2024-08-14 22:38

GEORGETOWN, Aug 14 (Reuters) - A development plan for Guyana's seventh offshore oil project is expected early next year, Natural Resources Minister Vickram Bharrat said on Wednesday, and would bring the South American nation's total oil production to more than 1.4 million barrels per day. The South American country has emerged as the fastest growing oil nation in the last decade, with more than 30 discoveries off its coast. A consortium led by Exxon Mobil (XOM.N) , opens new tab is producing about 650,000 barrels of oil per day (bpd) from three production platforms. The group's latest discoveries slightly raised the country's total estimate of recoverable oil and gas in Guyana to 11.6 billion barrels, Bharrat said. The official figure is up from the "more than 11 billion barrels" that has been used since 2022 by the Exxon-led consortium. The seventh project, called Hammerhead, is projected to add up to 180,000 bpd of production capacity after it starts output in 2029. "We have not received the field development plan as yet. That will probably be in the first quarter of 2025, and then we will conduct the necessary due diligence with the view of issuing the license once everything is okay," he said. Winners of a 2023 offshore bidding round for offshore exploration and development blocks are reviewing a production sharing agreement with the intention of paying the signing bonuses and ink the contracts, he said. Bharrat did not say when the companies are expected to conclude their reviews. INACTIVE LICENSE A license that had been granted to Canada-incorporated firms CGX Energy (OYL.V) , opens new tab and Frontera Energy (FEC.TO) , opens new tab to explore a promising offshore block in Guyana, Corentyne, has expired and no decision has been made to extend it. "There is no license held by CGX presently. However, the matter is still at the cabinet level for further discussion," Bharrat said. Guyana's Vice President Bharrat Jagdeo this year criticized the group, which has been unable to secure a financial partner for its Guyana projects, complicating its development plans. Analysts and experts were expecting Corentyne to be the next block to be developed in Guyana, bringing much needed diversity to the country's industry, where all output is controlled by the Exxon group. A separate license to Spain's Repsol (REP.MC) , opens new tab for exploring the Kanuku block expired last year, with no renewal approved. Sign up here. https://www.reuters.com/business/energy/development-plan-exxons-seventh-project-guyana-expected-q1-2025-2024-08-14/

2024-08-14 21:57

US supports global target to reduce plastic production US also supports creating a list of harmful chemicals to be phased out Change in US position comes before final talks in South Korea on Nov. 25 WASHINGTON, Aug 14 (Reuters) - The United States, one of the world's biggest plastic makers, will support a global treaty calling for a reduction in how much new plastic is produced each year in a major policy shift, a source close to U.S. negotiators told Reuters on Wednesday. The change away from its earlier calls to leave such decisions up to each country puts the U.S. in direct opposition to countries like Saudi Arabia and China. Those countries have argued that the hoped-for United Nations treaty, which negotiators are scheduled to conclude at a November summit in Busan, South Korea, should ignore questions of production and focus on downstream measures, such as encouraging recycling and changing packaging design. The Busan talks will take place after the U.S. presidential election on Nov. 5, in which Vice President Kamala Harris is up against former President Donald Trump. Trump has previously shunned global environmental agreements and pulled the U.S. out of the UN Paris climate agreement. HIGH AMBITION COUNTRIES The policy shift also puts the U.S. in closer alignment with a group of so-called high ambition countries that includes EU member states, South Korea, Canada, Rwanda and Peru and has called for a global plastics treaty to cap and phase down the production of plastic. The group has also targeted a list of chemicals of environmental concern used in plastic production that should be eliminated. The U.S. now also supports working to create a possible global list of chemicals on which to develop obligations to avoid a "patchwork" of different national requirements, as well as set global criteria to identify what should be on a list of "avoidable plastic products" to phase out, the source said. The debate over whether a UN treaty should seek to limit the amount of plastic being made drove the last round of negotiations in Ottawa in April to overtime, with major plastic and petrochemical producers like Saudi Arabia and China blocking further negotiations around production caps, arguing that countries should focus on less contentious topics, such as plastic waste management. The EU and other parties have raised concerns that ongoing divisions between countries over the scope of the treaty will make it difficult to close negotiations in Busan. They have launched an effort called the "Bridge to Busan" to keep plastic production targets "alive" in the treaty text at the Busan talks. The source did not say whether the U.S. would support that effort. The White House briefed stakeholders on Wednesday on its shift in position "that raises ambition", the source said. The change in position drew criticism by industry groups and cautious praise from environmental groups. The American Chemistry Council said the shift signals that the Biden administration "caved" to the wishes of environmental groups. The ACC backs a global treaty but does not support caps or lists of chemicals to control. "With today’s shift in position to support plastic production caps and regulate chemicals via the UN Plastics Agreement, the White House has signaled it is willing to betray U.S. manufacturing and the hundreds of thousands of jobs it supports," said Chris Jahn, president of the ACC. Greenpeace called the shift a "watershed moment" in the fight against plastic pollution. "It is a welcome signal that they are finally listening to the demands of the American people," said John Hocevar, Greenpeace USA Ocean’s Campaign Director. The changes come ahead of a meeting in Bangkok parallel to the ongoing treaty negotiations later this month and after the U.S. last month laid out new policies to tackle plastic pollution. Sign up here. https://www.reuters.com/sustainability/shift-us-backs-global-target-reduce-plastic-production-source-says-2024-08-14/

