2024-07-20 17:53

July 20 (Reuters) - Slovakia will not be a "hostage" to Ukraine-Russia relations, its Prime Minister Robert Fico told his Ukrainian counterpart in a call on Saturday, after Kyiv placed Russian group Lukoil on a sanctions list, leading to a halt in deliveries. Slovakia and Hungary said this week they had stopped receiving oil from key supplier Lukoil (LKOH.MM) , opens new tab after Ukraine imposed a ban last month on the transit of resources from the Russian energy company via its territory. For Slovakia, that meant a loss in some supplies for its Slovnaft refinery, which is owned by Hungarian oil and gas group MOL (MOLB.BU) , opens new tab. Slovakia's government office said on Saturday that Fico spoke by telephone with Ukrainian Prime Minister Denys Shmyhal and told him Slovakia did not intend "to be a hostage of Ukrainian-Russian relations". Slovnaft will receive 40% less oil for processing than needed, the government said, which will hit Slovak markets and could also lead to a stop of diesel supplies from Slovnaft destined for Ukraine. "The inclusion of Lukoil on the sanctions list is just another example of senseless sanctions that do not hurt the Russian Federation but mainly some (European Union) member state, which is unacceptable," Fico's office said. Fico has been a long-time critic of sanctions against Russia and, after taking office for a fourth time last year, halted direct state military aid to Ukraine, raising criticism for veering foreign policy too close to Moscow. While the EU has imposed sanctions on Russian crude already, some countries like Slovakia have exemptions to have more time to transition to alternative sources. Sign up here. https://www.reuters.com/world/europe/slovak-pm-blasts-ukraines-lukoil-sanctions-oil-flow-stops-2024-07-20/

2024-07-20 16:47

LAGOS, July 20 (Reuters) - Nigeria's Dangote refinery will hit production of 550,000 barrels per day (bpd) this year, equivalent to 85% of capacity, but it is having to increase crude imports due to insufficient domestic supplies, the plant's CEO said on Saturday. Chief Executive Aliko Dangote said the 650,000-bpd capacity refinery, which is the largest in Africa, had only received five crude cargoes from state oil firm NNPC since it started operating earlier this year, instead of the 15 it expected. "That is why we went ahead and bought some Brazilian crude, we also got U.S. crude. Anytime we go to IOCs (international oil companies) they say go to brokers," Dangote said during a tour of the facility on the outskirts of Lagos. He added that brokers were charging a $4 mark-up per barrel of crude. NNPC had in the past agreed to supply the refinery 300,000 bpd but it is struggling with low production and some of its crude is being exchanged for gasoline imports. The Dangote refinery, built at a cost of $20 billion, began production in January after several years of delays. Sign up here. https://www.reuters.com/business/energy/nigerias-dangote-says-refinery-will-hit-550000-bpd-output-this-year-2024-07-20/

2024-07-20 16:45

LA ROCHELLE, France, July 20 (Reuters) - A police officer and five protesters were injured on Saturday when violence erupted during a demonstration in the French grains port of La Rochelle over the use of reservoirs to supply large-scale agriculture, local officials said. Police fired teargas and brought in water cannon trucks and reinforcements to disperse the roughly 4,000 demonstrators after the unrest broke out in the early afternoon, with several shop fronts smashed and at least seven people arrested. "A number of radical, extreme left wing participants have attacked property and rampaged a supermarket," said Interior Minister Gerald Darmanin on X. "It is hard to see a link to defence of the environment." Droughts in France have heightened tensions over water resources, and critics say building large reservoirs to feed agricultural irrigation is a wasteful practice that favours large farms. On Saturday, the protesters gathered in front of a site belonging to Soufflet Negoce, a grains trading business owned by French cooperative group InVivo, before setting off on their march through the city. In March last year, similar violence broke out during another protest over agricultural reservoirs in Sainte-Soline in western France. Saturday's unrest come as the country has its security alert at its highest level ahead of the Olympic Games, which kick off with an opening ceremony on the River Seine on July 26. Sign up here. https://www.reuters.com/world/europe/french-police-clash-with-reservoir-protesters-la-rochelle-2024-07-20/

