Friday, April 11, 2025
Thursday, April 10, 2025
Wednesday, April 9, 2025
Tuesday, April 8, 2025
Ghana’s Petroleum Commission to outline upstream investment opportunities
Striving to increase production and reverse natural declines in mature oilfields, Ghana is promoting new investment across its upstream oil and gas sector. The country – through national upstream regulator the Petroleum Commission of Ghana – is embarking on a series of industry reforms that aim to strengthen the operating environment for oil and gas companies. These efforts are expected to translate into heightened exploration, as companies pursue play-opening discoveries in Ghana’s on- and offshore market.
The Petroleum Commission of Ghana will outline the country’s exploration opportunities during the Invest in African Energies: Accra Investor Briefing – taking place next week. Victoria Emeafa Hardcastle, CEO of the Petroleum Commission, is speaking at the event, sharing insight into regulatory reforms, untapped exploration prospects and strategies being implemented to bolster production.
Policies such as the Gas Master Plan stand to transform the country from an oil-reliant market into a diverse and integrated economy
With 17 oil and gas projects scheduled for development by 2027, Ghana is making strides towards unlocking its 1.1 billion barrels of crude reserves and 2.1 trillion cubic feet of gas. The Petroleum Commission regulates and manages the utilization of petroleum resources in Ghana, coordinating policies across the country’s upstream sector. Both existing and new policies are expected to support industry growth, particularly in emerging sectors such as natural gas. Notable policies include the Gas Master Plan, a framework for investing in the country’s gas value chain. The plan outlines a development strategy through 2040, incentivizing capital and technology deployment by offering clear terms and objectives.
The plan has already incentivized major projects. The Tema FLNG project, for example, is under development in Accra. The facility comprises the requisite infrastructure to import, store, re-gasify and deliver LNG to off-takers in the Greater Accra Area. Operated by Helios Investment Partners, the $350 million plant has a capacity of 1.7 million tons of gas per year. Additionally, the Atuabo II Gas Processing plant – an expansion of the operating Atuabo facility – is on track for production in 2025. The second phase has a capacity of 150 million standard cubic feet per day (mmscf/d), with opportunities to increase output two-fold, reaching 300 mmscf/d in future phases. The plant will be capable of producing propane, butane and pentane condensates and is being built at a cost of $700 million.
In the oil sector, the Petroleum Commission continues to attract investments in exploration, promoting undeveloped blocks in both on- and offshore basins. Following the success of the country’s biggest oilfields – Jubilee and TEN – the country is inviting partners to unlock the potential of adjacent blocks. Engagement with global partners and regional firms have already begun to yield positive results. Tullow Oil brought three new wells onstream at the Jubilee South East project in Q1, 2024, and will drill one producer and one injector well at the Jubilee field in 2025. The company is also advancing a 4D seismic survey at both Jubilee and TEN. Additionally, the Ghana National Petroleum Corporation will drill an exploration well in the Voltaian Basin in 2025.
“Ghana’s approach to developing its oil and gas industry must be commended," said NJ Ayuk, Executive Chairman, African Energy Chamber. "The country is not only instituting reforms in tax and policy, but working closely with international operators to strengthen the attractiveness and competitiveness of their investments. Policies such as the Gas Master Plan stand to transform the country from an oil-reliant market into a diverse and integrated economy."
Image: TEMA LNG terminal, Ghana
Diamondback exec calls out Trump as tariff concerns mount for U.S. shale industry
(Bloomberg) – A top executive at Diamondback Energy Inc. called on President Donald Trump’s administration to explain how the global trade war will help shale producers, a rare instance of public pushback from a U.S. oil boss.
“This administration better have a plan @SecretaryWright,” Kaes Van’t Hof, president of Diamondback, said April 6 in a post on X. He added that U.S. shale is “the only industry that actually built itself in the U.S., manufactures in the U.S., grew jobs in the U.S. and improved the trade deficit (and by proxy GDP) in the U.S. over the last decade … smart move.”
A spokesperson for the Energy Department didn’t immediately respond to a request for comment. Van’t Hof declined to comment beyond the X post.
