Latest News
-
Sources say that ADNOC, the UAE's oil company, buys millions barrels of Iraqi crude.
Three people with knowledge of the matter said that Abu Dhabi National Oil Co (ADNOC), a trading firm in the face of supply disruptions caused by the Iran War, has purchased millions of barrels of discounted crude oil from Iraq's State Oil Firm. Two Iraqi energy sources reported that the state company through its trading arm was the largest lifter of Iraqi oil in August and September, helping to boost Iraqi exports, which had been severely cut in the early months of the war. One of the Iraqi sources said that ADNOC had agreed to purchase 32 million Iraqi barrels for $24.90-$27 per barrel in August, and another 40 million barrels for $27 in September. This included 10 million barrels with a $18 discount, and 30 million barrels with a $25 discount. According to the second Iraqi source, despite Iraq's state oil marketing organization SOMO having allocated ADNOC a total of 32 million barrels for August, ADNOC lifted 20 millions barrels because of export restrictions and Basra Oil Company not being able to secure enough?crude. ADNOC has so far lifted 14 millions Iraqi barrels in September, a person told me. Third source claimed that ADNOC had purchased about 20 million barrels from Iraqi?state owned SOMO? in tenders for a discount between $25 and $27 per barrel. Other companies are also buying Iraqi crude. SOMO offered August loading cargoes?at steep discount, attracting other buyers, including Chinese state-majors PetroChina and Zhenhua Oil as well as TotalEnergies and?Vitol. Trafigura Mercuria, and Cathay?Petroleum.
-
Kremlin accepts Trump's idea for energy truce in Ukraine and calls for sanctions to be removed
The Kremlin welcomed on Tuesday a U.S. suggestion for a 'Russia-Ukraine moratorium against attacking each other’s energy infrastructure. Donald Trump, the U.S. president, said on Monday that Ukraine had agreed with Russia not to meet each other's targets in terms of energy production. However, neither side confirmed this agreement. On Tuesday, Russia struck petrol stations in Kyiv and Ukraine claimed it had hit a Russian oil refinery. Dmitry Peskov, Kremlin spokesperson, told reporters Trump's idea was "very good", but that it would take more to lower global fuel prices. "It's important to guarantee safe navigation and commercial shipping here, including for oil tankers." Peskov stated that the Kyiv regime had not shown any interest in ensuring such security. "The second thing to do is, of course lift the sanctions (against Russia), and these illegal restrictions on energy supply. Only then will the world be adequately supplied with petroleum products. Global markets will stabilize and prices will fall. Peskov stated that Russia will stay in contact with the Americans regarding Trump's proposal. Volodymyr Zelenskiy, the Ukrainian president, said that Kyiv would only support a ceasefire in the energy sector if Washington could guarantee that Moscow was truly ready to end its conflict with Ukraine. The Ukrainian strikes on energy plants have led to fuel shortages this summer in Russia. This has caused the country to restrict its exports. This has led to a shortage of jet fuel, gasoline and diesel on the energy markets. Ukraine, which is regularly attacked by Russia on its own energy infrastructure, claims that refineries are legitimate military targets. Trump asked Zelenskiy to stop attacking Russian diesel infrastructure on Sunday, saying that the attacks are causing a shortage of diesel which is "hurting?the world". The Kremlin stated on Monday that global market turmoil was primarily?due to conflict in the Gulf. Trump launched military attacks on Iran in Febrary and Tehran responded by closing the 'Strait of Hormuz', which had been used to transport about a fifth of global oil and gas supplies. Russia and Ukraine also hit each other's ships in the Black Sea and Azov Sea. This escalation in violence has pushed up the price for grain, which both countries are major exporters.
-
Traders say that Orlen, a Polish oil company, is rushing to find alternatives to Saudi Arabia's oil supply.
