Oil Daily | Delaware Court Approves $3.7B PDV Holding Auction Amid Venezuela Debt Dispute

【Oil-Producing Countries Dynamics】

A Delaware court has approved a $3.7-billion offer from Red Tree Investments in the auction of PDV Holding, Citgo's parent company, to settle Venezuela's debts. This court-mandated process aims to address $24 billion in claims against Venezuela, sparking competition among 16 creditors who disagree with the bid.

Libya faces a dire economic situation as oil revenues decline and political unrest intensifies. The Central Bank of Libya devalued the dinar by 13.3%, while black-market rates soared. Despite minor oil production resumption, broader economic instability persists, exacerbated by political factions and Russia's influence.

Saudi Aramco and Chinese EV maker BYD will collaborate on developing new energy vehicle technologies. The agreement underscores Aramco's push for advanced, efficient, and lower-carbon energy solutions, expanding its cooperation with Chinese companies, following deals with Sinopec and Hengli Group.

【Latest Oil Policies】

The International Energy Agency's chief warned about ongoing global energy supply risks due to geopolitical tensions and trade policies. Emphasizing diversification and cooperation, the IEA is coordinating a meeting in London with energy and political leaders, excluding China, to discuss traditional and emerging energy security challenges.

The EU plans to increase LNG imports from the U.S. to reduce reliance on Russian fossil fuels, aligning with President Trump's trade demands. The EU aims to purchase additional 40 million tons of LNG, pooling member demand for better pricing amid geopolitical shifts and energy strategy realignment.

【Industry News】

Chevron and TotalEnergies commenced production at the Ballymore project in the Gulf of Mexico, expected to deliver 75,000 barrels of oil per day at its peak. This venture emphasizes capital discipline, low carbon intensity, and efficient production, leveraging existing infrastructure to meet global energy demands.

Chinese firm ENN Natural Gas signed a 15-year LNG supply deal with UAE's ADNOC, marking the largest such agreement between the two nations. Amid U.S.-China trade tensions, Chinese buyers are shifting focus to Middle Eastern suppliers, enhancing supply chain resilience and portfolio diversification.

【Company News】

Phillips 66 advised shareholders to remain cautious of Elliott Investment Management's influence, as it pursues a Citgo acquisition while advocating for Phillips 66's restructuring. Elliott's conflicting interests raise concerns about potential impacts on shareholder value and company strategy during the ongoing board struggle.