Latest news with #Repsol
Reuters
6 days ago
- Business
- Reuters
US-authorized buyers of Venezuelan oil complete transactions as licenses expire
May 28 (Reuters) - Buyers of Venezuelan oil under U.S. licenses and authorizations have completed loadings and the vessels departed as a period granted by Washington to wind down transactions expired this week, shipping data and documents seen on Wednesday showed. The U.S. Treasury and State departments gave companies including Chevron (CVX.N), opens new tab, Maurel & Prom ( opens new tab and Repsol ( opens new tab until May 27 to receive cargoes of Venezuelan crude, fuel and byproducts as authorizations granted in recent years were revoked in March as part of the Trump administration's harder stance towards the sanctioned country. A recent large swap deal between Venezuela's state company PDVSA, M&P and commodities firm Vitol was completed, with naphtha supplies discharged at PDVSA's Jose port and vessels carrying Venezuelan heavy crude setting sail to the U.S., the data showed. Other customers also received in recent days their last cargoes ahead of the wind-down deadline. PDVSA in April canceled cargoes scheduled for delivery to one of its main joint-venture partners, Chevron, citing payment uncertainties related to U.S. sanctions, which cut short the deadline set to complete those transactions. Chevron's broad license to operate in Venezuela ended on Tuesday, the company confirmed. However, the U.S. producer received guidelines from the Trump administration allowing it to preserves its stakes, assets and staff in Venezuela, sources told Reuters. PDVSA, Vitol, M&P and Chevron did not immediately reply to requests for comment. As buyers have completed and ceased deals, there has been a reduction of crude sales to U.S.-authorized companies since last month, partially offset by an increase in oil and fuel deliveries to little-known intermediaries allocating Venezuela-origin cargoes in Asia, the data and documents showed. Without the licenses, analysts are forecasting a 15-30% decline of Venezuela's oil output and exports by the end of next year, following a slow recovery that had pushed average crude output to around 1 million barrels per day (bpd) this year. The government of President Nicolas Maduro rejects the sanctions. Officials have said they amount to an "economic war."
Yahoo
20-05-2025
- Business
- Yahoo
Chevron & European Oil Firms Urge Continued Access to Venezuela
Chevron Corporation CVX, along with several European oil companies, is actively engaged in high-level negotiations with the Trump administration to retain stakes in joint ventures with Venezuela's state-owned oil firm, Petróleos de Venezuela, S.A. ('PDVSA'), according to Reuters. These talks follow the U.S. government's decision in March to revoke longstanding licenses that previously allowed limited operational continuity between international firms and PDVSA amid ongoing sanctions. The U.S. Treasury Department's revocation of key licenses has thrown major energy partnerships into disarray. These licenses allowed Chevron, a Houston, TX–based integrated oil and gas company, Repsol S.A. REPYY, a Spain-based integrated oil and gas company, and others to maintain a foothold in Venezuela's lucrative oil sector. Without these authorizations, companies are required to wind down their operations by May 27, leaving critical questions unanswered regarding asset management, staffing and the legal future of billions of dollars in energy infrastructure investments. The uncertainty comes as PDVSA, grappling with economic instability and reduced oil production, has shifted to a model of accepting only prepaid or barter-based oil transactions, canceling multiple cargoes, including those allocated to Chevron. Industry insiders reveal that energy giants are appealing to Washington for a reinstatement of the 2020-2022 license framework, which permitted continued presence in Venezuela without allowing production expansion or oil exports. This middle-ground solution would prevent a complete foreign exodus and shield companies from total asset loss while ensuring Venezuela's state-owned oil and natural gas company does not resume a pattern of unpaid dividends and accumulating debts to its partners. Chevron remains the last standing U.S. oil firm in Venezuela, holding minority shares in four key joint ventures responsible for approximately 25% of the country's oil output. This unique position gives Chevron not only a strategic advantage but also places it at the center of the United States's geopolitical energy calculus. Despite canceled shipments and a recent suspension at the Petropiar upgrader, Chevron continues to maintain its staffing and logistical framework, leveraging local presence to remain poised for potential license reissuance. Chevron's CEO, Mike Wirth, has publicly highlighted the strategic value of a continued U.S. corporate footprint in Venezuela. In interviews, he warned that a full withdrawal would create a vacuum quickly filled by oil firms from Russia and China, potentially undermining U.S. interests in the hemisphere. "We are the only American company that remains on the ground in Venezuela," Wirth stated. "If we were to leave, American energy interests would be displaced by foreign competitors." European players like Spain's Repsol are following