Latest news with #foreignfirms
Yahoo
5 days ago
- Business
- Yahoo
Vaca Muerta Shrugs Off Frac Cuts With Record Oil and Gas Gains
Argentina's booming Vaca Muerta shale play isn't immune to the decline in oil prices and company spending this year. Drilling activity is set for a near-term slowdown as foreign firms and the biggest domestic producer YPF SA are pulling out some frac crews amid lower international oil prices and a major asset reshuffle with mergers and acquisitions in recent months. But the long-term prospects of the Vaca Muerta shale resources—one of the world's biggest—remain intact, and Argentina is looking to monetize both the oil and gas production. Vaca Muerta—Spanish for 'dead cow'—has been dubbed the Argentinian Permian, although its geologic properties have been compared more appropriately to the Eagle Ford. The shale play is estimated to hold recoverable resources consisting of 16 billion barrels of oil and 308 trillion cubic feet of natural gas. Those numbers make the Vaca Muerta the world's second-largest shale gas deposit and the fourth-biggest shale oil resource. In the first quarter of 2025, Vaca Muerta built on last year's strong production performance, with oil output surging 26% and gas production rising 16% year-on-year, Rystad Energy has is rising, but the number of drilling rigs was down as of the end of July compared to the same time last year. Some companies are pulling out rigs and crews amid reduced spending. As a result, drilling activity in Vaca Muerta is set for a near-term weakness, according to Horacio Marin, chief executive at Argentina's oil and gas giant YPF. 'We might have to pull out a couple of fracking crews,' Marin said at an energy conference in Argentina, adding that this is 'basically because of the slowdown we are seeing from international partners.' However, the slowdown is part of a 'new normal' for Argentina and Vaca Muerta, YPF's top executive noted. 'We have to get used to a normal Argentina, where activity slows down a bit when the price of oil drops,' Marin said. Five rigs out of operation in Vaca Muerta is not a cause for concern, he said, expressing optimism in the medium and long-term prospects of the shale play. 'Personally, I believe nothing can stop Vaca Muerta anymore,' Marin commented. Currently, companies are responding to the lower oil prices and the consolidation drive that has seen several major deals in recent months. In April, local independent firm Vista Energy bought the stake of Malaysia's Petronas in the prolific La Amarga Chica (LACh) unconventional concession in Vaca Muerta. This week, TotalEnergies announced the sale of its 45% operated interest in two unconventional oil and gas blocks in Vaca Muerta, Rincon La Ceniza and La Escalonada, to YPF for $500 million. But TotalEnergies remains fully committed to Argentina, where it operates a large unconventional area of 183,000 net acres in Vaca Muerta. Deals and other strategic positioning of foreign firms show that Argentina may have reversed its fortunes and become an attractive investment destination. In a notable recent reversal, Norway's Equinor – which had planned to exit the shale play – has reconsidered its earlier decision and will now remain in the region, Rystad Energy noted in June. The end of monetary restrictions in Argentina and the improvement in infrastructure and export viability have prompted Equinor to remain in Vaca Muerta. 'A shift in Equinor's stance has marked something of a turning point, reaffirming international confidence in Argentina's shale resurgence,' Rystad Energy said. Despite the short-term slowdown, expectations for the longer term are that Argentina has finally entered a period of oil and gas production growth after years of waiting for Vaca Muerta to start paying off. YPF's Marin says the company 'can develop all of Vaca Muerta' at oil prices as low as $45 per barrel. The shale play can also deliver so much natural gas that it could make Argentina a major LNG exporter. But the country needs to build up infrastructure to ship the gas from supply centers to interstate regional pipelines and planned LNG export facilities. This could be made possible with continued reforms to attract foreign investment and reverse decades of investors shunning the country due to economic and fiscal instability. Argentina has several LNG export projects in the works. YPF, for example, has signed agreements with international majors Shell and Eni to enter the project development of the Argentina LNG project, which includes gas production from Vaca Muerta gas blocks and its transportation through pipelines. These pipelines will extend 580 kilometers (360 miles) to a processing and liquefaction terminal to be built in Sierra Grande, Rio Negro, on the Atlantic coast. Argentina has already taken a final investment decision (FID) on a floating liquefaction facility with a capacity of up to 2.5 million tonnes per annum (Mtpa). It is also evaluating an additional 3.5 Mtpa unit under the Southern Energy consortium consisting of Pan American Energy, Pampa, Harbour Energy, YPF, and Golar. 'Vaca Muerta's strong oil gains are no surprise anymore as its track record speaks for itself. However, what we're seeing now is that gas is stealing the spotlight,' says Radhika Bansal, vice president for Upstream Research at Rystad Energy. 'To leverage this momentum, the country is actively pursuing a bold, multi-phase national LNG export strategy, meaning Argentina could soon become a pivotal player in global gas supply, significantly reshaping markets and energy geopolitics.' By Tsvetana Paraskova for More Top Reads From this article on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Cheap Stocks and Market Reforms Draw Investors to Saudi
A rush of reforms is making it easier for foreigners to invest in Saudi Arabia, boosting confidence among investors that the country's stock market will one day compete with global rivals even as equities currently underperform and trading volumes decline. Announced over a single week in July, a series of policy changes will allow residents of Gulf Cooperation Council countries to more freely trade Saudi stocks, give foreign firms the option of launching depositary receipts and ease rules for funds and asset managers dealing in equities.
