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Panama Weighs Another Canal Expansion at Centennial Mark

A century after the U.S. steamship Ancon first sailed through the Panama Canal, a $5.3 billion expansion delayed by bickering contractors and angry workers is nearing completion. The problem is it might not be big enough. With the expansion 16 months behind schedule, canal administrator Jorge Quijano said officials are studying whether to dig a fourth set of locks to handle a growing fleet of super-sized ships. Those include the 400-meter-long “Triple E” vessels capable of carrying more than 18,000 containers, four times more than current ships passing through the canal. “We are always analyzing the market and as soon as we can economically justify it we will begin,” said Manuel Benitez, deputy administrator of the Panama Canal Authority, adding that he thinks the current expansion is sufficient for now. “If that changes and the demand exists we are ready to begin.” Panamanian officials today will celebrate the anniversary […]

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Brazil considers LNG options with Rosneft

Brazilian energy company HRT said Friday it was working with Russian energy company Rosneft on a work plan for the monetization of liquefied natural gas. Startup HRT in July signed memorandum of understanding with the Brazilian subsidiary of Rosneft and Brazilian state-owned energy company Petróleo Brasileiro, known also as Petrobras, for the monetization of gas in the Solimoes basin in the Amazonian jungle. HRT in its latest earnings report said the parties are working on ways to make LNG envisioned under the agreement a reality. "In the coming months, HRT, Rosneft and Petrobras will submit a work plan for the gas monetization project that will establish the steps and responsibilities, prioritizing the options in the scope of natural gas converted to LNG and the electric power generation, both of which are critical inputs for the development of the region and the country," HRT said in its report. The Brazilian […]

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Drought conditions in key hydropower region prompt LNG buying in Brazil

Drought conditions in Brazil’s Southeast-Central West region are putting pressure on state-owned oil and gas company Petrobras to seek out prompt and near-term LNG cargoes to supplement the country’s power supply, sources said Monday. Petrobras was recently heard in the market lifting an FOB cargo from Qatar for an undisclosed price. The 157,000 cubic meter Wilpride, currently under Petrobras’ control, loaded the cargo Friday from the port of Ras Laffan, Qatar. The vessel is currently in the Gulf of Oman and is expected to arrive at the Bay of All Saints terminal in Salvador, Bahia, by late August. Petrobras has also been heard in the market looking for cargoes for FOB lifting or delivery in September, October and possibly November, ahead of the rainy season which runs from December through April. The recent push to shore up the country’s power supply comes as reservoir levels in Brazil’s Southeast-Central West […]

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Venezuelan Energy Company Investigated in U.S.

Federal and New York City prosecutors have opened preliminary investigations into a Venezuelan company that became one of that country’s leading builders of power plants during the administration of President Hugo Chávez , as well as into a Missouri-based company which played a key role in its success, people familiar with the matter say. The U.S. Department of Justice and the Manhattan District Attorneys’ office are probing Derwick Associates, a Venezuelan company that was awarded hundreds of millions of dollars in contracts in little more than a year to build power plants in Venezuela shortly after the country’s power grid began to sputter in 2009, the people familiar with the matter said. ProEnergy Services, a Sedalia, Mo.-based engineering, procurement and construction company which sold dozens of turbines to Derwick and helped build the plants, is also under investigation, these people say. The probes are in their initial phases, […]

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Petrobras Profit Misses Estimates as Crude Exports Slide

Petroleo Brasileiro SA (PETR4) , the biggest oil producer in deep waters, posted an unexpected profit decline in the second quarter after its fuel imports surged and crude exports fell. Net income fell 20 percent to 4.96 billion reais ($2.2 billion), or 0.38 reais a share, from 6.2 billion reais, or 48 centavos, a year earlier, the Rio de Janeiro-based company said yesterday in a statement. That trailed the 55-centavo average of 12 analysts’ estimates compiled by Bloomberg, making this the third time in four quarters that Petrobras missed forecasts. Rising Brazilian demand for gasoline and diesel that Petrobras sells at a discount relative to international prices is leading the state-run producer to export less crude and increase refinery output. It cut sales to overseas markets by 14 percent from a year earlier, while the refining boost wasn’t enough to prevent a 56 percent surge in fuel imports. The […]

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Petrobras's New Oil Stems Decline

Petrobras’ oil production from frontier fields offshore is soaring. Pictured, a platform prepares for its first day working a ‘pre-salt’ field in 2010. Associated Press RIO DE JANEIRO—When Brazil’s state-run oil company Petroleo Brasileiro SA disclosed its biggest-ever oil find, in 2007, then-president Luiz Inácio Lula da Silva quipped that the discovery proved that God is Brazilian. New production figures are making believers out of many in the industry. Output from the "pre-salt" fields has passed 500,000 barrels of oil a day, nearly triple that of 2012, and now accounts for nearly a quarter of the company’s total production of two million barrels a day. It is a quick ramp-up for Petrobras, and is taking place in one of the most challenging oil patches in the world. The deposits lie nearly 200 miles off Brazil’s southeastern coast, buried deep below the sea floor under a thick layer of salt, […]

