2025-02-27 20:14

RIO DE JANEIRO, Feb 27 (Reuters) - The technical staff at Brazil's environmental agency Ibama recommended that the body deny authorization for Petrobras (PETR4.SA) , opens new tab to carry out drilling in the environmentally sensitive Foz do Amazonas region, two sources familiar with the matter told Reuters. The final decision will be taken by Ibama's President Rodrigo Agostinho. The agency is under pressure from Brazil's President Luiz Inacio Lula da Silva, who said earlier this month that "Ibama is a government agency that seems to be against the government" due to its delay in conceding the license to drill. The license was denied at least in part because there was not a big change in the plan to assist local fauna in case of an oil spill, one source told Reuters. The document with the recommendation was signed on Wednesday, said the two sources. Petrobras Chief Executive Magda Chambriard said that she was unsure the news was true during a press conference with journalists on Thursday, as there was no official filing in Ibama's system. During an earnings call she told investors that Petrobras believed it was close to obtaining a license as it expects to finish work on a veterinary center that would assist local fauna in case of a spill by March-end. Ibama did not immediately reply to a request for comment. In May 2023, Ibama denied Petrobras' request for an offshore drilling license for the Foz do Amazonas area off the coast of Amapa state, citing environmental concerns. The oil company appealed soon after, but a final Ibama decision is pending. The offshore site Petrobras wants to drill at is in Brazil's Equatorial Margin. At the northern end of the area is Brazil's most promising oil frontier, sharing geology with nearby Guyana, where Exxon Mobil (XOM.N) , opens new tab is developing huge fields. Sign up here. https://www.reuters.com/sustainability/climate-energy/brazils-ibama-staff-recommend-against-petrobras-drilling-amazon-region-2025-02-27/

2025-02-27 19:48

Zelenskiy expected in Washington on Friday to sign deal Republican leader said 'no appetite' for more aid for Ukraine Ukraine supporters say Trump's personal buy-in could be key WASHINGTON, Feb 27 (Reuters) - A critical minerals deal Donald Trump has negotiated with Ukraine could ease tensions between Kyiv and the U.S. president and at the same time win back support from his Republicans in Congress for a new round of aid to the war-torn country. Ukrainian President Volodymyr Zelenskiy is expected to be in Washington on Friday to sign a minerals agreement with Trump, a deal Trump is portraying as a way to recoup American money that has been spent to support Ukraine. Trump said on Tuesday that Zelenskiy wanted to come to Washington on Friday to sign a "very big deal." The deal is central to Ukrainian attempts to win strong support from Trump as he seeks a quick end to Russia's warthrough U.S.-Russian talks that have so far excluded Kyiv. Analysts, and congressional Republicans, said a successful agreement increased the chances that members of the party - who control both the House of Representatives and Senate - would be willing to approve more aid for Ukraine. Congress has approved $175 billion in assistance since Russia launched its full-scale invasion of Ukraine three years ago, but the last funding bill passed in April, when Democrats still controlled the Senate and Democrat Joe Biden was in the White House. Even then, congressional Republicans slow walked the bill under pressure from Trump, who has been skeptical of further military aid to Ukraine, leading to delays in the delivery of weapons which put Ukrainian troops on the back foot in the battlefield. Since Trump was elected on Nov. 5, enthusiasm for further spending has been thin. Republican House Speaker Mike Johnson said last week there was "no appetite" for another Ukraine aid bill, after Trump called Zelenskiy a dictator and warned he must move quickly to secure peace with Russia or risk losing his country. Democrats in the U.S. Congress have remained solidly in favor of backing Zelenskiy's government. Republican Representative Michael McCaul, a strong supporter of Ukraine, said he agreed that a minerals deal would make it easier for Republicans to vote for assistance, while U.S. companies made money and Ukraine profited from its resources. "Yes I do, especially if it (the deal) comes from Trump," he told Reuters. BUSINESS INTERESTS McCaul described the deal as a "joint economic alliance," where the U.S. would help develop Ukraine's critical minerals. "And then obviously, our industry would make money," he said. "They would make money, and then we help to pay for the war." Representative Joe Wilson said the deal would appeal to fellow Republicans who want to cut spending, especially foreign aid spending, by providing a financial benefit for the U.S. "It's really not an issue with Ukraine," he said. "It is that they are legitimately concerned about the overspending, and then that's reflected that they're skeptical about foreign efforts." McCaul, Wilson and other Republican lawmakers noted that details of a security agreement for Ukraine remained a sticking point, but analysts said it made sense for Ukraine to sign after three years of war, steep losses and to get Trump invested in Kyiv's success. "They see this as a way to get the Trump buy-in," said Scott Anderson, a fellow in governance studies at the Brookings Institution. Republican senator Jim Risch, chairman of the Senate Foreign Relations Committee, did not say a minerals deal would garner more Republican support, but saw it as instrumental in bringing the war to an end. "I think there will be a settlement, but as in all settlements, each party needs to come away and be able to tell their constituents they won," Risch said. Sign up here. https://www.reuters.com/world/trumps-very-big-minerals-deal-may-pay-off-with-us-republicans-2025-02-27/

