Is A Venezuelan Default Inevitable?

Bondholders, creditors, and any company with operations in Venezuela are all agog for news from Caracas after President Nicolas Maduro announced Venezuela will look to restructure its US$89 billion worth of debt to be able to continue servicing it. Forecasts about what will happen next are all pessimistic, and that’s no wonder. By the end of next year, the government and state-owned PDVSA must repay debt obligations to the tune of US$13 billion, and foreign currency reserves are less than that already, at US$10 billion. What’s more,…

Is A Venezuelan Default Inevitable?

Bondholders, creditors, and any company with operations in Venezuela are all agog for news from Caracas after President Nicolas Maduro announced Venezuela will look to restructure its US$89 billion worth of debt to be able to continue servicing it. Forecasts about what will happen next are all pessimistic, and that’s no wonder. By the end of next year, the government and state-owned PDVSA must repay debt obligations to the tune of US$13 billion, and foreign currency reserves are less than that already, at US$10 billion. What’s more,…

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Ignore The Hype: Oil Is Still In A Bear Market

Oil prices hit two-year-highs on Monday amid signs of continuously tightening markets and strong signals from Saudi Arabia and Russia that they are willing to extend their production cut deal beyond March 2018. The sentiment in the oil market has not been this bullish in more than two years, with oil demand growth expected to be strong along with OPEC’s rhetoric that it would do “whatever it takes” to rebalance the oil market. Brent has been trading above $60 a barrel for several consecutive days and its futures curve has been…

Another Security Breach At Libya’s Sharara Oil Field

Libya’s National Oil Corporation (NOC) said on Monday that there had been a “security breach” at the Sharara oil field on Sunday night, which highlights the challenges that Libya’s oil industry faces in steadily recovering production. There has been a security breach at station 186 of the giant Sharara oil field, due to weak security, NOC said in a brief statement quoted by Reuters, without giving further details. The Sharara field has seen several disruptions in oil production in recent months. In early October, a blockade…

Construction Of TurkStream Gas Pipeline Reaches Turkish Waters

The first pipeline of the TurkStream gas offshore line reached the Turkish Exclusive Economic Zone (EEZ) on Saturday, after completing the construction of the two offshore lines in Russian waters, the company managing the project planned and developed by Russia’s gas giant Gazprom said in a statement. Russia scrapped the South Stream gas pipeline project to the European Union (EU) at the end of 2014, citing EU objections, and turned to Turkey for an alternative pipeline that will primarily deliver gas for the Turkish market and later extend…

Kurdistan Ready To Hand Over Oil For 17% Of Iraqi Budget

The Kurdistan Regional Government (KRG) is ready to hand over oil, airports, border points, and all revenues to Baghdad if Iraq’s federal government gives the Kurdish region its 17-percent share of the budget, KRG’s Prime Minister Nechirvan Barzani said on Monday. “We’re ready to handover oil, airports, border gates, and all revenues to Baghdad if the [Federal Government of Iraq] sends the salaries [of KRG employees], the Kurdistan Region’s 17 percent constitutional budget share, and other financial dues,” Kurdistan24…

Singapore Revokes Transocean Oil’s Bunker License Over Falsification

The Maritime and Port Authority (MPA) of Singapore is revoking the bunker fuel supply license of Transocean Oil at the port of Singapore, effective immediately, after finding “falsifications of records and discrepancies,” MPA said on Monday. The authority had carried out checks on Transocean Oil operations at the port of Singapore in March and April this year and those checks found “falsifications of records and discrepancies in the stock movement logbooks on board the bunker tankers” the company operates, Reuters quoted…

Singapore Revokes Transocean Oil’s Bunker License Over Falsification

The Maritime and Port Authority (MPA) of Singapore is revoking the bunker fuel supply license of Transocean Oil at the port of Singapore, effective immediately, after finding “falsifications of records and discrepancies,” MPA said on Monday. The authority had carried out checks on Transocean Oil operations at the port of Singapore in March and April this year and those checks found “falsifications of records and discrepancies in the stock movement logbooks on board the bunker tankers” the company operates, Reuters quoted…

Norway’s Oil Sector Faces Existential Crisis

Oil companies have recently focused on frontier exploration drilling in the Barents Sea offshore in Norway, neglecting the powerhouse of the Norwegian oil industry, the North Sea. Exploration activity in the North Sea—the most mature area of Western Europe’s biggest oil producer—is at an 11-year low this year, which is a concern for the industry’s regulator, the Norwegian Petroleum Directorate (NPD). “That worries me,” NPD Director General Bente Nyland told Bloomberg in a recent interview, voicing the industry…

LNG Prices Climbing As China Scrambles To Secure Supply

As millions of Chinese households make the switch from coal to natural gas for the first time this winter season, China is buying up liquefied natural gas (LNG) cargoes on the spot market, pushing prices higher than the prices of the oil-indexed LNG cargos in the long-term delivery contracts. Asia’s spot LNG prices have jumped by more than two-thirds since May this year to $9 per million British thermal units (mmBtu), according to Reuters. This compares with oil-pegged prices of some $8 per mmBtu. In July, the International Energy Agency…