2024-01-15 23:26

Jan 15 (Reuters) - Oil and gas company Talos Energy (TALO.N) said on Monday it will acquire privately held QuarterNorth Energy in a $1.29 billion cash and stock deal to bolster its presence in Mexico. QuarterNorth is a privately held U.S. Gulf of Mexico exploration and production company with ownership in several offshore fields. QuarterNorth Energy will receive about 24.8 million shares of Talos's common stock and about $965 million in cash. More than a dozen companies including Chevron (CVX.N) and Repsol (REP.MC) had quit offshore oil and gas exploration areas in Mexico last year after disappointing results. Only a handful of companies had made significant finds in the areas which included Talos. The Houston-based Talos said that the acquisition will add about 30 thousand barrels of oil equivalent per day (Mboe/d) for the full current year and adds about 69 million barrels of oil equivalent (MMBoe) in proved reserves. "The addition of QuarterNorth's overlapping deepwater portfolio with valuable operated infrastructure will increase Talos's operational breadth and production profile while enhancing our margins and cash flow," said Talos CEO Timothy S. Duncan. The company said it expects annual run-rate synergies of approximately $50 million by year-end, 2024. The deal is expected to close by the end of first quarter of current year. https://www.reuters.com/markets/deals/talos-energy-acquire-quarternorth-energy-129-bln-2024-01-15/

2024-01-15 23:03

LIMA, Jan 15 (Reuters) - Spanish energy giant Repsol (REP.MC) faces a class action lawsuit with 30,000 alleged victims in Peru stemming from a major oil spill in 2022, the law firm representing the class said on Monday, as a small protest marked two years since the incident. The class action lawsuit is asking for a $1 billion judgment, local media reported. The oil spill is deemed one of Peru's worst-ever ecological disasters, after over 10,000 barrels of oil were dumped into the Pacific Ocean and on beaches by the Repsol-owned La Pampilla refinery. The spill sullied some 66 miles (106 km) of Peru's central Pacific coastline, according to Repsol's own tally, while causing significant damage to local fishing and tourist businesses as well as killing off scores of birds and marine life. The company is also facing an existing $4.5 billion civil lawsuit filed in Peru. The new class action suit is managed by London-based law firm Pogust Goodhead, which said in a statement that the lawsuit was filed in The Hague last week. The statement did not give the sum being demanded and the lawsuit is not public. Repsol's Peruvian subsidiary has previously said that it completed all cleaning and remediation tasks and allocated around $270 million in compensation to victims identified by the Peruvian government. "We consider that this lawsuit has no basis," Repsol said in a statement late on Friday, referring to the new class action. Several dozen protesters visited the areas affected by the disaster, including Ancon beach north of the capital Lima, according to images from local television station Canal N, where people were seen waving large Peruvian flags and banners criticizing Repsol. "This is one of Peru's worst environmental disasters and we will fight for justice for the victims," said Tom Goodhead, CEO and global managing partner of Pogust Goodhead, in a statement. https://www.reuters.com/markets/commodities/repsol-faces-second-lawsuit-peru-over-oil-spill-2024-01-15/

2024-01-15 21:48

Jan 16 (Reuters) - A look at the day ahead in Asian markets. Another day, another leap to a fresh 34-year peak. Is there anything that will stop the Japanese equity juggernaut? There isn't much on the Asian economic and policy calendar to give markets a steer on Tuesday - volume will pick up as U.S. markets reopen after the Monday holiday - but Japanese producer price figures could give Japan bulls pause for thought. Or the green light for another whoosh higher. The consensus view in a Reuters poll of economists suggests the year-on-year disinflation in the country's goods-producing sector seen over the last year flipped into outright deflation in December. The annual rate of goods inflation is expected to fall to -0.3% in December from 0.3% in November, sliding below zero for the first time since February 2021. A year ago in December 2022, prices were rising at a 10.2% annual rate. These figures will be closely scrutinized. Easing producer price pressures will likely keep consumer inflation on its downward path toward the Bank of Japan's 2% target, relieving the pressure on the central bank to "normalize" policy. The Japanese bond market reflects the extent to which investors are rethinking the BOJ policy path, with the two-year yield on Monday falling below zero for the first time since July. The Nikkei 225 index registered its sixth consecutive rise on Monday through 36,000 points. The cumulative gain in those six sessions is almost 10%, so perhaps a hotter-than-expected producer price report will be the catalyst for some profit-taking. On a longer-term horizon, the market may be ripe for a correction too. Otavio Costa at Crescat Capital notes that Japanese stock market cap is around 150% of GDP, which he reckons makes it one of the most overvalued in the world. In China, meanwhile, the central bank on Monday surprised markets by keeping its medium-term policy rate steady, dashing hopes for a cut to shore up the country's uneven post-pandemic recovery. The People's Bank of China disappointed market expectations for a cut as it held the rate on almost 1 trillion yuan worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.50%. The MLF was last cut in August 2023, from 2.65%. The PBOC is in a tight spot. The economy needs stimulus but cutting rates will probably push the already weak yuan even lower, which could risk domestic capital flight and deter investment from overseas. The onshore yuan weakened anyway on Monday, sliding to a one-month low of 7.1813 per dollar, an indication of just how delicate the PBOC's task is. Here are key developments that could provide more direction to markets on Tuesday: - Japan corporate goods prices (December) - Australia consumer sentiment (January) - South Korea import, export prices (December) https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-01-15/