His comments are among the first public statements from an executive in the shale patch since Trump announced additional tariffs on countries around the world. Industry bosses delivered scathing, anonymous, opinions on the administration’s energy agenda in last month’s Federal Reserve Bank of Dallas survey.
West Texas Intermediate, the U.S. oil benchmark, has fallen more than 15% since Thursday to trade near $60 a barrel. That’s well below the $65 threshold that many companies need to profitably drill new wells in Texas and surrounding states, according to the Dallas Fed survey.
Diamondback, which last week closed on its $4.2 billion acquisition of closely held Double Eagle, is the biggest independent oil producer in the Permian Basin of West Texas and New Mexico. Van’t Hof will take over as CEO at Diamondback’s annual meeting this year.
Monday, April 7, 2025
OPEC+ committee reiterates need for oil output quota compliance
(Bloomberg) – Key OPEC+ nations reiterated the need for members to stick to oil output quotas after the group’s surprise decision to speed up an output revival battered crude prices.
The Joint Ministerial Monitoring Committee noted that some OPEC+ members failed to fully observe their limits or deliver extra curbs pledged as compensation for over-producing, according to a statement on the group’s website on Saturday. These nations were told to submit compensation plans by April 15.
Led by Saudi Arabia and Russia, the OPEC+ alliance stunned oil traders last week by announcing it would accelerate plans to revive halted supplies next month, with an increase triple the size originally scheduled. Delegates privately said the shock move was intended to instill better discipline among members like Kazakhstan and Iraq.
See also: OPEC+ shocks oil market with plans to boost output, driving down prices
The decision on Thursday, unveiled just hours after President Donald Trump’s barrage of tariffs sent financial markets into meltdown, compounded losses in crude futures, which tumbled the following day to a four-year low.
The JMMC is next due to meet on May 28, the same day that the OPEC+ alliance is set to hold its next full ministerial meeting. The subset of nations engaged in supply restraints will make a decision on June output on May 5.
Friday, April 4, 2025
OPEC+ shocks market with plans to boost oil supply, driving down prices
(Bloomberg) – For most of this decade, the OPEC+ alliance has been the world’s most stalwart defender of high oil prices. In just a few moments this week, that role reversed dramatically.
In a video conference on Thursday, the coalition of crude producers led by Saudi Arabia and Russia was expected to simply remind errant members to respect their output limits, ahead of rubber stamping its existing plan to gradually raise production.
Instead they delivered a major shock — increasing supply by three times the planned amount in May in what delegates described as a deliberate effort to drive down prices to punish the group’s cheats.
After many months of excess production from Kazakhstan and Iraq, Saudi Energy Minister Prince Abdulaziz bin Salman reached the limit of his patience, delegates said, asking not to be identified because the talks were private. The larger-than-expected May output hike would just be an “aperitif” if those countries didn’t improve their performance, the prince said on the call.
Prince Abdulaziz’s gambit — a marked break from years of urging OPEC+ to remain cautious in adding supplies — illustrates the toll taken on the alliance as its effort to balance global oil markets drags on far longer than initially envisioned. For some observers, it stirs echoes of the price war that briefly erupted between OPEC+’s leaders during the 2020 pandemic.
Crude was already reeling from the onslaught of trade tariffs announced by U.S. President Donald Trump the previous day, and the surprise addition of 411,000 barrels a day by OPEC+ in May turbo-charged the rout. Brent futures sank as much as 7.3%, the most in two years, to below $70 a barrel.
The timing of the announcement by the Organization of the Petroleum Exporting Countries and its allies seemed unlikely to be a coincidence, and group delegates and crude traders alike speculated that Riyadh deliberately sought to maximize the bearish effect.
Astana has infuriated Riyadh by ramping up output at a new project to expand its giant Tengiz oil field, in partnership with international majors like Chevron Corp. Even as the country pledged to conform better with its OPEC+ limits, in February its output was a hefty 300,000 bpd above target.
Iraq, another habitual quota cheat, has reduced output closer in line with its quota in recent months, but has shown little sign of making the compensation cuts it promised to atone for past over-production.