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Petrobras’s New Oil Stems Decline

Petrobras’ oil production from frontier fields offshore is soaring. Pictured, a platform prepares for its first day working a ‘pre-salt’ field in 2010. Associated Press RIO DE JANEIRO—When Brazil’s state-run oil company Petroleo Brasileiro SA disclosed its biggest-ever oil find, in 2007, then-president Luiz Inácio Lula da Silva quipped that the discovery proved that God is Brazilian. New production figures are making believers out of many in the industry. Output from the "pre-salt" fields has passed 500,000 barrels of oil a day, nearly triple that of 2012, and now accounts for nearly a quarter of the company’s total production of two million barrels a day. It is a quick ramp-up for Petrobras, and is taking place in one of the most challenging oil patches in the world. The deposits lie nearly 200 miles off Brazil’s southeastern coast, buried deep below the sea floor under a thick layer of salt, […]

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Venezuela Says Citgo Assets Worth More Than $10 Billion

Petroleos de Venezuela SA , the Latin American nation’s state-owned crude producer, said the U.S. oil refining and marketing assets it’s seeking to sell are worth more than $10 billion. “Their value is much, much more,” Rafael Ramirez , president of the oil producer known as PDVSA, told reporters yesterday. He said the company is receiving offers for assets of Houston-based Citgo Petroleum Corp., without providing details on the value of the bids. Citgo owns three refineries capable of handling about 749,000 barrels a day in Louisiana , Texas and Illinois . It also operates the sixth-largest U.S. retail gasoline chain through about 5,900 branded stations, according to the Arlington, Virginia-based National Association of Convenience Stores. Argus Media reported July 24 that the government has received offers in the range of $10 billion to $15 billion for the assets. “We are not a refining company, we’re an oil-producing company,” […]

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Venezuelans struggle with shortages

o A genie appears from a lamp in the hands of an astonished Venezuelan boy to declare: ”You can ask for anything – except toilet paper!” The world’s highest inflation and shortages of basics from milk to toilet roll are really no laughing matter for Venezuelans, but they find solace in a thriving comedy scene lampooning the governance behind the economic strife. Through cartoons like the genie, stand-up comedy, and online satire, humour has become a prominent and poignant form of criticism as mainstream media exercise more self-censorship. ”Despite oil at $100 a barrel, Venezuela is living through the worst economic crisis of its history … It’s the Midas touch in reverse,” stand-up comic Laureano Marquez told Reuters before entertaining a 600-strong audience at a Caracas theatre. His 90-minute routine delivered a witty critique of problems from food queues and medicine shortages, to government corruption and skewed courts. […]

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Rosneft, PDVSA sign agreements for offshore projects

OAO Rosneft and Petroleos de Venezuela SA (PDVSA) have signed a cooperation agreement for offshore projects in the Rio-Caribe and Mejillones blocks, the second stage of the Mariscal Sucre gas project ( OGJ Online, July 3, 2013 ). The companies intend to continue negotiations on key technical requirements and commercial and legal terms for establishment of joint ventures to develop Rio-Caribe and Mejillones. The parties also agreed to set up joint ventures for engineering, construction, and well servicing, and held negotiations on LNG plant construction. The signings took place during a visit to Caracas by Rosneft Pres. Igor Sechin. Rosneft and PDVSA have five joint oil production projects in Venezuela: Carabobo-2 and 4, Junin-6, PetroMonagas, Boqueron, and Petroperija.

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Cash-Poor Venezuela Weighs Sale of Citgo

Venezuela, strapped for cash at home and staring down costly litigation overseas, is considering a deal for its U.S.-based refinery company Citgo Petroleum Corp. as well as a stake in a refinery run with Exxon Mobil Corp. , according to a Citgo document and people familiar with the matter. People close to Petroleos de Venezuela SA, or PdVSA, say the state-run oil giant is in the early stages of considering a deal for Houston-based Citgo, which operates three refineries. It is separately shopping its 50% stake in the Chalmette refinery in Louisiana, a process that is further advanced, they said. A July 15 bond prospectus for Citgo states that PdVSA "is currently seeking to monetize its ownership interest in us." A spokesman for PdVSA said he had no information on any potential asset sales. Exxon also declined to comment. PdVSA, the principal source of hard currency in Venezuela, is […]

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Venezuela could tap Chinese market by selling Citgo

Selling off U.S. refiner Citgo would free up export volumes for Venezuela to start directing oil to the Chinese market, Energy Ministry officials said. The Venezuelan Energy Ministry said it’s considering separate offers for Citgo from Deutsche Bank, Goldman Sachs and JP Morgan. Sources inside the ministry told Argus Media offers range from $10 billion to $15 billion. Combined refinery output from Citgo is 757,000 barrels per day, with most of that centered at its Lake Charles facility in Louisiana. Argus reported Thursday the sale of Citgo would free up exports the state-owned oil and gas company known as PDVSA could direct toward China. Both sides have agreements to increase exports by more than 60 percent to 1 million barrels of oil per day by 2016. Venezuela is the No. 4 oil exporter to the United States, behind Canada, Saudi Arabia and Mexico, respectively. For the week ending July […]

