Tag Archives: NGS

‘Ms Nord Stream 2?’: Germany’s Merkel makes difficult last visit to Poland

WARSAW, Sept 11 (Reuters) – German Chancellor Angela Merkel’s visit to Poland on Saturday, part of a goodbye tour of Europe for the continent’s longest serving leader, risks being overshadowed by tensions over a gas pipeline and questions over her legacy in central Europe.

Having grown up in East Germany near the Polish border, Merkel, 67, was seen by some observers as a chancellor who could relate to the post-communist states of central Europe.

However, on her farewell visit to the capital of emerging Europe’s largest economy, her determination to complete the Nord Stream 2 gas pipeline to Russia has soured relations.

The pipeline pits Germany, the EU’s biggest economy, against central and eastern European nations, some of them EU members, who say it will increase the bloc’s dependence on Russian gas.

Russia, the cornerstone of the Soviet Union that once dominated central and eastern Europe, is still viewed in much of the region with suspicion.

“Generally she was seen as someone who understood central and eastern Europe,” said Michal Baranowski, head of the German Marshall Fund’s Warsaw office, adding Polish-German relations were at a “tricky moment”.

“I think she’s leaving as Ms Nord Stream 2, from the Polish perspective.”

Relations have been tense under Poland’s ruling nationalists, the PiS.

Polish Deputy Foreign Minister Marcin Przydacz told Polish public radio on Friday he expected Nord Stream 2 would feature in Merkel’s talks with Prime Minister Mateusz Morawiecki, alongside the Polish COVID-19 National Recovery Plan, which has not been approved by Brussels due to concerns over Warsaw’s commitment to the rule of law. read more

CONFLICT

Poland and Hungary are embroiled in a long-running row with Brussels over issues including judicial independence, press freedoms and LGBT rights, a conflict that recently intensified with Brussels taking legal action against Warsaw and Budapest.

“She (Merkel) is worried that the divergences about the judicial question will grow between Eastern Europe and the rest,” said a German government source.

Analysts say that under Merkel’s rule, Germany sought consensus and dialogue with central and eastern European states, pushing Brussels to the fore and avoiding direct conflict.

However, some diplomats say Merkel could have done more against democratic backsliding.

“Merkel doesn’t like revolution. She doesn’t like to rock the boat and she probably thought that she could contain it, and clearly that didn’t work,” said Sophie in’t Veld, a Dutch Liberal member of the European Parliament.

But with anti-German sentiment still strong among many PiS voters, some analysts say Merkel may also have been wary of stirring up old animosities in a country that suffered greatly during World War Two.

PiS politicians have repeatedly called for war reparations from Germany.

With Armin Laschet, the conservatives’ candidate to succeed Merkel, struggling in polls, policymakers across Europe are starting to contemplate what a government led by Finance Minister Olaf Scholz’s Social Democrats would mean.

“It is very important that the next German government backs a more decided EU response to stop further backsliding in Poland, Hungary and other countries,” said Daniela Schwarzer, executive director for Europe and Eurasia at the Open Society Foundation.

Reporting by Alan Charlish, Justyna Pawlak, Anna Koper and Alicja Ptak in Warsaw, Andreas Rinke in Berlin, John Chalmers in Brussels, John Irish in Paris
Editing by Mark Potter

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Exclusive: Exxon launches U.S. shale gas sale to kick-start stalled divestitures

HOUSTON, Aug 10 (Reuters) – Exxon Mobil Corp (XOM.N) has begun marketing U.S. shale gas properties as it ramps up a long-stalled program that aims to raise billions of dollars to shed unwanted assets and reduce debt taken on last year.

Three years ago, the top U.S. oil producer set a goal of raising $15 billion from sales by December 2021. More recently, it promised to accelerate lagging sales to whittle a record $70 billion debt pile.

The company’s XTO Energy shale unit is seeking buyers for almost 5,000 natural gas wells in the Fayetteville Shale in Arkansas, spokeswoman Julie King confirmed.

