Another PdV board shakeup afoot
Venezuela´s state-owned oil company PdV is undergoing another senior management shakeup in the face of further operational declines and financial pressures, but chief executive Manuel Quevedo remains in place.
The new team of five board vice presidents heading up key business units reshuffles or replaces short-lived appointments just named in September, two PdV officials confirmed separately to Argus.
The appointments are expected to be published in the Official Gazette as early as tomorrow.
According to preliminary details, the new board vice presidents include Miguel Quintana Castro who takes over exploration and production, replacing Nelson Ferrer Sanchez. Quintana for now will retain his current post of planning vice president.
Rosa Mota moves from PdV Gas president to board vice president in charge of gas, replacing Nemrod Contreras Mejías.
Rodolfo Jiménez takes over from Guillermo Blanco Acosta in refining.
José Rojas Reyes, who like Quevedo is a member of the national guard, takes over trading and supply, replacing Fernando de Quintal who moves into finance in place of Iris Medina Fernández.
Internal critics say the new team has sparse industry experience and will not rescue PdV´s faltering operations.
"These changes are meant to buy time in the face of an imminent collapse, and responsibility for that is transferred to the new people," one of the PdV officials said.
The board appointments come mostly from Venezuela´s housing ministry, which was headed by Quevedo before he was named to head PdV and the energy ministry in late 2017. Behind the scenes, the changes appear to reinforce loyalty to Diosdado Cabello, the powerful head of Venezuela´ national assembly.
Venezuela is currently producing less than 1.2mn b/d of crude, more than 600,000 b/d less than a year ago and a third of the Opec country´s 1990s level.
Downstream, PdV´s refineries are operating at around a quarter of their nameplate capacity.
At PdV´s main oil terminal at Jose, one of three loading and unloading docks remains out of service since an August tanker collision. The company has compensated for the dock loss in part by recovering access to its Dutch Caribbean logistical assets that had been cut off by a debt dispute with ConocoPhillips starting in May.
PdV is due to pay close to $1bn in bond debt on 27 October.
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EPA sets new oil and gas methane reporting rules
EPA sets new oil and gas methane reporting rules
Washington, 7 May (Argus) — Federal regulators have updated emissions reporting requirements for oil and gas facilities as they prepare to implement a methane "waste" fee for the industry. The US Environmental Protection Agency (EPA) on Monday finalized new rules it says will improve the accuracy of data from the oil and gas sector under the federal greenhouse gas emissions reporting program. Oil and gas facility owners and operators will be required to estimate emissions from additional types of equipment under the rule, and they can draw on newer technologies, like remote sensing, to help estimate emissions. "EPA is applying the latest tools, cutting edge technology, and expertise to track and measure methane emissions from the oil and gas industry," agency administrator Michael Regan said. "Together, a combination of strong standards, good monitoring and reporting, and historic investments to cut methane pollution will ensure the US leads in the global transition to a clean energy economy." Data to support new fee The revisions to the "Subpart W" reporting requirements will be used to determine the amount of methane that will be subject to a "waste emissions charge" created by the Inflation Reduction Act. Under the law, the charge will be calculated based on the annual data that about 8,000 oil and gas sources are now required to report. The charge will begin at $900/t for 2024 methane emissions above a minimum threshold using current measurement data. It will then rise to $1,200/t in 2025 and $1,500/t in subsequent years. Industry officials had raised "serious concerns" about several aspects of the original proposal , warning it could lead to inflated emissions data. "We are reviewing the final rule and will work with Congress and the administration as we continue to reduce GHG emissions while producing the energy the world needs," American Petroleum Institute vice president of corporate policy Aaron Padilla said. The industry group previously said it will ask Congress to repeal the fee, which is only likely to occur if Republicans win control of the White House. Data collected since 2010 Oil and gas facilities have reported emissions under Subpart W since 2010. To simplify reporting, operators often count the equipment they have deployed, and use industry-wide averages to estimate emissions, in addition to other direct and indirect measurements. The industry has argued the Subpart W data is not accurate enough to collect the methane charge, which is expected to cost operators