While delegates said they were surprised at the outcome of what was supposed to be a routine conference call, they were supportive of measures to end cheating and everyone backed the proposal from Saudi Arabia and Russia to make a larger supply hike in May.
“This is about coaxing Kazakhstan and Iraq to improve their compliance in a balanced way,” said Bob McNally, president and founder of Rapidan Energy Advisers LLC and a former White House energy official.
Thursday, April 3, 2025
Wednesday, April 2, 2025
Tuesday, April 1, 2025
Monday, March 31, 2025
Friday, March 28, 2025
Thursday, March 27, 2025
Wednesday, March 26, 2025
India’s ONGC to diversify core business in anticipation of oil glut
(Bloomberg) – India’s largest explorer Oil and Natural Gas Corp. is seeking to diversify its portfolio to shield its core business from volatile oil prices, said Arunangshu Sarkar, director for strategy at the state-run giant.
The company’s multi-pronged approach involves entering the refining and petrochemical sectors, trading liquefied natural gas (LNG) and growing its renewable capacity.
According to the International Energy Agency, the world is entering an era of cheaper energy prices, with growing electricity use leading to a surplus of oil and gas. ONGC is among the several oil majors looking to diversify their business strategies as the global economy moves away from fossil fuels.
“Globally, we are heading to a glut in oil supplies which means prices will reduce,” Sarkar said in an interview. “It will be difficult for a company like ONGC to survive in a low oil-price regime and the new businesses provide a hedge for such a scenario.”
While crude prices decline, production costs for the explorer are on the rise, with easily available oil already extracted and depleted fields yielding little fuel, further squeezing profits.
Sarkar, a petroleum engineer, took charge as ONGC’s first director for strategy in September.
The New Delhi-based company is seeking to book 3 million tons a year of regasification capacity on the country’s western coast and is already discussing long-term offtake deals with city gas retailers, Sarkar said. Since benchmark indices are linked to crude, importing cheap gas to be sold in India can help offset lower profits due to oil volatility, he added.
ONGC is also planning to build its first refinery, with a focus on oil-to-chemicals, Sarkar said, declining to give more details as the plan is still at a nascent stage. At a group level, ONGC already has a refining capacity of 1 million bpd, or a fifth of India’s total, through its units Hindustan Petroleum Corp Ltd. and Mangalore Refinery and Petrochemicals Ltd.
Refiners are increasingly turning to petrochemicals as the spread of electric vehicles is projected to dent demand growth for diesel and gasoline.
The third pillar of diversification is clean energy. The company has
set a target to reach 10 gigawatts of renewable capacity by 2030, about
three times more than now. It will soon be seeking bids to build 1
gigawatt of solar and wind power capacity for its captive use, Sarkar
added.
Tullow Oil focuses on Ghana as part of debt reduction strategy
(Bloomberg) – Tullow Oil Plc will pump as much as it can from mature assets in West Africa this year as part of plans to bring debt below $1 billion.
The company has been chipping away at borrowings accumulated during its days as a free-spending wildcatter. Former CEO Rahul Dhir, who left earlier this year, retooled the producer to focus on established assets in Ghana rather than extensive exploration in an effort to shore up finances.
“In the year ahead, our priorities are to progress our refinancing plan” and “optimize our production activities at Jubilee and TEN” in Ghana, Tullow said Tuesday in a statement. Disappointing output from some fields in 2024 weighed on annual profit, which was less than a quarter of average analyst estimates.
Yet investors were encouraged by a $300 million agreement to divest assets in Gabon, announced Monday. Tullow shares jumped on the news and extended gains on Tuesday, climbing as much as 7.6%. The company’s bonds also rose.
“This marks another stage of delivery in management’s plan to reduce net debt towards a target of under $1 billion and refinance its capital structure,” James Hosie, an equity analyst at Shore Capital, said in a note to clients.
Production in 2024 was lower than a year earlier and will continue to slide. Tullow expects to drill two new wells at the Jubilee deposit, starting in May, to curb natural decline.
“We have absolute confidence in the Jubilee field to deliver material cash flows and provide the business with optionality for returns and growth, once our net debt target of below $1 billion is reached,” interim CEO Richard Miller said.
