Oil Daily | ConocoPhillips to Sell Anadarko Acreage; Baker Hughes Raises Guidance Amid Challenging Market

【Company News】

ConocoPhillips is in advanced talks to sell 300,000 net acres in Oklahoma's Anadarko shale to Stone Ridge Energy for around $1.3 billion. This move aligns with ConocoPhillips’ strategy to streamline its portfolio after acquiring Marathon Oil, focusing on core areas like the Permian Basin and Bakken.

Strong demand for natural gas services helped Baker Hughes achieve a record order backlog in Q2, with net income rising 74% from Q1. Despite declining oil activity impacting revenues, the company raised its full-year guidance, citing robust order momentum, particularly in the data center sector.

Halliburton reported Q2 net income of $472 million, meeting expectations but warning of softer oilfield service market conditions in the short to medium term. Despite challenges, Halliburton plans to address market softness and remain committed to its shareholder returns framework.

CNOOC Ltd launched production from its Kenli 10-2 Oilfields Development Project, China’s largest shallow lithological oilfield. The project, located in the Bohai Sea, aims for peak production of 19,400 boepd by 2026, despite lowered growth targets for 2025-2027.

Indonesia plans to sign an $8-billion contract with KBR Inc for building modular refineries as part of a U.S.-Indonesia trade deal, which includes reduced tariffs on Indonesian products and purchasing U.S. oil. The deal also involves Indonesia buying 50 Boeing aircraft and easing local content requirements.

【Oil-Producing Countries Dynamics】

Exxon is negotiating with Trinidad and Tobago for oil exploration in seven offshore blocks near its Stabroek block in Guyana. Trinidad and Tobago, the region's largest oil and gas producer, plans to boost exploration, with Exxon potentially expanding its regional presence after successes in Guyana.

Mexico’s Finance Ministry announced a financial operation using "Pre-Capitalized Notes" to support Pemex, aiming to strengthen its balance sheet without a direct government guarantee. Pemex struggles with significant debt, production decline, and operational challenges, requiring capital for reforms.

【Industry News】

Demand from data centers drove U.S. electricity auction prices to a record, exceeding last year's high by 22%. Organized by PJM Interconnection, it highlights the growing demand for stable power due to data centers, influencing higher electricity prices and spurring generation capacity expansions.

Gasoline prices in the U.S. are nearing a milestone below $3 per gallon due to low summer demand, increasing imports, and a bearish oil market. Despite peak driving season, prices are pressured by factors such as changing driving patterns and increased storage demand from imports, particularly from Canada and Europe.

【Latest Oil Policies】

Mexico's financial operation with Pre-Capitalized Notes for Pemex aims to provide liquidity without a government guarantee, reflecting the ongoing efforts to stabilize the financially troubled state oil company amid structural challenges and international credit concerns.

【Others】

Reports of a potential U.S.-Japan trade agreement have bolstered oil prices, suggesting improved global trade flows and economic momentum. This optimism is compounded by American Petroleum Institute data indicating a surprise draw in U.S. crude inventories, further supporting bullish market sentiment.