more than $6bn over the next decade. Environmental groups have had their own criticisms of the data, which they say omits vast amounts of emissions such as those from "super-emitter" events and poorly maintained flares. The final rule seeks to respond to some of those concerns by relying on updated emission factors, incorporating additional empirical data on emission rates, collecting data at a more granular level and relying on remote sensing technologies to detect large emission events. EPA also revised Subpart W to include more types of sources, including produced water tanks, nitrogen removal units and crankcase venting. The final rule also sets a threshold of 100 kg/hr of methane for requiring the reporting of emissions from "other large release events." The new data rules will take effect on 1 January 2025 and will first apply to reports submitted in early 2026 for next year's emissions. EPA is allowing the use of the new methodologies for calculating 2024 emissions, but operators can still use the existing rules. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pemex bajo presión para mantener refinación alta
Pemex bajo presión para mantener refinación alta
Mexico City, 7 May (Argus) — La refinación de crudo de Pemex, propiedad estatal de México, en marzo alcanzó sus niveles más altos en casi ocho años antes de las elecciones presidenciales del 2 de junio, pero la empresa podría enfrentarse a desafíos para mantener niveles de refinadoaltos en los próximos meses. Las seis refinerías nacionales de Pemex procesaron más de 1 millón b/d de crudo en marzo por primera vez desde junio de 2016, impulsadas por el progreso en la rehabilitación de las refinerías y una disminución de las exportaciones de crudo para alimentar el sistema de refinación. El presidente Andrés Manuel López Obrador busca reducir las importaciones de combustible en su último año en el cargo, en línea con su promesa de campaña de volver a México más independiente en energía. Sin embargo, los niveles de proceso de crudo podrían disminuir en abril-mayo después de que se produjeran incendios en las refinerías Minatitlán y Salina Cruz a finales de abril. Además, las refinerías de Salina Cruz (330,000 b/d) y Tula (315,000 b/d), las más grandes de México, siguen batallando con una producción elevada de combustóleo con alto contenido de azufre, lo que limita las capacidades de las refinerías para operar a altas tasas simultáneamente. Pemex lleva mucho tiempo luchando con la elevada producción de combustóleo, ya que México produce principalmente crudo pesado, lo que crea una serie de desafíos operativos. El combustóleo suele ocupar valioso espacio de almacenamiento necesario para productos de mayor valor, lo que puede limitar la producción de combustibles más ligeros. Las exportaciones récord de combustóleo en marzo, impulsadas por un aumento de la demanda en la costa del Golfo de EE. UU. después de los reacondicionamientos de la refinería, permitieron a Pemex elevar las operaciones en ambas refinerías simultáneamente. Sin embargo, el problema podría volver a afectar a Pemex en los próximos meses cuando la demanda de combustóleo disminuya y la empresa se vea obligada a almacenar el producto. Pemex está construyendo unidades de coquización en ambas refinerías para resolver este problema, pero no se espera que la unidad de Tula comience a funcionar hasta al menos finales de año, mientras que la unidad de coquización de Salina Cruz comenzaría a finales de 2025. Mientras tanto, la refinería Cadereyta de 275.000 b/d podría compensar parcialmente una disminución en el procesamiento de crudo en Tula y Salina Cruz, ya que su configuración le permite producir menos combustóleo, una fuente familiarizada con las operaciones de Pemex ha dicho a Argus . Las tasas de refinación de Pemex comenzaron a caer en 2014 después de que la administración anterior decidiera depender menos de la producción nacional y centrarse en abrir el mercado de la energía, antes hermético a inversiones externas. En cambio, López Obrador invirtió al menos $3.7 mil millones en mantenimiento para las refinerías antiguas de Pemex de 2019-2023, excluyendo proyectos importantes como las coquizadoras en construcción, además de $17 mil millones para la nueva refinería Olmeca. Cambios en el flujo de crudo y combustible Los mayores niveles de refinación de Pemex han disminuido el flujo de crudo y combustible entre México y EE. UU., y el arranque de Olmeca podría alterar aún más los flujos. Pemex redujo sus importaciones de gasolina y diésel en 25pc a 419,000 b/d en marzo, comparado con 562,000 b/d el año pasado, como resultado de un mejor rendimiento de las refinerías. Las exportaciones de crudo de México cayeron un 29pc hasta un mínimo histórico de 687,000 b/d en marzo, por una menor producción y mayores niveles de refinación. El flujo de crudo y combustible entre México y EE. UU. podría disminuir aún más una vez que Olmeca comience operaciones comerciales y si Pemex mantiene un alto nivel de refinación en sus otras refinerías. La