Five industry sources have confirmed that the Polish integrated oil company Orlen is rushing to replace Saudi imports with crude oil shipments?from North Sea and further afield. Orlen, one of Europe's largest oil companies, is a major customer of Saudi crude. However, the conflict in the Middle East has escalated in recent weeks. Houthi attacks on Saudi installations by the Yemeni Houthi have led the Polish company to seek alternative sources of supply. Orlen bought'several cargoes' of crude oil at spot tenders between Friday and Monday. Two traders reported that Orlen purchased North Sea grades, including Grane, Johan Sverdrup, and Johan Castberg. Two sources said that the company also bid for grades from further afield, including U.S. WTI Midland as well as Kazakh CPC blend. The tender results could not be confirmed directly with the counterparties. Orlen declined comment on specific commercial transactions but stated that it manages its supply portfolio to ensure uninterrupted operation of the refining assets. Orlen's spokesperson said that "adjusting and optimizing purchase volumes is a part of the Orlen Group operations. It's driven by current production requirements and changing market conditions." The spokesperson confirmed that feedstock deliveries are currently proceeding as usual to the?Orlen refineries.
-
Imports of palm and soyoil from India in August rose on the back of stocking
As refiners stockpiled ahead of the festival season in India, soyoil imports to India reached a record high in August. The world's largest importer of vegetable oil, Indonesia, Malaysia, and Argentina, could move more palm oil and soybean oil, supporting benchmark palm and soyoil prices. In a recent statement, the SEA (Solvent Extractors' Association of India) reported that India's imports of palm oil in August grew by 7% over the previous month, to reach 782,761 metric tonnes, the highest level since February. The industry group reported that imports of sunflower oil decreased by 36%, to 160 639 tons. Imports for soyoil increased 26%, to a record high of 628 736 tons. The total edible oil imports increased by 1.5%, reaching a record high of 1,57 million?tons after a surge in palm and soyoil shipments. Mumbai-based dealer of a global trading house said that refiners have increased their purchases in order to build up stocks before the festival season. India celebrates several festivals between August to November when the demand for edible oil is at its peak. A New Delhi-based dealer from a global trade house said that soyoil was available at competitive prices, compared to palm oil. This should help keep September shipments above 600,000 tonnes. The 'war' has?disrupted the sunflower oil shipments in the Black Sea Region. He said that this is also causing refiners' to increase their purchases of soyoil. Industry officials said last week that India's aggressive buying of vegetable oil has caused congestion in major ports. Ships are delayed by up to 10 days while shore tanks fill and refiners struggle with clearing incoming cargo. India imports a majority of its palm oil from Indonesia and Malaysia. Soyoil, sunflower oil, and other oils are mainly imported from Argentina, Brazil and Russia.
-
The House is visited by MORNING BID AMERICAS
Treasury yields on 10-year U.S. Treasury notes have risen to their highest level in 19 years. This is just as Treasury Sec. Scott Bessent is preparing to speak to Congress, and the Federal Reserve begins its two-day critical meeting. Government bonds sold across the globe overnight as the prospect of rising interest rates and energy prices remained a primary aggravating factor. Japanese 10-year yields rose back to above 3%. Brent crude prices rose above $107 a barrel again on Tuesday after a brief drop on Monday, following President Trump’s suggestion that Russia and Ukraine could reach an agreement to spare their energy infrastructure during the war. Bessent will appear before the House Financial Services Committee today to discuss a number of thorny topics: his apparent failure to cap Treasury yields, Japan's joint intervention to lift the yen and the war on Iran, as well as the president's promise to provide Americans with $5,000 checks for a $1.3 trillion total cash injection. Bessent's opinion on what the markets expect to be a quarter point Fed rate increase on Wednesday will also make headlines. U.S. Bond markets are now trying to price in up to four rate increases over the next 12 months. The doomsday AI narratives, and calls for a halt in AI development, spilled over into chip stocks, and the SOX semiconductors index fell more than 5% on Monday for the first time since July. This dragged the S&P 500 and Nasdaq down into the red. Trump refused to accept calls for additional restrictions on AI, saying that the existing guardrails were sufficient. A sweep of Chinese economic data was mixed, with retail sales falling short and house prices continuing to decline. The world stock market and Wall Street Futures are both in the red as we approach Tuesday's opening. Chart of the Day This week, the 10-year Treasury yield in the United States, which is the benchmark for long-term borrowing rates by the government and the wider economy, reached its highest level since the eve before the global financial crisis of 2007. The recent efforts of Treasury Secretary Scott Bessent to 'calm the markets via a number of small buybacks' have failed. Bessent will be speaking to the House Financial Services Committee of Congress on Tuesday. Watch today's events The Fed's two day policy meeting starts * U.S. Treasury Sec. Scott Bessent Appearance Before Congress (10 am EDT) * U.S. bond auction for 20 years (1 p.m. ET), New York Fed Manufacturing?survey in September (8:30 am EDT). Check out my most recent column to see why AI could be too big and slow. Listen to the Morning Bid Daily Podcast, in which we discuss all that Scott Bessent has to do as he prepares to head to the Hill later today. Subscribe to the podcast and hear journalists discussing the latest news in finance, markets, and markets. Want to receive Morning 'Bids in your email every morning? Subscribe to the newsletter by clicking here. You can find ROI's website and follow us on LinkedIn or X. The opinions expressed are solely those of the authors. These opinions do not represent the views of News. News is a non-partisan organization that adheres to the Trust Principles and values integrity, independence, freedom from bias, and impartiality.