Dhir reduced net debt to $1.45 billion from $2.81 billion during his tenure.
Tuesday, March 25, 2025
Monday, March 24, 2025
Thursday, March 20, 2025
Wednesday, March 19, 2025
Tuesday, March 18, 2025
Trump Says He’s Authorizing Use of Coal for Energy Production
President Donald Trump said on Monday that he was authorizing his administration to use coal-fired power plants for energy production to counter China’s economic advantage.
Trump stated that he would move to authorize his administration “to immediately begin producing energy with BEAUTIFUL, CLEAN COAL,” but did not provide further details.
The move would mark a major reversal in U.S. environmental policy, as the country has shifted away from coal, which was its primary fuel for electricity generation in the 2000s, toward lower-cost alternatives such as natural gas and renewable energy.
Trump stated in his order that “burdensome and ideologically motivated regulations have impeded the development of these resources, limited the generation of reliable and affordable electricity, reduced job creation, and inflicted high energy costs upon our citizens.”
The EPA outlined its planned regulatory rollbacks in a series of statements, targeting rules or suites of rules initially authored by the agency and published during the administrations of Presidents Barack Obama and Joe Biden, which it considers to be the origin of “trillions in regulatory costs.”
The EPA stated that it would reconsider the previous administration’s rules on power plant emissions, commonly referred to as the “Clean Power Plan 2.0.”
It stated that the Supreme Court had struck down a 2015 version of the Clean Power Plan. In that ruling, the court “barred EPA from misusing the Clean Air Act to manipulate Americans’ energy choices and shift the balance of the nation’s electrical fuel mix,” according to the EPA.
Earlier this month, Interior Secretary Doug Burgum suggested that the United States should restart its shuttered coal-fired power plants to meet surging electricity demand.
“I think as part of the national energy emergency which President Trump has declared we’ve got to keep every plant open,” Burgum said in an interview with Bloomberg. “And if there have been units at a coal plant that have been shut down, we need to bring those back on.”
Burgum also stated that the country should keep existing coal-fired power plants operational by easing environmental regulations imposed by previous administrations.
Monday, March 17, 2025
Thursday, March 13, 2025
Wednesday, March 12, 2025
Tuesday, March 11, 2025
African national oil companies (NOCs) partnering with independents to drive E&P
Africa’s national oil companies (NOC) are moving beyond operating as state-representatives by transforming themselves into competitive upstream players. By strengthening their balance-sheets through partial privatization, transferring their regulatory roles to independent entities and acquiring more assets, NOCs are emerging as strong partners for foreign firms.
Boosting production
Major oil producers in Africa are striving to boost production and NOC-IOC collaboration is at the forefront. Libya’s NOC is working with IOCs Repsol, bp, TotalEnergies, ConocoPhillips and more to increase output to two million barrels per day (bpd). In collaboration with the NOC, TotalEnergies has achieved a 20% increase in production at the Waha field; Repsol plans to drill nine new prospects in 2025; while Eni is planning four exploration wells in 2025. Algeria’s Sonatrach will increase hydrocarbon production by 2.5% this year, actively pursuing international partnerships following a revision of its Hydrocarbons Law in 2029. Negotiations are underway with ExxonMobil and Chevron to boost exploration. These efforts reflect a broader trend across the continent, where NOCs are leaning on foreign partnerships to advance oil and gas production.
Advancing gas monetization
Amid a surge in gas monetization, Africa has emerged as a major LNG producer. Collaboration between NOCs and IOCs have been at the forefront of this gas drive, leading to the emergence of new LNG exporters. Senegal’s Petrosen and Mauritania’s SMH worked alongside bp and Kosmos Energy to develop the Greater Tortue Ahmeyim LNG project – situated on the maritime border of the two countries and producing first LNG in January 2025. Mozambique’s ENH is working closely with foreign operators to develop several LNG projects, including TotalEnergies (Mozambique LNG); ExxonMobil (Rovuma LNG) and Eni (Coral South and Coral North). The 3.4 mtpa Coral South FLNG project has been operating since 2022 while ExxonMobil plans to make FID on Rovuma LNG in 2026.
