PdV promising to revive moribund joint ventures

: Crude oil
19/12/17

Venezuela's state-owned PdV is aggressively promoting new and revamped joint ventures with mostly local partners in a campaign to restore oil production to 1.5mn b/d-2mn b/d in 2020.

Among the new ventures is PetroSur in which PdV subsidiary CVP will partner with Cyprus-based Inversiones Petroleras Iberoamericanas (IPI) to develop the Orinoco oil belt's Junin 10 block, which holds estimated extra-heavy crude reserves of 1.03bn bl. The government-controlled Supreme Court (TSJ) ratified the venture on 12 December.

IPI's chief partners include former Repsol chairman and chief executive office Alfonso Cortina, former Repsol legal affairs adviser Ramon Blanco Balin and Venezuelan investor Alejandro Betancourt, the senior partner in Derwick Associates, according to Venezuelan, Spanish, Dutch and Cypriot legal documents and internal PdV reports and correspondence obtained by Argus.

IPI will make a front-end $400mn payment to PdV for the Junin 10 development rights. A failed first attempt to launch PetroSur in August 2018 would have allowed this payment mainly in Venezuelan sovereign and PdV bonds held by the parties behind IPI, according to three ministry and PdV officials with direct knowledge of the planned venture.

Junin 10 was originally assigned in 2010 to a PdV joint venture with Chinese state-owned CNPC. CNPC withdrew in 2014 after PdV was unable to foot its share of capital investment.

PdV is working on another upstream partnership in eastern Venezuela, where its minority shareholder in the dormant PetroDelta project is proposing to spend $800mn over three years to produce 100,000 b/d of heavy crude in exchange for full operational control and marketing rights.

The 40pc stakeholder in PetroDelta is CT Energy, whose top executives are Venezuelan telecommunications magnate Oswaldo Cisneros and Panama-based Element Capital Advisors president Francisco D'Agostino, also Venezuelan.

PetroDelta encompasses six mature fields in Monagas and Delta Amacuro states. At the end of 2012 the fields held proved reserves of 107.8mn bl of mostly heavy crude ranging from 12°-22°API, plus associated gas, according to the oil ministry.

CT Energy acquired its PetroDelta stake from Houston-based Harvest Natural Resources in October 2016 for $122mn, including the write-off of $30mn in debt owed by Harvest to CT Energy.

At the 2016 deal signing with Harvest, Cisneros announced that CT Energy would invest $1bn over three years to raise PetroDelta production from 40,000 b/d to 100,000 b/d. But the project suspended operations in November 2018 due to unspecified operational and logistical problems.

On 14 December, the information and communications ministry reported that PdV in 2018 replaced the minority stakeholders in 11 obscure and largely dormant ventures.

The ministry specified five of the overhauled ventures as PetroCumarebo, Baripetrol, PetroOritupano, PetroGuarico and PetroUrdaneta, which produced only a combined 2,340 b/d at the end of 2018 compared with 7,300 b/d in 2017, the government says.

The changes were not communicated to the opposition-controlled National Assembly, which has a constitutional mandate to approve all oil joint ventures.

Venezuela's oil production has rebounded in recent months, reaching an average of 770,000 b/d in November, up from 650,000 b/d in September, according to Argus estimates. A further uptick is expected in the December average.

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25/04/02

Brazil’s Bauna oilfield restarts after maintenance

Sydney, 2 April (Argus) — Brazil-focused Australian oil and gas company Karoon Energy has brought its Bauna oilfield in the offshore Santos basin back on line after the completion of intervention works at its SPS-88 well in February. Production resumed on 27 March after the project was shut down for maintenance on 7 March, Karoon said. The field's output has since reached about 26,500 b/d, above pre-shutdown levels because of the return of SPS-88 well production on 28 March. The well is pumping 2,000 b/d of oil on a restricted choke and is gradually being opened further, with rates in line with expectations. The intervention was originally planned for October-December 2024 after being taken off line in November 2023 because of a mechanical blockage in the gas lift valve. Karoon's plans to acquire the Cidade de Itajai floating production, storage and offloading (FPSO) unit at its Bauna oilfield have progressed, with the transaction on track to close as forecast in April. Selection of a new operations and maintenance contractor for the FPSO will be announced in mid-2025, with an updated cost guidance to be provided once terms are agreed. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada oil producers get 6pc 1Q lift on weaker currency

