Oil Daily | Saudi Oil Exports Fall Despite Higher Output; Kazakhstan Eyes BTC Pipeline Restart

【Oil-Producing Countries Dynamics】

Saudi Arabia's oil exports dropped by 15.8% in Q2 2025 despite production increases, causing a 7.3% decline in total merchandise exports. Non-oil exports surged by 17.8%, boosting economic growth by nearly 4%. However, lower oil proceeds contributed to a budget deficit, prompting analysts to suggest borrowing and deferring investments.

Kazakhstan is negotiating to resume oil exports via the BTC pipeline after disruptions due to organic chloride contamination. The halt affected deliveries, but Kazakhstan aims to reroute flows. Despite complying with OPEC quotas, Kazakhstan's oil production exceeded the ceiling. Export priorities may shift from Russia to Turkey.

【Latest Oil Policies】

Denmark summoned the U.S. envoy over suspected influence operations in Greenland, impacting exploration and mining policy. Greenland has significant deposits of rare earths and hydrocarbons, crucial for energy trade and mineral exports. Environmental and social concerns have slowed extraction efforts, despite growing demand for resources.

【Industry News】

Trans Mountain Corp. plans to boost pipeline capacity by 70,000 barrels daily, potentially reaching 1.2 million barrels by 2029, using drag-reducing substances. The Canadian government owns the pipeline, aiming to enhance its value before selling. The expansion facilitates Canadian oil exports to Pacific and Asian markets.

Brazil's Petrobras completed an emergency drill in the Foz do Amazonas basin, simulating an oil spill to prepare for exploration drilling. Despite environmental concerns, Petrobras plans to invest $3 billion in 15 wells over five years. Brazil tendered more blocks in the sensitive area, aiming to tap potential resources.

【Company News】

CNOOC Ltd reported a 13% drop in first-half earnings despite record-high production. Oil and gas sales fell by 7% due to lower oil prices. CNOOC launched new projects in China and Brazil, increasing production. Other Chinese energy giants also reported declining profits amid challenging markets.

Russia's Gazprom Neft faced a 54% earnings decline due to taxes and weaker ruble. Net profit fell to 150.5 billion rubles, with emphasis on project execution. Revenue slipped 12%, while logistics costs increased due to sanctions. The company focuses on brownfield recovery and refining modernization.

Mitsubishi Corporation canceled plans for offshore wind projects in Japan due to market challenges. Economic changes, supply chain issues, and rising interest rates impacted feasibility. The decision reflects difficulties faced by the offshore wind industry worldwide, as seen with Ørsted's recent project challenges.

【Others】

German energy traders are interested in Canadian LNG for swap deals to boost supply. Canada has only one operational LNG plant, backed by major firms like Shell. LNG Canada targets Asian markets, but German buyers could benefit from spot market bargains, despite higher costs compared to pipeline gas.

Millions of UK households face higher energy bills this autumn as the Energy Price Cap rises. Ofgem announced a 2% increase, citing higher transport and government scheme costs. Labour government emphasizes renewable energy to reduce dependency on fossil fuels, aiming to lower bills long-term.