2025-07-07 21:33
Chevron prepares severance option for Hess workers pending deal close Companies still await outcome of arbitration case with Exxon Chevron, Hess IT teams work to prepare integration HOUSTON, July 7 (Reuters) - Chevron (CVX.N) , opens new tab is laying the groundwork to swiftly close its planned acquisition of smaller oil producer Hess (HES.N) , opens new tab, according to two sources and an industry analyst, including by preparing a severance program for some Hess workers. The preparations come as both companies await a decision in a legal challenge from larger rival Exxon Mobil (XOM.N) , opens new tab that will make or break the $53 billion deal. Sign up here. Completing the Hess acquisition is key to Chevron CEO Mike Wirth's strategy. Chevron would gain Hess' 30% interest in the Stabroek oilfield block in Guyana, which is operated by Exxon and holds more than 11 billion barrels of oil equivalent, providing a critical addition to Chevron's declining oil and gas reserves. Chevron has assigned roles in its information technology team to work on the Hess integration, according to an internal organizational chart that Reuters reviewed. Members of that team have met regularly with counterparts at Hess in recent months to prepare logistics of combining the two companies, said one Chevron employee and a second source familiar with the meetings. Both sources declined to be named while discussing the confidential work. Representatives from Chevron have also held several town hall meetings with Hess staff, the second source said. Hess employees were informed they could request a severance package if they are not interested in a position with the combined company, according to a written notice to staff that was seen by Reuters. Chevron is in the midst of a restructuring that includes laying off up to 20% of its workforce, and Hess had about 1,800 employees at the end of 2024. The preparations are intended to help Chevron with ambitious targets for closing the deal. The company aims to legally close the acquisition within 48 hours of resolving the arbitration and complete operational aspects of absorbing the company within 45 days, one of the sources said. It can typically take several months for companies to close an acquisition after a deal is announced. Exxon, for example, announced it planned to acquire Pioneer Natural Resources in October 2023 and closed the deal in May last year. "We look forward to completing the transaction and welcoming Hess to our company," a Chevron spokesperson said in a statement. Hess declined to comment. Chevron initially expected to close the Hess acquisition in the first half of 2024. That was delayed due to arbitration claims from Exxon and CNOOC (600938.SS) , opens new tab, the other minority partner in the Guyana joint venture, who argue that they have a contractual right of first refusal to purchase Hess' stake in the Stabroek block. Hess and Chevron argue the clause does not apply to the sale of the whole company. If they lose the arbitration or are unable to agree on an acceptable resolution with Exxon and CNOOC, the acquisition would fail, according to the terms of the deal. Biraj Borkhataria, an analyst with RBC Capital Markets, met with Chevron Chief Financial Officer Eimear Bonner in June and said the executive acknowledged that the lengthy arbitration dispute has weighed on the company's stock price, but also said the time has allowed for integration planning. Bonner indicated Chevron could close the deal quickly after resolving the arbitration dispute, Borkhataria said in an interview. A three-member arbitration panel that reviewed the dispute over the Stabroek block has reached a decision, Reuters reported on Thursday. The Paris-based International Chamber of Commerce, which is overseeing the arbitration case, is now reviewing the decision before it is released to the parties. https://www.reuters.com/business/energy/chevron-preps-quick-closing-hess-deal-awaits-result-exxon-dispute-2025-07-07/
2025-07-07 21:23
WASHINGTON, July 7 (Reuters) - The Trump administration on Monday wound down a license allowing shipments of liquefied petroleum gas (LPG) to Venezuela's state energy company Petroleos de Venezuela SA (PDVSA), the U.S. Treasury Department said on Monday. Offloading of LPG is allowed until September 5, provided that the gas was loaded on a vessel on or before July 7, it said. Sign up here. Venezuela has not used the license to buy the shipments of LPG, originally issued in 2021, market sources said. LPG is mainly used as a cooking fuel in the country, a member of OPEC. https://www.reuters.com/business/energy/us-allows-offloading-some-liquefied-petroleum-gas-shipments-treasury-says-2025-07-07/
2025-07-07 21:19
July 7 (Reuters) - The U.S. nuclear regulator has allowed utility Vistra (VST.N) , opens new tab to extend the operation of its Perry nuclear power plant by an additional 20 years through 2046, the company said on Monday. The company is currently operating under its initial 40-year license and had submitted its application to the Nuclear Regulatory Commission for renewal in 2023. Sign up here. The U.S. Energy Information Administration expects electricity consumption to hit record highs in 2025 and 2026, fueled by surging demand from data centers supporting Big Tech's AI growth. The 1,268-megawatt Perry facility is the last of Vistra's six nuclear reactors to secure a license extension, enabling all of them to operate for a total of 60 years. https://www.reuters.com/business/energy/vistra-gets-20-year-extension-its-ohio-power-plant-2025-07-07/