The Tanzania Petroleum Development Corporation is developing the Tanzania LNG project, working with Shell and Equinor to monetize resources in Blocks 1, 2 and 4. While development has been delayed, the operators remain committed to collaboratively bringing the project online. In Angola, which has been an LNG producer since 2013, the NOC Sonangol is working with its New Gas Consortium partners Azule Energy, Cabinda Gulf Oil Company and TotalEnergies to increase LNG production capacity. The partners completed the offshore platform for Angola’s first non-associated gas project in February 2025, with production on track for early-2026.
Unlocking new E&P markets
A slate of discoveries in recent years have opened up new oil and gas plays across the continent. Following an increase in its oil and gas budget from $120 million to $246 million for the 2024/2025 period, the Uganda National Oil Company (UNOC) is driving exploration across underexplored areas in the country. In partnership with TotalEnergies and CNOOC, the company will start production at the Kingfisher and Tilenga oilfields in 2025. UNOC is also advancing exploration in the Moroto-Kyoga basins, with preliminary studies aimed at uncovering new oil fields.
In Namibia, NAMCOR is working with IOCs toward first oil production from the Orange Basin by 2029. Major projects include the Mopane field, which made its third discovery last month, and the Venus field, which targets FID in 2026. The company aims to secure higher stakes in future oil and gas projects – increasing its share from the minimum 10% to between 20-30% - underscoring a commitment to greater participation in field development.
Meanwhile, the South Africa National Petroleum Company (SANPC) – launched in September 2024 – strives to facilitate greater investment in exploration, natural gas monetization and infrastructure development. While major gas deposits were found in the Outeniqua Basin in 2019 and 2020, operational challenges have impacted development. The SANPC seeks to address these challenges through IOC collaboration and foreign investment. The company also strives to unlock the potential of the Orange Basin.
“African NOCs are driving the continent’s next wave of innovative oil and gas developments. By partnering with global operators and strengthening their operational capacity, NOCs are not only driving projects forward but showcasing the competitiveness of African operators,” states Tomás Gerbasio, VP Commercial and Strategic Engagement, African Energy Chamber.
Monday, March 10, 2025
ADNOC looks to purchase U.S. natural gas fields as part of expansion strategy
(Bloomberg) – The United Arab Emirates’ biggest oil company is seeking to buy its first natural gas producing fields in the U.S. to deepen its presence in the country, according to people familiar with the matter.
Abu Dhabi National Oil Co. wants the deals to complement its recent acquisitions of chemical plants and liquefied natural gas export facilities in the U.S., said the people, who asked not to be identified discussing confidential information.
ADNOC CEO Sultan Al Jaber is set to outline the government-owned producer’s investment strategy, including a U.S. focus, during a speech at the CERAWeek by S&P Global energy conference in Houston on Tuesday, according to some of the people. He’ll then visit Washington, DC for meetings related to both his roles at ADNOC as well as his position as minister of industry and advanced technology.
The UAE’s approach is likely to appeal to U.S. President Donald Trump’s drive to attract investment to America and boost energy production. Emirati companies have discussed building data centers in the U.S. and the two countries are cooperating in technology and AI initiatives. Firms from Japan to India have said they’re looking for more energy deals.
It’s not yet certain if ADNOC has a specific acquisition target, or if the company will end up making an offer for an asset. ADNOC declined to comment.
The company’s interest in gas producing assets comes at a time market-watchers are expecting a slowdown in dealmaking in U.S. upstream assets, particularly in the prolific shale industry as some of the best targets have already been snapped up. Still, in the first month of the Trump administration, the appetite for deals was showing some signs of revival.
Buying into gas-producing fields would give Adnoc access to both fuel and feedstock for its chemicals plants and LNG export facilities. It would also benefit from any increases in local gas prices, hedging its exposure as a buyer of the fuel.
Friday, March 7, 2025
Thursday, March 6, 2025
Middle East oil prices drop as OPEC+ decision rattles market
(Bloomberg) – Oil prices in the Middle East tumbled as the prospect of higher supplies from OPEC+ sparked a selloff in the region’s crudes.
