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Viridien, TGS Start 3D Seismic Survey Offshore Northern Brazil
French seismic firm Viridien, in collaboration with joint venture partner TGS, has started the Megabar Extension Phase I survey in the Barreirinhas Basin offshore Northern Brazil.The 5,300 sq km multi-client 3D seismic survey will be acquired by TGS and imaged by Viridien and builds on Viridien’s existing Megabar survey coverage.The Barreirinhas Basin features proven petroleum systems and giant discoveries in adjacent Guyana and Suriname basins that demonstrate analogous deepwater plays.Recent licensing activity by IOCs along the equatorial margin, coupled with the success of Brazil’s 5th Cycle Permanent Concession Offer, supports growing momentum for the region.Megabar Extension Phase I will be acquired in a promising area with proven geological potential but no existing 3D data. TGS will deploy the purpose-built streamer vessel Ramform Tethys, equipped with its proprietary GeoStreamer technology, for high-quality 3D data acquisition. Acquisition is scheduled to commence in early September and conclude by late November.Imaging of the Megabar Extension survey will be conducted by Viridien’s Subsurface Imaging experts, leveraging their high-end proprietary time-lag full-waveform inversion (TL-FWI) and reverse time migration (RTM) imaging technologies to provide enhanced geological understanding.This will help to reveal new play potential, improve prospect evaluation and de-risk exploration. Initial imaging products are expected by the third quarter of 2026, and final data expected to be available in the first quarter of 2027.“We are pleased to commence this new Megabar Extension survey as part of our long-term commitment to unlocking high-potential frontier areas for new exploration opportunities in Brazil.2Megabar Extension will give our clients an unmatched early-mover advantage in a strategic area of the underexplored Barreirinhas Basin in one of South America’s most promising exploration plays.“With exclusive access to the first ultramodern 3D seismic data set in this area, explorers will be able to identify opportunities faster, make more confident decisions, and position themselves ahead of the competition for upcoming bid rounds,” said Sophie Zurquiyah, CEO of Viridien.
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James Fisher Makes ‘Historic’ Offshore Wind Monopile Cut
James Fisher and Sons, a provider of specialist marine and energy solutions, has completed the world’s first abrasive cut on a 10-meter-diameter offshore wind monopile, marking a significant milestone for decommissioning operations in the renewable energy and oil and gas sectors.The operation deployed a bespoke external abrasive cutting tool, which has been designed, built and tested in the U.K., to meet the growing demand for safe, cost-effective offshore wind maintenance and decommissioning solutions.The abrasive water jet system severed the full diameter of the monopile in a single, precision-controlled cut, enabling safe recovery to the deck of the vessel.This project addressed a unique complex challenge, correcting installation issues in turbine foundations.As offshore wind markets mature around the world, operators are increasingly faced with the need to decommission or remediate assets. Over the longer term, as the global fleet of projects expands and reach end of life, this capability provides a safe and efficient solution, which minimizes disruption to the surrounding marine environment, according to James Fisher and Sons.“This world-first achievement demonstrates what is possible when engineering expertise and innovation are applied to the evolving needs of offshore wind. By developing a new tool and approach, we’ve shown that large-scale decommissioning can be done safely, efficiently and with the environment front of mind,” said Mark Stephen, Product Line Director, Decommissioning, CFE and Subsea Tooling at James Fisher.“This project shows the difference that true engineering ingenuity can make when the industry faces unexpected or unprecedented challenges. Offshore wind is growing rapidly worldwide, and with that growth comes the responsibility to manage assets safely and sustainably throughout their lifecycle.“By developing and proving this capability now, we’re helping our customers prepare for both today’s complex challenges and tomorrow’s large-scale decommissioning needs,” added Neil Sims, Head of Energy at James Fisher.
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McGeever: Gold's rise as a reserve currency is unstoppable.