25/04/01

Canada oil producers get 6pc 1Q lift on weaker currency

Calgary, 1 April (Argus) — A depreciating Canadian dollar is giving oil sands producers an extra lift and complementing relatively strong domestic crude prices to help weather tariff concerns. The Canadian dollar, on average, was worth C$1.44 to one US dollar in January-March 2025, weakening from C$1.35 to the greenback in the same quarter 2024, according to the Bank of Canada. That represents a more than 6pc advantage to Canadian producers selling crude in US dollars who then turn those earnings around to pay workers and suppliers in local currency. The outright price for heavy sour Western Canadian Select (WCS) at Hardisty, Alberta, settled at $58.67/bl in the first quarter this year, according to Argus data. This is only $1/bl higher than the same period last year, but with the now weaker Canadian dollar, that converts to over C$84/bl for producers who would have seen that under C$78/bl in the first quarter 2024. The Canadian dollar, on average, was worth C$1.37 to the US dollar in 2024, weakening from C$1.35 to the greenback in 2023 and the weakest annual average since 2003. The Bank of Canada largely attributes the sliding Canadian dollar to a rising foreign exchange rate risk premium, which relates to holding currencies other than the US dollar. This premium rises with uncertainty that has been amplified by US president Donald Trump's tariff actions in recent months, and that has also weighed on currencies from other economies, hitting developing countries' currencies harder than those of advanced economies. Also keeping the US dollar elevated is the US Federal Reserve's recent caution about resuming its cycle of cutting interest rates, thus attracting relatively more investors to US Treasury bills and boosting demand for US dollars. Canada meanwhile has brought its target rate lower to try to get ahead of an anticipated economic slowdown. The Fed's Federal Open Market Committee (FOMC) on [19 March](https://direct.argusmedia.com/newsandanalysis/article/2669490) held the federal funds rate unchanged at 4.25-4.50pc for a second consecutive meeting after cutting at the last three meetings of 2024. The Bank of Canada a week earlier lowered its overnight rate for the seventh consecutive time to 2.75pc. Giving a more obvious boost to Canadian producers in the first quarter this year compared with a year earlier have been the appreciating domestic crude prices relative to the US light sweet benchmark, which has weakened across the same period. WCS trades at a discount to the Nymex WTI calendar month average (CMA) and that gap has narrowed on the back of new export pipeline capacity out of Canada, added in May 2024. WCS traded at about $12.75/bl under the WTI CMA across the first quarter this year, compared with a $19.25/bl discount a year earlier. More recent trade activity shows WCS for April-delivery narrowing further yet to within $10/bl under the basis — the tightest since April 2021 — with oil sands producers temporarily shutting in some production to embark on major maintenance . By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Next US tariffs to take effect 'immediately'

25/04/01

Next US tariffs to take effect 'immediately'