The cost of Oman crude on the Gulf Mercantile Exchange slipped below Brent on Tuesday for the first time since late 2024, according to data compiled by Bloomberg. That marks the end of the Middle Eastern grade’s longest run of premiums over the global benchmark since 2023.
OPEC+ jolted the global oil market this week, saying it would proceed with a plan to revive halted production in tranches from April. The decision — which over time may expand its supplies by more than 2 million barrels — ran counter to most analysts’ expectations. The shift helped to drag futures broadly lower, adding to investors’ concerns just as they dealt with escalating trade tensions.
Traders flagged oversupply concerns stemming from the OPEC+ supply plan, as well as from the possibility of a change in Washington’s stance toward tough sanctions on Russia. Meanwhile, sensitive supplies of Iranian and Russian crudes continue to flow to customers in China, albeit with some hurdles.
Key timespreads that gauge the health of the region’s Dubai benchmark also slumped. The difference between the second- and third-month contracts narrowed to just 38 cents on Tuesday, compared with $2.55 in late January, according to data from broker PVM Oil Associates Ltd.
The move indicates cooling concerns about tight supply, and is a sign that the bumper premiums seen in Middle Eastern markets after US sanctions on Russian and Iranian oil earlier this year aren’t being sustained.
At that time, there was a scramble for alternative crudes from the Middle East that ultimately spurred some of the biggest price increases for regional producers in years. That rally didn’t endure, and now those contracts are the most actively traded, compounding recent declines.
Weaker timespreads have weighed on Dubai more than Brent, causing the differential between the London and Middle East marker — known as the EFS — to widen to 84 cents a barrel versus 31 cents last week.
Those moves have forced the window for arbitrage cargoes from Europe
and the US to Asia to “slam shut”, according to Neil Crosby, an analyst
at Sparta Commodities.
Wednesday, March 5, 2025
Tuesday, March 4, 2025
Monday, March 3, 2025
Thursday, February 27, 2025
Trump Axes Chevron's Venezuela Oil License, Citing Lack of Electoral Reforms
By Matt Spetalnick, Marianna Parraga and Timothy Gardner
WASHINGTON (Reuters) -U.S. President Donald Trump on Wednesday said he was reversing a license given to Chevron to operate in Venezuela by his predecessor Joe Biden more than two years ago, accusing President Nicolas Maduro of not making progress on electoral reforms and migrant returns.
Trump did not name Chevron in his comments, but Washington granted Chevron a license to operate in Venezuela's oil sector on November 26, 2022. It was the only license the administration issued for Venezuela that day.
"The U.S. government has made a damaging and inexplicable decision by announcing sanctions against the U.S. company Chevron," Venezuelan Vice President Delcy Rodriguez said in a statement posted on Telegram.
She said "these kinds of failed decisions" had prompted migration out of Venezuela.
The White House did not immediately respond to requests for further detail on Trump's comments.
U.S. Secretary of State Marco Rubio later said on X he will provide foreign policy guidance to terminate all Biden-era oil and gas licenses "that have shamefully bankrolled the illegitimate Maduro regime."
It was not immediately clear which, if any, other companies that would affect, but the U.S. State and Treasury Departments have granted a number of licenses and authoritizations in recent years, including to foreign firms.
Chevron said it was aware of Trump's post and was considering its implications.
Chevron exports about 240,000 barrels per day of crude from its Venezuela operations, over a quarter of the country's entire oil output.
Ending the license means Chevron will no longer be able to export Venezuelan crude. And if Venezuela's state oil company PDVSA exports oil previously exported by Chevron, U.S. refineries will be unable to buy it due to U.S. sanctions.
Since his return to office in January, Trump has repeatedly said the U.S. does not need Venezuelan oil and left open the possibility of revoking Chevron's operating license.
During his first term, Trump pursued a "maximum pressure" sanctions policy against Maduro's government, especially targeting Venezuela's energy business.