2024-08-14 21:47

Aug 15 (Reuters) - A look at the day ahead in Asian markets. The prospect of looming U.S. rate cuts was back on the front burner after an inflation report, which had kept markets on edge ahead of its release, showed a tame reading. Wednesday's consumer price index showed a moderate rise in July with the annual increase in U.S. inflation slowing below 3% for the first time in nearly 3-1/2 years. Following the July CPI data, the question investors seemed to be debating was not whether the Fed would cut rates at its Sept. 17 to 18 meeting, but by how much. Traders appeared to be leaning toward a more modest 25 basis point cut, but 50 bps was not ruled out. Nearly 40% odds were put on the bigger cut in September, according to CME FedWatch. The Fed’s annual Jackson Hole gathering, set for Aug. 22 to 24, will give Chair Jerome Powell a chance to fine tune his rates message ahead of the meeting. Much more U.S. economic data also will arrive in coming weeks, starting on Thursday with the monthly retail sales report and the weekly jobless claims data. The reports are likely to receive even greater scrutiny given the weak employment data at the start of August that sparked some concerns about a potential recession. That employment data also was a catalyst for a bout of severe volatility and equity downside to start August, but markets seemed to be moving further and further from those wild swings. The S&P 500 ended up 0.4% on Wednesday after the tame CPI report, with the benchmark index now down less than 4% from its all-time high reached in July. The Cboe Volatility index .VIX continued to recede, ending at just over 16 on Wednesday after shooting above 65 on Aug. 5. In another sign of revived animal spirits on Wednesday, candy giant Mars was set to buy Cheez-It maker Kellanova (K.N) , opens new tab for nearly $36 billion, in the year's biggest deal to date. Rate cuts were gripping other regions as well. New Zealand's central bank slashed its benchmark rate for the first time since March 2020 and flagged more cuts over coming months. Elsewhere, GDP data was expected on Thursday for Japan, as investors in the country were still digesting news that Prime Minister Fumio Kishida will step down in September. Meanwhile, China is set to release a spate of data, including retail sales. A number of gloomy reports have dulled expectations for China's economic performance in July. Here are key developments that could provide more direction to markets on Thursday: - China industrial output, retail sales (July) - Japan GDP (Q2) - U.S. retail sales (July) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-2024-08-14/

2024-08-14 21:35

HOUSTON, Aug 14 (Reuters) - Oil and gas producer BP Plc (BP.L) , opens new tab told federal regulators on Wednesday that it has reviewed confidential commissioning documents and does not believe Venture Global LNG needs more time to begin commercial production. Venture Global LNG's Calcasieu Pass plant has been at the center of a long-running dispute involving energy companies including BP and Shell (SHEL.L) , opens new tab over access to liquefied natural gas from the plant. Venture Global is expected to become the second largest U.S. exporter of the super chilled gas when it starts producing from its new 20 million metric tons per annum (MTPA) by the end of the year. This would be its second LNG plant and will reinforce the U.S. position as the world's largest LNG exporter. BP said it has reviewed the documents submitted by Venture Global under a protective order and "reiterates its position that no extension is required", the company told federal regulators. The documents cover ongoing repairs to a heat recovery steam generator that were filed under seal as well as over 124 weekly commissioning and site inspection reports. The Arlington, Virginia-based firm's Calcasieu Pass plant has been producing and shipping LNG for more than two years, but has not provided contract customers with supplies, saying the plant is not yet fully operational. Venture Global applied to the Federal Energy Regulatory Commission for an extension to start commercial operations of its Calcasieu Pass LNG-export facility in Louisiana to next year, but its customers said they could not justify the extension unless they had access to confidential commercial documents. On July 25, an administrative law judge issued an order allowing BP and other Venture Global customers access to the documents. Venture Global was not immediately available for comment. Sign up here. https://www.reuters.com/business/energy/bp-tells-regulators-venture-global-does-not-need-more-time-move-commercial-2024-08-14/

