Venezuela

Chevron to Control Oil Facility

Bloomberg|Fabiola Zerpa

December 07, 2022

Chevron Corp. will formally take over operational control of a key Venezuelan oil-processing facility this week during a joint visit to the site by company and government representatives, according to a person familiar with the plan.

Oil Minister Tareck El Aissami and the head of Chevron’s operations in the country, Javier La Rosa, are set to visit on Dec. 7 the Petropiar upgrader at the Jose Petrochemical Complex near Barcelona in northeast Venezuela, the person said. Chevron will take operational control following the inspection, according to the person, who asked for anonymity as the details have not been announced.

Spokespeople for Chevron and the government did not immediately respond to messages seeking comment.

Chevron will use the facility to process tar-like crude from Venezuela’s fields that will be shipped to US refineries in the Gulf of Mexico under a sanctions waiver granted by the Treasury Department last month. The first shipment of 1 million barrels is expected to be loaded later this month.

Under the license and a series of contracts Chevron signed with Venezuela’s government, the California-based driller will retake control of operations, financing and trading in joint ventures with state oil company Petroleos de Venezuela SA. Chevron, which is the last major international firm still operating in Venezuela, has the capacity to increase production from the joint ventures to about 200,000 barrels a day within a year from a low of around 50,000 barrels.

Offshore gas could come back into play as sanctions start to ease

Preliminary agreement between government and opposition coincides with an easing of sanctions on oil produced by Chevron

29 November 2022
Gareth Chetwynd in London

A preliminary agreement between Venezuela’s government and political opposition, along with US moves to ease sanctions, offered a glimmer of hope for the resumption of energy investments in the OPEC founder.

Talks in Mexico over the weekend were aimed at ending a political deadlock between the administration of President Nicolas Maduro and a political opposition whose leader, Juan Guaido, was treated by the USA as Venezuela’s interim president since a contested election in 2018. Government and opposition found some common ground by issuing a joint statement requesting that billions of dollars frozen in foreign banks be released to help fund social projects, including healthcare and education.

The US also partially lifted sanctions on oil produced from Chevron’s operations in Venezuela. Revenues were earmarked entirely for paying debts that Venezuela owes to the San Ramon-based company and excluding any payments in tax or royalties to the Venezuelan government or to state-run oil company PDVSA.

The talks, which were attended by President Maduro’s son Nicolas Maduro Guerra and with Norway acting as mediator, did not result in any significant breakthrough over opposition demands for free elections.

Sanctions against Venezuela were tightened in 2019, and have contributed to a continuing economic malaise that has brought skyrocketing hyperinflation, power cuts and shortages of basic goods, including food and medicine.

The Venezuelan economy has shrunk by close to 70% over the last decade.

US President Joe Biden has shown a willingness to reopen talks with Venezuela in an effort to bring more oil onto global markets that have been disrupted by Russia’s war on Ukraine.There were signs of rehabilitation when President Maduro visited the recent COP27 climate summit in Egypt and enjoyed encounters with top European and US officials. His legitimacy is also likely to be bolstered by the election of President Luiz Inacio Lula da Silva in Brazil.

The easing of US sanctions could also revive stalled plans to produce and transport gas from shallow-water fields off the coast of eastern Venezuela to nearby developed fields in Trinidad.

There, it could enter as feedstock for Atlantic LNG, a major international liquefaction and export project serving global markets since 1999.

One of the Venezuelan gas fields, Dragon, sits off the northern coast of Venezuela’s Guiria peninsula, only 17 kilometres from the Shell-operated Hibiscus platform in Trinidadian waters, and has subsea production hardware already installed.

A binational project to export gas from Dragon through Trinidad & Tobago’s infrastructure was advancing well until 2019, when progress was interrupted by disputed Venezuelan elections and additional sanctions.

To avoid US sanctions, companies and governments must obtain authorisation from the US Treasury Department to do business with Venezuela’s state-run oil company PDVSA.

