Sovcomflot completes USD 900 mln in Foreign Investment
Russia’s maritime shipping company Sovcomflot has announced that it has entered into a new USD 264 million six-year revolving credit facility with a consortium of five leading international banks.The completion of this credit facility marks the successful finalisation of SCF’s 2018 financing plan, with total new debt capital raised this year amounting to circa USD 900 million…
Saudi Aramco, Petronas tap Banks for Jumbo Financing
Saudi Aramco and Malaysia's Petronas have approached banks to replace a short-term $8 billion loan raised earlier this year for a joint venture with long-term financing of approximately the same size, banking sources familiar with the matter said.The two state energy companies borrowed $8 billion from a large consortium of international banks in March for a refinery and petrochemical joint venture in the southern Malaysian state of Johor.The project…
Petrobras Extends Maturity of $500 Mln Debt with Citibank
Brazil's state-controlled oil company Petróleo Brasileiro SA extended the maturity of a $500 million debt with Citibank NA as part of a strategy to cut financial expenses, the company said in a statement on Tuesday. Petrobras, as the company is commonly known, said it pre-paid claims expiring in 2017 and 2018 and took a new unsecured loan due in 2022. (Reporting by Silvio Cascione)
Vanguard Natural Files for Bankruptcy
Oil and natural gas explorer Vanguard Natural Resources LLC filed for bankruptcy protection, adding to a long list of energy firms that have succumbed to weak oil prices. The company said it signed an agreement with certain bondholders that includes a $19.25 million equity investment, with some debtors backing a $255.75 million rights offering. Vanguard also said it had obtained a $50 million debtor-in-possession financing facility…
Shell CFO to Leave in March
Jessica Uhl to replace Simon Henry as CFO on March 9; Uhl joined Shell in 2004 after working at Enron, Citibank. Royal Dutch Shell Chief Financial Officer Simon Henry will step down in March after seven years in the post and be replaced by Jessica Uhl, a finance executive in Shell's gas business. Henry, a 55-year-old Shell veteran, was one of the executives who oversaw the $54 billion acquisition of BG Group…
Is It Time for the US to Dump Saudi Arabia?
After the recent execution of Shi'ite cleric Nimr al-Nimr by Saudi Arabia, the Middle East once again risks devolving into sectarian chaos. A mob torched the Saudi Embassy in Tehran, prompting Saudi Arabia and a number of its Sunni allies to break diplomatic relations with Iran. In response to the unfolding chaos, the Wall Street Journal responded by asking "Who…
Credit Suisse Hires EMEA O&G Head from Barclays
Swiss bank Credit Suisse has hired James Peterkin, from Britain's Barclays, to head its oil and gas team in Europe, the Middle East and Africa (EMEA), according to a memo seen by Reuters on Monday. Peterkin, who has been co-head of EMEA oil and gas investment banking at Barclays since 2009, will join Credit Suisse in March and be based in London, according to the memo, whose contents were confirmed by a Credit Suisse spokeswoman.
Oil Prices Could Rebound Quicker Than Expected
Most analysts don't expect oil glut to end before late 2017, yet traders are preparing for higher prices by Dec 2016. Even with a global glut in oil supplies set to last well into 2017, indications are emerging that a recovery in prices could get underway sooner rather than later. Oil prices have fallen by two-thirds since mid-2014 to trade near 11-year lows below…
As Coal Wanes, Consumers Key for U.S. Rails
Investors in U.S. railroad stocks, who have been punished in 2015 by an accelerating decline in high-margin coal shipments, now are pinning their long-term hopes on a resurgence in consumer spending. Their bet is that a strengthening economy will produce enough demand that railroads will be able to replace the income lost to years of declining coal use with so-called intermodal shipping - the movement of containers stuffed with clothing…
Gulf Coast Sweet Crude Supply Dwindles
Oil traders are scrambling to secure quickly dwindling supplies of light, sweet crude in the U.S. Gulf Coast, signaling potential declines from shale production and propping up the U.S. market as a clear destination for foreign imports. Even as traders contend with less light crude, the region remains flooded with sludgier barrels of heavy crude that are harder for some refineries to process.
