Oil Daily | Santos Open to Offers After Failed ADNOC Bid; Ukraine Targets Russian Refineries

【Company News】

Santos is open to future takeover offers following a collapsed $19-billion bid led by Abu Dhabi's ADNOC. Despite failed talks, Santos remains confident in boosting cash flow and shareholder returns through upcoming projects like Barossa LNG and Pikka oil, aiming for a 30% production increase by 2027.

ExxonMobil's CEO Darren Woods stated that returning to the Russian oil industry is not planned, though discussions are ongoing to recover $4.6 billion in expropriated assets. Engaging with Russian officials, Exxon seeks asset settlement while distancing itself from the Sakhalin 1 project, post-Ukraine invasion.

A U.S. federal judge affirmed the validity of Venezuelan state oil company PDVSA's 2016 bond issuance, heightening creditor claims on Citgo, its U.S. refining subsidiary. The decision complicates Caracas's attempt to shield Citgo from seizure amidst Venezuela's economic struggles.

SAIC Motor plans to significantly reduce its 49% stake in its Indian joint venture with JSW Group, due to unmet expectations and India's investment restrictions on neighboring countries. The move follows strained India-China relations and India's regulatory environment limiting foreign investment.

【Latest Oil Policies】

The Trump administration's energy policies are criticized for hindering job growth in the alternative energy sector despite previous trends of rapid employment expansion. Policy uncertainty and economic slowdown are blamed for reversing job growth, impacting wind and solar industries with canceled projects worth almost $19 billion.

【Oil-Producing Countries Dynamics】

Colombia's Ecopetrol plans to increase new oil well drilling by 20-40% despite its government's decarbonization goals. The company reported record production, exceeding targets, and aims to develop fields under production-sharing agreements, aligning partially with government transition plans.

Ukraine's drone attacks on Russian refineries, including Gazprom's Neftekhim Salavat, mark significant industrial strikes targeting Russia's oil revenue. Despite sanctions, Russia's oil exports rose, reflecting logistical resilience amid Western pressure.

【Others】

The European Union's proposed climate legislation faces criticism from ExxonMobil's CEO, Darren Woods, who describes the regulations as detrimental to economic growth and manufacturing. The directive, threatening severe fines, is seen as a risk to U.S.-EU trade relations.

The rates for chartering supertankers have surged to a nearly three-year high, influenced by increased crude movements from the Middle East and U.S. to Asia. Saudi Arabia’s price cuts and OPEC's rising production contribute to strong demand for long-distance shipments, impacting the tanker market.