Rosneft Denies Reports of a Russian Oil Industry Mega-Merger
Rosneft, Russia's largest oil company, has denied reports that there are plans to consolidate the country's biggest oil companies into a single entity. The company dismissed the claims, which were initially reported by the Wall Street Journal, as false and suggested they may have been part of a "diversion tactic" to create "competitive market advantages" for other players in the industry. Rosneft cited an "unprecedented amount of coverage in foreign media" about its "insidious intentions" to absorb assets it does not need, but the company stated that these reports have "nothing to do with reality or any reasonable business logic." Lukoil, another major Russian oil company, also denied being involved in any merger negotiations. Rosneft is one of the largest oil producers globally, accounting for about 4% of the total global market. The company reported a 27% increase in profits to $8.40 billion in the first half of the year and a liquid hydrocarbon production of 92.8 million tons for the same period.
ADNOC Gas to acquire 60% stake in Ruwais LNG plant for $5bn
ADNOC Gas, a subsidiary of the ADNOC Group, is set to acquire a 60% stake in the Ruwais liquefied natural gas (LNG) plant at an estimated cost of $5 billion (Dh18.36 billion) by the second half of 2028. This strategic acquisition aligns with ADNOC Gas' goal to expand its LNG capacity and strengthen its presence in the global LNG market.
Currently, ADNOC Gas is responsible for the design and construction of the Ruwais LNG plant on behalf of the ADNOC Group. The facility will more than double ADNOC Gas' existing LNG capacity from six million tonnes per annum (mtpa) to over 15mtpa, making it one of the largest LNG plants in the Middle East and North Africa region.
The Ruwais LNG plant will feature two electrically powered liquefaction trains, each with a processing capacity of 4.8mtpa, a first in the region. The plant is expected to be one of the lowest-carbon intensity LNG facilities globally, with the first train scheduled to commence operations in the second half of 2028, and the second train following in early 2029.
SOCAR partners with IntelliGrid for $480m smart gas grid project in Azerbaijan
SOCAR, the State Oil Company of Azerbaijan Republic, has entered a 13-year partnership with IntelliGrid to implement a smart gas grid management system across Azeriqaz Production Union's service area. The $480 million project, signed at COP 29, aims to modernize AzeriGas' energy infrastructure using advanced AI technologies.
IntelliGrid, a joint venture between Esyasoft Holding and Presight AI, will provide sustainable energy solutions to optimize gas infrastructure and reduce emissions. SOCAR President Rovshan Najaf called the partnership "a pivotal step towards a more resilient, efficient, and sustainable energy sector in Azerbaijan."
Najaf and IntelliGrid Board Director and Esyasoft Holding Group CEO Bipin Chandra signed the agreement. This collaboration employs cutting-edge AI-driven technologies to modernize the AzeriGas service area, aligning with Azerbaijan's commitment to cleaner energy sources and reduced environmental impact. The project marks a significant investment in Azerbaijan's energy future, positioning the country as a regional leader in smart grid technologies and sustainability.
Hilcorp bags $1B Permian deal
Exxon Mobil Corp. is offloading some of its conventional oil assets in the Permian Basin to Hilcorp Energy for approximately $1 billion. This move aligns with Exxon's strategy of shifting towards higher-margin shale plays, following its recent $60 billion acquisition of Pioneer Natural Resources. Hilcorp Energy, known for its expertise in mature asset acquisitions, emerged as the winning bidder. The sale excludes properties acquired from Pioneer, focusing instead on older wells producing a stable 26,000 barrels of oil equivalent per day. By shedding these non-core properties, Exxon is homing in on shale, an area where it now has a significant edge following the Pioneer takeover. This sale further emphasizes the need for U.S. majors to streamline their portfolios and focus on the most productive assets by selling off less lucrative ones.
OPEC again cuts 2024, 2025 oil demand growth forecasts
OPEC has revised its oil demand growth forecasts downward for 2023 and 2024, citing a slowdown in major consumer China and other Asian nations. The organization now expects global oil consumption to increase by 1.8 million barrels per day in 2024, down 107,000 barrels from its previous estimate. This reduction is in line with a sharp retreat in crude prices. OPEC's outlook remains significantly more bullish than other forecasters, including Wall Street banks, trading houses, and even Saudi Aramco. The group's members have shown a lack of confidence in the Vienna-based secretariat's forecasts, leading them to delay the restart of production. The return of President-Elect Donald Trump, who has threatened to impose trade tariffs on China, could further shake the outlook. OPEC's leadership may take solace in the improving performance of some members in implementing their output cutbacks, but the organization's forecasts continue to diverge from those of other industry players.
Oil and gas are a 'gift of God', says COP29 host
The president of Azerbaijan, the host country for COP29, made controversial comments about oil, gas, and natural resources at the UN climate conference. President Ilham Aliyev criticized "Western fake news" about the country's emissions and argued that nations "should not be blamed" for possessing fossil fuel reserves, which he described as a "gift of God." However, UN Secretary-General António Guterres later condemned "doubling down on fossil fuels" and emphasized the urgent need for a "clean energy revolution." The comments underscored the tensions at COP29, where developing nations are pushing for more climate financing from wealthy countries. While the US and UK pledged emissions reductions, many world leaders were absent. The Azerbaijani president's remarks are unlikely to derail behind-the-scenes negotiations, which are focused on establishing a $1 trillion fund to help poorer countries implement their climate plans. Experts warn that 2024 could be the world's warmest year on record, and call for "drastic measures" to address the impacts of climate change, which have already caused devastating floods and heatwaves in regions like the Sahel.