Oil Daily | Chevron Cuts Jobs Amid Permian Market Volatility; Petrobras Eyes African Expansion

【Latest Oil Policies】

The UK is preparing to launch an industrial strategy aimed at reducing energy costs, which are among the highest globally. The House of Commons Business and Trade Committee emphasized the need for reforms to enhance the competitiveness of UK businesses, recommending measures to align energy pricing with international standards.

UK business leaders urge government action to tackle high industrial energy costs, which are significantly above global averages. Concerns about carbon pricing and emissions trading schemes are also highlighted, with industry leaders warning these policies are stifling manufacturing growth and green energy investments.

Libya's eastern parliament approved a controversial budget for its Development and Reconstruction Fund, raising political tensions amid armed clashes and threats of civil war. The fund, managed by Belgassim Haftar, aims to finance infrastructure projects, but faces opposition over procedural violations and potential economic mismanagement.

Europe's natural gas prices increased due to maintenance on Norway's gas infrastructure, reducing pipeline flow. Norway, Europe's top gas supplier, accounts for one-third of imports. The EU has adjusted storage goals to manage pressure as Asia's LNG demand remains weak, offering Europe a temporary advantage in spot supply.

【Industry News】

Japan's Eneos Corp experienced an unplanned shutdown at its Kawasaki refinery's crude distillation unit, highlighting vulnerabilities in Japan's refining sector. With declining crude demand, aging population, and competition from newer refineries, Japanese import volumes are decreasing, potentially affecting global crude exporters.

Greenpeace East Asia reports a resurgence in China's coal power plant approvals, with 11.29 GW green-lit in early 2025, exceeding the previous year's approvals. Despite growth in renewable capacity, the increase in coal projects risks overcapacity and hindering clean energy progress.

【Company News】

Stonepeak Partners is negotiating to acquire Malaysia's Yinson Holdings for $2.1 billion, in collaboration with Yinson's largest shareholder, the Lim family. Yinson, transitioning from logistics to energy infrastructure, completed a $1 billion funding round for offshore vessel manufacturing earlier this year.

Brazil's Petrobras plans expansion into Africa, targeting investments in Ivory Coast, Angola, Nigeria, and Namibia. The company aims to leverage its expertise in the Brazilian eastern margin and has submitted interest for offshore oil acreage in Ivory Coast, pursuing exclusive negotiations for asset acquisition.

Chevron plans to lay off 800 workers in the Permian Basin to streamline operations amid volatile market conditions. The move underscores cost pressures in shale regions, as weak exports and declining margins impact profitability.

Calgary-based Vermilion Energy is selling its U.S. assets for $88 million to focus on natural gas assets in Canada and Europe. The sale completes its U.S. exit, allowing investment in core gas-weighted assets, following its acquisition of Westbrick Energy earlier this year.

【Others】

The U.S. saw a record rise in industrial exports in April, driven by strong global demand for chemicals, metals, and petroleum byproducts, despite a decline in crude oil exports. The mixed performance reflects shifting trade dynamics amid geopolitical tensions and tariff escalations.

Iraq's government holds the Kurdistan Regional Government accountable for oil smuggling outside Iraq, demanding compliance with the constitution and legal rulings. The ongoing dispute over oil export control and revenue distribution persists, affecting Iraq's main budget revenues and federal commitments.