2024-03-06 21:57

MEXICO CITY, March 6 (Reuters) - Mexican state energy company Pemex and billionaire investor Carlos Slim's team are discussing ways to revive development of the country's first deepwater natural gas field that was shelved twice before, two sources told Reuters. The sources, both with direct knowledge of the matter, said executives of companies controlled by the Slim family met with Pemex on Tuesday to discuss the Gulf of Mexico gas field. One of the sources said the parties had agreed to meet again. The Lakach field has been hailed as a potential gateway to a new deepwater Mexican gas frontier. The sources said Pemex declared it a top priority to find a new partner after its last pulled out at the end of last year. Pemex wants to develop the offshore field using a service contract where partners finance projects upfront, a mechanism used prior to the country's energy sector opening, one of the sources said. It was unclear whether Pemex and Slim's companies plan to move forward with the project or whether others would be involved. The sources said Pemex had reached out to other companies, too. Pemex did not immediately respond to a request for comment. A spokesman for Slim declined to comment. Slim, whose empire extends from telecommunications to mining to retail, has been increasing his participation in the energy sector since last year with stakes in shallow water fields Zama, Ichalkil and Pokoch. During a rare public appearance in Mexico City last month, Slim said he was "interested in being partners with someone with experience." He added that he was interested in increasing his investments in U.S.-based Talos Energy. The company discovered the Zama oil field in 2017, but later lost the rights to operate the potentially lucrative find to Pemex, which holds the rights to an adjacent area where Zama likely extends. Slim owns stakes in various companies that could participate in the Lakach field, including construction companies FCC and IDEAL, which one source said attended the Tuesday meeting. However, both sources said Pemex and Slim would still likely need another company with deepwater expertise. Reuters revealed in November that Pemex and U.S. liquefied natural gas company New Fortress Energy terminated a deal to develop the field because the parties could not come to an agreement on terms including pricing. President Andres Manuel Lopez Obrador has said the field could be key for supplying much-needed gas to Mexico and bringing the country closer to energy self-sufficiency and had celebrated the deal. When it was first announced, Pemex CEO Octavio Romero said that the partnership would enable Pemex to "fulfill Mexico's security of supply targets." The companies then said the field would likely yield production for 10 years or more. Located some 90 kilometers (56 miles) from the Gulf port of Veracruz, it holds an estimated 900 billion cubic feet of gas. So far, Pemex has spent $1.4 billion on it. Plans to produce gas there were also shelved in 2016, after it was deemed too expensive. Officials from the oil regulator and Pemex have also been at odds over how to develop the Lakach field. Reuters reviewed five internal assessments the regulator conducted between 2015 and 2022. In these, officials repeatedly raised questions over whether the it would be economically viable and technically feasible. In one document, dated October 2022, officials at the regulator urged Pemex to submit additional information about "what programs will be implemented to mitigate risks and guarantee the success of the project." They noted a lack of deepwater gas expertise as well as missing studies of the field and its infrastructure; they also raised questions over already sunken costs and whether the project would ever turn a profit given low gas prices. In another document, dated the same month, officials warned of uncertainty over the volume of gas the field actually holds, including conflicting assessments of proven reserves, and that results of some trials deviated from what Pemex had projected. https://www.reuters.com/business/energy/mexicos-pemex-carlos-slim-team-met-discuss-deepwater-gas-project-sources-2024-03-06/

2024-03-06 21:51

LONDON, March 6 (Reuters) - A Houthi missile attack killed three seafarers on a Red Sea merchant ship on Wednesday, U.S. Central Command (CENTCOM) said, the first fatalities reported since the Iran-aligned Yemeni group began strikes against shipping in one of the world's busiest trade lanes. The Houthis claimed responsibility for the attack, which set the Greek-owned, Barbados-flagged ship True Confidence ablaze around 50 nautical miles off the coast of Yemen's port of Aden. In an earlier message on X responding to the Houthi claim, Britain's embassy wrote: "At least 2 innocent sailors have died. This was the sad but inevitable consequence of the Houthis recklessly firing missiles at international shipping. They must stop." The Houthis have been attacking ships in the Red Sea since November in what they say is a campaign in solidarity with Palestinians during the war in Gaza. Britain and the United States have been launching retaliatory strikes against the Houthis, and the confirmation of fatalities could lead to pressure for stronger military action. CENTCOM said the Houthi strike also injured at least four crew members and caused "significant damage" to the ship. Earlier, a shipping source said four mariners had been severely burned and three were missing after the attack. The Greek operators of the True Confidence said the vessel was drifting and on fire. They said no information was available about the status of the 20 crew and three armed guards on board, who included 15 Filipinos, four Vietnamese, two Sri Lankans, an Indian and a Nepali national. On Thursday, two of the victims were identified as Filipino seafarers by the Philippines' ministry for migrant workers. It said in a statement two other Filipinos were severely injured in the attack and called for "continued diplomatic efforts to de-escalate tensions and to address the causes of the current conflict in the Middle East". A U.S. defence official said smoke was seen coming from the True Confidence. The official, who also declined to be identified, told Reuters a lifeboat had been seen in the water near the ship. The United Kingdom Maritime Trade Operations (UKMTO) agency said it had received a report of an incident 54 nautical miles southwest of Aden, which lies near the entrance to the Red Sea, adding the vessel had been abandoned by the crew and was "no longer under command". "Coalition forces are supporting the vessel and the crew," UKMTO said. Stephen Cotton, general secretary of the International Transport Workers' Federation (ITF), the leading seafarers union, called for urgent action to protect its members. "We have consistently warned the international community and the maritime industry about the escalating risks faced by seafarers in the Gulf of Aden and Red Sea. Today ... we see those warnings tragically confirmed," Cotton said. Four days ago, the Rubymar, a UK-owned bulk carrier, became the first ship to sink as a result of a Houthi attack, after floating for two weeks with severe damage from a missile strike. All crew were safely evacuated from that vessel. The Houthi attacks have disrupted global shipping, forcing firms to re-route to longer and more expensive journeys around southern Africa. The cost of insuring a seven-day voyage through the Red Sea has risen by hundreds of thousands of dollars. While the militia has said it would attack vessels with links to the United Kingdom, the United States and Israel, shipping industry sources say all ships could be at risk. The True Confidence is owned by the Liberian-registered company True Confidence Shipping and operated by the Greece-based Third January Maritime, both companies said in their joint statement. They said the ship had no link to the United States. https://www.reuters.com/world/middle-east/three-missing-bulk-carrier-off-yemen-after-incident-reported-shipping-source-2024-03-06/