After initially easing sanctions to encourage fair and democratic elections, Biden in April reinstated broad oil sanctions, saying Maduro failed to keep his electoral promises. But Biden had left the Chevron license intact, along with U.S. authorizations granted to several other foreign oil companies.
Tax and royalty payments resulting from Chevron's license have provided a steady source of revenue to Maduro's administration since early 2023, a source familiar with Venezuela's oil industry said. The money has lifted Venezuela's economy, especially its oil-and-banking sectors, which expanded last year.
The government take from oil activities covered by all U.S. licenses, to Chevron and a handful of European companies, is estimated between $2.1 billion and $3.2 billion annually, only considering royalties and taxes, said Jose Ignacio Hernandez from consultancy Aurora Macro Strategies.
U.S. Energy Secretary Chris Wright said on Wednesday after Trump's comments that the U.S. is the world's largest oil producer and "small interruptions from other nations" will not affect global supply.
ELECTORAL CONDITIONS 'NOT BEEN MET'
In early February, Trump said Caracas had agreed to receive all Venezuelan migrants in the United States illegally and provide for their transportation back.
That came a day after U.S. envoy Richard Grenell met with Maduro in Caracas and brought six U.S. detainees back.
Trump said in Wednesday's post Maduro had not met "electoral conditions" and that he was not transporting Venezuelans back to the United States at a pace that had been agreed to.
Trump did not detail what he meant by "electoral conditions." Maduro's last two election wins were both disputed by Washington, with Venezuela's opposition saying it won the July 2024 presidential election by a landslide, an assertion backed by the U.S. and other Western countries.
The cancellation of the license proves Trump is on the side of Venezuelans, opposition leader Maria Corina Machado told Trump's son Donald Trump Jr. during an interview on the latter's video and podcast interview show.
"What you just mentioned is proof for me that President Trump is on the side of the Venezuelan people, of democracy, and prosperity of the U.S. and for Venezuela as well," Machado said, adding the question from Trump Jr. was the first she had heard of his father's decision. "This is exactly the path ahead."
The oil concession agreement would be terminated as of the March 1 option to renew, Trump said.
It was not immediately clear what would happen with cargoes of Venezuelan crude currently navigating to U.S. ports or about to depart from Venezuela through the end of the month.
Maduro and his government have always rejected sanctions by the United States and others, saying they are illegitimate measures that amount to an "economic war" designed to cripple Venezuela.
Maduro and his allies have cheered what they say is the country's resilience despite the measures, though they have historically blamed some economic hardships and shortages on sanctions.
When the license was first issued, Chevron was owed about $3 billion by Venezuela. According to the company's debt recovery plan, explained by sources, by the end of 2024 it should have recouped some $1.7 billion as oil output approached an average of 200,000 barrels per day as expected.
Chevron's automatically renewing license allowed it to expand crude output at joint ventures with PDVSA and send some 240,000 bpd to its own refineries and other customers.
Chevron said earlier in February it will lay off up to 20% of its global staff by the end of 2026 as part of an effort to cut costs and simplify the business. Chevron told its employees the company was falling behind competitors and struggled to quickly make decisions.
(Reporting by Matt Spetalnick and Timothy Gardner in Washington and Marianna Parraga in Houston; additional reporting by Sheila Dang in Houston, Jasper Ward and Daphne Psaledakis in Washington, Julia Symmes Cobb in Bogota and Shivani Tanna in Bangalore; Editing by Rosalba O'Brien, Chris Reese, Lincoln Feast and Neil Fullick)
Copyright 2025 Thomson Reuters.
Mystery in the Mediterranean: the Seajewel sabotage probe
https://decode39.com/10027/mystery-in-the-mediterranean-the-seajewel-sabotage-probe/
Sabotage at sea. The investigation into the explosion of the Maltese-flagged tanker Seajewel—occurring two weeks ago off the coast of Savona, in the west part of the northern Italian region of Liguria—has grown increasingly complex.
- Authorities are now scrutinising the origin of the crude oil it was transporting amid contradictory declarations and clues suggesting a network of international smuggling and sabotage.
Uncertain origins. Initial enquiries by the Genoa prosecutor’s office opened a file based on the hypothesis of a shipwreck aggravated by terrorism.