Concerns over inflation, the deteriorating fiscal health of the United States, Federal Reserve independence and geopolitical instabilities are raising concerns about the stability long-term Treasuries – traditionally the safest asset on the planet. Many central banks have responded by turning to gold, a "barbarous" relic. Gold and government bonds fortunes have diverged dramatically this year. This split was highlighted by the fact that bullion prices reached a new record high, and bond yields on long-dated bonds hit levels they hadn't seen for years, or in some cases ever. U.S. Treasuries aren't selling off as quickly as European or Japanese Bonds, in part because central banks and institutions that manage foreign exchange reserves still have a strong demand for U.S. government debt. In recent years, Treasuries' share of global reserves has remained essentially unchanged, while gold holdings by central banks have grown dramatically, thanks to an accelerating price rise and increased demand. GOLD STANDARD For the first time in 1996, gold has surpassed Treasuries as the second largest global reserve asset, after the U.S. Dollar. According to a study by the European Central Bank, central banks hold 36,000 tonnes of gold. They have accumulated huge amounts since 2022, when Russia invaded Ukraine and inflation spiked after the pandemic. In the last three year, they have bought more than 1,000 tons of gold each. This is a record and twice as much as the average annual purchase in the previous decade. Gold is currently trading at over $3,500 per ounce. This represents a 35% increase in the past year. Central banks' gold reserves are worth $4.5 trillion. This is a significant amount more than the $3.5 trillion in Treasuries that central banks have. In recent years, the share of Treasury bonds in total reserves has also been decreasing. By some measures, it is only 23%. This is down from a peak of over 30% in the 2010s and well below gold's 27%. DAYS CHANGED In 1996, gold was the last reserve asset to account for more than Treasury bonds. This date is important. In the late 1990s, many European countries aggressively sold gold in advance of the introduction of the euro. Unexpectedly, Britain was the largest seller, despite not even being a member of the single currency union. In August 1999, gold fell to $250 per ounce, a 40% drop from the beginning of 1996. The "Washington Agreement", which was adopted by central banks in September 1999, effectively capped their sales. The late 1990s were not gold-friendly. The late 1990s were a time of steady growth, low inflation, moderate macro volatility and the rarest occurrence - an American budget surplus. In the last three decades, global macro-environment has changed dramatically, and is now much more favorable to gold. Treasuries are in relative decline. Tavi Costa is a macro-strategist at Crescat. He says that there are many parallels with what we see today and in the 1970s, when inflation, monetary instability and geopolitical changes made gold an important strategic reserve asset. Costa says that the fact that foreign central bank reserves now exceed U.S. Treasury bonds is "a significant milestone" and signals a longer-term structural change to reserve management. What we're seeing could be the beginnings of a major realignment of global reserve composition. Could gold regain the 75% share it had in central banks' reserves assets during the 1980s and 1990s? This is unlikely, and would require years of double-digit inflation and a prolonged recession. What will stop the yellow-metal footprint from growing? This would require that inflation pressures and geopolitical risks, as well as economic uncertainty, to be significantly reduced. Reserve managers will continue to buy gold because none of this is likely to happen in the near future. You would not bet against that.
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BMW CEO says EU ban on combustion engines in 2035 is a "big mistake" and sees strong sales for 2025
BMW CEO Oliver Zipse called the European Union’s plan to phase out combustion engines by 2035 a “big mistake”, and called for emission measures that cover a vehicle’s entire supply chain. Zipse stated in an interview published by Politico on Friday that a date fixed for the transition would risk ignoring emissions along the entire value chain. This includes battery production and fuel sources. He said that fuel producers should also be held responsible for allowing climate-friendly fuels after 2035. In an interview that was published Friday morning, he stated: "We don't do ourselves any favours by setting arbitrarily future dates by which we expect all industries to adapt." The current rules are absurd because the Shells and BPs do not have targets. Zipse stated that despite the challenges facing the automotive industry, such as high tariffs, low demand, and Chinese competition, BMW is still on track to reach its goal of selling more than 2,500,000 vehicles by 2025. He said that as of August, BMW was ahead of the numbers of last year. He spoke ahead of the IAA, Europe's largest motor show, in Munich where the Bavarian company will unveil the first model of its new electric vehicle class. (Reporting and editing by Emelia Sithole Matarise; Thomas Escritt)
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JX Advanced Metals will reduce copper production and smelting capacities as margins erode