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Production Dries Up Amid Currency Woes and a Scramble for Parts

This car-crazed country’s auto industry, once the third largest in South America, is seizing up as manufacturers struggle to produce a few vehicles a day. Car makers, including global giants like Ford Motor Co. , Fiat Chrysler Automobiles NV, General Motors Co. and Toyota Motor Corp. , have cut output by more than 80% in the first six months of the year compared with a year earlier because of a lack of dollars to pay parts suppliers, according to data compiled by the Automotive Chamber of Venezuela, which represents car makers. "This is the first time I have ever seen things this bad," said 61-year-old Antonio Lopez, a Ford worker who recently prepared a sedan for painting at the auto maker’s factory […]

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Brazil, China Sign Power-Grid, Plane Deals

China and Brazil signed a number of deals on Thursday, ranging from jet sales to power-grid investments, at the end of a summit meant to showcase a bigger global role for emerging economies. The agreements come as Chinese President Xi Jinping wraps up a visit to Brazil for a meeting of the Brics nations, comprising Brazil, Russia, India, China and South Africa. With China’s growing influence in Latin America, Mr. Xi’s presence far outweighed that of the other visiting leaders, most of whom left earlier in the week. In one of the deals, Brazilian plane maker Embraer SA clinched an order to sell 60 regional airplanes to Chinese companies, totaling $3.2 billion at list price. The agreement marks a major advance in Embraer’s China business—a market it has been cultivating for years. Not too long ago, Brazil and China had virtually no trade between them. But in the last […]

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Putin vows to help develop offshore Cuba

Russian President Vladimir Putin said at the conclusion of a regional visit his government would help Cuba’s state oil company develop offshore reserves. Putin met in Havana with Cuban President Raul Castro during a tour of Latin American countries. Putin said Russian oil company Rosneft would help its counterparts at state-owned Cubapetroleo develop offshore Cuban reserves. "Developing new blocks on Cuba’s offshore shelf is (expected) in the very near future," the Russian president said Sunday. Cuba has limited proven reserves of its own and relies on imports from Latin American countries to meet its energy demands. Cuba had weighed joint partnerships with its Russian counterparts as recently as 2012. Cuba aims to cut the amount of oil it imports from Venezuela through development of its own offshore reserves. The U.S. Energy Information Administration estimates that, as of 2009, Cuba had less than 1 billion barrels of oil reserves.

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Premier’s CEO Seeks to Top Oil Target, Get Falklands Partner

Premier Oil Plc (PMO) ’s newly appointed Chief Executive Officer Tony Durrant has three immediate priorities to consolidate a share-price gain of more than 20 percent since he took the job this year. He plans to bring onstream the $1.4 billion Solan field located west of Shetland before the end of the year, find a partner to share a $5 billion investment to develop the Sea Lion project off the Falklands, and exceed an oil-production target. Durrant, who was promoted to the top job at the London-based explorer on June 25 after being chief financial officer for about nine years, also aims to double cash flow within five years to about $2 billion a year. “We have to continue to tick the boxes on the things we’ve been doing, continue to restore credibility, keep the production up, beat the guidance,” the CEO said in his first interview since taking […]

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Petrobras: Brazilian oil output up

Brazilian energy company Petrobras said its oil production for May was up 2.2 percent to 1.98 million barrels per day when compared with the previous month. Petrobras said it credited May’s production increase to the launch of operations at four new platforms in the offshore Campos Basin. In the Campos and Santos basins alone, Petrobras said oil production increased 8.8 percent from May to 447,000 bpd, a monthly record. Brazil ranks second behind Venezuela in proven oil reserves in South America. Offshore production is complicated because much of the oil reserves lie beneath a thick layer of salt. Petrobras , formally known as Petroleo Brasileiro, has struggled with production levels in the past, but attributed the declines to scheduled maintenance at its offshore fields. The company in a statement Tuesday said new production systems are expected to enter into service this year. A four-year business management plan envisions a […]

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A.P. Møller-Maersk Takes $1.7 Billion Impairment on Brazilian Assets

The oil unit of Danish conglomerate A.P. Møller-Maersk A/S will book a $1.7 billion impairment on its Brazilian assets as it changes strategy in the region, it said Tuesday. However, the company’s full-year guidance remains unchanged with underlying profit of about $4 billion and a group-wide result significantly above last year. Maersk Oil said it would no longer pursue growth for its business in Brazil and as a result has sold its ownership share in the Polvo field to the operator. The company bought stakes in three fields in Brazil for $2.4 billion in July 2011, but decided to take an impairment on them following appraisal drillings that came out at the lower end of expectations as well as increased development costs and a subdued oil price. It is thought that the operating partners in the remaining two fields will be able to present commercially viable development plans, the […]

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PDVSA Profit Surges as Lower Spending Counters Oil Slide