-
South Korea and Kazakhstan sign MoU to explore mineral trade, explore atomic energy
Seoul reported that South Korea and Kazakhstan signed an 'understanding' on Tuesday regarding cooperation in the peaceful use of nuclear energy. Their leaders also pledged to work together on a range of issues, including trade, energy, critical minerals, and AI. The South Korean Presidential Office said that President Lee Jae Myung of South Korea and President Kassym Jomart Tokayev of Kazakhstan discussed the potential for future cooperation in a period of economic turmoil. According to the president's office, Lee told Tokayev that Kazakhstan has a great deal of potential for future high-tech industry. On Tuesday, 13 documents were signed. These included the MoU on Atomic Energy as well as agreements on crude oil, science and technology. Details were not immediately available. Lee will host Tokayev, as well as the leaders of other Central Asian nations on Wednesday to discuss expanding their cooperation. Seoul pursued its so-called New Northern Policy, launched in 2017, to deepen economic ties with Central Asia as well as other Eurasian countries. The energy-poor nation is seeking to diversify the supply of energy and minerals and increase industrial exports. Han Seong-sook, the South Korean Prime Minister, told business leaders in a forum that it was time to expand trade beyond crude oil and uranium. He also said they should include lithium and other critical minerals. Newsis reported that she invited companies to use?South Korea?s advanced technology to explore and produce?Kazakhstan?s rich mineral resources in order to address the growing uncertainty of global supply chains.
-
China's aluminium production reaches record levels in August, with a capacity cap in sight
Data showed that China's aluminum production reached a record high in August. Strong margins encouraged smelters, despite the?long-standing national capacity cap, to maximize?output. Data from the National Bureau of Statistics revealed that production?rose by 4.7% compared to a year ago, reaching 3.98 million metric tonnes. The output of the world's largest aluminium producer increased to just under 3.9 million tonnes in July, and was near to the previous monthly record of 3.979 millions tons that was recorded in June. China produced 31,12 million tons in the first eight months of this year, an increase of?3.9% over the same period the previous year. The country's 45 million-ton maximum capacity would be exceeded if production?were to increase at that rate. Since 2017, China has tightened its controls on the aluminium smelting capacities. In 2025, China will produce 45.02 millions tons of primary aluminum. This is a 2.4% increase from the previous year. Strong margins have supported higher output despite the increase in prices due to the disruption of supply caused by the Middle East?war. Benchmark three-month aluminum has gained 8% this year and was up by?1.82% during August. In August, the production of ten?nonferrous?metals, such as copper, aluminum, lead, zinc, and nickel, increased 1.6% compared to a year ago. The production of 10 metals from January to August increased by 2.9%, reaching 55.58 millions tons.
-
Syngenta files Hong Kong IPO with the aim of raising at least $5 billion.
