BP confirms thousands of job cuts

Spanish Market: Crude oil, Natural gas, Oil products
16/01/25

BP confirmed today that its current cost-cutting programmes are expected to lead to a headcount reduction of around 4,700 roles at the company itself — about 5pc of its global workforce — along with a reduction of some 3,000 contractor roles.

The job cuts were outlined in an internal email to employees from chief executive Murray Auchincloss in which he explained that since June last year BP has stopped or paused 30 projects as part of a multi-year plan "to simplify and focus" the company. It is also taking other measures, such as increased digitalisation, to drive efficiency into its organisation, he said.

The email detailed the number of staff positions that would be affected and noted that 2,600 of the 3,000 contractors who are leaving BP had already done so.

BP launched a cash cost reduction programme last spring aimed at shaving at least $2bn off the company's yearly outgoings the end of 2026. Around a quater of those cost savings are set to be implemented this year.

BP's overall employee numbers have grown to around 90,000, with headcount rising significantly over the past couple of years through acquisitions, including its purchase of service station network TravelCenters of America which brought 20,000 employees with it.

The company issued a trading update on 14 January that flagged it would report a weaker fourth quarter when it releases its financial results on 11 February. BP is also scheduled to hold a strategy day in London on 26 February.

By Jon Mainwaring

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16/01/25

Модернизация Ферганского НПЗ завершится в 2026 г.

Riga, 16 January (Argus) — Работы по модернизации Ферганского НПЗ планируется завершить к 2026 г., сообщил отраслевой источник. Мощность завода после завершения проекта, который реализует компания Saneg, владеющая предприятием с 2022 г., вырастет в два раза, до 2 млн т/год. Ожидается, что в результате модернизации стоимостью около $400 млн завод начнет производство моторного топлива пятого класса, авиакеросина Jet A-1/ТС-1 и базовых масел группы II+/III. Глубина переработки превысит 92%, а выход светлых продуктов превысит 75%. Для производства высококачественных нефтепродуктов в настоящее время строятся пять технологических установок, реконструируются существующие. За счет оптимизации 116 из 325 существующих на заводе резервуаров, установки понтонного оборудования на 41 емкости, а также строительства 36 новых резервуаров планируется резко сократить потери при хранении нефтепродуктов, по данным НПЗ. После модернизации Ферганский завод сможет производить 260 тыс. т высокооктанового бензина, 538 тыс. т дизтоплива и 450 тыс. т авиакеросина. ________________ Больше ценовой информации и аналитических материалов о рынках нефти и нефтепродуктов стран Каспийского региона и Центральной Азии — в еженедельном отчете Argus Рынок Каспия . Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

Singapore’s bunker demand hits record high in 2024

16/01/25

Singapore’s bunker demand hits record high in 2024

Singapore, 16 January (Argus) — Bunker demand at the port of Singapore hit a record high of 54.9mn t in 2024, with Singapore remaining the biggest bunkering hub in the world. Bunker demand jumped by 6pc on the year at the island nation, with total and conventional bunker sales reaching an all-time high, according to the Maritime and Port Authority of Singapore (MPA). "Singapore continues to be the world's largest container transshipment hub," said transport minister Murali Pillai at the Singapore Maritime Foundation (SMF) New Year Conversations this week. Total container throughput also hit a record high of 41.12mn twenty-foot equivalent unit (TEU) in 2024, surpassing 40mn TEUs for the first time, Pillai added. This was up from 39m TEUs in 2023. The number of tanker arrivals for the year reached 25,802, up from 24,763 in 2023. Singapore's bunkering of alternative marine fuels also breached the 1mn t mark in 2024, with 882,830t of bio-fuel blends and 463,948t of LNG bunkered at the port. Bunkering of bio-blends, using very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome), jumped by 51pc from 518,000t in 2023 to 779,900t in 2024. Demand for high-sulphur fuel oil (HSFO)-based B24 rose to 89,300t in 2024, from only 5,600t bunkered in 2023, as blending HSFO with Ucome picked up. This was supported by more scrubber installations by ship owners and the push to meet green savings targets set by the International Maritime Organization's (IMO) Carbon Intensity Index (CII) and EU-led FuelEU Maritime. Among other alternative marine fuels, LNG bunkering more than quadrupled to 463,900t in 2024 versus 110,900t. Interest to bunker LNG has surged among ship owners in this region since 2024, in an effort to again meet the compliance requirements set by IMO and EU. Methanol for bunkering demand remained modest with sales registered only for one month last year, 1,626t in May. Singapore VLSFO demand declined by 3.7pc from 2023 to 29.6mn t in 2024. Its HSFO demand grew for the fifth year in a row to 20.2mn t in 2024, and was up by 21pc from 2023. Singapore's marine distillates sales rose by 2pc from 2023 to 3.8mn t in 2024, but fell from its 2020 peak of 4.7mn t. Ranking MPA also published a list of its five top biofuel bunker and top 10 conventional bunker suppliers in 2024, which showed some reshuffling. South Korean refiner SK Energy joined Singapore's top five biofuel suppliers in 2024, but it was not on MPA's list of 14 registered biofuel bunker suppliers in 2023. BP had ranked third in 2023, but fell out of the top five in 2024. Chevron, Maersk, Minerva and Vitol were Singapore's other top five biofuel bunker suppliers. Glencore entered the top 10 ranking of conventional marine fuel suppliers in 2024, after it ranked 11th in 2023. Shell ranked ninth in 2023, but dropped out of the top 10 in 2024. The companies which remained in the top 10 were BP, Chevron, Eng Hua, Equatorial, Global Energy, Petrochina International, Sinopec Fuel Oil, TFG Marine and Vitol. Among these, Equatorial, TFG Marine and Chinese suppliers, Petrochina International and Sinopec Fuel Oil, made up the top ranks by volumes in 2023. There were a total of 41 conventional bunker suppliers in Singapore in 2023. By Mahua Chakravarty and Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Seoul may scale down nuclear expansion plans