suit. Josu Jon Imaz, CEO of Repsol, confirmed that it is still in contact with U.S. officials, citing a shared desire to maintain operational continuity and strategic interests in Venezuela's oil industry. These companies, while refraining from public disclosure of their formal license requests, are unified to retain minimum operational capacities, including local offices, key employees and access to pre-sanctioned infrastructure, even if oil exports remain restricted. Chevron was previously owed $3 billion by PDVSA, a debt largely recovered through export allowances granted under a 2022 license. However, pending dividend repayments remain unresolved and a forced withdrawal would not only jeopardize recovery but also lock billions in stranded assets. As PDVSA continues plans to nationalize joint ventures and self-manage crude exports, foreign partners are scrambling to mitigate risks and negotiate terms that prevent wholesale asset seizure or indefinite deferment of outstanding debts. With oil production in Venezuela already suffering due to years of underinvestment, mismanagement and international sanctions, experts estimate a 15-30% decline in national output by 2026 if foreign firms are forced out without licensing alternatives. Despite holding the world's largest proven crude reserves, Venezuela lacks the capital and technology to revitalize its energy sector without international collaboration. The current standoff could further cripple the country's output, isolate its economy and deepen global oil supply instability. As Chevron and Europe's oil firms await a decision from the Trump administration, the situation highlights a delicate balance between implementing sanctions and preserving U.S. influence in global energy markets. A renewed license regime could offer a pragmatic path forward, maintaining pressure on the Maduro government while safeguarding American and allied investments in one of the most oil-rich nations on Earth. The coming weeks will prove decisive, not only for Chevron and its European counterparts but for the broader geopolitical alignment in Latin America's energy sector. Currently, CVX holds a Zacks Rank #5 (Strong Sell), while REPYY has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like Comstock Resources, Inc. CRK and Expand Energy Corporation EXE, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Comstock Resources is valued at $7.10 billion. In the past year, its shares have risen 113.6%. Comstock Resources, an independent energy producer in the United States, holds approximately 1.1 million acres primarily within the highly prospective Haynesville and Bossier shale regions of North Louisiana and East Texas. The company's core business involves the acquisition, exploration, development and production of natural gas and oil from these assets. Expand Energy is valued at $27.13 billion. In the past year, its shares have risen 24.5%. Based in Oklahoma City, OK, Expand Energy is an independent natural gas production company. With significant interests in shale formations across Pennsylvania, Ohio, West Virginia and Louisiana, Expand Energy focuses on the acquisition, exploration and development of properties for producing oil, natural gas and natural gas liquids. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Comstock Resources, Inc. (CRK) : Free Stock Analysis Report Repsol SA (REPYY) : Free Stock Analysis Report Expand Energy Corporation (EXE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BBC News
16-05-2025
- Business
- BBC News
Job cuts at Flotta oil terminal 'significant' says union
At least 29 jobs have been cut at the Flotta oil terminal in trade union Unite has described the job losses at the site - which leave a work force of 156 - as a "significant reduction". The Flotta terminal has been a critical piece of North Sea infrastructure since 1977. In a statement, main contractor Petrofac said it had collaborated with terminal operators Repsol UK and Unite to introduce "job sharing and a voluntary redundancy scheme to reduce the number of colleagues affected." A total of 12 Repsol employees have left, mostly through voluntary now has 51 staff at the terminal, with some moving to part time roles to stay in main contractor at the site is Petrofac which has carried out 17 compulsory redundancies - which it said was in response to the changing needs of its client - leaving it with about 40 workers at other contractors, Altrad and ESS, also operate at the claims "hostile" polices towards oil and gas are partly to blame for the UK government has said its Energy Profits Levy, known as the windfall tax, aims to ensure North Sea oil and gas producers contribute their fair share towards energy transition. New ownership At its height, the Flotta oil terminal processed 400,000 barrels of oil a oil is delivered by pipeline from North Sea oil fields and then shipped away by oil and gas the flow of oil has slowed but the facility is expected to remain in operation until the early 2030s. Repsol UK has investigated green hydrogen production at the Flotta site and creating a decommissioning hub but the plans have come to terminal is due to pass into new ownership later this year when a deal between Repsol UK and Norway's Neo Energy is new company, Neo Next, will be controlled by the Norwegian company, which will have the majority share.