Petroleos de Venezuela SA ’s annual net income rose more than three-fold as the state-owned oil producer spent less on social programs, reduced costs after currency devaluation and sold assets. Profit rose to $15.8 billion last year from $4.3 billion in 2012, according to a bond offering circular dated May 14, a copy of which was obtained by Bloomberg. So-called comprehensive net income was $12.9 billion, up from $5.1 billion. Spending on social projects declined to $13 billion from $17.3 billion in 2012. Ousted Planning Minister Jorge Giordani, who was also removed from PDVSA’s board this month, said in a June 18 letter that the company had started to show “signs of independence” under President Nicolas Maduro, derailing the long-term development goals of former President Hugo Chavez. Venezuela devalued the bolivar by 32 percent in February, 2013, taking the primary official rate to 6.3 bolivars per dollar. The country […]

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PDVSA sells four fuel oil cargoes to PetroChina for June: source

Venezuela’s PDVSA sold three cargoes of intermediate fuel oil with 380 CST and one 3% sulfur fuel oil cargo to PetroChina for June, a source familiar with PDVSA’s operations said Friday. The first intermediate fuel oil cargo is loading June 13-15 on the tanker Newton, destined for China. The second cargo is loading June 19-21 on the tanker Maxim, also with China as its destination, and the third is loading June 28-30 on an unknown tanker for delivery to Singapore. The 3%S fuel oil cargo is scheduled to load June 26-28 on an unknown tanker and is also being delivered to Singapore, the source said. Article continues below… Oilgram Price Report Oilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical […]

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American Airlines cutting flights to Venezuela

American Airlines said Tuesday that it will cut nearly 80 percent of its flights to Venezuela in a dispute over revenue being held by the South American country. American said that beginning July 2 it will operate 10 flights per week instead of the current 48. And it will only fly to Venezuela from Miami, scrapping flights from New York, Dallas and San Juan, Puerto Rico. The airline says Venezuela is holding on to at least $750 million in revenue that American wants to bring back to the U.S. Other airlines are locked in similar disputes. The International Air Transport Association, a trade group for major world airlines, said this month that Venezuela is holding $4 billion in airline money because of problems with the country’s currency-control system. Air Canada and Italy’s Alitalia have suspended all flights to Caracas and Panama’s Copa has reduced […]

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Eni nabs deal in giant Venezuelan gas field

Italian energy company Eni said it signed an agreement to help develop the Perla gas field in Venezeula, one of the largest offshore finds in recent history. Eni CEO Claudio Descalzi met in Caracas with Venezuelan Energy Minister Rafael Ramiriz and Antonio Brufau , the head of Spanish energy company Repsol, to discuss exploiting the Perla field. Billed as one of the largest gas discoveries in the world, Eni said the Perla field off the coast of Venezuela holds an estimated 17 trillion cubic feet of natural gas. It’s situated about 30 miles offshore in the Cardon IV reserve area, which is operated in part through a joint venture between Eni and Repsol. "These agreements will grant Eni access to Perla’s liquids reserves," the Italian company said in a statement Wednesday. The trilateral agreement envisions a new mixed enterprise controlled by Venezuelan state-owned energy company Petroleos […]

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Venezuela Sacrifices Drinking Water to Pay Bondholders

At a time when Venezuela ’s record $25 billion in arrears to importers has its citizens waiting hours in line to buy drinking water and crossing borders in search of medicine, President Nicolas Maduro is using the nation’s dwindling supply of dollars to enrich bondholders. Venezuela, which imports just about everything, and its state oil producer have paid $2.8 billion in interest to overseas creditors this year, according to Barclays Plc. Including debt principal, bondholder outlays will balloon to almost $10 billion by year-end, the London-based firm estimates. By putting off the local companies responsible for supplying everything from diapers to cancer medications, Maduro can preserve access to debt markets and protect oil shipments that would be vulnerable to bondholder seizure, said Alejandro Arreaza, an analyst at Barclays. Even if that means fanning the world’s fastest inflation and inflaming protests over shortages that have left at least 42 people […]

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Russia eyes investments in Argentina’s energy sector

Russian Foreign Minister said Wednesday he was interested in encouraging more investments in the Argentine energy sector. Lavrov met in Moscow with Argentinean Foreign Minister Hector Timerman to discuss prospects for future energy cooperation as well as Argentina’s bid to join Brazil, Russia, India, China and South Africa in the five-member economic association dubbed BRICS. Lavrov said the outlook for Russian investments in the Argentinean energy sector was strong. "We aren’t just interested in ways to diversify our trade relations but actually want to focus on investment," he said . Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of the country’s YPF energy company. Russian energy companies have a presence in Venezuela and Russian energy company Gazprom is exploring for natural gas in that country as part of a Russian consortium. Both sides have focused on development the Vaca Muerta shale site […]

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Russia eyes investments in Argentina's energy sector

