Oil Daily | U.S. Sanctions Target Chinese Buyers of Iranian Oil Amid Increased Geopolitical Tensions

【Oil-Producing Countries Dynamics】

Nayara Energy, India's second-largest refinery, adapted to EU sanctions by increasing domestic oil deliveries and collaborating with Indian banks to pay for Russian crude in rupees. The Modi government assists cautiously as trade talks with the U.S. persist amid potential sanctions threats.

Russia and Iran discussed enhancing nuclear energy cooperation, focusing on constructing small nuclear reactors in Iran. Both countries, facing Western sanctions, signed agreements to develop oilfields and explore natural gas hub creation. This collaboration strengthens amid their isolation following Russia's Ukraine invasion.

【Latest Oil Policies】

Queensland reversed a decision to close coal-fired power plants by 2035, focusing on economic and engineering-based energy plans. The state remains Australia’s top coal producer, supporting private sector investment in renewables while critics warn against jeopardizing federal climate targets.

Washington implemented new sanctions targeting China, aiming to disrupt Iran's oil revenue and address Russian influence in the Balkans. Around 100 individuals and entities, including Chinese buyers of Iranian oil, were sanctioned, marking aggressive U.S. enforcement amid geopolitical tensions.

【Industry News】

The International Atomic Energy Agency initiated plans to restore external electricity to Ukraine's Zaporizhzhya Nuclear Power Plant, damaged during the Russia-Ukraine conflict. Efforts focus on repairing transmission lines vital for cooling the plant’s reactors, amid ongoing military threats to nuclear safety.

China expanded export controls on rare earth elements and technology, complicating global supply chains. This move, amid U.S.-China trade negotiations, demonstrates China's dominant position in critical minerals, impacting industries reliant on these resources.

【Company News】

BP won an arbitration case against Venture Global, accusing the LNG exporter of breaching long-term contracts to profit from the spot market, impacting major clients like BP and Shell. Venture Global's tactics exploited a commissioning delay loophole in its operations.

BP started production at the Murlach oil and gas field in the UK North Sea, part of its strategy to enhance upstream production by 2027. The project contributes to BP's goal of increasing oil output, emphasizing efficient delivery and shareholder returns.

Ørsted announced a workforce reduction of 2,000 positions by 2027 amid strategic shifts, focusing on European operations. Regulatory changes and cost inflation impact project economics, prompting a reevaluation of its business strategy in the offshore wind industry.

【Others】

Serbia's oil system strained as U.S. sanctions waivers expired, impacting crude flows via Croatia's JANAF pipeline. Serbian President warned of potential refinery strain by November, while Croatian officials emphasized adherence to allied sanctions, affecting pipeline earnings significantly.