Oil Daily | Libya Normalizes Oil Exports; Saudi Focuses on Market Share; Colombia Eyes Energy Transition

【Oil-Producing Countries Dynamics】

Mitsubishi Corporation is increasing its stakes in Malaysia's LNG facilities with Petronas. The Japanese firm will extend and reinvest its 10% equity in MLNG Dua and MLNG Tiga. Petronas' LNG complex, one of the largest globally, has been a key supplier to Japan since 1983. Mitsubishi is also expanding investments in Malaysia's gas, automotive, and steel sectors.

Petronas is facing reduced earnings due to lower gas prices and Sarawak's push for control over its natural gas assets. The company reported decreased first-half profit amid market volatility and higher taxes.

Colombia plans a $40 billion investment for transitioning from oil and gas to low-carbon energy sources and climate solutions. The government halted new drilling permits two years ago. The plan aims to replace hydrocarbon export revenues, with hopes for $10 billion from international support. Despite ambitions, Colombia remains reliant on hydrocarbons.

Libya's rival governments reached an agreement on appointing a new central bank governor, signaling a normalization of oil production and exports. Meanwhile, Saudi Arabia is reportedly prioritizing market share over its $100 per barrel oil price target, while Russia plans to align with OPEC's supply adjustments.

Russia may lift its gasoline export ban if a domestic surplus occurs. The ban, extended to December 2024, aims to stabilize domestic supply amid refinery repairs. Current domestic supply is stable, according to Deputy Prime Minister Alexander Novak.

【Industry News】

Brazil's Petrobras is pursuing stakes in African oil blocks from companies like ExxonMobil and Shell, as domestic exploration slows. Targeting regions like Namibia, the company sees potential in geological similarities with Brazil. Petrobras is also eyeing Argentina's Vaca Muerta shale for natural gas opportunities.

【Company News】

The FTC demands Hess Corp's CEO be excluded from Chevron's board for the merger approval. Chevron plans to acquire Hess for $53 billion, facing Exxon’s claim of first refusal on Hess' Guyana assets. The FTC's move mirrors previous antitrust actions concerning Exxon and Pioneer Natural Resources' former CEO.

ExxonMobil proposes a $10 billion investment in Nigeria's deepwater oil resources, reflecting its focus on deep-water opportunities. The strategy shift follows planned divestments due to challenges like oil theft and pipeline damage. ExxonMobil aims to focus on the Owo project, a subsea tie-back investment.

Guangdong Energy Group in China will start operations at a new LNG terminal, with ExxonMobil utilizing it under a long-term agreement. The terminal can handle 4 million metric tons annually. ExxonMobil sees this as part of its strategy to deliver LNG to China and support its energy transition.