2025-02-27 19:30

PARIS, Feb 27 (Reuters) - French President Emmanuel Macron urged residents on the French overseas territory of Reunion to hunker down on Thursday as a cyclone barrelled toward the Indian Ocean island. "In the face of cyclone Garance, I call on our fellow citizens in Reunion to be extremely vigilant and to respect safety instructions," Macron wrote in a post on social media platform X. "The state is at your side and our forces are mobilised." Authorities placed Reunion, an island in the Indian Ocean off the coast of Madagascar and thousands of kilometres (miles) away from mainland France, on red alert on Thursday, as the storm was still north of the island. Residents were urged to stay home, seek refuge in certain parts of their houses in case of destruction and to be prepared in case of water and electricity outages. Wind speeds for the cyclone were estimated to reach as high as 155 kph (96 mph). Reunion was recently used as a base for authorities trying to shuttle aid to neighbouring Mayotte, which was devastated by Cyclone Chido in December. Authorities said that Chido, the worst storm to hit Mayotte's two main islands in 90 years, may have killed thousands of people in Mayotte, but the government's official death toll stands at 35. Sign up here. https://www.reuters.com/business/environment/frances-macron-urges-reunion-residents-stay-safe-face-approaching-cyclone-2025-02-27/

2025-02-27 19:15

Cancellation is test economic challenge for government 85% of Venezuela's income comes from crude exports, analysts say Cancellation could mean loss of up to $4.5 bln in oil income Feb 27 (Reuters) - U.S. President Donald Trump's cancellation of licenses for foreign oil companies to operate in sanctioned Venezuela will reduce the dollars on offer in the country's exchange market, stoking depreciation of the local bolivar currency and prices, analysts said on Thursday. The cancellation on Wednesday is the latest economic challenge for Venezuelan President Nicolas Maduro, whose government for years has applied orthodox measures to tamp down formerly sky-high inflation, restricting credit, curbing public spending and until recently, holding the exchange rate steady. "If oil licenses are suspended there is an impact - the fall in oil production and in the demand for services for the oil sector. There will be fewer royalties and taxes. It will affect the flow of foreign currency and there will be more devaluation," said economist Jose Guerra of the Venezuelan Finance Observatory. Since Trump first imposed sanctions on Venezuela's energy sector in 2019, the U.S. has granted individual licenses to some oil companies that allow them to export the South American country's oil to specific destinations. In late 2022, President Joe Biden's administration granted an automatically renewable license to Chevron (CVX.N) , opens new tab to expand operations in Venezuela and resume exports to the U.S. with the goal of recovering up to $3 billion in debt. Trump announced the reversal of the key license to Chevron, accusing Maduro of failing to make progress on electoral reforms and migrant returns. Electoral authorities and Venezuela's top court have backed Maduro's victory in a July 2024 election, but the United States and other countries say the opposition was the rightful winner. Uncertainty over the disputed Venezuelan election and Trump's reelection caused a reduction in the offer of dollars on the market and the Venezuelan central bank allowed the currency to float. It has depreciated more than 30%. Analysts say that 85% of the OPEC member's income comes from crude exports. Local analyst firm Ecoanalitica says oil income was about $15.4 billion in 2024 and 30% came from Chevron and other foreign partners of state energy company PDVSA, meaning a reduction of between $4 billion and $4.5 billion on the license cancellations. Chevron contributed a third of dollars for the exchange market last year, equivalent to some $2.4 billion, according to local firm Sintesis Financiera. In 2023 it was $1.1 billion. Venezuelan dollar bonds and those of PDVSA tumbled on the cancellation news, with Venezuela's 2027 maturity down 2.25 cents, last bid at 19.75 cents on the dollar. The PDVSA 2020 dropped one cent to 92 cents on the dollar. The debt, all considered in default, was among the best performing across emerging markets in 2023 on hopes that the previous U.S. administration had opened up a path to a debt restructuring, but the hopes stalled last year after the contested presidential election. Trump's announcement may be a negotiating tactic, analysts at BancTrust & Co said in a Thursday note to clients. "Going forward, while this may only be a threat to accelerate U.S. deportations of Venezuelan migrants, higher unpredictability will weigh on bond prices until a clearer picture emerges of how this negotiation will unfold." Chevron's dollars were a relief for the Venezuelan central bank, which no longer had to offer the total amount of dollars for the exchange market. The oil producer also paid taxes and royalties. Inflation, helped by the steady exchange rate, closed last year at 48%, according to Maduro. But more depreciation and the need to print more bolivars could take consumer price increases to 80%, according to Sintesis Financiera. Private sector growth will be limited by the lack of exchange offer, said Luigi Pisella, the head of industrial association Conindustria. "It will grow, but in a limited way," Pisella said. Sign up here. https://www.reuters.com/markets/trumps-cancellation-oil-licenses-likely-stoke-venezuela-inflation-2025-02-27/