 

Gas in the spotlight as US eases sanctions

Much can be gained if easing US sanctions reopens the Atlantic LNG route for Venezuelan gas

2 December 2022
By Gareth Chetwynd in London

OPINION: The partial lifting of US sanctions on Venezuela announced last week looks to all intents and purposes like a move by US President Joe Biden’s administration to usher in new supplies of crude oil onto global markets, but it may prove to have a greater impact on the gas sector.

The move drew the spotlight to Chevron, the US supermajor that remains most exposed to the troubled South American country.

Unlike ConocoPhillips, which walked away from multi-billion dollar assets to pursue international arbitration after Venezuela’s past moves to seize control, Chevron retains interests in four dormant joint ventures with Venezuela’s state-controlled oil company PDVSA.

 

XVII Virtual Regional Conference on Central America, Panama, and the Dominican Republic

The International Monetary Fund (IMF) co-hosted the XVII Regional Conference for Central America, Panama, and the Dominican Republic with the Central Bank of Nicaragua and in collaboration with authorities from all member countries in the region, the Central American Monetary Council (CMCA), the Council of Finance Ministers from Central America, Panama, and the Dominican Republic (COSEFIN), and the Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions (CCSBSO). The conference took place on November 17-18 in virtual format.

The conference gathered Central Bank Governors, Ministers, and Bank Superintendents from Central America, Panama, and the Dominican Republic (CAPDR) to discuss economic prospects and policy challenges for the region together with officials from the IMF, the Bank for International Settlements, the Inter-American Development Bank, United Nations, the World Bank, and other international organizations, and representatives from academia and think tanks.

Recognizing the complex juncture for the global economy, the conference participants underlined the importance of strengthening the resilience of the CAPDR economies, maintaining prudent macroeconomic policies and advancing their growth agenda. The conference discussions highlighted the macro-criticality of climate change for the CAPDR region and explored options for mitigating its impact. They also underlined the important opportunities offered by digital money, particularly for remittance transfers, while highlighting the need to minimize the associated risks.

 

 

Putin exit plan to Venezuela if Ukraine bid fails

 December 9th

Everything is going “according to plan” for Moscow, but it seems there is already a Plan B ready to be activated.     Russian leader Vladimir Putin was reported to have an exit plan for Venezuela, should he fall from grace in Moscow if his country does not succeed militarily in Ukraine. Argentina and China were under consideration but were eventually discarded.

According to Abbas Gallyamov, a former speechwriter of Putin’s who has been living in exile in Israel since 2018, the escape plan was referred to as Noah’s Ark. It was also reported that Yury Kurilin, vice-president and chief of staff of the Russian energy company Rosneft, was in charge of making all the arrangements with Caracas.

“Noah’s Ark is about finding new lands you can go to in case it becomes completely uncomfortable in your homeland,” Gallyamov wrote on his Telegram channel. “The leader’s entourage does not exclude that he will lose the war,” he added. In those circumstances, Putin would need to “urgently evacuate somewhere,” he added citing a reliable source.

“In the summer, Kurilin formally resigned from Rosneft and is now fully dedicated to Noah’s Ark,” Gallyamov also wrote. “He has U.S. citizenship and good connections. He graduated from Hayward University in California and worked in BP structures, including the senior position of director of corporate affairs.” Kurilin was still listed as Rosneft’s vice president and chief of staff on sites including the Wall Street Journal’s company profile page.

“Unfortunately, my source does not know any other details, however, what has been said is enough to understand: when they [Russia] say that ‘everything is going according to plan,’ it makes sense to clarify which one. They seem to have more than one plan,” Gallyamov concluded.

Gallyamov’s Telegram entries were reported by Newsweek.

Citing sources close to the presidential administration and a source in Rosneft, the Telegram channel Mozhem Obyasnit also reported that high-ranking officials have already begun buying up real estate and working on getting residency rights in Venezuela, particularly on Margarita Island, where they feel safe from extradition, while others who do not rank very high in the Russian government are seeking residency in Ecuador, Paraguay, and Argentina.

