Russia Denies Trump's Claim That Putin Will Release U.S. Journalist for Him

Politics, Geopolitics & Conflict

On the US election front, Trump has promised that if he is elected, Putin will immediately release an American journalist being held in prison in Russia. The statement made viral headlines and sounded like a pledge of allegiance but was denied by Moscow, which said no such discussions had taken place.

A Sri Lankan military commander is warning that Yemen's Iran-backed Houthis now have Unmanned Undersea Vehicles (UUVs), representing a potentially disastrous escalation for energy markets in one of the world's most critical energy transit points (with 12% of seaborne crude and 8% of LNG passing through Bab al-Mandab). This poses a much more direct threat to the US-led coalition naval forces now patrolling the Red Sea.

RFE/RL and investigative partners say that Russia is deploying more forces to Libya, with 1,800 more troops arriving in recent weeks as it starts to strengthen its foothold on NATO's Mediterranean flank. That puts Russian troops worryingly close to the Italian coast. We would keep a close eye on developments in Libya with regard to the rival governments and external troop deployments. Russia's flanking movements in more than one venue have prompted Poland and Greece to call on the EU to create an air defense field. 

Discovery & Development

Equinor has made an oil discovery in the Svalin field in the North Sea, utilizing the Deepsea Aberdeen rig. The well, located in PL 169, has revealed between 0 and 0.6 million barrels of recoverable oil equivalent. Equinor, holding a 57% stake in the license, along with partners Petoro and VÃ¥r Energi, will evaluate the discovery's commercial viability. This find follows a recent $121 million contract extension for the Deepsea Aberdeen rig.

BW Energy has announced a significant oil discovery at the Dussafu license offshore Gabon, utilizing Borr Drilling's Norve jack-up rig. The DHIBM-7P pilot well, drilled to a depth of 3,941 meters, revealed a 24-meter oil pay zone, enhancing the estimated reserves in the Hibiscus field. BW Energy aims to complete the well as a production site later this year. The discovery aligns with broader trends in African hydrocarbon exploration, with several countries poised to expand their LNG production capacities by 2035.

Turkey's Energy Minister Alparslan Bayraktar hinted at a potential oil discovery in the Black Sea, complementing the significant gas reserves already present there. The Sakarya gas field, producing 4.5 million cubic meters per day, demonstrates the region's potential to significantly impact the country's energy independence. Additionally, oil output in the Gabar region has reached 42,500 barrels per day, with plans to increase this to 100,000 barrels by the end of 2024. These developments are part of Turkey's broader strategy to reduce reliance on energy imports and improve its current account deficit through domestic production.

Perenco's subsidiary MIOC has achieved the first offshore oil discovery in nearly 30 years in the Democratic Republic of Congo, with a find at the Moke-East well. Utilizing the Nuada jack-up rig, the well encountered a 24-foot net oil-bearing column, marking a significant milestone in the DRC's coastal basin. This discovery follows Perenco's recent $300 million acquisition of Eni's oil permits in Congo and complements their broader exploration activities in Africa and Brazil. 

Deals, Mergers, & Acquisitions

Exxon Mobil and Shell are evaluating bids for a 40% stake in Galp Energia's Mopane oil field offshore Namibia, valued at around $20 billion based on Galp's estimates. TotalEnergies and Equinor are also interested in acquiring part of Galp's 80% holding in this promising discovery. Galp's shares surged after announcing a significant potential find in the Mopane field, highlighting Namibia as an emerging hotspot for oil exploration. The sale process, managed by a financial adviser, is in its early stages with first-round bids expected by mid-June.

3R Petroleum and Enauta have agreed to merge in a $1.2 billion deal, forming a new independent oil and gas company in Latin America. The merged entity is projected to have a production capacity exceeding 100,000 bpd and 2P reserves surpassing 700 million barrels. Post-merger, 3R will hold a 53% stake, with Enauta shareholders owning the remaining 47%. 

Hess Corporation is facing three lawsuits in the United States over alleged lack of transparency regarding its $60 billion merger with Chevron. These lawsuits seek to block the merger until Hess addresses disclosure issues in its SEC filings, particularly an April 26 proxy statement. In response, Hess added new details to the proxy statement to address the claims and avoid further delays but maintains that the lawsuits are baseless.

Gabon Oil Company has signed a 6-month deal with Premier Invest to raise $1.2 billion for the purposes of acquiring Gabon oil producer Assala Energy and its assets, currently held by U.S.-based Carlyle. Assets will include 7 OPL, a pipeline network, and an export terminal in Gabon.  

Phillips 66 has agreed to acquire Pinnacle Midland Parent LLC from Energy Spectrum Capital for $550 million in cash to enhance its midstream operations in the Permian Basin. The acquisition, expected to close by mid-2024, includes the Dos Picos natural gas gathering and processing system, which has a processing capacity of 220 MMcf/d and an 80-mile pipeline. The transaction aligns with Phillips 66's strategy to expand its natural gas liquids value chain and integrate it into its existing infrastructure. This deal is subject to federal antitrust review.

Adnoc has made its first U.S. acquisition by purchasing an 11.7% stake in the first phase of NextDecade Corp.'s Rio Grande LNG project in Texas. This deal secures Adnoc an annual supply of 1.9 million tons of LNG from the planned fourth train of the project. The acquisition is part of Adnoc's broader international expansion strategy, which includes potential investments in Europe and efforts to create a $30 billion petrochemical giant. This move aligns with the UAE's goal to diversify its energy portfolio and enhance its global presence in the LNG market.