Oil Daily | Judge Blocks Gulf Lease Sale; India Rejects Russian Tanker Over Documentation Issues

【Oil-Producing Countries Dynamics】

A federal judge ruled against a Gulf lease sale by the Biden administration, citing violations of the Environmental Policy Act due to climate and whale population concerns. The sale involved 26 companies bidding on 1.7 million acres. The ruling has led to legal challenges from the American Petroleum Institute and others.

India denied entry to a Tanzanian-flagged tanker carrying Russian crude due to documentation issues. The vessel's seaworthiness certification was not recognized by Indian authorities. This incident reflects India's increased scrutiny of Russian oil amid evolving U.S. and European sanctions.


【Latest Oil Policies】

Following pressure from environmental groups, Judge Amit Mehta ruled that the Bureau of Ocean Energy Management inadequately assessed the impact of the Gulf lease sale on climate and whale habitats. This lawsuit by environmental organizations challenges the Biden administration's energy policies.

The EU Commission has launched 47 strategic raw material projects worth $22.5 billion to enhance supply chains and reduce dependency on third-party suppliers. These projects focus on extraction, processing, and recycling to meet EU demand by 2030, amid geopolitical challenges and energy transitions.


【Industry News】

Shell has canceled planned wind and solar projects in Brazil due to an unfavorable investment environment. The decision aligns with Shell's strategy shift back to oil and gas as primary business areas, following setbacks in alternative energy investments.

The East African Crude Oil Pipeline (EACOP) has secured its first external financing tranche of about $1 billion. The project, led by stakeholders such as TotalEnergies and CNOOC, aims to export Ugandan crude via Tanzania. Construction progress is over 50% complete.

The uptake of Sustainable Aviation Fuel (SAF) is lagging due to high costs and economic uncertainty, according to Boston Consulting Group. SAF accounts for a small percentage of global jet fuel production, with significant investment needed to reach net-zero CO2 emissions by 2050.


【Company News】

BP approved the Ginger gas project offshore Trinidad and Tobago, part of its strategy to increase investment in upstream oil and gas. The project is expected to start production in 2027, aligning with BP's goal of starting 10 major projects by the end of 2027.

Chinese oil giant CNOOC reported an 11.4% rise in 2024 net profit due to record oil and gas production. Despite lower average oil prices, CNOOC's output increased both domestically and internationally, with significant contributions from new projects like Guyana's Paraya oilfield.


【Others】

Climate activist group Just Stop Oil announced it would cease its protests, claiming success as the UK government partially met its demands. The decision follows stricter anti-protest laws and a shift in public sentiment towards disruptive demonstrations.