2024-06-20 12:15

LAGOS, June 20 (Reuters) - Nigeria is expanding the number of oil blocks slated for auction in its 2024 licensing round as well as extending the deadline for ending the exercise amid keen interest in the offer, the oil regulator told Reuters on Thursday. Nigeria opened a licensing round in April offering a total of 19 onshore and deepwater oil blocks to investors. This has now been expanded to include an additional 17 deep offshore blocks to the 2024 licensing round. "We have undertaken more exploratory activities and as a result acquired more data to expand the offer and extend the deadline. This has given rise to tremendous interest from investors," Gbenga Komolafe, head of Nigerian Upstream Regulatory Commission (NUPRC) said. Komolafe said that registration, which had been slated to close on June 25, has been extended by 10 days. Bid submissions would open on July 8 and close on Nov. 29. The oil regulator is seeking to deepen exploitation of the country's estimated 37.5 billion barrels of crude oil and 209.26 trillion cubic feet of natural gas reserves. It has tried to sweeten the offer by cutting entry fees called signature bonus from around $200 million per field to $10 million, promised a fair and transparent process and allowed online submissions through its website. Bidders also have the option to lease single units of oil blocks or in clusters. Nigeria is seeking to halt the flow of investments to African rivals Angola and Namibia by improving the ease of acquiring oil blocks. Nigeria, a member of the Organization of the Petroleum Exporting Countries (OPEC), has seen its oil production decline from around 2 million barrels a decade ago to just over 1.4 million barrels per day. Oil majors are leaving onshore fields - prone to sabotage and frequent claims to compensation for spills - to focus on deepwater fields where disruptions are less common. Sign up here. https://www.reuters.com/business/energy/nigeria-oil-licence-auction-attracts-huge-interest-regulator-says-2024-06-20/