2024-03-06 21:48

March 7 (Reuters) - A look at the day ahead in Asian markets. As you were. Asian markets are set for a positive open on Thursday following a widespread 'risk on' move on Wednesday, while investors in the region await trade figures from China and Australia, and an interest rate decision from Malaysia , opens new tab. Global stocks and risk assets on Wednesday shrugged off the previous day's jitters and resumed their climb higher while U.S. bond yields drifted lower , opens new tab, after Federal Reserve Chair Jerome Powell kept the door open to interest rate cuts later this year. If Powell's goal was to play a straight bat in his three hours of questioning from U.S. House of Representative lawmakers on Wednesday and avoid any market ructions, he more than met it. The MSCI Asia ex-Japan index had already risen 0.77% on Wednesday before Powell spoke, its biggest rise in two weeks. The dollar slide, lower bond yields and rise on Wall Street after his testimony should give regional sentiment a further boost on Thursday. The main economic indicator in Asia on Thursday is Chinese trade. Beijing this week said it is aiming for GDP growth this year of around 5% again, but many analysts are skeptical - the performance of imports and exports in recent months suggests trade will not be a major driver. Export growth likely slowed in the January-February period, suggesting manufacturers are still struggling for overseas buyers and in need of further policy support at home. Data for the January-February period is expected to show exports grew 1.9% year-on-year in U.S. dollar terms compared with 2.3% growth in December, according to a Reuters poll, while import growth accelerated to 1.5% from 0.2%. Several Asian countries publish their latest foreign exchange reserves holdings on Thursday. At the last count, the six jurisdictions - China, Japan, Hong Kong, Malaysia, Indonesia and Singapore - held a combined $5.55 trillion, nearly half of the global total. China and Japan are the world's largest holders with $3.22 trillion and $1.29 trillion, respectively. Changes in FX reserve holdings are very small, but China's numbers in particular are always closely watched. Malaysia's central bank, meanwhile, announces its latest interest rate decision. Bank Negara Malaysia (BNM) is expected to leave its overnight policy rate (OPR) unchanged at 3.00% and hold it there until at least 2026 as inflation was expected to pick up, a Reuters poll found. Although inflation eased to 1.5% in January, having peaked at 4.7% in August 2022, economists expect price pressures to rise in the second half of this year, suggesting a rate cut from the central bank was unlikely anytime soon. Here are key developments that could provide more direction to markets on Thursday: - China trade (February) - China, Japan FX reserves (February) - Malaysia interest rate decision https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-03-06/

2024-03-06 21:35

PANAMA CITY, March 6 (Reuters) - The cost of the closure of Canadian miner First Quantum's copper mine in Panama is estimated at around $800 million, Trade and Industry Minister Jorge Rivera said on Wednesday. An inter-ministry coalition, which is developing the mine's closure plan, is working on alternative measures to recoup funds so that the cost does not come out of the state's coffers, Rivera told journalists. Panama's government ordered the shutdown in December after protests calling for more environmental protections erupted across the country and a court ruling deemed the contract to run the mine unconstitutional. It is still unclear who will pay for the mine's closure process, but the Panamanian government suggested on Tuesday that First Quantum's unit in the country set out financial guarantees to cover the cost of closing its lucrative copper mine. Creating a plan to close the mine could take between six and eight months, the minister said, noting Panama is headed to elections in May so the next president will be the one in charge of finishing it. The mine's activity represents about 5% of the country's GDP, and Panama is expected to see growth slow in 2024 to 2.5% from 7.5% as a result of the closure of the mine, according to data from the International Monetary Fund (IMF). https://www.reuters.com/markets/commodities/closure-first-quantums-panama-mine-seen-around-800-mln-minister-says-2024-03-06/