Caracas to resume ties with Dutch territories

 December 14th 2022 –

Maduro is slowly ceasing to be the pariah of Latin American diplomacy

After resuming diplomatic ties with Colombia, the Venezuelan administration of President Nicolás Maduro is now advancing on its return to the international community through negotiations with The Netherlands to restore links with the European kingdom’s islands of Aruba, Curaçao, and Bonaire.

Maduro also expects things will return to normal once Brazil’s President-elect Luiz Inácio Lula Da Silva takes office on Jan. 1

According to a joint statement Venezuela and The Netherlands have expressed their willingness for a gradual reopening of the borders closed by Maduro in February 2019 to halt the entry of humanitarian aid by sea.

After bilateral meetings, both countries agreed on working mechanisms for the reactivation of maritime and air connections, the joint document issued by the Venezuelan Foreign Ministry and the Dutch embassy in Caracas read.

Both governments have agreed to future meetings shortly to discuss “the gradual cross-border maritime trade of products” and “joint efforts to guarantee security on the border between both countries.”

In 2019, food and pharmaceuticals were ready to be shipped from Curaçao, but the vessels carrying the supplies were threatened by the Venezuelan Navy, claiming that such assistance was part of an invasion plan to overthrow Maduro’s government. Venezuela also blocked the entry of some 600 tons of aid stored in Cucuta, Colombia, a country with which it also broke diplomatic relations. Ties with Bogota were re-established in September after leftwing President Gustavo Petro took office.

 

Inter-American Development Bank.

COAL

First UK coal mine in 30 years receives government go-ahead.

Green groups and MPs attack decision to proceed with £165mn facility The mine, near Whitehaven, which will provide coking coal for use in the steel industry, is expected to employ 500 people

Jim Pickard and Leslie Hook in London

and Jennifer Williams in Manchester

The first coal mine in Britain for 30 years has been given the go-ahead by the government, prompting a storm of protest from green groups and MPs across the political spectrum. Michael Gove, the levelling-up secretary, granted approval for the mine in Whitehaven, Cumbria, on Wednesday evening in a controversial decision that has been delayed several times.  The £165mn mine, which will provide coking coal for use in the steel industry rather than for burning in power stations, is expected to employ 500 people.

The government said the approval had been recommended by the independent planning inspector. “This coal will be used for the production of steel and would otherwise need to be imported,” it said, adding: “The mine seeks to be net zero in its operations and is expected to contribute to local employment and the wider economy.”

The project faces huge opposition from environmentalists and runs counter to the UK government’s positioning in recent years as a leader in efforts to phase out the use of fossil fuels, especially coal because of its high carbon emissions.

Caroline Lucas, the country’s only Green party MP, said the government had backed a “climate-busting, backward-looking, stranded asset coal mine” that amounted to a “climate crime against humanity”. Tim Farron, former leader of the Liberal Democrats and a Cumbria MP, said the decision was “ridiculous and dreadful” and a “pathetic failure of leadership”.

The project was originally approved by Cumbria county council in 2019 but was then called in by the government, which began a public inquiry in September 2021.

Boris Johnson voiced concerns about the project last year, while he was prime minister, saying he was “not in favour of more coal”.

But both local Conservative MPs, Mark Jenkinson and Trudy Harrison, have backed the mine. Harrison, MP for Copeland, has argued that the steel industry will need coking coal from somewhere and therefore it made no sense to “turn a blind eye and offshore our emissions”.

Alok Sharma, the Tory MP who was chair of the COP26 climate summit, has warned that the project will make it harder for the UK to hit its legally-binding “carbon budgets” — under which emissions are reduced gradually towards the 2050 net zero target. “Opening a new coal mine will not only be a backward step for UK climate action but also damage the UK’s hard-won international reputation,” he recently argued.

Yet the 419-page decision letter published on Wednesday night stated that Gove had concluded that “the proposed development would have an overall neutral effect on climate change”. Factors in favour of the proposal included the economic benefits and the provision of an “indigenous source of supply” for the steel industry. But Ron Deelan, former chief executive of British Steel, said the approval was “completely unnecessary” given there was enough coal available on the free market. “The British steel industry needs green investment in electric arc furnaces and hydrogen,” he added.