2024-06-20 12:12

Hundreds dead on S.Arabia haj pilgrimage, numbers rising 86 million people under heat alerts in the US New Delhi records hottest nighttime temperature Balkans hit by temperatures around 40 Celsius LONDON, June 20 (Reuters) - Deadly heatwaves are scorching cities on four continents as the Northern Hemisphere marks the first day of summer, a sign that climate change may again help to fuel record-breaking heat that could surpass last summer as the warmest in 2,000 years. Record temperatures in recent days are suspected to have caused hundreds, if not thousands, of deaths across Asia and Europe. In Saudi Arabia, nearly two million Muslim pilgrims are finishing the haj at the Grand Mosque in Mecca this week. But hundreds have died during the journey amid temperatures above 51 degrees Celsius (124 degrees Fahrenheit), according to reports from foreign authorities. Egyptian medical and security sources told Reuters on Thursday that at least 530 Egyptians had died while participating - up from 307 reported as of yesterday. Another 40 remain missing. Countries around the Mediterranean have also endured another week of blistering high temperatures that have contributed to forest fires from Portugal to Greece and along the northern coast of Africa in Algeria, according to the U.S. National Oceanic and Atmospheric Administration's Earth Observatory. In Serbia, meteorologists forecast temperatures of around 40 C (104 F) this week as winds from North Africa propelled a hot front across the Balkans. Health authorities declared a red weather alert and advised people not to venture outdoors. Belgrade's emergency service said its doctors intervened 109 times overnight to treat people with heart and chronic health conditions. In neighbouring Montenegro, where health authorities also warned people to stay in the shade until late afternoon, tens of thousands of tourists sought refreshment on the beaches along its Adriatic coast. Europe this year has been contending with a spate of dead and missing tourists amid dangerous heat. A 55-year-old American was found dead on the Greek island of Mathraki, police said on Monday - the third such tourist death in a week. A broad swath of the eastern U.S. was also wilting for a fourth consecutive day under a heat dome, a phenomenon that occurs when a strong, high-pressure system traps hot air over a region, preventing cool air from getting in and causing ground temperatures to remain high. New York City opened emergency cooling centres in libraries, senior centers and other facilities. While the city's schools were operating normally, a number of districts in the surrounding suburbs sent students home early to avoid the heat. Meteorological authorities also issued an excessive heat warning for parts of the U.S. state of Arizona, including Phoenix, on Thursday, with temperatures expected to reach 45.5 C (114 F). In the nearby state of New Mexico, a pair of fast-moving wildfires abetted by the blistering heat have killed two people, burned more than 23,000 acres and destroyed 500 homes, according to authorities. Heavy rains could help temper the blazes, but thunderstorms on Thursday were also causing flash flooding and complicating firefighting efforts. All told, nearly 100 million Americans were under extreme heat advisories, watches and warnings on Thursday, according to the federal government's National Integrated Heat Health Information System. The brutal temperatures should begin easing in New England on Friday, the weather service said, but New York and the mid-Atlantic states will continue to endure near-record heat into the weekend. COUNTING THE DEAD India's summer period lasts from March to May, when monsoons begin slowly sweeping across the country and breaking the heat. But New Delhi on Wednesday registered its warmest night in at least 55 years, with India's Safdarjung Observatory reporting a temperature of 35.2 C (95.4 F) at 1 a.m. Temperatures normally drop at night, but scientists say climate change is causing nighttime temperatures to rise. In many parts of the world, nights are warming faster than days New Tab, opens new tab, according to a 2020 study by the University of Exeter. New Delhi has clocked 38 consecutive days with maximum temperatures at or above 40 C (104 F) since May 14, according to weather department data. An official at the Indian health ministry said on Wednesday there were more than 40,000 suspected heatstroke cases and at least 110 confirmed deaths between March 1 and June 18, when northwest and eastern India recorded twice the usual number of heatwave days in one of the country's longest such spells. Gaining accurate death tolls from heatwaves, however, is difficult. Most health authorities do not attribute deaths to heat, but rather the illnesses exacerbated by high temperatures, such as cardiovascular issues. Authorities therefore undercount heat-related deaths by a significant margin - typically overlooking thousands if not tens of thousands of deaths. RECORD WARM TEMPERATURES The heatwaves are occurring against a backdrop of 12 consecutive months that have ranked as the warmest on record in year-on-year comparisons, according to the European Union's climate change monitoring service. The World Meteorological Organization says there is an 86% percent chance that one of the next five years will eclipse 2023 to become the warmest on record. While overall global temperatures have risen by nearly 1.3 C (2.3 F) New Tab, opens new tab above pre-industrial levels, climate change is fuelling more extreme temperature peaks - making heatwaves more common, more intense and longer-lasting. On average globally, a heatwave that would have occurred once in 10 years in the pre-industrial climate will now occur 2.8 times over 10 years, and it will be 1.2 C warmer, according to an international team of scientists with the World Weather Attribution (WWA) group. Scientists say heatwaves will continue to intensify if the world continues to unleash climate-warming emissions from the burning of fossil fuels. If the world hits 2 C (3.6 F) of global warming, heatwaves would on average occur 5.6 times in 10 years and be 2.6 C (4.7 F) hotter, according to the WWA. Sign up here. https://www.reuters.com/business/environment/millions-sweltering-under-extreme-heat-worldwide-summer-arrives-2024-06-20/

2024-06-20 11:42

SANTIAGO, June 20 (Reuters) - Two people were killed and nine injured on Thursday when a passenger train in a test run by Chile's state railway company (EFE) collided with a cargo train operated by private rail firm Fepasa, EFE said. In the San Bernardo area on the outskirts of the capital shortly after midnight, the EFE train collided with the northbound Fepasa train carrying about 1,346 metric tons of copper. The injured, including four Chinese nationals, were part of the test train crew and were receiving medical treatment. Local prosecutor Pedro Aravena told local media the injured were in serious but not life-threatening condition. The two people killed were operators of the Fepasa cargo train, EFE said in a statement. The local prosecutor's office detained two EFE officials as part of a probe into the accident. Initial findings indicated that the passenger train was conducting speed maneuvers when it collided with the Fepasa train, Aravena said at a news conference. The train undergoing the test run was not informed of another cargo train approaching from the south, he noted. The EFE passenger train's black box has not been retrieved, the Transport Ministry told Reuters, adding its GPS system was operational at the time of the accident. Fepasa's General Manager David Fernandez told local media that despite the accident, train travel remains statistically safe. "When there is a train accident it is very shocking as you can see. But the rail system clearly still offers much more security than highways," he said. Sign up here. https://www.reuters.com/world/americas/two-killed-chilean-train-test-run-collides-with-cargo-train-2024-06-20/