Two people who have direct knowledge of this matter say that the Swiss company Syngenta Group, which produces seeds and agrichemicals, has filed confidentially for a Hong Kong IPO, with a goal to raise at least five billion dollars. One of the sources said that the Basel-based firm, controlled by the Chinese state-owned Sinochem hopes to launch its offering as early as this year or, if not, as early as 2027. Sources said that depending on the response of the market, the size of the offering could reach $10 billion. According to LSEG, if the offering size is that large, it will be Hong Kong's largest IPO since 2010. Hong Kong's IPO industry is booming. Initial public offerings and secondary listing have raised $45,8 billion this year compared to $24 billion during the same period in last year. Sources who refused to be identified because the information wasn't public said that the timing, size of the offer and valuation of the company had not been finalised. Syngenta responded to the question by saying "We don't comment on market speculation." Sinochem didn't immediately respond to an inquiry for comment. Bloomberg News reported the filing for the first time on Tuesday. The company was said to be considering raising $5 billion. Sinochem would be able to revive its efforts to bring?Syngenta?public after the company canceled a Shanghai listing planned for 2024. GLOBAL GIANT FARMING Syngenta is a company that sells seeds, crop protection products such as insecticides, fungicides and herbicides. It also provides digital and biological farming products. According to its website, it has over 50,000 employees spread across?90 different countries. Syngenta has reported a decrease in sales and profits for the second quarter following its exit from low-margin business in China. Sales fell 7% in the third quarter to $5.7 billion. Earnings before interest, taxes, depreciation and amortisation, or EBITDA, dropped 2%, to $1 billion. EBITDA increased by 4% when currency was adjusted. Syngenta appointed?Hengde qin, its chief operating officer, as its new CEO in July. He will take over from Jeff Rowe who is due to return home to the United States at the end of August.
Esgian Week 36 Report: New Contracts Awarded in India, Guyana and West Africa
Esgian provides an update on new contract awards for Greatship, Transocean, Noble and Stena Drilling in its Week 36 Rig Analytics Market Roundup.
Report Summary
Contracts
Greatship has secured a contract with Cairn for its 350-ft Greatdrill Chetna jackup drilling rig in India. The contract is firm for six months at a dayrate of approximately $90,000, starting in late November or early December 2024.
Transocean has secured a binding letter of award from Reliance Industries for its 6th generation 12,000-ft drillship Dhirubhai Deepwater KG1 in India.
ExxonMobil has awarded 4.8 years of backlog to Noble's four drillships operating under a Commercial Enabling Agreement (CEA) offshore Guyana. This additional time has been assigned evenly to each of the four rigs, extending their contract durations from the second quarter of 2027 to the third quarter of 2028.
Stena AB, owner of drilling contractor Stena Drilling, has confirmed that ExxonMobil extended its contract for the 10,000-ft drillship Stena Carron offshore Guyana until 30 June 2025.
Constellation 9,000-ft semisubmersible Alpha Star has started a new contract offshore Brazil, carrying out workovers at BC-10 field in the Campos Basin for Shell.
Mexican state oil company Pemex has requested an extension to the contracts for Constructora y Perforadora Latina (CP Latina) jackups La Santa Maria and La Covadonga. The two 400-ft jackups are currently contracted to Pemex until 31 December 2024.
Shelf Drilling has secured new contract awards for two jackup rigs in West Africa.
Drilling Activity and Discoveries
Mexican state oil company Pemex has received permission from regulatory agency Comisión Nacional de Hidrocarburos to drill the Tlalkivak-101EXP exploration well with owner operated 400-ft jackup Kukulkan.
The Norwegian Ocean Industry Authority (Havtil) has given consent to OKEA for the use of Odfjell Drilling’s 6,560-ft semisub Deepsea Nordkapp for pilot hole drilling in block 31/7 in the North Sea.
Oil production has started from the Tyrving field in the Alvheim area of the North Sea offshore Norway.
ExxonMobil is using Stena Drilling 10,000-ft drillship Stena Carron for exploration drilling at the Hammerhead-4 well on the Stabroek Block offshore Guyana.
Chevron has begun water injection operations at the Jack/St. Malo and Tahiti facilities in the US GOM to boost oil and natural gas recovery from these deepwater fields.
Murphy Oil Corporation is preparing to spud the Sebastian #1 exploration well in 6,571 ft of water on Mississippi Canyon Block 387 in the US GOM this month.
Island Drilling’s 4,000-ft semisub Island Innovator has recently started the 2024 abandonment campaign in Mauritania for Tullow Oil, managed by Petrofac.
