Libya Turns Away Oil Tanker in Protest of Israeli Aggression in Gaza

Politics, Geopolitics & Conflict

An oil tanker set to load crude from a Libyan port was turned away this week because it had made a run to Israel prior to attempting to load in Libya. Libya’s eastern government (the rival to the Tripoli-based GNA) had previously called for an oil embargo on Israel. Head of the GNA and interim president Dbeibah is under immense pressure right now to make a show of protesting Israel’s aggression in Gaza after secret meetings he orchestrated towards normalization with Israel just prior to the Gaza conflict were exposed.

With Russian presidential elections looming in March 2024, Putin is pulling out all the stops. This week Moscow jailed three lawyers representing incarcerated opposition leader Alexei Navalny, labeling them as “extremists” and “terrorists”. Putin is fully committed to winning the elections, much more than he is actually committed to the war in Ukraine, which is trudging along. Instead, Putin is saber-rattling for Western eyes, this week loading an Avangard nuclear-capable glide vehicle on an intercontinental ballistic missile into a launch silo. The move was said to be capable of penetrating a new generation of U.S. missile defense.

Chevron has restarted the Israeli Tamar gas field after it was ordered shut for security reasons in early October in the immediate aftermath of the Hamas attack on Israel. Israeli natural gas flows to Egypt are now recovering, up at least 60% so far in November.

Discovery & Development

The big news Exxon is keen to have circulated through the media as much as possible is its splashy new foray into lithium. The oil giant has officially begun work on the first phase of its lithium production project in Arkansas, a state with coveted lithium deposits. The output will be “Mobil Lithium”.

Algeria’s state-run Sonatrach says it has lifted force majeure on its Libya offshore exploration operations after a shutdown that has lasted for several years in the Ghadames basin. BP and Italian Eni had lifted force majeure on operations in the same basin in August. Force majeure had been declared in response to Libya’s security situation sparked by tensions between rival governments.

Libya’s NOC is reportedly gearing up for a new licensing round next year, for oilfields in three basins–Sirte, Murzuq, and Ghadames. It’s still a tough sell without political stability and if they pull it off, it would be the first licensing rounds in about 20 years.

At the Stabroek Block in Guyana, production has started at the Payara project and is expected to produce up to 220,000 bpd by the second half of 2024 with 41 subsea wellheads and one FPSO vessel. At full capacity, it will produce 620,000 bpd. By the end of 2027, the combined capacity of the Stabroek block should reach 1.2 million bpd. Exxon is the operator, with China’s CNOOC holding a 25% interest and Hess Guyana holding 30%.

Deals, Mergers & Acquisitions

Chevron is said to be considering the sale of its Texas Haynesville shale assets as it looks to make some $15 billion in divestments over the next five years. Chevron’s Haynesville assets include around 70,000 net acres. Chevron acquired Hess Corporation for $53 billion earlier this year.