Poland's PGNiG Unit Secures $400 mln Loan
An upstream unit of Poland's gas company PGNiG signed a loan agreement with banks worth $400 million, which will mostly serve to pay back a bulk of the unit's current debt, PGNiG said on Thursday. PGNiG Upstream International signed the 7-years deal with eight banks, including Societe Generale, BNP Paribas, ING, HSBC and Citibank. The loan agreement will help the unit develop its upstream projects in Norway.
US Shale Firms Brace for More Pain
With the prospect of another plunge in crude prices looming after two months of stability, U.S. shale oil producers may face another round of spending cuts to conserve cash and survive the downturn. A deeper retrenchment would have far-reaching effects. Additional cutbacks would further gut the already-hemorrhaging oilfield services industry and may heighten expectations for a steeper drop in U.S. crude output later this year.
MET Holding Gets Syndicated Market Loan
Swiss-based energy sales and trading group MET Holding AG signed a 400 million euro syndicated market loan with five banks late last month, ING Bank , one of the participating banks said in a statement on Monday. The other four participating banks are Credit Suisse AG , Citibank Europe Plc., Hungary's OTP Bank and UniCredit Bank Hungary Zrt. "The Facilities consist of loans and trade instruments…
US Shale Cutbacks to Bring Quick Output Dip
Shale oil producers are throttling back so quickly on drilling that U.S. crude output could fall sooner than expected, within months, executives say as they slash costs to cope with tumbling crude prices and compete with Persian Gulf rivals. About a dozen chief executives who talked to Reuters or who spoke publicly, acknowledged they were taken aback by the scale and speed of the cutbacks…
Dorian LPG Lands Debt Financing for Newbuilding Program
Dorian LPG Ltd. a leading owner and operator of modern Very Large Gas Carriers ("VLGCs"), today announced that is has received commitments for up to $761 million of debt financing for its VLGC newbuilding program. ABN AMRO Capital (USA), LLC ("ABN AMRO") is acting as Global Coordinator, and Citibank, NA, London Branch ("Citibank") is acting as Export Credit Agency Coordinator. The financing has four separate tranches.
Puerto Rico's Power Still Up, Debt Crisis Continues
Puerto Rico managed to keep its electricity flowing this week - but creditors made it clear that the crisis enveloping the island's power utility is far from over. Banks, led by Citibank and Canada's Scotiabank , on Thursday agreed to a seven-and-a-half month extension of $671 million in credit lines the Puerto Rico Electric Power Authority (Prepa) needs to buy oil that is essential to keep it operating.
GasLog Partners' First Option Vessels Acquisition for $328 mi
GasLog Partners LP and GasLog Ltd. announced today that they have entered into an agreement for the Partnership to purchase from GasLog, the sole member of the Partnership’s general partner and the Partnership’s majority unitholder, 100% of the shares in the entities that own and charter the Methane Jane Elizabeth and Methane Rita Andrea, modern liquefied natural gas carriers built in 2006…
Ship Reportedly Booked for First US Condensate Export
The first condensate cargo for export is due to load in Texas at the end of this week, headed via the Panama Canal to Asia, shipping sources said. Westport Petroleum Inc., the Franklin, Tennessee-based shipping arm of Japanese trader Mitsui & Co., chartered the BW Zambesi, an LR1 tanker, also known as a Panamax class vessel. Reuters previously reported that Mitsui had bought a 400,000-barrel cargo, and is said to be being marketed to refiners in Asia.
Oil Rebounds Towards $109
Oil rebounded towards $109 a barrel on Tuesday a day after prospects of a return of Libyan supply prompted its biggest daily fall in nearly a month although investors showed muted response to more U.S. sanctions on Russia. Libya's National Oil Corp (NOC) said on Monday it planned to lift force majeure from the eastern oil port of Zueitina, offering hope of a restart to exports at a second port after a deal with rebels.