Yahoo
18-07-2025
- Business
- Yahoo
Wells Fargo exit ban revives fears about doing business in China
By Antoni Slodkowski, Casey Hall and Scott Murdoch BEIJING/SHANGHAI/SYDNEY (Reuters) -Fears that employees of foreign firms risk entanglement with Chinese authorities have resurfaced after news that an employee of U.S. bank Wells Fargo has been banned from leaving the country. Business groups, diplomats and overseas executives say the incident is part of a long-term trend that had appeared to ease off as Beijing pushed to promote its appeal to foreign commerce to bolster its slowing economy. "Such stories can raise concerns of foreign businesses regarding travel to China," said Jens Eskelund, president of the European Union Chamber of Commerce in China. "At a time when China is proactively trying to attract foreign investment it sends something of a mixed signal." Wells Fargo has suspended all travel to China after the incident, a person familiar with the matter told Reuters. Shanghai-born Chenyue Mao, who spearheads the bank's international factoring business, was subjected to the ban after she entered China in recent weeks, the Wall Street Journal reported. She is a U.S. citizen, a source told Reuters. An emailed request for comment sent to Mao received an automated response saying she was "travelling international on business". China's foreign ministry spokesperson Lin Jian told a press briefing on Friday that he was not aware of the Wells Fargo matter, adding that China was committed to providing a welcoming environment for foreign companies to do business. The U.S. embassy in Beijing said it could not comment on the specifics of the case due to privacy and other reasons. "We have raised our concern with Chinese authorities about the impact arbitrary exit bans on U.S. citizens have on our bilateral relations and urged them to immediately allow impacted U.S. citizens to return home," a spokesperson for the embassy added. The United States does not provide an official figure for how many citizens are detained abroad, but The Dui Hua Foundation, a nonprofit that advocates for the release of political prisoners in China, estimates there are more than 200 Americans in China alone who are wrongfully detained or facing coercive measures, such as exit bans. The U.S. State Department updated its travel advisory for mainland China in November 2024 saying visitors should "exercise increased caution" due to "arbitrary enforcement of local laws, including in relation to exit bans." ROUTINELY USED In a survey conducted by the EU Chamber of Commerce in China of its members last year, 9% of respondents reported challenges attracting foreign nationals to work in China due to concerns related to personal safety and/or civil and criminal liability such as company raids, arbitrary arrests or exit bans. Of the 128 respondents, 4% said business travel from China to their company's headquarters had been negatively impacted due to employees being unable to leave China due to exit bans. There is no official data in China on the number of individuals subject to exit bans. But non-profit organisation Safeguard Defenders estimates bans have shot up over the past decade and that "tens of thousands" of people - the vast majority Chinese nationals - face such bans at any one time, citing court data on civil and criminal cases. A 2022 academic study found 128 cases of foreigners faced exit bans between 1995 and 2019, including 29 Americans and 44 Canadians. Around a third of the bans were business related. James Zimmerman, a lawyer based in Beijing and former chairman of the American Chamber of Commerce in China, said Chinese authorities routinely use exit bans to prevent witnesses or suspects viewed as flight risks from exiting mainland China. "Most of the time, there is a legitimate legal basis for the exit ban, while there are indeed instances of misuse of the process by the government authorities, including for political reasons," Zimmerman said While there are procedures in place to have the ban lifted, a lack of transparency and absence of a workable bail system make it a time-consuming and challenging process, he added. Other incidents of bans in recent years have embroiled executives from Japanese investment bank Nomura Holdings, U.S. risk advisory firm Kroll and Swiss wealth manager UBS. Yet some professional advisors say travel to China has become safer than several years ago, said Benjamin Qiu, Co-Chair, Asian Affairs Committee at the New York City Bar Association. Unless your company has been specifically targeted by the state or a state-owned entity, risks are low, said Qui, adding that ethnic Chinese travellers do face heightened risk. Other executives are hoping the Wells Fargo incident does not presage a wider crackdown. "We do so much business in China and travel there so much, we can't afford not to. I would hope this is just a one-off," said a capital markets banker at a Western bank in Hong Kong, declining to be named as the person was not authorised to talk to the media. Sign in to access your portfolio
Reuters
18-07-2025
- Business
- Reuters
Wells Fargo exit ban revives fears about doing business in China