2025-02-27 18:50

BRASILIA, Feb 27 (Reuters) - Brazil's central government posted a primary budget surplus in January that was slightly below market expectations, as inflation-adjusted spending growth outpaced revenue gains, Treasury data showed on Thursday. The primary surplus, which excludes interest payments, reached 84.9 billion reais ($14.6 billion) for the month - traditionally a positive period - falling short of the 88.5 billion reais expected by economists polled by Reuters. Still, the result marked an improvement from the 79.5 billion reais surplus recorded in January last year. The surplus came on the back of a 3.7% real increase in net revenues over a year earlier, while government spending rose 4.4%. Over the 12-month period, the central government posted a primary deficit of 42.2 billion reais, or 0.32% of gross domestic product. The official target for the year is to balance the budget, with a tolerance range of 0.25% of GDP in either direction, which means the government can run a deficit of up to 31 billion reais. ($1 = 5.8268 reais) Sign up here. https://www.reuters.com/world/americas/brazils-central-government-posts-146-billion-primary-budget-surplus-january-2025-02-27/

2025-02-27 18:47

MEXICO CITY, Feb 27 (Reuters) - Mexican state oil company Pemex posted a 190.5 billion-peso ($9.1 billion) fourth-quarter net loss on Thursday, following a year-ago profit, citing higher sales costs, lower fixed asset values and currency exchange losses. The ailing giant's production continued to decline during the three-month period, and financial debt remained close to the $100 billion level it has hovered at for years, amounting to more red ink than nearly any other oil company. In a rare admission, a senior company executive acknowledged major problems. "Pemex is going through a challenging situation, and one that's different from past circumstances," said corporate planning chief Jorge Alberto Aguilar in a call with analysts to discuss the results. Aguilar cited problems with the company's operations, working capital and its falling output, as well as "serious" budget restrictions that require a recovery strategy. One of Mexico's largest companies, Pemex's crude output has fallen to historic lows in recent years as it has shunned equity tie-ups with others, and its older offshore fields, particularly in the southern Gulf of Mexico, have neared the end of their productive life. Company executives pointed to declining output from offshore fields Maloob and Zaap, as well as onshore field Quesqui. During the fourth quarter, crude and condensate production reached 1.65 million barrels per day, down nearly 10% from a year ago, according to a filing with the country's main stock exchange. The company's working capital at the end of 2024 was negative 750.6 billion pesos, the filing showed. Revenue for the period rose to 436.6 billion pesos, up 3% from the year-ago quarter. In another bright spot, the company's tax bill edged down to 45.7 billion pesos in the quarter, compared to 53.9 billion pesos a year earlier. Earnings before interest, taxes, depreciation and amortization, an operating performance measure, totaled 14.6 billion pesos in the quarter. Pemex ended last year with $97.6 billion in financial debt even as the governments of President Claudia Sheinbaum and her like-minded predecessor have provided unwavering support. The company said the federal government provided it with 156.5 billion pesos in 2024, with 96% used to pay down debt. Debt owed to service providers as of last December totaled 506.2 billion pesos, or about $24.2 billion. Pemex's refineries processed 786,000 bpd of crude in the fourth quarter, a major priority of the government, which is seeking to lessen dependence on fuel imports. ($1 = 20.8829 pesos at end-December) Sign up here. https://www.reuters.com/business/energy/mexicos-pemex-swings-91-billion-loss-fourth-quarter-2025-02-27/