Russian Foreign Minister said Wednesday he was interested in encouraging more investments in the Argentine energy sector. Lavrov met in Moscow with Argentinean Foreign Minister Hector Timerman to discuss prospects for future energy cooperation as well as Argentina’s bid to join Brazil, Russia, India, China and South Africa in the five-member economic association dubbed BRICS. Lavrov said the outlook for Russian investments in the Argentinean energy sector was strong. "We aren’t just interested in ways to diversify our trade relations but actually want to focus on investment," he said . Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of the country’s YPF energy company. Russian energy companies have a presence in Venezuela and Russian energy company Gazprom is exploring for natural gas in that country as part of a Russian consortium. Both sides have focused on development the Vaca Muerta shale site […]

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U.S. House Votes for Venezuela Sanctions to Punish Maduro

U.S. House lawmakers voted to require sanctions against Venezuelan officials involved in a crackdown against protesters and opposition leaders in that country. The measure passed by voice vote yesterday in Washington . The legislation is intended to “hold these human rights violators accountable,” said bill sponsor Representative Ileana Ros-Lehtinen, a Florida Republican. “The first step in doing so is hitting them in their pocketbooks and denying them entry into the United States .” Venezuela has cracked down on protests that started in February over the world’s fastest inflation, crime and shortages of staples such as food and toilet paper. At least 42 people have been killed in the demonstrations. Amnesty International said April 1 it had received dozens of accounts of torture allegedly carried out by security forces since the protests began. The U.S. State Department has so far resisted calls from Congress for sanctions against Venezuelan President Nicolas […]

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Ecuador to Sign $7B Oil-Refinery Financing Deal With China

After about three years of negotiations, the government of Ecuador is preparing to sign a financing deal with China, valued at about $7 billion, to finance a new oil refinery known as the Refineria del Pacifico, an official said. The $10 billion refinery will process 200,000 barrels of crude oil a day. Thirty percent of the funds needed will come from the project’s partners and the remaining 70% will be financed by a group of Chinese banks headed by the Industrial & Commercial Bank of China Ltd. 601398.SH +0.57% An official close to the deal, who asked not to be named, said Friday that the government of Ecuador will sign the financing deal, the first tranche of which will consist of about $2.5 billion and will be disbursed soon. The official said a high-level delegation of officials from China have been finalizing details in Quito, and President Rafael Correa […]

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Repsol leaves Argentina behind

MADRID, May 23 (UPI) –Spanish oil company Repsol said Friday it sold off its stake in Argentina’s YPF and the bonds it received from the nationalization of the state energy company. Argentine President Cristina Fernandez de Kirchner signed legislation in 2012 to seize the YPF shares held by the Spanish energy company Repsol said Friday it completed the sale of its assets in Argentina to JP Morgan Securities including the bonds it received as compensation for the expropriation of its 51 percent stake in YPF. "From the sale of the entire holding of Argentinean bonds, Repsol has obtained a total $4.99 billion in compensation for the expropriation," Repsol said in a statement . "This extinguishes the $5 billion debt recognized by Argentina." Repsol’s board of directors rejected a compensation offer made in June by the Argentine government. That deal would have given Repsol drilling rights to Argentina’s vast Vaca […]

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Ecuador to Sign Oil-Refinery Financing Deal With China

After about three years of negotiations, the government of Ecuador is preparing to sign a financing deal with China, valued at about $7 billion, to finance a new oil refinery known as the Refineria del Pacifico, an official said. The $10 billion refinery will process 200,000 barrels of crude oil a day. Thirty percent of the funds needed will come from the project’s partners and the remaining 70% will be financed by a group of Chinese banks headed by the Ltd. An official close to the deal, who asked not to be named, said Friday that the government of Ecuador will sign the financing deal, the first tranche of which will consist of about $2.5 billion and will be disbursed soon. The official said a high-level delegation of officials from China have been finalizing details in Quito, and President Rafael Correa will announce the deal Saturday during his […]

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Exxon finds oil, gas in Argentina’s shale

BUENOS AIRES, May 22 (UPI) –U.S. energy company Exxon Mobil said its affiliate in Argentina discovered oil and natural gas in the Vaca Muerta shale play in the country’s Neuquen province. ExxonMobil Exploration Argentina, alongside its regional partner, said it was carrying out additional analysis at the Bajo del Choique X-2 well after confirming an oil and gas discovery. Appraisal wells will need to be drilled before Exxon makes a commercial decision on the area, but the company expressed optimism about the potential. "Not all shales are alike, so our first Exxon Mobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquen province holds great promise as a liquids-rich unconventional resource for Argentina," Stephen Greenlee, president of Exxon Mobil Exploration Co. said in a statement Wednesday. The U.S. Energy Department’s Energy Information Administration estimates Argentina has 774 trillion cubic […]

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Exxon finds oil, gas in Argentina's shale

BUENOS AIRES, May 22 (UPI) –U.S. energy company Exxon Mobil said its affiliate in Argentina discovered oil and natural gas in the Vaca Muerta shale play in the country’s Neuquen province. ExxonMobil Exploration Argentina, alongside its regional partner, said it was carrying out additional analysis at the Bajo del Choique X-2 well after confirming an oil and gas discovery. Appraisal wells will need to be drilled before Exxon makes a commercial decision on the area, but the company expressed optimism about the potential. "Not all shales are alike, so our first Exxon Mobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquen province holds great promise as a liquids-rich unconventional resource for Argentina," Stephen Greenlee, president of Exxon Mobil Exploration Co. said in a statement Wednesday. The U.S. Energy Department’s Energy Information Administration estimates Argentina has 774 trillion cubic […]

