Generic Hero BannerGeneric Hero Banner
Latest market news

Exxon wields clause banning ships with Venezuela visits

  • Market: Crude oil, Freight, Oil products
  • 18/10/19

ExxonMobil is banning the use of any ship that has visited Venezuela in the last year to fulfill future crude shipments, a move that could effectively sideline hundreds of tankers from working for the company.

The charter party clause to be used on future ExxonMobil shipping agreements obtained by Argus states that the shipowner "warrants that the vessel has not within the previous one year from the date of this charter called at a port or place in Venezuela, carried any cargoes to or from Venezuela, or been chartered to, or otherwise engaged in any dealings with, any party identified in respect of any Venezuelan sanctions."

The clause relates to sanctions the US government has imposed on Venezuela and state-controlled oil company PdV, including a ban on crude shipments.

ExxonMobil was a top ten dirty tanker spot charterer in 2018, according to shipbroker Poten and Partners, so such a policy would mean roughly 500 tankers could not do business with the company. Of those 500 tankers, about 300 called Venezuela prior to the 29 January sanctions that effectively banned US-Venezuela oil trade.

ExxonMobil declined to comment on the clause, saying that it and its affiliates "charter solely from vessel owners that are in compliance with applicable export controls and trade sanctions."

Brian Gallagher, head of investor relations at tanker operator Euronav, said ExxonMobil chartered on 15 October a tanker with a recent Venezuela visit to load a cargo in west Africa — suggesting the clause was not included in that charter party.

The idea that the clause would also sideline tankers were considered in full accordance with US sanctions against Venezuelahas vexed Euronav. Gallagher said he was "perplexed" that some tonnage in Euronav's 65-strong tanker fleet was on ExxonMobil's blacklist, because his firm's tonnage had conducted shipments from Venezuela for US oil major Chevron, which had secured a sanctions waiver from the administration of US president Donald Trump.

While the US Treasury has not explicitly sanctioned Venezuelan oil shipments to the broader international market beyond the US and Cuba, the Treasury has discouraged oil trade with the country. Many shipowners avoid calling the country's ports for fear that they may fall afoul of sanctions.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
28/07/25

US-EU deal sets impossible energy sales goal

US-EU deal sets impossible energy sales goal

Washington, 28 July (Argus) — A deal the EU negotiated with President Donald Trump's administration in a bid to avoid a major trade war committed the European bloc to purchasing €250bn/yr ($291bn/yr) in US energy commodities in the next three years — a target that outstrips current US production and export capacity. Comments from European officials indicate that the commitment is likely to focus on LNG, in the broader context of efforts by the EU to phase out the remaining imports of Russian pipeline natural gas and crude. EU trade commissioner Maros Sefcovic on Monday called the €250bn/yr target "achievable", and the White House said the deal will "strengthen the US energy dominance, reduce European reliance on adversarial sources, and narrow our trade deficit with the EU". US exports of crude, refined products, LNG and natural gas liquids (NGLs) to the 27 members of the EU amounted to $74.3bn in 2024, based on US Department of Commerce data. The new deal would require the EU to quadruple the value of those exports — and increase the volume of exports by an even higher amount, since oil prices are lower this year than in 2024. The US exported 1.54mn b/d of crude and 655,000 b/d of refined products to EU members last year — at a total customs value of $58bn. At current WTI prices, US crude exports to the EU would hypothetically need to increase to over 10mn b/d to achieve the US-EU deal's target — about 75pc of current total US output and significantly higher than the total US exports last year. US LNG exports to the EU amounted to 1.7 Tcf of gas equivalent last year — about 22pc of total US LNG exports, US Energy Information Administration data show. The average LNG export price for EU destinations was $6.59/mmBtu last year, and the value of US LNG exports to EU members was $12.2bn. The total value of US LNG exports was $28bn last year. The energy component of the US-EU trade deal is outwardly similar to the so-called "Phase 1" deal Trump's first administration signed with China in January 2020 — and is likely to encounter the same issues with enforcement as political commitments clash with market realities. The US-China 2020 deal required Beijing to step up purchases of energy commodities by $18.5bn in 2020 and another $33.9bn in 2021. Hitting the target when the agreement was concluded in January 2020 would have required buyers in China to import an extra 1.2mn b/d at then WTI export prices. Just months later, the Covid-19 pandemic upended global oil markets and resulted in significantly lower oil prices — so achieving the export target would have required an even higher volume of US exports. China, in the end, never reached the Phase 1 deal energy purchase target. US-China trade relations continued to worsen even in the interlude between Trump's two presidencies. Unlike the EU, China has responded with strong countermeasures against tariffs Trump imposed earlier this year. Washington and Beijing are negotiating terms of new trade arrangements against a deadline of 10 August for the snapback of even higher tariffs. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Chevron’s Hess win lifts cloud over post-2030 outlook