The mine will produce 3mn tonnes of metallurgical coal per year when fully developed, which is about 18 per cent of the UK’s annual consumption. The approval was granted on the condition that the underground conveyor belt, which moves coal from the mine to the train, must be tunnelled through the earth rather than laid in a trench.

The environmental group Friends of the Earth called the decision “appalling”. Dr Ruth Balogh, co-ordinator of the group’s West Cumbria branch, said: “This short-sighted decision is bad news for the climate and the region’s long-term wellbeing,” adding: “West Cumbria needs sustainable green jobs for the future — not a dirty coal mine.” West Cumbria Mining, the company that has been working on the project for eight years, said it would release a statement shortly.

 

How hydrogen can decarbonise the gas network

In the search for net zero, decarbonisation of the gas network will play a central role.

 

BP to move to new London HQ in 2024

BP (LON: BP) is to up sticks and move its London headquarters to a new location in the city, in 2024 according to reports

 

 

Trinidad and Tobago

bp starts production from Cassia C facility

1. 29 Nov 2022
   Photo – see caption

bp Trinidad and Tobago (bpTT) has confirmed its Cassia C development has safely delivered first gas.

Cassia C is bpTT’s first offshore compression platform and its biggest offshore facility. It will enable bpTT to access and produce low pressure gas resources from the Greater Cassia Area. The platform, bpTT’s 16th offshore facility, is connected to the existing Cassia hub which lies approx. 35 miles off Trinidad’s southeast coast.

Cassia C is expected to produce, at peak, about 200-300 million standard cubic feet a day of gas. Production will go towards meeting bpTT’s gas supply commitments and will be important to sustaining T&T’s LNG and petrochemical industries.

David Campbell, bpTT president said: ‘First gas from Cassia C is an important milestone for bp in Trinidad and Tobago. This first offshore compression facility will allow us to unlock new resources and bring much-needed gas to market. I am immensely proud of the teams which have been working hard to bring this facility online.’

Ewan Drummond, bp senior vice president, projects, production, and operations said: ‘I am proud of our achievement to deliver this project while keeping our people safe throughout a global pandemic. Cassia C is a great example of bp’s resilient hydrocarbons strategy in action – providing the energy the world needs now and helping us invest in the energy transition. I would like to thank our team for their commitment in the safe execution of this project.’

The Cassia C platform’s jacket – its legs and supporting frame – was built at TOFCO (Trinidad Offshore Fabricators) and installed in 2020. Its topside structure was built in the McDermott fabrication yard, Altamira, Mexico and was installed in 2021.

The Cassia C project is an important step in bpTT’s Area Development Plan, which outlines the direction and pace of the company’s activities to develop hydrocarbon resources in its licensed marine acreage in Trinidad and Tobago. The plan includes a combination of exploration, development projects and activities focused on maximizing production from bpTT’s acreage.

First gas from Cassia C follows the recent sanction of the Cypre development and the execution of the gas supply agreement with the National Gas Company.

Background:

bpTT operates in approx. 680,000 acres off Trinidad’s east coast. bpTT now has 16 offshore platforms and two onshore processing facilities.

Source: bp

 

 

Trinidad & Tobago determined to carve out natural gas role in changing world

(Petrostate committed to lowering carbon emissions but neglects welfare of citizens)

21 June 2021
By Gareth Chetwynd in London

A lively debate has emerged in Trinidad & Tobago over the future of its gas-based economy and status as a hydrocarbon exporter in light of its commitments to the energy transition.

The answer, for the administration of Prime Minister Keith Rowley, appears to be balancing that commitment to low-carbon energy with efforts to maximise the value of the nation’s remaining oil and gas reserves.

In an opening address to the country’s annual energy conference, held virtually last week, Prime Minister Keith Rowley pledged to combine a commitment to low-carbon energy with the government’s responsibility to its people.“We will work with stakeholders… on designing solutions for decarbonising natural gas and the greater inclusion of renewables in the local energy mix, but any future inclusion of renewables must be timed to ensure that our citizens are not unduly burdened,” Rowley said.