The assets are among gas projects with declining production and market value Exxon is selling as it focus on newer ventures in Guyana, offshore Brazil and Texas’s Permian Basin.

Exxon is marketing the properties itself and aims to receive bids by Sept. 16 and close any sale by year-end.

“We are providing information to third parties that may have an interest in the assets,” King said. No buyers have been identified, she said, declining to confirm the due date for bids or the company’s anticipated value on the wells.

DECLINING PRODUCTION

The company has achieved about a third of its three-year, $15 billion sales target.This year, it has received sales proceeds of $557 million through June, and has deals pending valued at more than $2.15 billion. read more

Exxon acquired the Fayetteville assets in 2010 for $650 million during a shale boom that would change the U.S. energy landscape, leading to an oversupply of gas that pushed prices to record lows and last year. This led Exxon to reduce the value of its U.S. oil and gas holdings by $17.1 billion. read more

Output in the assets on offer fell by more than half since 2016 to about 160 million cubic feet per day last year, according to Exxon marketing materials seen by Reuters.

The Arkansas properties cover some 416,000 net acres (1,680 square kilometers) and are some of the North American natural gas resources cut last year from Exxon’s development plan. The sale includes 844 operated and 4,104 non-operated wells, King said.

Dallas-based Merit Energy is evaluating the properties, one person familiar with the matter said. Merit in 2018 purchased about 258,000 acres in the same area from BHP for $300 million.

Merit did not reply to requests for comment by phone, e-mail and LinkedIn. Exxon declined to comment on potential bidders.

WORLDWIDE DIVESTMENTS

Exxon, which suffered a historic $22.4 billion loss in 2020, is selling dozens of properties in Asia, Africa, the United States and Europe.

The company is prioritizing debt reduction and its shareholder dividend, officials said last month. After total debt last year doubled to almost $70 billion since 2018, Exxon paid off more than $7 billion this year, to reduce its burden to $60.6 billion.

This year, it has held talks with Britain’s Savannah Energy (SAVES.L) over properties in Chad and Cameroon and sold stakes in two deep water oilfields to Occidental Petroleum (OXY.N) and others. read more

Exxon is seeing new interest in its properties with this year’s rebound in oil and gas prices, said Exxon Senior Vice President Jack Williams on July 30.

“That whole divestment discussion that we’ve had in the past continues,” Williams said.

By Sabrina Valle in Houston, Liz Hampton in Denver and Shariq Khan in Bengaluru; editing by Gary McWilliams, Marguerita Choy and David Gregorio

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Turkey says part of Cyprus ghost town to reopen; EU, UK object

  • Greek Cypriots say any reopening of Varosha unacceptable
  • Turkish Cypriots mark anniversary of 1974 Turkish invasion
  • Erdogan urges international recognition of Turkish Cypriots

NICOSIA, July 20 (Reuters) – Turkish Cypriot authorities announced on Tuesday a partial reopening of an abandoned town for potential resettlement, drawing a strong rebuke from rival Greek Cypriots of orchestrating a land-grab by stealth.

Varosha, an eerie collection of derelict high-rise hotels and residences, has been deserted since a 1974 war which split the island, a military zone nobody has been allowed to enter.

Turkish Cypriot authorities opened a small area for day visits in November 2020, and on Tuesday said a part of it would be converted to civilian use with a mechanism in place for people to potentially reclaim their properties.

“A new era will begin in Maras which will benefit everyone,” said Turkish President Tayyip Erdogan, who was visiting breakaway north Cyprus on Tuesday. Maras is the Turkish name for Varosha.

Greek Cypriots fear a change to the area’s status displays a clear intent of Turkey to appropriate it. Cypriot President Nicos Anastasiades described the move as “illegal and unacceptable”.

“I want to send the strongest message to Mr Erdogan and his local proxies that the unacceptable actions and demands of Turkey will not be accepted,” Anastasiades said.

