Two Wildcat Wells on Equinor’s North Sea Drilling Agenda

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• Two Wildcat Wells on Equinor’s North Sea Drilling Agenda

  The Norwegian Offshore Directorate (NOD) has granted Equinor a drilling permit for two wildcat exploration wells in the North Sea.The permit is for wellbore 15/5-8 S and 15/5-8 A, in production license 1140.The license is operated by Equinor with 60% working interest, with partner Aker BP holding the remaining 40%.The drilling operation will be conducted using Odfjell Drilling’s Deepsea Atlantic semi-submersible drilling rig.The rig is sixth generation deepwater and harsh environment unit, which can operate at water depths of up to 3,000 meters.The dual derrick, dynamic-positioned rig incorporates enhanced GVA 7500 designs. Its maximum drilling capacity is 10,670 meters

• Sources say Phillips 66 will begin laying off workers at its Los Angeles refinery in December.

  Phillips 66 is expected to lay off most workers at its 139,000-barrel-per-day Los Angeles-area refinery in December, sources familiar with the matter said on Thursday. The company announced that it would shut down the facility in October and start winding down its operations in October 2025. Two months later, the company will start reducing its workforce. About 600 employees work at the Los Angeles facility, along with 300 contractors. The United Steelworkers Union represents over half of the hourly employees. Sources said that a few of the retained employees will be transferred to Phillips 66 Los Angeles Marine Oil Terminal. Phillips 66, a Phillips 66 spokeswoman said: "Since it was announced that these facilities would be idled, Phillips 66 is committed to helping its employees and contractors make this transition." The spokesperson refused to comment on the plans following the closure of Los Angeles' refinery. Valero Energy announced in 2013 that it would close its Benicia refinery (145,000 bpd), one of the two refineries remaining in the state. Two refineries in the state produce about 20% of the gasoline that is sold.

• Enel's Italian shareholders have approved up to 3.5 billion euros in investor rewards

  Enel, Italy's largest utility, approved on Thursday a plan for a share buyback and the option to cancel shares acquired without reducing capital. This allows Enel to reward its investors more. The board was given the authority to buy back up to 500,000,000 shares at a maximum cost of 3.5 billion Euros ($3.95 billion). Enel’s board will now decide when and how much to spend on the first tranche. Financial analysts say the utility controlled by the government could spend up to 1 billion euros on the first tranche of buybacks, in an effort to increase the value. Share buyback programs were introduced by European oil and gas companies, including Shell TotalEnergies, and Eni of Italy in order to attract investors. Endesa's Spanish subsidiary, announced recently a share buyback program worth up to two billion euros by 2027. A 500 million euro tranche of the programme was launched at the beginning of April.

• Gazprom, the Russian energy giant, has scrapped its dividend due to high interest rates

  Gazprom, the state-owned Russian energy giant, announced on Thursday that it had decided not to pay a dividend for 2024's results. This was in accordance with the position of the government and despite last year's return to profitability. The government is not helped by the absence of dividends, since it owns just under half of the share capital. It faces a number challenges, including falling oil and gas revenue, rising inflation, increased military spending, and a budget gap. Gazprom shares fell 4.42% to 130.5 roubles at the Moscow Stock Exchange as of 1335 GMT after the announcement. According to the company's own dividend policy, approved in 2019, 50% of adjusted net profits should be allocated for dividend payout. Gazprom reported last month a net income for 2024 after a loss in 2023 of nearly $7 billion, its first loss since 1999 due to the collapse of gas exports into Europe. Some market watchers have not ruled out a dividend payment. Gazprom, according to a source in the industry, is trying to reduce high debt service costs despite steep interest rates. Since last October, the central bank's main rate is at an all-time high of 21%. Gazprom’s financial report, prepared according to Russian accounting standards reveals that its interest rate on debt will double in 2024 from 238.6 to 482.5 billion Russian roubles. Analysts at PSB said that "high rates will result in Gazprom paying more interest this year. The company will likely focus on reducing its debt load rather than pay dividends." Gazprom only paid an interim dividend once since the beginning of the so-called special military operation by Moscow in Ukraine, in February 2022. This was in the autumn of the same year, due to the high gas prices that were in Europe. Gazprom did not pay any dividends on its results for 2021, the first time they have done so since 1998. This is due to high taxes and spending. (Reporting and editing by Louise Heavens/Andrew Osborn, Oksana Kobieva).

