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Dakota oil line filling amid 'attacks': Update 2

  • Spanish Market: Crude oil
  • 21/03/17

Adds details on second incident

Energy Transfer Partners (ETP) still anticipates crude could flow on its 470,000 b/d Dakota Access pipeline this week, with linefill operations continuing even as unspecified violence is occurring along the route.

In a weekly status filing with the court where cases against the line are pending, ETP complained to US district judge James Boasberg about "recent coordinated physical attacks along the pipeline that pose threats to life, physical safety and the environment." Boasberg granted ETP's request to redact two paragraphs of the publicly available version of the report because of the alleged violence.

"These coordinated attacks will not stop linefill operations," ETP said.

The Mahaska County sheriff's department in Iowa reported an incident of vandalism at an above-ground portion of the Dakota Access pipeline last week. According to the department, it appeared an intruder crawled under a security fence and used a blowtorch to damage a safety valve on the pipeline, causing a hole the diameter of a pen. The pressure from the pipeline likely blew out the torch, the sheriff's department said. The incident was reported on 13 March but likely occurred earlier.

A similar incident occurred in Lincoln County, South Dakota. It also appears an undetermined type of torch was used to damage an above-ground valve site, the Lincoln County Sheriff's Department said. That incident was also reported on 17 March. The valve site was a newly constructed area with no fencing around it.

A spokeswoman for Energy Transfer declined to comment on any incidents beyond what was in the court filing.

The report follows a US Circuit Court of Appeals decision not to overturn Boasberg's previous opinion that the Cherokee Sioux and other tribes did not present a strong enough case of religious discrimination to warrant stopping the project. The tribe argued that oil flowing under Lake Oahe — a crossing that has been delayed for months by regulatory and court action — hindered its constitutional rights to conduct spiritual ceremonies.

When complete, the pipeline will move crude from North Dakota to Patoka, Illinois, as part of ETP's Bakken system, which continues on to the Texas coast at Nederland.


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Libya blockade pushes European buyers to other crudes


20/09/24
20/09/24

Libya blockade pushes European buyers to other crudes

London, 20 September (Argus) — Libya is still exporting crude nearly a month after its eastern-based administration imposed a blockade on oil fields and terminals, but a significant reduction in loadings has prompted key European customers to turn to alternative grades. Libya exported around 389,000 b/d of crude in the 1-19 September period, according to Argus tracking data, a sharp drop from 932,000 b/d during the same period in August when Libya's pre-blockade crude output was close to 1mn b/d. Assuming Libya is keeping some crude for domestic refining and power generation, current production may now be closer to 500,000 b/d — up from previous Argus estimates of around 300,000 b/d . The September exports are largely occurring under state-owned NOC's crude-for-products programme. This potentially bypasses the central bank, which has been at the centre of the political impasse that sparked the blockade . Nearly half of Libyan loadings so far this month, or 189,000 b/d, have headed to Italy, according to Argus tracking. But Italy's Libyan intake averaged 329,000 b/d over January-August, so the country has sought alternatives to replace the shortfall this month. Two cargoes of Algeria's light sweet Saharan Blend amounting to 67,000 b/d arrived in Italy in the 1-19 September period, after no cargoes in August and just one in July. Exports of Caspian light sour CPC Blend to Italy have jumped to 561,000 b/d so far this month, up from 410,000 b/d over 1-19 August and 520,000 b/d over 1-19 July, according to port reports. Availability of CPC Blend was constrained in August by maintenance at Kazakhstan's 600,000 b/d Tengiz field. Around 92,000 b/d of Libyan crude headed for Spain in the first eight months of this year, but none has loaded for the country so far in September. Exports of CPC Blend to Spain rose to 96,000 b/d over 1-19 September, up on the 37,000 b/d shipped during the same periods in each of August and July. By Melissa Gurusinghe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Iraq’s Somo sells rare Qayara crude cargo in tender


