Latest news with #TotalEnergies
Forbes
4 hours ago
- Business
- Forbes
Hormuz On A Knife‑Edge: Qatar's LNG Warning Sends Insurance And Freight Costs Exploding
Qatar's Energy Minister and CEO of QatarEnergy Saad Sherida al-Kaabi speaks during a press ... More conference in Doha on September 1, 2024. (Photo by KARIM JAAFAR / AFP) (Photo by KARIM JAAFAR/AFP via Getty Images) Fresh alarm. In a 20 June Reuters exclusive, Doha confirmed that it hauled ExxonMobil, Shell and TotalEnergies into a closed-door meeting two days earlier, warning that one stray missile in the Strait of Hormuz could instantly wipe out one-fifth of global LNG supply. Asian spot prices obeyed the signal—jumping 11 percent to $14/mmBtu before London markets had fully digested the headline. One narrow waterway still moves the world. Hormuz pinches to 21 nautical miles at its choke and carries roughly 20 million barrels of oil—about one-fifth of global seaborne supply—plus a similar share of LNG every day. Close the channel and power stations from Houston to Hong Kong scramble for fuel while tanker queues lengthen by thousands of nautical miles. Chokepoint concentration. The International Energy Agency calculates that only about 6.5 million barrels a day can shift quickly to Fujairah, SUMED or inventories; the balance simply waits. Price-shock amplitude. Additional-war-risk premiums (AWRP) on very-large crude carriers have rocketed from 0.05 percent to 0.25 percent of hull value—roughly a US $225 000 surcharge on each $90 million ship—and forward Brent markets now build in triple-digit scenarios for any prolonged disruption. Policy bandwidth. True spare capacity inside OPEC clocks in near three million barrels a day and sits inside the same blast zone, leaving diplomacy—so far untested in open conflict—to carry most of the burden. Backup pipes replace only a sliver. Saudi Arabia's East-West line and the UAE's Habshan–Fujairah bypass together provide about 2.6 million barrels a day of spare capacity, barely one-eighth of normal Hormuz throughput. Even a coordinated drawdown of strategic storage could not keep two-thirds of Gulf exports moving if the strait closed for a week. Insurance costs shout before oil charts whisper. Since 13 June, tanker underwriters have priced the region as an active war zone. A five-fold jump in AWRP lands before a single barrel is lifted, signalling risk faster than futures curves can. For a refiner, those premiums flow straight into delivered crude costs within days. Freight rates leap in lock-step. Gulf-to-Asia VLCC rates hit $2.14 per barrel on 17 June—60 percent higher in just five days—and charterers now fix ships day-to-day rather than locking in multi-month contracts. The volatility premium migrates down the supply chain, raising break-even prices for refiners, airlines and petrochemicals alike. Qatar's tankers loiter outside the Gulf. QatarEnergy has instructed LNG carriers to remain east of Hormuz until the day before loading. AIS data confirm a multi-year low in Persian-Gulf-bound empty tankers—evidence of growing caution even as contractual volumes continue to flow. Spare capacity sits where missiles can reach it. RBC Capital Markets pegs genuine OPEC spare capacity at roughly three million barrels per day, nearly all within Hormuz's threat ring. Every new headline—whether a cease-fire whisper or another drone strike—moves Brent and insurance quotes long before drilling rigs or pipelines can respond. Economic ripples extend well beyond crude. Higher tanker premiums bleed into LNG freight, lifting electricity costs that keep AI data centres humming. European refiners, already paying roughly €70 per tonne of CO₂, see margins flip negative once reroute costs stack up; Asian importers instead burn through stockpiles that last weeks, not months. Insurance leverage unseen since the late 1980s now shows up in airline ticket prices and industrial power bills. Numbers translate geopolitics into P&L. U.S. energy-agency models suggest each $10 oil shock trims about one-tenth of a percentage point from U.S. GDP. BloombergNEF freight curves add another $1.60 per barrel for a Cape of Good Hope detour plus $0.80 in bunker fuel. War-risk elasticity studies show that 70 percent of an insurance premium embeds into headline freight within a fortnight—effectively turning geopolitical anxiety into everyday costs at the pump. Strategic takeaway remains uncomplicated. Boards cannot micromanage every contingency, but they can widen risk limits, diversify shipping lanes and co-fund a GCC–EU 'Hormuz Alternative Route Task-Force.' The planning bill is trivial next to today's $225 000 voyage surcharge. In the absence of bold collective action, every forward-freight contract will continue to price a toll for geopolitical complacency. Better to pre-empt that charge than pay it in arrears.