Trinidad & Tobago has a long history as an oil producer and was a regional pioneer in reaping the economic benefits of its gas resources.

Energy Minister Stuart Young, citing US Department of Energy and International Gas Union data, said significant demand for fossil fuels will guarantee many more years of life for the domestic industry, even as the energy transition gathers pace.

“The increase in energy demand by a growing global population, rising incomes and poverty-alleviation measures cannot be met in the medium term by renewable technologies and energy efficiency alone,” he said.

Young warned that a “redirection” of capital into low-carbon energy markets, combined with the impacts of the Covid-19 pandemic, may have left a shortfall in oil and gas investments that could create a “demand-supply inequity” and push up prices.

“It is crucial that investment in the upstream sector be maintained even during the rapid transition to renewables and other low carbon alternatives.” he said.

Rowley also argued in favour of a role for Trinidad’s natural gas in providing cleaner power, not just to coal-dependent Asian markets but to some of its smaller neighbours in the Caribbean.

In the Dominican Republic, for example, the 750 megawatt coal-fired Punta Catalina power plant came online only last year.

Rowley added that revenue streams from gas are also about offering “a supplementary source of funding for some of the very projects that will help us meet our targets.”

Trinidad’s own initiatives include promotion of compressed natural gas in transport and a planned 112MW solar power project, backed by Lightsource bp and Shell.

Feasibility studies for green hydrogen and ammonia production in Trinidad have attracted Inter-American Development Bank funding, and the Energy Ministry is also exploring carbon capture and storage (CCS).

“There is a lot of opportunity here in TT, as the plants in the gas sector can be transformed, with the right investments, to ensure cleaner and lower carbon energy,” Young said.

“There are exciting opportunities in ammonia, methanol and other commodities.”

Young noted that companies such as Shell and BP have included Trindad & Tobago among regions where oil and gas investments are still taking place, despite the moves toward decarbonisation.

He signalled that the administration will work with industry to ensure that more projects are sanctioned, pointing to an additional 11 trillion cubic feet of gas that could be made available.

“The near-term outlook for the demand for oil and gas and petrochemicals is positive,” Young said.

“We must bring these resources to market at the earliest opportunity as we prepare for a low-carbon economy.”

Young also promised to revamp the licensing process in Trinidad, with bid rounds for deep-water, onshore and shallow-water plays in the pipeline.

In a follow-on debate, John Murton, the UK government’s envoy for the COP26 talks, argued that market forces will continue to drive down the costs of solar, wind, batteries and zero-emissions vehicles — and may push out fossil fuels quicker than other speakers expected.

“Gas will have a role to play in energy transition, but this role is possibly overestimated,” Murton said, referring to technological advances in grid batteries and electrolysers, and trends such as the use of geographical connectors in the power sector.

Dev Sanyal, executive vice president for gas and low carbon for BP — the company that accounts for more than half of the country’s gas production — did not entirely agree.

“The energy transition can only happen with gas at its heart,” Sanyal said, pointing to its ability to replace coal for electricity generation and address intermittency issues with renewables.

Sanyal also referred to “decades” of potential for gas to be used a low-carbon energy when combined with CCS and used as feedstock for blue hydrogen and ammonia.

Young agreed. “We are coming out of an oil and gas economy thatYoung warned that a “redirection” of capital into low-carbon energy markets, combined with the impacts of the Covid-19 pandemic, may have left a shortfall in oil and gas investments that could create a “demand-supply inequity” and push up prices.

“It is crucial that investment in the upstream sector be maintained even during the rapid transition to renewables and other low carbon alternatives.” he said.

Rowley also argued in favour of a role for Trinidad’s natural gas in providing cleaner power, not just to coal-dependent Asian markets but to some of its smaller neighbours in the Caribbean.

In the Dominican Republic, for example, the 750 megawatt coal-fired Punta Catalina power plant came online only last year.

Rowley added that revenue streams from gas are also about offering “a supplementary source of funding for some of the very projects that will help us meet our targets.”