20/09/24
20/09/24

Iraq’s Somo sells rare Qayara crude cargo in tender

Singapore, 20 September (Argus) — Iraq's state-owned oil marketer Somo sold a rare cargo of heavy sour Qayara crude via tender to US firm Valero Energy for loading in October. Somo had offered up to 2mn bl of Qayara (Qaiyarah) crude, to load between 25 September to 15 October, through a tender on the platform of price reporting agency Platts on 19 September. US firm Valero Energy was awarded 500,000 bl of Qayara for loading on 8-10 October at a $28.30/bl discount to the average of Dubai and Oman assessments, traders said. It was unclear if Valero intends to process the cargo at one of its refineries in northern America or the United Kingdom, or if the firm plans to resell the cargo. The Qayara volumes offered by Somo had been marked as free-destination and available for resale. Details of the cargo's specification was not listed in Somo's latest tender, but in a previous tender issued by Somo in 2023, the grade was specified as being of about 15.6°API and with sulphur content of about 6.3pc. By YouLiang Chay Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US court asked for third Citgo auction extension


19/09/24
19/09/24

US court asked for third Citgo auction extension

Houston, 19 September (Argus) — The court-appointed special master overseeing the auction of US refiner Citgo has asked the court to delay the announcement of a successful bidder to 26 September and a sale hearing to December. Special master Robert Pincus planned to make an announcement of the proposed buyer on or about 16 September followed by a November sale hearing, but last minute legal challenges derailed what have otherwise been "robust negotiations with a bidder," according to a court filing today. "The special master is continuing to negotiate sale documentation with a bidder," today's motion said. Pincus previously requested a second extension in August and a first extension in late July . By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Small private Libyan firm exports oil through blockade


19/09/24
19/09/24

Small private Libyan firm exports oil through blockade

London, 19 September (Argus) — A small Libyan private firm appears to have been granted an exemption from an oil blockade, which has more than halved the country's exports. Arkenu Oil, which describes itself as a private oil and gas development and production firm, is scheduled to export 1mn bl of Sarir and Mesla crude from Marsa el-Hariga to Italy's Trieste on the Maran Poseidon, according to an official document seen by Argus . The tanker has been chartered by Turkish trader BGN and is currently loading its cargo. This is the first Arkenu shipment set to be exported since the country's eastern-based administration ordered a blockade on oil fields and terminals on 26 August in response to an attempt by its rival administration in the west to replace the central bank governor. It is also Arkenu's third known shipment since July. Arkenu exported a 1mn bl cargo on the Zeus on 10 July and another 1mn barrel cargo on the Yasa Polaris on 16 August, according to official documents and ship-tracking data. These were also Sarir and Mesla grade. Arkenu's exports are significant given that crude sales have historically been the preserve of NOC and a handful of international oil firms that hold stakes in the country's upstream such as Eni, TotalEnergies and OMV. Arkenu, which is based in the eastern city of Benghazi, is supposedly able to export its own crude based on an agreement with NOC which allocates it an unspecified share of production from its subsidiary Agoco's Sarir and Mesla fields in return for carrying out work to boost output at the sites. But there remain questions related to the legality of the deal, the nature of the work Arkenu is supposed to be carrying out and the company's technical capabilities. The three known Arkenu cargoes are worth around $240mn at prevailing market rates, Argus estimates. There has been no increase to Agoco's production capacity since the Arkenu deal was struck, one Libyan oil industry source said. Sarir and Mesla accounted for most of Agoco's roughly 280,000 b/d output in 2023. Arkenu and NOC have yet to reply to a request for comment. "The Haftar family is deliberately and selectively allowing crude exports that generate dollars outside the Libyan state, and they are doing so within the context of a blockade they imposed," said Jalel Harchaoui, a Libya specialist at the UK's Royal United Services Institute. "While the Libyan state struggles to figure out how to import food and medicine next month owing to the central bank crisis, the Haftars' strange oil blockade permits crude exports that profit a private Libyan entity," Harchaoui added. The leadership crisis at the central bank has degraded Libya's ability to carry out international financial transactions. "The only beneficiary from these Mesla and Sarir sales is an unknown private Libyan company with an account in Switzerland and the UAE, with zero dollars being deposited in the state," the oil industry source added. General Khalifa Haftar's Libyan National Army (LNA) controls the country's east and southwest and is the real force behind the blockade. Haftar is understood to be allowing some exports to continue as long as these revenues do not reach the central bank in Tripoli, which is controlled by the rival administration in the west. Libya's crude exports have averaged 410,000 b/d so far this month, according to Kpler. While this is well below pre-blockade levels of around 1mn b/d, it is well above levels seen in some past blockades. Rising exports in recent days suggests Libya's total crude production has picked up from an earlier Argus estimate of around 300,000 b/d to possibly around 500,000 b/d. Libya was producing 1mn b/d before the blockade. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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