15/01/25

Seoul may scale down nuclear expansion plans

The delay to finalising the country's nuclear goals may make it unfeasible to build sufficient capacity before current assets expire, writes Evelyn Lee London, 15 January (Argus) — South Korea's energy industry has faced a whirlwind of challenges since the impeachment of now-suspended president Yoon Suk-Yeol, with the political turmoil stalling a crucial review of its energy strategy in the national assembly. The government is now seeking to scale down its nuclear expansion ambitions in order to hasten the plan's review. Yoon's surprise declaration of martial law last month was reversed within six hours owing to bipartisan political pressure and widespread protests, which resulted in a national assembly vote in favour of the president's impeachment and his subsequent arrest on 15 January. Yoon is suspended from office pending a ruling by the country's constitutional court — due within six months of the impeachment vote on 14 December. If six out of nine justices vote to uphold the impeachment, Yoon will be removed from office and presidential elections will be held within 60 days. South Korea acted quickly following the martial law declaration, but government action has overall been slowed down by the political turmoil — including on energy policy. The latest draft of its long-overdue electricity plan was completed in June and scheduled to be submitted to the Trade, Industry, Energy, Small and Medium-sized Enterprises and Start-ups Committee of the national assembly by the end of last year. But the committee has suspended general meetings since 19 December, according to schedules released on its website. The long-term electricity plan is renewed every two years and serves as a basis for business planning, especially for state-controlled companies. Gas incumbent Kogas' procurement strategy has historically reflected the electricity plan. The latest draft lays out Seoul's intention to build three more nuclear reactors by 2038. But planning and construction would take nearly 14 years, according to the government, so the delay in finalising the plan could result in a power supply shortfall by 2038 — when 9.15GW of existing nuclear capacity is set to expire. Nuclear fallout The government may opt to scale down its nuclear expansion ambitions in order to get the draft electricity plan seen by the committee — which must review the plan, although it is not required to approve it. And less nuclear capacity could increase the need for more gas-fired capacity. The energy ministry pledged on 8 January to finalise the plan by June, after which it will pass related bills including the power grid act, but it did not say how it intends to progress the plan in the national assembly. The Korean Nuclear Society (KNS) responded on 9 January, accusing the government of allegedly planning to revise its nuclear objectives so it can speed up the plan's progress. The government's intent to revise its nuclear goals "without any scientific basis" shows that the electricity plan is just a "political bargaining tool that can vary depending on political interests", the KNS said. This threatens the stability of the South Korean electricity market, it added. The ministry did not respond to Argus' request for comment. But the alleged revision may not have been solely driven by political motives. Seoul may have missed the window of opportunity for approving new nuclear capacity in the timescale required, judging by the 14-year timeline for planning and construction. It remains unclear how the government would offset any reduction in its nuclear ambitions, but South Korea's slow grid development may leave little alternative other than boosting gas-fired capacity. Under the current draft electricity plan, gas-fired output would account for a 25.1pc (160.8TWh) share of total generation in 2030 and 11.1pc (78.1TWh) in 2038, up from 22.9pc (142.4TWh) and 9.3pc (62.3TWh), respectively, in the previous plan. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IEA nudges global refinery runs forecast higher