2025-07-07 21:09
TRIPOLI, July 8 (Reuters) - Oil Majors BP (BP.L) , opens new tab and Shell (SHEL.L) , opens new tab have made agreements with Libya's National Oil Corp (NOC) to conduct studies for hydrocarbon exploration and development at three Libyan oilfields, NOC said on Monday. Libya, Africa's second-largest oil producer and a member of the Organization of the Petroleum Exporting Countries, has suffered from disruptions to its oil activities due to disputes between armed rival factions over oil revenues that have often led to oilfield shutdowns. Sign up here. Foreign investors have been wary of putting money into Libya, which has been in a state of chaos since the overthrow of Muammar Gaddafi in 2011. However, oil giants like Eni (ENI.MI) , opens new tab, OMV (OMVV.VI) , opens new tab, BP, and Repsol (REP.MC) , opens new tab resumed exploration activities in Libya last year after halting them for a decade. BP will reopen its office in the capital Tripoli during the last quarter of 2025, NOC said in its statement on Monday. It also said it signed a memorandum of understanding with BP to conduct studies to assess the potential for hydrocarbon exploration and production in the Messla and Sarir oilfields, as well as in some surrounding exploration areas. BP will also study broader "unconventional" oil and gas potential within the country, which refers to extracting hydrocarbons trapped in porous rock formations, requiring specialised extraction technologies such as fracking. The British oil major had re-entered Libya in 2007 with an exploration and production sharing agreement covering exploration areas A and B (onshore), and area C (offshore) with NOC, which was later suspended due to a force majeure. In 2022, Eni took a 42.5% stake and assumed operatorship of the agreement, with BP retaining a 42.5% interest and the Libyan Investment Authority holding the remaining 15%. The force majeure was formally lifted in 2023, allowing onshore exploration to resume. Separately, the state oil firm said it agreed with Shell to evaluate hydrocarbon prospects and conduct a comprehensive technical and economic feasibility study to develop the Atshan oilfield and other fields fully owned by NOC. https://www.reuters.com/business/energy/bp-shell-study-hydrocarbon-potential-three-libyan-oilfields-2025-07-07/
2025-07-07 21:03
HOUSTON, July 7 (Reuters) - Exxon Mobil (XOM.N) , opens new tab signaled on Monday that lower oil and gas prices could cut its second-quarter earnings by about $1.5 billion from the previous quarter's level. The earnings snapshot from the largest U.S. oil producer is closely watched for clues on how the broader oil sector will fare when companies begin releasing quarterly results in a few weeks. Sign up here. Benchmark Brent crude prices averaged $66.71 per barrel during the April to June quarter, an 11% decline from the previous quarter, as more crude supply from the OPEC+ group of producers weighed on prices. U.S. natural gas prices declined 9% from the first quarter. Exxon said in the regulatory filing that it will release the final quarterly results on Aug. 1. Wall Street expects Exxon to report adjusted earnings of $1.53 per share for the second quarter, according to estimates compiled by LSEG. The company had posted $6.8 billion in upstream earnings for the first quarter. Its total profit in that quarter was $7.71 billion. https://www.reuters.com/business/energy/exxon-mobil-signals-fall-second-quarter-upstream-profit-regulatory-filing-2025-07-07/
2025-07-07 20:39
July 7 (Reuters) - Canada's main stock index closed lower on Monday, tracking U.S. markets after U.S. President Donald Trump announced fresh tariffs against Japan and South Korea, sparking trade jitters among Canadian investors. The benchmark S&P/TSX composite index (.GSPTSE) , opens new tab closed down 15.88 points, or 0.06%, at 27,020.28. Sign up here. The TSX turned lower earlier in the day while investors awaited updates on trade developments. The index had posted fresh all-time highs every day last week and touched another record high on Monday before turning red. Wall Street's major indexes closed lower after Trump's tariff announcements. "It's more just a warning that these are friendly countries that are getting to the tariffs, and that's probably a reminder that Canada is not out of the woods yet," said Greg Taylor, chief investment officer at PenderFund Capital Management. "We're starting to see that the tariff (worries) haven't gone away yet fully, that there's still going to be uncertainty around earnings. Investors are saying, 'Well, we've had such big gains. Why don't we hit pause and take some profits?'" Healthcare (.GSPTTHC) , opens new tab stocks fell 0.3% and energy (.SPTTEN) , opens new tab stocks were down 0.6%. Mining (.GSPTTMT) , opens new tab stocks gained 1.2% as gold pared losses after Trump's tariff news, prompting some safe-haven interest. Among individual stocks, ATS Corporation (ATS.TO) , opens new tab was the biggest loser on the TSX, falling 8%, as CEO Andrew Hider is set to leave the company. Sandstorm Gold (SSL.TO) , opens new tab gained 6.2% after Royal Gold (RGLD.O) , opens new tab said it will acquire the company for about $3.5 billion. Horizon Copper (HCU.V) , opens new tab gained 67.7% after Royal Gold announced the acquisition of the company in an all-cash deal worth $196 million. https://www.reuters.com/markets/europe/tsx-futures-rise-us-postpones-tariff-deadline-2025-07-07/