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Petrobras sets daily production record in Brazil’s offshore presalt

Petroleo Brasileiro SA (Petrobras) has surpassed 470,000 b/d in the presalt layer of the Santos and Campos basins offshore Brazil, a new daily production record according to the company. The milestone was reached with production from 24 wells, including 7-LL-22D-RJS, which was brought on stream on May 9 and is now contributing 31,000 b/d. Petrobras attributes a portion of its success in the Santos and Campos presalt to the use of a buoyancy supported riser (BSR) that connects 7-LL-22D-RJS to the Cidade de Paraty floating production, storage, and offloading vessel in Lula field. This ascending production pipeline is suspended from a submerged buoy and has led to above-average production from the new well and two other wells that attach to the Cidade de Sao Paulo FPSO via BSRs in Sapinhoa field, the company said. Petrobras expects to connect several new wells to both FPSOs with BSRs by this year’s […]

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Argentine Provinces Said to Unite Against YPF License Bid

The three provinces holding Argentina’s largest shale oil and gas deposits will jointly challenge a push by federally owned YPF SA (YPF) to take control of the auction and renewal of licenses, three officials said. Jorge Sapag, Francisco Perez and Martin Buzzi — governors of Neuquen, Mendoza and Chubut, respectively — met in Buenos Aires on May 13 and agreed to impel their congressional representatives to oppose any move to federalize licensing processes, the provincial officials briefed on the matter said. They asked not to be identified because the talks were private. The three governors weren’t available to comment, their assistants said by telephone. Alejandro Di Lazzaro, a YPF spokesman in Buenos Aires, declined to comment. The fight underscores political tensions derived from unclear rules governing Argentina’s nascent shale boom. For prospective license holders, a single federal system would remove the need to negotiate with two levels of government. […]

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Venezuela Arrests 243 in Raids on Antigovernment Protest Camps

Security forces arrested 243 people in Caracas on Thursday as they dismantled four protest camps set up in the Venezuelan capital by demonstrators opposed to the government of President Nicolás Maduro, and a policeman was fatally shot in clashes that followed, officials said. In Washington, senators condemned the mass arrests during a hearing of the Foreign Relations Committee on human rights violations in Venezuela . The raids broke a period of relative calm in Caracas, where the intensity of the protests had cooled significantly. After the camps were overtaken, groups of people formed barricades and burned trash in the streets. Soldiers and police fired tear gas and plastic buckshot. Officials later said that an officer had been shot and killed.. According to the interior and justice minister, Miguel Rodríguez Torres, National Guard troops and the National Police staged the 3 a.m. raids on the camps, which were located in […]

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Ecuador Says No National Referendum on New Amazon Oil Development

Ecuador’s national electoral council said Tuesday that opponents of new oil development in a national park in the Amazon rain forest failed to submit enough valid signatures to force a nationwide referendum. The electoral council said that only 359,761 signatures of the 756,000 that were submitted by a coalition opposed to the oil activity passed the validation process. The law required them to collect 584,000 signatures, which is equivalent to 5% of the electorate, to force a referendum on the issue. The announcement appears to be a victory for President Rafael Correa and his plans to drill for oil in an area known as the Ishpingo-Tambococha-Tiputini, or the ITT block. A portion of the block is located in the Yasuni national park, which is considered by scientists to be one of the most biologically diverse spots in the world. The president of the electoral council, Domingo […]

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Marxist Rebel Bombings Send Colombia Oil Output to 20-Month Low

Colombian crude production sank to a 20-month low in April as Marxist rebel attacks and community protests curbed output amid continuing peace talks in Havana . Oil production last month averaged 935,000 barrels per day, according to a government statement yesterday, the lowest since August 2012. Output slumped as repairs to the country’s second-largest pipeline following a March 25 rebel attack were prevented by the indigenous U’wa group. Paralysis at the Cano Limon-Covenas duct, which takes oil from eastern Colombia to the Caribbean coast, forced producers including state-controlled Ecopetrol SA (ECOPETL) to restrict output as storage ran out. Oil is Colombia’s biggest export and a key source of revenue for the government. There were 33 pipeline attacks in the first quarter of this year and a total of 259 in 2013, as Colombia’s largest rebel group, the Revolutionary Armed Forces of Colombia, or FARC, seeks to strengthen its hand […]

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Colombia Warns of Emergency Decree for Pipeline Standoff