2024-06-20 11:38

June 20 (Reuters) - Ukraine and the European Commission have extended a freight liberalisation agreement, allowing Ukrainian cargo permit-free entry to the EU for another year, Ukraine's prime minister said on Thursday. Denys Shmyhal said on X that the agreement envisaged the possibility of an automatic extension until the end of 2025. "This is an important step towards integrating #Ukraine into the EU area, increasing Ukrainian exports and European imports, strengthening the economy and stability," Shmyhal said on X social platform. Ukraine and the European Union signed a free regime agreement on June 29, 2022 and have renewed the agreement every year. The agreement cancels the requirement for Ukrainian carriers to obtain relevant permits for bilateral and transit transport to the EU and avoids stopping the export of Ukrainian products through road checkpoints. The regime was critical in a situation where Ukrainian Black Sea ports, key to imports and exports, were blocked after the Russian invasion in February 2022. However, the sharp increase in traffic across Ukraine's borders with the EU has caused protests from hauliers in neighbouring countries. Thousands of lorries carrying goods had been idle for weeks at Poland's border crossings with Ukraine because of protests that began last November and continued intermittently for several months. The protesters wanted to end Ukrainian truckers' permit-free access to the EU, saying Ukrainian drivers are undercutting their prices. Sign up here. https://www.reuters.com/world/europe/ukraine-eu-extend-permit-free-regime-freight-pm-says-2024-06-20/

2024-06-20 11:25

LONDON, June 20 (Reuters) - The Bank of England kept interest rates steady at a 16-year high of 5.25% on Thursday ahead of a July 4 election, but some policymakers said their decision not to cut rates was now "finely balanced". The BoE's Monetary Policy Committee voted 7-2 to keep rates on hold, in line with economists' expectations in a Reuters poll. Deputy Governor Dave Ramsden and external MPC member Swati Dhingra remained the only policymakers to support a cut to 5%. MARKET REACTION: FOREX: Sterling dipped after the decision. It was last down 0.24% on the day at $1.2689 compared to $1.2706 earlier and traded at 84.56 pence per euro , a touch softer on the day. STOCKS: The blue-chip FTSE 100 (.FTSE) New Tab, opens new tab rallied and was last up 0.38%. The mid-cap FTSE 250 (.FTMC) New Tab, opens new tab, which is more exposed to the domestic British economy, was also up around the same amount having been 0.16% higher just before the rate decision. FIXED INCOME: Benchmark 10-year gilt yields fell and were last down 3.4 basis points on the day at 4.036%, having traded around 4.07% earlier. Money markets showed traders were pricing in 50 bps worth of cuts by end-2024, compared with 45 bps' worth prior to the decision . COMMENTS: JULIAN HOWARD, CHIEF MULTI-ASSET INVESTMENT STRATEGIST, GAM, LONDON: "The Bank of England left interest rates unchanged today at 5.25%, but the path appears increasingly clear for some easing at the August meeting. Inflation has come right down to the target level of 2%, unlike in the US and - to an extent - Europe. In particular, the UK's energy bills are easing and although its unique bill-capping regime has seen lumpier price movements, actual realised prices for consumers are finally normalising." FRANCES HAQUE, UK CHIEF ECONOMIST, SANTANDER, LONDON: “There were no surprises today with the Monetary Policy Committee (MPC) keeping Bank Rate at 5.25% with a vote of 7-2 for a hold the same as May’s vote. With the general election in full swing and with services inflation proving sticky yet again only falling 0.2% in May, it was unlikely that the MPC would cut rates at this meeting, despite CPI falling to target. Although April saw stagnation in growth, which was impacted by the very wet weather that month, the outlook remains positive, with the Purchasing Managers Index (PMIs) indicating further growth for Q2. But any cuts to bank rate will continue to depend on how wage growth and services inflation evolve. The May PMIs have offered some light here, with both the input and output services price balance falling back, suggesting that price rises are slowing and that the boost from April’s minimum wage was a one-off. However, this needs to flow through to the official data." NEIL JONES, SENIOR FX SALES TO FINANCIAL INSTITUTIONS, TJM EUROPE, LONDON: "A 7-2 hold vote is no surprise, but this is clearly a dovish hold. The narrative from Bailey suggests for some, they are close to cutting." "The pound is trading lower on the 'finely balanced' comment." "August is now down to the wire. A 5-4 cut vote is back in play." MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON: "The Bank of England's Monetary Policy Committee sprang no surprises with today's decision to hold Bank Rate steady for the seventh straight meeting, with such a decision having been fully discounted by money markets prior to its announcement. "The unchanged split 7-2 vote, with (Swati) Dhingra and (Dave) Ramsden again favouring an immediate 25-bp rate cut, also came as little surprise, with information since the May meeting having given policymakers little reason to significantly alter their stance over the last six weeks. "Reflecting this, the accompanying policy statement - unsurprisingly - was largely a 'carbon copy' of that released after the aforementioned May meeting. It was, however, noteworthy that the decision not to cut was described as "finely balanced" for some members of the Committee, heightening the chances of a cut next time around." ANDREW SUMMERS, CHIEF INVESTMENT OFFICER AT OMNIS INVESTMENTS, LONDON: "We didn’t expect the Bank to reduce interest rates today." "This year’s upside surprises to inflation have been too many and yesterday's print probably marks the low for this year, so the Bank will want to see further evidence that inflation has indeed been tamed. This is likely to come in the form of temperance in service sector and wage inflation, which we do expect will begin to emerge soon. Rate cuts are on the horizon, beginning possibly in August but probably by November." LINDSAY JAMES, INVESTMENT STRATEGIST, QUILTER INVESTORS, LONDON: "Though inflation hitting 2% marked a significant milestone, it is simply not enough to allow the Bank of England to declare 'job done'. This decision is no real surprise given month-on-month figures suggest inflation is unlikely to remain at 2% for long. It is, instead, expected to rise again later this year and ultimately settle between 2% and 3%." Sign up here. https://www.reuters.com/world/uk/view-bank-england-holds-rates-steady-ahead-uk-election-2024-06-20/