2024-03-06 21:21

WASHINGTON, March 6 (Reuters) - The Republican-controlled U.S. House of Representatives on Wednesday passed legislation funding a broad swath of the federal government through the fiscal year that began in October, as yet another threat of a partial shutdown looms. The House voted 339-85 for the bill with 83 Republicans in opposition. It now goes to the Senate for passage by Friday, before a midnight deadline when temporary funding expires for several Washington agencies. This 1,050-page cluster of bills would keep programs running at huge federal bureaucracies, including the departments of Agriculture, Justice, Transportation and Housing and Urban Development. Also affected are construction projects at military bases and care for veterans. Republican House Speaker Mike Johnson had to rely on support from opposition Democrats to get the massive legislation passed. Since becoming speaker on Oct. 25 following the ouster of Kevin McCarthy, Johnson has had a difficult time governing because of his paper-thin 219-213 majority. His work has been made all the more difficult by a band of hardline conservatives who have bucked their Republican leadership on a series of bills, including some to fund regular government operations, as well as emergency aid to continue helping Ukraine in its war against Russia. Representative Mike Simpson, a senior Republican appropriator, defended the bill, saying: "Many agencies with important missions face reductions under this legislation. We believe it is important to reverse the out-of-control growth of the federal government and that is reflected in this agreement." Even before the sprawling spending bill reached the Senate, Republican Senator Mike Lee tried to kill funding for some federally-backed projects, such as the nearly $1 million for a Georgetown University prison and justice program. He was blocked by Senate Appropriations Committee Chair Patty Murray. Hardline House Freedom Caucus members urged fellow Republicans to oppose the bill, saying in a statement that it will "bust" spending caps enacted last June and "punts on nearly every single Republican policy priority." The group wants significantly deeper spending cuts -- amid national debt nearing $34.5 trillion -- that would be unlikely to clear the Senate or win Biden's signature. "Republicans will go around and they'll talk about how they scored major wins, how they somehow delivered for the American people ... We did no such thing," said Republican Representative Chip Roy during House debate. Representative Rosa DeLauro, the senior Democrat on the House Appropriations Committee, told reporters that her party had to give ground on some spending initiatives. But she applauded the final product, saying it protected women's access to reproductive healthcare and ensured enough funding for food and nutrition programs "so that no family in need was put on a waiting list." Congress is over five months late in accomplishing its most basic task of passing full-year government funding measures. Passage of these six bills would open the way for lawmakers to move on to the remaining six bills by a March 22 deadline. Hefty government agencies including the Defense Department, Homeland Security, State Department and Health and Human Services are prominent pieces of the second package. Taken together, the two batches of bills would spend $1.66 trillion for fiscal 2024, down from the $1.7 trillion in discretionary spending the previous year. Among agencies that would suffer spending cuts are the FBI, the Environmental Protection Agency and the Bureau of Alcohol, Tobacco and Firearms. https://www.reuters.com/world/us/us-house-aims-pass-spending-bill-avert-weekend-government-shutdown-2024-03-06/

2024-03-06 21:17

TSX ends up 0.3%, at 21,593.96 Posts highest closing level since April 2022 BoC holds its policy rate at 5% Materials group rises 1.3%; gold hits a record high March 6 (Reuters) - Canada's main stock index rose on Wednesday to a near two-year high, led by gains for the materials sector, as the Bank of Canada and the Federal Reserve continued to signal a move to lower interest rates ahead. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 68.03 points, or 0.3%, at 21,593.96, its highest closing level since April 2022. There was a lack of "hawkish" surprises from the BoC and the Fed, said Ian Chong, a portfolio manager at First Avenue Investment Counsel Inc. "They seem to communicate a very consistent message that rates should come down later in the year should economic data continue to be supportive of that," Chong said. Federal Reserve Chair Jerome Powell told lawmakers that the Fed still expects to reduce interest rates later this year, while the Bank of Canada reiterated that the discussion at the central bank has shifted from whether the rates were restrictive enough to how long they needed to stay at their current level. The materials group, which includes precious and base metals miners and fertilizer companies, rose 1.3% as gold added to its record-setting rally. Energy was also up, rising 0.2%, as the price of oil settled 1.25% higher at $79.13 a barrel. Pipeline operator Enbridge Inc (ENB.TO) , opens new tab raised its short-term profit growth forecast and said it will spend $500 million expanding pipeline and storage assets to improve its U.S. Gulf Coast presence. The company's shares rose 0.2%. The consumer-related sectors also posted gains, with consumer staples rising 0.6% and consumer discretionary up 0.9%. https://www.reuters.com/markets/tsx-futures-climb-ahead-boc-decision-powell-testimony-2024-03-06/