Greece’s foreign ministry said it condemned the move “in the strongest terms”, while the United Kingdom, a permanent member of the U.N. Security Council, said it would be discussing the issue as a matter of urgency with other Council members, saying it was “deeply concerned”.

“The UK calls on all parties not to take any actions which undermine the Cyprus settlement process or increase tensions on the island,” a Foreign Office spokesperson said.

EU foreign policy chief Josep Borrell also expressed concern. “(The) unilateral decision announced today by President Erdogan and (Turkish Cypriot leader Ersin) Tatar risks raising tensions on the island & compromising return to talks on a comprehensive settlement of the Cyprus issue,” he said on Twitter.

United Nations resolutions call for Varosha to be handed over to U.N. administration and to allow people to return to their homes.

Anastasiades said that if Turkey’s “real concern was returning properties to their legal owners … they should have adopted U.N. resolutions and hand the city over to the U.N., allowing them to return in conditions of safety.”

Tuesday marked the 47th anniversary of a Turkish invasion mounted in 1974 after a Greek Cypriot coup engineered by the military then ruling Greece. Peace efforts have repeatedly floundered, and a new Turkish Cypriot leadership, backed by Turkey, says a peace accord between two sovereign states is the only viable option.

Greek Cypriots, who represent Cyprus internationally and are backed by the European Union, reject a two-state deal for the island which would accord sovereign status to the breakaway Turkish Cypriot state that only Ankara recognises.

“A new negotiation process (to heal Cyprus’ division) can only be carried out between the two states. We are right and we will defend our right to the end,” Erdogan said in a speech in the divided Cypriot capital of Nicosia.

Varosha has always been regarded as a bargaining chip for Ankara in any future peace deal, and one of the areas widely expected to have been returned to Greek Cypriot administration under a settlement. The Turkish Cypriot move renders that assumption more uncertain.

Reporting by Michele Kambas in Nicosia; Additional reporting by Jonathan Spicer in Istanbul and William Schomberg in London, Editing by Gareth Jones and Grant McCool

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‘Eye of fire’ in Mexican waters snuffed out, says national oil company

MEXICO CITY, July 2 (Reuters) – A fire on the ocean surface west of Mexico’s Yucatan peninsula early on Friday has been extinguished, state oil company Pemex said, blaming a gas leak from an underwater pipeline for sparking the blaze captured in videos that went viral.

Bright orange flames jumping out of water resembling molten lava was dubbed an “eye of fire” on social media due to the blaze’s circular shape, as it raged a short distance from a Pemex oil platform.

The fire took more than five hours to fully put out, according to Pemex.

The fire began in an underwater pipeline that connects to a platform at Pemex’s flagship Ku Maloob Zaap oil development, the company’s most important, four sources told Reuters earlier.

Ku Maloob Zaap is located just up from the southern rim of the Gulf of Mexico.

Pemex said no injuries were reported, and production from the project was not affected after the gas leak ignited around 5:15 a.m. local time. It was completely extinguished by 10:30 a.m.

The company added it would investigate the cause of the fire.

Pemex, which has a long record of major industrial accidents at its facilities, added it also shut the valves of the 12-inch-diameter pipeline.

Angel Carrizales, head of Mexico’s oil safety regulator ASEA, wrote on Twitter that the incident “did not generate any spill.” He did not explain what was burning on the water’s surface.

Ku Maloob Zaap is Pemex’s biggest crude oil producer, accounting for more than 40% of its nearly 1.7 million barrels of daily output.

“The turbomachinery of Ku Maloob Zaap’s active production facilities were affected by an electrical storm and heavy rains,” according to a Pemex incident report shared by one of Reuters’ sources.

Company workers used nitrogen to control the fire, the report added.

Details from the incident report were not mentioned in Pemex’s brief press statement and the company did not immediately respond to a request for comment.

Reporting by Adriana Barrera and Marianna Parraga; Additional reporting by David Alire Garcia; Writing by Anthony Esposito; Editing by Daina Beth Solomon, Philippa Fletcher and David Gregorio

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