JX Advanced Metals is likely to cut its copper production in fiscal 2025 by tens or thousands of tons compared to earlier plans. The company will also unveil a roadmap for reducing smelting capacities by March. Due to the shortage of concentrate and increasing smelting capacity, Japanese copper smelters have been struggling with tumbling treatments and refining costs (TC/RCs). Some Chinese smelters processed copper at no cost for Chilean miner Antofagasta in June. This was a record-low. Hayashi said this week that "in the short-term, we plan on reducing annual electrolytic output by several tens thousands of tons compared to our previous estimate because we cannot purchase concentrates in current conditions." JX, a major copper smelter in Japan with a production capacity of 450,000 tons per year, warned that possible cuts could be made. Its fiscal period ends in March. Hayashi, who did not give a scale, said that Hayashi intends to shrink the capacity in order to reduce risk when it comes to concentrate procurement and smelting. JX exports roughly half of its refined copper, mostly to China. However, the demand for this product could fall as more domestic smelters are built. Mitsubishi Materials, a rival company, is also considering reductions. Hayashi said that despite the cuts, smelting is still essential to recover rare metals such as tantalum. This metal is critical for semiconductor materials and a key business growth. He said, "We are examining the optimal scale in various aspects including the use recycling materials." Sources in the industry said that mid-year negotiations between Japanese smelters, and global miners, broke down without a TC/RC agreement, forcing firms not to fulfill their contractual term supplies. Hayashi said that some miners were willing to negotiate with Japanese companies different terms from those of the Chinese benchmark agreements to sustain the fourth largest smelting industry in the world. JX has accelerated its shift away from mining and melting towards semiconductor materials. In June, JX announced that it would purchase a stake of the Copi mineral-sands project, which is led by RZ Resources in Australia, in order to secure rare metals for chip materials. Hayashi stated that the company is actively looking for new projects. He added that its future upstream deals will be much smaller than their previous Chilean copper mine investments, which resulted heavily in impairment losses. JX has improved investor engagement and streamlined its decision-making since its March listing. Hayashi, the CEO, expressed confidence that it would be able to achieve fiscal 2027 goals including an operating margin between 12% and 17%. JX wants to double its operating profit by 2040 to 250 billion yen (US$1.7 billion). Hayashi stated that "achieving our goal of 2040 will require both organic growth and large-scale M&A beginning in fiscal 2028." (Reporting and editing by Jamie Freed; Kentaro Okasaka, Yuka Obayashi)
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Bond yields fall before US payrolls, as Asian stocks follow Wall Street's upward trend
The Asian stock market followed Wall Street to a new record high on Friday, and Treasury yields fell to their lowest level in four months as traders bet that the Federal Reserve will cut rates later this month despite the fact that the U.S. employment data is due to be released at the end of the day. The U.S. Dollar eased slightly on Friday, giving back gains made Thursday when the dollar was buoyed up by weak labour market data. Gold has remained steady since Thursday, when it fell from its all-time high. Investors waited for an OPEC+ summit this weekend to discuss further production increases. The markets are almost certain that the Fed will cut rates by a quarter point at the end of its two-day meeting to set interest rates on September 17. They have priced in a total of 60 basis points reductions for this year. Data released on Thursday showed that Americans filed more new unemployment benefit applications than was expected in the previous week. Meanwhile, hiring by private companies slowed down in August. This is further evidence of a softening labor market. Economists anticipate that Friday's nonfarm payrolls report will show an increase of 75,000 jobs for August. This is not much more than the 73,000 number for July. That figure was the first to ignite expectations for a Fed rate cut in the near future. Fed Chair Jerome Powell confirmed this speculation later with an unexpectedly doveish speech during the closely watched Fed Symposium in Jackson Hole last month. Ken Crompton is the head of rates at National Australia Bank. He said that unless there's a really stellar payrolls report, it's difficult to see anything that will change the market's mind about a September rate cut. The terminal rate, and how to get there, is still a question. The S&P 500 finished at a record-high on Thursday, thanks to expectations of a more accommodative monetary environment. The Nasdaq rose 1%, just missing its all-time high closing price from August 13th. S&P futures were 0.1% higher Friday and Nasdaq Futures gained 0.3%. The Nikkei 225 index in Japan rose by 0.8%, while the Taiwanese benchmark stock index also increased by 0.8%. Both markets are near recent record highs. Hong Kong's Hang Seng index and mainland Chinese blue chip index each gained about 0.4%. Australia shares gained 0.3%. Kyle Rodda is a senior financial analyst at Capital.com. He said that the non-farm payrolls report released tonight was a "sink or swim" moment for markets. He said that the question was "whether the Fed is in a position to lower interest rates and cushion the economy or if they are behind the curve." If the data indicate that an economy is accelerating, it could cause volatility and risk aversion. This week, long-term sovereign bonds have seen a lot of volatility, as fiscal deficits worsened from Washington to Brussels, London to Tokyo. Political instability is often to blame for this. The bond yields rose sharply in mid-week due to a growing belief that the Fed would soon cut rates. The yields on 30-year Treasuries fell to a 3-week low of 4.8410% in Tokyo on Friday, while those on 10- and 2-year Treasuries eased to 4-month lows of 4,1530% and 3,5816% respectively. The yields on Japanese 30-year government bonds fell to 3.235% for the second consecutive day, after reaching a record high of 3.255% on Wednesday. The U.S. Dollar Index, which measures currency against six major counterparts, fell 0.1% to 98.095 and regained the ground that it lost on Thursday. The week-end gain is 0.3%. This comes on the heels of a big Tuesday when sterling and the yen both fell amid renewed fiscal concerns. Gold rose 0.2%, to $3,552, retracing some of the 0.4% drop on Thursday. The market has stabilized after a seven-day, 6.3% rally that culminated in a record high of $3,578.50, reached on Wednesday. Brent crude futures dropped 0.3%, to $66.77 per barrel. U.S. West Texas Intermediate crude fell 0.3%, to $63.29. Two sources with knowledge of the discussions said that eight members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will discuss the possibility of raising production at a Sunday meeting in October. Brent fell 3.5% in the last three days and WTI dropped 3.8%.