Trinidad’s own initiatives include promotion of compressed natural gas in transport and a planned 112MW solar power project, backed by Lightsource bp and Shell.

Feasibility studies for green hydrogen and ammonia production in Trinidad have attracted Inter-American Development Bank funding, and the Energy Ministry is also exploring carbon capture and storage (CCS).

“There is a lot of opportunity here in TT, as the plants in the gas sector can be transformed, with the right investments, to ensure cleaner and lower carbon energy,” Young said.

“There are exciting opportunities in ammonia, methanol and other commodities.”

Young noted that companies such as Shell and BP have included Trindad & Tobago among regions where oil and gas investments are still taking place, despite the moves toward decarbonisation.

He signalled that the administration will work with industry to ensure that more projects are sanctioned, pointing to an additional 11 trillion cubic feet of gas that could be made available.

“The near-term outlook for the demand for oil and gas and petrochemicals is positive,” Young said.

“We must bring these resources to market at the earliest opportunity as we prepare for a low-carbon economy.”

Young also promised to revamp the licensing process in Trinidad, with bid rounds for deep-water, onshore and shallow-water plays in the pipeline.

In a follow-on debate, John Murton, the UK government’s envoy for the COP26 talks, argued that market forces will continue to drive down the costs of solar, wind, batteries and zero-emissions vehicles — and may push out fossil fuels quicker than other speakers expected.

“Gas will have a role to play in energy transition, but this role is possibly overestimated,” Murton said, referring to technological advances in grid batteries and electrolysers, and trends such as the use of geographical connectors in the power sector.

Dev Sanyal, executive vice president for gas and low carbon for BP — the company that accounts for more than half of the country’s gas production — did not entirely agree.

“The energy transition can only happen with gas at its heart,” Sanyal said, pointing to its ability to replace coal for electricity generation and address intermittency issues with renewables.

Sanyal also referred to “decades” of potential for gas to be used a low-carbon energy when combined with CCS and used as feedstock for blue hydrogen and ammonia.

Young agreed. “We are coming out of an oil and gas economy that has been in place for decades and it won’t just disappear overnight. It is important to look at how best to use amortised assets to get value out of products like ammonia, methanol, while shifting to lower carbon,” he said.

“We are willing to listen and to find ways to meet our commitments.”

(See also Trinidad page for fears that the petrostate is doomed under the current regime )

 

 

US ambassador-designate arrives in Trinidad

 The US Embassy announced the arrival of Ambassador-designate to TT, Candace A Bond, with her family. She expressed eagerness to begin her new duties after presenting her letters of credence to President Paula-Mae Weekes .

Bond said, “It is a great honour to be in beautiful TT with my family. I look forward to presenting my credentials to President Weekes and meeting and working with the wonderful people of this country.”

Bond is married to entertainment executive Steven McKeever and they have two children, Brent and Maddox.

US President Joe Biden nominated Bond as US ambassador on March 18. The US Senate confirmed her appointment on September 29 and US Vice President Kamala Harris administered the oath of office to Bond on November 14, at the Vice President’s residence in Washington DC.

Prior to her posting in TT, Bond was a business owner, consultant, and social entrepreneur who specialised in helping public and private sector entities to develop innovative, effective, and scalable solutions to address the socioeconomic and environmental needs of local communities.    She advised businesses and nonprofits on tangible ways to promote environmental sustainability, community development, affordable housing, quality education, health equity, and corporate governance.

A native of Missouri, Bond holds a bachelor’s degree in Government with honors from Harvard University and a Master of Business Administration from Harvard Business School.

She is the recipient of numerous leadership and service awards, including Los Angeles County Woman of the Year, the Special Needs Network Woman of Distinction Award, and was also recognised as one of Los Angeles’ Women Leaders by the Los Angeles County Office of Education.

As ambassador Bond will lead US foreign policy goals in TT.   These goals include initiatives that strengthen citizen security, advance sustainable and equitable economic growth with an investor-friendly business climate, promote laws, regulations, and best practices focused on good governance and anti-corruption, and build capacity to enhance climate resiliency and a transition towards clean and renewable energy production.