A monthlong standoff with a forest-dwelling indigenous group is threatening Colombian oil exports and may force the government to declare a national emergency, Mines and Energy Minister Amylkar Acosta said. Members of Colombia ’s U’wa group are preventing repairs to the Cano Limon-Covenas pipeline following an attack by Marxist rebels March 25, cutting exports by more than 2.5 million barrels, Acosta said. The country’s second biggest pipeline is controlled by state-run Ecopetrol SA. “This almost merits a declaration of emergency by the national government,” Acosta told local radio station Caracol today. “There are reasons of state, and there’s a public interest that takes precedence.” A emergency declaration would give Colombian President Juan Manuel Santos powers to rule by decree for 30 days and potentially overrule standard protocol when dealing with local groups. Royalties from oil, Colombia’s biggest export, are a key source of revenue for the government, currently battling […]

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Venezuela’s Oil Heads East

The late Venezuelan President Hugo Chávez used to berate the old management of state oil company Petróleos de Venezuela (PDVSA) for sending oil to Europe. Chávez, who died in March 2013, said PDVSA’s sales to Germany, the U.K., and Sweden made no commercial sense because of the distance involved and the proximity of Middle East suppliers to European customers. Fast-forward 15 years, and PDVSA is firmly in the hands of the late president’s adherents. Last year, PDVSA sent more oil to Asia than to North America, the first time in the company’s history, even though it takes a month for Venezuelan crude to reach China and India. Sales to Asia rose 11 percent to about 1.03 million barrels a day, while sales to North America, chiefly the U.S., fell 12 percent to 879,000 bbl. per day. Today, Chávez’s old criticisms about the wisdom of having far-flung markets are forgotten, as his successors […]

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In Venezuela, Protesters Point to Their Scars

Clipso Martínez was shot at such close range by a soldier at a protest that his surgeon said he had to remove pieces of the plastic shotgun shell buried in his leg, along with the shards of keys Mr. Martínez had in his pocket, shattered by the blast. Jorchual Gregory was detained with 10 others who said that over three days they were kicked, pistol whipped, doused with pepper spray and battered with helmets and shotgun butts. “They wanted to make people afraid so we wouldn’t stay in the streets,” said Mr. Gregory, 19. “But what happened was more protests and more deaths.” Venezuela has been shaken by more than two months of often violent protests that President Nicolás Maduro says are designed to overthrow him. He has held the opposition responsible for violence that the government says has claimed more than 40 lives, including those […]

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World Cup Power Cut Fears Spur Record Brazil LNG Buying

Miguel Abitbol spent almost $4,000 on television equipment to show World Cup soccer matches at his bar and restaurant in Rio de Janeiro . He’s praying there will be enough electricity to power it. Abitbol’s 48-inch (122-centimeter) set is one of 16 million expected to be sold in Brazil this year as it hosts the world’s most-watched sporting event. The kick off in June is looming as the nation contends with a drought that reduced water supply needed for hydroelectric power to near-critical levels. A blackout in February cut electricity to 6 million people. Petroleo Brasileiro SA (PETR3) , the state-owned energy company, is buying record amounts of liquefied natural gas in the spot market to run gas-fired power plants at full capacity and preserve water reserves. Increased competition for the fuel is narrowing the discount of Latin American prices to those in Asia , the costliest, to the […]

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Japan Protests Planned Limits on Panama Canal Ships

Japan has protested to Panama about planned limits on the size of ships in the Panama Canal, saying they could prevent some U.S. natural gas from reaching customers in Asia. The issue has cast a pall over hopes for expanded trade in natural gas after the widening of the canal, scheduled for completion in early 2016. The U.S., enjoying a newfound abundance of natural gas thanks to technological advances, has opened the door to exports, and Japanese companies have eagerly signed up for U.S. supplies to make up for idled nuclear power after the March 2011 accident at Tokyo Electric Power Co. ‘s Fukushima Daiichi complex. The widening of the canal will open the way for the first time to liquefied-natural-gas carriers. Currently the LNG carriers must take a more circuitous route from eastern North America to Asia. But Panama has set a width limit of 49 meters for […]

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Petrobras hits production record in Santos, Campos basins

Petroleo Brasileiro SA (Petrobras) recently reached an oil production record of 428,000 b/d in company-operated fields in the Santos and Campos basins. The company said the new mark was a result of the increased output that came with the Mar. 17 launch of operations from the P-58 platform in the Parque das Baleias area of northern Campos. The platform has been producing 50,000 b/d through three presalt wells. Petrobras holds 100% of the rights in the area. Twenty-four production wells have been drilled overall, of which 15 are in the Campos and nine in the Santos. Production from Campos and Santos has reached 222,000 b/d and 206,000 b/d, respectively. Fifteen more production wells are expected to start up by yearend, of which 11 will be in the Santos and 4 in the Campos. Of the 15 wells, two are connected to the Cidade de Sao Paulo floating production, storage, […]

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Farmers Seeking Heat Relief Signal Brazil Climate Peril

Brazil may see a mass migration of crops and farm workers from huge swaths of currently tillable lands to more temperate zones as global warming takes hold, according to leading climate experts in the country. Longtime Brazilian climate researcher Hilton Silveira Pinto points to the drought that’s cutting grain and coffee output this year as an indicator that rising global temperatures may already be impacting the country’s crops. “This is a taste of what is to come in the future,” said Pinto, a professor at the Center for Meteorological and Climate Research Applied to Agriculture at the University of Campinas. A study co-authored by Pinto that looks at projected warming trends shows Brazil’s soybean production may drop by as much as 24 percent and wheat output as much as 41 percent by 2020 as climate change reduces areas where the crops can grow. Because Brazil is increasingly helping to […]