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The 'Alligator Alcatraz" operations can continue, a divided appeals court rules
The federal appeals court allowed "Alligator alcatraz", the federal detention center for migrants, to resume its operations on Thursday. This decision overturned a lower court's ruling ordering the facility to stop accepting new detainees as well as halting construction. The 11th U.S. The 11th U.S. Circuit Court of Appeals ruled with a divided opinion that the Trump administration will likely prevail in a court battle against environmental groups who claim the facility threatens the Everglades' wildlife and the Everglades itself. Two judges supported the Trump administration and one judge disagreed. The majority of the court ruled that this project, which was funded by Florida state funds, did not require the environmental review required for federally-funded construction projects. The court found that although both Florida Governor Ron DeSantis, and Homeland Security Secretary Kristi Nuem, have stated the federal government would pay for the expansion of the detention facility there was no evidence to show federal funds were used. DeSantis stated in a social media video on Thursday that Trump's immigration enforcement was ready to be supported by the facility. In a post on social media, the U.S. Department of Homeland Security referred to this ruling as a "huge win". DHS stated that "this lawsuit was never about environmental impacts from turning an airport developed into a detention center." It has always been about open-borders activists, judges and other people trying to prevent law enforcement from removing criminal aliens who are dangerous from our communities. Friends of the Everglades is one of the environmental groups that filed the lawsuit. It stated on its website the detention centre was built in a hurry and would cause environmental damage to an important stretch of American wilderness. The facility, located 60 km (37 miles) west of Miami, is a subtropical wetland home to alligators. Crocodiles are also present. This is the imagery the White House used to demonstrate its resolve to remove migrants who it believes were wrongly permitted to remain in the U.S. by former President Joe Biden. According to court documents, the detention center was built for $250 million and spans over 18 acres (7 hectares). It is located on a site in Miami-Dade County (formerly Collier County) that used to be a "small, but busy working airport". According to the lawsuit filed by environmental groups, the reconstructed site has already been used to house 900 migrants and could accommodate thousands. In June, two environmental groups filed a motion to stop further construction on the detention center, claiming that it violated federal and state environmental laws. Trump, who toured the site and dismissed environmental concerns, said the detention center was a model for what he'd like to do nationally. The Republican president has been a proponent of aggressive immigration and border policy for over a decade. He has a Florida home. Dietrich Knauth reported from New York, Kanishka Singh from Washington and Edmund Klamann edited the article.
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ConocoPhillips will begin layoffs in November, the company states in a state notice
ConocoPhillips, a U.S. oil company, will start company-wide layoffs on Nov. 10 according to a notice that was sent out by the company Thursday. ConocoPhillips' CEO Ryan Lance told employees via video on Wednesday that the company would be cutting 20-25% from its workforce in order to undergo a restructuring. Later, the company confirmed that report. ConocoPhillips spokeswoman Dennis Nuss stated that the company informed the Texas Workforce Commission on Thursday that they anticipate the number of job cuts in Houston will reach the threshold required to report the information to the state. Nuss said that ConocoPhillips offers 60-day notice to affected employees, as well as severance, outplacement and assistance. A document sent to all employees, and seen by us, predicts that the end of employment dates will begin in 2025 during the first week of December. The document stated that ConocoPhillips had not yet decided which employees would be laid off, but added that the move will be permanent. Reporting by Georgina Mccartney and Arathy Sommesekhar, Houston; editing by David Gregorio
Oil prices drop as investors wait for OPEC+ production decision
Early trading on Friday saw oil prices fall for the third day in a row as investors waited for an OPEC+ summit this weekend, which will discuss further production increases.
Brent crude futures dropped 23 cents or 0.3% to $66.77 per barrel at 0012 GMT. U.S. West Texas Intermediate Crude fell 19 cents or 0.3% to $63.29.
Two sources with knowledge of the discussions said that eight members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will discuss the possibility of raising production at a Sunday meeting in October.
OPEC+ would also be able to start unwinding a second layer, around 1.65 million barrels of oil per day or 1.6% of global demand, a full year earlier than planned.
The U.S. crude stockpile posted a surprising build of 2.4m barrels in the last week, as refineries prepared for maintenance season. In a survey, analysts had predicted a 2-million barrel draw, but the American Petroleum Institute said that stocks increased by 600,000 barrels.
A White House official confirmed that U.S. president Donald Trump had told European leaders Thursday to stop buying Russian crude oil.
If Russia cuts its crude oil exports, it could increase the price of global oil. (Reporting and editing by Georgina McCartney, Arathy S. Somasekhar)
(source: Reuters)