Oil Daily | ADNOC Acquires Covestro, TotalEnergies Eyes Suriname, OPEC Cuts to Secure Investments

【Company News】

Abu Dhabi's ADNOC has agreed to purchase Germany’s Covestro for $16.3 billion, including debt. ADNOC will offer $68.86 per share, with Covestro’s board likely to recommend acceptance. The deal, pending regulatory approvals, marks a significant acquisition in the chemicals industry and aligns with ADNOC's diversification strategy.

TotalEnergies plans a $10-billion investment decision for an oil and gas project offshore Suriname, with production expected by 2028. The project could transform Suriname's economy, similar to Guyana's oil boom. TotalEnergies aims to produce 200,000 barrels per day from subsea wells linked to a Floating Production Storage and Offloading unit.

Indonesia has requested ExxonMobil to raise its oil production in the country to 150,000 barrels per day by 2026. This increase aims to reduce Indonesia's budget deficit and dependence on imports. ExxonMobil’s production efforts focus on the Cepu Block, contributing significantly to Indonesia's national crude oil output.

【Oil-Producing Countries Dynamics】

OPEC oil producers are intentionally reducing market share to secure future investments, according to Russia's Deputy PM Alexander Novak. Russia will remain in OPEC after 2025, with decisions based on current agreements and market conditions. The strategy aims to maintain investment in energy sectors and balance prices for exporters and importers.

Iran has secured a long-term natural gas supply deal with Russia's Gazprom, potentially turning Iran into a regional gas hub. The agreement includes 300 million cu m daily supply and involves re-export to neighbors. This collaboration aims to overcome sanctions and enhance energy security in the region.

Kazakhstan is negotiating to increase natural gas exports to China, potentially introducing a new pipeline. With rising Chinese demand, Kazakhstan aims to boost exports with higher production facilitated by new agreements and investments. The project decision is expected this year, with construction possibly taking two to three years.

【Global Oil Supply and Demand】

The U.S. oil demand reached its highest seasonal level since 2019, with consumption increasing 1.2% from June to July. Despite rising demand, oil output slightly decreased. Natural gas production, however, hit a five-month high. Analysts remain cautious about future demand and output dynamics.

【Others】

The International Court of Justice has started hearings on a long-standing dispute between Equatorial Guinea and Gabon over potentially oil-rich islands. The outcome could impact both countries' oil production and economic prospects. The dispute's resolution may enhance access to valuable offshore resources.

Petroleum product exports from India have surged to the highest in over two years due to increased demand amid European refinery maintenance. Indian fuel exports rose 39% in September, meeting demand especially in Africa. India's refining capacity is set to expand, supporting both domestic and international markets.