Talos Energy has reported that the Walter Oil & Gas-operated Ewing Bank 953 well discovered commercial quantities of oil and natural gas.
Esso Australia Resources, a subsidiary of ExxonMobil, has submitted an environment plan to NOPSEMA for the drilling of the production well as part of the Kipper Stage 1B development of the Kipper gas field in VIC/L25 in the Bass Strait, off the coast of Australia.
Demand
In recent weeks, the UK government has announced a number of measures which have materially increased the level of uncertainty in relation to the UK’s oil and gas sector, leaving investment decisions in this context in a challenging situation.
Chevron and its partners in the Aphrodite field on Block 12 offshore Cyprus have submitted an updated plan for development of the field to the government of Cyprus, based on a previously approved development and production plan.
Hartshead Resources has re-processed seismic over its P2607 licence, which comprises its Phase I project (Anning and Somerville fields), located in the UK North Sea.
UK operator EnQuest has shared its disappointment over the current fiscal situation in the UK, warning about the impact of the new government’s announced policy changes on investment in the UK North Sea.
Mobilisation/Rig Moves
Borr Drilling’s 400-ft jackup rig Gerd has completed its contract with Bunduq in the UAE.
COSL Drilling’s 2,460-ft semisub COSLPioneer has finished its contract with CNOOC in the UK waters of the North Sea and is heading to Norway.
Shelf Drilling’s 300-ft jackup Harvey H. Ward has moved to Ras Al Khair anchorage, marking the beginning of its contract suspension with Saudi Aramco.
Valaris' 350-ft jackup Valaris 147 has moved to Saudi Arabia's Ras Tanura anchorage, starting its contract suspension with Saudi Aramco.
Rig Sales
Transocean has entered into agreements with an undisclosed third party to sell the 10,000-ft semisubmersible Development Driller III and associated assets for $195 million and the 12,000-ft drillship Discoverer Inspiration and associated assets for $147 million.
Stena Drilling 5,000-ft semisubmersible Stena Spey has been sold for recycling and is expected to be towed to a yard in Turkiye in January 2025.
Other News
Noble Corporation and Diamond Offshore Drilling, Inc. have received clearance from the Australia Competition & Consumer Commission, in relation to the pending merger.
Norwegian oil and gas operator DNO has completed the acquisition of stakes in five oil and gas fields, including an operatorship, in the Norne area in the Norwegian Sea from Vår Energi.
Australian oil and gas company Santos informed on Monday that the Bayu-Undan field joint venture has agreed terms of a Sale and Purchase Deed (SPD) to transfer a 16% stake in the Bayu Undan upstream project to Timor GAP, a Timor-Leste government-owned oil company, with an economic date of 1 July 2024.
Energy industry trade body, Offshore Energies UK (OEUK), on Monday 2 September released data which models the impact of the UK’s government’s announced stronger Energy Profits Levy (EPL) on the UK economy.
Conrad Asia Energy has signed a binding Gas Sales Agreement (GSA) for the sale and purchase of the export portion of natural gas from the Mako gas field with Sembcorp Gas Pte Ltd in Singapore.
Brazilian independent company 3R Petroleum has changed its name following the merger with another independent oil company, Enauta.
bp Trinidad and Tobago (bpTT) has agreed to divest its Immortelle, Flamboyant, Amherstia, and Cashima offshore gas fields and associated production facilities to Perenco T&T. The undeveloped resources from the Parang field are also part of the agreement.
Indonesia's Ministry of Energy and Mineral Resources has announced the winners of the first bidding round for oil and gas blocks in 2024.
Sunda Energy has submitted applications for two offshore licence areas in the Philippines.
As of 3 September 2024, Wintershall Dea's E&P business, excluding Russia-related activities, has been transferred to Harbour Energy.
Greenpeace Nordic and Natur og Ungdom (Young Friends of the Earth Norway) are facing the Norwegian government in court once again, in appeal proceedings starting on 4 September and running until 12 September 2024.
Noble Corporation plc has completed its acquisition of Diamond Offshore Drilling, Inc. The acquisition adds around $2 billion of backlog to Noble, which now reports its current backlog at $6.7 billion.