2024-11-21 20:42

GEORGETOWN, Nov 21 (Reuters) - U.S. oil major Exxon Mobil (XOM.N) , opens new tab and partners have pulled out of negotiations with Guyana's government on terms for exploring and developing a shallow-water oil block, the South American country's vice president said on Thursday. Exxon, U.S.-based Hess (HES.N) , opens new tab and China's CNOOC (600968.SS) , opens new tab won offshore block S8 in a bidding round launched in late 2022 by President Irfaan Ali's administration in a move to diversify Guyana's energy industry. The companies had been engaged this year in negotiations for the non-fiscal terms of the project, according to Exxon and government officials. "Exxon pulled out," Vice President Bharrat Jagdeo told reporters in a briefing. "They wanted to use the area for carbon capture and storage, and we don't want to do that at this stage." Partners Hess and CNOOC also withdrew from the talks, Natural Resources Minister Vickram Bharrat said. Exxon, Hess and CNOOC did not immediately reply to requests for comment. Eight of the 14 oil and gas blocks Guyana offered in the round received bids, including by large companies such as Petronas (PETRA.UL), CNOOC and TotalEnergies (TTEF.PA) , opens new tab. The government said last month that TotalEnergies, Qatar Energy, Petronas, Cybele Energy, Delcorp and International Group Investment have reached agreements with Guyana over terms of production sharing deals; and added that an agreement for Exxon's area was "under review," without elaborating. The auction was organized to expand Guyana's energy industry. But as the Exxon consortium quickly ramps up output, which has increased to some 660,000 barrels per day (bpd) only five years after inauguration, the group continues controlling all production in the country. Earlier this week, neighbor Suriname announced Exxon had withdrawn from offshore block 52, one of the most promising oil and gas projects in the country, leaving the area entirely to operator Petronas. Sign up here. https://www.reuters.com/business/energy/exxon-mobil-pulls-out-talks-with-guyana-over-shallow-water-oil-block-gov-says-2024-11-21/

2024-11-21 20:30

HOUSTON, Nov 21 (Reuters) - Exxon Mobil Corp (XOM.N) , opens new tab, which is facing a California lawsuit over its alleged role in global plastic waste pollution, is going forward with plans to expand plastics recycling to replace fossil fuels with discarded plastic waste, the company said on Thursday. The move by one of the world's largest polymer producers comes amid growing concerns about slow-to-disintegrate plastics filling landfills, leaching into ground water and creating potential health hazards. Exxon, which is championing pyrolysis techniques that convert waste into new plastic, will spend $200 million in Texas to expand so-called circularity operations in a global effort to build the capacity to process 1 billion pounds (454 million kg)of waste annually by 2027. The company calls its recycling technology Exxtend. California filed a lawsuit against Exxon in September, alleging the company was deliberately misleading the public about the limitations of recycling. Exxon rejects allegations that it misleads the public about the limitations of plastics recycling, or about climate change. The company's Baytown, Texas, complex this year will process 80 million pounds of plastic waste. The expansion will allow it and a nearby Beaumont, Texas, plant the capacity to process up to 500 million pounds in 2026. The products will be sold with a certificate describing their origin, explained Karen McKee, president of ExxonMobil Product Solutions. “We sell virgin-quality product and a subset of our customers are buying a ‘certified circular certificate’ to demonstrate that for every ton that they buy with this certificate, a ton of post-use plastic was fed into our facility," McKee said. LyondellBasell, a rival to Exxon in chemicals, also is installing a plant in a German factory using a similar recycling technology called MoReTec that also breaks down waste plastic. Lyondell plans to install a large MoReTec unit in Houston later in this decade after it permanently shuts a Houston refinery next year. Sign up here. https://www.reuters.com/sustainability/exxon-under-fire-over-plastic-recycling-spending-200-mln-expand-texas-plants-2024-11-21/