- As the tanker’s commander has claimed that the crude oil is of Algerian origin, ongoing analyses aim to determine whether the material might instead originate from other regions, particularly Russia.
- A confirmed Russian origin would amount to a clear breach of the embargo imposed after the Ukraine conflict outbreak, carrying potential penalties of up to six years’ imprisonment.
Explosive evidence. Investigators are delving into the type of explosive devices used in the attack.
- Fragments of two ordnances discovered along the ship’s keel have been sent to the scientific unit in Rome for composition analysis.
- Preliminary findings by bomb experts and specialised divers indicate that the first explosion dislodged the second device, limiting structural damage to the vessel.
A ghost from the past. Further complicating matters is the striking similarity with the attack on the tanker Grace Ferrum.
- This vessel, which departed from Ust-Luga in Russia on 12 January and was later attacked in Libyan waters, suffered an assault using magnetic bombs affixed to its hull—an identical method to that seen on the Seajewel.
- The Grace Ferrum incident is viewed as part of a broader series of strikes against ships allegedly linked to Russia’s so-called “shadow fleet,” which is reportedly engaged in smuggling crude oil from Moscow into Europe.
New developments. As the investigation unfolds, investigators are analysing surveillance footage to trace the movements of the suspected commando behind the attack.
- In the meantime, the Seajewel has departed Liguria, heading for repairs to the Greek port of Piraeus, while authorities maintain strict confidentiality on the ongoing inquiry.
- Adding another layer of intrigue, Seajewel—operated by the Greek company Thenamaris—had already been placed on the Ukrainian blacklist for suspected illicit trafficking of Russian crude.
- Chemical analyses of the oil, the reconstruction of the vessel’s route and a thorough review of its certificates of origin and onboard documentation are expected to shed further light on potential criminal liabilities, including orchestrated sabotage by groups opposing the embargo.
bp announces it will pivot back to oil and gas, cut renewables spending
(Bloomberg) – In a highly anticipated presentation, bp Chief Executive Officer Murray Auchincloss reversed a plan to shrink oil and gas production and cut investments in low-carbon energy, but also slashed the quarterly share buyback — undermining what has become a key plank of the petroleum industry’s pitch to investors.
The changes announced on Wednesday were significant, representing a major break from five years in which bp was the oil industry’s most ardent pursuer of net zero emissions and the transition to clean energy, which executives acknowledged went too far too fast. Nevertheless, the cut in share buybacks to between $750 million and $1 billion a quarter, from $1.75 billion previously, dimmed the appeal to investors.
bp has been under intense pressure since Elliott built up a stake worth almost $5 billion. The next move from the activist investor, which is renowned for its aggressive tactics and has been demanding big change including a broader exit from low-carbon energy, will be determined by whether Auchincloss has gone far enough.
If Elliott is unsatisfied, it may push for board and management changes, people familiar with the matter told Bloomberg earlier this week. Chairman Helge Lund, who was a key backer of the company’s now-criticized net zero strategy, could come under particular pressure.
Throughout a day of detailed presentations, Auchincloss voiced his confidence about the plan even as the slide in the company’s stock deepened.
“We’ve put together something that’s very compelling, which is a reset strategy focused on growing the upstream” while cutting spending in other areas to help strengthen bp's balance sheet, Auchincloss said in an interview. “I think in the long run investors will love this.“
bp will increase investment into oil and gas to about $10 billion a year, with the intention of growing production to 2.3 million to 2.5 million barrels of oil equivalent a day (boed) by 2030. Its previous target was for a reduction in output of 25% at the end of the decade, compared with 2019 levels.
The company will reduce annual investment into low-carbon energy to $1.5 billion to $2 billion, about $5 billion lower than its previous guidance.
“It does feel like bp has heard the market’s message on the need for a
fundamental reset,” Kim Fustier, HSBC Holdings Plc’s head of European
oil and gas research, said in a note. “bp is indeed going back to oil
and gas and tightening up investment discipline,” but exceeding the high
level of expectations before the presentation “was going to be
difficult,” she said.
Wednesday, February 26, 2025
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