• Iran warns Israel and the US against any attack on their nuclear sites

  Abbas Araqchi, the Foreign Minister, said that the United States would be legally responsible in case of an Israeli attack against Iranian nuclear facilities. This was after a CNN report stating that Israel could be involved. Prepare for strikes Iran Iran and the U.S. - Israel's closest allie - will hold their fifth round of talks in Rome on Friday amid a deep disagreement about uranium enrichment in Iran. Washington claims that this could lead to the development of nuclear bombs. Iran denies such intent. CNN, citing intelligence sources on Tuesday, said it was unclear whether Israel had reached a final military decision and that U.S. official disagreed on whether Israel would decide to attack. In a letter to UN Secretary-General Antonio Guterres, Araqchi warned that Iran would respond firmly to any act of adventurism or illegality by Israel's Zionist regime. Araqchi stated that Iran would consider Washington a "participant in such an attack" and Tehran would need to take "special measures" if the threats continued. The International Atomic Energy Agency (IAEA) would then be informed about such actions. Araqchi, the adviser to Iran's Supreme leader, did not mention what measures are being considered. In April, Tehran could suspend its cooperation with IAEA, or transfer enriched materials to secure and unreported locations. In a separate release on Thursday, Iran’s elite Revolutionary Guards warned Israel that it would face a “devastating and definitive response” if they attacked Iran. Alimohammad Naini, the spokesperson for the Guards, said: "They're trying to scare us with war. But they're miscalculating because they don’t realize the massive popular and military backing the Islamic Republic will be able to muster under war conditions." Diplomats claim that a collapse in the U.S. and Iran negotiations, or a new deal on nuclear energy which does not ease Israeli concerns over Iran developing nuclear weapons by enrichment, could lead to Israeli attacks against its regional arch enemy. Ayatollah Ayatollah Khamenei, the Iranian Supreme Leader, said on Tuesday that U.S. demands for Tehran to stop refining its uranium are "excessive" and "outrageous," and expressed doubt about whether negotiations over a new nuclear agreement will succeed. Tehran claims that its nuclear energy program is solely for civil purposes. Iran and Israel exchanged direct fire in April and in October last year, increasing the likelihood of regional conflict.

• Rubio: Oil license expiring in Venezuela on May 27

  The U.S. Oil License in Venezuela expires on May 27, said Secretary of State Marco Rubio in a late-night post on his X account. The license of the U.S. company Chevron to operate in Venezuela was due to expire on May 27. Rubio wrote that "the pro-Maduro Biden #Venezuela oil license will expire on Tuesday, May 27 as scheduled." Requests for comments on Rubio’s post were not immediately responded to by the State Department or Treasury Department. Richard Grenell is the envoy of Donald Trump, U.S. president. Two sources said that Jorge Rodriguez, head of Venezuela's ruling party allied legislature and the person responsible for the release of the American who had been detained in Venezuela for several months, met with him in Antigua. Sources said Grenell offered to extend the wind-down phase for a license that allows the U.S. oil giant Chevron to work in the country by 60 days. The license was set to expire May 27. Chevron did not respond immediately to a comment request. The U.S. Treasury Department as well as the State Department would have to approve any 60-day extension.

• Iran's Revolutionary Guards warn Israel of any attack

  The Revolutionary Guards of Iran warned Israel on Thursday that it would face a "devastating response" if they attack Iran. This came days after CNN reported U.S. Intelligence suggesting Israel was preparing to strike Iranian nuclear sites. According to state media, the Guards spokesperson Alimohammad Naini stated that "they are trying to scare us with war. But they are miscalculating because they are unaware of how powerful the popular and military backing the Islamic Republic will be in war conditions." Tehran and Washington are set to hold their fifth round of talks in Rome on Friday amid a strong disagreement about uranium enrichment in Iran. The U.S. claims that this could be a path towards developing nuclear weapons. Iran denies such an intent. CNN, citing U.S. intelligence officials, added that it was unclear whether Israeli leaders had made a final military decision and that there were disagreements within the U.S. Government about whether Israel would decide to attack in the end. Diplomats claim that a collapse in the U.S.-Iran nuclear negotiations or a nuclear agreement which does not ease Israeli concerns over Iran developing nuclear weapons may motivate Israel to strike its regional archrival. State media reported that Ayatollah Khamenei, the Iranian Supreme Leader, said Tuesday that U.S. demand for Tehran to stop enriching Uranium is "excessive" and "outrageous." He expressed doubts about whether negotiations on a new nucleus deal will be successful. Tehran claims that its nuclear energy program is solely for civil purposes. Iran and Israel exchanged direct fire in April and in October last year, increasing the risk of a regional conflict. Mark Heinrich edited the Dubai Newsroom report.

• Reliance, India's largest solar manufacturer, will start manufacturing modules this year.

  Reliance Industries, owned by Indian billionaire MukeshAmbani, will begin production of solar photovoltaic panels this year. A company executive announced the news on Thursday. Partha P. Maitra, Reliance Industries' President of Strategy and Initiatives, said: "We are building three larger factories... to meet the clean energy needs." India is scrambling to reach its clean energy target after failing in 2022. Global Energy Monitor's report shows that the country has increased investments in this sector over the last year. However, it needs to double the capacity additions within the next five to reach its goal of 500 GW of non-fossil energy capacity by 2030. Maitra stated that Reliance plans to increase solar module production to 20 GW annually. He said that the factory's micro-power electronics and battery production will begin next year. If it happens, we will be No. The world's second largest solar PV manufacturer. The executive stated that we will be producing 14% of the total number of solar PV modules outside China. Reporting and writing by Nidhh Verma, Bengaluru; editing by Mrigank Dahniwala.