2024-11-21 20:30

Nov 21 (Reuters) - (This Nov. 21 story has been corrected to remove language suggesting that Gautam Adani faces a criminal charge of foreign bribery, independent of the three existing charges against him; and to remove and replace language describing the three charges and their potential penalties in paragraph 20) Gautam Adani, the billionaire chair of Indian conglomerate Adani Group and one of the world's richest people, could face a long road to trial in the U.S. on criminal charges over his alleged role in a multi-billion-dollar fraud and bribery scheme. Here’s a look at what’s next for Adani, who is accused of conspiring to pay about $265 million in bribes to Indian government officials to obtain contracts and develop India's largest solar power plant project. WHAT IS HE CHARGED WITH? The indictment alleges Adani and his co-defendants agreed to pay more than $250 million in bribes to Indian officials to obtain solar contracts worth an estimated $2 billion over 20 years. Adani is charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy. U.S. law allows prosecutors to charge executives with foreign bribery when their companies do business in the U.S. and also gives broad jurisdiction over transactions that pass through U.S. financial institutions. Prosecutors also allege Adani deceived U.S. investors by covering up the alleged bribes. HAS ADANI BEEN ARRESTED? No. If Adani is in India, U.S. prosecutors would need to ask the Indian government to extradite him under the terms of the two countries’ extradition treaty. That process would be handled by a court in India, which would need to consider several factors including whether the crime he was charged with in the U.S. is also a crime in India, whether the charges are politically motivated or whether he could face inhumane treatment in the U.S. Adani could fight extradition, and it is unclear how long the process might take. The billionaire is accused of bribing Indian government officials, which could make extradition more politically fraught. HAS ADANI ENTERED A PLEA YET? No. Adani has not been arrested and his whereabouts are unknown, though he is believed to be in India. He could not immediately be reached for comment. In a statement Thursday, Adani Group said the charges were "baseless" and that the company is a "law-abiding organization, fully compliant with all laws." CAN ADANI DISPUTE THE CHARGES IN COURT? Yes, but until he appears in U.S. court, Adani's lawyers could only challenge the indictment on procedural grounds, for example by claiming U.S. prosecutors do not have the authority to charge him. After Adani appears before a U.S. judge, his lawyers could attack the substance of the indictment by arguing the charges are legally deficient or unsupported by the facts. Defendants generally face an uphill battle getting criminal charges thrown out because prosecutors enjoy the benefit of the doubt in the early stages of a case, and judges are reluctant to dismiss cases before juries have a chance to weigh the facts. Prosecutors cite extensive evidence of the alleged crimes in the indictment, including in-person meetings with Indian officials and an extensive paper trail of cell phone and messaging app records. Adani could also strike a plea deal with prosecutors by agreeing to admit to certain crimes in exchange for a lighter sentence, though prosecutors are under no obligation to negotiate. Any deal would also need to be approved by a judge. WHEN COULD A TRIAL FOR ADANI HAPPEN? A trial could still be a long way off even if Adani is extradited or surrenders in the U.S. Adani’s lawyers would be entitled to litigate the admissibility of evidence and other legal questions before a trial could begin, as would lawyers for his seven co-defendants, who could seek separate trials. Adani would be entitled to a speedy trial within 70 days under U.S. law, though he would likely waive that right to give his lawyers more time to fight the charges. WHAT PENALTIES COULD ADANI FACE? Adani could face decades in prison if convicted, but would probably receive far less time. He could also face monetary penalties. Any sentence would ultimately be up to the judge overseeing the case. A jury of 12 would need to unanimously vote to convict Adani, and he could appeal a verdict against him. Sign up here. https://www.reuters.com/world/india/whats-next-gautam-adani-after-us-bribery-fraud-charges-2024-11-21/

2024-11-21 20:18

Sanctions freeze Gazprombank's U.S. assets, ban trade with Americans Treasury sanctions 50 Russian banks to limit international financial ties Yellen: Action hinders Kremlin's military funding and equipment acquisition WASHINGTON, Nov 21 (Reuters) - The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January. The move, which wields the department's most powerful sanctions tool, means Gazprombank cannot handle any new energy-related transactions that touch the U.S. financial system, bans its trade with Americans and freezes its U.S. assets. Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom (GAZP.MM) , opens new tab. Ukraine has been urging the U.S. since the February, 2022 invasion, to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe. The sanctions came days after the Biden administration allowed Kyiv to use U.S. ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day. The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk." "This sweeping action will make it harder for the Kremlin to evade U.S. sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine." Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment. Treasury also issued two new general licenses authorizing U.S. entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank. Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war. The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said. COLLATERAL IMPACT While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said. Douglas Jacobson, the lawyer, said other banks outside the U.S. financial system will be more hesitant to deal with Gazprombank. Officials in Slovakia and Hungary said they were studying the impacts of the new U.S. sanctions. President-elect Donald Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, said Jacobson. The Trump transition team did not immediately respond to a request for comment. Edward Fishman, a former U.S. official now a research scholar at Columbia University, said Thursday's action was an important step taking aim at Russia's energy revenues. "This signals that the Biden administration is actually serious about cutting off flows of funds to Russia for energy during the lame duck period, which is ... a significant development," Fishman said. The Biden administration may take further actions before leaving office to toughen up the energy sanctions, Fishman said. "It's a very big step, but I don't think that it's the last we'll hear from the Biden administration on energy sanctions." Sign up here. https://www.reuters.com/business/finance/us-targets-russias-gazprombank-with-new-sanctions-treasury-website-shows-2024-11-21/