2024-07-20 14:28

SINGAPORE, July 20 (Reuters) - Exxon Mobil Corp (XOM.N) , opens new tab intends to transfer the operations of all assets of two production-sharing contracts in Malaysia to state energy company Petronas, Exxon Mobil said on Saturday. Reuters had reported on Friday that Exxon Mobil had agreed to sell its Malaysian oil and gas assets to Petronas, citing two people with direct knowledge of the matter. "This is not a sale and there will be no changes to EMEPMI's working interest in the Production Sharing Contracts," ExxonMobil Exploration and Production Malaysia Inc, or EMEPMI, said in a statement to Reuters. "This does not impact our other businesses in Malaysia — we remain committed to conducting business here as we have for more than 130 years," it added. In a separate statement earlier Saturday, Petronas said Petronas Carigali Sdn Bhd is engaged in discussions with EMEPMI regarding the transfer of operations for two production-sharing contracts located offshore peninsular Malaysia. "The discussions are subject to further agreements between both parties," it said in response to a Reuters query. "Petronas Carigali remains committed to safe operations, as well as maintaining reliable and uninterrupted energy supply for our customers throughout the process." Malaysian media have reported that Exxon Mobil has been trying to sell its ageing upstream assets in the country since 2020. Under the transfer plan, Petronas was taking over operations of Exxon Mobil assets including the Tapis oilfield in Terengganu, which began production in 1978, Reuters reported on Friday, citing three people. Exxon Mobil staff would be transferred to Petronas as part of the deal, one of them said. The terms of the deal were not immediately known. In an article on its website dated Nov. 12, 2023, Exxon Mobil said it remained a significant energy producer in Malaysia, contributing about 40% and 50%, respectively, to Peninsular Malaysia's crude oil and natural gas production. The company operates 35 oil and gas platforms in 12 fields offshore Terengganu, and has a working interest in another 10 platforms in five fields in the South China Sea. The combined operations produce about 15% of Malaysia's crude oil and condensate of 600,000 barrels a day, and more than half of peninsular Malaysia's natural gas of more than 2 billion cubic feet per day. Its last major investment in the country was in a $2.5 billion enhanced oil recovery project at the Tapis field, which started up in late 2014. Sign up here. https://www.reuters.com/business/energy/exxonmobil-transfer-operations-assets-2-production-sharing-contracts-malaysia-2024-07-20/

2024-07-20 13:04

MOSCOW, July 20 (Reuters) - Residents angry over recent power cuts in southern Russia staged a rare public protest on Saturday in the city of Krasnodar, posts on social media said, as the local governor blamed a heatwave for causing the blackouts. The south of Russia has been affected by unusually hot weather that has caused mass power outages in several regions and led to the shutdown earlier this week of one of four power units at the Rostov nuclear power plant, the region's largest. The unit has been put back into operation since then. "There has been abnormal heat in the Krasnodar region for a week now. The load on the energy system is colossal. I know and understand all the indignation of residents due to power outages," Veniamin Kondratyev, the governor of Krasnodar region, said on the Telegram messaging app. He said power capacities were not currently sufficient to meet peak demand during the hot summer months. One video posted on the Baza Telegram channel appeared to show police making at least two arrests during Saturday's protest. Russian authorities have clamped down on any protest activity, especially politically laced dissent, since the start of the conflict with Ukraine in February 2022, and public protests are very rare given the risk of arrest. Sign up here. https://www.reuters.com/world/europe/residents-protest-over-power-cuts-southern-russian-city-2024-07-20/

2024-07-20 11:31

SINGAPORE, July 19 (Reuters) - Exxon Mobil Corp (XOM.N) , opens new tab has agreed to sell its Malaysian oil and gas assets to state energy firm Petronas, exiting the country's upstream sector where it used to be a dominant producer, two people with direct knowledge of the matter said. The U.S. major, which last year marked its 130th year in Malaysia, has been trying to sell its ageing upstream assets in the country since 2020, Malaysian media have reported, part of a shift in its strategy to focus on oil production in the Americas. Petronas has taken over operations of Exxon's assets, including the country's flagship Tapis oilfield in Terengganu which began production in 1978, three people said. Exxon's staff would be transferred to Petronas as part of the deal, one of them said. Petronas said on Saturday that Petronas Carigali Sdn Bhd is currently engaged in discussions with ExxonMobil Exploration and Production Malaysia Inc regarding the transfer of operations for two production-sharing contracts located offshore peninsular Malaysia. "The discussions are subject to further agreements between both parties," it said in response to a Reuters query. "Petronas Carigali remains committed to safe operations, as well as maintaining reliable and uninterrupted energy supply for our customers throughout the process." ExxonMobil did not respond to requests for comment. The terms of the deal were not immediately known. In an article posted on its website dated Nov. 12, 2023, Exxon said it remained a significant energy producer in Malaysia, contributing about 40% and 50%, respectively, to Peninsular Malaysia's crude oil and natural gas production. The company operates 35 oil and gas platforms in 12 fields offshore Terengganu, and has a working interest in another 10 platforms in five fields in the South China Sea. The combined operations produce about 15% of Malaysia's crude oil and condensate of 600,000 barrels a day, and more than half of peninsular Malaysia's natural gas of more than 2 billion cubic feet per day. Its last major investment in the country was in a $2.5 billion enhanced oil recovery project at the Tapis field, which started up in late 2014. Sign up here. https://www.reuters.com/business/energy/exxonmobil-selling-malaysia-oil-gas-assets-petronas-sources-say-2024-07-19/