Washington, 1 April (Argus) — President Donald Trump plans to announce a sweeping batch of tariffs on Wednesday afternoon that will take effect "immediately", the White House said today. Trump will unveil his much anticipated tariff decision Wednesday at 4pm ET during a ceremony at the White House Rose Garden. While the administration has announced the effective date, there is little clarity on what goods will face tariffs at what rates and against which countries, leaving the government agencies that will be tasked with enforcing new tariffs largely in the dark. "The president has a brilliant team of advisers who have been studying these issues for decades, and we are focused on restoring the golden age of America and making America a manufacturing superpower," the White House said today, brushing off criticism from economists, industry groups and investors. Economic activity in the US manufacturing sector contracted in March as businesses braced for Trump's tariff threats. Trump has previewed or announced multiple tariff actions since taking office. The barriers in place now include a 20pc tariff on all imports from China, in effect since 4 March, and a 25pc tax on all imported steel and aluminum, in effect since 12 March. A 25pc tariff on all imported cars, trucks and auto parts, is scheduled to go into effect on 3 April, the White House confirmed today. Trump and his advisers have previewed two possible courses of action for 2 April. Trump has suggested that all major US trading partners are likely to see a broad increase in tariffs in an effort to reduce the US trade deficit and to raise more revenue for the US federal budget. But Trump separately has talked about the need for "reciprocal tariffs", contending that most foreign countries typically charge higher rates of tariffs on US exports than the US applies to imports from those countries. In that scenario, high tariffs become a negotiating tool to bring down alleged foreign barriers to US exports. Treasury secretary Scott Bessent told Fox News on Monday night that the second course is the one Trump is more likely to take. Trump will announce "reciprocal tariffs" and "everyone will have the opportunity to lower their tariffs, lower their non-tariff barriers, stop the currency manipulation" and "make the global trading system fair for American workers again", Bessent said. But the White House insisted today that the new tariffs will not be a negotiating tool. Trump is "always up for a good negotiation, but he is very much focused on fixing the wrongs of the past and showing that American workers have a fair shake", the White House said. Trump's words and actions already have drawn retaliatory tariffs from Canada and China, and the EU is preparing to implement its first batch of counter-tariffs in April. Trump, for now, has deferred his tariff plans for imported Canadian and Mexican oil and other energy commodities. But the US oil and gas sector, which depends on pipelines and foreign-flagged vessels to transport its crude, natural gas, refined products and LNG, will feel the effects of tariffs on imported steel and proposed fees on Chinese-made and owned vessels calling at US ports. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico GDP outlook falls again in March survey

25/04/01

Mexico GDP outlook falls again in March survey

Mexico City, 1 April (Argus) — Private-sector analysts lowered Mexico's 2025 GDP growth forecast to 0.5pc in the central bank's March survey, down by more than a third from the prior forecast, driven by increased concerns over US trade policy and weakening domestic investment. The latest outlook is down from 0.8pc estimated in February and marks the largest of four consecutive reductions in the median forecast for 2025 GDP growth in the central bank's monthly surveys since December. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Uncertainty over US trade policy has weighed on investment and contributed to the slowdown. Concerns have intensified in recent weeks with US president Donald Trump set to announce sweeping new tariffs on 2 April. Mexico is preparing its response, possibly including reciprocal tariffs, on 3 April. A key concern in Mexico is an expiring carveout to the tariffs for treaties aligned with US-Mexico-Canada (USMCA) free trade agreement rules of origin. Mexico's economy minister said last week ongoing negotiations aim to secure a "preferential tariff," including a continuance of that exclusion and lower tariffs for goods progressing toward USMCA compliance. The median 2026 GDP growth estimate fell to 1.6pc from 1.7pc in February. Analysts again cited security, governance and trade policy as top constraints to growth. Year-end 2025 inflation expectations edged lower to 3.70pc in March from 3.71pc in February. The central bank's board of governors cut Mexico's target interest rate by 50 basis points to 9pc from 9.5pc on 27 March, citing expectations that inflation will continue to slow toward the central bank's 3pc long-term goal and reach 3.3pc by year-end. The board said it would consider additional cuts of that size at future meetings. Mexico's consumer price index accelerated to an annual 3.77pc in February, as slower growth in agricultural prices was offset by faster inflation in services. The target interest rate is projected to fall to 8pc by year-end, compared with 8.25pc in February's survey. The median exchange rate forecast for end-2025 reflected expectations of the peso ending the year slightly stronger at Ps20.80 to the US dollar from Ps20.85/$1 estimated in the prior forecast. The end-2026 estimate firmed slightly to Ps21.30/$1 from Ps21.36/$1. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global energy mix evolves as electricity demand surges