15/01/25

IEA nudges global refinery runs forecast higher

London, 15 January (Argus) — The IEA has made a marginal increase to its forecast for global refinery runs this year, driven by the "recent resilient performance" of US and European refineries. The Paris-based energy watchdog now expects global crude throughput of 83.4mn b/d in 2025, whereas its previous projection was 83.3mn b/d. At the same time, it has trimmed its estimate for 2024 runs by 20,000 b/d to 82.7mn b/d on the back of downgrades in Asian throughput. The slight upgrade to the 2025 forecast assumes that US and European refineries extend their recent resilience through the first quarter. But "even as we turn more positive on the short-term outlook, it is important to acknowledge that European refineries remain under pressure from shifting trade patterns, rising carbon costs, higher energy outlays and looming capacity closures", the IEA said today in its latest Oil Market Report (OMR). OECD throughput is forecast to fall by 370,000 b/d to 35.7mn b/d this year "as capacity closures in the United States and Europe drag on activity levels", the agency said. But it marks an upwards revision from last month's projection for the OECD of 35.6mn b/d in 2025. The IEA sees non-OECD refinery runs rising by 1mn b/d to 47.6mn b/d this year. This is a downwards adjustment of 80,000 b/d from the last OMR, but the IEA also trimmed its estimate for 2024 non-OECD throughput by the same amount — so the growth rate is unchanged. The 2025 forecasts for India, China, Pakistan, the Philippines and Singapore have all been cut compared with last month's OMR. The IEA now expects Chinese runs to rise by 240,000 b/d to 14.8mn b/d this year. Last month's forecast had Chinese throughput increasing to 14.9mn b/d. "2025 could prove to be another challenging year for Chinese independent refineries, despite increased crude import quotas, as higher import duties squeeze profitability and recent US sanctions impact access to Russian and Iranian barrels," the agency said. The IEA has raised its 2025 forecast for Nigerian throughput by 60,000 b/d to 460,000 b/d, citing the restart of state-owned NNPC's Warri and Port Harcourt refineries and the start-up of Dangote's 150,000 b/d residue fluid catalytic cracking unit. But it noted that challenges remain in terms of crude supply. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariff war is a lose-lose proposition: Canada

15/01/25

Tariff war is a lose-lose proposition: Canada

Calgary, 15 January (Argus) — Any retaliation by Canada to tariffs imposed by the US would be designed to apply political pressure, the country's energy minister said today in Washington, DC, but a potential tariff war between the two countries is a lose-lose proposition. "We are not interested in something that escalates," Canada's minister of energy and natural resources Jonathan Wilkinson said in a panel discussion at the Woodrow Wilson Center. But until tariffs are imposed, Canada does not know how it will need to respond. Canada will likely focus on goods that are "important to American producers," but also those for which Canada has an alternative. "The point in the response is to apply political pressure," said Wilkinson, who advocated for stronger trade ties between the two countries byway of energy and critical minerals. US president-elect Donald Trump plans to impose a 25pc tariff on all imports from both Canada and Mexico when he takes office on 20 January. So far he has not signaled any plans to exempt any goods, including oil and gas. Alberta's premier Danielle Smith and now Wilkinson are promoting the flow of more crude to ensure North America's energy security. "We can enhance the flow of Canadian crude oil from Alberta," said Wilkinson by boosting capacity on pipelines like Enbridge's 3.1mn b/d Mainline crude export system. "The US cannot be energy dominant without Canadian energy." The incoming administration would be open to such pipeline expansions, said Heather Reams, president of Washington-based non-profit Citizens for Responsible Energy Solutions. "It's something that the Trump administration and Republican members in Congress would be interested in revisiting to ensure that there is a steady flow of the energy that's needed to fuel our mutual economies," Reams said on the panel. Enbridge's Mainline moves Canadian crude from Alberta to the US Midcontinent, where Wilkinson expects consumers will be faced with higher gasoline prices — adding as much as 75¢/USG at the pump — should tariffs be imposed. Americans could also see higher food prices if tariffs are put on potash, a fertilizer mined in Saskatchewan and used by US farmers, she said. Development of critical minerals like germanium, gallium and others should be pursued further to minimize the US' exposure and dependence on China, according to Wilkinson, echoing comments made by Ontario premier Doug Ford on 13 January in his own appeal to enhancing trade ties with the US. "We cannot be in a position where China can simply manipulate the market," said Wilkinson, citing that country's dumping of nickel. "We should form a true energy and minerals alliance." By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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