28/07/25
News
28/07/25

Chevron’s Hess win lifts cloud over post-2030 outlook

New York, 28 July (Argus) — Chevron's successful takeover of Hess after a dispute over a massive Guyanese oil discovery turned ugly will go a long way towards answering persistent questions over the US major's long-term growth prospects. The company moved swiftly to complete its delayed $55bn acquisition of the US independent after an international arbitration panel ruled against ExxonMobil , which had attempted to throw a wrench in the deal. The hard-won victory removes a cloud hanging over Chevron at a time when the second-largest US major has been seeking to boost its reserves and production profile to convince investors it can continue growing output and cash flow well into the next decade. Nagging concerns over the longer-term outlook had helped to widen a valuation gap with ExxonMobil that is now set to narrow. The resolution brings an end to a saga that had soured relations between the two companies and left top energy lawyers scratching their heads as to how a seemingly standard — albeit confidential — oil contract could have ended up being fought over in a months-long legal battle. At the centre was a spat over the future of Hess' 30pc interest in an 11bn bl oil discovery off the coast of Guyana, the key draw for Chevron and a once-in-a-generation find that is well on the way to transforming the tiny South American nation into an energy powerhouse. ExxonMobil, the operator of Guyana's Stabroek block with a 45pc stake, and Chinese state-controlled CNOOC with a 25pc interest, argued that the change of ownership would trigger a right of first refusal clause. Hess and Chevron countered that such pre-emption rights did not apply in the event of a corporate takeover — a view that was ultimately upheld in arbitration. Such was its confidence that it would see the deal through in the end that Chevron purchased 5pc of Hess' shares on the open market in the first quarter and also issued long-term debt. ExxonMobil says it disagrees with the arbitration panel's interpretation, but it will respect the process. And executives said before the ruling that it would be business as usual regardless of the outcome. Not only does Chevron get the highly prized stake in the Guyanese block — where output of high-margin and low-cost barrels is set to double to 1.3mn b/d in the next few years — but it also adds another shale position with 463,000 net acres (1,900km²) in North Dakota's Bakken basin, as well as other assets in the US Gulf of Mexico and southeast Asia. Pre-integration work conducted while the dispute was still playing out enabled Chevron to hit the ground running when it was finally able to close the deal, which was first announced in late 2023. Chevron brought forward a goal of achieving annual cost savings of $1bn by the end of 2025, compared with an earlier target of within a year of the transaction closing. Let the free cash flow The successful outcome caps a turnaround in fortunes for Chevron, following past drilling setbacks in the Permian as well as cost overruns and delays at a Kazakh oil project that had weighed on the major's share price. The company earlier this year announced plans to slash 15-20pc of its workforce as part of a cost-cutting programme. Chevron is now getting ready to hit the brakes on spending in the Permian as it approaches a production plateau of 1mn b/d of oil equivalent (boe/d) from the prolific play, at which point it will prioritise free cash flow. Output from the Tengiz oil field in Kazakhstan is ramping up to 1mn boe/d, after an expansion project was completed at the start of the year. And project start-ups in the Gulf of Mexico will help Chevron increase production from the region by 50pc to 300,000 boe/d next year compared with 2020 output. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Canadian oil sands hit speed bump but keep rolling