25/03/28

Global energy mix evolves as electricity demand surges

Climate change is becoming a bigger factor behind electrification, but cleaner energy use is slowing the growth in global emissions, writes Georgia Gratton London, 28 March (Argus) — A substantial increase in electricity demand — boosted by extreme weather — drove an overall rise in global energy demand in 2024, lifting it well above the average pace of increase in recent years, OECD energy watchdog the IEA announced this week. This led to a rise in natural gas consumption, although renewables and nuclear shouldered the majority of the increase in demand, leaving oil's share of total energy demand below 30pc for the first time. Global energy demand rose by 2.2pc in 2024 compared with 2023 — higher than the average demand increase of 1.3pc/yr between 2013 and 2023 — according to the Paris-based agency's Global Energy Review . Global electricity consumption increased faster, by 4.3pc, driven by record-high temperatures — that led to increased cooling needs — as well as growing industrial consumption, the electrification of transport and the rapid growth of power-hungry data centres needed to support the boom in artificial intelligence, the IEA says. Renewables and nuclear covered the majority of growth in electricity demand, at 80pc, while supply of gas-fired power generation "also increased steadily", the IEA says. New renewable power installations reached about 700GW in 2024 — a new high. Solar power led the pack, rising by about 550GW last year. The power generation and overall energy mix is changing, as economies shift towards electrification. The rate of increase in coal demand slowed to 1.1pc in 2024, around half the pace seen in 2023. Coal remained the single biggest source of power generation in 2024, at 35pc, but renewable power sources and nuclear together made up 41pc of total generation last year, IEA data show. Nuclear power use is expected to hit its highest ever this year, the agency says. And "growth in global oil demand slowed markedly in 2024", the IEA says, rising by 0.8pc compared with 1.9pc in 2023. A rise in electric vehicle (EV) purchases was a key contributor to the drop in oil demand for road transport, and this offset "a significant proportion" of the rise in oil consumption for aviation and petrochemicals, the IEA says. Blowing hot and coal Much of the growth in coal consumption last year was down to "intense heatwaves" — particularly in China and India, the IEA found. These "contributed more than 90pc of the total annual increase in coal consumption globally", for cooling needs. The IEA repeatedly noted the significant effect that extreme weather in 2024 had on energy systems and demand patterns. Last year was the hottest ever recorded, beating the previous record set in 2023, and for CO2 emissions, "weather effects" made up about half of the 2024 increase, the watchdog found. "Weather effects contributed about 15pc of the overall increase in global energy demand," according to the IEA. Global cooling degree days were 6pc higher on the year in 2024, and 20pc higher than the 2000-20 average. But the "continued rapid adoption of clean energy technologies" restricted the rise in energy-related CO2 emissions, which fell to 0.8pc in 2024 from 1.2pc in 2023, the IEA says. Energy-related CO2 emissions — including flaring — still hit a record high of 37.8bn t in 2024, but the rise in emissions was lower than global GDP growth. Key "clean energy technologies" — solar, wind and nuclear power, EVs and heat pumps — collectively now prevent about 2.6bn t/yr CO2 of emissions, the IEA says. But there remains an emissions divide between advanced and developing economies. "The majority of emissions growth in 2024 came from emerging and developing economies other than China," the agency says, while advanced economies such as the UK and EU cut emissions last year and continue to push ahead with decarbonisation. Global energy suppy by fuel EJ Growth ±% 2024 2023 2022 24/23 23/22 Total 648 634 622 2.2 1.8 Renewables 97 92 89 5.8 3.1 Nuclear 31 30 29 3.7 2.2 Natural gas 149 145 144 2.7 0.7 Oil 193 192 188 0.8 1.9 Coal 177 175 172 1.2 2.0 Global power generation by fuel TWh Growth ±% 2024 2023 2022 24/23 23/22 Total 31,153 29,897 29,153 4.2 2.6 Renewables 9,992 9,074 8,643 10.0 5.0 Nuclear 2,844 2,743 2,684 3.7 2.2 Natural gas 6,793 6,622 6,526 2.6 1.5 Oil 738 762 801 -3.2 -4.8 Coal 10,736 10,645 10,452 0.9 1.8 Global power generation by country TWh Growth ±% 2024 2023 2022 24/23 23/22 World 31,153 29,897 29,153 4.2 2.6 US 4,556 4,419 4,473 3.1 -1.2 EU 2,769 2,718 2,792 1.9 -2.6 China 10,205 9,564 8,947 6.7 6.9 India 2,059 1,958 1,814 5.2 7.9 Global CO2 emissions by country mn t Growth ±% 2024 2023 2022 24/23 23/22 World 37,566 37,270 36,819 0.8 1.2 US 4,546 4,567 4,717 -0.5 -3.2 EU 2,401 2,455 2,683 -2.2 -8.5 China 12,603 12,552 12,013 0.4 4.5 India 2,987 2,836 2,691 5.3 5.4 *includes industrial process emissions — IEA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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