Oil Daily | BP's Kirkuk Redevelopment Approved Amid U.S. Seizure of Iranian Oil Funds

【Global Oil Supply and Demand】

Oversupply is expected to extend a decline in coal prices in China, potentially boosting demand. Bloomberg reports ample coal inventories are weighing on prices, and further pressure is anticipated. The oversupply follows previous intensive coal buying and reduced consumption, with coal remaining a crucial part of China's energy system.

The latest Dallas Fed Energy Survey shows slight increases in U.S. oil and gas production in Q1 2025. Oil rig count remained stable, while the natural gas rig count fell slightly. Despite increases in costs, respondents have a cautious outlook, with expectations for long-term oil and gas prices indicating some optimism.

An EU ban on Russian LNG transshipment came into force, aiming to cut Russia's revenue streams. Despite supply cuts, discussions persist about a potential return of Russian gas to European markets. Norway and the U.S. have replaced Russia as Europe's major gas suppliers. Logistics challenges for Russian tankers are expected.

【Oil-Producing Countries Dynamics】

The United States filed a lawsuit for the forfeiture of $47 million from the sale of seized Iranian oil linked to the Islamic Revolutionary Guard Corps. The sale was part of a sanction evasion scheme using deceptive practices to disguise Iranian oil as Malaysian, involving falsified documents and U.S. financial institutions.

BP received final approval from Iraq to redevelop the Kirkuk oil fields, with plans to produce 3 billion barrels of oil equivalent. This marks a significant breakthrough for Iraq aiming to re-open energy projects. Iraq's economy heavily relies on crude oil exports, making this development critical for the nation's revenue.

【Latest Oil Policies】

China's special envoy for climate change reaffirmed the irreversible nature of the global energy transition, despite the U.S. exiting the Paris Agreement. The transition is driven by political will, markets, and technology. Challenges arise from overcapacity in solar energy, affecting profitability and expansion plans.

【Industry News】

ENN Energy Holdings Limited received a privatization offer valued at $11.6 billion from ENN Natural Gas, its affiliate. This move highlights a major development in China's energy sector, aiming to enhance energy security through strategic investments in gas infrastructure, LNG distribution, and gas projects nationwide.

Chevron expressed interest in exploring additional offshore blocks south of Crete, Greece. The Greek government plans to announce an international tender for these blocks, doubling the exploration area. This development signifies Chevron's confidence in Greece and its potential energy resources amid efforts to boost domestic supply post-energy crisis.

【Company News】

Ithaca Energy, following its acquisition of Eni's UK business, expects a substantial increase in its 2025 production. The acquisition boosts Ithaca's position in the UK Continental Shelf, and further expansion is anticipated with additional asset acquisitions and ongoing projects, ensuring sustained production levels beyond 2025.