Tag Archives: Oil & Gas Drilling (TRBC level 4)

Exxon pressured Australia to release aid to refineries in January | Instant News

MELBOURNE (Reuters) – Exxon Mobil Corp. XOM.N urged the Australian government to start providing assistance to the country’s refineries in January following last week’s decision by BP plc BP.L to shut down the nation’s largest refinery.

FILE PHOTOS: Exxon sign seen at a gas station on the outskirts of Chicago, Norridge, Illinois, USA, October 27, 2016. REUTERS / Jim Young / Photo File / Photo File

Exxon has Australia’s oldest refinery at Altona near Melbourne, which can process 90,000 barrels of oil per day, the smallest of the nation’s four refineries. The site supplies about half of the fuel for the state of Victoria, which has been hit by one of the world’s longest and most stringent coronavirus lockdowns.

Exxon said the prolonged lockdown “has put unprecedented pressure” on Altona, causing the plant to suffer losses.

The Victorian government last week relaxed restrictions restricting people to the 5 km (3 mile) zone around their homes and allowed shops and restaurants to reopen for the first time since August 2.

The Australian Government is in talks with the refining industry about offering A $ 2.3 billion ($ 1.6 billion) of incentives over 10 years to keep refineries open to support national fuel security.

The two other refiners in the country, Viva Energy VEA.AX and Ampol ALD.AX, are considering closing their refinery.

Exxon said the proposed six-month time frame for talks with the government was “too long given the short-term challenges faced by all refineries” and was working with refining industry groups and the government to get the first part of fuel safety. package released in January 2021.

The Maritime Union of Australia (MUA) said the government should take over BP’s plant in Kwinana, Western Australia, the only refinery on the west coast, to prevent fuel supply disruptions.

“More than 90 percent of Australia’s liquid fuel has already arrived via foreign-owned and operated tankers, but that figure will only increase if the Kwinana refinery is allowed to close,” MUA Assistant National Secretary Ian Bray said in a statement.

($ 1 = 1.4259 Australian dollars)

Reporting by Sonali Paul; Edited by Christian Schmollinger


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Brazil’s Petrobras posted solid margins, but a one-time fee hit the advantage | Instant News

RIO DE JANEIRO (Reuters) – Petrobras Brazil posted unexpected losses thanks to non-recurring fiscal costs, even as operating income was supported by a recovery in fuel sales and oil revenues.

FILE PHOTO: The logo of Brazil’s state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / File Photo

In Wednesday’s securities filing, Petroleo Brasileiro SA PETR4.SA, the official title of the state-owned oil company, recorded a third-quarter loss of 1.546 billion reais ($ 275 million). Income before interest, tax, depreciation and amortization (EBITDA), adjusted for one-time items, was 33.4 billion reais, above Refinitiv’s estimate of 29.7 billion reais.

Among the one-time charges the company highlighted were a 1.9 billion reais payment to two state governments to settle unpaid tax disputes, as well as a significant bond buyback program. The decline in the Brazilian real against the US dollar helped amplify some of the losses, the company added.

Petrobras said that, excluding one-time items, the company will post a net profit of 3.2 billion reais, beating Refinitiv’s estimate of 736 million reais.

Among the positives for the company is significant sales growth, especially gasoline and diesel. Net revenue was 70.7 billion reais in the quarter, up 39% from the previous period.

“The recovery in sales of diesel and gasoline is prominent,” the company said. “These products were severely affected by COVID-19 in the second quarter and the recovery is the strongest in our portfolio, both in terms of volume and price.”

Crude oil exports to China – which have skyrocketed in recent quarters as production increased as the worst pandemic passed – slowed to pre-pandemic levels. Meanwhile, exports to other markets such as the United States, Spain and Indonesia have grown significantly since the second quarter.

Even Chinese demand may have recovered later in the quarter.

Brazil jumped to become China’s third-largest crude supplier in September, import data showed on Sunday, as independent Chinese refiners scooped up cheap supplies of relatively high-quality South American exporter oil.

Petrobras said that average production costs fell from $ 7.90 per barrel of oil equivalent in the second quarter to $ 4.50 in the third, thanks in part to increased efficiency and partly due to real depreciation.

($ 1 = 5.62 reais)

Reporting by Gram Slattery and Sabrina Valle; Edited by Christian Plumb and Sam Holmes


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Brazil’s Petrobras is spending $ 6 billion through 2024 to dismantle platforms, pipelines and wells | Instant News

FILE PHOTOS: People walking in front of the Petroleo Brasileiro SA (Petrobas) headquarters in Rio de Janeiro, Brazil March 9, 2020. REUTERS / Sergio Moraes

RIO DE JANEIRO (Reuters) – Brazilian state-controlled oil producer Petroleo Brasileiro SA PETR4.SA plans to spend $ 6 billion through 2024 to decommission 18 offshore platforms, an underwater gas pipeline and offshore wells, the company said in a securities filing.

In a presentation filed with the securities regulator, Petrobras, as the company is called, said it predicts a gain of $ 1 billion from divestments in 2020, after receiving $ 14.4 billion from asset sales in 2019.

Reporting by Sabrina Valle; Edited by Sandra Maler


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