28/07/25
News
28/07/25

Canadian oil sands hit speed bump but keep rolling

Calgary, 28 July (Argus) — Canada's oil sands producers are likely to report lower second-quarter profits, but they are hoping that improved government support will boost their prospects for investment to diversify away from dependence on US demand. Price differentials for both heavy sour crudes in the Canadian market were robust during the second quarter, but that only partly offset declines in US benchmark WTI. The hit to output — which strengthened differentials — was pronounced as wildfires forced several of the largest oil sands operators to shut in production. Heavy sour Western Canadian Select (WCS) at Hardisty, Alberta, narrowed its discount to WTI to its tightest since 2020, at about $10.25/bl in the second quarter, according to Argus data. But lower outright prices will overshadow this strength. WCS averaged about $54/bl in the second quarter, down by 25pc from $67/bl a year earlier. And the US-Canadian dollar exchange rate shifted to producers' detriment over the period, having partially insulated them from lower prices in the prior two quarters. Lower output will weigh on results for Cenovus, Canadian Natural Resources and MEG Energy, which all had to cut production in late May owing to nearby wildfires. A combined 344,000 b/d of bitumen — representing 500,000 b/d of marketable crude when combined with diluent — were shut in for a week. Still, Canadian oil sands companies have proven to be resilient — their growth and capital plans would remain intact even if WTI prices were to fall to $45/bl or lower, the producers say — a claim that cannot be made in every basin. And looking further ahead, Canada's producers have cause for optimism because of a new tone and perspective on oil and gas from the federal government. Alberta's crude export egress congestion looks set to return in the coming years. Regulatory certainty to build more pipelines is what will really be required to lure investors back to Canada and drive the GDP growth prime minister Mark Carney desires. A new federal major projects office will be open by 1 September, Carney announced on 22 July, providing a one-stop shop for reviews that will aim to approve or deny applications within two years. This is welcome news for oil producers seeking more export capacity, and while a few routes are being contemplated, both Carney and Alberta premier Danielle Smith have discussed the need for a 1mn b/d bitumen pipeline to northwest British Columbia. Ready to talk British Columbia premier David Eby seems open to the idea of a new pipeline, but laments that it has been a distraction. "A lot of the discussion is around this project that does not currently have a proponent," Eby says. There are "north of C$50bn ($37bn) worth of projects" in the province, with some awaiting support from the federal government, Eby says. "When premier Smith and the prime minister are in position with a proponent, we're absolutely willing to have those conversations with them," he says. Both Smith and Eby have highlighted their common ground on ammonia exports, interconnecting electricity systems and expanding the capacity of the 890,000 b/d Trans Mountain pipeline system. These are among the ideas put forward to beef up Canada's industrial capacity to diversify its trade partners, against a background of ongoing negotiations with an unpredictable US administration. US president Donald Trump is threatening Canada with more tariffs should the two sides not reach a deal by 1 August, but the US may have already moved off that date. "What we're hearing from the Americans is it looks like they're putting off a full renegotiation of the Canada-US free trade agreement until next year," Smith says. "The objective is not to have an agreement at any cost," Carney says. "Our phone is ringing off the hook from other countries who want to do more with Canada." By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