2024-11-21 20:17

NEW YORK, Nov 21 (Reuters) - Talen Energy has asked federal regulators to rehear its rejected agreement to ramp up power to an Amazon data center located on the site of Talen's Pennsylvania nuclear plant, according to a filing on Thursday. The Federal Energy Regulatory Commission this month struck down Talen's interconnection deal to increase the capacity of the Amazon data center beyond 300 megawatts. The decision was seen as a blow to Talen and other independent electricity generators whose company shares had risen this year on the prospect of striking similar deals to connect Big Tech data centers directly to their power plants. "With only a few cursory paragraphs of flawed analysis, the (FERC) erroneously rejected a privately negotiated agreement that was supported by all signatories and in so doing damaged U.S. economic and national security interests," Talen said in its rehearing request. Talen said FERC failed to apply the correct legal standard in making its decision, and that it did not take into account all of the recorded evidence or adequately explain why the pact was rejected. Amazon bought the data center connected directly to Talen's Susquehanna nuclear power plant, in an arrangement known as co-location, early this year. Co-located arrangements are seen as a way to fast-track the build-out of data centers, some of which require the amount of electricity needed for entire cities. By placing the centers at the power source, they can power up more quickly than waiting in queues to connect through a utility. Regulated utilities American Electric Power and Exelon challenged the data center's interconnection agreement and asked FERC to either reject it or hold a hearing for more information. The utilities said Talen's agreement could have forced the broader public to pay for costly upgrades related to connecting the data center. The data center would also divert power currently supplied to the broader grid, which the utilities said raised reliability concerns. Talen and its supporters say any upgrades would be privately funded. The company also said that its data center was not connected to the broader grid, which would block cost shifting and reliability problems. FERC, in an order issued on Nov. 1, sided with AEP and Exelon and blocked the interconnection agreement. Sign up here. https://www.reuters.com/business/energy/talen-requests-rehearing-rejected-amazon-data-center-power-pact-2024-11-21/

2024-11-21 20:11

WASHINGTON, Nov 21 (Reuters) - A group representing major automakers including General Motors (GM.N) , opens new tab, Toyota Motor Corp (7203.T) , opens new tab, and Volkswagen (VOWG_p.DE) , opens new tab urged President-elect Donald Trump to retain key tax credits for electric vehicle purchases and take steps to speed deployment of self-driving cars. The Alliance for Automotive Innovation in a previously unreported Nov. 12 letter to Trump also raised concerns about vehicle emissions rules citing "federal and state emissions regulations (particularly in California and affiliated states) that are out-of-step with current auto market realities and increase costs for consumers." The automakers did not specify how they want the rules revised but said they support "reasonable and achievable" emissions regulations. The Trump transition team did not immediately comment. The letter, signed by the group's CEO John Bozzella, said automakers face unfair competition "from heavily subsidized electric vehicles and technologies exported from China" and also noted that China was implementing a regulatory framework to support deployment of self-driving vehicles. The group also asked Trump to reconsider rules finalized in April requiring nearly all new cars and trucks by 2029 to have advanced automatic emergency braking systems. The group earlier said the rules are "practically impossible with available technologies." Last week, Reuters reported that Trump's transition team wants to kill the $7,500 consumer tax credit for electric-vehicle purchases - a move that would likely slow an already stalling U.S. EV transition. This week, Reuters reported Trump transition team plans to target federal regulations championed by President Joe Biden that aim to make automobiles more fuel-efficient and incentivize a shift toward EVs. The move appears aimed at satisfying a Trump campaign promise to "end the EV mandate," and would mirror a similar move during the first Trump administration to rollback Obama-era vehicle-efficiency rules. Although no such "EV mandate" exists, the Biden administration regulations would effectively require automakers to shift at least 35% of production to EVs in order to meet 2032 requirements, and encourage a gradual phase-out of the production of vehicles that run on fossil fuels. Sign up here. https://www.reuters.com/business/autos-transportation/automakers-urge-trump-preserve-ev-tax-credits-boost-self-driving-cars-2024-11-21/