Zawya
5 hours ago
- Business
- Zawya
From Discovery to Delivery: Building a Legal Framework for Namibia's Midstream Infrastructure (by Rachel Mushabati)
By Rachel Mushabati, Senior Associate Attorney&Country Head – CLG Namibia ( Namibia's recent offshore oil discoveries mark a pivotal moment in the country's energy sector. With major players such as Shell, TotalEnergies, QatarEnergy, and Galp uncovering significant reserves, Namibia is poised to become a key oil producer. However, while exploration and production activities have gained momentum, the midstream sector; involving transportation, storage, and refining of petroleum, remains underdeveloped. A strong legal framework for midstream infrastructure is essential to ensure that Namibia maximizes economic benefits, attracts investment, and builds a sustainable energy industry. CLG Legal and Business Advisory, with its extensive advisory experience across Africa, is uniquely positioned to support this transition. CLG has advised on midstream regulatory frameworks, infrastructure structuring, and investment promotion strategies in various jurisdictions, and brings this expertise to the Namibian context. Understanding Midstream Infrastructure and Its Importance Midstream infrastructure serves as the critical link between oil extraction and the end consumer. This includes pipelines, refineries, storage facilities, and specialized port infrastructure that facilitate the transportation of crude oil and natural gas. Without adequate midstream infrastructure, Namibia risks becoming an exporter of raw crude without capturing additional value through processing and distribution. A robust midstream sector can boost job creation, industrial development, and energy security, making it a strategic national priority. Market studies from other African producers have shown that well-developed midstream infrastructure can contribute up to 30% more in local value addition compared to direct crude exports.[1] In Ghana, for instance, domestic refining and pipeline infrastructure contributed significantly to its GDP growth in the petroleum sector between 2016–2022. Namibia has the opportunity to tap into similar economic potential.[2] Existing Legal Framework and Gaps Namibia's petroleum sector is primarily governed by the Petroleum (Exploration and Production) Act 2 of 1991 and the Petroleum Products and Energy Act 13 of 1990. These laws focus largely on upstream activities and the regulation of downstream petroleum products. However, there is no dedicated midstream regulatory framework. The absence of clear midstream regulations means there is little guidance on ownership structures, investment incentives, and operational guidelines for pipelines, storage, and refining facilities. For example, Nigeria's midstream sector prior to the Petroleum Industry Act (2021) faced significant bottlenecks due to the absence of a clear regulatory framework, particularly regarding third-party access and tariff setting for pipeline infrastructure. These issues led to investor reluctance and underinvestment, which were only addressed after the establishment of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (Nigeria Petroleum Industry Act, 2021). Lessons from Other Oil-Producing Countries Namibia can draw inspiration from countries that have successfully developed midstream infrastructure through effective regulation. Norway, for example, has established a robust midstream legal framework that ensures state participation in pipelines and refineries while promoting private investment.[3] Ghana has a dedicated Petroleum Midstream Regulatory Authority that oversees infrastructure development and ensures compliance with environmental and safety standards. Similarly, Nigeria's Petroleum Industry Act (2021) introduced the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which provides clear guidelines on pipeline ownership and operations. The Role of Key Stakeholders in Strengthening Namibia's Legal Framework To unlock the full potential of the midstream sector, coordinated action is required among various stakeholders: Government Ministries and Regulators: Responsible for drafting legislation, setting environmental and safety standards, and issuing licenses. Private Sector and Investors: Bring in capital and technical expertise, while also needing legal certainty to invest confidently. State-Owned Entities: Can serve as infrastructure operators and strategic partners in public-private partnerships. Civil Society and Communities: Essential for ensuring environmental accountability and social license to operate. Legal Advisory Firms: Provide technical assistance in drafting laws, structuring transactions, and navigating policy reform. Strengthening Namibia's Midstream Legal Framework To address the existing gaps, Namibia must develop a comprehensive legal framework that clearly defines the governance of midstream activities. A dedicated Midstream Act would be a crucial first step, providing legal certainty on pipeline infrastructure, refineries, storage, and transportation. Encouraging public-private partnerships can drive midstream development while ensuring local participation. Establishing an independent regulatory authority will help enhance transparency, streamline approvals, and enforce compliance. Additionally, Namibia should implement policies that prioritize local employment and skills transfer, ensuring that midstream investors contribute to national workforce development. Environmental and safety standards must also be strengthened to mitigate risks associated with pipeline integrity, spill prevention, and emergency response. To further attract investors, tax breaks, duty exemptions, and streamlined licensing processes should be introduced to make Namibia a more competitive destination for midstream infrastructure development. Conclusion For Namibia to fully capitalize on its oil discoveries, it must establish a strong midstream legal framework that facilitates the efficient transportation, storage, and processing of petroleum resources. Without this, the country risks losing significant economic value and remaining dependent on crude exports. By adopting best practices from other oil-producing nations and implementing strategic legal reforms, Namibia can create a thriving midstream sector that benefits both investors and citizens alike. CLG stands ready to support this transformation, leveraging its pan-African expertise in midstream regulation, infrastructure development, and legal advisory. Our team has been instrumental in shaping midstream legal regimes across West and Central Africa, and we are committed to helping Namibia build a regulatory foundation that supports sustainable growth and long-term prosperity. [1] Ruben, R., Kuijpers, R.,&Dijkxhoorn, Y. (2022). Mobilizing the Midstream for Supporting Smallholder Intensification. Land, 11 (12), 2319. [2] Oxford Business Group. 'Ghana's energy production targets and exploration attract investment'. Retrieved from [3] Norwegian Petroleum Directorate (2021). 'Midstream Regulatory Framework and Investment Guidelines'. Distributed by APO Group on behalf of CLG.