ICJ opinion could open door for more climate litigation


28/07/25
News
28/07/25

ICJ opinion could open door for more climate litigation

London, 28 July (Argus) — A landmark outcome from the International Court of Justice (ICJ) on 23 July found that countries have an obligation to contribute to cutting emissions, and wealthy, industrialised nations should take the lead on tackling climate change. The court left the door open for further climate litigation, finding that breaching these obligations constitutes a "wrongful act" for which "injured states" could claim restitution and compensation. The ICJ's advisory opinions are not legally binding but carry significant weight and may contribute to the development of international law, non-profit the Centre for International Environmental Law says. International climate treaties — such as the 2015 Paris Agreement — "establish stringent obligations upon states to ensure the protection of the climate system and other parts of the environment from anthropogenic GHG [greenhouse gas] emissions", the ICJ said. Countries "must fulfil their duty to prevent significant harm to the environment by acting with due diligence", the ICJ said. It noted the discretion built into UN climate body the UNFCCC for nations to determine the means by which they cut emissions. But it was clear that "this discretion cannot serve as an excuse for states to refrain from co-operating with the required level of due diligence or to present their effort as an entirely voluntary contribution which cannot be subjected to scrutiny". The court found that countries party to the Paris Agreement have an obligation to present national climate plans that align with its primary temperature goal of limiting the global rise to 1.5°C from a pre-industrial baseline. The ICJ also focused on the primary cause of GHG emissions — burning fossil fuels. "Failure of a state to take appropriate action to protect the climate system from GHG emissions — including through fossil fuel production, fossil fuel consumption, the granting of fossil fuel exploration licences or the provision of fossil fuel subsidies — may constitute an internationally wrongful act... attributable to that state", it found. "Where several states are responsible for the same internationally wrongful act, the responsibility of each state may be invoked," it said. Definitive legal guidance The ICJ's opinion "will equip judges with definitive guidance that will likely shape climate cases for decades to come", environmental organisation ClientEarth lawyer Lea Main-Klingst previously told Argus . Existing pathways could allow countries to take legal action against other nations, "and no changes to international law are needed for it to happen", CIEL climate and energy programme director Nikki Reisch tells Argus . Individual states could vary in how they interpret the court's findings, but the opinion was comprehensive and punctured arguments often used to push back on more stringent climate action. The ICJ noted that "it is scientifically possible to determine each state's total contribution to global emissions, taking into account both historical and current emissions", and that states could be found responsible if they do not regulate emissions caused by "private actors" under their jurisdictions. Climate litigation has risen steadily in recent years and cases including those challenging fossil fuel projects are "more often reaching the highest courts around the world", researchers at the London School of Economics' Grantham Research Institute say. And the damage caused by climate change is growing, increasing the pressure to define legal parameters and responsibilities. The ICJ proceedings hit several milestones. The issue drew the highest level of participation in a proceeding seen by the ICJ or its predecessor. And the court adopted the advisory opinion unanimously — just the fifth time in its 80-year history that this has happened. But it made the point that international law is just one tool in the fight against climate change. The proceedings "concern an existential problem of planetary proportions", the ICJ said. "International law… has an important but ultimately limited role in resolving this problem". By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Thailand’s PTTEP posts higher oil, gas sales in 1H 2025


28/07/25
News
28/07/25

Thailand’s PTTEP posts higher oil, gas sales in 1H 2025

Singapore, 28 July (Argus) — Thai state-controlled upstream firm PTTEP's oil and gas sales rose in the first half of this year, but its revenue fell on lower global crude oil prices. PTTEP's sales volume during January-June was around 495,000 b/d of oil equivalent (boe/d), up by about 1pc from the same period a year earlier. The growth was mainly because of increased gas output from the G1/61 project, higher crude sales from the Sabah Block K project, and a higher share in the Sinphuhorm project , said PTTEP. The firm recorded a revenue of 148.53bn baht ($4.43bn), down by 11pc from 166.88bn baht the same period a year earlier. Its net profit for the first half of the year was about 30bn baht, falling by almost 30pc from 42.66bn baht a year earlier. The drop was a result of the firm's average selling price falling to $44.85/boe because of a decline in global oil prices, said PTTEP. PTTEP has made significant progress in expanding its oil exploration and production in the first half of this year. Its most recent deal was the $450mn acquisition of a 50pc stake in Block A-18 of the Malaysia-Thailand joint development area, which the firm announced on 25 July. The sellers, Hess Bahamas and Hess Asia, are wholly-owned subsidiaries of Chevron, following the Chevron and Hess merger. Block A-18 currently produces 600mn ft³/d of natural gas, which is equally distributed to Thailand and Malaysia. The 300mn ft³/d supplied to Thailand meets about 6pc of the country's domestic gas demand, according to PTTEP. On completing the acquisition, PTTEP will develop additional production wells and wellhead platforms and build gas pipelines to ensure consistent supply. Block A-18 also includes multiple discovered gas fields that are yet to be developed. PTTEP was awarded the Reggane II block in Algeria in June. The company has signed a production sharing contract for the block, in which it has a 34pc interest. The contract will take effect once the Algerian government makes an official announcement, PTTEP said. In May, PTTEP agreed to extend the production sharing arrangement for Block 53 in Oman through to 2050. The company has also been awarded the production concession agreement for the Abu Dhabi Offshore 2 project following a gas discovery, marking a step towards final investment decision. The project, which PTTEP has a 30pc share in, is estimated to contain 1.5 trillion-2 trillion ft³ of gas. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more