US producer Talos Energy has finalised the unitisation agreement for its shallow-water Zama discovery in Mexico following an operatorship dispute with state-owned Pemex. In 2017, Talos announced the Zama find of up to 950mn bl of recoverable oil equivalent in block 7, which neighbours Pemex acreage. But after more than two years of talks, the parties failed to agree and the energy ministry designated Pemex as operator in July last year. That decision was criticised for deterring investors, for the strain it will put on Pemex's stretched finances, and because of Pemex's lack of experience drilling a reservoir at Zama's depth. The block could produce up to 160,000 b/d of oil equivalent, Talos says, making it the largest exploration and production contract awarded since 2014's energy reforms.
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Dutch govt formalises renewable gas blending obligation
Dutch govt formalises renewable gas blending obligation
London, 21 May (Argus) — The Dutch government has formally submitted its renewable gas blending obligation bill to parliament, requiring suppliers to reduce a certain amount of greenhouse gas (GHG) emissions annually by supplying biomethane to their end users. The bill allows for imports from other EU countries. Under the system, suppliers must submit green gas units — groengaseenheid (GGEs) — to a central registry managed by the Dutch Emissions Authority, with each unit representing 1 kg of CO2 equivalent emissions saved. Suppliers can meet their obligation — which is based on their market share of supply — by converting renewable gas guarantees of origin (RGGOs) and Proofs of Sustainability (PoS) into GGEs. To be eligible for conversion, the renewable gas must be unsubsidised and comply with RED III sustainability and GHG reduction criteria, verified through EU-recognised certification schemes such as ISCC. A key feature of the bill is that renewable gas produced in other EU member states can count towards the obligation, including gas injected into the interconnected European gas grid, provided it meets the same requirements as Dutch renewable gas. In practice, compliance would be demonstrated through the use of RGGOs and an accompanying PoS. Foreign GOOs can be transferred into the Dutch system via the Association of Issuing Bodies hub. The scheme will be aligned with the Union Database once it becomes operational for biomethane. The blending mechanism allows suppliers to pay a buyout price to cover all or part of their annual obligation not met by the provision of renewable gas, providing a ceiling price in the event of supply shortages. The proposed price is €450/t, but a sliding scale could be applied, whereby the price rises the more that a supplier uses the mechanism to cover its obligations. The proposal gives gas suppliers the option to carry over GGEs into the following calendar year, up to a maximum 10pc of the total quota, to "prevent unwanted market distortions". The overarching target of the blending obligation is to achieve a CO2 chain-emission reduction of 2.85mn t in 2031, estimated to correspond to 0.84bn m³ of production. This would be achieved through increasing annual targets, starting with a 0.63mn t CO2 chain emission reduction in 2027, corresponding to roughly 0.16bn m³ of green gas (see table) . To support long-term investments, the obligation will continue until 2035, with specific targets for 2031-2035 to be revised based on green gas production at the time. The bill will now go through the Dutch legislative process in Parliament, including the development of secondary legislation to set more detailed rules. By Giulio Bajona Green gas obligation annual targets CO₂ reduction (mn t) Year Target 2027 0.63 2028 0.92 2029 1.33 2030 1.91 2031 2.85 2032 2.85 2033 2.85 2034 2.85 2035 2.85 — Ministry of climate policy and green growth Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UN backs ICJ climate ruling, key oil nations opposed
UN backs ICJ climate ruling, key oil nations opposed
Edinburgh, 21 May (Argus) — The UN general assembly has adopted a resolution welcoming an International Court of Justice (ICJ) advisory opinion on the obligations of countries to protect the environment from greenhouse gas (GHG) emissions, with only eight countries opposing — including the three largest oil producers the US, Saudi Arabia and Russia. Pacific island nation Vanuatu put forward the resolution to the UN general assembly, saying "the ICJ advisory opinion confirms that the protection of the climate system is a matter of legal obligation not political discretion". It was adopted on Wednesday, 20 May, with 141 votes in favour, including the world's largest GHG emitter China, eight against and 28 abstentions. Belarus, Iran, Israel, Liberia, Russia, Saudi Arabia, the US and Yemen voted against. The ICJ last year determined in an advisory opinion that all countries have an obligation to contribute to cutting emissions. This is not legally binding but could open door for more climate litigation . ICJ advisory opinions "carry significant legal and moral authority — helping to clarify and develop international law by defining states' legal obligations", the UN said. The UN resolution adopted calls on UN member states "to take all possible steps to avoid causing significant damage to the climate and environment, including emissions produced within their borders, and to follow through on their existing climate pledges under the Paris Agreement". Adoption "sends a strong message that tackling the climate crisis is a legal duty under international law, and not just a political choice," the UN said. The US opposed the resolution, with its representative saying the country has many concerns about the court's opinion. The US noted the resolution includes "inappropriate political demands relating to fossil fuels". Countries such as India, Saudi Arabia, Iraq and Algeria said the resolution failed to address the obligations on the provision of finance to developing countries, saying the focus was "disproportionally" on mitigation. India, Iraq and Algeria abstained. Russia said the resolution is an attempt to make ICJ opinion "mandatory in nature". It added the resolution "selectively cites the conclusion of the advisory opinion" and the outcomes of the UN climate conferences Cops, ignoring finance and adaptation — adjusting to the effects of climate change where possible. Algeria said the resolution is excessively "highlighting and rewriting" decisions from previous Cop outcomes. The text urges members to implement measures to keep the global temperature increase to 1.5°C, including tripling renewable energy capacity and doubling the global average annual rate of energy efficiency by 2030, transitioning away from fossil fuels and phasing out inefficient fossil fuel subsidies which were agreed at Cop 28 in Dubai. The UAE voted in favour of the resolution. Brazil, the Cop 30 president, also adopted the resolution, while Turkey, which will host Cop 31 in Antalya later this year, abstained. Australia, which will preside on negotiations of Cop 31, supported the resolution but said it should not be "interpreted as our agreement with every element of the advisory opinion". By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan must lower dependence on Middle East crude: PAJ
Japan must lower dependence on Middle East crude: PAJ
Tokyo, 21 May (Argus) — Japan must explore ways to reduce its dependence on the Middle East for crude oil, a lesson it has learnt from the current crude oil supply crisis, president of the Petroleum Association of Japan (PAJ) said on 20 May. More than 90pc of Japan's crude imports originate from the Middle East. Supplies from the Middle East, such as Saudi Arabia and the UAE, have continued to reach Japan via routes outside of the strait of Hormuz, despite the disruptions. But the country must explore ways towards lowering that dependence and consider how much to lower that reliance, Shunichi Kito, president of the PAJ and chairperson of Japanese refiner Idemitsu said. Japanese refiners have been expanding supply sources of crude given the disruptions to supplies transiting through the strait, with the US becoming one of Japan's main sources of crude. Sourcing crude from Latin America including Mexico, Ecuador and Venezuela is a possibility, Kito said, pointing to Alaskan crude and sanctions-exempt Russian crude as well. Japan would work to diversify its supply sources by procuring crude oil from these regions, he added. But Japan's refineries are configured to process Middle Eastern crude. Refiners are currently trying to minimise the impact from the diversification of sources by analysing the properties of all alternative crude sources and blending them accordingly. "Revising and changing the supply structure to some extent will contribute to ensuring stable energy supply. Over the medium- to long- term, modifications to facilities may also be necessary," Kito said. "If a situation arises where capital investment is required to implement alternative measures for stable energy supply, we will also need to respond accordingly." Middle Eastern crude made up 94pc of Japan's crude oil imports in 2025, data from Japan's trade and industry ministry Meti show. Japan has secured around 60pc and over 70pc of its crude requirements for May and June, respectively, through alternative procurement, Japanese prime minister Sanae Takaichi said earlier in May. This includes supplies from the Middle East transiting through alternative routes other than the strait. Crude oil from the Middle East and the US will account for most of such alternative supplies in both months. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan decides not to issue summer power saving request
Japan decides not to issue summer power saving request
Osaka, 21 May (Argus) — The Japanese government has decided not to request electricity conservation this summer, because the country has secured sufficient supply capacity and fuels to meet expected peak demand despite a hotter-than-normal weather forecast. All of Japan's 10 service areas are projected to maintain reserve margins of more than 3pc in July-September, above the minimum 3pc level needed to cope with emergencies such as spikes in demand and unexpected power plant outages, even if the country experiences its hottest summer in the past decade, Meti said on 20 May. The capital Tokyo region, Japan's biggest power consuming area, is now expected to post reserve margins of 3.5pc in the first half of August and 3.7pc in the second half. The ratio rose from the previous estimate of 2.4pc made in March for the entire month, given the capacity addition through the public tender. Tepco Power Grid secured 976MW, including 18MW of demand response, at an average contract price of ¥299/kW ($1.88/kW) through an open call for 1.2GW held in April, with the capacity required to be available over 1 July-18 September. Jera, the country's largest power producer, won the tender with its 1GW Sodegaura No.2 gas-fired unit, which has been mothballed since 1 April. Power demand in Japan is expected to remain firm this summer. Northern areas face a 60pc chance of above-normal temperatures in June-August and other regions a 70pc chance, according to a Japan Meteorological Agency forecast released on 19 May. Along with output capacity, power producers have so far secured sufficient fuel for generation, despite concerns over disruptions to crude and LNG shipments through the strait of Hormuz due to the US-Israel war with Iran. Japan's main power utilities held 2.04mn t of LNG as of 17 May, broadly in line with the average level for the past five years, Meti said. Thermal coal inventories also remained stable as of mid-May, while power producers generally maintain stocks equivalent to about one month's consumption, or around 7mn-9mn t, according to Meti's hearings with companies. Power producers also operate oil-fired plants during peak summer and winter demand periods. They held more than 500,000 kilolitres (3.15mn bl) in inventory as of the end of January, well above monthly consumption levels, while company hearings confirmed that stock levels remained stable as of mid-May, Meti said. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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