2024-06-20 11:22

Campaigners win appeal over approval for oil wells Impact of downstream emissions should have been considered Activists say ruling will impact future fossil fuel projects LONDON, June 20 (Reuters) - Planning authorities should have considered the impact of climate-warming emissions in approving an oil well near Gatwick Airport, the UK's highest court said on Thursday, a ruling activists say could profoundly impact new fossil fuel projects in Britain. Environmental campaigners had argued that planning permission to retain and expand the oil well site near London's Gatwick was flawed because it had not considered the impact of greenhouse gas emissions from the use of the oil. Supreme Court judges agreed by a narrow three to two majority, and quashed the planning approval which they said was unlawful. While the court said councils could still approve schemes even if they were likely to cause significant harm to the environment, campaigners said the landmark judgment would make it much harder for new oil, gas and coal developments to get approval. "This historic ruling is a watershed moment in the fight to stop further fossil fuel extraction projects in the UK and make the emissions cuts needed to meet crucial climate targets," Friends of the Earth lawyer Katie de Kauwe said. "It is a huge boost to everyone involved in resisting fossil fuel projects." The campaign groups said the ruling could hit proposals for other controversial schemes such a new coal mine in Cumbria, northern England, as well as North Sea oil and gas projects. "Oil and gas companies will be working through the judgment to assess to what extent it affects future projects in the UK, and existing challenges before the courts, which had been stayed pending the Supreme Court's decision," Tom Cummins, partner at law firm Ashurst. The government said it would carefully consider the impact of the ruling and any relevance for other ongoing legal proceedings. NEW OIL WELLS The case concerned a decision in 2019 by Surrey County Council to allow Horse Hill Developments, part-owned by British energy company UK Oil & Gas Plc (UKOG), to retain two oil wells and drill four more over a 20-year period near the town of Horley, close to Gatwick. An Environmental Impact Assessment (EIA) for the project examined the effect of the construction, production and decommissioning of the site, but did not assess the impact from emissions that would result from the use of the refined oil. The Weald Action Group (WAG), an umbrella organisation for local groups that campaign against the extraction of oil and gas in southeast England, estimated this would equate to more than 10 million tonnes of carbon emissions. A campaigner acting for WAG launched a legal challenge against the planning approval on the basis the EIA was flawed, but this was rejected both by the High Court in London and then by the Court of Appeal. However, the Supreme Court overruled, saying it was inevitable there would be combustion emissions from the refined oil. "It is not disputed that these emissions, which can easily be quantified, will have a significant impact on climate," said George Leggatt, one of the three Supreme Court justices who agreed with the appeal. "The only issue is whether the combustion emissions are effects of the project at all. It seems to me plain that they are." UKOG's CEO Stephen Sanderson said the company's focus had shifted from oil and gas to underground hydrogen storage, but added it would work closely with the local authority to account for "this retrospective change to EIA requirements". The council itself said planning permission for the oil well "remains to be determined in due course". Sign up here. https://www.reuters.com/world/uk/environmental-activists-win-landmark-ruling-over-uk-oil-well-plan-2024-06-20/