• Orlen's net profit for the first quarter of Poland's year increases on upstream gains

  Orlen, a Polish energy company, posted a 54% increase in its first-quarter profit on Thursday. Strong upstream performance offset lower sales and refinery margins. Analysts polled predicted that the company would earn 4.67 billion zlotys for the third quarter, but the actual result was 4.28 billion. Last year, the upstream segment was hit with a 7.7 billion zloty one-off write-down after the Polish government implemented a windfall to fund energy prices freezes for selected consumers. Orlen's core profits rose by 33%, to 10.17 billion Zlotys. This is a significant increase compared to analysts' expectations of 10.74 billion Zlotys. Operating profit increased by around 60% over the past year, to 6.82 billion Zlotys. This was below expectations for 7.08 billion Zlotys. Orlen stated that segments responsible for hydrocarbons distribution and extraction, as well energy, where strategic development projects were being carried out, accounted for 80 percent of the operating profits. The performance of the Downstream segment was impacted by lower margins for key products, weaker margins for petrochemicals and currency exchange effects. Energy also benefited from improved contract prices, better distribution services, and higher margins for electricity sales. Orlen noted that the Consumers & Products division also saw positive effects due to higher margins for natural gas sales to regulated customers, and on electricity sales. $1 = 3.7445 Zlotys (Reporting and editing by Milla Nissi-Prussak, Rafal Nowak, Marek Strzelecki)

• Subsea7 Secures Subsea Job for FPSO off West Africa

  Subsea 7 has secured of a subsea contract in West Africa, worth up to $150 million.Subsea7 will be responsible for transporting and installing flexible pipelines, umbilicals, and associated subsea components for the connection of a floating production, storage and offloading (FPSO) vessel as well as the pre-laying activities for an upcoming drilling campaign.Project management and engineering work will begin immediately at Subsea7’s offices in Sutton, UK and Suresnes, France, and offshore activity is expected to start in 2026.The contract has been deemed sizeable by Subsea7, meaning its value is between $50 million and $150 million “Our close and agile collaboration with our clients allows us to make possible cost-effective and reliable offshore solutions for their needs. We are pleased to be able to support this client in executing such a strategically important project in West Africa,” said Jerome Perrin, Vice President Africa, Middle East, and Türkiye for Subsea7.

• South Africa wants to sell crude oil at $100 per barrel before it will increase its stockpiles

  South Africa will not sell more strategic crude oil until global oil prices reach $100 per barrel, according to a senior energy official. Since 2022, the country has been trying to sell crude oil. The government initially cut a fuel tax in order to protect consumers from high petrol prices and diesel. Brent crude was $99 per barrel in that year. In recent weeks, global crude oil prices have been hammered by fears that President Donald Trump's tariff war will push economies across the globe into recession. Brent traded at around $66 per barrel on Wednesday. "The oil prices are too low. If you sell today, you will empty the tanks." Godfrey Moagi is the CEO of South African National Petroleum Company. He said, "We're looking to sell around $100 per barrel." South Africa's National Treasury expects to receive 4 billion Rand ($223.2m) from the sale more crude oil in the country's reserves strategic in the fiscal year ending in March 2026. However, Moagi's remarks suggest that this may not be the case unless oil prices rise globally. After the levy reduction in 2022, the government received 2 billion rand in the fiscal year 2023/24, when Brent futures were last trading at close to $100 per barrel. South Africa's strategic crude reserves are estimated to be 7.7 million barrels. Moagi stated that since 2022, two million barrels were sold to the local petrochemical company Sasol, and another 288,000 barrels to TotalEnergies' local unit. The Strategic Fuel Fund Association is a ringfenced unit within the company Moagi.

• Sources say that Elliott is poised to win at least two board positions at Phillips 66.

  Two people familiar with Wednesday's preliminary vote reported that Elliott Investment Management, an activist hedge fund, had won enough support from Phillips 66's shareholders to win two board seats in the U.S. refiner's U.S. board of directors. This is one of the biggest corporate battles of this year. Elliott wants Phillips 66, a major refiner in the United States, to sell certain assets and become a pure play refiner. It also wants to improve Phillips 66's performance within its refining division and corporate governance. This year, it sought to bring four new members to its board. The preliminary voting results show that Phillips 66 was able to hold off Elliott, but each side won two of the four seats up for election. Two sources confirm that Elliott did not receive any support from the large index funds, which often have a say in corporate voting. One source said that it received 40% of its support from Phillips employee pension fund. It is the first ever time that Elliott, the most active activist investor in the world, has had a campaign put to a vote. (Reporting and editing by Louise Heavens, Tomasz Janovowski and Svea Herbst Bayliss)