Oil Daily | Saudi Aramco Plans Asset Sales Amid Profit Drop; Russia Escorts Oil Tankers in Baltic Tensions

【Oil-Producing Countries Dynamics】

Saudi Aramco is exploring asset sales to boost funds for international expansion and operations. Sources indicate the company has engaged investment banks for asset monetization strategies. Aramco's 2024 net profit fell to $106.2 billion from $121.3 billion in 2023, with dividends reduced, impacting Saudi Arabia's finances. The country's budget deficit is influenced by high breakeven oil prices, despite low production costs.

Russian military vessels are escorting oil tankers in the Gulf of Finland, marking a new development. This follows an Estonian navy attempt to stop a Russian oil tanker. Russia uses a "shadow fleet" for oil transport, employing deceptive tactics. Europe's efforts to disrupt these shipments, including lowering price caps, have shown mixed results.

【Latest Oil Policies】

Taiwan will hold a referendum in August on restarting its last nuclear reactor, Maanshan, amid energy security concerns. The decision follows the Democratic Progressive Party's policy to phase out nuclear power by 2025. A legislative amendment now allows operators to apply for a 20-year license renewal, potentially reopening nuclear plants. Safety checks for Maanshan could take at least three years. Taiwan is also increasing U.S. oil and gas imports to enhance energy security and trade balance.

【Industry News】

Taiwan's state-held CPC Corporation signed a letter of intent to invest in the $44-billion Alaska LNG export project and purchase LNG, aiming to reduce trade surplus with the U.S. However, as seen previously, such commitments may not prevent tariffs despite international agreements.