2024-01-15 21:40

TSX ends up 0.3% at 21,061.88 Approaches recent 20-month high Energy rallies 0.9% Consumer staples add 0.8% TORONTO, Jan 15 (Reuters) - Canada's main stock index rose on Monday, helped by gains for the energy and consumer staples sectors, as investors weighed a Bank of Canada business survey that could leave the door open to interest rate cuts in the first half of the year. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 71.66 points, or 0.3%, at 21,061.88, stopping just short of the 20-month high it notched last Monday at 21,074.91. Trading volumes were lower than usual, with U.S. markets closed for the Martin Luther King Jr. Day holiday. Canadian firms say their order books declined as interest rates crimped consumer spending, and they see inflation easing despite increased concerns over wages for the next year, the central bank said in a quarterly survey. "The report should make the Bank of Canada feel a little better that inflationary pressures and expectations are normalising, albeit not by quite enough yet to bring an early interest rate cut," Andrew Grantham, a senior economist at CIBC Capital Markets, said in a note. "We continue to expect a first move in June." Canada's consumer price index report for December is due on Tuesday, which could offer additional clues on the central bank's policy outlook. Economists expect inflation to rise to 3.4% from 3.1% in November. The energy sector rose 0.9% as the price of oil clawed back much of its earlier decline. U.S. crude oil futures were down 0.3% at $72.50 a barrel. Consumer staples added 0.8% and utilities ended 1.1% higher. Shares of Thomson Reuters Corp (TRI.TO) gained 0.9% as the company raised its offer to buy Sweden's Pagero (PAGERO.ST) and said it now controls about 54% of the company. https://www.reuters.com/markets/tsx-futures-fall-amid-thin-volumes-dec-cpi-focus-2024-01-15/

2024-01-15 21:32

https://www.reuters.com/sustainability/group-27-shell-investors-co-file-new-climate-resolution-2024-01-15/

2024-01-15 21:28

WINNIPEG, Manitoba, Jan 15 (Reuters) - The minister responsible for Alberta's electricity system said on Monday he has "high concern" about whether the Canadian province is building enough new power plants to avoid shortfalls, after frigid weather strained the grid. The Alberta Electric System Operator (AESO) issued a grid alert on Saturday, warning consumers that it may impose rolling power outages due to soaring demand caused by extreme cold. Consumers responded by cutting electricity use and the grid avoided outages. The system strain reflects in part Alberta's rush to phase out coal-fired electricity generation during the past decade, Alberta Affordability and Utilities Minister Nathan Neudorf said. Power capacity "is still an area of high concern," Neudorf said in an interview. "As we saw this weekend, if you have a couple of plants go down due to the cold or mechanical issues you can be in a tough spot very quickly." Conditions were a "perfect storm" for strained power supplies, Neudorf said, including little wind to generate electricity and limited ability for neighboring provinces to share power due to their own frigid weather. Alberta last year halted approvals on renewable energy projects until March 2024 over concerns about intermittency and land use. Alberta generates most of its electricity from natural gas. Alberta has added significant new electricity capacity in the last two years, however. Kineticor's 900-megawatt Cascade power project is expected to come online soon, capable of supplying 8% of Alberta's average electricity demand. That plant alone will significantly ease future strains, said Sara Hastings-Simon, associate professor of science at the University of Calgary. Saturday's grid alert highlights the need for Alberta to build more battery storage and to offer consumers lower electricity prices during off-peak periods, reducing potential for overwhelming the grid, Hastings-Simon said. Alberta has threatened to undermine Prime Minister Justin Trudeau's clean electricity regulations, which aim to make Canada's power grid emissions-free on a net basis by 2035, a goal that Premier Danielle Smith says is unrealistic. The regulations would strictly limit the hours natural gas plants can operate during peak demand times and require costly carbon-capture facilities, Neudorf said. "We hope this (grid alert) is a life lesson for all Canadians," he said. Spokespersons for the Canadian natural resources ministry could not immediately be reached. AESO declared three grid alerts last year and seven in 2022. Alberta last imposed rotating power outages in 2013 during a major flood. https://www.reuters.com/world/americas/alberta-minister-fears-electricity-shortfalls-after-grid-strain-2024-01-15/