2024-08-14 21:01

Aug 14 (Reuters) - The private equity owner of Maverick Natural Resources is exploring a potential sale that could value the U.S. oil and gas producer at nearly $3 billion, including debt, according to people familiar with the matter. The Houston-based exploration and production company, which is owned by energy-focused investment firm EIG, is working with investment bankers at Jefferies (JEF.N) , opens new tab on the sale process, the sources said, requesting anonymity as the discussions are confidential. Potential buyers, such as oil & gas producers and other investment firms, would have to take on nearly $800 million of Maverick's debt, including the outstanding amount on an asset-backed securitization tied to some of its assets, the sources said, cautioning that no deal is guaranteed. An asset-backed securitization is a financing structure where some assets of a company are used as collateral for the issuance of notes or bonds sold to investors. In the case of energy operators such as Maverick, the collateral is revenue tied to its future oil and gas production. Such financing structures have been used by private oil and gas companies to fund operations amid a pullback in lending by some banks concerned by the industry's environmental impact. A potential deal for Maverick comes as a dealmaking boom sweeps through the U.S. shale industry. Large energy producers have been willing to splurge on deals to gain scale and snap up prime drilling sites, thus creating exit opportunities for buyout firms holding oil and gas assets. EIG and Maverick did not respond to comment requests. Jefferies declined comment. Maverick was formed in 2018 following the Chapter 11 of its predecessor firm Breitburn Energy Partners. Since emerging from bankruptcy, it has grown through acquisitions and struck deals to acquire FourPoint Energy and some of ConocoPhillips' (COP.N) , opens new tab assets. Maverick primarily operates in the Anadarko basin of Oklahoma and a sub-section of the Permian basin in New Mexico known as the Northwest Shelf. The company produces roughly 60,000 barrels of oil equivalent per day, about two-thirds of which are natural gas and natural gas liquids, from all its combined operations, one of the sources said. Sign up here. https://www.reuters.com/markets/deals/energy-producer-mavericks-owner-explores-sale-valuing-it-3-billion-sources-say-2024-08-14/

2024-08-14 20:46

WASHINGTON, Sept 18 (Reuters) - The U.S. is slowly replenishing the Strategic Petroleum Reserve, seeking to buy another up to 6 million barrels of oil for delivery through May next year, after the largest sale yet from the stockpile in 2022. The Energy Department said on Wednesday it is seeking to buy the oil for delivery from February through May to the reserve's Bayou Choctaw, Louisiana site. Reuters exclusively reported the news a day earlier. Here are facts about the SPR and efforts to put oil back in. WHAT IS THE SPR? It is the world's largest emergency oil stash. President Gerald Ford created the SPR in 1975 after the Arab oil embargo led gasoline prices to spike and damaged the economy. Presidents since have tapped the stockpile to calm oil markets during war involving oil-producing countries or when hurricanes hit oil infrastructure along the U.S. Gulf of Mexico. The oil is held in heavily guarded underground caverns at four sites on the Texas and Louisiana coasts. HOW MUCH SPR OIL WAS SOLD IN 2022? In 2022, the administration of President Joe Biden announced a sale of 180 million barrels of oil over six months, the largest SPR sale to date, in an attempt to lower gasoline prices after Russia invaded Ukraine. The Department of Energy also conducted a sale of 38 million barrels in 2022 that had been mandated by Congress. WHAT PRICE DOES THE US WANT TO BUY SPR OIL? The administration says it sold the 180 million barrels at an average of about $95 a barrel. It wants to buy back oil at $79 to $79.99 or less. Prices of the U.S. oil benchmark West Texas Intermediate fell to about $70.91 a barrel on Wednesday as a rate cut from the Federal Reserve raised worries about the health of the U.S. economy. Conflict in the Middle East and other factors could quickly boost oil prices, however In April, the U.S. canceled an SPR purchase of oil due to rising prices. HOW MUCH IS COMING BACK? The administration has so far bought back more than 50 million barrels of domestic oil since the historic 2022 sale at an average price of $76 a barrel, it says. ClearView Energy Partners, a Washington based research group, estimates that the Energy Department has about $840 million left in its account to buy back SPR oil, or enough for about 10.5 million barrels at current prices. In late 2022, the DOE worked with Congress to cancel the sale of 140 million barrels of SPR oil through 2027. Democratic and Republican lawmakers had voted for those sales to pay for government programs. To keep filling the SPR after the money in the account is exhausted, the department would have to get Congress to allocate additional funds. It could also work to cancel future congressionally-mandated sales. CURRENT SPR LEVEL The reserve holds 380 million barrels, most of which is sour crude, or oil that many U.S. refineries are engineered to process. The most it has held was nearly 727 million barrels in 2009. The sales in 2022 reduced levels of the SPR to the lowest in about 40 years. That angered some Republicans who accused the Democratic administration of leaving the U.S. with a thin supply buffer to respond to a future crisis. The administration says it has a three-pronged strategy to return oil to the reserve. That includes buying back oil, the return of oil loaned from the SPR to companies, and canceling congressionally mandated sales of 140 million barrels of SPR oil through 2027. Both Democratic and Republican lawmakers had voted for those sales to pay for government programs. The U.S., which is producing more oil than any other country ever has, is now a net exporter of crude oil and petroleum products. As members of the International Energy Agency, the West's energy watchdog, the U.S. and other countries are required to hold 90 days' worth of imports in reserve. So under that rule, the U.S. is not required at the moment to hold reserves. Sign up here. https://www.reuters.com/business/energy/us-plans-slowly-replenish-strategic-petroleum-reserve-into-2025-2024-08-14/