BEIJING/SHANGHAI/SYDNEY, July 18 (Reuters) - Fears that employees of foreign firms risk entanglement with Chinese authorities have resurfaced after news that an employee of U.S. bank Wells Fargo (WFC.N), opens new tab has been banned from leaving the country. Business groups, diplomats and overseas executives say the incident is part of a long-term trend that had appeared to ease off as Beijing pushed to promote its appeal to foreign commerce to bolster its slowing economy. "Such stories can raise concerns of foreign businesses regarding travel to China," said Jens Eskelund, president of the European Union Chamber of Commerce in China. "At a time when China is proactively trying to attract foreign investment it sends something of a mixed signal." Wells Fargo has suspended all travel to China after the incident, a person familiar with the matter told Reuters. Shanghai-born Chenyue Mao, who spearheads the bank's international factoring business, was subjected to the ban after she entered China in recent weeks, the Wall Street Journal reported. She is a U.S. citizen, a source told Reuters. An emailed request for comment sent to Mao received an automated response saying she was "travelling international on business". China's foreign ministry spokesperson Lin Jian told a press briefing on Friday that he was not aware of the Wells Fargo matter, adding that China was committed to providing a welcoming environment for foreign companies to do business. The U.S. embassy in Beijing said it could not comment on the specifics of the case due to privacy and other reasons. "We have raised our concern with Chinese authorities about the impact arbitrary exit bans on U.S. citizens have on our bilateral relations and urged them to immediately allow impacted U.S. citizens to return home," a spokesperson for the embassy added. The United States does not provide an official figure for how many citizens are detained abroad, but The Dui Hua Foundation, a nonprofit that advocates for the release of political prisoners in China, estimates there are more than 200 Americans in China alone who are wrongfully detained or facing coercive measures, such as exit bans. The U.S. State Department updated its travel advisory for mainland China in November 2024 saying visitors should "exercise increased caution" due to "arbitrary enforcement of local laws, including in relation to exit bans." In a survey conducted by the EU Chamber of Commerce in China of its members last year, 9% of respondents reported challenges attracting foreign nationals to work in China due to concerns related to personal safety and/or civil and criminal liability such as company raids, arbitrary arrests or exit bans. Of the 128 respondents, 4% said business travel from China to their company's headquarters had been negatively impacted due to employees being unable to leave China due to exit bans. There is no official data in China on the number of individuals subject to exit bans. But non-profit organisation Safeguard Defenders estimates bans have shot up over the past decade and that "tens of thousands" of people - the vast majority Chinese nationals - face such bans at any one time, citing court data on civil and criminal cases. A 2022 academic study found 128 cases of foreigners faced exit bans between 1995 and 2019, including 29 Americans and 44 Canadians. Around a third of the bans were business related. James Zimmerman, a lawyer based in Beijing and former chairman of the American Chamber of Commerce in China, said Chinese authorities routinely use exit bans to prevent witnesses or suspects viewed as flight risks from exiting mainland China. "Most of the time, there is a legitimate legal basis for the exit ban, while there are indeed instances of misuse of the process by the government authorities, including for political reasons," Zimmerman said While there are procedures in place to have the ban lifted, a lack of transparency and absence of a workable bail system make it a time-consuming and challenging process, he added. Other incidents of bans in recent years have embroiled executives from Japanese investment bank Nomura Holdings (8604.T), opens new tab, U.S. risk advisory firm Kroll and Swiss wealth manager UBS (UBSG.S), opens new tab. Yet some professional advisors say travel to China has become safer than several years ago, said Benjamin Qiu, Co-Chair, Asian Affairs Committee at the New York City Bar Association. Unless your company has been specifically targeted by the state or a state-owned entity, risks are low, said Qui, adding that ethnic Chinese travellers do face heightened risk. Other executives are hoping the Wells Fargo incident does not presage a wider crackdown. "We do so much business in China and travel there so much, we can't afford not to. I would hope this is just a one-off," said a capital markets banker at a Western bank in Hong Kong, declining to be named as the person was not authorised to talk to the media.
Bloomberg
15-06-2025
- Business
- Bloomberg
China's Biotech Moment Ignites a 60% Stock Rally That Beats AI
China's biotechnology stocks have shaken off a four-year slump to be among the hottest performers in Asia this year and funds are tipping further gains. The Hang Seng Biotech Index has surged more than 60% since the start of January amid investor enthusiasm over a pair of billion-dollar deals involving foreign firms licensing Chinese drugs. Share gains at two highly anticipated listings of local producers have further burnished the sector's appeal.