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Cuba fed a president’s fears and took over Venezuela

The enormous influence that Cuba has gained in Venezuela is one of the most underreported geopolitical developments of recent times. It is also one of the most improbable . Venezuela is nine times bigger than Cuba, three times more populous, and its economy four times larger. The country boasts the world’s largest oil reserves. Yet critical functions of the Venezuelan state are either overseen or directly controlled by Cuban officials. The FT’s A-List The A-List provides timely, insightful comment on the topics that matter, from globally renowned leaders, policy makers and commentators Venezuela receives Cuban health workers, sports trainers, bureaucrats, security personnel, militias and paramilitary groups. “We have over 30,000 members of Cuba’s Committees for the Defence of the Revolution in Venezuela,” boasted Juan José Rabilero, then head of the CDR, in 2007. The number is likely to have increased further since then. A growing proportion of Venezuela’s imports […]

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Venezuelan Leader and Opposition Meet in Bid to Ease Tensions

President Nicolás Maduro of Venezuela and leaders of a coalition of opposition political parties held a dramatic televised meeting on Thursday in a first step aimed at defusing tensions that have escalated during more than two months of antigovernment protests. The meeting was brokered by a group of South American foreign ministers who exerted pressure on both sides to come to the table in the hopes of averting further violence in the protests, which have cost 40 lives, according to a government count. Underscoring the urgency of the situation, local news media reported that a police officer in Barquisimeto, a city in western Venezuela, died after being shot on Wednesday night in a confrontation that appeared to be linked to a protest. The ministers were trying to get Venezuelans to do what they had not been able to do on their own: bridge the country’s bitter political rift. Although […]

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Brazil Vice President Sees No Fuel Price Boost as Election Looms

Brazilian Vice President Michel Temer said he sees no room for a fuel price increase before elections in October and that inflation surpassing 6.5 percent would be a “disaster.” “I don’t think so. I can’t say with complete certainty,” Temer, 73, said in an interview yesterday at Bloomberg’s headquarters in New York , in response to whether Petroleo Brasileiro SA would raise fuel prices before the election. “I don’t have information about it, but I’m not seeing the possibility.” Petrobras rose 6.6 percent to 16.46 reais yesterday, the biggest jump in more than a week, after a poll showed reduced support for President Dilma Rousseff’s re-election bid. The government controls Petrobras’s board with a majority of voting shares, and investors were encouraged by the possibility of a change in administration, said Paulo Brito, an investment manager at the brokerage firm HPN Invest in Recife, Brazil . The company’s refining […]

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Brazil Court Says Chevron Unit and 10 Employees Face Spill Charges

A judicial panel in Brazil ruled a Corp. subsidiary and 10 of its employees will face criminal charges related to offshore oil spills in 2011 and 2012, the company said on Friday. The original criminal charges had been dismissed in February 2013, but an appellate court last October reinstated two counts for environmental damage and failing to immediately notify authorities. Chevron appealed, but a three-judge panel upheld the charges in a 2-1 ruling last week, sending the case back to the federal court that had dismissed the criminal complaint. Chevron has appealed last week’s decision, saying its Brazilian unit "responded appropriately and responsibly to the incident and that there is no damage to the environment or risk to human health." The charges stem from two oil spills, totaling a little more than 2,400 barrels, in the Frade field, about 75 miles off the coast of Brazil. The country’s oil […]

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Venezuela High Court Backs Move to Oust Opposition Leader

Venezuela’s Supreme Court late Monday backed the government’s move to strip a top opposition congresswoman of her title, a move that sparked accusations the court lacks independence in a country roiled by two months of protests. Government allies of President Nicolás Maduro said last week that María Corina Machado would be kicked out of the National Assembly for speaking on Venezuela’s political crisis in front of the Organization of American States in Washington last month as an invited guest of the government of Panama. They say Ms. Machado, among Mr. Maduro’s most vocal critics, violated the constitution, which prohibits parliamentarians from accepting public posts from other countries without the approval of Venezuela’s congress. Ms. Machado didn’t seek such approval before her appearance in Washington. The country’s highest court on Monday backed that view in a statement posted on its website. It said Ms. Machado’s move was "not only detrimental […]

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Heating oil demand follows cold weather into South America

The end of March has the heating oil market turning south as demand in the US follows winter buying into decline, market sources said Monday. Total US stocks of the product have reached 14.39 million barrels, the lowest level since the US Energy Information Administration began tracking the data in 1993. The low comes on the back of a sustained decline, stocks shed 2.74 million barrels in six weeks, according to EIA data. "Stocks are not going to increase going into summer," one broker said, "and with RINs attached, I think refiners will be exporting more." Article continues below… Request a free trial of: Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily futures summary Weekly […]

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