The Herald
9 hours ago
- Business
- The Herald
Mozambique minister optimistic about TotalEnergies resuming LNG project
Mozambique's energy minister said on Friday the government has not received a request from TotalEnergies to lift a force majeure declaration on its $20bn (R360.71bn) liquefied natural gas (LNG) project there, but he is optimistic about the oil major's plan to resume its development this summer. The force majeure will be lifted as soon as the project's operator determines conditions are in place to resume operations, minister of mineral resources and energy Estevao Pale told reporters in Tokyo after meeting with Japan's industry minister Muto Yoji. "We, as government, are doing everything that we can to be able to resume the project," Pale said. "We are working together with all partners on the project to create the security conditions favourable to restart the project," he said, adding that security conditions have improved considerably.
Reuters
11 hours ago
- Business
- Reuters
UK's Unite says TotalEnergies offshore workers win boost to pay
June 20 (Reuters) - UK's Unite union on Friday said that offshore workers employed by TotalEnergies ( opens new tab had overwhelmingly backed a new pay deal negotiated by Unite. "Around 50 Unite members based on the Elgin Franklin and North Alwyn platforms agreed to an enhanced offer which amounts to a 2.25 per cent increase in basic pay alongside a five per cent increase in the offshore allowance," the union added.
Zawya
13 hours ago
- Business
- Zawya
Africa Energy sees first output from South Africa's largest gas field by 2033
Canada-listed Africa Energy Corp is aiming to start production from South Africa's largest gas discovery by 2033 as it forges ahead with a project former operator TotalEnergies walked away from. The company is awaiting regulatory approval for a reworked environmental authorisation to survey Block 11B/12B off South Africa's southern coast. Using domestic gas is a key part of South Africa's strategy to diversify away from coal-fired power generation, with a flurry of new projects being pursued, including the country's first liquefied natural gas import terminal along the east coast. "Our 11B/12B indigenous gas should be very competitive versus imported LNG," Robert Nicolella said from the Africa Energy offices in Cape Town. Nicolella said the company was studying various ways to market the gas, although its preference is to supply a gas-to-power plant. South Africa is targeting 6,000 megawatts of new gas power projects. The CEO said Africa Energy is currently in talks with former national oil company PetroSA to use some of its infrastructure to land gas from the Brulpadda and Luiperd fields at Mossel Bay. TotalEnergies first mooted using PetroSA's infrastructure, which includes the FA offshore platform in Block 9, to help accelerate production. The idea was to connect Block 11B/12B to existing subsea pipelines that run to the FA platform and from there onwards to Mossel Bay. "It could be a commercial alternative. It's an option, without a doubt," Nicolella said of using PetroSA infrastructure. Africa Energy's majority-owned local subsidiary Main Street 1549 was left as operator of Block 11B/12B after TotalEnergies and joint venture partners QatarEnergy and Canadian Natural Resources decided to leave the project last year. Announcing its withdrawal last July, TotalEnergies said it appeared to be "too challenging to economically develop" and monetise the gas discoveries for the domestic market, without elaborating. Main Street will hold a 75% participating interest in the block and Arostyle Investments the remainder, according to Africa Energy Corp's website.