refinería Olmeca comenzará a producir diésel de ultra bajo azufre esta semana, procesando destilados enviados desde la refinería Madero, dijo Pemex el 3 de mayo. Pero la refinería no ha cumplido varios plazos prometidos, el más reciente en abril. La unidad de destilación de crudo de la refinería, la primera unidad de procesamiento, se enfrenta a "problemas importantes" que han retrasado el inicio de la refinería, aunque otras unidades de procesamiento secundario están listas para comenzar, dijo a Argus una fuente familiarizada con las operaciones de Pemex. Sin embargo, el mercado se mantiene escéptico de que se puedan mantener los niveles de refinación después de las elecciones del 2 de junio, ya que Pemex sigue enfrentándose a problemas operativos en sus refinerías. Pero la candidata del partido gobernante Claudia Sheinbaum lidera la votación con doble dígito y se espera que continúe el proyecto actual del gobierno para reforzar Pemex y aumentar los niveles de refinación de la empresa. Por Antonio Gozain Exportaciones de crudo, importaciones de combustible de Pemex ’000 b/d Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US set to resume crude purchases for SPR
US set to resume crude purchases for SPR
Washington, 7 May (Argus) — The US is set to resume crude purchases for the US Strategic Petroleum Reserve (SPR), after calling off a planned 3mn bl refill last month following a rise in crude prices. The US Department of Energy (DOE) today said it plans to purchase up to 3.3mn bl of sour crude for delivery in October to the SPR's Big Hill storage site in Texas. The solicitation sets a maximum price of $79.99/bl for the offers, a slight increase from the $79/bl ceiling it used in the recent monthly purchases. The agency last month called off two pending solicitations that sought to buy 1.5mn bl/month for delivery to the SPR's Bayou Choctaw site in August and September, citing higher crude prices. The most recent SPR refill, nearly 2.8mn bl of sour crude for delivery in September, cost an average of $81.34/bl. DOE says it has has already purchased a total of 32.3mn bl at an average price of $76.98/bl, well below the average $95/bl it received from the sale of 180mn bl of crude from the SPR to respond to market turbulence after Russia invaded Ukraine in 2022. Energy secretary Jennifer Granholm told lawmakers last week that two out of four SPR sites were undergoing maintenance and would not be able to accept SPR deliveries until the end of the year. "We want to continue to fill it, and we will," Grahnolm said. The SPR held 367.2mn bl as of 3 May. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Gorgon LNG train to be out for five weeks
Australia’s Gorgon LNG train to be out for five weeks
Singapore, 7 May (Argus) — One of three trains at Australia's 15.6mn t/yr Gorgon export terminal will be off line for five weeks, operator Chevron told Argus on 7 May. The train has been off line since 30 April because of a mechanical fault in a turbine. Chevron's five-week shutdown expectation is slightly longer than the initially expected shutdown period of about 2-3 weeks, traders said. Each week of downtime on one train at Gorgon reduces the terminal's available liquefaction capacity by about 100,000t. The five-week shutdown is likely to reduce the terminal's production by about 5-8 cargoes, traders said. One standard-sized cargo is roughly equivalent to 60,000-70,000t of LNG. But overarching sentiment from market participants is that the impact on both prices and supply will be limited, as only one train is affected and there are ample cargoes for June and July. There will be a temporary spike in prices as affected buyers — if any — will have to secure prompt cargoes to replace lost LNG from Gorgon, keeping prices supported well above $10/mn Btu, traders said. The shutdown will have a greater impact on prices if repair works drag on for longer and affect summer deliveries, they added. The ANEA price, the Argus assessment for spot LNG deliveries to northeast Asia, for the first and second half June were assessed at $10.57/mn Btu and $10.58/mn Btu on 7 May, higher by 40¢/mn Btu from the previous day. First- and second-half July ANEA prices were assessed at $10.64/mn Btu and $10.66/mn Btu, up by 36¢/mn Btu/mn Btu from a day earlier. Chevron has rescheduled deliveries of some LNG cargoes for their Asian offtakers, according to some traders. Further details are unclear. Shell might have bought around 3-4 cargoes because of the shutdown at Gorgon, according to traders. It is not clear whether the cargoes are for June or July delivery. Some traders have offered both June- and July-delivery cargoes to Chevron but the firm has responded by saying that the shortfall can be managed by optimising its own portfolio, traders said. The Gorgon LNG joint venture is operated by Chevron with a 47pc stake, while ExxonMobil and Shell hold 25pc each. By Simone Tam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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