independent oil companies 3R Petroleum and Enauta have reached an agreement to merge, and create one independent company operating in Latin America.
ADNOC has agreed to acquire Galp’s 10% interest in the Area 4 concession of the Rovuma basin off Mozambique.
Orcadian Energy has agreed to a non-binding Heads of Agreement (HoA) with a potential farm-in partner on its recently awarded Southern North Sea licence.
Borr Drilling’s net income nearly halved in the first quarter of 2024 compared to the last quarter of 2023, despite an increase in revenues.
Afentra has completed the acquisition of a 12% non-operating interest in Block 3/05 and a 16% non-operating interest in Block 3/05A offshore Angola.
Malaysia-based Velesto's drilling services business recorded an increase in profit before tax and revenue for the quarter that ended 31 March 2024, driven by higher rig utilisation and dayrates.
The UK’s North Sea Transition Authority (NSTA) ran a call for evidence on the potential principles, design, and timing of a possible future levy on UK carbon storage licences.
Chinese oil company CNOOC Limited has signed petroleum exploration and production concession contracts (EPCCs) with Mozambique's Ministry of Mineral Resources and Energy (MIREME) and Empresa Nacional de Hidrocarbonetos (ENH) for five offshore blocks in Mozambique.
Equinor and the Troll partners have decided to invest just over NOK 12 billion ($1.1 billion) to further develop the gas infrastructure in the Troll West gas province in the North Sea.
(source: Reuters)