Politics, Geopolitics & Conflict
South Sudan resumed oil exports on January 8 following Sudan’s decision to lift force majeure on a vital pipeline damaged during Sudan’s civil conflict. Prior to the halt in February 2024, South Sudan exported 150,000 bpd via the Petrodar pipeline, critical for its economy. The restart, involving Blocks 3 and 7 operated by Dar Petroleum Operating Company (DPOC) with partners CNPC, Sinopec, and SSTO, will alleviate severe financial strain on the nation. Sudan’s new security arrangements with Juba and Bashier Pipeline Company ensure safe oil flow north to Port Sudan.
Venezuelan opposition leader Maria Corina Machado was kidnapped by Maduro’s forces on Wednesday and then released shortly after. Machado had been in hiding in Venezuela since Maduro’s controversial re-election last year. Maduro’s government has denied any involvement.
A Ukrainian drone attack hit a Russian oil depot this week, forcing the authorities to declare a state of emergency in the city of Engels, in Russia’s southern Saratov region, some 300 miles from the Ukrainian border. Two firefighters were killed attempting to put out the blaze. On the other side of this divide, Russian forces have managed to secure a bridgehead gain in the Kharkiv region, at the Oskil River, which forms the front line.
Discovery & Development
Yinson Production has achieved first oil with its FPSO Atlanta in Brazil’s Santos Basin, in partnership with Brava Energia.…
Politics, Geopolitics & Conflict
South Sudan resumed oil exports on January 8 following Sudan’s decision to lift force majeure on a vital pipeline damaged during Sudan’s civil conflict. Prior to the halt in February 2024, South Sudan exported 150,000 bpd via the Petrodar pipeline, critical for its economy. The restart, involving Blocks 3 and 7 operated by Dar Petroleum Operating Company (DPOC) with partners CNPC, Sinopec, and SSTO, will alleviate severe financial strain on the nation. Sudan’s new security arrangements with Juba and Bashier Pipeline Company ensure safe oil flow north to Port Sudan.
Venezuelan opposition leader Maria Corina Machado was kidnapped by Maduro’s forces on Wednesday and then released shortly after. Machado had been in hiding in Venezuela since Maduro’s controversial re-election last year. Maduro’s government has denied any involvement.
A Ukrainian drone attack hit a Russian oil depot this week, forcing the authorities to declare a state of emergency in the city of Engels, in Russia’s southern Saratov region, some 300 miles from the Ukrainian border. Two firefighters were killed attempting to put out the blaze. On the other side of this divide, Russian forces have managed to secure a bridgehead gain in the Kharkiv region, at the Oskil River, which forms the front line.
Discovery & Development
Yinson Production has achieved first oil with its FPSO Atlanta in Brazil’s Santos Basin, in partnership with Brava Energia. The FPSO includes a cutting-edge carbon management plant to reduce emissions, aligning with Yinson’s net-zero aspirations. The production capacity is 50,000 bpd and a 15-year contract worth $1.98 billion. The unit represents a major step in greenfield deepwater production.
Shell announced a $400 million write-down on its PEL39 oil discovery offshore Namibia, citing technical and geological challenges that questions the resource’s commercial viability for now. The region has gained global attention for recent oil discoveries. Namibia’s government remains optimistic about future developments, pointing to ongoing exploration by companies such as Galp, Chevron, and TotalEnergies. Shell also revealed an additional $300 million exploration write-off, primarily linked to licenses in Colombia, ahead of its Q4 earnings release on January 30.
Murphy Oil Corporation has announced a significant oil discovery at the Hai Su Vang-1X exploration well in Vietnam’s Cuu Long Basin, located 40 miles offshore. The well, drilled to a depth of 13,124 feet, encountered 370 feet of net oil pay across two reservoirs, with additional evaluation and future appraisal drilling planned. Murphy operates the block with a 40% stake, alongside partners PetroVietnam Exploration (35%) and SK Earthon (25%).
Laredo Oil has begun preparations to drill three exploratory wells in Montana’s West Fork field, where it holds over 30,000 net acres of mineral rights. The company is raising up to $7.5 million to fund the project, which includes seismic data acquisition, permitting, and vendor selection. Management believes the field could hold reserves comparable to the Lustre field, which has produced 7.5 million barrels since its discovery by Exxon in 1981. Success in these exploratory wells would trigger an aggressive drilling program to fully develop the field.
Deals, Mergers & Acquisitions
Equinox India Developments surged 20% to Rs 143.70 after receiving NCLAT approval for its long-pending merger with Embassy Group, overcoming concerns from the income tax department. The merger strengthens Embassy Group’s footprint in Mumbai and Delhi-NCR and positions the combined entity for growth in India’s competitive real estate market. Equinox, rebranded last year after a Rs 3,911 crore investment from Embassy, Blackstone, and Baillie Gifford, boasts a development portfolio worth Rs 32,189 crore and notable projects like Embassy One in Mumbai. The company reported a Q2 net profit of Rs 24.06 crore, marking a sharp turnaround from a loss the previous year.
Orlen, Poland’s state-controlled oil refiner, has secured a settlement to recover $100 million of the $400 million in prepayments made in 2023 for undelivered oil, including Venezuelan crude. The funds will be reimbursed in tranches by Dubai-based Horizon Global, though Orlen is still pursuing the remaining losses from other intermediaries. The Swiss trading unit OTS, responsible for the prepayments, is under investigation, with its former CEO detained last month by a Warsaw court. Orlen continues to work with national and international authorities to recover the full amount.
Phillips 66 has agreed to a $2.2 billion all-cash acquisition of EPIC NGL, including its pipelines and subsidiaries, as part of its strategy to expand its natural gas liquids (NGL) portfolio. The deal enhances Phillips 66’s NGL value chain in the Permian Basin, where 85% of U.S. NGL production is centered, and is expected to be immediately accretive to earnings. This follows Phillips 66’s 2024 acquisition of Pinnacle Midland for $550 million.
The Alberta government has partnered with Enbridge to explore expanding pipeline capacity to the U.S., focusing on regulatory streamlining and leveraging Enbridge’s 29,000-kilometer network. Alberta’s goal is to double oil production and exports while avoiding direct taxpayer investment through in-kind royalties.
Handal Energy announced the termination of its joint venture with Kazakhstan-based Hadid Oil and Gas LLP for the Nipineftegas field development, citing unfulfilled conditions without specifying details. The JV, proposed in January 2024, faced hurdles, including a miscommunication regarding potential investor Pelaburan Mara’s involvement, which was later clarified as inaccurate. Handal stated the termination would not materially impact its financials or shareholder structure for the fiscal year ending June 30, 2025. Shares of Handal Energy remained steady at 5.5 sen, valuing the company at RM20.7 million.