Business Insider
12-05-2025
- Business
- Business Insider
Repsol upgraded to Overweight from Equal Weight at Morgan Stanley
Morgan Stanley analyst Sasikanth Chilukuru upgraded Repsol (REPYY) to Overweight from Equal Weight with a price target of EUR 13.30, up from EUR 12. The firm adjusted ratings in the European energy group, saying the sector's 'fortunes remain closely tied to oil markets.' Morgan Stanley expects oil to enter a 'meaningful surplus' after the summer. As such, it foresees downside risk to earnings and buybacks, upside risk to net debt, and does not find valuations compelling at current share levels. The firm took its industry view back to 'Cautious.' However, Repsol's key message from the Q1 earnings conference call was the commitment to maintain high distributions, contends Morgan Stanley. Protect Your Portfolio Against Market Uncertainty
The Independent
02-05-2025
- Politics
- The Independent
Warning as Spain suffered multiple incidents in build-up to full blackout
Spain's catastrophic blackout on Monday was preceded by several power glitches and repeated industry warnings about the instability of the nation's power grid, prompting government investigations into the incident. Experts suggest these incidents, regardless of the ultimate cause of the blackout, highlight the challenges facing Spain's power system amidst the rapid growth of renewable energy sources. While often touted for their environmental benefits, the influx of renewable energy can create an energy surplus, disrupting the delicate balance of the power grid in much the same way as an energy deficit. In the week leading up to the major outage, Spain experienced several power surges and cuts, foreshadowing the larger crisis to come. The government has launched multiple investigations to determine the precise cause of the blackout and address the underlying vulnerabilities in the power grid. A power cut disrupted railway signals and stranded at least 10 high-speed trains near Madrid on April 22. Transport Minister Oscar Puente said excessive voltage in the power network had triggered disconnections to protect substations. On the same day, Repsol's Cartagena refinery saw its operations disrupted by power supply problems. The grid suffered from significant instability in the days before the blackout, said Antonio Turiel, a senior researcher with the Spanish National Research Council. Spain's grid operator REE did not reply to a request for comment. Spain's energy ministry declined to comment. Spain has ordered inquiries involving government, security agencies and technical experts. A high court judge has launched a probe into whether a cyber attack was to blame. The Spanish power grid had been on a knife edge for several days due to power system imbalances, said Carlos Cagigal, an energy expert who advises private firms on renewable and industrial projects. Prime Minister Pedro Sanchez and power grid operator REE's chief Beatriz Corredor have both said record levels of renewable energy were not to blame for Monday's blackout. But REE and Europe's power grid lobby ENTSO-E had both previously warned that the rapid rise of power generation from renewables could destabilise the grid. Small renewable generators were putting extra pressure on the infrastructure, REE said in a 2024 report, and REE's parent company Redeia said in February the grid lacked information from smaller plants to be able to operate in real time. The risk of power cuts is rising, Redeia warned because the closure of coal, gas-fired and nuclear plants reduces the grid's balancing capacities. "This could increase the risk of operational incidents that could affect supply and the company's reputation," the company said. Solar farms generate direct current (DC) power which doesn't have a frequency like alternating current (AC) power generated by conventional plants. DC power needs to be converted to AC in inverters to be transmitted via grids. If solar generation drops, the grid requires backstop AC power to prevent frequency dropping below dangerous levels after which most power contributors disconnect from the grid. "Shutting down the nuclear plants may put electricity supply at risk," REE's former chair Jordi Sevilla told Spanish news website Voxpopuli in January. Spain plans to shut down all seven nuclear reactors by 2035. The planned closure of two nuclear reactors at southwestern Spain's Almaraz plant, starting in 2027, will increase the risks of blackouts, European power lobby ENTSO-E said in April. REE responded to ENTSO-E by saying there was no risk of a blackout and it could guarantee stable energy supply. Less than a week later, Almaraz temporarily shut down the two units citing abundant wind energy supply as making operations uneconomic. One unit was still offline on Monday. The blackout across Spain and Portugal knocked out communications and transport systems, shut down industry and offices and brought commerce to a virtual standstill. The blackout could have shaved 1.6 billion euros ($1.82 billion), or 0.1%, off GDP, Spain's business lobby estimated.
